One of our Best and Brightest pointed us to these “back of the envelope” calculations on the relative costs of running GM’s dealer network. [The comment was originally posted on the DealersEdge website. We’ve republished it here with the author’s permission.]

In a very limited attempt to figure out the savings, I’ve come up with a quickie comparison of just the cost of “reps”, with a number of assumptions. Comparing GM and its 6400 dealers to Toyota and their 1200 dealers (both of which sell almost the same amount of cars). Assuming 2 Reps (one Sales one Fixed) for every 10 dealers (for both manufacturers) and a 1:10 ratio for Supervisory positions of those reps (for both manufacturers) and for the sake of easy calculations, assume 100K Salary average for everyone.

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No, really. The Detroit News reports that prior to its Chapter 11 filing, Chrysler sought to sell off parts of the company to everyone. “Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets,” writes ChryCo’s Tom LaSorda in a bankruptcy filing affidavit. “Over the next two months, several companies, including Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands.” But guess what? Not even these ambitious firms were tempted to spend a dime on Chrysler’s alleged assets. And the major OEMs in the global auto game? Chrysler’s efforts to form alliances with Nissan, GM, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda and Toyota “have been determined and undertaken in good faith but have met uniformly without success,” admits LaSorda.

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And that’s just the prototype. The LA Times‘ Dan Neil (the automotive journalist’s automotive journalist) got an exclusive first up-close look at Tesla’s Model S and comes away with some healthy skepticism. What did he learn? “Tesla has already had to walk back a claim regarding the Model S’ recharge capacity. The car will not have the capacity to accept 440-volt current, which would allow it to be charged in 45 minutes,” for one thing. The prototype “is just barely ambulatory,” writes Neil. “More like a glorified golf cart than a harbinger of tomorrow tech.” Also, “the car’s signature design flourish—a 17-inch, touch-screen control panel with haptic feedback in the center console —may not even make it to production.” And Neil’s skepticism is contagious: The Business Insider concludes that “There’s No Way Tesla’s Model S Will Cost $57,400” even after hefty government incentives. Ouch.

NPR’s Steve Inskeep: “You have no intent, and, in fact, not even the ability to remain major shareholders of two major auto companies?”

UAW President Ron Gettelfinger: “That’s correct. We do not have the ability because of the need for the cash in the VEBA.”

Inskeep: “Are you optimistic that Chrysler is going to emerge from bankruptcy in a long-term viable form?

Gettelfinger: “First of all, we did everything we possibly could to keep Chrysler from filing for bankruptcy. We did our part, and we’re not responsible for them being in bankruptcy . . . ”

Welcome to the new Chrysler ownership. And unlike Cerberus they’re not even pretending they’re in it for the long haul. But to whom will they sell? Listen to the whole story here.

There were plenty of entertaining moments on last night’s Autoline After Hours. Fortress Detroit’s ugly bunker mentality proved at every turn what people (specifically, former GM consultants) mean when they accuse the American auto industry of problems of culture (with footnotes!). But TTAC is here to help. And our first suggestion to those feeling threatened by the collapse of their comfortable, familiar world is to read more. Seriously. “You don’t think Toyota makes any money on their hybrids do you?” asked one torpid apologist. Unless the Nikkei (via Green Car Congress) is part of the dreaded “we hate Detroit” conspiracy, it turns out that Toyota does make money on their hybrids.

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Bankruptcylitigationblog.com provides its readers—and there’s bound to be a whole new audience these days—with a ChryCo C11 crib sheet. The facts are predictably startling (if that makes any sense). The top 50 unsecured creditors’ claims total $730 million, with total trade at about $1.5 billion. The senior lenders’ claims total $6.9 billion. As you know, Chrysler owes the you, the people, $4 billion for your extremely generous bridge loans to nowhere (secured by a third priority lien). Chrysler owes Cerberus and Damiler AG $2 billion (secured by a second priority lien). Chrysler owes the United Auto Workers VEBA health care fund approximately $8.5 billion. Also highlighted: German automaker Daimler paid $37 billion for Chrysler when it purchased it in 1998. And lost it all. The “smartest guys in the room” (a.k.a. Cerberus) paid $7.4 billion for an 80 percent stake in Chrysler in May 2007. And lost it all. Checking the balance sheet, Chrysler has $52.6 billion in real liabilities, broken into the following categories: Trade and Related Payables ($5.7B), Accrued Expenses and Other Liabilities ($33B) and Financial Liabilities ($13.9B). The bloggers’ summary of the new plan after the jump.

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Officials representing Livingston Parish, Louisiana have canceled speeding tickets for all motorists caught in a notorious speed camera trap on Interstate 12. After numerous public complaints, officials were forced to admit 2488 citations were unfairly issued between January 26 and February 5, according to the Baton Rouge Business Report. Redflex Traffic Systems of Australia has operated the speed camera van on the parish’s behalf since January. As a productivity incentive, the company pockets $33 for every ticket it issues. Redflex found the most profitable position was around mile marker 15 on I-12 where the speed limit drops from 70 MPH to 60. Because there is no perceptible change in the freeway at the location, those who missed or ignored the sign became the targets for an instant ticket.

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Heathroi writes:

Remember the Focus with the wandering rear that I thought (ha!) might need lower profile tires?

Well as an update, it didn’t need tires at all. It needed new bushings all though the rear suspension. Which turned into a mammoth job of taking the rear suspension apart, cutting rusted bolts, frequent trips to the ford dealer for new control arms and lower A arms but back together in working order, like its new again.

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TTAC commentator and bankruptcy lawyer Toxicroach’s hits keep happening. This time, the member of our Best & Brightest sends us a filing by the US government (download pdf here) in support of Fiatsler’s motion to extend its filing (download pdf here).

Check out the Treasury motion in support. I think you will have a laugh a minute with that one. Then you will cry. The lease rejection—quick Google of some of the addresses . . . apparently, $60K a month gets you a Dodge dealership. They are dumping multiple car rental places and dealerships. Must be some pretty lame properties to get rejected on day one.

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TTAC commentator and bankruptcy lawyer Toxicroach reports on another motion (filing extension) in the Chrysler C11 case (download pdf here):

Chrysler are asking for 60 days to file the complete petition. Basically, as far as I can tell, they are trying to get this deal done before they actually have to release any relevant information about the company to the public. They are filing an absolute flurry of motions to get court permission to operate the company . . . but they are trying to act like they can’t fill out the schedules in a timely manner. Stunning. I’m interpreting this as some kind of ruse to keep information private until its no longer relevant.

We have a new sub-series to our new series: the Toxicroach papers. Turns out our longtime member of the TTAC’s Best and Brightest is a bankruptcy lawyer with access to the Chrysler C11 filing. He’s going to present these documents for our edification with some “what’s it all about, Tony?” analysis. We begin with a motion from Chrysler (download pdf here) to do what they should have done a decade or more ago: consolidate.

Check this out—the last half is mostly about them consolidating the 25 cases into one for the sake of efficiency, but the first half lays out in pretty decent detail exactly what the plan is.

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Dave: “The Volt has a range of forty miles. That’ll get you down the driveway and back.”

Elon: “Yeah.”

Discuss.

Fiat’s explanation of its deal with Chrysler states, “Pending (the transactions) approval, the current Chrysler will continue its normal business operations and the US Treasury and the Canadian government will provide the company with financing in order to allow the performance of all its obligations towards the employees and to fund its on-going needs.” But according to The Detroit Bureau, this isn’t the case. “During the bankruptcy proceedings, which are expected to last from 30 to 60 days, most of its manufacturing facilities will be closed. It is only when the New Chrysler emerges from bankruptcy that production will gradually resume. Workers will be eligible for supplemental unemployment benefits, worth about 80% of pay. Some additional plant closings are anticipated.” Which means either The Detroit Bureau has its facts wrong, or Fiat does. And if Fiat is wrong and Chrysler will halt operations during bankruptcy, what does Auburn Hills need $3.5 billion in government DIP financing for?

Meanwhile, in Europe, Chrysler gets a yawn, but all eyes are on Opel. Who, when, with whom? Fiat’s entreaties received a loud “NEIN!” from all colors of the German spectrum. The current darling appears to be Magna: Closer to home, Austrian, just like Porsche, not Chinese, politically well-connected.

The Austrian-Canadian car parts maker and contract manufacturer Magna has presented a “rough outline of a rival offer to seize control of General Motors’ Opel unit ahead of Italy’s Fiat” to German Economy Minister Karl-Theodor zu Guttenberg, Reuters reports. Fiat and Magna had a sit-down with the Minister. After the meeting, Guttenberg said Magna’s concept was “interesting.” He then pulled out a broken record and announced that the German government needs more facts and figures from GM. They’ve been saying this for months, and apparently feel ignored. Guttenberg said this wait “is tiring.” Further in the rope-a-dope dept., the US government also owes Germany some facts and figures. Once in hand, Guttenberg would then be ready “to think about loan guarantees.”

Ever the politician, Guttenberg said the concepts from Magna and Fiat were very different from each other, but were the most substantial plans he had seen so far from potential investors.
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