The sun never sets on TTAC’s devious empire. While America Slept (WAS) is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Our pledge: No feelings will be hurt (except those of automobile execs, one copy-writer, and the gravitationally challenged.)

Opel’s ad attack: While other car companies slash ad budgets, GM’s Opel unleashes a Blitzkrieg on the German populace. “Opel Secures Future” blares the banner headline of full page ads appearing in national German newspapers. [NB: The line doesn’t say “Opel’s Future Secure”]. According to Bloomberg, the target of the ad-attack is to “reassure car buyers that may be spooked by the woes of its parent.”  The copy-writer must have been high on something, hyperbole at the very least:  “Opel is financially solid and as a brand and a company not at risk.” Boerse-Express says the true aim of the ads is Opel’s foot: “If they are doing so well, why loan guarantees?” Good question.

GM in denial: RenCen weighs in on the topic, says “Opel is not for sale.” Not because they wouldn’t want to. GM flak Tom Wilkinson tells AFP that brands like Opel “are so integrated into GM’s global operations, we would not or could not sell them.” Darn. Nothing works anymore.

Dealers ready to buy Opel: Opel’s German dealer council met last Tuesday and discussed to buy Opel themselves, before Opel goes under. “This is under serious consideration,” says Paul Schäfer, GM of Opel Staiger in Stuttgart, to Automobilwoche (sub.) The money could be raised. Despite (or because) of GM’s denials, the dealers are worried. In the meantime, non-essential expenses, such as a new CI for dealers or a revamped DMS have been put on ice.

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J.D. Power has released its latest Sales Satisfaction Index Study results. And once again, some people are confused by what this survey measures. Edmunds: “In an unusual twist, many Asian brands — including Honda, Toyota, Scion, Subaru, Suzuki, Hyundai and Mazda — ranked below the industry-average customer satisfaction score in the study, despite gaining market share over domestic vehicles.” Shock! Horror! How can customer satisfaction with the triumphant Japanese be below average? Because this survey has nothing to do with the car, and everything to do with the dealer. As in past years, the differences between the scores is small. Nearly every mainstream brand falls within 20 points of the average on a 1,000-point scale; the difference between the top and the bottom is less than 1,000 points. The most surprising result– also not news– the average car dealer scores 857 out of 1,000. Think of it this way: if car dealers are so good, and the average level of satisfaction is so high, then why do most people prefer root canal surgery to visiting a car dealer? [ED: By the same token, why doesn’t Anita Lienert read TTAC?]

[Michael Karesh runs TrueDelta, a TTAC data provider]

These are stressful times for Detroit. All that Motown’s mavens held dear is dead or dying. The shock is equally brutal for the town’s cheerleaders, whose teams have all been routed and now, publicly humiliated. Automotive News’ [sub] Edward Lapham has snapped. The Executive Editor has penned a column that sounds not a small amount like a suicide note: “See! See what you’ve made me do! Well, I’ve done it. I’ve killed myself. NOW how do you like it?” To wit: “Those of us who want the Detroit 3 to avoid bankruptcy need to think outside the box. I hate to admit it, but there’s some hidden wisdom among the silly things said by politicos and others who don’t understand the auto industry. No, not all the talk about letting General Motors, Ford and Chrysler use Chapter 11 as a kind of boot camp to whip themselves into shape; that’s just too asinine to consider. I mean the admonishments to be more like Toyota, Nissan and Honda. Think about it. Now that the Detroit 3 have narrowed the gaps in productivity, quality and labor costs, the transplants have one obvious advantage: Their headquarters, engineering staffs and main product development operations are all overseas. To them, America is a colony. So GM, Ford and Chrysler ought to move. Great! That’s settled. Now the only question is: Where should they go?” Some outside observers who’ve listened to the domestics’ camp followers unseemly combination of whining and bullying– as expressed here– might suggest some place consistently hot. But I couldn’t possibly comment.

The cynical amongst you will see this as a direct rebuke to Detroit: a shot across the bow of the Big 2.8 execs who sat in front of America’s duly elected representatives and refused [almost] point-blank to take a pay cut, whilst asking for a $25b federal “bridging loan.” And so it is. But anyone who thinks Toyota is trying to make Motown look bad– a pursuit in which they need no special assistance– doesn’t have a grasp on the “Toyota Way.” Even before this auto sales meltdown, the Japanese automaker’s top ten execs earned less money COMBINED than Ford’s Alan Mulally, Chrysler’s Bob Nardelli and GM’s Rick Wagoner (individually). In fact ALL of Toyota’s execs together earned 3.92b yen. That’s $40.5m. And now Yomuiri reports “Toyota Motor Corp. will consider cutting the pay of its directors in fiscal 2009, it was learned Wednesday. The aim of the nation’s top automaker is to clarify the executives’ management responsibility after the company announced last week that it expected a 73.6 percent dive in group operating profit for fiscal 2008, due to sluggish new car sales resulting from the global economic downturn. Toyota also expects reducing the remuneration of its directors to set an example as the company prepares to embark on thorough cost-cutting.”

When America gets out of bed, Tokyo is heading home in crowded subways, and Europeans still finish long lunches. While America Slept (WAS) is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Due to popular demand, today, no sordid jokes. Get A1 if you want spice.

Aussie wants SAIC to buy Holden: In the SAIC-buys-GM saga, Melbourne-based publisher of GoAuto.com.au, John Mellor, said to Gasgoo that “Holden could wind up in the hands of SAIC and being Asian-owned could help springboard the local industry into the growing Asian car markets.” While Dear John was at it, he also opined that Australia could be bought by the Indian-based Tata Group.

Opel stunt a derivates play? As reported, the German company SolarWorld AG offered €1b to buy Opel Germany. German wags think the SolarWorld is a “marketing stunt” at best. Other think, SolarWorld lost their mind. For sure, SolarWorld’s stock tanked on the news. SolarWorld’s CEO Asbeck denies this morning via Reuters allegations that the matter was a derivatives play. Asbeck still claims he’s serious, and that he has “received a different answer from GM HQ than from Opel.” Opel yesterday said: “Nein.”

Opel survival guaranteed: In its final hour, the parliament of Hesse approved up to €800m in loan guarantees for Opel, writes the Rhein-Neckar Zeitung. After the money was approved, the parliament dissolved itself. New elections are scheduled for January. The loan guarantees are in place for the unlikely case that GM goes bust. Wait, there’s less …

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Auto shows are intended to be recipes for excess. Take one excessively large convention hall, fill it to capacity with excessive quantities of costly chrome and metal, mix in a few brigades of excessively attractive women, and cap it off with a cadre of excessively awkward journalists (present company excepted, er, we hope) to glorify the results with excessively vapid superlatives. But that was before Carmeggedon and the Great Credit Crunch of ’08 came to town, raining on the parade with an excessively nasty vengeance. Cars are a serious business, and 2008 is looking to be about as serious as it gets.

This year’s extravaganza is most noteworthy for what isn’t happening. For starters, General Motors is a non-starter. GM has canceled both of its planned new vehicle debuts. Neither the new Buick Lacrosse nor the Cadillac CTS Coupe made the trip. Car Czar Bob Lutz, who was previously scheduled to make an appearance, is also staying home. Maximum Bob isn’t having lunch at the RenCen by himself; every other spokesperson within the GM public relations squadron, i.e. anyone who might have been required to field skeptical questions from a editorially-liberated pack of hacks, is likewise giving this show a wide berth.

Not to be outdone by its erstwhile merger partner, the Cerberus-Chrysler team was apparently too preoccupied by the Mervyns bankruptcy liquidation to dispatch anyone here, either. Aside from a few electric concepts, Chrysler has no product launches and provided no PR staff to manage and dazzle the press corps. It gets worse – according to the Los Angeles Times, the Three Headed Dog is offloading much of the cost of this year’s fete onto its Southern California dealers. The Auburn Hill Boyz have been establishing a now-familiar pattern of cramming down their problems onto their retail network, and the LA show is proving to be no exception.

Renault-NIssan head Carlos Ghosn established the weary-although-optimistic tone in his keynote speech, which opened the event. Ghosn is probably the closest thing to a rock star that you’ll find in the auto industry, and his talents for salesmanship and managing a room are top notch. Le Cost Killer fired on all cylinders, masterfully packaging the greenbacks-for-green-tech message that has been offered far less convincingly by Detroit’s troika of CEO’s.

Few seemed to notice the irony of Ghosn touting his vision of an emissions-free future on the very same day that Nissan was launching its 370Z sports coupe and Infiniti revealed its convertible, abundantly-pistoned G37.

Other subtle signs of the industry implosion are evident throughout the floor. A deathly quiet hovers across GM’s vast acreage, which occupies what should be a high-traffic area in the middle of the Convention Center’s South Hall. Much of the obligatory well-dressed eye candy seems to have been given the day off. Most painful for a hungry, coffee-powered observer such as yours truly, the customary sponsored sit-down luncheon was quietly nixed, replaced by a haphazard buffet of small stale sandwiches that made Quizno’s seem like Spago in comparison.

In keeping with the theme of tough times, many an automaker press conference made at least a passing mention of the stumbling economy, even as they proudly touted their new models. Despite the pall, everyone claims to be confident that the current tumble in auto sales is a manageable bump in the road.

The Dearborn side of the hall was considerably more cheerful. Undaunted by bailouts, the brink of bankruptcy and Congressional hearings, FoMoCo debuted the new Fusion and its badge engineered Mercury Milan sedan twin, as well as the Mustang pony car and Lincoln MKZ sedan. During their upbeat presentation of the new Fusion, Ford EVP Mark Fields and Marketing VP Jim Farley seemed not to notice the faltering car market. Crisis? What crisis?

This year’s show includes new world debuts from Bentley (Azure T Convertible), Infiniti (a convertible version of the G37), Lexus (RX 350 and RX 450h Hybrid), a brace of Porsches (Boxster and Cayman) and Nissans (370Z and Cube), as well as the new Mazda 3, an electric Mini and a VW (the TDi version of the Touareg.). Four concept cars make their premiere show appearances here: a Honda FC Sport fuel cell sport concept, Hyundai Sonata Hybrid, a Kia Borrego fuel cell vehicle, and a Toyota CNG Camry Hybrid. Tomorrow’s events will include the presentation of the Green Car of the Year award, which promises to be less controversial than last year’s Tahoe Hybrid.

Not that this will matter much.  Anyone who is paying attention knows that the country’s most important auto show is not being held in Los Angeles or Detroit or Chicago or New York, but in Washington, under the DC big top, where big bailout bucks are the order of the day. It can’t help but make one wonder whether next year’s show will be considerably smaller than this one.

At today’s LA Auto Show, Ford revealed its refreshed Fusion. In large part, the midsize sedan’s in synch with one of TTAC’s core philosophies: evolution before revolution. Manufacturers should continue to improve existing decent products rather than swing for the fences– especially when it’s the bottom of the seventh. That said, plenty of pistonheads reckon the Fusion isn’t a patch (or is) on the Euro-Mondeo. In Fantasyland, that’s the Blue Oval mid-sizer on dealer lots. And if there’s still a Ford America in 2013, we’ll have our Mondeo and drive it too. In the meantime, good is good enough. Or is it?

The Fusion we’ve got now is a decent car. It’s not perfect. The turning circle is poor. The quality of interior plastics ranges from impressive to horrendous, especially in the cheaper models. The existing engines trail Japanese competitors a bit in horsepower and fuel economy. The back seat is missing headrests. Little things, that add up to a car that wasn’t totally there.

So what has Ford done here? They redid most of the dashboard, installing a better center stack of controls and display. It’s still not an Audi, and you’d be hard pressed to call it inspired design. From the photos, it looks like a significant improvement. Cost? Probably fairly low. Ford’s also dishing-up some low-cost, high profit options for the interior. SYNC is the best audio and/or nav interface on the market, in terms of ease of use, and a Sony-branded stereo means added profits merely because Ford is using a system from an established name brand.

As for the engine upgrades, well, much respect. The 2.3-liter 4-cylinder is bounced for a 2.5-liter 4, and it’ll still offer a manual transmission– now up to six gears. The automatic is also a six-speed. Incremental improvements; way to go, Ford.

Ford’s PR sheets claim mileage will be up a few MPGs, but honestly, even if it’s better than the Camry’s, that’s not Ford’s image. The 3.0-liter 6 is up to 240 horsepower, which is less than the V6 engines from Honda and Toyota, but so what? It’s a great amount of power for the Fusion and for a front wheel-drive  vehicle. The top engine– only offered in the Fusion Sport– is Ford’s 3.5-liter V6. It has the more class-competitive horsepower rating of 263. I’ve never warmed up to this engine in the Edge, Flex, and Taurus; perhaps it’s the transmission tuning, but it always feels lazy and dumpy.

The Fusion hybrid is a separate debate– and the topic of Robert’s other post– but hey, at least Ford is in the game.

The biggest issue for these cars, aside from some moderate flaws, is that Ford has zero image right now. Other than seeing one on the street and saying “I like the look of that,” I don’t know why someone would be attracted to the Fusion instead of the dozen other competitors.

Ford’s marketing to journalists tends to argue that they have the best “thought out” vehicles. This usually means creature comforts, as well as some ergonomic improvements. For instance: SYNC, capless fuel fillers (cleaner hands), clever doors on the Flex (cleaner pant legs), power moving pedals (saves from short people sitting on top of the airbag). But so what? Can you really sell cars on nebulously defined “technology?” Well, no. That’s what Acura has been trying to do for years, and it doesn’t work for them.

Ford probably doesn’t have the money or resources to develop a clear brand image. So they’ll do what Toyota does: incrementally improve cars that are pretty good. It’s a good long-term strategy, but not a great one. And tough to do when you’re playing against the clock. We’ll bring you a review of the upgraded Fusion as soon as possible.

Carlos Ghosn wants your help, and he isn’t shy about asking for it.  In an interview yesterday with The Wall Street Journal, the Renault-Nissan chief announced his intentions to obtain a €40b ($50b) loan package from the French government, in addition to some undisclosed additional quantity of yen from their Japanese counterparts.  Today, before a packed house during his keynote address at the LA Auto Show, Ghosn continued along this path, turning his attention to obtaining tax credits and other government assistance here Stateside. Citing October 2008 as the worst month for US car sales in the last 25 years, Ghosn claimed that the severity of current economic conditions were “putting the usual rules of business up in the air” and that “nobody knows” how long these conditions would continue.  As he tore a page from Detroit’s eco-efficiency bailout pitch book, Ghosn stressed retooling for the development of Earth-friendly technology as a key driver for receiving state support.

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Sweet Pete DeLorenzo has made no bones about where he stands on the bailout, and having lashed out at the nattering nabobs of negativity (us), he’s turning attention to the old MSM and its coverage of the great bailout begathon of ’08. As a rash of common sense thinking about Detroit metastasizes into the mainstream, DeLorenzo is doubling down on his affection for Motown, and conducting interviews with whomever will listen to his rah-rah routine. In today’s Autoextremist Rant, he takes on the perception gap, that mythical construct which prevents the benighted masses from appreciating the truly great products Detroit offers. “The Perception Gap that exists out there for the Detroit automakers isn’t narrowing,” argues DeLorenzo, “it’s actually growing wider. Because when Americans get what minimal news they’re willing to digest – and only because it’s pre-packaged in carefully doled-out sound bites – then the Old Detroit will perennially overshadow the New Detroit, hands down.” Read More >

GM Fastlane blog was launched with the usual blather about two-way communications between the suits and the “little people” (a.k.a customers), complete with assurances that executives really will (we swear to God) read your comments and respond. Aside from one remark by Rick Wagoner about one commentator’s girlfriend’s car (as I remember it), this has most decidedly not been the case. Now, GM PR Supremo Steve Harris has decided to use the blog to rant against the New York Times’ columnist Thomas “Don’t Call Me Kinky” Friedman. Yeah, that’s the spirit!

An Open Letter to Thomas L. Friedman
Dear Mr. Friedman:

On Meet the Press you said, “So, show me a plan…” on why GM should receive government aid to bridge the current global financial crisis. We’ve invited you repeatedly to visit General Motors and see firsthand all we are doing to transform our business and develop new, energy-saving technologies.

We’re disappointed you still haven’t taken us up on our offer. You would be surprised at what you’re missing:

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A quick reminder: the Toyota Prius OWNS America’s hybrid market. Year-to-date, the Japanese automaker’s sold 142,365 Priora. Even during October’s carpocalypse, at a time when gas prices have fallen back to pre-Katrina levels, ToMoCo shifted 11,804 of the gas – electric hybrids (down “just” 13.6 percent). All other hybrids– including Toyota’s Camry gas – electric variant– must live off of crumbs from the Prius’ table. So when Ford announces it’s about to sell a hybrid Fusion with better mileage than the Camry hybrid– a six (according to the press release) or five (according to Automotive News) mpg improvement around town and an indeterminate number on the highway, the words “big whoop” spring to mind. Or even, perhaps, why bother? Certainly the Gods of Corporate Average Fuel Economy must be satiated. But doesn’t Ford have to sell the vehicles for them to count against F-150 mpgs? As for the badge-engineered Milan hybrid, well you gotta put Mercury’s babe on your website! In your garage? Not so much. (The car. Not Jill.) More interesting: SmartGauge™ with EcoGuide. The doo-hickey “coaches” hybrid drivers to maximize fuel efficiency. John Madden voice prompts optional, presumably. Oh, and props to The Blue Oval Boyz for improving the 2.5-liter I4 Fusion for better torque, and offering a six-speed manual.

In the last ten years or so, Hyundai decided it’d be fun to build things that resemble cars that people want to buy. In the process, the Korean automaker acquired struggling brother Kia. As you’d expect, the company offers the now-essential model in any current car range: the budget-priced, fuel-efficient compact car. In fact, American buyers hunting in that market segment can choose between Hyundai’s Hyundai Elantra and the Kia Spectra. Is it a distinction without a difference, in the not-so-grand tradition of General Motors? Let’s have a look to each model’s respective brochures…

While America Slept (WAS) is a daily round-up of the news that happened in other continents and time-zones while America suffers bailout-or-no-bailout-induced nightmares. Around the world, a network of bleary-eyed TTAC correspondents provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off.  Today in TTAC’s morning zoo:

Renault in dire straits: “Will Renault be the next car-casualty?” asks the Frankfurter Allgemeine Zeitung. This after Renault guided its year-end prognosis way down. Renault’s troubles will be Nissan’s pain. Both are joined at the aching hip. In an interview with the WSJ, Carlos Ghosn, double-head of Renault and Nissan, said he would “push for Europe to offer a €40 billion ($50 billion) loan program targeted at retooling,” (the books, presumably.) He also said, Japan should follow suit.  Gimme the money, s’il vous plait.

China pulling out of Russia: China’s largest SUV and truck maker Great Wall Motor Co said to Gasgoo that they will “terminate their joint venture in Russia because of hard industry protectionist measures in the country.” No Landwinds for the Russkies. Wait, there WAS more …

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We’ve said it before. We’ll say it again. Before The Big 2.8’s bailout begging blitz, the average American had no idea how close Ford, Chrysler and GM were/are to bankruptcy. And now, today, they do. So when it comes to buying a new car, well, it’s either a sympathy you-know-what (as if) or “Maybe we should look at a Toyota this time.” As much as Detroit’s sales sucked in October, the numbers will be nothing (something?) compared to November. By December, a black hole will tear-open the time-space continuum above Detroit and swallow The Big 2.8 whole.

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China’s leading business newspapers, with a daily readership over three million.] The paper cites a senior official of China’s Ministry of Industry and Information Technology– the state regulator of China’s auto industry– who dropped the hint that “the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.” These hints are very often followed with quick action in the Middle Kingdom. The hints were dropped just a few days after the same Chinese government gave its auto makers the go-ahead to invest abroad. And why would they do that?

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