When Renault bought a 25 percent stake in Russia's AvtoVAZ late last month, we thought it was just another company chasing the big money in Russia's expanding car market. Having jointly manufactured cars with VAZ for years, GM clearly sees the French incursion in slightly more threatening terms. Speaking in Geneva (via CNN Money), GM Europe president Carl-Peter Forster says "it's too early to tell" exactly how the Renault play will affect the Chevy Niva joint factory in Tolyatti. But he's clearly worried. So worried in fact, that he became downright effusive while describing his company's desire to continue the Tolyatti venture. Calling the factory "a nice little diamond, a gem," Forster unwittingly raised serious concerns about his mental health and/or his local knowledge. Less than a week ago, the head of procurement for AvtoVAZ was found stabbed to death in his Tolyatti apartment. It's hard to decide which is funnier: Renault buying a stake in VAZ within days of the stabbing of one of it's executives, or GM's concern that it won't be the only game in a town where gangs are waging a turf war to control the auto industry. As the Brits say, it's six of one, a half dozen of the other.

I fondly remember the last time I made the run from Vienna to Constanta, Romania. Hey, if you want the good caviar you go to the source, right? There I was snuggled into my Veyron, cruising merrily along at more than 400 k/ph dreaming of polo greens when it hit me. These seats suck! Worse, my wallet doesn't match my luggage and this claptrap's wheel locks are merely festooned with the letter B– just like all those investment bankers' Veyrons. I'm special dammit! Luckily, Bugatti knows all this. They also know that the type of bloke willing to plunk down $1.2m for a car isn't really going to think twice about dropping $2.3m. On the same car! That's why noted ascot manufacturer Hermès and designer Gabriele Pezzini have teamed-up to give the Veryron a million dollar once over. I mean, a $1.1m dollar once over. It's called the Bugatti Veyron Fbg par Hermès. Key features include bull calfskin on the seats and the dashboard, a matched wallet, paint and a radiator grill comprised of the letter H. Oh! The wheel centers are stamped with an H, too. Because you wouldn't want the peasants to think you're driving a plain old Bugatti. At least I wouldn't.

Plastech may not have done so well in the plastics molding business lately, but it sure knows how to play the doormat with aplomb. In a touchingly "stand-by-your-man" moment, Plastech General Counsel Kelvin Scott confirmed yesterday that the bankrupt firm would continue supplying Chrysler with parts "indefinitely." This announcement comes despite the fact that the Pentastarred lawyers are currently working on their second attempt to legally extricate the very tooling Plastech uses to produce Chrysler parts. So why is Plastech eliminating the threat of work stoppages at Chrysler plants and thereby losing all of its negotiation leverage? Is it playing nice for Judge Shefferly, who has already staved-off round one of Chrysler's legal predation? Our theory? Plastech knows it's products are of such poor quality that the best way to hurt Chrysler is to keep 'em rolling into their plants. Just kidding. I think.

In inflation-adjusted terms, oil is at its historic peak. The 1980's price of $39.50 a barrel translates to $103.76 in today's money. Many analysts attribute these high oil prices to speculation and increasing demand. And yet the Organization of Petroleum Exporting Countries  (OPEC) have long fine-tuned their production output to micromanage world markets. So says the International Herald Tribune. The Trib reports that OPEC may forego their usual springtime production cut to spare the reeling US economy even higher oil prices. Deutsche Bank's chief energy economist says it's one of those PR-type deals. "They don't want to be blamed for a recession," claims Adam Sieminski. "That would be bad public relations." U.S. Energy Secretary Samuel Bodman is down with that. "It is important that the members of OPEC for their own sake carefully look at supply and demand." OPEC's choice, however, is between cutting production and maintaining the current output. For whatever geo-political/economic reason, increasing production seems to be off the table. Once again, it may be time for someone in Washington to pick-up the bat phone and call our good friends at the Saudi embassy… 

UPDATE: Reuters reports that OPEC has decided to keep oil output steady. That said, Saudi Arabian Oil Minister Ali al-Naimi claims they’ve been pumping 9.2m barrels per day (bpd), already roughly 300k bpd above their OPEC target.

Forty years ago, Toyota’s invasion of America (and effectively, the world) began in earnest. In 1968, the newly-minted Corolla was sent stateside to do battle with the perennially best selling VW Beetle. Only two short years later, the Corolla was the second-best selling car globally. By 1975, Toyota surpassed Volkswagen as the top import brand. The Corolla has taken all the global production crowns (1.5 million sold in 2007; over 33 million total). It has been the engine powering Toyota’s rise to the world’s largest carmaker. Has the Corolla achieved immortality, or will it eventually lose its way like its spiritual predecessors, the Model T and VW Beetle?

We've all heard of "downsizing," "rightsizing," "smartsizing" and "managed redundancy." Whatever you call it, someone's losing their job. Ford has come up with another term to add to our lexicon of executive euphemisms: "capacity action." In a press release earlier this week, Ford outlined its plans for "capacity actions for Chicago and Louisville assembly plants and Cleveland engine plants." The Chicago (Taurus, Taurus X and Sable) and Louisville Explorer, Explorer Sport Trac and Mountaineer) assembly plants will operate on one shift beginning this summer. Cleveland Engine Plant #2 will cut to one shift in April. And the re-opening of Cleveland Engine Plant #1 (shut down in May 2007) has been postponed from this spring to the fourth quarter. Joe Hinrichs, group VP for global manufacturing says the "capacity actions are designed to ensure that our manufacturing facilities are operating in the most efficient way." Ford continues to offer 10 different retirement and buyout packages to facilitate these cuts. I mean, "capacity actions."

Despite serious and ongoing questions about the wisdom of London's Congestion Charge, and popular opposition to importing the scheme to the Big Apple, The New York Times will not let the damn thing go. Not with the deadline for $350m in federal funds (i.e. your tax money) about to expire. At least this time the Op Ed folk aren't claiming that the congestion charge is anything more than a cash grab. Well, at least not initially… "Mass Transit Needs Congestion Pricing" begins by revealing that The Metropolitan Transportation Authority says it will need– yes need– $29.5b over the next five years for "improvements." The paper then argues that "New York [mass transit] riders pay a considerably higher share of the cost of mass transit than riders in other cities. Fares for buses, subways and commuter rails increased again this week to help pay the M.T.A.’s operating costs. It is time for New York drivers to help carry the burden. Congestion pricing fees can produce significant and recurring new money for mass transit’s capital expenses." Oh and "Congestion pricing, of course, has many other virtues. New Yorkers would enjoy the health and economic benefits of less gridlock and tailpipe emissions — and faster commutes." Riiiiiight. Just like they do in London.  

Yesterday GM CEO Rick Wagoner announced his employer's plans to offer at least 16 hybrid models by 2012. Speaking at the Geneva auto show, Wagoner said The General will introduce one hybrid model every four months until 2012. Automotive News [sub] reports the hybrids will use updated versions of the two hybrid systems GM currently offers: the two-mode hybrid for trucks and SUVs and the hybrid-lite belt-alternator system for passenger cars (no mention of a full hybrid high-mileage passenger car to compete directly with Prius and the other hybrid offerings from across the Pacific). You can bet GM'll game the numbers to achieve their goal, as spokesman Brian Corbett said the 16 hybrids would be launched in North America, Asia and possibly Europe. That means they can drop the drivetrain from the Saturn Vue Greenline into its Theta platform-mates around the world and instantly claim five new hybrids. Not bad for a company whose Vice Chairman of Global Product Development thinks hybrids "make no economic sense." Anyway, when it comes to greenwashing, GM is clearly set on becoming the industry leader.

On the same day that GM announced its disastrous February sales figures, GM's Board of Bystanders OK'ed an executive reshuffle. Those of us expecting the Board to clock the prospect of a fourth year of declining sales, profits and U.S. market share, and then defenestrate GM CEO Rick Wagoner (to float away on his golden parachute) were surprised to discover the current CEO remained in situ. Meanwhile, Chief Financial Officer Fritz Henderson assumed the re-created post of Chief Operating Officer. While pundits aplenty saw this as a Henderson succession play, has Fritz already relieved Rick of command? The Wall Street Journal says "Speaking to reporters yesterday at the Geneva auto show, Mr. Wagoner outlined what his role will be in the auto maker's hierarchy, saying that he will focus on global growth, advanced technologies and environmental lobbying… Mr. Wagoner said he also hopes to at least double his amount of annual visits to China, a fast-growing new market where GM has become well-established. Visiting roughly twice a year in the past 'didn't feel right,' he said." If you ascribe to Ted Turner's Lead, Follow or Get Out of the Way philosophy, it's clear that Rick's now checking out any time he likes. But will he ever leave?

The flying car is The Concept That Will Not Die. And here's another version, the Milner AirCar, due to be introduced at the New York Auto Show later this month. There's absolutely no reason why cars can't fly, or why airplanes can't drive down a road. All it takes is wings and a propeller in the first case, and folding or removing those wings plus something to drive the road wheels in the second. Robert Fulton (grandson of the same-named dude who built the first practical steamship) did it quite well in the late 1940s. His cute little Fulton Airphibians flew lots and drove plenty back in those halcyon post-World War II days, when returning vets dreamed of a helicopter in every garage and Cessna was advertising its airplanes as being so simple to fly that you could "drive it up and drive it back down." But the current realities of satisfying both FAA and DOT regulations in the same vehicle on the one hand, and teaching a new generation of driver-pilots to deal with thunderstorms, crosswinds, icing, navigation and instrument flying when they can't even handle a half-inch of snow on a road on the other, give new meaning to the word insane.

The Toronto Star reports that GM Canada is boosting Impala production by some 46 units per day, to about 1100. The General says it made the decision to put the pedal to the medal (i.e. adding overtime shifts) at the award-winning Oshawa plant to meet growing demand for the wrong-wheel-drive beast south of the 49th. Despite the decision to kibosh a rear wheel-drive version of the car, or maybe because of it, the Impala's American sales are up 7.3 percent from last year. Some Chevy dealers report that the "old," bigger Impala is stealing sales from the new, narrower Malibu. Either that or fleet clients have boosted their orders knowing that the Impala is slated for execution. (Automotive News [sub]: "General Motors, Ford Motor Co. and Chrysler LLC accounted for fewer than three out of four new vehicles sold to the U.S. rental industry last year — down from more than four-fifths in 2006.) Or maybe it's got something to do with the possibility of a Canadian Auto Workers strike. Your thoughts?

According to the Financial Times' "Who's who" roundup, relations between the two halves of Porsche's ruling family are chilly– despite joint ownership of what will be the largest automaker in Europe. Apparently, Ferdinand Piech, chairman of Volkswagen, and Wolfgang Porsche, chairman of Porsche, had a bit of a spat at a recent Porsche board meeting. The two ordered everyone out of the room while they hashed out their unspecified difference. When they emerged, Wolfgang was "the surprising winner." According to an unnamed source close to both men (presumably not in a sexual way), the two grandsons of the legendary Ferdinand Porsche "are not scratching out each other's eyes but it is no secret that the Porsches and Piëchs were never really a loving couple." (Then again…) "Who's who" implies that Wolfgang Porsche's power is on the wane. And yet… his close relationship with Porsche CEO Wendelin Wiedeking (is it me?) is said to give him an upper hand in the new power politics at Porsche Automobil Holdings, VW's new master. Supposedly. Anyway, it's good to see the "collegial partnership" is off to such a good start…

I'm a little confused on The New York Times' position regarding states' rights. On one hand, it's down with California's desire to enact CO2 emissions regulations that trump national standards. On the other hand, when it comes to teen licensing, it asserts "What the country needs is a uniform set of rules, based on the soundest research. That is the best way to keep teenage drivers, and everyone who shares the roads with them, safer." The Old Gray Lady argues that "Congress flexed its muscle in the mid-1980s and pressed states to adopt a minimum drinking age of 21. More recently, it did so to pass tougher drunken driving laws. The country’s highways are safer for those efforts. Congress now needs to do the same for teenage driving." To that end, the paper supports Senator Chris Dodd's proposal to withhold federal highway funds from states that refuse to set the minimum driving age at 16 and adopt graduated licensing for 16- and 17-year-olds (including nighttime and passenger restrictions). While the Connecticut Senator is prepared to run roughshod over states' rights in this issue, representatives from more rural regions may make that effort politically problematic. 

For some time we've heard rumors that Ferrari has been considering the possibility of thinking about maybe considering producing an "entry level" model codenamed 4139. Autoweek says si, a $190k fourth model is on its way. The mag isn't naming sources. Nor are they naming its name; "California," " Dino" and "Piccolina" are all in the running. Apparently, the miniature pony will sport a 4.3-liter V8 just like its big brother F430 and cousins Alfa Romeo 8C and Maserati GranTurismo. However, it will only share a block with the F430. The baby gets all new injection rails, intakes, cylinder heads, valvetrains and some sort of never before used throttle body. The steerage class engine will also get direct injection (for improved mileage) and an eco-minded transmission. Even stranger, the latest Maranello product supposedly started life as a Maserati-Pininfarina joint [venture]. Weirder still, the 4139 will feature a Pininfarina-sourced folding steel top. Actually, Pininfarina might built a good chunk of the car as Ferrari's assembly lines are already at (or past) capacity. So, who's excited about a super-expensive, Maserati-derived, Pininfarina-built, 2+2 folding roof Ferrari (or not) that might be called Piccolina? Bueller?

Every forty seconds, another new Corolla rolls off a dealer’s lot. Statistically speaking, it’s piloted by a middle aged woman without a college degree. She could be your house cleaner, mother or receptionist. For forty years, the Corolla has satisfied her with its predictable blend of reliable, economical and durable transportation. These days, old is out, youthful is in. Toyota’s PR professed and ambitious goal for their tenth generation Corolla: “to connect, more than ever, with younger buyers on every level” (Toyota’s italics/underlines). So, has the new Corolla hooked up?