Did you just win the lottery? Has Ed McMahon been knocking at your door? Wondering what to do with your newfound wealth? Autotrader has just the thing: a wide selection of vehicles priced at over $1m. Want some examples? Scope out these deals:

2006 Infiniti Fx35 AWD – $3,058,100
2006 GMC Yukon XL Denali AWD – $2,966,995
2005 Nissan Altima – $1,497,014
1993 Honda Civic DX Coupe – $1,250,000
1995 Saab 9000 CS Turbo – $1,111,111

These bargains and many more like them are just a mouse click away!

(Sales Tax, Title, License Fee, Registration Fee, Dealer Documentary Fee, Finance Charges, Emission Testing Fees and Compliance Fees are additional to the advertised price)

Yes folks, despite the drastic downturn in new car sales, the so-called credit crisis is now so bad that new car dealers are being forced to not to drown their customers in debt. The Cleveland Plain Dealer (of all things) reports this new, un-American disconnect between what people can afford and what they can buy. "People with decent credit aren't able to get the terms they think they should get," said Michelle Primm, managing partner of the Cascade Auto Group in Cuyahoga Falls and a special director of the National Automobile Dealers Association. Which raises an important question: was Elvis a NADA special director? Did he get a badge? Anyway, some dealers are welcoming this new sense of realism– now. "'When you have dealers that say they can get anybody a loan, they're selling financing,' said Pat O'Brien, owner of Chevrolet dealerships in Medina, Willoughby and Westlake. 'They're not selling the car.' He added that loan terms offered to people with poor credit were often so bad that they would have been better off not buying.'" Who knew?

Ford is boosting production of its Focus compact by nearly 30 percent. Dow Jones (via CNN Money) reports that FoMoCo will use overtime and Saturday shifts to raise Focus output at their Wayne, MI plant from 191k to 245k units per year. Ford sold 49,070 Focii in the first quarter of this year, up 23 percent from the year previous. Even better, retail (non-fleet) sales bounced by 35 percent. Ford claims the Focus' SYNC voice-activated media system ("play Fatman in the Bathtub") has given it an edge over its competition. Unfortunately, Ford's exclusive rights to the Microsoft technology powering SYNC expires in November– leaving the Focus with little more than low price and way-better-than-an-SUV mileage. This might explain Ford's decision not to add a third shift at the Wayne plant. Whatever the future holds for Fords slice of fugly, the Focus is the Blue Oval's Mr Right Now, gaining ground on the imports in the brutal compact market. Just imagine how well it would be doing doing if it looked even a little more like its handsome European cousin. 

Automotive News [AN, sub] reveals the results of an "unscientific online survey" of "more than 400" U.S. new car dealers. AN paints a predictably bleak picture– for the domestics. "Among dealers who sell Detroit 3 domestic brands, nearly one-third say their dealerships are in the red. The only argument you'll get from a lot of them is whether this is the worst business climate dealers have faced in 20 years, in 35 years — or ever… 'The future is quite bleak,' says a veteran Ford dealer… 'Many dealers are looking for the exit.' But matters are far less dismal for Toyota, Honda and Nissan dealers. Nearly all say their dealerships remain profitable." Reaffirming that [unscientific] result, AN says half of the [participating] Detroit dealers have less staff than last year, while a third of Toyota, Honda and Nissan dealers have added personnel. "And half of the Detroit 3 dealers surveyed said most of the new-vehicle customers they now see are 'upside down,' owing more on their trade-ins than the vehicles are worth." Meanwhile… "Life in Toyota-land is good," says Dan Luneau, owner of Handy Toyota in St. Albans (VT). 

Ford isn't wasting any time bragging about their bought and paid for surveys claiming that their quality is now on par with Toyota's. However, as the Detroit News reveals, FoMoCo's newfound reliability has dealers losing money on warranty work. The National Automobile Dealers Association estimates Ford dealers currently lose $30 on every new car they sell; they make up the difference through financing, add-ons, service and warranty work. [U.S. car dealers earned $7.7b on warranty repairs last year.] With warranty work shrinking, they'll have to earn more money elsewhere. To that end, Ford's introducing a line of aftermarket accessories called "Customs" focusing (so to speak) on "high-profit items like custom wheels and electronics." So in addition to paint protection, window etching and LoJack, Ford dealers will be hawking factory-authorized customization. Pimp my profits?

The downturn in the economy isn't just affecting the mainstream automakers. The Wall Street Journal reports luxury car manufacturers are also suffering. (Yes, suffering.) In March, luxury car sales sank 14 percent from last year. "Super luxury" cars such Bentley, Rolls and Maybach were hit the hardest– the uber expensive segment fell 39 percent. Of those models, Bentley was the biggest loser, with a 42 percent loss. Entry level luxury models (BMW 3-series, Mercedes C-Class) were down by 13 percent. Middle (though not middling) luxury cars (BMW 5-Series, Jaguar S-type, Infiniti M35) were down 20 percent. And upper luxury vehicles (Mercedes E-Class, BMW 6- and 7-Series) dropped 24 percent. It's probably not a very good sign for the rest of us when even the wealthy start economizing on their whips.

While Standard & Poor's are planning for a seven percent slide in auto sales for the U.S. of A, things north of the border are looking up. The CBC reports that the Canadian automotive  market will nip at the heels of last year's totals (their second best year ever). The forecast comes courtesy of DesRosiers Automotive Consultants head honcho, Dennis DesRosiers. After seeing double-digit jumps throughout the first quarter, Dennis deduced an improved forecast was due. DesRosiers reckons the strong Loonie, decreased taxes (one percent G.S.T drop), and healthier Canuck economy will entice more Canadians to throw down for price-reduced whips this year. Don't figure on this news making up for the U.S. slide though. The improved forecast accounts for a mere 8k unit improvement (1.645m total).

Dow Jones Market Watch reports that tight credit, expensive gas and the economy in recession, four cylinder engines are becoming increasingly popular. Four-pot models now make up 37 percent of the U.S. market, up from 30 percent three years ago (when gas was last under $2/gal) Eight cylinder models fell from 28 percent to 18 percent over the same period. Tracing the development to purely economic factors, the report shows that hybrids do not yet offer enough savings to overcome their price premiums; hybrids only make up three percent of the market. "For now, the easiest, cheapest way for new-car shoppers to get better mileage is to choose a model with a conventional four-cylinder engine," says J.D. Power analyst Jason Rothkop. "And they are." The poster child for the four-banger revolution? The Toyotas Yaris. Sales of the four-pot economy car were up 83 percent in March. [For more info on last month's sales, check out Frank Williams' March By The Numbers.]

Chrysler's forced summer vacation will not include all North American plants as previously reported. The Aurora Advocate reports that the Twinsburg Stamping Plant and the Windsor Assembly plant might stay open during the planned two-week idle, along with a possible third, unnamed factory. Chrysler Manager for Manufacturing Communications says the Windsor plant could continue making vans– if demand stays [?} high into the summer. "We will make adjustments to consumer demands," Ed Saenz announced. Meanwhile, some Chrysler employees have already used their paid vacation day; they'll be forced to take unpaid vacation days during the shutdown. Saenz proves that he is, at least a friend of a friend of the working classes. He reassured Chrysler employees that next year will be easier– they'll be aware of the fact that they have no choice as to when they'll take their vacation. Provided the company isn't already in C11.

According to China Daily, sales of passenger cars in China rose 23.6 percent in March, compared with the same period last year. That's the largest monthly rise in seven months, attributed (in part) to the arrival of milder springtime weather. The market recovered after "freak winter weather" slowed sales, according to the China Association of Automobile Manufacturers. First-quarter sales rose 20.4 percent to 1.85m vehicles, including 1.37m sedans, 55.3k minivans and 101.8k SUVs. Taking both first and second place in sales for the first three months of the year: Volkswagen AG's two Chinese joint ventures, FAW Volkswagen and Shanghai Volkswagen. Coming in third in the sales race: Shanghai GM, the Detroit-based car maker's JV with Shanghai Automotive Industry Corp. China is the world's second largest car market, with sales of 6.3m vehicles last year.

Now that Ford has ditched… er, sold Jaguar and Land Rover they're turning their attention to their Swedish marriage from 1999. It seems that Volvo's North American sales slowdown has finally rippled across the pond. Volvo is reporting an 80-day supply of certain models. As a result the Swedes have decided to idle the factory in Uddevalla (a joint venture with Pininfarina) that produces the C70 for two weeks while Ford decides what to do. In addition, the factory in Torslanda will be idled for one week to get inventory down to their target level of 60 days. Obviously they don't have to deal with the UAW.

We've been flagging the fact that the sexy (to some) prototype electric – gas plug-in hybrid Chevrolet Volt failed its wind tunnel test by a mile. In other words, it will NOT look like the chopped roof show car still trotted-out at auto shows and featured heavily in GM's ads. (TTAC ME Frank Williams is convinced it'll look like a squished Malibu.) The Detroit News reports that "Larry Burns, GM's vice president for research and development, said that aspect of the vehicle's development is officially complete. But a group of reporters and analysts from around the country who will converge in Warren today won't likely get to actually see the car's design, even though they're in town for the latest news on GM's ambitious attempt to build an electrically driven car for the masses." Go on, give us a clue… "Designing the Volt was especially tricky because GM needed to fit a battery pack 'the size of a linebacker' into a car essentially the size of a Chevrolet Cobalt, with enough room for four passengers to fit comfortably inside, Burns said." Another one! "The finished Volt will bear a 'clear family resemblance' to the sporty vehicle initially shown at last year's Detroit auto show, Burns said. 'But it won't be a twin.'" TTAC will pay $500 for an exclusive first picture of the new Volt. 

In a recent article in the New York Times, reps from GM and Toyota both told the newspaper that they are optimistic about the automotive market in the near future. They felt this way especially in light of the declining interest rates (checked your savings account's variable rate lately?) and the $600 stimulus checks that the Federal government is sending out … some time or the other. Without getting into an economics debate here, let's just say that $600 isn't a whole lot of money, the last year's worth of Fed actions cutting interest rates hasn't helped, Americans are in over their heads with debt, and GM has been offering 0% financing on cars for years. Ford is pleasantly candid in the article, saying "I'd like to be able to tell you the worst is behind us, but I really can't give you that assurance." In fact, Jim Farley at Ford (remember when he ran Lexus?) thinks that next quarter is going to be even worse. The article is just a gold mine of reality checks though, like Chrysler VP Steven Landry saying "I don't know if I can take another March like this one" and Toyota's US chief Bob Carter insightfully opined "We're not immune to economic cycles and downturns in the automotive industry."

OK. So it turns out computing monthly auto sales is somewhat akin to doing taxes– it depends on who's doing the figuring. Using Automotive News' [sub] numbers (which we also use for the "By the Numbers" analysis), and ignoring the accounting slight-of-hand known as "sales days," Chrysler's March sales sank by 19.4 percent compared to last March, to 166,386 vehicles. GM's sales dipped by 18.7 percent, to 280,713. And Ford moved downwards by 14.1 percent, to 226,448 units. As you'd expect in these gas-conscious times, light truck sales (or lack thereof) account for the lion's share of the losses (down 15.5 percent in GM's case). As these vehicles also account for the majority of the domestics' profits (or lack thereof), that's gonna leave a BIG mark on their balance sheets. And don't get to thinking that "at least they're maintaining their market share." Although Toyota took a 10.3 percent hit in March, Honda and Nissan each dropped only 3.2 and 3.8 percent respectively. In a generally lower market (down 12 percent), they're eating someone's lunch. 

Commentator KixStart was kind enough to listen-in on GM's conference call on our behalf. He filed this report: "During the Q&A, Jeff Green of Bloomberg News asked if they could break out hybrid sales, 'now that you have some on the market?' According to NA Marketing Maven Mark LaNeve. GM sold "577 hybrids [in March], of that amount, let's see, about 450 were the new Tahoe and Yukons; we're just starting to get some some adequate inventory out… The Malibu and Aura hybrids are just getting into the market, just had a handful of deliveries, 30 between the two of them." LaNeve said there was 'lot of interest, lot of dealers taking orders' which they hope to fulfill in the coming months. Green asked if there were any sales earlier in the quarter, (i.e. January and February)? In February… '300 above that, 843 for the quarter.' No number at all mentioned for January. Zero hybrids in January more or less fits with 577 March plus 300 for February; roughly equal to 843. Their calculators do seem to be more than a bit casual. One way or another, though, the numbers are tiny. Does it really take this long to ramp-up these things? My understanding: GM had 1200 hybrids on the way to the dealers as of the end of last month. The red ink for GM on this technology must be horrendous."