Autoblog

Border Drive? Umm... No. Mexico car production reportedly down nearly 40%

Jonathon Ramsey — Thu, 15 Oct 2009 16:39:00 EST

Mexico hasn't accounted for nearly as much ink as the U.S. and Canada in recent discussions of the auto industry. But in case anyone was wondering, they're in a big hurt south of the border as well. While the American market's decline in auto sales factors in at about 25% overall, the Latin American Herald Tribune reports that Mexico has seen a 30.6% drop in sales volume.

And that's the best news. Exports from the automaker plants based in Mexico fell 35.5%, and production descended into the deepest hole, posting a 37.7% contraction compared to last year. The economic rebound everyone is saying is here (or really close) should get Mexico's numbers back in line before long - September's production was only down 22% and exports only dropped 18.7%. But until then... ¡Ay, caramba!

[Source: Latin American Herald Tribune | Image: Jose Castañares/AFP/Getty]

Border Drive? Umm... No. Mexico car production reportedly down nearly 40% originally appeared on Autoblog on Thu, 15 Oct 2009 16:39:00 EST. Please see our terms for use of feeds.

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REPORT: Analysts chide GM for boosting production [*UPDATED]

Jonathon Ramsey — Mon, 12 Oct 2009 14:29:00 EST

Filed under: Plants/Manufacturing, GM

General Motors has announced its planned production for next year: 2.8 million vehicles. That's a 45% increase over its production this year - 1.9 million cars and trucks - and according to some analysts, it's completely unwarranted. GM says it arrived at that number based on "real simple math." Analysts quoted in the Detroit Free Press today appear believe that GM was guided more by hope and a quest for market share.

Just about everyone agrees that next year's new car market will grow compared to this year, with estimates generally ranging from a 10% to 15% increase in sales. GM slashed its production this year so much that by September, its inventory hit unprecedented lows. To be ready for what it believes will be a 15% bounceback in overall North American car sales, a boost in its own sales (which were down almost 40% this yea)r, and to have enough inventory on hand, it figures it needs to bump production by 45%.

Every analyst appears to agree that GM will need to make more cars. But 2.8 million? Even as one analyst said, "There is no question that their production is going to be up next year and it's going to be significant - it really is," they were all in agreement that 2.8 million vehicles will leave a lot of cars either sitting on lots or being ridiculously discounted. The announcement has brought out sentiments that we are seeing shades of the old GM with a 'make them and move them by any means necessary' mentality. Both GM and the analysts' math is "real simple," but we'll have to wait until next year to see whose is accurate.

UPDATE: GM has responded to the original article on its Fastlane blog, chiding the Detroit Free Press for questioning a number that GM only meant as a 2010 production possibility, not a certainty.

[Source: Detroit Free Press | Image: Chung Sung-Jun/Getty]

REPORT: Analysts chide GM for boosting production [*UPDATED] originally appeared on Autoblog on Mon, 12 Oct 2009 14:29:00 EST. Please see our terms for use of feeds.

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2010 Ford Taurus reportedly enjoying strong early sales in California

Chris Shunk — Thu, 08 Oct 2009 10:20:00 EST

Filed under: Car Buying, Sedan, Ford

2010 Ford Taurus - Click above for high-res image gallery

We've already established that we feel the 2010 Ford Taurus is a lot more interesting than the boring and benign model it replaced, and sales totals are starting to reinforce our findings. September's sales tally revealed that the new Blue Oval flagship received a 60% sales increase versus September of 2008, and while the fact that the top sales market for the Taurus is Metro Detroit is no surprise, second place is likely the real prize. The Taurus is reportedly red-hot in sunny California, and some dealers are having trouble keeping the super-sized sedan in stock.

That's obviously a great problem to have, and Ford spokesperson Amy Marentic told the Detroit Free Press that there is a simple reason why supplies are short: "The older Taurus ... did not move and really wasn't relevant in California." Galpin Ford vice president Beau Boeckmann was a bit more direct in his reasoning, adding "We went from a frumpy car that did not have a southern California appeal to a car that everybody is in love with." Ford says it is also seeing good news on the options front, as it says 95% of customers are ordering uplevel models or are at least adding extras. A significant 25% of customers have reportedly opted to add Ford's excellent navigation system, up from only 4% on the outgoing Taurus.

We're not so sure "everybody" loves the new Taurus, as it's still a big rig that won't ignite the passion of most enthusiasts, but that isn't really its lot in life anyhow, and we can at least say that the new model ought to receive far more love than the neutered bull it replaced. Hat tip to Yaroukh!

Gallery: First Drive: 2010 Ford Taurus

Photos Copyright (C)2009 Chris Paukert / Weblogs, Inc.
[Source: Detroit Free Press]

2010 Ford Taurus reportedly enjoying strong early sales in California originally appeared on Autoblog on Thu, 08 Oct 2009 10:20:00 EST. Please see our terms for use of feeds.

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Forbes names 12 hardest new cars to find

Chris Tutor — Mon, 07 Sep 2009 12:31:00 EST

Filed under: Car Buying, Hybrid, Plants/Manufacturing, Audi, Chevrolet, Ford, Infiniti, Lexus, Mini, Toyota, Luxury

2010 Audi Q5 - click above for high-res gallery

With many automakers scaling back production to better balance supply with demand, it's not surprising there are several hard-to-find models right now. Forbes Magazine made some calls and did a little research and turned up what they say is the top 12 most difficult to find cars. After the run on high-mileage cars recently, you'd expect to see hybrid models like the Toyota Prius at No. 2 on the list. Tied for second is a car on the other extreme, the Chevrolet Camaro. Both model are spending an average of 18.5 days on dealer lots.

But Forbes says the hardest to find new car recently is actually the Audi Q5. The Four-Ringed crossover sat around in showrooms an average of only 16.8 days in June and July. Audi had another hit on the list with its S5, which tied for 12th place with the Mini Cooper.

Only one other American nameplate showed up as a hot seller, and that was Ford's Escape and Escape Hybrid, slipping in at No. 10. Toyota had a whopping five vehicles on the list, including the Prius and the Lexus RX 350/RX Hybrid. The Matrix was No. 4, the FJ Cruiser No. 8, and the RAV4 was No. 9. Said another way, "Thanks, Cash for Clunkers!"

Oddly, the Volkswagen Jetta Sportwagen TDI didn't show up on Forbes' list. From our personal experience and reports from readers, the car is almost impossible to find due to production issues and demand -presumably that's because the study calculated days on lots for the entire Jetta lineup, not just specific models therein.

Gallery: Beijing '08: 2009 Audi Q5

[Source: Forbes]

Forbes names 12 hardest new cars to find originally appeared on Autoblog on Mon, 07 Sep 2009 12:31:00 EST. Please see our terms for use of feeds.

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REPORT: China passes U.S. in auto sales

Chris Shunk — Thu, 09 Jul 2009 16:57:00 EST

Filed under: Car Buying, Trends, China, GM

Most of the world has been knee deep in a wicked recession for quite a while, and auto sales have been hit especially hard. Here in the U.S., the numbers have been abysmal, as the first half of the year saw only 4.8 million sales through June. China, on the other hand, is running away with the overall sales lead, as the ~~emerging~~ emerged market has added 6.1 million cars and trucks to its still developing roadways. According to The Associated Press, June sales were up 36% over the same period in 2008, and they're up 17% on the year.

The big winner in the market so far this year appears to be General Motors. The struggling Detroit, MI-based automaker has seen its China sales jump by 38% this year; while its U.S. sales have tanked. Industry analysts are predicting that the overall market for passenger cars in China will be between 10 and 11 million units.

Most experts weren't expecting China to pass the U.S. in overall sales for another decade, but the crumbling American auto industry has expedited the power shift, at least for the short term. With 1.3 billion people and a healthy economy, this day was destined to come.

[Source: The Associated Press via Google]

REPORT: China passes U.S. in auto sales originally appeared on Autoblog on Thu, 09 Jul 2009 16:57:00 EST. Please see our terms for use of feeds.

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By the Numbers - June 2009: Bankruptcy a Bad Idea Edition

John Neff — Wed, 01 Jul 2009 17:18:00 EST

Filed under: By the Numbers

FoMoCo falls only 11%, Chrysler Group drops 42%

Want more proof that Ford Motor Company made the right move in avoiding bankruptcy, unlike General Motors and the Chrysler Group, its cross-town rivals? Sales figures for the month of June 2009 show that Ford sharply lessened its sales slide with a fall of just 10.85 percent versus the same month last year. Compare that with drops of 33.6 and 41.85 percent for GM and Chrysler respectively. It appears that Ford has remained on track during these tumultuous times, and its improved performance last month could signal the beginning of a turnaround for which it may be ideally suited to take full advantage. We're sure the guys and gals at Ford are smiling today, even if the Camaro did outsell the Mustang for the first time in 15 years.

Subaru has again managed to post impressive numbers, with June 2009 sales up 3.4 percent by volume compared to last year. Volvo even posted a slight gain thanks in large part to the introduction of the all-new XC60.

Check out the rest of the numbers below. Brands and Companies are both displayed in ascending order according to their percentage change in volume sales. There were 25 selling days in June 2009 compared to 24 selling days in June 2008, so the change in average daily sales can be found in the right three columns.

Brand	Volume %	June 2009	June 2008	DSR* %	DSR 6/09	DSR 6/08
Subaru	3.40	18,620	18,007	-0.73	745	750
Volvo	0.59	7,042	7,001	-3.44	282	292
Kia	-5.11	26,845	28,292	-8.91	1,074	1,179
Ford	-8.26	133,684	145,715	-11.93	5,347	6,071
Audi	-8.28	7,524	8,203	-11.95	301	342
Buick	-10.69	8,601	9,631	-14.27	344	401
Pontiac	-16.41	23,740	28,402	-19.76	950	1,183
Lexus	-16.68	16,874	20,253	-20.02	675	844
Volkswagen	-18.02	19,027	23,208	-21.29	761	967
BMW	-20.05	16,744	20,944	-23.25	670	873
Mini	-21.22	4,105	5,211	-24.38	164	217
Nissan	-21.86	51,994	66,543	-24.99	2,080	2,773
Mercedes	-22.58	15,155	19,576	-25.68	606	816
Hyundai	-24.16	37,943	50,033	-27.20	1,518	2,085
Lincoln	-26.56	7,137	9,718	-29.50	285	405
Honda	-29.17	92,140	130,083	-32.00	3,686	5,420
Infiniti	-32.25	6,304	9,305	-34.96	252	388
Chevy	-33.30	106,712	159,998	-35.97	4,268	6,667
Acura	-33.53	8,280	12,456	-36.18	331	519
Toyota	-33.65	114,780	172,981	-36.30	4,591	7,208
GMC	-35.96	19,668	30,713	-38.52	787	1,280
Mercury	-37.10	7,332	11,657	-39.62	293	486
Jeep	-37.66	16,608	26,642	-40.16	664	1,110
Dodge	-40.43	37,936	63,687	-42.82	1,517	2,654
Cadillac	-40.90	8,473	14,337	-43.27	339	597
Mitsubishi	-41.79	4,362	7,494	-44.12	174	312
Mazda	-42.24	13,729	23,771	-44.55	549	990
Hummer	-47.97	1,078	2,072	-50.05	43	86
Chrysler	-49.30	13,753	27,128	-51.33	550	1,130
Smart	-56.15	1,116	2,545	-57.90	45	106
Saab	-58.39	779	1,872	-60.05	31	78
Saturn	-60.24	7,520	18,912	-61.83	301	788
Porsche	-65.96	902	2,650	-67.32	36	110
Suzuki	-78.04	2,149	9,784	-78.91	86	408

COMPANIES
Ford Mo Co	-10.85	155,195	174,091	-14.42	6,208	7,254
BMW Group	-20.29	20,849	26,155	-23.48	834	1,090
Nissan NA	-23.14	58,298	75,848	-26.21	2,332	3,160
Honda America	-29.55	100,420	142,539	-32.37	4,017	5,939
Toyota Mo Co	-31.87	131,654	193,234	-34.59	5,266	8,051
General Motors	-33.60	176,571	265,937	-36.26	7,063	11,081
Chrysler Group	-41.85	68,297	117,457	-44.18	2,732	4,894

By the Numbers - June 2009: Bankruptcy a Bad Idea Edition originally appeared on Autoblog on Wed, 01 Jul 2009 17:18:00 EST. Please see our terms for use of feeds.

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Analysts: There's no guarantee that Cash-for-Clunkers will really drive car sales

Sebastian Blanco — Mon, 22 Jun 2009 16:00:00 EST

Filed under: Car Buying, Government/Legal, Green

Now that the so-called Cash-for-Clunkers bill is ready for President Obama's signature, attention is turning to how much of an impact the negotiated bill will actually have on U.S. car sales. There are a lot of positive stories about the bill floating around - headlines hopefully implore that the bill might "jumpstart U.S. auto sales" and claim "Has Uncle Sam got a deal for you." But will the law, with its fairly tight requirements, really stimulate sales? Some auto analysts don't think so.

Four analysts interviewed by Automotive News estimate that only 70,000 to 200,000 more vehicles will be sold because of the clunkers bill. According to the detractors, there are three main factors that will likely blunt the bill's impact:

It's just four months long - the law will only offer cash for your clunkers from July 1 until November 1.
While the bill requires the new vehicle to be more fuel efficient than the one you're trading in, the 18 mpg limit on the old ride (details here) doesn't encompass nearly enough vehicles.
The economics of the law don't make a lot of sense in the real world. If you're driving an eligible car, then chances are that you can't afford to purchase a new vehicle right now - even if you can get a $4,500 federal credit on the price. More often than not, it makes greater sense to just buy a used car.

[Source: Automotive News (subs req'd) | Image: KB35 under CC 2.0]
Photo by KB35. Licensed under Creative Commons license 2.0.

Analysts: There's no guarantee that Cash-for-Clunkers will really drive car sales originally appeared on Autoblog on Mon, 22 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

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REPORT: Car loan delinquincies jump almost 9 percent

Michael Harley — Tue, 17 Mar 2009 15:59:00 EST

Filed under: Car Buying, Trends, Earnings/Financials

Delinquent auto loans, those more than 60 days past due, are on the rise. According to credit reporting agency TransUnion, they ballooned 8.9 percent in the fourth quarter of 2008 when compared with the same period a year earlier. While glancing at the Detroit News headline would lead most to think delinquencies are now in double-digits nationwide, the actual default rate has risen to just .86 percent (up from .79 percent) - yeah, less than 1 percent (as optimists at Autoblog, we like to applaud the more than 99 percent of customers who are able to pay on time).

The states with the highest delinquencies are Mississippi (1.62 percent), California (1.46 percent), and Louisiana (1.37 percent). On the other end, those with low delinquencies - and most likely to be paying on time - are found in Alaska (.19 percent), North Dakota (.34 percent), and Wyoming (.41 percent). If there is good news to be found in the report from TransUnion, it is that the average outstanding auto debt fell from the prior year - a direct reflection of owners holding their cars longer and credit tightening on new purchases.

[Source: Detroit News]

REPORT: Car loan delinquincies jump almost 9 percent originally appeared on Autoblog on Tue, 17 Mar 2009 15:59:00 EST. Please see our terms for use of feeds.

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Polk speculates about effect of government incentives on 2009 car sales

Jonathon Ramsey — Tue, 17 Feb 2009 07:58:00 EST

Filed under: Car Buying, Government/Legal

In light of the automaker benefits and car buyer assistance in the recently-passed stimulus package, analysts at R. L. Polk & Co. estimate there will be an average rebate of $330 for every vehicle sold this year. By allowing buyers to deduct the sales tax from a new vehicle purchase from their income taxes, Polks sees a sales increase of 94,000 units this year.

By contrast, the rebate provision in the original stimulus bill allowed buyers to deduct the interest on their car loans from their income taxes, in addition to the sales tax. Polk predicted the average rebate in that case would have been $1,250, and the U.S. light vehicle unit sales would increase by 359,000 units this year.

That would still only be a tiny bump in national volume when compared to Hyundai's gains due to its Hyundai Assurance Program: the Korean marque saw January sales rise by 14%, compared to a 37% drop suffered by the industry overall. And commenting on Germany's €2,500 rebate for people buying new cars, Polk figured the country could see 200,000 more cars sold this year, with smaller cars taking up much of that volume.

[Source: Polk]

Polk speculates about effect of government incentives on 2009 car sales originally appeared on Autoblog on Tue, 17 Feb 2009 07:58:00 EST. Please see our terms for use of feeds.

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Were more cars sold in China than in the U.S. last month? GM thinks so...

Jonathon Ramsey — Wed, 04 Feb 2009 10:29:00 EST

Filed under: Car Buying, Trends, China, GM

When you need to reach 46 years into America's past to find comparable auto industry numbers, it's all right to start thinking "Maybe this is pretty serious..." Various estimates of January 2009 U.S. car sales hover around 660,000. According to General Motors executive Mike DiGiovanni, that's "the lowest January in terms of unit sales since 1963."

A year ago, in January 2008, there were a little more than a million cars sold in the U.S. In view this year's decline, it's no wonder more cars were sold in China than in the U.S. last month. If GM's stab at preliminary numbers holds up (DiGiovanni puts Chinese sales at 790,000) - it would be the first time ever that China's car market has outsold America's. We'll know the official results when Chinese sales figures become available.

[Source: Auto News, sub req'd]

Were more cars sold in China than in the U.S. last month? GM thinks so... originally appeared on Autoblog on Wed, 04 Feb 2009 10:29:00 EST. Please see our terms for use of feeds.

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U.S. car sales in the doldrums to infinity until 2012 and beyond

Jonathon Ramsey — Wed, 07 Jan 2009 17:34:00 EST

Filed under: Car Buying, Plants/Manufacturing, Earnings/Financials

There were about three million fewer cars sold in 2008 than 2007. Based on 2007's numbers, it would be the same as if Acura, Audi, BMW, Chrysler, Dodge, Jeep, Lexus, MINI, Porsche, and Saab all closed their doors in 2008. In terms of pure automotive carnage, that's not the kind of damage you can just buff out. And the predictions for the future agree on two points: it's going to get worse, and it won't return to what it was for years to come.

The only difference in the predictions of gloom is exactly how long things are going to stay depressed. Everyone agrees that the vertiginous sales drop in Q4 of 2008 is going to continue at least until the middle of 2009. Some, though, think that 2009 will "look a lot like 2008, but in reverse," with a slight sales rebound possible in the latter half. That prediction depends on the size of the proposed economic stimulus package, and whether it actually stimulates the economy. After all, banks received their own stimulus packages, yet getting a loan is as hard as ever.

Others say we are "entering a prolonged period of conservation." One analyst predicts that U.S. car sales won't see the north side of 15 million in annual sales until "2012 or later," while another said that we won't see 16 million annual sales again "for the forseeable future." Naturally, with such conservation comes other cuts, like R&D budgets and model facelifts, that could mean the cars on offer won't be as interesting or as cutting edge as before. While that could be looked at as a benefit, saving manufacturers the need to put new redesigned cars in showrooms every three years, the necessary auto industry infrastructure changes (plant closers, layoffs, etc.), the certain extinction of some companies, and the uncertain future are going to hurt.

[Source: IHT]

U.S. car sales in the doldrums ~~to infinity~~ until 2012 and beyond originally appeared on Autoblog on Wed, 07 Jan 2009 17:34:00 EST. Please see our terms for use of feeds.

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By The Numbers - 2008: Phew! Glad That's Over Edition

John Neff — Mon, 05 Jan 2009 19:29:00 EST

Filed under: By the Numbers

We didn't know sales for the U.S. auto industry in 2008 would be this bad when the year began, but it sure ended on a fitting note. Over the past six months or so we've seen the U.S. auto sales market nearly collapse and almost take our own domestic auto industry with it.

Nevertheless, there were a couple of standouts. Both MINI and Subaru somehow managed to post sales gains in 2008 compared to the previous year. The success of MINI is likely due to production capacity more than popularity, but we have no explanation for Subaru other than its sales staff is more persuasive than at your average car dealership.

As for the big dogs, despite the whole lot of them being hit equally hard over the past few months, Japanese automakers had a stronger first half of 2008. As such, their year-end sales data looks better than the domestics with Toyota being the worst performing Japanese automaker at -15.4% and Honda fairing the best with a drop of just 7.91%. In comparison, Ford Motor Company (-20.7%) and General Motors (-22.9%) were equally unimpressive while the Chrysler Group hemorrhaged sales and finished down a full 30%.

As for the rest of the auto industry, it's all there below and it isn't pretty.

BY THE NUMBERS - 2008
Brand	Vol. % Change	Total Sales 2008	Total Sales 2007	DSR % Change	Daily Avg. 2008	Daily Avg. 2007
Acura	-19.8%	144,504	180,104	-20%	469	587
Audi	-6.1%	87,760	93,506	-6.4%	285	305
BMW	-15.2%	249,113	293,795	-15.5%	809	957
Buick	-26.2%	137,197	185,791	-26.4%	445	605
Cadillac	-24.9%	161,159	214,726	-25.2%	523	699
Chevrolet	-20.5%	1,801,131	2,265,641	-20.8%	5,848	7,380
Chrysler	-38.3%	335,108	543,011	-38.5%	1,088	1,769
Dodge	-25.9%	784,113	1,058,402	-26.2%	2,546	3,448
Ford	-19.7%	1,687,731	2,101,244	-19.9%	5,480	6,844
GMC	-25.5%	376,996	505,746	-25.7%	1,224	1,647
Honda	-6.4%	1,284,261	1,371,438	-6.7%	4,170	4,467
HUMMER	-50.9%	27,485	55,986	-51%	89	182
Hyundai	NA
Infiniti	-11%	112,989	127,038	-11.3%	367	414
Jeep	-29.7%	333,901	475,237	-30%	1,084	1,548
Kia	-10.5%	273,397	305,473	-10.8%	888	995
Lexus	-21%	260,087	329,177	-21.2%	844	1,072
Lincoln	-18.4%	107,295	131,487	-18.7%	348	428
Mazda	-10.9%	263,949	296,110	-11.2%	857	965
Mercedes-Benz	-11.2%	225,128	253,433	-11.5%	731	826
Mercury	-28.6%	120,248	168,422	-28.8%	390	549
MINI	28.6%	54,077	42,045	28.2%	176	137
Mitsubishi	-24.6%	97,257	128,993	-24.8%	316	420
Nissan	-10.9%	838,361	941,200	-11.2%	2,722	3,066
Pontiac	-25.3%	267,348	358,022	-25.6%	868	1,166
Porsche	-25%	26,035	34,693	-25.2%	85	113
Saab	-34.7%	21,368	32,711	-34.9%	69	107
Saturn	-21.7%	188,004	240,091	-21.9%	610	782
Subaru	0.3%	187,699	187,208	-0.06	609	610
Suzuki	NA
Toyota	-14.6%	1,957,575	2,291,648	-14.9%	6,356	7,464
Volkswagen	-3.2%	223,128	230,572	-3.5%	724	751
Volvo	-31.2%	73,102	106,213	-31.4%	237	346
COMPANIES
BMW Group	-9.7%	303,190	335,840	-10%	984	1,094
Chrysler LLC	-30%	1,453,122	2,076,650	-30.3%	4,717	6,764
FoMoCo	-20.7%	1,988,376	2,507,366	-30%	6,456	8,167
General Motors	-22.9%	2,980,688	3,866,620	-23.2%	9,678	12,594
Honda America	-7.91%	1,428,765	1,551,542	-8.21%	4,369	5,054
Nissan NA	-10.9%	951,350	1,068,238	-11.2%	3,081	3,480
Toyota Mo Co	-15.4%	2,217,662	2,620,825	-15.7%	7,200	8,537

2008 had 308 selling days versus 307 selling days for 2007

By The Numbers - 2008: Phew! Glad That's Over Edition originally appeared on Autoblog on Mon, 05 Jan 2009 19:29:00 EST. Please see our terms for use of feeds.

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GM may use profits from China to float North American operations

Jonathon Ramsey — Fri, 24 Oct 2008 09:02:00 EST

Filed under: China, GM, Earnings/Financials

Big Bob Lutz said that GM declaring bankruptcy is "out of the question." Of course, that was two years ago, when things like a $25 billion government loan would have sounded ludicrous. That was also before the auto industry mess got messier, and in order to stay true to those words today, GM is doing whatever it has to do to find money to stay in business. It heard Chrysler has an $11 billion piggy bank and a couple of jewels (Jeep and minivans) and GM said "Come here, girl! Lemme holla at you for a minute!"

Now GM is looking at its own international stable, and has its eye on China as a source of stopgap revenue for its North American operations. We've posted before on the fact that GM's international operations aren't doing too badly, and GM China sold 11.5 million vehicles last year -- more than any other manufacturer there. This year, it expects China sales volume to grow by 11- to 12-percent, and that means yuan in the bank.

Lutz said of the China move, "We do not rule out such a possibility under current conditions." These are hard times, but -- just like the good ones -- they're temporary, and GM just needs a little help to get to payday. Using money from one of your branches makes perfect sense to us. What doesn't make perfect sense is that China will get the Cruze the same time as Europe, in early '09, while we in the U.S. have to wait years in line for a car that we've been screaming for. Ah, GM, what are we going to do with you?

[Source: Gasgoo]

GM may use profits from China to float North American operations originally appeared on Autoblog on Fri, 24 Oct 2008 09:02:00 EST. Please see our terms for use of feeds.

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U.S. auto sales predicted to plummet to 13.4 million in 2009

Michael Harley — Wed, 08 Oct 2008 18:59:00 EST

Filed under: Car Buying, Earnings/Financials

Light-vehicle sales in the U.S. are expected to continue their decline in 2009. Global Insight, a firm that has been forecasting sales since the 1960s, is predicting sales of 13.4 million units next year. That figure is slightly down from the 13.8 million units automakers are expected to sell in 2008. (For comparison to recent years, 16.1 million vehicles sold in 2007 and 16.5 million units sold in 2006.) Global Insight makes note of the current U.S. credit crisis and the worsening global economy, citing the worldwide financial situation is more detrimental to auto sales than oil at $200-a-barrel. When oil is high, at least the countries benefiting from the oil profits continue to purchase cars - unlike today. While analysts differ on when we may see a turnaround, the firm feels it could take until 2013 for sales to recover to levels seen just a few years ago.

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

U.S. auto sales predicted to plummet to 13.4 million in 2009 originally appeared on Autoblog on Wed, 08 Oct 2008 18:59:00 EST. Please see our terms for use of feeds.

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Chrysler continues 0% financing through April

Chris Shunk — Wed, 02 Apr 2008 07:02:00 EST

Filed under: Car Buying, Marketing/Advertising, Chrysler

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]

Chrysler continues 0% financing through April originally appeared on Autoblog on Wed, 02 Apr 2008 07:02:00 EST. Please see our terms for use of feeds.

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J.D. Power and Associates predict even lower U.S. vehicle sales

Michael Harley — Wed, 19 Mar 2008 08:02:00 EST

Filed under: Car Buying, Plants/Manufacturing

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]

Continue reading J.D. Power and Associates predict even lower U.S. vehicle sales

J.D. Power and Associates predict even lower U.S. vehicle sales originally appeared on Autoblog on Wed, 19 Mar 2008 08:02:00 EST. Please see our terms for use of feeds.

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MSNBC names the best and worst selling of 2007

Dan Roth — Sun, 23 Dec 2007 09:01:00 EST

Filed under: Car Buying, Etc., Earnings/Financials

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]

Continue reading MSNBC names the best and worst selling of 2007

MSNBC names the best and worst selling of 2007 originally appeared on Autoblog on Sun, 23 Dec 2007 09:01:00 EST. Please see our terms for use of feeds.

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2008 will be another long year for automakers: Dealers cutting back on orders

Chris Shunk — Mon, 26 Nov 2007 19:33:00 EST

Filed under: Car Buying, Plants/Manufacturing, Chrysler, Ford, GM, Honda, Nissan, Toyota

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]

2008 will be another long year for automakers: Dealers cutting back on orders originally appeared on Autoblog on Mon, 26 Nov 2007 19:33:00 EST. Please see our terms for use of feeds.

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Foreign manufacturers eclipse domestics in consumer sales

Damon Lavrinc — Tue, 25 Jul 2006 08:34:00 EST

Filed under: Etc., Japan, Chevrolet, Daimler, Dodge, Ford, GM, GMC, Honda, Hyundai, Nissan, Pontiac, Saturn, Toyota

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]

Foreign manufacturers eclipse domestics in consumer sales originally appeared on Autoblog on Tue, 25 Jul 2006 08:34:00 EST. Please see our terms for use of feeds.

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Job openings in the automotive industry

Erin Mays — Wed, 05 Jul 2006 18:53:00 EST

Filed under: Car Buying, Etc.

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]

Job openings in the automotive industry originally appeared on Autoblog on Wed, 05 Jul 2006 18:53:00 EST. Please see our terms for use of feeds.

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