Our contacts at Ford tell us there's big trouble brewing for The Blue Oval Boys. Two independent sources report that FoMoCo is ceasing production of the fresh-out-of-the-box Flex in their Oakville, Ontario plant. Apparently, the factory has built some 13k xB-shaped CUVs since production began on June 3– and sold [a lot] less than a thousand. Our correspondent tells us "the 500 additional employees that they were hiring for a third shift have been canceled… The CAW [Canadian Autoworkers Union] is not too pleased." If true, Ford's beancounters will share their dismay; the automaker spent over $1b converting Oakville to, wait for it, flexible manufacturing. While we seek further confirmation, a TTAC tipster working at a supplier for the Ford Edge (also made in Oakville) says dropping sales are leading to a severe cutback. "Our schedulers are trying to get some hard numbers so they can work out our shifts." You want hard numbers? Although Edge sales are up 16.8 percent year-to-date, they fell off a cliff in June, down 19.9 percent. The same fate befell the Lincoln MKX (the Edge's twin under the skin), up 4.2 percent year-to-date, down a whopping 34 percent in June. We will keep you up-to-date with new info as we receive it. One thing is for sure: when Ford reports its financials on Thursday, there will be Hell to pay. [thanks to our sources]

A few years ago, when my mother was car shopping for entry luxury sedans, I suggested she "just get an Infiniti G35x." I've never been wild about the G – especially when laden with AWD – but it had more power than any competitors at the time, offered the AWD, the all-important luxury badge, and it was the best price in the class. I cannot count the number of time when I've seen in car forums somewhere, a debate or discussion in which the G35 plays the role of spoiler. "Why get a BMW 328i with only 230 horsepower when you could get an Infiniti G35 for the same price with 300+?" Replace BMW 328i with Mercedes C300, or Audi A4, or Lexus IS. That being said, they moved about 5600 G35 and G37s in June, compared to over 9000 BMW 3-Series sold in the US that month. Then again, the BMW 3-Series has a cult following going back 30 years. While the Infiniti G35 wears the legendary Skyline name in Japan, 99.9% of car shopping Americans don't know that. (Ken Watanabe, Japanese movie star and costar in The Last Samurai, is featured in the ad above). The bottom line is: Infiniti figured out how to get to the bargain breaking point. By that, I mean the position at which they offer the best value in the class, but not so much value that their car is no longer desirable. 

So begins the Detroit News' recent editorial on John McCain's recent flippity-flop on California emissions regulations. And though industry gentlemen prefer McCain, the DetNews' critique is centered not so much on McCain's flip as his flop. After all, McCain originally supported California's right to set its own standards before coming around to support the industry-backed opposition to CARB– before flopping back to the federalist camp at a recent appearance at GM's Warren Technical Center. That has the Detroit News going after McCain on a host of industry-related issues. Calling his proposal for a $5k consumer tax credit for zero-emissions cars a "giveaway scheme" sounds good, and is certainly founded on strong economic principles.  McCain's proposed $300m prize for an advanced EV battery is similarly lambasted. Which is all well and good, except that the Detroit News would rather find itself dead in a ditch than hold its industry backers up to the same standard. Haven't  Ford's Mark Fields and Chrysler's Jim Press been pressuring the government for production incentives for EVs? Hell, didn't Slick Rick even ask Obama for the very consumer incentives that the Detroit News derides? But as hard as it tries to portray Detroit as just wanting to be left alone by the government, DetN fails to apply its free-market logic to the industry it pimps. With this flip-floping attack, the industry's paid rhetoricians have inadvertently exposed their critique of John McCain as the intellectually bankrupt hypocrisy it really is. You stay classy guys.

Yesterday when discussing Chrysler's difficulties in accessing credit to offer sweetheart financing, the conversation couldn't stray from a simple reality. Chrysler's cars don't sell themselves, making the company dependent on getting good financing despite the credit crunch. And what better example is there of Chrysler's product pathos than the unlovable Avenger? Motor Trend recently tested ten midsized sedans it deems "Familial and Frugal," and despite going head-to-head with Mitsubishi's Galant and the Kia Optima, the Avenger came in dead last. Offering the worst acceleration, handling and braking of any car in its class, the Avenger inspired some savage simile from the usually docile MT staff. The Avenger's "crude" engine and "archaic" four-speed tranny "pushes it off the line with about as much vigor as a maimed turtle," say the buff book scribes. And though the styling isn't horrible,technical director Frank Markus says "the Dodge's quasi-aggressive styling and nomenclature and its racy white-faced gauges kind of write a sportiness check that the drivetrain and chassis can't cash." Sure it was the cheapest car in the test, but sometimes that's not even enough. Senior Editor Ed Loh sums it all up, saying "overall this is the essence of basic transportation; not remotely fun to drive and not all that practical or feature rich. There is absolutely no reason to buy this car." Well said sir, and may we just say that for once we are in complete agreement.

My local Land Rover dealer is the first car dealer in the country to buy carbon offsets for the first 50k miles of every new and used Landie they sell, in hopes of tempting green types into their Chelsea tractors. Now it seems that Land Rover has decided to offer more, erm, sustainable options for environmentally-minded ute lovers.  LR is showing a new range of diesel hybrid engines at the London Auto Show. Motor Authority reports that Land Rover's new electric rear axle drive (ERAD) consists of a rear-axle mounted 25w electric motor which can power all four wheels in parallel with a four-cylinder diesel engine. The powertrain also includes a Crankshaft Integrated Starter Generator (CISG) mounted in the dual-clutch transmission, which acts as a supplementary motor for adding torque to the driveline and also for starting the main diesel engine. Both the ERAD and CISG can be used for regenerative braking, and together account for a 20 percent reduction in carbon emissions. The ERAD/CISG system is still in early development, and is not expected to debut for several years. In the meantime, Land Rovers are expected to get stop-start technology as early as next year. Which hopefully means that Land Rover of Portland can end its gimmicky greenwashing campaign sooner rather than later.

In St Louis, MO the company responsible for handling seized cars is being accused of giving "sweetheart deals" for cars that had been taken from their owners. The St Louis Post-Dispatch reports that S&H Parking gave a seized car to the St Louis police chief's daughter in 2002, and sold her other cars at less than half the market price since then. A report from a local law firm alleges that Aimee Mokwa and "a number of unnamed officers" had been given free use of previously-impounded vehicles. Her father, police chief Joe Mokwa, denies any wrongdoing, but his officers responded to several accidents involving his daughter while she was driving a seized car. Not only was her unlicensed, unregistered seized car not returned to private ownership, but Ms. Mokwa was also not charged with any crimes despite having a blood alcohol level several times above the legal limit. In short, S&H Parking made big profits from car seizures, and gave the police chief's daughter a number of sweet deals to keep the gravy train rolling while his officers kept her out of jail. Of course, the police department's legal team says that the deals weren't improper since Ms. Mokwa is not a member of the force, and her father claims to have been oblivious. Absolute power may corrupt absolutely, but petty power is always abused in the most embarrassingly pathetic ways. (Hat Tip: Reason Hit & Run)

Survey takers Greenberg, Quinlan, Rosner Research recently quizzed 800 registered voters about corn juice. They discovered the majority either favored or strongly favored "continuing to increase the use of ethanol, a renewable source of energy, in our nation's fuel supply." Hold on there, what's with the little caveat about "a renewable source of energy?" What would the results have been if they'd left that little gem out? Did the fact the The Renewable Fuels Association paid for this research have anything to do with the wording? Of course not. Anyway, "By a 71 to 17 percent margin, voters believe the rising cost of oil and gas is the primary reason food prices have been going up, rather than blaming the rising use of corn-based ethanol." Key word: "primary." The question asks what respondent blame "the most" for rising food prices. Eight percent blamed ethanol above increased demand in China and India and severe weather. And here's the kicker:  21 percent of those surveyed said they were less likely to support a candidate for president who supports ethanol, "a renewable source of energy." Go figure. 

All across the nation, SUV Sally's and Sam's are cussing at the pumps. They're watching the readout with mounting horror: $80, $100, $120+ per fill up. The automotive source of this pain of portly plenitude is has become the pink elephant of the American lifestyle. And it's true: SUVs suck. Not just gas. Depreciation, insurance and street cred. And so, the "Livin' Large" folks of the Oil War Era are giving up their SUVs en masse. Which brings us to a simple question. Should you?

It sucks to be a Chrysler brand franchisee right now. Trucks and SUVs are piling up on lots as dealers try to come up with ways to clear the inventory before the '09 models start rolling in. They have their work cut out for them. At the start of July, Chrysler/Dodge/Jeep dealers had a 160-day supply of Rams gathering dust. If that weren't bad enough, the stores have enough Nitros to last 143 days and enough Aspens to last a lifetime. I mean, 218 days. The Jeep Wranglers they couldn't keep on the lot just a year ago are now piled up 129 days deep. With an average of only 16 truck sales per Dodge franchise, 10 per Jeep franchise and four per Chrysler franchise in June, it may take them a while to dig their way out. But, as they say, misery loves company. Honda dealers are sitting on a 160-day supply of Ridgelines and Mitsubishi dealers are dealing with a 222-day supply of Endeavors. Nissan blows them all out of the water, though. If a 215-day supply of Xterras, a 229-day supply of Armadas and a 247-day supply of Pathfinders aren't enough, the "Lot Queen" crown goes to Titan: there's a four hundred eighty-nine (yes, 489) day supply of the Mississippi-made haulers sitting around. Blow-out clearance sales can't be far behind. 

Bioethanol is so last year. Biomass Magazine (yes, there really is such a publication) reports the latest research in biofuels is directed at producing "green hydrocarbon fuels.' While biodiesel is becoming relatively commonplace, it's based on oils derived from plants and animal fats. Green hydrocarbon fuels are second-generation biofuels made from the same biomass materials used for bioethanol, with several advantages. Since they're chemically identical to the petroleum-based fuels, they carry the same amount of energy. Unlike ethanol, no vehicular modifications are required, AND they can use the current fuel delivery infrastructure. The down side: the process to produce the fuels is much more complex than either petroleum or ethanol production, requiring the conversion of the biomass to bio-oil before the refining process can begin. Researchers are working to simplify the solution, but it'll still be a few years before there'll be a bountiful supply of biogas– at least the kind that isn't produced by a diet of burritos and beer.

Yesterday's autoblogosphere was all abuzz with the Camaro reveal. We meant to cover it, we really did. And we will, with the same sense of urgency GM's shown in this interminable ponycar hypefest. Is it us, or are you, our Best and Brightest sharing a sense of ennui with a car that STILL won't be available until NEXT SPRING? Anyway, from my POV, the story here is that GM is touting the new Camaro's fuel economy. "We'll be promoting the fuel economy story very much," Ed Peper, vice president of Chevrolet, told Automotive News [sub]. "We are 2 or 3 mpg ahead of the competition." Right. So someone contemplating a Mustang, Challenger or Camaro will make their final choice based on fuel economy. Sure, I believe that. "Peper said the V-6 version will get an estimated 26 mpg, while the V-8 version will get an estimated 23 mpg. The V-6 will get 304 hp, while the V-8 will get 422 hp. 'And we are still working on it,' Peper said. He also hinted that a turbo 4-cylinder version could be in the works." So that's that then, yes? We're done here? "GM will disclose a price once the vehicle is closer to production, but Peper said the Camaro will be the 'best value in the sports car segment.'" As for volumes, Camaro product manager Cheryl Pilcher promised "we will build as many as we can sell." Or more!

Nestled in a New York Times article about Ford's fight for survival– switching production to small cars, building world cars, reporting epic losses on Thursday, yada, yada, yada– comes news that FoMoCo is NOT killing their Mercury brand. The Gray Lady's head automotive cheerleader cites "people, who spoke on the condition that they not be quoted by name because of the timing of the official announcement on Thursday" as saying The Blue Oval Boys will make the brand "an integral part of its new small-car strategy." Well, my mind is boggling. But not Bill Vlasic's, a reporter who feels compelled to not add a damn thing to that revelation, other than "the company will keep the Mercury brand and use it as another distribution channel for small cars." Which is the same thing, only later. The rest of the article is padded with a potted history of FoMoCo's "troubles," with the usual Vlasic Motown-thrown bone. John Wolkonowicz, an auto industry analyst with the forecasting firm Global Insight, tells Bill "“It’s hard to blame Ford for building vehicles that consumers wanted to buy." 

In an email to the troops [obtained by The Detroit News], Chrysler CEO Bob Nardelli's denying The Wall Street Journal report that ChryCo's re-fi of $30b of short-term, car-loan-backed debt may not go down. If that happens– I mean, doesn't happen– Chrysler dealers will find themselves in that special place where they have no attractive deals to offer on their unattractive vehicles. Nardelli said pay no attention to that banker behind that curtain. "As is customary for many auto finance companies, this renewal process takes place every year. We will continue to offer competitive financing and lease options for our customers and dealers." A dealer worries. "We knew something was going on with Chrysler Financial, but we didn't know what," reveals Alan Helfman, owner of Rivers Oaks Chrysler Jeep in Houston. "It's a big-time concern, because there is a copious amount of deals that I can't get done today that last year I could make a phone call and they'd be willing to work with us." Perspective people! "If the demand for your products is there," says George Magliano, automotive analyst with Global Insight Inc. "You don't have to worry as much about offering a great deal." Which is exactly why Helfman and his fellow store owners are scared to death.

On the occasion of GM's 100 year anniversary, the Kalamazoo Gazette held a "live-by-email" interview with GM CEO Rick Wagoner. So, PR fluff aside, how many more jobs losses is GM-heavy Flint, Michigan going to endure? Uh… GM is pitting Flint against other sites for the production of its next generation 1.4-liter turbocharged four-banger. For which Wagoner claims a nine mpg improvement over "Chevy's current entry in this segment." (Did he means the Aveo or the Cobalt? Smart money is on the Aveo, since it currently sticks out for its poor fuel economy vis a vis the class leaders.) Rick also said the new engine might be used as the ICE portion of the Volt. Now hold on. If the Volt is due into production in about 18 months, shouldn't the engine choice be a done deal? As for Flint's chances of getting the four-banger and other new projects, Rick told Flintonians to "rest assured, we have every intention of ensuring that Flint has every opportunity to play an important role in GM's future." A direct question: will the last local final assembly plant, Flint Truck Assembly, emain open? Rick gave a long winded non-answer which came down to that GM plans to keep building pickup trucks– somewhere. Oddly enough, the words flex-fuel, hydrogen and ethanol are nowhere to be found in Rick's latest recitation of how GM plans "to be a global automotive leader for the next 100 years."  The choice of words is telling. "A global automotive leader", not "THE global automotive leader." My how the mighty have fallen.

The EV goldrush is on. Every frustrated inventor in the country is hyping his or her homemade EV kit. One of the most unconventional offerings recently featured at Green Car Congress. The Poulsen 'Through The Road" PHEV Conversion Kit features external, rear wheel-mounted electric motors which engage at cruising speeds to keep your conventional car rolling along without using the gas engine. Without going into too many boring technical details, once you accelerate normally to your cruising speed, you engage the system with a toggle switch and "potentiometers," sending 14hp to the rear wheels. Besides making your car look like it was recently booted, the Poulson Hybrid adds no fewer than six 12V lead-acid batteries– although a Li-Ion cell is supposed to be available later this year. Poulson is currently planning on building only 250 kits in the initial run, the majority of which are likely to be bought by the nerdier members of Ralph Nader's campaign supporters. Although we like the idea of bolt-on EV AWD in principle, this Hail Mary makes the Volt look like a done deal.