Used Car Prices Up - Except Recalled Toyotas'
Used car prices are up about two percent from last month, but the prices of used Toyotas affected by the recalls are down about 2.5 percent, according to Edmunds.com.
"Many used car buyers are turned off by the negative publicity surrounding the Toyota recall, so prices of those vehicles are pacing at about 4.5 percent below the market," said Edmunds.com Analyst Joe Spina.
(Read more...)
Posted by Michelle Krebs at 7:22 AM under Analysis , Companies , Toyota | Comments (0) | digg this | del.icio.us
Can Midsize Pickups Haul Themselves Back to Sales Respectability?
The auto sector's ongoing malaise has battered even the healthiest of automakers, models 
and market segments. But probably no segment has endured a deeper or more protracted decay than midsize pickup trucks.
It started long prior to the nation's late-2008 economic collapse: the midsize pickup segment has been slipping precipitously for more than a decade - and now the industry's sales collapse has brought the midsize pickup market to the brink.
If that sounds a little dramatic, know that combined sales of the segment's seven major players - Dodge Dakota, Ford Ranger, Chevrolet Colorado/GMC Canyon, Honda Ridgeline, Nissan Frontier and Toyota Motor Corp.'s Tacoma - were 763,553 in the year 2000. Last year, those same seven players combined for 265,513 sales. Two-thirds of the segment's volume blown away in a decade.
(Read more...)
Posted by Michelle Krebs at 3:58 AM under Analysis , Companies , Featured | Comments (2) | digg this | del.icio.us
AutoObserver Reader Favorites: Honda Odyssey Problems and Toyota
AutoObserver's lead item posted on Wednesday that chronicled Honda Odyssey transmission problems and owners' inconsistent response as discussed on Edmunds.com's forums was the best-read item on the site this week.
And, not surprisingly, items related to Toyota's continued recall and quality woes ranked among AutoObserver's best-read features this week.
(Read more...)
Posted by Michelle Krebs at 5:00 AM under Analysis , GM , Toyota | Comments (0) | digg this | del.icio.us
Incentives Buoy Sales to 12.5 Million SAAR in Early March, Edmunds.com Reports
Hefty incentives offered by Toyota to rejuvenate sales and market share -- and copied by some competitors - sent U.S. industry sales soaring in the early going of March, according to Edmunds.com's forecast.
In the first eight days of March, the Seasonally Adjusted Annual Rate (SAAR) of U.S. sales climbed to 12.5 million units, the highest level since September 2008, excluding August 2009 when Cash for Clunkers was at fever pitch.
"Generous incentives from Toyota and General Motors have stimulated this boom," Edmunds.com Senior Analyst Ray Zhou, PhD. "But we anticipate that it will cool off, and that the month will end closer to 11 million or so."
(Read more...)
Posted by Michelle Krebs at 8:43 AM under Analysis , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
No Big Wins for Automotive Advertisers at Oscars
And the Oscar for the best advertising performance during the Academy Awards show 
goes to -- Hyundai.
But barely.
Indeed, Hyundai brand and, specifically, the Hyundai Sonata got the most lift from Sunday night's Academy Awards presentation, based on an analysis of shopping consideration by consumers visiting Edmunds.com.
However, though the viewing audience for the show was the biggest in five years, advertising on the Oscars proved not much of a win for automotive marketers.
In general, Edmunds.com saw little significant impact on shopping consideration from any of the automotive ads that aired on the Academy Awards. In fact, auto advertising performance on the show was pathetic compared with the Super Bowl.
(Read more...)
Posted by Michelle Krebs at 12:25 PM under Analysis , Featured , In the Media | Comments (0) | digg this | del.icio.us
AutoObserver Reader Favorites: Toyota Complaints and Sales
Reader traffic on AutoObserver soared this past week, with Toyota stories being the most read.
An Edmunds.com analysis of the National Highway Traffic Safety Administration's (NHTSA) databases that illustrated Toyota's lead in unintended acceleration complaints filed by consumers before and after its recent recalls was this week's most-read post. The post had double the normal traffic of the usual weekly top-read AutoObserver post.
It was followed closely by the Edmunds.com forecast of the impact of Toyota's woes on its February sales and market share.
(Read more...)
Posted by Michelle Krebs at 6:46 AM under Analysis , Companies , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Toyota Purchase Intent Soars After Incentives Announced, Edmunds.com Reports
Toyota's zero-percent financing and special lease deals generated nearly a 40-percent spike 
in purchase intent by visitors to Edmunds.com.
In January, Toyota's purchase intent averaged just over 13 percent and then fell to a 9.7-percent low as a result of the recall announcements.
On March 1, Toyota purchase intent had recovered to 13 percent. A day later, when the incentives program was announced, Toyota purchase intent soared to 18 percent -- a 14-month high.
(Read more...)
Posted by Michelle Krebs at 6:28 AM under Analysis , Featured , Toyota | Comments (5) | digg this | del.icio.us
Ford, Porsche Make Enviro-Muscle Statements
The composting-saves-the-world neighbors won't be able to sneer (as much) at the gas-sucking muscle car in the driveway after Ford Motor Co. crowed today that a Mustang sporting the nameplate's new 3.7-liter dual-cam V6 churns out 305 horsepower - yet was just certified by the Environmental Protection Agency as earning a highway fuel-economy rating of 31 miles per gallon.
Ford says the car is history's first example of a production model that exceeds 300 hp yet also tops 30 mpg.
The number actually beat Ford's earlier expectations for 30 mpg from the V6 Mustang, the number the company was proudly promoting in January at the Detroit auto show.
(Read more...)
Posted by Bill Visnic at 10:55 AM under Analysis , Business , Ford , News , Technology | Comments (0) | digg this | del.icio.us
Notable Numbers from February Sales
The story that Ford Motor Co. outsold General Motors Co. (by 471 units) for the first month since August, 1998, has made the rounds.
But February's sales charts served up some other noteworthy numbers. Here is a selection:
Ford and GM's totals were No.1 and No. 2 in the market, and figures for the "Big 7" automakers were rounded out, in descending order, by Toyota Motor Sales USA at 100,027; Chrysler Group LLC at 84,449; Honda Motor America at 80,671; Nissan Motor Co. Ltd. at 70,189 and the Hyundai Group (Hyundai and Kia brands combined) at 58,056.
(Read more...)
Posted by Bill Visnic at 3:05 AM under Analysis , Business , Chrysler , Ford , GM , Hyundai, Kia , Mazda , News , Toyota | Comments (6) | digg this | del.icio.us
Lux and Little the Focus at This Week's Geneva Motor Show
There aren't that many true concept vehicles slated for the Geneva motor show this week. The few that are unveiled are bookended by a heavy presence in two sectors: small cars and luxury models.
Most of the attention in Geneva is concentrated on the small-car sector, thanks to continuing environmental pressure on both sides of the Atlantic. Europe continues to press with carbon-dioxide reduction measures, while financially battered U.S. customers evidence a downsizing mindset and the nation glides inexorably closer to a 2016 deadline for all automaker fleets to average 35 miles per gallon.
So while the Geneva show is mostly about what makes sense for an auto sector evolving toward less dependence on fossil fuels, the makers of luxury performance cars continue to respond with their own individual visions of how that future will be addressed. In many senses, it's becoming evident the makers of premium vehicles may in fact have more of an opportunity to capitalize -- as customers able to spend but unwilling to compromise may represent the best market to accept pricey new fuel-saving innovations.
The possibilities for synergy between the environmental movement and the luxury auto market may be almost limitless: even Ferrari, after all, is showing a hybrid-electric concept at this week's Geneva show.
(Read more...)
Posted by Bill Visnic at 12:00 PM under Analysis , Business , Companies , Featured , Ford , News , Technology , Volkswagen, Audi | Comments (0) | digg this | del.icio.us
Question Congress' Hearings Won't Answer: Are Cars Safe?
Despite all the questions asked during Congressional hearings on Toyota's recalls this week, 
the nagging question that won't -- and maybe can't -- be answered is: are today's cars safe, at least from accelerating of their own volition?
Toyota happened to be the company at the witness table for vehicles that -- for one reason or another, identified or not -- have the possibility of unintended acceleration, potentially endangering not only Toyota drivers but drivers, passengers and pedestrians around them.
Yet, while Toyota is under the microscope and, in fact, has more reported complaints than its competitors, unintended acceleration is an industry-wide problem that requires industry and government attention.
"The current emphasis in the hearings seems to be about who learned about what/when and they are skirting the core issue of what's really causing unintended acceleration in the first place. With this being an industry issue, what's called for is an unprecedented, cross-company and government safety agency collaboration to pool data and resources, getting to the bottom of the problem once and for all," said Edmunds.com CEO Jeremy Anwyl.
(Read more...)
Posted by Michelle Krebs at 2:46 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (2) | digg this | del.icio.us
NHTSA on the Hot Seat: What is Standard Operating Procedure?
At Congressional hearings this week, federal administrators responsible for automotive 
safety will be on the hot seat as much as Toyota executives will be.
Amid accusations of foot dragging and influence pedaling regarding the National Highway Traffic Safety Administration (NHTSA), Toyota and their handling of consumer complaints and recalls, safety administrators likely will be grilled about what is standard operating procedure in dealing with consumers' complaints. The overriding question at the hearings will be was NHTSA lax in holding Toyota's feet to the fire on vehicle problems.
Edmunds.com's analysis of NHTSA databases reveals little consistency in dealing with consumer complaints. The analysis shows no clear pattern in terms of the number of consumer complaints that trigger an agency investigation. The length of time it takes from an investigation to a recall being issued varies widely.
Whether NHTSA's process works properly and quickly enough and whether it is transparent enough is highly questionable. Ultimately, this week's Congressional hearings may be as revealing in uncovering defects at NHTSA as defects in Toyotas.
(Read more...)
Posted by Michelle Krebs at 4:10 AM under Analysis , Featured , GM , Toyota | Comments (5) | digg this | del.icio.us
Dealer Association Forecasts 11.9 Million Vehicle Sales for 2010
U.S. light-vehicle sales will reach just short of 12 million units in 2010 as credit becomes more available and consumer confidence improves with rising employment, said Paul Taylor, chief economist for the National Automobile Dealers Association.
"Industry sales will increase to 11.9 million light vehicles for 2010," Taylor said at the association's convention in Orlando this weekend.
(Read more...)
Posted by Michelle Krebs at 9:22 AM under Analysis , Business , Companies | Comments (0) | digg this | del.icio.us
Toyota Prices Take Some Hit, Edmunds.com Reports
Recalls, stop-sales orders and the accompanying bad press have put downward pressure on 
prices of new and used Toyota vehicles, but the hit is not as huge as might be expected, according to an analysis by Edmunds.com.
New vehicles specifically covered by Toyota recalls are selling for an average of 0.5 percent - or $150 per vehicle - less than earlier this year, according to the most recent adjustments made to Edmunds.com's True Market Value pricing.
Used Toyota vehicles covered by recalls are selling for about 3 percent less than earlier this year, according to Edmunds.com. However, dealers --- either being cautious or opportunistic -- are paying about 6 percent less for Toyota trade-ins than they did before the recalls were announced.
(Read more...)
Posted by Michelle Krebs at 5:51 AM under Analysis , News , Technology , Toyota | Comments (1) | digg this | del.icio.us
Ford Set to Overtake Beleaguered Toyota in 2010, Edmunds.com Predicts
Toyota's mounting product quality and public image woes have prompted Edmunds.com to 
revamp its sales forecast for 2010, lowering Toyota's share and raising the share of other automakers.
Edmunds.com's most current forecast of 11.5 million vehicle sales for 2010 has Toyota losing market share that will be picked up by Ford, General Motors and Honda.
Ford's sales gain, in fact, likely will push the American automaker to the No. 2 sales spot in 
the United States, ahead of Toyota, Edmunds.com predicts. Toyota took the No. 2 position from Ford in 2007 and has held it ever since.
"It now seems clear that Ford will overtake Toyota to reclaim its position as the second biggest automaker in the U.S. market," Edmunds.com Senior Analyst Jessica Caldwell said at the Chicago auto show.
(Read more...)
Posted by Michelle Krebs at 4:32 AM under Analysis , Featured , Ford , GM , Toyota | Comments (9) | digg this | del.icio.us
Toyota Ranks 17th for NHTSA Customer Complaints, Edmunds.com Analysis Shows
No automaker should gloat over Toyota's quality woes because no automaker is free and clear on the issue of customer complaints.
In fact, an analysis by Edmunds.com of the National Highway Traffic Safety Administration (NHTSA) complaint database shows Toyota ranks 17th among automakers in the number of complaints per vehicle sold over roughly the past decade.
According to the database, which is comprised of input from individuals and is not checked for accuracy by NHTSA, Toyota was the subject of 9.1 percent of the complaints from 2001 through 2010. During this period, the company sold 13.5 percent of all new cars in the United States.
Land Rover ranks first among automakers, with 0.6 percent of the complaints compared to only 0.1 percent market share from 2001 through 2010.
The following chart sets forth the results for all automakers in this research:
(Read more...)
Posted by Michelle Krebs at 9:02 AM under Analysis , Toyota | Comments (2) | digg this | del.icio.us
Big Boost for Hyundai, Audi From Super Bowl Ads
Commercials during the Super Bowl are the Gucci handbags of the advertising world: everyone knows they're expensive -- but do you even remotely get your money's worth?
A couple of automakers just might have.
Although Edmunds.com, parent of AutoObserver.com, can't answer for other industries, Edmunds data indicate the big-dollar Super Bowl commercials by Hyundai Motor America Inc. and Audi of America Inc. seem to have connected. Both companies enjoyed outsized spikes in consideration on Sunday after their ads appeared during what is called the most-watched single sporting event on the planet.
(Read more...)
Posted by Michelle Krebs at 1:25 PM under Analysis , Chrysler , Companies , Featured | Comments (0) | digg this | del.icio.us
GM's Cadillac, Corvette Had Tough Year in U.K.
If sales in the United Kingdom are anything to judge by (and we're not saying they 
necessarily are), it's a good thing General Motors Co. hung on to its Opel and Vauxhall European brands.
The U.K.'s top sellers for 2009 recently were presented by the country's Car auto-enthusiasts magazine, and Opel's Corsa was the country's No. 3 seller (84,478 units) and the Opel Astra followed at No. 4 with 67,729 sales. The Opel Insignia pulled in to be the U.K.'s ninth best-selling car, with 36,040 finding customers.
(Read more...)
Posted by Michelle Krebs at 4:36 AM under Analysis | Comments (2) | digg this | del.icio.us
January Whacks Toyota, But Sales Firm for Other Makers
The U.S. auto market in January continued its recent strengthening trend, with overall sales just shy of 700,000 vehicles (698,456 vehicles) for the month rising by nearly 7 percent compared with 654,757 vehicles in a very weak January 2009. The seasonally adjusted light-vehicle sales rate ticked up to about 10.76 million units versus last year's 9.59 million - and roughly in line with the firming picture of recent months.
Toyota was clearly the biggest loser in January due to its recalls and stop-sales order on eight of its bestsellers. Yet, January's results varied widely for its top competitors that may have tried to take advantage of Toyota's problems with special incentives meant to lure disaffected Toyota customers in particular.
(Read more...)
Posted by Michelle Krebs at 2:17 PM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Toyota Already Recovering from Recall, Edmunds.com Data Shows
Since announcing the fix for its sticky pedals Monday, Toyota already is experiencing a dramatic rise in purchase intent among shoppers on Edmunds.com's Web site.
"Toyota purchase intent fell from 13.9 percent of Edmunds.com car shoppers to 9.7 percent during the height of the recall frenzy," said Edmunds.com Senior Analyst David Tompkins, PhD. "Toyota purchase intent is back to 11.8 percent and seems to be climbing steadily."
(Read more...)
Posted by Michelle Krebs at 12:58 PM under Analysis , Featured , Toyota | Comments (1) | digg this | del.icio.us
Despite Toyota-Fighting Promotions, January Incentives Dip, Edmunds.com Reports
Incentives paid by manufacturers in January dipped below year-ago and December levels despite last-minute promotions by Toyota's competitors to capitalize on the automaker's recall woes.
The average incentive was $2,382 per vehicle sold in January 2010, down $160, or 6.3 percent, from December 2009, and down $326, or 12.0 percent, from January 2009, Edmunds.com estimates.
"January incentives were not particularly generous or compelling - until some automakers began trying to conquest unsettled Toyota owners and shoppers late in the month," stated Jessica Caldwell, director of Industry Analysis for Edmunds.com. "January sales numbers are up from a year ago largely because of fleet sales."
(Read more...)
Posted by Michelle Krebs at 9:41 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Toyota Sales Socked with 75-Percent Drop, Edmunds.com Forecasts
Toyota-brand sales will drop 75 percent during the sales suspension of its eight best-selling models and some potential Lexus and Scion sales will be collateral damage.
"As long as sales of recalled Toyota models are suspended, Toyota will suffer about a 75 percent hit in sales," said Edmunds.com Senior Analyst Ray Zhou, PhD.
Even though no Lexus of Scion models are covered under the sticky gas pedal recall and sales suspension, their sales may be down as well.
"During this period, Scion may be down about 20 percent and Lexus may be down about 10 percent because of damage to the Toyota corporate brand," added Zhou.
(Read more...)
Posted by Michelle Krebs at 1:55 PM under Analysis , Featured , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
January Car Sales: Toyota Share Plummets to Lowest Since 2006
Toyota's market share in January is expected to plummet to lows not seen since 2006, because the automaker issued a stop-selling order on eight models representing more than half of the automaker's U.S. sales this week.
Toyota's share is likely to drop to 14.7 percent of U.S. sales in January, Edmunds.com forecasts; the last time it was that low was March 2006 when its share was 14.2 percent.
In contrast, Ford is expected to have its best month for market share since May 2006. Edmunds.com forecasts Ford's share at 18.0 percent in January. The last time it was that high was in May 2006 at 18.4 percent.
In total, U.S. sales in January, buoyed by hefty hikes in fleet sales and offset by lower retail sales, will total of 701,000 vehicles, according to Edmunds.com's forecast. That would put the Seasonally Adjusted Annualized Rate (SAAR) of car sales at 10.7 million vehicles, down from 11.2 million December but up from 9.6 million in January 2009.
(Read more...)
Posted by Michelle Krebs at 12:57 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Sports Cars Grab Attention of AutoObserver Readers
The best-read post on AutoObserver this week - by a long shot - was an item on Chevrolet
Corvette sales plummeting to a 50-year low in 2009.
As sports car sales in general nosedived, Chevrolet sold only 13,934 Corvettes, the worst sales for the nameplate since 1961 when the car was still in its first generation.
(Read more...)
Posted by Michelle Krebs at 6:55 AM under Analysis , Chrysler , Companies , GM | Comments (0) | digg this | del.icio.us
GM Prices Buick Regal; Losing Money on Every One?
General Motors announced an attractive price on its 2011 Buick Regal, which is generating a lot of positive buzz. But the automaker likely will lose money or at least not make much on every one it sells in the early going.
The Regal, which begins arriving in dealerships in spring, will start at just under $27,000. But pricing the Regal was tricky business.
The new Regal is based on the German-made Opel Insignia, and the earliest versions to be sold in the U.S. will be made in Europe. That means the dollar-euro exchange rate is highly unfavorable. The situation changes in the first quarter of 2011 when Regal production shifts from Russelsheim, Germany, to GM's plant in Oshawa, Ontario, Canada.
(Read more...)
Posted by Michelle Krebs at 10:43 AM under Analysis , Business , GM | Comments (5) | digg this | del.icio.us
January Car Sales Coming in Expectedly Low, Edmunds.com Reports
With only 11 days to go in the month, January car sales are coming in low, as expected, after December's brisk pace due to holiday specials.
Edmunds.com estimates January sales, so far, are at a Seasonally Adjusted Annual Rate (SAAR) of about 10.5 million vehicles. That's significantly better than the 9.1 million rate of sales in the early months of 2009 and 2009 full-year sales of 10.4 million vehicles. But some industry observers may find sales disappointing after December's 11.2-million pace.
But Edmunds.com predicted a weaker January because January typically is weak for sales and this year, in particular, December deals caused some pull-head of sales. Nevertheless, Edmunds.com forecasts 2010 sales remain on track to hit 11.5 million units.
(Read more...)
Posted by Michelle Krebs at 4:21 AM under Analysis | Comments (0) | digg this | del.icio.us
Mercedes-Benz E-Class Leads Daimler Out of Profit Doldrums
Strong sales of the newest generation of the Mercedes-Benz E-Class in the fourth quarter 
last year will boost Daimler's earnings for the quarter and signal an earnings recovery for the German automaker, an analyst in Europe predicts.
"The sales improvement at the Mercedes-Benz brand throughout last year was attributable to a rapidly improving model momentum, reflecting the roll-out of the new E-Class family," Creative Global Investments analyst Sabine Blumel told Just-Auto in Europe.
(Read more...)
Posted by Michelle Krebs at 9:55 AM under Analysis , Business | Comments (0) | digg this | del.icio.us
Detroit Auto Show Debuts Generate Edmunds.com Buzz
The North American International Auto Show in Detroit just opened its doors to the public on Saturday, but already some vehicles introduced during the previous week's press preview have been generating substantial buzz on Edmunds.com.
Vehicles driving the biggest increases in Edmunds.com's site traffic are: Audi A8; Buick Regal GS concept; Ford Focus; Ford Transit Connect; and Honda CR-Z.
(Read more...)
Posted by Michelle Krebs at 4:39 AM under Analysis , Featured , Ford | Comments (1) | digg this | del.icio.us
Detroit Auto Show: Eleven Vehicles That Matter - Or Don't
The 2010 North American International Auto Show is one of the most restrained editions of 
the Detroit confab many can remember.
But the show's comparative scarcity of high-impact concept and production vehicles didn't stem the avalanche of opinion on the most notable vehicles.
After scores of media outlets have weighed in, AutoObserver cuts through the clutter to give the real score on the 10 most significant - for better or worse - vehicles of the 2010 Detroit auto show.
(Read more...)
Posted by Bill Visnic at 11:31 PM under Analysis , Business , Commentary , Companies , Ford , GM , Toyota , Volkswagen, Audi | Comments (0) | digg this | del.icio.us
Corvette Drops to 50-Year Sales Low as High-End Sports Cars Sputter
When automakers revealed 2009 full-year sales on January 4, data analysts from 
Edmunds.com unearthed a remarkable fact: sales of General Motor Co.'s seminal Chevrolet Corvette sports car fell to a low not seen in almost 50 years.
The Corvette's 13,934 sales were the worst for the nameplate since 1961, when Chevrolet sold 10,939 models - and the car was still in its first generation.
As recently as 2006, Chevrolet sold more than two-and-a-half times as many Corvettes -- 36,518 -- as it did last year, as sales for almost all premium sports cars were pummeled.
(Read more...)
Posted by Michelle Krebs at 4:12 AM under Analysis , Featured , GM | Comments (7) | digg this | del.icio.us
AutoObserver Readers Closely Watch Industry Trends
AutoObserver readers continue to closely monitor the auto industry's sales and incentives trends as illustrated by the most-read posts on AO this week. Those types of posts were also reader favorites for all of 2009.
AutoObserver's report on December car sales, which showed some optimism, topped the chart of most-read posts this week by readers by a long shot.
(Read more...)
Posted by Michelle Krebs at 5:20 AM under Analysis , Chrysler , Companies | Comments (0) | digg this | del.icio.us
December Sales Provide Hopeful Farewell to Last Year
U.S. auto sales in December accelerated to their best pace of the year outside last summer's Cash for Clunkers bonanza, providing a hopeful punctuation mark to the industry's worst year in decades.
Sales in December totaled 1,010,003, up 1.9 percent from December 2008, when automakers and American consumers were newly stunned by the economic debacle unfolding on several levels around them.
(Read more...)
Posted by Michelle Krebs at 8:56 AM under Analysis , Chrysler , Companies , Ford , News , Toyota | Comments (0) | digg this | del.icio.us
Ford Mustang Wins Pony Sales Race
The Ford Mustang, thanks to a December sprint to the finish, won the pony car sales race 
over the Chevrolet Camaro.
And it wasn't as close as anticipated.
Ford Mustang sales came in at 66,623 vehicles; General Motors sold 61,648 Chevrolet Camaros. The Camaro went on sale in March so did not have a full year of sales.
(Read more...)
Posted by Michelle Krebs at 11:23 AM under Analysis , Ford , GM | Comments (4) | digg this | del.icio.us
Auto Industry Believes 2009 Close Bodes Well for 2010
Some day, automakers hope to look back on 2009 as the year that both sales and corporate fortunes finally bottomed out. It's far too early to tell if history will treat last year that way, but for now, at least, the industry is taking heart from a definite surge of sales momentum as the decade closed.
Automakers sold about 10.4 million units last year, a disastrous tally that comprised the lowest total of light-vehicle sales in this country since 1970.
(Read more...)
Posted by Michelle Krebs at 8:38 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
GM, Ford Pony Cars Gallop to Photo Finish
The winner of the sales race between the Chevrolet Camaro and Ford Mustang will be 
revealed when the auto industry reports sales Tuesday. And the finish will be a close one.
General Motors already is hailing a victory, announcing the Camaro will win. And, based on Edmunds.com estimates, it's possible even though at the end of November Mustang was ahead.
"It looks feasible that the Camaro could outsell Mustang," said Edmunds.com Analyst Ivan Drury. "The two will be only a thousand or two thousand units apart when final sales are reported."
Still, through the end of the November, the Mustang was ahead.
(Read more...)
Posted by Michelle Krebs at 5:53 AM under Analysis , Ford , GM | Comments (2) | digg this | del.icio.us
Despite Year-End Blitz, Incentives Costs Dip, Edmunds.com Reports
Despite the year-end incentives blitz and holiday marketing campaigns, automakers actually spent less on incentives in December than they did a year ago or even in November.
Edmunds.com estimates the average automotive manufacturer incentive was $2,542 per vehicle sold in December, down $167, or 6.2 percent, from November, and down $320, or 11.2 percent, from December 2008.
"In December, only about a quarter of new cars sold were leftover 2009 models. That sent the average incentive expenditure lower compared to November and last December when the old model-year vehicles made up closer to half of the new car sales," said Jessica Caldwell, Edmunds.com's director of Industry Analysis.
(Read more...)
Posted by Michelle Krebs at 4:33 AM under Analysis , Featured , GM | Comments (0) | digg this | del.icio.us
As December Car Sales Announced, Edmunds.com Warns SAAR Metrics Can Mislead
Car sales during the last 10 days of December were relatively strong, but it is premature to say that the economy has turned around, according to Edmunds.com.
The Seasonally Adjusted Annual Rate (SAAR) has been used for decades to measure economic trends, and it is likely that December's automotive SAAR will be celebrated. Based on Edmunds.com Web site activity, the SAAR could hit 11.7 million in December, the highest for any non-Cash for Clunker month this year.
However, Edmunds.com has found that SAAR is an unreliable metric during periods of economic recession. Recession-era buyer psychology shifts behavior in a way that reduces the accuracy of the U.S. Bureau of Economic Analysis' established seasonal adjustments upon which SAAR is based.
(Read more...)
Posted by Michelle Krebs at 4:11 AM under Analysis , Companies | Comments (0) | digg this | del.icio.us
Are Folks Getting Used To Driving Less?
Latest behavioral trend for automakers to fret about: For the second consecutive year, 
Americans are driving less.
Miles traveled in 2009 by passenger and commercial vehicles on U.S. roads dropped to 2.93 trillion from 2.94 trillion in the same period in 2008, the Federal Highway Administration said. The measured period for 2009 was the 12 months that ended in October, and travel through the rest of calendar 2009 was unlikely to reverse the trend.
Ballooning fuel prices in 2008 and the national economic meltdown in the fourth quarter of that year led to an expected decrease in U.S. driving, the first in a quarter century.
But when the bottom dropped out of fuel prices in 2009, it was expected driving would exceed the 2008 figure -- but rising unemployment and continued pressure on household budgets and commercial activity led to a second consecutive cutback in miles driven.
(Read more...)
Posted by Michelle Krebs at 7:31 AM under Analysis , Companies , Technology | Comments (2) | digg this | del.icio.us
Car Sales Surged at December's End, Edmunds.com Reports
Car shopping on Edmunds.com surged in the waning days of December, prompting the Web site to suggest sales for the month may come in higher than previously expected -- and could be the highest non Cash for Clunker month of the year.
"The industry potentially could reach a seasonal sales rate of 11.7 million vehicles in December, given the current site traffic trend," noted Edmunds.com Senior Analyst Jessica Caldwell.
"Our Web site activity is through the roof," added Caldwell. "That makes sense as there are so many bargain-hunters scrambling to get year-end deals and cash in on the sales tax deduction opportunity that expires on December 31st."
An improving economy likely has helped as well. Edmunds.com Web activity in late December is 60 percent higher than the historical pattern for the period. Brands enjoying particularly strong activity are BMW, Ford, Honda and General Motors' Chevrolet, Pontiac and Saturn brands.
(Read more...)
Posted by Michelle Krebs at 5:48 AM under Analysis , Featured , Ford , GM | Comments (3) | digg this | del.icio.us
Still Weak Consumer Confidence Picks Up Slightly
Reinvigorating the housing sector and boosting confidence are considered key components to revitalizing the economy and auto sales, economists say.
To that end, the monthly survey by the Conference Board showed consumer confidence picked up slightly in December after rising in November, but still remains weak, largely due to the job picture.
The Standard & Poor's/Case-Shiller home-price index, which tracks sales in 20 major metropolitan areas, showed that prices of single-family homes were largely flat in October compared with September, another factor that undermines consumer confidence.
Posted by Michelle Krebs at 9:25 AM under Analysis , Business | Comments (0) | digg this | del.icio.us
Ready To Set Record-Low Sales, Chrysler Heads for 2010 in Reverse
A little more than a month after Chrysler Group LLC outlined a new five-year plan to 
restructure and reinvigorate the company as it combines operations with Italy's Fiat S.p.A., the market isn't helping Chrysler's plan look any less overreaching: sales plunged again last month; the company is cutting production and layering on incentives; and the new-product pipeline is scanty as ever.
Chrysler's limping finish to 2009 and dim prospects to start the new year are underscored by this simple fact: when full-year results are tallied, the company will sell less than 1 million units in the U.S. for the first time since 1962.
(Read more...)
Posted by Michelle Krebs at 6:16 AM under Analysis , Chrysler , Featured | Comments (4) | digg this | del.icio.us
This GM "Fire Sale" No Hotter Than Current One
General Motors' convoluted $7,000-incentive offer to dealers to put remaining Pontiac and Saturn vehicles into their fleets and then sell them as used vehicles was described by the media as a fire sale. But Edmunds.com's analysis shows the so-called fire sale is no hotter than the prices currently being offered.
GM already has been offering incentives valued at up to $6,500 on Saturns and Pontiacs, including the always attractive zero-percent financing for up to 72 months, according to Edmunds.com calculations. In addition, consumers are allowed to write-off the sales tax on their new vehicle purchase now.
"The newest program is more hype than substance," said Edmunds.com Senior Analyst Jessica Caldwell.
(Read more...)
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The Decade's Winners and Losers: The Data
Not only is 2009, one of the single most tumultuous years for the auto industry, drawing to a 
close, but so is the first decade of a new century.
As the year winds down, data analysts at Edmunds.com are cranking away at numbers that are certain not only to entertain but also demonstrate how cataclysmic 2009 turned out to be, particularly viewed through the prism of a closing decade's worth of sales-performance trends: market share destroyed, market share gained. Years of growth turned upside down. Surprising sales-volume gains, foreboding losses.
The ever-present import-versus-domestic battle in almost startling perspective.
(Read more...)
Posted by Michelle Krebs at 4:05 AM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
AutoObserver Readers Closely Follow Tumult of 2009 Auto Industry
In what will go down in history as the auto industry's most tumultuous year in recent 
memory, AutoObserver readers couldn't get enough information about what was happening in the industry and how automakers and the government reacted.
Edmunds.com's forecasts for sales and analysis of sales and trends rated high among AutoObserver's 25 best-read posts for 2009.
High on that list were posts about how automakers reacted in terms of closing plants, shuttering brands, particularly General Motors' Saturn and Pontiac, terminating dealers and setting vehicle prices and incentives.
(Read more...)
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Los Angeles Auto Show Vehicles Generate Edmunds.com Buzz
Five new models displayed at the recently wrapped-up Los Angeles auto show are generating tremendous buzz on Edmunds.com. The five most talked-about vehicles are the Buick Regal, Ford Fiesta, Hyundai Sonata, Toyota Sienna and Cadillac CTS coupe.
Here's what readers have to say:
(Read more...)
Posted by Michelle Krebs at 4:43 AM under Analysis , Commentary , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Some New Cars Cost Less than Used Due to Supply and Demand, Edmunds.com Reports
Great deals on new cars and the simple economic principle of supply and demand is at work 
with a number of new cars costing less than their equivalent of its one-year-old used version, according to an analysis by Edmunds.com.
The deals on some new cars are so generous that they actually make the new car less expensive than the one-year old used version of the same model. Some of the vehicles on Edmunds.com's list of new costing less than used this month include the 2009 Audi Q7, 2009 Buick Enclave, 2009 Mazda B-Series Truck, 2009 Volvo C30 T5, and 2009 Toyota Highlander Hybrid.
In addition to great deals on new models, used car prices generally are climbing due to low supply, said Edmunds.com Analyst Joe Spina.
(Read more...)
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Could New Saab Models See the Light of Day?
At last fall's Frankfurt auto show and at the Miami auto show shortly after, Saab's flagship 9- 
5, completely redesigned and ready for launch in 2010, made its debut.
Saab executives billed the launch of the 9-5 as the kick-off of a new era for the Swedish brand. Over the next 16 months, Saab said it would introduce four new models - the redesigned Sweden-built 9-5 sedan and SportCombi wagon along with the the all-wheel-drive 9-3X and the compact 9-4X luxury crossover.
Instead, on Friday, General Motors announced that plans to sell Saab to a new owner had failed, and it would wind-down the brand.
But could those new Saab models show up elsewhere? It's possible, a GM executive said.
(Read more...)
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This Week's AutoObserver Reader Favorites: GM Plans; Award Finalists; VW-Suzuki
Not surprisingly, this week's favorite post by AutoObserver readers was our coverage of 
General Motors Chairman and Interim CEO Ed Whitacre's outline for the automaker's short-term game plan.
The former AT&T CEO held his first media roundtable since adding the CEO title two weeks after the ouster of Fritz Henderson.
At the press briefing, Whitacre said GM's priorities are paying back $6.7 billion in government loans by June and selling more cars and generating more revenue. He also called GM's sale of Saab to Dutch sports car maker Spyker is "possible" by year-end, but, if not, Saab would be eliminated.
(Read more...)
Posted by Michelle Krebs at 5:07 AM under Analysis , Business , Companies , Ford , GM , News , Personalities | Comments (0) | digg this | del.icio.us
Auto Sales Trend Higher Heading into 2010, Edmunds.com Forecasts
Vehicle sales are trending higher as 2009, one of the most tumultuous years for the industry, draws to a close.
New vehicle sales, including retail as well as fleet sales, are expected to total 1,010,000 units, a 13.3-percent increase from December 2008 and a 35.7-percent increase from November, Edmunds.com forecasts. That would put the month's Seasonally Adjusted Annualized Rate (SAAR) at 11.11 million vehicles, up from 10.89 in November.
And that would put full-year annual sales at just over 10 million, a decrease of almost three million vehicles, or 21.3 percent, from 2008. That would make it the worst year for car sales since 1970 when the industry sold 10.2 million and the U.S. population was far less than it is today.
(Read more...)
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What Vehicles at LA Show Will Win in the Market?
With the doors closed last weekend on the 2009 Los Angeles auto show, the vehicles that premiered there will soon be arriving in dealer showrooms. What ones will sell in the marketplace?
To answer that question, AutoObserver watched the behavior of Edmunds.com visitors who came to the car-shopping Web site for vehicle information and turned to Edmunds.com staffers who covered the show.
Edmunds.com visitors appeared most interested in the Buick Regal, Chevrolet Cruze, Ford Fiesta, Hyundai Sonata, Mazda 2 and Toyota Sienna, with those vehicles seeing the biggest rise in shopping consideration.
(Read more...)
Posted by Michelle Krebs at 6:54 AM under Analysis , Commentary , Featured , GM , Hyundai, Kia , Mazda , Toyota | Comments (0) | digg this | del.icio.us
Chevy Boss, Another GM "Lifer," To Retire
General Motors Co.'s crucial Chevrolet division has a new general manager as yet another long-serving executive is leaving GM.
The company announced late Wednesday that Brent Dewar, 31-year GM veteran and vice president, global Chevrolet, will retire effective April 1, 2010. Taking over immediately as Chevrolet general manager is 45-year-old James M. Campbell, who had been in charge of GM's Fleet and Commercial Operations.
Since GM emerged from bankruptcy in mid-July, chairman Ed Whitacre has emphasized GM is striving for younger faces and fresher thinking -- not to mention fresh blood from outside -- to reinvigorate GM's hidebound executive culture.
Chevrolet's new general manager is appropriately young, perhaps, but is no newbie at GM, having been with the company since 1988.
(Read more...)
Posted by Bill Visnic at 7:19 PM under Analysis , Business , Featured , GM , News , Personalities | Comments (4) | digg this | del.icio.us
Automakers See Glass Half-Full After Flat November Sales
U.S. auto sales clocked in about flat in November compared with a year ago -- and in line with widespread expectations that the market will only gradually creep upward for at least the next year. But industry executives and analysts mostly chose to interpret the American auto market as a glass half-full.
November sales were 746,544 vehicles compared with 743,605 in November, 2008. On an absolute basis, that number of units represented a 0.4-percent year-to-year monthly sales increase -- or call it flat. But taking into account the fact that the industry enjoyed two fewer "selling days" this year compared with last November, sales actually increased by 9.1 percent last month on an apples-to-apples basis.
(Read more...)
Posted by Michelle Krebs at 3:56 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (2) | digg this | del.icio.us
Fridays and November Not the Best Time for Car Deals, Edmunds.com Reports
If you thought you missed out on best-of-the-year car deals on Black Friday, forget about it. If last year is any indication, December is the best time to get a great deal.
Neither Fridays nor November are the best times to get the biggest discounts on cars and trucks, according to Edmunds.com's analysis of the past four years of sales transaction data.
Rather car shoppers can look for some of the best deals in December and January.
(Read more...)
Posted by Michelle Krebs at 12:13 PM under Analysis , Companies , Featured | Comments (2) | digg this | del.icio.us
Back to the Future: Companies Go Vertical -- Again
Forward-thinking Larry Ellison, CEO of Oracle Corp., recently told financial analysts he is taking a page from history past in creating a new business model for the high-tech company. Oracle is going vertical.
And Ellison is not alone in turning back to the century-old vertical integration strategy whereby a company controls materials, manufacturing and distribution, according to a story on the trend in Monday's Wall Street Journal.
Other companies, including General Motors and Boeing from which Ford CEO Alan Mulally came, are as well.
(Read more...)
Posted by Michelle Krebs at 10:22 AM under Analysis , Business , Companies | Comments (0) | digg this | del.icio.us
Consumers Look for Holiday Bargains as They Have in Autos All Year
The conclusion by trackers of overly-hyped Black Friday holiday shopping revealed a trend seen in the auto industry all year: shoppers are looking but in the end, spending less and buying only when they find a bargain.
Automakers monitor shopping patterns as consumer spending makes up 70 percent of the U.S. economy and plays a large role in how quickly the country can recover from a recession that began in December 2007.
(Read more...)
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Lending Drops Most Since 1984
Lending by U.S. banks - the lifeblood of the auto industry -- fell 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, according to a Federal Deposit Insurance Corp. issued Tuesday and reported on by the Washington Post.
The paper said the decline in lending is emerging as a serious impediment to economic recovery.
(Read more...)
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GM Orphans Up for Adoption
General Motors last week began sending out 1.8 million pieces of direct mail to what the 
automaker calls its "free-agent customers" -- customers orphaned by the wind-down of Pontiac and Saturn and the proposed sell-off of Hummer and Saab.
In this first of promised multiple mailings, GM is offering discounts of up to $2,000 on certain models to the nearly 1 million customers of closed GM dealerships, if they go to the next closest dealer by January 4. The automaker also is giving customers of closed dealerships a vehicle inspection and tire rotation at remaining dealerships through May.
"The challenge for us is to grab those customers by the hand and make sure they know where to go," Susan Docherty, GM's vice president of U.S. sales, said in a media conference call last week.
But GM's competitors also are eyeing those up-for-grabs customers.
(Read more...)
Posted by Michelle Krebs at 10:14 AM under Analysis , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Get Ready for Leasing's Revival
Leasing may have been down, but it isn't out.
After all but abandoning leasing for the past year, Ford Motor Co., General Motors Co. and Chrysler Group LLC each have reported either a re-entry or expansion in the leasing business. And other manufacturers who never got out of the game are in a position to increase their lease penetration.
Through the remainder of the year, Edmunds.com expects a modest increase in non-luxury leasing commensurate with the announcements by the domestics, as well as a slight increase with at least one import brand: Toyota Motor Corp. has room to grow its lease portfolio.
(Read more...)
Posted by Michelle Krebs at 6:10 AM under Analysis , Business , Companies , Featured | Comments (2) | digg this | del.icio.us
As '09 Inventories Deplete, Who Will Blink First - Carmakers or Customers?
After the sales plunge in the auto market began in earnest in the fall of 2008, automakers scrambled to reduce production schedules, sell off swollen inventories and otherwise deal with a drastically contracting U.S. market.
Now, after months of production cutbacks orchestrated by many automakers and the summer's outsized demand from the $3 billion Cash for Clunkers rebate program, bloated inventories are a thing of the past. Now, data researchers at Edmunds.com say the coming months may be a tug of war between still-cautious buyers and right-sized-but-cash-strapped automakers anxious to hold the line on pricing.
It could be a battle that sees winners and losers on both sides as uncommon market and industry forces collide in what will be an unpredictable sales environment.
(Read more...)
Posted by Michelle Krebs at 6:34 AM under Analysis , Chrysler , Companies , Featured , Ford , GM | Comments (3) | digg this | del.icio.us
GM Sees 11 Million SAAR Month Possible for November
It's early, admit General Motors prognosticators, but November could hit a Seasonally Adjusted Annual Rate of 11 million vehicle sales, making it the highest level this year outside of the Cash for Clunker months of July and August.
GM's top analyst Mike DiGiovanni told media in a conference call Thursday that the automaker is encouraged by positive economic signs and the automaker may turn in its fourth consecutive month of market share gain.
Edmunds.com's forecast, issued early Thursday, is less rosy, putting the predicted SAAR at about 10.34 million vehicles sold in November, which in the best of times is the worst month for vehicle sales except for January.
Posted by Michelle Krebs at 12:34 PM under Analysis , GM | Comments (0) | digg this | del.icio.us
Automakers Launch Holiday Promotions to Offset November Sales Blues
November is living up to its reputation as one of the worst months of the year for car sales, prompting automakers to launch holiday promotions in an effort to end one of the worst years for sales on a slightly higher note.
November sales in the U.S., both retail and fleet, are expected to total 710,000 vehicles, a 4.5 percent decline from November 2008 and a 15.0-percent decrease from October, according to Edmunds.com's forecast. That would put the Seasonally Adjusted Annual Rate (SAAR) at 10.34 million vehicles, down from 10.43 million in October. Except for January, sales in November typically are the lowest of the year.
"Everyone is hopeful that Thanksgiving weekend will boost the sales numbers," said Edmunds.com Senior Analyst Jessica Caldwell. "But automakers have already launched holiday season incentives in order to pick up the pace, and that sense of desperation suggests that bigger discounts - but smaller selection - may be available for those who wait to buy."
(Read more...)
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For GM, It's North America - Or Bust
The good news after General Motors Co.'s report on its financial health was released Monday: the "new" General isn't dying.
But the patient's long-term prognosis, admitted CEO Fritz Henderson, isn't exactly a clean bill of health just yet.
"When you come away from it, we lost money (in the period from July 10 to Sept. 30)" said Henderson, calling the situation "not satisfactory."
And while GM's operating cash flow figure for the period was a healthy-enough $3.3 billion, one recurring malady has popped up on GM's first-ever post-bankruptcy report: North American operations didn't get the job done.
(Read more...)
Posted by Bill Visnic at 4:33 PM under Analysis , Featured , GM | Comments (6) | digg this | del.icio.us
GM Sales, Prices Rise Since Bankruptcy; Profit Per Vehicle Flat
General Motors, which reported its first financial results Monday since emerging from 
bankruptcy July 10, has boosted market share and hiked vehicle prices since its bankruptcy, but its typical profit per vehicle remains essentially flat, according to Edmunds.com.
GM's U.S. market share of 21.1 percent matched its high point for the year in October. Sticker prices are at their highest point of the year as well. However, higher share and higher prices aren't translating into higher profits per vehicle because, while consumers are willing to pay more for new GM models, they are unwilling to do so for the carryover ones.
(Read more...)
Posted by Michelle Krebs at 6:56 AM under Analysis , Featured , GM | Comments (1) | digg this | del.icio.us
Trying to Figure Out what the Honda Crosstour Is
Criticism of its unconventional looks nothwithstanding, Honda Motor Co. Ltd.'s new Crosstour 4-door hatchback seems to be causing a stir in the marketplace as consumers try to determine just what the Crosstour is - and how to categorize it versus other types of vehicles.
Cross-shopping data from Edmunds.com indicates prospective Crosstour buyers are all over the map in terms of vehicles they are considering in addition to the Crosstour. Early indication shows most seem to view the Crosstour as either a wagon or a crossover. Through September, apart from the more conventional 2- and 4-door variants of the Accord, the vehicle most cross-shopped against the Crosstour was Toyota's Venza.
But one question Honda may find itself asking is whether the Crosstour will generate incremental sales - or if it is simply giving its own customers another alternative: three of the top four vehicles cross-shopped against the Crosstour are other Hondas.
One thing seems certain: shoppers seem to think domestic automakers have much of an analogue to the Crosstour. Of the 25 vehicles most cross-shopped against the Crosstour, only two were domestic nameplates, the Chevrolet Equinox crossover and the Cadillac CTS (most likely the new CTS Sport Wagon).
(Read more...)
Posted by Bill Visnic at 7:33 AM under Analysis , Companies , Featured , In the Media | Comments (2) | digg this | del.icio.us
October Auto Sales Uptick May Presage the 'New Normal'
U.S. auto sales in October turned in a performance reminiscent of what can now be called the good old days before last year's market collapse, about even with October 2008 but up 13 percent from September.
October saw the first year-to-year sales increase -- excluding the Cash for Clunkers months this summer -- in two years. Sales of 837,800 vehicles during the month translated into a Seasonally Adjusted Annual Sales rate of 10.43 million units - about the same number that the consensus of industry watchers is still predicting for total actual sales volume for all of calendar 2008. (The SAAR last October was 10.78 million.)
So after recovering from record doldrums in the first half of the year, and stabilizing in the wake of the Cash for Clunkers blip over the summer followed by the sales-drought "payback" in September, the October sales numbers reflected a U.S. auto market that is recovering slowly and -- automakers hope -- surely.
(Read more...)
Posted by Michelle Krebs at 11:19 AM under Analysis , Companies , Featured | Comments (6) | digg this | del.icio.us
Incentives Dip as Automakers Launch 2010 Models
Incentives paid by automakers dipped in October from September and a year ago as they launch new 2010 models, which don't need them yet, and wind down 2009 models, Edmunds.com reports.
The average automotive manufacturer incentive in the U.S. was $2,468 per vehicle sold in October 2009, according to Edmunds.com analysis of Total Cost of Incentives (TCI). That's down $329, or 11.8 percent, from September, and down $209, or 7.8 percent, from October 2008.
"Incentives declined because fewer old model-year vehicles were sold in October, and the newer vehicles are not discounted nearly as heavily," explained Jessica Caldwell, director of industry analysis for Edmunds.com. "Over 55 percent of vehicles sold in October were 2010 model year, compared with about 36 percent in September."
(Read more...)
Posted by Michelle Krebs at 7:00 AM under Analysis , Companies , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
October Car Sales May Show Signs of Life When Reported Tuesday
Automakers report October sales on Tuesday and those reports are likely to show some signs of life.
Edmunds.com forecasts the Seasonally Adjusted Annualized Rate (SAAR) of car sales will come in at 10.3 milllion to 10.4 million, the year's highest level aside from the summer's Cash for Clunkers months of July and August.
Toyota's Bob Carter told reporters in Detroit Monday that he expects the SAAR to come at between 10.3 to 10.5 million units. "Toyota will be up single digits on a daily selling rate basis versus September and down slightly - single digits - versus a year ago," Carter said. Edmunds.com forecasts Toyota sales will be off 9.6 percent from a year ago.
(Read more...)
Posted by Michelle Krebs at 6:36 AM under Analysis , Ford , Toyota | Comments (0) | digg this | del.icio.us
For Once, Rising Gas Prices Could Help Auto Industry
Don't look now, but gasoline prices have crept up to their highest level of 2009. Typically that means trouble for the auto business, but if gas prices stay high, this time the outcome may be different.
Demand for fuel-efficient vehicles seems to be, drastically more challenging nationwide fuel-economy standards are looming and most automakers are drastically retooling the model lines to answer.
(Read more...)
Posted by Michelle Krebs at 4:06 AM under Analysis , Technology | Comments (0) | digg this | del.icio.us
October Is Year's Best Non-Clunker Month for Car Sales, Edmunds.com Forecasts
October car sales are expected to come in at the highest level of the year except for during the summer's frenzied Cash for Clunker months, Edmunds.com forecasts.
Industry sales, being reported on Tuesday, are expected to total 830,000 vehicles, almost even with a year ago and up 11.4 percent from September. That would push October's Seasonally Adjusted Annualized Rate (SAAR) to 10.35 million, up from 9.19 in September.
""There are clear signs that the automotive industry is finally starting to recover from the painful lows experienced earlier this year,"said Jessica Caldwell, Edmunds.com's director of Industry Analysis.
(Read more...)
Posted by Michelle Krebs at 4:59 AM under Analysis , Chrysler , Featured , Ford , GM | Comments (2) | digg this | del.icio.us
GM Forecasts 10.7 Million SAAR for October
General Motors predicts the Seansonally Adjusted Annualized Rate (SAAR) of car sales in October will come in at 10.7 million total vehicles, including heavy- and medium-duty trucks. On a light vehicle basis, GM forecasts at 10.5 million SAAR.
GM's top analyst Mike DiGiovanni told reporters Wednesday morning that October may be the first month since January 2008 that GM will report a year-over-year increase in sales and market share. The automaker expects its third consecutive month of market share increase for a total market share of 20 to 21 percent and 19 to 20 percent in retail market share.
"We're not here to declare victory," said Susan Docherty, GM's new vice president in charge of U.S. sales, during the "Straight Talk" conference call. "We're here to report progress."
(Read more...)
Posted by Michelle Krebs at 8:09 AM under Analysis , GM | Comments (1) | digg this | del.icio.us
Cash for Clunkers Tab: $24,000 Per Vehicle of Taxpayer Cash
This summer's so-called Cash for Clunkers program cost taxpayers $24,000 per vehicle sold, 
according to an analysis by Edmunds.com.
Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as the Car Allowance Rebate System (CARS), but Edmunds.com analysts indicate that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway.
Analysts divided three billion dollars by 125,000 vehicles to arrive at the average $24,000 per vehicle sold. The average transaction price in August was $26,915 minus an average cash rebate of $1,667.
(Read more...)
Posted by Michelle Krebs at 5:05 AM under Analysis , Companies , Featured | Comments (7) | digg this | del.icio.us
Consumer Reports: Ford Among World's Most Reliable Carmakers
Ford Motor Co. secured its position as the only Detroit automaker with world-class reliability, 
according to Consumer Reports magazine's 2009 Annual Car Reliability Survey.
Of 51 Ford, Mercury, and Lincoln models, 46 had average or better reliability, the magazine said in an announcement made Tuesday at the Automotive Press Association in Detroit.
"Ford's sustained production of vehicles that are as dependable -- or better than -- some of the industry's best dispels the notion that only Japanese manufacturers make reliable cars," the magazine said.
(Read more...)
Posted by Michelle Krebs at 10:50 AM under Analysis , Featured , Ford , News | Comments (2) | digg this | del.icio.us
Ford Could Run Short on Some Models Due to India Labor Dispute
Ford could run short of Ford Edge and Ford Flex models due to a labor dispute at a supplier 
plant in India that has forced the automaker to close its Oakville, Ontario, assembly plant.
Ford closed the Canadian plant, which makes the Edge and Flex as well as the Lincoln MKX and newly-launched Flex-based MKT, due to a shortage of transmissions, the result of a labor dispute a supplier plant, Rico Auto Industries, in India. The strike turned violent Sunday night after a plant employee died during a protest.
(Read more...)
Posted by Michelle Krebs at 10:43 AM under Analysis , Ford , News | Comments (2) | digg this | del.icio.us
October Sales Returning to Pre-Clunker Norm
With another week gone by, October sales look to be on track for Seasonally Adjusted 
Annualized Rate (SAAR) in the low 10 million range, according to the latest data from Edmunds.com, which issues a more detailed forecast later this week.
General Motors' market share, which in the early going of the month stood at 22.4 percent, has slipped slightly to 21.7 percent in the latest Edmunds.com analysis.
In terms of sales by segments, the market appears to be returning to a pre-Cash for Clunkers equilibrium between large SUVs and trucks compared with small cars.
(Read more...)
Posted by Michelle Krebs at 6:39 AM under Analysis , Companies , GM | Comments (1) | digg this | del.icio.us
Screaming Deals on Convertibles, Luxury Cars, Sports Cars and Dying Models, Edmunds.com Reports
The industry's best deals right now are in luxury cars, sports cars and convertibles as well as 
leftover 2009 models, according to Edmunds.com.
As for brands, Lincoln, Saab and Volvo are offering great deals, as are Pontiac and Saturn, which are being discountinued completely by General Motors.
"Dealers should be open to any decent offer since they know that these vehicles, which often sell to a fashion-conscious crowd, will drop in value once the 2010 model year vehicles roll in. There will be nothing harder to sell than a 2009 convertible in winter with 2010 fast approaching," said Edmunds.com Senior Analyst Jessica Caldwell. And there is ample inventory of 2009 models, she added
(Read more...)
Posted by Michelle Krebs at 4:12 AM under Analysis , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
Manufacturers Offer Richest Incentives Since Cash for Clunkers
After dismal September car sales due to the hangover from the government's Cash for 
Clunkers program, auto manufacturers have ramped up incentives in October as they have ramped up production to refill the inventory pipeline, according to Edmunds.com.
The incentives show manufacturers are extremely eager to sell off 2009 models left in inventory. But automakers are also offering incentives on newly launched 2010 models.
"This year has been a wild ride for automakers, and it's not over yet," said Edmunds.com Senior Analyst Jessica Caldwell. "No segment is unaffected by the current round of incentives, though luxury models and trucks are being discounted particularly heavily."
Low-interest financing, including zero-interest financing, and cash rebates dominate the landscape, but subsidized lease programs, almost non-existent in the past years, are proliferating as well.
(Read more...)
Posted by Michelle Krebs at 6:43 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Technology , Toyota | Comments (0) | digg this | del.icio.us
2009 Car Buyers Say Paint It Black, Edmunds.com Reports
Henry Ford, famous for saying buyers could buy any color of Model T as long as it was 
black, must be smiling. Black is the No. 1 color choice for buyers of vehicles so far this year, according to Edmunds.com's analysis of sales transaction data.
Black has accounted for 20.3 percent of new vehicles sold so far this year.
Edmunds.com's results are in contrast to other recently released color reports that put silver first. Indeed, in Edmunds.com's analysis, if silver and gray are combined, they shoot to the top of the chart at 30.1 percent of sales.
(Read more...)
Posted by Michelle Krebs at 11:56 AM under Analysis , Companies , Featured | Comments (5) | digg this | del.icio.us
GM Regaining Lost Market Share Ground in October, Edmunds.com Reports
General Motors is regaining some ground it lost in terms of market share this month, 
according to Edmunds.com.
If the early October trend continues, GM's market share should rise to 22.4 percent this month, a boost from the third-quarter average of 19.1 percent. Based on early October numbers, the Seasonally Adjusted Annual Rate (SAAR) of industry sales will come in at just above 10 million vehicles.
Launches of new models combined with a substantial hike in ad spending this month are helping.
Indeed, GM needs good news on the market-share front since its business plan is based on maintaining a market share of at least 19 percent with half the brands and fewer models, one of its board directors said Thursday.
(Read more...)
Posted by Michelle Krebs at 5:35 AM under Analysis , Business , Featured , GM | Comments (2) | digg this | del.icio.us
2010 Ford Taurus Hits Targets in Cross Shopping
When Ford product planners began to contemplate a possible new generation Taurus, they 
decided they should either move the next Taurus upmarket so it wouldn't be positioned right on top of the popular Ford Fusion as the previous one was - or forget about being in the segment altogether.
The automaker moved forward with a more upscale Taurus, introduced this summer as a 2010 model, and it appears to be doing what product planners intended, according to Edmunds.com's analysis of Taurus shoppers and what else they are considering.
The analysis shows:
- the new Taurus is being cross-shopped less with other Ford models than the old one, and the Ford models it is being cross-shopped against are more upscale ones;
- the new Taurus' most cross-shopped list shows more upscale competitors in the mix, including some luxury brands and hot imports that weren't on the old Taurus' cross-shop list;
- off the top 10 list are more downmarket competitors.
(Read more...)
Posted by Michelle Krebs at 10:19 AM under Analysis , Companies , Featured , Ford | Comments (2) | digg this | del.icio.us
Car Buyers Pay 2% More This Year, Edmunds.com Data Shows
Consumers are paying 2 percent more this year for new cars and trucks than they were a 
year ago, according to Edmunds.com.
That's good news for automakers eager to turn profits on fewer sales, but bad news for consumers.
The average price of a car or truck sold in the United States was $28,492 for the first nine months of the year, compared with $27,945 last year, according to Edmunds.com. The average transaction estimate doesn't include manufacturer rebates.
(Read more...)
Posted by Michelle Krebs at 6:29 AM under Analysis , Companies , Ford , GM | Comments (2) | digg this | del.icio.us
Huge U.S.-Market Backdoor Ready To Open for Chinese Automakers
A few years back, it was the first appearance of a Chinese automaker at the Detroit auto 
show that seemed to start the serious speculation about when the Chinese would crack into the U.S. market. Assessing the functional but rudimentary models on display, some predicted 2015 or 2020.
Instead, how about next year?
OK, it won't be with their own China-built models. But there are three pending brand-takeover deals -- General Motors Co.'s Saab and Hummer and Ford's Volvo Cars -- in which a Chinese automaker has a leading or secondary role. If any of the three purchases make it to completion -- and it's probable at least two will -- Chinese automakers will in effect be selling vehicles in the U.S.
(Read more...)
Posted by Michelle Krebs at 6:29 AM under Analysis , Business , Companies , Featured , Ford , GM | Comments (1) | digg this | del.icio.us
GM's 90-Day Report Card: Mixed Results
The day in July when General Motors emerged from Chapter 11 bankruptcy, CEO Fritz Henderson declared the new GM would focus on three things -- customers, cars and culture.
On Wednesday morning, Henderson is scheduled to give a 90-day progress report on how GM is doing.
So how is GM really doing in those three categories?
As for customers, GM, despite trying new ways to lure them, has found too few. As for cars, GM's new offerings are promising. As for culture, the jury's still out. And disappointments -- there have been a few.
(Read more...)
Posted by Michelle Krebs at 4:03 AM under Analysis , Companies , GM | Comments (4) | digg this | del.icio.us
Big Bucks on the Hood of Pricey Hybrids
Low gas prices and even lower demand in the luxury market have conspired to short-circuit sales of premium hybrid-electric vehicles. Now, as the fourth quarter begins to wind down a fairly lousy year for auto sales - and new 2010 models are shouldering their way onto dealer lots - automakers are piling on some fantastic incentives in the hope of clearing out leftover big-money hybrids.
Toyota Motor Corp.'s Lexus premium division, owner of the market's most-expensive hybrid in its LS 600h L, rang in October with a bulging $10,000 dealer-cash incentive on the '09 model of the flagship hybrid. The company also is offered a bounty of $1,000 to any sales associate selling an '09 LS 600h L, which starts at $106,035.
Toyota doesn't break out sales of the hybrid LS in its monthly sales reports, but sales of the entire LS line are down 53.7 percent through September as sales in almost all luxury segments continue to fade.
(Read more...)
Posted by Bill Visnic at 12:17 AM under Analysis , Business , Companies , GM , Toyota | Comments (0) | digg this | del.icio.us
Automakers Eager to Move Past September's Tepid Sales
U.S. auto sales in September dipped to predicted lows because the Cash for Clunkers program ended in August and there weren't many buyers left, car company executives reported Thursday. They're just hoping that the market's massive "payback" via September's sales drought isn't extended into the fourth quarter.
Americans bought just 745,516 vehicles in September, a 23-percent drop from a year ago. That represents an abysmal Seasonally Adjusted Annual Rate (SAAR) of sales of just 9.2 million units - the lowest since February and roughly the laconic pace at which economically shell-shocked consumers purchased cars during the first half of the year.
And it was far below -- 41 percent, to be exact -- the relatively breathtaking sales rate of 14.1 million units that prevailed for August, when most buyers took advantage of a total of $3.5 billion in rebates under the federal government's clunkers program and purchased more fuel-efficient vehicles. September's sales volume plunged by more than a half-million units compared with August.
(Read more...)
Posted by Michelle Krebs at 9:28 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (13) | digg this | del.icio.us
Incentives on the Rise through Year-End, Edmunds.com Predicts
After five straight months of decline, incentives are on the rise again, according to Edmunds.com.
The average manufacturer incentive totaled $2,557 per vehicle sold in September, up $83 or 3.4 percent from August, Edmunds.com estimates. That was down $344, or 11.9 percent from September 2008.
This summer's Cash for Clunkers program substituted as a manufacturer incentive but with the program over and vehicle inventories being replenished, consumers aren't buying, as will be seen when automakers report September sales Thursday. Edmunds.com forecasts sales for the month will come in at only about a 9.3 million Seasonally Adjusted Annual Rate (SAAR).
Now customers need a reason to buy.
(Read more...)
Posted by Michelle Krebs at 7:22 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
GM Says Bye, Bye eBay
General Motors will end its listing of cars online through eBay this week because it didn't 
generate sales, a newspaper report says.
The program had been set to end September 8 but was extended through the end of the month. GM had been optimistic that it would be successful and would be rolled out nationwide. But it has not generated sales, the Wall Street Journal reported, citing sales figures and dealer comments.
As a result, GM will not extend the eBay venture beyond September, the newspaper reported. A GM spokesman did not confirm the report.
(Read more...)
Posted by Michelle Krebs at 10:07 AM under Analysis , Business , GM | Comments (2) | digg this | del.icio.us
Soft Sales Test Automakers' Resolve to Restrain Incentive Spending
Automakers will have their resolve to scaleback incentive 
spending tested in the coming months as their assembly plants ramp up production to beef up inventory and sales continue to be soft.
Incentives on General Motors, Ford and Chrysler vehicles plummeted by 26 percent to $3,278 per vehicle in August from a March peak, according to Edmunds.com, parent of AutoObserver.com. Industrywide incentives fell 22 percent to $2,474 per vehicle.
"Automakers have to pull the lever and increase production in an unknown market," Edmunds.com Senior Analyst Jessica Caldwell told Bloomberg News. "They could find there are no buyers out there and have to raise incentives again. It's a vicious circle."
(Read more...)
Posted by Michelle Krebs at 6:03 AM under Analysis , Chrysler , Companies , Ford , GM | Comments (2) | digg this | del.icio.us
GM 60-Day, Money-Back Guarantee Is Working -- Mostly
General Motors launched its latest marketing campaign, "May the Best Car Win," a couple 
of weeks ago. It includes a 60-day money-back guarantee to buyers of its Buick, Chevrolet, Cadillac and GMC models through Nov. 30, which could be extended, a GM execuctive said Friday.
Is the campaign working?
The answer is - mostly.
(Read more...)
Posted by Michelle Krebs at 10:49 AM under Analysis , GM | Comments (2) | digg this | del.icio.us
September Car Sales on Track for 9.3 Million Rate, Edmunds.com Forecasts
September's hangover from August's Cash for Clunkers program appears to be easing.
New vehicle sales for the month are expected to total 742,000 units, off 22.9 percent from September 2008 and down 41.1 percent from August when Cash for Clunkers was in full swing, according to Edmunds.com's forecast. That would put the Seasonally Adjusted Annual Rate (SAAR) of sales at 9.34 million vehicles. Automakers report U.S. sales on Oct. 1.
"The aftereffects of Cash for Clunkers are still being felt: a significant number of September sales were pulled ahead into August, and many September shoppers left showrooms empty-handed after finding low inventories and high prices," said Edmunds.com CEO Jeremy Anwyl. "However, the industry's sales rebound is gaining momentum, so there is room for a small upside surprise on sales announcement day."
(Read more...)
Posted by Michelle Krebs at 6:09 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Ford Optimistically Forecasts 11 Million Sales in 2009; Introduces Figo in India
Ford is forecasting an increase in sales through the end of this year and a further rise in the 
next two years.
Ford CEO Alan Mulally told reporters in New Delhi, India, where Ford was launching a new small car, that U.S. car sales will hit 11 million this year then rise to 12.5 million in 2010 and 14.5 million in 2011, the year Ford vows it will break-even.
"That's pretty optimistic for 2009," said Jessica Caldwell, Edmunds.com senior analyst. "The industry would have to average 1 million sales for the next four months to achieve Ford's predicted 11 million."
(Read more...)
Posted by Michelle Krebs at 11:32 AM under Analysis , Ford | Comments (3) | digg this | del.icio.us
Consumers Wary of GM Money-Back Guarantee Fine Print
It's been just over a week now since GM announced its new 60-day money-back guarantee. The good news is that car shoppers in Edmunds.com's CarSpace forums are talking a lot about it. The bad news, though, is that they don't have a lot of nice things to say.
Almost everyone agrees that the promise sounds great. But, like most savvy shoppers, they're wary of the fine print. Specifically, they want to know exactly how much dough they're getting back if it turns out they don't like that new Chevy Malibu after all.
(Read more...)
Posted by Michelle Krebs at 4:42 AM under Analysis , GM | Comments (6) | digg this | del.icio.us
New LaCrosse Not Scoring Big With Buick's Preferred Prospects - Yet
General Motors Co. is counting on the 2010 Buick LaCrosse to be one of the company's first post- 
bankruptcy models to prove the company is serious about its professed new focus on developing only outstanding new products.
The LaCrosse may in fact be the most competitive and progressive Buick of the last 20 years. But whether the car can help change the perception of the brand and turn the heads of the luxury-car customers Buick is targeting is something that remains to be seen, according to data from Edmunds.com.
Buick officials have said they think the LaCrosse's blend of style, content and value will put the car on the consideration list of intenders for import entry-luxury sedans such as the Lexus ES 350 and Acura TL.
(Read more...)
Posted by Michelle Krebs at 5:44 AM under Analysis , GM | Comments (11) | digg this | del.icio.us
Edmunds.com Final Tally: Cash for Clunkers Buys, Trades; Ford Focus No. 1 Buy
Edmunds.com has completed its final tally of the most popular vehicle purchases and most 
frequent trade-ins under the Cash for Clunkers. The Ford Focus held its No. 1 spot as the favorite buy; the Ford Explorer remained the No. 1 trade-in.
Indeed, the top 10 lists in both categories wound up little changed from the early scoring on Edmunds.com's lists.
And, in fact, many of the top clunker buys are the industry's bestsellers in non-clunker times. Eight of the 10 vehicles on the top 10 clunker buy list are also in the top 10 for the year so far in total; only the order is changed.
(Read more...)
Posted by Michelle Krebs at 5:20 AM under Analysis , Chrysler , Companies , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Sales Drop Pushes Prices Down, Squeezes Dealer Margins
The precipitous drop-off in car sales after the conclusion of Cash for Clunkers is pushing transaction prices lower and squeezing dealer profit margins, Edmunds.com data shows.
In early August, Edmunds.com analysts reported that Cash for Clunkers shoppers were paying higher prices for their cars, perhaps neglecting to negotiate distracted by the government rebate. Limited supply and high demand drove prices up for everyone else as well.
Since the Car Allowance Rebate System (CARS) program ended on Aug. 25, car sales have dropped to their lowest rate of the year, and consumer discounts are increasing even as the average vehicle purchased is more expensive.
(Read more...)
Posted by Michelle Krebs at 1:34 PM under Analysis , Companies | Comments (2) | digg this | del.icio.us
September on Track to Be Year's Lowest for Car Sales
Suffering from a Cash for Clunkers hangover after August's party, September is on track to be the year's lowest rate of car sales, Edmunds.com forecasts.
"The best month of the year for car sales is being quickly followed by what could be the worst month of the year," said Edmunds.com CEO Jeremy Anwyl. "Cash for Clunkers was supposed to prime the pump, but that is a physics concept, and economics is quite different. Demand has dropped off significantly since the program ended."
Edmunds.com forecasts the Seasonally Adjusted Annual Rate (SAAR) of sales in September will plummet to 8.8 million for the year's lowest rate following the year's highest rate of 14.1 million in August.
(Read more...)
Posted by Michelle Krebs at 1:24 PM under Analysis , Companies | Comments (3) | digg this | del.icio.us
Cash for Clunkers Boosted Economy, Prompted Lower Car Prices
New government data shows Cash for Clunkers had a significant impact on the U.S.
economy and caused average vehicle prices in total to drop in August.
Cash for Clunkers triggered a 1.3-percent decline in the new vehicle price index - part of the monthly Consumer Price Index, the U.S. Labor Department reported Wednesday. The decline was the steepest in nearly four decades.
Behind the government numbers, data from Edmunds.com shows just why vehicle prices were pushed lower, an event not evolving into a trend.
(Read more...)
Posted by Michelle Krebs at 12:16 PM under Analysis , Companies , Featured | Comments (1) | digg this | del.icio.us
GM Guarantee Continuing to Increase Buyer Consideration
General Motors 60-day moneyback guarantee is generating increased interest in Buick, 
Cadillac, Chevrolet and GMC vehicles, according to Edmunds.com.
Shopping consideration for GM vehicles on Edmunds.com's Web site -- which can suggest future sales -- has trended upward in the last three days, in the range of a 15 to 17 percent.
Chevrolet and GMC are getting the biggest consideration lifts from the ad campaign, according to Edmunds.com's data. Specific models getting more shopper attention than before are: the new Chevrolet Camaro sports car; the near-twin GMC Yukon and Chevrolet Tahoe SUVs; the new GMC Acadia crossover; and the GMC Sierra pickup.
(Read more...)
Posted by Michelle Krebs at 10:52 AM under Analysis , GM | Comments (3) | digg this | del.icio.us
Fearing Clunker Hangover, Europeans Plead for Renewed Scrappage Plans
Hangovers are hell, and in Europe as in the U.S., automakers fear with Cash for Clunkers 
programs ended or winding down, they are in for a big one.
In Europe, automakers are pushing their governments to continue Cash for Clunkers-like plans - known as scrappage programs -- for fear the bottom will fall out of car sales.
In the U.S., automakers aren't pressing for Cash for Clunkers 2.0, but they are worried about sales this month and through year-end.
(Read more...)
Posted by Michelle Krebs at 5:19 AM under Analysis , Companies , Featured , Ford | Comments (1) | digg this | del.icio.us
So Far, So Good for GM's 60-Day Guarantee
General Motors' just-launched marketing program that provides the consumer with a 60-day moneyback guarantee on the purchase of a Buick, Cadillac, Chevrolet or GMC vehicle is generating interest in the early going, according to Edmunds.com and GM data.
Shopping consideration for GM vehicles on Edmunds.com's Web site -- which suggests future sales -- shows a 10 percent increase in the first couple of days since GM's "May the Best Car Win" campaign and the accompanying advertisements, featuring government-appointed chairman Ed Whitacre, hitting the airwaves on Sunday.
"What we'll be watching if GM's consideration stays at those levels or whether it rises or drops," said David Tompkins, Ph.D., Edmunds.com's executive director of Business Analytics. If it stays at 10 percent, he noted, that could result in a market share hike of 2 percent.
But it is too early to know which way GM consideration will go, he added.
(Read more...)
Posted by Michelle Krebs at 9:35 AM under Analysis , GM , Personalities | Comments (6) | digg this | del.icio.us
Hyundai, Mitsubishi Out of Chrysler Engine-Making JV
Two of the three partners in the Global Engine Manufacturing Alliance are bowing out, leaving Chrysler Group LLC with a four-cylinder global engine family and lots of engine production 
capacity at a highly efficient plant in Dundee, Michigan
Hyundai Motor Co. and Mitsubishi Motors Corp. cut their ties with the GEMA venture last month, selling their shares to Chrysler for an undisclosed amount. The Dundee site began producing the jointly developed engines in October 2005. While two plants in Asia also produced the engines for Mitsubishi and Hyundai, the plan was for the two companies to also take engines supplied by the Dundee GEMA plant for vehicles Hyundai and Mitsubishi built in North America.
(Read more...)
Posted by Michelle Krebs at 4:16 AM under Analysis , Chrysler , Companies , Technology | Comments (1) | digg this | del.icio.us
Car Sales Recover From Clunker Chaos; Edmunds.com Sees 8.9 Million SAAR in September
The closely watched Seasonally Adjusted Annual Rate of sales for September to date is approximately 8.9 million vehicles, according to Edmunds.com calculations. Of the vehicles sold so far this month, 3.6 percent are "holdover" Cash for Clunkers orders that are being delivered.
The August SAAR at 14.1 million, was the highest of the year due to the government's Car Allowance Rebate System (CARS) program, known as Cash for Clunkers. Much concern has been expressed about how long and severe the Cash for Clunkers hangover would be.
"The industry is still experiencing a depressed level of sales, but we're seeing modest improvement from week to week," said Edmunds.com CEO Jeremy Anwyl. "Soon we should surpass the level that the industry was at before Cash for Clunkers launched."
(Read more...)
Posted by Michelle Krebs at 12:56 PM under Analysis | Comments (0) | digg this | del.icio.us
Cash for Clunkers Hangover Socks Early September Sales, Edmunds.com Forecasts
The first two weeks of September will see an annualized sales rate of 8.4 million, as the industry suffers a hangover from the Cash for Clunkers summer party, pulling the rate for the entire month to under 9 million, Edmunds.com forecasts.
But the hangover should subside near month's end. "If September plays out like the last two weeks did, we're looking at a Seasonally Adjusted Annualized Rate (SAAR) of sales of 8.4 million," said Edmunds.com Senior Analyst David Tompkins, Ph.D. "But the most likely scenario is that the pace of improvement will pick up through the month."
(Read more...)
Posted by Michelle Krebs at 12:20 PM under Analysis | Comments (0) | digg this | del.icio.us
New Math: Cash for Clunkers Numbers Don't Add Up
The government's Cash for Clunkers program made August an extraordinarily difficult month to predict. Analysts' forecasts for the month's annualized sales rate spanned an unprecedented 4 million range -- from a low of about 12 million to a high of 16 million. Edmunds.com's forecast proved too low at about 13.2 million.
But now the final numbers are in. The August SAAR tallied up to 14.1 million.
Still, some numbers simply don't add up.
(Read more...)
Posted by Michelle Krebs at 11:04 AM under Analysis , Featured | Comments (1) | digg this | del.icio.us
'Small' Could be the New 'Big' of the Pickup Market
Maybe America's love affair with pickup trucks isn't over. It's just getting smaller.
In both size and volume.
The recently ended federal Cash for Clunkers incentive was a giant boost for fuel-efficient cars. They dominated the top 10 list of new vehicles purchased by those trading clunkers. But if August sales reports are any indicator, more than a few of those Cash for Clunkers vouchers were used to buy midsize (formerly "compact") pickups.
(Read more...)
Posted by Michelle Krebs at 4:40 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
GM, eBay Extend Promotion; Edmunds.com Advises Consumers Make an Offer
General Motors and eBay Motors announced Tuesday they were extending their promotion that allows consumers to shop and start the buying process for Chevrolet, Buick, GMC and Pontiac vehicles voluntarily listed by the automaker's California dealers. The promotion, launched Aug. 11, was to expire Sept. 8 but has been extended through Sept. 30. It could eventually be rolled out nationally.
Meantime, Edmunds.com, parent of AutoObserver.com, has analyzed pricing of GM vehicles on eBay and is advising consumers to avoid the "Buy It Now" pricing option. Instead, consumers should choose the "Make an Offer" option. Otherwise, they are apt to pay too much.
(Read more...)
Posted by Michelle Krebs at 7:05 AM under Analysis , Companies , GM | Comments (0) | digg this | del.icio.us
Post-Clunkers Second Half Becomes Huge Sales Question Mark
The U.S. government's Cash for Clunkers program finished its job in August, boosting industry-wide U.S. sales to 1,261,799 vehicles, a 1.3-percent increase from a year earlier and a 26.7-percent boost from July, as American consumers rushed dealerships to turn in their well-used vehicles for more fuel-efficient new ones.
Automakers revisited long-abandoned, almost heady levels of sales, with the August results translating into a Seasonally Adjusted Annual Rate of 14.1 million units - equivalent to a yearly pace about five million units faster than the sales rate for the first half of this year, and much higher than the 10.5-million to 11-million-vehicle pace that industry executives still expect to prevail for the rest of 2009.
(Read more...)
Posted by Michelle Krebs at 9:57 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Automakers Spend Less on August Incentives, Thanks to Cash for Clunkers
With American taxpayers footing the bill for Cash for Clunkers, automakers were able to lower their spending on incentives in August. And, in fact, automakers may still have paid more than they needed to in incentives.
The average automotive manufacturer incentive was $2,475 per vehicle for every vehicle sold in August, Edmunds.com estimates. That's down $231, or 8.5 percent, from July and down $327, or 11.7 percent, from August 2008, continuing a downward trend of several months.
"The industry spent a record $3,165 per vehicle in March, but ever since then, incentives have continuously fallen," said Jessica Caldwell, Edmunds.com's director of Industry Analysis.
However, the story may change in the coming months, she added, with the Cash for Clunkers program over, vehicle inventories low due to production cutbacks and brisk clunker sales. But now, factories are ramping up production to fill up the pipeline again -- production that may come into a market that isn't in the mood for buying.
(Read more...)
Posted by Michelle Krebs at 7:36 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
August Car Sales: Wild Roller Coaster Ride
Thanks to the government's Cash-For-Clunkers program, new-vehicle sales bounced around throughout the month of August, one of the most volatile periods in automotive history. Edmunds.com predicts the annualized sales rate could land at just more than 13 million for the month.
"Cash for Clunkers sent the sales rate on a wild roller coaster ride," said Edmunds.com Senior Analyst Jessica Caldwell. She said the Seasonally Adjusted Annualized Rate (SAAR) of sales exceeded 19 million in late July - the peak of Cash-For-Clunkers selling - and fluctuated around the 15-million mark in early August. But the SAAR has plunged to an 8-million rate in the post-Clunkers final days of the month.
"Ending August on such a low note does not bode well for September," Caldwell warned.
(Read more...)
Posted by Michelle Krebs at 6:48 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (2) | digg this | del.icio.us
Post 'Clunkers,' Automakers Raising Production - Carefully
Prior to the Cash-For-Clunkers sales explosion, the last thing automakers would have considered was increasing production in their North American factories.
In answer to the worst industry sales slide in more than a generation, most had for more than a year being doing just the opposite - slashing production schedules - in an attempt to reduce bloated inventories suddenly and catastrophically out of line with consumer demand.
But Cash-For-Clunkers changed all that: in just four weeks, the federal incentive program squeezed more than a half-million buyers into showrooms. So much for that troublesome inventory.
Now the auto industry has to deal with the wholly unpredicted consequence of Cash-For-Clunkers' success: almost overnight, nobody has enough new vehicles to sell. And the equally ironic solution: raise production.
(Read more...)
Posted by Bill Visnic at 3:00 AM under Analysis , Chrysler , Companies , Featured , Ford , GM | Comments (2) | digg this | del.icio.us
Shutdown of Cash for Clunkers To Smack Down Industry Sales
Watch out for a world of sales pain now that the federal Cash for Clunkers rebate program is over, as data from Edmunds.com projects a serious decline in industry sales for the coming weeks.
Edmunds.com's proprietary tracking of purchase intent from visitors to its Web site -- which has proven to be a reliable leading indicator of actual near-term industry sales -- has plunged some 50 percent from its peak during the Cash for Clunkers program.
It is an effect analysts had warned was likely.
"Cash for Clunkers distorted the market in a way that benefited the industry for four weeks -- now the payback begins," said Edmunds.com CEO Jeremy Anwyl.
(Read more...)
Posted by Bill Visnic at 9:21 AM under Analysis , Business , Featured , News | Comments (3) | digg this | del.icio.us
GM Readies Break With Four Divisions, but Opel Intrigue Continues
With the news-dominating Cash for Clunkers program now officially finished, the auto industry can get back to normal: battling U.S. and global recessions and trying to figure out who's going to own half of the former divisions of General Motors Co.
The last month's news was devoted almost exclusively to Cash for Clunkers, so anybody could be forgiven for not being caught up on what's been happening with the sales of GM's Hummer, Saturn, Saab Automobiles and Adam Opel AG divisions. Here's the updated scorecard:
Opel
Suddenly, Opel is GM's problem child.
The company's board last week slapped down the bid from a consortium led by Canadian mega-supplier Magna International Inc., a deal that was favored by GM's management and had the vital blessing of the German government, which was to provide billions in assistance in exchange for Magna's vow to minimize job losses.
(Read more...)
Posted by Bill Visnic at 3:00 AM under Analysis , Business , Featured , GM , News | Comments (0) | digg this | del.icio.us
Despite Payback Fiasco, Dealers Will Regret End of Cash for Clunkers
The much-examined Cash for Clunkers new-vehicle rebate program ends August 24 and the armchair quarterbacking has already started. Most evaluations of the program will focus on the government's inability to quickly process applications and reimburse dealers for the $3,500 or $4,500 rebates given to buyers.
The backlog of payments certainly affected dealer cashflow, particularly for smaller operations.
But according to new data from Edmunds.com, dealers (and automakers, ultimately) did enjoy more than a few offsetting perks: Besides hiking sales volumes, the Cash for Clunkers program, along with the resulting accelerated reduction of new-vehicle inventories, was responsible for immediately jacking up average transaction prices, margins -- and dealer profit.
(Read more...)
Posted by Bill Visnic at 2:00 AM under Analysis , Business , Companies , Ford , GM , News | Comments (0) | digg this | del.icio.us
It's Dealers Versus DOT as "Clunkers" Program Set to Close
No auto dealer is complaining about the extra customer traffic the Cash for Clunkers program has generated in the past weeks. But although the federal program has been a solid lifeline in what surely would have been a dead summer for sales, the Car Allowance Rebate System (CARS) is amounting to the ultimate in profitless prosperity for too many dealers.
Complicating the situation, data from Edmunds.com indicates that with the program nearing its conclusion - just announced to be Monday, Aug. 24 - Cash for Clunkers transactions are slowing markedly from highs of 40 percent or more of all new-vehicle sales to less than one in five new-car deals.
Despite the CARS program's undeniable invigoration of previously tomblike showrooms, angry and dispirited dealers across the nation said they had no choice but to give up on Cash for Clunkers participation. The government was so slow in repaying the $3,500 or $4,500 rebates they literally couldn't afford to keep selling new vehicles.
The government foot-dragging was so endangering the final days of the CARS program that General Motors Co., Toyota Motor Corp., Honda Motor Co. Ltd. and others stepped in today to say they will provide cash advances on Cash for Clunkers transactions so dealers don't have to wait for the feds to pay up.
(Read more...)
Posted by Bill Visnic at 9:18 AM under Analysis , Business , Featured , GM , In the Media , News | Comments (7) | digg this | del.icio.us
GM Cancels "Vue-ick" Crossover
Barely a week after showing it and many other pending new models and concept vehicles to the media and a select group of the public, General Motors Co. is pulling the plug on a Buick variant of the Chevrolet Equinox/GMC Terrain compact crossover the company only first confirmed weeks ago it would build.
The company announced the new Buick crossover just last month during a high-profile industry conference at which the recently-emerged-from-bankruptcy GM seemingly sought to generate some positive news. So the company said Buick -- the brand's minders still flush with the comparative success of the Enclave full-size crossover -- would try again to catch lightning in a bottle with its own model based on GM's global compact crossover architecture.
Better still, Buick would launch a plug-in hybrid variant in 2011, allowing GM to get some green mileage from the investment it made in the plug-in technology originally intended for the Saturn Vue version of this crossover family.
All that was before the media and GM's hand-picked "civilian" viewers got a look at the still-unnamed Buick, though.
(Read more...)
Posted by Bill Visnic at 12:26 AM under Analysis , Featured , GM , News | Comments (1) | digg this | del.icio.us
GM, Honda Latest To Boost Production as Cash for Clunkers Resuscitates Small-Car Sales
General Motors Co. and Honda Motor Co. Ltd. are the latest automakers to spool up U.S. vehicle production to answer inventories depleted by the ongoing "Cash for Clunkers" new-vehicle rebate program.
GM will add one day shift at the Orion Township, Michigan, plant that assembles the Chevrolet Malibu midsize sedan; the plant currently is on a four-day work week. Also ramping up with the addition of a two-shift day will be the automaker's plant in Lordstown, Ohio, that produces the Chevrolet Cobalt compact cars, Dow Jones reported.
GM is expected to announce more production increases as it adjusts a third-quarter output that had been drastically reduced from year-ago levels. In extending the Car Allowance Rebate System, the official name of Cash for Clunkers, from the original $1 billion in funding to a total of $3 billion, the program has put unanticipated pressure on the stock of many of the most popular vehicles purchased by those trading clunkers.
(Read more...)
Posted by Bill Visnic at 12:20 AM under Analysis , Featured , Ford , GM , News | Comments (1) | digg this | del.icio.us
Ford's Top Clunker Trades, Buys as Cash for Clunker Pace Slows, Edmunds.com Finds
Ford vehicles topped the most recent list of clunkers traded in and models bought to replace 
those clunkers as the Cash for Clunker frenzy slowed some from its end-of-July peak, Edmunds.com finds.
The Seasonally Adjusted Annualized Rate (SAAR) of vehicle sales dipped to a still high of 16 million for the first week of August. By comparison, the SAAR for the peak week of the government's Car Allowance Rebate System (CARS) -- the last week of July -- was 19.6 million.
From the CARS July 24 launch to August 7, the Ford Explorer SUV and Ford F-150 pickup truck were the No. 1 and No. 2 vehicles, respectively, traded in as official clunkers, according to Edmunds.com's calculations.
The Ford Escape and Ford Focus ranked No. 1 and No. 2, respectively, for vehicles purchased to replace those clunkers, according to Edmunds.com.
(Read more...)
Posted by Michelle Krebs at 11:17 AM under Analysis , Companies , Featured , Ford | Comments (6) | digg this | del.icio.us
Cash for Clunkers Interest Slowing; Could Run Out of Steam Next Week
Interest in the Cash for Clunkers program is slowing, and, if the current trend continues, vehicle sales could be back to pre-Cash for Clunkers levels by August 20, Edmunds.com calculates.
Edmunds.com's analysis of purchase intent on the car-shopping Web site shows sales activity tied to the government's Car Allowance Rebate System (CARS) remains well above the period leading up to its July 27 public launch.
However, activity is 15 percent below the peak of the Cash for Clunkers frenzy, which occurred the last week of July and specifically on July 29. Barring any intervention such as a major incentive program or a significant uptick in the economy, sales will be back to pre-clunker levels by next week.
(Read more...)
Posted by Michelle Krebs at 2:02 PM under Analysis , Companies , Featured | Comments (4) | digg this | del.icio.us
Why Toyota Must Make Its Joint-Venture Coupe
The case of the maybe-we're-making-it-or-maybe-we're-not Toyota-Subaru joint-venture sport
coupe was solved by new Toyota Motor Corp. president Akio Toyoda when he told reporters this week he was prioritizing development of the rear-drive car.
Although the coupe's development program was known, its status as a "live" project has been the topic of speculation. Toyoda's comment confirmed the company is committed to the project.
As the new president of the company, Toyoda, seemingly to underscore his dedication to addressing the conservative corporate culture that is perceived as holding Toyota back, said this week of the sport coupe, "I am very excited about it and I plan to put it on the fast track."
(Read more...)
Posted by Michelle Krebs at 5:09 AM under Analysis , Featured , Toyota | Comments (5) | digg this | del.icio.us
Cash for Clunkers Generated 19.6 Million SAAR in July Week, Edmunds.com Calculates
Cash for Clunkers definitely grabbed the attention of the American car buy.
Edmunds.com calculates that the Seasonally Adjusted Annualized Rate (SAAR) of sales in the last week of July hit a whopping 19.6 million. The SAAR for the month was pulled up to 12.5 million -- its highest level in a about a year, thanks to the end-of-month sales surge.
"There is no question that the program has generated results. The shopping activity we've witnessed has generated a SAAR of 19.6 million, remarkable compared with the industry's sales record of 17.4 million set in 2000," noted Edmunds.com Senior Analyst Jessica Caldwell. "Of course, this level of activity will not continue, as it reflects the behavior of those anxious and able to participate in the program -- and that is a limited set of people."
In the months just before Cash for Clunkers launched, 39 percent of new car sales involved a trade-in. Since then, 51 percent do. Prior to the program, nearly 9 percent of trade-ins were vehicles that would have qualified as "clunkers." Since the launch, 39 percent of trade-ins qualify.
Posted by Michelle Krebs at 5:54 AM under Analysis , Companies | Comments (0) | digg this | del.icio.us
Updated Data Revises Some Hybrid Payback Times
Armed with more detailed 2010 model-year data regarding hybrid-electric vehicle pricing,
incentives and equipment levels that affects payback times, data analysts at Edmunds.com
are issuing revised payback times recently listed for several hybrid models.
Most notably, the battle between Toyota Motor Corp.'s new Prius and the equally new 2010 Insight from Honda Motor Co. Ltd. draws considerably closer than Edmunds.com's analysis originally reported.
(Read more...)
Posted by Michelle Krebs at 1:45 PM under Analysis , Companies , Technology , Toyota | Comments (0) | digg this | del.icio.us
Cash for Clunkers Drives Consumers to Fuel-Efficient Choices, Edmunds.com Reports
Should the federal government fund a Cash for Clunkers extension, and is it worth the added
$2 billion cost as an economic and environmental stimulus?
Those are the questions the Senate considered this week as it debated the extension the House already passed. Data based on real Cash for Clunker transactions by Edmunds.com shows clearly vehicles turned in as clunkers -- mostly gas-guzzling trucks and SUVs -- would have been traded in at some point even without the program.
However, those vehicles were traded for vehicles that were more likely to be cars than trucks or SUVS and vehicles that deliver better fuel economy with the $3,500 to $4,500 government vouchers provided under the Car Allowance Rebate System (CARS).
Further, the clunker plan appears to have had a rub-off effect. The program created a feeding frenzy, with the last week of July generating a seasonally adjusted selling rate of a stunning 19.6 million vehicles. And those consumers buying vehicles regardless of trade-ins opted for smaller, more fuel-efficient cars during the Cash for Clunker program at a higher than usual rate.
(Read more...)
Posted by Michelle Krebs at 12:34 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (4) | digg this | del.icio.us
Feds: Cash for Clunkers Saving Gas
Pressing U.S. Senators to pass a $2-billion extension to the Car Allowance Rebate System
(CARS) -- the riotously accepted "Cash For Clunkers" program projected to run through its original $1 billion backing in little more than a week - the Obama administration is citing the program's impact on reducing fuel consumption.
A note from the administration reportedly being distributed to lawmakers says the average fuel-economy gain between traded-in clunkers and the new vehicles purchased to replace them is 9.6 miles per gallon -- a 61 percent improvement. Purchased vehicles that improve fuel economy by at least 4 mpg net the clunker owner $3,500. New vehicles that achieve 10 mpg or better than the clunker they replace win the owner a $4,500 CARS rebate.
(Read more...)
Posted by Michelle Krebs at 3:55 AM under Analysis , Companies , Ford , GM | Comments (6) | digg this | del.icio.us
Cash for Clunkers Delivers July Sales Spike -- But Now What?
The crescendo of activity in American auto showrooms around the Cash for Clunkers program late last week produced a correspondingly huge surge in U.S. auto sales, and consumers kept scrounging through the weekend for fuel-efficient vehicles to buy under the generous government rebates.
Consequently, sales for all of July for the industry came up only 12 percent short of their level a year ago - when $4-a-gallon gasoline also was goosing shopper interest in fuel-efficient vehicles.
(Read more...)
Posted by Michelle Krebs at 12:09 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (9) | digg this | del.icio.us
Which Runs Out First: Cash for Clunkers or Cars?
The race is on for which will run out first: government funding for Cash for Clunkers or the cars
popular for purchase by clunker traders.
The U.S. House handily passed a Cash for Clunkers extension that provides an added $2 billion to the program, bringing the total to $3 billion. The Senate takes up the matter this week where it faces more challenge by Democrats, who want higher fuel-economy requirements for the new vehicle bought with the clunker trade, and Republicans, who oppose more spending.
At the same time, consumers who are ditching their clunkers for the $3,500 or $4,500 credit toward the purchase of a new, more fuel-efficient vehicle face a dwindling selection and supply of the more popular vehicles.
Dozens of vehicles that are popular as clunker trades had under the ideal 60-day supply at the beginning of the month, Edmunds.com's analysis of inventory numbers showed. And those inventory levels are based on June sales -- before the Car Allowance Retail System (CARS) program kicked in July 24. More up-to-date inventory numbers won't be available until July sales are reported by manufacturers Monday.
(Read more...)
Posted by Michelle Krebs at 8:22 AM under Analysis , Companies , Featured , Ford , Toyota | Comments (1) | digg this | del.icio.us
Production Cuts Help Lower July Incentives, Edmunds.com Estimates
Car buyers took advantage of incentives in July, but they came from the government through the Cash for Clunkers program more than from auto manufacturers, which actually lowered incentive spending from June, Edmunds.com estimates.
The average automotive manufacturer incentive was $2,735 per vehicle in July, down $134, or 4.7 percent, from June, and up $90, or 3.4 percent, from July 2008. Historically, incentives spending increased between June and July.
"Comparing June with July, incentives usually increase between $50 and $200 per car sold, but this year they are down $134 per car," said Jessica Caldwell, Edmunds.com's manager of Pricing and Industry Analysis. "The Cash for Clunkers frenzy has given automakers the opportunity to reduce their own investment in creating sales momentum, and to maximize profitability in the process."
(Read more...)
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Chrysler To Continue With Cruiser; Plans With Fiat Changing?
Chrysler Group LLC said Friday it will continue production of the PT Cruiser compact wagon, although the company announced more than 18 months ago the car would be discontinued.
Chrysler restarted production in mid-June at the Toluca, Mexico, assembly plant that builds the PT Cruiser and the Dodge Journey crossover. It was one of seven Chrysler plants to resume production after an extended temporary shutdown as Chrysler dealt with ongoing inventory difficulties and its eventual bankruptcy and change in ownership.
(Read more...)
Posted by Michelle Krebs at 5:40 PM under Analysis , Chrysler , News | Comments (0) | digg this | del.icio.us
Cash for Clunkers Generates Interest, Sales Along With Confusion, Complaints
Cash for Clunkers is generating new-car sales and showroom traffic for dealers but is also
creating confusion and drawing complaints with consumers and dealers.
As of early Wednesday afternoon, the Department of Transportation had processed 16,351 transactions under the officially called Car Allowance Rebate System (CARS) for for a total of $68.9 million worth of deals through 22,300 dealers registered to participate. Congress has appropriated $1 billion for the program, which runs through November 1 or when the money runs out and includes costs to administer the program.
As of Thursday morning, the CARS site showed $858 million remaining to fund the clunker plan.
(Read more...)
Posted by Michelle Krebs at 8:05 AM under Analysis , Companies , Featured | Comments (3) | digg this | del.icio.us
Diesels Paying Back Quicker Than Hybrids, Edmunds.com Reports
With gasoline and diesel fuel prices staying low -- and uncharacteristically consistent -- as
the summer progresses, data analysts at Edmunds.com
, parent of AutoObserver
, did a recent crunch of the often-discussed payback times for the nation's two competing fuel-saving drivetrains: hybrid-electric and diesel-engine vehicles.
The latest round goes to diesel.
There are two factors currently working in diesel's favor. First, diesel fuel prices have dropped precipitously since last summer's explosion to $4 per gallon (and beyond) and normalized to pricing quite near regular unleaded gasoline.
(Read more...)
Posted by Michelle Krebs at 5:06 AM under Analysis , Companies , Featured | Comments (6) | digg this | del.icio.us
The Inconvenient Truth About "Cash for Clunkers" Is $20K Per Sale In Taxpayer Cash
Much has been written - both pro and con - about the so-called Cash for Clunkers program
that officially launched Monday.
Complexity, limited eligibility and minimal funding are common criticisms, but a chief filing of the program, according to Edmunds.com CEO Jeremy Anwyl is the cost to taxpayers. Even if Cash for Clunkers reaches its budgeted cap of $1 billion, the program will only help drive about 50,000 incremental new car sales, each of which will cost taxpayers a whopping $20,000, according to Edmunds.com's research.
(Read more...)
Posted by Michelle Krebs at 9:16 AM under Analysis , Commentary , Companies | Comments (6) | digg this | del.icio.us
Cash for Clunker Trades Show 59 Percent Fuel Economy Boost, Hyundai Says
Hyundai Motor America said its early statistics on Cash for Clunker trades show an average 59 percent fuel economy gain between the clunker and the new vehicle purchased.
Hyundai became the first automaker to honor the government's Cash for Clunkers program- officially called Car Allowance Rebate System (CARS) -even though program rules were just released on Friday morning. At that same time, dealers began to sign up to administer the vouchers, which range from $3,500 to $4,500. Processing for the vouchers begins Monday.
(Read more...)
Posted by Michelle Krebs at 6:24 AM under Analysis , Companies , Featured | Comments (3) | digg this | del.icio.us
Cash for Clunkers Could Push July SAAR To 10 Million, Edmunds.com Forecasts
The Cash for Clunkers program that's just kicking into gear and summer sell-down events offered by manufacturers could push July's selling rate over the long-hoped-for 10-million rate, Edmunds.com forecasts.
July vehicle sales, both retail and fleet, are expected to be about 950,000 units, for a nearly 10.5 million Seasonally Adjusted Annualized Rate (SAAR), according to Edmunds.com's forecast.
July sales, to be reported by automakers Aug. 4, would be down 16 percent from last July, but up nearly 11 percent from June, according to Edmunds.com's forecast.
(Read more...)
Posted by Michelle Krebs at 9:37 AM under Analysis , Companies , Featured | Comments (3) | digg this | del.icio.us
Cylinder Count Ain't What It Used To Be
By Bill Visnic
DEARBORN, Michigan -- Here we go again. In a repeat of not-too-successful experiments of the past, automakers are once again going to see if luxury-car buyers will go for four-cylinder engines.
General Motors Corp.'s Buick will offer a base version of its new 2010 LaCrosse upper-midsize sedan later this year with a four-cylinder under the hood. GM execs have also said the Cadillac division won't rule it out.
The Lexus HS 250h goes on sale next month, and although attention will focus on the fact that it's a hybrid, the HS 250h still is working with a four-cylinder engine -- a first for Toyota Motor Corp.'s premium division.
(Read more...)
Posted by Michelle Krebs at 3:36 AM under Analysis , Companies , Featured , Ford | Comments (10) | digg this | del.icio.us
New Kids on the Block Become Important to Their Brands
By Michelle Krebs
Some of the newest vehicles introduced in the first half of 2009 are quickly becoming extremely important to their brands, according to an analysis by Edmunds.com
.
The crossover Audi Q5 has soared to become the No. 2 bestseller for the Audi brand behind the A4 upon which it is based. Though its sales numbers sound low at 5,670 sold in the first half, the Q5 now represents a whopping 17 percent of Audi's total sales.
(Read more...)
Posted by Michelle Krebs at 2:42 PM under Analysis , Companies | Comments (1) | digg this | del.icio.us
100,000 Plus Car Shoppers Waiting to Buy, Edmunds.com Calculates
SANTA MONICA, Calif. -- More than 100,000 car shoppers have been preparing to buy a car,
but haven't yet made the purchase and as a result July vehicle sales are likely to be on par with June sales.
"There has been a recent surge of purchase intent on the Edmunds.com shopping site that has not translated into sales," Edmunds.com Senior Analyst David Tompkins, PhD told AutoObserver.com.
"Given that this volume represents about 10 percent of the current market, automakers and dealers should find a way to capitalize on the opportunity and entice these folks to make a deal," Tompkins added.
(Read more...)
Posted by Michelle Krebs at 10:37 AM under Analysis , Companies , Featured | Comments (2) | digg this | del.icio.us
Pontiac G8: The World's Best Car Nobody Was Buying
By Bill Visnic
On the FastLane blog
at General Motors Co.'s Web site, vice chairman Bob Lutz now concedes the company can't make a business case for rebadging the suddenly lamented Pontiac G8 sport sedan, the car that caused a first-week-on-the-job train wreck between Lutz's vision of GM's product-strategy future and that of CEO Fritz Henderson.
Days before and barely hours into his return to GM's salaried-exec payroll, Lutz said GM was going to rebadge the underappreciated, Australia-sourced Pontiac G8 as a Chevrolet, calling it a car "too good to waste."
The pronouncement flew directly against an earlier thumbs-down verdict about the G8 from Henderson, who said he does not favor rebadging and insists every model in GM's line "pay its own rent."
(Read more...)
Posted by Michelle Krebs at 4:32 AM under Analysis , Featured , GM , Personalities | Comments (7) | digg this | del.icio.us
No 10 Million SAAR, but a Couple Glimmers of Hope
The annualized rate of car sales failed to hit the magical, hoped-for number of 10 million in June, but a couple of positive signs have come emerged in June, according to an analysis of June sales by Edmunds.com.
The time it takes for new vehicles to sell dropped from May to June as did the incentive spending needed to move the metal.
(Read more...)
Posted by Michelle Krebs at 2:10 PM under Analysis , Companies | Comments (0) | digg this | del.icio.us
Plant Closings May Not Be Over For GM
By Bill Visnic
When General Motors Corp. announced 14 plant closings or standby shutdowns as part of its bankruptcy restructuring, the news hit hard - particularly for the thousands of workers tied to those facilities.
GM, which emerged from bankruptcy last Friday, has acknowledged its manufacturing empire must be smaller, leaner and meaner to match its emaciated market share as well as its profitable rivals' costs. While 14 facilities sounds like a lot, the move may not go far enough for the consolidation required to align production with the demands of a company with only four divisions.
(Read more...)
Posted by Michelle Krebs at 5:17 AM under Analysis , Featured , GM | Comments (0) | digg this | del.icio.us
GM, Chrysler Still Weak As Ford Could Win Share, Report Forecasts
General Motors and Chrysler will be challenged by weak future product plans while Ford
stands to gain market share with a relatively strong future product plan, a new report says.
Called Car Wars, the annual competitive analysis is produced by Banc of America Securities-Merrill Lynch and reported on by the Detroit Free Press Thursday, predicts:
- GM's market share losses will be greater than the automaker expects because of its skimpy future product plan;
- Chrysler's weak product pipeline is "an ominous sign"
- Ford's relatively strong future product plan could help it gain market share.
(Read more...)
Posted by Michelle Krebs at 8:03 AM under Analysis , Chrysler , Ford , GM | Comments (3) | digg this | del.icio.us
Consumers Find New, Remade Models More Appealing Than Ever, J. D. Power Finds
By Michelle Krebs
Like Sally Field when accepting her Best Actress Oscar, consumers seemed to be saying of
their new and redesigned vehicles "You like me ... you really like me."
Indeed, J. D. Power and Associates 2009 APEAL study, released Thursday, consumer satisfaction with their new and redesigned models at a three-year high. Report highlights include:
- Porsche ranked highest among nameplates for a fifth consecutive year;
- Volkswagen captured four segment-level awards--more than any other vehicle nameplate in 2009;
- new and redesigned models scored higher than last year's new and redesigned models and higher than this year's carryover models.
- seven new and redesigned models ranked highest in their respective segments: Dodge Challenger; Ford F-150; Ford Flex; Hyundai Genesis; Nissan Maxima; Volkswagen CC and Volkswagen Tiguan.
(Read more...)
Posted by Michelle Krebs at 7:07 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Auto Manufacturing Could Give Factory Output Boost From 12-Year Low
U.S. industrial production is being dragged down by the lowest auto and auto parts
manufacturing in more than a decade, but it could get a boost from vehicle output as plants crank up production in the coming months.
The government reported Wednesday that U.S. industrial production fell again in
June for the 17th consecutive month to its lowest level since July 1998.
But good news was the drop was smaller than experts had forecasted and it was the smallest decline in more than a year, suggesting manufacturing is stabilizing.
The automotive sector continued to drag down all factory output because of extended General Motors and Chrysler factory shutdowns during their bankruptcies. However, a major bump in vehicle production is expected this quarter.
(Read more...)
Posted by Michelle Krebs at 9:20 AM under Analysis , Chrysler , Companies , GM | Comments (0) | digg this | del.icio.us
Half-Time Scores: Winners Lose The Least; Subaru Ultimate Winner
By Michelle Krebs
The first six months of this year - one of the worst periods in recent history for vehicle sales - is over, so it's time to look at the leader board.
And as in golf, the automakers with the lowest scores win. Every automaker selling vehicles in the U.S. posted a sales decline, with the total industry recorded a 35.1-percent drop in sales for the first six months compared with the year-ago half, according to Edmunds.com's analysis.
The "winners" were those that lost the least.
So in this era when flat is the new up, Subaru was the ultimate winner. On the strength of its newly redesigned, award-winning Forester, Subaru recorded a scant 0.8 percent year-to-year sales decline.
(Read more...)
Posted by Michelle Krebs at 7:34 AM under Analysis , Companies , Featured | Comments (2) | digg this | del.icio.us
Cars Rule First-Half Sales; Toyota Camry Ranks No. 1
By Michelle Krebs
Cars ruled first-half 2009 vehicle sales, according to Edmunds.com's
analysis.
The Toyota Camry ranked No. 1 in vehicle sales for the first six months. The Honda Accord came in second, trailing the Camry by about 6,200 vehicles.
The two midsize cars overtook two full-size pickup trucks that often hold the top sales spots -- Ford F-150 and Chevrolet Silverado, respectively.
Honda had the most models among the Top 10 bestsellers wth the Accord, Civic and CR-V.
Toyota, Ford and General Motors' Chevrolet division each had two on the Top 10 list. Nissan, with its Altima, rounded out the list.
(Read more...)
Posted by Michelle Krebs at 2:18 PM under Analysis , Companies | Comments (0) | digg this | del.icio.us
Half-Time Report: Market Share Gainers, Losers; Hyundai Gains Most
By Michelle Krebs
Hyundai, buoyed by the Genesis and the brand's value proposition, was the winner in gaining the most market share for the first half of 2009
compared with the first six months of 2008, according to Edmunds.com's
analysis.
Kia, Subaru, Ford and Volkswagen were also gainers in the first six months.
The biggest loser was the Chrysler brand, followed closely by its sibling Dodge brand. Also big losers in market share were General Motors' Chevrolet and Saturn divisions. Toyota also lost.
(Read more...)
Posted by Michelle Krebs at 1:56 PM under Analysis , Companies | Comments (1) | digg this | del.icio.us
From Russia With - Snags?
By Bill Visnic
The Russian connection is becoming a complicated one for General Motors Corp.
GM, emerging from Chapter 11 bankruptcy in the U.S. while simultaneously working to offload its Adam Opel AG division and operations in Europe, looked to have sealed the Opel deal with a consortium including Canada's Magna International Inc. and Russian automaker GAZ.
But last week, it appeared the presence of GAZ was a fly in the ointment, as GM (and perhaps other interests) reputedly balked at GAZ gaining access to certain GM technologies via the Opel purchase.
(Read more...)
Posted by Michelle Krebs at 3:38 AM under Analysis , Companies , GM | Comments (1) | digg this | del.icio.us
Industry Fails To Climb Back to 10-Million SAAR; Culprit Likely Cash For Clunkers
By Bill Visnic
With several industry consultants and analysts predicting U.S. auto sales
would exceed a 10-million-unit Seasonally Adjusted Annualized Rate in June -- a much-anticipated watershed many believed would signal slumping auto sales are beginning a consistent recovery -- the real numbers didn't quite match the optimistic projections.
Instead, June's SAAR not only failed to hit the 10-million mark, the 9.66-million final tally even regressed from May's figure, according to data analysts at Edmunds.com.
One likely (but unintentional) culprit: the new "Cash for Clunkers" legislation signed by President Obama on June 24.
(Read more...)
Posted by Michelle Krebs at 5:21 AM under Analysis , Companies | Comments (1) | digg this | del.icio.us
Led by Surging Ford, June Sales Ratcheted Reassuringly
By Dale Buss, Michelle Krebs and Bill Visnic
Automakers expressed more optimism about the U.S. car market despite the fact that overall sales in June fell by 28 percent compared with a year ago, to 859,420 vehicles. That represents only a slight improvement in year-ago comparisons over results for the first five months of this year.
Jesse Toprak, executive director of Industry Analysis for Edmunds.com, characterized the month cautiously. "It means, if nothing else, that things are not getting any worse, although things are not getting that much better, either. There was a lot of volatility, but there were signs of life."
Toprak added that June was "probably the best retail-demand month of the year."
(Read more...)
Posted by Michelle Krebs at 9:52 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , News , Toyota | Comments (6) | digg this | del.icio.us
June Car Sales Expected To Show Some Stabilization
Automakers selling vehicles in the U.S. report their June sales Wednesday, and the results are expected to show some stabilization in the business or at least a slowing of the decline.
The Seasonally Adjusted Annualized Rate (SAAR) is expected to come in at its highest level so far this year and could touch 10 million vehicles, according to a forecast by Edmunds.com, parent of AutoObserver.com.
(Read more...)
Posted by Michelle Krebs at 8:16 AM under Analysis , Companies | Comments (1) | digg this | del.icio.us
June Is Priciest Ever for Automaker Incentives, Edmunds.com Reports
SANTA MONICA, Calif. -- Automakers spent more in June on incentives than any June on record, Edmunds.com reports.
The average automaker incentive was $2,930 per vehicle sold in June up $489 -- or 20 percent, from a year ago, Edmunds.com estimates. Incentives were down a scant $22, or 0.8 percent, from May.
"June incentives have never been higher, but we anticipate that the tide is about to turn," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "The effects of recent production cuts are starting to be felt, and as supply dwindles, incentives will fall."
(Read more...)
Posted by Michelle Krebs at 4:42 AM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
"Good" GM: Maybe Not All That Good
By Bill Visnic
General Motors's Chapter 11 bankruptcy is winding its way toward completion -- perhaps even quicker than the lickety-split Chrysler bankruptcy restructuring. And everybody knows the plan, as it was with Chrysler, is to leverage the now-famous section 363 of the bankruptcy code to create a "good" GM that sallies forth with all of the company's best assets.
In addition to the numerous hard parts -- assembly plants, stamping facilities, powertrain- and other major component-making operations -- the "good" GM will comprise four major marketing divisions: Chevrolet, Cadillac, GMC and Buick.
Chevy need make no excuses: it is the domestic counterpart of Toyota, a sales channel for unapologetically mainstream cars and trucks that remains one of the most effective brands on the planet. 
But Buick, Cadillac and GMC? Be careful, "new" GM and Obama Administration Auto Industry Task Force: recent sales and market-share data compiled by Edmunds.com shows these brands may not be the rock-solid foundation for the leaner, meaner GM they've led the company's new taxpayer-owners to believe is coming.
(Read more...)
Posted by Michelle Krebs at 6:00 AM under Analysis , Featured , GM | Comments (9) | digg this | del.icio.us
GM To Close Louisiana Truck Plant
By Michelle Krebs
DETROIT -- General Motors will close its assembly plant and stamping operations in Shreveport, Louisiana, by 2012. The plant currently makes the midsize Chevrolet Colorado and GMC Canyon pickup trucks and Hummer H3 and H3T models.
It looked like only a few weeks ago that the Louisiana plant had dodged the plant-closing bullet when GM announced the sale of its Hummer brand to a Chinese company.
GM said then that if the sale goes through as planned during the third quarter, the Louisiana plant would be making Hummers for the new owner through "at least" 2010. Now the future of the H3, H3T -- as well as GM's small trucks -- is questionable.
(Read more...)
Posted by Michelle Krebs at 8:11 AM under Analysis | Comments (0) | digg this | del.icio.us
June Sales To Hit 10 Million SAAR; Detroit Share Improves, Edmunds.com Forecasts
SANTA MONICA, Calif. - June vehicle sales will hit their highest level of 2009 with a
Seasonally Adjusted Annualized Rate of 10.1 million when manufacturers report them Wednesday, Edmunds.com
forecasts.
"The SAAR is finally back in double-digits," observed Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "We're still a long way from 16 million unit sales, but things are moving in the right direction.
General Motors and Chrysler, which both were in Chapter 11 bankruptcy during the month, are expected to post market share gains in June compared with May, proving yet-again -- contrary to conventional wisdom -- that consumers will, indeed, buy cars from a bankrupt manufacturer, at least in these current tumultuous times.
Honda and Hyundai also are forecasted to show May-to-June market share gains. The gains come at the expense of share declines for Ford, Nissan and Toyota. Despite Ford's dip, the share for Detroit automakers is estimated to come in at 47.0 percent in June, up from 46.6 percent in June 2008 and from 46.5 percent in May.
(Read more...)
Posted by Michelle Krebs at 6:45 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
GM, Chrysler Models Top List of Slowest Sellers, Edmunds.com Reports
Vehicles sold by General Motors and Chrysler, both of which filed for Chapter 11 bankruptcy
in recent months, dominated a list of the 15 slowest sellers in May, according to an analysis by Edmunds.com
, parent of AutoObserver.com
.
Of the 15 slowest-selling vehicles, 12 were made by American automakers. GM and Chrysler dominated the list. Ford had one vehicle on the list - the Mustang.
"It's really a reflection of a misstep of the American automakers," Edmunds.com analyst Jessica Caldwell.
Models from Korean brands, Kia and Hyundai, rounded out the list of 15 slow sellers.
(Read more...)
Posted by Michelle Krebs at 2:36 PM under Analysis , Chrysler , Ford , GM | Comments (1) | digg this | del.icio.us
Vehicle Quality Improves Despite Bumpy Financial Ride
By Michelle Krebs
DETROIT -- The financial turbulence of the global auto industry has not hurt vehicle quality. Quite the opposite, according to new data released Monday by J.D. Power and Associates.
"Vehicle quality is better than it has ever been," Dave Sargent, J.D. Power's vice president of automotive research, told the Automotive Press Association here as he announced the results of the 2009 Initial Quality Study. The study measures defects reported by buyers in the first 90 days of ownership.
"There's a positive disconnect. There's no correlation between the financial side of the business and the production side," said Sargent. "Despite the turbulence on the business side and concern for the future of their own jobs, the people who design and build vehicles are getting on with their jobs and keeping their eye on the ball. That's remarkable."
(Read more...)
Posted by Michelle Krebs at 12:49 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , News , Toyota | Comments (0) | digg this | del.icio.us
New Incoming Rounds in Hybrid War
By Bill Visnic
When gasoline prices plunged early this year, sales of hybrid-electric vehicles went South, too.
Quickly.
The timing may be unfortunate, but major hybrid players Toyota Motor Corp. and Honda Motor Co. Ltd. launched new hybrids this spring -- and both seem determined to grub out a larger portion of the yo-yoing hybrid market. That battle, the latest summertime jump for gasoline prices and the U.S. auto market's continuing gyrations are once again cranking up the attention on hybrids.
(Read more...)
Posted by Bill Visnic at 8:51 AM under Analysis , Business , Companies , GM , Technology , Toyota | Comments (2) | digg this | del.icio.us
Cash for Clunkers Up for Votes This Week
The so-called Cash for Clunkers legislation is up for a vote in the U.S. House of Representatives Tuesday with a Senate vote to follow shortly. If passed, the measure should be in effect sometime between July and September.
The legislation, which allows consumers to receive vouchers worth up to $4,500 on their trade-ins of clunkers for more fuel-efficient vehicles, may generate added sales of about 500,000 new vehicles this year, said Jesse Toprak, executive director of Industry Analysis for Edmunds.com, parent of AutoObserver.com.
(Read more...)
Posted by Michelle Krebs at 6:55 AM under Analysis , Companies , News | Comments (0) | digg this | del.icio.us
In Trucks, Bare-Knuckles Marketing Continues
By Dale Buss
In a throwback to a simpler era, the new Ford F-150's drop-down tailgate step has become an entertaining flashpoint in the marketing war between heavyweights in the pickup-truck segment.
In a current TV ad for the Silverado, Chevrolet's celebrity pitchster, Howie Long, tweaks the addition of the "man step" to the F-150 as an embarrassment -- because it only helps make up for the unreasonably long reach required to get over the tailgate to the bed of the F-150.
But Ford executives assert that Chevy's gambit actually highlights an appealing innovation for potential truck buyers -- and makes them more likely to choose an F-150.
"Our steps have done very well, because they're selling at about 30 percent of the mix of our F-150s," said Doug Scott, Ford's truck marketing manager. "So I hope GM keeps running the ad [in which] they're panning it."
(Read more...)
Posted by Michelle Krebs at 12:02 PM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
Edmunds.com Announces Consumers' Top Rated Vehicle Awards
SANTA MONICA, Calif. -- Edmunds.com has announced the winners of the Edmunds.com Consumers' Top Rated vehicle awards for 2009.
The winners were chosen through Edmunds.com's Consumer Ratings and Reviews feature, which allows owners to evaluate their new or used vehicles in eight different categories: performance, comfort, fuel economy, driving impressions, interior design, exterior design, build quality and reliability.
(Read more...)
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Lexus Says Luxury Car Sales May Be Coming in From the Cold
By Bill Visnic and Michelle Krebs
DETROIT -- Admitting the industry and economic downturn has taken a hard toll on luxury-car sales and possibly altered, at least for awhile, customers' thinking about their "wants" versus their needs, the sales boss for Toyota Motor Sales USA's Lexus luxury division says the worst may have passed.
Mark Templin, Lexus group vice president and general manager, says luxury has been beaten down -- maybe even disproportionately in relation to the battered overall auto market -- but he believes customers will come back to luxury cars, despite enduring a once-in-a-generation recession.
(Read more...)
Posted by Michelle Krebs at 6:57 AM under Analysis , Companies , Featured , Technology , Toyota | Comments (0) | digg this | del.icio.us
May Car Sales: Flirting with 10-Million SAAR
By Bill Visnic, Mary Connelly, Michelle Krebs
DETROIT - It's far too premature to break out the champagne and even too early to finally call the absolute bottom of one of the worst auto sales slumps in decades. But May sales reports from auto manufacturers in the U.S. hinted the worst just may be over.
"We saw glimmers of hope in May sales reports," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com, parent of AutoObserver.com.
(Read more...)
Posted by Michelle Krebs at 10:58 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , News , Toyota | Comments (1) | digg this | del.icio.us
Japanese Automaker Incentives Hit New Record, Edmunds.com Estimates
SANTA MONICA -- Proof that the U.S. car market is in chaos: two automakers in bankruptcy are generating huge interest from car shoppers; Japanese automakers are spending record amounts on incentives, and luxury-maker Mercedes-Benz was the highest incentive spender of all brands in May.
"The industry is chaotic right now and every automaker is struggling to find something that works," stated Jesse Toprak, executive director of Industry Analysis for Edmunds.com. "Many of the bankrupt brands are drawing an impressive amount of attention from bargain-hunters, but the rest of the automakers have their work cut out for them."
As auto company sales reports poured in Tuesday, Edmunds.com estimated the average automotive manufacturer incentive in the U.S. was $2,946 per vehicle sold in May, down $111, or 3.6 percent, from April, and up $622, or 26.8 percent, from May 2008.
(Read more...)
Posted by Michelle Krebs at 9:35 AM under Analysis , Companies , Featured | Comments (0) | digg this | del.icio.us
May Car Sales: Ever-So-Small Hint of Hope
SANTA MONICA, Calif. -- May car sales, due to be reported by auto manufacturer Tuesday, remain off by double-digits from last year, but the sales increase from April to May is in line with typical April-May seasonal bumps and the drop from a year ago is largely due to lower fleet sales, according to Edmunds.com's forecast.
For May, manufacturers are expected to report new vehicle sales -- retail and fleet -- of 890,000 units, a 36.1 percent decrease from the 1.4 million sold in May 2008 but an 8.9 percent increase from the 817,000 sold in April. A typical seasonal increase between April and May is a 9 percent rise. When adjusted for this difference in the number of selling days in May versus a year ago, sales decreased 33.6 percent.
That would put the Seasonally Adjusted Annualized Rate at about 9.5 million vehicles, up from 9.3 million in April.
(Read more...)
Posted by Michelle Krebs at 8:24 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
End in Sight for U.S. Recession; Recovery Modest
The end is in sight for the recession, the worst in U.S. history since World War II that is now in its 17th month, but the recovery will be modest, a new poll indicates.
The survey of 45 professional forecasters released by the National Association of Business Economists (NABE) Wednesday showed about three-quarters expected the economic downturn to end by the third quarter of this year. The other quarter said the upturn would be in the fourth quarter this year or early 2010. None believed it would go beyond the first quarter of 2010.
However, of those who saw an upcoming recovery, they predicted a more moderate one compared with those after previous downturns because of continued job losses and plummeting home prices.
The survey comes on the heels of U.S. consumer confidence, still at historically depressed levels, surged to its highest level this month since last September.
Posted by Michelle Krebs at 10:03 AM under Analysis , Business | Comments (0) | digg this | del.icio.us
Diesel-Fuel Price Plunges; Will Engines Be Revived?
By Bill Visnic
The price of diesel fuel dipped to less than the price of a gallon of regular unleaded gasoline earlier this month, according to the Energy Information Administration (EIA).
The price inversion followed what the EIA said is a "traditional" spring transition for the price of the two fuels. But it also ends extensive auto-industry hand-wringing about the price of diesel, which for some time has not followed historic patterns and many blame for derailing ambitious plans to launch diesel-powered light vehicles in the U.S. market.
(Read more...)
Posted by Michelle Krebs at 7:27 AM under Analysis , Companies , Technology | Comments (2) | digg this | del.icio.us
Consumer Car-Buying Intent Rises With Confidence
Consumer confidence, a key factor in car buying, rose in May by the most in six years and
at a level not seen since last September.
What must be music to automakers' ears is the fact that the Conference Board's report showed that Americans planning to buy a car in the next six months rose to the highest level since April 2008.
The Conference Board's index came in significantly higher than expected at 54.9. The Conference Board cited as reasons for the rise as more optimism about the future job market, climbing stock prices, falling mortgage rates and speculation that the recession's end is in sight.
(Read more...)
Posted by Michelle Krebs at 11:25 AM under Analysis , Companies | Comments (1) | digg this | del.icio.us
Feds' New MPG Mandate May Collide With Buyer Preferences
By Bill Visnic
The Obama administration's "Kennedy moment" of announcing high-minded new Corporate Average Fuel Economy (CAFE) standards of 39 miles per gallon for passenger cars and 30 mpg for light trucks by 2016 drew kudos across the nation this week -- even from the automakers.
The new CAFE numbers sound great. But judging by the popularity of the vehicles on sale right now that comply with the ambitious new targets, car buyers might not stampede to get their hands on the future high-mileage wunderkars.
To be blunt, many of today's vehicles that can comply with the new CAFE numbers -- mostly compact or subcompact cars, hybrid-electric vehicles or four-cylinder crossovers or pickups -- are not exactly sales overachievers. For example, of the 100 most purchased vehicles in the U.S., only 17 could comply with the new fuel economy standards.
(Read more...)
Posted by Michelle Krebs at 12:01 PM under Analysis , Chrysler , Companies , Featured | Comments (16) | digg this | del.icio.us
Terminated Chrysler Dealers Offer Bargains, Earn Slim Profits, Edmunds.com Reports
SANTA MONICA, California -- Chrysler dealerships, whose franchise agreements have been terminated by the automaker effective June 9, are making significantly less profit on each vehicle sale, in large part, because they are offering the best deals to customers, Edmunds.com's analysis shows.
Profit margins for ill-fated Dodge dealerships are currently earning about $825 less per car, while closing Jeep dealerships are earning approximately $1,200 less per car.
(Read more...)
Posted by Michelle Krebs at 6:18 AM under Analysis , Chrysler | Comments (0) | digg this | del.icio.us
CAFE, EPA Math: 35 Equals 26
By Michelle Krebs
One fully expected those gathered Wednesday in the White House rose garden -- environmentalists, captains of the global auto industry and government officials -- to break out into a rousing chorus of Kumbaya.
Everybody, including dueling parties normally at odds, expressed their delight with President Obama's announcement of the more stringent and earlier-than-planned fuel-economy and emissions standards that would be applied from sea to shining sea.
However, as in all things involving politics, the new fuel-economy standards aren't what they seem.
"Turns out that there are loopholes almost big enough to drive an SUV through," quipped Edmunds.com CEO Jeremy Anwyl.
(Read more...)
Posted by Michelle Krebs at 6:51 AM under Analysis , Companies , Featured | Comments (4) | digg this | del.icio.us
Pickups Sales Plunging But Ford Buyers Spending More - What Gives?
By Bill Visnic
DETROIT -- By now, everyone knows the raw sales numbers are bloody red: the full-size pickup market was one of the first to be savaged by last summer's high gasoline prices and by the end of 2008, pffft -- five points of market share and some three-quarters of a million units were gone.
Maybe never to return. At least to the segment's former glories.
But there may be a sliver of a silver lining in the pickup sales plunge. At least one automaker -- Ford Motor Co. -- says those still buying pickups are splurging. Since its launch late last year, the "mix" of Ford's new '09 F-Series has been unexpectedly rich, slanted toward more expensive and heavily optioned models and trim levels.
The best example: the F-Series' ultra-plush Platinum -- the new top-of-the-line trim level -- has run at 8 percent of the total F-Series mix. Ford predicted a 3 percent take rate.
(Read more...)
Posted by Bill Visnic at 6:00 AM under Analysis , Business , Companies , Featured , Ford | Comments (1) | digg this | del.icio.us
Cash for Clunkers: Sales Boom If Quick; Bust If It Stalls
SANTA MONICA, Calif. -- A Cash for Clunkers program edging its way through Congress could create a desperately needed sales boom for automakers and their dealers if Congress moves quickly, according to Edmunds.com's analysis.
However, if legislation lingers in Congress too long, new-car sales could stall as consumers wait for the final program to be passed.
"Congress needs to pull the trigger," says Edmunds.com CEO Jeremy Anwyl. "The more the publicity on Cash for Clunkers, the more likely sales will drop off as people wait."
(Read more...)
Posted by Michelle Krebs at 4:15 AM under Analysis , Commentary , Companies | Comments (8) | digg this | del.icio.us
The Obama Bounce? Chrysler Purchase Intent Up, Edmunds.com Says
SANTA MONICA, Calif. -- Despite General Motors and Chrysler executives insisting for months that the spigot for sales and shoppers would shut off with a bankruptcy filing, quite the opposite has occurred with Chrysler of late, according to data collected by Edmunds.com
, parent of AutoObserver.com
.
On Thursday, Chrysler filed for Chapter 11 reorganization in bankruptcy court. Since then, the visitors on Edmunds.com's Web site who are shopping for Chrysler models shot up 15 percent. By comparison, GM's shopping consideration dropped 6 percent since Thursday and Ford's was up 7 percent.
"Maybe It's the Obama bounce," suggests Edmunds.com CEO Jeremy Anwyl.
(Read more...)
Posted by Michelle Krebs at 11:50 AM under Analysis , Chrysler | Comments (0) | digg this | del.icio.us
Chrysler's Challenge: Finding Customers During Bankruptcy
By Michelle Krebs
DETROIT -- Chrysler has launched a major advertising campaign, to be coupled with a cash and dealer incentives, in its effort to convince new buyers to purchase Chrysler, Dodge and Jeep vehicles and keep current owners in the fold.
But even before it officially filed for Chapter 11 bankruptcy last Thursday, Chrysler was struggling to maintain its once-loyal buyers. In the months leading up to Chrysler's bankruptcy filing -- and despite some of the highest incentives ever in the U.S. auto industry doled out by Chrysler -- the automaker's customer loyalty has dropped on the news of its financial duress. Customer loyalty fell below 50 percent in April, according to Edmunds.com's data. That is, less than half of Chrysler owners who traded in their vehicle did so for another Chrysler, Dodge or Jeep vehicle.
(Read more...)
Posted by Michelle Krebs at 9:43 AM under Analysis , Business , Chrysler , Featured | Comments (0) | digg this | del.icio.us
Saturn Blazed Ahead of Its Time, Then Faded Into Oblivion
By Dale Buss
Around mid-February when General Motors placed Saturn on the chopping block, number-crunchers at Edmunds.com
were shocked to discover how badly the brand had eroded -- already more than a year ago.
Edmunds.com figures showed that way back in January 2008, Saturn customers were demonstrating the least loyalty of any in the entire U.S. auto industry: Fewer than 5 percent of those who traded in a Saturn purchased another one.
That paltry showing contrasted with a loyalty factor for all of 2008 of more than 51 percent for Subaru, nearly 49 percent for Hyundai, and more than 47 percent even for Saturn's sibling brand, Chevrolet.
"Saturn's numbers even back then were horrendous," said Jessica Caldwell, industry analyst for Santa Monica, California-based Edmunds. "They had lost their message along the way. Saturn wasn't sporty, wasn't utility-oriented, wasn't even necessarily value-oriented. It had just become a one-off of other GM products."
(Read more...)
Posted by Michelle Krebs at 12:12 PM under Analysis , Featured , GM | Comments (4) | digg this | del.icio.us
High Incentives Spending May Be Hurting Some More than Helping, Says Edmunds.com
SANTA MONICA, Calif. - Sky-high incentives spending is reaching a point of diminishing returns and actually may be hurting some automakers more than helping.
"For some automakers, March's high incentives diluted brand image and hurt residual values while delivering only a negligible lift in sales," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com. "The April sales reports may prove that there is a point of diminishing returns for incentives spending."
(Read more...)
Posted by Michelle Krebs at 10:54 AM under Analysis , Companies | Comments (0) | digg this | del.icio.us
April Car Sales: The Bottom's Around Here Somewhere
By Dale Buss, Michelle Krebs and Bill Visnic
April's auto sales numbers looked pretty much like those from March, and February, and January - abysmal. Industrywide sales plunged by 34 percent last month compared with a year earlier, continuing the first-quarter trend of dreadful comparisons tied to a moribund economy.
But in those April results, carmaker executives and analysts on Friday also thought they saw more than just the latest in a long string of awful comparisons with 2008. Almost to a person, they interpreted April's performance and other economic data as painting at least a near bottom of the dreadful U.S. car market - and as the harbinger of an eventual recovery.
"We won't truly be able to call the bottom until summer when we can look back at three consecutive months of increase in the annualized rate of sales," said Jesse Toprak, executive director of industry analysis for Edmunds.com. "We had expected April would be the start of that. And April's annualized sales rate, while lower than March, still didn't dip to February level."
(Read more...)
Posted by Michelle Krebs at 8:49 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (2) | digg this | del.icio.us
April Auto Sales: SAAR Rises to 10 Million, Edmunds.com Forecasts
SANTA MONICA, Calif. -- April vehicle sales are looking like they will come in at a Seasonally Adjusted Annualized Rate of 10 million. That's certainly nothing to brag about in normal times and compared with the last decade. Still, April looks to be the best month in several and up from 9.1 million in February.
"The industry is slowly picking up much-needed momentum; a 'cash for clunkers program' could help while an automaker bankruptcy could hurt, depending on how consumer confidence is affected," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com.
(Read more...)
Posted by Michelle Krebs at 5:48 PM under Analysis , Chrysler , Companies , Ford , GM | Comments (0) | digg this | del.icio.us
Ford To Report Hefty Loss, but Remain Loan-Free
Ford Motor Co. reports its first-quarter financial results on Friday and is expected to lose
$3.2 billion for its largest first-quarter loss in 17 years, according to the average of analysts by four analysts surveyed by Bloomberg News
.
Still, Bloomberg reported, Ford is likely to be able to steer clear of loans from the U.S. government, like those as General Motors and Chrysler have required. Loan-free Ford is expected to benefit from loan-laden GM and Chrysler, who still may be forced into bankruptcy. Analysts believe Ford has made enough cost reductions to maintain sufficient liquidity to 2010.
Posted by Michelle Krebs at 7:11 AM under Analysis , Ford | Comments (0) | digg this | del.icio.us
Goldman Ups Its 2009 Car Sales Forecast
Goldman Sachs has increased its forecast for 2009 new vehicle sales from 10 million to 11 million.
Goldman analyst Patrick Archambault said his optimism comes from the likelihood that Congress will pass a cash-for-clunkers bill, one that could add 750,000 to 1 million vehicle sales this year as consumers turn in their old cars for new new ones for a government rebate. Archambault also sees improvement in consumer confidence.
(Read more...)
Posted by Michelle Krebs at 6:56 AM under Analysis , Companies , Ford | Comments (2) | digg this | del.icio.us
GM Extends Summer Breaks To Slash Bloated Inventories
By Michelle Krebs
DETROIT - General Motors plans to extend its usual summer shutdown from two weeks to as much as two months for many of its North American assembly plants as it attempts to reduce its record-high inventories of unsold vehicles.
GM's inventories, among the highest in the industry, are the highest since Edmunds.com began keeping records. Sales, and in turn revenues, have not picked up as GM had hoped as the slow sales months of the summer approach.
The move clearly is anticipation as well of a possible Chapter 11 filing that, GM has long argued, would shut off the sales tap even further as customers steered clear of a bankrupt company.
(Read more...)
Posted by Michelle Krebs at 5:13 AM under Analysis , Featured , GM | Comments (2) | digg this | del.icio.us
Toyota Prius Beats Honda Insight in Edmunds' Inside Line Comparison Test
SANTA MONICA, Calif. -- The 2010 Toyota Prius beat the 2010 Honda Insight in a
comparison test conducted by Inside Line
, Edmunds.com's
online enthusiast car magazine.
"The 2010 Toyota Prius is quicker, it stops shorter and, with its smoother ride quality and quieter cabin, it's the one you want to be in when commuting," says Erin Riches, Edmunds' Inside Line senior editor.
In the comparison test, the 2010 Honda Insight was praised for its steering and for the responsiveness of its continuously variable transmission (CVT).
(Read more...)
Posted by Michelle Krebs at 5:12 AM under Analysis , Companies , Technology , Toyota | Comments (0) | digg this | del.icio.us
Bankruptcy Expert: GM "Quick Rinse" Bankruptcy Risks "Rinse And Repeat"
DETROIT -- Reports have heated up of late that General Motors will file for Chapter 11
bankruptcy in late spring or early summer, emerging as a smaller but viable company in as little as two weeks or two to four months at most in a so-called "quick rinse" bankruptcy.
Both of these scenarios are exceedingly optimistic, say bankruptcy experts at the Detroit-based law firm of Plunkett Cooney. And done too quickly, a GM bankruptcy may become a 'rinse and repeat' bankruptcy," said Doug Bernstein, head of Plunkett Cooney's Banking, Bankruptcy and Creditors' Rights practice group.
(Read more...)
Posted by Michelle Krebs at 5:50 AM under Analysis , Chrysler , Companies , GM | Comments (0) | digg this | del.icio.us
Chrysler-Fiat: "Value" for Fiat Means "Free"
By Bill Visnic
With a May 1 deadline to make a deal with stakeholders -- a prerequisite of subsequently partnering with Fiat S.p.A. -- bearing down on Chrysler LLC lest the Obama administration's Auto Task Force take Chrysler into some form of bankruptcy, the posturing is heating up, particularly from Fiat Chief Executive Office Sergio Marchionne.
First, Marchionne threatened Fiat will deep-six its offer to tie up with Chrysler if the company cannot wrest further wage concessions from its U.S. and Canadian labor unions, concessions presumably to bring wages to parity with non-unionized Japanese transplant automakers in the U.S.
The unsubtle warning failed to immediately produce the desired result from either the United Auto Workers or the Canadian auto workers unions.
(Read more...)
Posted by Michelle Krebs at 4:18 AM under Analysis , Chrysler , Commentary , Featured | Comments (0) | digg this | del.icio.us
U.S. Manufacturing Slashing Cost Gap
A new study brings a glimmer of positive news for the embattled U.S. manufacturing sector,
saying U.S. producers are making headway in reducing structural costs.
The Manufacturing Institute and the Manufacturers Alliance/MAPI says U.S. manufacturers have reduced five primary structural-cost measures compared with foreign manufacturers that make a comparable product, according to a commentary in the Pittsburgh Post-Gazette.
The study, aided by the accounting firm of Deloitte and reported by Deloitte employee Dmitri D. Shiry to the Post-Gazette, says the structural-cost "gap" between U.S. manufacturers and foreign producers making a similar product was cut to 17.6 percent in 2007 versus 31.7 percent in 2006. The 2006 disadvantage of 31.7 percent was a markedly worse figure than 2004's structural-cost gap of 22.4 percent.
(Read more...)
Posted by Michelle Krebs at 4:54 AM under Analysis , Commentary , Companies | Comments (0) | digg this | del.icio.us
Take My Pickup - Please
By Bill Visnic
Headlines declared the auto industry achieved a showroom mini-victory in March by markedly improving sales over a dismal February. But the improved numbers were something like lipstick on a pig as March's boost nonetheless concealed some ugly realities.
One of the most foreboding trends to continue despite the March uptick: the still-accelerating plunge of the full-size pickup truck market. If segment sales do not stabilize this year, revenue-ravaged automakers may have to take drastic measures.
(Read more...)
Posted by Michelle Krebs at 10:42 AM under Analysis , Chrysler , Featured , Ford , GM | Comments (2) | digg this | del.icio.us
Chevrolet Camaro Wins Edmunds' Inside Line Muscle Car Comparison Test
SANTA MONICA, Calif. -- Inside Line, Edmunds.com's online car magazine and sister site
of AutoObserver.com
, announced Wednesday that the 2010 Chevrolet Camaro SS took first place in its latest comparison test of iconic muscle cars.
The comparison is described in full at the 2010 Chevy Camaro SS vs. 2009 Dodge Challenger R/T vs. 2010 Ford Mustang GT Comparison Test.
"Car enthusiasts can rejoice that all three of these legendary pony cars have made a comeback," says Jay Kavanagh, Edmunds' Inside Line Engineering Editor. "But the 2010 Chevrolet Camaro SS leads the pack with its combination of power, speed and attitude."
(Read more...)
Posted by Michelle Krebs at 9:59 AM under Analysis , Chrysler , Commentary , Companies , Ford , GM | Comments (0) | digg this | del.icio.us
Smallest Cars Perform Poorly in Crashes With Bigger Cars, IIHS Confirms
WASHINGTON -- Turns out, auto engineers have been right all along: size matters and you
can't defy physics in crashes.
The latest report from the Insurance Institute for Highway Safety (IIHS) shows that even the best small cars do poorly in head-on collisions even with only somewhat bigger midsize sedans from the same manufacturer.
"Minicars as a group do a comparatively poor job of protecting people in crashes, simply because they're smaller and lighter," Adrian Lund, president of the insurance industry-funded group, said in a statement. "In collisions with bigger vehicles, the forces acting on the smaller ones are higher."
The IIHS notes that frontal crashes are the most dangerous traffic accidents, causing about 15,000 out of roughly 40,000 U.S. traffic deaths annually.
(Read more...)
Posted by Michelle Krebs at 8:29 AM under Analysis , Companies , News , Technology | Comments (2) | digg this | del.icio.us
BMW, Toyota Named Among Most Ethical Companies
BMW and Toyota were the only two auto companies to make the list of 99 of the world's most ethical companies in the Ethisphere Institute's third annual rankings announced Monday.
"The mission of our group is to improve corporate behavior," said Alex Brigham, executive director of the international think-tank based in New York dedicated to the advancement of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
(Read more...)
Posted by Michelle Krebs at 11:55 AM under Analysis , Companies , Toyota | Comments (0) | digg this | del.icio.us
Saturn Dealers Lose Hope, Close Stores
Saturn dealerships are closing at a steady rate despite pleas from General Motors
executives to hold on, trade journal Automotive News
reports.
On January 1, Saturn had 420 stores in the United States. That dropped to 405 on February 15 and 384 on April 6. Last week, three dealerships in the Kansas City area and one in Springfield, Missouri, closed.
Saturn and its dealers are looking for an alternative ownership situation, one that may allow for the distribution of non-Saturn and non-GM products, including those from emerging markets like China and India.
(Read more...)
Posted by Michelle Krebs at 10:59 AM under Analysis , GM , In the Media | Comments (0) | digg this | del.icio.us
GM Told To Prepare for Quick Bankruptcy, Paper Reports
NEW YORK -- Yet another newspaper report claims General Motors is preparing to file for
bankruptcy at the urging of the Obama administration.
This time, it is The New York Times reporting in Sunday's edition that the U.S. Treasury Department is directing the automaker to lay the groundwork for a bankruptcy filing by June 1.
Citing unnamed sources supposedly briefed on the GM's plans, the Times reports the goal is to prepare for a fast "surgical" bankruptcy if the automaker can't reach agreement with bondholders and the United Automobile Workers union for a debt-for-equity swap.
(Read more...)
Posted by Michelle Krebs at 9:23 AM under Analysis , Chrysler , Companies , GM , In the Media | Comments (0) | digg this | del.icio.us
GM, Chrysler Bankruptcies Have Beneficiaries, Report Says
LONDON -- It's not all doom and gloom if General Motors and Chrysler go bankrupt, a new report says. In fact, some automakers will benefit from their bankruptcy.
GM and Chrysler competitors could gain pre-tax profit of more than $24 billion if the companies are forced to dramatically downsize after some kind of bankruptcy, says a report from Bernstein Research in London and reported on by the Detroit News.
In the U.S., Ford would benefit most with GM and Chrysler customers deflecting to its brand. Ford would be followed by the Japanese automakers and Germany's Volkswagen.
(Read more...)
Posted by Michelle Krebs at 9:19 AM under Analysis , Chrysler , Companies , Ford , GM | Comments (1) | digg this | del.icio.us
Studies: Throttle Back on Highway Privatization
By Bill Visnic
Two new studies released by pubic-interest organizations are putting up the orange cones on the growing trend toward privatization of public roadways.
The Pittsburgh Post-Gazette reports this week that the wide-ranging U.S. Public Interest Research Group warns of "big potential downsides for the public" in road privatization schemes.
The Post-Gazette also quoted the PIRG-developed "Private Roads, Public Costs" report as saying, "Road privatization offers a hard-to-resist 'quick fix' for state budget and transportation challenges. But there are hidden costs to privatization."
(Read more...)
Posted by Michelle Krebs at 4:22 AM under Analysis , News | Comments (0) | digg this | del.icio.us
Europe Sees New Cars Cheaper Than Used, Too
Europe is now experiencing the same counterintuitive phenomenon that was recently noted in the States: that some new cars are selling for less than their used counterparts.
The Financial Times in London points out in a story published Thursday that aggressive discounts on new vehicles and a shortage of high-quality, late-model used cars that has pushed up used car prices is resulting in new cars selling for less than used cars.
Earlier this month, an analysis by Edmunds.com, parent of AutoObserver.com, showed the same situation in the U.S.
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Customers Prefer No-Bailout Ford, Edmunds.com Reports
SANTA MONICA, Calif. -- Ford's choice and ability to avoid taking loans from U.S.
government is paying dividends in increased shopping by consumers.
An analysis of shopping on its Web site by Edmunds.com, parent of AutoObserver.com, shows the number of visitors who shopped for Ford vehicles in the first three months of this year rose 12 percent compared with the same period a year ago.
At the same time, the number of shoppers considering vehicles from General Motors and Chrysler, both of which have taken loans from the U.S. government, declined 19 percent and 15 percent respectively during the same period.
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Chrysler's Italian Lifeline Full of Knots
By Bill Visnic
With fewer than 30 days now to cement a partnership with Italy's Fiat S.p.A. or else, Chrysler LLC's prospects for survival -- at least in something resembling its current form -- are slimmer than the lapels on Fiat President Luca Cordero di Montezemolo's suit.
Thirty days to structure a complex, transcontinental and cross-cultural manufacturing and product-development alliance when both companies are in financial distress, auto markets on their home continents are dangerously depressed -- and their respective top management as recently as last week wasn't even on the same
page regarding the most basic elements of the deal?
Auto-industry alliances often do not turn out well -- and can be assumed not to begin any better when devised under the condition that one party has a date in bankruptcy court if the plan doesn't happen.
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March Car Sales Show Signs of Life
By Michelle Krebs and Bill Visnic
A late-month uptick caused March car and truck sales to surpass forecasters' expectations, providing a glimmer of hope to the U.S. auto industry that the long and ugly drought is nearing an end.
"We started to see some signs of life in the March numbers," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com, parent of AutoObserver.com. His remark echoed similar comments made by auto company executives and analysts as they delivered their March sales results Wednesday.
Particularly encouraging to everyone was the rise in the annualized rate and the above-average hike in sales from February to March.
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Incentives Set All-Time Record, Edmunds.com Reports
By Michelle Krebs
SANTA MONICA, Calif. -- Automaker incentives set a new all-time high in March, even though it appears they didn't help sales much, according to Edmunds.com
.
The average automotive manufacturer incentive was $3,169 per vehicle sold in March, the highest industry average on record.
"Automakers are pulling every lever in their effort to attract buyers, as evidenced by the new programs from Ford and General Motors," stated Jesse Toprak, Edmunds' executive director of Industry Analysis. "The typical incentive programs simply do not resonate in today's economy."
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March Car Sales Look a Lot Like February Car Sales
By Michelle Krebs
SANTA MONICA, Calif. -- March car sales to be reported April 1 by manufacturers look a lot like February car sales, and that's not a good thing since March traditionally marks the kick off of the busy spring selling season.
"If sales continue at this pace all year, we're looking at a Seasonally Adjusted Annual Rate of only 8.9 million vehicles sold, which is slightly more than half of 2007 sales," said Edmunds.com CEO Jeremy Anwyl.
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Chrysler Rhetoric Gets Contradictory - and Desperate?
By Bill Visnic
AUBURN HILLS, Mich. -- In the weeks leading up to March 31, the day President Obama's auto industry task force gives some direction about whether the government will continue to invest billions to keep General Motors and Chrysler afloat, Chrysler executives have spoken in terms that seem to indicate a festering anxiety at the company's headquarters here.
In some cases, executives have issued threats. Some have deeply contradicted one another. Always-provocative CEO Bob Nardelli has contradicted himself.
And last Thursday, Chrysler Chief Financial Officer Ron Kolka violated the spirit of "we're all in this together" with probably the most inflammatory -- and reckless -- remark yet; Bloomberg News reported Kolka as saying Chrysler could be considered more deserving than GM of receiving continued government assistance.
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Survey Says: Americans Oppose Government Auto Loans
DETROIT -- And here comes yet another survey showing that Americans oppose government loans to General Motors and Chrysler, just as the two face a March 31 deadline to convince the government they have made progress, deserve to keep the money they've received and should get more.
This survey comes from Detroit-based R.L. Polk & Co., released on Monday. It shows 61 percent of Americans oppose the loans.
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Abu Dhabi Investor Becomes Daimler's Biggest Shareholder
By Michelle Krebs
Even the seemingly strong and mighty need help in this dismal economic environment as was proven over the weekend when Germany's Daimler AG, parent of Mercedes-Benz, sold nearly $3 billion worth of shares to an Abu Dhabi investment firm. The stock sales will generate much-needed cash for the automaker and give Daimler a single large shareholder to ward off any potential takeover by an outsider.
The two companies announced Sunday night that Aabar Investments PJSC would buy 96.4 million of new Daimler shares for $2.7 billion. Aabar, with a 9.1 percent stake in Daimler, now becomes Daimler's largest shareholder.
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Some New Cars Now Less Expensive than Used Cars, Edmunds.com Reports
SANTA MONICA, Calif. - The deals on some new cars are so generous that they actually
make the new car less expensive than the one-year old used version of the same model, according to a pricing analysis by Edmunds.com
, parent of AutoObserver.com
.
"Compared with new vehicles sales - which are at lows unseen in decades - the used car market is doing well," observed Edmunds.com CEO Jeremy Anwyl. "Desirable used vehicles are becoming harder to find, pushing up their prices, while today's new cars are heavily discounted. This is creating an unusual economic event: It can actually be less expensive to purchase a new car than a used car."
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Buick, Jaguar Tops For Vehicle Dependability
By Michelle Krebs
WESTLAKE VILLAGE, Calif. - Buick and Jaguar ranked highest in vehicle dependability, in a tie for first place in the J.D. Power and Associates 2009 Vehicle Dependability Study released Thursday morning.
Buick climbed to the top this year from sixth place in the 2008 rankings; Jaguar moved up from 10th place. Both surpassed Toyota and its luxury division Lexus, though Toyota and Lexus immediately followed in the No. 3 and 4 spots while also nabbing the most individual categories for vehicle dependability.
"Buick has ranked among the top 10 nameplates each year since the study was last redesigned in 2003, while Jaguar has moved rapidly up the rankings," David Sargent, vice president of automotive research at J.D. Power and Associates, said in a statement.
"Lexus remains a very strong competitor in long-term quality. In particular, the Lexus LS 430 sets the industry standard for dependability, with fewer problems reported than any other model in the study," Sargent added.
(Read more...)
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Incentives Not Letting Up -- Even for New Products
By Bill Visnic
With industry sales continuing to grenade and analysts continuing to revise downward their 2009 full-year forecasts, the watchword in the market is "incentives" -- even for many new and relatively new models.
The need to put money immediately on the hood must be painful for automakers seeking to improve their cash flow positions, but ongoing credit pressure and flagging consumer confidence seemingly have left few options, even for models that in a normal environment likely would have been considered incentive-proof (at least for awhile).
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Despite Economy, Auto Shows Remain Crucial Marketing Stage
By Dale Buss
Nissan just announced that it plans to stay away from the North American International Auto Show in Detroit next year, as the company did this year. It also plans to skip other major U.S. shows and dozens of smaller ones scattered across the country, as well as the Frankfurt exhibition this September.
But as auto company executives, suppliers and the global news media gathered in Geneva last week for one of the most prestigious regular shows, Nissan appears to be alone in its strategy of making draconian cuts in its annual exhibition budget to help get costs under control in this severe sales environment.
In fact, most other automakers -- even badly damaged Chrysler -- so far are making it a point to stick with their expensive investments in auto-show participation.
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Buyers, Buyers Everywhere - Or Is That 'Interested Parties?'
By Bill Visnic
With industry trade journal Automotive News this week quoting a spokesman from General Motors Corp.'s Saturn division as saying there are prospective buyers for the perpetually underachieving division, it occurred to AutoObserver that the auto-industry conventional wisdom on this subject is dead wrong: the global economic disintegration hasn't dissuaded anyone from considering investment in a money-bleeding car brand.
There are, in fact, buyers everywhere. After all:
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Ford Sales Dip Below Significant Mark
By Bill Visnic
When February sales were tallied this week, Ford Motor Co. reported aggregate sales for its Ford, Lincoln and Mercury brands of 96,044. It was the first time in Edmunds.com
sales data reaching back to 1991 that Ford monthly sales dipped below the 100,000-unit mark.
Even adding the 3,356 units sold last month by Ford-owned Volvo Cars couldn't buoy Ford above the 100,000-unit threshold.
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February Car Sales: Fearful Americans Hunker Down, Steer Clear of Dealer Showrooms
By Michelle Krebs and Bill Visnic
DETROIT - Americans, unemployed or fearing they will be, hunkered down last month, cutting their household budgets, squirreling away money and avoiding dealer showrooms as February car sales sunk to their lowest level of any February in more than four decades.
Automakers sold 691,073 vehicles in February, down 40.9 percent from the 1,168,729 they sold in February a year ago. That marked the lowest level of car sales for any February since 1967, according to General Motors' record books. That fact is even more eye-popping when population is considered: in 1967, the U.S. had 103 million registered drivers; today the nation has nearly twice that many.
And it put the closely-monitored Seasonally Adjusted Annualized Rate (SAAR) at 9.1 million vehicles, the lowest SAAR since 1982.
Not coincidentally, consumer confidence, a key indicator for how vehicle sales will fare, sunk to record lows in February, according to at least two measurements. And much of that has to do with dimming employment picture as well as dwindling household worth.
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Study Short-Circuits Chevy Volt as GM Stock Yo-Yos
By Bill Visnic
Shares in General Motors Corp. got on board for another broad U.S. stock market plunge Monday as a new study from researchers at uber-egghead Carnegie Mellon University says electricity-intensive hybrids such as GM's Chevrolet Volt "extended-range" electric vehicle won't be the ultimate environmental answer GM touts.
The Carnegie Mellon study, reported on by Edmunds Green Car Advisor Friday, is another setback for battered GM, whose stock price last week briefly visited a low -- $1.52 -- not seen since just after the Great Depression and today was again struggling to stay above the $2 mark as the Dow Jones Industrial Average slid to its own new lows. GM last week also reported an annual loss for 2008 of $30.9 billion, an amount exceeded in GM corporate history only by the $38 billion GM lost in 2007.
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Chrysler Restructuring Plan: Three Options, One Reality
By Bill Visnic
The restructuring plan Chrysler LLC submitted February 17 to the U.S. Department of Treasury maps three potential outcomes -- and all will be expensive.
Short of the most-drastic scenario -- liquidation -- Chrysler's other two options, if they are to lead to the company's long-term viability, are dependent on a number of questionable assumptions and one indisputable fact: If auto sales in the U.S. do not increase quickly and markedly, nothing Chrysler does is likely to pull it from its death spiral.
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Forecasters Slash Outlook for 2009 U.S. Car Sales
With another month of dismal sales predicted for February, three forecasts released this week revise U.S. car sales for 2009 downward.
- Edmunds.com has cut its forecast by more than a million units to 10.1 million vehicle sales for 2009.
- J.D. Power and Associates has shaved its forecast by a million vehicles as well. The company puts 2009 sales at 10.4 million vehicles, down from the previous forecast of 11.4 million.
- Even Ford Motor Co., which had one of the rosier forecasts, reported in government documents that it had reduced its downside outlook for the year to 10.5 million vehicles, the same amount GM said it had conservatively estimated.
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America Losing Interest in Keeping Detroit Afloat
A survey conducted by the USA Today newspaper and Gallup poll this week found only 25 percent of Americans believe the government should continue lending money to Detroit automakers.
"That's a huge, and fast, change of heart," said USA Today's Jim Healey, who added that in December, before the government approved emergency auto loans, 61 percent favored federal help for the automakers.
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UAW Cornered on VEBA?
By Bill Visnic
With the United Auto Workers (UAW) submitting to its rank and file a proposed Ford Motor Co. amendment to the 2007 labor contract that asks the UAW to accept half of Ford's obligation to the union's Voluntary Employee Benefit Association trust, UAW leadership appears to be choosing the lesser of potential evils.
If any of the Detroit Three automakers that owe payments to the VEBA -- an amount totaling nearly $60 billion -- declare or are otherwise forced into bankruptcy, the trust that was established to fund health-care costs for UAW retirees could be shattered, says one bankruptcy expert.
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Car Owners Hanging Onto Their Current Rides
Car owners, as suspected, are hanging onto their current vehicles longer -- and longer and longer.
The average age of trade-ins has been edging higher every year since 2004, according to recent data compiled by Edmunds.com, parent of AutoObserver.com. Today, the average age of a trade-in is nearly six years old, more than a year older than its counterpart five years ago.
In 2004, the average trade-in was 4.32 years old. For 2008, the average trade-in was 5.3 years old. In the first two months of this year, the age jumped to 5.95 years old.
Source: Edmunds.com
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February Car Sales: Consumers Sit the Month Out Again
By Michelle Krebs
SANTA MONICA, Calif. -- The still-deteriorating economy and the continued uncertainty about employment kept consumers away from buying new cars again in February despite the record-breaking deals available to them.
February car sales, to be posted by automakers Tuesday, are expected to be down about 40 percent from a year ago to 685,000 vehicles sold for the month, according to Edmunds.com, parent of AutoObserver.com.
That puts the closely watched Seasonally Adjusted Annual Rate (SAAR) for the month at 9.3 million vehicles, down from 9.6 million the previous month.
"The fluctuation in car sales and the instability of the stock market are just two examples of the volatility in the marketplace, which is wreaking havoc on consumer confidence and hampering any economic recovery," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis.
(Read more...)
Posted by Michelle Krebs at 10:13 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Hyundai, Audi Deliver Oscar-Winning Performances
By Michelle Krebs
SANTA MONICA, Calif. -- Hyundai and Audi delivered a one-two punch with their Super Bowl commercials and now their ads on Sunday night's Academy Awards program.
For both events, both automakers scored a significant boost in Edmunds.com's car-shopping Web site, according to analysis of the ads' impact by the Santa Monica, California, company.
"This is proof that when you have a powerful message, television advertising still works," noted Jeremy Anwyl, CEO of Edmunds.com, parent of AutoObserver.com.
(Read more...)
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GM State of Mind Revealed in New Restructuring Plan
By Bill Visnic
Details in the hundred pages-plus of General Motors Corp.'s 2009-2014 restructuring plan submitted to the U.S. Dept. of Treasury last week show the General to be confident and optimistic on several matters regarding its survival and planned revival. Perhaps exceedingly so.
And GM offers more than a few intriguing strategic and business-plan revelations that are worthy at least of a raised eyebrow.
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Half-Million Recent New Car Shoppers Steered to Used Cars, Edmunds.com Reports
SANTA MONICA, Calif. -- At a time when automakers are desperate for every sale that they
can make, a significant number of shoppers are drifting out of the new-car market and purchasing a used car instead.
Edmunds.com has determined that approximately 510,800 used cars sold in the past three months would have been new-car sales in a different economy. In manufacturing terms, that amounts to about two assembly plants of new-car production.
Projecting ahead, this could represent a seasonally adjusted annual rate (SAAR) of more than 2 million vehicles, which equates to more than 15 percent of total new-car sales.
(Read more...)
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Viability Day for GM, Chrysler: Is Bankruptcy Looming?
By Michelle Krebs
DETROIT -- Today is V-Day -- Viability Day -- for General Motors and Chrysler.
As part of their acceptance of $17.4 billion in government loans to stay afloat, the two must submit reports on their progress regarding how they are becoming economically viable.
Increasingly experts believe one or both ultimately will file for Chapter 11 reorganization under U.S. bankruptcy laws, particularly because auto sales have continued their plummet.
"If I were betting, I'd say it (Chapter 11 filing) will happen," said Douglas Bernstein, a lawyer specializing in bankruptcy and a managing partner with the Detroit law firm of Plunkett Cooney.
(Read more...)
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Chrysler-Nissan Project Put on Hold: What's Next for Both?
By Michelle Krebs
DETROIT -- Chrysler and Nissan have put on hold their proposed arrangement to build vehicles for each other as they each evaluate their deteriorating financial situations in a worsening global economy and historically dismal car market.
The two companies had announced last spring that Chrysler would build a Dodge Ram-based replacement for the Nissan Titan
while Nissan would provide Chrysler with Nissan-based small cars, one of which would be sold as the Dodge Hornet.
The on-hold project raises questions about Chrysler's ability to move forward with a partner and Nissan's product plans for North America.
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Chrysler Hit by Lawsuits; Is Bankruptcy A Way to Cope?
By Michelle Krebs
Chrysler has been socked by two lawsuits in as many days, prompting at least one expert to wonder if more lawsuits can be expected and force Chrysler into official bankruptcy proceedings.
French-based Faurecia has sued Chrysler, claiming the automaker owes the supplier $110 million for engineering and research costs as well as handing its research over to the Chinese.
Another lawsuit filed in Delaware charges Chrysler is automatically denying workers' compensation claims over a spinal-cord treatment for employees injured on the job. The suit seeks class-action status.
Meantime, a bankruptcy lawyer in Detroit suggests a flurry of lawsuits is often a reason for companies to file for bankruptcy.
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2009 U. S. Vehicle Sales Fall to 10.7 Million Units, Polk Forecasts
DETROIT -- U.S. vehicle sales are expected to drop another 19 percent this year to to 10.7
million vehicles, according to the latest forecast from Detroit-based automotive research firm R.L. Polk & Co.
Polk estimates the 2009 sales split will be 8.5 million retail sales and 2.2 million fleet sales. The firm further predicts U.S. vehicle sales won't stabilize to the 16 million units annually seen in 2007 for a few more years at least.
"With the inability to use rising home prices to generate liquidity and tighter lending rules, the U.S. market stabilizing around 16 million units will occur within three to five years, depending on the efficiency of the government stimulus package, said Lionel Yron, Polk's director of Consulting & Analytics.
Global vehicle sales are expected to slow to 56.8 million vehicles in 2009, a 13 percent decline from 2008, according Polk. Vehicle sales in Western Europe will shrink to 13.5 million units this year, a 12 percent drop. Asia sales will fall to 12.4 million compared with 13.3 million last year, Polk says.
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Consumers Hit by Higher Loan Costs, Comerica Bank Says
DALLAS -- The affordability of motor vehicles -- and the wallets of consumers buying them -- took a hit in the fourth quarter of 2008 from the sharp rise in the average interest rate on car loans, the Dallas-based Comerica Bank reported Tuesday.
"The underlying data show quite clearly that car buyers are facing stringent financing conditions," said Comerica's Chief Economist Dana Johnson. "In the latest quarter, car buyers had to put down bigger down payments, pay higher interest rates, and limit the maturity of their loans."
(Read more...)
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Rapid Pace of Job Losses Not Seen Since 1974, Conference Board Says
The Conference Board's latest measurement of job losses shows a further fall in January, indicating a rapid pace of job losses and persistence in those job losses for several more months.
"The Employment Trends Index has recently been declining faster than at any time since the 1974 recession," said Gad Levanon, senior economist at The Conference Board, in a statement.
(Read more...)
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China's Geely Mentioned as Volvo Suitor
By Bill Visnic
Joining the list of auto companies denying they are interested in purchases of or alliances with other auto companies is China's Geely Automobile Holdings Ltd. -- one of the more prominent of the nation's numerous automakers -- which is denying talks with Ford Motor Co. about acquiring its Volvo Cars operation.
The Wall Street Journal
reported this week that Geely president Li Shufu said, "there are no such talks," and Ford, which has said it is shopping Volvo, would not comment.
(Read more...)
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Fleet Cutbacks Help Shrink January Sales to Early-1980s Levels
By Dale Buss and Bill Visnic
Two huge drags on the U.S. auto market - an utter lack of consumer confidence, and a paucity of credit -- persisted in January and were joined by a new one: at least a temporary evaporation of the fleet market.
Industry-wide sales in January cratered from a year earlier, falling by 36.9 percent, to about 677,000 units from 1.06 million vehicles sold in January 2008. The seasonally adjusted annual sales rate fell to fewer than 10 million units for the first time in more than 26 years. And the American auto business sold fewer cars than for any month since the depths of a recession in December 1981.
(Read more...)
Posted by Bill Visnic at 5:14 PM under Analysis , Business , Chrysler , Featured , Ford , GM , News , Toyota | Comments (2) | digg this | del.icio.us
Business Goals Play Bigger Role In What Consumers Pay For Cars, Edmunds.com's Analysis Shows
SANTA MONICA, Calif. - The business goal of a car dealer and the health of a financial institution may have more to do with the price a consumer pays for a car or the credit terms a consumer receives on a car loan than anything about the consumer personally.
An analysis by Edmunds.com, parent of AutoObserver.com, of vehicle prices paid by consumers and finance rates on their car loans shows an unusually wide range depending on where the consumer does business.
"The car business has been pummeled by the economic downturn, and individual dealerships are dealing with tough times in different ways," explained Edmunds.com CEO Jeremy Anwyl. "Some are offering substantial price cuts in order to close as many deals as possible, while others are striving to earn the highest possible profit on each sale."
(Read more...)
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Automakers Boost Incentive Spending, Edmunds.com Says
SANTA MONICA, Calif. - Automakers, in an effort to clear out old inventory and pare rising stockpiles of unsold cars, boosted incentive spending dramatically from a year ago, according to estimates calculated by Edmunds.com
, parent of AutoObserver.com
.
"Automakers need to clear out leftover inventory from the 2008 model year, and that effort is boosting the average incentive cost for the industry," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "Last month, 27 percent of all new vehicles sold were from the 2008 model year while during January 2008, only 12 percent of new vehicle sales were from the previous model year's inventory."
(Read more...)
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Certified Pre-Owned Sales Become Industry's Only Bright Spot
By Dale Buss
Search high and low through statistics about U.S. auto sales and you'll find practically nothing to brag about these days. But one silver lining does emerge: sales of "certified pre-owned" vehicles.
Even through the industry's darkest days, sales of certified pre-owned units for most automakers selling in the American market have been ahead of a year ago while, of course, new- car and general used-car sales have been declining at ferocious double-digit rates.
Not even a negative fourth quarter of 2008 could prevent a robust performance by CPO sales for the entire year: Sales for the segment actually rose by 1 percent last year over 2007, according to Edmunds.com.
(Read more...)
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Used-Car Sales Struggle, Along With Everything Else Auto
By Dale Buss
Used vehicles typically gain on new-car sales when times are tough because consumers scale back their expectations, and more of them settle for less expensive "pre-owned" products.
But these times are so tough that consumers are even discouraged from buying used vehicles. Even though they're considered classically to be less cyclical than new-car sales or even countercyclical to the new-car trend, this may be the worst year in two decades for used-car sales overall.
(Read more...)
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January Car Sales Drop From December on Fewer Fleet Sales, Edmunds.com Forecasts
SANTA MONICA, Calif. -- U.S. car and truck sales in January are expected to come in at a weak 730,000 units when automakers report them Tuesday.
January sales are expected to be down 18.1 percent from very weak sales in December, Edmunds.com estimates, largely due to significantly lower rental-car and corporate fleet sales. Retail sales will be about flat with December's.
"Our research indicates that retail sales are pretty much flat compared with December," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "However, automakers' decision to cut fleet sales and make other production cuts will cause a large sales decline to be recorded on the books."
(Read more...)
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Dealer Dilemma: Stuck With Old Models; Pressured To Order New Ones
By Michelle Krebs
DETROIT -- In Washington, the talk is of what cars automakers will produce in 2011, 2016 and 2020, but the auto industry faces an immediate demand: sell cars today.
Dealers, particularly, face a challenging dilemma as to just how to do that. The auto manufacturers, notably General Motors and Chrysler, are pressuring them to order more 2009 models so that factories can remain open and the automakers can book revenue.
Yet, dealers are buried with bulging stockpiles of old models, becoming increasingly expensive to keep and eating into their bottom-line. Yet, even hefty incentives aren't attracting buyers.
(Read more...)
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Chrysler-Fiat Alliance Gets More Interesting With PSA Presence
By Bill Visnic
Still digesting the possibilities and likelihood of the proposed alliance between Chrysler LLC and Fiat S.p.A? Add French automaker PSA Peugeot-Citroen to the mix.
The potential for a triumvirate comprised of Chrysler, Fiat and PSA either makes the situation more intriguing -- or more preposterous.
Reports from Europe saying suddenly hookup-hungry Fiat is building a war chest to fund a potential takeover of or, more likely, a merger with PSA were denied on Thursday, the same day Fiat's ability to sling money into any deal came under pressure as it revealed in its own shattered financials, including its heavy cash burn and a deeply cut profit forecast for 2009.
(Read more...)
Posted by Michelle Krebs at 6:25 AM under Analysis , Chrysler , Companies , Featured | Comments (1) | digg this | del.icio.us
Chrysler-Fiat Could Find Welcoming Marketplace, Experts Say
By Dale Buss
If the Chrysler-Fiat alliance makes it out of the crib, the
combination could provide each company with some potent new assets in the U.S. and global marketplace.
Chrysler could badge fuel-efficient, Fiat-based or -built small cars under its Chrysler brand and fill out the American industry's weakest car lineup as well as gain access to Fiat's
global retail network. Broader distribution of Chrysler's iconic Jeep brand -- into Asia, for instance -- would be one possibility.
(Read more...)
Posted by Michelle Krebs at 7:24 AM under Analysis , Business , Chrysler , Companies | Comments (0) | digg this | del.icio.us
U.S. Car Sales in January: More of the Same, GM Says
By Michelle Krebs
DETROIT -- Expect another month of dismal sales in January, a General Motors forecaster says.
"Don't be surprised to see a SAAR [seasonally adjusted selling rate] under 10 million vehicles," warned Mike DiGiovanni, GM's top sales analyst, said in a conference call with media and analysts Tuesday.
That's even lower than the SAAR of the previous three months, which ran at a rate of about 10.5 million each month.
(Read more...)
Posted by Michelle Krebs at 6:17 AM under Analysis , GM | Comments (1) | digg this | del.icio.us
COMMENTARY: Fiat-Chrysler Link Is Nice Idea, but Futile Without Money
By Bill Visnic
Fiat S.p.A.'s acquisition of 35 percent of Chrysler has all the good-sounding trappings of an auto-industry alliance that, under normal circumstances, would indicate another industry tie-up that might bear fruit.
But in the supercharged atmosphere currently surrounding the auto sector -- and particularly the at-risk U.S. domestic automakers -- the deal is being considered by some as the salvation of Chrysler.
The prolongation of Chrysler's likely dissolution is the more viable assessment of Tuesday's announced Fiat-Chrysler deal because it includes no cash infusion to Chrysler.
(Read more...)
Posted by Michelle Krebs at 4:31 AM under Analysis , Business , Chrysler , Commentary , Featured | Comments (0) | digg this | del.icio.us
Sales Aren't the Only Thing Detroit Lost in 2008
By Bill Visnic
Nearly 3 million U.S. auto sales evaporated in 2008, and plenty of that blood was lost by the Detroit Three: General Motors Corp. sales were down 23 percent, Ford Motor Co. sales slid by 20 percent and Chrysler LLC sales dropped by 30 percent.
Total U.S. sales plunged from 16.1 million units in 2007 to 13.2 million for 2008. Equally interesting -- and troubling, for Detroit -- was that not only did the pie get painfully smaller, the domestic automakers' portion, market share, once again lost ground.
According to data from Edmunds.com, the Detroit Three lost a collective total of 3.7 points of market share in 2008. Chrysler led the group, ceding 1.9 points of share (from 12.9 percent of the market in 2007 to 11 percent in 2008). GM lost 1.4 percent (from 23.8 percent in 2007 to 22.4 percent). Ford gave back 0.4 points of share (from 15.5 percent to 15.1 percent for 2008).
(Read more...)
Posted by Michelle Krebs at 6:44 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Hyundai Found 'Assurance' Campaign in Ruins of October
By Dale Buss
The promise made by Hyundai of America's new advertising is so unusual that the Korea-based automaker already is planning a second TV spot to reassure skeptical consumers that "Hyundai Assurance" isn't a joke.
Over the weekend, Hyundai announced with its ad that it would take back a buyer's new vehicle in the event of job loss or income. Hyundai meant the gambit as a dramatic and unique way to shake up the moribund marketplace by appealing directly to consumers' lack of confidence in their own financial future.
(Read more...)
Posted by Michelle Krebs at 7:27 AM under Analysis , Companies | Comments (2) | digg this | del.icio.us
Automakers Seek Game-Changers in Fresh TV Ad Campaigns
By Dale Buss
Striking every attitude from empathy to ambivalence to something resembling snarkiness, automakers have been using new TV-advertising campaigns to try to jolt consumers off their couches and into dealer showrooms.
The headwinds are daunting, but automakers have been launching a greater variety of messages than at any time in recent memory - attempting to find something, anything that punches effectively through the pervasive gloom in American households and reignites their desire and confidence to make a major purchase.
(Read more...)
Posted by Michelle Krebs at 4:44 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Confidence Game: Winning It Is the Only Road to Recovery
By Dale Buss
Automakers are trying things they've never tried before -- apologies, thanks, guarantees against job loss -- to get Americans to consider buying cars again. But none of these prods will work very well until the market has reestablished itself on a bedrock of consumer confidence.
"Of all the factors you look at, [confidence] is the No. 1 driver of the new-vehicle business," said Mark LaNeve, vice president of North American sales for General Motors, as the company launched a new zero-percent-financing program a few days ago.
(Read more...)
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2008 U.S. Auto Sales Are Worst Since 1992
By Michelle Krebs and Bill Visnic
U.S. auto sales continued their precipitous tumble in December, closing the books on the industry's worst year since 1992.
Five of the Big Six automakers -- General Motors, Ford, Toyota, Nissan and Honda -- saw sales slide another 30 percent each in December; Chrysler's plummeted 53 percent. No automaker showed higher sales December to December. The lucky ones saw mere single-digit dips.
For the full year of 2008, all of the Big Six automakers reported sales declines. In total, the industry sold 13.2 million vehicles for an 18 percent drop from 2007's 16.1 million.
"It was an unbelievable year -- not one I want to repeat," said Mark LaNeve, GM's head of sales and marketing in a conference call with reporters. "Hopefully, 2009 will improve from December's low point rather than deteriorate as 2008 did."
(Read more...)
Posted by Michelle Krebs at 5:22 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
December Incentives Set Record, Edmunds.com Estimates
By Michelle Krebs
SANTA MONICA, Calif. -- Automaker incentives set a new record in December, Edmunds.com estimates, and, surprisingly, leasing showed a remarkable jump despite reports of its demise.
"Never before has the December average incentive been this high," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "Automakers have been pulling out all the stops to keep motivating shoppers during these tough times."
Slowing sales have struck virtually every automaker and every market segment. U.S. auto industry sales for December and the full-year of 2008 are being reported Monday. December sales are expected to look a lot like the dismal levels of October and November -- and down from in the neighborhood of 30 percent or more from December 2007. Full-year sales are likely to be the worst since 1992.
(Read more...)
Posted by Michelle Krebs at 6:36 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (2) | digg this | del.icio.us
2008: A Year Not To Be Forgotten, as Much as We'd Like To
SANTA MONICA, California -- For the automotive industry, 2008 will be a year not to be forgotten,
though those in the auto industry, indeed, would like to forget it and move on.
The overhwhelming theme of the year came near the end with the collapse of the financial industry, which, in turn, prompted car sales to plummet to levels not seen since the early 1990s, when the country's population was 50 million people fewer. That led Detroit automakers to head to Washington for financial help.
Though largely overshadowed by the credit crisis, the deteriorating economy and bailout mania, other trends emerged in 2008, as an analysis by Edmunds.com, parent of AutoObserver, shows:
(Read more...)
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It May Not Be Bankruptcy, but Chrysler Deconstruction Inevitable
By Bill Visnic
President George W. Bush finally released the crucial billions needed to keep General Motors Corp. and Chrysler LLC around to see the new year, but with the real work just beginning, the wrenching save-Detroit soap opera seems to be grinding towards just one certainty: Chrysler LLC isn't going to make it.
If the maneuverings of the past several weeks haven't twisted the automotive Rubik's Cube enough for everyone to see the inevitable outcome, the reality is telegraphed loud and clear in the White House's "bailout" numbers: GM will bask in the holiday glow of $4 billion on Dec. 29, another $5.4 billion barely two weeks later and an additional $4 billion in February, for a total of $13.4 billion.
Chrysler gets $4 billion on Dec. 29. That's it.
(Read more...)
Posted by Michelle Krebs at 3:39 AM under Analysis , Chrysler , Commentary , Featured | Comments (3) | digg this | del.icio.us
December Sales Rate Will Be Year's Lowest, Edmunds.com Forecasts
SANTA MONICA, Calif. -- The deteriorating economy, the precarious employment situation and the lack of available credit will push the annual sales rate in December for U.S. car sales to their lowest level of the year below 10 million units, Edmunds.com forecasts.
December sales (retail and fleet) are expected to total 852,000 units, a 38.4 percent decrease from December 2007 but a 14.6 percent increase from November, Edmunds.com predicts. Typically, December sales are about 18 percent higher than November's.
With the year closing on a low note, U.S. vehicle sales for all of 2008 will total just over 13 million, a decrease of almost 3 million vehicles, or 18 percent, from 2007. Automakers report December and 2008 sales figures January 5, 2009.
(Read more...)
Posted by Michelle Krebs at 5:28 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (3) | digg this | del.icio.us
New Blood? It's Another Important Issue for Big Three
By Dale Buss
The president's expected short-term bailout of the Detroit Three automakers will leave the industry with lots of short- and long-term issues. One of the biggest is who will lead them.
As they pulled the plug on their own rescue deliberations last week, some in Congress seemed to believe they could run the Detroit Three automakers better than the CEOs do. President-Elect Barack Obama also has suggested that some top auto executives have a "head-in-the-sand approach" and should lose their jobs. And the American public, at least as measured by polls, don't seem to want to give a break to the automakers' current leadership either.
Could others actually perform better as CEOs of General Motors, Ford or Chrysler than Rick Wagoner, Alan Mulally or Robert Nardelli have -- and will? If so, where would these executive savants come from? And will we ever see any of this new blood in Detroit?
(Read more...)
Posted by Michelle Krebs at 3:49 AM under Analysis , Companies , Featured , Ford , GM , Personalities | Comments (4) | digg this | del.icio.us
Toyota Delays Mississippi Plant Launch; Slashes Forecast, Details Cost Cuts Next week
Toyota Motor Corp. said Monday it is delaying plans to open its newest U.S. plant in
Mississippi, which was to have built the next-generation Prius hybrid.
Citing the steep decline in the auto market, Toyota said it would complete construction of the building but would hold off on installing equipment, delaying the start of production that was slated for 2010.
The delay of the Mississippi plant is part of a massive cost cutting the Japanese automaker has undertaken. Next week, Toyota is expected to slash its 2009 sales forecast by at least 1 million vehicles and outline plans to cut costs at its year-end news conference December 22, Reuters news service reports.
(Read more...)
Posted by Michelle Krebs at 7:51 AM under Analysis , Featured , Technology , Toyota | Comments (2) | digg this | del.icio.us
White House May Come to Automakers' Rescue
By Michelle Krebs
The U.S. Treasury said it is willing to provide financing to Detroit automakers after the Senate Thursday night failed to approve $14 billion in loans to General Motors and Chrysler.
"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Treasury spokeswoman Brookly McLaughlin said in an e-mailed statement.
(Read more...)
Posted by Michelle Krebs at 6:36 AM under Analysis , Chrysler , Featured , Ford , GM | Comments (0) | digg this | del.icio.us
Withering Economy Already Endangers Bailout-Plan Assumptions, Expectations
By Bill Visnic
In their bailout blueprints presented to Congress last week, automakers presented forward-revenue assumptions based on forecasts for 2009 auto sales. In General Motors Corp.'s case, for example, it projected "downside," "baseline" and "upside" sales forecasts for the U.S. market, correlating how much funding the company believes it will need based on each sales scenario.
If a new survey of the nation's economists has any relevance, the beleaguered automakers had better strap in for a bumpy ride that may make a reality of those "downside" assumptions.
Bloomberg News' December survey of economists released this week paints a bleak outlook for 2009. The prominent economists comprising the survey sample predict consumer spending will plunge by a rate not seen since the 1940s, with household spending retreating by 1 percent, which also hasn't happened since World War II.
.
(Read more...)
Posted by Michelle Krebs at 4:13 AM under Analysis , Chrysler , Featured , Ford , GM | Comments (1) | digg this | del.icio.us
Consumers Reluctant To Buy From Bankrupt Automaker, Survey Confirms
Results released from a survey conducted by CNBC and Portfolio.com confirmed what the heads of Detroit's auto companies testified to in Congressional hearings the last months: Consumers are reluctant to buy a car from an automaker in bankruptcy.
(Read more...)
Posted by Michelle Krebs at 8:28 AM under Analysis , Chrysler , Companies , Ford , GM | Comments (0) | digg this | del.icio.us
Automakers' Bankruptcy Would Cost Taxpayers Four Times More Than Bailout, Study Finds
By Michelle Krebs
A bankruptcy filing by General Motors and Chrysler would cost U.S. taxpayers four times more than the amount of federal bridge loans being considered this week by Congress, a new study finds.
A bankruptcy, or even a prepackaged restructuring outside of bankruptcy court, cannot control a wild card unique to automakers -- the car-buying consumer -- noted a joint study by international consulting firm BBK and Michigan-based Anderson Economic Group.
(Read more...)
Posted by Michelle Krebs at 7:37 AM under Analysis , Chrysler , Companies , Featured , Ford , GM | Comments (1) | digg this | del.icio.us
7 Myths About Detroit Automakers, Detroit Free Press
The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists. Here are seven myths about the companies and their vehicles, and the reality in each case.
This column by Detroit Free Press auto critic Mark Phelan originally was published on November 17 and was updated last Friday to debunk the myths as Congress was about to fashion an automotive rescue package.
(Read more...)
Posted by Michelle Krebs at 5:33 AM under Analysis , Chrysler , Commentary , Ford , GM , Technology , Toyota | Comments (1) | digg this | del.icio.us
Scalp? Scapegoat? GM's Wagoner Remains One Vulnerable CEO
By Dale Buss
As he testifies before Congress today and tomorrow, Richard Wagoner will be doing more than attempting to seal the deal for some $12 billion in government loans and a $6-billion line of credit that he has requested to rescue his employer, General Motors.
GM's chairman and CEO also may be auditioning to keep his job.
Wagoner certainly looks to be in better shape to hold on to GM's top post this week than he did a couple of weeks ago, after his singularly uninspiring first round of bailout testimony on Capitol Hill. He has done all the right things since then, inside the company and for external audiences.
(Read more...)
Posted by Michelle Krebs at 6:02 AM under Analysis , Featured , GM , Personalities | Comments (2) | digg this | del.icio.us
GM Wants as Much as $18 Billion; Prioritizes Brands
By Bill Visnic
General Motors Corp. Tuesday released the plan submitted to Congress in application for federal bridge loans to carry the company through 2009, when it expects a host of structural improvements and general downsizing to create "a new General Motors, one that is lean, profitable, self-sustaining and fully competitive."
What GM wants: up to $18 billion -- up to $12 billion in direct federal term loans and another $6 billion committed line of credit to guarantee the company can weather an auto-sales environment even worse than GM's projected 12-million-unit sales rate for 2009.
(Read more...)
Posted by Michelle Krebs at 4:14 PM under Analysis , GM , News , Personalities | Comments (0) | digg this | del.icio.us
Funereal November Sales Provide More Ammo for Bailout Plea
By Dale Buss
In case members of Congress needed any more reminding why the domestic automakers are hat-in-hand before them this week, the 37 percent drop in November sales has provided them with the latest bleak snapshot of a moribund U.S. vehicle market.
As the Detroit Three were presenting their restructuring plans in Washington, D.C., on Tuesday, the sales data rolling in from them and all other OEMs gave further dimension to the vast pall that has come over the nation's automotive market and quantified the paralyzing dread that is felt by American consumers.
(Read more...)
Posted by Michelle Krebs at 3:35 PM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Domestic Automakers Ease Off Incentives While Imports Rev Them Up in Pursuit of Market Share, Edmunds.com Reports
SANTA MONICA, Calif. -- Domestic automakers eased off the incentive gas in November while import automakers revved up incentives, according to Edmunds.com.
"All three domestic automakers lowered their incentive spending this month, seeking to preserve cash during these incredibly tough times," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "Meanwhile, the imports have poured more money into incentives, attempting to seize the opportunity to gain market share. Toyota's monthly incentives spend hit a new record high in November, and the company's market share might follow suit."
(Read more...)
Posted by Michelle Krebs at 10:00 AM under Analysis , Chrysler , Companies , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
COMMENTARY: For Bailout Blueprint, GM, Ford Might Finally Burn Rubber on Underperforming Brands
By Bill Visnic
The plans the Detroit Three automakers are developing to submit on December 2 to Congress in justification for their entreated $25-billion federal loan probably are being more closely guarded than the manuscript for Sarah Palin's first book, but we can guess one aspect that seems certain to feature in the bailout blueprint of both Ford Motor Co. and General Motors Corp.: ditching some brands that have long dogged their ever-more-fragile bottom lines.
For at least a decade, critics have shouted down both GM and Ford for refusing to do what it now appears must be done -- stop supporting underperforming divisions.
Rumors howling in Detroit's November winds point to brand-burning as one of the primary ways the companies plan to demonstrate to Congress they will be able to sustain their operations in a U.S. auto market that is expected to be decidedly unkind for all of 2009 and possibly well into 2010.
(Read more...)
Posted by Bill Visnic at 3:15 AM under Analysis , Business , Commentary , Ford , GM | Comments (9) | digg this | del.icio.us
Honda Planning V8 -- but Not Until 2015
By Peter Nunn
Maybe dreams do come true, after all. Americans who have long yearned for Honda to develop a production-car V8 engine may finally be getting their wish -- if recent comments made by Honda president Takeo Fukui are any guide.
In a recent media interview, Fukui was quoted as saying that Honda was now planning to strengthen the Acura brand with a production V8.
Why? Because the 3.7-liter V6 currently installed in the newly face-lifted RL, the range-topper for Honda's upscale Acura sales channel -- wasn't "sufficient" to compete with other premium brands, he said.
Just don't take it to mean a Honda V8 is around the corner.
(Read more...)
Posted by Bill Visnic at 3:00 AM under Analysis , Business , Featured , News , Technology | Comments (4) | digg this | del.icio.us
Gas Prices and Heavy Incentives Keep Car Sales From Sinking Below October's Depths
SANTA MONICA, Calif. -- November car sales improved over October's historic lows thanks to lower gas prices and high incentives.
November new vehicle sales, including fleet and retail sales, are expected to be 850,000 units, a 27.6 percent decrease from November 2007 but showing a 1.9- percent increase from last month, according to Edmunds.com's forecast.
Still, the Seasonally Adjusted Annual Rate (SAAR) for the month is expected to be only about 11.5 million units.
(Read more...)
Posted by Michelle Krebs at 10:45 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (0) | digg this | del.icio.us
Chance of GM, Chrysler Bankruptcy 75 Percent Without Loans, Says IHS Global Insight
The odds of General Motors and Chrysler filing bankruptcy in early 2009 soars to 75 percent without a government rescue package, predicts forecasting firm IHS Global Insight. With federal loans, the odds drop to 25 percent.
"Without a loan package, the probability of both GM and Chrysler going bankrupt in early 2009 is about 75 percent -- almost a certain probability," George Magliano, IHS Global Insight's director of North America, said in a Webcast on the economy and auto industry Thursday morning.
(Read more...)
Posted by Michelle Krebs at 8:17 AM under Analysis , Chrysler , Featured , GM | Comments (4) | digg this | del.icio.us
Caution Flag Waves Over Los Angeles Auto Show
By Danny King
LOS ANGELES -- With its exhibit set in its own small wing of the Los Angeles Convention Center away from other automakers, its mix of new blindingly fast models with its classic roadsters, its trays of hors d'oeuvres for visitors and a visit from comedian and noted enthusiast Jerry Seinfeld, Porsche would appear to be the last carmaker to show the effects of a slumping auto industry at the Los Angeles auto show.
Don't be fooled, says the company's head of U.S. operations. The slowdown is not lost on him.
"I would be very happy if I could say this doesn't affect us or affects us differently from every other car manufacturers, but we all have the same problem," said Detlev von Platen, chief executive officer of Porsche Cars North America, Wednesday. "At the moment, we cannot count on the confidence of the consumers."
On a day when U.S. senators couldn't agree on whether or how to extend $25 billion worth of loans to help General Motors, Ford and Chrysler survive, the overriding mood during the first day of the Los Angeles auto show's exhibits for members of the press was one of restraint.
(Read more...)
Posted by Michelle Krebs at 5:15 AM under Analysis , Chrysler , Companies , Featured , Ford | Comments (0) | digg this | del.icio.us
Outlook for Automaker Loans Fragile as Senate Hammers Detroit Chiefs
By Bill Visnic and Michelle Krebs
Chief executives from each of the Detroit Three automakers couldn't
have come to Tuesday's session of the U.S. Senate Banking, Housing and Urban Affairs Committee at a less-receptive time. Seeking $25 billion in emergency loans to keep their ailing operations afloat, they might as well have been kids who've gorged on all their Halloween candy and now are whining for more.
Although the committee is chaired by a receptive persona in Senator Chris Todd (D-CT), Republicans are largely presenting an icy posture regarding Detroit's plight - and senators on both sides of the aisle grilled Ford's Alan Mulally, GM's Rick Wagoner and Chrysler's Bob Nardelli with varying degrees of understanding and acidity. The three are scheduled for a House committee hearing Wednesday morning.
(Read more...)
Posted by Michelle Krebs at 3:36 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Personalities | Comments (0) | digg this | del.icio.us
Without Ford: 25 States Could Lose 3,000 Ford-Related Jobs
If Ford were to cease operations, 25 states could lose 3,000 or more Ford-related jobs,
according to an internal document obtained by the Wall Street Journal
.
The document detailed state-by-state the number of workers directly employed by Ford, the number of auto parts suppliers who work with the company and the amount they spend to support their business.
(Read more...)
Posted by Michelle Krebs at 7:34 AM under Analysis , Ford | Comments (0) | digg this | del.icio.us
Don't Be Lulled Again by Cheap Energy, Report Says
By Bill Visnic
The International Energy Agency has issued a warning that failure to invest globally in trillions for new-energy exploration in the next 20 years could lead to a fresh global energy crisis.
The IEA says that despite worldwide efforts to reduce energy usage, consumption of crude oil, for example, is forecast to climb from today's 85 million barrels per day by more than 20 percent to 106 million barrels per day by 2023. The agency urged energy giants - and the Organization of the Petroleum Exporting Countries (OPEC) - not reduce expenditures in oil exploration and production in the face of plunging crude-oil prices.
(Read more...)
Posted by Michelle Krebs at 5:28 AM under Analysis , Companies , Technology | Comments (1) | digg this | del.icio.us
Winter of Discontent and Joblessness for Autoworkers Worldwide
By Bill Visnic and Michelle Krebs
For autoworkers, this is shaping up to be a winter of discontent and joblessness as manufacturers around the globe slash production to match supplies of vehicles to plummeting demand.
Automakers are offering buyouts to shed jobs permanently, laying off workers temporarily, not rehiring temp workers who had expected to return and extending holiday shutdowns to keep vehicle inventories in check.
Virtually no automaker is immune. Even manufacturers of hot-selling models like Mini, Audi and Renault's Dacia Logan are trimming production and laying off workers to meet lower demand - or taking action just in case sales fall further south. Nor is any region exempt. The fast-pace growth of China and Brazil has slowed, prompting automakers in those emerging markets to slow or halt production lines as well.
(Read more...)
Posted by Michelle Krebs at 8:15 AM under Analysis , Companies , Featured | Comments (2) | digg this | del.icio.us
Rover Case Study: A Sign of Things to Come in the U.S.?
As autoworkers in the U.S. and around the globe lose their jobs in this economic downturn, a new study from the U.K. is worth noting: three years after the collapse of MG Rover, 90 percent of workers who lost their jobs have found new ones, but most have taken significant pay cuts.
(Read more...)
Posted by Michelle Krebs at 6:45 AM under Analysis , Business | Comments (2) | digg this | del.icio.us
Auto Affordability Worsens, Comerica Reports
By Michelle Krebs
Auto affordability, which has become better and better for consumers in the past couple years, worsened in the third quarter, according to the Auto Affordability Index compiled by Dallas-based Comerica Bank.
The index showed a confluence of factors: family income barely increased in the third quarter, the total cost of buying an average-priced vehicle increased and the credit crunch is taking its toll on affordability.
(Read more...)
Posted by Michelle Krebs at 11:27 AM under Analysis , Business | Comments (0) | digg this | del.icio.us
Now That Gasoline Prices Are Plunging...
By Bill Visnic
Even those predicting a retreat from this summer's $4-per-gallon fuel prices didn't call for prices to plunge so far, so fast.
Regular unleaded gasoline in some parts of the country once again begin with a "1." The Energy Information Administration (EIA) said last week's national average for regular unleaded was $2.40, but even that number reflected a drop of some 61 cents from a year ago and a crash of 25 cents in just a week.
(Read more...)
Posted by Michelle Krebs at 6:54 AM under Analysis , Companies , Featured , Ford , Technology | Comments (2) | digg this | del.icio.us
Lincoln Updates MKZ as Marque's Sales Sputter
By Bill Visnic
DETROIT -- Ford Motor Co.'s Lincoln premium division can't seem to catch a break.
The historic brand has struggled for years to justify its continuing existence within its own family while Ford went shopping overseas for more "relevant" premium brands such as Jaguar, Land Rover and Volvo. Jaguar and Land Rover are sold, but Volvo and home brand Lincoln continue to struggle against economic and industry currents that appear to be particularly battering to luxury brands.
(Read more...)
Posted by Michelle Krebs at 6:42 AM under Analysis , Ford | Comments (1) | digg this | del.icio.us
Cash Crunch Simultaneously Prods, Prevents Castoff of Swedish Automakers
By Bill Visnic
With operating revenue becoming an increasingly scarce commodity in Detroit, General Motors Corp.'s and Ford Motor Co.'s luxury of maintaining their premium-brand but low-performing Swedish automaking units is likely to earn deeper scrutiny in the coming months.
Skepticism regarding the wisdom of retaining Saab Cars has been around at parent General Motors Corp. almost since the day GM purchased 50 percent of Saab's automaking unit (actually underbidding future GM partner Fiat Group) in late 1989 for the paltry sum of $500 million. GM acquired the rest of the company
in 2000, and at that time, Saab was losing money and it has been widely believed Saab has never returned a profit under full GM ownership.
But rumors and innuendo about GM cutting Saab adrift have reached a higher pitch in the past weeks as GM, openly seeking cash injections, has shopped its Hummer brand and storied AC Delco aftermarket-parts division, and recently dealt with a crumbled plan to offload its commercial-truck business to Navistar International. The potential for a government cash injection -- never mind the complication of a proposed merger with Chrysler LLC - now seems GM's best near-term option.
(Read more...)
Posted by Michelle Krebs at 4:23 AM under Analysis , Featured , Ford , GM | Comments (0) | digg this | del.icio.us
Millions of Jobs, Billions of Dollars Lost Across the U.S. If Detroit Three Disappear or Even Contract Some, CAR Study Says
By Michelle Krebs
As many as 3 million jobs and hundreds of billions of dollars will be lost from the U.S. economy if General Motors, Ford and Chrysler cease operations, a new report shows.
The report by the Center for Automotive Research (CAR) details the job losses and economic impact of two scenarios: if all three Detroit automakers cease operations next year; and if Detroit automakers contract by half, likely involving two automakers going out of business.
"Either of these scenarios is possible, and indeed probable, within the next 12 months," the study says.
In both scenarios, the impact is devastating for jobs, income, the nation's tax base and consumer spending that could pull the U.S. economy out of recession.
Other automakers doing business in the U.S., including Toyota and Honda, also would be hit as would Canada and Mexico.
(Read more...)
Posted by Michelle Krebs at 6:34 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
Horrific October Car Sales Plunge Industry to Post-WW II Low
By AutoObserver Staff
There were almost no words on Monday to describe how abysmal U.S. auto sales were in the woe-begotten month of October.
Bled by battered consumer confidence, by more expensive and harder-to-obtain loans, by financial-market disasters and Election Day anxieties, October sales limped in at only about 852,000 vehicles nationwide, a 32 percent plunge from a year ago.
"This level of sales is not sustainable for anyone in the industry," said Michael DiGiovanni, head of global market analysis for General Motors. "It doesn't matter how deep their pockets are. Everyone is pulling in their reins to one degree or another, but everyone is affected by this."
GM's sales slumped by a horrific 45 percent, the worst showing among the Big Six automakers selling in the United States. Chrysler's declined by 35 percent, Nissan's by 33 percent, Ford's by 29 percent, Honda's by 25 percent and Toyota's by 23 percent.
The industry total comprised its lowest sales volume for any month since 1992. And adjusting for population growth -- that is, on a per capita basis -- October auto sales were the industry's worst since World War II.
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Posted by Michelle Krebs at 2:01 PM under Analysis , Chrysler , Companies , Featured , Ford , GM , Toyota | Comments (1) | digg this | del.icio.us
October Sales Plummet; Incentives Soar
SANTA MONICA, Calif. -- While October sales are expected to plummet double-digits, auto manufacturer incentive spending is up double-digits from a year ago, Edmunds.com's analysis shows.
"Automakers have to do what they can to stimulate sales while still being fiscally responsible during these shaky economic times," stated Jesse Toprak, Edmunds' executive director. "The industry is still far below the record average incentive of $3,146, which was reached in September 2004."
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Posted by Michelle Krebs at 7:58 AM under Analysis , Companies , Featured | Comments (0) | digg this | del.icio.us
Not Optimal, but GM-Chrysler Combo Best Alternative, Grant Thornton Report Says
A merger between General Motors and Chrysler, which appears imminent, is not optimal but may be the best alternative for both automakers in the current environment, says a report by a restructuring company.
"Chrysler, as we know, it will cease to exist very soon," said Kimberly Rodriguez, principal of Grant Thornton's automotive practice, which issued Thursday a report on the state of Chrysler and an analysis of a combined Chrysler and GM. "At this point, there are very few options available to either company."
Rodriquez believes it's in both companies' best interest to announce a decision that a merger will go forward by Election Day, with specifics to be hammered out later.
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Posted by Michelle Krebs at 10:32 AM under Analysis , Business , Chrysler , GM | Comments (3) | digg this | del.icio.us
Blame Sales Woes on Crushed Confidence, Not Crunched Credit
By Dale Buss
As automakers dig for the bottom of the industry's dire situation, they're trying to answer a fundamental question: Is this increasingly steep nosedive in sales mainly the result of consumers' lack of confidence in the economy and in their own financial future? Or is the squeeze on credit availability -- by defeating willing auto buyers -- largely to blame?
An Edmunds.com analysis has arrived at the answer: The crushed economic expectations and heightened financial fears of most Americans are causing the preponderance of the damage. And it's only going to get worse, judging by the announcement Tuesday that a leading measure of U.S. consumer sentiment, the Conference Board's consumer confidence index, plunged to 38 in October, its lowest level on record -- a 41-year record.
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Posted by Michelle Krebs at 10:31 AM under Analysis , Companies , Featured | Comments (1) | digg this | del.icio.us
Interest in Car Purchases Perks Up Late Month, Edmunds.com Reports
October wound up being two months in one, with the latter part of the month showing a promising pickup in consumer interest in car buying.
In addition, the frenzied shopping for fuel-efficient small and midsize cars as well as hybrids that occurred through the spring and summer months, when gas was $3.50 a gallon, has abated. Shopping for large cars, sporty cars and trucks has rebounded somewhat.
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Posted by Michelle Krebs at 9:47 AM under Analysis , Featured | Comments (0) | digg this | del.icio.us
Divided by Credit Scores, Buyers' Experiences Diverge Even More
By Dale Buss
Lender executives insist that every auto-loan deal is as individual as we are, so there remain lots of variables in the market. But here's how the auto-lending environment has changed for each of three broad tiers of American consumers:
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Posted by Michelle Krebs at 1:32 PM under Analysis | Comments (0) | digg this | del.icio.us
Credit Unions May Shine Through Today's Lending Gloom
By Dale Buss
Observing the reactions by other automotive lenders to today's mess -- ranging from extreme cutbacks to mere caution -- the nation's credit unions have a dual opportunity. They can take on a leadership role in maintaining the flow of credit through the U.S. car industry and pick up a significant chunk of market share to boot.
That's certainly the aim of Tom Shafar, loan manager for the TAPCO Credit Union, in Tacoma, Washington. "We haven't changed our rates or fees or standards in months, and we're still underwriting just as we did before," he said. In fact, Shafar added, the institution for city and county workers actually granted a few more car loans to its members in September than a year earlier. Only demand for TAPCO loans by non-members, Shafar said, were down slightly.
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Posted by Michelle Krebs at 1:26 PM under Analysis , Business , Companies | Comments (0) | digg this | del.icio.us
Industry Headaches Starting To Affect Product Plans
By Bill Visnic
The belt-tightening in the global auto industry is beginning to make itself shown in new-product plans in practically every region. Replacement models are being delayed, proposed new models are being canceled or reconsidered, and new-product investment, in general, begins to suffer the results of sagging sales and ever-tightening access to credit.
It seems to be getting more difficult for General Motors Corp., for one, to disguise the fact minimum comfortable levels of operating income have been reached. The company is enacting its first white-collar layoffs in decades and is seems increasingly desperate to find a ready cash stream.
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