I don't pretend the understand the reasoning behind the NAACP's (National Association for the Advancement of Colored People) decision to fight Cincinnati's plans to install red light camera. According to the Enquirer, "Several NAACP members Thursday said they don’t like the idea of the cameras because it would infringe on their civil rights." And they kind of, you know, hinted that prospective camera placement might be racially biased: "NAACP member Elizabeth Sanford said she thinks the cameras may unfairly target some neighborhoods more than others." But hey, the NAACP will certainly earn some brownie points for this campaign. Given the cameras' dubious safety benefits, their Big Brother implications, and the fact that East Cleveland and Steubenville have punted their town's dreams of red light camera revenue, the NAACP's petition is likely to succeed. As thenewspaper reports, the NAACP will thusly thwart the Cincinnati City Council's cunning plan to end-run Mayor Charlie Luken's red light camera veto by slipping the measure into their annual budget. Anything for a buck, eh?  

When BMW launched MINI stateside, its U.S. ad agency's unconventional approach (heavy on internet-based viral marketing) did wonders for the brand. Now that the new German-built, Jeremy Clarkson-reviled MINI Clubman is set to cross the pond, the automaker's "brand advocacy partner" Butler, Shine, Stern, & Partners (a.k.a. BSSP) has devised some, uh, "unique" cross-branded swag. Brandweek reports that the Sausalito-based agency has hooked-up with Visionaire, a NY publisher of themed, multimedia magazines to create the the $250 “Mini Clubman Vinyl Killer" edition. The package includes five picture-disc 12-inch records and a portable record player with a small Clubman replica for a cartridge. No really. There's also the MINI Clubman Onitsuka Tiger. The bespoke running shoe sports the MINI logo on the heel, and comes in color schemes to match those available for the Clubman (including black/silver and cream/British green). As you might expect, Brandweek analyzes MINI's most recent marketing plans with something approaching a Zen koan: "There is a place for Mini to work on selling to more hipster-oriented consumers, and it lies somewhere between Scion and Mini." So now you know.

Yes, well, it's a bit a late to be singing that refrain, what with the new Energy Bill slapping a 35 by 2020 bumper sticker on every legislator and carmaker's ass. Still, as Shakespeare once said, there's many a slip between the cup and the lip; substitute  "loopholes" and "federal court cases" for "slip" and you've got a pretty clear picture of what lies ahead. Meanwhile, conservative thinkers have suddenly woken from their torpor to explain why the new federal fuel economy regulations (such as they aren't) aren't such a good idea. Cato Institute senior [good] fellows Jerry Taylor and Peter Van Doren attack the underlying principle that automobile manufacturers are fuel economy foot draggers. "Automakers… would hardly be more ignorant than the casual observers at the Sierra Club and Rep. Nancy Pelosi's office about how much money they're leaving on the table. Suffice it to say this argument suggests that consumers are indeed getting exactly the kind of cars that they want." They also point out that consumers have valid priorities– which don't jibe with global warming crusaders. "They don't like the fact that many consumers seem to like other attributes — such as vehicle size and acceleration — that mitigate against fuel economy." After suggesting that a fuel tax would be the best way to correct so-called "market failures," Taylor and Van Doren put the [stillborn] fuel economy debate to bed. "For many, however, there is no such thing as too much energy conservation, and society always gains the less we consume. But if that were true, why not just ban cars from the road altogether?" Where were you guys six months ago?

Yeah, right. That makes perfect sense; for all the common sense reasons you're about to post below. And yet, Fortune's senior editor Alex Taylor Three Sticks offers the possibility within his '08 auto industry preview. "Speculation is building about Cerberus' exit strategy from Chrysler, as well as its timing. Will it try to merge Chrysler with Ford or sell it to another automaker, or go to the public with an IPO?" At least Taylor's on board with TTAC's Chrysler Suicide Watch theme: "Crosstown rivals are watching carefully because a Chrysler in distress could lead to suicidal industry-wide price-cutting." Wow, all three Motown automakers could be jumpers? Now that we didn't consider. While he's at it, Taylor allows himself some xenophobic posthumous projection regarding India's Tata motors assuming control of Jaguar. "Winston Churchill must be spinning in his grave." And speaking of theoretical quotes… "The other day, a GM executive was speculating that the auto industry was sorting itself into two categories: two super-companies, GM and Toyota, with annual production of nine million vehicles each, and all the rest." Alex torches his straw man and concludes "the world is becoming a fluid place." This is news?

The Kentucky Herald Leader reports that pro-union forces have formed "Toyota Owners for Fairness," a pressure group aimed at organizing Toyota's U.S. factories. It is, no doubt, a bizarre alliance. "It's a collaboration between the unions, the environmentalists and people of faith," revealed the Rev. John Rausch, group organizer and director of the Catholic Committee of Appalachia. (In case you were wondering about the tree-hugging portion of the program, "The campaign salutes the company for its environmental efforts but challenges it to hear workers' concerns.") Although the article makes no mention of any UAW financial contribution to the union supporters (or what kind of car Revered Rausch drives), the fact that Toyota Owners for Fairness launched their effort to unionize a Kentucky plant at a downtown Detroit church tells you pretty much all you need to know on that score. Meanwhile, workers at Toyota's Georgetown plant have set-up a rival group. "Truth Finders" recently bought a quarter-page ad in the Leader to refute claims of worker exploitation. Chief Truth Finder Marvin Robbins declined to name his financial backers, but insisted that Toyota had not contributed to the cause. Given that Georgetown has been union-free for some 20 years and the UAW's dwindling power within the industry, Rev. Rausch best pray for some divine intervention. 

Underneath the latest GM Death Watch, a kvetch of commentators are hashing-out an old argument: why doesn't Ford bring its Euro-Focus to America? As KatiePuckrik points out, the current U.S. – Euro exchange rate makes any such proposition a potential financial catastrophe. A $40k Focus? No way José (i.e. Ford's Mexican workers can relax). On the other hand, why not? Let's say Ford imports their vastly superior European subcompact and sell it for $20k, losing $20k per car. And let's imagine they sell 100k of them. So they'd lose, what, two billion dollars? You could make a case that it would be worth $2b to put Ford back on the map as the American purveyor of quality small cars. The consistency clockers amongst you will note that I'm suggesting a flag-planting strategy that I've condemned in GM's case re: the Saturn Astra. The crucial difference is that the Focus is a quintessential Ford, while the Astra is an Opel modified for a brand whose amorphousness rivals that of Cnidaria Scyphozoa. In any case, someone in Detroit needs to make some Bold Moves. But I guess that'll have to wait 'til bankruptcy brings in some new players. Meanwhile, happy birthday to a man with genuine backbone: Justin Berkowitz. 

As we've reported several times, GM just can't seem to make up its mind about whether or not its next gen Chevrolet Impala will be front or rear wheel-drive. In the last episode our Forbes interview blog (thanks Jer!), we find GM's Car Czar in a bit of drivetrain quandary. Again. Still. Maybe. "'My personal preference is large, rear-wheel-drive cars,' says Lutz. 'My business preference is doing what is right for the shareholder and the public, in light of upcoming regulation on fuel economy. If there's a mile or two difference in fuel economy, you go for the one with the better economy. That's where the internal debate [on the Impala] is now– no firm decision at this point, but my guess is that we will come down on the side of the front-drive car.'" And while an anxious nation awaits an answer, Forbes' elder statesman predicts GM will gain market share in '08, thanks to an improving rep and a strong dollar (never mind all those transplants' U.S. factories, I guess). On this point, Maximum Bob is uncharacteristically sanguine/realistic– for a moment. "If we have a weak market and high fuel prices, people may buy more cars instead of trucks. Our mix is nearly 70% trucks, so if trucks tank fast enough, that takes our share down… If you look to our position against the competition, we're in the best space we've been in years. So you could well be right about our market share." I say nothing.

I'm guessing here, but I think GM Car Czar Bob Lutz was trying to impress Jerry Flint by suggesting GM needs bleeding edge car design. "We don't want people to say ‘I love this design, it's just great,' Lutz told the Forbes magazine columnist. "Because that means it is probably not going to last past when the car comes out… We want some checkmarks in the 'Too Much' column.'" While the "GM Hearts Bold Design" storyline echoes CEO Rick Wagoner's recent remarks (chronicled in our last General Motors Death Watch), it's a pretty major miscalculation for a company committed to building Camry-killers. Anyway, from whence cometh this avant garde automotive art? "A lot of these designs will be done outside the U.S.," Lutz said. "Where they never allowed themselves to slip to a lower standard, as they did here." Hang on; what's with the "they?" Doesn't Lutz mean "we?" Or maybe "I?" Anyway anyway, MB promises a new Buick LaCrosse that's going to be a real [Chinese made?] "mind-boggler." We're already there, Bob.

Automotive News [AN] reports that GM's recent cutbacks in pickup truck production weren't deep enough. While Ford, Dodge and Nissan dealers are all sitting on a relatively health supply of full-size pickups– 100, 120 and 105 days respectively– GM's inventory channel is stuffed to the gills. "As of Dec. 1, inventories of the Chevrolet Silverado (153 days supply) and GMC Sierra (150 days) were bloated despite $5,000 rebates on 2007 models." The automaker's desperation to move the moribund metal is showing-up at the sharp end. "Ken Fichtner, owner of Fichtner Chevrolet in Laurel, Mont., says he took an additional 10 Silverados last month, at GM's request. This month GM asked him to take an additional 20 trucks, and he said no. 'I am sitting on a 13-month supply right now," Fichtner says. 'They wanted me to go to an 18-month supply but we only sell 10 a month, and I'm in the heart of truck country!'" As Frank Williams predicted back in April, there's only one way this is gonna go: GM will have to put massive incentives on its pickups, dinging residual values and further eroding the profits delivered by GM's former cash cows. And THEN cut production even more.   

GM Car Czar Bob Lutz sat down with journo Jerry Flint for a major chin wag. Forbes' finest asks Maximum Bob about his employer's two-mode hybrid system; Flint wonders if the system costs costs more than $10k per vehicle. "Well, at least," Lutz admits. "And we're not selling it for that." Oops! So will the inherently unprofitable technology help GM achieve its federally-mandated 35mpg by 2020 fuel economy targets? Nope. "Even with that, we get a full-sized Tahoe sport utility to 22 miles per gallon, which is 50% to 60% better than anyone else [?], but is still only 22. So where are we going to get the other 13 [mpg]? We don't have a clue, and throwing another 10,000 bucks at it isn't going to do it either." As for GM's next Next Big Thing, the electric – gas Chevrolet Volt, Lutz backpedals so hard he falls over. Flint bears the bad news: "On a scale of 1 to 10, he says his confidence level is a 9.5 that GM can build the Chevy Volt. The production date is another matter; Lutz's confidence drops to a 5.5. 'We're holding people's feet to the fire for the very end of 2010 into 2011. But that can slip, depending on how the development goes.'" In short, "It probably won't be a flawless launch." So, it's business as usual at GM.

Back when Toyota first toppled GM from the worldwide sales charts, The General's General dismissed the historic milestone as no biggie. When the markets growled at Rick Wagoner's ho-hummer, the American CEO eventually declared his intention to defend the company's honor. While it's down to the wire for '07, Toyota is already announcing its intention to snag the sales title in the New Year. According to The New York Times, ToMoCo plans to sell 9.85m vehicles worldwide in 2008. In fact, despite a U.S. economic downturn, Toyota is set to increase American sales by one percent.  So what does the 76-year worldwide sales champ have to say about its own plans for world domination? Nothing. "G.M. has not given a forecast for the number of vehicles it expects to produce or sell in 2008." Just in case you missed the contrast in corporate cultures, Credit Suisse auto analyst Koji Endo reminds us that “These are targets Toyota is giving, not forecasts, and so they are reasonable." Oh, and Toyota also says it will begin mass-producing lithium-ion batteries for its low-emission vehicles in '09. And so it goes.

“It would have helped to have a little bit of sunshine.” What a strange statement. Not “General Motors is prepared to weather the economic downturn ahead.” More like “Darn it! Just when we got our new picnic blanket spread out, it’s started to rain!” But then GM CEO Rick Wagoner is a GM lifer, a Harvard-trained beancounter, a man whose self-effacement hides a genuine lack of leadership. “We look forward to the sunny days,” Wagoner continues. “But realistically we can’t plan on it for next year.” So what IS GM’s plan?

Volvo is adopting the the Big 2.8's' overarching management strategy for '07: cut your way to prosperity. Automotive News [AN, sub] reports that Volvo's sliding sales have reached the point where the brand sells just 260 vehicles per dealer per year. FoMoCo's Swedish division is taking action, "asking its unprofitable and marginal dealers in the United States to give up their franchises." Asking? As in pretty please? The article takes its sweet time getting to the meat of the matter– how much Ford's going to pay these svag dealers to shutter their showrooms– and then serves-up a side dish. AN reveals that Volvo U.S. CEO Anne Belec has already allocated funds for the buyout program but "declined to say how much or how they would be used. Neither would she say how many stores are targeted for closing but made clear that it is more than a handful." I think they forgot to ask "Can you be any more vague?" In terms of actual news, Volvo's abandoning its sponsorship program (goodbye tennis) and leasing programs (in favor of low-interest loans), and focusing its marketing on larger and more heavily loaded cars (just in time for the compact C30's arrival). Volvo's retail advisory board chairman and store owner Ben Stein is not impressed. "The dealers are getting tired of a cut-cut-cut strategy," he said. "We need a game plan for sustained growth." Ya think?

First Samir Syed reminded me that the New York Auto Show is a crashing– I mean, static bore. Then I looked out my garret window and saw the dirty snow covering the Lady and the Tramp Victorian landscape below my perch. And then blautens suggested we move the TTAC party to West Palm Beach to coincide with the Barret-Jackson auction. This idea has a couple of things going for it. First, auctions have a certain pleasing rhythm to them– unlike car shows which are Stendhal syndrome in-car-nate.  And second, it's warm in Florida. So what do you say folks? Spring break for TTAC? Meanwhile, I'm taking a few days off. We'll resume this adventure next Thursday or Friday. I thank you all for your continued patronage. Frank, myself and the TTAC team will continue to do everything in our power to ensure that we are worthy of your time. Merry Christmas!

"Are we bankrupt? Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with." Another milestone: Chrysler CEO Bob Nardelli used the “b word’ in public. What’s more, Boot ‘em Bob told the Wall Street Journal (WSJ) that he’s on a leash so short he can feel the hot breath of his Cerberusian owners tickling his neck hairs. Why’s that then? Because all Hell's about to break loose.