Leave it for the WaPo to tell us much of what we already know, unfortunately:

There is no use waiting to exhale. Next year is going to be tough, too.

The only difference is that we’ll be absent the convenient fantasy that only American car companies are suffering in our collapsed economy, that they somehow have been peculiarly inept and thus especially deserving of punishment.

That much was made clear last week by Toyota’s announcement that it expects to lose money in its core automotive business in the fiscal year ending in March. That would mark Toyota’s first operating loss since 1938, a little less than two years after it rolled out its first production automobile.

It’s obviously true that the car industry, as well as the rest of the economy is facing hard times. That’s why it’s important to take a longer view just now. Cycles are cycles and while the current downturn is worse than a typical recession, it is by no means the end.

Companies, car makers, or not, need to manage prudently to navigate hard times, but plan for their long term viability.

Whether Detroit can do that with potentially a too heavy government hand while the UAW is balking at more concessions for now, remains to be seen. Two thousand and nine is certainly going to be an interesting year.

Obviously they need to sell a lot more than that.

But it’s a start.

Back in October, General Motors reported that it had already received some 6,000 advance orders for its new fifth-gen Camaro. Despite the fact that the first car has yet to be delivered to a paying customer (that’s scheduled to take place in February, with the first one selling at the upcoming Barret-Jackson auction next month), pre-orders are not slowing down, with GM now reporting a total of 10,000.

The Treasury Department has added six-billion dollars to the auto bailout to help the auto financing arm of GM.

I won’t claim to know French politics well enough to venture an opinion on this bit of pre-Christmas news. That’s partly why I passed on it when it came out.

The French government commissioned a report earlier this year analyzing the best options for building more efficient mass-market cars in the coming decades, but is preventing the public from reading the results. The 129-page report produced by Jean Syrota, a former French energy industry regulator, warns that the cost of all-electric cars-roughly double that of conventional cars-is not economically viable. The report also identifies limited driving range and performance, and unsatisfactory battery technology, as major obstacles.

The report was completed to coincide with the 2008 Paris Motor Show in October, but “the government has continued to sit on it and seems reluctant to ever publish it,” according to a column in the Financial Times.

 

The authors point specifically to Mr. Sarkozy, and his relationship with companies developing electric cars, as the probable reason why France “spiked the report.” The Financial Times characterized Vincent Bolloré and Serge Dassault as Mr. Sarkozy’s “business chums.”

There is a point to be made here and it has to do with allowing the Free Market to work. Actual corruption and even the appearance of it can drive decisions in the political world. And the solutions of allies get touted why potentially smart solutions from lesser friends go unexplored when government makes decisions that drive business.

There is mostly only one rule of thumb when the market weighs in. What makes sense, IE what works.

As we move through and beyond today’s economic downturn. We need to remember the value in herent in our Free Market tradition in America and not allow government to use a crisis to grow their size and power, ultimately, for their own ends and not the benefit of the citizenry.

MSN auto news points to ten solid reasons for saving Detroit - cars.

You can see their selections at link. I have a hard time imaging the models would go away, no matter what. If it does come down to it, restructuring through a managed bankruptcy doesn’t have to be the end if enough people don’t want it to be.

 Detroit might not emerge as big. But then, being big hasn’t enabled it to survive, either.

Amid word that Toyota’s current president may slide up to the chairmanship, there’s speculation overseas as to a replacement. (scroll for blurb)

TOKYO (AP) — As Toyota Motor Corp. faces its biggest crisis, speculation is growing that the charismatic grandson of the company’s founder may take over leadership of the automaker sooner than expected.

Japan’s nationally circulated Asahi newspaper reported that Akio Toyoda — long groomed for the top job — will replace current president Katsuaki Watanabe as soon as April. The newspaper did not cite sources and Toyota denied any decision has been made.

Different people are sure to have a different take on this one. The UAW’s Gettelfinger didn’t budge even with the life of the industry allegedly in the balance. So, who really runs Detroit? Several people in and out of government, perhaps.

As became clear in mid-December, Gettelfinger, the 64-year-old union president, is no pushover. With the fate of an industry hanging in the balance, he refused to back down when Senator Bob Corker (R-Tenn.) demanded that the UAW commit to cutting wages to secure a bailout of Detroit’s Big Three. Gettelfinger’s stance-critics call it intransigence-pushed a government rescue to the brink until the Bush Administration stepped in.

More to the point, what will Gettelfinger do when tey need more money in early Spring? Or is Obama pro-labor enough to avoid a clash?

One thought - if management and government are on board with a bail out and the UAW isn’t … perhaps they should simply go on without them? Heh.

Yeah, that’ll happen.

Via Grist, Henry Waxman gave a brief interview to the New York Times Magazine this past Sunday:

Q: This seems like a symbolic shift — California environmentalist unseats Michigan congressman who propped up the auto industry.

A: We’ve had our differences on environmental issues. I think we need new leadership in the committee in order to move a very active agenda being proposed by the Obama administration.

If you believe in the Free Market and that less government regulation equals more as far as commerce and productivity. It may be a long four or eight years.

More at link above.

When we talk about alternative fuels, we tend to focus on mpg, emissions and so forth. Obviously there’s much more to an automotive fuel than that.

Gas 2.0 takes a look at the cold weather performance of five alternative fuels.

You may or may not have heard of TALF - started in November. The basics here.

What is TALF? Term Asset-backed Securities Loan Facility (TALF) is a new $200 billion dollar lending program created by the Federal Reserve.

What does it do? Under the program, the Fed would offer low-cost loans to any U.S. company investing in securitized loans. The asset-backed securities include pools of credit card receivables, automobile loans, and student loans

 Hedgefunds can access the program. Via Auto News (subscription required) - the Fed is making the program available to automotive dealers. In essence, it will give them a source of credit to put cars on the showroom floor. According to the first link above (also here) it makes the Fed a loan broker of sorts, something it has never tried before.

The Federal Reserve yesterday announced new-car dealers’ floorplan loans will be included in a $200 billion program designed to stimulate small-business and consumer lending. The program - called the Term Asset-Backed Securities Loan Facility, or TALF - is intended to help small businesses and consumers get credit. Automotive News reports that the loans will be available until Dec. 31, 2009. For dealers, the TALF money will help those with problems obtaining floorplan financing in the wake of the credit crisis. The minimum TALF loan size is $10m with a three year maturity. “The move meets a key need that the National Automobile Dealers Association had identified for greater liquidity in the auto retailing marketplace,” Andy Koblenz, NADA vice president of legal and regulatory affairs, said in a statement. The TALF was created Nov. 25, and secured loans for automobiles were part of the original program. But it was unclear whether lenders could use the money to finance new-car inventories for dealers.

An interesting announcement and some interesting analysis from The Detroit Free Press when it comes to the Car of the Year competition.

The finalists are notable both for which vehicles made the list and for which ones are missing.

The six, revealed at Cobo Center in Detroit Thursday are:

• Car of the Year — Ford Flex, Hyundai Genesis, Volkswagen Jetta TDI

• Truck of the Year — Dodge Ram, Ford F-150, Mercedes-Benz ML 320 Bluetec.

Popular Mechanics is running a bailout blog. You might want to check that out. And as this issue is destined to move into next year, I imagine they’ll stay with it.

The news reports are coming in, Bush just wrapped a statement.

Fox: The federal government will enable Detroit’s ailing automakers to survive a little longer by providing $17.4 billion in short-term financing, FOX News has confirmed.

A senior administration official told The Associated Press that the low-interest loans will be drawn from the $700 billion Wall Street rescue fund.

Of the $17.4 billion, $13.4 billion will be doled out in the next two months with another $4 billion to be added later. The loans will be called back if the companies are not viable by March 31, the official said, speaking on condition of anonymity because of the sensitivity of the issue.

Other reports here and here.

From the details in this article, it appears the ush administration may be taking steps to firm up the Big 3 for some time to come.

But the official indicated that the administration was inclined to do more than just keep G.M. and Chrysler alive until President-elect Barack Obama takes office, saying, “Giving them enough money to limp along doesn’t solve anything.”

They certainly are going into great detail for a simple bridge loan.

G.M. officials said that the company’s chief financial officer, Ray Young, and a team of aides had provided the Treasury with a vast sheaf of documents including supplier contracts and payment schedules, production plans, employee payrolls, debt obligations, interest payments and even utility bills.

As pointed out in an item below, inventory is building to unheard of levels given the economic downturn. Consequently, Chrysler has decided to stop production across 30 plants for one month beginning Friday.

DETROIT (AP) - Chrysler says it will close all 30 of its manufacturing plants for a month starting Friday.
The company needs to match production to slowing demand and conserve cash.

Tighter credit markets are keeping would-be buyers away from their showrooms, Chrysler says. Dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to the credit situation.

Google News is one good sources for following news on a specific topic.

As things stand right now, reports suggest strapped car makers are running low on cash and Bush is likely to move forward on help before week’s end.

True, fuel prices are down. But as Popular Mechanics points out, so is the Stock Market.

Popular Mechanics takes a look at some ways to actually save Gas, as opposed to many gadgets which don’t really work.

What I found most interesting is how much of it jibes with EcoDriving techniques.

Now here’s an interesting perspective on the car makers loan program currently being considered by the Bush administration. It isn’t often that your competitors want to see the government step in and save you from bankruptcy. But net net, that’s how Toyota sees the negatives and positives of a bailout stacking up.

It at least suggests even they see bad things ahead for America’s economy and the car industry as a whole if one of the Big 3 is allowed to fail.

“We support measures to help the industry,” said Toyota Motor (TM) spokeswoman Mira Sleilati. “We just want a strong, competitive healthy industry.”

This may seem surprising at first, especially considering that much of the opposition to the auto bailout was from senators from Southern states that are home to auto plants operated by Asian auto companies, such as Alabama and South Carolina. But the Asian automakers insist they never lobbied against such help for the Big Three.

And this makes sense after taking a closer look at the dynamics of the auto industry and the intertwined fates of its companies.

 

Here’s why Toyota, Honda Motor (HMC) and other Asian auto manufacturers clearly believe they are all better off if GM and Chrysler survive.

It shouldn’t be surprising given what’s transpired in the economy. But it’s still a very bad sign as to how much trouble domestic car makers are in. Four months of backup inventory only costs more money everyday. But then, while I’m not certain, halting production may well have still left Chrysler with production costs even if vehicles weren’t being built due to UW work rules.

Dealers left the call gasping for air, recalled the summer of 2006, when Chrysler had nearly 650,000 units in the sales bank. At the time, there was a 91-day supply of vehicles. Today, with about 400,000 units in inventory, the automaker is sitting on a 117-day supply. While Chrysler claims repeatedly that they only make cars that dealers order, and have reduced production to match market share and plunging sales — down nearly 28 percent this year — stocks are still up. Why? According to a second report by Automotive News, Press clarifies his statements to the trade pub, saying that the vehicles being hoisted onto retailers were all ordered by dealers and later canceled due to dealerships that have closed, unsold vehicles from sales promotions, fleet customers that backed out or buyers that weren’t able to secure financing. Despite the fact that dealers supposedly ordered these vehicles with the intention of selling them, we fail to see how pushing 12k in unsold product doesn’t constitute a “sales bank” program.

Unfortunately, this is just the type of press the Big 3 doesn’t need and part of why they feel a bankruptcy would be the end.

The women are exactly the kind of customers General Motors was looking for when it introduced the Saturn brand two decades ago as “a different kind of car company.” The brand’s slogan is now one word — “rethink” — but its fate may soon be summed up in another — “done.”

Interesting. In essence, Daimler is making plans to manufacture lithium-ion batteries for cars internally. On a few levels and speaking to the auto industry as a whole, this type of move is worth considering in context of the pending auto bailout. Given the restrictions Congress is considering to go along with the money, a subsidized manufacturer wouldn’t be free to make such a move without government consent. At least not until they pay the loan back.

It would likely rob domestic manufacturers of the ability to make quick quiet moves to stay ahead of any competition. They’d possibly lose out. And on a larger front, will it prove to be a good move? Or could the batteries end up costing more to make this way. Building or buying is often a choice a business faces. Said choices will no longer be for the business alone, but also for the government to make, or at least approve.

I’ve no idea what the unintended consequences of restrictions to come with a bailout will mean for the auto industry. Past experience gives me some pause.

Daimler Ag and Evonik will create a joint venture to develop and manufacture automotive lithium-ion batteries based on Evonik’s technology, according to a report in Der Spiegel.

Reuters reported that Daimler will have a 90% stake in the joint venture, with Evonik holding the remaining 10%. In addition, Daimler reportedly will buy half of Evonik’s stake in Li-Tec.

Current reports suggest President Bush is reconsidering using TARP funds to aid the auto industry.

Facing the potential bankruptcy of iconic American firms, President Bush on Friday abandoned his longstanding objection to using using the Wall Street bailout fund to help save G.M. and Chrysler.

 Treasury has already released a statement. It’s sounding like a done deal.

WASHINGTON (AP) — The Treasury Department said Friday it’s prepared to act to avoid any possible collapse of nation’s three largest auto companies given that rescue efforts in Congress have failed.

“Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry,” said Treasury spokeswoman Brookly McLaughlin.

The Senate failed to reach an agreement last night on an interim plan to prop up US car makers. While it’s anticipated that Bush may go forward with helping Detroit via TARP funds, world markets are said to already be reacting.

News of the failed bill has already spread to markets across the Pacific, with the Nikkei index nose-diving over 6%. Things on this side of the world are bound to be worse when trading on the New York Stock Exchange begins tomorrow.

According to reports, General Motors has got bankruptcy and restructuring advisors on speed-dial in preparation for the bad news and Chrysler has already retained CH11 counsel.

 

Countless economists and industry analysts are warning that if any one of the Detroit 3 goes under, it will spell disaster for an economy already suffering in a recession. Video of the vote is embedded after the jump. More to follow tomorrow.

Several Republican Senators oppose the current program designed to keep car makers solvent through the next quarter.

WASHINGTON (AP) - A House-passed bill to speed $14 billion in loans to Detroit’s automakers stands on shaky ground in a bailout-weary Congress, undermined by Republican opposition that could derail the emergency aid in the Senate.

Republicans are challenging lame-duck President George W. Bush on the proposal, arguing that any support for the domestic auto industry should carry significant concessions from autoworkers and creditors and reject tougher environmental rules imposed by House Democrats.

More details of the GOP opposition here.

Some Republican senators said the automakers should be allowed to fail. Others said the proposed oversight of the rescue by a so-called car czar was too weak. Senator George Voinovich, an Ohio Republican who is one of the few outspoken Republican supporters of a taxpayer-backed rescue, emerged from the lunch sounding deeply pessimistic. Voinovich said that Senate Republicans had refused to participate in negotiations with the White House because of general opposition to an auto bailout.

via Car and Driver - the auto bridge loan being contemplated by Congress no longer entails that car makers drop their opposition to state greenhouse emissions standards.

Car makers have been saying that a Big 3 bankruptcy would have implications throughout the economy.

A bankruptcy filing by two of the Detroit Big Three would cost taxpayers more than four times what they would pay if Congress was to give them a $30 billion bridge loan, according to a report released this morning by Anderson Economic Group and BBK, an international business advisory firm.

The study found the job loss would reverberate through the national economy, causing damage that would be “unequivocally much higher than the losses from company restructuring with the help of federal bridge loans,” the study concluded.

Here is the pdf from the Anderson Economic Group supporting their position.

The blogosphere is said to have a “long tail.” Given their size, the Big 3 do, as well. And unfortunately given today’s economic climate, it would be a long time before some form of alternative job source came along to fill in.

The Steel and Silk industries closed a number of plants a while back. Many small towns dependent on them have never fully recovered.

That’s the speculation for now.

Congress will likely vote this week in favor of giving Detroit automakers at least $15 billion in federal loans, but that healthy chunk of change will come with many strings attached. Several Congressmen have insisted that more concessions come from the UAW, lenders and executives before a cent is sent to Detroit. Another stipulation is a special “Car Czar” to watch over the money and make sure it is being spent wisely. Several congressional officials have mentioned September 11 fund master Kenneth Feinberg as a candidate to keep the automakers in line. Feinberg, who is also an accomplished lawyer, oversaw over $500 million in donations following the September 11 terrorist attacks in 2001. A key element of being “Car Czar” would be wielding the authority to take all the funding back if he determines it’s been used improperly.

The Freep points out what happens when DC becomes your benefactor.

This is what you get, Detroit, when the government becomes your lender of last resort — a business plan designed to score political points.

And pressure on GM’s Wagoner is proof of that.

A debate over whether embattled General Motors Corp. CEO Rick Wagoner should be removed heated up again on Monday even as Congress proposed a short-term industry bailout designed to keep the automaker from collapsing by year-end.

There have been several missteps on Wagoner’s watch, but there are ample reasons he should stay at GM, analysts say.

Climate Progress appears to have the latest on a possible deal to help the struggling American auto manufacturering industry. There are a few different links at the post.

This is the draft agreed to by Chairmen Chris Dodd (D-CT) and Barney Frank (D-MA) and the Democratic leaders of both chambers (click here). Looks kinda bland and wimpy (i.e. no fuel efficiency requirments) at first glance.

 Interestingly, the Natural Resources Defense Council is out with a study today that finds Ford, GM Can Meet Nation’s Most Progressive Global Warming Standards, which is to say, the California standard. The study is based on an analysis of the plans Ford and GM submitted in their quest to be bailed out (see “Whose bailout plan is best: Ford drops hydrogen while GM remains confused about ethanol”). NRDC finds:

 

Interesting seeing SUVs front and center at a Detroit church service, especially considering how some would make them out to be evil incarnate. Ha!

DETROIT, Dec 7 (Reuters) - With sport-utility vehicles at the altar and auto workers in the pews, one of Detroit’s largest churches on Sunday offered up prayers for Congress to bail out the struggling auto industry.

“We have never seen as midnight an hour as we face this week,” the Rev. Charles Ellis told several thousand congregants at a rousing service at Detroit’s Greater Grace Temple. “This week, lives are hanging above an abyss of uncertainty as both houses of Congress decide whether to extend a helping hand.”

 

Local car dealerships donated three hybrid SUVs to be displayed during the service, one from each of the Big Three. A Ford Escape, Chevy Tahoe from GM and a Chrysler Aspen were parked just in front of the choir and behind the pulpit.

Ecogeek has a report from the United Nations climate conference. Seems a fellow has driven a solar powered taxi around the world to arrive at the conference. Illustrated.

After an around-the-world trip, through more than 40 countries, a school teacher named Louis Palmer just pulled up to the hall holding this year’s UN Climate Conference. Louis says that his 17-month, 32,000 mile trip proves that solar power can be an alternative to gasoline and fossil fuels.

I’m thinking you may have an issue with wind gusts towing that large solar panel around every day. But it’s a start.

Try as I might, I can’t bring myself to believe this is a good idea.

WASHINGTON — Congressional Democrats were drafting legislation Sunday for tight government control of the crippled American auto industry, including the possible creation of an oversight board made up of five cabinet secretaries and the head of the Environmental Protection Agency and led by an independent chairman or “car czar.”

Reading the details of some of the proposed plans, it all but amounts to a nationalization of the American auto industry. Government should not be that involved in the business of business. They have a hard enough time simply ”governing,” which is supposed to be their field.

Popular Mechanics weighs in on what a company failure within the auto industry would mean for the economy in general terms.

Over at the Center for Automotive Research, a group of researchers including Chairman David Cole, wrote a brief that outlined the likely consequences of an auto-industry collapse. According the report, if one or more of the Big Three failed, the consequences would be devastating. In the ensuing three years, personal income, the study says, would drop by $275.7 billion. A figure that might get lawmakers attention is the reduction of social security receipts and income tax-a staggering $108.1 billion.

Some states, like California, are already feeling the pain from the loss of auto sales taxes. In California, auto-related sales taxes are the single largest source of sales-tax revenue, and according to an LA Times article the loss in revenue has contributed to a huge budget shortfall. Governor Arnold Schwarzeneggar has declared a fiscal emergency.

 

A complete collapse of the domestic auto-industry could affect us in ways that are impossible to predict, so the bosses of the big three need to put on their game faces for tomorrow and Friday. The car companies have already been churning their P.R. machines with websites that plead their case. Here’s GM’s and here’s Ford’s.

You might find this an interesting read.

1- GM pioneered the car payment
In 1919, GM established a financing arm in GMAC (General Motors Acceptance Corporation), which extended credit and created monthly payments for consumers, making it substantially easier for people to buy a car. This opened huge new markets for GM, and their rivals were quick to follow suit, with one exception — Ford, their chief rival.

Why would Ford resist? President Edsel Ford, along with father Henry, regarded these credit extensions as potentially harmful to both car buyers and the larger economy. Nonetheless, they would eventually relent.

Yeah, it’s a car.

Members of the media photograph the Dodge EV, Chrysler’s first prototype electric roadster, during a media preview to showcase advance electric vehicles currently in production by General Motors, Ford and Chrysler on Capitol Hill in Washington on December 4, 2008. The CEO’s of the three automakers testified on the state of the American car industry on Capitol Hill today. (UPI Photo/Kevin Dietsch)

Or perhaps down-size to survive? You be the judge.

WASHINGTON - General Motors, increasingly desperate for a federal bailout to stave off financial collapse, told Congress on Tuesday that it was willing to drastically shrink every aspect of its operations to ensure its long-term survival.

It appears they are making December 31st the deadline for at least some help.

But G.M., the world’s largest automaker for decades, said Tuesday that it was in such dire straits that it would deeply cut jobs, factories, brands and executive pay as part of its plea to get $12 billion in federal loans and an additional $6 billion line of credit. G.M. also promised that it could be competitive on labor costs with Toyota by 2012.

G.M.’s president, Frederick A. Henderson, said the company would be insolvent if it did not receive federal assistance, including an infusion of $4 billion in cash before the end of the year.

“Absent support, frankly the company simply can’t fund its operations,” Mr. Henderson said in a call with reporters.

Chrysler, the smallest of the Detroit companies, is in similar difficulty, and asked Congress for a $7 billion loan before the end of December to ward off a potential bankruptcy.

Ford said in its plan that it could survive through 2009 with its current cash levels and by tapping its credit line with private banks, and that it could return to profitability by 2011. Even though it is better prepared for the downturn, Ford said it wanted $9 billion in loans to draw upon if necessary.

Ford’s chief executive, Alan R. Mulally, said the prospect of a failure of G.M. would cascade through the entire domestic auto industry and put millions of jobs at risk.

It’s possible Bush might meet them part way and allow the Democrats to deal with the rest during the next Congress. We’ll know soon, I suppose.

Evidently some drivers are opting for diesel vehicles instead. Still, it’s difficult to gauge this market so soon, especially given other economic news. WIthout major manufacturers on line, price is still a hurdle.

Sales of electric cars have fallen by more than half this year, according to figures released two days after the Government’s climate change advisory body predicted a huge increase.

 

Only 156 electric cars were sold from January to October, compared with 374 for the same period last year.

 

Nice Car Company, one of the two main British distributors of electric cars, went into administration yesterday. Set up in 2006, the company had been selling an all-electric version of the French-made Aixam Mega. It had also planned to bring a range of new models to market by the end of the year. However, sales dropped to fewer than one car a week.

The UAW is offering up some concessions to help the auto industry as it goes before Congress again.

There is broad disagreement within the blogging world on the pending auto industry loan program.

The Right is mostly against it.

The Left is mostly for it.

No surprises here. But Republican opposition likely means it will have to wait for the new Congress. Most Democrats support it but want the cover of a bi-partisan move. Coming so soon after a heated election that was bad news for the GOP, they don’t seem to be in the mood to oblige.

The real test will likely come in early February. Stay tuned.

D as in Depression. And GM continues to make the point that bankruptcy is not a practical option for automakers.

WASHINGTON (AP) - A top executive of Chrysler LLC cautioned Wednesday that a carmaker collapse could send the economy spiraling into a depression, as the United Auto Workers union braced for contract concessions.
Jim Press, Chrysler’s vice chairman, said the U.S. automakers were “down to months left,” as industry officials ratcheted up a fierce lobbying push to persuade Congress to approve as much as $34 billion in emergency aid.

 ”We’re on the brink with the U.S. auto manufacturing industry,” Press told The Associated Press in an interview. “If we have a catastrophic failure of one of these car companies, in this tender environment for the economy, it’s a huge blow. It could trigger a depression.”

 

If the program doesn’t go through now, it’s clear the Dems are comitted to it. The groundwork is certainly being laid. The only question may be, will the Democrats pay a price for it down the road?

That probably has more to do with what happens to the companies over the next two years, as opposed to what happens in Congress in January, or February.

Climate Progress examines auto makers plans submitted to Congress in light of their views:

Assuming we believe they will do what they say, the reports reveal a fair amount about the company’s plans for cleaner car. Interestingly, Ford does not use the word “hydrogen” or “fuel cell” at all - a huge shift from even a year ago when briefings that I received from the car company suggested they were still enamored of “The car of the perpetual future.” For Ford, the future now seems to be electrons:

More good news on the gasoline price front.

In moves obviously geared toward soliciting Congress for funds, some of the Big 3 are making some changes.

GM cancels its corporate jet service.

GM’s CEO will be driving a Malibu hybrid the day of the hearings.

Ford and GM CEOs join Chrysler CEO in offer to work for a buck for a bailout.

Ford predicts profitability by 2011. It’s also losing the corporate jets and is seeking $9 Billion.

This is not news we want to be reading right now, especially with government at all levels looking to bolster a flagging economy with increased spending.

When Heritage Lincoln Mercury closed in August, the city of Tustin felt the pain.

For decades, the dealership had operated out of the Tustin Auto Center — which has 17 other franchises — and it was once among the largest Lincoln Mercury dealers in California.

 

It was also a crucial source of revenue for the city, which relies heavily on taxes from automobile sales to keep afloat. Of the city’s $20-million annual budget, about $5 million comes from the auto center, said the city’s director of finance, Ronald Nault.

It’s said the blogosphere has a “long-tail.” Items and links flow downstream. Business as a whole and the auto industry in particularly has one, too.

It’s expected, but just not a good time to see that tail stop wagging.

At AutoBlog via The Wall Street Journal:

The so-called jobs banks, while shrinking, have been viewed by critics as a competitive disadvantage for Detroit auto makers, calling them an overly generous benefit at companies that are posting billions in losses. Union officials and their allies counter that the banks have been an effective way to keep a flexible job pool available and have allowed the companies to implement new technology while reducing overall numbers responsibly.

The flexible job pool argument is a joke. At non-union plants workers can be re-assigned to various jobs as the work flow requires. Under UAW contracts, many workers have idle time during the day as they are only permitted to complete specific tasks.

All of the Big Three’s problems can’t be pinhned on the UAW. But in today’s Global economy, a UAW wish list for job benefits is a suicide pact. Manufacturers can simply build offshore and ship. So every penny counts.

Detroit has refined presentations destined for the House this week:

The heads of Detroit’s automakers will be making the most important pitches of their careers this week when they return to Washington to ask Congress a second time for $25 billion in emergency loans.

Teams of executives at General Motors Corp., Ford Motor Co. and Chrysler LLC worked through the Thanksgiving weekend drafting plans outlining deeper cuts and new or accelerated environmental initiatives by the Tuesday deadline set by congressional leaders.

Weak auto sales due out the same day are likely to underscore the urgency of their pleas for bridge financing to keep their companies going through the next few perilous months. Industry analysts predict sales fell in November to 25-year lows.

 And in a similar vein, even luxury car sales are off by more than 30%. They often manage to hold their own even when the mass market tanks. Not this time.

In past economic slumps, luxury-car makers have withstood the downturn better than their mass-market counterparts. Not so this year.

Sales for the U.S. luxury-car market, which includes everything from a Lexus to a Lamborghini, fell 30% last month from a year earlier — on par with the 31.9% decline for the overall market, according to Autodata Corp., a market research firm.

Jack Fitzgerald focuses on the UAW’s role in current problems facing the Big Three via Auto News.

There’s been some discussion as to how much GM’s hourly employees make under the current UAW contract. n item in the New York Times suggested it was as high as $70 per hour after benefits were figured in.

The original (or, at least, the most prominent) source of this claim seems to have been a recent column in The New York Times by Andrew Ross Sorkin: “At G.M., as of 2007, the average worker was paid about $70 an hour, including health care and pension costs.”

Another source now pegs it as $28 with an additional $10 in benefits. Many of the benefits go to retirees, not current workers.

If carried out as planned, by 2010–the final year of this existing contract–total compensation for the average UAW worker would actually be less than total compensation for the average non-unionized worker at a transplant factory. The only problem is that it will be several years before these gains show up on the bottom line–years the industry probably won’t have if it doesn’t get financial assistance from the government.

Not good news, I’m afraid. And according to executives, it’s likely to get worse. They are already looking at re-negotiating Labor contracts and some are predicting job declines in the German industry as high as ten-percent.

More than 1.5 million workers in Germany depend on the automobile industry for their jobs. But that industry is now facing one of its worst crises ever. Respected giants BMW and Mercedes are particularly exposed as sales plummet.

Some other bloggers and I had an opportunity to take an EcoDriving course at the LA Auto Show Press Preview last week. Was it a “gas”?

Well, while I might not go that far, it was pretty cool and I was able to significantly improve my gas mileage with just a few minor changes in the way I drive.

If I had to emphasize an aspect or two for a short course, they would almost be philosophical in nature. Try to use anticipation and the concept of the overall trip as you drive. Instead of simply driving from one light or corner to the next, think about what is the most efficient way to get there. Ramp your speed up slowly and when you can do it and maintain a decent speed - coast.

If that sounds simple it’s because it is. And it works.

Also try to anticipate when you may have to stop and when you can allow the car’s momentum to carry you through a turn, or transition. I improved my mileage by about 25%.Ad that was in LA’s rush hour traffic. Imagine what you might achieve of you put your mind to it over a period of time.

Here’s another blogger’s take on some new things that are Green - and EcoDriving, as well.