Thanks to the parity between the Canadian loonie and U.S. greenback– and carmakers' failure to lower their Canadian prices to compensate– our neighbors to the north are flocking south to buy new and used vehicles from American car dealers. The Toronto Star finally puts numbers to the trend: Canadian cross-border shoppers imported 24,873 cars in October. That's double the previous month's total (12,289). It seems the trade is having a ripple effect on the entire industry, as savvy buyers wait for automotive prices to drop. To wit: Canadian new car sales declined from August's 158,394 to October's 121k. The toll on "domestic" used cars could be even heavier. However, as we've reported, the entire trade has just fallen afoul of federal regulations requiring Canadian-spec, manufacturer-approved, anti-theft immobilizers. With over a thousand imported cars in limbo, the resulting confusion and outrage is certain to create some major political blowback– especially with as Transport Canada admits some of those cars may have been purchased between Sept. 1, when the new regulation came into effect, and the time when the agency posted the list of prohibited vehicles on its website. Oops. 

Nationally syndicated radio talk show host Michael Savage makes no bones about his antipathy towards, uh, well, I better choose my words carefully here. Because no matter what you think about Savage's views on American attitudes and policies towards Muslims, both extremist and otherwise, both here and abroad, one thing's for sure: he's got some extremely well organized opponents. To wit, The Council on American-Islamic Relations (CAIR) has members throughout the U.S. listening in to his show to identify Savage's local advertisers, as part of their ongoing campaign to pressure the show's sponsors to withdraw. Automobile recently published CAIR's most recent press release, which takes AutoZone to task for allowing ads for the chain to appear on The Savage Nation. Apparently, it was a slip-up. A spokesman declared that "AutoZone has a 'Do Not Air' policy against the Michael Savage show and that has been in place for over 6 years now." When TTAC contacted CAIR and asked what automotive-related companies advertise on the program, they named Hyundai, Tom-Tom GPS and GM's OnStar. We'll see if CAIR's campaign forces a retreat…

Nissan's freshly-minted North American sales chief reckons it's time to address the English patient in the automaker's model line: the Sentra. Mark McNabb tells Wardsauto that he's trying to figure out why, why dear lord, Sentra's sales are on a slippery slope to nowhere. And no wonder; year-to-date sales of the refreshed model are down 10.9 percent to 91,463 units. Helpfully enough, Wards' suggest that the Sentra falls between two stools (so to speak). They report that U.S. compact car sales (e.g. Nissan Sentra) are down 4.3 percent, while sub-compact sales (e.g. Nissan Versa) have increased by a whopping 37.3 percent. Is the Versa– up 364.3 percent in the first 10 months to 67,688 units– cannibalizing the Sentra? McNabb doesn't know and doesn't really seem to care. "He says his first priority with the Sentra will be 'to make sure dealers are engaged with the vehicle.'" Nissan dealers actively await McNabb's wedding plans. “There’s a big market here for that car," says Walter Dolan, senior sales consultant at Pinnacle Nissan in Scottsdale, AZ. "But we’re not seeing a lot of support behind the car coming out of Nissan." Rsponding to the crticism, McNabb promises to see “if there’s something [in Sentra advertising] we can tweak to get the car going a little bit stronger.” Anyway, it may be a big problem, but it's not a major concern. “It’s definitely, from a profit standpoint, not that bad,” McNabb said. Definitely. 

Now that the dust has settled on the United Auto Workers (UAW) contract negotiations with Chrysler, UAW boss Ron Gettelfinger is finally speaking out about the American automaker's private equity owners. And he likes them. In practice. But not in theory. Speaking to at a Reuters industry pow-wow, Gettelfinger declared that "Private equity firms, a lot of them, they're vultures; a lot of them are strip and flip. I think that can be said as a matter of fact. There are some of those folks that I almost feel dirty when they leave a room after I have met with them." Some? Like, say, Cerberus, who fired 10k UAW members before the ink was dry on the UAW's new contract? The same Cerberus who sweet-talked Gettlefinger into going along with the sale in the first place? "He acknowledged the seeming contradiction, saying that maybe he was 'speaking out of both sides of my mouth.' But he said: 'If you look at what was on the table at the time, as far as the Chrysler deal, there wasn't a lot of options out there.'" If that isn't enough to make a union member's head spin, Gettelfinger also backed away from his previous contention that he was blind-sided by Chrysler's post-contract job cuts. "The union leader also said that job cuts… were not a complete surprise, given weakness in the U.S. autos market. 'We knew there were going to be adjustments,' he said. I'm sure ex-Chrysler workers will be delighted to learn they were "adjusted" rather than "fired."  

GM's new contract with the United Auto Workers (UAW) was sold to all and sundry as a necessary step to protect U.S. jobs. Meanwhile, GM continues to send jobs overseas. The Times of India reports that GM's set to triple parts production on the subcontinent, ramping-up to $1b worth over the next three years. The Indian-made bits and pieces will head-off for GM products worldwide. GM's President and Managing Director of GM India told reporters in Chennai that GM is currently exporting $300m of parts from India. Karl Slym also revealed that The General was planning to set up a powertrain production facility in country. It's not clear if the engines would find homes abroad. That could depend on the success of the Chevrolet Captiva SUV in the Indian market. In an echo of GM's Opel becomes Saturn Astra U.S. strategy, GM will begin by importing the Captiva from Korea. If it's a hit, they'll shift to local production. 

Honda is about to offer the hydrogen-powered FCX Clarity to "customers" on a limited long-term lease basis. For 600 bucks a month, a handful of lucky leaseholders will get to boast that their car is cleaner than Mitt Romney's closet, and fill-up… at home. According to American Honda chief executive Tetsuo Iwamura, the Clarity is a "shining symbol of the progress we've made with fuel cell vehicles and of our belief in the promise of this technology." Belief in a promise. Gotcha. Just in case you didn't quite catch the fact that Mr. Iwamura is standing in a wiggle room, AFP found an expert to throw a little cold water on Ye Olde hydrogen economy. Texan Timothy Wilkins, an attorney for the firm Bracewell & Giuliani (yes, THAT Giuliani), warns that "producing hydrogen like the gasoline scale, to fully integrated in the vehicle fleet and [provide] the infrastructure for fueling stations will take one century." As Napoleon told his generals when they informed him that growing trees along French roads to shade his troops would take 100 years, "Better get on with it then, mate." Luckily, we don't have to wait that long for a test drive report on the Clarity. Once and future TTAC'er Jonny Leiberman reports to us via podcast below.

Ted Turner used to have a sign on his desk: "Lead, Follow or Try to Snort as much Cocaine As I do." No wait. "Lead, Follow or Get Out of the Way." Americans tend to view the statement as Ted did: vindication for centralized power. In other words, I'm the leader. Follow me or **** off. While the three-role rule applies to all human interactions, it doesn't say you should pick one and stick with it forever. There are times when it's best to lead, times when you're better off implementing a leader's vision, and times when the further you remove yourself from the leader and his followers, the better (just ask Congressman Leo Ryan's family). Clearly, GM Car Czar Bob Lutz swings wildly between leader and disparu. While the media loves Bob the leader and completely misses disinterested Bob (the man who can't be bothered to listen when "his people" pepper him with "details"), it is Lutz' abject inability to follow that defines both the man and his– I mean "the" company. But it's not really his fault. GM CEO Rick Wagoner is not a leader, so who could he follow? The fact that GM's former CFO (Wagoner) lets Lutz run riot/rampant tells you that Wagoner is either seriously deluded about Lutz' abilities, or gets out of his way because, well, what do I know? When GM's epitaph is finally written, Wagoner will be seen as a slave to the diseased corporate culture that created him. And Lutz will be seen as figure of pathos; GM's very own King Lear.

As we've reported, thousands of Canadian cars buyers have headed south of the border to save money on new and used cars. Several manufacturers have [belatedly] responded to the exodus by offering incentives that bring Canadian new car prices back in line with their American equivalent. But not all, and used car prices are still significantly lower. So the trade continues apace. Only now the Canadian government has stepped in and staunched the wound. The Toronto Globe and Mail reports that Transport Canada now refuses to license imported American cars until they're fitted with a Canada-compliant anti-theft immobilizer. Seriously. They're stopping vehicles at the border and/or allowing new car buyers to drive them home– and that's all. At least until the device is fitted and the car inspected (and Honda of Canada says they know of no legal aftermarket conversion). Transport Canada spokesman Patrick Charette moved to quash conspiracy theorists (that's us) by pointing out the new reg was announced two years ago. Mr. Hill ain't buying it. The Calgary financial consultant bought a 2008 Sienna in the U.S. last month, saving CA$15k. The vehicle is currently sitting on a dealer's lot 320 kilometers away from his driveway. "This is either collusion or unintended consequences." While dozens of frustrated buyers cry foul, the list of banned vehicles was broadened last week to include 2008 models manufactured after Sept. 1 and sold in the United States by Ford, Hyundai and Suzuki; all 2008 GM models, several Honda vehicles and about half of the Toyota Motor Corp. lineup.

Of course, they kinda have to, as the Maranello Mob don't have "get out of global warming free" card to hand the European Union when new CO2 regs come into force. As Reuters reports, the semi-democratic bureaucrats in the European Union (EU) are preparing legislation that will require manufacturers' fleets to average 120 grams of CO2 per km by 2012. And so Ferrari's GM has announced his employer's intention to reduce their bella machinas' CO2 production by 40 percent by the EU deadline. "We have to face the challenge of reducing consumption but not affecting the performance of the car," Amedeo Felisa told Reuters in Frankfurt. "Otherwise we move [away] from our position in the market and we do not want to do that." Felisa also took the opportunity to remind the world that the integrity of the Earth's polar ice caps doesn't depend on the CO2 levels emitted by Ferrari's 6k annual production run. "Our volumes will not … affect the environment," he said, piercingly glimpsing the obvious. And anyway, improving mpg with high-tech, lightweight materials shouldn't be that hard for Ferrari, an automaker whose products are not exactly what you'd call "price sensitive."  

Toyota's freshly-minted CEO breaks cover in a Detroit News (DTN) profile with a home-town friendly headline: "Criticism shadows Toyota's success." The DTN repeats the charges: environmental insensitivity (for fighting higher CAFE standards) and quality control problems (that led to the Camry's ejection from Consumer Reports' recommended list). The blows go lower. "Unusually for Toyota, its U.S. sales growth for 2007 is running behind its forecasts, and its new Tundra's slow start in a slumping pickup market is viewed as further evidence of the automaker's fallibility." Rubbish. Along with every other U.S. automaker, Toyota has revised its forecasts to account for a shrinking new car market– but it still predicts market share growth. And while the Tundra's first year sales target of 200k units looks a bit dicey (unless they REALLY blow-out the price), they've sold 162k year-to-date. More importantly, check out Lentz 'tude: "What has always made Toyota strong is this sense of kaizen," Lentz said, referring to a tenet of the Toyota Way that means continuous improvement. "We have to use whatever shortcomings or criticisms we have as a way to re-energize that kaizen within our culture, to make sure that we fix issues that we have before they become targets of our critics." Are you listening Mr. Lutz?

Back when GM was offering zero percent loans to anyone with a pulse (i.e. "sub-optimal" FICO credit scores), we warned that this policy would come back and bite the automaker in the ass. CNNMoney reports that GM's glutes are in peril. "Lehman Brothers analyst Brian Johnson said in a research note Monday that GMAC is experiencing a 'sharp' increase in delinquency rates among its auto-loan customers since July. 'The precursor of credit loss is delinquency- and the 60-day delinquency rate is on the rise for recent issues of GMAC auto (asset-backed securities),' Johnson said. He noted that, with unemployment low, 'the deterioration in auto ABS credit conditions may be evidence of a likely spill-over of the mortgage woes onto the auto credit world.'" This is serious stuff; hundreds of thousands of bad loans nearly sank Mitsubishi. GM spokeswoman Gina Proia admitted a "small to modest uptick in [auto loan] delinquencies" in the third quarter and said GMAC is closely monitoring the portfolio (whew!). "We have taken some steps such as reducing the production of non-prime loans in auto finance. We have also expanded the collection force and we have placed an increased emphasis on the initial verification of applicants, especially those in the lower tier." What was that about escaped horses and barn doors? Oh, and GM stock dropped to a 17-month low.

I remember when Mercedes, BMW and Volkswagen were all subsets of a larger brand: "German car." Although Mercedes best exemplified what is now called the moniker's "mindspace," all three German manufacturers were known for selling better-built cars than American machines. And don't tell me they weren't. Read Arthur Haley's seminal work "Wheels" and you'll appreciate Detroit's horrifically lackadaisacal attitude to product quality during the 60's and 70's. Suffice it to say, the exploding Ford Pinto was neither a surprise nor an aberration. When VW went native, becoming the first foreign manufacturer to plant its factory flag on American soil, the results were, initially, disastrous. Fortunately for VW, the brand's German car rep was so strong the company survived its own inability to build quality products on U.S. soil. And then Mexico. And Brazil. These days, everyone builds cars everywhere. Although globalisation has forced Americans to build better cars, I reckon it's removed something important from the car branding equation. Can Alabama or South Africa build a world-class automobile? Of course. Is the result something less than a "real" Mercedes? At the risk of pissing off the entire planet, I'd say yes. I can tell the difference. In the same sense, I can tell a "real" Cadillac from a Sigma-platformed, Nürburgring-fettled, European sports sedan wannabe. Is the difference all in my head? Of course. Where else would it be?  

To be fair, every automaker and their mother is running some kind of year-end sale in the U.S. market; offering incentives, cash-back, discounts and finance deals to delay the deleterious effects of the downturn in new car sales. But GM's "Red Tag" sale is kind of special, in that it offers all of these deals in different amounts to different brands depending on the model and/or the model year. The passive construction workers at the Wall Street Journal describes it thus: "Dealers will use red tags on selected vehicles to advertise a lower price than what typically is asked. The discounted price includes a so-called factory-to-dealer incentive of as much as $1,000 on certain 2008 models, and is combined with other low-interest or cash-rebate offers that in rare cases are also available. On the remaining stock of 2007 models, GM is offering cash rebates or no-interest loans spanning five years in most cases… Chevrolet, Pontiac, Buick, GMC and Saturn products are covered under the program. GM's Saab and Cadillac brands are holding separate campaigns that revolve around the holidays." Why so much confusion? "GM generally has backed away from offering broad and sweeping incentive campaigns that make it appear the company's entire portfolio is on clearance." Even though it pretty much is.

Bob Lutz is a gift. The Car Czar’s uncanny ability to spout uninformed, arrogant nonsense makes analyzing GM’s corporate confusion a slam dunk. Unfortunately, the mainstream automotive press prefers to proffer a protest-free platform for Maximum Bob’s maximum BS. So be it. We can still read between the lines. In this case, Automotive News [AN] blesses us with a bit of Maximum Bob raw. It’s deeply worrying stuff.

Launched in 1998, Volkswagen's "New Beetle" was a solid hit– despite woefully inefficient interior packaging, a range of meh engines fitted in the wrong (right?) place (the front) and distinctly non-German provenance (hecho en Mexico). In the intervening nine years, nada mas, save the introduction of another meh engine in the thirsty and slow I5. Our resident photochopper Avarvarii sends news that J. Mays' retro homage to the iconic original is finally set for a redesign. Mr. A advises us to look closely at his artistry for the changes, which center on improved interior space and a strange desire to ape the new Scion xB's gangsta-style chop top. Yes, yes. Very nice, in a Yo! Yo! kind of way. Let's hope it sits on something a bit more modern than Ye Olde Golf Mk IV platform. And where's the damn diesel? Fit an oil burner into this empty nester's cutesy tootsy nostalgia-mobile and THEN Bug sales will reignite. 

[For more Avarvarii photochopistry, click here.]