In a world of wild ass rumors, the four door everyman’s supercar is King. Maybe. No matter how you look at it, you gotta wonder what these Nissan/Infiniti guys are thinking. Pistonheads says “Unconfirmed reports from Japan say Nissan engineers are actively evaluating a four door built on a stretched version of the GT-R platform, with a view to introducing a new flagship to the luxury Infiniti brand in 2011.” New flagship? So Infiniti GT-R sedan replaces the previous, now extinct Q-ship, slots above the M-people, pals around with the G-men and lives happily ever after? And if that’s not enough to make Infiniti a success in Europe, PH reckons the new GT-R car will be horsepower-deficient. “Sources suggest an output of around 420bp is on the cards, significantly down on the output of European super-saloon rivals. However, with the GT-R’s intelligent ATTESA-ETS AWD system and six-speed dual-clutch transaxle carried over, it will be interesting to see how the lack of outright muscle translates into track times – although Nissan insiders have apparently conceded that any Infiniti flagship will be tuned for luxury before ultimate performance.” Right, ’cause GT-R means luxury. Go figure.

New gtr r35 vs tuned nissan skylines gtr's

My, how things change. Just two short months ago, Automotive News [sub] publisher and editorial director Keith Crain was asking us to redefine our very notion of what an automaker is in order to justify Chrysler’s continued existence. “Who knows?” mused Crain. “Before too long, Chrysler might just do some engineering and perhaps a bit of design and let someone else build its vehicles. Chrysler would become a marketer rather than a manufacturer, sort of like Home Depot.” Fast forward through two months of bad news, and suddenly Crain has realized that just maybe it’s more likely that Chrysler will die rather than challenge paradigms. And though his latest missive “Just Put Up A ‘For Sale’ Sign” is doom-and-gloomy enough to get him membership in our rapidly-growing Cassandra club, he makes sure blame goes where it belongs: the fools who were dumb enough to buy the mess the last time it was for sale.

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Not bad, you know, considering. Considering that Chrysler has pretty much stopped spending money on capital expenditure (small stuff like developing new cars). Even so, ChryCo was quick to launch its crack [smoking] damage control squad. “Chrysler issued a statement saying that the second-quarter loss is $660 million when taking into account the differences between international and U.S. accounting standards,” The International Herald Tribune reports. “The Auburn Hills-based company says Chrysler’s automotive operations lost $570 million, with the rest of the loss attributable to Chrysler Financial.” So, that’s alright then? Anyway, Chrysler is continuing to negotiate with Daimler to buy the German’s automaker’s remaining share in the Crisis Corportation. “On a conference call this morning, Daimler Chief Financial Officer Bobo Uebber said negotiations with Cerberus continue. Cerberus is seeking to buy all of Chrysler and is negotiating with General Motors Corp., the combined Nissan Motor Co. and Renault SA, and other companies for the sale of Chrysler.” Yup, that about covers it.

According to Tom Krisher of the Associated Press, “A person briefed on discussions about selling Chrysler LLC says the automaker could be sold in pieces to other companies… The person said Tuesday night that many combinations are being discussed. The person asked not to be identified because he doesn’t want to be accused of being a moron for stating the blindingly obvious the talks are private.” How… helpful. Meanwhile, independent talking heads continue to heap scorn on the idea of a Chrysler – GM merger, even as it looks like the deal’s going down (predicted for next Friday). Phil LeBeau over at CNBC shares his “Three Reasons for GM Not to Buy Chrysler.” Here on TTAC we’ve been talking about the parting out scenario since well before the Cerberus/Chrysler deal was done. With Renault-Nissan not interested in a wholesale merger and GM struggling to come up with the cash to make the merger work, parting-out seems like such sweet sorrow. Stay tuned.

The imploding global auto market continues to, uh, implode. The Wall Street Journal reports that Nissan is scaling back worldwide production. Nissan Japan pulled 65k vehicles from its November through March schedule, and sliced 780 “temporary workers” from the payroll. (Little known fact: Japanese companies practice “full employment” by routinely classifying a large percentage of the workforce as temps.) Nissan’s September sales were downaround the globe, off 37 percent in North America, 27 percent in the UK, 23 percent in Spain and 5.5 perfcent in greater Europe. Nissan announced a two-week shutdown of its English Patient, er factory, and lopped 1,680 jobs off its workforce for Barcelona. Not a speck of good news anywhere. Ouch.

The former PR spinmeister currently writing under the Autoextremist moniker has long been one of Detroit’s most fervent not to say (’cause that would be rude) ardent supporters. No more. Peter DeLorenzo has put down his pom-poms and finally faced the truth about both GM and Chrysler. “GM’s foray into the idea of a Chrysler takeover exposed that company’s dire situation for all to see. Burning through cash at a prodigious rate – a little more than $1 billion per month according to estimates – GM’s search for crucial financing is getting beyond desperate at this point, and now everyone knows it… GM’s situation grows more precarious by the moment, and if they don’t make a deal for that much-needed infusion of cash soon – in the next 12 months, preferably less – then we could be contemplating the unthinkable. And that means not only the end of GM’s 100-year reign as the largest American car company and one of America’s historical industrial touchstones, but the end of General Motors, period.” As for Chrysler…

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We’ve been largely ignoring this possibility because, well, the GM – Chrysler merger thing is a much more appealing possibility, in that “how nuts do you have to be to be a top executive for a domestic car company” kinda way. But now that it’s OK to write news reports based entirely on anonymous sources, well, why not Chrysler – Nissan? I mean, Chrysler – Nissan – Renault? I mean, Carlos “The Jackal” Ghosn?  And The Detroit News is there! “The Renault-Nissan alliance is proposing to acquire around 20 percent of Chrysler LLC and bring the Auburn Hills automaker into the French-Japanese automotive partnership, according to sources familiar with the situation… Sources familiar with the discussions said Carlos Ghosn, CEO of both Renault SA and Nissan Motor Co., sent a proposal in recent days that included revisions to a draft agreement prepared by Cerberus… The sources said Tokyo-based Nissan would acquire the stake because it has cash on hand, whereas Renault now has debts of more than $5 billion.” So, which company does Cerberus favor to gut Chrysler like a fish? Go ahead and jump.

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We’re actually planning a few meetups in 2009 for TTAC readers and writers, many of them right here in North America. But with Captain Mike’s upcoming work-related assignment to Germany – a mere one hour from the Nurburgring – we’re going to have a European adventure as well. I’m beginning the search for sponsors (who? uh…). In any case, it should make for a downright thrilling trip, including more than a few frightening rides in the ‘Ring taxi. Separate from driving, I envision copious beer drinking and regional sausages. We’ll be sure to give you plenty of warning ahead of time, should you be planning any business trips to Europe, or be sitting on a pile of frequewnt flyer miles, or actually be an EU resident yourself. I’ll bring the Porsche 911 Turbo, you bring the Nissan GT-R.

Today’s Wall Street Journal headline gets right to the point: GM doesn’t have the money to do the deal with Chrysler. As for sources, you have to believe either A) The WSJ’s making this shit up or B) the ongoing leaks are official and intentional (otherwise the leaker would have been found and stopped by now). Anyway, getting the tax payers on the hook is clearly a key element of the scheme:  “It is still early days, but to make people feel more comfortable or to get investors to buy in, you have to think a government role would be important,” said one person involved in the talks. “That role could take a lot of forms, but it would be very important. The government may need to make it happen.” American Leyland indeed. Back in the day, the British government was the shotgun toting papa who pushed the kids to the altar and provided a dowry. GM’s COO Fritz Henderson is said to be the driving force for doing some kind of deal here. Considering the job ol’ Fritz has been doing leading the General’s charge up recovery hill, you have to wonder why anyone is listening to him. “Meaningful cost rationalizations” is the rationale of choice for the deal’s advocates on the GM side.  But over at Cerberus the motivation is simpler; get anyone to take this fracker off our hands!  How exactly they expect to get the government to put taxpayer money into a plan predicated on firing tens of thousands of people remains a bit of a mystery.  Sanity may yet rule the day, but don’t count on it. Meanwhile, Nissan is said to be pursuing an alternative alliance strategy with Chrysler based on a cross-shareholding arrangement. If so, they must not understand the simple fact that Cerberus wants out, stat.

With all the talk of GM-Chrysler mergers, many have lost sight of the fact that automakers hold strategic talks with each other on a regular basis. Of course, GM talks grab the spotlight, thanks to the sheer size of the company. But Chrysler is by far the more interesting story. The Detroit News reveals that Chrysler’s owners Cerberus Capital began entertaining offers from a number of firms within a year of acquiring the Pentastar brand. In addition to the now much-speculated-upon GM talks, Cerberus has also met “in recent months” with Renault-Nissan, Fiat and Tata, in hopes of pulling Chrysler’s fat from the fire. Unfortunately, we aren’t getting many details on possible tie-up strategies. Nissan-Renault talks certainly revolve around platform-sharing in the short-term, although Carlos Ghosn is said to be “dispassionate” on the subject of closer ties with Chrysler. “I think that initiatives, in terms of alliances, are frozen for a very simple reason: Everyone is scared of credit crunch and cash problems,” says Ghosn. And that’s really the issue. There are plenty of second- and third-tier global automakers that would enter platform and capacity sharing agreements with Chrysler, but nobody wants to break out the checkbook for an equity position. Especially considering Cerberus expects to retain a stake in Chrysler in the event of a sale. Why buy a failing firm in this market when your cash could be better spent on new product?

“Since around the beginning of this month, Nissan has stopped taking orders for the GT-R; the production line has been stopped. Various car magazines have suggested that the halt is tied to a price increase, a reaction to the economic crisis and the increased cost of North American production. On the other hand, Chief Vehicle Engineer Mizuno said that the GT-R would evolve; it’s been just about a year since the GT-R was first offered for sale. Nissan may be proceeding with an in-year specification change. In other words, the rumored line-stop is actually a planned line re-tooling. In any event, Nissan will not say when produciton will resume or when they’ll re-open the GT-R’s order books.”

While we await Andrew Dederer’s (or similar) translation, we are assured that Nissan has released this higher quality official version of their record-setting Nurburgring run to refute Porsche’s claims that their Japanese rivals were cheating. GTRblog.com says that “Nissan go on to say that the GT-R used in the official laptime was actually at a disadvantage due to up to 50 kilograms of testing equipment along for the ride. Offering Porsche some driver training lessons if they want to give it another try.”

[Note: TTAC translation after the jump.] “About a month ago, “GT-R will be suspended orders,” “a temporary stop of the factory production line,” or “to raise RERURASHII” such as spreading rumors. Many were picked up by car magazines, so many of you already know it. In fact, readers have also been inquiries about the matter, MENAKATTA reliable information for the article said. However, “the temporary suspension order” of the rumors, apparently was real  We found that around October 6 from the dealer orders for the GT-R has been temporarily suspended. However, the resumption of orders from what is not known at the time. On the other hand, “a factory production line” and “raised” about the rumors about the missing evidence. Rumors about the two of the following hypothesis is based. “Hike” about the current economic situation surrounding the automotive industry and raise the performance of Nissan North America, will be given a very high probability. On the other hand, “is evolving every year,” said Mizuno’s remarks were as CVE, GT-R will adopt the IYAMODERU. Released after one year from now, but it is not equal to the period. If this year will be the timing of design changes. “Temporary stop of the factory production line” rumors, the line for renovation under the influence would come true. In any case, GT-R is considering a purchase if the sales rep and keep in close communication is necessary. However, a formal case for release from Nissan. Mizuno’s really in the head, such as Spec V story, including what is being depicted?

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( NEW) GTR R35 VS C6 Z06 - first street race.

Last night, the New York Times “broke” the story that General Motors and Chrysler/Cerberus were discussing a merger. The report lacked only one crucial component: facts. As RF reported in his initial blog on the subject, the story unravels by paragraph two. We learn that the entire story is based on “two people close to the process.” While anonymous attribution is common new industry practice, a story without independent corroboration is a nothing more than rumor— especially when it defies common sense. General Motors’ assertion that they routinely talk to other manufacturers about collaborative efforts doesn’t count. But it does reveal the truth of the matter.

In fact, the GM – Chrysler/Cerberus meetings are an open secret. As The General’s spinmeister intimated, GM regularly engages in tech sharing discussions with a wide range of carmakers. Given Chrysler’s yet-to-be-realized tie-up with Nissan, its decision to provide re-badged minivans for VW and ongoing attempts to create a Chinese hook-up, GM is a logical “partner” for Chrysler ongoing campaign to outsource product development. And cut costs.

GM and ChryCo could be discussing rebadged Malibus. Or a Chrysler badged Cobalt. With materials costs soaring, the two ailing American automakers might be examining the possibility of sharing resources. Or looking for economies of scale re: suppliers. And, lest we forget, General Motors owns 49 percent of endangered auto and mortgage lender GMAC; Chrysler’s masters hold the other 51 percent. If GM and Chrysler are NOT talking to each other about GMAC’s future, there’s something seriously wrong (more wrong?) with both companies’ executive management.

It’s no wonder Times scribes Vlasic and Sorkin backpedal on their GM – Chrysler merger story. They tell us that their two sources estimate chances of a merger are “50-50.” There could be “significant roadblocks,” not including the fact that sewing two losing companies together merely makes a bigger losing company. But the real argumentative implosion comes buried in the story: “neither side has yet to dig into each others’ private financial books and records.” How serious can the merger talks be if the lawyers and accountants haven’t even begun diligence? Answer: they can’t.

Clearly, the providers of “all the news that’s fit to print” didn’t give the merger story a fitness test. In fact, this is a classic example of what GM shill Rush Limbaugh calls “drive by media.”

The 24 hour news cycle (of which this writer, typing after midnight, is a member) was quick to pick up the story and discuss all the implications. The CNBC network, “the recognized world leader in business news,” called in the big guns for comment: Ray Wert of Jalopnik. While we understand the mainstream media’s ongoing fascination with the “new hotness” of blogs, Wert screwed the pooch on this one.

Wert claimed that GM and Chrysler “have two different lineups that actually are very complementary.” This is just wrong. GM and Chrysler have nearly identical lineups, with some niche-product distinctions. Recognizing this, Wert contradicted himself in his next comment. “They’re both looking to sell a lot of large trucks and large SUVS, and it makes sense for them to manufacture them on the same platform.”

The CNBC hosts ask Wert about the financial issues in a merger. His vaguely dishes “My assumption is that Cerberus has probably bit off a lot more than they can chew, and with credit kind of crunching in right now it makes a lot of sense for them to try to jettison a company that isn’t providing something that isn’t to their core business plan.” Except that’s not what anyone is talking about. The story from The New York Times: Cerberus would end up with an enormous stake in the hypothetical GM-Chrysler firm.

CNBC concludes by asking Wert about potential issues with a merged GM-Chrysler and organized labor. “I think it’ll be easier for them to get some economies of scale on UAW talks. It’ll be easier to work out one deal as opposed to two deals.” Efficiency in labor talks is a secondary goal (talking for less time, paying fewer labor lawyers). The actual issue is concessions. There is no quantitative academic evidence to suggest that it would be easier for a gargantuan company to negotiate with the UAW and CAW than two very, very large companies. In fact, odds are good the negotiations would be even stiffer.

CNBC failed in its background research. They should have read the editorial Wert published the same day: “GM Will Go Bankrupt: Why That May Actually Be Good For The General.” Considering Wert’s previously held belief that GM would benefit from Chapter 11 filling, why did he suddenly decided that a GM-Chrysler merger be well-advised? Something to do with publicity perhaps?

All of this discussion blatantly ignores the glaring issue: a GM-Chrysler merger would be a disaster. And that’s the truth.

Sometimes, when we podcast, we just have too much fun. Jonny and I were yammering about the Nissan GT-R, Porsche’s PDK transmission, and of course Toyota’s ass-kicking Hilux and Audi’s bizarre plans for the R8 (which I still don’t totally grasp). The result? We ran way over time. Twelve minutes, forty-one seconds. That’s not okay. The mission is ten minute podcasts with perhaps a minute for a grace period. We’ll be sticking to time from now on. As for the video, never underestimate the stupidity of Russian oligarchs and their even stupider children.

WARNING: Podcast contains some profanity, including an f-bomb.