GM Unveils European Environmental Plan

GM announced today it will introduce a dramatic Opel concept at September’s Frankfurt show featuring its E-Flex propulsion system, first shown on the Chevrolet Volt at the Detroit auto show in January.

E-Flex is an electric-drive system that extends the vehicle’s range by using a secondary supplemental fuel system. In the case of the Opel concept to be unveiled this fall, it will be a diesel engine. The Volt had a small gas engine. GM unveiled at the Shanghai show this spring an E-Flex system supplemented by hydrogen-powered fuel cells.

GM’s announcement came as part of a larger presentation of General Motors Europe’s environmental strategy, that the automaker says focuses short-term on reducing CO2 emissions and long-term on introducing new propulsion technologies.

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Wiper Inventor’s Story Hits the Silver Screen

Don’t expect the automakers to fight for a product placement in this film!

The story of Robert W. Kearns, inventor of the intermittent windshield wiper systems used on most vehicles for decades, will hit the silver screen. Detroit’s Big Three automakers will play a starring role –- as the bad guys –- who lost after long court battles that ultimately reached the Supreme Court.

Actor Greg Kinnear, most recently appearing in the Oscar-winning Little Miss Sunshine, plays Kearns in Flash of Genius.

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Edmunds.com: June Puts Industry on Track for 16.4 Million Annual Sales

New vehicles sales for June (retail and fleet) are expected to be 1.55 million units, a 3.4 percent increase from June 2006, according to Edmunds.com. Automakers will announce sales on Tuesday.

“In order to understand the year-over-year comparisons of sales for each automaker this month, one must remember that last June was one of the best sales months of the year for some automakers, and was particularly disappointing for others,” observed Jesse Toprak, Edmunds.com’s executive director of Industry Analysis.

“This month, automakers seem to have achieved sales at more typical and sustainable levels rather than the dramatic highs and lows of last June,” he added.

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GM To Sell Allison Transmission

General Motors, as has been speculated, has agreed to sell its Allison Transmission unit for $5.6 billion to private-equity firms to raise funds for its auto operations.

GM’s has a preliminary agreement with Carlyle Group LP and Onex Corp. to buy Allison, which builds transmissions for GM vehicles, including its large trucks. Canada’s Onex Corp. had been helping Canadian auto supplier Magna Corp. in its failed bid to buy Chrysler Group.

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Alternative-Fuel Vehicles Gain Momentum

The number of alternative fuel automobiles on the roads has hit 11 million vehicles, according to a survey by R. L. Polk & Co., which tracks vehicle registrations

In the first quarter this year, 434,000 were sold, 27 percent increase over last year's count for the same period:
· E85-capable vehicles jumped 40 percent from 159,882 to 266,859 vehicles;
· Hybrid vehicles climbed 31 percent from 51,285 to 74,056 vehicles;
· Clean diesel technology saw sales decline slightly from 108,100 to 93,012 vehicles.

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GM Launches Green Films on the Web

General Motors want to convince the world it is green.

To that end, the automaker has produced four videos for its “GM Going Green” channel.

The nearly 3-minute videos cover the topics of green buildings, the reemergence of solar power, GM large fleet of hybrid buses and the Challenge X competition in which engineering students competed to come up with the most innovative way to positively alter the automotive world.

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J.D. Power Report Card Sees Honda Heading the Class

Honda captured four model segment awards -- more than any other vehicle nameplate this year –- in the J.D. Power and Associates 2007 Automotive Performance, Execution and Layout (APEAL) Study released this morning.

The study measures owner delight with the design, content, layout and performance of their new vehicles.

Honda’s four segment-leading models were the Fit (in a tie), CR-V, Ridgeline and Odyssey.

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Hyundai Exec Considers How Gas Engines Can Deliver More Bang for the Buck

John Krafcik, Hyundai’s vice president of product planning and strategy in the U.S., pondered aloud over dinner last night which option would deliver more bang for the buck: investing in pricey hybrids and diesels to meet inevitably stricter fuel economy and carbon-dioxide standards or pumping smaller bucks into refining current gasoline engines.

“I think there’s more to wring out of gasoline internal combustion engines for a lower investment,” he said of the engines that have been around for well over a century.

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Dodge: Will the Japanese Grab Life by the Horns?

By Peter Nunn

Japanese buyers love American muscle cars, Levis, Starbucks and Coke. But what about Dodge?

This month marks the start of a major new Chrysler product offensive to woo Japanese buyers and to introduce them to the Dodge brand, which, in the U.S., bills itself as bold, all-American and for people who grab life by the horns.

The product offensive comes at a time when Chrysler is being sold and the Japanese market in contracting. Japan has long viewed American cars as unsuitable for the country’s market conditions.

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Elena Ford Shifts Gears

Ford executive Elena Ford has changed jobs. She’s moving from the car side of the business to financial services.

Effective August 1, Elena Ford will become executive vice president in charge of global brand and marketing at Ford Credit.

She had served as Ford’s director of product marketing, planning and strategy for North America. However, many inside –- and outside –- of the company questioned Elena Ford’s expertise in such a key role during Ford's critical turnaround effort.

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Chrysler Has Rosy Future, Zetsche Says

Chrysler has a rosy future, says DaimlerChrysler CEO Dieter Zetsche.

"The coming years are going to be good," Zetsche told Germany's daily Der Tagesspiegel in an article published Monday.

Cerberus Capital Management, the private equity firm that bought 80.1 percent of Chrysler, hopes investors see the automaker’s future as rosy as it takes its show on the road seeking investors.

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GM’s Rating Rises

Goldman Sachs raised General Motors’ share recommendation to  “buy” from “neutral” because the brokerage firm sees the United Auto Workers union offering larger concessions than previously expected to the automaker.

"The stock is pricing in a level of concessions we think is highly probable,'' a Goldman analyst wrote in an e-mail. "That implies little to no downside and potentially large upside from the real possibility concessions end up even larger than what is priced in.''

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Nissan Parts-Shops in China, India

Nissan will buy more components from China and India to cut costs.

The automaker will raise global parts purchases from low-cost countries to as much as 24 percent of the total, from as much as 14 percent now, said Carlos Ghosn, Nissan's chief executive officer, in an interview with Bloomberg News in Singapore over the weekend.

Buying parts made in countries where wages are 5 percent of those of Japan would help Nissan's profit margins, which lag behind Toyota and Honda, Bloomberg noted.

Plus, Nissan wants to build a $3,000 car for India. Cheaper parts will be essential to bring that vision to fruition.

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Ford Luxury Brands To Be Valued

Ford reportedly has hired accounting firm KPMG to examine the books of its Premier Automotive Group brands Jaguar and Land Rover so that they can be properly valued when suitors come knocking.

KPMG was brought on to give a “clear picture of Jaguar and Land Rover’s performance as businesses separate from the influence of Ford,” according to the Sunday Times in London.

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Delphi-UAW Deal Paves Way for End of Bankruptcy

By Joseph Szczesny

The agreement on a new labor contract with the United Auto Workers (UAW), announced last Friday, finally puts auto parts supplier Delphi Corp. in a position to emerge from bankruptcy and begin rebuilding with the help from private equity firms.

The UAW agreement was the final piece Delphi needed to sell certain elements of the company that didn't fit into its future plan and pave the way for an investment by a group of private equity firms that have agreed to put up as much as $3.4 billion.

The negotiated settlement also eliminates the threat of a strike that could have crippled Delphi’s largest customer, General Motors. And it allows GM to buy parts from low-cost sources, including China and India.

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Tiger Woods Expands GM Role

If you’ve been watching television, you may have noticed an advertisement in which golfing great Tiger Woods locks himself out of his Buick Enclave and calls General Motors’ OnStar to have the vehicle unlocked by remote.

The ad is an expansion of Woods’ role as pitchman for GM. He’s been a spokesman for the Buick brand since 2000. Now he’ll be in OnStar ads -– but always with a Buick.

Wonder when his new baby will play a role in GM ads. Perfect pitch for GM’s family mobiles.

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Toyota Shareholders Approve First Non-Japanese Board Member

Perfunctory yet historic, Toyota Motor Corp. appointed American Jim Press, the first non-Japanese person, to its board of directors.

Toyota had announced the appointment months ago but shareholders made it official yesterday at the company’s annual meeting in Japan.

The appointment comes as Toyota overtakes General Motors in global sales, its Toyota Division surpasses Ford as the No. 2-selling nameplate in the U.S. last month, and sales and market share are growing at the expense of U.S. makers.

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Nissan: “Worse Than a Year Ago”

Nissan-Renault CEO Carlos Ghosn made a number of announcements to shareholders, a record 2,100 who packed the auditorium, today:

· the company’s first quarter earnings would be “worse than a year ago";

· the Nissan board will forgo its bonus for failing to meet set targets last year;

· the automaker will announce a new mid-term business plan before April of next year;

· and Nissan and Renault, as reported, are study the feasibility of a vehicle to sell for around $3,000 (U.S.) in India.

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Chrysler: Loan for a Day Then Sell Them as Used

Still haunted by last year’s bloated inventory of unsold vehicles, Chrysler is allowing its dealers to call leftover 2006 cars and trucks “loaners” and then sell them a day later, instead of the usual three months, at deep discounts.

The intent of the unusual sales tactic, which went into effect at the end of May as current incentives were about to expire and was revealed by the Detroit News this week, is two-fold:

· boost sales in soft months. The move may well have helped Chrysler achieve its unexpected sales increase of 4.3 percent in May;

· ditch leftover inventory from last year as Chrysler nears the time to unload the 2007 leftovers to make way for 2008 models.

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Study: Union Work Rules Cost Big Three

Union work rules and job classifications at Detroit automakers have resulted in 8,200 assembly jobs that wouldn't be needed if the automakers had the flexibility of Toyota’s U.S. factories, according to study by Detroit turnaround expert, AlixPartners.

"Our analysis of the cost differential between the domestic automakers and Toyota just due to work rules and job classifications further points up just how important this year's labor negotiations are to the Detroit Three," John Hoffecker, managing director of AlixPartners, said in a statement, published in today's Detroit Free Press.

The study also confirms why private equity firms are so interested in auto companies and parts-making companies: they are getting bargains.

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Canada Funds Green Research

The Canadian province of Ontario announced Tuesday the creation of a $650 million (Canadian) automotive industry-specific fund to help spur investments in environmentally friendly cars and car parts.

Ontario’s efforts are significant for a number of reasons:
· the global race is on to become the Motor City of the future in terms of green autos;
· Ontario has as much or more auto manufacturing as the neighboring state of Michigan, headquarters to the Big Three, and recognizes ensuring its future, which clearly is green, is paramount to keeping its auto industry and its jobs;
· the Canadian government’s approach is in stark contrast to that of the U.S., using the carrot vs. the stick approach to prod automakers to go green;
· the approach has the buy-in of the powerful Canadian Auto Workers union.

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Ford Lags in Cost-Cutting

Ford missed its cost-cutting and retail sales targets in May, according to its monthly report card for North America obtained by Dow Jones Newswires.

Ford fell behind its material cost-cutting target through May by 5 percent. Its retail market share, excluding fleet sales to rental car companies, was 10 percent, down 0.7 point from forecast due mainly to weakness in truck sales.

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Google Promotes Hybrids

Internet search company Google is pushing hybrids.

On Monday, Google with Pacific Gas & Electric unveiled their vision of a future in which cars and trucks are partly powered by the company’s electric grid and ones that feed electricity back to the grid.

Google also announced it has pledged about $11 million for people and companies who come up with practical ways to speed the development of plug-in hybrid vehicles.

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Chrysler Product People: Back to Their Drawing Boards

Top Chrysler executives reportedly are outraged and embarrassed by recent product misses, specifically the Chrysler Sebring sedan and Dodge Nitro SUV. The two vehicles have been panned by critics and earned poor reviews by Consumer Reports.

As I wrote in my Inside Story column posted today on Edmunds’ InsideLine.com, Chrysler needs its product and styling mojo back. That should top the to-do list of Chrysler’s new owner, Cerberus Capital Management, when it takes over the auto company sometime next month.

And absolutely, Chrysler’s very top executives should be embarassed by some of what they’ve turned out of late. However, outraged. At whom? At others? No way, guys. The buck stops with you.

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UAW: Chrysler Must Get Health Care Break, Too

United Auto Workers President Ron Gettelfinger told a Detroit radio station Monday that the union must find a way to give Chrysler health-care concessions, similar to those it gave Ford and General Motors two years ago.

"We've been talking to Chrysler quite frequently -- we do need to find a way to fix the problem there now that Chrysler is in a downward mode," Gettelfinger told WJR-AM in Detroit.

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Chrysler Group, Land Rover and Jaguar?

What an interesting concept: a car company that sells Chrysler, Dodge and Jeep models as well as Land Rover sport-utes and Jaguar cars.

It is a possibility, according to the Financial Times in London. The newspaper reported over the weekend that Cerberus Capital Management Group, which is set to close on its purchase of Chrysler next month, has expressed interest in bidding on one or both of the luxury brands put up for sale by Ford.

Another familiar name popped up in regard to Land Rover and Jaguar. Jac Nasser, former Ford CEO, reportedly is heading a study of the brands on behalf of buyout firm One Equity Partners.

And Automotive News reports rumors have former Ford exec, David Thursfield, head of Cerberus’ automotive units, leaving the firm. Thursfield had told the trade publication some time ago that he felt it was inappropriate for him to be involved with a Cerberus-owned Chrysler, given his long tenure at Ford. Maybe the addition of Land Rover and Jaguar will lure him to stay.

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Toyota Launches New Incentives on the Tundra

Still trying to gain some traction with its new pickup truck, Toyota is offering customers nationwide a cash rebate of up to $3,000 or zero-interest financing for 60 months on the 2007 Tundra.

Buyers of the regular cab model receive a $3,000 rebate; buyers of the CrewMax and Double Cab get $2,000. The zero interest financing is available on all models. The incentives expire July 9. In the Los Angeles, where Tundra sales lag those of northern California, the cash rebates are $3,000 for all models through July 31. Special lease rates are also available. A bonus to salespeople in L.A. on Tundras is also in effect through July 2.

Introduced in February, the Tundra has had a tougher go of it than some, including perhaps Toyota, anticipated. The loyalty rates among domestic truck buyers have remained strong, and the full-size pickup truck, in general, has been soft and is expected to continue to be cold throughout the summer, according to Edmunds.com's analysis of consumer purchase intent.

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Toyota Makes Diesel Deal with Isuzu, Report Says

Toyota said Friday it is in talks with Japanese partner truckmaker Isuzu on developing diesel engines, Japan’s business daily Nikkei reports.

Toyota would outsource diesel engine production to Isuzu, famous for its diesel technology. The 200,000-a-year diesel engines would go into Toyota small cars in Europe, the newspaper says.

Toyota owns 5.9 percent of Isuzu. Isuzu formed a capital alliance with Toyota in November after dissolving its tie-up with General Motors in April 2006. Isuzu still supplies diesel engines to GM for its large trucks.

The Toyota-Isuzu deal is yet another indication of increasing interest by Japanese automakers in diesels. Earlier this week, Nikkei reported Honda plans to sell diesel vehicles in the U.S. and Japan by 2009.

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New Ford Taurus Arriving in Showrooms

I was at a Ford dealership Thursday when the first 2008 Ford Taurus arrived at the showroom. The dealership positioned the pearlescent white car right at the door so it could not be missed.

The big question is how will the Five Hundred renamed the Taurus play? Will Taurus be recalled as the blockbuster innovator it was in the 1980s? Or will it be seen as the dying-on-the-vine rental car it became at the end of its life?

The sales staff inside the dealership wonder the same. They are about evenly divided on what the Taurus name stands for. Now they’ll see what customers think.

Advertising for the new Taurus, which tries to reestablish the nameplate and promote the Taurus as the safest full-size car in America, launches Monday.

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More Small Cars for Renault, Ford

French automaker Renault reportedly is considering creating a cheaper version of its no-frills Logan sedan that would reportedly cost $3,000. Ford, meantime, has selected Brazil to build its next-generation Fiesta subcompact, which would be sold in North America as well as its traditional markets.

Both moves illustrate accelerating trends: the emphasis on small, inexpensive vehicles for emerging markets as well as mature ones like North America; and the increased use of low-cost production sources for vehicles.

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GM-Delphi-UAW Near Deal, News Reports Claim

General Motors and bankrupt auto parts maker Delphi Corp. reportedly are near a deal with the United Auto Workers (UAW) union that would provide a cash payout to Delphi workers in exchange for lower hourly wages, according to news reports this morning.

The Detroit News reports the Delphi deal involves offering 4,000 UAW workers a cash payment in return for accepting lower wages that could range from $14 to $18 per hour. Workers could also take the lump sum and accept early retirement or return to GM. GM would fund the program, which could be a done deal in the next week or so, allowing Delphi to emerge from bankruptcy. Delphi filed for bankruptcy in October 2005.

The Delphi dilemma has been a dark cloud of uncertainty hanging over GM’s head -– and the heads of suppliers and customers of Delphi. A deal would provide everyone associated with Delphi relief.

It also sets the stage for this summer’s UAW negotiations with Chrysler, Ford and GM. The Big Three are seeking deep and unprecedented concessions from union workers in pension, health care and labor costs to make them competitive. The Big Three claim they are at a $30-an-hour labor-cost disadvantage against Toyota and Honda.

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Hybrid Sales Increasingly Mirror the Overall Market

As hybrid vehicles increase in volume and proliferate in models, the segment looks increasingly like any other vehicle segment in the marketplace and mirrors the overall market.

Fueled by record gas prices, hybrid sales in May hit an all-time high of 2.9 percent of the U.S. market, or a total of 45,095 vehicles. That makes the segment bigger than some car companies in volume and market share. Sales of every individual hybrid model increased from April to May.

What has changed is the long lines to buy hybrids and the exorbitant price premiums charged for them. An increase in the number of models and increased volumes of those models are providing consumers with more choice and bargaining room at the dealership so the huge price premiums are largely gone.

Instead, transaction prices generally are dropping and incentives overall are climbing, following the trend of the entire market, according to Edmunds.com’s analysis.

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Mulally: Putting His Stamp on Ford

Things seem to be happening at Ford Motor Co. these days, which suggests CEO Alan Mulally is making some moves and putting his stamp on the place.

Though he’s only been on the job since fall, many of us are saying: “Finally.”

Among the latest moves at Ford:

Mulally reportedly is boldly pushing for a 30 percent cut in hourly labor costs in this summer’s national contract talks with the United Auto Workers union in hopes of reaching parity with Asian automakers.

Ford confirmed it has put Land Rover and Jaguar on the block; it already sold Aston Martin in March.

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Japan: A Change of Heart on Diesels

Honda plans to sell diesel vehicles in Japan by 2009, the Nikkei business daily reports today. Honda earlier said it could introduce a diesel in the U.S. the same year.

Last year, Honda said it had developed a new and simple diesel as clean as gasoline cars. The engine could be on a car in the U.S. by 2009, Honda said at the time. Nikkei reports the new diesels, development of which Honda has been speeding up, would first go on the compact CR-V sport-utility and Accord sedan.

Honda’s potential sale of diesels in Japan and the U.S. suggests a shift in strategy by some Japanese automakers.

(Read more...)

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Chinese Vehicles: Slipping Across the Border as Legal Aliens

Ross Perot never envisioned Chinese vehicles slipping across the border legally and duty-free when he championed opposition to the North American Free Trade Agreement because, he insisted, Americans would hear the  “giant sucking sound” of American jobs heading south to Mexico.

Now "the giant sucking sound" could be that of the U.S. drawing Chinese vehicles in from Mexico as a Chinese automaker announced Tuesday. Said automaker will begin exporting pickups and SUVs to Mexico this year as a springboard to break into the U.S. market.

Bill Pollack, chairman of New Jersey-based Chamco Auto, the distributor for the Chinese vehicles, told Reuters he had brokered a deal allowing China's Zhongxing Automobile to export 50,000 vehicles duty-free to Mexico and build a plant in the border city Tijuana to assemble models for export to the United States. Assembling the Zhongxing vehicles in Tijuana will make them Mexican under NAFTA, so they can be exported to the U.S. duty-free, Pollack said.

(Read more...)

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Ford Focus Advertising Account in Play

In a rather unusual move, Ford is putting the advertising account for just one model -– its 2008 Focus -– in play. Ford is requesting that advertising agencies pitch the automaker for the Focus account.

While it is unusual, the Focus sells more vehicles than do some full-line brands, such as Scion and Mini.

Ford is counting heavily on its freshened Focus to capitalize on the sizzling hot small-car market and attract import intenders.

In general, Ford is looking to draw more retail customers to its models, instead of fleets. The Focus is a heavy fleet model, with about 40 percent of its sales going to fleets, according to Edmunds.com's analysis.

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Ford Confirms Considering Options for Jag, Land Rover

After rampant speculation mostly in the British press this past week, Ford decided to publicly confirm today that it is, indeed, intensifying discussions regarding what to do with its Jaguar and Land Rover brands.

A Ford spokesman said the company is working with financial advisers on strategic options for the brands, part of Ford’s Premier Automotive Group (PAG) that also includes Volvo. The company also told legislators in the U.K. Monday that Ford was looking at all options that may or may not include a sale of Land Rover and Jaguar.

(Read more...)

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Ikea Goes Hybrid, Trading Skodas for Civics

Swedish retailer Ikea will convert its entire company car fleet in the U.K. to hybrids as a prelude to a possible company-wide shift to greener vehicles, the Financial Times in London reports.

Ikea’s move is significant on a number of fronts:

*the switch will make Ikea Britain’s first big private sector company to change its entire company car fleet to greener vehicles;

* the move is a significant one for the growing market for alternative-fuel cars, given the home furnishing group’s size and global reach;

* the effort is a coup for Honda, which has seen rival Toyota achieve global dominance in hybrids. The cars will be billboards for Honda as the back of the cars will read: “This is a Hybrid company car from Ikea. Ikea’s business will have an overall positive impact on the environment";

* other companies are sure to follow suit as Ikea racks up image points and economic savings.

(Read more...)

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Ford Selling PAG: Where There’s Smoke, There's Fire

Rumors are running rampant, based on various news reports out of Europe this morning, that Ford is selling its Premier Automotive Group (PAG) or parts of it.

CityAM newspaper in Europe reported today that Jon Moulton, the venture capitalist who tried and failed to buy MG Rover, is preparing a $6-billion bid for Land Rover and Jaguar. Moulton, a partner in Alchemy Partners LLP, denied those reports in a telephone interview with Bloomberg News today.

Meantime, trade journal Automotive News Europe reports today that Ford has been actively seeking buyers for its European luxury brands after negotiations for Italy’s Fiat to buy Land Rover and Jaguar broke off late last month.

Last week, the rumors had BMW considering the purchase of Volvo.

Where there's this kind of smoke, there's bound to be fire.

(Read more...)

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Big Three Discuss Union-Run Health-Care Fund, Bloomberg Reports

General Motors, Ford and Chrysler may propose in this year’s labor talks that the United Auto Workers (UAW) manage a health-care fund financed by the automakers, Bloomberg reports sources as saying today.

The U.S. automakers have discussed such a fund as a possible alternative to eliminate most of a combined $114 billion in retiree health-care obligations, sources told Bloomberg. Under the joint fund proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits.

(Read more...)

Posted by at 7:46 AM under Business, Chrysler, Commentary, Ford, GM, In the Media, News | Comments (0) | digg this | del.icio.us

A Camry, Accord for Every Saturn Showroom

Beginning today, General Motors' Saturn division will have in its showrooms a Toyota Camry and Honda Accord to test- drive against the Saturn Aura.

"This is a statement of confidence,” Scott McLaren, Saturn’s field and sales advertising manager, said in an interview with AutoObserver. “The Aura stands tall as the 2007 North American Car of the Year. We think this is the best light for it to be shown to the consumer.”

The side-by-side-by-side test-drive officially runs through July 31, though Saturn dealers, who are responsible for obtaining the Camry and Honda for their showrooms, can continue it, said McLaren.

Chevrolet is considering a similar program for the fall when it launches the redesigned Malibu. Chevy is contemplating having a Camry, the nation’s best-selling car and the Malibu’s prime competitor, in its showrooms for test-drives against the Malibu.

(Read more...)

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What's Hot, What's Not This Summer

Small cars are hot and getting hotter this summer. Big trucks as well as large, midsize and luxury SUVs are not. And the Buick Enclave looks like another winner for General Motors, according to Edmunds.com's analysis of consumer intent.

Consumer intent is determined by what vehicles consumers are shopping for right now on Edmunds.com and what they likely will buy in the next 30 to 90 days. That demand -– or lack thereof -– has a direct correlation to prices and incentives.

For consumers in the market for small cars, buy now because the prices won’t be better and might even go higher. For large truck and SUV shoppers, hold off; bigger incentives are on the way, says Edmunds.com CEO Jeremy Anwyl yesterday in a presentation to the Society of Automotive Analysts.

Here’s a rundown by category and individual models of what’s hot and unlikely to see higher incentives or increased discounting so now is as good time to buy as any. Also following is a listing of what categories and individuals aren't so hot, indicating buyers should hold off their purchases for richer incentives and deeper discounting:

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Posted by at 11:35 AM under Analysis, Chrysler, Companies, Featured, Ford, GM, News, Toyota | Comments (6) | digg this | del.icio.us

Edmunds.com Unveils Information To Help Consumers Time Their Vehicle Purchases

The question car shoppers ask after "What should I buy?" and "How much should I pay?" is "When do I buy?"

Edmunds.com already helps with what to buy and what to pay. Now, Edmunds.com is adding a feature to help consumers time their vehicle purchases to take advantage of the best pricing and richest incentives.

In a presentation to the Society of Automotive Analysts in Detroit this week, Edmunds CEO Jeremy Anwyl told the gathering that Edmunds.com analysts study consumer intent, which indicates the demand or lack of demand for a vehicle, to predict a month or so in advance whether an auto manufacturer will add incentives or if dealers will be discounting.

Conversely, Edmunds.com can predict what vehicle is hot, based on consumer intent, and subsequently won’t require incentives or discounting in the near future, making now a better time to buy than later.

The Edmunds.com will add the buy/wait designation later this year, Anwyl told the SAA.

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J.D Power: Ford Is a Winner

By Joe Szczesny

Ford Motor Co. managed something of an upset Wednesday as J.D. Power & Associates released the results of its closely watched Initial Quality Study (IQS) of 2007 models. Neal Oddes, J.D. Power’s director of product research and analysis, said the results of the quality survey contained very good news for Ford.

“Fourteen Ford Motor Company models placed in the top three of their respective segments — an achievement unmatched by any other corporation this year — which is a testament to the improvement in quality for Ford Motor Company vehicle models and plants. In addition, their Lincoln nameplate, which receives two segment awards, improves considerably to rank 3rd in 2007, from 12th in 2006,” Oddes said.

“Ford had some great launches,” he added.

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Smart: 20,000 Orders

DaimlerChrysler AG's distributor for the Smart minicar has almost 20,000 paid U.S. "reservations" for the two-seaters, Smart USA President Dave Schembri said.

The Smart Fortwos go on sale in January, will sell for less than $12,000 for the base model to about $17,000 for a convertible.

Smart USA, owned by United Auto Group Inc., began accepting the $99 fees in March.

Posted by at 6:40 AM under Business, Companies, News | Comments (0) | digg this | del.icio.us

GM’s Wagoner: Making Progress

General Motors CEO Rick Wagoner told shareholders at Tuesday’s annual meeting that the automaker is making progress in its turnaround effort.

Wagoner said GM, which lost more than $12 billion in the past two years, has made "major progress" in its restructuring. GM has cut more than 34,000 jobs and closed 12 plants. Wagoner said those changes have slashed GM’s structural costs by $6.8 billion in 2006. GM is on track to reach its target of cutting those costs by an additional $2.2 billion this year, he said.

Wagoner said this year's goals include closing a deal for Delphi Corp. to emerge from bankruptcy and cutting GM’s health-care costs,  "a staggering $4.8 billion" in 2006, he said. He added that GM would be looking to the upcoming UAW negotiations to increase its cost-competitiveness.

Posted by at 6:37 AM under Business, GM, News | Comments (0) | digg this | del.icio.us

Chevy Volt Moves Another Step Closer to Reality

General Motors has just awarded two development contracts for the lithium ion battery in the E-flex propulsion system to be used in its Chevrolet Volt plug-in hybrid.

A reliable battery, the biggest challenge in developing electric vehicles, could mean the Volt would be production-ready by 2010, GM has said.

The battery proposals were awarded to one small company and a giant, both offering completely different solutions, GM said.

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Posted by at 6:32 AM under Business, GM, News, Technology | Comments (0) | digg this | del.icio.us

Carbon Fiber Prices Skyrocket; Supplies Short

In another sign of these fuel-economy sensitive times, USA Today reports today that prices of carbon fiber, used in cars but also in other goods from hockey sticks to jetliners, are shooting up and supplies are tight.

Carbon fiber, a woven synthetic of hard plastic, is in big demand because it is strong but lightweight, which helps fuel economy in cars and airliners.

Always considered expensive and used only on pricier cars, carbon fiber prices have jumped to $20 a pound from only $5 pounds three or four years ago, the paper reports.

Specialty sports carmaker Saleen has been forced to raise the price of its supercar. Car accessory companies have had to seek alternative grades and sources for carbon fiber.

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Posted by at 6:28 AM under Business, Technology | Comments (0) | digg this | del.icio.us

Fortune magazine: Cerberus Signs on Ex-Chrysler Design Chief Tom Gale

Former Chrysler Design Chief Tom Gale, reportedly has signed on as one of the many expert advisors by Cerberus Capital Management that is buying Chrysler, according to a profile on Cerberus in the June 18 issue of Fortune magazine.

Adding Gale to the growing roster of automotive experts suggests Cerberus is serious about turning Chrysler around and gets what needs to be done: get Chrysler's styling mojo back!

One of Chrysler’s major problems of late –- which under Gale had been its major strength –- is styling.  Chrysler hasn't had a major design hit since the Chrysler 300, now long in the tooth.

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Posted by at 5:01 AM under Chrysler, Commentary, Featured, Personalities, Rumors | Comments (4) | digg this | del.icio.us

Schrempp Poised To Make a Bundle on DCX Divorce

No one can ever accuse former DaimlerChrysler CEO Juergen Schrempp of not knowing how to make a buck. The mastermind of the Daimler and Chrysler "merger"€ made a bundle on the marriage and apparently will make another killing on the divorce.

According to a report today in the German newspaper Handelsblatt, Schrempp could earn the equivalent of $134 million from the sale of Chrysler Group to Cerberus Capital Management, a deal expected to close in July.

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Posted by at 7:22 AM under Chrysler, News, Personalities | Comments (1) | digg this | del.icio.us

Study: Suppliers Like Toyota, Honda Best

As has been the case for years, automotive suppliers like doing business with Toyota and Honda but their relationships with General Motors are improving, according to a new report.

Toyota ranked first, followed by Honda, Nissan, Chrysler, GM and Ford, respectively, in their relationships with suppliers, according to the study by Planning Perspectives Inc., a consulting firm in Birmingham, Michigan, released today.

GM wins for most improved. It had the most dramatic year-over-year increase in the 15 years of the study, said company President and Chief Executive John W. Henke, Jr. GM has held last place for the past 15 years; now it ranks second to last above Ford. Henke credits the improvement with a program instituted by GM in 2005 to enhance supplier relations.

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Posted by at 7:12 AM under Analysis, Chrysler, Ford, GM, Toyota | Comments (0) | digg this | del.icio.us

A BMW Purchase of Volvo? More Questions Than Answers

By Mark Bursa

Reports that Ford might sell Volvo to BMW have certainly raised eyebrows in the auto industry. After all,  it’s only a few months ago that Ford told Renault in no uncertain terms that its Swedish luxury brand was not for sale.

Furthermore, Ford claims Volvo is profitable, and its role within the company’s Premier Auto Group (PAG) has become more sharply focused in the wake of Ford’s ongoing downsizing of Jaguar into a Porsche-sized prestige-and-performance car brand.

This leaves Volvo as Ford’s European luxury brand –- a direct rival to BMW and Audi. Why would Ford suddenly decide to exit this sector and surrender to a rival a brand whose star is on the rise?

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Posted by at 6:38 AM under Analysis, Commentary, Companies, Featured, Ford | Comments (2) | digg this | del.icio.us

Toyota Surpassed Ford in May Sales

For only the fifth time in history, Toyota surpassed Ford in monthly sales last month. In May, Toyota outsold Ford 10,870 vehicles, according to Edmunds.com's analysis.

Toyota outsold Ford for the first time in July 2006, beat Ford again in November 2006 (by the widest margin of any month), December 2006 and January 2007.

Month/year                      Toyota's Margin of Vehicle Sales over Ford
July 2006                            5,473
November 2006                 20,544
December 2006                  3,552
January 2007                    14,605
May 2007                          10,870

Posted by at 6:16 AM under Analysis, Ford, Toyota | Comments (0) | digg this | del.icio.us

Marketing to Women: Soccer Moms, Yoga Moms, Twinkie Moms

My son and I were piling into the Volkswagen Rabbit test car in   front of the 7-Eleven, loaded up with our favorite after-school snacks – frozen Cokes, Twinkies and Cheetos – when my teen noticed the woman passing in front of our car with two small children in tow.

“That’s a yoga mom,” he said matter-of-factly. I’d never heard the term before, but it rolled off his tongue as if it were an everyday label. And I knew what he meant.

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Posted by at 5:20 PM under Analysis, Chrysler, Commentary, Featured, Ford, GM, Toyota | Comments (1) | digg this | del.icio.us

Edmunds: Incentives Edging Higher

Edmunds.com estimated today that the average automotive manufacturer incentive in the U.S. was $2,497 per vehicle sold in May 2007, up $44, or 1.8 percent, from April 2007, and up $123, or 5.18 percent, from May 2006. Honda, in fact, hit a record for incentives.

"The summer incentives hike has started," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com. In previous months, we have seen year-over-year declines in incentives spending, but this month the trend reversed."

As the summer wears on, incentives will grow even bigger, Toprak predicts.

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Posted by at 9:35 AM under Analysis, Companies, Ford, GM, Toyota | Comments (0) | digg this | del.icio.us