According to KHOU, police in Colleyville have printed up "Stop Thief!" signs to battle car thieves. The signs, designed to hang from a cars' rear view mirror, tell would-be thieves there are no "valuables, money, computers, purses or briefcases in this vehicle." (Ah, but are there?) Chief Tommy Ingram admits the signs won't actually discourage thieves; they'll remind drivers to hide their valuables. KHOU also reports that back in Washington D.C., Transportation Secretary Mary Peters is urging Congress to allow Mexican trucks to continue driving into the U.S., 'cause halting the trucks would hurt agribusiness. (Opponents fear U.S. job losses and safety issues.) And good news if you're a Texas car dealer. The state's Vehicle Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program (VRARAVRP) is a hit! The Star-Telegram reports that The North Central Texas Council of Governments, which administers the program locally, is adding extra phone lines and personnel to deal with the flood of interest since the state kicked-in additional money (up to $3500 towards a new car). Texas taxes hard at work.

Ford is finally addressing its bloated dealer network through a new program of store buyouts. Automotive News [sub] reports that FoMoCo's offering a one-time "go on take the money and run" deal to the 81 members of their dealer development program. Ford will refund the dealers' investment in their Ford or Lincoln-Mercury store– even if it's worth less than their original ante. In a letter to dealers, development program director Jamy Hall wrote that "Ford is taking this action in an effort to ensure a sustainable dealer development program." However, Ford's action is raising some eyebrows; the majority of participants in the program are minorities. One dealer said he will refuse the offer because "it's just targeted at minorities because they're low-hanging fruit." Ford rejects the suggestion. They also declined to say how many dealers in the development program they expect to avail themselves of a "graceful exit" from the Ford franchise network.

Back in the day, Toyota used local businessmen to find dealers and deal with local politics. ToMoCo eventually bought its distributors, save Southeast Toyota in Florida and Gulf States Toyota in Houstonm (who still control prices, model mix and availability in 10 states). In the '90s, Southeast shelled-out more than $100m to dealers who claimed the distributor was forcing them out of business. CNNMoney reports that Gulf States is now under the gun for "improperly encouraging" executives from a large dealer group to leave their company and buy a lucrative dealership in Dallas. Toyota continues to defend its distributors, claiming they "bring a culture of innovation, responsiveness and agility." What's more, consumer prices "are the same" or "even more competitive" than prices in regions where there are no distributors. If there's anyone who can give your perspective on dealing with a Toyota distributor, please contact us.

What starts out as the [now] usual report on the huge number of high-risk sub-prime car loans– "According to Power Information Network, 1.85 of the 9.6 million customers in 2006 who leased or financed a new car were subprime borrowers or consumers with weak credit"– suddenly swerves towards Uh-Oh Town. The CBS5.com report highlights BMW Financial lease holder Vivian Snyder. A salesman inflated Snyder's income ($2500) on her credit application by 150 percent. The reporter then secured the loan application and discovered that "Snyder's income had been changed once again – from $6,000 to $8,600, this time without her knowing. An "8" had been placed before the "6" and "0"s tacked at the end." When confronted, Freemont, CA AutoNation General Manager Larry Long claimed the change had been made in Snyder's presence, and then blamed BMW Financial for approving the lease. "We have investigated this matter internally," Bimmer spokesmouth Martha McKinley insisted. "And we are satisfied that BMW Financial Services acted appropriately at all times during the application and credit review process." Yes, well, AutoNation eventually ate the lease and "according to consumer advocate Rosemary Shahan with Consumers for Auto Reliability and Safety the practice is common. 'This is an epidemic of loan applications being falsified. In fact, the model for the meltdown we're seeing in real estate and home mortgage lending was auto lending.'" [thanks to buzzlightyear for the tip]

Infiniti is, for all intents and accounting purposes, a U.S. brand. Last year, Nissan's luxury division shifted American customers' expectations– I mean sold brand fans 127,038 new vehicles (93,717 cars and 33,321 SUVs). And now Infiniti's heading across the pond to convince European buyers that, uh, what's their tagline again? It's not on the press release. Or the Euro-press website. Uh-oh. Despite a deeply worrying lack of branding, Infiniti is set to open some 80 stores throughout the Eurozone. The world's snobbiest car market. Where logical competitor Lexus has gained about as much traction as a Prius attempting a hill climb in a blizzard. To gauge Infiniti's chances of carving out a niche in the home of the luxury car, I rang-up Infiniti Euro Comms. Director Wayne "No Comma" Bruce for the inside dope on the dealers and the marque's plans for luxury conquest sales. [Podcast below] Bruce reckons sporty value-priced products, exclusivity and bespoke customer service will carry the day. Yes, well, the longest journey starts with a single FX: the new model's ready for its Geneva debut. It'll be the first new Infiniti revealed outside the U.S. Infiniti's going to need that kind of commitment– and then some– to make this venture work. Meanwhile, the brand is being "nurtured" in the Middle East.

Two weeks ago to the day, Frank Williams provided a heads-up on the impact of the coming credit crunch on new car sales. Automotive News [AN, sub] now reports that some small regional banks have stopped making loans through auto dealerships. Even the big boy's auto loan departments– Chase Auto Finance, AmeriCredit Corp., Wells Fargo Auto Finance, Mechanics Bank and Sovereign Bank– are reining-in their metaphorical horns. And that's led "many would-be consumers to buy cheaper models, or purchase a used vehicle instead. If customers with shaky credit can get loans at all, often they must make a bigger down payment, pay higher interest rates and accept loans of shorter duration." And here's the kicker: "Consumers with subprime credit ratings buy nearly 30 percent of all new vehicles." Oh wait, that's not the kicker. This is: "Dealers are more dependent than ever on automakers' captive lenders. The captives appear more willing than independent lenders to make subprime loans in what is shaping up as the worst year in a decade for new-vehicle sales." Which will be true (the loan part) right until it isn't. And if GMAC goes down, look for all Hell to break loose.  

Yup, there it was, buried in an Automotive News [AN, sub] story announcing that Pontiac dealers aren't going to get a Trans Am version of the new Chevrolet Camaro. You know, the Canadian-built rear wheel-drive muscle car that's due out this spring. Sorry, I mean fall. Winter. OK, February '09. Anyway, GM told a meeting of B-P-G (Buick, Pontiac, GMC) dealers that "new legislation requiring vehicles to reach a fleet average of 35 mpg by 2020" has plucked the screaming chicken. In fact, Pontiac "might not end up as GM's performance division." [NB: I think that means that none of GM's eight U.S. brands gets a performance remit.] "The plan is being tweaked because of the gas situation," revealed Lynn Thompson, owner of Thompson Motor Sales in Springfield, Mo. "I hope they don't give up on performance because they don't have to. You can use four-cylinder engines to achieve incredible power." To placate any B-P-G dealer deluded enough to expect something roughly akin to coherent branding from GM, the American automaker also announced that they're unleashing 12 new or special-edition vehicles over the next 20 months. (Sneak peak! Get ready for a special-edition GMC Sierra pickup called "Pro Grade.") In case you're wondering what separates a Pontiac from a Chevy, Buick or Saturn (or anything else) now that the former "We Build Excitement" division isn't building excitement, I have no idea. Does anyone?

When the President of Toyota's NA Ops tells his dealers that the good times "are temporarily on hiatus," you know the U.S. new car market is in BIG trouble. The AP [via the International Herald Tribune] paints a bleak picture: "Jim Lentz told the American International Automobile Dealers Association annual meeting that even strong Toyota dealers are reporting customer traffic down as much as 60 percent this year." Like his opposite numbers in Detroit, Lentz also believes– or at least says he believes– that the U.S. new car market will recover towards the fourth financial quarter, finishing the year at some 16m units. He also predicted that Toyota sales will rise regardless, continuing to buck the declining market. (Toyota sales rose three percent last year, despite a 2.5 percent decline in U.S. new car sales.) Thinking longer term, as Toyota tends to do, Lentz predicted good times ahead. "It is possible for the auto industry to hit 18 million sales annually sometime later in the next decade." 

Given the enormous and ongoing discrepancy between GM's execs' statements and on-the-ground reality you'd think the media would understand that nothing, nothing GM says should be taken at face value. Nope. Automotive News [AN, sub] kicks-off with the PR pleasing headline, "As Malibu soars, Impala sinks amid GM cuts to rental fleets." Showing some semblance of journalistic integrity, AN lists the Impala-related damage and ties the model's downturn to the up-tick in sales of its logical competitor. "While January sales of the new Chevrolet Malibu mid-sized sedan rose 57.9 percent from January 2007, sales of the larger Impala fell 30.6 percent… The Impala had been a hot seller. It finished 2007 up 7.3 percent to 311,128 units." Chevrolet Spinmeister Terry Rhadigan provides the usual tut-tut, pish-posh, no worries Mate: "We're still doing the methodical reduction in daily rental, and that is reflected in that Impala number. Huge progress is being made. You'll see some decline in numbers, and don't be alarmed. It's all part of our strategy." Oh really? So, Terry, what exactly are those Impala fleet numbers? "Rhadigan would not give the Impala's retail and fleet sales totals." Clearly, Woodward and Bernstein don't have nothin' on AN. Anyway, Chevy store own John LaSorsa ends the piece by backing-up the suits. "The Malibu has such style it's pulling in an import customer." Well, that's one…

MSNBC reports that GM's placing its entire inventory of certified pre-owned (CPO) cars (from 3,900 dealers) on eBay. GM says its still working with eBay on developing the site. But don't expect any sort of direct, online transaction. If the eBay sub-site works along the same lines as Autotrader.com and Cars.com's versions, you'll have to contact the dealer through the website (which earns a referral fee). Will eBay offer any additional guarantees along the lines of the protections offered buyers of privately owned vehicles (e.g. free insurance and seller ratings)? Don't hold your breath…

Man, we are so going to the National Automobile Dealers Association convention next year; you know, if they let us in. Where else would you hear Ford Prez Mark "Tool Time" Fields say "Mercury has a place in our brand portfolio" and then refuse to assure the brand's dealers that Ford won't kill it? In fact, the AP [via MLive] reports that "Ford executives" told "a group of dealers that "new Mercury products are coming." Such as…? A Mariner hybrid? A Mercury version of the Edge? [crickets chirping] Let's try that again. "When asked what he would tell dealers who fear the brand could be discontinued, Jim Farley, Ford's group vice president for marketing, said they should look at the new products." Such as…? [cue: tumbleweeds] "They wouldn't give us any definite answers," revealed Steve Downing, owner of a Lincoln-Mercury dealership in Yuba City, Calif. "Obviously the future's with Lincoln." Too true Steve, but don't worry. As Fields says, it's all part of a "process." ""Any good business on a continuous basis looks at their portfolio. Any good business does that, not just automotive, and that's part of our process."

The Tahoe Hybrid. From gas friendly to gas-free. FlexFuel. The plug-in electric – gas Chevy Volt. The [entirely theoretical] hydrogen fuel cell Cadillac Provoq. It's clear that General Motors has finally embraced a low-emissions, scarce fossil fuel future. Provided, that is, you're as gullible as a Barry Bonds supporter. While GM is pushing itself as the second coming of Al Gore, The General's CEO sent a very different message to the National Automobile Dealers Association in San Francisco. According to Yahoo! News, Rick Wagoner asked GM's immense network of dealers to aggressively oppose state-specific greenhouse gas legislation that exceeds the restrictions mandated by the U.S. Congress. While Wagoner's influence may be falling in Washington, his dealers still have a lot of pull at the state level. "Dealers are very effective in the political process because we don't have a plant in every state," Wagoner boasted. "We have dealers in every state." Wagoner's biggest fear: California and its copycat states' air quality rules will trump federal regs, as they already do in several areas (including diesel particulate standards). If the need for "50-state compliance" extends into CO2, "We're not going to be able to accomplish everything that we otherwise could," Wagoner noted, vying for TTAC's understatement of the year award.

According to Automotive News [AN, sub], GM's top quality executive is touring the country telling dealers that a large percentage of consumer dissatisfaction with the quality of GM products comes down to slack dealer prep. No really. Jaime Hresko said that "40 percent of the problems that show up on GM quality reports from sources such as J.D. Power and Associates are related to vehicle controls and settings — not manufacturing issues that stem from vehicle design or assembly." Hresko is asking GM retailers to complete a thorough pre-delivery inspection of "issues that routinely irritate customers and may poison satisfaction reports." We're talking "memory and personalization features," including seat and mirror settings, clocks, radio stations, computer and navigation system settings." Hresko's exhortation is not without reason. As TTAC has pointed out before, J.D. Power's Initial Quality Survey (to which Hresko was alluding) is inherently flawed, measuring little more than consumer expectations and doing so over a ridiculously short time period (90 days). Still, maybe GM's top quality guy should be concentrating more on his side of the ledger. I mean, any study that names the Pontiac Grand Prix the best anything (Best Large Car) can't be all bad– you know, as far as GM's concerned. 

The National Automobile Dealers Association (NADA) shindig in The City by the Bay is all abuzz about domestic manufacturers' "dealer consolidation." As we've been saying for the last two eons, The Big 2.8's obese dealer network (GM still has over 6k franchisees) is a millstone around their collective neck, forcing them to spread their corporate resources paper thin. Now that The Big 2.8 are supposedly addressing the problem by "combining sales channels" and "helping dealers merge," it should be noted that the vast majority of the "credit" for lowered domestic dealership counts goes to… bankruptcy. The simple truth is that hundreds and hundreds of The Big 2.8's dealers are failing, closing and disappearing. Meanwhile, what "carrot" can the automakers offer for consolidation? Cash? Hot models? Er, no. Ah, but Chrysler's found a stick! Automotive News [AN, sub] reveals the hidden hand behind "project Genesis:" "Chrysler LLC plans to prune its product lineup to the point that only dealers carrying all three of its brands — Chrysler, Dodge and Jeep — will have a full vehicle line." Ex-Toyota Prez, current Chrysler Veep Jim Press outlined the threat. "If (dealer) consolidation doesn't occur before the product goes away, it will be more difficult for dealers to get what they want." Is that a threat? Is that legal? Inquiring minds want to know.

So, here's the latest chapter in the "GM wants to consolidate all its brands and build multi-branded mega-stores– oh wait, no we don't" saga. GM CEO Rick Wagoner signaled his faith in the company's tri-branded (down from octo-branded) consolidation effort by blessing the opening of a new Henry Brown Buick-Pontiac-GMC store in Gilbert, Arizona with his presence. According to The Arizona Republic newspaper, Wagoner made no bones about the reason for his visit. "The three brands at Brown's dealership have been 'channeled' together in about 40 dealerships nationwide, Wagoner said, with about 100 more to come. The Gilbert dealership is one of the first to show the new look of the stores." Wagoner didn't do a Mulally– sell a carefully prepared customer a car– but he did praise Brown as "one of the best in the business." "One of the best." Nice.