If there's anyone left who still thinks hybrid cars are just a fad, you need to rethink: the Prius was one of America's best-selling vehicles in 2007. That's vehicles, not just hybrids. Toyota sold 181,221 of the gas-electric hatchbacks. That's more than the entire Acura or Mercury lineups, and the model was nipping on all of Buick's heels. The Prius also outsold the Chevrolet Tahoe, the Toyota Tacoma, the Honda Odyssey, every Jeep, every Chrysler, every Dodge (except Ram) and every Ford but the F-series. No wonder Maximum Bob is trying to jump onto the hybrid bandwagon so fast, after pooh-poohing hybrids for so long. Only problem is that train left the station a long time ago, GM and Co. will have to run mighty fast to catch it.

Think your morning rush-hour commute sucks? Consider the New York Times' description of someone learning to drive in New Delhi:

Amid a cacophony of horns, a blood-red sport utility vehicle weaved between cars, passing Mr. Sharma within a razor's edge on the right. A school bus snuggled close up on his left. No one seemed to care about traffic lanes. Cars bounced in and out of crater-size potholes… Sharing the road with him were a bicyclist with three cooking-gas cylinders strapped to the back of his bike, a pushcart vendor plying guavas, a cycle rickshaw loaded with a photocopy machine (rickshaws often being the preferred mode of delivery for modern appliances)… At one point, a car careered down the wrong side of the road… At least this morning there was no elephant chewing bamboo in the fast lane, as there sometimes is.

As ultra-cheap vehicles allow more and more Indians– many of whom have never driven a car– to take to the road, traffic experts expect the situation to get much worse. And with a driving test that consists of turning on the ignition and driving in a wide circle, you gotta believe they're right.

VW marketed the Beetle to baby boomers bent on blinging their Bug (or whatever they called it back in the day). MINI and Scion found considerable success with the same concept, aimed at Gen Y. Now Tata Motors want to encourage whatever generation is next (Z? Back to A?) personalize the cheapest car in the world. On the freshly-launched Nano's freshly-launched web site, you can play with your Tata and add all kinds of dress-up gear (sorry, no bra available yet). Want racing stripes, fancy wheels or custom seat covers (sorry, no sacred cow spot patterns available)? They're just a mouse click away. Tata doesn't 't say what all this personalization will cost, but it can't be that much. I mean, who's gonna buy a disposable car then double its price with accessories? The bad part: no matter what colors or toys you add to the Nano, it still looks like a bloated Isetta. And it's probably just about as safe– though a LOT safer than four people on a moped.

A $25,000 Aveo? Not quite, but BusinessWeek (BW) says GM is considering building what they're calling the "micro-premium car," aimed at the MINI, BMW 1-series and Audi A3 market. They have two problems to overcome before they enter that brave new world. First, they have to find a suitable platform, something a bit more upscale than the Daewoo-engineered hardware now used for their smallest cars. Second, they have to figure out where it fits in their muddled marketing model. Cadillac is out. "Sources" told BW they want to "preserve the brand's image for big, high-powered cars." So where do the BLS and the even smaller Alpha-platform model planned for 2011 fit into that image? Anyway, Chevy's not a contender because no one would pay that much for a small Chevy. They're reportedly considering Buick, Saab or Saturn. And what do they think the chances are of anyone buying such a vehicle from a GM dealer? BW states, "GM has discovered that Gen Y's buyers don't hold a grudge against domestic brands the way Generation X and some baby boomers do… if it can make a small car that is both fuel-efficient and has real cachet, they could make inroads with a generation that is fast growing into its car-buying years." That's a pretty lofty goal; now let's see if they can overcome a long and ignoble history of botched small-car projects.

As you'd expect, Texas is America's largest market for full-sized pickup trucks. While pickup truck sales fell 14 percent nationally over the past four years, Bloomberg reports that they rose 5.2 percent in the Lone Star State. GM, Ford and Dodge aren't exactly celebrating, though. In 2007, Toyota's piece of that pie grew 79 percent, while the so-called domestics' slice dropped by five percent. Even worse, Dallas Ford dealer Sam Pack says a lot of those Tundra sales are conquest sales, "coming from traditionally Ford, Chevrolet and Dodge" buyers. While the raw numbers still favor The Big 2.8, Tundra's share of the Texas market rose from 4.7 to 8.4 percent last year. To git 'er done, Toyota put $6.4k worth of incentives on the hood, putting the Texas-built Tundra in the middle of the pack (Ford $6.6k, Chrysler $6.47k and GM $6k). As the pickup truck market shrinks even more in 2008, you can bet Toyota will continue its slow but steady incursion into the domestics' last redoubt. And watch those profit margins shrink.

What do old transmission parts, license plates and inner tubes have in common? Other than being set dressing for Sanford and Son, they're the latest in chichi home and fashion accessories. Wall Street Journal reports that several artists and designers are raiding the junkyards and landfills to make, among other things, purses from inner tubes, lamps from transmission gears and jewelry from old license plates. The benefit, according to WSJ's Elva Ramirez, is "feel-good points for reducing landfills one tire and gear-shift cog at a time." So what's next– a set of bookends made from a pair of smart cars?

Japanese motor vehicle sales fell 7.6 percent in 2007; Toyota was down 6.2 percent. Still, Bloomberg reports that the Toyota Corolla managed to retain its five-year standing as Japan's best-selling passenger car (excluding minicars). Corolla sales increased by 2.7 percent last year, almost 150K units found new homes. The Toyota Schvitz… er… Vitz (a.k.a. Yaris) was Japan's second-best-selling car, clocking over 121k sales (up 3.2 percent). Toyota better be careful, though– Honda's having a Fit to unseat them. The redesigned Fit went on sale in October and became Japan's best-seller in December (again, excluding minicars). The fit outran the Corolla by a margin of almost two to one. That's a 144.1 percent increase over December 2006. The Fit's annual sales rose by 14.5 percent, scooping third in overall sales. If you don't exclude minicars, Suzuki reigned supreme in 2007. The brand sold over 225k Wagon R kei cars. Now if they'd just pop a Hayabusa engine into a few of them and send them our way…

Ironically enough, Jung observed "there is no scientific test that would prove the discrepancy between perception and reality." Scanning the results of Consumer Reports (CR) automotive brand perception survey, Toyota execs must be muttering "thank God for that," while GM shouts "See? Told ya!" The CR survey evaluates how American consumers perceive car companies in seven key areas: safety, quality, value, performance, environmental friendliness, design and innovation. Toyota ranked first in overall brand perception, racking-up a score of 189. Honda snagged second place, scoring 146. Ford was the highest ranked American brand, placing third with 112 points. While Chevrolet and GMC made the "best" list, Buick was amongst Audi (!) and Acura at the bottom of the league table. Here are the winning brands in the seven categories (listed in order of importance according to respondents):

Safety – Volvo
Quality – Toyota
Value – Honda
Performance – BMW
Green – Toyota
Design/Style – Mercedes
Technology Innovation – Toyota

(For an explanation of CR's methodology, see the bottom of the linked page below.)

Thinking about taking a road trip this year? Not so fast Bucko! No, really. Not so fast– especially if you're going to be traveling the I-95 corridor in the eastern U.S. Forbes has compiled a list of the ten most expensive states for speeding tickets, and half of them are along I-95. Virginia, the only newcomer to the list, jumps directly to the top. While NHTSA says the national median for a first offender is about $200, lead-footed drivers in the Old Dominion State can be hit with an incredible $1,350 fine for their first offense, thanks to a $1,050 surcharge added last year. The most expensive places to get stopped for speeding and their maximum fine for the first offense are:

Virginia – $1,350
Georgia – $1,000
Illinois – $1,000
Nevada – $1,000
New Hampshire – $1,000
North Carolina – $1,000
Utah – $750
Oregon – $600
Kansas – $500
Maryland – $500

Will they or won't they sell it by 2010? It seems every day there's another version of when Chevrolet's plug-in electric – gas hybrid Volt will hit the streets. In March, GM Car Czar Maximum Bob Lutz said GM would have a running prototype by the end of 2007. The septuagenarian also said The General had "an internal target of production in 2010." Last month, Lutz said, "well, maybe not." This month, GM CEO Rick Wagoner said, "well, maybe not." The very next day, Bob Lutz said "oh yes, we will." Aware that GM's served-up more waffles than IHOP, Autobloggreen wants to set the record straight. "When a product program is still three or more years from production and contains technology that may or may not work, [the chairman] has to equivocate." Why "even the outspoken Lutz has never actually said that GM 'will build' the Volt by the end of 2010." So, never mind Maximum Bob's November promise at the LA Auto Show that GM would have the Volt on the road by November 2010. In conclusion, Autobloggreen tells Volt watchers "Depending on what happens between now and then [the end of the decade], the Volt will be produced 'on time' or not, but you won't hear it officially until much, much closer to that time." And there you have it (or not): we'll see the Chevrolet plug-in gas – electric Volt in some form some day. Eventually. Maybe. Welcome to the Volt Birth Watch!

When you're stuck sucking hind titty, you take whatever morsels drop your way. With Ford's U.S. market share evaporating like dog pee on a hot sidewalk, the Blue Oval Boyz are proud of each and every obscure award they receive. And so… Fox Business reports FoMoCo has been named the "Pet Friendliest Automaker" for 2008. DogCatRadio.com (DCR) gave Ford the nodding dog for its "wide range of models that offer safety, comfort and easy entry access for pets." As part of its evaluative process, DCR analyzed an undetermined number of vehicles' economy, price and (no, I didn't make this up) "creature comforts." What vehicle wowed the pet patrol? The so-beneath-the-consumer-radar-it-Hertz Taurus X. "We feel the Taurus X is not too big, not too small," DCR CEO Adrian Martenez explained, Goldilocks-wise. "It handles well, has plenty of power, great visibility all around and offers four-legged passengers as well as their humans a comfortable ride." So pets prefer vehicles that emphasize ride comfort over handling. Who knew?

Any guy who's gone swimming in cold water can tell you, shrinkage is not a good thing. Yet even as Ford comes to grips with losing second place to Toyota, The Blue Oval Boyz say the automaker could shrink even more before they return to profitability (and start to pay off the principal on those gi-normous loans). FoMOCo CEO Big Al Mulally said his employer's market share could continue to drop as they seek to stabilize output to match demand (translation: cut production, close down plants, eliminate jobs). Mark "What Me Worry?" Fields thinks Lincoln can help pull the company out of its doldrums, citing a 15 percent increase in sales last year. Apparently, that's "the largest gain of any luxury brand in the U.S. market." Chief marketing director Jim Farley added Lincoln has a good future with younger buyers and ever-oh-so-PC "diversity customers." But what about poor, pitiful Mercury? Will it suffer the fate TTAC's Steven Lang predicted yesterday? Mulally tap-danced around that one. "We're committed to Mercury" but "we're continuing to review our portfolio. That's an ongoing assessment we continue to have, and should have." And if it does survive? Fields says it'll be the "smaller volume brand" in the Lincoln-Mercury portfolio. So as Ford shrinks, Mercury will shrink even more. And when something shrinks too much it just fades away…..

Information Week reports Hughes Telematics has developed an internet-connected in-car information system that allows owners to lock or unlock doors, run remote vehicle diagnostics. send music from PC to car and locate their mobile Playstation to within an eighth of an inch [our guess]– all from the comfort of their home computer! The HAL9000 DriveConnected system is scheduled to debut in selected 2010 Chrysler and Mercedes models. Initially, DriveDistracted will use the cell phone network to work its wizardry. By 2012, Hughes plans to deliver broadband connectivity via satellite. Users will set up the system through a web site. Voice controls will run the show in the vehicle, with voice responses providing information. One of the system's big selling points: "teen tracking." Yes, primary caregivers at cocktail parties will be able to use their iPhone to pinpoint the car's location at any given time (at least until their computer savvy teens figure out how to feed HAL false data). To avoid privacy issues, an in-dash indicator will signal when the vehicle's being tracked. Needless to say, DriveConnected will also provide OnStar-like safety and security services. Just make sure it can't see your lips move.

The U.S. isn't the only market where car sales have stumbled, tripped and hit their head on the coffee table. Japan Times reports that new vehicle sales in The Land of the Rising Sun sank to a 35-year low in 2007. The Japan Auto Dealer's Association recorded slightly fewer than 3.5m new vehicle sales.  Automobiles with engines larger than 660cc were down 7.6 percent from 2006, while sales of minicars (engines smaller than 660cc) fell 5.1 percent. Toyota took a huge hit on their home turf, dropping 6.2 percent for the year. Honda, Nissan and Mazda took managed to lose less. Analysts blame rising fuel prices, a shrinking population and a decline in wages. Just like GM and Ford (and to a lesser extent, Chrysler), foreign sales are buoying the car companies' bottom lines. Even they're doing relatively well, the current U.S. sales slowdown will take their toll on the Japanese corporate motherships. 

Santa left a lump of coal in the automakers' stockings this year. Even the usual Christmas sales failed to put presents under the tree. As the year drew to a close, new car and truck sales were down across the board, with carmakers jostling for the honor of doing less badly than the other guy. New Year's was a decidedly dour affair, with manufacturers clocking the housing downturn and the mortgage crisis and predicting either flat or "slightly lowered" sales in the year ahead. Translation: batten down the hatches; it's about to get rough. Ain't that the truth.