I was delighted when I read CSJohnston's comment under the last Podcast intro. Responding to the question "What is a Ford?" he wrote "One could sum up Ford as 'honest.'" Well, exactly. Although plenty of members of our Best and Brightest have upbraided me for suggesting that car companies should not be devious, misleading or spin-obsessed, I am a firm believer that a business must earn its customers' trust. This they do by treating them with honesty, integrity and respect. When Chrysler installed Bob Nardelli at the head of Chrysler, I figured that was the end of that. Bob's cost-cutting at Home Depot was a cynical betrayal of his customers, who were left pressing buttons for attention, rather than turning to find a helpful staff member. By the same token, the chances of finding GM CEO Rick Wagoner alone and unannounced at a BPG dealer are only slightly higher than getting strike by lightening as you're fending off a shark whilst holding a winning lottery ticket. Ford CEO Alan Mulally strikes me as the most consumer-focused of the 2.8's helmsmen, but he's never said anything directly to Ford customers via the media. The truth will set you free, but first you've got to do the same. 

GM's June sales stats were on the catastrophic side of dire. But they would have been a lot worse if not for the automaker's end-of-the-month zero percent fire sale. So… July. Now what? This time Marketing Maven Mark LaNeve is going all Amway on us (minus the multi-level marketing). He's hoping the automaker's [remaining] workers will spread some octo-branded love to a family member, friend, casual acquaintance or anyone with a pulse, really. The Wall Street Journal reports that GM employees can give one employee discount away between now and the end of July. "During this challenging period for people across the country, there's no better time than to talk up our great products and give someone you know an additional incentive to buy GM," LaNeve's intercepted email opined. The current shitty challenging U.S. new car market is "the perfect opportunity to pass this on" an unnamed (what is it with the WSJ and anonymous sources?) GM spokesfolk added. Yes, OK, but HOW MUCH? Seems the Journal forgot to mention this little factoid. We reckon it's about three percent off dealer invoice. Anyone? Bueller? 

Just kidding. Toyota wouldn't say that, what with Motown's implosion about to force the transplants to paint themselves as nativists. But even if they aren't saying it, they're doing it. The Nikkan Kogyo [via Automotive News, sub] reports that the Japanese automaker is shifting non-Prius production out of its Tsutsumi plant to build as many gas – electric vehicles as they can (presumably without working their employees to death). No question: ToMoCo's going Hell for leather. Last year, they sold 281,300 Priora. With these changes, they'll be cranking-out at least 480k units. By the time a single example of GM's Hail Mary-shaped plug-in electric – gas hybrid hits the streets, Toyota will be building their fuel-sipper stateside. ToMoCo will have amped-up (so to speak) worldwide Priora production to 1m unit p.a. Whilst shunning the grammatical consensus on Prius pluratization established by TTAC's Best and Brightest, AN reports that Toyota built "320 Priuses in China last year." What's that all about? 

Thanks to politicians [bought and paid-for], The Big 2.8 are looking at a nice little earner courtesy of, well, you. The Detroit News provides the gory details. "The U.S. House passed a housing bill 272-152 late Wednesday that includes a provision allowing unprofitable companies to get credit for up to $30 million in capital investments. An earlier stimulus bill gave profitable companies $45 billion in depreciation credits for investments made during the year. Instead of the depreciation credits, unprofitable companies [that's Ford, GM and Chrysler] could accelerate R&D tax credits or alternative minimum credits in lieu of the depreciation provisions." In non-accountantant speak, The Big 2.8 get a $30m free ride for investing in their own biz, but not Toyondissan 'cause they're well-run companies. Meanwhile., Newstalk 1310 says Wisconsin is looking to claw some money BACK from The General, re: their Janesville Assembly Plant. "State leaders want to recoup about $8 million dollars of the grants given to GM a few years ago. They say the company is not maintaining required employment numbers. GM has eliminated hundreds of jobs in recent months. It plans to close the Janesville plant altogether by the end of 2010." 

But we've got to do it soon. Justin takes his New York bar exam on Tuesday and Wednesday, and our resident new car guy is no John F. Kennedy Jr. Fortunately for TTAC, the chances that Justin will hang out his shingle are about as high as a basil smoker (true story). In this job, I read hundreds of comments, dozens of articles and at least one porn site's fiction section per day. I can tell when a writer knows how to winkle-out the salient fact or dramatic moment that makes the story compelling. ("The western end of the beach has a 'certain' reputation. Nearly two miles from the access road it is the place where people go who want real peace and quiet, without interruptions.") It's an instinctive skill that Justin brings to this job. A skill shared by Frank, Eddy, John, the rest of the TTAC writing team and, of course, Lyle Lovett. When I began this website, I never thought I'd be spending most of my day polishing other writers' prose. But I got tell you guys, my hat's off to you. It's a privilege. 

Anyone who can't guess where The Gray Lady stands on any given issue simply isn't paying attention. But today's New York Times Op Ed– The Oil Man Cometh– is harder to follow than Eugene O'Neill's seminal work. First, predictably enough, scribe Timothy Egan salutes T. Boone Pickens' anti-drilling, anti-Bush/McCain stance. "The 80-year-old T. Boone Pickens says, in a $58 million campaign, is that we can’t drill our way to lower gas prices. By implication, anybody who tells you otherwise — including the fellow Texan he helped put in the White House — is a fraud." And then, Egan rips Pickens a new asshole. "But before T. Boone poses for his statue, he has to answer to his past. Pickens was the moneybags, to the tune of $3 million, behind the Swift Boat attacks that made Senator Kerry’s honorable service in Vietnam sound like Rambo tangled up in lies." And then, he loves him. "No doubt, the Pickens plan makes sense." And then he loves him not. Or something. "Winning the argument may depend on who has the bigger megaphone. Advantage Pickens. Which means advantage Obama. Unless, of course, McCain wants to Swift Boat him, and then he knows who to turn to." Oy.

According to a report in yesterday's Chicago Sun Times, the City Council issued 345,206 sweeper tickets in 2006. At $50 a pop. And despite the fact that Chicago is fast becoming the most surveillance-intensive city in the U.S., initiating a camera-fest to rival London's Big Brotherhood, the Council has approved plans to install cameras to automatically ticket parking scofflaws. "Every sweeper would be equipped with a pair of cameras — one to capture the image of the “illegally parked vehicle and its surroundings,” the other to take a clear picture of the license plate. Video evidence would be forwarded to the city’s Department of Revenue daily, then mailed to motorists along with the $50 tickets." Strangely, the paper's City Hall reporter seems as fixated on the presence of paper warning signs as the Council, rather than examining the civil rights issues involved. Anyway, Traffic Committee Chairman Pat O’Connor (40th) swears to God it's got nothing to do with raising more money for the City. "I truly don’t look at it so much as a revenue things as much as it will make people move their cars."  

And there you have it. The hit from Hell, sucking the life out of FoMoCo. Automotive News [sub] brings the noise. "In the financial report, Ford said that it took $8.0 billion in special charges to write off the value of troubled assets — including a $5.30 billion charge for Ford North America. The North American unit posted a $1.3 billion pre-tax loss in the quarter compared with a $270 million loss during the same period a year ago." If not for foreign ops… "Ford said it posted a pre-tax profit of $582 million in Europe during the quarter, up from $262 million. It also turned profits in Asia and South America." If not for Volvo… "The Volvo unit lost $120 million compared with a loss of $91 million a year ago." As promised, Ford announced the truck-related loss along with its plans to turn the not-so-supertanker- anymore around. [TTAC coverage continues.]. Meanwhile, according to Bloomberg, "Ford said it had $26.6 billion in automotive cash at the end of the quarter, down $10.8 billion from a year earlier." Chief Financial Officer Don LeClair is "confident'' Ford has enough liquidity. Sorry. "One time" expenses or no, there's no way Ford can sustain that kind of loss indefinitely. It's a race against the clock, and the clock is in the lead. 

Of The Big 2.8, there's no question that Ford has the best chance of emerging from America's Summer of Shiva, uh, intact. But that doesn't mean they will, or can– despite the Obama-like blessing bestowed upon the ailing American automaker by the mainstream automotive press. Tomorrow, The Blue Oval Boyz are taking a leaf out of GM's PR playbook. FoMoCo will announce its new new new turnaround plan on the same day that they reveal some shocking financial losses. To say the press is in the tank for Ford would be something of an understatement, as two of its heavy hitters have already praised Ford for its courage, perspicacity, common sense, speed and general good looks. Self-styled Autoextremist Peter DeLorenzo leads the charge. The big news here: Sweet Pete's finally using a typeface that doesn't make you want to do an Oedipus. But seriously, "Instead of doing a series of baby-step changes over the next three years, Ford will bring its 2012-2014 products forward to the 2010-2011 time frame in a blaze of models and configurations that will set the U.S. market – and its competitors – on its ear." Woo-hoo! While The Detroit News' Daniel Howes is a lot more cautious, his piece is generally supportive. "Ford is taking giant steps in the right direction," Howes pronounces, without waiting for a glimpse at the big picture. "At last."

A TTAC reader named Don has requested a semi-private audience with our Best and Brightest. Don wants to purchase a used BMW 3-Series. Here's Don's dilemma: "I'm looking for a 2003 to 2008 model four door. I am replacing a 1994 Lexus SC400 and I want to experience BMW's great handling and road feel. 80% of the time I will be driving alone or with 1 passanger, but 20% of the time I will have my wife and some or all of my 3 kids along with me. I am undecided as to an automatic or a stick shift. My main priority is handling and feel and I am hoping for good reliability (are BMW's reliable?). Power, speed, and fast acceleration are not that important to me. Is there a superior model year in my range (I think that a body style/size change took place around 2006) or have the characteristics that I am looking for slowly evolved and improved each year?" Feel free to think laterally here, lady and gentlemen. But remember: most of the time people buy what they want to buy regardless of anyone's advice. Or, as my beloved wife reminds me (to no avail, obviously), no one ever got into trouble by nodding their head. At least not straight away.

Our contacts at Ford tell us there's big trouble brewing for The Blue Oval Boys. Two independent sources report that FoMoCo is ceasing production of the fresh-out-of-the-box Flex in their Oakville, Ontario plant. Apparently, the factory has built some 13k xB-shaped CUVs since production began on June 3– and sold [a lot] less than a thousand. Our correspondent tells us "the 500 additional employees that they were hiring for a third shift have been canceled… The CAW [Canadian Autoworkers Union] is not too pleased." If true, Ford's beancounters will share their dismay; the automaker spent over $1b converting Oakville to, wait for it, flexible manufacturing. While we seek further confirmation, a TTAC tipster working at a supplier for the Ford Edge (also made in Oakville) says dropping sales are leading to a severe cutback. "Our schedulers are trying to get some hard numbers so they can work out our shifts." You want hard numbers? Although Edge sales are up 16.8 percent year-to-date, they fell off a cliff in June, down 19.9 percent. The same fate befell the Lincoln MKX (the Edge's twin under the skin), up 4.2 percent year-to-date, down a whopping 34 percent in June. We will keep you up-to-date with new info as we receive it. One thing is for sure: when Ford reports its financials on Thursday, there will be Hell to pay. [thanks to our sources]

Survey takers Greenberg, Quinlan, Rosner Research recently quizzed 800 registered voters about corn juice. They discovered the majority either favored or strongly favored "continuing to increase the use of ethanol, a renewable source of energy, in our nation's fuel supply." Hold on there, what's with the little caveat about "a renewable source of energy?" What would the results have been if they'd left that little gem out? Did the fact the The Renewable Fuels Association paid for this research have anything to do with the wording? Of course not. Anyway, "By a 71 to 17 percent margin, voters believe the rising cost of oil and gas is the primary reason food prices have been going up, rather than blaming the rising use of corn-based ethanol." Key word: "primary." The question asks what respondent blame "the most" for rising food prices. Eight percent blamed ethanol above increased demand in China and India and severe weather. And here's the kicker:  21 percent of those surveyed said they were less likely to support a candidate for president who supports ethanol, "a renewable source of energy." Go figure. 

Yesterday's autoblogosphere was all abuzz with the Camaro reveal. We meant to cover it, we really did. And we will, with the same sense of urgency GM's shown in this interminable ponycar hypefest. Is it us, or are you, our Best and Brightest sharing a sense of ennui with a car that STILL won't be available until NEXT SPRING? Anyway, from my POV, the story here is that GM is touting the new Camaro's fuel economy. "We'll be promoting the fuel economy story very much," Ed Peper, vice president of Chevrolet, told Automotive News [sub]. "We are 2 or 3 mpg ahead of the competition." Right. So someone contemplating a Mustang, Challenger or Camaro will make their final choice based on fuel economy. Sure, I believe that. "Peper said the V-6 version will get an estimated 26 mpg, while the V-8 version will get an estimated 23 mpg. The V-6 will get 304 hp, while the V-8 will get 422 hp. 'And we are still working on it,' Peper said. He also hinted that a turbo 4-cylinder version could be in the works." So that's that then, yes? We're done here? "GM will disclose a price once the vehicle is closer to production, but Peper said the Camaro will be the 'best value in the sports car segment.'" As for volumes, Camaro product manager Cheryl Pilcher promised "we will build as many as we can sell." Or more!

Nestled in a New York Times article about Ford's fight for survival– switching production to small cars, building world cars, reporting epic losses on Thursday, yada, yada, yada– comes news that FoMoCo is NOT killing their Mercury brand. The Gray Lady's head automotive cheerleader cites "people, who spoke on the condition that they not be quoted by name because of the timing of the official announcement on Thursday" as saying The Blue Oval Boys will make the brand "an integral part of its new small-car strategy." Well, my mind is boggling. But not Bill Vlasic's, a reporter who feels compelled to not add a damn thing to that revelation, other than "the company will keep the Mercury brand and use it as another distribution channel for small cars." Which is the same thing, only later. The rest of the article is padded with a potted history of FoMoCo's "troubles," with the usual Vlasic Motown-thrown bone. John Wolkonowicz, an auto industry analyst with the forecasting firm Global Insight, tells Bill "“It’s hard to blame Ford for building vehicles that consumers wanted to buy." 

In an email to the troops [obtained by The Detroit News], Chrysler CEO Bob Nardelli's denying The Wall Street Journal report that ChryCo's re-fi of $30b of short-term, car-loan-backed debt may not go down. If that happens– I mean, doesn't happen– Chrysler dealers will find themselves in that special place where they have no attractive deals to offer on their unattractive vehicles. Nardelli said pay no attention to that banker behind that curtain. "As is customary for many auto finance companies, this renewal process takes place every year. We will continue to offer competitive financing and lease options for our customers and dealers." A dealer worries. "We knew something was going on with Chrysler Financial, but we didn't know what," reveals Alan Helfman, owner of Rivers Oaks Chrysler Jeep in Houston. "It's a big-time concern, because there is a copious amount of deals that I can't get done today that last year I could make a phone call and they'd be willing to work with us." Perspective people! "If the demand for your products is there," says George Magliano, automotive analyst with Global Insight Inc. "You don't have to worry as much about offering a great deal." Which is exactly why Helfman and his fellow store owners are scared to death.