Fleet sales were up 47 percent in the first quarter of this year, driving sales at a number of automakers. Ford, in particular, is targeting fleet sales unapologetically by touting a recovery in resale values for the Blue Oval Brand. Ford’s Mark Fields tells the Freep:

We love fleets at Ford…Ford remains focused on our disciplined approach to daily rental, making sure we help keep growing residual values

At Chrysler, which suffers from some of the lowest resale values in the business thanks in part to a longtime addiction to fleet sales, the response seems a bit more… conflicted.

Unlike long-wheelbase luxury, the other major theme emerging from coverage of the Beijing Auto Show was hardly unique to the Chinese market. Electric vehicles and talk of automotive electrification have become a highlight of every auto show, with politicians joining executives to push EVs whether the show is in Detroit, Paris or Beijing. And yet, with a power grid that is said to be upwards of 80 percent coal-powered, China isn’t exactly the ideal candidate for an electric car offensive. China’s BYD F3DM was arguably the world’s first plug-in “on the market,” and yet the Shenzhen-based automaker only found 48 fleet sales last year, and still has yet to report a private sale. Conventional wisdom suggests that most Chinese buy at the lowest end of the market (if they’re lucky enough to afford it), while the “coastal elites” tend to spend their hard-earned profits on vehicles that convey prestige rather than eco-optimism. This is a model the global carmakers know how to work with… so why all the talk of EVs in China?

Last week’s announcement that had Chrysler turned a Q1 profit and GM had “repaid” taxpayer loans brought a flurry of political posturing about the success or lack thereof of the auto bailout. With Republicans laying into the auto bailout from several angles, President Obama dedicated his weekly address to a defense of industry assistance. Obama still frames the bailout as an unpleasant necessity, but argues that last week’s news means the chances that taxpayers will recoup their “investment” are improving. And apparently the Treasury agrees. According to the Detroit News, Treasury has revised its estimate of auto bailout losses (not counting GMAC) downwards, from $30.6b to $28b. Progress, sure, but hardly a sign that taxpayers can expect full payback from its state-owned automakers.

With Senator Chuck Grassley (R-IA) already taking the White House and Treasury to task for possibly helping GM avoid paying the “TARP Tax,” Republican representatives Darrell Issa (R-CA) and Lamar Smith (R-TX) are attacking the auto bailout from another angle, writing a letter to nine automaker CEOs requesting clarification of the negotiating process that led to recently-passed final rules on a ramp-up of greenhouse gas (GHG) emissions standards. In their press release on the issue, Issa and Smith note:

It is unclear whether the Administration used leverage created by the possibility of a taxpayer bailout of GM and Chrysler to secure their cooperation and support for new fuel economy standards. Moreover, there is reason to believe Administration officials used inappropriate tactics to ensure broad based support across the industry. Given the clear conflict-of-interest issues at play, which naturally arise when the government is in a position to pick winners and losers and impact the future viability of private entities, it was imperative that the Administration act with the utmost transparency. Instead, the White House imposed an unprecedented level of secrecy.

Are Issa and Smith on to something, or is this simply a partisan dogpile on an unpopular policy? Hey, this is politics… does it even matter?

For 90 years, the ad agency Campbell-Ewald has been Chevrolet’s go-to source for all-American ad messages, including the “See the USA in your Chevrolet,” “Heartbeat of America,” “Like A Rock” and “American Revolution” campaigns. But despite a track record of household-name campaigns, trouble has been brewing between GM and C-E for months now. In December, GM announced that C-E would focus on developing Silverado pickup ads for the Winter Olympic Games, while car and crossover advertising would migrate over to the French agency Publicis. Today, AdWeek reports that Chevy is terminating its nearly century-old relationship with Campbell-Ewald, and will move its entire Chevrolet business to Publicis. So what does this mean for Chevy’s advertising?

Yabe! (Oh shoot.) As the sun set over Toyota City and Tokyo, Toyota’s execs and Sararimen (salary men) alike were crying in their sake. Today was a sai aku (very bad) day. A day everybody at Toyota most likely would want to forget. No, no recall for a change. There isn’t much left to recall anyway, or so it seems.

The sai aku day started with Moody’s downgrading Toyota’s formerly stellar credit rating to “its lowest-ever level,” as The Nikkei [sub] laments. Moody’s came to the somewhat belated conclusion that “multi-million vehicle recalls and safety issues raise questions about its profitability and ability to stay ahead of rivals on pricing power until 2012 at the earliest.”

To make matters even more sai aku, Moody’s warned that its outlook for the rating remains negative. Why the pessimism?

A photo enforcement company and city officials are gearing up to fight members of the public who will soon vote on the issue of red light cameras in Baytown, Texas. Earlier this year, American Traffic Solutions (ATS) set up a front group entitled Safety Cameras for a Safer Baytown to serve as its political action committee in opposition to a ballot measure that would ban the use of cameras. The firm used the same tactic in its failed effort to save cameras from a public vote in College Station last year.

Taxpayers, your partial refund is in. Now quick, make with the pension bailout and EV subsidies. Oh, and be sure to pick up a new Chevy, Cadillac, Buick or GMC as a “thank you” present for this act of patriotic largess.

Since GM has only recently come out with GAAP-approved financials, determining the company’s value isn’t easy. Still, The Detroit Free Press‘s Tom Walsh reckons The General is worth more than Ford, despite the fact that GM recently fell out of the Fortune 500’s top ten (and below Ford) for the first time in its 100+ years of history. What gives?

The latest Cruze-hyping video from GM shows the forthcoming compact ripping through a test track, as Vehicle Line Director Chuck Russell waxes eloquent about its engineering and reliability. His point is clear: this new Cruze is a truly global product, in contrast to the America-only Cavalier update that was the Cobalt it replaces. And comparing footage of the Cruze ripping through a slalom to that of a Civic negotiating the same obstacles, one is left with the impression that Russell isn’t just blowing smoke. But then, we knew that already. In his review of the European-spec Cruze, TTAC’s Martin Schwoerer notes:

In contrast to the engine, the Cruze’s ride and handling are perfectly acceptable in the grand scheme of things.

We’re right on the verge of having 12 million in vehicle sales

UAW boss Ron Gettelfinger waxes optimistic in a recent speech at Wayne State University [via The Freep]. “Not so fast,” says Automotive News [sub]’s delightfully cranky senior editor, John K. Teahen Jr., in a piece appropriately titled 12 million sales this year? Don’t hold your breath.

Who was Europe’s leading brand in March?

Volkswagen? Wrong.

PSA? Wrong.

Renault? Wrong.

With weeks of recall coverage and with Lexus’s GX460 snagging a rare Consumer Reports “do not buy” warning, you’d think that at least one of CR’s recent “worst-made cars on the road” [via Forbes] would be made by Toyota. But you’d be wrong. Dodge Nitro, Jeep Wrangler, and Ford F-250 join four GM products (Cadillac Escalade, Chevy Aveo, Chevy Colorado and GMC Canyon) as the seven worst cars CR could come up with. And though this hometown sweep for Detroit goes a long way from separating facts from fiction, it’s nowhere near as instructive as the responses from each of the Detroit automakers to the charge of making crap vehicles. Let’s take a look, shall we?

I know that they have to cut the car open to take the engine out. To make an engine in that configuration, you know, it doesn’t go around corners. When we did the race in Abu Dhabi, we beat it off the line so many times that the film crew was getting frustrated because the outcome was supposed to be for the Bugatti to win. So we had to do that whole thing about ten times before it managed to get off the line cleanly and catch us up. Because every time they dropped the clutch it bogged down and we were gone.

McLaren’s Ron Dennis lays into the Bugatti Veyron at the Middle East launch of his firm’s new MP4-12C [ Arabian Business via Wired Autopia]. What Dennis leaves out is that the Bugatti has a (computerized, sequential-shift) automatic transmission, so it’s difficult to know what he means by “they dropped the clutch.” Besides, it sounds like the former Formula 1 boss is spewing bile, rather than objectively critiquing the Veyron… which there’s plenty of room for.

Over a year now, the launch of Buick’s new LaCrosse gave us pause to consider the average age of Buick buyers, and the future of the brand’s demography. At the time, The Detroit New claimed the average age of Buick buyers was 63, a fact that gave the paper cause to celebrate Buick’s new lease on life. And considering that the brand once attracted buyers of an average age of 72, that wasn’t a bad trend at the time. Today’s DetN has a similar story, lauding Buick’s newfound youthful appeal with such quotes as this one from IHS Global Insight’s Aaron Bragman:

They are making definite improvements in the U.S. To kill Buick would have been crazy. It’s one of the most important brands in the Chinese market…. It’s still too soon to really come to a verdict on how Buick is doing in the U.S. But nobody can say those are old person’s cars anymore. Because they aren’t.

But this latest round of Buick-boosting is still based on the old reference point of a 72-year-old average buyer demographic. Compared to a year ago, Buick’s average buyer age appears to have crept back up again, as the Detroit News cites a current average demographic of 65.

Where to start with Saab-Spyker CEO Victor Muller’s plans for world domination? Why not with the craziest part? Despite declining sales, the boutique supercar arm of Saab-Spyker claims to be developing a “Super Sport Utility Vehicle” in the mold of the D12 Peking-To-Paris showcar. Autoinformatief.com caused quite a stir when it revealed images of both a clay model and a test mule for this allegedly production-bound (yes, again) piece of madness. Moreover, news that Spyker won’t be invited to use Audi engines in forthcoming models caused at least one popular car blog to run the headline “Spyker’s New Ferrari-Powered SUV.” Because apparently Spyker can’t decide if it wants to use an AMG engine or a “supercharged Ferrari V8.” Does this give you a taste of just how goofy things have become ’round Saab-Spyker way? Well, it gets worse.

The Detroit News has just published a quote that allegedly comes from a January 16 email from Toyota Motor Sales USA group vice president for environmental and public affairs Irv Miller to “company officials in Japan.” Miller’s quote reads:

I hate to break this to you but WE HAVE a tendency for MECHANICAL failure in accelerator pedals of a certain manufacturer on certain models. We are not protecting our customers by keeping this quiet. The time to hide on this one is over. We better just hope that they can get NHTSA to work with us in coming with a workable solution that does not put us out of business.

The UK gets a bit of a harsh stereotype. Allegedly, we’ve got bad teeth, drive on the “wrong side of the road” and are very reserved (apparently, that’s a bad thing). We also call ads or TV commercials “adverts.” We may be odd, but believe it or not, we can kick “bottom” when we feel like it. Now I could point to the Burning of Washington, but I’ve been advised by Führer Schmitt that this may be “too soon,” and could “hurt their feelings.” Nor will I point to Waterloo or the Iranian Embassy Siege. What I’m pointing to is the Advertising Standards Agency (ASA). They are quite a rabid bunch. If they don’t like something, they’ll kick its bottom and ban it. Like this advert, or this one. They’re also quite hard on automotive adverts, too. In 2007, the ASA banned an advert from Toyota about the Prius for being “misleading” (you can watch the advert here). And now, Renault is copping it in the neck (as we fancy to say.)

The AP [via canadianbusiness.com] reports that two separate bills to make the Corvette Kentucky’s official state car appear to be dead in the state’s legislature. State Rep. C.B. Embry Jr., R-Morgantown, suggests that the failure of these bills would be perceived as a snub by GM, who builds Corvettes in Bowling Green. Not so, say GM reps.

With or without a bill, the Corvette is an iconic American sports car, and we’re proud to build it in Kentucky. It shouldn’t be perceived as a snub, and we don’t take it as that.

But GM’s downplaying of the news hides the possible cause for what otherwise would be a win-win political proposition.

Poor Sergio Marchionne… the man can’t go anywhere without being interrupted. The Fiat/Chrysler CEO’s speech today in the buildup to the New York Auto Show was interrupted twice, once by the the ubiquitous Teamster protesters, and once by a test of the hotel’s fire alarm system. But then, maybe people would let him speak if he had more to offer than the same lukewarm assurances that everything is going marvelously in Chrysler-land. The Detroit News summarizes his speech by saying Marchionne believes Chrysler will sell the 1.1m vehicles in needs to break even this year, and that it will do so without getting pulled into an incentive war.Which would be hard to do anyway, considering Chrysler spends more on incentives at “normal” levels than any of its competitors.

The “First Drive” is one of the perennial stumbling blocks of automotive journalism. In return for exclusive access to the latest, most-hyped automobiles that everyone wants to get their hands on, outlets like Edmunds Inside Line are asked to swath their “First Drive” write-up in the most glowing terms possible. Or, as we’ve put it before, the price of an exclusive story is a straight face. Unfortunately the results of this kind of compromise are difficult to read with straight face. We’ve seen no better example of this than I nside Line’s recent “First Drive” of the Honda CR-Z, which yielded such unfortunate lines as:

The CR-Z is like a Tesla Roadster, but without the $109,000 price tag.

You know, besides having a different powertrain driving different wheels, a huge performance disparity, and, well, everything else.

Over the weekend I penned a screed calling baby boomers to task for embracing retro style over the the values that made the revolutionary cars of their era so revolutionary [editor’s note: there’s nothing like having a carburetor on your 35 year-old motorcycle magically fix itself to inspire faith in old, simple machinery]. The new New Beetle was square in my crosshairs over the weekend, but it’s hardly the only example of boomer retro-madness. Another favorite for nostalgic boomers are the legendary muscle cars that marked the high-water point for Detroit thunder, and this feverish demand combined with limited original runs have run the prices of famous muscle cars into the Barrett-Jackson stratosphere. It’s also inspired a legion of knock-off and replica manufacturers, who see huge money to be made by aligning supply with demand. They, in turn, have inspired a number of huge lawsuits from the original creators of the limited-edition legends. Carroll Shelby’s prolific legal battles against creators of Cobra replicas have given him the reputation of being a guy who never met a buck he didn’t like, and now GM has joined the Shelby legacy, suing Mongoose Motorsports for daring to produced replicas of the 1963 Corvette Grand Sport roadster.

“Leading San Francisco product liability attorney, Mary Alexander states if you or a loved one has been injured or killed due to stuck accelerator pedals, break issues, or steering problems prompted by a defective Toyota vehicle, you may have a product liability claim that would entitle you to compensation for your injuries and damages.”

I conduct a car reliability survey at TrueDelta.com. Since we promptly update our results four times a year, we can report on new models ahead of anyone else. Last year, we announced that the 2009 Jaguar XF was faring poorly. This provoked a blistering backlash from owners at a particular Jaguar forum. In the end, threads on reliability were deleted and future ones all but banned in the interest of preserving what remained of the UK auto industry.

Toyota CEO Akio Toyoda is a regular Japanese guy: Shy in public, but blogging on his computer every day. Using the handle “Morizou,” he blogs about his love for sports cars and auto racing on Gazoo.com, which he founded in 1998, if Todayonline has it right. Akio Toyoda is also an avid racer. His appearances at the 24 Hours Nürburgring endurance race in a Lexus LFA are legend. He is chickening out!

The photo enforcement industry announced on Friday the creation of a new red light camera and speed camera advocacy group. The Partnership for Advancing Road Safety (PARS) describes itself as an organization that seeks to use best practices to reduce the number of accidents and fatalities on American highways. The group’s number one priority is countering the growing nationwide backlash against the use of automated ticketing machines that has resulted in multi-million dollar loses for camera vendors.

The Detroit News reports that the United Auto Workers are gearing up for battle for a surprising new cause: greenhouse gas emissions standards. Alan Reuther, Legislative Director of the newly-green union, wrote congress recently to warn against a bill authored by Sen. Lisa Murkowski which would prevent the EPA from declaring C02 a danger to public health, saying:

The UAW also is deeply concerned that overturning EPA’s endangerment finding would unravel the historic agreement on one national standard for fuel economy and greenhouse gas emissions for light-duty vehicles that was negotiated by the Obama administration last year

In 1989, Toyota launched a new luxury brand that would go on to largely replace Cadillac as a vernacular term for excellence in luxury. Known as Lexus, this brand has spent the last 20 years making headway in the US market without ever publicly associating itself with its parent brand. Could this strategy have contained a lesson for the brand managers at GM who have spent the same 20 years fretting (or not) about declining Cadillac sales? Apparently so, as BusinessWeek reports that Cadillac is distancing itself from the corporate mothership in hopes of improving Cadillac’s aspirational appeal. And yet, strangely, it’s still not clear that the lesson has actually been learned.

Reuters (which has been all over the Volvo-Geely deal) reports that Zhejiang Geely Holding has money “in the bank account,” to purchase Ford’s Volvo brand, citing Swedish press reports. And yet, despite having reportedly given Ford guarantees about the financing of Volvo’s business plan, and scheduled a formal deal signing for last month, a deal has yet to emerge. Last week, Geely’s chairman Li Shufu told Reuters from the sidelines of the National People’s Congress in Beijing that “we haven’t reached a final agreement so far,” but “everything is moving as planned.” Geely has also been talking up its “only one foreign brand” strategy and “new energy” car plans, while Volvo reps tell AM Online that a deal will be done by March 31 and that Chinese market access will save the brand [via The WSJ [sub]]. In fact, the only party involved that’s not issuing a steady stream of PR about the upcoming deal is Ford. Could the Blue Oval be getting cold heels?

An article in this week’s Advertising Age and Automotive News (they’re sister publications) investigates why the family in the new hit sitcom ‘Modern Family’ “still drives Toyota product.” The author found it “jarring” that the family “chatted happily while traveling in, of all things, a Toyota.” The answer: Toyota paid for product placement, the contract runs through the end of the season, and many of the episodes have already been shot.

Thanks to the “optics” (if not the reality) of the latest Toyota sudden unintended acceleration scare, the story has new legs just as Toyota and Exponent were hoping to cut them off. But as much as dramatic, cop-calms-killer-Prius headlines keep the Great Toyota Panic alive, so to does the fact that the 89-odd class-action lawsuits filed against Toyota could be worth over $3b to plaintiffs and their counsel. And that’s not counting any of the incidents in which people were actually injured or killed (which are actually relatively rare). No, that $3b+ is going to the truly deserving… and their lawyers.

Toyota and its contracted engineering auditing firm Exponent held a webcast today to refute the claims that Professor David Gilbert has leveled in an ABC report and recent congressional testimony. Gilbert claimed that he was able to induce sudden acceleration without triggering failsafe mode or an error code in Toyotas by hacking into a Toyota pedal. Toyota and Exponent’s central claims are that the conditions created in Gilbert’s test could not be replicated in real life and that similar tests produced identical results in competitor vehicles.

The personal transportation choices of auto executives has always been an easy point of reference for members of the mainstream media looking for an easy story. From Alan Mulally’s Lexus to Akio Toyoda’s Davos Audi getaway, auto execs’ use of non-company vehicles is always good for a quick “gotcha” headline. But no story in this rich oeuvre has had quite the impact of Jet-Gate, the name given to the mini-scandal that erupted when the executives of Ford, Chrysler and GM arrived in Washington DC for bailout hearings in three separate private jets, prompting derisive comments from members of congress. The PR misstep has haunted Detroit ever since, inspiring federal rules barring bailed-out automakers from using executive jets, and making transportation choices for auto-related DC hearings a major priority for automaker PR: Toyota’s Jim Lentz clearly had the episode in mind when he arrived for recent hearings in a recalled and repaired Toyota Highlander. And thanks to a recent revelation about GM Chairman/CEO Ed Whitacre’s use of executive jets, furor over auto-exec transportation is clearly a long way from playing itself out.

And while we are solidly in left brain mode, here the explanation of Toyota’s brake override. You can start on a steep hill, even brake with your left foot, says Toyota. Let their presser speak for itself:

Recently-reassigned Cadillac boss Bryan Nesbitt isn’t the only GM exec paying the price for weak Cadillac sales, as Automotive News [sub] reports that GM has terminated three other Caddy executives.

Cadillac’s Steve Shannon and John Howell were dismissed Monday, said eight sources familiar with the moves. Jay Spenchian, an executive director who worked on Cadillac and other brands, was also let go, the sources said.

This is the news from the Lake Wobegon car show, where all the vehicles look beautiful, all the engines are low-emission, and all automotive managers are above average. No wait, this is Geneva, probably the world’s most important car show. The rest of the opening sentence is true, though — at least, that’s what public relations would have you believe.

When it comes to the cause of the alleged Toyota unintended acceleration, the TTAC commentariat is divided into two camps:

One side is convinced they know what’s wrong with Toyota. (It’s the cursed computer. May it roast in hell and grow tin whiskers.)

The other side isn’t so sure and argues for caution. It could be pilot error. Plain old hysteria also isn’t ruled out. Or some trade warfare that reared its no so pretty head at yesterday’s hearings: “You block our beef because of mad cow disease. We do the same to your cars.”

Well, who says life is fair. Flash: The doubters are being discriminated against. The commentators who know what’s wrong with Toyota can become instant millionaires. Here is how it works:

Chrysler sold exactly 399 more vehicles in February than it did in February of 2009, which would be a respectable performance if the comparison weren’t with one of Chrysler’s worst months on record. GM may be tentatively nosing its way out of the bottom of a sales trough, but Chrysler is treading water at unsustainable levels (CEO Sergio Marchionne has said he “needs” Chrysler to sell 1.1m units in the US this year). Considering that a huge amount of Chrysler’s sales release [ PDF format here] is spent detailing the company’s many consumer incentives, Marchionne’s goal of turning ChryCo into a 1.1m-unit, incentive-less juggernaut seems less realistic with every passing month.

With rumors of another GM executive shakeup flying thick and fast, we expected a downright miserable sales performance from The General in February. By the year-over-year numbers [ full release here, sales numbers in PDF format here], there’s no such flow of red tape, as GM’s four “core brands” gained 32 percent and total sales (including Hummer, Pontiac, Saab and Saturn) were up 11.5 percent. But that’s in comparison to February of 2009, when GM’s sales were down 53 percent from the year earlier. In short, GM appears to have hit bottom in terms of volume, but it still has yet to recover to anything close to 2008 volume.

Motor Trend reports that former PT Cruiser stylist Brian Nesbitt has been relieved of his duties as the head of Cadillac, ending GM’s post-bankruptcy experiment of putting a stylist in charge of an entire division. But MT figures that Nesbitt’s ouster isn’t as simple as a failure to perform; according to their sources, the firing was political.

The shakeup has major implications for Bob Lutz’s future at GM. He hired Nesbitt away from Chrysler earlier last decade and made sure there was a place for the PT Cruiser designer at post-bankruptcy GM. Nesbitt’s departure would indicate Lutz’s role as one of three GM vice chairmen has diminished to almost nothing… Clearly, [recently-promoted sales boss and President of North American ops Mark Reuss] is putting his own team together, and it doesn’t include Nesbitt, who was posed as the aesthetic face of the Cadillac luxury division.

We at TTAC, (well, me, only) have said that since everyone is raining a storm down on Toyota other recalls are slipping by without equal scrutiny. So when I read this article, I thought it fair, in the interests of journalism, to blog it. Not because of who it is, but the reasoning around it.

Toyota was listening closely to the “revolving doors” talk at last week’s hearings.

In today’s Senate committee hearing, Toyota will announce that former U.S. Transportation Secretary Rodney Slater has come on board to lead Toyota’s new quality panel of independent experts, reports The Nikkei [sub] this morning.

Slater was Bill Clinton’s LaHood. He since joined the lobbying firm Patton Boggs and became a partner in James Lee Witt Associates, a risk management firm headed by former FEMA head James Lee Witt.

Shortly after emerging from bankruptcy last July, when GM’s sales were still showing few signs of recovery, then-Sales and Marketing boss Mark LaNeve had his marketing responsibilities stripped about a week before monthly sales came out. In a matter of months, LaNeve was out the door. Sales and marketing were rolled together again when Susan Docherty took over for LaNeve, but over the weekend it was once again stripped away, in one of the first signs that Docherty’s star is no longer rising at GM. And lets go ahead and start assuming that February sales must be looking fairly grim, because the only real explanation given to Automotive News [sub] is that

The shakeup shows that Chairman and CEO Ed Whitacre is impatient to boost sales and for consumers to appreciate what he believes is the high quality of GM vehicles. When he became chief executive in December, Whitacre said his sales and marketing team would need to show results quickly.

The perception gap claims another victim! But Docherty’s downgrade is Mark Reuss’s gain. The former Holden boss, now GM’s President of North American operations, will assume the sales responsibilities, leaving Docherty time to focus on the marketing side and polish up her resumé.