For some reason, The New York Times op ed department reckons Mayor Bloomberg's campaign to reduce the number of New York City's free parking passes will help his/their campaign for an $8 per day congestion charge. Huh? First, that's a whole lot of people paying bupkis to bring their car into Manhattan (there may also be tens of thousands of counterfeit passes). People who wouldn't be happy paying $8 a day to the city government for the privilege of doing something they're doing day in, day out on the City's dime. Second, they're all government workers. Let me translate: union employees. No single group can kibosh a new government initiative faster than a public workers' union. If you think about it, the best way for Bloomberg to build support for the congestion charge would be to hand out MORE free parking passes. Oh, and to cut down on fraud, Bloomberg's created a new, centralized parking pass authority within the Police Department's Internal Affairs Bureau. Fair enough? Uh, well, that department currently accounts for 58k free parking passes.

In 1968, a book called The Peter Principle argued that large organizations promote employees past their proven abilities, until they reach their natural “level of incompetence.” As a remedy, Dr. Laurence J. Peter suggested a rigid corporate caste system. For example, a talented accountant could rise within his field to become the company’s The Chief Financial Officer (CFO). And that’s it. Promoting the successful beancounter to the head of the company risks evoking The Peter Principle, and threatens disaster. Or, in the case, of GM, creates it.

Since TTAC began, GM has never deigned to address or correct a single General Motors Death Watch. The automaker's PR department has also declined numerous invitations to post a guest editorial on this site. And there's never been a single "official" comment in the comments section by a single GM employee. Not one. And yet, of course, GM wants to be Web 2.0. We've already chronicled the half-assed attempt at e-glasnost known as gm.next.com. As the company is unwilling/unable to engage in anything remotely resembling open, honest and frank online dialogue with their critics and customers, it seems that they've shifted tack. While keeping his low profile, GM PR Supremo Steve "attitude is key to a successful career in public relations" Harris has launched a charm offensive with [relative to Edmunds, kbb, etc.] small bloggers and webslingers. And by charm offensive I mean, of course, payola. The General has taken to providing all-expenses-paid trips to the auto shows for small sites. Gaywheels.com went to Detroit on GM's dime (don't tell the AFA). Askpatty.com and automobilesdeluxe.blogspot.com are headed to the New York Auto Show at GM's expense. I'm sure there are plenty more. I call on all websites accepting GM's largesse to declare it in any and all copy generated at the show, and make sure it's included in their tax returns, and trust that they will do no such thing.

Watching Rick Wagoner is like listening to some weird ass fairy tale: the Emperor's New Car Company. Only no one's saying Wagoner's buck naked and GM isn't new, it's old. As my father says, the only thing worse than getting old is the alternative. GM under Wagoner's administration seems Hell bent on exploring the alternative. Did you know that GM's market cap has shrunk by two-thirds since Wagoner assumed control? Did you know that the only reason the American automaker isn't in worse shape is that Wagoner sold EVERYTHING? Wagoner knows that and more, 'cause he's an accountant. In fact, Wagoner was GM's Chief Financial Officer (CFO) before he ascended to the Chief Executive Officer (CEO) spot. And now he's chosen his CFO to be GM's new CEO; only he's calling Fritz the new COO, 'cause, well, Wagoner's still CEO. So here we have not one but TWO beancounters at the top of GM. Who've let a nutcase named Bob Lutz (winner of TTAC's Bob Lutz award) decide what kind of cars to build at a time when their North American market share is slipping, slipping, slipping… And let's be Frank here; the reason that the company is in such trouble is that this terrible triumvirate doesn't know how to build fully competitive cars. Or price them. Or brand them. Or advertise them Or… Doh! Anyway, as long as Wagoner's at the top of GM, you can be sure of one thing: someone somewhere will be cooking the books. 

OK, we're not just looking for the number of questionable E85 propaganda pronouncements in this video report on Autoblog founder Jason Calacanis' Mahalo Daily. We're also interested in the quality of your dissection (i.e. what they didn't say as well as what they did). Bonus points will be awarded for avoiding jargon and (of course) sarcasm. And yes, you can point out fascinating, non-E85-oriented details gleaned from the vid (music, dress, eyebrow work, attempts to avoid staring at certain biological bits, accents, etc.). There is no prize for your punditry per se, but Frank and I will choose the commentator who's the most infotaining and post their name underneath this text, in recognition of your (yes your) service to the cause of common sense environmentalism (the emphasis here on mental). We're talking major props from TTAC's Best and Brightest, as well. Take no prisoners. (As if.)

Despite serious and ongoing questions about the wisdom of London's Congestion Charge, and popular opposition to importing the scheme to the Big Apple, The New York Times will not let the damn thing go. Not with the deadline for $350m in federal funds (i.e. your tax money) about to expire. At least this time the Op Ed folk aren't claiming that the congestion charge is anything more than a cash grab. Well, at least not initially… "Mass Transit Needs Congestion Pricing" begins by revealing that The Metropolitan Transportation Authority says it will need– yes need– $29.5b over the next five years for "improvements." The paper then argues that "New York [mass transit] riders pay a considerably higher share of the cost of mass transit than riders in other cities. Fares for buses, subways and commuter rails increased again this week to help pay the M.T.A.’s operating costs. It is time for New York drivers to help carry the burden. Congestion pricing fees can produce significant and recurring new money for mass transit’s capital expenses." Oh and "Congestion pricing, of course, has many other virtues. New Yorkers would enjoy the health and economic benefits of less gridlock and tailpipe emissions — and faster commutes." Riiiiiight. Just like they do in London.  

On the same day that GM announced its disastrous February sales figures, GM's Board of Bystanders OK'ed an executive reshuffle. Those of us expecting the Board to clock the prospect of a fourth year of declining sales, profits and U.S. market share, and then defenestrate GM CEO Rick Wagoner (to float away on his golden parachute) were surprised to discover the current CEO remained in situ. Meanwhile, Chief Financial Officer Fritz Henderson assumed the re-created post of Chief Operating Officer. While pundits aplenty saw this as a Henderson succession play, has Fritz already relieved Rick of command? The Wall Street Journal says "Speaking to reporters yesterday at the Geneva auto show, Mr. Wagoner outlined what his role will be in the auto maker's hierarchy, saying that he will focus on global growth, advanced technologies and environmental lobbying… Mr. Wagoner said he also hopes to at least double his amount of annual visits to China, a fast-growing new market where GM has become well-established. Visiting roughly twice a year in the past 'didn't feel right,' he said." If you ascribe to Ted Turner's Lead, Follow or Get Out of the Way philosophy, it's clear that Rick's now checking out any time he likes. But will he ever leave?

The flying car is The Concept That Will Not Die. And here's another version, the Milner AirCar, due to be introduced at the New York Auto Show later this month. There's absolutely no reason why cars can't fly, or why airplanes can't drive down a road. All it takes is wings and a propeller in the first case, and folding or removing those wings plus something to drive the road wheels in the second. Robert Fulton (grandson of the same-named dude who built the first practical steamship) did it quite well in the late 1940s. His cute little Fulton Airphibians flew lots and drove plenty back in those halcyon post-World War II days, when returning vets dreamed of a helicopter in every garage and Cessna was advertising its airplanes as being so simple to fly that you could "drive it up and drive it back down." But the current realities of satisfying both FAA and DOT regulations in the same vehicle on the one hand, and teaching a new generation of driver-pilots to deal with thunderstorms, crosswinds, icing, navigation and instrument flying when they can't even handle a half-inch of snow on a road on the other, give new meaning to the word insane.

I'm a little confused on The New York Times' position regarding states' rights. On one hand, it's down with California's desire to enact CO2 emissions regulations that trump national standards. On the other hand, when it comes to teen licensing, it asserts "What the country needs is a uniform set of rules, based on the soundest research. That is the best way to keep teenage drivers, and everyone who shares the roads with them, safer." The Old Gray Lady argues that "Congress flexed its muscle in the mid-1980s and pressed states to adopt a minimum drinking age of 21. More recently, it did so to pass tougher drunken driving laws. The country’s highways are safer for those efforts. Congress now needs to do the same for teenage driving." To that end, the paper supports Senator Chris Dodd's proposal to withhold federal highway funds from states that refuse to set the minimum driving age at 16 and adopt graduated licensing for 16- and 17-year-olds (including nighttime and passenger restrictions). While the Connecticut Senator is prepared to run roughshod over states' rights in this issue, representatives from more rural regions may make that effort politically problematic. 

Credit where credit's due. When I told our ME Frank Williams we needed a second podcast to cover the blog posts that Justin and I missed, he suggested we have a rotating guest commentator. (Not literally, of course.) While other TTAC writers and industry celebs will get their turn to share their dulcet tones and intellectual perspective on the day's news, I thought I'd start with ex-Chrysler PR flack Jason Vines. When Vines was spinning for ChryCo, he had well-earned reputation for a confrontational style and, uh, that's about it. (What more do you need anyway?) Now that the ailing automaker has put PR under HR (that's Human Relations for our non-cubicle-dwelling audience) and Vines has moved on to Compuware, I wanted to find out if he'd mellowed. You be the judge. 

While GM's Board of Bystanders was busy congratulating GM CEO Rick Wagoner and CFO (now COO) Fritz Henderson for the company's "tremendous progress," its suppliers were busy suspending ops. Automotive News [sub] reports that the American Axle strike that has idled six soon-to-be-seven GM plants is taking it toll throughout GM's supply chain. "Lear Corp., the seating supplier to GM's light trucks, has laid off 700 employees and idled one plant, spokesman Mel Stephens said. 'Where GM production is down, we are down,' said Stephens. He said four more plants are operating at reduced speed and more closings are expected." Interior supplier (and Chrysler suitor) Magna International says it's "adjusted its production schedules." The plant closures' ripple effect on other suppliers is sure to spread quickly and widely. As of this writing, no new negotiations between American Axle and its United Auto Workers members are scheduled. Even if the strike was resolved today, restarting production would be an expensive and time-consuming process, that GM and its other suppliers can ill-afford.

Asked about the American Axle strike, GM Marketing Maven Mark LaNeve said "I don't know how long this thing is supposed to last. It's not a threat to our daily business. If it persists for a long time it could be." Yes, that's factually accurate. But it sure sounds like LaNeve couldn't give a shit. It's a far cry from something along the lines of, "We deeply regret this disruption at one of GM's trusted, longtime suppliers. For the sake of our employees and customers, we're hope to see a speedy and amicable resolution to this dispute." And at almost the exact same moment that LaNeve was poo-poohing an industrial action that's hurting GM's other suppliers, Toyota was handing out its 2007 Top Supplier Awards. "The awards were presented at Toyota's Annual Business Meeting and Awards Ceremony at the Northern Kentucky Convention Center, bringing together approximately 500 North American suppliers. Toyota hosts this annual event to communicate objectives for the current year, recognize top supplier performance for the prior year and enhance relationships… Suppliers' commitment to continuous improvement is key to achieving Toyota's long term focus on quality and value." 

Reuters reports that the strike at American Axle is forcing General Motors to idle production at two more plants: Moraine, Ohio (Chevrolet Trailblazer and GMC Envoy) and the AMC General plant in Mishawaka, Indiana (Hummer H2). This brings the total number of off-line production facilities to six, including the four factories that produce the GMC Sierra and Chevrolet Silverado pickup trucks. Job-wise, "13,700 GM workers, or almost 20 percent of its blue-collar work force, could be laid off this week." Next in the firing line: Yukatahoeburbelade production in Arlington, Texas and Janesville, Wisconsin. GM is down-playing the strike's effects on its bottom line. Marketing maven Mark LaNeve painted the problem as a convenient way to keep inventories low– in the face of February's 20 percent decline in truck sales. But GM [still] depends on the big rigs for the lion's share of its profits. If the strike stretches on, if truck inventories sink below severely diminished demand, the drain on GM's cash flow will be nothing short of catastrophic.

Chrysler's 14 percent February sales drop was, in and of itself, a staggering hit. But Automotive News [sub] reports that this decline occurred in the face of an aggressive campaign of profit-killing consumer incentives. In February, ChryCo "led" the market in incentives, kicking-up the deals by five percent to an average of $3,579 a vehicle. We're talking zero percent interest for 72 months on most remaining 2007 models and zero percent financing for 62 months on select 2008 models. Heading into March, the automaker is following the Churchillian advise: "When going through Hell, keep going." Chrysler is upping incentives by another five percent this month, and loading-up the special deals: a free Hemi upgrade for Ram buyers, a free tank of gasoline, a $500 rebate to U.S. military personnel (on top of any other incentives) and (ironically enough given the Plastech debacle) a $500 rebate to employees of companies that supply Chrysler components. Meanwhile, the automaker reported Chrysler Sebring sales soared by 92.5 percent in February, while Dodge Avenger sales rose 59.6 percent. Which makes us discount Chrysler's assertion that it cut back on rental fleet sales, and leaves us wondering: where would their numbers be without fleet sales?

When contemplating the full horror of February's sales stats, the key metric to keep in mind is -6.3 percent. That number represent the overall decline in new car sales for the month, relative to '07. Automotive News [AN, sub] reports that Chrysler was the biggest loser in this declining market, registering a 14 percent February sales drop. Truck sales, upon which ChryCo's fortunes (or lack thereof) depend, sank 22 percent. The situation over at GM, is equally dire. Sales for the month dropped by 12.9 percent. Both automakers responded to the news with characteristic bravado/denial. GM Marketing Maven Mark LaNeve told analysts it's everybody's problem ("Toyota, Ford, all had a difficult month") and blamed the media ("I personally believe that this discussion of a recession hurts consumer confidence"). Chrysler's executive vice president of North American sales said the sun will come out tomorrow. While predicting double digit declines for every month for the rest of the year (!), Steven Landry said "We know there will be an upside. If it is March we want to be ready." Yes, well, if sales at GM and Chrysler continue to crater at this pace, both carmakers' cash conflagration will force them to file. It's simply a question of who'll file first.