August 2007
Auto Sales Decline and Production Cuts Follow, Edmunds.com Forecast Says
By Michelle Krebs August 30, 2007Not surprisingly, based on the latest dreary economic news, August vehicle sales will be down, according to Edmunds.comâs forecast. Automakers report sales Tuesday. Industry vehicle sales, including retail and fleet, are expected to be 1.42 million units, a 4.5 percent decrease from August 2006 and an 8.7 percent increase from July 2007. Big Three share is predicted to be below 50 percent for the second consecutive month. "Early in August, sales were dismal," observed Jesse Toprak, Edmunds' executive directory of Industry Analysis. "To generate showroom traffic, most automakers introduced incentives programs midway through the month," added Toprak. âThat effort was more
Indian-Owned Jag, Land Rover?
By Michelle Krebs August 30, 2007It is looking increasingly likely that an automaker from India could become the new owner of the now Ford-owned Jaguar and Land Rover. Two Indian automakers, Tata Motors Ltd., and Mahindra & Mahindra Ltd., are among the bidders for Jaguar and Land Rover, which Ford hopes to sell as a package. And they may well be the front-runners among the bidders. more
Saab: GM Starting âTo Get Itâ on Niche Brand Status
By Michelle Krebs August 30, 2007By Bill Visnic Saying a planned new compact car coming in a few years is a “terrific opportunity for us,†Saab Automobile USA executives also claim owner General Motors is beginning to understand how to manage the niche brand -– just as the future of small-volume, premium brands such as Saab appears to be reaching a crucial juncture. At a media event for the redesigned 2008 9-3, Knut Simonsson, executive director, Saab Global Sales and Marketing, tells AutoObserver that because of the increasing “globalization†of virtually everything –- common talk now is dominated by terms such as “global business†and more
Chrysler: Whole Lotta Shaking Up Going On
By Michelle Krebs August 29, 2007Cerberus Capital Management has owned Chrysler barely over three weeks with CEO Bob Nardelli at the helm during that time. Yet, thereâs already a whole lotta shaking up going on at the auto company. Chrysler made a number of significant moves this week: * proposed plans to shed a couple of non-core operations –- Chrysler Transport and all or parts of Mopar; * reshuffled the manufacturing management ranks, with some veterans taking retirement; *appointed an up-and-comer to specifically be responsible for executing (and possibly accelerating and deepening?) the automaker’s recovery plan; *held management meetings at which Nardelli shared his vision more
GM Gives Dealers Cash To Move the Metal
By Michelle Krebs August 28, 2007General Motors, in an effort to stop its sales slide and give model year-end sales a boost, is giving dealers of some of its brands cash awards according to an internal GM memo obtained by Bloomberg News. GM will pay dealers $250 for each vehicle sale made from August 23 through the end of the month, according to the memo from Jim Bunnell, general manager of GM's Buick, Pontiac and GMC divisions. Summer sales, so far, have been lackluster industrywide, and August will show no recovery, according to Edmunds.com, which releases its forecast for August sales on Thursday. "After some more
Toyota: Not Everything Is Rosy
By Michelle Krebs August 28, 2007A group of Kentucky community activists, including labor and church leaders, are gathering outside Toyota's biggest U.S. assembly plant today to deliver recommendations to management, including limits on the use of lower-paid temporary workers, to improve working conditions at the factory, according to the Detroit News. The appearance by the group, Kentucky Workersâ Rights Board, will be followed by a news conference. The United Auto Workers union is trying to organize foreign-owned plants in the United States to offset the drop in its membership rolls at Big Three plants. Toyota is its prime target, the newspaper reports. However, the UAW more
Isuzu, Toyota Cooperate on Green Diesels
By Michelle Krebs August 28, 2007Toyota and Isuzu announced Monday they will work together to develop a system to make diesel engine exhaust cleaner. Isuzu, an expert in diesel technology, will work with Toyotaâs truck partner, Hino Motors on the green diesels. more
CAFE Bill Gaining Support , Dingell Says
By Michelle Krebs August 28, 2007House Energy and Commerce Committee Chairman John Dingell, D-Dearborn, Michigan, told reporters Monday that 163 House lawmakers have signed on as co-sponsors of a bill to require new cars to use fuel at a rate of from 32 to 35 miles a gallon on average, starting in 2022, less stringent than a plan approved by the Senate. Dingell pointed out that means lawmakers are adding their names to the measure at a rate of more than one a day. more
Guest Commentary: Why the West Need Not Fear China
By Michelle Krebs August 28, 2007By Richard Feast The People’s Republic of China has set its auto industry the task of destroying the rest of the world’s automakers. We know this is true because every newspaper, magazine, TV channel, Web site and blog keeps sounding the alarm these days. “Beware! The Chinese auto industry is coming,†is the dire warning.Zap – there goes General Motors. Bang – that’s Toyota finished. Blam – good-bye, Mercedes. This is PlayStation stuff, only less plausible. It is time for a more level-headed assessment of the potential of China’s auto industry beyond the country’s borders. In reality, China will have more
John Edwards: Fellow Americans, Sacrifice Your SUVs
By Michelle Krebs August 30, 2007Democratic Presidential Candidate John Edwards is calling for Americans to make a sacrifice for the environment by getting out of their SUVs and into more fuel-efficient vehicles. "I think Americans are actually willing to sacrifice," Edwards told the International Association of Machinists and Aerospace Workers Wednesday. "One of the things they should be asked to do is drive more fuel-efficient vehicles." It didn’t take long for one automaker to respond. more