Last August, TTAC predicted the Chinese auto makers would start taking steps to edge their joint venture partners out of their market. And so today's International Herald Tribune reports that the Chinese government has "asked automakers to combine to compete with overseas rivals like Toyota and Volkswagen." To that end, China's largest auto maker has just announced that they're buying Nanjing Automotive Group's automotive assembly and parts-making businesses. Shanghai Automotive Industry Corporation (SAIC) currently has joint ventures with GM and VW. Nanjing owns the rights to the MG Rover brand– and is busy dumping their current joint venture with Fiat. There are no known plans to terminate any other joint ventures, but as SAIC strengthens its position in the Chinese auto market, they'll be looking to cut loose their foreign "partners." Count on it. 

GM Car Czar Bob Lutz sat down with journo Jerry Flint for a major chin wag. Forbes' finest asks Maximum Bob about his employer's two-mode hybrid system; Flint wonders if the system costs costs more than $10k per vehicle. "Well, at least," Lutz admits. "And we're not selling it for that." Oops! So will the inherently unprofitable technology help GM achieve its federally-mandated 35mpg by 2020 fuel economy targets? Nope. "Even with that, we get a full-sized Tahoe sport utility to 22 miles per gallon, which is 50% to 60% better than anyone else [?], but is still only 22. So where are we going to get the other 13 [mpg]? We don't have a clue, and throwing another 10,000 bucks at it isn't going to do it either." As for GM's next Next Big Thing, the electric – gas Chevrolet Volt, Lutz backpedals so hard he falls over. Flint bears the bad news: "On a scale of 1 to 10, he says his confidence level is a 9.5 that GM can build the Chevy Volt. The production date is another matter; Lutz's confidence drops to a 5.5. 'We're holding people's feet to the fire for the very end of 2010 into 2011. But that can slip, depending on how the development goes.'" In short, "It probably won't be a flawless launch." So, it's business as usual at GM.

When someone says "ugly car," names like Aztek, Sebring and Multipla always seem to pop up. The New York Times adds Aurora to that group. Arguably the ugliest prototype car ever built, the Aurora was the brainchild of priest-turned-auto-designer Alfred A. Juliano in the mid-1950s. The prototype was partially financed by his parishioners. His intent was to produce the world's safest car, using a totaled 1953 Buick as the platform. Unfortunately his lack of knowledge of automotive design and engineering trumped his enthusiasm and good intentions. Juliano was driven from the church and died penniless. Interestingly, production cars use some of his safety concepts: seat belts, side crash protection (offsetting the driver was his solution) and Euro-style pedestrian safety (the foam-filled cow catcher out front). The Aurora was rescued from oblivion, restored and now resides in a museum in Beaulieu, Hampshire, UK. You have been warned.

USA Today's financial markets repoter Matt Krantz gives Ford a Boxing Day black eye, warning his readers not to touch FoMoCo's stock with a proverbial ten foot pole. Krantz proffers his prognostication of doom based on four criteria. In the area of risk versus reward, the McPaper's market maven figures "you're taking twice the risk to get a shot at a smaller return." Looking at discounted cash flow, Krantz says if "you're looking for a bargain, you're not getting it with Ford at these prices." Based on the stock's current value compared to historic range, Ford is in the "sell" range, and "that's not good, either." Finally, Krantz rates Ford's overall financial health on a scale from 1 (healthy) to 5 (mortally wounded). The Blue Oval Boyz clock-in at… 4.3. Krantz leaves no words minced. "You can do much better… there's no reason to think Ford stock is worth taking a chance on yet." Incidentally, he also warns "General Motors' stock hasn't been much better" this year, in case you were considering an American automotive alternative.

There is only one reason to brave Detroit in January: The North American International Auto Show (NAIAS). And that justification only applies if you’re a born rivet counter with Bear Grylls' endurance and the Detroit News' unslakeable thirst for corporate Kool-Aid. Even then, why not forgag it, cuddle-up with your DSL in the warmth and Dilbert-decorated comfort of your own cubicle, surf the net and let the pros brave the BS on your behalf? Why not indeed? Me, I'm one of those pros, incognito.

Back when Toyota first toppled GM from the worldwide sales charts, The General's General dismissed the historic milestone as no biggie. When the markets growled at Rick Wagoner's ho-hummer, the American CEO eventually declared his intention to defend the company's honor. While it's down to the wire for '07, Toyota is already announcing its intention to snag the sales title in the New Year. According to The New York Times, ToMoCo plans to sell 9.85m vehicles worldwide in 2008. In fact, despite a U.S. economic downturn, Toyota is set to increase American sales by one percent.  So what does the 76-year worldwide sales champ have to say about its own plans for world domination? Nothing. "G.M. has not given a forecast for the number of vehicles it expects to produce or sell in 2008." Just in case you missed the contrast in corporate cultures, Credit Suisse auto analyst Koji Endo reminds us that “These are targets Toyota is giving, not forecasts, and so they are reasonable." Oh, and Toyota also says it will begin mass-producing lithium-ion batteries for its low-emission vehicles in '09. And so it goes.

I really want a Mercedes Black Series AMG. It’s a practical, sharp looking car, and nothing clears my head like Saturn V quality thrust. But my spouse’s desire to share her dotage with yours truly conspires against it. So, after driving a BMW 6-Series and finding it a bit… sclerotic, I wandered over to my local Audi dealer in search of something slinkier and kinkier. And there she was: a brand new S5 coupe on the showroom floor, shooting me come hither glances. So thither I went. Ah, but did I tarry long enough to take possession of Ingolstadt’s two-door Q-ship?

“It would have helped to have a little bit of sunshine.” What a strange statement. Not “General Motors is prepared to weather the economic downturn ahead.” More like “Darn it! Just when we got our new picnic blanket spread out, it’s started to rain!” But then GM CEO Rick Wagoner is a GM lifer, a Harvard-trained beancounter, a man whose self-effacement hides a genuine lack of leadership. “We look forward to the sunny days,” Wagoner continues. “But realistically we can’t plan on it for next year.” So what IS GM’s plan?

Volvo is adopting the the Big 2.8's' overarching management strategy for '07: cut your way to prosperity. Automotive News [AN, sub] reports that Volvo's sliding sales have reached the point where the brand sells just 260 vehicles per dealer per year. FoMoCo's Swedish division is taking action, "asking its unprofitable and marginal dealers in the United States to give up their franchises." Asking? As in pretty please? The article takes its sweet time getting to the meat of the matter– how much Ford's going to pay these svag dealers to shutter their showrooms– and then serves-up a side dish. AN reveals that Volvo U.S. CEO Anne Belec has already allocated funds for the buyout program but "declined to say how much or how they would be used. Neither would she say how many stores are targeted for closing but made clear that it is more than a handful." I think they forgot to ask "Can you be any more vague?" In terms of actual news, Volvo's abandoning its sponsorship program (goodbye tennis) and leasing programs (in favor of low-interest loans), and focusing its marketing on larger and more heavily loaded cars (just in time for the compact C30's arrival). Volvo's retail advisory board chairman and store owner Ben Stein is not impressed. "The dealers are getting tired of a cut-cut-cut strategy," he said. "We need a game plan for sustained growth." Ya think?

Santa came early in 1972. My older brother had taken a civilian job on a military base in Greenland. Out of the blue, he gave me his 1963 Corvair. It was my very first set of wheels. Instead of bracing myself for the thousand mile-long hitchhike from Iowa to Baltimore in freezing weather, I was driving home for Christmas in comfort. But there was a catch: Santa had deputized me. I had a present to deliver, and deliver I would, come hell or high snow. 

First Samir Syed reminded me that the New York Auto Show is a crashing– I mean, static bore. Then I looked out my garret window and saw the dirty snow covering the Lady and the Tramp Victorian landscape below my perch. And then blautens suggested we move the TTAC party to West Palm Beach to coincide with the Barret-Jackson auction. This idea has a couple of things going for it. First, auctions have a certain pleasing rhythm to them– unlike car shows which are Stendhal syndrome in-car-nate.  And second, it's warm in Florida. So what do you say folks? Spring break for TTAC? Meanwhile, I'm taking a few days off. We'll resume this adventure next Thursday or Friday. I thank you all for your continued patronage. Frank, myself and the TTAC team will continue to do everything in our power to ensure that we are worthy of your time. Merry Christmas!

"Are we bankrupt? Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with." Another milestone: Chrysler CEO Bob Nardelli used the “b word’ in public. What’s more, Boot ‘em Bob told the Wall Street Journal (WSJ) that he’s on a leash so short he can feel the hot breath of his Cerberusian owners tickling his neck hairs. Why’s that then? Because all Hell's about to break loose.

Smart cars that keep themselves in the proper lane, maintain the correct following distance and sense driver fatigue are so passe. Now, thanks to researchers at Purdue University, your smart car can have smart tires. Reuters reports the net technology incorporates sensors that can detect problems like cuts, leaks, imbalance and improper mounting. A chip inside the tire probes the layers of the tire and relays information. The developer plans to patent the technology and license it to tire makers. He said it would cost the manufacturers about $1 per tire, but expects it'll add about $50 to the cost of a tire by the time it gets into consumers' hands. How smart is that?

Curious about the Chinese pickup truck market? China Car Times gives a rundown of what they consider the best-looking pickups offered to the people of the PRC. Their favorite is the Big Diesel God, with styling copped from Chevy and power by Mitusbishi or Toyota. They're also fond of the Great Wall Wingle, which looks more cute-ute than pickup. The Photon SaPu and Zhongxing Grand Tiger round out their round-up. From the looks of it, if the Chinese ever want to launch an attack on the small truck market in the U.S., they already have some pretty good ammo in their arsenal – not to mention some of the coolest model names for trucks since the Chevy LUV (Light Utility Vehicle).

The International Herald Tribune reports when House Speaker Nancy Pelosi sent the energy bill to the Prez for his John Hancock, it was delivered in a Toyota Prius owned by an employee with the Office of the Clerk of the House. Naturally, using a Japanese hybrid to deliver the bill pissed off two Republican representatives from Michigan. Rep. Candice Miller said it was done "just to demonstrate their complete disregard for the domestic auto industry." Rep. Mike Rogers echoed that sentiment, calling it a "slap in the face of every American auto worker." A staffer in Pelosi's office said the two were "merely attempting to distract from the success of the Democratic energy security legislation" and added that 95 House Republicans (fewer than half) supported the bill. He stopped short of saying "nanny-nanny-boo-boo." What I'd like to know is why a paper copy had to be delivered at all. After all, if the Democrats were that keen on conservation, they could have transmitted it electronically.