While TTAC’s been busy chronicling the fall and fall of American automakers’ 100-year hegemony over the domestic auto industry, Autoblog’s been keeping its audience appraised of the latest modded cars, Mustangs and SEMA showpieces. Fair enough. We’re proud to be able to relieve AB of their obligation to blog hard news.  But every now and then, AOL’s auto-bitch feels compelled to weigh-in on matters weighty. Normally, they take a predictable editorial line on Detroit’s disasters. That sucks. Good luck! And don’t don’t forget to park your latest whip in the Autoblog Garage. Thanks! So when there’s a change of tone at AB, it can only mean one thing. That REALLY sucks. Chris Shunk provides our excursion to the dark side of the moon (snicker snicker). After reporting on the Treasury Department’s “Just Say No” response to funding the GM – Chrysler merger, Shunk sums-up Motown’s End of Days, AB-style. “There is no doubt these are very troubled times for the U.S. auto industry, and it seems everything is happening very quickly right now. Most forecasts are pointing to a similarly dismal 2009, too, so this mess is far from over.” Thanks for the heads-up.

I know Farago’s answer, but hear me out. As I mentioned when I reviewed the Bullitt, I’ve driven many Mustangs. And do you want to know the truth? The fact they all have live axles… really doesn’t make any difference. Like, let’s get real here. None. As far as I can tell, the only time you can tell from the driver’s seat the new Mustang is without IRS is when you hit a bump going around a corner. “Dude!” I hear you yelling, “You’re admitting that bumps upset the live axle!” No, not really. I’m simply saying that live axles feel different from IRS. The car doesn’t explode. But what about dangerous? Naw. I mean do you see Mustang FR500Cs killing their drivers any faster than the BMW Z4s, Lotus Exiges, Aston martin V8s or Porsche Caymans it competes with in GT4? Right, you don’t. “But, but, but!” I hear you stammering. “Those ‘Stangs are highly tuned. Regular Mustangs aren’t.” Says who? Here’s what I’m saying after driving an awful lot of Mustangs. Knocking on live axles is just another anti-American car Jeremy Clarksonism. What’s next, knocking the Z06 because it sports traverse leaf springs? Oh wait– he did that, didn’t he? What say you?

Remember when the rumor dujour was a Ford GM hook-up? That didn’t last long, thanks to Fords deep lack of interest. But as the LA Times points out, rejecting GM’s advances was just step one in Ford’s survival scheme. In fact, Ford is letting GM take the lead on bailout beg-a-thons, UAW negotiation and more. Once GM gets the feds to profer the appropriate mammaries, The Blue Oval Boyz simply waltz in and ask for their turn. “If they’re going to give money or other benefits to GM, there’s no way that Ford won’t be asking for those, too,” says Aaron Bragman, auto industry analyst for Global Insight. “Their argument is that if one company gets access to low-interest loans, so should we.” Ford VP Mark Shields puts it into bailout speak for us: “Whatever happens in the industry, there should be parity.” Ford is taking the “you go first” approach because it has cash to conserve, whereas GM has no choice but to go begging. (Or declare bankruptcy, of course.) But if the GM-Chrysler merger goes through, the UAW VEBA contract will likely be renegotiated. When it is, Ford will be able to apply any concessions to its own business with the UAW without paying for any of the negotiation. And while it outsources negotiation and federal fundraising to GM, Ford is focused on bringing its European lineup of fuel-efficient vehicles stateside. Can you say last man standing?

Automotive News [sub] has the latest in a stream of consultant reports on the on-again-off-again merger between Chrysler and GM. And things do not look good for Chrysler (duh). Remember back when we got all riled about the projected 70k job losses? The report from Grant Thornton LLP says we can actually expect between 100k and 200k job losses. Less tragically, the merger would also cut Chrysler’s entire lineup, except for “about seven core models.” And shockingly, the Sebring isn’t one of them! The report considers only the Ram, Caravan/T&C, Wrangler and Grand Cherokee safe in the event of a merger. Grant Thornton Principal Kimberly Rodriguez thinks that an agreement in principle between GM and Chrysler could be reached by election day, and damn the short-term bailout money that isn’t coming. “Despite the significant number of families that will be impacted, the benefits of combining the two companies are both structural and strategic,” figures Rodriguez. But long-term strategy will have a major short-term price. Much of the job loss from a merger will happen at suppliers, who are in bad shape already. “The suppliers have been hit by the financing crisis and the raw materials crisis and volumes falling off. This will be a final blow to many suppliers and that will be costly to all the OEMS, but in a controlled fashion, it’s something that the industry with access to financing should be able to weather,” says Rodriguez. Or not.

You may recall that Chrysler shut down the factory producing Hemi Hybrid Dodge Durangos and Chyrsler Aspens– despite ChyrCo spinmeister Scott Brown’s absurd contention that they had plenty of orders for same.  Wee a GM hybrid guy talking to a Chryco hybrid guy told one of our guys that the ailing (as in zombie) American automaker built 400 gas  – electric Durango/Aspens. Which are now headed for the crusher. Apparently, Chrysler doesn’t want to support only 400 vehicles in the system. Crushing vehicles is no biggie for an automaker; early press and other pre-production vehicles are routinely destroyed to avoid liability problems. This is the first time I’ve heard of a post-production vehicle suffering the same fate. You know; if you exclude the EV1.

Production maven Laurie Harbour-Flex has a guest column in Automotive News [sub] that could easily run as a Deathwatch editorial on any of The Big 2.8. Describing the tough conditions that automakers find themselves in, Harbour-Flex argues that flexible production lines will be key in determining who survives and who doesn’t. As the market for new cars swings from segment to segment, chasing volatile fuel prices, manufacturers who can shift production on the fly to meet changing demand will do well. The upshot? Japanese firms use flexible production, Detroit doesn’t. Sure, Chrysler (for example) can claim that its Belvedere, Ill plant is “fully flexible,” but the Patriot and Compass are built on identical platforms. True flexibility, argues Harbour-Flex, means the ability for a manufacturer to “produce any vehicle in their lineups within their body, paint and assembly shops.” And this actually happens. Honda’s Alliston, Ontario plant builds the Honda Civic and Ridgeline and the Acura CSX and MDX, while its East Liberty, Ohio plant produces the Honda CR-V, Civic and Element.  Harbour-Flex identifies four key points that are necessary for truly flexible production.

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So the big news on Long Island, NY was the grand opening of an 800k square foot Tanger outlet mall in Deer Park. It’s infuriating enough trying to negotiate the 20-minute wait to get out of the overcrowded lot. However, the real aggro’s found in the front of the parking lot. Normally, you’d expect spaces reserved for the handicapped. Instead, there are 30-some-odd spots set aside for “Parking for Low Emitting and Fuel Efficient Vehicles Only” (a la the ‘Expecting Mother’ spots reserved at the supermarket). So who exactly is policing these spots, and what criteria are they using? As you’d expect over half were filled with SUVs. The other half were occupied by emissions-belching early 90s rides clearly driven by store staff who arrived first. Or perhaps in my random sample the H3, Grand Cherokee and ML in the spots are already part of the Pickens Plan strategy for natural gas retrofitting. I don’t know who I want to bite in the arm as hard as I can- the patrons or the mall developer…

Today is officially Freak-Out Friday for GM car dealers. As we reported earlier, GMAC is pulling the rug from under/hoiking-up the cost of dealer floorplan finance, the arrangement that allows dealers to buy the damn cars. And now Automotive News [sub] alerts us to the fact that General Motors is pulling the plug early on a certified used-car financing program. “GM had announced a financing incentive program through GMAC Financial Services that would start Oct. 1 and run through Jan. 5. The program offered 3.9 percent consumer loans for 60 months on all used models of the Chevrolet Impala, Pontiac G6 sedans and Chevrolet Silverado and GMC Sierra trucks. But on Oct. 17, GM sent a notice that it would end the program Nov. 3, McDonald said. As a result, many GM dealers worry they won’t be able to move the inventory they built with the understanding that the program would run through Jan. 5.” This is a swimming pool of not good for GM’s dealer relations, should such a thing exist anymore. “Obviously, the dealers are our customers,” GM spinmeister John McDonald dervished. “We want them to be successful, but you can’t get to the point where you’re putting yourself in financial difficulty.” Can someone please shoot John an email on that financial difficulty thing?

General Motors is on a crash course towards bankruptcy. The company once known as the world’s largest automaker is burning cash so rapidly most experts agree that it won’t last through next year. Although Ford has more money at hand, having mortgaged everything up to and including its logo, the Blue Oval is also spending its way towards C11. Chrysler? DOA. In response, Congress recently approved massive loan guarantees for the industry. But Motown’s supporters are clamoring for another, equally massive handout. As our duly elected representatives argue how best to save Detroit, its champions warn of looming disaster. Still it must be asked: should The Shrinking Three be left to face market forces unaided by Uncle Sugar?

TTAC commentator Redbarchetta writes… “I was wondering after seeing that NASCAR picture in the latest post. Has there been any word on what happens to NASCAR funding? I’m mainly talking about GM and Chrysler since they are closest to death and cutting EVERYTHING. It would make sense that they would stop supporting that also. I’m really not even a huge NASCAR fan so I don’t even know how something like that would impact the sport. I was also wondering, just for kicks since the government won’t let it totally collapse, but what happens to NASCAR if Detroit folds and they have no more manufacturer support or sponsorship? Would the sport collapse also or just become the Toyota Camry-athon?”