The Wall Street Journal reports that Toyota's captive finance company is increasing the number of 84-month auto loans on its books. "These loans, which carry slightly higher rates than 72-month deals, have risen to represent 4% of all cars Toyota Financial Services lends money on." (This they call writing?) The Journal puts some numbers to that "slightly higher" aside (from 6.9% to 7.59% for 84-month loans, compared with 5.85% to 6.84% for 72-month financing) and ascribes the move to a general desire by automakers to avoid piling incentives on their new metal during the current sales slowdown. Although GM may face blowback for its "anyone with a pulse" zero percent financing deals, Toyota Financial Services is also on the hook for billions. An unnamed ToMoCo spokesmouth told the WSJ that her employer writes loans for about three-quarters of the cars financed at U.S. Toyota dealers, accounting for about 50 percent of total sales. She claimed the seven-year loans are given only to customers with top credit. Yes, well, is this the start of a trend? GMAC Financial Services says 84-month loans constitute a tiny portion of their car biz, and Ford Motor Co.'s credit arm says it "isn't aggressively offering them." "We don't like these loans," Ford Motor Credit Chief Executive Michael Bannister told the Journal. We shall see…

Ford’s marketers often appear to live in a sort of surrealist parallel universe. How else to explain their enlistment of Kermit, the self-effacing, hand-operated amphibian, to pitch the Ford Escape Hybrid? This SUV has the makings of a game-changing, ass-kicking product. It’s a genuine full hybrid, with components licensed from Toyota.  It’s sized, styled and priced to the mainstream’s liking. Yet, saleswise, the hybrid Escape is croaking. Methinks Ford’s spokesfrog hasn’t given the Escape Hybrid the marketing momentum it deserves.

Automotive News [AN, sub] reports that Chrysler is stepping-up– as in scrapping and starting again– its plans to trim products and dealers. Much to Hyundai's delight, the new new plan is called Project Genesis. And in the beginning, there were three brands, 28 models and 3600 dealers. And lo, Chrysler decided to place all three brands (Dodge, Chrysler and Jeep) unto one dealership and, uh, "eliminate duplicate models on the same platform." Oh, and also "develop new ones in segments where it doesn't have current entries." To get the dealers on board (toss them overboard?) Chrysler is sending out its emissaries. "Business teams will descend [from on high] on those cities to help dealers arrange to buy or sell franchises to make the consolidation happen." And they means business. "Chrysler will then hold individual meetings with dealers and review whether they want to be a willing buyer or willing seller." On the other hand… "Project Genesis will not be a 'push program,' and there will be no deadlines or timetables. Nor will the company open the Cerberus bank account to dealers, Press said." So, how will Chrysler coerce dealers to buddy-up or die? Hell if I know.

Reuters reports that Chevrolet brand manager Ed Peper waxed downright Lutzian at the Chicago Auto Show. Peper said retail sales for Chevy's new Malibu rose 200 percent in January compared to the old model. WTF? Automotive News' data center [AN, sub] says Chevy sold 14,541 Malibus last month vs. 9,209 of the old model in January of last year. That's a 57.9 percent increase, not 200 percent. But it gets even more interesting. Peper denied that the new 'Bu had any effect on Impala sales. He attributed lower Impala sales in January to fleet sale reductions. In fact, he said Impala retail sales were up 44 percent. Uh, AN shows Impala sales were down 30.6 percent in January. If retail sales were up as much as Peper claims, and overall sales were nowhere near those levels, they must have been dumping one helluva lot of cars into fleets, as we suspected all along. If so, the trend could explain last month's huge surge in LaCrosse and Cobalt sales. [Thanks to starlightmica for the link]

KFMB TV reports that some 3k people attended a public hearing in Del Mar, California to have their say regarding a toll road extension through San Onofre State Park. Supporters say the project will end gridlock on I-5 (a.k.a. “the five”) running between Orange County and San Diego County. Opponents contend that the Route 241 extension would wipe out endangered species, ruin the park and destroy Trestles Beach, a popular surfing site. San Diego City Councilmember Donna Frye sided with the nay-sayers. "What we're saying to future generations is that roads and cement and going fast mean more to us than our natural resources and our state parks?” After a 14-hour-long meeting, the state Coastal Commission voted eight to two against the new tarmac. Given that the San Onofre Nuclear Generating Station (SONGS) is located between San Onofre State Beach and San Onofre Surf Beach, Dude, how bad could a road extension be? Given the UK's powerful [green] anti-roads lobby, we reckon it won't be long before California's Alliance for a Paving Moratorium (or similar) girds-up for more Golden State pavement battles.

You know, we give Autoblog a lot of grief for being the auto industry's bitch. And deservedly so. But every now and then the website of record gets a sudden rush of testosterone that makes us proud to share the autoblogosphere. Today's Detroit Free Press carries a boilerplate auto show story involving one former Toyota Prez (Jim Press) and one rear wheel-drive muscle car (Dodge Challenger SRT8). Price, waiting list, Mustang throwdown ("We'd rather run like a thoroughbred than ride like a pony"), yada yada yada. And then Chrysler Vice Chairman Jim Press has his say. And then Autoblog's Damon Lavrinc takes the Chrysler exec to the woodshed. "Press expounded on the Challenger's virtues, saying that the SRT8 has a higher top speed (170 mph) than BMW's M5. Kind of a misnomer considering that the M5's speed limiter keeps the BMW sedan below 155 mph – unleashed, it has the potential of doing 205 mph. The Freep also quoted Press as saying that the Challenger has more torque than the Porsche 911 Turbo. Ummm… no. The 6.1-liter Hemi V8 produces 420 lb.-ft. of twist compared to the 911 Turbo's 460 lb.-ft….'When you sit inside, it makes you feel younger and richer than you are.' Younger? Maybe. Richer? Not quite Mr. Press. We've seen the interior and it's hardly what you'd call luxurious, let alone exciting." You go boy!

One of the nice things about having a tightly-focused brand– complete with an explanatory tagline– is that you know when to say "no." Pontiac: We Build Excitement. Minivan? No. Crappy coupe. Uh-uh. Mercedes: Engineered Like No Other Car in the World. Cheap shit downmarket decontented sedan? Nope. Crappy coupe. Nein! Cadillac: The Standard of the World. Rebadged Chevy? Yeah right. Cheap shit front wheel-drive sedan? I don't think so. Of course, we all know that Pontiac, Mercedes and Cadillac all ignored Nancy Reagan's admonition and built cars that made a mockery of their brand remit. Less well recognized: all three automakers chose to change their taglines rather than face-up to their mistakes and return to their roots. Look at the struggling car companies and faltering  brands– Ford, Chrysler, Lincoln, Mercury, Saturn, Pontiac, VW, Buick, etc.– and there's one thing that unites them all: they don't have a clue what they should be building. Until they fix their branding, they will never fix their business. Not building bad products is just as important as building good ones.

BMW's upper management tends to be more tight-lipped than treasure hunters. As a result, Wall Street sees the automaker's executive culture as closed-minded, overly proud and parochial. The Financial Times Deutschland (FTD) and the Financial Times  report that Bimmer's boss has broken his vow of silence, trying to soothe the markets regarding the automaker's poor share performance. At a conference in London yesterday, Reithofer outlined BMW's plan to increase its return on capital to 26 percent and its return on sales to eight to ten percent by 2012. The propeller people promise to reduce R&D expenditures from 6.1 percent of sales to five percent, save millions on purchasing and cut 8k jobs. No one was buying it. One analyst said, "the market in its current state is not in any mood to buy cheques dated to 2012". Morgan Stanley said in a research note: "The company provided incremental detail on its cost- cutting efforts, but it offered precious little in terms of specific figures or intermediate milestones." And while Reithofer was speaking, BMW's share price slid five percent, on a market-friendly day. Reithofer left the conference after one hour, saying he felt sick, and canceled further appearances in New York and Boston. By day's end, BMW's share price had lost 2.8 percent, equivalent to €609 million.

Back when Seagulls were flocking, a small electronics company called LTI was in grave danger of going broke. They had but one product: a speed detection device (a.k.a. gun) that used laser light instead of radio waves. LTI’s laser gun was a $3500 item. Police agencies could outfit three patrol cars with state-of-the-art radar detection devices for that kind of money. Laser guns were DOA. And then the lizard people stepped in.

If you can't get the whole car to market, sell the pieces. At least that's what Tesla's is thinking these days. According to CNET, Tesla is expected to announce that they will sell drivetrain components (presumably excluding transmissions) and software to other companies interested in developing their own electric car. Chairman Elon Musk (who already has his Roadster even if no paying customer does) indicated that Tesla might start peddling their technology by 2010 "or earlier." In addition to parting-out the Roadster, In an interview during this week's Clean Tech Investor Summit in Indian Wells, California, Musk also revealed that Tesla was trying to finish a styling prototype of their sedan (code named "Whitestar") in the second quarter. He suggested a working prototype would be "possible" by the end of the year. Based on Tesla's present nomenclature convention, "Tesla Sedan" seems the likely name for their unlikely machine.

BusinessWeek's Dee-Ann Durban had the pleasure of attending the Chicago auto show to get a feel for how the suits are feeling about the future. And the answer is… great! "We're beginning to see, after six quarters of declines, the beginnings of some pent-up demand," opined GMNA Prez Troy Clarke. "You could make a case that the second half of the year could be significantly better." Marketing Mark LaNeve agrees with his co-worker's "Annie" analysis. "We really believe the industry's going to be OK this year," LaNeve said. "We've had a fairly weak car market for the better part of two years. Economic weakness is being experienced in other places right now. We've already been in it." Ford's President de las Americas, Mark "Tool Time" Fields, was also optimistic, in a plausible deniability sort of way: "We do see opportunity in the second half." While you can easily file all this spinnery under "What else are they going to say?" one could make a case that when the going gets tough, Pollyanna should go away. Sense of urgency. That sort of thing. 

As drivers replace their gas-guzzlers with more efficient vehicles, drive less and/or start using alternate transportation, gas tax revenues are dropping. The Seattle Post-Intelligence reports that Washington state is responding to this environmentally beneficial trend with an annual tax tied to a vehicle's EPA-rated fuel economy. Under Senate Bill 6923, a Prius owner will pay $60 per year, while an H3 owner would be dunned three times that amount. Bill sponsor State senator Ed Murray denies the measure is a greenwashed cash grab. "The (governor's) climate advisory team said that the biggest global warming problem in this state is actually from transportation." How a state can have a "global" warming problem isn't quite clear, but Ed claims Washington's industry is "fairly clean." The real problem? "The number of automobiles." Lower-income drivers will be hardest hit by the new rules, as they are least capable of switching to newer, more fuel-efficient vehicles. Estimates show they'll have to pay an average of $113 per year. 

We repeat: conflict of interest renders Intellichoice's data inherently suspect. So, Bloomberg [via Boston.com] reports that "General Motors Corp., the biggest US automaker, gained ground on Toyota Motor Corp. in an annual survey of ownership costs including measures such as sticker price and resale value. GM led in three vehicle categories, up from one last year, while Toyota again won four of the eight total awards." While we're disappointed that Bloomberg takes Intellichoice's choices at face value, their cheerleading conclusion is especially galling (to this gall bladder-less cynic). "The results lend credence to GM's goal of improving quality and boosting resale values by curbing incentive spending and sales to rental-car companies." This despite the fact that the Corvette was the only GM passenger car to receive a nod. Which didn't stop Intellichoice's spinmeister from bolstering Bloomberg's BS. "Word is starting to get out that if you buy a Chevy, you're not destined for troubles the way you were 10 years ago." Here are the full "results."

Just four days after Plastech's parts embargo shut down Chrysler factories, just eight days before the two companies' interim agreement is set to expire, Chrysler's CEO is deploying the same sort of charm offensive that made him so popular at Home Depot. "This was not hard-ball tactics, it was a solid business practice," Nardelli told reporters at the Chicago Auto Show. "We never meant to create an adversarial relationship with Plastech or any other suppliers." In other words, hey, it's just business. "We have to stay competitive. Our customers expect that. Obviously if [Plastech's] not financially sound, we certainly aren't in the business of subsidizing. No hard feelings, no animosity, just solid business practices." No subsidizing eh? The Detroit Free Press reports that Chrysler resolved the Plastech missile crisis by agreeing to pay some its bills "early;" an undisclosed portion of a $23.4m early payment cash infusion. It's a dangerous precedent that could consume Chrysler's cash pile. Meanwhile, Nardelli says Chrysler will continue to remove its parts contracts from Plastech. Somebody send that man a copy of "How to Win Friends and Influence People," STAT. 

Intellichoice is a scam. Their owners– Source Interlink Media– also own Motor Trend, a buff book with about as much editorial independence as Marines Magazine. Intellichoice pretends to be an objective number cruncher, focusing on cost of ownership calculations. Every year, they announce their "Best Overall Value of the Year" (BOVY) awards at the Chicago Auto Show. Methodology? "This insightful value rating factors the accumulated ownership costs of depreciation, maintenance, repairs, fuel, fees, financing, and insurance to identify the true standout models in each class." Needless to say, Intellichoice doesn't reveal the specific calculations involved. And if that's not enough to convince you that the whole thing's a con, consider that the VW R32 just won the BOVY award for the "Base Sport" category. We call bullshit. The R32 is the all wheel-drive uber-Golf (base sport?) that's over-priced, over-produced and over here. Check out this chart from Yahoo Autos comparing the relative predicted residual values for the R32 vs. the GTI (never mind any number of Japanese base sport competitors), and then tell me the fix ain't in. Shame on VW– and any other manufacturer– for using (paying?) Intellichoice to promote their vehicle.