Japans currency rose to a 14-year high against the dollar last week, prompting fears that the island nation’s exports could be dramatically affected. And no firm stands to lose as much Toyota, which had been operating under the highest assumed exchange rate of any of Japan’s auto exporters. Reuters reports that ToMoCo had pegged the rate at 90 yen to the dollar, some five yen higher than rivals Honda and Nissan. With the Yen trading at 86.29 to the dollar, that assumption could add up to big losses: Toyota reckons that for every one yen drop against the dollar, operating profits will decline some 30b Yen due to the fact that it exports over half of its Japanese-made automobiles, most of which head to market in the US. Aizawa Securities analyst Toshiro Yashinaga explains that Toyota, more than any other Japanese firm, is riding the razor’s edge.

Carmakers that issued big profit warnings last year have set cautious forex assumptions this time, so roughly speaking the current rates are within expectations. But there are views that the dollar could sink even further in 2010, to the 70s (yen), and in that sense Honda and Nissan, which are relatively strong in emerging markets, are in the winning camp

Japan’s government has thus far resisted calls to intervene in the Yen’s exchange rate. As if Toyota’s heavy exposure to the moribund US market weren’t bad enough, exchange rate uncertainty could make Toyota’s second-straight loss even worse than expected when the firm announces its fiscal year-end results in March.

The Bologna police department proves the age-old adage that the free cars crash twice as fast [The Guardian via Jalopnik].

We noted earlier that Chrysler’s turnaround is dependent on Ram and other truck-based models to maintain the steady profit increases projected in its five-year plans. CEO Sergio Marchionne confirmed the importance of body-on-frame vehicles to Chrysler’s US lineup in a recent interview with Automotive News [sub]. “I think it will be very stupid for us to assume the same type of European style and sizing which has driven the automobile portfolio of Fiat Group will prevail in the U.S.” Marchionne tells AN’s Luca Ciferri. Marchionne says Chrysler’s US lineup of full-sized pickups, SUVs, large cars and minivans will see their fuel efficiency improve to keep up with pressures on the market, but that the US linup will not suddenly downsize or work away from its traditional strengths. Marchionne even aknowledged that the Ram brand would continue to be a crucial profit center, just as Fiat Professional-branded  commercial vehicles drive much of Fiat’s profit in Europe. But as another report in Automotive News [sub] explains, the truck market is continuing to erode underfoot. Chevrolet truck marketing executive John Schwegman explains that

in 2005, buyers who chose pickups “primarily for image” accounted for 200,000 to 250,000 annual sales. That fell to about 100,000 in 2008. This year, he says, only about 50,000 personal-use buyers will drive home full-sized pickups.

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Just because GM has released photos of the US-spec Cruze ahead of its LA Auto Show debut, doesn’t mean they couldn’t pull an Alfa and change that ridiculous name. After all, Cruze will mark the eightieth name used by GM on a mid-sized or smaller car since 1968, according to our in-house historian. And it’s hardly the kind of name you want to build on, or make part of your company’s heritage. But then, given GM’s small-car history, what is?

Alfa Romeo was founded in Milan some 99 years ago, but as a division of Fiat, it’s pulling up its roots to relocate its remaining 232 Milan-based employees (out of 20,000 employed there twenty years ago) to the mothership’s hometown of Turin. CEO Sergio Marchionne explained that the move is strictly business, saving the company costs by consolidating operations, but the move has one minor rub: Alfa had planned to revive the “Milano” nomenclature for its 147 successor. Obviously this proud reference to a local heritage that no longer exists caused a few problems with employees, prompting Fiat to hastily announce a last-minute name change. Rather than Milano, the name Giulietta will be used for the new hatchback. But the last minute irony-avoidance maneuver pushed back the launch of the new Alfa, which was supposed to debut with official images today. As Automotive News [sub] reports, “the decision left some monthly magazines scrambling as they had already received pictures of the car, which was badged the Milano.” Whoops! Time to re-order those decklid badges… unless the decision to go with Giulietta was inspired by the discovery of boxes of unused badging. Fiat made another such last-minute name change in 2003, when the ill-advised name “Gingo” was dropped in favor of “Panda” because its was deemed too similar to Renault’s Twingo.

When cars and politics collide, the results are rarely pretty. No wonder the political discussions here at TTAC so often rate amongst our most heated and community standards-challenging. Modern cars are machines of great power, facilitating a great deal of freedom but also carrying undeniable consequences, and their position in modern society demands a constant re-evaluation of their terms of use. Some of TTAC’s gripes on car-related policy may lead some to believe that we harbor ulterior political motivations for our coverage, but the truth of the matter is that our principles are simple and directly car-related. If our political coverage sometimes seems petty, it’s because American motorists have relatively little to complain about. In Russia, however, motorists find themselves under assault by import bans, draconian tax increases and corrupt traffic police. And as the New York Times documents, it takes a lot to push motorists into political awareness, but once pushed their eloquent defense of their automotive rights is nothing short of inspirational.
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TTAC did not file a full Chrysler Zombie Watch from the launch of Chrysler’s five year business and product plan, but two major points dominated our coverage. The first was this graph that shows 2009 as a trough year for Chrysler sales, with 2010 heralding a major and sustained turnaround in Chrysler’s fortunes beginning next year. Underlying this rosy projection is the second main point of Chrysler’s turnaround, a product/branding strategy that we summarized as “refresh and market like hell.” But refreshes take time, which is something that Chrysler simply doesn’t have. While the automotive world waits for the crucial Fiat-fettled refreshed Chryslers (due to begin arriving at the end of 2010), the “market like hell” portion of the plan is hitting America’s airwaves first, in the form of new ads aimed at reviving “consideration” of Chrysler’s damaged brands. But now that we’ve seen the opening salvos in this $1.4b war on consumer apathy, it’s becoming clear that Chrysler’s journey (no pun intended) of a thousand miles is beginning with a stumble.

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Courtesy of saabsunited.com comes this letter from Saab’s Swedish employees to General Motors.

[the following section was originally written in English]

To our owners, General Motors

We at Saab have lived with our brand and our cars for more than 60 years. It is a brand that accommodates great passion. Ever since the beginning in 1947, when engineers from the aircraft industry were lying on the floor outlining the body lines of the first prototype, we have been bearing the stamp of new thinking, desire for continuous improvement, willpower and commitment.

We call that “the Saab Spirit”, and during the last year it has been more evident than ever. We have not given up. In times of extreme uncertainty we have delivered and created new prerequisites for our company, and we have built a new vision where to bring our brand and our products. We believe in our future. We know we have the ability.

Trust us. Don’t count Saab out. Allow us to bring our roots into the future. It is not only important to us, but also to our 1.5 million customers around the world and all of those people passionate about our cars and our brand.

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What do you say about a purported “Total Value Index” that includes such notable turkeys as Honda’s Insight, Mercedes’ R-Class, and Chrysler Aspen? No seriously, what do you say? Did nobody at Strategic Vision notice that the Aspen has been discontinued or that the Insight is actually less compelling than a Civic Hybrid? Besides, can we be done with surveys that find different ask people how much they love the car they just dropped a load of money on? If you’re dumb enough to spend money on an Aspen, you’re dumb enough to say it has more “total value” than any other mid-size ute. But why does SV have to give your dumb, self-justifying opinion even the thinnest veneer of credibility? Here’s what Strategic Vision’s President has to say about the list:

Durability alone and simply satisfying customers is not enough for buyers who demand both immediate and long term Value. Customers no longer feel constrained to consider only the ‘usual suspects.’ Because of increased quality, competitive prices and manufacturers fighting for their lives to provide Loveworthy℠ vehicles, this is truly an exciting time for car buyers, today and in the near future. Manufacturers are listening and reacting quickly to stay competitive.

By discontinuing models that appear on the list? Sigh. Match these vehicles against their sales numbers, and you’ll see that the only consumer opinions that count (i.e. the ones backed by purchases) are very different than this list.

Well, it’s that time of year when we call a quick time-out here at TTAC and retreat to our families to celebrate Thanksgiving. Having already celebrated their Thanksgiving, our crack Canadian tech team will be taking advantage of our holiday lull to perform some maintenance behind the scenes. TTAC will be down for several hours today, but we’ll be back to our usual coverage tomorrow, barring any tryptophan-related brain damage. On a final housekeeping note, our moderator team will be trying out a new tool known as disemvowelment, for comments that straddle the line of acceptability.

With that out of the way, thank you all for reading and supporting TTAC. Thanks to our talented contributors, our brilliant commenters, our dedicated moderators and our patient owners. A special thanks is owed (once more and always) to Robert Farago for creating this amazing community. Happy Thanksgiving!

Pontiac was declared “officially almost all the way dead” at about 12:45 p.m. today, when a white, G6 sedan rolled off the assembly line in Orion Township. The Detroit News reports a distinct lack of “cake or commemorative banner or senior GM official on hand.” Media was not invited. The DetN notes:

Unlike the last Oldsmobile, an Alero signed by hundreds of plant workers and donated to the R.E. Olds Transportation Museum in Lansing, the final G6 models will be sold as part of a fleet order.

Nearly unbelievably, Pontiac’s “officially official” demise will be even more depressing: a Mexico-built G3 Wave (neé Aveo) to be sold to a lucky Canadian. For real.

[Hat Tip: supremebrougham]

Thank goodness for Autoweek. Someone has to ask the goofy questions that turn internet forums into raging wildfires of obtuse wishful thinking, and A-Dub is there to lay it all on the line. The latest episode centers around a line from Ralph Gilles’ press release on the new Viper ACR:

When we have partners across the ocean who are known as the best sports-car makers in the world, the future opportunities are huge

Which is like giving a two-thirds of a through-the-clothes handjob: just plain mean. If disappointment undimmed by crushing obviousness isn’t your thing, skip the next bit.

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Managing debt is a most American exercise, and after finishing the third quarter of this year owing $26.9b in debt, Ford is in management mode. According to Reuters, Ford will repay $1.9b of its $10.7b “mother of all subprime mortgages” revolving credit line, part of $23.5b in loans Ford backed with all of its assets (up to and including its logo) in 2006. $7.2 billion of revolver debt is being pushed on down the road though, from November 2011 to November 2013, and $724m has been converted to a term loan due in December 2013. More worryingly, lenders refused to roll over $886m of the debt Ford requested, bringing it due in December 2011.

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No wonder GM decided it couldn’t give up Opel… it would have lost Buick as well! Expect this Buick Excelle (a rebadged Opel Astra in the style of the new Regal) to arrive in the US under a different name (and probably in sedan form only) around the 2012 model year.

Our daughters have a beautiful first name that must not be associated with a car, so let us unite to bring pressure on a multinational which is going to destroy this pretty name for our children. It is a scandal that they are able to use common first names for products

Sébastien Mortreux of Auby complains about Renault’s use of the name “Zoé” for a new electric car, being shown in concept form. French parents are rising up in anger, reports the Times of London, signing online petitions protesting Renault’s choice of a name that recently became one of Frances most popular. Now, I don’t plan on ever having children, but if I did, “Twingo” would have to be at the top of my list of potential names. Besides, as a Renault spokesfolks point out, the practice has good precedent, dating all the way back to Emil Jellinek’s 1902 decision to name a car after his daughter, Mercedes. Plus Renault already has the Clio and Mégane. And really, would these people be any happier if the car was named something like Bipper Tepee?