The possibility of a quick resolution to the United Auto Workers (UAW) strike against American Axle (AA) is fading fast. It's been a week since the full bargaining teams met; labor specialist Gary Chaison describes the non-meetings as "an awful sign." The AP [via Forbes ] reports the UAW sent an email to members of other organized companies stating "we expect this to be long and drawn-out strike," asking them to join AA workers on the picket line. So far GM has had to close all or part of 28 plants. Thousands of workers have been laid off at other suppliers. The UAW strike is also beginning to affect the Canadian Auto Workers (CAW). Several GM plants in Canada have cut back production, creating what CAW president Buzz Hargrove terms "a tough situation." So far, the strike hasn't seemed to affect GM's sales. The General started March with a 129-day supply of Silverados, a 123-day supply of Tahoes and a 141-day supply of Sierras. These models aren't exactly setting any sales records right now. You can bet that once The General starts feeling the pressure on the bottom line they'll be forced to dip into their pocket and bankroll a union buyout deal similar to their own. But what if AA balks or the suppliers can't make it 'til then? Dangerous times. 

Thinking long-term (as always), Toyota wants its dealers to spend millions expanding showrooms, adding service bays and upgrading their architecture. Thinking short term (as always), Toyota dealers are contemplating the "Image USA II" plan and saying "not on my dime, Bub-san" [paraphrasing]. Automotive News [sub] reports that slumping sales are leading to some serious foot-dragging. "There's never a good time to do a facility modification," TMNA prez Jim Lenz insists. "It doesn't matter if it's two, five or 10 years from now; it will be more expensive than it is today." Toyota's stick: they're threatening not to renew franchises on older stores and offering just two-month franchise extensions to dealers slow to spend the cash. Toyota's carrot: better allocation of popular models. Some dealers say "more cars are the last thing I need." What's more, many just finished investing in Toyota's "Image USA I" plan; they don't relish spending another $1.5m to go to a totally different look. Dealers are telling Toyota: "show me the money." "GM and other brands offer… interest-free financing for their facility program to help you out," a suitably anonymous dealer reports. "But Toyota doesn't."  

Timing is. Everything. ToMoCo spent $1.28b to build a state-of-the-art, full-size, full-size truck plant in Texas– just as the pickup market was starting to tank. The new state-of-the-art factory can crank-out 300k restyled Tundras a year. As production began, the Japanese automaker set a relatively low (for trucks) sales goal of 200k Tundras for the first year. They just fell short, in spite of Detroit-level incentives. Then, with the truck-based SUV market softer than Sponge Bob at bath time, Toyota's launched the redesigned Sequoia. So now Automotive News [sub] reports that they're cutting production of both vehicles. ToMoCo won't reveal the extent of the cutback, but they say they'll throttle back production rather than laying off workers. You have to wonder if and when Toyota may admit defeat, move Tundra production back to Indiana and convert the San Antonio plant to Camry, Corolla or even Prius production. ©2008 ttac.com

For whatever reason (to please Hannibal Lector fans?), Ford's product planners have decided to produce an upmarket version of the new Flex. Ford spokesman Mark Schirmer told the Detroit News that Ford "is actively pursuing a luxury crossover for Lincoln." By offering a new vehicle based on the so-not-a-minivan Flex, plus discontinuing the Mark LT pickup, The Blue Oval Boyz hope to "refocus the Lincoln brand and make it a serious contender again in the luxury space." The MOU812 is based on the whale baleen-snouted Lincoln MKT concept unveiled at the Detroit Auto Show. It's now due to hit the streets in 2009, bolstering sales and destroying what little brand equity Lincoln may have left. Oh, and no word on a Mercury variant, despite FoMoCo's promises not to leave Jill Wagner high and dry.

What do you do when you don't want to fight the bumper-to-bumper in the McLaren SLR? Gizmag suggests you take its smart fourtwo "tender." Borrowing from the yachting world, BRABUS is offering a package deal that consists of a tuned SLR (good for 211 mph) and an identically-painted and equipped BRABUS ULITMATE 112– a 112hp two-seater based on the latest smart fourtwo Cabrio– as a runabout. Both cars are painted white with lipstick-red interiors with aero packages with suspension and tire upgrades. The SLR goes 0-100kph (62mph) in 3.6 seconds, while the ULTIMATE 112 takes 9.5 seconds to achieve the same velocity. Both can be yours for a mere €699,000 ($1.1m). The line forms over there, somewhere.

First it was $30k. Then it became $40K-ish. Now, who knows? There's no way to guess how much GM will want for a Volt if when it finally hits the market in 2010. Bloomberg reports that Product Developer Supremo Bob Lutz is warning that "We are going to bake in a very substantial warranty cost for the battery in our overall pricing calculation. We need to be conservative, simply because it's the first time we've done anything like this." Maximum Bob gave no indication what that warranty cost would be,. With experts estimating that each Volt battery pack could cost as much as $10k, it won't be pocket change (except for GM's management). Between the warranty costs and the workarounds for power-sucking accessories, the Volt's guinea pigs first generation customers may find out it's no fun living on the bleeding edge.

Last November, GM Car Czar Bob Lutz shot off his mouth boldly predicted they'd have a Volt test mule on the streets when the Easter Bunny arrived. Now he says that ain't gonna happen. In an interview with Reuters, Maximum Bob now says they'll start road testing the Li-Ion battery packs in July, "slightly later than expected." (Ya think?) He also said they may not name their battery supplier of choice until the second half of the year. BUT… "That may also be a little bit longer now, as we need a better handle on who has the technological capability we need and who is going to have the production capability." That seems to be the mantra for the entire Volt program. Anyone want to place bets that December will become the new July in a couple of months?

Reuters reports Honda has published a driver's guide for women in Japan that includes info on, among other things, how to pump their own gas, how to safely transport the kids, how to park, and advice for aging female drivers. Honda says the pamphlet "erases all your fears about driving." When asked if this meant Honda thinks women are worse drivers than men, the company's PR flack replied "We don't think so. There are some specific cases of women drivers, and we focus on those cases." There are specific cases of men who drive like idiots too, but HoMoCo doesn't seemed all that bothered about that, now do they? It makes us wonder if Honda will be introducing an Accord La Femme.

American Axle (AA) and the United Auto Workers (UAW) are still talking– but only over the phone. Formal (as in FTF) negotiations ended on Monday. According to American Axle, that's when "the UAW sent its negotiators home." The UAW said they left the table because discussions were "still pretty much a one-way street [and] the company really hadn't changed their position at all." Talks are supposed to resume today, but a resolution is not expected. The Indianapolis Business Journal quotes labor law professor David Gregory, who reckons both the UAW and AA are in it for the long haul. "This has got the makings of a protracted strike. It's already a serious strike, but this could go into April." If that happens, GM will be in a world of hurt, as will a lot more of their other suppliers. It seems The General is using the strike to reduce bloated truck inventories, but the plan could backfire if either the UAW or AA refuse an eventual GM bailout. Watch this space.

In the latest installment of Tesla Motor's Mythbusters, the erstwhile EV maker's Director of Energy Storage Technologies says that Tesla's lithium-ion batteries are eco-friendly. That's because they're "manufactured in Japan, a country with very strict environmental laws." Kelty then lists all the nasty stuff their battery pack doesn't contain (leaving out dead kittens and powdered rhinoceros horn). In short, Tesla's Li-ion cells contain no toxic materials and "by law, could be disposed of by putting them in a landfill." Before that, Kelty recommends using the efficiency-challenged batteries "as a power source for off-grid backup or load leveling." Once the cells die, they'll be shipped off to Toxco's recycling plant in British Columbia. The copper cobalt will be sold for recovery, the slurry "sent off as non hazardous effluent for proper disposal" and the "fluff" (mostly plastic) "trucked back to the U.S. border and properly disposed" (in landfills). Kelty proudly points out that Tesla's disposal process "does not involve any smelters." He doesn't say how much smelting is needed to produce the battery pack but hey, we appreciate the info.

Last week, we reported GM CEO Rick Wagoner's bonanza: a $2.2m salary re-raise, 165,563 shares, 500k stock options and 75k restricted stock units. We now learn that Wagoner's heir apparent, newly-appointed COO and heir-apparent Fritz Henderson, received a 36.6 percent raise. That takes the former Beancounter-in-Chief to $1.8m per year (plus bonuses, unspecified stock options, pensions, cars for life, etc.). The Wall Street Journal reports that GM Car Czar Bob "California rules" Lutz also got his chance to shake the GM money tree. Lutz gets a 17.6 percent re-raise, taking him to $1.55m plus bonuses and stock options worth over $1m. GM would't say what other top executives will be financially blessed, but spokesmouth Tony Cervone claimed GM suits are paid "based on their performance." If that rankles, just think what these guys would have made if they hadn't sold the family silver, lost billions of dollars and sacrificed once valuable U.S. market share.

Back in the day, if you needed to *ahem* "borrow" a bit of gas from a neighbor, you stuck a rubber hose down the filler neck, sucked on it until you got a mouthful of gas, spat out the gas and siphoned whatever you needed into whatever container you had. Now that gas is on its way to $4/gallon, gas thefts are becoming more common. But what's an enterprising thief to do with locking gas caps or fuel doors? 9News out of Denver reports scrotes are drilling holes in the gas tanks to siphon out the liquid gold. They're targeting SUVs and other vehicles with a lot of ground clearance (and usually, huge gas tanks), leaving behind about $500 in damages above the cost of the gas they steal. Denver police are recommending owners put their cars inside garages if possible. And if not possible, the owners may want to take out additional fire insurance; it's only a matter of time before one of these mental midgets starts a fire and burns the vehicle (and possibly themselves) to the ground.

A few days back we asked "Does God Hate Chrysler?" We're beginning to think that was more than just a rhetorical question. Regardless of your theological beliefs, it's obvious Chrysler has pissed off someone on a higher plain of existence. Hot on the heels of broken equipment, bankrupt suppliers and assembly plant fires, a "mechanical problem" forced Chrysler to shut down their main office in Windsor, Ontario. Mlive doesn't identify the culprit, but they revealed that the utility company has cut off the building's water and power. Chrysler hasn't said how long it'll be before their Canadian HQ is back in operation. Farago thinks there may be a terrorist/disgruntled employee lurking behind the scenes. I'm thinking Bob Nardelli needs to hire an exorcist.

In February, lovers old and new turn their attention to matters of the heart. No 'bout a doubt it: automakers weren't feeling the love. Overall U.S. light vehicle sales dropped 6.3 percent in February and 5.3 percent for the year.  With precious few exceptions, sales were down across the board. And this time, the usually impervious foreign nameplates and transplants felt the pain along with their Detroit counterparts (although not quite as badly). Let's take a closer look at the love's labor lost.

Ford is finally addressing its bloated dealer network through a new program of store buyouts. Automotive News [sub] reports that FoMoCo's offering a one-time "go on take the money and run" deal to the 81 members of their dealer development program. Ford will refund the dealers' investment in their Ford or Lincoln-Mercury store– even if it's worth less than their original ante. In a letter to dealers, development program director Jamy Hall wrote that "Ford is taking this action in an effort to ensure a sustainable dealer development program." However, Ford's action is raising some eyebrows; the majority of participants in the program are minorities. One dealer said he will refuse the offer because "it's just targeted at minorities because they're low-hanging fruit." Ford rejects the suggestion. They also declined to say how many dealers of Ford's 309 minority-owned dealerships they expect to avail themselves of a "graceful exit" from the Ford franchise network.