Once upon a time, way back in 1959, a company called Datsun imported a funny-looking pickup truck with a small bed and tiny engine, giving birth to the compact pickup market in the U.S. After a slow start, the market grew, as did the competition. The 70’s brought onslaughts from Isuzu, Mazda, Mitsubishi, and even VW. After the dust settled, the small truck market in the U.S. belongs basically to the Toyota Tacoma, Ford Ranger, Chevy/GMC Colorado/Canyon (for now, anyway) and Nissan Forester—the direct descendant of the Datsun that started it all. Fifty years later, what hath Nissan wrought?

A 2008 Suzuki Forenza. After reading the owner reviews, it pained me to even think about buying the car. I found a 2008 S model on eBay for $6700 (incl. bogus fees). Only 7500 miles? What a deal! But for whom? Since this car was sub-par for a multitude of ‘too cheap for their own good’ owners, I deep-sixed it. That left on eBay a Kia Rio LX, a Chevy Aveo LT, a Ford Focus SE (with about 15k more miles), and the ringer: a 2008 Toyota Yaris. Prices/mileage were $7100/16k, $8000/21k, $8500/33k and, ahem, $10,700 with 12k. All automatics. All with power windows/locks. None with sunroofs or any other high end stuff. Just good solid A to B transportation with a lot of good owner feedback. On second thought, screw it. I don’t believe a tightwad would be happy with real world fuel economy in the mid-20s so I’m nixing the Aveo. Begone! As for the other three . . .

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You know this one is going to be good. Auto Motor und Sport says the two giants are having a little klatsch about platform and technology sharing, with typically crazy rumors flying out of the discussion. Mercedes hasn’t planned its next-generation A- and  B-classes yet, and Toyota is looking to rationalize its European production capacity. Could the Merc A/B end up sharing parts, platform or even production with future Toyota models? It sure looks like the possibility is on the table. But that’s not the weirdest rumor. There’s even talk of sharing costs between future generations of the Mercedes S-Class and Lexus LS. Plus Toyota is reportedly interested in Mercedes’ battery technology. Or is that Tesla‘s? As tempting as it is to simply dismiss this all out of hand as just another wild-ass rumor, the Aston Cygnet proves that Toyota is more willing to enter into ridiculous deals than you might imagine.

Toyota‘s sales last month fell 34.6 percent, moving 131,654 units. Bread-and-butter Camry and Corolla sales were down 39 and 54.6 percent respectively. In contrast to calls by the media and government for greater efficiency, sales of the frugal Yaris were down 40 percent, although Prius sales increased 6 percent to nearly 13,000 units. Scion nameplates were all down by 60 percent or more. RAV4 continues to be one of Toyota’s most resilient models, holding steady with a .6 percent increase to just over 10,000 units sold in June. Highlander held on with only a 3.8 percent drop in sales, but other SUVs were off by between 38 percent (Land Cruiser) and 80 percent (FJ Cruiser). On the Lexus front, the RX was up 21 percent and the IS dropped a mere 23 percent. Otherwise Lexus results ranged from mediocre (ES down 34 percent) to bad (GS, LX both down over 60 percent.)

Chrysler press release: “Overall industry figures for June 2009 are projected to come in at an estimated 9.7 million SAAR. ”
Expected around 10 million . . . depending on who was doing the expecting.

Automotive News:

BMW Group –20.3 percent
Chrysler –41.9 percent
Daimler AG –26.4 percent
Ford Motor Co. –10.7 percent
General Motors –33.4 percent
Honda –29.5 percent
Hyundai Group not reported yet
Jaguar Land Rover not reported yet
Maserati –47.9 percent
Mazda not reported yet
Mitsubishi not reported yet
Nissan –23.1 percent
Porsche –66.0 percent
Subaru +3.4 percent
Suzuki –78.0 percent
Toyota –31.9 percent
VW -21.3 percent
Other –23.7 percent
TOTAL –28.4 percent

First six months 4,177,830 units sold, –37.2 percent

Update follows

The issue: the optional HID headlights of the circa-2006 Prius are prone to turning off at random times, usually not at the same time. When this happens, they must be turned off, then on again. To fix the problem, Toyota dealers sometimes recommend replacing the entire HID system, at a cost of $1,700. Owners are launching a class action suit to force Toyota to cover these failures out of warranty. “Prius headlamp troubles could dim Toyota brand’s reputation,” writes Jean Halliday in yesterday’s Advertising Age and Automotive News. I’ve suggested that manufacturers pick up the cost of common problems out of warranty. That said, this story seems driven more by a media agenda rather than by the facts.

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First, engine sludge in the Camry. Then, rusty frame rails on the Tacoma. Advertising Age (of all people) reveals the latest problem to tarnish Toyota’s solid gold quality image: the Prius’ HID headlights. A number of owners of Toyota’s green machine weren’t well pleased happy their high intensity headlights died after a few years. No surprise there; replacing them runs up a $1000+ parts and labor bill. Owners claim HID death is a “a dangerous but undisclosed safety defect” and that Toyota has “long been aware of Prius’ HID headlight problem” and is “concealing the problems from owners.”

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Will they or won’t they? First, the factory. GM’s announced they’re bailing on NUMMI. Bloomberg says Toyota may be considering the same thing. Once GM turns its door keys over to Toyota, the Fremont, California, plant becomes Toyota’s highest-cost factory and the only one manned by UAW workers. With other US plants’ excess capacity (including a mothballed Mississippi manufacturing facility) and lower operating costs, ToMoCo may well pull the plug on NUMMI. Problem: PR. Shutting down a plant in economically-challenged California (Toyota’s biggest market) and putting another 5K people out of work wouldn’t endear the Japanese automaker to the public or their politicians. (GM, of course, would get none of the blame.) Now about that GM – Toyota Synergy Drive deal . . .

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“A rapid emergence from bankruptcy creates the highest probability of avoiding the catastrophic and expensive meltdown in GM auto sales that virtually all industry observers predicted,” Harry Wilson of the Presidential Task Force on Autos tells Automotive News [sub]. Note the use of “auto sales.” Because bankrupt automakers don’t sell cars, right?

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Bloomberg is reporting that GM CEO Fritz Henderson will meet with Toyota President Akio Toyoda this August, and that a GM rebadge of the Prius could be on the agenda. “Two people familiar with the plan” confirm the Prius angle, and with the death of the Pontiac Vibe, GM certainly has to figure out what it will do with its NUMMI capacity which it shares with Toyota. “Having a stronger line-up is an urgent matter for GM,” says Yoshihiro Okumura of Chiba-gin Asset Management Co. “Demand will continue to shift to small cars.” But neither automaker will even confirm that plans for an executive meeting of the minds is on the table. Moreover, as Jim Hall of 2953 Analytics points out, “Toyota is not normally in the practice of giving away the crown jewels.” On the other hand, GM has recently canceled its only hybrid car, the Malibu Hybrid, and the sale of Saturn to Penske will further cut into its hybrid offerings.

UPDATE: Our Frank Williams points out a GM press release that just hit the wires which says “As part of its long-term viability plan, General Motors has decided that its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota will not be a part of the ‘New GM.’” The plot thickens.

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Ford is jumping on the recently-signed Car Allowance Rebate System (a.k.a. Cash for Clunkers) to lure customers into the showroom. Ford’s home page includes a highlighted link to the “Recycle Your Ride” program. A prospective Ford buyer can enter details about their current vehicle into a drop-down menu system and quickly see if it qualifies for scrappage. They can also discover which Ford models earn the $4500 or $3500 federal voucher against the crusher candidate. So far the Dodge, Chevrolet, Honda and Nissan websites have nothing. Toyota and Volkswagen both offer primitive informational pages, but nothing to match the sophistication of Ford’s effort. You would think the government-owned auto companies would be all over the government-run incentive program. But no. And get this: KBB’s man tells the New York Times that the consumers might be better off without the vouchers . . .

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The FIat 500 may be the only Fiat-branded vehicle to be sold in the new Fiatsler empire, but according to Automotive News [sub] the model will be offered in four, possibly five body styles. “Hatchback, convertible, station wagon and sporty hatchback,” models will roll out of Chrysler’s Toluca, Mexico, plant starting in 2011. Or not? AN suggests that a US production site for the 500 could under consideration, despite persistent hecho en Mexico rumors. And that “sporty hatchback”? It’s the Abarth! Will Americans only be offered the 135 hp Abarth, or is the 180 hp Abarth SS on the docket as well? No word from Turin (er, Auburn Hills?) yet. Oh, and how small is the 500 again? “About 10 inches shorter than Toyota’s Yaris hatchback?” That’s small.

[TTAC reviews the 500 here, TTAC lists Google Translate(d) foreign reviews of Fiat products here.]

In fact, Jean Jennings loves her some, well, anything—as long as the company providing the four-wheeled thing butters her bread either directly or indirectly (via advertising). Way back in March 2008, TTAC took the president and editor-in-chief of Automobile magazine to task for pimping for Jeep. Now, even as Old GM becomes Old GM II (a.k.a. New GM), the bankrupt automaker’s turning to Jean for a spirited defense of their beleaguered plug-in Hail Mary. This, remember, is the car the pre-C11 GM Presidential Task Force on Automobiles dismissed as . . . well, shall we recap? “GM is at least one generation behind Toyota on advanced, “green” powertrain development. In an attempt to leapfrog Toyota, GM has devoted significant resources to the Chevy Volt. While the Volt holds promise, it is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.” Anyway, misery loves company. Automobile magazine’s owner, Source Interlink, recently emerged from bankruptcy. Despite the objection of the IRS. See what paying Bill Clinton $15.4 million in do-nothing consulting fees can do for you?

Aston Martin is thinking small. In what has to be the ne plus ultra in brand dilution, they will offer the “Cygnet” in 2010. And what, you ask, is a Cygnet? It’s a rebadged Toyota iQ. No, I really didn’t make that up. According to Bloomberg, James Bond’s favorite autobuilder will sell a “luxury commuter” based on Toyota’s three-seater one-liter city car. It’ll be built in Japan and sell (somewhere) for a yet-undisclosed price. Let’s just hope the Cygnet doesn’t mark Aston Martin Lagonda Ltd.’s swan song.

The August issue of Consumer Reports has started to arrive in subscribers’ mailboxes and features a review of the 2010 Honda Insight Hybrid. Guess what. They concurred with Michael Karesh and panned it, citing the lack of oomph, room, and refinement. CR didn’t like the original 2-seat Insight, either, citing the lack of oomph, room, and refinement, but at least it got 65+ mpg.

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