I know it was cheeky of me. OK, I was being an asshole. But I am genuinely perturbed by media outlets who accept airfare, accommodation, food and booze (not to mention gas and insurance) from car manufacturers without declaring this financial contribution. So when I saw The Car Connection live blogging their Pontiac G8 test drive (General Motors Death Watch on the G8 tomorrow), I couldn't resist adding a comment challenging Mart Padgett to reveal GM's financial interest in the Pontiac review. Within five minutes, the comment was removed. I reposted, trying to be a bit more subtle (as you can imagine). Gone in sixty seconds. (TCC later removed TTAC info provider Michael Karesh's car-related comment.) The last time I chided The Car Connection for their undeclared junketeering, I also took a swipe at Edmunds for the same sin of omission. Edmunds now publish this little ditty at the bottom of their junket-sourced editorial: Edmunds attended a manufacturer-sponsored event, to which selected members of the press were invited, to facilitate this report. Notice the note of self-congratulation. And the lack of any specific mention of the fact that the carmaker PAID FOR THE TRIP. Once again, I challenge The Car Connection and Edmunds to come clean on their relationship to the people making the cars they review. It's high time the automotive media cleaned-up its act and started serving the people who count: the readers.

No question: The Big 2.8's supply chain is in disarray. Plastech, Delphi, American Axle– these are just three of the U.S. parts suppliers already in bankruptcy, with fully 25 percent of other major domestic parts makers teetering on the edge of Chapter 11. The domestics are operating on the assumption that the faster they outsource their parts production overseas, the better. Speaking to Automotive News [sub] analyst John Casesa warns that Chrysler's new purchasing czar John Campi's rush to confront domestic suppliers (Plastech) and seek low cost foreign replacements may not be such a good idea– especially when seen in historical context. "In the early 1990s, former GM purchasing chief J. Ignacio Lopez proved that point. When he bid out proprietary part designs to garner the lowest prices, Lopez launched a brutal price war that created lasting animosity between GM and its suppliers. The industry is still struggling to heal the wounds." And speaking of war, does it really make sense for the domestics to combine Just in Time production and long, long supply lines in this time of crisis? As Toyota's quickly resolved Tundra problems show, it's best to keep your friends close and your suppliers closer. 

I had to check the calendar to see if it was April first, but no; Mexico has banned the importation of all American used cars except for vehicles built in 1998. No really. As of today, our NAFTA neighbor to the South has forbidden importation of all American pre-loved cars, trucks, pickup trucks, minivans and SUVs built before '98, and all those built thereafter. Until now, there was a five year window, from '93 to '98. The authorities responsible make no bones about the fact that the rule change was spurred by declining car dealers' profits rather than consumer interest. "The Mexican Consulate in McAllen said the change was made "to restrict the entry of vehicles that compete with the Mexican car industry." Needless to say, the rule change has inflated the price of '98's and eaten into the price of anything older– or younger. "With the sudden change in demand, such 1998 models are appreciating for the first time since they rolled off the lot, their prices rising by $500 to $800." Locura.

TTAC reviewer Paul Niedermeyer slated the new, heavier, less fuel efficient, gansta-riffic xB as "a blot on Toyota’s relatively unblemished copybook." The other models aren't setting the world on fire and face new competition, from within and without ToMoCo. No wonder, then, Automotive News [AN, sub] reports that Scion sales have dropped for 16 straight months. "Since August, monthly sales have declined from each previous month, even though dealers have had two redesigned models in their showrooms during that period." Product isn't the only problem. Taking a cue from The Big 2.8, Scion has over-dealered. "Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods. Currently, 963 of 1,224 Toyota dealers carry the brand." ToMoCo says they mishandled the old to new model changeover. And never mind, anyway. "Sure, we'd like to see more customers," ToMoCo prez Lentz admits. "but we're still seeing the right customers. The tC's average customer is under 25 years old. The overall Scion customer is in his early 30s, and primarily he is new to the brand… As we hit spring, I think we'll see some good sales results." Even at Toyota, hopes springs eternal.

As opposed to… "Inactive Subaltern Status Quo Soldier?" Whatever you call Peter Arnell, Automotive News [AN, sub] reports that Chrysler's "Big Idea" consultant is prowling Auburn Hills, tweaking the American automaker's branding, product planning, customer relations and dealership coordination. (Arnell was the brains behind the hugely expensive Celin Dion – Chrysler Pacifica promotion; regarded as a total flop.) Reading between the lines, AN reckons Arnell may exacerbate Chrysler's long-standing tradition of internecine conflict. "Arnell's consulting services bring him into areas of the company that already have bosses, raising the spectre of possible turf wars and executive conflicts. Among the people and the areas to watch: Trevor Creed is Chrysler's chief designer; Deborah Meyer is chief marketing officer; Frank Klegon heads product development." Arnell– salary unknown– may have the edge on his erstwhile rivals. He worked with CEO Bob Nardelli over at Home Depot, where the dream team unleashed the caps lock ORANGE WORKS in the winter of '06. The range of chi-chi bespoke products (e.g. a martini shaker-shaped fire extinguisher) did nothing much for Home Depot's bottom line.

A report by the Minneapolis-based Institute for Agriculture and Trade Policy warns that the ethanol industry's appetite for H20 may torpedo its future. As reported by The Economist, "a typical ethanol factory producing 50m gallons of biofuels a year needs about 500 gallons of water a minute." The mag cites opposition to plants in Missouri, Minnesota, Iowa, Nebraska, Kansas and in central Illinois based on proposed plants draining local aquifers. As we've reported before, Florida is amongst those states providing ethanol-justified subsidies to its corn growers. And yet… "OFFICIALS in Tampa, Florida, got a surprise recently when a local firm building the state's first ethanol-production factory put in a request for 400,000 gallons (1.5m litres) a day of city water. The request by US Envirofuels would make the facility one of the city's top ten water consumers overnight, and the company plans to double its size. Florida is suffering from a prolonged drought. Rivers and lakes are at record lows and residents wonder where the extra water will come from." While the ethanol industry has halved its H20 needs in the last ten years, 50 percent of a massive amount of water to turn corn into ethanol still ain't chicken feed. Literally. [thanks to starlightmica for the link]

I believe that somebody is worth exactly what someone is willing to pay for them. If The New York Yankees are willing to pay shortstop Alex Rodriguez $275m for ten year's service, that's what he's worth. You can bet that owner George Steinbrenner stands to make more money than his employee. Well, that's the theory. In practice, sometimes the people signing the checks are so divorced from reality that they happily shell-out tens of millions of dollars to employees without any hope of recompense. Needless to say, I'm referring to the top level execs infesting GM, Ford and Chrysler. Now you could make a case that Ford is the exception– if we're talking about Alan Mulally. I reckon the former Boeing man might someday be worth Ford's $75m – $150m (at a guess) investment. As for Ford's million dollar plus top level suits– who've already proven that they don't know how to run a railroad– I'm not sure. I find Bill Ford's postponed payments even less convincing. The man owns stock. If Ford makes a profit, he will (once again) bank millions. Ford's compensation committee might think that it's worth $25m to $35m per year to get Bill Ford to "represent" the family biz and stay out of Alan Mulally's hair. I think not.

After yesterday's post on Bill Ford's compensation package, I had a little chinwag with FoMoCo PR Supremo Oscar Suris. Suris explained that his boss– the automaker's Executive Chairman and former CEO– has, indeed, "modified" his May 2005 pledge. (Billy swore on a stack of dry cleaning bills that he wouldn't take a plug nickel from his family namesake until the company was profitable for a full financial year.) The new deal is this: from 2008, Ford will "postpone" Billy's annual compensation until Ford is profitable. In other words, if and when Ford gets back in black, cha-CHING! All the money from '08 forward comes due. How much? Suris wouldn't say. "The Committee felt this was a fair and reasonable way for Bill Ford to stay true to his pledge on some level." Yes, well, keep in mind that Ford is no longer making dividend payments; the Ford family's auto-related cash flow has stopped. As to what Bill Ford has done to aid the "company's progress in restructuring its troubled North American operations," he hired Alan Mullaly. What do you want, blood?

Here's the official statement, contradicting part of our story on Chrysler's post-Daimler accounts: "Several media outlets have erroneously reported a loss of approximately $2.7 billion by Chrysler between August 4 and September 30, 2007. In fact, from an operating earnings standpoint, Chrysler was profitable during this time period. Also, Chrysler lost significantly less than what was reported during the course of the full-year. We believe any differences are attributable due to U.S. Generally Accepted Accounting Principles (US GAAP) versus International Financial Reporting Standards (IFRS) accounting rules. These differences include pension accounting for the UAW settlement and restructuring and purchases accounting." So, can we have a look at those books then, Mr. Private Equity Firms Don't Need to File Public Accounts? Thought not. 

Some 175 member of the Canadian Auto Workers (CAW) union employed by the TRW auto supply plant in east Windsor (Ontario) downed tools at three am last night and walked off the job, protesting wages and benefits. The Detroit News reports that Chrysler's Windsor minivan plant– which depends on TRW for its minivans' suspension frames– shut down three hours later. "Talks have broken off," announced CAW Local 444 President Ken Lewenza. "We're digging in our heels for a long one." CAW bargaining rep Mike Renaud told The Windsor Star he's got no regrets. ""It's a major blow to our community, and we're fully cognizant of that. And we remain willing to bargain at any given moment. But we have to have fair wages and benefits here for people," he said. Renaud described the average TRW $11.25 per hour salary as a "poverty level wage." CAW member Ryan Kelly, who works in shipping, said amen to that. "I made more working at Tim Horton's — it's a joke." Surprisingly (or not), this is the first time the TRW workers have attempted to reach a collective agreement with management. But not the first– nor the last– time Chrysler has been whacked by supplier disruptions. 

UPDATE: Chrysler currently maintains an inventory of 45,700 minivan: a 57-day supply of Chrysler Town & Countrys and a 77-day supply of Dodge Caravans. 

Thought I'd put the dimenstion in the header, in case you thought Maserati was green lighting this sexiest of all wagons (and yes I know the Sultan of Brunei has some bizarre examples of the breed). No, it's not the work of TTAC's house photochopper; the Five Door Maser comes to you via Italian coachbuilders Studio Torino and Studio M. Classic Driver reports that an "unnamed Middle Eastern businessman" commissioned designer Alfredo Stolas to build this beast, but I bet the 1/4 scale mock-up is just a come-on to lure a customer (especially as the article ends with a full press release flourish). Anyway, color me lured. And I love this description of the origin of the quaint term shooting brake: "The tradition of the bespoke shooting brake originated in the early years of the 20th Century, when wealthy British hunters wanted to enjoy travelling in a sporting vehicle while pursuing their game. British and Italian coachbuilders in particular have, over the decades, been asked to adapt coupés, saloons or even sportscars to accommodate the needs of the hunter in a stylish, elegant fashion." Talk about a killer station wagon…

After Bloomberg sounded the alarm re: The General's lousy prospects, phenomenal cash burn and potential slide into Chapter 11 (or foreign ownership or both), the Detroit News adds fuel to pyre. Of course, Sharon Terlep does does so in her own special way (i.e. it wazzunt me). "General Motors Corp.'s already fragile turnaround could be derailed by any number of threats looming in 2008, from more strikes at parts suppliers to a further meltdown of the housing market, according to the automaker's annual report filed Thursday." Without nailing GM for guarding the terms and conditions of its payment into the $34b union health care VEBA, the scribe hints at the implications. "GM's ability to spend in other areas of the business will be affected if it can't secure financing under favorable terms." After citing another possible downgrade in GM's ratings "if GM continues to burn cash in its home market or if operations outside the United States become less profitable," Terlep can't resist throwing GM a bone. The penultimate danger cited: "Competition from rivals introducing key new models this year. GM's product cadence will slow down this year after a number of successful, high-profile new vehicles in 2006 and 2007." Successful? Successful how? 

I love TTAC's commentators. Whenever I'm scanning the net for stories or writing an editorial or editing a review, I've always got you guys and gals in the back of my mind. For one thing, your expertise keeps me on my toes. Without naming names, it's no secret that some of the writers published hereabouts have found themselves in possession of a new excretion-oriented orifice after confronting TTAC's best and brightest with half-baked analysis or factual errors. For another, you guys provide me a welcome anti-inflammatory. Whenever a commentator accuses the site of bias (comment which are removed as per our anti-flaming policy), I email the offender and challenge them to submit their "balancing" opinion in an editorial. Sensibly enough, most choose not to run your intellectual gauntlet. In fact, I can count on one hand the number of correspondents who rose to the challenge, and one of them regretted it to the point where I had to block him from my email. So thanks for keeping an eye on us. Those of us on this side of the e-fence depend on you for our honesty, integrity and, let's face it, entertainment. Oh, and this link says global warming is a crock of shit. 

This one's a bit screwy. According to Reuters, Ford's compensation committee wants to pay Billy Ford– even though the former CEO and current Board Chairman pledged not to draw a penny in salary until FoMoCo had returned to profitability (currently scheduled for 2009). In a note filed with the SEC, Ford (the company) said it's decided to change the terms of of Bill Ford's 2005 compensation arrangement "in light of the company's progress in restructuring its troubled North American operations." The committee insisted that it was "not reasonable" to expect Bill Ford to continue to work for free "particularly after he has received no compensation for three years." Ford spokesman Oscar Suris said Bill Ford had turned his back on compensation worth roughly $25m to $33m. OK, now, The Detroit Free Press reports that Billy has reaffirmed his promise not to bank the bucks until Ford's in the black. TTAC is investigating.

Other than a $1.3b manufacturing facility in Mississippi, ToMoCo has no plans to open another U.S. production facility. And yet The Salt Lake Tribune reports that local lawmakers are dangling the prospect of a new Toyota factory to justify HB436, a bill authorizing $5m for a statewide English literacy program. The money adds to a Toyota grant, which led Bill sponsor Rep. Greg Hughes, R-Drape to claim "Toyota is looking for opportunities to build a manufacturing plant. They are looking for communities they could bring this plant to that invest in their work force." In fact, the lawmaker's assertion was based on a letter sent to (not received from) Toyota's Veep Patricia Pineda, thanking the automaker for the grant. "We… understand that Toyota may have future interests for potential economic development that may include a motor assembly plant constructed in our state. As Utah's Legislature and Senate Leaders we welcome any such future thinking." The Trib reports that "attempts to reach Toyota Wednesday were unsuccessful." Next time, just drop us an email…