Three GM truck plants will shut down around midnight tonight because of the strike at American Axle. Automotive News [AN; sub] reports about 9,500 workers at the Fort Wayne, Flint and Oshawa plants will be idled, in addition to the 2,500 workers who went home from the Pontiac assembly plant earlier this week. GM wouldn't comment on whether or when the pickup plant in Silao, Mexico would shut down. They project the plant at Arlington, Texas will continue production until mid-March. Arlington builds Suburbans, Tahoes, Yukons and Escalades; the other plants build Silverados and Sierras. With inventories well in excess of a 100-day supply for all these models, GM isn't sweating it. Yet.

Back in the day, Toyota used local businessmen to find dealers and deal with local politics. ToMoCo eventually bought its distributors, save Southeast Toyota in Florida and Gulf States Toyota in Houstonm (who still control prices, model mix and availability in 10 states). In the '90s, Southeast shelled-out more than $100m to dealers who claimed the distributor was forcing them out of business. CNNMoney reports that Gulf States is now under the gun for "improperly encouraging" executives from a large dealer group to leave their company and buy a lucrative dealership in Dallas. Toyota continues to defend its distributors, claiming they "bring a culture of innovation, responsiveness and agility." What's more, consumer prices "are the same" or "even more competitive" than prices in regions where there are no distributors. If there's anyone who can give your perspective on dealing with a Toyota distributor, please contact us.

In a previous Wild Ass Rumor of the Day, we asked "GM wouldn't be stupid enough to try to pay all [Delphi's bankruptcy] debt, would they?" It was meant to be a rhetorical question. Dow Jones reports [via CNNMoney ] that The General is "exploring alternatives" that include "providing an additional significant portion of Delphi's exit financing" in their annual report filed yesterday. The filing also said they're willing to reduce their share of the cash distribution they could receive in the bankruptcy settlement and "and accept an equivalent amount of debt in the form of a first-lien note." The amount of this particular portion of GM's cash conflagration is not known. But it doesn't matter whether The General shells out more cash or goes deeper in debt– neither alternative bodes well for the GMs financial health or stability.

Two leasing companies are taking issue with Canada's restrictions on importing vehicles from the U.S. Globe and Mail reports Forunier Leasing and Canadian Auto Associates have filed a class-action lawsuit against Transport Canada and the Canada Border Services Agency alleging they're part of a conspiracy to keep vehicle prices high. BMW Canada, Mercedes-Benz Canada and Mercedes-Benz USA are also named in the suit. The leasing companies claim Canadian import requirements reduce competition and raise prices 20 to 35 percent above similar U.S. models. They also say government restrictions on importers add additional costs. M-B Canada had no comment. BMW Canada said they weren't aware of the lawsuit, which seeks damages in excess of $1b.

The nominations for the first annual Bob Lutz Award ("Lutzie") are closed, and boy do we have some doozies! We'll open the polls tomorrow morning for you to vote for the automotive executive who you think made the most outrageous, politically incorrect or just downright dumb statement. And to make it more interesting, not only will you get to vote for the person, but in the case of multiple nominations you'll also get to vote on what you think is the best (worst?) thing they said. The voting will run through 6PM EST Sunday, and we'll announce the winner Monday morning.

While not making draconian cuts like The Big 2.8, BMW is reducing their work force to lower their overheads. The Detroit Free Press reports that the Bavarian automaker is cutting an additional 5.6k jobs this year. That's in addition to the 2.5k positions they've already eliminated. By they time they're through showing workers the door, Bimmer will have trimmed 7.5 percent of their worldwide workforce. The move comes in response to Chief Executive Norbert Reithofer's commitment to increase the company's "rate of return" (which made the exec queasy and left the money men a lot less than impressed). Ernst Baumann, BMW's head of personnel, said the job reductions will end-up costing in the "three-digit million" euro range for severance pay, benefits and other expenses. He also warned that if the dollar continues to fall, more employees would get the old heave-ho.

The United Auto Workers (UAW) strike at American Axle is starting to take its toll. According to the Detroit Free Press, the axle shortage has caused GM to halt production at the end of the first shift at Pontiac Truck and Bus plant. The Pontiac plant makes Chevy Silverados and GMC Sierras; thanks to a healthy inventory (153-day supply of Silverados and 152-day supply of Sierras) and continued production through the month, there's plenty of product on dealer lots to see them through the next few weeks. However, as the strike shuts down other plants, other suppliers will start to shut down or cut back production to match the diminished demand. Although GM accounts for 80 percent of American Axle's business, they also supply axles for Dodge Ram pickups (122-day supply). No word on how the strike will affect Dodge's assembly plants. But the question of the day (for now) is this: with 25 percent of Detroit's large suppliers in or teetering on the brink of bankruptcy, will one (or more) of them kill the golden geese?

Hollywood has the Oscar. Nashville has the Grammy. Broadway has the Tony. And TTAC has the "Lutzie." The Lutzie is our award for the industry executive who made the most outlandish statement or statements, demonstrated a total disconnect with reality and/or inserted their pedal extremity firmly into their oral cavity with alarming regularity. We're looking to you for nominations, starting today. Tell us who you think is most deserving of the award and give us a quote that illustrates their worth in a comment below. We'll take nominations until 6 PM EST Wednesday and open the final voting on Friday. Voting will end 6 PM EST Sunday and we'll announce the winner Monday. And yes, GM Car Czar Maximum Bob Lutz is eligible. 

GM may soon be feeling some of Chrysler's pain over bankrupt suppliers. The CarConnection reports Cobasys, supplier of the NiMH batteries used in the light-hybrid Vue, Aura and Malibu and holder of "a key contract in the development of GM's much-anticipated plug-in hybrid, the Volt," is out of money. The battery maker lost more than $76m last year and expect to lose $82m this year. To make matters worse, the company's joint owners, Chevron and ECD, can't agree on the 2008 budget. So Cobays' operating budget is $92m short. Cobasys is now on GM's "distressed supplier list;" the General refuses to comment on the situation. In the meantime, GM has struck a deal to buy batteries for its two-mode hybrid trucks from a Panasonic – Toyota joint venture.  

While GM was wooing the greenies with their big PR event at the Oscars, Audi was busy thumbing their nose at The General. GM trotted out the Yukon Hybrids, Equinox Fuel Cells and "ethanol-compatible GMC Yukons" and put the concept Volt (that looks nothing like the eventual production model) on display to impress the easily-impressed. Audi, on the other hand, "chauffeured [nominees and winners] through the Audi VIP fleet of more than 55 exclusively equipped A8L W12's and Audi Q7's." The press release lists a number of stars who "selected Audi as their preferred mode of transportation for Oscar week." Not surprisingly, Ed Begley Jr. and George Clooney don't appear on that list.

According to The New York Times, GM has confidence that Cerberus will fix GMAC. GM CFO Fritz "What Me Worry?" Henderson played down Cerberus chairman Stephen Feinberg's recent warning that "things could get a lot worse" at the finance company. While acknowledging GMAC subprime mortgage market struggles (how could he not?), Fritz believes GMAC has the cash reserves to see them through the current crisis. More to the point, GM's Chief Beancounter says GMAC won't need additional cash from GM. In fact, "We expect that GMAC will turn a profit in 2008." (That's three years before Fritz' predicted return to profit for GM.) Fritz didn't comment on Standard & Poor's recently GMAC and ResCap downgrade, which lowered both to junk-bond status, raising their cost of borrowing. While the storm clouds gather over the troubled lender, GM is doing what they can to help GMAC return to profitability: continuing to offer zero percent financing on a number of vehicles. We'd appreciate a heads-up from our dealer readers as to whether or not they've tightened credit requirements for these killer deals…

Leave it to the Brits to take traffic surveillance to the next level. Worried that drivers may be getting away with violating the car share lane (carpool lane to us Yanks), Leeds is testing a new camera system that actually detects the blood and water content of human skin to determine how many occupants are in the vehicle. BBC reports the system, developed by researchers at Loughborough University, uses two wavelengths of infrared (IR) light and special algorithms to distinguish faces and count heads. If it finds more than one, it lets the car pass. If it detects only one occupant, it takes a photo of the license plate and records date, time and speed. Developers say it's accurate 90 percent of the time– and isn't fooled by large dogs, dummies or cosmetics. They didn't say if the system could be disabled by transmitting an IR signal back at it or if heat reflections from different color cars would affect its accuracy. Or what happens when there's a small child in a carrier in the back seat that may not be in the camera's line of vision. There seems to be several questions they need to address before they start using the system to prosecute solo drivers. But where there's dosh, there's development.

When American automakers want to cut costs on parts, they turn to China. When German automakers want cheaper parts, they turn to North America. Automotive News [sub] reports that German automakers are looking to buy more parts made in North America to "cope with the dollar-euro exchange rate." AN says the Germans are asking their suppliers if they can build sub-assemblies (e.g. seats) with parts bought in the "dollar-zone." That's a no-brainer for Mercedes and BMW, who assemble vehicles in North America. But the dollar – euro disparity is now so great that even Audi, who builds NA-spec models in Europe, are switching to American parts to cut costs. Does this mean we should start looking for the UAW label in German vehicles? Nope.

In spite of the way the United Auto Workers (UAW) rolled over and played dead compromised with The Big 2.8 during last year's contract talks, it isn't all sunshine and rainbows between labor and management in the auto industry. CNN Money reports that this morning, negotiations between the UAW and American Axle broke down over "major issues." American Axle produces parts for GM's full-size pickups and SUVs, so there hasn't been an overwhelming demand for their product over the past few years. Hence the parts maker's claim that their $70/hour labor costs are unsustainable. American Axle wants to cut their UAW wages to $27 to $35/hour– bringing them in line with other axle producers. Meanwhile, GM's plant in Oshawa, Ontario has about a three-day supply on axles on hand and American Axle has about a two-week supply stockpiled. So the strike won't have an immediate impact on GM's plants. However, as we've seen before, if they don't resolve the problem at this supplier STAT, it'll have a ripple effect at the truck plant that will resonate back down the supply pipelines to other suppliers.

According to USA Today, plug-in electric hybrid vehicles (PHEVs) like the Chevy Volt can actually increase air pollution in some areas. The executive director of the Environmental Law & Policy Center reckons  "plug-in hybrids are perhaps not good for all areas." Howard Learner explained that for "states that are heavily coal, that equation doesn't work out very well for the environment." With almost half of the nation's electricity coming from coal-fired plants, the Center equates running a PHEV in some areas to driving a coal-burning vehicle. The Natural Resources Defense Council said there's a "possibility for significant increases of soot and mercury" because of the increased demand on the plants, So a PHEV would produce 11 percent more greenhouse gas than a non-plug-in hybrid. A study by the Minnesota Pollution Control Agency found PHEVs could also increase the amount of sulfur dioxide, a key component of acid rain, and CO2. Charles Griffith of the Ecology Center in Michigan admits "It seems a little premature to think of it being a problem – but there are a lot of issues we should have been thinking of sooner," including the use of land to grow crops for ethanol fuel vs. for food. Since when does rational thinking have anything to do with federal regulations, the environment and energy independence?