It seems as if every day there’s a new story about a major automaker having trouble because of the state of the economy, not just in the United States, but worldwide as events build and effects cascade.

• Toyota’s worldwide production is down by 1.3% for the first half of their fiscal year which likely means profits have slumped a little, though they’re still stronger than much of their competition.
• Honda is also feeling the strain. Their North American operating profit dropped 80.6 percent during the third quarter of 2008, and they’ve responded by cutting their outlook for the year.
• Alfa Romeo had planned to bring Alfas to the U.S. in 2010, but has pushed that back to 2011, with planned cars being for the 2012 model year (this marks the third delay – originally the cars were due on these shores in 2005, which then got pushed back to 2007).

Taken separately, these items are unpleasant. Taken together there is cause for alarm, and a sincere wish for some kind of cheap car insurance equivalent available for automobile companies.

Bigger automobile company news comes from sources a bit closer to home, where Chrysler, which has been losing money since Cerberus bought most of it from Daimler last year, has shut down the factory which produces their Chrysler Aspen and Dodge Durango hybrids, just as those vehicles were arriving in dealer show rooms, and General Motors has announced the delay of their 2010 Cadillac CTS coupe and Buick LaCrosse and is spending a lot of time trying to find a way not to file bankruptcy, including idling some of their production plants for a week at a time.

One possible rescue of GM may actually involve Chrysler as well. While GM has little cash, Chrysler has access to $11 billion of Cerberus’s money, and it’s been reported by Bloomberg, Business Week, The New York Times, and the Wall Street Journal that the holding company is interested in some sort of trade in which General Motors acquires Chrysler in exchange for the 49% of GMAC they don’t own already, which would potentially give Cerberus any government bailout funds GM is likely to receive.
The question then becomes: why would GM want to make such a deal? Acquiring Chrysler would increase their assets and bands, but it would also lead to bad press from more worker layoffs. On the other hand, a GM-Chrysler entity would receive a larger share of the $25 billion in federally guaranteed loans to develop fuel-efficient cars, than GM would alone.

Of course, GM isn’t the only company that was looking at Chrysler. Two years ago, says Automotive News Europe Nissan/Renault considered “extending their partnership to General Motors, and investors hated the idea.” More recently, it was reported that Nissan/Renault was in talks with Chrysler, but any such talks have now been abandoned.

With GM and Chrysler both asking for bailout funds as of this morning (October 29th), Fiat keeping Alfa Romeo out of the U.S. market for another three years, and both Honda and Toyota showing significant drops in profits, does this market look good for anyone? Not really. Though all of the attention on the status of GM and Chrysler has boosted sales of Ford’s Focus, company stock is currently hovering around $2.00. Ford CEO Alan Mulally is adamant that bankruptcy is not an option however. In a statement made yesterday, he said, “I just can’t imagine that being a strategy,” he said. “Your revenue would fall off so fast, I don’t know how you’d get back out.”

In a time when nothing is certain, one thing is: those companies that wish to succeed will have to drastically rethink their product offerings. Fuel-efficiency, whether it comes from standard gasoline engines, or hybrid options, is the key to future purchases and profits.

In today’s episode of Autoline Daily, John discuses:

• BMW comes out with a simpler iDrive
• Kirk Kerkorian is dumping all the shares he bought in Ford
• Automakers are starting to move away from traditional gauges and using virtual displays
• Honda building a plant in Thailand
• “You-SAID-It” – Questions answered from viewers, a new segment on Autoline Detroit’s Autoline Daily

This and more on today’s Autoline Daily from Autoline Detroit hosted by John McElroy

In today’s episode of Autoline Daily, John discuses:

• Chrysler merger deal could switch to join Nissan-Renault
• Sirius/XM will turn a profit despite the economy situation
• Some GM dealers going out of business hurting GM’s market share
• Rumors about the Toyota iQ
• Chrysler’s electric vehicle
• Insurance companies starting to close loopholes that allow drivers to participate in motorsport events

This and more on today’s Autoline Daily from Autoline Detroit hosted by John McElroy.

In today’s episode John discuses:

• How GM pushes on with the GM-Chrysler merger talks where they both may need to raise money before anything happens.
• The new Honda Odyssey is introduced in Japan with some new innovative technologies.
• The finalist for the 2009 North American Car and Truck of the Year Award are named.
• Luxury car brands are now taking a beating as the U.S. market continues to weaken.

This and more on today’s Autoline Daily from Autoline Detroit hosted by John McElroy.

Speculations have been made about BMW’s development of a full electric Mini to be produced but it has actually been confirmed and a spy shot of the new electric Mini was taken on the streets of Germany. Experts believe this is a test mule of the soon-to-come electric Mini.

Shown in the image on this post is a Hybrid tag that reads “HYBRID Erprobungsfahrzeug” which means “Hybrid vehicle testing”. Now, with knowing that you probably raise the issue of a “Hybrid” as we know it in America is not a full electric car. So what gives? Actually, this very well could mean it is a derivative of two technologies working together. But if you closely look at the image and talk with the photographer that snapped this photo, you will notice the lack of an exhaust pipe. The exhaust is non-existent on this Mini so that leaves us with the conclusion of this actually being a full electric vehicle.

(Click for full-size image)

Lets hear from you! What do you think? Think the exhaust is hidden somewhere? Do you think this is the real deal electric Mini Cooper?

Today’s highlights include:

• Toyota Builds Microcar
• Harley-Davidson Sales Slump
• GM Gunning for Chrysler – A possible buyout?
• Ford stopping development of 4.4L diesel engine for it’s pick-up trucks

Have a great weekend! Check back Monday morning for the October 20, 2008 Autoline Daily Episode.

Epic Fail: Nissan GT-R Transmission Failure Not Covered Under Warranty

So your buddy purchased a new Nissan GT-R and thought he would launch the S*#@! out of it several times just because HE CAN. Now, the transmission has failed after the many unplanned NASA launches and Nissan tells your buddy, “ahh, we are not fixing this under warranty, pay us over $20 grand and we will think about it”. So, the question is… why do you get punished for utilizing an actual feature on a vehicle? It just so happens that you have to void the warranty of a vehicle to accomplish the manufacturer’s performance numbers.

Matt at Garage 419 pretty much reiterates what was just stated above about the Nissan GT-R transmission warranty/launch control issue. That’s absolute BS… I may have to think twice before purchasing a Nissan GT-R. Now.

What do you think, should or shouldn’t Nissan replace the tranny in a GT-R given the same circumstances? Do you know anyone who has blown the tranny in their Nissan GT-R?

Today’s highlights include:

• Tesla Closing Facility
• Blogs buzz about new Toyota Prius
• GM and Cerberus Declare War
• Today’s top news stories

Hosted by John McElroy