Chrysler's decision to cut 25% of its dealerships is providing an opportunity for Indian car and truck manufacturer Mahindra & Mahindra to enter the U.S. market quickly.
Two metro Detroit dealers who lost their Chrysler franchises last week -- Tibor Gyarmati of Mt. Clemens (formerly Dodge) and Gus Russo of Lochmoor (formerly Chrysler-Jeep) on Mack Avenue on Detroit's east side -- expect to begin selling their first Mahindra compact pickups this fall. Doug North of North Brothers Ford in Westland also will join the Mahindra network.
"One door closes, and another one opens," said Russo, who also intends to keep his Mack Avenue dealership open for used car sales and service. "What really attracted me is that every engine they have is a clean-burning diesel. You can fill up in Detroit and drive to New York City before you have to fill up again."
Mahindra has set up a U.S. marketing arm, known as Global Vehicles USA, in Alpharetta, Ga. It wants to sell 45,000 trucks in its first 12 months in the United States with a network of about 300 dealerships, said Casey McGraw, Global Vehicles' vice president for sales. Mahindra has sold tractors in the United States since 1994.
According to the Global Vehicles Web site, Mahindra will offer a small SUV in fall 2010. Russo said he expects prices of $13,000 to $15,000. The pickups will be imported from India for the first six months. Mahindra plans to assemble them through a contract manufacturing partner in the United States by mid-2010.
All the engines will be 2.2-liter diesels mated with a 6-speed automatic transmission.
Gyarmati said these diesels are nothing like the dirty smelly diesels some Americans associate with certain General Motors and Volkswagen cars of the 1970s.
"That was a different era," Gyarmati said. "Now, with diesel selling for less than gasoline, their timing is just right."
Showing posts with label Auto Maker. Show all posts
Showing posts with label Auto Maker. Show all posts
Monday, June 15, 2009
Sunday, June 14, 2009
Honda May Raise 100 Billion Yen to Finance Car Loans
Honda Motor Co., Japan’s second- largest carmaker, may raise about 100 billion yen ($1 billion) by selling asset-backed securities or commercial paper to fund car loans as it expects demand to recover later this year.
The credit environment “has changed dramatically,” said Executive Vice President Koichi Kondo in an interview yesterday, adding that the funds would also be used to repay debt. Interest rates “may be the cheapest we’ve ever borrowed at.”
Honda expects global vehicle sales to rise to 1.65 million units in the second half of the year ending in March, compared with 1.55 million units in the first half. More people buying cars will require more money available for loans, Kondo said.
“If you don’t need to borrow, that means things are looking bad,” he said.
In the first five months of the year, Tokyo-based Honda’s sales in the U.S., its biggest market, plunged 34 percent as higher unemployment deterred buyers. In Japan, sales have dropped 16 percent. The company’s new Insight hybrid helped it withstand a 29 percent industrywide sales decline in its home market during the period.
Honda’s fundraising plan would follow the company’s sale of 70 billion yen in three-year bonds on June 4, its first bond issue in 16 years. Rival Toyota Motor Corp., Japan’s biggest carmaker, also plans to increase a planned bond sale 63 percent to about 130 billion yen, according to two bankers familiar with the deal. Sony Corp. earlier this week raised 220 billion yen in its biggest-ever bond sale.
“Automakers want to make sure that they secure funds when they can by as much as they can,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “The borrowing environment is now much easier.”
The credit environment “has changed dramatically,” said Executive Vice President Koichi Kondo in an interview yesterday, adding that the funds would also be used to repay debt. Interest rates “may be the cheapest we’ve ever borrowed at.”
Honda expects global vehicle sales to rise to 1.65 million units in the second half of the year ending in March, compared with 1.55 million units in the first half. More people buying cars will require more money available for loans, Kondo said.
“If you don’t need to borrow, that means things are looking bad,” he said.
In the first five months of the year, Tokyo-based Honda’s sales in the U.S., its biggest market, plunged 34 percent as higher unemployment deterred buyers. In Japan, sales have dropped 16 percent. The company’s new Insight hybrid helped it withstand a 29 percent industrywide sales decline in its home market during the period.
Honda’s fundraising plan would follow the company’s sale of 70 billion yen in three-year bonds on June 4, its first bond issue in 16 years. Rival Toyota Motor Corp., Japan’s biggest carmaker, also plans to increase a planned bond sale 63 percent to about 130 billion yen, according to two bankers familiar with the deal. Sony Corp. earlier this week raised 220 billion yen in its biggest-ever bond sale.
“Automakers want to make sure that they secure funds when they can by as much as they can,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “The borrowing environment is now much easier.”
Tuesday, June 9, 2009
GM New Chairman: Former AT&T Chief (Edward E. Whitacre Jr.)
General Motors named Edward E. Whitacre Jr., the former chief executive of AT&T, on Tuesday as the chairman of a recast board to oversee the “New G.M.” that will emerge from bankruptcy.
G.M., which filed for Chapter 11 bankruptcy protection on June 1, said Mr. Whitacre would be joined on the board by Kent Kresa, its current interim chairman, and G.M.’s chief executive, Fritz Henderson.
Four other G.M. directors will keep their seats, but six — including the long-time lead director, George Fisher — will retire before G.M. is reorganized in bankruptcy court.
The overhaul of the G.M. board was a condition set by the Treasury Department for continued financial assistance to the insolvent automaker.
G.M. has received $19.4 billion in federal loans since December, and will get another $30.1 billion in government aid.
The sweeping changes in the board room follow President Obama’s decision to ask Rick Wagoner, G.M.’s previous chairman and chief executive, to resign in March.
Mr. Whitacre’s appointment reflects the need seen by the president’s top auto advisers to put an outsider at the top of G.M., which will be 60 percent owned by the federal government when it comes out of bankruptcy.
“I am honored to be able to serve G.M. at this critical juncture and take part in its reinvention,” said Mr. Whitacre, who was chairman and chief executive of AT&T, and predecessor companies, from 1990 to 2007.
Several other candidates for four other board seats are still being considered by Steven Rattner, one of the leaders of Mr. Obama’s auto task force.
Upon Mr. Wagoner’s resignation on March 27, Mr. Kresa was tapped by the government to act as interim chairman.
He said Tuesday that the appointment of Mr. Whitacre was “a very auspicious beginning” for the company.
“We look forward to working with him to complete the reinvention of G.M. and maximize the enormous potential of this new enterprise,” Mr. Kresa said.
Besides Mr. Kresa and Mr. Henderson, the directors who will remain on the board are Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis Jr. and E. Neville Isdell.
G.M., which filed for Chapter 11 bankruptcy protection on June 1, said Mr. Whitacre would be joined on the board by Kent Kresa, its current interim chairman, and G.M.’s chief executive, Fritz Henderson.
Four other G.M. directors will keep their seats, but six — including the long-time lead director, George Fisher — will retire before G.M. is reorganized in bankruptcy court.
The overhaul of the G.M. board was a condition set by the Treasury Department for continued financial assistance to the insolvent automaker.
G.M. has received $19.4 billion in federal loans since December, and will get another $30.1 billion in government aid.
The sweeping changes in the board room follow President Obama’s decision to ask Rick Wagoner, G.M.’s previous chairman and chief executive, to resign in March.
Mr. Whitacre’s appointment reflects the need seen by the president’s top auto advisers to put an outsider at the top of G.M., which will be 60 percent owned by the federal government when it comes out of bankruptcy.
“I am honored to be able to serve G.M. at this critical juncture and take part in its reinvention,” said Mr. Whitacre, who was chairman and chief executive of AT&T, and predecessor companies, from 1990 to 2007.
Several other candidates for four other board seats are still being considered by Steven Rattner, one of the leaders of Mr. Obama’s auto task force.
Upon Mr. Wagoner’s resignation on March 27, Mr. Kresa was tapped by the government to act as interim chairman.
He said Tuesday that the appointment of Mr. Whitacre was “a very auspicious beginning” for the company.
“We look forward to working with him to complete the reinvention of G.M. and maximize the enormous potential of this new enterprise,” Mr. Kresa said.
Besides Mr. Kresa and Mr. Henderson, the directors who will remain on the board are Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis Jr. and E. Neville Isdell.
Monday, June 8, 2009
Fiat and Chrysler Deal Confirmed Despite Court Delay
Italian automaker Fiat said Tuesday it will not turn its back on a deal to acquire a controlling stake in Chrysler despite a U.S. Supreme Court stay on the sale.
Under terms of the agreement, Fiat has the option to abandon the deal if it is not completed by June 15.
"Fiat won't walk away from Chrysler," Fiat spokesman Gualberto Ranieri said.
The U.S. Supreme Court decision on Monday to hear a challenge by three Indiana pension and construction funds could ultimately scuttle the sale. But the delay could also only be temporary. Justice Ruth Ginsburg could decide on her own to end the stay or ask the full court to decide.
If Fiat were to walk away, Chrysler would have little option but to liquidate.
The trio of funds, which hold a small part of Chrysler's debt, have been fighting the sale, claiming that it unfairly favors Chrysler's unsecured stakeholders ahead of secured debtholders like themselves.
Chrysler claims the agreement with Fiat is the best deal it can get for its assets and is critical to the company's plan to emerge from bankruptcy protection.
Fiat has offered its small car and environmentally friendly engine technology, as well as management expertise, in exchange for an initial 20 percent stake in Chrysler, which will grow to 35 percent in 5 percent increments. Fiat CEO Sergio Marchionne, who was in Detroit on Tuesday laying the groundwork for the transition, will also become Chrysler's chief executive when the deal is complete.
Marchionne, who is responsible for Fiat's turnaround from a loss-making company with a string of failed models, also is expected to bring fundamental changes to the Chrysler management structure — doing away with hierarchy and making a quicker decision-making process.
Fiat plans to launch its hugely popular Fiat 500 (Cinquecento in Italian) in the United States, as well as the Alfa Romeo brand.
Marchionne also remains interested in Germany's Opel, part of General Motors Corp.'s European operations, in case negotiations fail with the leading bidder, Canadian auto parts supplier Magna International Inc.
Under terms of the agreement, Fiat has the option to abandon the deal if it is not completed by June 15.
"Fiat won't walk away from Chrysler," Fiat spokesman Gualberto Ranieri said.
The U.S. Supreme Court decision on Monday to hear a challenge by three Indiana pension and construction funds could ultimately scuttle the sale. But the delay could also only be temporary. Justice Ruth Ginsburg could decide on her own to end the stay or ask the full court to decide.
If Fiat were to walk away, Chrysler would have little option but to liquidate.
The trio of funds, which hold a small part of Chrysler's debt, have been fighting the sale, claiming that it unfairly favors Chrysler's unsecured stakeholders ahead of secured debtholders like themselves.
Chrysler claims the agreement with Fiat is the best deal it can get for its assets and is critical to the company's plan to emerge from bankruptcy protection.
Fiat has offered its small car and environmentally friendly engine technology, as well as management expertise, in exchange for an initial 20 percent stake in Chrysler, which will grow to 35 percent in 5 percent increments. Fiat CEO Sergio Marchionne, who was in Detroit on Tuesday laying the groundwork for the transition, will also become Chrysler's chief executive when the deal is complete.
Marchionne, who is responsible for Fiat's turnaround from a loss-making company with a string of failed models, also is expected to bring fundamental changes to the Chrysler management structure — doing away with hierarchy and making a quicker decision-making process.
Fiat plans to launch its hugely popular Fiat 500 (Cinquecento in Italian) in the United States, as well as the Alfa Romeo brand.
Marchionne also remains interested in Germany's Opel, part of General Motors Corp.'s European operations, in case negotiations fail with the leading bidder, Canadian auto parts supplier Magna International Inc.
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%).
Saturday, June 6, 2009
Canadian makers,dealers ask for $3,500 incentives to scrap old clunkers
Car makers and dealers are urging the federal government to pay people $3,500 to scrap old clunkers and buy new vehicles.
Representatives of the Canadian Vehicle Manufacturers' Association and the Canadian Automobile Dealers Association applauded the steps the government has taken to support the struggling auto industry, but said they'll come to naught unless consumers start buying.
If Ottawa invests $350 million - a pittance compared to the billions it has spent bailing out Chrysler and General Motors - it could stimulate sales of 100,000 new vehicles, Richard Gauthier, president of the dealers' association, said Friday at a news conference in Ottawa.
"So far government has been tremendously supportive of our industry and has helped ensure it remains viable," Gauthier said.
"However, consumer confidence has been shaken by the state of the economy, and we need to give them reason to get their older, higher-polluting vehicles off the road."
Gauthier and Mark Nantais, president of the vehicle manufacturers' association, called on Ottawa to create a scrappage program similar to those on offer in the U.K., France and Germany.
Under the proposal, the government would offer consumers a $3,500 incentive to trade in a used car that's at least 10 years old for a new one. The program would last for one year or until the funding was used up, whichever came first.
Gauthier said the program could be funded in large part by the $92 million already set aside for a smaller scrappage program and by the increase in GST revenue from increased vehicle sales. Assuming an average car price of $20,000, sales of 100,000 new vehicles would generate $100 million in GST revenue.
In addition, a robust vehicle scrappage program would also boost the struggling economy, Nantais said.
"This will kickstart the consumer confidence needed to get people into showrooms and actually purchasing new cars. We must complete the stimulus equation by addressing demand," Nantais said.
In Germany, a program that pays consumers euro2,500, or more than C$4,000, to trade in their used cars has done wonders to boost new vehicle sales, Gauthier said. New vehicle sales in Germany increased by 20 per cent in April and a whopping 40 per cent in May, largely on the strength of the scrappage program.
By comparison, Canadian sales were down by 17.8 per cent in April and 16.5 per cent in May.
Critics of scrappage programs say they simply boost vehicle sales in the short term but prompting consumers who were already planning to buy a new vehicle to head to the showroom a few months early.
Ford Canada president and CEO David Mondragon said a robust scrappage program would help offset almost a third of vehicle sales lost to the recession.
"Our industry this year is trending down close to 20 per cent right now, so that's a nearly 300,000-unit decline on a year-over-year basis," said Mondragon, who has been an outspoken proponent of an improved scrappage program.
"If we could claw back 100,000 of those units, it would hugely offset the decline and stabilize our industry," he added.
Canada does offer a scrappage program already, but critics have variously described it as "a joke" and "useless."
Under the current program, consumers can receive free transit passes, membership in a car-sharing program, money towards a new bike, $300 in cash or a $500 rebate on the purchase of vehicle built in 2004 or later.
However, the incentives vary by province. New Brunswick and Prince Edward Island are the only provinces in which you can get the rebate. If you live in Ontario, Manitoba or Saskatchewan, your only option is the $300 in cash.
Last month, Industry Minister Tony Clement said Ottawa is closely watching a similar proposal that's winding its way through U.S. Congress but doesn't want a program that will pay consumers for their old clunkers only to have them resold and go back on the road.
Representatives of the Canadian Vehicle Manufacturers' Association and the Canadian Automobile Dealers Association applauded the steps the government has taken to support the struggling auto industry, but said they'll come to naught unless consumers start buying.
If Ottawa invests $350 million - a pittance compared to the billions it has spent bailing out Chrysler and General Motors - it could stimulate sales of 100,000 new vehicles, Richard Gauthier, president of the dealers' association, said Friday at a news conference in Ottawa.
"So far government has been tremendously supportive of our industry and has helped ensure it remains viable," Gauthier said.
"However, consumer confidence has been shaken by the state of the economy, and we need to give them reason to get their older, higher-polluting vehicles off the road."
Gauthier and Mark Nantais, president of the vehicle manufacturers' association, called on Ottawa to create a scrappage program similar to those on offer in the U.K., France and Germany.
Under the proposal, the government would offer consumers a $3,500 incentive to trade in a used car that's at least 10 years old for a new one. The program would last for one year or until the funding was used up, whichever came first.
Gauthier said the program could be funded in large part by the $92 million already set aside for a smaller scrappage program and by the increase in GST revenue from increased vehicle sales. Assuming an average car price of $20,000, sales of 100,000 new vehicles would generate $100 million in GST revenue.
In addition, a robust vehicle scrappage program would also boost the struggling economy, Nantais said.
"This will kickstart the consumer confidence needed to get people into showrooms and actually purchasing new cars. We must complete the stimulus equation by addressing demand," Nantais said.
In Germany, a program that pays consumers euro2,500, or more than C$4,000, to trade in their used cars has done wonders to boost new vehicle sales, Gauthier said. New vehicle sales in Germany increased by 20 per cent in April and a whopping 40 per cent in May, largely on the strength of the scrappage program.
By comparison, Canadian sales were down by 17.8 per cent in April and 16.5 per cent in May.
Critics of scrappage programs say they simply boost vehicle sales in the short term but prompting consumers who were already planning to buy a new vehicle to head to the showroom a few months early.
Ford Canada president and CEO David Mondragon said a robust scrappage program would help offset almost a third of vehicle sales lost to the recession.
"Our industry this year is trending down close to 20 per cent right now, so that's a nearly 300,000-unit decline on a year-over-year basis," said Mondragon, who has been an outspoken proponent of an improved scrappage program.
"If we could claw back 100,000 of those units, it would hugely offset the decline and stabilize our industry," he added.
Canada does offer a scrappage program already, but critics have variously described it as "a joke" and "useless."
Under the current program, consumers can receive free transit passes, membership in a car-sharing program, money towards a new bike, $300 in cash or a $500 rebate on the purchase of vehicle built in 2004 or later.
However, the incentives vary by province. New Brunswick and Prince Edward Island are the only provinces in which you can get the rebate. If you live in Ontario, Manitoba or Saskatchewan, your only option is the $300 in cash.
Last month, Industry Minister Tony Clement said Ottawa is closely watching a similar proposal that's winding its way through U.S. Congress but doesn't want a program that will pay consumers for their old clunkers only to have them resold and go back on the road.
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
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.
GM Agree to Sell Hummer, Who is Buyer?
General Motors Corp. said Tuesday that it has tentatively agreed to sell its Hummer brand, a day after the U.S. automaker filed for bankruptcy protection with hopes that it will transform its most profitable assets into a new company within just 30 days.
The Detroit-based company did not name the proposed buyer or the price, but said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.
"We're not today in a position to be able to identify a buyer. it was part of the agreement," GM Chief Executive Fritz Henderson told CBS's "The Early Show." ''We believe the buyer is quite capable of closing."
Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose. Sales at Hummer, which is known for hulking sport utility vehicles like the H3, have been in a steep slide since gasoline prices rose to record heights last summer. For the first four months of this year, Hummer sales are down 67 percent.
GM and other automakers will report May auto sales later Tuesday.
A sale of the Hummer brand had been expected. Chief Executive Fritz Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.
Other terms of the transaction, which is currently tied to a memorandum of understanding, were not disclosed.
The unnamed buyer is planning to "aggressively" finance Hummer's future product programs, according to GM.
"I'm confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused and more cost-competitive automaker," Troy Clarke, president of GM North America, said in a statement.
GM is also trying to sell its Saab and Saturn brands and will phase out its Pontiac brand as it concentrates on its Chevrolet, Cadillac, Buick and GMC nameplates.
In advance of Monday's bankruptcy filing by GM, the automaker had agreed on a deal to sell a majority interest in its Adam Opel GmbH unit in Europe.
Under that plan, Canada's Magna International Inc. would get a 20 percent stake in Opel and state-controlled Russian lender Sberbank would take a 35 percent stake. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees.
The proposed deal for Hummer will allow it to continue to contract vehicle manufacturing and business services from GM during the transition process.
The Hummer sale is expected to close by the third quarter's end.
GM sought court protection from its creditors on Monday under Chapter 11 of the U.S. bankruptcy code. The company said it hopes to reshape the company within a month and emerge from reorganization in 60 to 90 days as a profitable entity with fewer employees, factories and dealers.
The Detroit-based company did not name the proposed buyer or the price, but said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships.
"We're not today in a position to be able to identify a buyer. it was part of the agreement," GM Chief Executive Fritz Henderson told CBS's "The Early Show." ''We believe the buyer is quite capable of closing."
Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose. Sales at Hummer, which is known for hulking sport utility vehicles like the H3, have been in a steep slide since gasoline prices rose to record heights last summer. For the first four months of this year, Hummer sales are down 67 percent.
GM and other automakers will report May auto sales later Tuesday.
A sale of the Hummer brand had been expected. Chief Executive Fritz Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.
Other terms of the transaction, which is currently tied to a memorandum of understanding, were not disclosed.
The unnamed buyer is planning to "aggressively" finance Hummer's future product programs, according to GM.
"I'm confident that Hummer will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused and more cost-competitive automaker," Troy Clarke, president of GM North America, said in a statement.
GM is also trying to sell its Saab and Saturn brands and will phase out its Pontiac brand as it concentrates on its Chevrolet, Cadillac, Buick and GMC nameplates.
In advance of Monday's bankruptcy filing by GM, the automaker had agreed on a deal to sell a majority interest in its Adam Opel GmbH unit in Europe.
Under that plan, Canada's Magna International Inc. would get a 20 percent stake in Opel and state-controlled Russian lender Sberbank would take a 35 percent stake. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees.
The proposed deal for Hummer will allow it to continue to contract vehicle manufacturing and business services from GM during the transition process.
The Hummer sale is expected to close by the third quarter's end.
GM sought court protection from its creditors on Monday under Chapter 11 of the U.S. bankruptcy code. The company said it hopes to reshape the company within a month and emerge from reorganization in 60 to 90 days as a profitable entity with fewer employees, factories and dealers.
May 2009 Auto Sales: Mazda Sales Figures. of North American
Mazda North American Operations (MNAO) today reported May 2009 sales of 16,718, down 40.1 percent versus May of 2008, and down 37.9 percent on a Daily Selling Rate (DSR) basis.
Overall, total yearly sales are reported at 86,652, down 33.0 percent compared to 2008, or 32.0 percent on a DSR basis.
Leading the way in sales for the month was the MAZDA3, which recorded 7,500 units sold. The 2010 MAZDA3 is a redefined, reengineered, and restyled sport compact that delivers improved appearance and performance, fresh features, and an unmatched level of refinement.
Mazda Motor de Mexico (MMdM) reported sales of 1,183, down 31 percent over May of 2008. Sales for the all-new MAZDA6 were up 22 percent and showed its best May ever.
Mazda Canada Inc. (MCI) sold 8,009 units, down 17.2 percent compared to last May.
Headquartered in Irvine, Calif., Mazda North American Operations oversees the sales, marketing, parts and customer service support of Mazda vehicles in the United States, Canada, Mexico and Puerto Rico through nearly 900 dealers.
Operations in Canada are managed by Mazda Canada, Inc., located in Ontario; in Mexico by Mazda Motor de Mexico in Mexico City; and in Puerto Rico by Mazda de Puerto Rico in San Juan.
Overall, total yearly sales are reported at 86,652, down 33.0 percent compared to 2008, or 32.0 percent on a DSR basis.
Leading the way in sales for the month was the MAZDA3, which recorded 7,500 units sold. The 2010 MAZDA3 is a redefined, reengineered, and restyled sport compact that delivers improved appearance and performance, fresh features, and an unmatched level of refinement.
Mazda Motor de Mexico (MMdM) reported sales of 1,183, down 31 percent over May of 2008. Sales for the all-new MAZDA6 were up 22 percent and showed its best May ever.
Mazda Canada Inc. (MCI) sold 8,009 units, down 17.2 percent compared to last May.
Headquartered in Irvine, Calif., Mazda North American Operations oversees the sales, marketing, parts and customer service support of Mazda vehicles in the United States, Canada, Mexico and Puerto Rico through nearly 900 dealers.
Operations in Canada are managed by Mazda Canada, Inc., located in Ontario; in Mexico by Mazda Motor de Mexico in Mexico City; and in Puerto Rico by Mazda de Puerto Rico in San Juan.
Mazda North American Operations - May
2009
Month-To-Date Year-To-Date
------------- ------------
May May % % MTD May May % % YTD
2009 2008 Change DSR 2009 2008 Change DSR
---- ---- ------ --- ---- ---- ------ ---
Mazda3 7,500 12,788 (41.4)% (39.2)% 38,583 49,129 (21.5)% (20.2)%
Mazda5 1,197 2,072 (42.2)% (40.1)% 9,194 10,561 (12.9)% (11.6)%
Mazda6 2,689 4,921 (45.4)% (43.3)% 15,809 29,378 (46.2)% (45.3)%
MX-5
Miata 906 1,396 (35.1)% (32.7)% 4,130 6,085 (32.1)% (31.1)%
RX-8 236 309 (23.6)% (20.8)% 886 1,548 (42.8)% (41.9)%
CX-7 1,619 2,529 (36.0)% (33.6)% 7,194 13,999 (48.6)% (47.8)%
CX-9 1,785 2,448 (27.1)% (24.4)% 8,143 11,393 (28.5)% (27.4)%
Tribute 705 1,264 (44.2)% (42.2)% 2,388 6,568 (63.6)% (63.1)%
B-Series
Truck 81 194 (58.2)% (56.7)% 325 709 (54.2)% (53.4)%
Total Vehicles
--------------
CARS 12,528 21,486 (41.7)% (39.5)% 68,602 96,701 (29.1)% (27.9)%
TRUCKS 4,190 6,435 (34.9)% (32.5)% 18,050 32,669 (44.7)% (43.9)%
----- ----- ----- ------ ------ -----
TOTAL 16,718 27,921 (40.1)% (37.9)% 86,652 129,370 (33.0)% (32.0)%
====== ====== ===== ===== ====== ======= ===== =====
MEMO:
-----
IMPORT CAR 9,839 16,565 (40.6)% 52,793 67,323 (21.6)%
IMPORT
TRUCK 3,404 4,977 (31.6)% 15,337 25,392 (39.6)%
----- ----- ----- ------ ------ -----
IMPORT
TOTAL 13,243 21,542 (38.5)% 68,130 92,715 (26.5)%
DOMESTIC
CAR 2,689 4,921 (45.4)% 15,809 29,378 (46.2)%
DOMESTIC
TRUCK 786 1,458 (46.1)% 2,713 7,277 (62.7)%
--- ----- ----- ----- ----- -----
DOMESTIC
TOTALS 3,475 6,379 (45.5)% 18,522 36,655 (49.5)%
-------- ----- ----- ----- ------ ------ -----
Selling
Days 27 28 128 130
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