Is there more than a joint minivan project in the future for Chrysler and VW? The Car Connection feeds the flames of corporate speculation. "There is going to be another round of mergers in the auto industry," the chairman for the Center for Automotive research asserts. "And the one company that matches up well with Volkswagen is Chrysler." David Cole feels Chrysler has a lot to offer the German automaker: U.S. production facilities, a large dealer network and recently reduced labor costs. With VW's stated goal of selling a million vehicles in the U.S. per year, they'll have to do something new. That said, the last Chrysler – VW collaboration gave unto us the Volksie-engined  Dodge Omni/Plymouth Horizon twins. Just think of the possibilities now… The next Chrysler 300 could be built on the A6 platform, a revitalized Crossfire could feature a Boxster drivetrain, or the Golf/Rabbit could be the donor for the next Caliber. Of course, if if you switch that around, we could be looking at an A4-a-like with a Sebring-grade interior.

Surprise! The Detroit News reports that nearly half the vehicles listed in Consumer Reports' "most satisfying" list are manufactured by Japanese brands. And a quarter of the models listed were Toyotas. Only seven American brands showed up on the list. The Ford Fusion and Saturn Aura won high marks in the family car segment. While making up less than 10 percent of the market in the U.S., European models accounted for almost a third of the winners. The Toyota Prius was the overall most satisfying vehicle, followed by the BMW 335i and the Porsche Boxster. Domestic models dominated the "least satisfying" list, which consisted mainly of trucks and SUVs. Four of TTAC's Ten Worst winners are Consumer Reports bottom feeders: the Saturn Ion, Chevy Aveo, Chevrolet Uplander, Chevy Trailblazer/GMC Envoy. 

As a privately-held company, Chryslerberus doesn't have to reveal its financial information to the general public. However, executive VP of North American sales, Steven Landry, gave us a peek behind the curtain during a talk to students at his alma mater, St. Mary's University in Halifax, Nova Scotia. The Detroit Free Press reports that as he discussed Chrysler's efforts to return to profitability, he revealed they'll fall about $1b short of what they're spending. Their overall plan? "Lose a little money this year, break even next and rake it in during 2009 and 2010," according to a report in the Halifax Daily News."You have to come to the realization that in some instances, you've got to stop spending," Landry opined. "You've got to right-size what you do to the revenue that comes into the company." Of course, Chrysler's spinmeisters were all over his comments, qualifying them by saying Landry was talking in generalities to students. I wonder what Chrysler CEO Boot'em Bob Nardelli had to say to his talkative Veep upon his return to Auburn Hills.

Think the $10.2m salary and bonuses Rick Wagoner took home in 2006 is outrageous? That's chump change– at least compared to what Business Times reports Wendelin Wiedeking reeled in last year. Porsche's president finished the year with his bank account €70 million healthier than when it started. That's $103.7m folks. For one year. The fat cats on the management board shared in the bonanza, splitting €113 million ($166.9m) between themselves. While it's true Porsche is the world's most profitable auto maker, less than half of its profits come from making autos. While the company reported €5.86 billion ($8.65b) of profit this month, €3.59 billion ($5.3b) came from stock option profits– most of which are "paper" profits on options to purchase more of VW. Porsche finance director, Holger Härter, describes the monetary machinations as "options on options on options" but denies there's anything shady going on.

Bloomberg reports that recreational vehicle manufacturer Winnebago is about to announce that shipments fell for the first time in six years. The downturn reflects an industry-wide slump, indicating that the U.S. economy (including the new car market) is, as predicted, headed for the doldrums. "For the past three decades, deliveries of motor homes and travel trailers have dropped before each decline in the U.S. economy, giving the $15 billion industry a reputation as a bellwether." This time 'round, Winnebago is going down fighting. The company is unveiling more fuel efficient models, including one that can get 22mpg (highway, tail-wind). Meanwhile, Thor brand's Chief Operating Officer isn't about to concede defeat. "The industry is definitely not immune to macroeconomic factors," Dicky Riegel admitted. But with 11k Americans turning fifty each day, Riegel reckons "we still have the demographic wind at our back." [thanks to starlightmica for the link]

Hot on the heels of TTAC's Ten Worst Automobiles award, Forbes has released their fourth annual "Automotive Turkeys" list. Their selection process is much more boring scientific than TTAC's reader nomination/voting method. Forbes bases their selection on such factors as NHTSA recalls, reliability ratings from Consumer Reports, depreciation and crash-test ratings. Like TTAC's Ten Worst, Forbes' is heavy with Chrysler products– althought the Ten Worst-winning Jeep Compass is conspicuous by its absence (the donor Dodge Caliber made it, though). Unlike TTAC's Ten Worst, the automakers had formal responses to Forbes' list, reacting "with surprise and some resistance to being included." Here's their take on 2007's ten worst, in numerical order.

1. Chrysler Sebring*
2. Dodge Nitro*
3. Jeep Liberty
4. Dodge Caliber**
5. Dodge Magnum
6. Ford Crown Victoria
7. Chevy Aveo*
8. Nissan Quest
9. Hyundai Entourage
10. Grand Prix**

*TTAC Ten Worst Winner
**TTAC Ten Worst Finalist

Canadian Auto Workers' president Buzz Hargrove has publicly declared "no concessions" re: next summer's contract with the U.S. automakers. He may want to soften that stance a bit. Just as American automakers are trying to cut operating expenses any way they can, Financial Post reports that Canada is now "the most expensive place in the world to make cars." They attribute this dubious honor to the strong loonie and "other factors" that include the new lower-paying contracts with the UAW and the health care concessions. Many suppliers are cutting production and closing plants in Canada, and the automakers are expected to follow suit as Canadian production costs continue to grow relative to operations in the U.S., Mexico and Asia. Will Buzz take the Canadian auto industry down with him or acquiesce to what seems like an inevitable cut in wages and benefits? Watch this space.

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?

When it comes to TrueDelta (TD), we have to choose our words carefully. TTAC's information provider is what you might call a stickler for details– in the same sense that TV detective Adrian Monk is a bit bothered by asymmetry. So we couldn't proclaim "GMC Acadia and Saturn Outlook: Worse Than Average Repair Rates," even though TD's consumer panel reported it so. 'Cause then Karesh would crucify us for not reminding you that all these repair rates are pretty low. (Which we've just done.) I suppose we can quote from his press release without fear of contradiction. "The current update confirms the moderately high repair rate for the 2007 versions of these crossovers; there has been no improvement. Common problem areas include a valve within the air conditioning system, the front seats’ lumbar support adjusters, and the lid for the storage compartment on top of the instrument panel." But then we'd have to point out that "Based on survey responses, the repair rate for the 2008 Buick Enclave, along with the 2008 GMC Acadia and Saturn Outlook, is substantially lower than that of their 2007 counterparts: 38 successful repair trips per 100 vehicles per year. This compares to 98 successful repair trips per 100 vehicles per year for the 2007s at a similar age." Jeez, this fairness thing is a bitch. 

Toyota’s operating profits this year will exceed the entire market value of GM. This insight arrives via Ian Rowley in his Eye on Asia blog for Business Week. According to Rowley, with GM reporting a $39b loss and Toyota earning $11.2b, GM’s market capitalization (market cap) is now smaller than Toyota’s single-year profits. (To determine the market cap of a company, multiply its share price by the total number of outstanding shares and you get the financial size of the corporation.) Toyota is projected to have operating profits of $20.2b this financial year. At the end of the trading day yesterday, GM’s market cap was $19.21b. Rowley says yesterday’s announcement by GM makes the “huge earnings gulf” between the two companies obvious. While GM sells more cars annually in the US than Toyota does [for now], their “fortunes” are reversed when it comes to finances. The race for the title of world's largest automaker remains up for grabs, but any victory by GM at this point would have to be seen as Phyrric. 

After GM racked-up a $39b third quarter deficit, BusinessWeek (BW) wants to know if GM CEO Rick Wagoner is finally ready to unfurl his golden, bankruptcy-proof parachute. Their answer: maybe. Clocking the "muted" reaction to GM's latest losses, they attribute Rick's survival to the loyalty of GM's employees and board of bystanders directors. However, BW also notes the status may no longer be quo should the fourth quarter reveal "any more nasty surprises." Perhaps they should also question the longevity of CFO Fritz Henderson. Fritz reacted to GM's arterial spray by dropping such bon mots as "the economic pace and the market are certainly … something we need to be cognizant of." Up with this insight stockholders should put? What of "we're not signaling [their seasonally adjusted selling rate is] worsening or anything, but today it's certainly below trend"? This after GM missed their mark by about a million vehicles in October. In any case, it looks like the mainstream media is– once again– beginning to smell blood in the water. 

The Detroit News reports that Delphi has asked the U.S. Bankruptcy Court for permission to pay its top executives more than $215.5m in bonuses and incentives for 2008. Now that the autoparts maker is almost out of Chapter 11, they're looking to shell-out bonuses to 560 executives: $78m in one-time bonuses, $11.5m "one-time supplemental grants" to "compensate for changes in the new executive retirement program," $46m from a "short-term incentive program," and $80m from a "long-term incentive program." Some of the payments will be in cash and some will be in stock. Proponents of the bonuses say hey, c'mon, cut us some slack. The payouts are on par with the goodies on offer at  Visteon, DuPont, Coca-Cola, Goodyear Tire, Best Buy and Pepsico– none of which, incidentally, are in bankruptcy. Shareholders and workers who had to bear the brunt of Delphi's losses are less than pleased, to say the least. Will the federal judge reward Delphi's execs for almost killing their company resurrecting the company's fortunes? Watch this space.

Alan Mulally has publicly admitted the possibility that his employer may– indeed might— go belly-up. Automotive News reports today that they asked FoMoCo's CEO if his employer will survive. "Don't know — race against the clock. Are we working on the right things? Absolutely. I've been there. I've seen this movie. I performed well in it. I know exactly what to do. Do we have enough time? No idea." Arriving hard on the heels of this weekend's Ford – United Auto Workers' (UAW) agreement, Mulally's startling statement could be seen as an attempt to convince Ford's rank and file to ratify a contract which may not contain job guarantees. If so, his post-admission theatrics were suitably dramatic: "The more you worry about worrying, as opposed to worrying about doing, then you're going to put this at risk," he said, slapping a piece of paper on which he'd sketched elements of his turnaround plan. "So let's just do the goddamn plan." Of course, the date of AN's pow-wow with Big Al is the critical piece of information in this regard: October 26. That's 17 days ago. Why did Automotive News sit on this bombshell until now? Did they agree to an embargo? No matter how you look at it, this one stinks.

You know, we're beginning to buy into this idea that the new Chrysler is faster than a speeding bullet– to the back of the head (of course). Five days after the United Auto Workers (UAW) ratified their new contract with the struggling domestic– a contract whose job guarantees were conspicuous by their absence– Chrysler is axing the third shift at its Jeep factory in Toledo. The Toledo Blade reports that the move will take effect in the first quarter of '08, trimming 1,000 salaried workers and 1,100 temporary workers in engineering, finance, procurement and "other areas." Although anyone who's driven the plant's products (Dodge Nitro/JeepCompass) could have seen this coming, the UAW says it was taken completely by surprise. "Local UAW officials said neither they nor local company officials were aware of the planned announcement. UAW Local 12 President Bruce Baumhower said, 'That is news to me.'" The Wall Street Journal says the cuts are actually deeper. Chrysler will also terminate shifts at three Michigan plant: Jefferson North (Jeep Commander and Jeep Grand Cherokee), Sterling Heights (Chrysler Sebring and Dodge Avenger) and their Mack Avenue engine plant. Chrysler CEO Boot 'em Bob Nardelli was taciturn on the bloodletting business. "Mr. Nardelli said the final decision on the cuts came Tuesday during Chrysler’s first board meeting as a private company. 'Those are within the confines of the board and the board’s decisions,' he said of the layoffs. Here we go…

According to WardsAuto.com, there will be no '09 Ford Crown Victoria. It was bound to happen sooner or later, what with sales of Ford's last full-size rear wheel-drive sedan tanking by 90 percent since 2000. Twisting the knife, Wards says Ford moved just 46,188 Crown Vics year-to-date, down 9.1 percent from last year's totals. So that's it for Ye Olde Crown Vic, at least on the retail side. Ford will continue making a fleet-only Vic at its Ontario plant, alongside the newly relocated, equally doomed Lincoln Town Car. Meanwhile, the Grand Marquis variant will continue not to clog Mercury dealer parking lots for the forseeable future, despite underselling the underselling Crown Vic by about 15 percent. By 2010, when job guarantees to Ford's St. Thomas-based Canadian Auto Workers' union expire, all of Ford's full-sized RWD sedans will be toast. What a waste.