When it comes to moving the metal, Toyota doesn’t fool around. OK, they did do those stupid Tundra truck tricks. But how do you think a man like Mr. Toyonda got to be a man like Mr. Toyonda? By building on the brand’s rep for reliability. To that end, to expand the market for Priora and other hybrid models, Toyota’s adding “Toyota Certfied Used Hybrids” (TCUH) to their Toyota Certified Vehicles (TCUV) program. “Customers benefit from additional inspection and warranty coverage on Toyota hybrids within the program. Each vehicle comes with the three-month/3,000-mile comprehensive warranty, seven-year/100,000-mile limited powertrain warranty and roadside assistance plan offered on traditional TCUV models.” The program also “brings added awareness to a pre-existing eight-year/100,000-mile factory hybrid battery warranty.” In other words, same coverage, more rappers. The TCUH pre-certfication process includes 14 additional hybrid-related inspection points, including the hybrid transaxle, control modules and battery. Existing owners should benefit from improved residuals. Now, if Lexus will do the same for the LS600hL…

Farley was first. Last week, Ford’s marketing maven threw down for The Blue Oval Boyz, declaring Crazy Henry’s mob’s would grab a bigger slice of the new car pie. Now Ed Peper’s prognosticating a more prodigious piece of America’s deflated new car market. Chevy’s brand Veep stepped up to the microphone at the Automotive News World Congress (our invitation got trapped by the spam filter) and told the world– well, Detroit– that the bow tie brand is ascendant. “We gained six-tenths of a point of (retail) market share last year,” Eddy declared. “This was the second-highest year-over-year share gain among all car brands, behind only Honda.” Hang on; what’s this then? “Chevrolet’s 2008 total market share was 13.5 percent, down from 13.9 percent in 2007, according to the Automotive News Data Center. Toyota Division overtook Chevrolet as the top-selling brand in 2008, rising to 13.9 percent from 13.4 percent in 2007.” Hmmm. Anyway, you’ll never guess how Chevy will steal sales from its rivals. Government checks for buyers? Well, not directly. (Just kidding. Sort of.) Nope. Marketing!

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Breaking news: Fiat has just signed a “non-binding term sheet” with ChryCo. The Italian automaker will acquire a 35 percent interest in Chrysler for… nothing. No cash. No assets. Niente. And yet the Chrysler – Fiat deal comes complete with the United Auto Workers’ (UAW) blessing. It’s a nice thought: a global alliance to pull Chrysler’s fat from the fire, save the taxpayer’s bacon and uncook the UAW’s golden goose. But there’s zero chance of Fiat riding to the rescue of Chrysler. It’s just another part of Chrysler’s Big Lie.

Adolph Hitler said The Big Lie was effective because most people “would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation.” In this case, the lie is the idea that Chrysler is a viable automaker.

The fact that the company is utterly bankrupt without any chance of recovery is, obviously, besides the point. As long as there is hope that Chrysler has a future, the general public and their fear-mongering elected representatives will cling to the fiction that Chrysler can– indeed should– continue to exist.

To perpetuate that myth, to protect its federal lifeline, Chrysler must generate plausible possibility. Hence the stream of “news” coming out of Auburn Hills in recent weeks. Canada’s Magna Corporation may purchase Chrysler’s minivan plant. Nissan may produce a small car for Chrysler, and rebadge Dodge Ram pick-up trucks as Titans. A Chinese carmaker may buy unwanted (not to say unused) tooling for the soon-to-dead PT Cruiser. And now… Fiat buys into Chrysler.

In reality, Magna may want Chrysler’s Windsor minivan plant, but the company isn’t stupid enough to pay anything for it. Not when they can pick it up for pennies on the dollar after ChryCo’s collapse. In reality, Nissan is in deep trouble; it’s not going to build anything for Chrysler without [non-existent] cash on the nail. It’s also in no position to remount an attack on a market segment that’s both crowded and cratered (just ask Toyota).

In reality, China doesn’t need the PT Cruiser. And in reality, the Fiat deal has nothing to offer. Without any cash investment by the Italian automaker, without a single production-ready Italian vehicle on the horizon to lure Americans into empty, abandoned Chrysler showrooms, this non-deal does nothing whatsoever to ensure Chrysler’s long term viability.

The underlying causation for this non-news is simple enough. Lipstick. Pig. Apply.

On February 17, Chrysler will present their term paper to Congress: “How I Spent Uncle Sam’s $4b” (a.k.a. “The Three Headed Dog Ate my Automaker”). Chrysler’s representatives will attempt to prove that the company can [now] be restructured and resurrected to live a long, happy life. See? Things are happening! We’re building for the future!

Of course, Chrysler’s “business plan” was, is and will be complete BS.

CEO Bob Nardelli knew Chrysler was doomed to the dole back in December, back when he told Congress his employer could turnaround Chrysler’s fortunes with “just” $7b worth of federal loans. As is the way of such things, that was then. This is now. By mid-February, Boot ’em Bob’s boys will unveil phase II of their grand plan for Chrysler’s renaissance: get out of the manufacturing business.

The new plan is the same as the original plan: keep the brands and distribution network. Sell vehicles made by others rebadged as Chryslers. Limited capital and engineering required.

Meanwhile and in any case, Chrysler needs the same lifeblood as any other going enterprise: cash. Badge engineering and branding be damned; new car sales aren’t going to provide Chrysler with the funds it needs to sustain its operations and pay for its ongoing liabilities. Not now. Not later. Most likely, never. Asset sales won’t do the job, either. And Fiat’s sure as Hell not providing operational liquidity.

Blow away the smoke, pack away the mirrors, allow owner Cerberus to insulate themselves from accountability for their actions, and it’s clear that Chrysler has one source– and one source only– of cash: the U.S. taxpayer.

As any good politician knows, to fool some of the people all of the time, you need to change your story frequently. In other words, The Big Lie must be sustained by a steady diet of big ideas.

When it comes to Chrysler’s ongoing call on the public purse, the biggest of these is the Chrysler – GM merger. The concept: forget Chrysler and GM. We need to save American manufacturing! This American Leyland strategy is a stupendously bad plan which would make The General like Citibank: a company too big to fail with operating divisions that can never be properly integrated.

Which is exactly why it’ll happen.

On this day of change, Toyota is returning to its roots, announcing the appointment of Akio Toyoda as its new President. Toyoda will inherit his grandfather’s firm from Katsuaki Watanabe, just as Toyota is facing its greatest challenges in years. Even Watanabe recognizes the need for change, telling the Wall Street Journal “times have changed completely and … it really requires very bold reform and something that is outside of the box.” And Toyoda hopes to reach back to the foundational principles his grandfather endowed to his firm, while injecting a relatively youthful perspective (Toyoda is 52 years old). “I will go back to the basics of the foundation of the company,” says Toyoda. “But at the same time I am not bound by past history. I intend to exercise as much boldness as possible in pushing ahead with the reforms.” Though a Toyoda hasn’t led the firm since 1995, Toyota also hasn’t lost money since it was founded. To fight the tide of bad news, Reuters reports that Toyota has announced further production cuts. Domestic Japanese production between February and April will be cut in half compared to last year, with plans for only 9k units of production. This will include an 11 day furlough at 11 of its 12 Japanese plants.

While perusing the comments on the capsule SRT8 review, our own Karesh’s stood out, Specifically this part, “During media days at NAIAS I told every manufacturer who cared to listen (and a few who did not) that the largest unfilled hole in the market is a 3,000-pound RWD compact sedan with a base price in the mid-twenties.”There’s been talk for a while now about the joint Subaru-Toyota RWD Coupe (basically an AE86 replacement) that would sell for around $21,000 and have the drift kids pooping their pants with excitement. Sadly for them (and Hanes), it’s looking more and more like Toyota will be shelving that particular cheapie coupe until at least 2012, if not scrapping it altogether. So that particular hole in the market remains. Especially as the BMW 1-series is a joke in base trim and the twin-turbo edition is over $40,000. So yeah, I agree with Michael that right now a cheap, rear-driver coupe is the market’s gaping hole. You?

As Robert wrote earlier, GM is piling on the incentives to move metal in a January market that seems to be moving like molasses. And though GM and its finance units are benefiting from the largess of the federal bailout bonanza, their decision to delay incentive payments in December is putting the squeeze on its dealer network. Especially as they’re forcing dealers to buy more inventory in order to qualify for incentive cash. Automotive News [sub] reports that GM’s $4b loan “provided a short-term relief,” but  “it didn’t fix the issue,” according to GM’s Mark LaNeve. La Neve tells AN that he isn’t planning on altering the incentive schedule. So, although payments have resumed, they are now two weeks behind schedule. And he doesn’t know when they’ll return to the normal schedule; it all depends on when tranche deux of the federal sugar shows up. Meanwhile…

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Ex-Toyota and current Ford marketing maven Jim Farley tells Automotive News [AN, sub] that The Blue Oval Boyz “expect” to stabilize their U.S. market share– after a 13-year decline. And if that’s not stretching the boundaries of credibility (your call), Jimbo reckons the new Lincoln MKT and, what was it again? MKS “could” increase the luxury brand’s slice of the American pie. “We think we have a really good chance this year. We don’t know what the luxury market is going to look like, but the one thing we’re really focused on is making sure that people see our products as aspirational and they pay the price.” Although Farley fails to provide a plan to achieve this goal, AN reckons it could may maybe perhaps happen. “Lincoln could gain share even as the brand’s total sales fall below 100,000 for the first time since 1982. Lincoln finished 2008 with sales of 107,295, its lowest total since 1983. With forecasts for lower industry sales in 2009, executives acknowledged that new-vehicle entries may not be enough to keep Lincoln sales in six figures.”

Definitely infrequent for a few weeks while I’m in Europe, hunting the elusive Euro: An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Berlin – when I’m in Berlin.

Hybrid price war: Toyota plans to lower the Japanese price for the existing Prius hybrid when it releases a redesigned, more efficient version in May, the Nikkei (sub) writes. Japan’s top automaker will continue to sell the existing Prius after the new version’s release in May. Toyota plans to cut the price for the current model to around 2 million yen. Rival Honda is slated to release the Insight hybrid in February, with a starting price of less than 2 million yen. The remodeled Prius will cost 2.5 million yen.

Mazda cutbacks: Mazda will slightly increase plant operating hours in Japan in February and March, but will stick with its plan to cut output through March by 100,000 vehicles or more in addition to the originally planned 73,000-vehicle cutback for the period, the Nikkei (sub) writes. Mazda has started cutting salaries of manager-level employees by up to 10 percent from this month. Its executives already began returning 20 percent of their salaries to the company from December.
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Definitely infrequent for a few weeks while I’m in Europe, hunting the elusive Euro: An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Berlin – when I’m in Berlin.

Toyota closed on Saturdays: Toyota closed all of its 12 Japanese factories Saturday in response to the worsening global sales slump. Toyota plans to suspend production for a total of three days in January, the Nikkei (sub) says. Toyota will have a total of 11 no-work days in February and March. As a result, its daily production capacity in February and March will fall to 9,000 units, about the half the year-earlier level. Toyota also plans to reduce output by closing all seven vehicle assembly plants in the U.S. and Canada on some days through early April.

Buyers return in Beijing: After disappointing sales in the second half of 2008, China’s auto market is showing signs of life. As the Lunar New Year holiday season approaches, prices have been cut and favorable credit sales policies expanded to lure customers into showrooms, Gasgoo writes. Sales in Beijing’s biggest auto market have jumped over 40 percent compared to the same period last year. Financing is becoming more popular. Currently, only 10 percent of car buyers in China financing vehicles, the rest pays cash.
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Definitely infrequent for a few weeks while I’m in Europe, hunting the elusive Euro: An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Berlin – when I’m in Berlin.

Toyota shifting down in NA, again: Toyota will shut down all seven vehicle assembly plants in the U.S. and Canada on some days through early April, as part of an effort to cut growing stockpiles by half, the Nikkei (sub) reports. The number of non-operating days will vary by facility. The production line for the Sienna minivan at the Indiana plant will be stopped for 30 days. Toyota had shut down some production lines in the U.S. for three months starting last August. Toyota hopes to reduce inventories from the current 80-90 days to the desirable level of about 40 days by the end of June.

Nissan shifting down in Japan, again: Nissan will reduce Japanese domestic output by 64,000 vehicles in February and March from its earlier output plan, prompted by an increasingly decelerating global auto demand, the Nikkei (sub) says. The company had already announced reduced production as sales at home and abroad tank. Nissan had decided to dismiss all non-full-time workers by the end of March. Although it has no plans to shed any full-timers, it does intend to reduce their base pay for February by designating some of the days the plants will be idled as non-work days.

Honda shifting down in Japan, again: Honda will cut production in Japan for this fiscal year by 56,000 vehicles on the continued slump in auto sales, the Nikkei (sub) writes. The latest production cutback follows a domestic output reduction by a combined 86,000 vehicles that Honda already had announced. Japan’s second biggest car maker by volume now expects its domestic output to total 1.168 million vehicles in the fiscal year ending March, down 10% on year.

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Toyota is declining to provide details on its next round of U.S. production cuts. Automotive News [sub] illustrates the automaker’s newfound inscrutability. “This is a tough environment, and it may continue for a while,” said Jim Wiseman, Toyota’s vice president of English understatement. Just kidding: Jim’s ToMoCo’s Veep of external affairs. “In addition to slowing production, we are redoubling efforts to cut costs at each of our facilities,” Wiseman added, ominously. Although we don’t know the who, what and when of the cutbacks, Toyota’s why is quickly becoming an industry rallying cry; call it the ET or “even Toyota” defense. “The industry downturn has caused inventories to build up even for Toyota, which is known for running lean and cost-efficient production where parts are delivered in a ‘just in time’ system to be installed in vehicles on the assembly line. It had already reduced North American production of its best-selling cars, including the Camry and Corolla sedans, and suspended work on a new plant in Mississippi that was due to start producing the popular Prius gasoline-electric hybrid car from 2010.” Not so popular now, eh Mr. Bond-san?

Here’s an Insight: Honda has publicly declared its intention to rebrand itself as the environmentally-friendly/responsible car company. I guess the power of dreams is the power to save the world. For some reason, despite its participation in the now-theoretical gas-guzzling segment of the market, good old reliable Toyota also has designs on that mindspace. As part of the Japanese automaker’s ongoing campaign to cloak itself in the mantle of not so mean mean green, Toyota’s relaunched it’s Why Not? website. It’s a virtual world without a single man-made sound (except the digital bird noises), where clickable bits of paper provide ideas for improving your carbon footprint, eliminating waste and generally protecting the world’s resources for our children (it’s always about the children). Although the idea’s authors names are withheld, you too can submit your planet-saving ideas to the site. So no public recognition, BUT your entry could win you a week-long trip for a VIP tour of Toyota’s plant in Kentucky and a chin wag with unspecified “top innovators” in New York City. No disrespect to the KY’s ToMoCo workers (who may or may not be working at the time of the trip), but a week seems a bit… much. Me, I’m thinking Hoover Dam and the straight to Vegas baby. Anyway, why not submit your Why Not? ideas here as well?

The Detroit Free Press reports that Ron Gettelfinger is confused. Yes, the United Auto Workers (UAW) boss is waiting for “clarification on loan impact.” You know the loans, right? The $17.4b hoovered from your tax money to prop-up the bankrupt automakers known as GM and Chrysler (not to mention the $25b retooling loans, which seem to have dropped off the MSM’s radar). The same “bridge to nowhere” loans that require the UAW to agree to wage and benefit parity with Toyota, Honda and Nissan’s American workers before the rest of the money– however many billions that will be– can be shoveled in Motown’s direction. “During an interview on WDET-FM (101.9), Gettelfinger reiterated his complaint that the loan terms dealing with the union are unclear.” What is it with Ron and radio? Why can’t he give the print boys his best stuff? And what doesn’t Big Ron understand about “parity?” “There’s a lot of provisions in the loan guarantees that the companies had to sign,” Gettelfinger said. “We don’t really have any documents to work from other than their loan agreements, so we’re waiting to see until President-elect Obama gets in power, then we’ll see how this thing comes out.” Badly. I assure you. Maybe not in January or February or March. But soon. And forever.

“Like most people, we here at Toyota love good news.” And God knows there’s not a lot of that going around these days. Even for the royal we here at Toyota, where we’re used to making more profit per year than GM’s market capitalization. No really. “So the following piece of business from the Insurance Institute of Canada (IIoC) interests us a great deal.” Well, the intern in charge of finding non-controversial Toyota-oriented material for Open Road, anyway. “The thing that’s caught our attention is a list from IIoC that purports to detail the 10 vehicles that were the most frequently stolen in 2008, and also the 10 cars least frequently stolen.” Sorry about that “purports” thing. You try and post blogs every day with Legal breathing down your neck. “So the good news is that the IIoC listed no Toyota products on the most-stolen list. None. Zilch. Nada. There are lots of other brands represented there, some of them repeatedly. Some luxury brands, some aging economy brands. But not us.” I swear, if TTAC says one thing about how this proves that we’re somehow undesirable, they will not get one press car. Do they get press cars? Oh, OK. Never mind. [List of most and least stolen vehicles after the jump.]

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I’m a third generation mule trader. Grandpa literally bought mules and cows from the rural outskirts of Bavaria and sold them at the nearby cattle auctions. Dad’s been a food importer since 1949 for a company called Roland where he’s sold to Chinatown wholesalers and store owners for nearly 59 years. As for yours truly? I have auctioned off and horse traded the modern day mule at thousands of dealer sales. I love cars. I love the auction business. Most importantly I love learning. Educating people about cars and auctions, creating the urgency to buy, and learning about managing cars AND people is what I do outside my family life. It’s engaging. It’s a pain in the ass. And it would be completely unnecessary if people looked at a car the same way I do.

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