It goes consumer grade, automotive, military, and then you have levels above that meant for things like space and down-hole oil drilling. Automotive is certainly a step up above consumer grade but it's not like Intel is throwing an i7 into a car. They are going to just offer fab capacity to anyone that can build on the various technologies that can be built at Intel's fabs.

This is not really true. Firstly, the volume for automotive is much higher. 2nd the cost structure is entirely different and a business set up for high cost low volume military parts may not be competitive in automotive with low cost.