May 2007
Ford Retail Sales Improve on Strength of Cars, Crossovers
By Michelle Krebs May 30, 2007Trying to wean itself off unprofitable fleet sales to rental car companies, Ford expects to report its first year-over-year retail sales increase since last fall when automakers post May sales on Friday. “That’s particularly noteworthy because it would be our first year-over-year retail sales since last October,†George Pipas, Ford’s sales analyst, told AutoObserver.com. Still, Edmunds.com predicts Ford sales, both retail and fleet, will be down about 12.3 percent compared with May 2006. In addition, for the first time since the 1980s heyday of the Taurus, Ford’s retail sales volume is expected to be around 50 percent cars and car-based more
Analysts Donât Buy Toyota's Modesty
By Michelle Krebs May 30, 2007Toyota has been careful about boasting its No. 1 in global sales status while, at the same time, U.S. automakers close plants and cut jobs. Toyota executives, in fact, have downplayed the Japanese automakerâs sales outlook in North America, saying sales will slow. But analysts and investors donât buy it, according to a report today by Bloomberg News. They suspect Toyota is being cautious for fear of a political backlash. They agree Toyota can't match last year's 15 percent sales growth, but most say Toyota is being too modest. "Toyota's sales growth forecast in North America seems too conservative,'' Koji more
Chinese Automakers' Profits Soar
By Michelle Krebs May 30, 2007The Chinese government reported auto industry profits in the country soared 70 percent in the first three months of this year compared with last year. The country's major automakers had a combined profit equivalent to $1.7 billion (U.S.) in the first quarter, jumping by 69.9 percent from a year before, the countryâs Ministry of Commerce announced in Beijing Tuesday. Interestingly, while Chinese automakers -- and there are many of them -- cumulatively made $1.7 billion in the quarter, the three U.S. automakers combined lost about $1.9 billion. more
Mazda: A Classic Turnaround Tale
By Michelle Krebs May 29, 2007By Peter Nunn To win in the auto business, various paths to glory exist. At the Mazda Motor Corp., theyâre doing it the classic, time-honored way: by building sharp-looking vehicles with spirited driving dynamics and a solid image, cars people actually are excited to buy. Cars like the Mazda 3 and Mazda 6, plus the Mazda 5 minivan and new wave CX-7 and CX-9 crossovers, are increasingly putting Mazda on the map and in American driveways. Mazda’s lightweight MX-5 Miata two-seater is the world’s best-selling sports car. The radical four-seat, rotary-powered RX-8 remains an innovative and unique contender in the more
Ghosn: Optimistic About Nissan Profit Targets
By Michelle Krebs May 25, 2007Nissan-Renault chief Carlos Ghosn said this week Nissan should achieve its 2007-2008 fiscal year profit targets after missing them by more than 10 percent in the 2006-2007 fiscal year that ended March 31. "We are pretty confident, but it's only two months into the fiscal year so we'll have to see," Ghosn told reporters after delivering a speech in Detroit to the Society of Automotive Engineers Foundation. Ghosn apparently is looking for Nissan’s cost-cutting –- not sales growth -– to help it meet its targets. Despite launching new models this year after several months without anything new, Nissan sales more
Automakers Hope To End May on a High Note With Memorial Day Sales
By Michelle Krebs May 25, 2007Automakers apparently hope to end what looks to be a flat-to-down month of sales in May on a high note by announcing Memorial Day sales that actually run through the end of the month. General Motorsâ "Memorial Day Sale" campaign, announced Thursday, runs through May 31. GM is offering zero percent financing deals for 36 months and a $1,000 bonus on several Buick, Chevrolet, GMC and Pontiac vehicles in its lineup, including large pickup trucks and SUVs from the 2006 and 2007 model years. GM is also offering zero percent financing for 60 months on three Saturn models -- the more
Study Says U.S. Diesel Sales Set To Outstrip Hybrid Sales
By Michelle Krebs May 24, 2007A research report released today shows U.S. sales of both diesels and hybrids will grow significantly in the next five years but diesels will outpace hybrids. The report from UBS and Ricardo predicts diesel and hybrid sales will hit 2.7 million a year by 2012, or about 15 percent of the U.S. light vehicle market. Diesel will outstrip gasoline hybrids by 1.5 million versus 1.2 million. Increased demand for diesels and hybrids will be driven by U.S. regulators looking to revise fuel economy standards amid concerns for energy security and greenhouse gas emissions. Diesels will gain a preference because of more
Acura Design Studio Opens in California
By Michelle Krebs May 24, 2007Honda opened the doors today on its new Acura Design Studio in Torrance, California. The doors are likely to close quickly as the $15 million studio begins developing new concepts and designs for Hondaâs luxury brand. "This Acura Design Studio will help conceive and design the future of Acura," said Toshihiko Nonaka, president of Honda R&D Americas (HRA), at the opening. "Our goal here is to create emotional designs that create a strong and distinct image for Acura products." more
Edmunds.com Forecast: May Sales Stall; Rising Gas Prices Blamed
By Michelle Krebs May 24, 2007New vehicle sales, including both retail and fleet sales, are expected to be 1.48 million units when May sales figures are announced next Friday. Thatâs down from last May, according to Edmunds.com. This May had 26 selling days, one more than May 2006. When adjusted for this difference, sales decreased 4.2 percent from May 2006. On an unadjusted basis, sales this May are down 0.3 percent. "As gas prices climb, many consumers are taking a conservative approach to car buying. Additionally, numbers are down because domestics continue to cut production, reducing fleet sales and better matching supply with retail demand. more
Harbour: Toyota Most Productive -- By a Hair
By Michelle Krebs May 31, 2007The North American auto industry received its first important grade on its 2006 report card today when Harbour Consulting revealed the outcome of its annual manufacturing productivity study. Top scorers among the six major automakers evaluated (General Motors, Ford, Chrysler, Toyota, Nissan, Honda) are: Toyota - first in total manufacturing productivity, which includes final car assembly as well as also stamping, engine and transmission production. Honda - first in vehicle assembly productivity. General Motors – first to win three of the four plant awards. No. 1 were GM Oshawa #2 for vehicle assembly; GM Spring Hill, engine assembly; GM Toledo, more