The dramatic decline in diesel fuel prices is driving up U.S. sales of diesel-powered vehicles from European carmakers.
Volkswagen dealers across the country say they can't get enough of the Jetta TDI sedan or station wagon.
"Things have changed, and diesel Jettas are moving. I want more," says Casey Gunther, owner of two VW stores in Fort Lauderdale, Fla.
On Tuesday, June 16, the average nationwide price for a gallon of diesel was $2.60, according to AAA. That compared with $2.67 for regular unleaded gasoline and $2.94 for premium.
A year ago, when diesel hit $4.85 a gallon, European manufacturers wondered how they would sell their new crop of 50-state diesel vehicles, which began arriving last year. VW, Audi, Mercedes-Benz and BMW all sell 50-state diesels in the United States.
Volkswagen sold 3,862 diesel Jettas in May, up from 2,253 in April.
"We would expect equal or higher sales of diesels this month," a VW spokesman says.
About 36 percent of total Jetta sales in May were diesels, compared with an average of 30 percent earlier in the year, the spokesman says.
Volkswagen says demand for the Jetta SportWagen is particularly strong.
Richard Fisher, whose Autobarn dealership group has three VW stores in the Chicago suburbs, says he has "pretty much run out" of TDI SportWagens.
Mercedes-Benz sold 8,242 diesel-powered M-class SUVs from January through May, or 16.5 percent of the total for the vehicle. For all of last year, the diesel version accounted for 13.7 percent of M-class sales.
Through May, diesels accounted for 21.8 percent (5,440) of Mercedes GL sales and 15.1 percent (1,312) of R-class sales, up from 13.7 percent for the GL and 10 percent for the R class in 2008.
Showing posts with label 2009 Auto Sales. Show all posts
Showing posts with label 2009 Auto Sales. Show all posts
Tuesday, June 23, 2009
Monday, June 22, 2009
Mercedes, BMW Used Car Sales Lead Georgia Market
Toyota Prado and Corolla are the bestselling cars in Georgia, according to one of the leading auto dealership companies Matemotors and Toyota Centre Tbilisi . Among Mercedes models ML-Class is the most popular, Mercedes Centre Tbilisi claims.
“The bestseller of the year 2008/2009 is Toyota Prado. It’s a Japanese vehicle of the highest quality for which demand is constant. Such Japanese brands as Toyota Nissan and Mitsubishi are quite popular in Georgia today also,” Irakli Zaria, General Manager of Matemotors Ltd, told The FINANCIAL.
“As the auto market grows up the population has an increasing choice of brands and models. But the Japanese brands occupy a very special niche. Among these brands Toyota is the leader in sales. The popularity of Toyota among other brands can be explained very easily: incomparable quality, refined design and acceptable prices,” Zaria says.
“The most popular and bestselling cars for the year 2008/2009 in Georgia, according to the sales of our company is the Toyota Prado and Corolla. The popularity of these brands among Georgians are due to their quality, prices and brand. From the above mentioned favourite brands our company in 2008 sold 400 Prado and 350 Corolla. In the first quarter of 2009, we sold 90 Prado and 80 Corolla,” says Tina Revazishvili, representative of Toyota Center Tbilisi .
The total number of cars sold by Toyota Centre Tbilisi in 2008 was 3,773.
After the beginning of the global recession Toyota decreased prices on cars by 15%.
“The most popular and bestselling car for the year 2008/2009 in Georgia, according to the sales of our company is the ML-Class. Of the above mentioned favourite brand among Georgians, our company sold 35 cars in 2008 and in the first quarter of 2009 - 7,” says Lasha Lomidze, Sales Manager of Mercedes-Benz Georgia.
Mercedes-Benz has imported 138 passenger cars; 30 commercial vehicles in 2008 and 21 passenger cars and 1 commercial vehicle in 2009.
“In total in 2008 we sold 125 passenger cars and 16 commercial vehicles. In 2009 we sold 14 passenger cars and 2 commercial vehicles,” Lomidze says.
After the beginning of the global recession, Mercedes-Benz Georgia has decreased prices on cars by 10-20%.
“In the US and the West car producing companies started creating the hybrid-electric vehicle, which has an additional electric engine, economizing fuel consumption. As Lomidze, Mercedes-Benz notes, in Georgia the demand for such autos has not increased.
“These cars have a great future I think, as a new combined type of engine is a great saving of money on fuel and at the same tame it’s less polluting. The only minus is that it’s less powerful, but this problem is being worked on,” Zaria declares.
“Matemotors doesn’t sell hybrid-electric vehicles yet. The reason is that the new type of engine requires special service which is not available at the moment. The second reason is demand, which is still very low. The general part of the population is not informed enough about the advantages of this new generation of cars, and for the rest the price is just not realistic. However in a few years the hybrid engines will gradually overtake petrol engines,” Zaria notes.
After the beginning of the global recession we used to have sales of up to 15-20%.
“Now we offer our customers interest-free credit allowing purchasing of a vehicle by instalments without any percent charge. The credit duration is one year,” Zaria says.
According to information on the car sales web pages auto.ge and myauto.ge, the leading car makes for second hand cars are Mercedes-Benz and BMW.
According to the information of myauto.ge, the leading top ten car brands offered for sale on our web page are as follows: Mercedes-Benz, with a total number of 2,692, BMW - 2,264, Volkswagen - 1,304, Mitsubishi - 1,169, Honda - 890, Opel - 851, Toyota - 731, Audi - 651, Nissan - 411, Subaru - 407.
“On the web pages of auto.ge the biggest number of cars offered for sale are Mercedes-Benz and BMW: C180-104, E200-59, E320-45, 220-40, E230-36, ML 320-33, 190-32, C 230-32, 230-28. BMW: 318-104, 525-80, 528-67, 520-58, 316-55, 320-49, X5-46, 523-24, 728-13,” says Zaza Dzadzamia, founder and Director General of the web page auto.ge.
“The bestseller of the year 2008/2009 is Toyota Prado. It’s a Japanese vehicle of the highest quality for which demand is constant. Such Japanese brands as Toyota Nissan and Mitsubishi are quite popular in Georgia today also,” Irakli Zaria, General Manager of Matemotors Ltd, told The FINANCIAL.
“As the auto market grows up the population has an increasing choice of brands and models. But the Japanese brands occupy a very special niche. Among these brands Toyota is the leader in sales. The popularity of Toyota among other brands can be explained very easily: incomparable quality, refined design and acceptable prices,” Zaria says.
“The most popular and bestselling cars for the year 2008/2009 in Georgia, according to the sales of our company is the Toyota Prado and Corolla. The popularity of these brands among Georgians are due to their quality, prices and brand. From the above mentioned favourite brands our company in 2008 sold 400 Prado and 350 Corolla. In the first quarter of 2009, we sold 90 Prado and 80 Corolla,” says Tina Revazishvili, representative of Toyota Center Tbilisi .
The total number of cars sold by Toyota Centre Tbilisi in 2008 was 3,773.
After the beginning of the global recession Toyota decreased prices on cars by 15%.
“The most popular and bestselling car for the year 2008/2009 in Georgia, according to the sales of our company is the ML-Class. Of the above mentioned favourite brand among Georgians, our company sold 35 cars in 2008 and in the first quarter of 2009 - 7,” says Lasha Lomidze, Sales Manager of Mercedes-Benz Georgia.
Mercedes-Benz has imported 138 passenger cars; 30 commercial vehicles in 2008 and 21 passenger cars and 1 commercial vehicle in 2009.
“In total in 2008 we sold 125 passenger cars and 16 commercial vehicles. In 2009 we sold 14 passenger cars and 2 commercial vehicles,” Lomidze says.
After the beginning of the global recession, Mercedes-Benz Georgia has decreased prices on cars by 10-20%.
“In the US and the West car producing companies started creating the hybrid-electric vehicle, which has an additional electric engine, economizing fuel consumption. As Lomidze, Mercedes-Benz notes, in Georgia the demand for such autos has not increased.
“These cars have a great future I think, as a new combined type of engine is a great saving of money on fuel and at the same tame it’s less polluting. The only minus is that it’s less powerful, but this problem is being worked on,” Zaria declares.
“Matemotors doesn’t sell hybrid-electric vehicles yet. The reason is that the new type of engine requires special service which is not available at the moment. The second reason is demand, which is still very low. The general part of the population is not informed enough about the advantages of this new generation of cars, and for the rest the price is just not realistic. However in a few years the hybrid engines will gradually overtake petrol engines,” Zaria notes.
After the beginning of the global recession we used to have sales of up to 15-20%.
“Now we offer our customers interest-free credit allowing purchasing of a vehicle by instalments without any percent charge. The credit duration is one year,” Zaria says.
According to information on the car sales web pages auto.ge and myauto.ge, the leading car makes for second hand cars are Mercedes-Benz and BMW.
According to the information of myauto.ge, the leading top ten car brands offered for sale on our web page are as follows: Mercedes-Benz, with a total number of 2,692, BMW - 2,264, Volkswagen - 1,304, Mitsubishi - 1,169, Honda - 890, Opel - 851, Toyota - 731, Audi - 651, Nissan - 411, Subaru - 407.
“On the web pages of auto.ge the biggest number of cars offered for sale are Mercedes-Benz and BMW: C180-104, E200-59, E320-45, 220-40, E230-36, ML 320-33, 190-32, C 230-32, 230-28. BMW: 318-104, 525-80, 528-67, 520-58, 316-55, 320-49, X5-46, 523-24, 728-13,” says Zaza Dzadzamia, founder and Director General of the web page auto.ge.
Thursday, June 18, 2009
CarMax Earning Drop 3% in Q1.2009, Used Sales Better Than New
CarMax Inc. posted a 3 percent profit decline, better than analysts expected, as sales of the used vehicles that account for most of its business fell less sharply than sales of new cars.
Earnings for the first quarter ended May 31 dropped to $28.7 million from $29.6 million a year earlier. Revenue decreased 17 percent to $1.83 billion as consumers battled the longest recession since the Great Depression.
CEO Tom Folliard said reduced waste and increased efficiency at CarMax stores helped limit the earnings decline the "in the midst of the most challenging economic and credit environments in our history."
Unit sales of used vehicles, which account for about 96 percent the company's volume in 2008, fell 12 percent. New-car demand dropped 42 percent.
CarMax ranks 26th in the Automotive News ranking of the biggest U.S. dealership groups, based on 15,485 total new vehicle sales in 2008. The company sold 377,244 used vehicles last year, ranking it as the nation's largest seller of used cars.
Earnings for the first quarter ended May 31 dropped to $28.7 million from $29.6 million a year earlier. Revenue decreased 17 percent to $1.83 billion as consumers battled the longest recession since the Great Depression.
CEO Tom Folliard said reduced waste and increased efficiency at CarMax stores helped limit the earnings decline the "in the midst of the most challenging economic and credit environments in our history."
Unit sales of used vehicles, which account for about 96 percent the company's volume in 2008, fell 12 percent. New-car demand dropped 42 percent.
CarMax ranks 26th in the Automotive News ranking of the biggest U.S. dealership groups, based on 15,485 total new vehicle sales in 2008. The company sold 377,244 used vehicles last year, ranking it as the nation's largest seller of used cars.
Wednesday, June 17, 2009
SUVs, trucks Dealers Facing Tight Supply
If you've got your eye on a new SUV, don't blink.It might be gone.
Even with the auto industry mired in depression – sales are down nationally 36.5 percent – big vehicles such as the Ford Expedition and Chevy Tahoe are in tight supply because of drastic production cuts that automakers imposed last year as sales began to plummet.
Now, a year after $4-a-gallon gas nearly killed SUVs, some dealers in this market are selling them for window-sticker prices. Moreover, most late-model used pickups and SUVs have regained all of the thousands of dollars in trade-in value they lost last summer, dealers say.
Dealers love for demand to exceed supply, but many are concerned that they could run short of profitable trucks if the economy improves in the second half of the year. Their supply of cars – particularly compacts – remains high, they say.
"When you go through the inventory, you find we've got an 18-day supply of Expedition ELs," said Sam Pack, who owns Five Star Ford in North Richland Hills, Sam Pack's Five Star Ford in Carrollton and Ford Country in Lewisville. "That's too low. It starts costing you sales."
"We're very short of Expeditions and [Lincoln] Navigators," said Randall Reed, owner of Prestige Ford-Lincoln-Mercury in Garland and Park Cities Ford-Lincoln-Mercury in Dallas. "We have been selling record numbers of [crossover] Flexes because of it, I think."
Some full-size pickups such as the Toyota Tundra are also hard to get. Truck and SUV production was initially slashed last summer when fuel prices began to skyrocket. As the economy continued to crumble, it was cut further.
The General Motors Assembly Plant in Arlington, for example – GM's only factory building full-size SUVs – is in the midst of a two-month shutdown. Last month, overall car and truck production in North America was 45.1 percent lower than in May 2008, according to Automotive News.
Changing times
Tight supplies could become the norm, some dealers say. GM and Chrysler LLC, which are in bankruptcy, have dramatically reduced production – as has Ford Motor Co.
With fewer factories, the domestic automakers may struggle to meet demand for some vehicles when the economy improves. And they may not view it as such a bad problem.
"GM wants them to come in and immediately hit the streets," said Tom Durant, who owns Classic Chevrolet in Grapevine, the largest Chevy dealership in the nation. "Prices will be firmer, and margins will be better. They don't want a bunch of vehicles that we have to keep on the lot for several weeks."
Drew Campbell, president of the New Car Dealers Association of Metropolitan Dallas, added: "It's a lot drier out there than people realize."
For example, the back three rows at Five Star Ford in Carrollton – the store's SUV sector – were empty recently because the dealership had sold all of its Expeditions and Explorers, said Brian Huth, general manager of the dealership.
"I told my guys it looked like we were going out of business," Huth said. "But I think dealers are going to have to learn to sell with less inventory on the lot."
Since then, he and his staff have hustled to buy more new and late-model SUVs from other dealers and at auctions. The dealership – which sold 176 cars and trucks last month – is contending as well with occasional shortages of compact Escape SUVs and a fairly tight supply of full-size F-150 pickups.
'Pretty tight'
Much of the shortage in Expeditions is related to Ford's decision to move production from Michigan to a truck factory in Kentucky, which took about three months, said Doug Scott, Ford's truck marketing manager. Although production has resumed, supplies remain limited because Expedition sales have been 20 percent higher than Ford had forecast.
"We knew we were going to run short," Scott said. "With what we were going through last year, we were scaling back production right up to the end of the year. Then we moved production of the Expedition."
Meanwhile, at Toyota of Richardson, Steve Grogean grapples with a limited supply of Tundra pickups and Sequoia SUVs. He thinks Toyota simply overreacted when sales began dropping by amounts the company had never seen before. Toyota recently announced that it's restoring some of its truck production.
"If business picks up as it usually does in the summer, things could get pretty tight in the next 45 to 60 days," said Grogean, vice president and general manager of the dealership.
For the past year, dealers accustomed to having one of everything on the lot have learned to function on smaller inventories, noted Paul Taylor, chief economist at the National Automobile Dealers Association.
"But when the market comes back, inventories will increase to a 60-day supply," he said.
Veteran dealer Ron Kutz isn't so sure. He thinks tighter inventories are probably good for the auto industry.
"In the '80s, we ran a Nissan store off a 30-day supply of vehicles," said Kutz, general manager of Grapevine Dodge-Chrysler-Jeep. "There's no way GM or Chrysler should have 120-day supplies. It just makes no sense financially."
CAR, TRUCK PRODUCTION
Production in North America through June 13, compared with the same period last year:
Cars
1,509,084
-49.4%
Trucks
1,745,752
-50.9%
Total
3,254,836
-50.2%
Even with the auto industry mired in depression – sales are down nationally 36.5 percent – big vehicles such as the Ford Expedition and Chevy Tahoe are in tight supply because of drastic production cuts that automakers imposed last year as sales began to plummet.
Now, a year after $4-a-gallon gas nearly killed SUVs, some dealers in this market are selling them for window-sticker prices. Moreover, most late-model used pickups and SUVs have regained all of the thousands of dollars in trade-in value they lost last summer, dealers say.
Dealers love for demand to exceed supply, but many are concerned that they could run short of profitable trucks if the economy improves in the second half of the year. Their supply of cars – particularly compacts – remains high, they say.
"When you go through the inventory, you find we've got an 18-day supply of Expedition ELs," said Sam Pack, who owns Five Star Ford in North Richland Hills, Sam Pack's Five Star Ford in Carrollton and Ford Country in Lewisville. "That's too low. It starts costing you sales."
"We're very short of Expeditions and [Lincoln] Navigators," said Randall Reed, owner of Prestige Ford-Lincoln-Mercury in Garland and Park Cities Ford-Lincoln-Mercury in Dallas. "We have been selling record numbers of [crossover] Flexes because of it, I think."
Some full-size pickups such as the Toyota Tundra are also hard to get. Truck and SUV production was initially slashed last summer when fuel prices began to skyrocket. As the economy continued to crumble, it was cut further.
The General Motors Assembly Plant in Arlington, for example – GM's only factory building full-size SUVs – is in the midst of a two-month shutdown. Last month, overall car and truck production in North America was 45.1 percent lower than in May 2008, according to Automotive News.
Changing times
Tight supplies could become the norm, some dealers say. GM and Chrysler LLC, which are in bankruptcy, have dramatically reduced production – as has Ford Motor Co.
With fewer factories, the domestic automakers may struggle to meet demand for some vehicles when the economy improves. And they may not view it as such a bad problem.
"GM wants them to come in and immediately hit the streets," said Tom Durant, who owns Classic Chevrolet in Grapevine, the largest Chevy dealership in the nation. "Prices will be firmer, and margins will be better. They don't want a bunch of vehicles that we have to keep on the lot for several weeks."
Drew Campbell, president of the New Car Dealers Association of Metropolitan Dallas, added: "It's a lot drier out there than people realize."
For example, the back three rows at Five Star Ford in Carrollton – the store's SUV sector – were empty recently because the dealership had sold all of its Expeditions and Explorers, said Brian Huth, general manager of the dealership.
"I told my guys it looked like we were going out of business," Huth said. "But I think dealers are going to have to learn to sell with less inventory on the lot."
Since then, he and his staff have hustled to buy more new and late-model SUVs from other dealers and at auctions. The dealership – which sold 176 cars and trucks last month – is contending as well with occasional shortages of compact Escape SUVs and a fairly tight supply of full-size F-150 pickups.
'Pretty tight'
Much of the shortage in Expeditions is related to Ford's decision to move production from Michigan to a truck factory in Kentucky, which took about three months, said Doug Scott, Ford's truck marketing manager. Although production has resumed, supplies remain limited because Expedition sales have been 20 percent higher than Ford had forecast.
"We knew we were going to run short," Scott said. "With what we were going through last year, we were scaling back production right up to the end of the year. Then we moved production of the Expedition."
Meanwhile, at Toyota of Richardson, Steve Grogean grapples with a limited supply of Tundra pickups and Sequoia SUVs. He thinks Toyota simply overreacted when sales began dropping by amounts the company had never seen before. Toyota recently announced that it's restoring some of its truck production.
"If business picks up as it usually does in the summer, things could get pretty tight in the next 45 to 60 days," said Grogean, vice president and general manager of the dealership.
For the past year, dealers accustomed to having one of everything on the lot have learned to function on smaller inventories, noted Paul Taylor, chief economist at the National Automobile Dealers Association.
"But when the market comes back, inventories will increase to a 60-day supply," he said.
Veteran dealer Ron Kutz isn't so sure. He thinks tighter inventories are probably good for the auto industry.
"In the '80s, we ran a Nissan store off a 30-day supply of vehicles," said Kutz, general manager of Grapevine Dodge-Chrysler-Jeep. "There's no way GM or Chrysler should have 120-day supplies. It just makes no sense financially."
CAR, TRUCK PRODUCTION
Production in North America through June 13, compared with the same period last year:
Cars
1,509,084
-49.4%
Trucks
1,745,752
-50.9%
Total
3,254,836
-50.2%
Opel Incentives June 2009 to Boost Sales, Save Jobs
General Motors Corp.’s European Opel unit, rescued by German state aid last month, may have to slash prices by 40 percent to sell enough cars and fulfill a pledge to save jobs in the country.
“The market will be a combination of struggling brands and cheap cars,” if Opel gets restructured as planned, said Simon Empson, managing director of Broadspeed.com, a U.K. online car retailer. He predicts the carmaker, which operates Opel in Europe and Vauxhall in the U.K., will have to discount models by “40 percent or more” to meet its sales targets.
Canadian auto-parts maker Magna International Inc. is leading the group negotiating to buy the GM unit. Because of the structure of the deal, the new owners may be more interested in boosting output than generating profit, said Tim Adam, a corporate finance professor at Humboldt University in Berlin. The company agreed to save German jobs in return for 1.5 billion euros ($2.1 billion) in short-term loans from the government.
Ford Motor Co. and PSA Peugeot Citroen may be drawn into a price war if a Magna-led Opel pushes discounts, stoking concern the European auto industry will struggle to recover from the worst recession since World War II because consumers will become hooked on markdowns.
“Everybody is looking to generate cash, and the quickest but not necessarily the most effective way is to discount,” said Stefan Bratzel, director of the Center of Automotive Research at the University of Applied Sciences in Bergisch Gladbach, Germany. “Peugeot, Renault and Ford need to make sure they don’t fall by the wayside.”
Production Curbs
European automakers probably will build 17.7 million cars this year, or 10.4 million fewer than their factories are capable of churning out, according to IHS Global Insight. GM’s European operations may use less than 62 percent of production capacity this year, according to estimates from the research firm.
Opel aims to sell 2 million cars a year once it can market vehicles worldwide, perhaps in about five years, according to Klaus Franz, Opel’s top labor leader. That would require the carmaker to boost capacity by more than 200,000 vehicles. The current factories can produce 1.76 million cars a year, according to Global Insight.
“We reject the assertion that Opel has to reduce prices by 40 percent to run factories at full capacity,” Frank Klaas, a spokesman for the carmaker, said by telephone. “This is complete nonsense.”
Job Protection
GM, the Detroit automaker selling Opel while reorganizing in bankruptcy, employs half its European workforce in Germany, and Aurora, Ontario-based Magna has assured officials that all four factories in the country will remain open. The deal depends on a total of 4.5 billion euros in loans from European governments.
Magna’s offer, with financial backing from Moscow-based OAO Sberbank, includes a pledge to expand in Russia, further adding to speculation that Opel will push output with cheaper cars. The Canadian company beat Fiat SpA in becoming preferred bidder, in part because the Italian carmaker wanted to trim production capacity at Opel and Vauxhall.
The interests of the new Opel ownership group may lead to decisions that extend the carmaker’s losses, Humboldt University’s Adam said.
“None of the new owners have strong incentives to maximize profits in the years to come,” he said. “Rather, the new owners have incentives to increase costs.”
Magna will benefit directly from sales of parts to Opel, while GM will get patent fees and technology royalties for each car sold, Adam said. Sberbank may gain from a planned Russian carmaking partnership with OAO GAZ, which the lender also has financed, he said.
GM in Russia
The sale of Opel won’t alter GM’s plans to start production of the Chevrolet Cruze this summer at a St. Petersburg factory, Hans-Juergen Michel, GM Russia chief, told reporters today.
Magna, which grew from founder Frank Stronach’s one-man tool-and-die shop to become one of the world’s top auto-parts suppliers, insists profit at Opel is a priority. Chief Executive Officer Siegfried Wolf said June 3 that unprofitable companies are “not good for society.” Magna spokesman Daniel Witzani declined to comment for this story.
And Magna may still close Opel plants. Labor leader Franz said June 3 that there would be tough negotiations to keep factories open in Luton, England, and Antwerp, Belgium. The deal may lead to as many as 11,000 jobs cuts, including 2,600 in Germany, according to German officials.
‘Looking for Margins’
“No one as smart and entrepreneurial as Frank Stronach is going to make that kind of a move without looking for margins,” said Tim Urquhart, an analyst with Global Insight in London.
Magna will hold 20 percent and Sberbank will own 35 percent of Opel, based in the Frankfurt suburb of Ruesselsheim. Workers will receive a 10 percent stake in exchange for $1.2 billion in concessions, and GM will retain about 35 percent. GM expects a final contract by July.
Peugeot expects European Union authorities will “remain vigilant to ensure that European competition rules are fully respected,” spokesman Pierre-Olivier Salmon said by telephone. He declined to comment on the potential impact of the deal on pricing. John Gardiner, a spokesman for Ford in Cologne, Germany, declined to comment on pricing.
Ford is wary that government loans may give Opel an unfair advantage, saying it is “imperative” German aid to Opel does “not breach EU state aid, internal market rules or competition policy.”
Ford Wants Fairness
“It is vital that a level playing field is enforced to ensure a fair and equitable distribution of any governmental assistance,” the Dearborn, Michigan-based automaker said in a statement in response to questions about Magna’s plans.
Price cuts could reverse some steps taken by carmakers to weather the recession. Ford, the top car retailer in the U.K., has raised prices in Britain twice this year by a total of 8.6 percent. Opel raised prices in the U.K. almost 5 percent in February. Both carmakers cited currency fluctuations in addition to a slumping market.
Since the Opel deal, Peugeot Citroen, the continent’s second-largest carmaker, has said it’s open to partnerships to spur growth amid the worst auto-market slump in 15 years. The expected Opel purchase by Magna makes size more important in maintaining profits, Chairman Thierry Peugeot said June 1.
Ultimately, Opel will have to be able to finance itself, because the planned state funding isn’t enough to make Opel a viable, independent carmaker, said Bergisch Gladbach’s Bratzel.
While competitors may cry foul if a state-funded Opel cuts prices too aggressively, Magna’s lack of experience in selling cars, especially the complex relationship between new-car prices, financing rates and used-car values, could force Opel into discounts, Broadspeed’s Empson said.
“Magna’s understanding of new- and used-car markets could probably be written on the back of a cigarette package,” he said.
“The market will be a combination of struggling brands and cheap cars,” if Opel gets restructured as planned, said Simon Empson, managing director of Broadspeed.com, a U.K. online car retailer. He predicts the carmaker, which operates Opel in Europe and Vauxhall in the U.K., will have to discount models by “40 percent or more” to meet its sales targets.
Canadian auto-parts maker Magna International Inc. is leading the group negotiating to buy the GM unit. Because of the structure of the deal, the new owners may be more interested in boosting output than generating profit, said Tim Adam, a corporate finance professor at Humboldt University in Berlin. The company agreed to save German jobs in return for 1.5 billion euros ($2.1 billion) in short-term loans from the government.
Ford Motor Co. and PSA Peugeot Citroen may be drawn into a price war if a Magna-led Opel pushes discounts, stoking concern the European auto industry will struggle to recover from the worst recession since World War II because consumers will become hooked on markdowns.
“Everybody is looking to generate cash, and the quickest but not necessarily the most effective way is to discount,” said Stefan Bratzel, director of the Center of Automotive Research at the University of Applied Sciences in Bergisch Gladbach, Germany. “Peugeot, Renault and Ford need to make sure they don’t fall by the wayside.”
Production Curbs
European automakers probably will build 17.7 million cars this year, or 10.4 million fewer than their factories are capable of churning out, according to IHS Global Insight. GM’s European operations may use less than 62 percent of production capacity this year, according to estimates from the research firm.
Opel aims to sell 2 million cars a year once it can market vehicles worldwide, perhaps in about five years, according to Klaus Franz, Opel’s top labor leader. That would require the carmaker to boost capacity by more than 200,000 vehicles. The current factories can produce 1.76 million cars a year, according to Global Insight.
“We reject the assertion that Opel has to reduce prices by 40 percent to run factories at full capacity,” Frank Klaas, a spokesman for the carmaker, said by telephone. “This is complete nonsense.”
Job Protection
GM, the Detroit automaker selling Opel while reorganizing in bankruptcy, employs half its European workforce in Germany, and Aurora, Ontario-based Magna has assured officials that all four factories in the country will remain open. The deal depends on a total of 4.5 billion euros in loans from European governments.
Magna’s offer, with financial backing from Moscow-based OAO Sberbank, includes a pledge to expand in Russia, further adding to speculation that Opel will push output with cheaper cars. The Canadian company beat Fiat SpA in becoming preferred bidder, in part because the Italian carmaker wanted to trim production capacity at Opel and Vauxhall.
The interests of the new Opel ownership group may lead to decisions that extend the carmaker’s losses, Humboldt University’s Adam said.
“None of the new owners have strong incentives to maximize profits in the years to come,” he said. “Rather, the new owners have incentives to increase costs.”
Magna will benefit directly from sales of parts to Opel, while GM will get patent fees and technology royalties for each car sold, Adam said. Sberbank may gain from a planned Russian carmaking partnership with OAO GAZ, which the lender also has financed, he said.
GM in Russia
The sale of Opel won’t alter GM’s plans to start production of the Chevrolet Cruze this summer at a St. Petersburg factory, Hans-Juergen Michel, GM Russia chief, told reporters today.
Magna, which grew from founder Frank Stronach’s one-man tool-and-die shop to become one of the world’s top auto-parts suppliers, insists profit at Opel is a priority. Chief Executive Officer Siegfried Wolf said June 3 that unprofitable companies are “not good for society.” Magna spokesman Daniel Witzani declined to comment for this story.
And Magna may still close Opel plants. Labor leader Franz said June 3 that there would be tough negotiations to keep factories open in Luton, England, and Antwerp, Belgium. The deal may lead to as many as 11,000 jobs cuts, including 2,600 in Germany, according to German officials.
‘Looking for Margins’
“No one as smart and entrepreneurial as Frank Stronach is going to make that kind of a move without looking for margins,” said Tim Urquhart, an analyst with Global Insight in London.
Magna will hold 20 percent and Sberbank will own 35 percent of Opel, based in the Frankfurt suburb of Ruesselsheim. Workers will receive a 10 percent stake in exchange for $1.2 billion in concessions, and GM will retain about 35 percent. GM expects a final contract by July.
Peugeot expects European Union authorities will “remain vigilant to ensure that European competition rules are fully respected,” spokesman Pierre-Olivier Salmon said by telephone. He declined to comment on the potential impact of the deal on pricing. John Gardiner, a spokesman for Ford in Cologne, Germany, declined to comment on pricing.
Ford is wary that government loans may give Opel an unfair advantage, saying it is “imperative” German aid to Opel does “not breach EU state aid, internal market rules or competition policy.”
Ford Wants Fairness
“It is vital that a level playing field is enforced to ensure a fair and equitable distribution of any governmental assistance,” the Dearborn, Michigan-based automaker said in a statement in response to questions about Magna’s plans.
Price cuts could reverse some steps taken by carmakers to weather the recession. Ford, the top car retailer in the U.K., has raised prices in Britain twice this year by a total of 8.6 percent. Opel raised prices in the U.K. almost 5 percent in February. Both carmakers cited currency fluctuations in addition to a slumping market.
Since the Opel deal, Peugeot Citroen, the continent’s second-largest carmaker, has said it’s open to partnerships to spur growth amid the worst auto-market slump in 15 years. The expected Opel purchase by Magna makes size more important in maintaining profits, Chairman Thierry Peugeot said June 1.
Ultimately, Opel will have to be able to finance itself, because the planned state funding isn’t enough to make Opel a viable, independent carmaker, said Bergisch Gladbach’s Bratzel.
While competitors may cry foul if a state-funded Opel cuts prices too aggressively, Magna’s lack of experience in selling cars, especially the complex relationship between new-car prices, financing rates and used-car values, could force Opel into discounts, Broadspeed’s Empson said.
“Magna’s understanding of new- and used-car markets could probably be written on the back of a cigarette package,” he said.
Tuesday, June 16, 2009
'Cash for Clunkers' Not Much Help for Sales or Environment?
The “Cash for Clunkers” bill passed by the U.S. House of Representatives will not do much to benefit the environment or to stimulate vehicle sales.
That’s the conclusion drawn by analysts at Edmunds.com, a leading site for information about all things automotive.
The House bill’s provisions would allow car owners to get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less on one that gets at last 22 miles per gallon. The voucher would grow to $4,500 if the mileage of the new car were 10 mpg higher than the old vehicle.
Owners of pickup trucks, minivans and sport-utility vehicles that get 18 mpg or less could receive a $3,500 voucher if a comparable new vehicle averaged at least 2 mpg more than the old one. A $4,500 voucher could be obtained if the mileage of the new truck, minivan or SUV were at least 5 mpg higher than the older one.
To qualify, the participant would have to own the vehicle for a year and the vehicle would have to be crushed. The $4 billion program would last for one year or until the funding ran out.
“If you can get more than $4,500 for your vehicle, you’re better off selling it or trading it in without taking advantage of Cash for Clunkers rebate,” noted Karl Brauer, Edmunds editor-in-chief.
Jeremy Anwyl, Edmunds CEO, noted that “in terms of vehicles sales, the only consumers who would be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”
Anwyl believes the one-year ownership requirement should be eliminated. “If the goal is to remove old cars from the road, why should it matter who owns hem and for how long?” he asked.
He also believes the scrappage requirement should be eliminated so that more people could benefit from the program. He contends that if owners of newer gas guzzlers could get above a fair value for their trade-ins, more people would participate.
As to the environmental benefits, John O’Dell, Edmunds green car adviser, commented that “The idea sounds like it has good green credentials, but it isn’t likely to move the needle very far.”
He said a counterproposal advanced by California Sen. Diane Feinstein and other senators would make more sense.
Under their proposal, a car owner’s trade-in would need to get 17 mpg or less to qualify and only new cars getting at least 24 mpg would qualify. Owners would get a $2,500 voucher for a new car that gets 7 mpg more their trade-in, a $3,500 voucher for cars that have a 10-mpg improvement and a $4,500 voucher for cars that get 13 mpg more.
The senators claim their plan would save 32 percent more oil, save drivers 176 gallons of gasoline a year and cut greenhouse gas emissions by 32 percent more than the House proposal. The senators program would expire in 2012.
Some vehicles that would qualify. Edmunds compiled this sample list.
+ Cash For Clunkers Car Buying Stimulus Bill
1996 Honda Passport ; 15 mpg, $1,227 trade-in price
1997 Lincoln Continental: 18 mpg, $1,179 trade-in price
1998 Chevrolet Silverado; 14 mpg, $3,378 trade-in price
1995 Audi A6; 18 mpg, $1,261 trade-in price
1996 Toyota Land Cruiser: 13 mpg, $4,042 trade-in price
That’s the conclusion drawn by analysts at Edmunds.com, a leading site for information about all things automotive.
The House bill’s provisions would allow car owners to get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less on one that gets at last 22 miles per gallon. The voucher would grow to $4,500 if the mileage of the new car were 10 mpg higher than the old vehicle.
Owners of pickup trucks, minivans and sport-utility vehicles that get 18 mpg or less could receive a $3,500 voucher if a comparable new vehicle averaged at least 2 mpg more than the old one. A $4,500 voucher could be obtained if the mileage of the new truck, minivan or SUV were at least 5 mpg higher than the older one.
To qualify, the participant would have to own the vehicle for a year and the vehicle would have to be crushed. The $4 billion program would last for one year or until the funding ran out.
“If you can get more than $4,500 for your vehicle, you’re better off selling it or trading it in without taking advantage of Cash for Clunkers rebate,” noted Karl Brauer, Edmunds editor-in-chief.
Jeremy Anwyl, Edmunds CEO, noted that “in terms of vehicles sales, the only consumers who would be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”
Anwyl believes the one-year ownership requirement should be eliminated. “If the goal is to remove old cars from the road, why should it matter who owns hem and for how long?” he asked.
He also believes the scrappage requirement should be eliminated so that more people could benefit from the program. He contends that if owners of newer gas guzzlers could get above a fair value for their trade-ins, more people would participate.
As to the environmental benefits, John O’Dell, Edmunds green car adviser, commented that “The idea sounds like it has good green credentials, but it isn’t likely to move the needle very far.”
He said a counterproposal advanced by California Sen. Diane Feinstein and other senators would make more sense.
Under their proposal, a car owner’s trade-in would need to get 17 mpg or less to qualify and only new cars getting at least 24 mpg would qualify. Owners would get a $2,500 voucher for a new car that gets 7 mpg more their trade-in, a $3,500 voucher for cars that have a 10-mpg improvement and a $4,500 voucher for cars that get 13 mpg more.
The senators claim their plan would save 32 percent more oil, save drivers 176 gallons of gasoline a year and cut greenhouse gas emissions by 32 percent more than the House proposal. The senators program would expire in 2012.
Some vehicles that would qualify. Edmunds compiled this sample list.
+ Cash For Clunkers Car Buying Stimulus Bill
1996 Honda Passport ; 15 mpg, $1,227 trade-in price
1997 Lincoln Continental: 18 mpg, $1,179 trade-in price
1998 Chevrolet Silverado; 14 mpg, $3,378 trade-in price
1995 Audi A6; 18 mpg, $1,261 trade-in price
1996 Toyota Land Cruiser: 13 mpg, $4,042 trade-in price
Monday, June 15, 2009
Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
A federal plan designed to boost sales of automobiles with better gas mileage is getting closer to passing Congress, despite its uneven provisions for improving fuel efficiency. The Consumer Assistance to Recycle and Save and Act (CARS) will provide consumers with vouchers ranging from $3,500 to $4,500 for trading in their old vehicles for new cars or trucks that offer higher miles-per-gallon ratings. Based on data contained in the bill that passed the House of Representatives, Edmunds.com compiled a list of vehicles that would be eligible for the so-called “Cash for Clunkers” program.
According to Edmunds, owners of passenger cars or minivans that get 18 mpg or less could receive a $3,500 rebate for buying new cars or minivans with 22 mpg, and $4,500 for those with 28 mpg or higher. But owners of light-duty trucks would only have to purchase new trucks that get 20 mpg to receive the $3,500 voucher, and the threshold for large light-duty trucks is only 1 mpg over trade-ins that currently get 15 mpg.
Lawmakers hope CARS, which has passed in the Hoouse of Representatives and is currently being considered by the U.S. Senate, will prompt 500,000 to 1 million new auto sales. Edmunds experts, though, believe the plan will be lucky if it yields even half a million new sales. “A program intended to stimulate new car sales should target people in the market for a car, but the program does not,” says Edmunds.com CEO Jeremy Anwyl. “The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile.”
This following list is based on the requirements set forth in the most recent version of the “Cash for Clunkers” bill and was compiled on June 11, 2009.
We compiled this list by searching the Edmunds.com vehicle database for models that have an average fuel economy of 18 mpg or less and for which at least one of the styles of that vehicle has a current average national trade‐in True Market Value® price (assuming clean vehicle condition and average mileage) of $4,500 or less. Accordingly, it is possible that some styles of a model may have a value higher than $4,500, and that the value of a particular vehicle may be higher because it is in exceptional condition or has very low mileage.
Please note that almost all vehicles that are model year 1989 or earlier have a trade in value of less than $4,500, and for that reason we have not included them on this list. Exceptions include vehicles that had limited production runs, such as the 1984‐86 Buick Regal T Type Turbo, the 1985‐89 BMW 6 Series 635CSi, and the 1987‐89 Porsche 911 Carrera – as well as most collector and exotic vehicles.
List of Vehicles Eligible for the Cash for Clunkers Rebate (Edmunds) (PDF)
According to Edmunds, owners of passenger cars or minivans that get 18 mpg or less could receive a $3,500 rebate for buying new cars or minivans with 22 mpg, and $4,500 for those with 28 mpg or higher. But owners of light-duty trucks would only have to purchase new trucks that get 20 mpg to receive the $3,500 voucher, and the threshold for large light-duty trucks is only 1 mpg over trade-ins that currently get 15 mpg.
Lawmakers hope CARS, which has passed in the Hoouse of Representatives and is currently being considered by the U.S. Senate, will prompt 500,000 to 1 million new auto sales. Edmunds experts, though, believe the plan will be lucky if it yields even half a million new sales. “A program intended to stimulate new car sales should target people in the market for a car, but the program does not,” says Edmunds.com CEO Jeremy Anwyl. “The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile.”
This following list is based on the requirements set forth in the most recent version of the “Cash for Clunkers” bill and was compiled on June 11, 2009.
We compiled this list by searching the Edmunds.com vehicle database for models that have an average fuel economy of 18 mpg or less and for which at least one of the styles of that vehicle has a current average national trade‐in True Market Value® price (assuming clean vehicle condition and average mileage) of $4,500 or less. Accordingly, it is possible that some styles of a model may have a value higher than $4,500, and that the value of a particular vehicle may be higher because it is in exceptional condition or has very low mileage.
Please note that almost all vehicles that are model year 1989 or earlier have a trade in value of less than $4,500, and for that reason we have not included them on this list. Exceptions include vehicles that had limited production runs, such as the 1984‐86 Buick Regal T Type Turbo, the 1985‐89 BMW 6 Series 635CSi, and the 1987‐89 Porsche 911 Carrera – as well as most collector and exotic vehicles.
List of Vehicles Eligible for the Cash for Clunkers Rebate (Edmunds) (PDF)
2010 Honda Insight Hybrid May Miss U.S. Sales Target
Honda Motor Co (7267.T) may fall short of its U.S. sales goal for the new Insight hybrid by a third in the model's first year due to the recession and relatively cheap gasoline, Bloomberg reported, citing a top local executive.
"Given some dramatic change in things, I don't think we'll get to 90,000. At 50,000 to 60,000, we will be just fine," Bloomberg cited American Honda Motor Executive Vice President John Mendel as saying.
Japan's No.2 automaker has forecast annual worldwide sales of 200,000 units for the Insight, which went on sale first in Japan in February and in late March in the United States. Honda expects to sell half of that in North America.
A spokesman in Tokyo said there had been no change in Honda's sales forecast.
But Honda Chief Executive Takeo Fukui told Reuters last month that while response to the Insight has been good in the United States, Honda was placing priority on meeting brisk demand in the Japanese market partly due to unfavorable exchange rates.
Shares in Honda were down 1.8 percent in mixed trade for Japanese auto stocks.
Gallery: 2010 Honda Insight Hybrid
"Given some dramatic change in things, I don't think we'll get to 90,000. At 50,000 to 60,000, we will be just fine," Bloomberg cited American Honda Motor Executive Vice President John Mendel as saying.
Japan's No.2 automaker has forecast annual worldwide sales of 200,000 units for the Insight, which went on sale first in Japan in February and in late March in the United States. Honda expects to sell half of that in North America.
A spokesman in Tokyo said there had been no change in Honda's sales forecast.
But Honda Chief Executive Takeo Fukui told Reuters last month that while response to the Insight has been good in the United States, Honda was placing priority on meeting brisk demand in the Japanese market partly due to unfavorable exchange rates.
Shares in Honda were down 1.8 percent in mixed trade for Japanese auto stocks.
Gallery: 2010 Honda Insight Hybrid
Wednesday, June 10, 2009
'Cash for Clunkers' Incentives Plan Approved by House
The U.S. House approved legislation that would give consumers as much as $4,500 to buy new, fuel- efficient vehicles under a “cash-for-clunkers” proposal aimed at boosting auto sales.
The program, passed 298-119, would replace 1 million older vehicles with newer cars and trucks to reduce gasoline use and air pollution, according to the measure’s sponsors. Car owners would get a $3,500 government voucher for the purchase of a new vehicle getting 4 more miles per gallon than their old car. They would get $4,500 if the new vehicle improved mileage by 10 miles per gallon.
“We can free ourselves from the false argument that either you are for the environment or you are for jobs,” said the measure’s chief sponsor, Ohio Democrat Betty Sutton, on the House floor today.
Ford Motor Co., the only major U.S. carmaker that hasn’t filed for bankruptcy protection, hailed the House’s action.
“This timely, targeted and temporary program will put money directly in the hands of consumers and work to reduce fuel consumption and greenhouse-gas emissions,” Pete Lawson, the Dearborn, Michigan-based company’s vice president for government affairs, said in a statement.
“Ford will continue our work with lawmakers to ensure this critical bill” is quickly cleared for President Barack Obama’s signature, Lawson said.
‘Hard-Earned Money’
Representative Tom Price of Georgia, chairman of the Republican Study Committee, criticized the plan in a statement that said, “Taxpayers should not see their hard-earned money used to buy their neighbor a new car.”
The measure requires Senate approval as well as an allocation of funds to cover the estimated $4 billion cost. Lawmakers are discussing whether to include money for the program in a spending measure designed to fund the Afghanistan and Iraq wars.
The program would provide funds for car owners whose vehicles get 18 or fewer miles per gallon. The new car would have to get at least 22 miles per gallon. Similar benefits would be available for truck owners who trade in their vehicles for ones getting at least 1 mile per gallon more. The money could be used to buy U.S. or foreign vehicles.
In May, U.S. car industry sales declined 34 percent from a year earlier, according to Autodata Corp. of Woodcliff Lake, New Jersey. Detroit-based General Motors Corp. and Auburn Hills, Michigan-based Chrysler LLC are in bankruptcy.
'Cash for Clunkers' Details:
HOUSE
The House was expected to vote on a bill Tuesday sponsored by Rep. Betty Sutton, D-Ohio. Its provisions:
_Passenger car owners could receive a voucher worth $3,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car getting at least 22 mpg.
_Sport utility vehicle, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $3,500 if their new SUV, truck or minivan is at least 2 mpg higher than their old vehicle.
_Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car that is 10 mpg higher than the old car.
_SUV, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.
_Consumers can receive vouchers for the purchase and leasing of new vehicles.
_Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured to the same owner for at least one year immediately prior to trade-in.
SENATE
A group of senators led by Sen. Dianne Feinstein, D-Calif., have proposed an alternative to the House version. Its provisions:
_The trade-in passenger car must get 17 mpg or less and the new passenger car must get at least 24 mpg to be eligible for vouchers.
_Passenger car owners could receive a voucher worth $2,500 if they traded in a passenger car getting at least 7 mpg more than the old car. The voucher would grow to $3,500 if they traded in a passenger car getting at least 10 mpg more than the old car. And it would grow to $4,500 if they traded in a passenger car getting at least 13 mpg more than the old car.
_The purchase of a used passenger car with a mileage of at least 24 mpg would qualify for a voucher of $1,000.
_The trade-in sport utility vehicle, pickup truck or minivan must get 17 mpg or less and the new vehicle must get at least 20 mpg to be eligible for a voucher.
_SUV, pickup truck or minivan owners could get a voucher for $2,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 3 mpg more than the old vehicle. The voucher would increase to $3,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 6 mpg more than the old vehicle.
_SUV, pickup truck or minivan owners could a voucher for $4,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 9 mpg more than their old vehicle.
_The purchase of a used SUV, pickup truck or minivan with a mileage of at least 20 mpg would qualify for a voucher of $1,000.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with a mileage of at least 17 mpg would be eligible for vouchers ranging from $2,500 to $4,500.
Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., have sponsored legislation in the Senate that has similar requirements as Sutton's bill in the House.
The program, passed 298-119, would replace 1 million older vehicles with newer cars and trucks to reduce gasoline use and air pollution, according to the measure’s sponsors. Car owners would get a $3,500 government voucher for the purchase of a new vehicle getting 4 more miles per gallon than their old car. They would get $4,500 if the new vehicle improved mileage by 10 miles per gallon.
“We can free ourselves from the false argument that either you are for the environment or you are for jobs,” said the measure’s chief sponsor, Ohio Democrat Betty Sutton, on the House floor today.
Ford Motor Co., the only major U.S. carmaker that hasn’t filed for bankruptcy protection, hailed the House’s action.
“This timely, targeted and temporary program will put money directly in the hands of consumers and work to reduce fuel consumption and greenhouse-gas emissions,” Pete Lawson, the Dearborn, Michigan-based company’s vice president for government affairs, said in a statement.
“Ford will continue our work with lawmakers to ensure this critical bill” is quickly cleared for President Barack Obama’s signature, Lawson said.
‘Hard-Earned Money’
Representative Tom Price of Georgia, chairman of the Republican Study Committee, criticized the plan in a statement that said, “Taxpayers should not see their hard-earned money used to buy their neighbor a new car.”
The measure requires Senate approval as well as an allocation of funds to cover the estimated $4 billion cost. Lawmakers are discussing whether to include money for the program in a spending measure designed to fund the Afghanistan and Iraq wars.
The program would provide funds for car owners whose vehicles get 18 or fewer miles per gallon. The new car would have to get at least 22 miles per gallon. Similar benefits would be available for truck owners who trade in their vehicles for ones getting at least 1 mile per gallon more. The money could be used to buy U.S. or foreign vehicles.
In May, U.S. car industry sales declined 34 percent from a year earlier, according to Autodata Corp. of Woodcliff Lake, New Jersey. Detroit-based General Motors Corp. and Auburn Hills, Michigan-based Chrysler LLC are in bankruptcy.
'Cash for Clunkers' Details:
HOUSE
The House was expected to vote on a bill Tuesday sponsored by Rep. Betty Sutton, D-Ohio. Its provisions:
_Passenger car owners could receive a voucher worth $3,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car getting at least 22 mpg.
_Sport utility vehicle, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $3,500 if their new SUV, truck or minivan is at least 2 mpg higher than their old vehicle.
_Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car that is 10 mpg higher than the old car.
_SUV, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.
_Consumers can receive vouchers for the purchase and leasing of new vehicles.
_Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured to the same owner for at least one year immediately prior to trade-in.
SENATE
A group of senators led by Sen. Dianne Feinstein, D-Calif., have proposed an alternative to the House version. Its provisions:
_The trade-in passenger car must get 17 mpg or less and the new passenger car must get at least 24 mpg to be eligible for vouchers.
_Passenger car owners could receive a voucher worth $2,500 if they traded in a passenger car getting at least 7 mpg more than the old car. The voucher would grow to $3,500 if they traded in a passenger car getting at least 10 mpg more than the old car. And it would grow to $4,500 if they traded in a passenger car getting at least 13 mpg more than the old car.
_The purchase of a used passenger car with a mileage of at least 24 mpg would qualify for a voucher of $1,000.
_The trade-in sport utility vehicle, pickup truck or minivan must get 17 mpg or less and the new vehicle must get at least 20 mpg to be eligible for a voucher.
_SUV, pickup truck or minivan owners could get a voucher for $2,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 3 mpg more than the old vehicle. The voucher would increase to $3,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 6 mpg more than the old vehicle.
_SUV, pickup truck or minivan owners could a voucher for $4,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 9 mpg more than their old vehicle.
_The purchase of a used SUV, pickup truck or minivan with a mileage of at least 20 mpg would qualify for a voucher of $1,000.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with a mileage of at least 17 mpg would be eligible for vouchers ranging from $2,500 to $4,500.
Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., have sponsored legislation in the Senate that has similar requirements as Sutton's bill in the House.
Monday, June 8, 2009
May 2009 BMW Group Global Sales Drop 18%
In market conditions that remain difficult, the BMW Group sold 109,042 BMW, MINI and Rolls-Royce brand automobiles worldwide in May, a decrease of 18.3%, the car maker said Monday.
This sales decrease was more moderate than in most of the previous months. A total of 487,906 (previous year: 618,734/-1.1%) vehicles were sold in the first five months of the year. Despite declining sales volumes, the BMW Group was able to gain market share against its competitors in the premium segment during this period.
Ian Robertson, Member of the Board of Management of BMW AG, responsible for Sales and Marketing: "Sales decreased much more slowly in May.than in recent months. Overall, I am cautiously optimistic that our global sales figures will continue to improve over the course of the year." Robertson continued: "We were able to increase our market share in the premium segment in major markets such as the U.S. and Japan over the previous month. That puts us right on track to maintain our position as the world's number one premium manufacturer in terms of sales volume in 2009."
In May, sales of the BMW brand were down 18.1% on the previous year (110,707) at 90,643 units. For the year to the end of May, deliveries to customers decreased 20.9% to 408,370 vehicles (prev.yr.: 515,989). The new BMW Z4 is off to an excellent start - it has already been delivered to 2,365 customers since its launch on May 9. The BMW 7 Series also remained on its growth track: 3,370 (prev.yr.: 3,321/+1.5%) vehicles were sold worldwide in May. In its important domestic market, Germany, the brand's flagship was the clear market leader in the luxury sedan segment with 801 new registrations in May. The BMW X6 also made further gains in the month under review, with 3,625 units (prev.yr.: 1,734/+109.1%) delivered.
Sales of the MINI brand were 19.1% lower in May than the same month last year (22,685) at 18,348 units; for the year to the end of May, 79,260 MINI (prev.yr.: 102,364/ -22.6%) vehicles were delivered to customers. In Germany, MINI increased sales volume by 11.8% (3,569/prev.yr.: 3,193) in the month under review. The brand made gains in countries such as China (350/ +48.9%), New Zealand (26/+30,9%), Malaysia (20/+33.3%) and Switzerland (447/+0.2%).
The Rolls-Royce brand reported a decline in sales of 53.6% (51 units / prev.yr.: 110) in May. For the year to the end of May, 276 vehicles were delivered to customers around the world (prev.yr.: 381/-27.6%). At the manufacturing facility in Goodwood in the U.K., preparations are currently underway for the production of the new, smaller Rolls-Royce model series which will be brought onto the market in 2010 under the name of "Ghost." Ian Robertson: "The response to the new model has been extremely positive. Over the medium term, we aim to use this model series to double our overall Rolls-Royce sales volume to more than 2,000 units per year." More than 150 new jobs have already been created at Goodwood in connection with the production of the new Rolls-Royce Ghost. By the end of the year, almost 400 new jobs will have been created within less than two years. This will increase the total workforce at the Goodwood site to 900.
BMW Motorrad reported sales of 10,172 units (prev.yr.: 11,580) in May, down 12.2% compared to the previous year. For the year to the end of May 2009, 37,572 motorcycles were delivered to customers worldwide (prev.yr.: 45,032/-16.6%).
This sales decrease was more moderate than in most of the previous months. A total of 487,906 (previous year: 618,734/-1.1%) vehicles were sold in the first five months of the year. Despite declining sales volumes, the BMW Group was able to gain market share against its competitors in the premium segment during this period.
Ian Robertson, Member of the Board of Management of BMW AG, responsible for Sales and Marketing: "Sales decreased much more slowly in May.than in recent months. Overall, I am cautiously optimistic that our global sales figures will continue to improve over the course of the year." Robertson continued: "We were able to increase our market share in the premium segment in major markets such as the U.S. and Japan over the previous month. That puts us right on track to maintain our position as the world's number one premium manufacturer in terms of sales volume in 2009."
In May, sales of the BMW brand were down 18.1% on the previous year (110,707) at 90,643 units. For the year to the end of May, deliveries to customers decreased 20.9% to 408,370 vehicles (prev.yr.: 515,989). The new BMW Z4 is off to an excellent start - it has already been delivered to 2,365 customers since its launch on May 9. The BMW 7 Series also remained on its growth track: 3,370 (prev.yr.: 3,321/+1.5%) vehicles were sold worldwide in May. In its important domestic market, Germany, the brand's flagship was the clear market leader in the luxury sedan segment with 801 new registrations in May. The BMW X6 also made further gains in the month under review, with 3,625 units (prev.yr.: 1,734/+109.1%) delivered.
Sales of the MINI brand were 19.1% lower in May than the same month last year (22,685) at 18,348 units; for the year to the end of May, 79,260 MINI (prev.yr.: 102,364/ -22.6%) vehicles were delivered to customers. In Germany, MINI increased sales volume by 11.8% (3,569/prev.yr.: 3,193) in the month under review. The brand made gains in countries such as China (350/ +48.9%), New Zealand (26/+30,9%), Malaysia (20/+33.3%) and Switzerland (447/+0.2%).
The Rolls-Royce brand reported a decline in sales of 53.6% (51 units / prev.yr.: 110) in May. For the year to the end of May, 276 vehicles were delivered to customers around the world (prev.yr.: 381/-27.6%). At the manufacturing facility in Goodwood in the U.K., preparations are currently underway for the production of the new, smaller Rolls-Royce model series which will be brought onto the market in 2010 under the name of "Ghost." Ian Robertson: "The response to the new model has been extremely positive. Over the medium term, we aim to use this model series to double our overall Rolls-Royce sales volume to more than 2,000 units per year." More than 150 new jobs have already been created at Goodwood in connection with the production of the new Rolls-Royce Ghost. By the end of the year, almost 400 new jobs will have been created within less than two years. This will increase the total workforce at the Goodwood site to 900.
BMW Motorrad reported sales of 10,172 units (prev.yr.: 11,580) in May, down 12.2% compared to the previous year. For the year to the end of May 2009, 37,572 motorcycles were delivered to customers worldwide (prev.yr.: 45,032/-16.6%).
Thursday, June 4, 2009
'Cash for Clunkers' Incentives to Revive US Auto Sales
Auto Dealers Believe the 'Cash for Clunkers' Bill Will Help Revive U.S. Auto Sales. The nation's auto dealers, pummeled by auto sales that are the lowest in 17 years, are optimistic that the "Cash for Clunkers" bill now moving through Congress will positively impact U.S. auto sales.
However, dealers are also concerned that sales are being frozen while the bill is being debated because consumers are waiting for vouchers to become available for trade-ins before purchasing a new car.
These are the results of a national survey of U.S. auto dealers conducted this week by Dealix, a division of Cobalt, and the leading provider of new car and used car automotive sales leads for dealers and OEMs. The Senate is poised to consider a version of the bill, which will provide consumers credits of up to $4,500 if they trade in cars with low mileage per gallon for more fuel efficient vehicles.
Dealix, which counts most of the nation's auto dealers as customers, sent the survey to general managers, dealer principals, Internet managers, and other sales professionals at the majority of the nation's roughly 20,000 franchised dealerships. In their responses to the survey, dealers expressed strong hopes for the legislation:
* Over 85% said the legislation would stimulate car purchases to some degree, with over 26% of that group saying it would increase purchases "a lot."
* And, almost 60% believe the program will help the environment.
While optimistic about the impact, dealers are also concerned that, in the short-term, anticipation of the bill is decreasing sales. Nearly 60% of dealers responding indicated that some or a lot of consumers are delaying their purchases until the bill is passed.
Dealers are watching the legislative process closely, with 84% of respondents reporting a familiarity with the proposal. These dealers also had strong opinions about some of the most hotly contested elements of the competing Senate and House bills:
* More than 6 out of 10 responding dealers believe the program should apply to the purchase of a used car; not solely to new car purchases.
* The majority - over 70% - do not believe vouchers should be applied retroactively to purchases made before the bill is passed.
Dealers are anticipating that they will play a role in educating customers about the specifics of the bill. Nearly 70% are planning marketing campaigns to explain that vouchers are available and how they will be used.
"Consumers will need help from dealers to understand how to use the Cash for Clunkers program, and they'll also turn to independent sources to research their car choices," said Anna Zornosa, general manager of Dealix. "During 2008, as consumers responded to increases in gas prices by considering new fuel efficient vehicles, they turned to the Internet for help in significant numbers. We expect independent Internet research sites to play this same vital role as consumers take advantage of the vouchers."
Dealix is focused on providing dealers with the tools needed to get the most from the new program. The company has created a blog, CashforClunkers.org, which has chronicled events in the life of the legislation since early this year. Dealix will also distribute summaries of the bill and produce seminars for dealers on the details of the legislation. Dealers who want more information on the survey or the bill itself or who want to register for an upcoming webinar on the topic are encouraged to send an email with their contact information to webinars@dealix.com.
+ Cash For Clunker Incentives Plan to Vote Today by Senate
+ "Cash for Clunkers' Incentives Program to Buy New Car
+ Cash-For-Clunkers: Pickup Trucks Buyer to Be Winners
About Dealix
Dealix, a division of Cobalt, is the world's leading provider of quality leads for new and used cars for dealerships, dealer groups, and automotive manufacturers. Dealix has the broadest reach and the highest quality lead supply network in the industry, including Kelley Blue Book, Edmunds.com, Yahoo! Autos, AOL Autos, MSN Autos, and others. Dealix also represents Edmunds' Premier Dealer Program and powers AOL Autos' and MSN Autos' price quote platforms. Dealix connects dealers with the millions of car shoppers who prefer independent Internet sites when shopping for new cars and used cars online. Dealix's all new Lead Platform quickly matches thousands of serious new and used vehicle buyers to the most appropriate dealers daily, delivering a quality car buying experience for consumers and providing dealers with one of the most efficient methods available today for marketing and selling cars.
About Cobalt
Cobalt is North America's leading provider of digital marketing services for the automotive industry. For over fourteen years, Cobalt's mission has been to help automobile dealers and manufacturers increase their retailing effectiveness and profitability. Cobalt provides marketing services to half of the automotive dealerships in the United States, as well as automotive dealers in Canada and Mexico. Cobalt's marketing services are endorsed by approximately two-thirds of the world's major automotive manufacturers.
However, dealers are also concerned that sales are being frozen while the bill is being debated because consumers are waiting for vouchers to become available for trade-ins before purchasing a new car.
These are the results of a national survey of U.S. auto dealers conducted this week by Dealix, a division of Cobalt, and the leading provider of new car and used car automotive sales leads for dealers and OEMs. The Senate is poised to consider a version of the bill, which will provide consumers credits of up to $4,500 if they trade in cars with low mileage per gallon for more fuel efficient vehicles.
Dealix, which counts most of the nation's auto dealers as customers, sent the survey to general managers, dealer principals, Internet managers, and other sales professionals at the majority of the nation's roughly 20,000 franchised dealerships. In their responses to the survey, dealers expressed strong hopes for the legislation:
* Over 85% said the legislation would stimulate car purchases to some degree, with over 26% of that group saying it would increase purchases "a lot."
* And, almost 60% believe the program will help the environment.
While optimistic about the impact, dealers are also concerned that, in the short-term, anticipation of the bill is decreasing sales. Nearly 60% of dealers responding indicated that some or a lot of consumers are delaying their purchases until the bill is passed.
Dealers are watching the legislative process closely, with 84% of respondents reporting a familiarity with the proposal. These dealers also had strong opinions about some of the most hotly contested elements of the competing Senate and House bills:
* More than 6 out of 10 responding dealers believe the program should apply to the purchase of a used car; not solely to new car purchases.
* The majority - over 70% - do not believe vouchers should be applied retroactively to purchases made before the bill is passed.
Dealers are anticipating that they will play a role in educating customers about the specifics of the bill. Nearly 70% are planning marketing campaigns to explain that vouchers are available and how they will be used.
"Consumers will need help from dealers to understand how to use the Cash for Clunkers program, and they'll also turn to independent sources to research their car choices," said Anna Zornosa, general manager of Dealix. "During 2008, as consumers responded to increases in gas prices by considering new fuel efficient vehicles, they turned to the Internet for help in significant numbers. We expect independent Internet research sites to play this same vital role as consumers take advantage of the vouchers."
Dealix is focused on providing dealers with the tools needed to get the most from the new program. The company has created a blog, CashforClunkers.org, which has chronicled events in the life of the legislation since early this year. Dealix will also distribute summaries of the bill and produce seminars for dealers on the details of the legislation. Dealers who want more information on the survey or the bill itself or who want to register for an upcoming webinar on the topic are encouraged to send an email with their contact information to webinars@dealix.com.
+ Cash For Clunker Incentives Plan to Vote Today by Senate
+ "Cash for Clunkers' Incentives Program to Buy New Car
+ Cash-For-Clunkers: Pickup Trucks Buyer to Be Winners
About Dealix
Dealix, a division of Cobalt, is the world's leading provider of quality leads for new and used cars for dealerships, dealer groups, and automotive manufacturers. Dealix has the broadest reach and the highest quality lead supply network in the industry, including Kelley Blue Book, Edmunds.com, Yahoo! Autos, AOL Autos, MSN Autos, and others. Dealix also represents Edmunds' Premier Dealer Program and powers AOL Autos' and MSN Autos' price quote platforms. Dealix connects dealers with the millions of car shoppers who prefer independent Internet sites when shopping for new cars and used cars online. Dealix's all new Lead Platform quickly matches thousands of serious new and used vehicle buyers to the most appropriate dealers daily, delivering a quality car buying experience for consumers and providing dealers with one of the most efficient methods available today for marketing and selling cars.
About Cobalt
Cobalt is North America's leading provider of digital marketing services for the automotive industry. For over fourteen years, Cobalt's mission has been to help automobile dealers and manufacturers increase their retailing effectiveness and profitability. Cobalt provides marketing services to half of the automotive dealerships in the United States, as well as automotive dealers in Canada and Mexico. Cobalt's marketing services are endorsed by approximately two-thirds of the world's major automotive manufacturers.
US Top 10 Best-Selling Vehicles May 2009
It seems that low gas prices are fueling truck sales, as the two best-selling vehicles are once again full-size pickups. However, the Dodge Ram, usually a staple of this top 10 list, has fallen off, just barely beaten out by the Ford Escape. Ford had three of the top 10 best-sellers, including a sales record for the Fusion; the redesigned sedan seems to be attracting shoppers.
While sales for nearly every brand were down, GM, Ford and Hyundai stayed competitive, seeing sales losses of 29%, 25.5% and 20% from last May, respectively.
That’s competitive when you compare them to Chrysler, Toyota and Honda, which saw mind-boggling falls of 47%, 39.7% and 38%.
Of course, Honda and Toyota were setting sales records at this time last year, so their negatives are a bit higher than you'd expect.
Check out the full top 10 below:
#1 Ford F-Series: 33,381
#2 Chevy Silverado: 31,463
#3 Toyota Camry: 31,325
#4 Toyota Corolla: 23,576
#5 Honda Accord: 22,597
#6 Honda Civic: 20,723
#7 Ford Fusion: 19,786
#8 Chevy Impala: 18,709
#9 Nissan Altima: 18,408
#10 Ford Escape: 16,391
While sales for nearly every brand were down, GM, Ford and Hyundai stayed competitive, seeing sales losses of 29%, 25.5% and 20% from last May, respectively.
That’s competitive when you compare them to Chrysler, Toyota and Honda, which saw mind-boggling falls of 47%, 39.7% and 38%.
Of course, Honda and Toyota were setting sales records at this time last year, so their negatives are a bit higher than you'd expect.
Check out the full top 10 below:
#1 Ford F-Series: 33,381
#2 Chevy Silverado: 31,463
#3 Toyota Camry: 31,325
#4 Toyota Corolla: 23,576
#5 Honda Accord: 22,597
#6 Honda Civic: 20,723
#7 Ford Fusion: 19,786
#8 Chevy Impala: 18,709
#9 Nissan Altima: 18,408
#10 Ford Escape: 16,391
Stimulus Incentives Boosts Cathedral City Dealerships' Sales in May
Cathedral City auto dealers are seeing the early benefits of the city's economic stimulus plan.
“We've been able to bring ourselves closer to stability,” said Andy Jessup Jr., president of the New Car Dealers of Cathedral City.
Jessup participated in a panel discussion Wednesday during the Cathedral City Chamber of Commerce Power Breakfast, with City Redevelopment Agency Director Jan Davison, chamber Chief Executive Officer Steven C. Morris and Arrowhead Advertising managing partner Jim Zabel.
The city's auto dealerships have seen sales plummet during the economic downturn, like many dealerships across the country.
Sales were down by as much as 49 percent in March, said Jessup, who is general manager at Jessup Auto Plaza. But by May, sales were down 33 percent, he said.
That's slightly better news for the city, which relies on the auto industry for its sales taxes.
Auto dealers generated more than $50 million in sales tax and vehicle license fees to the city's general fund during the past 10 years, Davison said.
The dealerships and city staff developed an economic development plan as a way to help sustain that tax base and stimulate the economy.
The city redevelopment agency allocated $700,000 to the dealerships to help with their advertising and marketing.
The agency also set aside $50,000 for its Cathedral City “bucks” program.
Anyone who buys a car from a participating dealership receives $100 in Cathedral City bucks. The new car owner can use the money to buy items at other businesses in the program.
Those businesses redeem their customers' bucks for cash from the redevelopment agency. The bucks can be redeemed through Sept. 30, Morris said.
About 30 businesses participate in the program, he said. A list of the participants will be on the chamber's Web site, www.cathedralcitycc.com, later this week.
In addition to those efforts, auto dealers are using their money in bimonthly $5,000 drawings to boost sales, Davison said. Anyone who test drives a car at a dealership in the association is automatically entered in a drawing.
“We've been able to bring ourselves closer to stability,” said Andy Jessup Jr., president of the New Car Dealers of Cathedral City.
Jessup participated in a panel discussion Wednesday during the Cathedral City Chamber of Commerce Power Breakfast, with City Redevelopment Agency Director Jan Davison, chamber Chief Executive Officer Steven C. Morris and Arrowhead Advertising managing partner Jim Zabel.
The city's auto dealerships have seen sales plummet during the economic downturn, like many dealerships across the country.
Sales were down by as much as 49 percent in March, said Jessup, who is general manager at Jessup Auto Plaza. But by May, sales were down 33 percent, he said.
That's slightly better news for the city, which relies on the auto industry for its sales taxes.
Auto dealers generated more than $50 million in sales tax and vehicle license fees to the city's general fund during the past 10 years, Davison said.
The dealerships and city staff developed an economic development plan as a way to help sustain that tax base and stimulate the economy.
The city redevelopment agency allocated $700,000 to the dealerships to help with their advertising and marketing.
The agency also set aside $50,000 for its Cathedral City “bucks” program.
Anyone who buys a car from a participating dealership receives $100 in Cathedral City bucks. The new car owner can use the money to buy items at other businesses in the program.
Those businesses redeem their customers' bucks for cash from the redevelopment agency. The bucks can be redeemed through Sept. 30, Morris said.
About 30 businesses participate in the program, he said. A list of the participants will be on the chamber's Web site, www.cathedralcitycc.com, later this week.
In addition to those efforts, auto dealers are using their money in bimonthly $5,000 drawings to boost sales, Davison said. Anyone who test drives a car at a dealership in the association is automatically entered in a drawing.
Wednesday, June 3, 2009
June 2009 Automaker Car Deals (GM,Chrysler,Ford,Toyota,Benz,Audi,BMW,Mazda,VW)
Audi:
---- 2.9% APR Financing (36 months) on many vehicles
BMW:
--- APR financing rates from 0.9 % to 2.9% (up to 60 months), plus no payments for 60 days on some 2009 models
Buick, GMC,Cadillac,Chevrolet,HUMMER, Pontiac,Saturn, Saab:
--- 0% APR financing for up to 60 months on many models. Cash back rebates also available on some models. New GM Total Confidence Plan includes payment protection, some protection against negative equity.
Chrysler, Dodge, Jeep:
--- Cash back offers up to $6,000 on some models, varying by region
Ford, Lincoln, Mercury:
--- 0 % APR financing for up to 60 months, rebates as high as $5,000 on many 2009s, plus payment protection under new Ford Advantage Plan
Mercedes-Benz:
--- 1.9% APR financing for 36 months on most models
Toyota:
--- Toyota deals vary regionally, but many models are available now with 0% financing or cash-back rebates as high as $4,000
Mazda:
--- 0 - 0.9% APR financing for 36 months, which can be combined with cash back offers on most models
Volkswagen :
--- 0% APR financing (60 months) on most models
---- 2.9% APR Financing (36 months) on many vehicles
BMW:
--- APR financing rates from 0.9 % to 2.9% (up to 60 months), plus no payments for 60 days on some 2009 models
Buick, GMC,Cadillac,Chevrolet,HUMMER, Pontiac,Saturn, Saab:
--- 0% APR financing for up to 60 months on many models. Cash back rebates also available on some models. New GM Total Confidence Plan includes payment protection, some protection against negative equity.
Chrysler, Dodge, Jeep:
--- Cash back offers up to $6,000 on some models, varying by region
Ford, Lincoln, Mercury:
--- 0 % APR financing for up to 60 months, rebates as high as $5,000 on many 2009s, plus payment protection under new Ford Advantage Plan
Mercedes-Benz:
--- 1.9% APR financing for 36 months on most models
Toyota:
--- Toyota deals vary regionally, but many models are available now with 0% financing or cash-back rebates as high as $4,000
Mazda:
--- 0 - 0.9% APR financing for 36 months, which can be combined with cash back offers on most models
Volkswagen :
--- 0% APR financing (60 months) on most models
Volvo Safe + Sound Coverage Incentives Announced in June.2
Volvo Cars of North America, LLC (VCNA) today announced it will offer a unique Safe + Sound Coverage Plan on all 2009 models. This complimentary coverage program offers tremendous value to buyers by wrapping a comprehensive list of benefits into one package. Volvo has combined additional time and mileage limits on: Warranty repairs and roadside assistance coverage along with enhancing wear item coverage and extending factory scheduled maintenance coverage.
"This is best-in-class coverage," said Tassos Panas, Executive Vice President, Sales Operations. "Today, consumers are looking for value, and Volvo has built an overall coverage program that adds value and peace of mind to their ownership experience."
The Volvo Safe + Sound Coverage Plan gives owners peace of mind for five years or 60,000 miles, which ever comes first, and is transferable to the next owner. It includes:
* 5 years/60,000 miles of New Car Warranty
* 5 years/60,000 miles of Complimentary Factory Scheduled Maintenance
* 5 years/60,000 miles of Wear and Tear Coverage
* 5 years/Unlimited miles of Volvo On Call Roadside Assistance.
This complimentary program is designed to offer a premium ownership experience by expanding and enhancing services to Volvo owners. Volvo's Safe + Sound Coverage Plan is for all 2009 cars sold by VCNA retailers from June 2 through June 30, 2009.
Late last year, VCNA surveyed luxury buyers to ascertain how the economy was impacting their lives. It is not surprising that 53 percent were concerned about how the declining economy was going to affect them. VCNA found that two major points were likely to influence future purchase decisions: The need for durable, high quality products and concern about maintenance expenditures. This study also drew out their concern for strong warranty support and their belief that scheduled maintenance coverage would be an important part of their decision criteria.
"Buyers are looking for security - peace of mind, stability, honesty and straight talk about how a purchase would affect their financial environment," Panas said. "They are looking for practical solutions that give them better value for the money they are spending."
Volvo retailers were part of this development process. They are confident that the Safe + Sound Coverage Plan will bring new customers to their retail facilities as well as exceed the needs of repeat Volvo buyers during this difficult economic time. "Combining Volvo quality and reliability with real customer economic needs, we have a program that no other luxury manufacturer is offering," Panas added.
"Volvo has always been about personal safety and security. Our Safe + Sound Coverage Plan offers exceptional value and financial security that goes beyond crumple zones and airbags," Panas said. "This is a security of ownership program that is very Volvo."
Highlights:
The Safe + Sound Coverage Program includes:
* 5 years/60,000 miles Scheduled Maintenance
* 5 years/60,000 Coverage on Wear Items
* 5 years/60,000 Manufacturers Warranty
* 5 years/Unlimited Roadside Assistance (On Call program)
Safe + Sound Elements:
5 Years of Warranty Coverage/60,000 Miles under the Volvo Safe + Sound Coverage Plan
The Volvo Safe + Sound Coverage Plan provides an additional year and 10,000 miles of Volvo New Car Limited Warranty coverage for a total of five years or 60,000 miles, whichever occurs first. Additional warranties cover corrosion, seat belts, the supplemental restraint system, emission systems, genuine Volvo replacement parts and genuine Volvo accessories.
5 Years/60,000 Miles of Maintenance Coverage under the Volvo Safe + Sound Coverage Plan
The Maintenance program covers the first eight scheduled services at no charge. This includes: oil and filter changes, cabin filter replacement, complete fluid level top-offs, and a check of the vehicle's on-board diagnostic system. Volvo service technicians will cover all items outlined in the Volvo maintenance schedule, including inspection of the tires, brakes, coolant and battery.
5 Years/60,000 Miles of Wear & Tear Item Coverage under the Volvo Safe + Sound Coverage Plan
Wear items include:
Brake pads (front/rear)
Brake rotors (front/rear - only in conjunction with a covered brake pad replacement)
Windshield wiper inserts
5 Years of Roadside Assistance under the Volvo Safe + Sound Coverage Plan
Among the many useful standard features that come with your Volvo, the handiest may be Volvo On Call. Volvo developed the industry first coast to coast 24/7 roadside assistance program in 1985. As was then the goal, On Call was developed because Volvo cares and believes Volvo owners deserve the highest form of motoring protection available today.
Key Features
Volvo On Call includes such services as:
24/7 roadside assistance
Towing to your nearest Volvo retailer
Computerized trip routing/map service
Lockout assistance
Trip interruption expense benefits
Car rental discounts
Jump-starting, winching, battery failure, changing a flat or emergency gasoline delivery
Volvo retailer locator
VCNA is part of Volvo Car Corporation of Gothenburg, Sweden, provides marketing, sales, parts, service, technology and training support to Volvo automobile retailers in the United States, and oversees Volvo operations in Canada. Volvo has been building cars with safety in mind for more than 80 years.
The 2009 Volvo Cars model lineup includes the award-winning S40 and its wagon counterpart the V50; the award-winning XC90; the sporty S60 sedan; the flagship S80 luxury sedan; versatile V70 wagon and rugged XC70 (Cross Country); the stunning C70 retractable hardtop convertible and the dynamic C30.
VCNA reserves the right to make changes to Safe + Sound coverage plan at any time, without notice.
"This is best-in-class coverage," said Tassos Panas, Executive Vice President, Sales Operations. "Today, consumers are looking for value, and Volvo has built an overall coverage program that adds value and peace of mind to their ownership experience."
The Volvo Safe + Sound Coverage Plan gives owners peace of mind for five years or 60,000 miles, which ever comes first, and is transferable to the next owner. It includes:
* 5 years/60,000 miles of New Car Warranty
* 5 years/60,000 miles of Complimentary Factory Scheduled Maintenance
* 5 years/60,000 miles of Wear and Tear Coverage
* 5 years/Unlimited miles of Volvo On Call Roadside Assistance.
This complimentary program is designed to offer a premium ownership experience by expanding and enhancing services to Volvo owners. Volvo's Safe + Sound Coverage Plan is for all 2009 cars sold by VCNA retailers from June 2 through June 30, 2009.
Late last year, VCNA surveyed luxury buyers to ascertain how the economy was impacting their lives. It is not surprising that 53 percent were concerned about how the declining economy was going to affect them. VCNA found that two major points were likely to influence future purchase decisions: The need for durable, high quality products and concern about maintenance expenditures. This study also drew out their concern for strong warranty support and their belief that scheduled maintenance coverage would be an important part of their decision criteria.
"Buyers are looking for security - peace of mind, stability, honesty and straight talk about how a purchase would affect their financial environment," Panas said. "They are looking for practical solutions that give them better value for the money they are spending."
Volvo retailers were part of this development process. They are confident that the Safe + Sound Coverage Plan will bring new customers to their retail facilities as well as exceed the needs of repeat Volvo buyers during this difficult economic time. "Combining Volvo quality and reliability with real customer economic needs, we have a program that no other luxury manufacturer is offering," Panas added.
"Volvo has always been about personal safety and security. Our Safe + Sound Coverage Plan offers exceptional value and financial security that goes beyond crumple zones and airbags," Panas said. "This is a security of ownership program that is very Volvo."
Highlights:
The Safe + Sound Coverage Program includes:
* 5 years/60,000 miles Scheduled Maintenance
* 5 years/60,000 Coverage on Wear Items
* 5 years/60,000 Manufacturers Warranty
* 5 years/Unlimited Roadside Assistance (On Call program)
Safe + Sound Elements:
5 Years of Warranty Coverage/60,000 Miles under the Volvo Safe + Sound Coverage Plan
The Volvo Safe + Sound Coverage Plan provides an additional year and 10,000 miles of Volvo New Car Limited Warranty coverage for a total of five years or 60,000 miles, whichever occurs first. Additional warranties cover corrosion, seat belts, the supplemental restraint system, emission systems, genuine Volvo replacement parts and genuine Volvo accessories.
5 Years/60,000 Miles of Maintenance Coverage under the Volvo Safe + Sound Coverage Plan
The Maintenance program covers the first eight scheduled services at no charge. This includes: oil and filter changes, cabin filter replacement, complete fluid level top-offs, and a check of the vehicle's on-board diagnostic system. Volvo service technicians will cover all items outlined in the Volvo maintenance schedule, including inspection of the tires, brakes, coolant and battery.
5 Years/60,000 Miles of Wear & Tear Item Coverage under the Volvo Safe + Sound Coverage Plan
Wear items include:
Brake pads (front/rear)
Brake rotors (front/rear - only in conjunction with a covered brake pad replacement)
Windshield wiper inserts
5 Years of Roadside Assistance under the Volvo Safe + Sound Coverage Plan
Among the many useful standard features that come with your Volvo, the handiest may be Volvo On Call. Volvo developed the industry first coast to coast 24/7 roadside assistance program in 1985. As was then the goal, On Call was developed because Volvo cares and believes Volvo owners deserve the highest form of motoring protection available today.
Key Features
Volvo On Call includes such services as:
24/7 roadside assistance
Towing to your nearest Volvo retailer
Computerized trip routing/map service
Lockout assistance
Trip interruption expense benefits
Car rental discounts
Jump-starting, winching, battery failure, changing a flat or emergency gasoline delivery
Volvo retailer locator
VCNA is part of Volvo Car Corporation of Gothenburg, Sweden, provides marketing, sales, parts, service, technology and training support to Volvo automobile retailers in the United States, and oversees Volvo operations in Canada. Volvo has been building cars with safety in mind for more than 80 years.
The 2009 Volvo Cars model lineup includes the award-winning S40 and its wagon counterpart the V50; the award-winning XC90; the sporty S60 sedan; the flagship S80 luxury sedan; versatile V70 wagon and rugged XC70 (Cross Country); the stunning C70 retractable hardtop convertible and the dynamic C30.
VCNA reserves the right to make changes to Safe + Sound coverage plan at any time, without notice.
US Auto Incentives May.2009: Japanese Automaker (Honda,Nissan,Toyota) Hit New Record
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.
Combined incentives spending for domestic manufacturers averaged $3,766 per vehicle sold in May, down from $3,990 in April.
From April to May, Japanese automakers increased incentives spending by $171 to $1,907 per vehicle sold, setting a new record as a group. Individually, Honda and Nissan set new records for incentive spending.
Also from April to May, European automakers increased incentives spending by $214 to $3,823 per vehicle sold; ; and Korean automakers decreased incentives spending by $533 to $2,894 per vehicle sold.
Among vehicle segments, premium sport cars had the highest average incentives, $6,865 per vehicle sold, followed by large SUVs at $4,267. Subcompact cars had the lowest average incentives per vehicle sold, $1,096, followed by compact cars at $2,117.
Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large cars averaged the highest, 13 percent, followed by large trucks at 12.4 percent of sticker price. Premium luxury cars averaged the lowest at 4.6 percent and subcompact cars followed at 6.9 percent of sticker price.
The large truck segment is a particularly interesting case. In a story entitled "Take My Pick-Up -- Please," Edmunds' AutoObserver.com Editor Bill Visnic recently reported, "The economic meltdown and $4 gasoline conspired to make 2008 a lousy year for large pickups, but the shriveled numbers for 2009 are making last year's sales look like a comparative bonanza."
Comparing all brands, in May Scion spent $225 followed by Mini at $582 per vehicle sold. At the other end of the spectrum, Mercedes-Benz spent the most, $6,069, followed by Hummer at $5,902 per vehicle sold.
Relative to their vehicle prices, Pontiac and Saturn spent the most, 16.7 percent and 15.5 percent of sticker price, respectively. General Motors is winding down the Pontiac brand by year-end. The future of Saturn remains unknown as GM negotiates with potential buyers about the brand.
In contrast and as has been typical, Toyota's Scion spent 1.3 and BMW's Mini spent 2.7 percent.
Edmunds.com's monthly True Cost of Incentives report takes into account all automakers' various U.S. incentives programs, including subvented interest rates and lease programs, as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used.
* Denotes a record
"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.
Combined incentives spending for domestic manufacturers averaged $3,766 per vehicle sold in May, down from $3,990 in April.
From April to May, Japanese automakers increased incentives spending by $171 to $1,907 per vehicle sold, setting a new record as a group. Individually, Honda and Nissan set new records for incentive spending.
Also from April to May, European automakers increased incentives spending by $214 to $3,823 per vehicle sold; ; and Korean automakers decreased incentives spending by $533 to $2,894 per vehicle sold.
Among vehicle segments, premium sport cars had the highest average incentives, $6,865 per vehicle sold, followed by large SUVs at $4,267. Subcompact cars had the lowest average incentives per vehicle sold, $1,096, followed by compact cars at $2,117.
Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large cars averaged the highest, 13 percent, followed by large trucks at 12.4 percent of sticker price. Premium luxury cars averaged the lowest at 4.6 percent and subcompact cars followed at 6.9 percent of sticker price.
The large truck segment is a particularly interesting case. In a story entitled "Take My Pick-Up -- Please," Edmunds' AutoObserver.com Editor Bill Visnic recently reported, "The economic meltdown and $4 gasoline conspired to make 2008 a lousy year for large pickups, but the shriveled numbers for 2009 are making last year's sales look like a comparative bonanza."
Comparing all brands, in May Scion spent $225 followed by Mini at $582 per vehicle sold. At the other end of the spectrum, Mercedes-Benz spent the most, $6,069, followed by Hummer at $5,902 per vehicle sold.
Relative to their vehicle prices, Pontiac and Saturn spent the most, 16.7 percent and 15.5 percent of sticker price, respectively. General Motors is winding down the Pontiac brand by year-end. The future of Saturn remains unknown as GM negotiates with potential buyers about the brand.
In contrast and as has been typical, Toyota's Scion spent 1.3 and BMW's Mini spent 2.7 percent.
Edmunds.com's monthly True Cost of Incentives report takes into account all automakers' various U.S. incentives programs, including subvented interest rates and lease programs, as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used.
|
| |||
| Automaker | May 2009 | April 2009 | May 2008 |
| Chrysler Group (Chrysler, Dodge, Jeep) | $4,159 | $4,383 | $3,630 |
| Ford (Ford, Lincoln, Mercury, Volvo) | $3,570 | $3,618 | $3,190 |
| General Motors (Buick, Cadillac, Chevrolet, | $3,783 | $4,107 | $3,309 |
| Honda (Acura, Honda) | $1,626* | $1,480 | $1,145 |
| Hyundai (Hyundai, Kia) | $2,894 | $3,427 | $1,973 |
| Nissan (Infiniti, Nissan) | $2,790* | $2,767 | $1,989 |
| Toyota (Lexus, Scion, Toyota) | $1,755 | $1,634 | $1,034 |
| Industry Average | $2,946 | $3,057 | $2,324 |
Tuesday, June 2, 2009
May 2009 Auto Sales: U.S. Falls 33.7% (All Automakers Figures)
Ford Motor Co. and General Motors in May posted their smallest monthly sales declines since last summer, helping the overall U.S. industry improve again while Honda and Toyota dropped more than 40 percent.
Overall sales fell 33.7 percent, the smallest decrease since October's 31.9 percent. The seasonally adjusted annual rate was 9.9 million, the highest of 2009. May's industrywide sales of 926,130 marked the first monthly total this year above 900,000.
"If you're rooting for the Americans, that's what passes as bright news: that they were down less than their competitors," said Efraim Levy, an equity analyst with Standard & Poor's.
Ford Motor's 25.8 percent light-vehicle sales decline was its lowest since July 2008, and GM's 29.0 percent skid reflected its smallest decrease since September. American Honda said its sales plummeted 41.5 percent from May 2008, when the company set a monthly sales record. Toyota Motor Sales fell 40.7 percent, and Nissan North America slid 33.1 percent.
Chrysler LLC's sales tumbled 46.9 percent in May, dragged down by a decline of more than 90 percent in fleet volume stemming from its factory shutdown during bankruptcy. Retail sales fell 30 percent, the automaker said.
Last year's turmoil
The smaller declines at Ford and GM, which filed for Chapter 11 reorganization yesterday, stem in part from comparisons to last year, said Jeff Schuster, executive director of forecasting at the market research firm J.D. Power and Associates.
Average U.S. fuel prices in May 2008 hit $3.97 for a gallon of regular unleaded, according to AAA. The rising prices attracted consumers to Honda, a brand consumers view as fuel-efficient, Schuster said.
Honda's sales rose 15.6 percent in May 2008 from the year-previous period, while GM's fell 27.5 percent, Ford's 15.9 percent, and Chrysler's 25.4 percent. Toyota gained share as its sales fell 4.3 percent.
Last month's sales also indicate that some consumers are showing support for U.S.-based automakers, Schuster said of Ford's and GM's results. President Barack Obama urged the nation to buy American vehicles as he announced Chrysler's bankruptcy on April 30. Schuster also said Ford is benefiting from not seeking government aid.
Elsewhere in the industry, Volkswagen Group slid 12.5 percent. Daimler AG's sales fell 33.4 percent, and the BMW Group dropped 27.6 percent. Subaru slipped 5 percent; Mazda, 40.1 percent; and Hyundai-Kia 18.7 percent.
+ 2009 Auto Sales Monthly Reports Coverage
The Chrysler effect
Some analysts had said Chrysler's retail sales rate would show a boost from clearance sales at dealerships being terminated. On May 14, Chrysler told 789 of its dealerships that they would not have a future with Chrysler Group LLC, the new company set to be steered by Italian automaker Fiat S.p.A. after a scheduled emergence from the automaker's bankruptcy on Friday. Those dealerships have one week left to sell their Chrysler inventory.
Ford said it sold 35,582 crossovers, more than any month since May 2008, and its Lincoln luxury brand posted an increase of 2.4 percent.
Sales of 2,780 Insights drove a 3.5 percent increase in Honda's hybrid sales. The new Insight launched in May.
Ford said it would begin a "Drive the Ford Difference" incentive program today, in which the automaker will cover up to three months of payments on select vehicles, for a total not to exceed $2,100. Ford Credit will also offer 0 percent financing on some vehicles. The program lasts through June 30.
Ford already is anticipating fire-sales at other automakers' dealerships because of liquidations, said Ken Czubay, Ford's vice president of U.S. sales and marketing. In addition to the Chrysler closings, GM has notified 1,324 dealerships it does not plan to renew their franchises beyond October 2010.
"For consumers and for the industry, the next 90 days will be challenging and volatile," Czubay said.
The U.S. sales rate dropped below 11 million units in October, hitting lows not seen in more than a quarter of a century. The rate has hovered between 9 million and 10 million units this year amid an 18-month U.S. recession, the longest since the Great Depression.
Last year's industry sales total was 13.2 million, down from 16.2 million in 2007.
Overall sales fell 33.7 percent, the smallest decrease since October's 31.9 percent. The seasonally adjusted annual rate was 9.9 million, the highest of 2009. May's industrywide sales of 926,130 marked the first monthly total this year above 900,000.
"If you're rooting for the Americans, that's what passes as bright news: that they were down less than their competitors," said Efraim Levy, an equity analyst with Standard & Poor's.
Ford Motor's 25.8 percent light-vehicle sales decline was its lowest since July 2008, and GM's 29.0 percent skid reflected its smallest decrease since September. American Honda said its sales plummeted 41.5 percent from May 2008, when the company set a monthly sales record. Toyota Motor Sales fell 40.7 percent, and Nissan North America slid 33.1 percent.
Chrysler LLC's sales tumbled 46.9 percent in May, dragged down by a decline of more than 90 percent in fleet volume stemming from its factory shutdown during bankruptcy. Retail sales fell 30 percent, the automaker said.
Last year's turmoil
The smaller declines at Ford and GM, which filed for Chapter 11 reorganization yesterday, stem in part from comparisons to last year, said Jeff Schuster, executive director of forecasting at the market research firm J.D. Power and Associates.
Average U.S. fuel prices in May 2008 hit $3.97 for a gallon of regular unleaded, according to AAA. The rising prices attracted consumers to Honda, a brand consumers view as fuel-efficient, Schuster said.
Honda's sales rose 15.6 percent in May 2008 from the year-previous period, while GM's fell 27.5 percent, Ford's 15.9 percent, and Chrysler's 25.4 percent. Toyota gained share as its sales fell 4.3 percent.
Last month's sales also indicate that some consumers are showing support for U.S.-based automakers, Schuster said of Ford's and GM's results. President Barack Obama urged the nation to buy American vehicles as he announced Chrysler's bankruptcy on April 30. Schuster also said Ford is benefiting from not seeking government aid.
Elsewhere in the industry, Volkswagen Group slid 12.5 percent. Daimler AG's sales fell 33.4 percent, and the BMW Group dropped 27.6 percent. Subaru slipped 5 percent; Mazda, 40.1 percent; and Hyundai-Kia 18.7 percent.
+ 2009 Auto Sales Monthly Reports Coverage
The Chrysler effect
Some analysts had said Chrysler's retail sales rate would show a boost from clearance sales at dealerships being terminated. On May 14, Chrysler told 789 of its dealerships that they would not have a future with Chrysler Group LLC, the new company set to be steered by Italian automaker Fiat S.p.A. after a scheduled emergence from the automaker's bankruptcy on Friday. Those dealerships have one week left to sell their Chrysler inventory.
Ford said it sold 35,582 crossovers, more than any month since May 2008, and its Lincoln luxury brand posted an increase of 2.4 percent.
Sales of 2,780 Insights drove a 3.5 percent increase in Honda's hybrid sales. The new Insight launched in May.
Ford said it would begin a "Drive the Ford Difference" incentive program today, in which the automaker will cover up to three months of payments on select vehicles, for a total not to exceed $2,100. Ford Credit will also offer 0 percent financing on some vehicles. The program lasts through June 30.
Ford already is anticipating fire-sales at other automakers' dealerships because of liquidations, said Ken Czubay, Ford's vice president of U.S. sales and marketing. In addition to the Chrysler closings, GM has notified 1,324 dealerships it does not plan to renew their franchises beyond October 2010.
"For consumers and for the industry, the next 90 days will be challenging and volatile," Czubay said.
The U.S. sales rate dropped below 11 million units in October, hitting lows not seen in more than a quarter of a century. The rate has hovered between 9 million and 10 million units this year amid an 18-month U.S. recession, the longest since the Great Depression.
Last year's industry sales total was 13.2 million, down from 16.2 million in 2007.
May 2009 Auto Sales: Chrysler Posts Best Month of 2009
- Chrysler LLC posts best retail sales month of 2009
- Chrysler, Dodge and Jeep brands post double-digit retail sales gains compared to previous month
- Jeep Wrangler sales continue upward trend increasing 4 percent year-over-year compared to May 2008
Chrysler LLC today reported May U.S. total sales of 79,010 units, representing the best retail sales month of 2009 and a retail performance that was better than the industry average. Compared to May 2008, retail sales decreased 30 percent. During the month of May, Chrysler LLC did not produce any vehicles for fleet sales which resulted in a fleet sales reduction of 90 percent year-over-year for the same period.
"We are pleased that consumers responded to Chrysler's reorganization by purchasing our products, resulting in our best retail sales month of the year," said Jim Press, Vice Chairman and President - Chrysler LLC. "Overall our sales were above expectations during this month of transition."
On June 1, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC's assets to a new company, Chrysler Group LLC in alliance with Fiat S.p.A.
"The uncertainty that has been surrounding Chrysler for the last few months is coming to an end, and a vibrant, new company is beginning to take shape," Press added. "One that will better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles."
+ 2009 Auto Sales Monthly Reports Coverage
May Sales Highlights
"May was a very encouraging retail month for Chrysler and the industry," said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. "Retail sales for the industry came in stronger than expected and our retail performance during our restructuring was even stronger than the industry, giving us improved share and optimism that the market is showing signs of life."
Compared to the same time period in 2008, Chrysler LLC's total sales decreased 47 percent. The Company finished the month with 260,407 units representing an 86 day supply. Inventory is down 37 percent compared with May 2008 when it totaled 412,009 units.
Product Redistribution
Chrysler is taking actions to assist in the redistribution of remaining eligible inventory of dealers who had their sales and service agreements rejected. The inventory from the rejected dealers will be matched with dealers who are moving forward with the new company and need to replenish their inventory or acquire inventory for additional brand lines they may add.
- Chrysler, Dodge and Jeep brands post double-digit retail sales gains compared to previous month
- Jeep Wrangler sales continue upward trend increasing 4 percent year-over-year compared to May 2008
Chrysler LLC today reported May U.S. total sales of 79,010 units, representing the best retail sales month of 2009 and a retail performance that was better than the industry average. Compared to May 2008, retail sales decreased 30 percent. During the month of May, Chrysler LLC did not produce any vehicles for fleet sales which resulted in a fleet sales reduction of 90 percent year-over-year for the same period.
"We are pleased that consumers responded to Chrysler's reorganization by purchasing our products, resulting in our best retail sales month of the year," said Jim Press, Vice Chairman and President - Chrysler LLC. "Overall our sales were above expectations during this month of transition."
On June 1, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC's assets to a new company, Chrysler Group LLC in alliance with Fiat S.p.A.
"The uncertainty that has been surrounding Chrysler for the last few months is coming to an end, and a vibrant, new company is beginning to take shape," Press added. "One that will better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles."
+ 2009 Auto Sales Monthly Reports Coverage
May Sales Highlights
"May was a very encouraging retail month for Chrysler and the industry," said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. "Retail sales for the industry came in stronger than expected and our retail performance during our restructuring was even stronger than the industry, giving us improved share and optimism that the market is showing signs of life."
Compared to the same time period in 2008, Chrysler LLC's total sales decreased 47 percent. The Company finished the month with 260,407 units representing an 86 day supply. Inventory is down 37 percent compared with May 2008 when it totaled 412,009 units.
Product Redistribution
Chrysler is taking actions to assist in the redistribution of remaining eligible inventory of dealers who had their sales and service agreements rejected. The inventory from the rejected dealers will be matched with dealers who are moving forward with the new company and need to replenish their inventory or acquire inventory for additional brand lines they may add.
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