“Without any doubt we knew fundamentally that [a merger with GM] would work, but only if it was a collaborative effort. Frankly, there was a possibility to create something that would be extremely competitive… unfortunately, it did not happen.”

Nissan/Renault honcho Carlos Ghosn reflects on the GM merger that might have been. When asked if he was happy that the merger hadn’t gone through, Ghosn replied “when you see the disaster and the waste of energy and skills and talent, nobody can be happy.” But was he talking about GM or the failure to merge with them? And since Ghosn has us in a reflective mood, isn’t it fun to imagine how a GM-Renault/Nissan merger might have played out?

Cars are not a mere means of mobility. They respond to the driver’s will; they turn, speed up, slow down. Naturally, there’s a need for excitement…Of course, eco-friendly cars are a prerequisite for the future, but there must be more than that.  Morizo cannot afford to lose. I will tackle the challenge of creating a car with even more splendid flavor than the Scirocco.

Toyota CEO Akio Toyoda blogging at his company’s Japanese marketing website Gazoo.com, as reported by Automotive News [sub]. Toyoda’s Scirocco killer? That has to be the FT-86 “Toyobaru” coupe. Interestingly, Inside Line reports that the Subaru version will have about 250 hp, AWD and will cost about $30k. In contrast, the $25k Toyota will be smaller, RWD and only 200 hp. Smaller, lighter and RWD? Sounds like Toyota beat Subaru to the splendid flavor. [Hat Tip: Cammy Corrigan]

The Detroit News reports that Senator John McCain (remember him?) has declared Chrysler unlikely to survive. Mr McCain, who was serving as grand marshal of the NASCAR Sprint Cup series race at the Phoenix International Raceway, even went as far as to argue

No, I don’t think we ever should have bailed out Chrysler and General Motors. We should have let them go into bankruptcy, emerge and become viable corporations again. It was all about the unions. The unions didn’t want to have their very generous contracts renegotiated so we put $80 billion into both General Motors and Chrysler, and anybody believes that Chrysler is going to survive, I’d like to meet them.

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We liked Fritz. We felt that Fritz had more energy and more drive and got the message that things had to change and was being groomed to be CEO and deserved a chance… He’s shown that he can manage. Whether he can fundamentally change the culture of the company is another matter.

Bloomberg’s fresh sound bite from former car czarlet Steve Rattner. Well, considering you left him in charge, Steve, he’d damn well better change the culture of the company. Otherwise it reflects just as badly on the restructuring task force as it does on GM, doesn’t it? Come to think of it, picking Fritz because he had “more drive” than Rick Wagoner wasn’t really a good setup for fundamental culture change, was it? You don’t hire Larry to move your piano because he’s “higher energy” than Moe. But it’s not Rattner’s fault: GM’s inability to change its culture comes from its inability to hire the professionals. Which means Ken “the pay czar” Feinberg and his ridiculous pay limits are really to blame.

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You need to go to your toughest market. The state of California is the biggest nut to crack for Buick. Californians love their Toyotas, they love their luxury cars, their BMWs and their Priuses, Buick is not even on their radar screen. These people don’t know this Regal. Picking the L.A. Auto Show demonstrates some confidence we have in the product and in the brand.

So says GM’s Susan Docherty in the Detroit News. Of course, it also shows how screwed the Buick brand is. California on its own is one of the largest markets for cars in the world, and it’s also home to some of the most virulently anti-domestic-brand sentiment in the country. Which explains why Buick is trying to win over the Golden State with its first-ever imported model. But as Docherty says, “One car doesn’t transform a brand. You have to have a series of successes so one, plus one, plus one equals more than three.” Meanwhile, while Buick tries to convince Californians that they don’t actually want a Lexus, everyone who thought they knew and loved the Buick brand will just be confused.

The catalyst for all this was the EU saying you only made the money available to one investor. The board did what they should have done and revisited the issue… It’s been a confusing decision, but I don’t think it was handled badly. The circumstances changed from the time this started. The financial part of the business got better. Conditions have changed.

GM Chairman Ed Whitacre on the decision to keep Opel. Financial? Better? Because EU regulators said so? How anyone can see the Opel situation as a “sign of change” is beyond me. GM never wanted to get rid of Opel, they just didn’t want to pay the $8 bil, er, $3 billion to keep it. Too bad German Economics Minister Rainer Bruederle says it’s actually going to cost a cool $5b to restructure Opel. Which GM will just be cannibalizing with Chevwoos anyway. Is any of this not sounding like Old GM?

“I have to be careful on what I say, I don’t want you guys writing a story saying, ‘This Toyota guy thinks the Hyundai Sonata is a great car.’”

—Toyota’s Group VP and General Manager, Bob Carter, responding to a request to comment on the strength of Hyundai as a competitor.

“I don’t think people here really understood that the work we had been promised was contingent on ratification,” Sterling Axle UAW member Brian Pannebecker told the Detroit News re: the union’s rejection of a new Ford contract. As my step-daughter Sasha is wont to say, “Wow.”

The internet chatter on GM is growing more intense by the day. We’ve seen this before. For at least a decade, the company and its camp followers have mounted a disinformation campaign ahead of bad news. Only these days, there’s precious little good news with which GM’s spinmeisters can obfuscate. And critics of the nationalized automaker grow more vociferous by the day. Even the normally obsequious automotive press is no longer adverse to a little kicking-a-man-when-he’s-down routine (although any discussion of kicking GM to the curb is still the story’s Voldemort). New GM’s October sales numbers are about to hit the screens, and it ain’t gonna be pretty. GM’s first full financial report will emerge thereafter; the hard numbers on the company’s cash burn will trigger major mainstream media alarms and raise fresh (stale?) questions about GM’s viability. And then what? Will heads finally roll at RenCen? Will America’s automotive English patient continue to receive copious quantities of hospice care? Will the bailout issue bite Barack’s army in the ass come mid-term time? Meanwhile The Detroit News reports that tensions are simmering, . . .

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I’m not going to tell you incentives are going away. They’re part of the game, but they can be better managed than they have been in the past

GM Sales maven Susan Docherty in the WSJ.