Just two years after its well-hyped launch, the sun is setting fast over the Solstice. The New York Times is casting a gloomy eye toward the momentarily once-hot Pontiac roadster, reporting that the days of waiting lists and above-MSRP markups are over. As of July, year-to-date sales are down 19% compared to 2006; inventory levels sit at the five-month mark. Even worse, the Solstice is creating no lift for the Pontiac brand, which has seen its sales nose-dive 17%, almost twice as fast as GM’s as a whole. While we appreciate the homage to our very own Death Watch column, the NYT indulges in a bit of creative math in the same article when it touts the badge-engineered Saturn Sky as a fantastic success story– even though its sales volumes are one-third below those of both the Solstice and the car that inspired it, the Mazda Miata. Still, it’s sad to see that GM’s brands are so dead that they now qualify for obituaries in the nation’s newspaper of record.

And that's just the second half of '07. On Wednesday, Deutsche Bank automotive analyst Rod Lache informed his clients (and Forbes) that sales of The General's latest trucks and SUVs have peaked. "We are currently forecasting an 8 percent decline in GMT900 production in the second half based on a relatively flat absolute inventory levels," Rod wrote in his Dear John note to investors. "An assumption which increasingly looks optimistic based on the decline in segment volumes." In other words, GM's losing share in a declining segment. Although the estimate is not unexpected– given GM's recently announced big rig production cuts– as the housing slump gets worse, it looks like GM's cash cow is in the chute, heading straight to the packing house. So… what now?

Visitors to Ft. Collins Colorado don't have any problem finding the massive WWV shortwave antenna array that broadcasts the time from the government's famous atomic clock. In town, locating a hybrid on a car dealer’s lot ain't so easy. The Coloradoan reports that local hybrid sales are high. Mark Pedersen of Pedersen Toyota pronounced them "extremely steady." Over at Markley Motors Honda store, used car manager Jaime Twito says Honda's hybrids are usually sold before they arrive. "We take everything they give us… they're hard to keep on the ground." Things are a little tougher for Brad Laugel, inventory manager at Dellenbach Motors. While the Chevy dealer has no hybrids to sell, he’s expecting a few ‘08 gas – electric Malibus later this year. Changing the subject ever-so-slightly, Laugel says Ft. Collins is “a good market” for vehicles like the Silverado and Tahoe, which can run on E85. Fortunately, unlike most U.S. towns, Ft. Collins actually has a station selling the brew: Western Convenience Store on 1113 West Drake Road. Be sure and say hello for us– but don't ask if they have the exact time.

According to an article in the International Business Times, it's pedal to the metal for the Chinese auto industry. The China Chamber of Commerce for Import and Export of Machinery and Electronic Products predicts auto exports will grow by nearly 50 percent in ‘07. So far this year, China has exported 241k vehicles valued at $2.7b. The majority headed to their former fellow communist partners in Russia, followed by Boratville (Kazakhstan) and Iran. What's more (literally), the average price per exported vehicle ascended to $11,200, up 23 percent from '06. Meanwhile, Motor Trend reports that Shanghai longshoremen have unloaded a shipload of 3k Ohio-built Acura TLs, slated for September sale. The U.S. strikes first blood, but don't expect the balance of trade to remain skewed in this direction for long. No sir.

China's "you wanna do business here you gotta hire my nephew" policy towards foreign automakers is inadvertently bringing Chrysler and Fiat into close proximity. Forbes informs us that Fiat has just signed a letter of intent with China's Chery to build cars in [Homer Simpson's favorite Chinese town] Wuhu by 2009. In its normatively optimistic press release, Fiat claims the factory will produce 175k units in the first year, and double that the next. The deal follows Chrysler arrangement with Chery to produce a small car for the U.S. market. All of which takes us back to '88, when Fiat was going to sell Chrysler minivans in Europe and Chrysler was going to sell Alfa Romeos in America. Could the Chinese hook-up mean Fiat's long-awaited return stateside could come via a Chinese-made Alfa sports car sold through Chrysler dealerships? Now there's a thought. 

FXstreet.com reports that Japan imported 3.8% less vehicles in July vs. July of last year. While the slump is hardly unsurprising given the general downturn in the Japanese automotive market, examining the actual numbers is a bit of an eye-opener. We're talking about a total of just 16,968 units (down from last July's 17,636), the majority of them high end luxury cars. Saying that, VW led the pack, selling 3996 vehicles in Japan (down 13.3%). Mass marketeer FoMoCo found 444 for its cars (down 19.1%). Renault brought up the rear with 306 vehicles (up 2.7%). Contrast that stat with the country's automotive exports. In June, Japan's domestic automakers sent 202,523 vehicles stateside. 

According to Mike Levine at Pickuptruck.com, the all-new Toyota Tundra has surpassed the new(ish) GMT900 GMC Sierra 1500 in year-to-date sales. Officially, GM claims to have sold 115,185 Sierras. However, there's a bit of cloak and dagger math here. This figure includes 2006 models, and 'Sierra Classics', both built on the GMT800 platform, as well as heavy duty models. After peeling back these layers of confusion and misdirection, Mr. Levine reckons GM has sold only 76,700 brand new(ish) GMT900 Sierras. Toyota on the other hand has sold 97,290 (not quite fully) box(ed) fresh Tundras. This puts the Tundra at number four in full sized truck sales, and marks the first time a foreign automaker has sold more trucks than a domestic— in the history of the world, ever. If current sales trends continue, the Tundra will pass the Sierra in gross sales (i.e. with GM's gorilla math) by October. Currently GM gives up to $2000 in rebates to its new Sierra customers and Toyota offers up to $2,500. May you tow in interesting times.

Toyota's enjoying record financial prosperity; year-on-year, the world's largest automobile manufucturer's Q2 operating profits rose 31.8 percent (675.43 billion yen vs. 512.42 billion yen). The lion's share of Toyota's success stems from strong U.S. sales of high margin models (Tundra and Lexus LS), bolstered by a weak yen. Meanwhile, back at home, bleh. ToMoCo's domestic sales slumped 10 percent, dropping 43k vehicles compared to last year. Speaking to the Japan Times, Yoshihiro Okumura, from Tokyo's Chiba-gin Asset Management Co. says the downturn reflects a shrinking domestic pie. "It's becoming more difficult to make a large profit in Japan, as the market is shrinking and people aren't buying cars." In an attempt to spur sales, Toyota has unleashed  11 new or redesigned cars in the past 16 months. 

The Socialist Republic of Vietnam is on its uppers. The Viet Nam News reports expanding tourism and exports, a stock market that’s expanded by 145 percent and a growing, car-hungry middle class. Auto sales are up 79 percent year on year. Toyota salesman Cao Hong Quang says his customers must plunk down a VND 10 – 15m ($625 – $938) deposit and wait between a week to four months before delivery. The demand also represents a sense of resignation. Many aspiring Vietnamese motorists were hoping that the country's entry into the World Trade Organization (January '07) would trigger a reduction in government taxes on car purchases. By now, they’ve given up waiting and started buying.

When faced with a choice between paying $12.95 a month for 170 channels of XM satellite radio or 130 channels of Sirius, many consumers bought neither. In an effort to lure new customers, the merging satellite radio companies are switching to a la carte pricing. So instead of a straight either/or choice, it's either XM or Sirius and THEN a choice between one of eight packages in seven price ranges (with a .25 per additional channel option on a la carte 1). If you thought the two companies would merge content, they have, kinda. "SIRIUS customers will also be able to choose a family-friendly version of SIRIUS programming that includes select XM programming. And XM customers can select a family-friendly XM programming option that includes select SIRIUS programming. These packages will cost $14.99 per month, a credit of $2.00 per month from the cost of the "best of" packages." Confused? You will be.

Despite The Big 2.8's mantra that their declining market share and evaporating sales volume reflect a concerted effort to reduce dependence on low-margin bulk sales, Automotive News [AN, sub] reports that Detroit's fleet sales have declined by just one percent during the first five months of '07 vs. '06. Fleet sales still account for roughly 25 percent of GM's total, 32 percent of Ford's and 35 percent of Chrysler's (a slight increase from last year). Into the breach dear Horatio: the transplants. Toyota/Lexus/Scion's fleet sales have increased from seven to 11 percent. Fueled by corporate demand for the new Altima, Nissan's fleet sales rose from nine to 15 percent. One fourth of all Kia sales now sail with the fleets (up from a fifth). And Mazda's fleet sales jumped from 18 to 24 percent of their total. The numbers reveal a stunning lack of resolve by Detroit, and a residual-threatening expansion for their competition.

Given hurricane Katrina's impact on our gasoline supplies, why hasn't the federal government taken action to assure America's oil refinery capacity? Today's New York Times reports that an "invisible hurricane" of mechanical breakdowns at oil refineries around the country has pushed-up gas prices 50 cents, to over $3 a gallon. Analysts reveal that a third of the country’s 150 refineries have reported operational disruptions since the beginning of the year. As this website has pointed out, the U.S. refining industry is hamstrung by a patchwork of state regulations that make shifting supply nearly impossible. The industry says the laws and questions about maintenance schedules put it in a no-win position. “Refiners want to keep running in today’s economic environment,” said Charles T. Drevna of the refiners association. “But when they shut down they are accused of gouging the system. When they don’t, they are criticized for overrunning their facilities.”

Australia is home to four major automobile manufacturers whose combined domestic sales total just under 1m cars per year. As this Herald Sun article points out, Ford of Australia faces a stark choice: export or die. At the moment, the automaker is heading in the wrong direction. With a lineup bereft of fuel sippers (sound familiar?), the automaker's Australian sales fell 9.9 percent in the first six months of '06, even as the country's total vehicle sales rose 8.5 percent. Ford is now closing its Geelong plant, ceasing production of its locally built in-line six, switching to a US-sourced V6 engine after 2010. On the positive side, by holstering the U.S. compliant powerplant, Ford of Australia's all-new, rear wheel-drive Falcon (due in 2012) could become a "global car." The article posits that this model could replace the doomed Crown Vic. But will it? Will an unfavorable exchange rate scupper any such plans? Will the Ford corporate mothership even be around to make it so? 

Wards has posted the results of The Prospect Satisfaction Index, a survey compiled by Pied Piper Management of Pacific Grove, CA. We have our doubts about the methodology– and not just because of the company's name. According to Wards, Pied Piper's professional pollsters asked an undisclosed number of prospects an unspecified series of “yes” and “no” questions at 1,592 dealerships. We also have our doubts about the results. The study asserts that only five percent of respondents were "oversold." Pushy salesmen? Pied Piper's Pied Piper says it's purely a pernicious perception problem. “The treatment prospects receive on average is very good and professional,” says Fran O’Hagan. So now you know.

Ward's Dealer Business lists the 150 top-performing franchised dealer service departments in America, including their income vs. total dealer revenue. The report also offers a fascinating behind-the-scenes look at the biz of selling repairs. According to the article, franchised dealers' service department revenues tumbled by nearly $5b last year; improving vehicle quality is leading to less warranty work. With razor-thin new car margins, that's gotta hurt. To staunch the wound, dealers are getting more aggressive about selling repair work. "Part of the problem is that service advisors are too busy answering the phone setting up appointments rather than walking the customer around the vehicle in the service lane upselling necessary repairs." Remember that the next time you get shunted onto the service department's voice mail.