In this week's episode of Autoline After Hours, John McElroy, newly minted Christian publishing mogul Jason Vines and Peter "The Autoextremist" DeLorenzo gather for another unusually frank discussion about the motoring industry's ups and downs.

You can even join in by submitting questions to the panel at viewermail -at- autolinedetroit.tv (put "AAH QUESTION" in the subject line) to be answered on-air tonight during the show's Rapid Fire segment. Follow the jump to watch it live beginning at 7 PM EST.

Hybrids Stumble While Diesels Surge

The new-car sales figures for June must be a cause for concern for fans of hybrids. But at the same time they're very encouraging for diesel proponents. You don't want to read too much into one month's sales numbers, but the numbers do tell a story.

Ever since gasoline prices tumbled from their highs of last year, sales of hybrids have tumbled along with them. And while most automakers are shunning diesel engines right now, Volkswagen turned in sales numbers in June that should make everybody sit up and pay attention.

So, are we going to see a battle royale between hybrids and diesels? It's too early to tell, but here's what's going on in the market at this snapshot in time.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

Ford Transit Connect: Case Study in Overregulation

The Ford Transit Connect is a cool little van unlike anything else on the American market. In fact, I think it has the capability of becoming something of a cult car. But it's also a shining example of why the auto industry faces too much regulation.

Even though the Transit Connect is already sold in 55 countries around the world it had to undergo numerous modifications before it could be sold in the American market. And while it's not at all unusual to modifiy imported vehicles up to our standards, it's hard to see how some of these changes will help the health or safety of American citizens.

Some of these changes are so ridiculous and inconsequential that it's actually funny to see what they are. Funny, that is, until you realize all they're doing is driving up the price of the product.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

Today's unscripted, live episode of Autoline After Hours starts in just a few minutes. You can watch and participate after the jump where host and Autoblog contributor John McElroy are joined by regulars Peter De Lorenzo and Jason Vines. The guest spot will be filled tonight by John Mendel of American Honda. Follow the jump and be in your seats by 7PM EST.

BOOM TIMES COMING IN THE USED CAR MARKET

The future looks so bright for the used car market that I'm almost tempted to try and get into that business myself. Even though car dealers are going through tough times trying to sell new vehicles, they are going to more than make up for that on their used car lots.

The reason I'm so bullish on the used car business is that we're facing a looming shortage of good used cars. First off, the new car market has fallen by roughly 7 million units since its peak two years ago. That translates into 7 million fewer trade-ins available in the used car market. And the story gets even more interesting when you start to dig down into those numbers.

Follow the jump to keep reading...

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

PLENTY OF LIFE LEFT IN THE PISTON ENGINE

There are all kinds of ways to boost the fuel efficiency of a vehicle. Hybrids are becoming more and more popular. Clean diesels seemed poised to make major inroads in the market. And even though they're a ways down the road, hydrogen fuel cells sure look promising.

But the problem with these technologies is that they add considerable cost to a car. Toyota has probably got the cost of its hybrid system down to about $2,500, but that's still a lot of money to add to the cost of the powertrain. At their present level of development, clean diesels probably carry $4,000-$5,000 worth of extra emissions control equipment. And hydrogen fuel cells aren't quite ready for prime time no matter what they cost.

Engine engineers complain to me all the time about these alternative technologies. They say it's unfair to compare what they are doing with gasoline-fueled piston engines to these alternatives. And it all comes down to money. They claim they can achieve comparable performance, emissions, and fuel efficiency at a lot lower cost.

Specifically, they say "Let me add just $1,000 worth of equipment and technology to my engine and let me show you what I can do."

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

If you haven't caught an episode of Autoline After Hours, this is the show to watch. Joining AAH's host and Autoblog contributor John McElroy is Autoextremist's own Peter De Lorenzo and former Chrysler PR man Jason Vines. For an additional bit of flavor, The Truth About Cars' founder and editor, Robert Farago, will join the trio to discuss the week's events, including – but not limited to – Chrysler's bankruptcy filing and the death of Pontiac. With everything that's gone on in the past four days, tonight's show should be an epic meeting of the minds, and the fun begins now. Make the jump to watch the show live, and remember, you can engage in the debate by using the comments embedded into the video player.

They're After Your Freedom

You've undoubtedly read the Insurance Institute for Highway Safety's report and seen the videos it released when the organization pitted sub-compacts against mid-size sedans (if not, one is posted below the fold). They really went after the safety of small cars, trying to scare consumers away from buying them.

The IIHS filmed head-on collisions between a Honda Fit and Accord, between a Toyota Camry and a Yaris, and between a Mercedes C-class and a Smart. Each vehicle was traveling at 40 mph, which is the equivalent of smashing into a parked car at 80 mph, and the results were predictable. The videos made the national news, especially the one of the Smart Fortwo bouncing and spinning backwards.

The IIHS has an ulterior motive in conducting these crashes. It's all part of its campaign to limit how much horsepower cars can have, and to lower the national highway speed limit to 55 mph.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

IT'S A FUEL PROBLEM, NOT A FUEL ECONOMY PROBLEM

Every single day, the United States ships $600,000,000 out of the country. That's what it costs us to pay for the oil we buy from other countries at $50 a barrel. It is the single biggest cause of our massive trade deficit.

The U.S. uses roughly 20 million barrels of oil every single day, and about 60% of that is imported. About 10 million of those barrels are used in transportation, including the kinds of cars and trucks you and I drive, plus all the planes, trains, heavy trucks and off-road vehicles in the country.

Yet, our entire effort to reduce our dependence on oil is based on Corporate Average Fuel Economy regulations (CAFE). And that only impacts passenger cars and light trucks. In other words, the industry that causes less than 50% of the problem is bearing 100% of the effort to fix it. No other industry is being regulated to reduce our dependence on oil, and that doesn't look like a very effective approach to me.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

John McElroy and the good people at Autoline Detroit have decided to make their weekly Autoline After Hours internet show a weekly series. Last week we hosted their first episode on Autoblog, and this week it returns with John McElroy as host, regular guests Jason Vines and Peter De Lorenzo, and us.

That's right, Autoblog Editor-in-Chief John Neff will appear via Skype Video as this week's new guest. Topics for the show will be the General Motors meltdown and other top news coming out of the automotive world this week. Follow the jump to watch the show, which starts at 7PM EST (or a little after if there are any technical difficulties). Be sure to participate in the chat room, and we'll update the post later on with an archived version in case you missed the live show.