No matter how many hip-hop artists they hire to shill their products, domestic carmakers just can't get through to younger buyers. Mediapost's Marketing Daily reports that a new J.D. Power survey shows that the younger carbuyers are, the more likely they are to avoid domestic nameplates. On the other hand, buyers who go for domestic vehicles are more likely to shun a particular vehicle because it's an import. The study also showed a more domestic vehicle buyers are in the interior of the country while import buyers are more plentiful along the coasts. The reasons given for going with imports: perceived fuel economy, reliability, quality, depreciation. Domestic buyers go that way because of styling and cost. No matter which way they swing, consumers' decisions not to buy particular vehicles are most often based on consumer reviews on line, expert reviews, and manufacturer web site information. 

“Roger Smith led GM during a period of tremendous innovation in the industry. He was a leader who knew that we have to accept change, understand change and learn to make it work for us. Roger was truly a pioneer in the fast-moving global industry that we now take for granted.” You can't expect GM CEO Rick Wagoner to speak ill of the dead, but the truth is that Smith was an utter disaster for GM. In GM Death Watch 116, our own Eric Stephans wrote: "After a massive reorganization in 1984, Smith dismissed thousands of workers and began a buying spree of epic proportions. GM’s CEO spent an estimated $40b on a laundry list of fashionable solutions and distractions: NUMMI (New United Motor Manufacturing Inc.), EDS (Electronic Data Systems Corporation), Hughes Aircraft and more. GM’s culture ignored the benefits of these innovations. The Toyota-style production techniques learned at NUMMI and the union-friendly ideas implemented at Saturn’s Spring Hill plant never made it outside the factory gates. GM management remained impervious to EDS’ can-do culture. Saturn devolved into another badge-engineered GM platform brand." Today's GM owes Roger Smith a debt, but it's not one of gratitude. 

Duemotori.com reports Jeep is racking up the awards in Europe. Earlier this year, the entire Jeep lineup won the 2007 Green 4×4 Award from 4×4 & MPV Driver Magazine. Now the same magazine has named the Patriot 2.0 CRD Sport as their 4×4 of the Year. In announcing the win, the magazine's editor, Bob Murry, states "The Patriot is a cracking car to drive… It adds a welcome dash of adventure and US style to a sometimes bland SUV market. At last you can have your American pie, and eat it, too!" That's not too bad for a vehicle that started life as a Dodge Caliber and has only sold 800 units this year. Interestingly, even though it's available with a 2.4L petrol engine it's only the highly-equipped CRD (diesel) Sport version that received the 4×4 of the year award.

On the very day that congressional leaders (in some sense of the word) are squabbling over the next gen Corporate Average Fuel Economy ethanol loopholes, USA Today repeats a study's declaration that "Anything's better than ethanol blend E85, even ordinary gasoline." The Pardee Rand Graduate School's analysis of alternative fuels calculated the individual and societal costs and benefits of gasoline-powered vehicles, gas-electric hybrids, high-tech diesels and flex-fuel vehicles (running on E85). "Unless gasoline prices, averaging $3.10 a gallon now, rise above $4 and average $3.50 or more the next few years, or ethanol prices drop a lot, diesel's the best overall solution; E85's the worst." Pardee Rand reckons a (theoretical) E85 driver could spend as much as $1,600 more than a gas-powered comrade, while a diesel driver could save as much as $2,300. Hey, guess who helped fund the research? General Motors and Ford Motor. "They aren't crazy about the results," researcher John Graham admitted. Neither are we, until we hear what the researchers meant by "societal costs."

BusinessGreen reports that Ricardo, Land Rover, mapmaker Ordnance Survey, mobile giant Orange and the UK's Transport Research Laboratory have banded together to develop the "rCube control system." In theory, the bolt-in computer will combine the [now] familiar real time traffic data with automatic control over a hybrid's engine, batteries, throttle and brakes. Say what? "If you are approaching a junction or a traffic jam and have to stop, the control system will optimise the deceleration to limit how hard you have to break and maximise the amount of energy that is captured and used to recharge the battery," explains Tom Robinson, senior product group manager for control and electronics at Ricardo. "It means that you get a smoother ride and lower emissions." The scarily-named "Sentience project" promises a prototype rCube-equipped Ford Escape Hybrid by the summer. So… what's hybridless lame duck Land Rover got to do with any of this? And why can't they just teach people to go easy on the gas and the brakes?

The Sun reports that most German of British brands– I mean British of German brands– is set to build cars outside The Land of Hope and Glory. The paper reckons BMW will manufactur its MINI SUV in Graz, now that the plant's X3 production is headed stateside. A spokesperson for the propeller people said the MINI brand's geographical locus will remain in Oxford, as both the fast-selling standard car and the sure-to-be-a-hit Clubman greet the world from Southeast England. In fact, the factory is maxxed-out at 260k units per annum. Hence the move to the Fatherland. In a related story, Motortrader reports that most Kuwaiti of English car brands, Aston Martin, is also looking to craft vehicles abroad, beginning with the four-door Rapide. Bidders for the work read like a who's who of outsourcing: Italy's Pininfarina, Germany's Karmann, Austria/Canada's Magna and Finland's Valmet. 

The Japanese government has been ordered by a district court to pay worker's compensation to a woman who claims her husband worked himself to death at Toyota. Yahoo! says Hiroko Unchino applied for compensation after her 30-year old husband, Kenichi, collapsed and died at work in 2002. He'd averaged 80 hours of overtime per month in the six months prior to his death, and had 114 hours overtime for the month before his death. The government acknowledged death from overwork, or karoshi, as a basis for claims in 1987. Since then, they've acknowledged 147 cases. Uchino sued after the Labor Ministry said her husband's case didn't qualify as karoshi. Curiously, Toyota wasn't involved in the suit. Yet.

As Canada struggles to hammer out a trade agreement with South Korea, the automotive trade imbalance has taken center stage. And no wonder. According to the Canadian Auto Workers, South Korea imported fewer than 500 Canada-made vehicles last year– as compared to the 200k Korean cars sold in Canada during the same period. In total, South Korean only welcomed 43,492 imported autos in '06. And for "good" reason. Although that meager total accounts for just four percent of South Korea's total new car sales, Chosun reports that it also represents a 32 percent increase over the previous year. And that's got South Korea worried. "Considering that Hyundai Motor's growth rate for the same period was 9.6 percent and Kia's was just 2.5 percent, the imported car sector's growth is alarming." At the same time, the types of cars entering the Republic has changed, from the early imported luxobarges to today's wider range of mass market motors. Honda, in particular, is kicking ass, doubling its sales. And here's the kicker: Toyota ain't even in the game yet. Meanwhile, one wonders what GM's take is on all this, as it has a large manufacturing bases in both Canada AND South Korea. GM's Daewoo brand currently owns about 30 percent of its domestic market. [thanks to starlightmica for the link]

As a privately-held company, Chryslerberus doesn't have to reveal its financial information to the general public. However, executive VP of North American sales, Steven Landry, gave us a peek behind the curtain during a talk to students at his alma mater, St. Mary's University in Halifax, Nova Scotia. The Detroit Free Press reports that as he discussed Chrysler's efforts to return to profitability, he revealed they'll fall about $1b short of what they're spending. Their overall plan? "Lose a little money this year, break even next and rake it in during 2009 and 2010," according to a report in the Halifax Daily News."You have to come to the realization that in some instances, you've got to stop spending," Landry opined. "You've got to right-size what you do to the revenue that comes into the company." Of course, Chrysler's spinmeisters were all over his comments, qualifying them by saying Landry was talking in generalities to students. I wonder what Chrysler CEO Boot'em Bob Nardelli had to say to his talkative Veep upon his return to Auburn Hills.

Think the $10.2m salary and bonuses Rick Wagoner took home in 2006 is outrageous? That's chump change– at least compared to what Business Times reports Wendelin Wiedeking reeled in last year. Porsche's president finished the year with his bank account €70 healthier than when it started. That's $130.7m folks. For one year. The fat cats on the management board shared in the bonanza, splitting €113 million ($166.9m) between themselves. While it's true Porsche is the world's most profitable auto maker, less than half of its profits come from making autos. While the company reported €5.86 billion ($8.65b) of profit this month, €3.59 billion ($5.3b) came from stock option profits– most of which are "paper" profits on options to purchase more of VW. Porsche finance director, Holger Härter, describes the monetary machinations as "options on options on options" but denies there's anything shady going on.

Ad agencies evaluate the effectiveness of their artistry using a "recall score." The metric measures how well consumers remember a brand and/or product within 24 hours of having seen its advert. A high recall score means the commercial hot-wired the product into the consumers' minds. A low score means the sponsor wasted their money. Although I watch quite a bit of TV, this semi-professional pistonhead can't recall more than a handful of car ads. So much for carmakers getting their money's worth.

I like to believe that the general population’s insensitivity to the joys of automotive design, engineering and performance is a simple matter of missed opportunity. If the average driver had suckled on Hot Wheels' sweet metallic tang from toddler-hood, if a mechanically-minded mentor had gently and gradually revealed the wondrous secrets of the automotive arts during their teenage years, if they’d been shown how to harness horsepower with skill and respect as adult drivers, they’d share my passion for cars with genuine soul. Meanwhile, Toyota sells millions of Corollas and no one complains. Why would they?

You can be the first on your block to own a hydrogen fuel cell car. For the mere sum of $99.99, Hammacher Schlemmer can fix you up with your own "hydrogen generating car" that features an "on-board reversible Polymer Electrolyte Membrane (PEM) fuel cell to conduct the entire hydrogen-generating and electrolytic process." The hydrogen is produced on board from distilled water using electric current from solar cells (or two AA batteries in low-light situations). It's not quite as sophisticated as Honda's Clarity, but still an interesting gadget to play with.

I can't get that friggin' song out of my head. Even my trusty pop hook removal methodology– humming Elvis' Rock A Hula Baby– won't exorcise the tune from my neurological pathways. I'm not sure what the Hell Electric Light Orchestra's hit has to do with driving an Accord, but whatever Honda paid for the rights, it was too little. If only they'd used the French chorus as well; a nation of American children would know what "accroches-toi a ton reve" means. Or not. I once met a beautiful young girl in Spain who could sing every single word of every single Yes song ever written with perfect inflection– without knowing what any of it meant. Come to think of it, I'm still trying to figure out how you send an instant karma to someone. Anyway, do people really dream of owning an Accord? Someday Pearl, when my ship comes in, I'm gonna buy me one of them Honda Accords. Why not? Those of us in the biz tend to forget how loopy people get over cars. Oh sure, we pistonheads go all loopy over Skyline GT-Rs and Maserati Quattroportes  and suchlike. But if you've never seen someone ooh and ah over an automotive appliance, you really should. It teaches you the power of dreams. Oh, hang on. That's it, isn't it? Right. Gotcha.

We here at TTAC spend a good part of our time trying to discern a car’s subjective worth. But the free market provides the final judgment. And when it comes time to rate an automobile manufacturer’s overall vitality, resale value is the way to go. Foresight, engineering and design all figure into what someone is willing to pay after the new car smell fades, when there’s a couple of Cheerios in the seat rails. Forget professional pundits and industry analysts; residual values are the ultimate arbiter of a carmaker’s strength. And guess what? Volkswagen is America’s most valued carmaker.