First of all, the National Labor Committee says that less than 15 percent of its money comes from labor unions. So this is not a United Auto Workers' front organization. Second, in a phone call [below] Director Charles Kernaghan was clear that Toyota's Japanese factories adhere to the country's labor laws (even though you may be surprised to learn that ToMoCo's been on a two-tier wage system for decades). Kernaghan's beef is with the automaker's suppliers. "Toyota's much admired 'Just in Time' auto parts supply chain is riddled with sweatshop abuse," he insists. "Including the trafficking of foreign guest workers, mostly from China and Vietnam to Japan. They're stripped of their passports and often forced to work– including at subcontract plants supplying Toyota– 16 hours a day, seven days a week, while being paid less than half the legal minimum wage. Guest workers who complain about abusive conditions are deported." The organization's report is low on stats, big on anecdotes and focused on pious Prius celebs. And yet, it's a point we've brought up before. International automakers'– and their customers'– willingness to turn a blind eye to their suppliers' working conditions is a black eye for the business– albeit one cleverly covered by makeup. 

So GM's share price closes the day at $14.75, down 6.7 percent. The new historic low came in response to the news [reported here] that GM is going to borrow $10b to stay afloat. And yet tomorrow morning, GM CEO Rick Wagoner will report to work at RenCen and continue to do whatever it is he does to collect his $15.7m annual pay package. Obviously, I'm not surprised by this turn of events. Nor will I be surprised when Chrysler files for Chapter 11, or GM scores tens of billions of dollars in federal loan guarantees, tax incentives and good old-fashioned hand-outs. Or when Ford cries foul and makes sure it gets a piece of your tax money. But the thing that really amazes me: how long it's taken for the American media to wake up to the fact that our very own automakers have been going belly-up. This even as the carmakers have pulled the rug from under our feet, exporting our manufacturing base to Mexico, Canada, South Korea, etc. Or have they? What of all the transplants building cars in the U.S., presumably at a profit? More to the point, why should we reward companies that can make U.S. manufacturing work at the expense of those that can't? Ultimately, we can't.  

In today's most excellent editorial, Michael Karesh highlighted Toyota and GM's relative approaches re: creating and selling new automotive technology. Karesh didn't delve into the cultural differences between the two automakers. For insight into ToMoCo's slow and steady vs. GM's ADD, I offer this quote from Jeffrey Kluger's Simplexity: "Exploitative organisms are creatures with fixed niches and well-established survival strategies. An exploitative organism is unlikely to try something evolutionarily new, preferring instead to stick with what it knows and exploit its environment for familiar resources. This is good for the individual or the next few generations, since playing it safe prevents you from making adaptive mistakes. But it can be bad for the species, which may be slow to adjust to a rapid change in circumstances…. Explorative organisms tend to seek new niches, mutate fast, explore new survival strategies when the opportunities present themselves. This can be costly in the short run, since any evolutionary innovation has a chance of failing, but over the long run it keeps the species flexible." As mainstream manufacturers, both Toyota and GM are intrinsically exploitative organisms. But GM acts like an explorative. And therein lies its weakness. In case you were wondering. In any case, today's news…

Last night, I commented on the fact that Autoblog reported on Pamela Anderson's Viper sale– without postng a shot of her breasts. I was a little, uh, "under the weather" at the time. In fact, my alcohol-fueled analysis of AB's mammary aversion tested the limits of the phrase "in vino veritas." It was such a vituperative effort that Frank did something he's never done before: he pulled my post back from "published" to "draft" (ironically enough). For that I thank him. I have no business calling anyone anyone else's bitch, or pointing out that the words "I think" completely undermine a car reviewer's credibility. And just for the record, I never didn't sleep with a college girl because she had a poster of a saucer-eyed puppy on her wall. Anyway, I [now] applaud Autoblog for showing the editorial restraint that clearly evaded me in the wee hours. It's just one more reason TTAC will never be the autoblogosphere's "newspaper of record." In our defense, I bet we have WAY more fun than they do.

That's the headline on the press release sent by EPIC, the Ethanol Promotion and Information Council. Apparently, "Motorists are frustrated and angry about high gas prices. Everyone is feeling the pinch at the pump, which really underscores our need for biofuels," claims Toni Nuernberg, EPIC's exec director. "As gas prices continue to skyrocket, we must continue the push for the only current transportation energy option we have today-biofuels." Yes, well, by their own admission, EPIC's Royal "we" represents little more than the ethanol industry and wishful thinking. In a not-so-epic EPIC survey on gas prices, only 11 percent of 1004 online (opt in) respondents said they were "taking action to use and support [emphasis added] non-oil based energy." Some 47 percent they'd "like to" and a whopping 43 percent "no, I have not considered this." Anyway, I called Robert White, EPIC's Deputy Director, to ask how soaring gas prices worked in his members' favor. I was surprised to discover EPIC disagrees with the AAA; E85 is cheaper than regular gas! But wait, there's more…

We've finally removed the broken page view counter. The numbers we've been displaying for the last week or so have been completely misleading. We've been getting hundreds of page views where you've been seeing dozens, and thousands where you've seen hundreds. In sum, we're still bumping along at 580k uniques and 1.8m page views per month. Of course, I'd like to grow the site beyond this glass ceiling, but not crashing has been our number one priority. Not that I'm fucking complaining. Every single day, TTAC gets new registrations. Not many, but some. Every one is precious: a testimony to the fact that we're doing something right. Regardless of the numbers, our job to keep the Best and Brightest well supplied with new material, regardless of technical setbacks or disappearing features. (We're still working on restoring TrueDelta pricing and specifications, and we know the comment edit button's screwed for some of you.) At the end of the proverbial day, it's time for a nice bottle of Coppola's finest chardonnay. And while I'm drinking [some of] it, I know that I'm privileged to chronicle these amazing times in the automotive industry. And get paid for it, no less. I will do whatever I can to get this house in order. Meanwhile, thanks to our crack (as in expert) technical team and to you, for your patience.

Michael Karesh's deconstruction of J.D. Powers' Initial Quality Survey (IQS) got me thinking. Clearly, J.D.'s mob shelter behind the [accurate] assumption that most people can't be bothered to, as they say, "do the math." Just as automakers draw strength (or not) from our natural instinct to slot brands into clear-cut categories, J.D. plays to the peanut gallery's desire to quickly identify "winners" and "losers." Add in a bit of Argumentum ad Ignorantiam (a proposition is true because it hasn't been proved false) and voila! Porsche is America's most reliable car brand. An Audi is more reliable than a BMW. Never mind the difference between initial quality and five years down the road. Never mind the varying definitions of quality, or the fact that J.D. won't tell you its exact methodology. Pay no attention to the man behind that curtain because he's an old bald guy– just like that pathetic pre-tornado snake oil salesman. The '08 IQS represents the same sort of lazy thinking Detroit has been feeding itself– and feeding off of– for decades. It's one thing to fool others, another to fool yourself. Here, Lieberman and I attempt a reality check. 

Hunter S. Thompson's early work is his best. No, I mean his really early writing, before the inventor of Gonzo Journalism reported on– and then succumbed to– fear and loathing in Las Vegas. Back when Thompson wrote for The National Observer, Esquire, The New York Times magazine and other highbrow literary publications, the former USAF Airman was a wry observer of political, economic and moral corruption. And man, the guy could write. Hells Angels: The Strange and Terrible Story of the Outlaw Motorcycle Gangs was Thompson's greatest work, as passionate and informed a piece of non-fiction writing as you'll ever read. From there, Thompson lost focus. Well, "Dr. Gonzo" became the focus. And that's exactly what happened to the domestic automakers' upper management. At some point, they stopped worrying about building great automobiles and started thinking about… themselves. Their priorities shifted from cars to car-eers. And today's bad news is the result. Just as Thompson reported on the zenith of the hippie culture in San Fransisco, TTAC has born witness to the fall of Detroit. It ain't over yet. But the end is in sight. And it is truly terrifying. As Thompson isn't here to report on this epic tragi-comedy, we will do so in his name. 

Google is a rational thinker's nightmare. If a surfer has the slightest pseudo-scientific bent– astrology, phrenology, Dianetics, Jessica Albanism– Google reinforces their problematic predilection. For example, while Wikipedia defines numerology as "any of many systems, traditions or beliefs in a mystical or esoteric relationship between numbers and physical objects or living things," there are 6.8m more credulous alternatives. It's even worse if you start a search with the idea that numerology is for real. Enter "GM 29 percent" and you find the USPO's FlexFuel fleet gets 29 percent worse mileage than its gas-only vehicles, GM's SUV sales fell 29 percent in April, GM CEO Rick Wagoner got a 29 percent raise in 2002, GM sales in Brazil rose 29 percent in the third quarter of 2007 and GM reduced its output of Saturn vehicles by 29 percent in 1994 (the same year Tahoe sales increased by 29 percent). Search "GM 29 percent lapel" and The New York Times reports on the magic number. "In 2003, G.M.'s market share dropped to 28.3 percent, said Paul Ballew, G.M.'s chief sales analyst. That is down from 28.7 percent in 2002, and the first decline for G.M. in three years. Some G.M. executives have started wearing lapel pins with '29' on them to encourage employees to push the company's share over that figure." Guess who was CEO back then? Guess what GM's share is today? And guess who's still in charge? And while you're contemplating that non-mystical mystery, Justin and I discuss the day's car news.

As well it might, what with the price of gas at the $4 a gallon mark (apologies to our foreign readers for our pump shock). A quick digression… I love salesmen. Yes, they invented the word oleaginous. Yes, they are, in the main, morally compromised individuals. But there are very few other members of our society who're paid to be optimistic– especially in the face of disaster. That scene in Planes, Trains and Automobiles, where loser salesman Del Griffith sells plastic curtain rings to passengers at the bus terminal, is a perfect illustration how a salesmen can go from zero to hero in a heartbeat. Now, when I got a press release "RV Rental Firm Takes the 'Bummer' Out of Summer with Gas Rebate Promotion," I sensed the hand of a master. So I called Rob Tischler, President of Allstar Coaches, and stuck it to him. The resulting interview explains why Death of a Salesman is a comedy in Russia. If you know what I mean. [apologies for the audio quality]

Today's editorial on the Nissan GT-R's Nürburgring record (second fastest-ever lap by a production car) raises some interesting questions about the veracity of that claim. On one hand, who cares? My first experience in a proper car on a proper track– riding shotgun in a tail-happy 911 with Jody Scheckter at Porsche's Weissach test track– taught me I could never do what professional drivers do to get a car around a track in as short a time as humanly possible. Nor, for that matter, did I want to. (Scary is just a word for nothing left to think.) Even if the GT-R can lap the 'Ring faster than a Porsche Carrera GT, I can't. Paint me respectfully unenthralled. On the other hand, what about the truth? Nissan knew full well that setting a 'Ring record would guarantee positive PR. If they cut corners or fudged the protocol to do the deed, they should be held accountable. In fact, Nissan should make a public statement on the issue, so that we may expose their weasel words, or murmur appreciatively over their mea culpa or issue an apology for besmirching their good name. The ball's in your court, Carlos. 

A number of our Best and Brightest have emailed this link to The Wall Street Journal. The article seeks to reposition the American auto industry's most recent go-go years (1999 – 2005) as a bubble: a delusional miscalculation by the industry's movers and shakers that demand would increase, well, forever. In a sense, yes, absolutely. The Big 2.8 inflated their turnover with dodgy deals and bulk sales. And now they're getting hammered by unsustainable excess production capacity. But it should be said that The Big 2.8 have lost market share to their rivals, as well. In other words, their fall from grace is not just a reflection of a down market; it's a reflection of decades of competitive mistakes, misfires and misadventures. They didn't misjudge demand as much as they misjudged everything else. And it's not like they weren't warned. This website has been sounding the alarm for over five years. We predicted the death of SUV and truck sales. We flagged cannibalism. We pointed our fingers at image-bleeding brands. We highlighted hybrids. We rang the alarm on cash burn. We predicted the systematic pillaging of the UAW's multi-billion dollar Health Care VEBA (oh wait…). And TTAC will continue to ring in the changes, no matter how gruesome. The only bright spark in all of this is the fact that a blogger from GMNext has responded to a post. This is the first time Detroit's gone online with us. Perhaps they finally recognize they need strong medicine. But probably not.  

Stephan Wilkinson couldn't make his date with the Ford Flex press launch. So the former Car and Driver editor and occasional TTAC contributor graciously ceded his spot to Justin, who graciously ceded his podcast responsibilities to Michael Karesh. Our ace reviewer and truedelta.com partner in crime prevention acquitted himself admirably. And why not? Michael is our kinda guy. He shares our commitment to truth, justice and Steve McGarrret. Actually, knowing Michael (or at least Michael's age), I'm sure the consumer champion has no idea what I'm talking about, or the fact that Jack Lord spent the last two seasons believing he was the head of the Five-0 (itself a fictional agency). Fortunately, TTAC is not delusional. We know we're not perfect or infallible or particularly good at Parcheesi (for that matter). Once again, we thank our loyal readers for pointing-out our mistakes. We will always operate from the principle that we could be wrong, and provide space for those who wish to take a contrary position to our resident contrarians. We eagerly await the day when the playas themselves take those first few hesitant steps into the light. Meanwhile, Karesh.

And so it continues: the debate about the Toyota Prius as a fuel saver/economy car/green badge of honor/etc. over on Captain Mike's review. Sammy Hagar's off-hand comment about the Prius cannibalizing Camry sales intrigued me. For some strange reason– not anti-Detroit bias I can assure you (if you can be assured)– I'd never thought of the Prius as a cannibal. But it makes perfect (imperfect?) sense. If you're in the market for "inexpensive, efficient, reliable transportation that makes you feel good about not driving anything else," why wouldn't you choose the Prius over the Camry? Or, for that matter, the Camry over the Prius? We've heard rumors that ToMoCo's going to launch the Prius as a fourth brand. On one hand, yes. On the other hand, uh-oh. Toyota's entirely useless Scion brand (remind me again what PRODUCT-related focus they bring to the table) is one GM-style branding mistake. Launching a Prius brand would be another. In fact, it looks to me like Toyota could, some day, maybe, not beyond the scope of possibility, become the new GM (especially when the old GM goes C11). Hey, empires rise, empires fall. C'est la guerre.  

The problems at Chrysler are immense: lackluster products, development cutbacks, a hugely bloated dealer network, cash flow issues, you name it. And don't forget Chrysler Finance. Although the former cash cow is now behind the veil of private ownership, the lender is in deep doo-doo. Not as deep as GMAC's ResCap. If GMAC's mortgage unit goes down, it'll take GMAC with it, and, potentially, sink GM. Even if GMAC somehow makes it though this incipient recession, GM's supplier problems– including the unresolved strike at American Axle and the ongoing debacle at Delphi– are looking more and more like a Gordian knot making love to a black hole (thank you Jonny). In fact, taken as a whole, GM's problems are worse than they were in late 2005. Oh, did I mention that the window for Chrysler owners Cerberus to sue Daimler for fraudulent conveyance ends in early August? Folk, it’s getting ugly, and we're not even calculating Ford's woes or the simple fact that Detroit's manufacturing jobs are leaving the country. We will be here through these dog days. When the excrement hits the air re-circulation device, just remember: we told you so. And we will take no joy in what happens next.