Toyota’s announced that Canadians will no longer have to spend $30k to import a grey market Scion xB from The Land of the Free. Soon they can overpay for a Scion at their very own local Toyota dealer. Maybe. In 2010, Toyota will open Scion sub-stores at Toyota dealers in Toronto, Montreal, and Vancouver. Unfortunately, Toyota seems to be sticking with the “urban youth music snowboarder DJ myspace iPod tuner culture” marketing image, rather than the “people that don’t have a ton of money but want a practical, reliable, relatively fuel efficient Toyota.” The Scion that does do well with the youngins: the aging tC – which hopefully will be replaced by the time Scion launches in the Dominion. Overall, Scion should have good prospects for our neighbors to the north, where “hatchback” and “downmarket econbox” aren’t synonymous. While Toyota of Canada has nothing to say about whether Canada will get the forcoming iQ – heading to the stateside as a Scion – will come to Canada, you can bet your zimmer frame on it.

According to Motor Trend, none other than Maximum Bob Lutz (or his mouth, which is independently operated) was behind plans to convert the C7 Corvette to a mid-engined layout. And from certain perspectives (albeit not the traditional one) such a move would have made a lot of sense. Besides putting Ferrari on notice, a mid-engined ‘vette would be easier to convert to a fuel-saving cylinder shutoff system, since the current front-engine, rear-transaxle layout necessitates a seperate clutch to disengage cylinders. The extra weight of a mid-engine cowl and the complication of reeingineering the entire platform has killed plans for a mid-engined Corvette, and GM has pushed the C7 model release back to 2014. In other words, unless GM seriously gets its shit together ASAP, the current ‘vette could be the last model ever made. In any case, the C6 will likely be the last V8-only Corvette, since CAFE standards will likely necessitate a V6 base engine. And you thought a mid-engined Corvette was sacrilege…

“Their overriding challenge is: How do you manage eight different brands?” Well exactly. Dan Gorrell, founder of consultant AutoStratagem, understands that there’s only so much GM can do to promote any one brand or model when there are eight (minus HUMMER seven) hungry mouths (with over 40 models) to feed. No news there. The General’s inability to to trim its American ambitions has long passed the point where they can do much of anything about it (i.e. close or sell brands)– at least without without declaring C11. So the wind-down of what was once the world’s largest automaker continues on all fronts. Advertising Age reports the damage: “General Motors Corp. plans to cut its digital-media budget after dramatically increasing it in the past few years, the automaker’s North American marketing chief told Advertising Age.” Cutting as in no replacement. The Academy Awards are gone. GM Style at the LA and Detroit auto shows is gone. The Super Bowl is gone. So how much of GM’s $2b+ ad spend is left? GM’s Marketing Maven is characteristically cagey. “Mr. LaNeve said last week that GM has already implemented more than half the ad spending cuts it planned for the remainder of 2008. When asked where the reductions were, he said, “It’s 100 things. It’s a consolidation of promotions and getting out of some. It’s production, media, agencies, outsourcing contracts, structural costs and people.”

First, Toyota decides it needs a U.S. luxury brand. It builds an S-Class killer, then repackages its mass market products for upmarket tastes. Then ToMoCo decides it needs a U.S. “youth brand.” It imports quirky, customizable, low-cost Japanese market vehicles; then sells them to older people (and repackages them for their in-house designers’ college professors). Now the world’s largest automaker’s talking [again] about launching a Prius brand. “You could have a series of derivatives under the Prius brand name that would allow you to market product at a much lower cost,” Jim Lentz, Toyota’s North American sales chief, told the Reuters Autos Summit in Detroit. “There is a definite desire for us to do that.” Internally or externally? Or was this announcement simply designed to steal some thunder from GM’s Volt-shaped one hundredth birthday bash? After all, on the same day that GM said they wouldn’t make money on gen 1 of their plug-in electric – gas hybrid Hail Mary, Toyota said they’re aiming to sell 175k Priora stateside this year. Before the Ole Miss Prius factory comes on line. “Overall, Toyota aims to sell more than 1 million hybrids per year globally by early next decade, and would need to sell more than 600,000 hybrid vehicles of all types in the United States to meet that target, Lentz said. “To do that effectively, I think we need dedicated hybrids and I would prefer them under the Prius name,” said Lentz. So what happens to the hybrid Camry, Highlander, LS, etc.?

I never considered the California Air Resource Board (CARB) a motivating force for Chrysler’s Viper model sale– until I read this WardsAuto story. “The new minimum CAFE standard of 35 mpg (6.7 L/100 km) in 2020 and additional pressure from California and 15 other states to limit carbon dioxide is part of what may force Chrysler LLC to jettison its Viper high-performance model,” Wards reported after a chinwag with GM Car Czar Bob Lutz. “‘Setting lower CO2 limits would equal setting CAFE at 43 mpg (5.5 L/100 km),’ Lutz says. ‘This is why the sale of the Dodge Viper by Chrysler makes sense, because anyone selling fewer than 50,000 vehicles annually would be exempt (from fuel-economy requirements).'” The Car Czar’s got a point! OK, OK, so California bill AB1493 sets a fleet exemption of 60k vehicles. And the EPA has denied CA the waiver they need to implement the law. And the real– and really bizarre– threat is that each state would have different fleet-wide requirements, depending on the model mix in that state. Never mind. “So if someone else bought Viper,” Bob bitches. “They could sell to capacity, but Chrysler couldn’t. This is why we are concerned about Corvette.” Bob blames the hypothetical threat on hypocritical Hollywood environmentalists. “The reason California set the exemption for less than 50,000 units is that it would mean the Hollywood folks could keep driving their Lamborghinis and Ferraris. Porsche could sell 11-mpg (21.4 L/100 km) Cayennes, but we couldn’t sell 20-mpg (11.8 L/100 km) Chevy Tahoes.” [Thanks to KixStart for the link.]

Scion is still pushing the individualist, customized youth brand schtick. The melodramatic ad above– which one can only hope is meant in a tongue-in-cheeck tone– once again flogs the tuner car image and notion of a Scion owners’ community. There’s no question that Scion’s lineup has some character– even if the linch-pin xB was diluted beyond recognition last year. But pursuit of the Fast and the Furious set is so five years ago. A company with clever small cars, small engines, decent MPGs, practical hatchbacks, and low no-haggle MSRPs should be selling itself as just that. Or, to quote former Scion exec and current Lexus exec Brian Bolain, “If we could relaunch Scion, I wouldn’t ever have called it a youth brand, because it’s a kiss of death.” So why didn’t the ad department get the memo?

Yes, we all hate the alphanumeric nomenclature, snaking over the auto industry like poison ivy. And with only so many letters and numbers, we always expect some repeats (Lexus LS/Lincoln LS, Chrysler 300C/Mercedes C300, BMW X5/Mazda MX-5). Has Hyundai gone a character too far? The car we North Americans know as the Veracruz is being introduced to Europe as the ix55. Not only is this a bizarre thing to say down at the pub (Oh, I drove my ix55), but it’s awfully close to, well, a lot of other cars. Hyundai’s new scheme for European car names is to begin with the letter “i,” because if it worked for Apple, it’ll work for them. Or Mitsubishi’s “i car.” The X we can assume refers to this vehicle being an AWD crossover, and of course the 55 is because it has a 5.5 liter V8. Erm, no. Instead, it sounds to me like a mish-mash of BMW (xDrive 50) and the 55 immediately conjurs memory of a trillion Mercedes AMG cars with 55 at the end, from C55 to E55 to S55 to CL55 to CLK55 to ML55 to G55). Besides, what was wrong with Veracruz?

It was Marx (Karl, not Groucho) who said that history repeats itself-– albeit the first time as tragedy, the second time as farce. Between the World Wars, Talbot built cars that were among the most expensive in Europe, and amongst the most beautiful ever. The post-war period of austerity was hard on Talbot; the company was integrated into what was later the European affiliate of Chrysler. When Peugeot bought Chrysler’s European operations in 1978, it unearthed this proud but almost dead brand, and sold some undistinguished cars for a few years (until it changed its mind about the whole idea). Fast forward. According to Automobilwoche, PSA Peugeot Citroen is now planning the add further disgrace to injury. Renault-Nissan’s Dacia marque of superaffordable cars is a runaway success, which Peugeot would like to emulate without damaging its present brands. So it’s thinking of importing cheapo third-world-built cars and marketing them under the Talbot name. Aaargh! Dacia is a great idea whose time has come, managed with considerable skill. But some marketing people have no respect for historical significance. Why not just think up a new brand name? Personally, I’d rather drive something called Guglhupf or Superfromage than a made-in-India Talbot.

Rumors have been flying for quite a while that Cerberus would sell off parts of Chrysler. Most of the conjecture centered around Jeep being the first to go. However, Automotive News [sub] reports the Dodge Viper could lead the exodus through the gates guarded by the three-headed dog. This morning Chrysler said they're "exploring strategic options for the Dodge Viper business… as the Company focuses on enhancing its core business and leveraging its assets." CEO Bob Nardelli doesn't deny they're considering the sale. "We have been approached by third parties who are interested in exploring future possibilities for Viper." Then, proving he's unable to speak in any tongue but ManagementSpeak, he added, "As the Company evaluates strategic options to maximize core operations and leverage its assets, we have agreed to listen to these parties." But fans of the hotrod Dodge needn't feel betrayed. "Viper is an integral part of this Company's heritage. While this is a strategic review, our intent would be to offer strong operational and financial support during any potential transaction, in order to ensure a future for the Viper business and perpetuate the legacy of this great vehicle." In other words, "we're going to sell the IP rights to it lock, stock and sidepipes then market the remaining dealer stock as 'last of a legend' to get every cent we can out of them."

Ford says it's not killing Mercury but their actions indicate otherwise. In the past two years, The Blue Oval Boyz have cut their ranks by 400 dealers, mainly by merging the three brands under one roof in many areas. Automotive News [sub] reports that starting this week, Ford execs will tell the remaining stand-alone Lincoln-Mercury dealers their latest and greatest consolidation plan for rolling them into Ford dealerships. The dealers aren't overly pleased with the prospects, but they see the handwriting on the wall. While Ford says they stand behind the Mercury brand and will give it a new small car, "one Ford insider told Automotive News that company executives want to make it clear to dealers that no major influx of new product is coming for Mercury." Once the dealer consolidation is done, you can just about bet that the Mercury brand will be starved for product, with all of the new models going to Ford or Lincoln. Then it's just a matter of time before Mercury just fades away like DeSoto in the early 60s.

Hang around Herr Farago long enough and you'll eventually hear, "The Brand isn't everything; it's the only thing." Of course I've made a pretty good career out of disagreeing with Farago about nearly everything. See, I believe that products trump brand. Case in point, Porsche. The Cayenne was a brand killer, right? A travesty of all that Porsche stands for and all that Porschephiles believe in. And I agree with them totally. Except for the Turbo model, a vehicle so good in so many ways that I want one. And remember, to the brand faithful, the mid-engined (and therefor sacrilegious) Boxster is just as terrible as the Cayenne, even if the little roadster is more fun to drive than big daddy 911. Or how about Volkswagen. Personally, I've never cared for many VWs. Sure, I like GTIs just fine but aside from (some of) those, pass. However, I loved the brand defying Touraeg V10 TDI and I lust after a Phaeton. The latter being one of the best cars ever made, badge be damned. And I'm fine with that. And how about Buick? They've got their brand down pat (old people and old people who golf) but I'm not interested in any of their products, even as loaner press cars. But what about Jaguar? A friend of mine asked for my advice on a car. Turned out he decided his 12-year-old Plymouth Breeze just wasn't saying all the right things about him, and he wanted a vehicle that broadcast his socio-economic achievements to the world. "So I'm thinking something upmarket, like an Audi A4 or a Jaguar X-Type." I was taken aback. Jaguar X-Type? Why on earth would he want one of those? "It's a Jaguar, they're classy." Really?

Memo to car manufacturers: naming contests don't work, except to grind my gears. It didn't work for Alfa Romeo, who had to ignore contest results for the car we now know as the MiTo (fan chosen name was Furiosa). And now General Motors has revealed that the production name of the Pontiac G8 ST concept – a "sport pickup" version of the Australian Pontiac G8 – will be the Pontiac G8 ST. Jalopnik's Jalops went so far as to hand out buttons calling for an El Camino revival. While that moniker might not have been GM's best call– it's a Chevy name– neither is G8 ST. Then again, with the G8 ST being a niche within a niche, big diff (no LSD implied). The name choice really does show, however, GM's incredible ability to minimize the impact of a car when it comes to market– especially one they've been talking up for the last twenty-some years. This really smacks of the Astra: an overseas product that car lovers craved that GM eventually pushed it into the corner. Same with the Commodore-cum-G8 (at least that one got a few TV commercials). And when it goes on sale in late 2009 (another year wait? are they kidding?), the G8 ST sport truck is likely to be yet another victim of GM's monumental ADD.

We've been helping to circulate rumors of possible Volvo sales recently, most of which have centered on Chinese firms as the potential buyer. All the while Ford has insisted that Volvo isn't for sale; statements which we've treated with the incredulity that all pre-sale denials deserve. But it seems Ford's sticking with the Swedes. In a post on his Autocar blog, Hilton Holloway describes Volvo's 20-year quest to emulate Audi's upmarket appeal, and its utter failure to escape its stodgy image. One Volvo exec tells Holloway that "he wished he had BMW's customers, who would tick all the options boxes and update their car every couple of years." Obviously that's not about to happen anytime soon. So FoMoCo is set to dial back Volvo's upmarket ambitions and reposition the Gothenberg brand as a VW-style "upmarket mainstream" marque. This means building cheaper cars that are "more closely related to Ford models" so that U.S. production can boost Volvo's profit margins. It also means Volvo wants to hoik sales from 420k to 600k vehicles per annum. The new Volvos could be green lighted as early as January. With such short development times, look for Volvo to descend into the bowels of brand engineering with its new generation of high-volume models. It could well be "one Ford" too many.

ToMoCo's fears of "big company disease" seem most credible when looking at its non-Toyota brands. While Scion fails to capitalize on increased demand for smaller, more efficient cars, Lexus is struggling to adjust to the changing market conditions. Automotive News [sub] reports that Lexus has relied too heavily on SUV and crossover sales, allowing its car offerings to wither on the vine. The IS isn't due for a restyle until 2012, the GS and ES models are two and three years away from redesigns respectively, and the aging SC430 is [still] dead in the water (1,373 sales year-to-date). On the performance front the GS-F's on hold and the LF-A development project has failed to hit performance benchmarks in line with its $160k price tag. Delaying the LF-1 production model until 2010 seems a foregone conclusion. Even then there's no guarantee that there'll be a market for Lexus' halo model. No wonder, then, that Lexus is amping-up its hybrid options. Not only does "the power of H" give the brand unique cachet, but it also returns hefty profits on ToMoCo's hybrid platforms, helping the Japanese automaker drive down costs on Toyota-branded hybrids. 

The Jaguar XF was meant to be a clean sheet car for Jaguar – a reboot of the brand, to use filmmaker parlance. With that in mind, Jaguar was planning on ditching the 'Leaper' hood ornament altogether. But old habits die hard, as I observed in my local shopping mall today. Presumably, too many people said to Jaguar "But it's supposed to have a leaper on the hood." They made their bed, and now they can lie in it. It looks horrible and out of place on the XF, which is a sleek and modern car. While cars themselves and many components tend to be phallic, this is just a little too far. Even if the XF's front end is a little bland, you don't want people to immediately know it's a Jag if it's going to look silly like this. But what's most important here is the lesson in listening to customers. Sometimes, manufacturers and dealers need to just say no.