Chrysler. The rapidly fading Auburn Hills, MI-based car company offers shoppers $2.99 per gallon gas for three years if they agree to take one of their vehicles off of their hands in their Let's Refuel America campaign. Too bad Suzuki beat Chrysler to the punch with their "Free Gas For Summer" promotion announced on May 1. It won't matter much in the scheme of things, however, especially with Chrysler having to spend $8200 per vehicle in incentives to move Dodge Ram pickups off of their lots, with dealers around the country offering as much as $13,000 off sticker and still having trouble getting people to buy them. It's going to be a long hot summer for Cerberus.

The Jerry York Show. Well, that took all of about five minutes, didn't it? The news that Tracinda was buying into Ford had barely been out on the Internet for a couple of days before Jerry York started telling Alan Mulally what he would do, which would be to sell Volvo and Mercury. The thing you all have to remember about this Kerkorian-York thing is that while Kerkorian lives for "the game," York lives for the adulation. York is frustrated by the fact that he was never considered to be an Automotive Titan, and he views this as a major slight. So with Kirk's bottomless pockets he gets a forum to grace us all with his views, and everyone has to listen to his bullshit until Kirk grows weary of the whole thing and decides to move on. But the fact of the matter is that Jerry will always play Sideshow Bob to Kirk's Krusty the Clown. And that's never going to change.

Hillary Clinton & John McCain. These two vote whores will say anything to get elected, apparently, including pushing the ridiculous notion that this country needs a "break" from the high price of gas this summer. The very last thing this country needs is to start thinking these high fuel prices are temporary, because they're not, and the sooner we all realize it the better off we'll be. We expected this kind of performance from Clinton, but McCain? Get a grip, John.

Barack Obama. "Barry" slams Detroit for making large SUVs and for not anticipating the high price of gasoline, then he and his entourage get in large SUVs to make his next campaign appearance. Nice.

The UAW, Ron Gettelfinger. All of that touchy-feely garbage in the mainstream media characterizing UAW president Ron Gettelfinger as being some sort of saint (the words "statesman-like" was used) for looking at the Big Picture and agreeing to an "enlightened" deal with the Detroit Three last fall has been blown to smithereens with the American Axle strike and now the harassment strikes aimed at crippling GM's hottest selling vehicles, including the Malibu. Local issues? Yeah, right. The true colors of the UAW are once again being exposed for everyone to see, in case you didn't get the message the three thousand other times before this that they've exhibited their "one-trick pony" behavior. The UAW's sense of entitlement knows no bounds, but this latest episode is convincing everyone from the media to the people who care about this state and this industry that the UAW era is well and truly over, and by acting out they're only hastening their way to oblivion. The future for the Detroit Three, if there is any, will consist of off-shore manufacturing and non-union manufacturing sites, it's that simple. And the future of the UAW? It's toast.

Microsoft. Ford's exclusivity deal with Microsoft to use its "Sync" system comes to an end in November, so what does Microsoft do? It signs a global, non-exclusive deal with Hyundai and Kia to supply Sync in their vehicles. Memo to Microsoft: Good luck dealing with the Krazy Koreans in the car business, who know all of the answers and who are never wrong, even if they don't have the first clue as to what they're talking about. In other words, this is going nowhere good.

Harley-Davidson. Publisher's Note: It's rare when a company not only understands its brand, but knows when it is in desperate need of shoring it up and reaffirming its reason for being. Harley-Davidson, which is facing the big cool down in sales after years of explosive growth, is just such a company. In a print ad that ran last Thursday (May 1) in USA Today, Harley let it all hang out with the following copy, which gets at the very essence of what makes the brand unique and special: "We don't do fear. Over the last 105 years in the saddle, we've seen wars, conflicts, depression, recession, resistance, and revolutions. We've watched a thousand hand-wringing pundits disappear in our rear-view mirror. But every time, this country has come out stronger than before. Because chrome and asphalt put distance between you and whatever the world can throw at you. Freedom and wind outlast hard times. And the rumble of an engine drowns out all the spin on the evening news. If 105 years have proved one thing, it's that fear sucks and it doesn't last long. So screw it, let's ride." If you want to read more, go to www.harleydavidson.com/screwit. Congratulations to all involved at Carmichael Lynch in Minneapolis, and here's to Mark-Hans Richer, for making it happen. - PMD

Aeroscraft. It's a bird, it's a plane, it's "the fourth dimension of flight." Check it out just for fun here http://www.aeroscraft.com/.
 

GM. The car company that is well on its way to getting its product house in order and the one that's allegedly the best-positioned of all the domestic automakers to emerge from The Darkness, and the company that is thriving everywhere around the world except right here in its home country, hung a net loss of $3.25 billion on the board during the first quarter. Even though the majority of the loss was due to one-time charges relating to its share in the souring GMAC investment (just under $300 million), the American Axle strike ($800 million), and its ongoing problems with Delphi ($731 million), the results stink. Beyond the various charges, the company lost $42 million during the first quarter on total revenue of $42.7 billion. It did deliver a $1 billion dollar gain before taxes in operations around the world, but most disturbing is the fact that GM lost $812 million (before taxes) on revenue of $24.5 billion in its North American vehicle operations. GM can spin this all they want, but it's a heaping, steaming giant bowl of Not Good.

GM. Publisher's Note: This company continues to dance around the fact that its North American vehicle operations are simply out of touch with the reality of what's going on in this market. With too many models, too many divisions and too many dealers, GM will continue to lose money hand over fist in North America, and it's simply unacceptable at this point. Where is the leadership? Where is the vision? Where is the outrage? When is somebody down at the RenCen going to stand up and say "This ain't working!" What the hell is the so-called board of directors doing and why do they continue to rubber stamp what's going on in GM's North American operations, quarter after quarter after quarter? It's one thing to keep re-aligning GM's divisions here in an attempt to streamline the operating structure because that all sounds good on paper, but unless and until they start cutting divisions, cutting the model overlaps among the divisions and cutting their dealers dramatically, this company will continue to do piss-poorly in the U.S. market. GM resolutely believes that things are going to get better in North America, and that's fine, a little optimism never hurt anyone. But this is ridiculous. Nothing fundamentally has changed that will eventually improve this situation. And I mean n-o-t-h-i-n-g. Dealers are still clamoring for more products so that they can do what, sell against other GM divisions in their local markets? Frickin' brilliant. All the great products in the world aren't going to matter one bit if GM can't do what needs to be done in their home market. At this point what's going on in the North American market lands squarely in the lap of Rick Wagoner. Fix it, Rick, because this situation is getting flat-out embarrassing. If not, then a regime change will be in the offing long before you're ready to retire. - PMD

Buzz Hargrove, The CAW. The new labor contract that the Canadian Auto Workers union and Ford have agreed to - which doesn't include the two-tier wage package agreed to by the UAW in the U.S. - is short-sighted and will accelerate the reduction in significance of Canadian manufacturing plants for the Detroit Three. Buzz Hargrove, the beyond-tedious CAW president who is headed for retirement, is hell-bent on burnishing his reputation on the way out as the guy who wouldn't give in to the big, bad auto companies. But with the Detroit Three's U.S. auto plants gaining a distinct cost advantage over their Canadian plants after this agreement, we will more likely look back on Hargrove as the guy who just didn't get it and the guy responsible for the eventual demise of auto manufacturing in Canada altogether.

Bob Lutz. He shows up in the May 5 issue of Newsweek to talk about "The Road Ahead for Cars" in the "My Turn" column. He reiterates what he's been saying to the automotive media for months, only this time it's to a wider audience. Check out the background in his photo (as art directed by Newsweek) - with the yellow sun hovering in an azure sky over his right shoulder - with green mountains visible to boot. Is Lutz Detroit's new "Sun King" or "Mr. Blue Skies???

U.S. Rep Joe Knollenberg. Knollenberg (R-Bloomfield Township, MI) proposed a $1.2 billion aid package (over five years) and annual tax rebates worth as much as $3.2 billion for the U.S. automakers yesterday in order to assist them in meeting the new EPA mileage targets. He unveiled his "Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency Act" (the BIG THREE Act, get it?) to focus attention on the plight of what's left of the not-so-big-three and to help one of the country's most economically devastated industries (and regions). It's a nice thought and all, but since the current presidential candidates have demonstrated little or no interest in facing the fact that this country's manufacturing base is eroding at a rapid rate, the likelihood that anyone in Washington would get behind something like this is somewhere between slim, none and notgonnahappen.com.

Carlos Ghosn. He's hinting that a deal between Nissan-Renault SA and Chrysler is unlikely. Don't believe it for a second.

Mary Peters. The U.S. Transportation Secretary is launching a website to communicate in a "...twenty-first century way!" as she put it. One problem? The site's web address is www.fastlane.dot.gov, which is close to GM's www.fastlane.gmblogs.com. Come on, Mary, you and your staff couldn't come up with anything besides "fast lane" in the title? Geeez.

Porsche. The new EPA CAFE rules hammer the German automaker because the company's sports cars have short wheelbases and consequently small footprints. That means higher fuel economy targets under the new regulations. According to Automotive News, if the industry builds the mix of vehicle sizes that NHTSA projects, Porsche cars would have to average 41.3 mpg in 2015, ­ about 7 mpg better than Toyota, Lexus and Scion cars collectively. Will Porsche fold up its tent and abandon its most lucrative market? No. But it and other high-performance and luxury-performance automakers under the same fuel economy pressure will most certainly "bake-in" the fines that are sure to be handed out for not meeting the new standards. The only question remaining is what those fines will be, as NHTSA is contemplating either keeping them the same as they are now, or raising them. We can easily envision enthusiast consumers paying a $15,000 - $20,000 premium per car just to cover the fines the manufacturer will have to pay if this should go the wrong way.

Pontiac G8. Publisher's Note: We've been driving the new Pontiac G8 GT for a few days and it has to be the performance bargain of the year. $31,845 for a big, powerful, quick, V-8-powered rear-wheel-drive sedan that's light on its feet and fun to drive? What's not to like? No, the mileage isn't great if you drive around with your foot in it all the time, and the exterior design is only marginally acceptable, but the car is definitely worth serious consideration if you want real performance for under $32,000. Does it change the fact that Pontiac is definitely on the "bubble" in the GM divisional hierarchy? No, but it's a very desirable car nonetheless. If it was Pontiac back in the division's heyday, the print ad for the G8 GT would probably carry this headline: Grrrrrrr8! - PMD

GM Powertrain, Chevrolet Corvette. In case you missed it last week, here's a video of the Corvette Development Engineering team verifying the top speed - 205 mph! - of the supercharged, 638 horsepower (476 kW) and 604 lb.-ft. of torque (819 Nm) Corvette ZR1 at a test track in Papenburg, Germany. Watch it by clicking here. The sound of the monster LS9 V8 is simply incredible. The limited production ZR1 will be available beginning this summer.

Dave Barnas. As first reported by the Detroit News, Dave Barnas, who was basically the last PR guy standing at Chrysler, has left the company to join the Saginaw, Mich.-based Steering Group, a spin-off of Delphi Corp. A good move. After all, when the company you're working for never believed in the crucial importance of PR in this day and age to begin with, and the head of the company thought he could do just fine without it, why bother?

The Onion. The publication strikes again with this hilarious article about a new NHTSA program to address rising pedestrian deaths in the U.S. called the 'Get the Fuck Outta The Road' program. The Onion says, "Included in the pamphlets are tips on how every responsible pedestrian can learn to 'Get The Fuck Outta The Road,' including 'Move your ass!' and 'Look where you're fucking going for once!' as well as an instructive diagram for removing one's head from one's ass prior to stepping into the crosswalk." Go to it here. Priceless.

GM Powertrain, Chevrolet Corvette. SAE certification of the supercharged LS9 V-8 in the new Corvette ZR1 due this summer is now complete, and the numbers are noteworthy, to say the least: 638 horsepower (476 kW) and 604 lb.-ft. of torque (819 Nm), for a power output of nearly 103 horses per liter, or just about 1.7 horses for each of the engine’s 376 cubic inches. The monster motor enables the Corvette ZR1 to achieve a top speed of more than 200 mph (322 km/h). The LS9 engine is hand-built by specially trained technicians at GM’s Performance Build Center in Wixom, Mich, the unique, small-volume engine production facility that also builds the Chevrolet Corvette Z06’s LS7 engine and other high-performance GM production engines. “Developing the LS9 involved more than simply striving for a great horsepower number. Endurance and reliability testing have shown the engine to be robust and low-maintenance, just like other engines in the small-block family,” said Sam Winegarden, executive director, engine engineering for GM Powertrain. “That it is distinguished as the most powerful engine ever from General Motors is a source of immense pride among everyone involved with the LS9.” You can see a video of the Corvette Development Engineering team verifying the top speed - 205 mph! - of the new ZR1 at a test track in Papenburg, Germany by clicking here. Prepare to be impressed by the sound of that awesome motor!

U.S. Consumers, The Detroit Three. From the "It's Gonna Get Ugly" File comes word that the EPA is moving its fuel economy targets up. The numbers? 35.7 mpg on average for cars and 28.6 mpg on average for light trucks for an overall fleet average of 31.8 by 2015. Those were the fuel economy requirements announced by the U.S. Department of Transportation and NHTSA at an Earth Day event yesterday in McLean, VA, on the way to an industry fleet average standard of 35 mpg that's due by 2020. This newly aggressive, front-loaded schedule will radically alter the choice of vehicles consumers have in seven years time, and those vehicles will be much costlier too. Some estimates suggest that the auto industry will have to spend upwards of $50 billion to meet the requirements by 2015. We've been warning for a long time that the U.S. car buying consumer isn't even remotely ready for the changes coming. Trust us on this one, folks, this will not be pretty.

Chevrolet. GM's volume division held a small media event yesterday to tout the sales performance of its totally revamped Malibu - particularly in the New York (up 135 percent), California (up 186 percent) and Florida (up 91 percent) markets - while also announcing that the Malibu equipped with the 2.4-liter Ecotec 4-cylinder engine is now available with the Hydra-Matic 6T40 six-speed automatic. The new powertrain combination slated for the Malibu LTZ (MSRP of $26,545) delivers 32 mpg on the highway (which exceeds the mileage of the Toyota Camry and Honda Accord 4-cylinder models). That's all well and good, but just the fact that the Malibu is on consumers' consideration lists for basically the first time ever is a major accomplishment for GM and Chevrolet. Small victories.

Wendelin Wiedeking. Automotive News reports that the Porsche CEO (aka Piech's "boy") is the auto industry's highest paid executive, earning close to $100 million in 2007. What's the German translation for "f--- you money" again?

The UAW. Strike, strike and more strikes. When you're riding out the last vestiges of an entitlement empire that was easily obsolete 15 years ago, that's all you have left. The UAW's last gasp actions will drive countless jobs off-shore, hastening their ultimate demise. Nicely done.

Bill Vlasic. The new Detroit Bureau Chief for The New York Times distinguished himself with an outstanding piece in last Sunday's Business Section about Jim Farley, the ex-Toyota marketing guru who now has the reins at the Ford Motor Company. Vlasic not only perfectly captured Farley's passion and commitment to Ford, he took the reader inside Farley's thoughts - and his heart - for an intimate portrayal of the man, giving even the casual reader an understanding as to why he will make a huge difference for the Ford Motor Company going forward. A superb job by Vlasic.

GM's New Marketing Honchos. On the surface, the GM marketing re-org, which gives four people control of GM's marketing channels - Ed Peper (Chevrolet), Mark McNabb (Cadillac-Hummer-Saab), Susan Docherty (Buick-Pontiac-GMC) and Jill Lajdziak (Saturn) - sounds good, giving them more input on product, control over sales and incentives, etc., but we'll believe the autonomy part of it when we see it.

Chrysler. We love to hear that the Chrysler powers that be are predicting great things for the company internationally, but the reality of the situation is that most of them won't be there when it happens, because Carlos Ghosn will be running the show by then. But it's a nice thought anyway.

Mary Peters. The U.S. Transportation Secretary called the accelerated EPA mileage standards for 2015, "...historically ambitious, yet achievable." Uh, whatever you say, Mary. And that's also our AE Quote of the Week.

GM. Toyota's first quarter global sales? 2.41 million vehicles, up 2.7 percent. GM's? 2.25 million vehicles, down less than 1 percent, with 64 percent of those sales coming from outside the U.S. Toyota surpassed GM in global production last year and will probably overtake GM in global sales at the end of this year. 

Ford. Posting a net income of $100 million on total revenue of $43.5 billion during the first quarter, Ford is gaining real traction on its way back from the abyss.

(Courtesy of GM China)
GM unveiled the new Buick Invicta Concept at the Beijing Auto Show this week. If you squint real hard you can see hints of the next-gen Buick LaCrosse in there somewhere. The Invicta name was last used by Buick in the late 60s, when cool car names reigned supreme in the Motor City.

(Courtesy of GM)
The Saab Convertible Yellow Edition available this spring is based on the 2.0T version, with special Lynx Yellow paint, Aero look items such as 17-inch, five spoke alloy wheels, a subtle rear spoiler, and premium audio system with XM radio and OnStar. The 2008 Saab Convertible Yellow Edition has a MSRP of $42,830, including destination charges.

BMW. Please tell us why the base price of the new BMW xDrive50i crossover starts at $63,775? We get the fact that German auto manufacturers are masters of the greed angle, and we get the fact that some people are blinded by the blue and white propeller emblem, but since the "xDrive50i" (how's that for a committee-think vehicle name?) is already one of our leading candidates for next year's Answer to the Question that Absolutely No One is Asking, where are they going to find buyers for the homely thing? And at $53,275, the xDrive35i doesn't sound any better.

Nissan. Chrysler hires the former Nissan quality chief - Doug Betts - to perform his magic in Auburn Hills. Which means he left one job to do the same job for a different car company, only he's probably going to end up working for the original car company in his old job after all is said and done. Wait a minute, what was that again?

Tesla, Henrik Fisker. From the "Lawyers, Guns and Money" File comes word that Tesla Motors is suing designer Henrik Fisker because Fisker has plans to introduce his own electric-hybrid four-door sedan after designing the same type of vehicle for Tesla. The lawsuit accuses Fisker and Bernhard Koehler, the chief operating officer of Fisker's design company Fisker Coachbuild, of misappropriation of trade secrets, fraud and breach of contract. Fisker had been hired to design the interior and body of the Tesla "WhiteStar" sedan in 2007, but he then showed up at the Detroit auto show last January with a "green" sedan of his own, and needless to say, that didn't sit well with the Tesla boys. The lawsuit was filed on Monday in San Mateo Superior Court in California. The winner in all of this? The lawyers, of course.

Alfa Romeo. Trying to scrounge up revenue any way they possibly can, Chrysler has offered to produce Alfa Romeo cars in its U.S. factories, the German newspaper Handelsblatt reported late yesterday. Somehow a U.S.-built Alfa just doesn't sound right, the more we think about it.

Ford. The "Drive One" campaign is right for the brand, and right for the real world context that the brand has to live in. Well executed and compelling, now it's up to Ford to stay focused and be consistent with the campaign for years to come. If they can do that, the campaign may just begin to resonate with consumers.

  John McCain, Hillary Clinton. From the "He Said, She Said" File, Sen. John McCain says that if elected, he won't bail out the Detroit auto companies with federal funds. Sen. Hillary Clinton says that if she's elected, however, the Detroit auto manufacturers wouldn't be allowed to go bankrupt under her watch. Which proves convincingly that political candidates will say anything to get elected. It would be nice if once elected that the President-elect - whomever it is - considers the steadily eroding manufacturing base of this country as an asset that needs nurturing and revitalizing. That would be at least a start.

The Detroit Three. The "buzz" in Detroit is that gas prices are starting to seriously affect car buying decisions. Not exactly a revelation by any stretch at this point, but the industry was wondering if and when people would start altering their choices in vehicles beyond the inevitable gas price spikes. Some analysts have gone on record as saying that gasoline would have to go north of $5.00 per gallon - and stay there - before people started to alter their buying/driving habits. That's not the case, apparently, as industry analysts are seeing a noticeable shift away from large trucks and SUVs, one that not only seems to have staying power, but one that's accelerating too. A case of not anticipating the biggest "duh" of 2008? No, a case of the Detroit automakers not being able to shift away from big truck and SUV production fast enough to keep up with a major swing in consumer tastes.

Ford. It's not all bad news in Detroit, however. Ford Focus sales are up 23 percent in the first quarter (a stunning 35 percent in March), and the Focus is now third in U.S. small car sales behind the Honda Civic and Toyota Corolla.

The Delta-Northwest Merger. We can't imagine things could get any worse when it comes to flying these days (jammed flights, climbing ticket prices, nonexistent service, etc.), so we're not thinking the merger will make much difference for Metro Airport. We do have a glittering, first-rate terminal, but that's about it. Given that, however, since optimism is in short supply around these parts we're hopeful that something will be better when flying out of Detroit on the "new" Delta.

"Team Shelby." From the "Losers Be Us" File comes word that 2,000 people have actually signed up for Carroll Shelby's new "Team Shelby" - the organization formed to cut the legs out from under the Shelby American Automobile Club. P.T. Barnum was so right. 

GM Marketing. If we had a sideways arrow for this item, we'd use it. A year after we first reported that substantive changes were afoot for GM marketing, Mark LaNeve (GM's vice president of North America sales, service and marketing) has hired former Nissan executive Mark McNabb to run its premium brand channel as part of a total reorganization of GM's marketing function. The changes include the elimination of GM's regional sales manager positions, while giving GM's new brand-channel executives decision-making authority. GM's four brand channel strategy includes Chevrolet (run by Ed Peper, 46, who becomes North America vice president), Buick-Pontiac-GMC (run by Susan Docherty, 45, who becomes North America vice president), Saturn (run by Jill Lajdziak, 51, who continues as Saturn general manager but adds sales responsibility to her role) and Cadillac-Hummer-Saab, (run by McNabb, 47, who also becomes a North America vice president). Jim Bunnell, 52, formerly the general manager of Buick-Pontiac-GMC becomes executive director of the channel support group. The general managers, Jim Taylor (Cadillac); Martin Walsh (Hummer) and Steve Shannon (Saab) stay, but they all will report to McNabb. On paper, this plan should work much better, especially now that Brent Dewar has been moved over to Europe and out of the way, leaving a more streamlined, responsive organization. We'll see how the reality of it plays out.

Stephen A. Feinberg. The "reclusive" founder of Cerberus Capital Management has discovered the value of Public Relations, apparently, as he seems to have embarked on a very limited charm offensive for the first time in his life. In a frankly weird story in yesterday's New York Times reported by Andrew Ross Sorkin, Feinberg tried to portray himself as just a regular guy caught up in the maelstrom of shit that his company's involvement with Chrysler has caused. Not to mention his company's GMAC troubles. It didn't work. Feinberg's reluctance to understand the power of the media all of these years, on top of the fact that Cerberus is totally overwhelmed by the scope of its Chrysler misadventure, has proven to be disastrous for the company. And there's no amount of "spin" articles or a new, "enlightened" communications strategy that will undo the damage that has already been done to Cerberus as a brand, and a company.

Daimler AG shareholders. CEO Dieter Zetsche tells shareholders at the annual meeting of Daimler AG that "We have a clear strategy for sustainable profitable growth." Uh-oh. Didn't he say something similar right before he flew Chrysler into the ground? He also said, "Your Company has made substantial progress over the past two years. Old virtues have given us new strength." Which "old virtues" are those exactly? The arrogance plus engineering overkill, or just the marketing incompetence?

Ford. The automaker says it will put special "Blind-Spot Tracking Mirrors" that show blind spots in the outside upper corners in select Ford, Lincoln and Mercury models to start, eventually making them standard across most of its lineup. It also will offer an optional radar-based blind spot warning system similar to those marketed by other automakers, but with the ability to scan parking lot aisles and warn of oncoming vehicles as a driver backs out of a space. Next up? Day-Glo green exterior lights to warn other drivers when you have a latte in one hand and a cell phone in the other, while you're steering with your knees. These "Knee-Jerk" lights will be available on SUVs and minivans first, for obvious reasons.

The Wall Street Journal. They trumpet a front page story yesterday about the prospects for the Detroit auto manufacturers to begin exporting cars and trucks around the world because of the weakened dollar. Besides the fact that the story was wildly premature, the reality of the situation is that the likelihood of exports having even a negligible impact on Detroit's fortunes anytime soon is pure folly. The buzz among the auto media legions right now? That the WSJ's auto coverage is really stinking up the joint of late.

The Missouri House. For the third straight year, the Missouri House has approved a tax break for state residents who buy vehicles made in Missouri. The House gave first-round approval Tuesday to a bill creating a tax credit equal to the state sales tax for cars, trucks, vans and motorcycles manufactured in Missouri. It needs another vote to move to the Senate, but it's doubtful it will matter, because the Senate has killed the measure two years running. Nice thought for the State of Michigan, too, except for the fact that the State is broke and can't afford it.

Fiat. One of our favorite Internet stops of the moment is FIAT500.com, the website that tells you everything you need to know about the fabulous Italian minicar and 2008 Car of the Year. Don't miss the "Abarth Experience" if you go.

Chrysler. "If you can dream it, we can build it" is the new touchy-feely, customer responsive advertising campaign from Chrysler. One question: If we could actually dream it, why would we even remotely want Chrysler to build it?

Detroit. After dealing with a corrupt, defiant and relentlessly embarrassing Mayor, the implosion of our hometown auto industry, year three of our "one-state" recession, the worst roads in the country and a perennial also-ran NFL team, we at least knew we could count on our Tigers. Except now they suck. Oh well, we still got a hell of a hockey team in the Red Wings, and the Pistons are going to be in the thick of it until the end. We hope.

The Biz. From "The Sky is Falling" File, comes word that March sales were in the dumper (no big surprise), and with no relief in sight it's shaping up to be a grim spring and summer. Toyota sales were down 10.3 percent. For the record, that makes seven out of the last nine months of downward sales for "The Juggernaut," which hasn't happened in 25 years. Chrysler sales were down 19.4 percent. GM, down 18.7 percent. And Ford sales were down 14 percent. Even though there were two fewer selling days, March was u-g-l-y. Bright spots? The Ford Edge is selling well in California (an encouraging sign), and the new Ford Focus was up more than 30 percent in March. GM's Buick Enclave-GMC Acadia-Saturn Outlook trio performed nicely, as did the Chevrolet Malibu and Impala. Other than that, the car biz is reeling, and it will get worse before it gets better.

Toyota. The Japanese automaker's conquer-the-world growth plans have been derailed by the swooning economy in the U.S,. and the dreaded "O" word - for overcapacity - is now becoming part of the Toyota lexicon. The good news, at least for Michigan? the automaker is pumping another $100 million into its existing complex outside Ann Arbor to do research on safety and efficiency.

Porsche. For the company formerly known as a maker of exclusive sports cars, March was a heapin', steamin' bowl of Not Good, with sales down 24.7 percent.

Saturn. Publisher's Note: It's clear that Saturn as a brand within the GM solar system is in trouble. What once seemed like an embarrassment of riches when it came to new product coming on-line - what with the totally revamped VUE and the full-size Outlook crossovers, the handsome Aura sedan and the new Astra small car - Saturn looked poised to make some real noise in the U.S. market. But the reality of GM marketing having to juggle eight divisional brands in the air is killing Saturn. The Aura is lost in the Malibu's white-hot glow, the Outlook is MIA compared to the Buick Enclave, the excellent VUE deserves much more attention, and the Astra's tenure in this market will be short-lived if the dollar stays where it is. With a new ad campaign blitz about to bow for Saturn, one tough issue remains: If the corporation can't afford to support and sustain the new products Saturn has, then maybe its time to rethink Saturn's product future altogether. It's ironic that the division that was once wandering around lost in the wilderness starved for new product finally finds itself with a very competitive vehicle showroom, yet it can't gain traction in the market because it doesn't have the marketing firepower to get it done. Not Good is an understatement. - PMD

GM. What, no tribute ad on the occasion of Hal Riney's passing last week? He not only put Saturn on the map, without "Spring Time in Spring Hill" there probably wouldn't even be a Saturn today. A missed opportunity.

The UAW. As the UAW's strike action against American Axle goes into its fifth week idling or slowing 30 GM plants, the company puts feeler ads out in newspapers and on-line for replacement workers - and proceeds to get inundated with job applicants. The union actually naively believes that it and its members could never be replaced. Think again.

Japan, Inc. In the March 24 issue of BusinessWeek, Jim Press, vice chairman and president of Chrysler LLC and a former board member at Toyota was quoted as saying, "The Japanese government paid for 100 percent of the development of the battery and hybrid system that went into the Toyota Prius." A Toyota spokesman issued a denial today saying: "I can say 100 percent that Toyota received absolutely no support - no money, no grants - from the Japanese government for the development of the Prius," Toyota spokesman Paul Nolasco said. Well, which is it? We told you Press can change his stripes at the drop of the hat, and now that he's "Captain America" in his new role at Chrysler it wouldn't be beyond him to exaggerate to make a point. The Japanese government's close links with its auto industry, however -  particularly with Toyota - are well known, so we're choosing to believe Press on this one. It may not have been "100 percent," but it sure as hell wasn't a passive role either.

The Motor Press Guild. Publisher's Note: I heard from an old friend today - Chuck Koch - who is now the Executive Director of the Motor Press Guild out in Los Angeles, and he relayed a timely summation from the MPG's regular monthly lunch meeting, which took place yesterday. The subject? A panel discussion on Automotive Design featuring the heads of the major transportation design schools: Stewart Reed, Transportation Design Department Chair, Art Center College of Design; Tom Matano, Executive Director, Academy of Art University; and Mark West, Interim Transportation Department Chair at the College for Creative Studies. The panel (which was moderated by Eric Noble of The Car Lab) was asked before hand to rate the four qualities that are important in design and which companies are doing the best job in meeting these qualities.

First, the four qualities in the order of their ranking by the panel:

1) Innovation and Originality, 2) Beauty, 3) Strategy, and 4) Brand Fit.

And how did the panel think the various manufacturers did in meeting these qualities?

Innovation, Top 3: BMW/Mini, Mazda, and VW. Bottom 4 in no particular order were Mitsubishi, Chrysler, Subaru, Suzuki.

Beauty, Top 3: Aston Martin, Ferrari, BMW. Bottom 4 - Chrysler, Mitsubishi, Subaru, Suzuki.

Strategy, Top 3: BMW/Mini, Porsche, Ferrari. Bottom 4 - Chrysler, Mitsubishi, Ford, Suzuki

Brand Fit, Top 3: BMW/Mini, Porsche, Ferrari. Bottom 4 - Chrysler, Mitsubishi, Ford, Suzuki

So, if design is the essence of the machine, then Chrysler, which just a few short years ago was on the top of the design world, has completely fallen off the radar screen, according to the three leading educators who are training the next generation of auto designers. And it's clear that Jim Press (forgetting Bob Nardelli altogether since he isn't even remotely qualified) doesn't have the tools to pull up on the yoke before auguring in.
- PMD
 

Publisher's Note: It's becoming apparent that with the major auto show schedules playing out the way they do - with L.A. at the end of the year, followed by Detroit, Chicago and Geneva - that the New York International Auto Show is suffering. There was an overall lackluster feel to the show this year, which had members of the media grumbling almost from the moment they set foot in the Javits Convention Center. That said, I thought I'd give you a wrap-up of the show with some quick hits and misses from last week. The good stuff? The new Honda Fit was outstanding and so was the shimmering BMW Concept CS. The Saleen Raptor supercar and the Saleen Dan Gurney Edition Mustang were both enthusiast worthy. The Toyota Scion Hako Coupe concept was really good in the flesh. And the Ford Transit Connect could easily be our big city taxi of the future. The full lineup of the Dodge Challenger showed promise. The Pontiac Solstice Coupe and the G8 GXP almost made us forget about the sport truck. Almost. The Nissan Denki Cube and the Mitsubishi iMiEV electric concepts were both very interesting. So was the Mazda2/Demio. The new Nissan Maxima? I haven't made my mind up yet. It could be pretty good, or it could fall in the next category too. The not so good stuff? The new Acura TSX is 2008's version of asleep at the wheel. How can a company do such a great job on the Fit and unload this monument to tedium on the public? Absolutely mystifying. And I refuse to get excited about the Hyundai Genesis Coupe because it rates as just "ok." The Kia Koup Concept might fare better, but frankly, when you know the Krazy Koreans are behind both of these cars all you can do is file any optimism about them under a giant boulder of salt and just move on. The Concept Kisashi Series vehicles from Suzuki were mildly interesting, until they started blending in to the we've-already-seen-it-before "derivative" woodwork in about five minutes. And the Worst in Show? No surprise here, but that honor goes to the Pontiac G8 Sport Truck. Not because I don't like El Caminos, because I do. As a matter of fact, I spent many a blissful hour behind the wheel of a GMC version of one in my role as a driver/gopher back in the day. But a Pontiac? No frickin' way. I predict GM will back away from bringing the Pontiac Sport Truck over here, unless Chevy wants it in order to bring the El Camino back. Oh, and one more thing. The Worst Media Unveiling? Hands down the Mercedes-Benz faux political convention - for their Bluetec diesels - complete with falling red, white and blue balloons and raving campaign "supporters" waving "Bluetec" campaign placards. It was so tedious that I forgot what M-B was selling. Oh well, there's always next year... - PMD

GM, Chevrolet. It wasn't really big news or all that unexpected, but GM Vice Chairman Bob Lutz revealed to Automotive News at the New York show that GM is contemplating putting the 2.0-liter, direct-injected, turbocharged, 260HP four-cylinder engine from the Pontiac Solstice GXP (and Sky Redline) into the 2009 Camaro as a standard engine package - if gas prices continue to spiral upward. GM will sell all of the V8-powered Camaros they can build to old-school enthusiasts, but if Camaro is going to be able to sustain itself in the market for the longer term, then the 4- and 6-cylinder versions will be the ones that have to deliver the kind of all-around goodness needed for the Camaro to succeed.

BBDO West. It was reported yesterday in AdAge that Mitsubishi Motors North America is readying a review of its U.S. general market creative agency. It was also announced that BBDO West, Los Angeles, which won the account three years ago, would not be participating in the review. Memo to BBDO West: Would you miss it?

Passenger, L.A. In order to recruit up to 5,000 members for its Chrysler Advisory Board, Chrysler teamed with Passenger, Los Angeles, for the on-line forum "listening" effort. The company will provide the software-servicing platform and consulting on how to best optimize the program, while screening the volunteers, according to AdAge. Our AE Quote of the Week goes to Justin Cooper, Passenger co-founder and chief innovation officer, who had this to say to AdAge: "People feel empowered by becoming brand-advisory members, and brand advocacy is the byproduct of this." If it were only that easy, Justin, and besides, are you suggesting you can turn shit into Shineola too? Good luck with that.

Joe Laymon. First off, the Ford Human Resources chief tried to hold off Automotive News from writing a wildly premature story about Jim Farley being the heir apparent to CEO Alan Mulally by divulging a list of possible successors in a move that ended-up backfiring in a big way by drawing even more attention to the story. What part of that actually seemed like a good idea at the time? Secondly, Laymon also went out of his way to praise Chrysler’s “Minimum Bob” Nardelli with the following statement: “Nardelli has skills that will work in this industry. Those who have been second-guessing how good he’s going to be will be proven wrong.” Oh really, Joe? What skills are those, exactly? Wreaking havoc throughout the organization with his inherent lack of product feel or even a rudimentary understanding of the nuances of this business? How about by being woefully out of touch with the burgeoning realities facing Chrysler? How about his piss-poor communication skills and his utter futility in communicating with the media – that is when he’s not avoiding communicating at all - unless it’s by carefully arranged media séances orchestrated by his hand-picked PR mouthpiece in New York? Or how about his absolutely uncanny inability to understand even the basic of marketing concepts, unless its being spoon-fed to him by Peter Arnell, of course? Yup, sounds like exactly the kind of skills that this industry needs more of, Joe.

Joe Laymon. After one day of publicly being the "owner" of Ford's succession planning process, Joe Laymon resigned yesterday (it had been long in the works) and will be replaced as head of human resources and corporate services by Felicia Fields. Laymon was named vice president of human resources and medical services at Chevron Corp. After ol' Carlos takes Chrysler off of Cerberus' hands, maybe Joe can bring "Minimum Bob" Nardelli over to Chevron...

Ford. The company finally unloads Jaguar and Land Rover to India's Tata Motors for $2.3 billion. Ford will also deposit approximately $600 million into the pension fund for Jaguar and Land Rover workers once the deal is completed in June. One problem, however. What are all the Ford execs who drive Jag and Land Rover company cars going to do now?

Fiat. The Italian auto company is eyeing the U.S. as a location for a manufacturing facility to produce Alfa Romeo cars and Iveco trucks in the 2011-12 time frame. The company is already talking to U.S. automakers about sharing production facilities, according to the Financial Times. Specifically, Fiat is considering southeastern Michigan as its prime target for producing vehicles here. Long suffering Alfa fans haven't been able to buy their favorite car here since 1995. That's all well and good - if they don't screw it up, of course - but we're just as interested in seeing Fiat bring their new little 500 here.

Chrysler. From the "Not Good" Files comes word that Mike Donoughe, one of Chrysler's best and brightest vehicle engineers, resigned yesterday. This after Donoughe was named head of Chrysler's ultra-confidential "Project D" just this past January. Donoughe was leading the development on the next-generation global mid-size car platform to replace the Chrysler Sebring and Dodge Avenger, clearly the most crucial product development program in the company. The Wall Street Journal reported Donoughe left the company after clashing with senior management, according to their unnamed sources. Chrysler denied the "clash" story in a prepared statement, but no one's buying it at this point. The culprit strongly rumored to be the cause of Donoughe's departure? Peter Arnell. Not Good indeed.

Buzz Hargrove. The egomaniacal Canadian Auto Workers president is on a rampage, telling everyone within earshot that his union will not accept a U.S.-style two-tier wage deal from the U.S. automakers during upcoming contract negotiations in July. Reuters quoted Hargrove as saying: "It's my last set of negotiations and my legacy is not going to be that the sons and daughters of current workers that were hired over 20 years ago are going to come in at the same rate in 2008 as their parents did in '86 or '87." That's right Buzz, it is, of course, all about you, isn't it? No one has done more damage to the CAW union's cause than this buffoon has. His over-the-top posturing and juvenile stump speeches have grown more tedious by the episode, and his head-in-the-sand, out-of-touch view of the world has become nothing more than a wincing embarrassment with each passing day. The pathetic thing in all of this is that the louder Hargrove gets, the more people tune him out. He just might get his wish in the end because what's left of the "Detroit Three" will eventually stop listening to Hargrove altogether - assessing his clown act behavior as being counterproductive and an obstacle to the process - and then walk production right out of Canada completely. Some legacy, eh, Buzz?

Hal Riney. Publisher's Note: One of the most talented and influential advertising professionals of all time died yesterday from cancer at the age of 75. Riney was responsible for some of the most memorable and effective ad campaigns in history, including work for E. & J. Gallo winery, the Bartles & Jaymes wine cooler brand, Henry Weinhard beer and the remarkable spot he created for Ronald Reagan's political campaign entitled "Morning Again in America." But probably the single most important work Riney ever created was for GM's Saturn brand. Shrewdly avoiding focusing on what was then a decidedly very ordinary car, Riney instead created an aura for the brand, a blissful state of mind portrayed brilliantly in a client presentation film called "Springtime in Spring Hill." The film, which closed with the memorable theme line - "A different kind of company. A different kind of car." - became the pivotal launch spot for the Saturn campaign, setting the tone for the brand for years to come. Mr. Riney is survived by his wife, Elizabeth Sutherland Riney, and two children from a previous marriage, Benjamin, 21, and Samantha, 19. His ashes will be spread at Mount St. Helens, Wash., where he grew up and loved to fish and hike, Ms. Riney said. A wake celebrating his life is being planned to take place in about a month, according to AdAge. In a shallow world where the term "legend" is used at the drop of a hat and the adjective "great" is thrown around flippantly with little or no meaning, Hal Riney's legendary work will endure for all time, and he will be remembered as being the greatest adman of his generation. - PMD
 

GM. The company is going to share research on consumer behavior and media effectiveness with the largest U.S. marketer, Procter & Gamble, according to Automotive News. What part of this seemed like a good idea, exactly? Wasn't one P&G-orchestrated "Reign of Terror" enough at GM? What's next? Are John Smale and Ronnie Z. coming back to add their cumulative knowledge (cough, hack) of the auto industry to the GM marketing mix too? Sounds like a heaping bowl of Not Good to us. Memo to Betsy Lazar, GM's executive director of advertising and media operations: PULL UP!

GM, Ford. On top of everything else going on in the financial sector, GM and Ford stocks dropped to their 52-week lows on Monday. It's getting u-g-l-y, folks.

Hyundai. The Korean automaker plans on unveiling the production version of its up-market Genesis Coupe concept in New York, which is all well and good, except for the fact that the factory continues to bring in boatload after boatload of Hyundais and Kias that their dealers can't sell as it is. As if that weren't enough, Kia is even contemplating building a pickup in Georgia. Well, why not? They can always replace their executive roster again when this doesn't work. Besides, their new internal themeline is "We'll Make More!"

The UAW. The labor union is seeking job guarantees from American Axle & Manufacturing in order to settle the three-week-old strike. Repeat that statement to yourself and shake your head.

Dave Weber. Following Acura's creation of a separate design center in L.A. and a brand specific R&D center in Japan, Rubin Postaer and Associates, the Santa Monica, Calif.-based ad agency for the Honda and Acura brands, is creating a separate division to handle the Acura business. Dave Weber, 53, has been hired to be the general manager of the new division of RPA. He was vice president of marketing at Hyundai Motor America from 1998 to 2002, and also did stints with ad agencies servicing the Nissan, Mazda and Suzuki brands along the way. Dave is one of the brightest guys in the business, and this is an excellent move for RPA and Acura.

Ford. The good news? Ford will show a Ford Taurus in their display at the New York International Auto Show that was crashed into a barrier at 35 mph to demonstrate the safety built into its cars. Nice thought, but the bad news? People don't go to auto shows to see crashed cars - especially in New York - the land of more dinged, smashed and beat to shit cars than any other city in America.

Digital Media. GM is going to switch half of its $3 billion advertising-marketing budget to all forms of digital media and experiential, one-to-one marketing over the next three years. Our check, as they say, is in the mail. Right.

(Photo courtesy of Ford)
A glimpse of our future urban landscape? Ford unveiled the Ford Transit Connect Taxi concept at the New York International Auto Show. According to Ford, the Transit Connect Taxi concept "offers a new perspective on how to move people and their gear through congested city streets - more cleanly, efficiently and with new technology that could revolutionize the taxi industry." Rumors that several on-board fragrance option packages will be available could not be confirmed.

(GM Photo)
GM teased yet another design exploration for Buick in New York. The Invicta concept is an exploration for a luxurious show car that GM plans to reveal in China at the Beijing Motor Show on April 19. The Invicta, which is Latin for invincible, evolves Buick’s global design direction from the Riviera concept introduced last year in Shanghai. The Invicta show car was co-developed by GM design centers in North America and China "to meet customers’ expectations equally in the world’s two largest automotive markets," according to GM.

(GM Photo)
Pontiac introduced a Solstice Coupe with a removable hardtop in New York, a developmental offshoot of Pontiac's grassroots racing program for the car.

 
(Photo by Emile Wamsteker for General Motors)
Saab USA General Manager Steve Shannon presents flowers to Swedish fashion designer Josefin Lassbo after the introduction of Saab's new Pure BioPower Eco Clothing Collection on the eve of the New York Auto Show last night in New York. The fashions were revealed at an exclusive party where the Saab 9-X BioHybrid concept made its North American debut.

Ron Gettelfinger, UAW. Your strike action against American Axle & Manufacturing Holdings Inc. is turning into a disaster - for you - and what's left of your union. GM is chugging along happily reducing light truck inventory, and now American Axle suggests it will move more of its operations out of the U.S. if you don't get it together. The choice is clear: jobs at reduced wages and benefits, or no jobs at all. Stubbornness is not a virtue in this case Ronnie G.

The Hummer H3T Pickup. If there's an upcoming model that falls under the definition of the wrong vehicle at the wrong time, it's the Hummer H3T pickup due next fall. The potential for this truck to be a non-starter in the land of near $4.00 per gallon gasoline is huge. Hummer doesn't need another product that requires "excuse" marketing at this point. The future of the Hummer brand lies with the HX concept unveiled at the NAIAS. The H4 - as it will be called - was needed yesterday.

Chrysler. The hits just keep on coming for the Gang from Auburn Hills as Chrysler products stunk-up the latest Consumer Reports annual auto issue finishing dead last or near last in almost every category its vehicles appeared.

Mark Tapscott. Mark is editorial page editor of The Washington Examiner and author of the long-running “Behind the Wheel” new car and truck reviews that appear each Friday in the Washington and Baltimore editions of The Examiner. He has been proprietor of Tapscott’s Copy Desk blog and Tapscott Behind the Wheel blogs since 2004. His latest missive about the state of Maryland ("America's Police State") and their quest to ticket and tax speeders is worth the read.

Audi AG. The good news? Audi said it would pay an average bonus of 5,300 euro ($8,191) for each of its estimated 45,000 employees, or a total of 222 million euros ($343 million) due to "excellent" profits delivered in 2007. That is almost double the bonus paid the previous year. The bad news? Stories emerging from the German media indicate that Ferdinand Piech and Wendelin Wiedeking would be joining the Audi supervisory board in May. Uh-oh.

Nissan. Jean Halliday broke the story today in AdAge that Mark McNabb, the top American at Nissan North America, has resigned unexpectedly. Mr. McNabb, 47, senior VP-sales and marketing for the Nissan and Infiniti brands, is believed to be moving to an undisclosed Detroit carmaker; he had faced aggressive and unrealistic sales targets from his superiors at Nissan, an executive close to the situation said. Thus continues the exodus of a long line of executives who have left the company since Nissan moved its headquarters from southern California to Nashville.

Kwame Kilpatrick. Publisher's Note: This item only interests people from this area, but it needs to be said. The Mayor of Detroit, Kwame Kilpatrick, a walking, talking embarrassment who defies all rational explanation at this point, delivered his so-called "State of the City" speech last night, which was typical political B.S. fare - that is until the last five minutes - when he went off on a unscripted tirade against all of the people "out to get him." Now let's be clear, this guy has been blatantly linked to perjury and obstruction of justice charges, bid-rigging and costing this shell-shocked, financially strapped city $8.4 million in a secret legal settlement that should have never happened and that the city can't afford. And what does the esteemed mayor do? He goes off on the media and his critics, blaming them for all of his problems in an attempt to portray himself as the victim in this mess saying the treatment he was getting was "unethical" and "immoral" - while playing the race card to boot using the "n-word" and the term "lynch mob mentality" for effect. It was a reprehensible, disgusting and flat-out inexcusable display that perfectly summarized the despicable behavior that has characterized this idiot's administration from Day One. Memo to Kwame: The only "unethical" and "immoral" component in this mess is you, Mr. Mayor. Pathetic. - PMD

Pratt & Miller Engineering. The first convertible version of the Pratt & Miller Corvette C6RS supercar for the street will be on display at this weekend's Mobil 1 Twelve Hours of Sebring, the season-opening round of the 11-race American Le Mans Series. Conceived, designed, developed and constructed by the championship-winning Pratt & Miller Corvette Racing team, the Corvette C6RS is powered by a Katech Performance 8.2-liter (500ci) all-aluminum small-block V-8 engine that produces 600 horsepower and 600 lb.-ft. torque. All versions of the Pratt & Miller Corvette C6RS employ purpose-built carbon fiber body panels to reduce weight and improve aerodynamic efficiency. A computer-controlled adjustable suspension system, center-nut forged aluminum BBS wheels with Michelin tires, and massive Brembo monoblock disc brakes enhance vehicle dynamics. A two-tone leather interior and a comprehensive sound control system produce a quiet, comfortable environment for driver and passenger. The bright yellow C6RS that will be featured in the Corvette Corral at Sebring International Raceway belongs to Jim Miller, co-founder of Pratt & Miller Engineering. Orders are now being taken for the limited-edition Corvette in both coupe and convertible body styles, with the first deliveries to customers beginning in April. Pratt & Miller thus fills a void that GM doesn't offer to customers - that of an ultra high-performance Corvette roadster. "Developing the Corvette C6RS supercar has been as rewarding as developing the championship-winning Corvette C6.R race car," said Gary Pratt, co-owner of Pratt & Miller Engineering. "We focused on performance, of course, but also on noise, ride quality, and passenger comfort ­ attributes that aren't considered in a purebred racing car." The Corvette C6RS can now be built on a Corvette Z06, Corvette coupe, or Corvette convertible platform. "Our prototype was based on the Z06's aluminum chassis, but in building the first convertible, we've now developed a suspension package for the hydroformed steel chassis used in Corvette coupes and convertibles," Pratt explained. Detailed information on the Pratt & Miller Corvette C6RS is available online at www.prattmillerc6rs.com. (Photos courtesy of Pratt & Miller)

Frederick A. Henderson. Formerly GM's CFO, "Fritz" Henderson, 49, becomes President and Chief Operating Officer, taking a more prominent role in running the company while CEO Rick Wagoner focuses on "Big Picture" issues. This move sends a clear signal that Henderson is heir apparent to Wagoner's throne, and it's all part of The Plan down at GM. And no, it's not true that his close friends call him Froderick.

Rick Wagoner. In turning over a lot of the day-to-day operations of the company to newly-minted COO Fritz Henderson, GM's CEO is said to now be able to focus on "Big Picture" issues and other pressing matters facing the company. But in this analyst-driven environment/schmooze-fest that corporate America has become, that's what GM had to say. But thanks to us, here are the top ten things Rick Wagoner will really do now that he's free of monitoring the daily drudgery of GM's operations, taken from Rick's actual calendar: 10. The entire second half of March and first week of April is blocked-out for March Madness, except for... 9. Tiger opener on March 31st. I'm so there. 8. Kentucky Derby. Yes! 7. Pop in on GM dealership unannounced. 6. Wednesdays - movie matinee day! 5. Go to GM's offices in Washington D.C., put feet up, shoot the breeze. 4. Embed with Corvette Racing for the 24 Hours of Le Mans. 3. July, China. (rather than several trips, one long one!) 2. Reminder: Don't pop-in on GM dealership unannounced. And 1. Dancing with the Stars!

GM PR. GM announced a second-generation development of GM's Hybrid System with a new, more powerful lithium-ion battery at Geneva yesterday. Hitachi Vehicle Energy Ltd., a subsidiary of Tokyo-based Hitachi Ltd., will supply an advanced lithium-ion battery, which will help make the next-generation GM Hybrid System (due in 2010) nearly three times more powerful than the system it replaces. Overall fuel economy improvements for cars and trucks using the system are expected to be up to 20 percent, depending on engine and vehicle application. Excuse us for not seeing the real "news" here. On the one hand, technical development is always good, especially with the Green Frenzy going on right now. But since when does an incremental developmental step - and come on, because that's all it is - merit a big-deal media conference at a major auto show? GM's walking a fine line with its obsession to make "news" at auto shows just to keep the heat on Toyota. On the one hand they need to reinforce to everyone in the media that they are indeed in the "green" game. On the other hand, if they make one more pronouncement about what's coming two years from now, people are going to stop writing about it - and stop believing it.

2010. Judging by the sheer volume of technological breakthroughs either announced or promised by virtually every major automaker around the world for 2010, it's shaping up to be some kind of year. Our prediction? The hype will be bigger than the actual deliverables from the car companies.

Takeo Fukai. Speaking from Tokyo and doing his best Alfred E. Nueman, "What, Me Worry" impression, the Honda Motor Co. CEO refused to acknowledge last week that there was a recession going on in the U.S. "It is true that in states like Florida and California, the numbers are going down. But if you look at the U.S. as a whole, I don't think we're seeing a recession. There are still good business opportunities. There is firm demand for automobiles." Florida and California? Hmmm. And we have the proverbial Yellow Frickin' Brick Road here in Michigan and the Midwest, right, Takeo? Right.

Kia. Amazingly enough, the situation has gone from bad to worse at Kia, something we thought was impossible given the already grim circumstances. Automotive News is reporting that after burning through a series of reasoned, rational and experienced executives (three adjectives that could never be applied to your average Korean auto executive, by the way), Kia Motors America's new CEO, Byung Mo Ahn, made promises to dealers that things would improve, dramatically. But first things first, because Ahn's first step was to tell dealers that he wants them to sell 450,000 cars and trucks in 2008 - an incredible 47 percent more than in 2007, when Kia sales rose 3.8 percent to 305,473. In an industry chock full of delusional thinkers, the Koreans take the prize, hands down. Watch for legions of Kia dealers to start abandoning their franchises completely, because there's only just so much stupidity that these people can be expected to put up with - and Kia executives used up their stupid chips years ago.

The Wall Street Journal. Who said it was better to be late for a story rather than not show up at all? This headline in the WSJ yesterday - "Eight-Brand Pileup Dents GM's Turnaround Efforts" - attempted to shed light on the "too many models-too many divisions-too many dealers" conundrum that GM is facing using the Enclave-Outlook-Acadia-Traverse crossover crash in the market as example No. 1. Gee, where have we read that before? Way to be on top of it, guys.

 
(Photo by Axel Wierdemann for General Motors)
The Saab 9-X BioHybrid concept was unveiled in Geneva, Switzerland, Monday night, March 3, 2008, prior to the start of the Geneva International Motor Show. The 9-X signals the future design/package direction for a compact Saab notched below the 9-3 in the Saab lineup. The likelihood of something like it entering production? High.