Toyota's not the only one questioning GM's logic in pushing for plug-in hybrid technology. Honda's CEO Takeo Fukui told the Wall Street Journal that plug-ins don't have enough environmental benefits to interest his company. In fact, GM's Hail Mary Chevy Volt makes little sense. In a news conference, Fukui characterized plug-in hybrids as "a battery electric vehicle equipped with an unnecessary fuel engine and fuel tank." He added that Honda could easily develop a plug-in hybrid but won't because "I don't think that would contribute to the global environment, to reduce [global warming gas] emissions." Yes but– Fukui hinted that Honda is developing a battery electric vehicle. "Assuming that we can come up with a really high-performing battery that we are working on currently, I think a battery electric vehicle [that uses such battery technology] would actually be a plus from an environmental point of view." Given Honda's engineering track record, GM and Toyota both better watch their backs.

Even as Chrysler workers consider rejecting the contract their union is shoving down their throats negotiated on their behalf, reports of a secret deal between the United Auto Workers (UAW) and Chrysler have emerged. Reuters says that the UAW VP General Holiefield is telling Local leaders that he's made a secret deal with Chrysler to keep certain U.S. plants open if they'll ratify the contract. One of the plants mentioned: Chrysler's enormous Sterling Heights, Michigan assembly plant. Curiously, Chrysler declines to comment on the mysterious agreement– which would virtually guarantee ratification of the current contract. The big question remains whether the membership trusts the union enough to believe it can deliver on a handshake deal that isn't written into their contract.

Even as Chrysler talks of cutting models, closing dealerships and ramming through a new contract with the United Auto Workers, their dealers claim they're hopeful about their future. This according to USA Today, whose reporter attended a no-holds-barred meeting in Las Vegas earlier this month between 75 percent of Chrysler's dealers and the automaker's top brass. Specifically, Chrysler CEO Robert Nardelli and Toyota renegades VP Jim Press and Marketing Maven Deborah Wahl Meyer (Tom LaSorda must have been busy with union negotiations) held an open mic Q&A session with the front line troops. Dealers says they came away feeling that, for the first time in years, someone at headquarters is listening to them. Chrysler's dealer council member John Schenden was ecstatic. "As a dealer body, we are more optimistic than we've been in the last 20 years." Reflecting his newfound confidence, Schenden recently bought land to expand his dealership. I guess he hasn't seen TTAC's TWAT nominations yet.

Bloomberg reports that GM outsold Toyota for the first nine months of this year, to remain the world's largest automaker. GM's strong showing overseas gave them a total of 7.06m sales, compared to Toyota's 7.05m. Both companies are seeking to ameliorate a slump in their home patch by expanding into emerging economies. GM's fastest growing markets in the third quarter: Latin America, Africa and the Middle East. The General showed double digit sales increases in these territories, along with solid gains in the Asian-Pacific region. Meanwhile, GM's North American sales sank 6.6 percent for the year. While ToMoCo's NA sales are increasing, the Japanese automaker's growth stateside has slowed over the past three months. Toyota expects to overtake GM for worldwide production this year, as GM cuts production of trucks and SUVs. In sum, GM projects total worldwide production will hit 9.285m vehicles in 2007. Toyota predicts they'll produce 9.34m units.

Standard and Poor's believes in giving credit where credit's due. General Motors doesn't qualify. According to the Detroit News, S&P has removed GM from its list of companies in line for a credit rating upgrade. The agency has decided that loaning money to the ailing automaker remains a risky venture, even with a new labor contract that GM says will save them billions of dollars. S&P still sees "serious challenges ahead" for the beleaguered company. ""We had to look at the economy and non-contract issues," demurred Analyst Bob Schultz. "Still, the most important factor is if they're using or generating cash. We still expect GM to be using cash in their North American operations." Schultz predicts weak U.S. auto sales will keep GM burning through its reserves, as it continues spending on restructuring without a significant increase in revenues. Even if GM's products suddenly find favor in the American markeplace, it's unlikely that S&P will upgrade GM for another six months to two years.

Just-Auto [sub] reports Honda's catching flack over hiring practices at their new Greensburg, Indiana factory. No, it has nothing to do with unions or affirmative action; this time it's the state's legislators who are whining. Honda wants to only hire workers who live within a 20-county area (about a one-hour drive) around the new plant. Representatives whose constituents were excluded from applying don't like "granting state incentives to companies that selective exclude certain Hoosiers from even applying for employment." A representative from the governor's office stated that in exchange for the incentives, they only asked that Honda hire state residents. She added that the state had no plans "to prescribe hiring practices to private companies." Even with the geographic restrictions, over 30K people applied online for 2K jobs. The new Honda plant is set to open in early '08 to build 200K Civics per year.

In the blog concerning the United Auto Workers' (UAW) efforts to force encourage their Locals leaders to sign the new, proposed contract with Chrysler, we asked if a reader could provide a copy of the letter from the union's central office to the front lines. And here it is. In the missive, UAW Chrysler VP and Director General Holiefield instructs Local leadership to sell the contract. "All appointed union representatives" must show their support by returning the document with their signatures. The number of lines provided indicate that the letter is intended to be circulated by the Local President and Bargaining Chair to all appointees under their purview. Since the Local president and Bargaining Chair decide who gets the union's plum appointments, and the International gives final approval, if your signature ain't on this letter, you ain't getting squat (at the very least). Could this be what Gettelfinger was talking about when he told the press after the Chrysler Council meeting last Monday that "we have a democratic union?"

Last month, BMW revealed some of their plans for the near future. One highly-touted model: the neither-fish-nor-foul Progressive Activity Sedan (PAS). The concept is supposed to blend the best features of a sedan, hatchback, station wagon, SUV, CUV, XUV, SAV, Mercedes CLS and whatever else they could toss in into one 5-series-sized vehicle. BMW says the design highlights "efficient packaging methods and intelligent functionalities" (kind of like the 1949 Kaiser Traveler). Up until now, propellerheads had to be satisfied with the usual camouflaged spy shots. As part of our renewed partnership with photochopper extraordinaire Andrei Avarvarii, TTAC is proud to present presents our informed speculation on the PAS' non-flame-surfaced glory. BMW's slated the model's introduction for 2010.

[For more images visit www.avarvarii.com]

I love the smell of desperation in the morning. Even as workers at the St. Louis plant decided Chrysler couldn't Ram a new contract down their throats, UAW officials are stepping up their efforts to rally support. The Wall Street Journal reports the UAW's leaders (those who haven't already come out against the new contract, that is) are telephoning their representatives looking for support for the contract in a lobbying effort that the union's chief bargainer, General Holiefield, described as "unusual" (i.e. urgent). Holiefield also sent a letter to local officials asking for their support as that the UAW feels the contract provides "gains and protections for all UAW Chrysler workers." If any of our readers have seen one of these letters or know what was discussed in those phone calls, we'd love to hear from you. We're dying to know what strongarm tactics incentives the UAW's offering for its members' support.

Kids love to play connect the dots. When the dots are numbered sequentially (with a few outlining details thrown in to keep 'em focused), it's easy to do. When the numbers are missing, it's hard to see anything more than random points on a page. And so it is with Chrysler, an American automaker that's generated enough bloggable news during the last six months to keep Google News-alerted surfers away from their designated job for hours at a time. Even though only Chrysler's new owners know their real game plan, there's been enough new "dots" to form a recognizable pattern. What it reveals is a company on the cusp of a major revolution.

When you're running in the back of the pack, it's almost impossible to take the lead. Detroit has learned this painful lesson in the small car market, but they're planning a compact comeback with spiffy new models like the Ford Focus, Holden Vauxhall Opel  Saturn Astra and … uh… can I get back to you on that? Even though the imported brands have been giving us high-quality small cars for years, Forbes reports Ford and GM research "shows that small-car buyers will no longer tolerate flimsy seats, cheap plastic dashboards, noisy engines and bumpy rides." (They must have finally driven a Honda.) This epiphany isn't lost on Saturn's general manager Jill Lajdziak who said, "People who go into a small car want expressive design and they want a level of refinement in the interior. We've got to make sure that our small cars are delivering what they want. They don't want to compromise." Ford CEO Alan Mulally admits his benefactors have a problem too: "It's a segment that we've been out of, so we need to have really good products in it. We missed a whole generation of Ford products. We knew the trucks and the SUVs, No. 1 in the world, but they grew up with Civics and Accords." That's all well and good, Al and Jill; the first step to curing a problem is admitting you have one. But when you're trying to hit a moving target, finally figuring out you need some ammo; you have to aim in front of it, not at it.

After the United Auto Workers (UAW) ratified their new contract with GM, the automaker's stock price soared to $40.06 per share. The Detroit Free Press now reports that GM's stock price fell nearly four percent on Tuesday, as Wall Street has begun re-considering the whole GM/UAW/VEBA thing. Morgan Stanley analyst Jonathan Steinmetz is having second thoughts about the wisdom of establishing The Mother of All Health Care Tax-Free Funds. "Funding terms appear somewhat less attractive than initially envisioned," Steinmetz prevaricated. "GM has settled a $47-billion liability for the equivalent of $37 billion, or about 78 cents on the dollar." Analyst Peter Nesvold from Bear Sterns says GM's UAW contract is potentially transformational… longer term. Meanwhile GM shares are at a potential peak and on the way down." 

Even as some UAW members are balking at the new Chrysler contract because it doesn't contain guarantees of jobs in the future, Walter P.'s namesake is looking at cutting out five models in the here and now. "A person familiar with the situation" told the Detroit Free Press as many as five models could be on the chopping block. The unnamed "company insider" indicated the Pacifica, Dakota, Durango, Commander, Compass and/or Sebring could be voted off the island by the end of the month. The Durango looks like a shoe-in, as the plant which builds it is slated for closure in 2009, and the Sebring may be given a complete makeover instead of facing the executioner's ax. At least Chrysler is facing a problem plaguing the auto industry– product overlap– head on. We can only hope Ford and GM are watching.

Just a few weeks after making a deal with the UAW to guarantee work at specific plants, GM is cutting one shift and laying off 767 workers at their Poletown assembly plant in Hamtramck, Michigan. It didn't take GM long to find the loophole in the agreement: the deal guarantees future work but doesn't say how many workers they'll use or how many shifts they'll run, either now or in the future. Currently the plant builds the Buick Lucerne and Cadillac DTS. In September, Buick averaged six sales per dealer while Caddy floggers averaged 14; so they don't need a lot of production capacity. The "future models" slated for Poletown include a new midsize Chevy sedan (isn't that what the Malibu is supposed to be?), a seven-passenger CUV (another one– just what GM needs) and the Chevy Volt (yeah, right… whenever). The laid-off workers can be used to fill other positions within GM as needed, according to the Detroit News.