• December sales might have been even weaker if not for a hefty slug of fleet deliveries at GM. GM’s overall sales were down 31%, which topped our forecast decline of 34% to 36%. But within that total, GM’s retail sales were down a sharp 41%, while fleet deliveries were about flat year-to-year. If GM’s fleet sales were down roughly in line with the industry average (mid-30% range) the SAAR [Seasonally Adjusted Annual Rate] would have been closer to 10.0 million, or perhaps 9.9 million, we estimate.

• The outlook for sales in 1Q09 is no brighter than the 2008 exit rate. Both Ford and GM suggested that sales could run in the 10 to 11 million range in the first part of 2009, with somewhat of a (stimulus-driven) recovery in the back half of the year (has a familiar ring, doesn’t it?).

• GM slashed its production plans throughout the rest of the world, with Europe now set to fall 44%, Latin America 34%,and Asia pacific 27%, versus 1Q08.

• At the end of December, we find Big 3 dealer stocks to be about 31% above normal, which is about where they ended November. The truck mix headed higher again in December, and combined with weak industry sales to leave cars about 75% overstocked. Light trucks were about 12% overstocked.

• We estimate Chrysler to be the most overstocked of the Big 3, with dealer stocks about 45% above normal. Trucks are about 80% overstocked, while cars are about 37% overstocked.

• Ford ended the month overstocked by about 22%, with passenger cars a sharp 83% above normal, and trucks about 2% below normal.

• GM was about 29% overstocked at the end of December, with cars 70% overstocked, and light trucks about 9% overstocked.

• A look at days’ supply of foreign brand vehicles also shows a severe overstocked situation. For example, Honda dealers had 96 days of car supply in December, up from 50 days in the year-ago month; Toyota had 94 days of car supply, up from 42 days a year ago; BMW had 57 days of car supply, up from 22 days in December 2007.

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When I read Autoblog’s post on the one-month delay to production of the new Camaro, I decided not to blog it. AB said a notice had been sent to Bow Tie dealers pinning the delay on their desire to assure quality control. I manually lowered my arched eyebrow and got on with the other business of the day. But now, scanning Automotive News [AN, sub], it seems that the delay isn’t quite as straight forward as I thought it wasn’t. “It’s due to a variety of factors that I’m not going to get into, but it’s nothing to be concerned about,” [GM spinmeister Terrance “I’m not a Dickens character”] Rhadigan said. “We’re still going to build every one we can, and we’re excited to get them out.” In a strange turn of events, AN fingers a previous flagged supplier “issue”– despite GM’s denial. “Automotive News reported in late December that GM is suing Cadence Innovation, a supplier of interior parts that is liquidating, to get machines and parts needed to make the Camaro. GM provided equipment to the supplier to make the Camaro parts, a standard industry practice. GM has said if it didn’t get the production equipment back by Jan. 12, the start of Camaro production would be delayed. Rhadigan said the postponement isn’t connected to the Cadence dispute.” So why mention it? Is AN beginning to lose patience with GM?

Two hours after President Bush announced he’d reversed his position– tapping into the Troubled Asset Relief Program (TARP)– to bailout Detroit, United Auto Workers boss Ron Gettelfinger announced his intention to get the incoming president to remove the wage parity provisions included in the deal. Why wait? Reuters reveals that “Legislation proposed on Friday to tighten the sweeping U.S. corporate bailout program omitted specific targets for labor concessions that were a key feature of last month’s Bush administration rescue of distressed automakers. A portion of the bill proposed by House Financial Services Committee Chairman Barney Frank sought to codify the auto bailout with terms, that with two exceptions, basically mirror those imposed by the White House when it extended $17.4 billion in emergency loans to General Motors Corp and Chrysler LLC.” Meanwhile, “Frank’s plan also seeks to formalize oversight of the auto bailout under a trustee or ‘car czar.'” Bottom line: no UAW haircut (a.k.a. business as usual) unless the Senate reinserts the original language. And a Big Stick wielder to make sure that GM and Chrysler realize Congress’ green dreams. I mean, return to profitability. Don’t I?

Kids rule, telecoms drool. In this case, AT&T figures pester power will entice car owners to stump-up $1299 and $28 a month for an in-car satellite TV system. That and installation charges for a roof-mounted antenna pod thingie that will do for automotive aerodynamics what the Olsen twins did for the food pyramid. AT&T calls the service “Cruisecast,” ignoring the obvious connection to the Al Pacino movie and lifestyle choice known as Cruising. And what’s with that satellite following the car? Anyway, “A final channel lineup is still being developed,” PC World reveals, quoting this morning’s press release. “But AT&T says it will include lots of family-friendly entertainment, including Disney Channel, Disney XD, Discovery Kids, Animal Planet, Nickelodeon, Cartoon Network Mobile, USA, COMEDY CENTRAL, MSNBC, CNN Mobile Live and CNBC.” I know what you’re thinking: HOW much? And if you’re geeky, you’ll wonder how AT&T TV can keep on keeping on when it’s out of sight of the company’s birds. All hail its “breakthrough buffering technology keeps the show going even when you’re under a tunnel or other line-of-site obstacle.” Just in case that doesn’t fly with car buyers/owners, Avis and Budget car will offer Cruisecast in some of its rental cars for $9 a day or $63 a week. Or you could just toss a couple of iPhones in back.

In invite the Best and Brightest to send me examples of big discounts on new cars for publication, from any brand. Send jpegs to robert.farago@thetruthaboutcars.com. BTW: I saw a TV ad today advertising Chevy Malibus for $18k. The fine print (which I barely caught): one owner cars. Desperate times.

The Truth About Cars: they’re hideously complicated devices that must be able to serve duty in every sort of meteorological condition. The controls required to help keep their owners comfortable in this huge and ever-changing range of temperatures and climatic conditions are subject to neglect, abuse and constant use. Not to mention simple human nature, which is simple, but not so easy to satisfy in any meaningful bio-mechanical way. So hats off to the designers, engineers and assembly workers who delivered unto us, the driving public, a sane, sensible way to control our own personal micro-climate. I present to you, gentle readers and humble auto industry-types, TTAC’s Top Ten HVAC controls 2009, with comments by our very own Best and Brightest. [Gallery below. Printed list and comments after the jump.]

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Despite the recent arrival of a Tahoe Hybrid (I’m on it), a Chevy Avalanche and whatever the Cadillac version of same is called in my daughters’ PC school parking lot, the death of the full-size SUV has been well-documented and publicized. Less well known: the mid-size SUV is even deaderer (sorry Andrew). Ward’s Dealer Business tells the tale: “SUV sales took a 39.3% plunge, going from 1.91 million units in 2007 to 1.16 million in 2008. Middle SUVs was the biggest segment loser, with sales sinking 45% in 2008. By comparison, midsize cross/utility vehicle sales were off 6.8%. ‘People are moving out of the midsize-SUV market completely and going to CUVs,’ says Matt Traylen, senior director for Automotive Lease Guide. ‘What people don’t want now is anything with ‘SUV’ in the name.'” Thank Got BMW called the honking great X5 and X6 “Sports Activity Vehicles.” And how’s this for a piercing glimpse into the obvious: “They don’t go up mountains or off-roading. They take their kids to school and go to the grocery store,” Matt says. “A lot of people are waking up and asking, ‘Why did I buy this vehicle?’” And then saying “Now what?”

From menno: “My Prius is now down to about 30 miles per gallon on E10 (real MPG, not on the computer – it’s showing 38.5 mpg). 130 miles on the trip meter and over 4 gallons used – you do the math. Just for the sake of comparison, before the loss of real gasoline, I was averaging 44 mpg (real calculations and on the car computer) in the winter, and about 50 in spring and fall, and 48 in the summer. This was with both the 2005 Prius and the 2008, over 48,000 miles on the 2005 and now having 21,000 miles on the 2008. Don’t know if the continuous E10 has made the difference between the computer MPG and calculated MPG, but there is essentially no point in having a Prius anymore. The Prius sucks ethanol tainted fuel like a drunk at a free bar. My wife’s (way) less expensive to buy, more comfortable, zoomier, roomier and nicer Sonata averages MPG in the low-mid 20’s in the winter, 26-27 in spring, summer and fall, and did 32.2 mpg on a 5000 mile trip on expressways and in mountains. As soon as gas prices hit $3.00 a gallon I’m putting the Prius up for sale. Recently, the last gas stations in the area stopped selling 100% gasoline (it was BP). The resulting MPG loss was immediate.” And he’s not the only one who’s turning his back on E10…

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Yes, it’s that time again. Time for the Paris – Dakar Rally (a.k.a. “the most dangerous race in the world”), where large trucks, cars and motorcycles drive as fast they possibly can across the African continent. Oops. Sorry. It’s the Dakar rally now, ’cause it’s taking place in South America, even though Dakar (Senegal) is, you know, in Africa. Last year, the race was cancelled due to “terrorist threats.” The fact that the race features a bunch of Europeans tear-assing across open territory– occasionally mowing down innocent bystanders (called “spectators” by race organizers)– might have a little something to do with it. About.com glibly reports that “A total of 48 deaths among competitors have been recorded since the rally began. Spectators have also been injured and killed either by competitors or their support vehicles.” In any case, the South American version has claimed its first victim: French motorcyclist Pascal Terry. The Canberra Times reports: “”Officially the result of the autopsy revealed that the French pilot Terry died of pulmonary edema… which produced cardio-respiratory failure,” Julio Acosta, chief of the department of operations of the La Pampa province police, said.” No word– yet– on any “spectator” ksi’s.

From: GM Dealership Employee Discount <GM_Dealership_Employee_Discount@email.generalmotors.bfi0.com>
Subject: A remarkable loyalty offer for GM owners
To: XXXXX@yahoo.com
Date: Wednesday, January 7, 2009, 6:19 PM

Loyalty works both ways.
To show how much we appreciate your continued business, we’re offering this special purchase opportunity — exclusively to our best customers:

Up to $3,000 Owner Loyalty Bonus Cash1 on almost every new GM vehicle now through February 2, 2009. You can combine your Owner Loyalty Bonus Cash with your GM Dealership Employee Discount2 and most current incentives, including special GMAC financing on select vehicles. So, if you or someone in your household owns or leases a 1999 or newer model year GM vehicle, now’s the perfect time to buy.

See the attached flyer to learn some surprising facts about today’s GM vehicles and for a full listing of the many models that are eligible for this offer.

To learn more, log on to gmded.com.

Don’t delay.
Hurry in to your GM Dealer before February 2, 2009, to take advantage of your Owner Loyalty Bonus Cash. Remember, this special offer can be combined with your dealership employee discount2 and most current incentives, including special GMAC financing on select vehicles.

GM has responded to yesterday’s story “revealing” that no one wants to buy the Saab brand. The fact that the denial is off the record [via AFP] tells you that either A) The General is involved in delicate, top-secret negotiation to transfer ownership of the Swedish near-luxury brand to a third party or B) they’re lying. The off-the-record comment from “one GM official familiar with the proceedings” smacks of B: “It’s still early in the process. It’s going to take some time.” Which is the one thing– well one of many things– that GM doesn’t have. Meanwhile, Chrysler is also involved in a smoke and mirrors campaign as part of its ongoing and increasingly incredible effort to convince the world that it’s an ongoing and credible commercial enterprise. Ahead of the don’t call it the Detroit Auto Show, Chrysler product development chief Frank Klegon is talking-up the possibility of building a car-based lifestyle truck. It’s a fiction so boneheaded that even The Detroit News was impolite enough to mention that GM had just abandoned said genre (G8 ST RIP), and that Honda’s Ridgeline is a flop. In fact, scribe Alisa Priddle does a yeoman’s job proving that Klegon is lost in space. “This is a segment where many automakers have recognized there isn’t enough volume for all of the players to invest in their own platform, and there is a lot of sharing going on.” And that’s as good as it gets…

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