GM's suicidal robot may be joined by his unemployed brothers before long. The automotive sales slump is not only affecting flesh and blood workers, but also those of the cybernetic persuasion. Automotive News [sub] reports that North American orders for production robots dropped 34 percent in the first quarter of this year compared with the same time last year. While the auto industry normally places about two-thirds of the total orders for industrial robots, sales this year only amount to a little over half. Ake Lindqvist, VP at ABB Robotics takes a "don't worry, be happy" view of the downturn. "We know Chrysler's new management has held back on previous planned investments until they have sorted out internal things, but it will come." He also expects Ford, BMW and Hyundai to make "major robotics investments" toward the end of the year and into next year. The latter two I can see, as they're building new plants or expanding existing ones, but Ford? And Chrysler? Somehow it doesn't seem that companies that are selling off assets, stiffing their suppliers, firing thousands of workers or drastically cutting production will be investing millions in new equipment they may never use.

Every year, the California-based whack jobs at Strategic Vision announce their "Total Quality Index" (TQI) with some headline-grabbing conclusion. Each year, the media swallows it hook, line and sinker. Each year, we point out that Strategic Vision's methodology is from Planet Claire and their client roster indicates a greater conflict of interest that Gerald R. Ford's presidential pardon. This year we get "Ford vs. Toyota, The Battle for Total Quality Intensifies." Yes, “Ford is back, establishing its vehicle quality in the hearts and minds of its customers,” proclaims Alexander Edwards, president of Strategic Vision’s automotive division. Not to mention Mercury, whose Sable (what the Hell's a Sable?) scoops SV's best large car. And if that isn't enough to discredit these Bozos highly-paid market researchers, ALL the winners are Strategic Vision clients. (Still.) HOW they won is anyone's guess– unless you can envision a way to create a point system measuring "consumers’ motivational hierarchies, including the values that shape perceptions and capture the customers’ emotional responses and drive behavior." Yes, once again, we're ready for someone else to cut down Strategic Vision's "Tree of ValueCentered Knowledge." Please.

The Wall Street Journal [sub] has been busy reporting CEO Rick Wagoner's new new turnaround plan, which looks an awful lot like his last turnaround plan, which is based on the principle "Yes, you CAN cut your way to prosperity." Set for unveiling next Tuesday (June 3), "New restructuring actions could include the elimination of some slow-selling models. Mr. Wagoner also will unveil plans to boost revenue." For this you buy a subscription? Obviously not. At the bottom of the report, we get the money shot: "Some analysts, however, fear GM may be headed for rougher waters given its dwindling cash position. As of March 31, GM reported $24 billion, or $6 billion less than what was on hand September 31." Holy cash conflagration Batman! I make that a $1b per month cash burn. Do the math. Or hear this: "Mr. Gilbert [a fixed income analyst at Principal Global Investors] said that if GM doesn't figure out a solution, it may be headed down the same road as the airline industry, which saw several carriers file for bankruptcy protection in recent years. 'Liquidity is the one thing that always separated the two (industries)… If that goes away, the two will look a lot more similar.'"

The rear wheel-drive Genesis sedan is Hyundai's first foray into the luxury car market. We brought you in-person pictures back in March at the NY Auto Show. Now, Hyundai has released the pricing info. For $33k you can get yourself a V6 model with a very healthy 290 horses and six speed autobox packing the usual luxury toys like dual climate control and heated leather seats (ahem, BMW, leatherette). Jumping to the big boy 4.6-liter V8 will cost you another $5k. In addition to the 375 horsepower monster up front, you get a better six speed autobox (ZF this time around), "ultra-premium" leather seats, leather all over the dash, a higher end sound system, and more useless but marketing-necessary toys. Three ways to look at these prices: first, the V6 model is right on point with cars like the Infiniti G35, although you can guarantee they will drive 100 percent differently. And we can't leave out the $32k completely unluxury Pontiac G8 GT. Alternatively, consider the value of the Genesis over a BMW 5-Series, whose 230 hp 528i starts at over $44k. Finally, just for kicks, let's look at things in historical perspective: in 1990, the Lexus LS400 had a sticker of $35k. 

Cars.com's Kicking Tires blog reports a low supply of the badge-engineered Toyota Land Cruiser Lexus LX570. The big rig's specs are impressive enough to bring tears to any fan of a full-figured SUVs: 5.7-liter DOHC V8 good for 383hp and 403 ft.-lbs. of twist, 8500 lbs. towing capacity, and a manufacturer claimed 0 – 60 time of 7.4 seconds (presuming the only ass you're hauling is your own). The LX570 starts at $74,700 and ascends from there, from the Technology Pack ($4200) to rear DVD ($1990) to cargo net ($64). The not-so-PC-SUV guzzles gas at a wallet-emptying EPA rating of 12/18 city/highway. Given the temper of the times (i.e. gas prices), it may come as no surprise that the upmarket LX570s is outselling its downmarket Land Cruiser cousin by 50 percent. We're talking small numbers, though. "Lexus doesn't build 60,000 a year; rather, less than 10,000,” Global Insight analyst Aaron Bragman reveals. “If the high-volume Chevrolet Tahoe was down to a four-days supply with gas at $4 a gallon, it would be a different story. It's not that demand is high… supply is kept low so that the LX 570 is at a four-days supply of unsold inventory rather than at 100 days and has to be discounted." 

"Despite GM's troubles, Mr. Fisher, a former Eastman Kodak Co. chairman, said the board supports Mr. Wagoner and believes GM has the 'best management team to get us through these difficult times,'" reports The Wall Street Journal [sub]. "He pointed to solid products and strong international growth as benchmarks of Mr. Wagoner's success." George Fisher retired as CEO of Eastman Kodak in 1999. From The New York Times on the eve of that auspicious occasion: "Q. There are those who view your tenure at Kodak as a terrible disappointment. Do you feel you've failed? A. Not at all. I remember telling Roberto it would take three years to get Kodak on track. He said it would take five, and O.K., it's taken closer to seven. But the fact is, I've accomplished everything I set out to do. I get angry when I get mail from people complaining about my performance, or when members of the press select the quotes they use to paint negative stories… Q. But you are losing $100 million a year in digital, and shareholders are clearly unimpressed. A. You call it losses, I call it investment." Back to the WSJ and GM: "Another GM board member, Kent Kresa, said in a phone conversation Tuesday night that GM 'management has a handle on the situation.'" Kresa was CEO of Northrop Grumman Corporation from 1990 to 2003. Kresa saved Northrop by merging it with Grumman, buying 15 other defense contractors and instituting ruthless cost-cutting. His faith in Wagoner's unspecified turnaround plan reflects Kresa's seat-of-the-pants, high stakes poker management style, and faith in political influence peddling. So now you know.   

What's the downside? Seems no one at Honda asked that question when the automaker decided to hire a team of 19 skydivers to form the word "Honda" in mid-air. In three minutes and 20 seconds. Live. On British national TV. The spot falls under (so to speak) Honda's new ad campaign: "If it's difficult, it's worth doing." If something goes seriously wrong, the Honda ad will test the limits of another, showbiz-oriented strapline "There's no such thing as bad publicity." The Guardian makes no mention of the ad's central lure– the possibility of death. It does, however, reports that Honda's already tested the concept. (So that's alright, then.) "The stunt is a means of gaining publicity for Honda's new multi-million pound ad campaign, which features 45 skydivers promoting the Honda Accord by creating a series of shapes over the Mojave desert to reflect new features on the car." i-VTEC® this! So why risk risking lives to do it live? ""We wanted to create something unmissable and what better way to produce something 'must see' than to stage the first live ad event on TV," Channel 4's sales director, Andy Barnes revealed. "It's about creating talkability on a big scale, managing the risk and being seen as pioneers for it." Let's hope "managing the risk" doesn't turn into paying off someone's widow. 

In the wake of last week's revelation that FoMoCo ain't out of the woods yet, the blue oval is in full-on cost-cutting mode. Detroit News reports that Ford VP Jim Farley has announced a 10-12 percent cut in its U.S. salaried workforce to go into effect by August. Saying that Ford is struggling to cope with "a structural change to our economy," Farley told employees at a company "town hall" meeting that the approximately 2k layoffs would be involuntary firings rather than voluntary buyout offers. But Farley isn't losing sleep over the firings, as he sees Ford's problems as being caused by external economic forces over which he has no control. "I would expect other car companies to make similar announcements," Farley told employees when announcing the cuts. "They have the same issues that we do — even Toyota." Even Toyota, eh? Meanwhile, FoMoCo is also trying to tart up its troubled Volvo division by throwing consultants and suppliers under the bus. Automotive News [sub] reports that Volvo has announced that it will pay consultants and suppliers ten percent less than the current contracted rate for services. Proving that shit always runs downhill to the supplier, Volvo spokesfolks blame weak U.S. sales (which they expected) and weak European sales (which they didn't), saying "We're looking into how we can turn the business around." What, so soon? Look for this to simultaneously increase speculation of a Volvo sale (why not screw the suppliers if you've already written the brand off?) and decrease the likelihood of said sale (same reason).

Exclusivity is as integral to Ferrari's branding strategy as blistering performance. Since the 1950's Ferrari has turned its cars over to a number of coachbuilders who have wrapped the Scuderia's finest in unique, emotive designs. Over the years, the relationship between Ferrari and its coachbuilders has evolved, and the design of recent factory Ferraris has been handled by traditional partner firms like Pininfarina. Recently limited-edition coachbuilt Ferraris have been making a comeback, as evidenced by such offerings as Pininfarina's $4m Enzo-based 612 P4/5 and 612K, and the Vandenbrink Design 599 GTO Mugello. But Motor Authority reports that Ferrari doesn't want to be left out of the tiny market of folks with the commitment to one-upmanship exquisite taste to pay millions extra for a wholly unique version of their favorite Ferrari model. Accordingly, the Scuderia will collaborate with its three favored design houses, Fioraventi, Pininfarina and Zagato to create a range of factory-approved one-off custom designs. Initially only the F430, 612 Scaglietti and Enzo will be eligible for the Italian design treatment, although if the program meets with sufficient approval, the newer 599 Fiorano and California may become eligible as well. Expect the well-dressed supercars to begin appearing in the second half of this year, led by a Fioraventi-designed offering.

Reading through the comments in the post about Alfa/Fiat returning to the US I was shocked to see our own William C. Montgomery say the following in regard to the Fiat 500's looks, "…or out-ugly the Aztek." Now, I'm picking on William because I can. But, what?!? Ugly? Fiat? Maybe the Panda, the car the new 500 is based on, but… Huh? Of course, it's not just William. My girlfriend for instance doesn't think very much of the Audi A5, while I think it's the most stunning car I've seen in months. And she knows good looking cars when she sees them (usually), as she's still fawning over the Maserati GranTurismo. Then of course, there's me. Most people look at the R8 and schwing! When I went to see Iron Man they had Tony Stark's R8 parked out front of the theater and the people just loved it. Yet when I look at one, I see a porpoise with thalidomide poisoning. Why? Mid-engine cars (almost) always have odd proportions, and Germans can't do sexy. They just can't. But I'm asking you — what makes a car ugly in your eyes?

Can you tell we're a little excited about the planned Toyota-Subaru joint RWD sports coupe? Well, the more we learn, the more we want to know, and luckily Edmunds Inside Line has some new info on the project. The coupe's RWD platform will be developed from Subaru's existing AWD architecture, and will be powered by "a revised version of (Subaru's) naturally aspirated boxer 2.0-liter unit generating around 220hp." We're guessing that Subies 2.0 won't make that many ponies without a turbo, so maybe Edmunds got the "naturally aspirated" part wrong. Since the Integra Type R is identified the project's performance benchmark, expect a 0-60 time of about 6 seconds. With 220hp pushing only 2.866 lbs. using an STI-sourced six-speed manual, it sounds like the Toyobaru is going to be up to task. And maybe it's time to stop calling it a Toyobaru. The coupe will be based on Subaru kit and built at Subaru's Gunma factory, while Toyota's main contributions will be in the areas of planning and quality control. In fact, the Toyota version (little more than revised exterior styling) won't even be offered outside of Japan. Then again, if you could buy a sub-3k pound, 220 hp RWD coupe from Subaru with ToMoCo quality control, why on earth would you be tempted by the same thing with a Toyota badge?

I disagree with every review of the Lexus LS600hL ever written. Categorically. To a man, my colleagues misinterpret the most expensive Lexus as a misguided planet-saver that doesn't deliver enough mpg to justify its sky-high price tag. I view the ultimate hybrid as better driving through science. In fact, despite the dorky "hybrid" badges uglifying the LS600hL's flanks, Lexus didn't build this beast to sip fuel. They built it to go toe-to-toe with 12-cylinder Germans.

CNN declares that "compared with March a year earlier, Americans drove an estimated 4.3 percent less– that's 11 billion fewer miles." The Federal Highway Administration called it "the sharpest yearly drop for any month… since 1942" (when they started keeping records). At the same time, public transportation ridership has hit the highest level in 50 years. The AAA pegs average regular gas prices at $3.936/gallon this Memorial Day, compared to $3.23 last year. Now a sixty cent increase over a year really isn't very much in the grand scheme of things, but the magic number of $4 per gallon seems to have hit the nation's collective panic button. One thing doesn't add up. The Energy Information Center says fuel use is down only 0.6 percent for the first three months of the year. The D.O.T. says March miles traveled are down 4.3 percent. Those two numbers don't seem to jibe, but who says government agency numbers ever make sense? Pick whichever numbers you like, the trend is clear: $4+ per gallon gasoline is curtailing the world's most mobile nation's mobility.

“Rich people don’t care [about high gas prices].” Bob Lutz’ statement– made during the launch of GM’s new SUV’s in August 2005– encapsulates the automaker’s history of arrogance, ignorance and self-delusion. Then again, what else could GM’s Car Czar have said? Whether or not GM should have seen the gas crunch coming, the die was cast. Now, as gas prices crest $4 a gallon, as Delphi and GMAC teeter on the abyss, as GM’s stock price hits a historic low, GM’s slide into Chapter 11 is beginning to assume the mantle of inevitability. And why not? There is no Plan B.

Just yesterday I was talking with a petrolhead buddy of mine. I mentioned the only new car on the horizon that I'm personally excited about: the new Fiat 500. And the Ford Flex, but that's another story. Then our conversation bogged down into the usual "Do you like oil on your driveway," "I don't have a driveway," "Hope you have a good mechanic," "What could possibly go wrong?" Italian car conversation. Fiat CEO Sergio Marchionne is putting my mind at ease. Or not. That's right friends, he could make a decision on when and whether to re-launch Alfa Romeo in the States within the next six months. Part of the confusion is due to our incredible shrinking dollar; to make Alfa work in the US, some of the cars must be built here. And Fiat is in negotiations with various North American companies. The really wonderful news is that Marchionne thinks the 500 will be a "smash hit" here in America. And they'll either build it here, or at one of the existing Fiat plants in South America. Eventually.