Autoblog

Despite recent negative news surrounding Tesla Motors, the all-electric automaker has just secured $40 million in financing to move forward with ramping up production of its battery-powered sports car, the Tesla Roadster. It was just last month when Tesla was unable to secure a $100 million investment round and was forced to cut nearly 25% of its work force. The failure to fund also slowed work on its second model, an all-electric sedan known as the "Model S." The San Carlos, California-based automaker has more than 1,200 orders for the $109,000 roadster, but has delivered just over 50 to date. With early transmission problems solved and plenty of cash on hand, the high-profile automaker seems to have finally found itself in a position to zip forward.

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

After announcing earlier this week that GMAC would only finance customers who hold credit scores higher than 700, General Motors has decided it would be prudent to reassure consumers that they are still in the business of securing loans and selling vehicles. Starting Friday, GM will launch a "Financing That Fits" campaign on a national level. Through advertising on television, newspaper, radio, and the Internet, GM will promote dealer financing with GMAC Financial Services and, for the first time, with other lenders. To further restore consumer confidence, the ads are also designed to promote the experience and expertise of the dealership professionals who work in finance and insurance. The economy has taken a serious toll on GM's showroom traffic over the past few weeks, and the announcement Monday of stricter lending policies dried up business even further. The automaker is hopeful that its new ad campaign, and cash-back deals of up to $6,000 on every 2008 vehicle left in stock, will bring them back in.

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

UPDATE: We've been informed that the 0% financing for 72 months offer is only available for the 2008 Dodge Ram. Financing details for the 2009 Dodge Ram will be announced at a later date.



The 2009 Dodge Ram appears to be a top-notch competitor in the light truck market, but that won't keep the soon-to-be-released model from feeling the pinch of high gas prices. Chrysler told dealers in a July 8th conference call that the new Ram would be launched with 0-percent financing... for 72 months. To put this into perspective, an all-new $30,000 vehicle with 7-percent financing would translate into a $511 per month car payment over 72 months. With 0-percent financing, the payment would be only $417, for a savings of nearly $7,000.

When the 2009 Dodge Ram was unveiled to the public at the Detroit Auto Show, it was looked at as a potential savior for the Pentastar. Only seven months later and two months before its scheduled to go on sale, It's going to be launched with the same financing as the slow-selling outgoing model. Ouch.

[Source: Automotive News (subs req'd)]

This is possibly the least shocking news of the day when you consider that the housing market, which fuels the full-size pickup segment, is in a slump and gas prices are rising once again. Nevertheless, General Motors must respond to market pressures, and in the wake of Silverado sales that fell 7% last month (that's the all-new, winner of the Motor Trend Truck of the Year, critically acclaimed Chevy Silverado), has decided to offer some new incentives to spur sales of Chevy's new truck and its mate, the GMC Sierra. From now through July 9th, customers can get zero-percent financing for 36 months or reduced-rate financing for 60 months on either model. If you're paying cash on the spot, GM can instead offer you $1,250 cash back on the Silverado or $1,500 on the Sierra.

Don't feel bad GM, Toyota has seemingly been offering incentives in one form or another on its new Tundra since the day it was born, and sales of the Ford F-150 fell 12% last month according to Automotive News. See? It's not just you.

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

General Motors has decided to bring back 0% and reduced-rate financing on many of its models to save its sales efforts for March. No doubt the General is keen on putting up positive numbers for the month to compliment the other bits of good news that have signaled its turnaround may have turned the corner. The new incentives start today and include 0% financing for 36 months and reduced-rate financing for up to 72 months, in addition to an extra $1,000 rebate that can also be used by the customer. The vehicles eligible for the new incentives, which will last through April 3rd, include the usual suspects, as well as the new 2007 Chevy Silverado and GMC Sierra, which is a bit of a surprise. The automaker no doubt senses an opportunity to hit its main rival, the Ford F-150, where it hurts. Considering the current F-150 is now an older model than the new GMT900 trucks from GM, as well as the new Toyota Tundra, its position as King of the Hill in the truck country is in serious jeopardy this year.

[Source: Automotive News]

Though not many noticed, Toyota employed the use of incentives to increase sales of its Prius hybrid for the first time ever in January. The incentives varied around the country and included low lease payments, cheap financing and cash back to dealers for each unit sold. Automotive News reports that in New York state, customers could order up a Prius lease for just $249 per month. In Michigan, Ohio and Kentucky, shoppers could finance the little guy for 3.9% for 36 months.

Toyota's goal is to reach 150,000 Prius sales in 2007, which is a large jump by any measure considering that only 106,971 units were sold in 2006, down from 107,897 in 2005. We remember a time when the line for a Prius was out the door and interested parties waited months for delivery of one of those shiny, new Priuses. It's interesting that in just the first month of 2007, Toyota has already resorted to incentives to ensure that its goal of 150,000 sold remains in sight. For its effort, the company was rewarded with the best January for Prius sales yet. Sales were up 8.4% with 8,299 units sold. There's still a long way to go, however, to hit 150,000.

If you were hoping to get a sweet deal on a Prius after reading this – sorry, the incentives reportedly ended on January 31st.

Thanks Aaron for the tip!

[Source: Automotive News – sub. req'd]

Ford announced today that it plans to acquire a financing package worth a heady $18 billion. The extra money will ensure that Ford survives the next couple of years while Alan Mulally and company attempt to turn the automaker around and bring profits back to the Blue Oval. Automotive News reports that Ford will spend $8 billion in cash by year's end, leaving it with $20 billion in the bank, so to speak. The new financing package that should be completed by December 31 will then boost Ford's liquidity to $38 billion. Ford says the added cushion will allow it to weather a recession or other unanticipated events that may come its way. Analysts note that while the automaker has bought itself a few years of secured operations, the mere fact the company went for the financing package means that it's going through money faster than originally anticipated, which is a bad sign. Either way, Ford will finish out the decade come hell or high water now, which is news we like to hear. With that monkey off its back, hopefully the automaker can now get down to the business of building better cars.

If you're interested in financial legalese, check out Ford's full press release after the jump.

[Source: Ford and Automotive News]

Anything you can do, I can do better... so sang Bingo and so says DaimlerChrysler to Ford. In the battle for customers, Ford had extended its 0% financing deal to sub-prime candidates for the first time last month. Now Chrysler is doing the same for those clamoring for a Commander. Zero-percent financing options are now available for up to 72 months on the 2006 Jeep Commander and Grand Cherokee, the Dodge Durango SUVs and Chrysler's family of minivans. Chrysler is also offering 1.9% for 60 months and 3.9% for 72 month financing on Dodge Ram pickups.

Chrysler actually put this new plan in place on September 1 and just recently lowered the bar to include people with less-impressive credit ratings in the program. It plans to continue it until October 2. Chrysler said it has seen immediate positive results and that dealers are happy about the change as much as the customers. Although Ford's plan extended to virtually everything in the range except the outgoing Ford GT supercar, Chrysler seems content to use the plan only for it's light and heavy trucks right now.

[Source: The Detroit News]

Chrysler summer-long Employee Pricing incentive ends today and is being replaced by a good old fashion Zero Percent Financing deal. The new deal applies to all 2006 models, which means Chrysler is eager to reduce the inventory of its dealers to make room for a flood of new products it plans on introducing this year, including the Chrysler Sebring and Aspen that were given prices today by the company.

Chrysler now falls in line with Ford that announced last week it was going back to zero percent financing for six years as an incentive to lure customers back into the showroom. While Ford is willing to offer the deal to people with borderline credit, Chrysler is only offering its promotion to well qualified customers. For its part, GM is offering anywhere from $500 to $1,500 cash back on most of its models right now.

Both incentive deals by Ford and GM end after the upcoming Labor Day weekend, while Chrysler new zero percent financing deal will go on until Sept. 30th.

[Source: The Detroit News]

Today the Chrysler Group announced that all customers would be eligible for employee pricing on qualifying 2006 and select 2005 model year Chrysler, Jeep and Dodge vehicles as of July 1st. The Employee Pricing Plus program also offers customers zero percent financing for 36 months on most models financed through Chrysler Financial. Instead of financing, customers can also choose $3,500 cash back. But that's not all, customer's will also have the option to return a vehicle under the 30-day Return Program (providing certain conditions are met).

Which vehicles are excluded, you ask? The Dodge Viper, Ram SRT-10 and Sprinter van.

In order to promote the new Employee Pricing Plus program, participating dealerships will be until midnight starting tomorrow through July 5th. The company has also launched the "Ask Dr. Z" advertising campaign, which we'll have more details about in a later post.

[Source: Chrysler]