OK, so it’s a somewhat facetious headline: as an auto manufacturer, Saab either builds and sells cars or it disappears. But in the aftermath of Saab CEO Victor Muller’s pledge that “We will definitely ensure that this [production stoppage] will not happen again,” Saab’s most recent shutdown sent shockwaves of concern through the Saab community. After all, Saab’s official line is that “we knew this would happen,” a position that’s more than a little at odds with Muller’s now-broken promise. And though the just-signed Youngman deal could mean more cash with which to get production at Trolhättan back up and running, there’s a bigger question that remains unanswered: why restart production at all?

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Just a week after GM CEO Dan Akerson slammed Ford’s Lincoln revival, Ford is asking its Lincoln dealers to put big money down on the brand’s future. Automotive News [sub] reports

A group of 120 Lincoln dealers had been invited to the meeting to hear Ford’s plans to rebuild its remaining luxury brand, say dealers who attended.

Ford expects stand-alone Lincoln dealers to spend an average of $1 million on renovations, dealers say. Owners of Ford-Lincoln duals are expected to spend about $1.9 million to remodel, dealers who went to the meeting say.

If dealers do not invest in renovations, Ford says it will seek to take back their franchises in exchange for compensation. The investment requirement applies only to urban dealers — for now.

And what do the dealers get in return for their hefty outlays? Hot new Lincoln product, or, in the words of a Lincoln rep “seven new or significantly refreshed vehicles coming out in the next three years.” Which means that if you want to get aboard the Lincoln express (destination:viability), you’ll have to get your store to Lincoln standards by the end of 2013, when a redesigned MKZ and a Focus-based Lincoln compact hit dealers.

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I missed the latest twist in Chrysler’s California dealer drama when I was traveling in Iowa last week, but because it’s such a significant story (and because Ford recently proved how expensive dealer drama can be), we’ll commit the cardinal rule of blogging and take a look at some week-old “news.” California’s DMV won’t report the findings of its investigation into Chrysler’s allegedly non-compliant “company store” until September 29, but the Detroit News has reported that ”about 75 percent” of these dealer complaint cases end in settlement and that

Chrysler Group LLC may be on the verge of selling its company-owned flagship dealership in Los Angeles to a private retailer, which could appease angry franchise dealers in California.

So much for ChryCo leaving the state in an angry huff. In fact, angry is about the last thing CEO Sergio Marchionne sounds about the whole thing…

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Cadillac dealers were disproportionately targeted by GM’s bailout-era dealer cull, with some 900 cut before GM reinstated many of them after enduring a downturn in Cadillac sales. The problem, as we noted in a meditation on “Detroit’s Small Town Luxury Lament,” is one of identity:

Is Cadillac a European-grade maker of world-class, dynamically-focused and fashion-forward driving machines, or the small-town America symbol symbol of petty-bourgeois success, with an emphasis on the old-school American  values of wide seats, big power, and a cosseting ride? The brand’s product line displays this identity crisis (compare CTS and DTS) as much as the dealer network does.

The answer: yes. GM is keeping a lot of small-time Cadillac dealers on the roster, and is asking them to upgrade their facilities to a new design created by San Francisco-based architecture firm Gensler. GM talks up the new look’s “contemporary architecture and premium materials” in its presser, but it too seems to try to bridge the yawning gap between a fashion-forward, Euro-inspired look and a more traditional, conservative  look aimed at a more “traditional” customer (see image above?). But does it work? Does the new look communicate “Cadillac values” to you, or does it strike you (as it does me) as a bit of a compromise?

An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…

GM has announced details for the 2012 Model Year Chevrolet Volt, and for the second year of production The General is already addressing the Volt’s most controversial feature: its high price. The base MSRP for the Volt will drop from $41,000 to $39,995 for the 2012 year of production, an accomplishment that GM explains

is possible in part because of a wider range of options and configurations that come with the expansion of Volt production for sale nationally.

Wider range of options and configurations? According to the Detroit News, this means navigation and a Bose speakers are no longer standard features on the base-price Volt, but that seven options configurations are now available compared to the 2011′s three. And, on the other end of the pricing equation, the Volt’s fully-loaded price has increased to $46,265 from the $44,278 that Chevy’s configurator tops out at for a loaded 2011. Keyless access with passive locking is the only new standard feature for 2012. With more choices and a slightly lower price of entry, GM is clearly trying to move the Volt away from the “novelty” image that CEO Dan Akerson referenced earlier this week, as it ramps up Volt production for 60,000 units next year. But until the Volt’s price starts dropping without simply offering a less-contented version, the road to mass sales will continue to be a tough one.

At the end of May, GM had no fewer than 288,000 pickup trucks sitting on its dealers’ lots (up from 275k in April). With gas prices on a short-term dip, but in the midst of a long-term increase, and with the season of traditional gas price spikes upon us, that could give The General cause for concern. After all, even a short-term spike in gas prices could cause a sharp falloff in truck sales, stranding huge numbers of trucks on dealer lots. But, GM North American boss Mark Reuss tells Bloomberg,

We’re not going to run big incentives to clear inventory. We’ll adjust inventory on a production basis.

That’s good news for GM’s financial position, and a promising sign of a new spirit of responsible pricing. But in an industry as complex as this, even good decisions could have troubling consequences. If GM “adjusts inventory on a production basis,” the “Tier One Gypsies” who fled Orion Township to avoid a 50% pay cut could find their temporary refuge at Flint Truck drying up, as HD pickups are likely the first to undergo “adjustments on a production basis.” And though that’s not explicitly GM’s problem, it could ratchet up the pressure to roll back the two-tier system in the upcoming negotiation session, and generally fire up the UAW’s dissidents and hard-liners. Meanwhile, with CAFE and gas prices converging on Detroit’s BOF bread-and-butter, we’ll be watching for signs of trouble as GM adjusts to the larger issue of likely long-term declines in truck demand.

It took a bit of research to fully parse the California New Car Dealer Association’s complaint against Chrysler and its partially company-owned store in Los Angeles, and our finding is that the CNCDA is actually gunning for Chrysler with gusto. But, argued some of the B&B, surely Chrysler doesn’t want to be kicked out of California? Surely Chrysler’s California dealers don’t want to see their manufacturer banned from selling vehicles in the state? Well, it turns out we were missing a little context that seems to indicate why Chrysler’s California dealers are willing to go to war over a single dealership: Chrysler is overhauling its California retail presence with the help of Wall Street hedge funds. Having used the bailout to wipe out 789 dealerships across the country, Chrysler appears to be working around franchise law to exert more control over its retail network in the Golden State. No wonder then that California’s dealers are standing together to attack Motor Village, the most egregious example of Chrysler’s new retail model. And there’s no knowing where the conflict could end…

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