Autoblog

Car sales in the U.S. flat-out suck right now, and both domestic and Japanese automakers are feeling the pinch. Chrysler posted a 13.2% decline in its Daily Sales Rate last month while offering 0% financing, so the Auburn Hills-based automaker has little choice but to continue offering free loans in an effort to stop the bleeding. Current deals include five years at 0% for 2008 models and six years for leftover 2007 models. Chrysler is also dealing with folks with less than perfect credit, which is a risky move with credit restrictions so tight right now.

Beyond money for nothing, Chrysler is also looking into further production cuts to keep dealer inventory in check. It's also cutting labor costs by offering buyouts to workers to shed its army of industrial storm troopers by up to 10,000. Times are tough right now in the auto industry, but if you're in the market to buy a new car, 0% appears to be making a comeback

[Source: Automotive News - subs. req'd]

We really didn't expect good news... J.D. Power and Associates, the global information services company who seem to have highly regarded insight within the industry, is predicting auto sales this year to hit short of their original estimates. According to the firm, declining consumer confidence, lower spending, and turbulent financial and economic market conditions will contribute to an anticipated drop in new light-vehicle sales in 2008 that will put total sales at their lowest level since 1994.

U.S. light-vehicle automotive sales as recently as 2000 and 2001 topped 17 million units and retail sales last year were a more disappointing 16.2 million units. It was originally assumed that sales in 2008 would even lower, at 15.7 million units. Now, weak retail and fleet sales have driven that number down to J.D. Power's estimate of 14.95 million units.

Press Release after the jump.

[Source: J.D. Power and Associates]

It was the best of times, it was the worst of times – it was 2007. Topping the sales figures for the year that almost was are mainly servile vehicles, while the more ostentatious, less useful cars round out the bottom-feeder roster. Family cars at the top and niche cars in the basement doesn't tell the entire story, though.

Yes, there are some cars that you expect would sell in small volumes. Sporty things like the Porsche Boxster, Vette-in-drag Caddy XLR, blob-tacular Lexus SC430, and Audi A8/S8 über-sedan all sold in expected tiny numbers for such specialized machinery. Rounding out the nadir of automotive sales, you'll find nearly every Jaguar model, and some dead-on-the-vine products like the Mazda B-series pickups (Ford Ranger) and Isuzu Ascender (Chevy Trailblazer).

Hit the jump to read more, and see the list

[Source: Motor Authority]

This time last year some analysts were saying that a downturn in auto sales was around the corner. Well, it looks like those chaps were right on the money, as 2007 is projected to finish with 16 million sales, down one million units from 2005 totals. If a look at dealer orders is indicative of things to come, automakers are in for another tough year in 2008. One-third of dealers surveyed by Wachovia Capital Markets stated that they intend to cut back on new vehicle orders in 2008, which is up from 20 percent just a few months back. Automakers have been very careful with planned production volume for the next few months, and some have already cut shifts from assembly plants. Renault-Nissan CEO Carlos Ghosn thinks demand could shrink by another 500,000 units next year, which would put everybody in a tough spot. If the U.S. heads into a recession, the outlook could get even gloomier.

It seems as though almost every automaker is projecting global growth in the next few years, but with the way things are going in the world's largest automotive market, it looks like there will be a few executive boards in an uproar come '08.

[Source: Detroit News]

Historically, U.S. automakers have held both the majority of fleet and consumer sales stateside. According to new research provided by R.L. Polk and Co. the "Big Two and a Half" only holds one of those distinctions for the first time in U.S. history.

Foreign car manufacturers now account for 53% of consumer car sales through May of this year and that figure only stands to increase as the year progresses. Honda, Nissan, Hyundai and, of course, Toyota held a slim margin under U.S. manufacturers this time last year with 49% of the retail market, but most analysts have predicted this day would come sooner, rather than later.

Industry observers maintain that GM, Ford, and Chrysler's slipping numbers are due in large part to high gas prices, forcing consumers to seek out smaller, more fuel efficient vehicles traditionally offered by Japanese manufacturers. Others note that many foreign automakers have a better grasp on what U.S. consumers desire in a vehicle, with safety features, interior amenities and resale value topping the most wanted list.

Some dire soul searching is in order if the domestics stand a chance at regaining their previously held title. Especially considering that fleet sales are likely the next to go to their competitors in the east.

[Source: Detroit News]

Increased sales, a bigger need for technical knowledge in mechanic jobs, more financing activity and longer hours are all reasons that dealerships across the United States have over 100,000 job openings, which is why dealers have launched a campaign to push dealership-related careers with teens and college students.

Among the perks of working at a dealership is that, in many cases, employees don't need a college degree. The recruiting efforts by various regional dealer associations target groups that meet their needs -- in Texas and Florida, dealers are wooing women for sales jobs. In Cleveland, dealers are looking for business-oriented college students to fill marketing and other business jobs. Other areas trying to recruit mechanics have to overcome the grease monkey stigma in favor of the high-tech direction in which that career is moving.

In states like Ohio and Michigan, the loss of manufacturing jobs makes dealer recruiting all the more important -- the jobs are lucrative, at least for those who apply themselves, and they are a way to stay in the auto industry.

[Source: Detroit News]

General Motors is expected to take the biggest hit in June, though last year's numbers are skewed a bit due to a certain fire sale. Gas prices are reportedly the biggest culprit, spurring consumers to buy Japanese and turning Toyota and Honda into big winners -- in fact, Toyota expects to be up 15 percent over this time last year.

General Motors doesn't sound too incredibly panicked, however -- sticking to their guns on value pricing is the priority for now. Chrysler is the biggest spender of the Big 3, offering up incentives of $5,000 on some new models and giving out loans with zero percent financing. Despite its value pricing promise, GM's 72-hour sale during which 0-percent loans will be offered on most models for 72 months began yesterday and will run through July 5th.

[Source: Reuters via Automotive News]

It's not surprising that the extremely popular Pontiac Solstice roadster is sold out for 2006. But the G6 convertible, which went on sale in April, is also gone for the rest of the (model) year. The convertible completes the G6 lineup that includes the sedan and the coupe and is one of the least expensive hardtops in the market at less than $30,000.

Jim Mateja of the Chicago Tribune found the convertible pleasant to drive and quite roomy for passengers though the trunk shrinks considerably, a common problem among hardtop convertibles. Mateja asked Pontiac if the brand's considering bringing back the Firebird due to the G6's success. Spokesperson Jim Hopson replied, "We have no plans to revive the Firebird name, but have made no secret that if GM decides to build the Chevy Camaro, that rear-wheel-drive architecture would make a great basis for other rear-drive cars and Pontiac is interested."

[Source: Chicago Tribune]

Once the dominant player in China’s auto market with a 50-percent marketshare, VW’s Sino sales have fallen dramatically recently to the point it’s number one position is being threatened by GM. Enter the Sagitar, a renamed version of the Jetta that the company says is the “best example of German engineering and quality brought to China.” Dubbed the brand’s new flagship model for China, the Sagitar doesn’t appear to visually divert from the Jetta in any way, shape or form.

The company has seen a 40-percent rise in sales during the first quarter of 2005 versus the same period last year and its hoping the Sagitar will further boost that momentum.

[Source: Press of Atlantic City via German Car Blog]