A few days back we asked "Does God Hate Chrysler?" We're beginning to think that was more than just a rhetorical question. Regardless of your theological beliefs, it's obvious Chrysler has pissed off someone on a higher plain of existence. Hot on the heels of broken equipment, bankrupt suppliers and assembly plant fires, a "mechanical problem" forced Chrysler to shut down their main office in Windsor, Ontario. Mlive doesn't identify the culprit, but they revealed that the utility company has cut off the building's water and power. Chrysler hasn't said how long it'll be before their Canadian HQ is back in operation. Farago thinks there may be a terrorist/disgruntled employee lurking behind the scenes. I'm thinking Bob Nardelli needs to hire an exorcist.

The American Family Association has announced the end of its two and a half year long boycott of FoMoCo. OneNewsNow.com, which is owned by the AFA, brings glad tidings of the boycotts success in keeping Ford a good, old fashioned, bigoted company. Ford no longer gives cash incentives to homosexual groups based on the purchase of a vehicle, it has ceased to make corporate donations to homosexual organizations that engage in political or social campaigns promoting civil unions or homosexual marriage, it has stopped giving cash and vehicle donations or endorsements to homosexual social activities such as Homosexual Pride parades, and it no longer buys ads on homosexual web sites and homosexual media outlets. The AFA credits the 780,000 who signed the "Boycott Ford" petition with bringing about a change in Fords corporate philosophy. "During the time the boycott was going on, Ford averaged a drop of eight percent in sales each month," says AFA founder Don Wildmon. "Was the boycott entirely responsible for that?  No, but it did play a significant role." Forbes quotes Ford sources as saying  the automaker had "decreased overall charitable spending and advertising in recent years because of financial losses" and "its principles haven't changed and that it is committed to treating everyone fairly."  

Analysts tell the Wall Street Journal that the low end of the classic car market is getting hammered (so to speak) by sagging real estate values. "Home equity was the ATM out of which a lot of people were withdrawing money to have fun,"  says McKeel Hagerty. The CEO of Hagerty Insurance Agency says the market for mass produced "enthusiast cars" in the $30k to $50k range has tanked by two-thirds in the last two years. Another factor: age. Apparently, the people who pined for cool-but-not-collectible American iron of the 50's and 60's during their youth are getting older and less interested. The president of Hyman Limited Classic Cars claims the high-end of the market remains unaffected by the credit crunch; as collectors who buy hand-built, limited edition classics don't need to mortgage the mansion to pick-up a toy or twelve. Wordsmith Dan Carney would like to leave you with the impression that today's depressed low-level market makes it a good time to buy a classic, but we remember the price crash of the late 90's and reckon the down economy will sink the market even further.   

The Windsor Star reports that fire fighters have extinguished a blaze at Chrysler's Windsor, Ontario plant (Chrysler minivans). The fire appears to have started the plant's paint shop, also the source of a recent fire at Porsche's Zuffenhausen factory. The fire was noticed at about 12:30 local time, as smoke and flames rose from the roof of the factory. According to CAW officials on site, was evacuated without any injuries to workers. "The evacuation system worked," said CAW Local 444 President Ken Lewenza. "Everybody's out of the workplace. We're now in the process of getting the plant operating." Officials estimate that the plant will return to normal production by later today. We've received no confirmation of rumored sightings of Cerberus executives with gas cans and copies of insurance contracts in the area.

Fiat is [still] planning on reintroducing its Alfa Romeo line to the United States "sometime after 2008." To ensure profitability in the face of a weak reputation for quality dollar and a strong Euro, Reuters reports the company will/would have to manufacture at least some of its cars outside Europe. Fiat CEO Sergio Marchionne has indicated that Mexico is at the top of the list, although a Confederate tax break deal may be doable. Eventually. "We can think of producing [in the Americas] in the medium-long term," Marchionne opined. Which Alfa models would be produced or sold stateside remains equally unknown (unknowable?). The tasty 8C is likely to lead the charge; it's just about the only Alfa whose price premium can overcome the exchange rate. Meanwhile, big changes are in the air at Alfa. New CEO Luca De Meo says he hopes to "restore Alfa Romeo's place among premium brands by the time of its 100th anniversary on June 25, 2010." With new versions of Alfa mid- and full-sized sedans set to appear around that date, we reckon that's when we may see the Italian automaker's wares stateside. Or not. 

In recent years, Ford has sold off valuable assets, including Aston Martin and Hertz Rentals. They're currently flogging Land Rover and Jaguar to India's Tata Motors (fingers crossed). Although Ford's got plenty of cash for the time being– having mortgaged itself up to the eyeballs in '06 for $23b– the American automaker's just about out of stuff to sell. So is Ford is going to have to face the music and… start selling cars? Analysts quoted in the International Herald Tribune say you got that right. John Casesa claims Ford couldn't get diddly squat for Mercury (who?), Ford Financial or Volvo. That's because "interest from private equity companies had pushed takeover prices sky-high, but the credit squeeze that began last year has made it harder for those companies to borrow, forcing asset prices down." Oh, and Ford Financial is staring at a credit meltdown and Volvo isn't making any money. In fact, Ford wrote down about $2.4b of the Swedish brand's value in January. So there really is nothing left for Ford to do but make and sell profitable vehicles in the North American market. What are the odds? (Hint: check the stock price.) 

When Chrysler went to court to retrieve tooling from their bankrupt supplier Pastech, the automaker's Director of Interior Purchasing dissed their former "partner's" quality control. Douglas Doran testified that Plastech components had triggered 450 "quality issues" in 2007. Doran drolly described the defect rate as "more than the average supplier." According to The Detroit News, Plastech execs have finally fired back. They claim that parts quality had improved steadily since 2006. What's more (or less), company data shows that there were five times fewer quality issues in the fourth quarter of 2007 than in the same period in 2006. In January of this year, a month before declaring bankruptcy, Plastech reported 26 problems per million parts. While Plastech's suits figure that's below industry targets, analysts counter that it also isnt industry leading. With the only proof of financial malfeasance by Plastech coming from an auditing firm staffed by former Chrysler flacks who refuse to answer our questions, it's beginning to look more like Chrysler squeezed on price, then whined about quality.

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.

VW is planning to replace the Passat and Jetta with cheaper sedans "targeted at U.S. customers." At the Geneva Auto Show, VW Group CEO Martin Winterkorn said VeeDub's also contemplating small cars and perhaps a body-on-frame pickup for the American market. Automotive News [sub] reports the German automaker's pushing ahead with plans to build a factory in the States and have narrowed the site selection to North Carolina, South Carolina or Georgia. The plant will build a Passat replacement designed specifically for the U.S., with a new name and price around $20K. Winkerkorn also discussed other possibilities for the U.S. market: a small car based on the Polo, a family of small vehicles based on the up! concepts and a VW-built minivan to replace the Chrysler Town & Country clone Routan. Oh, and he wants to bring us a next-generation Phaeton, explaining "the Volkswagen brand needs a car like the Phaeton." What is it they say about those who don't learn from history?

According to The Detroit News, the bankruptcy judge controlling Delphi's fate has OK'ed GM's $2.83b loan to its former GM parts division and current bankrupt. Delphi's other investors (save one) had protested the loan, saying the plan was "a brazen attempt to ignore a portion of the contract" and gave GM too much control of its former subsidiary. The judge overruled the protest. He green-lighted the Delphi cash conflagration– as long as The General laundered the cash made the payments through "a fully-owned subsidiary" (providing GM has any left). This stricture would meet the letter of the existing contract by keeping GM's name off the loan paperwork. GM said the ruling was "encouraging," but it's still "studying it." Delphi said the ruling will allow them to emerge from bankruptcy by April fifth, as they had originally planned. Although the ruling will ensure GM's largest parts provider keeps providing parts, GM's liquidity is looking increasing threatened.

CNN Money [via Yahoo! Finance] lists Consumer Reports' (CR) 11 worst vehicles. Not surprisingly, the list is SUV-intensive. In a move bound to anger snow belters, mud pluggers and boat luggers, CR rated all SUVs "as most people would drive them in the SUV category." In other words, without taking their off-road abilities into consideration. Chrysler can't be too happy; they manufacture four of the 11 losers (one Dodge and three Jeeps but no Sebring). GM has three cars on the list, Toyota has two, and Suzuki and Ford each have one. Four of TTAC's Ten Worst Automobiles appear on CR's list. Here are their 11 worst, with scores out of a possible 100. Those with the double ignominy of being on both Consumer Reports' and TTAC's lists are marked with an asterisk (*).

Jeep Wrangler – 17
Hummer H3 (5 cyl) – 27*
Jeep Liberty Sport – 27
Chevy Aveo5 – 32*
Dodge Nitro SLT – 33*
Toyota FJ Cruiser – 36
Toyota Yaris – 36
Suzuki Forenza – 36
Jeep Patriot Limited – 42
Chevy Trailblazer – 43*
Mercury Grand Marquis – 43

Close your eyes. Picture Chrysler products from the last decade that you like. We imagine that your mental list is similar to ours. The 300 (and its derivatives), the Challenger and the Viper. Well friends, the savvy investors car guys over at Cerebus have shuttered the doors on the Pacifica Advance Product Design Center which gave us two of three (hint — not the Viper). Perfect. Chrysler is of course spinning it as a good thing. Here, you have to read for yourself: "Increasingly, we are leveraging resources worldwide, forming new joint ventures and alliances and consolidating operations in order to better achieve global balance. These moves are designed to help Chrysler become a more globally focused manufacturer, with design, engineering, sourcing and a local presence to serve local customers."  Right, they'll be helping out the local customers in California (where one in eight cars are sold in the US) by, wait, what? Bottom line: all future design work will be taking place in Auburn Hills, a plan that has worked marginally for decades.

Ford has spent considerable amounts of money trying to make its North American workforce more cost-effective. Last year's contract with the United Auto Workers (UAW) allowed Ford to hire new workers at lower pay rates, while trimming higher-paid labor through buyouts and early retirements. But when the 54k buyout offers translate into actual gains in efficiency is "anyone's guess." That's the straight dope from VP for Labor Affairs Marty Mulloy [via Wards]. Ford's cost savings are directly related to the number of employees actually taking the buyout offer ('natch), and Ford still isn't saying how many workers are expected to sign up and bail out. Meanwhile, Mulloy says the American automaker will not be making any new entry-level hires this year. That's because five thousand highly-paid Ford workers still languish at the 11 factories once owned by Automotive Components Holdings (ACH), which Ford (in its infinite wisdom) bought in 2005. While Ford wants to sell or shutter the plants by year's end, it has to either hire or buy-off the ACH employees. Folks, it could be years before the Blue Oval's labor costs approach those of Toyota, Honda and other transplant competitors. And Ford's talking about insourcing?

Automotive battery technology is getting better, but will it be ready to meet the growing demand for alternatives to gasoline and diesel fuel? The Economist reports that the vehicle battery market will soon be worth $2.3b. At the moment, lithium-ion is the go-to technology. While lithium is a light, relatively inexpensive metal that maintains charge capacity well, lithium batteries can overheat and explode. Battery developers are experimenting with a variety of materials and blends for the positive electrode: cobalt oxide, manganese-nickel-cobalt, nickel-cobalt-aluminum oxide, and iron phosphate doped with aluminum, niobium and zirconium. As demand soars, expectations mount. General Motors, for one, needs a safe, dependable Li-ion battery for their Volt plug-in hybrid. And they need it now– if they're going to meet the [most recent] late 2010 deadline. "It's either going to be a tremendous victory, or a  terrible defeat," says James George, a battery expert based in New Hampshire. The clock is ticking.

The United Auto Workers (UAW) strike has already has idled six GM assembly plants. A seventh factory ceases work today: the Wentzville, Missouri plant where The General builds full-sized vans. The Detroit Free Press reports that the UAW will soon stop production at the Janesville, Wisconsin plant, halting production of Tahoes and Yukons. Barring resolution of the union's industrial action by Monday, GM will shut down the Romulus (MI) Engine, Saganaw (MI) Metal Casting, Moraine (OH) engine plant and its Toledo (OH) Transmission plant. Again, even if the UAW settles at American Axle, the downtime will cost GM tens of millions of dollars, and threatens to drive secondary suppliers to the wall. Meanwhile, GM CEO Rick Wagoner received a 33 percent raise to $2.2m p.a.