Unfortunately you cannot have the wheel skirts travel up and down with the suspension. If you did that it would collide with the body that is fixed to the frame. If I left enough gap there to allow for full suspension travel, it would avoid that issue, but it would negate much of the aerodynamic benefit.
I think I have a solution though. Very hard to explain without a visual, but the basic idea is there will be two sets of steering linkages. One goes to the wheel, the other to the wheel skirts. The wheel skirt linkage will not be hard fastened to the wheel skirt pivot point, rather it will be free to travel up and down. This might require some small sets of bearings or something to prevent binding but I think some variation of this concept will be an adequate solution.
I probably won't make a solidworks drawing of the idea until I have finalized the rest of the steering and front suspension. Which might require me to design the frame as well
So it might be a few weeks before you see something for this idea.
On a different topic regarding 'wagon steering' Aerohead had mentioned the research done on it in the 60's regarding that and indicated that the pivot point was behind the wheels rather then ahead of the wheels as my earlier sketch showed. The problem I see with having the pivot point behind the wheels is the steering system will always pick a side and try to pull that way. So unless the system was design to prevent that the driver would always be forced to counter steer some.
If the pivot point is ahead of the wheels the system should want to self center. Of course this requires a less favorable body design that leaves an edge out of the body during a turn unless the width of the body is the same as the diameter of the turn.
BTW guys, if this vehicle ever comes to be, I am certain it will be because you all provided so much advice on different concepts and had different perspectives.