The gist of Sweet Pete DeLorenzo’s argument is that Chrysler has to do something to remind Americans that they still exist. Given the Chrysler’s inability thus far to articulate a vision for the Dodge brand post-Ram, this makes a certain amount of sense. With a new, well-respected ad agency, Dodge could use the Super Bowl’s giant stage to get back on the buying public’s radar. The problem with the plan lies in the one question that DeLorenzo fails to answer: why bring buyers into Dodge showrooms if there’s nothing there?
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An interview with Forbes the boss of the Korean Development Bank, which GM-Daewoo still owes several billion dollars, reveals that GM’s South Korean unit had a debt-to-equity ratio of 912 percent as recently as last June. GM “rescued” its crucial small-car development center by buying up all $413m of GM-Daewoo’s recent share offering, keeping the the KDB from imposing its will on the automaker. That was enough to keep the wolf from Daewoo’s door in the short term, but if Daewoo is ever going to develop a new generation of GM small cars and global products, it will have to address its $2b KDB debt and raise additional funds. For now though, GM-Daewoo is just hoping to keep a little momentum going.

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Toyota’s head start on hybrid technology is easily the most significant advantage any one automaker holds over any other. It’s next closest competitor in hybrid offerings is Honda which is facing serious challenges as its Prius competitor, the Insight, is off to an incredibly weak start. To capitalize on this advantage, Toyota plans to up annual production of its hybrids to one million units by 2011. Despite reports that Toyota is refocusing on hydrogen fuel cell vehicles as a long-term option, Yoshihiko Tabei, chief analyst at Kazaka Securities believes:

For the foreseeable future, the focus of Toyota’s (low-emission car) strategy will be on hybrids, not electric or fuel-cell cars. Except for Honda, Toyota is facing little competition in hybrids and is set to put distance between itself and other automakers

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Michael writes:

Sajeev, you always hear the advice to have a used car inspected before purchase by a reputable mechanic. But how do you implement that advice at your typical car lot? Dealer or independent, I can’t imagine they are excited about having someone drive off for several hours.

How does the B&B make this work? Leave your existing ride? Partially fill out a purchase contract? Leave your kids the showroom? Ideas, please, on how I phrase this “request” and what is reasonable to guarantee my return with their vehicle.

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Subtitle two: we don’t believe a word of it. The report comes from an exclusive interview of GM Chairman/CEO Ed Whitacre at the Volt fanboy site gm-volt.com. GM-volt’s Lyle Dennis asked Whitacre if GM would lose money on every Volt it sells, a fact that GM executives have never tried to substantively deny. Until now. Whitacre’s answer:

“We’re not in business to lose money,” he said. “We did enough of that already.”

The Volt “is going to sell in the low 30s,” said Whitacre. “We’ll get a margin on that.”

Oh really? Because it sure seems that GM plans on selling the Volt for $39,500-$45,500, and that the “low 30s” number is dependent on a tax credit. As for Whitacre’s claim that the Volt will make profit, the lack of time-constraints on his prediction is all you need to know. With enough sales and over enough time, almost anything will create profit, especially if the government is distorting the battery market for you. Meanwhile, GM still has to overcome $40k sticker shock (sorry, but you can’t exactly advertise post-tax break prices) and at least a few years of loss on the Volt. But if the gm-volt comments section proves anything, it’s that you can never go wrong misleading the fanboys.

It’s been a widely-shared opinion among TTAC’s writers for some time that GM should have used its bailout and bankruptcy to cuts its brand portfolio to Chevrolet and Cadillac. We’ve already sussed out the negative side effects of trying to hold onto the Buick-GMC dealer net, the biggest of which is that without Pontiac, Buick is being forced into volume-chasing. With the debut of the Granite “Urban Utility Concept,” we’re seeing the same brand-diluting volume-hunting taking place at the “Professional Grade” brand. GM’s attempt to bring more youth and volume to its GMC brand is starting with a Youtube-heavy, family-oriented marketing campaign, pointing the way for the brand to betray its “Professional Grade” raison d’etre. But GM’s marketing plan for the Gamma (Aveo)-based Granite will be the final nail in the brand’s coffin. Because to save the brand, GM must destroy the brand.

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With a brand new BMW 3 Series in development, BMW has updated the current-generation coupe and convertible. Or has it? Say what you want about the Bangle era, in those days a mid-cycle refresh was a mid-cycle refresh.

Even with a government-mandated arbitration process in place, the battle between Chrysler and its 789 culled dealers is a low-down, dirty dogfight. Last week, Chrysler sent out letters to all of its rejected dealers, in its attempt to comply with the arbitration law’s disclosure requirements. But, dealers tell Automotive News [sub], those letters are justifications, but not explanations. Absent concrete evidence for why their franchises were closed (something GM has provided to its culled dealers), lawyers for some 65 rejected dealers are fighting back.

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In a surprise move, Arizona Governor Jan Brewer (R) took a step to save the freeway speed camera program imposed by her predecessor, Janet Napolitano (D), the current US Secretary of Homeland Security. On Friday, Brewer proposed a Fiscal Year 2011 budget that cut spending by $1.1 billion, reduced the state’s workforce by ten percent and raised taxes by $1 billion to address massive deficits brought on by overspending during the economic downturn. Also tucked into the budget were assumptions that automated ticketing would continue beyond 2011, based on expected results from a new referendum proposal.
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China’s Geely has joined other manufacturers such as Chevrolet, Ford, Hyundai, Renault, Kia, and Toyota, and launched a production line in Russia. Geely opened a plant in Russia’s Caucasus republic of Karachay-Cherkessia, China’s state news agency Xinhua reports. (Read More…)

There has been a lot of, well, criticism, of Honda on these pages lately, including allegations that Honda had lost it. So far, more that fifty of the Best & Brightest offered advice on how to save the company from certain annihilation.

Today’s Nikkei says “domo arigato gozaimashita” for all the support, and runs a different story: “Honda Motor Co. has emerged from the economic turmoil at the head of the pack, thanks in good part to a nimble production network that can meet the latest consumer preferences at relatively low cost.” Here is why. (Read More…)

Toyota plans to roughly double its global production of hybrid vehicles to 1 million units in 2011, The Nikkei writes. Toyota alerted parts suppliers that it intends to roll out about 800,000 hybrids domestically in 2010, around 900,000 in 2011 and roughly 1.1 million in 2012. (Read More…)

A lot of what we have written in the last few days, even what we have not yet written, is utterly wrong, say the objects of our writings. Here are the denials of the day. (Read More…)

1984 was a milestone year in the car world for new cars: the new W124 Mercedes 300E; the Jeep Cherokee; The Dodge Caravan/Plymouth Voyager mini vans. But perhaps the biggest shocker was Honda’s new Civic family: four distinctly different Civics, each with its own unique body and character: The conservative four-door sedan, the popular hatchback, the remarkably roomy tall-boy wagon, and the iconic two-seater CR-X. It was a bold and expensive gamble to make the Civic the number one compact in the land, and it paid off handsomely. With a Civic for each purpose and personality, Honda dominated the niche, and set the Civic (and Honda) firmly on a path of growth and domination that shocked Toyota, crippled Nissan, and utterly blew the domestics into the weeds. Was it Honda’s peak year ever, and have they been coasting since?