Ouch, the metablogging is hurting my face. Toyota posted to their Open Road blog today with a post so genius they may not even know what it is.

A New Small Sports Car on the Horizon
– Scott Deyager, Corporate Communications

You may have heard that as part of strengthened corporate ties between Toyota Motor Corp. and Fuji Heavy Industries in Japan, Toyota and Subaru, which is owned by Fuji, announced plans last week to collaborate on a new small sports car.
We pay by the period here. Semicolons are also expensive. That's why I will continue to use plastic forks, knives, and commas I stole from the diner downstairs.

While the market introduction for this vehicle apparently is targeted for the end of 2011,
Apparently! Ha, I so nailed you new media! I'm implying that you have set a release date without info! Booya!

speculation on blogs, and in newspapers, already is vibrating along nicely.
Screw you, "blogs." And I guess you newspapers, too.

A report last week
Really leveraging the speed of blog posting to your advantage, I see…

in Japan's Asahi newspaper
Which readers of this American Toyota site probably know nothing about, since we had to explain that a company called "Fuji Heavy Industries" is in Japan.
But seriously folks, that's Toyota's great example of assumptions going overboard? Japanese publications are notorious for predictions, concept sketches and photoshops.

speculates
There's that word again.

that this car will be powered by one of Subaru's flat-four engines.
Yep, let's mock them for being optimistic that a 4-cylinder engine with a low center of gravity, which is easily configured to run power to the back wheels, would be the engine in the car. Rather than the cynical assumption they should have made that we're going to stick a Subaru logo on a Scion tC, and then take the rest of the day off.

Other speculation suggests
Okay, seriously, try a thesaurus.

that it will be rear-wheel drive, that it could go on sale as early as 2011, and that it will sell for less than $20,000.
Which we at corporate know would be too expensive (rwd), our engineers need to sleep (2011), and are you monkey crazy (<$20k)?

Stay tuned for updates surrounding this exciting new collaboration.
I'll bet you thought we were going to tell you some information. Validate or invalidate one of the rumors. Or even give you corporate vague-speak about how mostly one company's parts will be used. Well YOU THOUGHT WRONG, baby! High five! I got you so good! Oh also, please continue to come to our site again. When? Every day. Gotta convince the bosses that this blogging thing has legs.

TTAC's monthly By The Numbers editorial tracks everything from fuel-sucking SUVs to the gas-sipping Prius. In this month's report, the sales stat were bleak almost across the board. Almost, but not quite. Economy car sales are, as you'd expect, relatively robust. To bring a little joy to readers fed-up with a steady stream of bad news, I decided to chart new car sales for subcompacts and compacts from the "Big 6:" Chrysler, Ford, GM, Honda, Nissan and Toyota. The stats run for all of '07, and year-to-date. Here's how the so-called bottom of the automotive food chain is looking, with review links and inventory levels thrown-in for good measure…

Subcompacts

Honda's Fit is giving the competition fits. Sales of Jonny Lieberman's favorite sub-compact are up a whopping 61.4 percent over last March. Annual sales are even more impressive: jumping some 77 percent over last year. Hard to believe, but the Toyota Yaris did even better on the month, clocking-in with a 70.1 percent increase. The car RF said "isn't a pig to drive" didn't do quite as well on the year, rising "only" 58.3% over the first three months. Nissan's Versa is picking-up steam too. It was up 24.6 percent for March and 20.5 percent for the year. The good news ended at Chevy dealers' doors. The Korean-built Chevy Aveo's sales were way down– a 45.6 percent drop from last March.  Annual sales of PJ's whipping post are down 19.2 percent from this time last year.

The inventory levels for these mighty mites reflect their sales show. Chevy started April with a 113-day supply of Aveos. Honda only stocked enough Fits to last 27 days, and Nissan's supply of Versas would last 53 days. Toyota doesn't break out individual models in their inventory numbers, but they started the month with a 51-day supply of cars and trucks.

Compact

Compact sales look equally robust, with a couple of surprising exceptions. The Dodge Caliber went up 10.1 percent in March and is 15.2 percent ahead of last year. Ford's Focus is in SYNC, with a 24 percent jump in March and a 23.2 percent gain over 2007 year to date.  The Honda Civic finished the month 10.2 percent ahead of last March and up 13.8 percent on last year. The compact-in-name-only Nissan Sentra had a strong showing, increasing 12.8 percent in March and 20.5 percent for the year to date.

The surprises: the Chevy Cobalt and Toyota Corolla. Both showed sales decreases in March. Sales of the car Chris Paukert called "a solid set-up man" (back in 2005) dropped 23.8 percent. The Corolla fell even further, down 26.9 percent. For the year to date, Cobalt's still holding its own, with a 14.5 percent increase over last year. Corolla's sales so far this year are down 24 percent.

As with the subcompacts, inventory levels of the compacts reflect the monthly sales. April began with a 48-day supply of Calibers and a 54-day supply of Foci on dealers' lots. Honda dealers started the month with a 52-day supply of Civic. The Sentra started the month with the ideal 60-day level. Chevy faced April Fool's Day with a 75-day supply of Cobalts. Just like with the Yaris, the inventory level for the Corolla wasn't available.

The Future

You'll see a flurry of activity in the subcompact and compact segment over the next few years, particularly from the American manufacturers. They've all but ignored these markets while chasing truck profits, with two not even playing in the subcompact segment. And now it's coming back to haunt them. With the 35-mpg CAFE standard looming on the horizon, The Big 2.8 have put their small car skates on.

Ford's decision to make SYNC an option on the Focus (rather than limiting the technology to their more expensive vehicles) and the forthcoming importation of the new Fiesta reflect this new priority. Chrysler's deal with Nissan will give them a Japanese-built small car in a couple of years; their partnership with Chery should bear fruit soon. GM's focusing a lot of attention on GMDAT, their corporate small car nexus. 

While they play catch-up, China and/or India could well send a bevy of small cars to our shores. And Toyandasan and friends aren't aren't sitting back watching by the market segment they dominate lip away. They'll keep improving their products to maintain their lead. The end result: an American small car renaissance. It is, in fact, the silver lining.

Automotive News [AN, sub] reveals the results of an "unscientific online survey" of "more than 400" U.S. new car dealers. AN paints a predictably bleak picture– for the domestics. "Among dealers who sell Detroit 3 domestic brands, nearly one-third say their dealerships are in the red. The only argument you'll get from a lot of them is whether this is the worst business climate dealers have faced in 20 years, in 35 years — or ever… 'The future is quite bleak,' says a veteran Ford dealer… 'Many dealers are looking for the exit.' But matters are far less dismal for Toyota, Honda and Nissan dealers. Nearly all say their dealerships remain profitable." Reaffirming that [unscientific] result, AN says half of the [participating] Detroit dealers have less staff than last year, while a third of Toyota, Honda and Nissan dealers have added personnel. "And half of the Detroit 3 dealers surveyed said most of the new-vehicle customers they now see are 'upside down,' owing more on their trade-ins than the vehicles are worth." Meanwhile… "Life in Toyota-land is good," says Dan Luneau, owner of Handy Toyota in St. Albans (VT). 

I often ask myself why Asian manufacturers don't try to establish a stronger visual identity. I wish I could know at first glance to which brand a Japanese car belongs. You can always tell a BMW (although you can't tell it much). Toyota and other Asian manufacturers seem to be going through a continuous struggle to find their identity. Every new model is a step forward– in a different direction. They're caught in fast shifting currents of contemporary design, just trying to keep their heads above water. Toyota has a chance to establishing a distinctive, brand-specific beachhead with the third generation Avensis, due for launch next year. I'd like to see a major departure from the traditional Toyota design. Honestly? I don't think it's going to happen. Photos of test vehicles show a more dynamic and ascending side line, big head lights curved along the corners and a new grille. To me it looks already dated. Maybe they are saving the "cool stuff" for Scion.

[For more Avarvarii photochopistry, click here]

"Ford on a good day is always about the people," declared Jim Farley, group vice president of Ford marketing and communications. Like many of these pre-digested pronouncements, Farley’s seemingly innocuous, feel-good assertion is fraught with unintentional meaning. What does Farley mean by “Ford on a good day?” What’s Ford about on a BAD day? Is Ford bi-polar? Manic depressive? Does it forget to take its meds? And what about the contradiction between “on a good day” and “always?”  And, most damning of all, Ford is NOT about the people. It’s about the product.

I know: cars don’t build people, people build cars. I have consistently and persistently argued that corporate culture ultimately determines an automaker’s success or failure in the marketplace. A public declaration of respect for your workers is never a bad thing. And there’s nothing inherently wrong (or innovative) with Farley exhorting FoMoCo’s extended family to move the metal; the alleged point of his “Drive One” marketing campaign. The problem is, once again, one of subtext and nuance.

Drive One’s underlying assumption: Ford has won– or at least drawn level– in the battle to build desirable products. Hence the recently launched national ads trumpeting the fact that Ford’s initial build quality is now “as good as Toyota’s.” This may be true, but it’s not particularly motivational. In fact, the statement does more to draw attention to and underline Toyota’s reputation for quality than give potential Ford customers a unique and persuasive reason to switch to The Blue Oval. For this, Ford relies on Microsoft’s SYNC gizmo, whose exclusivity is set to expire.  

Ford’s Drive One campaign is based on the same “chip on our shoulder” attitude that’s bedeviled the domestics’ thinking for the last decade or more: our vehicles don’t suck, people just THINK they suck because they're American products (excluding the Mexican, South Korean, Belgian and Australian thing). But don’t take my word for it. "It's a marketer's dream to be here right now because the reality doesn't match up with perception," John Felice, Ford-brand general marketing manager, told Automotive News. "It's that gap between reality and perception that this whole thing is designed to close."

Unfortunately, Ford dealers are down with that. "It's incredibly frustrating to be a Ford dealer and know we have the best showroom we've had and yet we don't have people coming in to consider us," says Ford-Lincoln-Mercury franchise owner Jeff Robberson. "The need for this campaign was huge." Robberson’s contention that Ford has the best showroom they’ve ever had completely ignores the other guys’ product lineup, and fails to provide a compelling reason for customers to darken his doors.

So here we are again. Rather than concentrating on making their products unassailable, or at least choosing a unique selling point and sticking with it, Ford’s marketing efforts are once again [still] focused on its customer’s supposedly ignorance, perceived bias and, let’s face it, stupidity. If anything, the Ford campaign’s stridency– “Drive One” as opposed to “Have you driven a Ford lately?”– indicates a hardening of the automaker’s indefensible, defensive position.

The “get your ass behind the wheel of one of our cars and then you’ll see why you should buy one” marketing strategy completely ignores important buying considerations: long-term build quality, depreciation (i.e. total cost of ownership), dealer service and, of course, comparative product excellence. Ford made a stab at this crucial component with its rigged Car & Driver pimpatorial comparo, then abandoned it for… this. Which is what? A farrago of ad messages wrapped-up in a command to take a test drive.

The wider, ultimate question remains unanswered: why? Why should anyone test drive a Ford? Even more crucially, what exactly is a Ford?

It doesn’t really matter how Farley’s followers implement the Drive One campaign (human viral marketing is, if nothing else, cheap). It doesn’t even matter if more people take a Ford for a spin in the next month than the previous six. When considering Ford’s chances of survival, the central and damning fact is that [ironically enough] Drive One focuses on four product areas: quality, safety, environmentally friendly initiatives and technology. That’s three too many.

You don’t have to be a professional branding guru to know you shouldn't market a product based on four disparate selling points (at least not without a single unifying concept). But it was my understanding that Jim Farley answers to that job description. Ford poached Farley from that most focused of car companies (Toyota) at tremendous expense, presumably to apply his proven expertise to Ford’s sagging fortunes. And yet it seems as if Farley’s new employer’s lack of focus (both figurative and literal) has infected his thinking.

Not to put too fine a point on it, “Drive One” is the same old shit in a different wrapper.

The print edition of Auto, Motor und Sport (March 13, 2008) carries an interview with GM Car Czar Bob Lutz. Regarding February sales, Maximum Bob told the German car mag “everyone was down strongly, including Toyota;” forgetting that Nissan and Honda were both up for the month. MB also “reveals” that GM’s hybrids are selling “increasingly better” and “the mild-hybrid system in the Malibu and Vue are selling well;” forgetting that GM sold just 577 hybrids in March, less than 30 of which were gas – electric ‘Bus and Vues. Lutz also says “Hybrids are not an economic or practical solution. Driving with two power sources leads to higher costs that the buyer can never recoup;” forgetting that the Prius can recoup its premium in less than five years. Note to Bob: the truth will set you free.

Ford isn't wasting any time bragging about their bought and paid for surveys claiming that their quality is now on par with Toyota's. However, as the Detroit News reveals, FoMoCo's newfound reliability has dealers losing money on warranty work. The National Automobile Dealers Association estimates Ford dealers currently lose $30 on every new car they sell; they make up the difference through financing, add-ons, service and warranty work. [U.S. car dealers earned $7.7b on warranty repairs last year.] With warranty work shrinking, they'll have to earn more money elsewhere. To that end, Ford's introducing a line of aftermarket accessories called "Customs" focusing (so to speak) on "high-profit items like custom wheels and electronics." So in addition to paint protection, window etching and LoJack, Ford dealers will be hawking factory-authorized customization. Pimp my profits?

We reported yesterday that Autocar UK had "found" top secret renderings of a forthcoming RWD coupe being jointly developed by Toyota and Subaru. Well, today we have confirmation from the two firms that the new coupe is definitely in the works. A joint press release tells us, "The compact rear wheel-drive sports car is envisioned to offer a new 'fun to drive' experience based on an all-new vehicle platform." The release also confirms that Subaru's boxer four will be the only initial engine offering, and that production will begin in 2010. [Ed: there's that number again.] Subaru will launch first, sometime late in 2010, while the Toyota version will not be available until 2011. Watch this space for official images and further details as they become available.

Nikkei Tech-On says Toyota Fuel Cell Engineering Manager Taiyo Kawai told the NHA National Hydrogen Conference that plug-in hybrids (PHEVs) won't deliver a tremendous reduction in fuel consumption. According to Toyota's calculations, given a 20 to 40 mile plug-in range and U.S. driving patterns, "the maximum contribution that PHEVs can make in an effort to break dependence on fossil fuels or to halve CO2 emissions is a 20 to 30% reduction in energy." Kawai told the crowd that the plug-in Prius' cell system's power storage performance is "far below that of gasoline and hydrogen." Hang on. Did we just learn an inconvenient truth about PHEVs, or is this just so much pro-fuel-cell hot air?

We weren't the only ones giving Toyota grief about their $20m contribution to the Audubon Society. The Green Company That Also Sells Gas-Guzzlin' Trucks has gone on the defensive after readers of their Open Road blog castigated the Japanese automaker for the largesse. It seems the National Audubon Society is one of the plaintiffs in a suit against the National Park Service for alleged failure to regulate beach driving at the Cape Hatteras National Seashore in North Carolina. Readers felt Toyota's donation "is being used against people who use their 4-wheel drive vehicles" and "to help fund the closure of the beaches of the Outer Banks of NC." ToMoCo says not so. After all, "we build and sell four-wheel-drive vehicles that have developed an enviable reputation in the four-wheeling community and many of us here are enthusiastic four-wheelers." To that end, their donation "will be used only to fund conservation projects, train environmental leaders and offer volunteer opportunities, not for lobbying or legal efforts." Yes but… a contribution of that size will free Audubon to redirect organizational funds that would have been used for those purposes, increasing their legal and lobbying firepower.  

The great hybrid showdown is coming. GM Car Czar Bob Lutz has thrown down the gauntlet: “We are headed for the OK Corral.” In fact, GM has staked its reputation on the Volt, intending to “leapfrog the Prius” and evoking America’s Apollo moon-shot program. Meanwhile, Toyota continues its domination of the alt power mindspace, finalizing their third generation Prius. While we prepare for the clash of the hybrids, let’s take a closer look at the contenders…

In the serial-hybrid corner: the Chevrolet Volt. Actually, GM prefers to call its gas -electric plug-in an “extended-range electric vehicle” or E-REV.

The Volt will feature a rechargeable 16kw lithium-ion battery pack. Its 120kw/160hp electric motor provides the motive power. A 53kw generator driven by an efficiency-optimized (non-E85) three-cylinder gasoline engine kicks-in when the batteries are depleted to a 30 percent state of charge (SOC). The Volt’s generator will then cycle as needed to keep the batteries within a targeted SOC range. Fuel economy– after initial charge depletion– is a projected 50mpg.

The Volt’s target price started at $30k. More recently, GM’s Car Czar declared that the Volt would sell for about $48k. The winner of TTAC’s annual Bob Lutz award reckons $40k might be possible “without making any profit.” For comparison purposes, we’ll assume an MSRP $44k.

GM has confirmed that the Volt’s first year production run will be limited to 10k units. After de-bugging, the number will rise to 100k and possibly beyond– depending on demand, how large a financial loss GM is willing to accept and for how long.

Even if the Volt’s batteries perform to specifications, GM’s initial promise of a forty-mile EV range has evaporated. GM now says continuous highway-speed driving will deplete the E-REV’s battery in “closer to 32 miles.” And that’s probably at the low end of typical highway speeds (as per the EPA highway cycle). A brisker freeway run, elevation gains, extreme temperatures and the use of heater, A/C and other electrical peripherals will all take their toll on the Volt’s range. It could easily descend into the twenties or… less.

Toyota will introduce their gen3 2010 Prius in January 2009. It will use a refined version of Toyota’s parallel Hybrid-Synergy drive (HSD), whereby electric and mechanically-transferred gasoline-engine propulsion are used individually as well as in various blended forms for propulsion.

Toyota has clearly stated goals for the gen3 Prius: reduced HSD-specific costs, weight reductions and most importantly, a targeted gain in efficiency of 15-20 percent. This should result in combined EPA mileage numbers of 53 – 55mpg (2008: 46mpg). Since average user mileage for gen2 Prius runs 42-44mpg, gen3 Prius should deliver real world mileage of 50+mpg.

The new Prius will have a more powerful electric motor and increased battery capacity, extending its limited EV-only range. Other refinements: improved aerodynamics, further efficiency gains in the Atkinson-cycle gas engine; and improved regenerative braking and hybrid system control.

For the first two years of production, Toyota will stick with the tried-and-proven NiMH batteries. In 2010, li-ion cells will go into volume production at Toyota’s battery supplier Panasonic. With the higher energy density of the li-ion pack, it’s safe to assume that the EV-only range of the base Prius will increase, perhaps double. This should further increase fuel efficiency, possibly to about 55mpg.

Additionally, there will be a plug-in Prius. Fleet tests start in 2010. If all goes well, volume production will begin the following year. Early versions will have a NiMH pack that will provide an EV range of about seven miles and an EV top speed of 62mph. When the definitive li-ion plug-in Prius arrives, its EV range could be some twenty miles.

Toyota has announced a 60 percent production increase for the gen3 Prius– from 280k units in 2007 to 450k in 2009 (worldwide). The car’s average transaction price should stay level, or possibly contract further. We’ll assume $22k for our comparisons. An educated guess at the price for the plug-in version: $30k.

Our comparison will encompass three primary criteria: owner economics, environmental benefits and “green cachet” (to both owner and manufacturer).

Hypothetical economic scenario one: six weekly round trips of 35 miles each. In this example, the Volt would never need a drop of gasoline (except for the occasional auto-programmed runs to cycle fuel and oil). If we inflation-adjust today’s electric rates, a recharge will average about one dollar. Annual “fuel” cost: $312.

A Prius would take 220 gallons of gas @ 50mpg to cover the same 11k miles. Assuming $4/gallon in 2011, annual fuel cost is $880. The Volt’s $22k purchase premium over the Prius would take 39 years to amortize. A $40k “subsidized” Volt would take a mere 32 years. These calculations don’t include interest, either on the higher purchase price of the Volt, or on the money saved (opportunity cost). 

Even if we slash electric rates in half, to 50 cents a charge, it would still take over thirty years to amortize the Volt’s higher purchase price. Comparing the Volt to the plug-in Prius is even less favorable to the Chevy: it would take 58 years to recoup the Volt’s $14k price differential.

Scenario Two: a short daily commute of twelve miles round trip (3744 miles annually) and an additional 3744 miles on long-distance trips @ 50mpg. The Volt’s total annual combined “fuel” cost is $400. The regular Prius’ annual fuel cost is $600. It would take 110 years to amortize the Volt. And the plug-in Prius, which can make the short commute all-electrically, trumps the Volt altogether, with fuel costs of $372. And it costs $14k less.

Scenario three: a long-distance commute with a daily round trip of seventy miles, plus 6k of long-distance miles (23.5k annual total). The Volt’s fuel costs run $1465 annually. The Prius’ are $1880, resulting in a 53 year payback for the Volt. And the plug-in Prius accomplishes the task with a $1488 fuel bill, only $23 more than the Volt (609 year payback!).

Scenario two and three point out the Volt’s two biggest weaknesses: its expensive and heavy battery pack becomes increasingly less cost-effective when its maximum range is not fully utilized (Scenario 2). And its serial hybrid drive is no more efficient (if anything, somewhat less so) at continuous highway speed than Toyota’s HSD (Scenario 3). The Volt’s efficiency losses of generation, conversion, battery storage, re-conversion to AC, and electric drive-motor losses equal or exceed the minimal efficiency loss of the Prius’ mechanical transmission.

All of the above scenarios point out the glaring economic disadvantage of the Volt due to its high cost. Its price would have to come down to $28k to justify a (barely) reasonable ten-year payback in the Volt-optimal Scenario One, and substantially less for the others.

Plug-ins clearly are not about the economics, because even the plug-in Prius (@$30k) has a payback of between 24 and 35 years versus the regular $22k Prius in the above three scenarios.

A comparison and analysis of the environmental-social benefits of hybrids versus plug-ins quickly becomes complicated, due to the variable sources of electricity (high or low carbon content). But the over-arching issue of total (cumulative) gas savings offers some simpler answers.

Aggregate gas savings are much more readily and cost-effectively accomplished through large numbers of conventional hybrids (Prius) than small numbers of somewhat more efficient but much more costly plug-ins. Toyota’s 2009 production of about 500k Priora (@ 50mpg) will save 120 million gallons of gasoline compared to a like number of 25mpg conventional mid-sized sedans, at little or no incremental cost.

But 100k Volts produced per year at an adjusted/equivalent 100mpg save only 36m gallons over the 25mpg car, and a mere 120k gallons over a like number of Priora; in both cases at an incremental cost of some $22 million. Smaller gains in economy spread over a large number of vehicles always delivers a much greater cumulative savings than a small number of super-high efficiency cars.

Even if plug-in hybrids are driven on cycles that maximize their EV range, greenhouse gas (GHG) reductions are surprisingly modest, and highly dependent on the carbon-intensity of the electric source. A new study by Carnegie Mellon shows that unless plug-ins are matched to low-carbon electric sources, GHG emission gains (compared to conventional hybrids) are minimal, and negative in some circumstances.

These and a number of other objective criteria clearly suggest that finite public (and private) resources are best spent in the expansion of existing high-efficiency hybrids, like the Prius and the upcoming new lower-cost Honda hybrid sedan, rather than exotic and expensive limited-production vehicles like the Volt– at least until li-ion battery prices drop dramatically. Meanwhile, GM does not have a Prius-like hybrid to sell, or in the planning stages.

Objective criteria are not the main reason for the GM’s “moon shot” investment in the Volt. When it comes to “green bragging rights,” the Volt may well out-score the Prius– at least for GM and its eager cadre of early adopters. If the final styling is both distinctive and has “it” (like the concept), if the Hollywood crowd adopts it as their newest green baby, if the words “plug-in” or “E-REV” supersede plain-old “hybrid” in green-speak, the Volt could become THE car of the green-tinged moment.

But let’s be clear: both eco-consciousness and the Toyota Prius have moved beyond fads, into fully blown trends. (Federal legislation sealed the deal.) The Chevy Volt and the Toyota Prius must ultimately compete in the automotive mainstream, where the Volt is at a supreme price disadvantage. Unless GM is willing to heavily subsidize the Volt for many years, no matter how good it is, the Prius will kick its ass.

Dow Jones Market Watch reports that tight credit, expensive gas and the economy in recession, four cylinder engines are becoming increasingly popular. Four-pot models now make up 37 percent of the U.S. market, up from 30 percent three years ago (when gas was last under $2/gal) Eight cylinder models fell from 28 percent to 18 percent over the same period. Tracing the development to purely economic factors, the report shows that hybrids do not yet offer enough savings to overcome their price premiums; hybrids only make up three percent of the market. "For now, the easiest, cheapest way for new-car shoppers to get better mileage is to choose a model with a conventional four-cylinder engine," says J.D. Power analyst Jason Rothkop. "And they are." The poster child for the four-banger revolution? The Toyotas Yaris. Sales of the four-pot economy car were up 83 percent in March. [For more info on last month's sales, check out Frank Williams' March By The Numbers.]

We reported earlier that Toyota had upped its stake in Fuji Heavy Industries, maker of Subaru cars. We mentioned one possible fruit of that merger: a jointly-developed rear wheel-drive (RWD) sportscar. Autocar has "top secret" sketches of what the Toyobaru lovechild might look like. The coupe will use Subaru's 175hp boxer four as a base engine motivating the rear wheels only (to keep weight down and handling sharp). Apparently, there is also talk of an all wheel-drive 2.5-liter turbo-engined top-of-the-line model; a throwback to Celica GT4s of yore. With the Miata squarely in its sights, the Japanese-built coupe's could sticker as low as $20k. The United States is pegged as the main market for this tasty little slice of hoon, which should hit dealers sometime in 2010.  Could this possibly be the RWD Scion tC that's hit the rumor mills?

According to Nihon Car, the Scion tC "is one of those boring 2 door coupé made for the U.S. market and powered… with only 161hp, pretty lame both in and out." Now that we have that less than flattering (if accurate) assessment out of the way, Nihon Car reveals that Scion has "succeeded at stunning us this morning" by unveiling "its gorgeous Formula Drift version" of the tC. Exhaust and suspension manufacturer RS*R created this monster, which shares its platform with Toyota's Japanese-market Avensis and Caldina cars (i.e. it's been converted to rear-wheel drive). Blessed with a turbo and intercooler, the engine now offers more than 400hp. Twenty-one-year-old Ken Gushi will helm the modded Scion in U.S. Grand Prix Professional Drift events. Could an RWD tC be coming to a Scion dealer near you? "At this time we do not have confirmed plans to produce a tC rear wheel drive, but a lot of people will want to take one home," says company VP Jack Hollis. Ya think?

To evaluate the all-new 2008 Toyota Sequoia, I spent some quality time with comparable full-size SUVs from GM and FoMoCo. In back-to-back-to-back tests on the highways and byways of Denton County, Texas, I pitted the new Sequoia Platinum against the 2008 Ford Expedition King Ranch Edition and the 2008 Chevrolet Tahoe LTZ "White Diamond" edition. Let's not beat around the Texan brush: the Tahoe outshines its competitors as the best all-around full-sized SUV. Here's why…