The Dodge Caliber hatchback has plenty of room to pack your stuff for a quick getaway, but these days it is going nowhere fast. American car dealers are taking an average of 223 days to clear the Caliber off their lots. That's more than seven months -- a longer sales period than any other major-selling car on the market today.
The Caliber is joined by a host of other American-made vehicles at the top of a list of cars American drivers have little intrest in buying, including: the Dodge Avenger, Pontiac G6 and the Chevrolet Cobalt. In fact, 12 of the 15 slowest selling cars on a list prepared by Edmunds for ABC News are American made. On the foreign side only the Kia Optima, and Spectra and the Hyundai Sonata were the on models on the list of automotive dogs.
Jessica Caldwell, an industry analyst at Edmunds.com, said that part of the problem is a lack of customer demand and part is an overproduction by American automakers.
"It's really a reflection of a misstep of the American automakers," Caldwell said.
General Motors and Chrysler dominated the list. Ford only had one vehicle on it: the venerable Mustang.
Edmunds looked at cars sold by dealerships in May and how long they had been on the lots. Only models with 2,000 or more sales were included in the list to filter out lesser-known and obscure models. A healthy day supply number is about 60 days.
Pontiac's G6, Dodge's Charger, Jeep's Patriot, Chevrolet's Cobalt and Colorado and Ford's Mustang rounded up the top 10 worst performing models in May -- all with day supplies higher than 145 days.
Models that are doing relatively well in the market are those with a good fuel economy, quality reputations and reasonable prices, said Joe Phillippi, of AutoTrends Consulting.
+ 2009 Detroit: Jeep Patriot EV Joins Chrysler ENVI Electric
+ 2009 Dodge Charger SXT: Great Large Sedan
+ New York 2008: Pontiac G8 GXP 2009
+ 2009 Chevrolet Car, Truck, Crossover and SUV: What's New?
+ Hybrid Tax Credit Available for Colorado Looming
+ 2010 Camaro SS vs 2010 Mustang GT vs 2009 Challenger R/T
Dodge Caliber- $16,460 to $24,840, mpg 24/30
Chrysler's Dodge Caliber is particularly inept seller at 223 days. The car features a lot of cargo room, but Edmunds.com called the car "one of the least appealing small hatchbacks or wagons on the market" pointing to the Caliber's meager 172 horsepower engine that delivers "sluggish acceleration" and they noted the "unimpressive build quality." Despite its reasonable price, Car and Driver magazine says the Caliber's "vague steering" and "heavy ride" may make the vehicle seem more like a truck than a compact vehicle.
The Dodge Avenger is far from the meanest selling car on the lot. Its 211 day supply is surpassed only by its relative, the Dodge Caliber. Because of the car's "polarizing styling, budget interior materials and tepid driving dynamics," Edmunds.com says it's no surprise when consumers pass over the Avenger for a different midsized all-wheel drive model.
Pontiac G6- $19,275 - $32,300, mpg 22 / 33
Pontiac G6's 211 day supply is indicative of the gloomy fate for the soon-to-be terminated Pontiac brand. The G6 is available in three body styles as a coupe, a convertible or a sedan, but Edmunds.com says all three are "far from being class leaders." TheCarConnection.com gives the line a 6.8 out of 10 rating, highlighting the vehicle's "iffy safety" and cheap-looking interior materials.
The Kia Optima is the slowest selling car from a foreign automaker on the list with a 166 day supply. Autoguide.com said the model has a nice exterior re-design but said the Optima "rides far too loosely on its suspension" and use "less-than-pleasing material" for its seating.
Dodge Charger- $24,835 - $38,970, mpg 18/26
Despite its aggresive name, the Dodge Charger takes 163 days to creep off the lot. The reincarnated muscle car offers V8 performance and has a good amount of space for families on-the-go. But for drivers looking for a large sedan, Edmunds.com writes that competitors like the Ford Taurus and Honda Accord are "more practical choices."
Jeep Patriot- $17,540 - $23,980, mpg 23/28
The Jeep Patriot, another Chrysler brand, fails to get much of a salute from reviewers. This SUV-like model has good fuel economy and durable off-road features and a 163 day supply. But unless you're expecting to go trail-blazing through the Kalahari, Edmunds.com says that with its cheap interior design and lackluster engine power, the Patriot "should be near the bottom of your list."
The Kia Optima is the slowest selling car from a foreign automaker on the list with a 166 day supply. Autoguide.com said the model has a nice exterior re-design but said the Optima "rides far too loosely on its suspension" and use "less-than-pleasing material" for its seating.
Dodge Charger- $24,835 - $38,970, mpg 18/26
Despite its aggresive name, the Dodge Charger takes 163 days to creep off the lot. The reincarnated muscle car offers V8 performance and has a good amount of space for families on-the-go. But for drivers looking for a large sedan, Edmunds.com writes that competitors like the Ford Taurus and Honda Accord are "more practical choices."
Jeep Patriot- $17,540 - $23,980, mpg 23/28
The Jeep Patriot, another Chrysler brand, fails to get much of a salute from reviewers. This SUV-like model has good fuel economy and durable off-road features and a 163 day supply. But unless you're expecting to go trail-blazing through the Kalahari, Edmunds.com says that with its cheap interior design and lackluster engine power, the Patriot "should be near the bottom of your list."
Showing posts with label US Automotive. Show all posts
Showing posts with label US Automotive. Show all posts
Thursday, June 25, 2009
Wednesday, June 24, 2009
$1 Billion 'Cash for Clunkers' Can do What?
The government soon may be handing out vouchers for new cars. Cash giveaways have spurred trade-ins in Europe. Will they help in the U.S.?
The government really wants to get the U.S. automobile industry into gear. It has already stepped in to bail out carmakers with money, loans, and special bankruptcy treatment. Now it seems ready to dole out $1 billion to consumers in the form of vouchers to buy newer, more-efficient vehicles under the Cash for Clunkers program.
Proponents say it will modernize the U.S. vehicle fleet, getting rid of older cars that pollute more, are less safe, and burn more gas. More important to many, the money could save jobs in the auto sector, from parts suppliers to dealers, by lifting new car sales by at least 250,000 this year. One sign of the measure's popularity: The Senate passed it on a 91-5 vote.
President Barack Obama had repeatedly urged Congress to pass the bill and is expected to sign it by July 1, its proposed effective date.
Clunker qualifications
Still, there are critics. Some say the eligibility requirements are too stringent for the program to have much effect. Others say the government has already spent too much to help the car industry. There are also questions about whether the folks driving those clunkers can afford brand-new wheels. "It is just too big of a price tag for the minimal results it would produce," said Senator Ben Nelson of Nebraska, the only Democrat to vote against the act.
Here are the basics:
• Vouchers of either $3,500 or $4,500 will be given to people who trade in an older vehicle to buy a new one.
• The trade-in, or clunker, must be no older than 25 years, have average gas mileage of less than 18 miles per gallon, and have been owned by the seller for at least a year.
• The new car must cost less than $45,000 and get more than 22 mpg. To get the higher voucher, the new vehicle must also average 10 more miles per gallon than the old one.
• Trucks—SUVs, pickups, and minivans—have different rules. An improvement of at least 2 mpg between the old and new vehicles qualifies for $3,500; 5 mpg or more entitles buyers to $4,500.
• There are no income limits on voucher recipients, nor restrictions on where the new cars are made.
+ "Cash for Clunkers" Law Signed by Obama
+ Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
Germany instituted a scrappage program earlier this year, followed by France and Britain. While car sales are down significantly from prerecession 2007 totals, sales in those countries have risen since the subsidies began. There's little question that Detroit could use a similar boost. Americans are on track to buy 9.5 million new vehicles this year, down 40% from 16.1 million in 2007.
Edmunds.com CEO Jeremy Anwyl says, however, that carmakers and buyers alike will be disappointed. He argues that the industry needs help raising sales by 3 million vehicles or more, not 250,000 to 400,000. "The scale is just wrong," he says.
Anwyl urges consumers to read the fine print. The program is not a rebate or a tax credit, though, based on public comments at Edmunds.com, he says many people think so. "Don't get too excited," Anwyl says. "Chances are you're not eligible."
The government really wants to get the U.S. automobile industry into gear. It has already stepped in to bail out carmakers with money, loans, and special bankruptcy treatment. Now it seems ready to dole out $1 billion to consumers in the form of vouchers to buy newer, more-efficient vehicles under the Cash for Clunkers program.
Proponents say it will modernize the U.S. vehicle fleet, getting rid of older cars that pollute more, are less safe, and burn more gas. More important to many, the money could save jobs in the auto sector, from parts suppliers to dealers, by lifting new car sales by at least 250,000 this year. One sign of the measure's popularity: The Senate passed it on a 91-5 vote.
President Barack Obama had repeatedly urged Congress to pass the bill and is expected to sign it by July 1, its proposed effective date.
Clunker qualifications
Still, there are critics. Some say the eligibility requirements are too stringent for the program to have much effect. Others say the government has already spent too much to help the car industry. There are also questions about whether the folks driving those clunkers can afford brand-new wheels. "It is just too big of a price tag for the minimal results it would produce," said Senator Ben Nelson of Nebraska, the only Democrat to vote against the act.
Here are the basics:
• Vouchers of either $3,500 or $4,500 will be given to people who trade in an older vehicle to buy a new one.
• The trade-in, or clunker, must be no older than 25 years, have average gas mileage of less than 18 miles per gallon, and have been owned by the seller for at least a year.
• The new car must cost less than $45,000 and get more than 22 mpg. To get the higher voucher, the new vehicle must also average 10 more miles per gallon than the old one.
• Trucks—SUVs, pickups, and minivans—have different rules. An improvement of at least 2 mpg between the old and new vehicles qualifies for $3,500; 5 mpg or more entitles buyers to $4,500.
• There are no income limits on voucher recipients, nor restrictions on where the new cars are made.
+ "Cash for Clunkers" Law Signed by Obama
+ Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
Germany instituted a scrappage program earlier this year, followed by France and Britain. While car sales are down significantly from prerecession 2007 totals, sales in those countries have risen since the subsidies began. There's little question that Detroit could use a similar boost. Americans are on track to buy 9.5 million new vehicles this year, down 40% from 16.1 million in 2007.
Edmunds.com CEO Jeremy Anwyl says, however, that carmakers and buyers alike will be disappointed. He argues that the industry needs help raising sales by 3 million vehicles or more, not 250,000 to 400,000. "The scale is just wrong," he says.
Anwyl urges consumers to read the fine print. The program is not a rebate or a tax credit, though, based on public comments at Edmunds.com, he says many people think so. "Don't get too excited," Anwyl says. "Chances are you're not eligible."
"Cash for Clunkers" Law Signed by Obama
A $1 billion "cash for clunkers " bill was signed into law by President Obama late Wednesday, but the specifics of the plan are still being worked out, according to the U.S. Department of Transportation. The law is designed to get consumers into more fuel-efficient vehicles.
Under the law, consumers can get up to $4,500 toward a new more fuel-efficient car when they trade in an older model with worse gas mileage, under the new system.
The formal name of the program is the Car Allowance Rebate System (CARS). "Under the CARS program, NHTSA [National Highway Traffic Safety Administration] is charged with rules for program implementation in 30 days," according to the U.S. Department of Transportation's Web site. "You may want to contact your local dealer in mid-July."
Consumers can sign up for updates as the program rolls out to car buyers and dealers. The program ends on November 1, 2009. It is designed to stimulate the auto industry and act as an environmental aid, since it is intended to encourage consumers who own an older gas guzzler to purchase or lease a new, fuel-efficient vehicle.
The National Automobile Dealers Association is telling its dealers to wait until the rules are out in July before participating.
According to the U.S. Department of Transportation, the trade-in vehicle must meet these requirements to qualify for the program:
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
The cash-for-clunkers provision was passed as part of a larger $106 billion military spending bill.
Under the law, consumers can get up to $4,500 toward a new more fuel-efficient car when they trade in an older model with worse gas mileage, under the new system.
The formal name of the program is the Car Allowance Rebate System (CARS). "Under the CARS program, NHTSA [National Highway Traffic Safety Administration] is charged with rules for program implementation in 30 days," according to the U.S. Department of Transportation's Web site. "You may want to contact your local dealer in mid-July."
Consumers can sign up for updates as the program rolls out to car buyers and dealers. The program ends on November 1, 2009. It is designed to stimulate the auto industry and act as an environmental aid, since it is intended to encourage consumers who own an older gas guzzler to purchase or lease a new, fuel-efficient vehicle.
The National Automobile Dealers Association is telling its dealers to wait until the rules are out in July before participating.
According to the U.S. Department of Transportation, the trade-in vehicle must meet these requirements to qualify for the program:
- The vehicle must be less than 25 years old on the trade-in date.
- Only the purchase or lease of a new vehicle qualifies.
- Trade-in vehicles must get 18 miles per gallon or less, although the law notes "some very large pickup trucks and cargo vans have different requirements."
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in.
- "You don't need a voucher; dealers will apply a credit at purchase."
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
The cash-for-clunkers provision was passed as part of a larger $106 billion military spending bill.
Tuesday, June 23, 2009
Diesel Fuel Prices Drop Boost U.S. Auto Sales
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.
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.
Sunday, June 21, 2009
J.D. Power 2009 Quality Study: Lexus Top Again
Lexus reclaimed the top spot in J.D. Power and Associates' annual ranking of initial quality, while the Ford, Chevrolet and Toyota brands ranked virtually even in the benchmark survey.
Porsche slipped to second after holding the title for three years in the market research firm's Initial Quality Study, released today. Ford improved to 102 reported problems per 100 vehicles and Chevrolet to 103, just behind Toyota's sixth place score of 101. That put the three top-selling brands in the United States in the same league when it comes to complaints during the first 90 days of ownership.
"There is no statistical difference between a 101 and a 102 or, for that matter, between a 101 and a 103," said David Sargent, J.D. Power's vice president of automotive research, in a presentation to the Automotive Press Association.
Overall industry quality improved to its best level in the study's 23 years, and domestic brands continued to close the gap between their performance and the industry average. That average was 108 reported problems per 100 vehicles, down from 118 in 2008. Owners of domestic brands recorded an average of 112 problems per 100 vehicles. A year earlier, the domestics had 124 reported problems, or six more than the average.
Cadillac rises, Lincoln falls
Cadillac continued its rebound and Lincoln plunged. Cadillac ranked No. 3, up from 10th in 2008 and 25th in 2007. Lincoln fell to 26th, its lowest finish in the study's history. It ranked 15th last year and third the year before.
The nearly equal scores of Ford, Toyota, and Chevrolet indicate they "will be closely bunched together" in three years for J.D. Power's Vehicle Dependability Study, which studies three-year-old models, Sargent said. Ford last year had 112 reported problems per vehicle, Chevrolet 113 and Toyota 104.
The study ranked 37 brands based on problems detected in the first 90 days of ownership of 2009 model-year vehicles.
Toyota Motor took in 10 awards for having the highest-quality vehicles (Toyota, Lexus, Scion) in individual segments. Ford Motor had four, while Honda Motor Co., Nissan Motor Co. and GM had two each.
Cadillac's improvement and Chevrolet's second straight above-average ranking may stem from efforts that have reduced dealer warranty claims 45 percent in the past three years, said Jamie Hresko, GM's vice president for global quality.
"We're going to continue to rid ourselves of recall and warranty, and I think the rest of this stuff will take care of itself," Hresko said.
Cadillac's score was boosted by dramatic improvements in the CTS sedan's second year, Sargent said.
Lexus back on top
Toyota's Lexus brand had 84 problems per 100 vehicles in reclaiming its title. Porsche had 90 and Cadillac, 91.
Hyundai -- which through May had seen U.S. light-vehicle sales decline 7.9 percent, compared with the industry's 36.5 percent drop -- improved from 13th last year to fourth this year. It was the best showing for the Korean brand since its third-place finish in 2006. Honda completed this year's top five, followed by Toyota and Mercedes-Benz in a tie for sixth.
The Ford brand ranked eighth in the study for the second straight year and above the industry average for the third straight.
As for Lincoln's fall to No. 26, Ford Motor will "just work the basic processes that we had," said Bennie Fowler, group vice president for global quality. "I think that they've proved reliable."
Lincoln's plunge was due primarily to problems linked to the launch of the MKS sedan last June, Sargent said.
For the 2009 study, J.D. Power asked more than 80,900 purchasers and lessees 228 questions about their first three months of ownership. Power conducted the study from February through May.
Porsche slipped to second after holding the title for three years in the market research firm's Initial Quality Study, released today. Ford improved to 102 reported problems per 100 vehicles and Chevrolet to 103, just behind Toyota's sixth place score of 101. That put the three top-selling brands in the United States in the same league when it comes to complaints during the first 90 days of ownership.
"There is no statistical difference between a 101 and a 102 or, for that matter, between a 101 and a 103," said David Sargent, J.D. Power's vice president of automotive research, in a presentation to the Automotive Press Association.
Overall industry quality improved to its best level in the study's 23 years, and domestic brands continued to close the gap between their performance and the industry average. That average was 108 reported problems per 100 vehicles, down from 118 in 2008. Owners of domestic brands recorded an average of 112 problems per 100 vehicles. A year earlier, the domestics had 124 reported problems, or six more than the average.
| 2009 IQS Nameplate Ranking | |
| Problems per 100 vehicles | |
| Lexus | 84 |
| Porsche | 90 |
| Cadillac | 91 |
| Hyundai | 95 |
| Honda | 99 |
| Mercedes-Benz | 101 |
| Toyota | 101 |
| Ford | 102 |
| Chevrolet | 103 |
| Suzuki | 103 |
| Infiniti | 106 |
| Mercury | 106 |
| Industry Average | 108 |
| Nissan | 110 |
| Acura | 111 |
| BMW | 112 |
| Kia | 112 |
| Volkswagen | 112 |
| GMC | 116 |
| Buick | 117 |
| Audi | 118 |
| Pontiac | 118 |
| Scion | 118 |
| Volvo | 118 |
| Saturn | 120 |
| Mazda | 123 |
| Lincoln | 129 |
| Subaru | 130 |
| Dodge | 134 |
| Jaguar | 134 |
| Mitsubishi | 135 |
| Chrysler | 136 |
| HUMMER | 136 |
| Jeep | 137 |
| Saab | 138 |
| smart | 138 |
| Land Rover | 150 |
| MINI | 165 |
Cadillac rises, Lincoln falls
Cadillac continued its rebound and Lincoln plunged. Cadillac ranked No. 3, up from 10th in 2008 and 25th in 2007. Lincoln fell to 26th, its lowest finish in the study's history. It ranked 15th last year and third the year before.
The nearly equal scores of Ford, Toyota, and Chevrolet indicate they "will be closely bunched together" in three years for J.D. Power's Vehicle Dependability Study, which studies three-year-old models, Sargent said. Ford last year had 112 reported problems per vehicle, Chevrolet 113 and Toyota 104.
The study ranked 37 brands based on problems detected in the first 90 days of ownership of 2009 model-year vehicles.
Toyota Motor took in 10 awards for having the highest-quality vehicles (Toyota, Lexus, Scion) in individual segments. Ford Motor had four, while Honda Motor Co., Nissan Motor Co. and GM had two each.
Cadillac's improvement and Chevrolet's second straight above-average ranking may stem from efforts that have reduced dealer warranty claims 45 percent in the past three years, said Jamie Hresko, GM's vice president for global quality.
"We're going to continue to rid ourselves of recall and warranty, and I think the rest of this stuff will take care of itself," Hresko said.
Cadillac's score was boosted by dramatic improvements in the CTS sedan's second year, Sargent said.
Lexus back on top
Toyota's Lexus brand had 84 problems per 100 vehicles in reclaiming its title. Porsche had 90 and Cadillac, 91.
Hyundai -- which through May had seen U.S. light-vehicle sales decline 7.9 percent, compared with the industry's 36.5 percent drop -- improved from 13th last year to fourth this year. It was the best showing for the Korean brand since its third-place finish in 2006. Honda completed this year's top five, followed by Toyota and Mercedes-Benz in a tie for sixth.
The Ford brand ranked eighth in the study for the second straight year and above the industry average for the third straight.
As for Lincoln's fall to No. 26, Ford Motor will "just work the basic processes that we had," said Bennie Fowler, group vice president for global quality. "I think that they've proved reliable."
Lincoln's plunge was due primarily to problems linked to the launch of the MKS sedan last June, Sargent said.
For the 2009 study, J.D. Power asked more than 80,900 purchasers and lessees 228 questions about their first three months of ownership. Power conducted the study from February through May.
Nissan to Build EVs, Batteries in U.S. by 2012
Nissan Motor Co. plans to launch production of electric vehicles and their batteries in the United States to tap low-interest loans for green vehicles, the Nikkei business daily said.
The overall investment is estimated at 50 billion yen ($516.4 million) and may rise to 100 billion yen, it said.
Under the plan, the new electric-car assembly lines are to be built at Nissan's plant in Smyrna, Tennessee.
The facility, capable of making 50,000 to 100,000 eco-friendly vehicles a year by 2012, is expected to first produce a small passenger car, it said.
Nissan also intends to construct a production facility for high-capacity lithium ion batteries at the Smyrna site with NEC Corp.
The automaker has applied for funding from the U.S. government under a low-interest-loan program to support the automobile industry.
Nissan will soon receive approval for a loan of more than 100 billion yen, the paper said, citing a source familiar with the matter.
Nissan intends to assemble up to 50,000 electric cars a year in Japan starting in fall 2010, the paper said.
The overall investment is estimated at 50 billion yen ($516.4 million) and may rise to 100 billion yen, it said.
Under the plan, the new electric-car assembly lines are to be built at Nissan's plant in Smyrna, Tennessee.
The facility, capable of making 50,000 to 100,000 eco-friendly vehicles a year by 2012, is expected to first produce a small passenger car, it said.
Nissan also intends to construct a production facility for high-capacity lithium ion batteries at the Smyrna site with NEC Corp.
The automaker has applied for funding from the U.S. government under a low-interest-loan program to support the automobile industry.
Nissan will soon receive approval for a loan of more than 100 billion yen, the paper said, citing a source familiar with the matter.
Nissan intends to assemble up to 50,000 electric cars a year in Japan starting in fall 2010, the paper said.
Monday, June 15, 2009
Cash For Clunkers Car Buying Stimulus Bill
The Consumer Assistance to Recycle and Save and Act (CARS) H.R. 2751, more commonly known as Cash for Clunkers, is a proposed federal program that would encourage consumers to trade in gas-guzzlers for new cars that get better fuel economy. Modeled after several programs that have already been successfully implemented in Europe, similar legislation has already made it through the House of Representatives with a similar bill still under review in the U.S. Senate. The program would offer vouchers for consumers, allowing them to save thousands of dollars on a new-car purchase if trading in an older model and the new vehicle meets improved mpg requirements.
Edmunds.com has put together this Cash for Clunkers FAQ page to track the program as it comes to fruition, and we'll be updating this space regularly as new information becomes available.
Though the legislation hasn't yet been made into law, we've provided some details of the current version of the proposed Cash for Clunkers program passed by the House. The program would offer vouchers that allow consumers to save up to $4,500 on a new-car purchase. There are also various credits, in the form of vouchers, for trucks and work trucks.
Though information from Congress suggests that the program may stimulate anywhere from 500,000 to 1 million new-car purchases, Edmunds.com believes that it will be a struggle to reach 500,000 vehicles, since the bill has become more restrictive in recent iterations .
"A program intended to stimulate new car sales should target people in the market for a car, but the program does not," asserted 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."
The proposed bill still needs to pass through the Senate (which is still trying to pass its own version of the bill), but the president has already expressed his approval of recent drafts. The House Committee on Energy and Commerce has put together a fact sheet (see below) to detail the key elements of the proposed legislation. We've followed that with an FAQ that we will continue to update as details emerge.
Committee on Energy and Commerce Fact Sheet: Cash for Clunkers
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year and provide for approximately 1 million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles-per-gallon figures below refer to EPA "window sticker" values.
Passenger car or minivan: The old vehicle must get 18 mpg or less city/highway combined. New passenger cars or minivans with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
Light-duty truck: The old vehicle must get 18 mpg or less city/highway combined. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
Large light-duty truck: New large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
Work truck: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pickup truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class' market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000-8,500 pounds.
s.
FAQ
How much are the vouchers worth? This will depend on the car you are turning in and the type of car you buy. In general, if the improvement in fuel economy between your old car and the car you buy is 10 mpg (combined highway mileage according to the EPA), the maximum credit will be $4,500. The requirement for improvement in fuel economy for trucks is lower. For specifics, see the above chart.
How old does my car need to be? Eligible vehicles must be manufactured in model year 1984 or later. For work trucks however, any model built before 2002 is eligible. We anticipate that most cars traded in will likely be model-year 2000 and older.
What types of vehicles qualify? In general, this bill aims to take polluting gas-guzzlers off the road. The vehicle must have a federal combined city/highway fuel economy of 18 or less miles per gallon. This means that many American-made cars and trucks will be eligible for vouchers toward the purchase of new vehicles. The categories of vehicles that will qualify fall into four classes: passenger cars, light-duty trucks, large light-duty trucks (6,000-8,500 pounds) and work trucks (8,500-10,000 pounds).
What kind of mpg will the new vehicle need to get? Different levels of improvement are required for each type of vehicle. In passenger cars, if mileage is improved by 10 mpg, the $4,500 voucher is awarded; if fuel economy is improved by only 4 mpg, the $3,500 voucher is awarded. The mileage improvement levels and voucher amounts for the different classes of trucks are listed in the chart above.
The proposal mentions a one-year time limit. Is there a cap on the number of vehicles? The bill is written to provide vouchers for 1 million purchases. Since there is a one-year limit, consumers who are interested in taking advantage of this program should track the progress of the bill and apply for a voucher as soon as funds become available. There is a special provision in the bill that requires that no more than 7.5 percent of the funds for the program shall be used for work trucks.
How long do I need to have owned the vehicle I'm trading in? The vehicle must be insured and registered in your name and in use for at least one year.
If I have an older car that is in good running condition, or a classic car, is it mandatory for me to turn it in? No. This program is completely voluntary.
What happens to the car that you trade in? The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.
How will this affect used-car values? Since the "clunkers" will be taken off the road, there will be fewer older vehicles in the marketplace. However, our analysts don't expect this program to drastically affect used-car values.
Where do I find the mpg numbers to see if my vehicle qualifies for the Cash for Clunkers vouchers? The EPA's combined mileage will be used. This is a combination of the highway and city mileage for vehicles. Models prior to 2008 will use the converted MPG numbers which take into account the new EPA testing methods. This information can be found on the window sticker of the car or at fueleconomy.gov.
Although many vehicles will qualify for the program, it may not always make financial sense to trade it in. We've compiled a list of eligible trade-in vehicles that average 18 mpg or less, and have a value of less than $4,500.
What kind of vehicles qualify as light-duty and large light-duty trucks? Trucks qualify based on class and vehicle weight. For example, the Ford F-150 would be considered a light-duty truck. If you are considering taking advantage of this program, look up your vehicle on Edmunds.com and determine its weight. If it is between 6,000 and 8,500 pounds and gets less than 15 mpg, you have a large light-duty truck and will need to buy a truck that improves your fuel economy by 1 mpg for a $3,500 voucher. If you select a truck that improves fuel economy by at least 2 mpg, you will qualify for the $4,500 voucher. A work truck is classified as being between 8,500 and 10,000 pounds. The only requirement for this class is that the trade-in vehicle needs to have been built before model-year 2002.
When is the program expected to go into effect, and will it be retroactive? Passage of this bill could come before the end of July and the vouchers would be available shortly thereafter. It will not be retroactive to any vehicle purchase made before the bill is passed. The current House legislation was folded into a broader energy package and was passed on June 9, 2009. Now it will go to the Senate, where it undoubtedly will go through further changes.
Where will the money for vouchers come from? Since President Obama wants this to move as quickly as possible, it is likely that the money will come from the already approved Troubled Asset Relief Program (TARP) funds and the economic stimulus package.
Does the voucher augment or replace what the dealer would give me for my trade-in? The money you receive from the Cash for Clunkers program will act as your trade in value. It cannot be combined with the dealer's trade in offer. This program is primarily designed to inflate the value of older vehicles worth less than $4,500.
Is there a limit on the price of the vehicle purchased with Cash for Clunkers vouchers? Vehicles purchased with the vouchers must have an MSRP of $45,000 or less.
How will the program be tracked? Via dealers or the DMV? Little information has been made available on this aspect of the bill. It is likely, though, that the Vehicle Identification Number (VIN) will be the prime tool in verifying information on the trade-in vehicle such as model year, engine size and the corresponding EPA-rated fuel-economy levels. The government has numerous databases with information on cars that are tracked through their VIN.
How will you get the money toward the trade-in? An electronic transfer from the government to the dealer will be issued once a vehicle is determined to be qualified for the Cash for Clunkers program. The voucher amount would be credited as all or part of the down payment on a qualifying new car.
Will it apply to used-car purchases? The final details of the bill are not yet available. However, it has always been assumed that the vouchers will only apply to new car purchases.
What if you're leasing a vehicle and wish to trade it in? Again, final details are not available. But it is unlikely that consumers who are currently leasing vehicles will qualify for this program.
What if you wish to lease the new vehicle? In this case, it appears likely that the voucher could be applied to a leased vehicle as a "capitalized cost adjustment." This would lower the price of the vehicle and thus reduce the monthly payment of a lease. In order for a lease to qualify, the term must be for no less than five years. However, we don't recommend getting into a five-year lease because of the additional costs.
I hear there is another version of the bill, how does this version differ? Senate Bill S. 1200, sponsored by Senator Dianne Feinstein, is a more environmentally focused alternative to the House version. The Senate version has a staggered voucher structure that increases the voucher's value based on the mpg improvement. The Senate bill also lowers the mpg requirement for cars and trucks, but raises the mpg limit on the new vehicle.
Edmunds.com has put together this Cash for Clunkers FAQ page to track the program as it comes to fruition, and we'll be updating this space regularly as new information becomes available.
Though the legislation hasn't yet been made into law, we've provided some details of the current version of the proposed Cash for Clunkers program passed by the House. The program would offer vouchers that allow consumers to save up to $4,500 on a new-car purchase. There are also various credits, in the form of vouchers, for trucks and work trucks.
Though information from Congress suggests that the program may stimulate anywhere from 500,000 to 1 million new-car purchases, Edmunds.com believes that it will be a struggle to reach 500,000 vehicles, since the bill has become more restrictive in recent iterations .
"A program intended to stimulate new car sales should target people in the market for a car, but the program does not," asserted 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."
The proposed bill still needs to pass through the Senate (which is still trying to pass its own version of the bill), but the president has already expressed his approval of recent drafts. The House Committee on Energy and Commerce has put together a fact sheet (see below) to detail the key elements of the proposed legislation. We've followed that with an FAQ that we will continue to update as details emerge.
Committee on Energy and Commerce Fact Sheet: Cash for Clunkers
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year and provide for approximately 1 million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles-per-gallon figures below refer to EPA "window sticker" values.
Passenger car or minivan: The old vehicle must get 18 mpg or less city/highway combined. New passenger cars or minivans with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
Light-duty truck: The old vehicle must get 18 mpg or less city/highway combined. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
Large light-duty truck: New large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
Work truck: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pickup truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class' market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000-8,500 pounds.
s.
| Summary of Cash for Clunkers Agreement | |||
| Minimum Fuel Economy for New Vehicle | $3,500 Voucher | $4,500 Voucher | |
| Passenger Car or minivan | 22 mpg (EPA combined) | Mileage improvement of at least 4 mpg | Mileage improvement of at least 10 mpg |
| Light-duty truck | 18 mpg (EPA combined) | Mileage improvement of at least 2 mpg | Mileage improvement of at least 5 mpg |
| Large light-duty truck (6,000-8,500 pounds) | 15 mpg (EPA combined) | Mileage improvement of at least 1 mpg or trade-in of a work truck | Mileage improvement of at least 2 mpg |
| Work truck (8,500-10,000 pounds) | Trade-in must be at least pre-2002 | ||
FAQ
How much are the vouchers worth? This will depend on the car you are turning in and the type of car you buy. In general, if the improvement in fuel economy between your old car and the car you buy is 10 mpg (combined highway mileage according to the EPA), the maximum credit will be $4,500. The requirement for improvement in fuel economy for trucks is lower. For specifics, see the above chart.
How old does my car need to be? Eligible vehicles must be manufactured in model year 1984 or later. For work trucks however, any model built before 2002 is eligible. We anticipate that most cars traded in will likely be model-year 2000 and older.
What types of vehicles qualify? In general, this bill aims to take polluting gas-guzzlers off the road. The vehicle must have a federal combined city/highway fuel economy of 18 or less miles per gallon. This means that many American-made cars and trucks will be eligible for vouchers toward the purchase of new vehicles. The categories of vehicles that will qualify fall into four classes: passenger cars, light-duty trucks, large light-duty trucks (6,000-8,500 pounds) and work trucks (8,500-10,000 pounds).
What kind of mpg will the new vehicle need to get? Different levels of improvement are required for each type of vehicle. In passenger cars, if mileage is improved by 10 mpg, the $4,500 voucher is awarded; if fuel economy is improved by only 4 mpg, the $3,500 voucher is awarded. The mileage improvement levels and voucher amounts for the different classes of trucks are listed in the chart above.
The proposal mentions a one-year time limit. Is there a cap on the number of vehicles? The bill is written to provide vouchers for 1 million purchases. Since there is a one-year limit, consumers who are interested in taking advantage of this program should track the progress of the bill and apply for a voucher as soon as funds become available. There is a special provision in the bill that requires that no more than 7.5 percent of the funds for the program shall be used for work trucks.
How long do I need to have owned the vehicle I'm trading in? The vehicle must be insured and registered in your name and in use for at least one year.
If I have an older car that is in good running condition, or a classic car, is it mandatory for me to turn it in? No. This program is completely voluntary.
What happens to the car that you trade in? The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.
How will this affect used-car values? Since the "clunkers" will be taken off the road, there will be fewer older vehicles in the marketplace. However, our analysts don't expect this program to drastically affect used-car values.
Where do I find the mpg numbers to see if my vehicle qualifies for the Cash for Clunkers vouchers? The EPA's combined mileage will be used. This is a combination of the highway and city mileage for vehicles. Models prior to 2008 will use the converted MPG numbers which take into account the new EPA testing methods. This information can be found on the window sticker of the car or at fueleconomy.gov.
Although many vehicles will qualify for the program, it may not always make financial sense to trade it in. We've compiled a list of eligible trade-in vehicles that average 18 mpg or less, and have a value of less than $4,500.
YEAR | MAKE | MODEL |
|---|---|---|
1996 | Honda | Passport |
1997 | Lincoln | Continental |
1998 | Chevrolet | Silverado |
1995 | Audi | A6 |
1996 | Toyota | Land Cruiser |
What kind of vehicles qualify as light-duty and large light-duty trucks? Trucks qualify based on class and vehicle weight. For example, the Ford F-150 would be considered a light-duty truck. If you are considering taking advantage of this program, look up your vehicle on Edmunds.com and determine its weight. If it is between 6,000 and 8,500 pounds and gets less than 15 mpg, you have a large light-duty truck and will need to buy a truck that improves your fuel economy by 1 mpg for a $3,500 voucher. If you select a truck that improves fuel economy by at least 2 mpg, you will qualify for the $4,500 voucher. A work truck is classified as being between 8,500 and 10,000 pounds. The only requirement for this class is that the trade-in vehicle needs to have been built before model-year 2002.
When is the program expected to go into effect, and will it be retroactive? Passage of this bill could come before the end of July and the vouchers would be available shortly thereafter. It will not be retroactive to any vehicle purchase made before the bill is passed. The current House legislation was folded into a broader energy package and was passed on June 9, 2009. Now it will go to the Senate, where it undoubtedly will go through further changes.
Where will the money for vouchers come from? Since President Obama wants this to move as quickly as possible, it is likely that the money will come from the already approved Troubled Asset Relief Program (TARP) funds and the economic stimulus package.
Does the voucher augment or replace what the dealer would give me for my trade-in? The money you receive from the Cash for Clunkers program will act as your trade in value. It cannot be combined with the dealer's trade in offer. This program is primarily designed to inflate the value of older vehicles worth less than $4,500.
Is there a limit on the price of the vehicle purchased with Cash for Clunkers vouchers? Vehicles purchased with the vouchers must have an MSRP of $45,000 or less.
How will the program be tracked? Via dealers or the DMV? Little information has been made available on this aspect of the bill. It is likely, though, that the Vehicle Identification Number (VIN) will be the prime tool in verifying information on the trade-in vehicle such as model year, engine size and the corresponding EPA-rated fuel-economy levels. The government has numerous databases with information on cars that are tracked through their VIN.
How will you get the money toward the trade-in? An electronic transfer from the government to the dealer will be issued once a vehicle is determined to be qualified for the Cash for Clunkers program. The voucher amount would be credited as all or part of the down payment on a qualifying new car.
Will it apply to used-car purchases? The final details of the bill are not yet available. However, it has always been assumed that the vouchers will only apply to new car purchases.
What if you're leasing a vehicle and wish to trade it in? Again, final details are not available. But it is unlikely that consumers who are currently leasing vehicles will qualify for this program.
What if you wish to lease the new vehicle? In this case, it appears likely that the voucher could be applied to a leased vehicle as a "capitalized cost adjustment." This would lower the price of the vehicle and thus reduce the monthly payment of a lease. In order for a lease to qualify, the term must be for no less than five years. However, we don't recommend getting into a five-year lease because of the additional costs.
I hear there is another version of the bill, how does this version differ? Senate Bill S. 1200, sponsored by Senator Dianne Feinstein, is a more environmentally focused alternative to the House version. The Senate version has a staggered voucher structure that increases the voucher's value based on the mpg improvement. The Senate bill also lowers the mpg requirement for cars and trucks, but raises the mpg limit on the new vehicle.
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
Sunday, June 14, 2009
Hybrid Tax Credit Available for Colorado Looming
As we near the last two state quarters available for existing tax credits, perhaps it’s not a bad idea to examine what hybrid tax credit qualifications are available.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
Energy Tax Credits by 2009 Stimulus Plan
One way the government hopes its 2009 economic stimulus plan will help jumpstart the economy is by investing billions of dollars in industries that support energy efficiency - everything from electric car battery technology to wind turbines to modernizing the country's power grid.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
2010 BMW 5 Series (535i) For Sales in New Jersey
Price: $58,275
Year: 2010
Make: BMW
Model: 5 Series
Trim: 535i
Body Description: 4 Door Sedan
Exterior: Black Sapphire Metallic
Interior: Graphite Cloth Captain Chairs
Stock #: 28940
VIN: WBANW1C5XAC164340
Car Features
* • Anti-lock Brakes
* • Bucket Seats
* • Center Arm Rest/console
* • Cruise Control
* • Cylinders: 6
* • Daytime Running Lights
* • Fog Lights
* • Map Light
* • Passenger Side Air Bag
* • Power Door Locks
* • Power Windows
* • Security Features
* • Steering Wheel Audio Controls
* • Tilt Steering Wheel
* • Trip Computer
Dealership info:
Open Road BMW of Edison
731 Rt. 1
Edison, NJ 08817
888-866-0906
Year: 2010
Make: BMW
Model: 5 Series
Trim: 535i
Body Description: 4 Door Sedan
Exterior: Black Sapphire Metallic
Interior: Graphite Cloth Captain Chairs
Stock #: 28940
VIN: WBANW1C5XAC164340
Car Features
* • Anti-lock Brakes
* • Bucket Seats
* • Center Arm Rest/console
* • Cruise Control
* • Cylinders: 6
* • Daytime Running Lights
* • Fog Lights
* • Map Light
* • Passenger Side Air Bag
* • Power Door Locks
* • Power Windows
* • Security Features
* • Steering Wheel Audio Controls
* • Tilt Steering Wheel
* • Trip Computer
Dealership info:
Open Road BMW of Edison
731 Rt. 1
Edison, NJ 08817
888-866-0906
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.
Fiat and Chrysler Deal Completed at June 10.
Today,Chrysler says Fiat takeover complete.The move allows the U.S. automaker to emerge from bankruptcy six weeks after filing for Chapter 11 protection, and again puts the company in foreign hands.
For the second time in a decade, Chrysler finds itself in foreign hands.
The embattled automaker said this morning that it had completed its deal to be acquired by Fiat, forming a new company run by the Italian automaker and allowing it to emerge from bankruptcy.
The step came just hours after the Supreme Court cleared the last obstacle to such a deal, issuing late Tuesday a two-page order refusing to stay the sale over objections of some creditors.
Fiat will take a 20% stake in the new Chrysler and Fiat Chief Executive Sergio Marchionne will serve as the top official at Chrysler. Chrysler's chairman will be Robert Kidder, who was selected for the role last month.
The largest stakeholder in the company will be the United Auto Workers union, which is receiving a 55% share in exchange for about $6 billion owed to a retiree healthcare trust. The U.S. government, which has lent Chrysler $8.6 billion to date and will contribute more in exit financing, takes an 8% share, while Canada, another lender to the automaker, gets 2%.
The company will have a nine-member board, with four positions chosen by the U.S. government, three by Fiat, and one each by the Canadian government and the UAW.
Over time, Fiat will have the option to increase its stake to 35% or more in the company.
It, however, is not contributing any cash to the deal. Instead, Fiat has agreed to give Chrysler access to its automotive technology, particularly small, fuel-efficient engines.
In closing the deal just six weeks after Chrysler filed for Chapter 11 protection, the two automakers put an end to a painful period for the smallest of the nation's automakers, which only two years ago was sold by German automaker Daimler after that alliance proved unworkable.
"This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole," Marchionne said.
That uncertainty now hovers over General Motors Corp., which followed Chrysler into bankruptcy by filing a Chapter 11 petition on June 1. GM is a far larger, more complex company with a larger international reach, and its bankruptcy proceeding is expected to take twice as long as those of Chrysler -- if there are no unexpected hitches.
Chrysler's largest potential hold-up, a temporary stay on the sale placed by Supreme Court Justice Ruth Bader Ginsburg on Monday, was whisked away a day later.
Although a group of Indiana pension funds had argued that the mechanics of the deal, which had creditors sharing the $2-billion sale price of Chrysler for $6.9 in notes they held in the company, was unfair and did not respect traditional rules of priority in such cases.
In refusing to stay the sale on Tuesday, the high court did not consider the merits of that argument. Instead, it seemed to bend to concerns of expediency, in part perhaps because Fiat held an option to exit the deal if it were not closed by June 15 and because the federal government had argued to a lower court that Chrysler was losing $100 million of taxpayer money every day the sale was held up.
With the sale now completed, Chrysler can breathe a bit easier. But its new leaders have their work cut out for them.
In a tough automotive market, Chrysler's sales have fallen faster than any automaker -- down 46% through the first five months of the year.
It has excess capacity and essentially no vehicles in the compact and small classes. In short order, it must radically reshape its production, while determining how to incorporate into its line-up vehicles from Fiat, which hasn't sold cars in the U.S. in two decades.
It has not yet been determined whether Chrysler will sell those cars as Fiats, or rebadge them as Chrysler, Jeep or Dodge brand cars. Also in question is whether Fiat will bring its Alfa Romeo brand of luxury vehicles to the U.S.
It also must work to integrate a new finance company, GMAC, into its distribution channel because its former finance arm, Chrysler Financial, will no longer provide loans to dealers or customers.
To help with the transition, Marchionne will keep Jim Press, former Chrysler vice chairman and president. His new title is deputy chief executive and special advisor. But Chrysler's previous chief executive, Bob Nardelli, and its other vice chairman, Tom LaSorda, depart.
Press, among other things, was responsible for the automaker's sales and service operations. As such, he played a critical role in Chrysler's decision to eliminate 789 of its 3,200 dealers, a step that was made final on Tuesday by the bankruptcy judge overseeing the automaker's case.
News of the deal's completion elicited quick praise from some lawmakers known for their support of the auto industry.
"Chrysler is a company that can succeed and compete with anyone," said Rep. John Dingell (D-Mich.). "I am glad company executives can now focus on making cars and the people who work the assembly line can get back to building those great cars."
For the second time in a decade, Chrysler finds itself in foreign hands.
The embattled automaker said this morning that it had completed its deal to be acquired by Fiat, forming a new company run by the Italian automaker and allowing it to emerge from bankruptcy.
The step came just hours after the Supreme Court cleared the last obstacle to such a deal, issuing late Tuesday a two-page order refusing to stay the sale over objections of some creditors.
Fiat will take a 20% stake in the new Chrysler and Fiat Chief Executive Sergio Marchionne will serve as the top official at Chrysler. Chrysler's chairman will be Robert Kidder, who was selected for the role last month.
The largest stakeholder in the company will be the United Auto Workers union, which is receiving a 55% share in exchange for about $6 billion owed to a retiree healthcare trust. The U.S. government, which has lent Chrysler $8.6 billion to date and will contribute more in exit financing, takes an 8% share, while Canada, another lender to the automaker, gets 2%.
The company will have a nine-member board, with four positions chosen by the U.S. government, three by Fiat, and one each by the Canadian government and the UAW.
Over time, Fiat will have the option to increase its stake to 35% or more in the company.
It, however, is not contributing any cash to the deal. Instead, Fiat has agreed to give Chrysler access to its automotive technology, particularly small, fuel-efficient engines.
In closing the deal just six weeks after Chrysler filed for Chapter 11 protection, the two automakers put an end to a painful period for the smallest of the nation's automakers, which only two years ago was sold by German automaker Daimler after that alliance proved unworkable.
"This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole," Marchionne said.
That uncertainty now hovers over General Motors Corp., which followed Chrysler into bankruptcy by filing a Chapter 11 petition on June 1. GM is a far larger, more complex company with a larger international reach, and its bankruptcy proceeding is expected to take twice as long as those of Chrysler -- if there are no unexpected hitches.
Chrysler's largest potential hold-up, a temporary stay on the sale placed by Supreme Court Justice Ruth Bader Ginsburg on Monday, was whisked away a day later.
Although a group of Indiana pension funds had argued that the mechanics of the deal, which had creditors sharing the $2-billion sale price of Chrysler for $6.9 in notes they held in the company, was unfair and did not respect traditional rules of priority in such cases.
In refusing to stay the sale on Tuesday, the high court did not consider the merits of that argument. Instead, it seemed to bend to concerns of expediency, in part perhaps because Fiat held an option to exit the deal if it were not closed by June 15 and because the federal government had argued to a lower court that Chrysler was losing $100 million of taxpayer money every day the sale was held up.
With the sale now completed, Chrysler can breathe a bit easier. But its new leaders have their work cut out for them.
In a tough automotive market, Chrysler's sales have fallen faster than any automaker -- down 46% through the first five months of the year.
It has excess capacity and essentially no vehicles in the compact and small classes. In short order, it must radically reshape its production, while determining how to incorporate into its line-up vehicles from Fiat, which hasn't sold cars in the U.S. in two decades.
It has not yet been determined whether Chrysler will sell those cars as Fiats, or rebadge them as Chrysler, Jeep or Dodge brand cars. Also in question is whether Fiat will bring its Alfa Romeo brand of luxury vehicles to the U.S.
It also must work to integrate a new finance company, GMAC, into its distribution channel because its former finance arm, Chrysler Financial, will no longer provide loans to dealers or customers.
To help with the transition, Marchionne will keep Jim Press, former Chrysler vice chairman and president. His new title is deputy chief executive and special advisor. But Chrysler's previous chief executive, Bob Nardelli, and its other vice chairman, Tom LaSorda, depart.
Press, among other things, was responsible for the automaker's sales and service operations. As such, he played a critical role in Chrysler's decision to eliminate 789 of its 3,200 dealers, a step that was made final on Tuesday by the bankruptcy judge overseeing the automaker's case.
News of the deal's completion elicited quick praise from some lawmakers known for their support of the auto industry.
"Chrysler is a company that can succeed and compete with anyone," said Rep. John Dingell (D-Mich.). "I am glad company executives can now focus on making cars and the people who work the assembly line can get back to building those great cars."
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
First Hybrid Truck added to Forgotten Harvest Fleet
Forgotten Harvest Receives New Hybrid Truck to Fight Hunger in Metro Detroit - Susan Goodell, executive director of Forgotten Harvest (second from left) accepts keys to a new 2009 Freightliner M2 Hybrid Class 7 diesel-electric truck from Klaus Entenmann, president and CEO of Daimler Financial Services (third from left), Chris Patterson, retired president and CEO, Daimler Trucks North America (right) and Ron Ricci, president of Johnson Refrigerated Truck Bodies today.
Forgotten Harvest, Metro Detroit's only mobile food rescue organization, is adding this first hybrid-powered truck into its 20 vehicle fleet and it will enable Forgotten Harvest to rescue 850,000 additional pounds of fresh food annually at a 30-percent fuel savings. The new truck is donated by Daimler Financial Services, Daimler Trucks North America and Johnson Refrigerated Truck Bodies.
Donation from Daimler's U.S. truck, financial services divisions and supplier will increase organization's capacity by 850,000 additional pounds of food annually while reducing fuel costs by 30 percent.
Forgotten Harvest, Metro Detroit's only mobile food rescue organization, today took delivery of its first hybrid-powered truck. The Class 7 Freightliner, donated by Daimler Trucks North America, Daimler Financial Services and Johnson Refrigerated Truck Bodies, will enable the organization to rescue 850,000 additional pounds of fresh food on an annual basis at a 30 percent fuel savings.
Susan Goodell, Executive Director of Forgotten Harvest, was presented the keys to the 2009 M2e Hybrid Freightliner diesel-electric truck by Klaus Entenmann, President and CEO of Daimler Financial Services, and Chris Patterson, recently retired President and CEO of Daimler Trucks North America, at Forgotten Harvest's Metro Detroit facility. Ron Ricci, President of Johnson Refrigerated Truck Bodies of Rice Lake, WI, donated the 20 -foot fiberglass refrigerated truck body with ElectriMax, all-electric refrigeration that will keep the food fresh during deliveries to homeless shelters and social service agencies that feed the hungry throughout Metro Detroit.
"This generous donation by our friends at Daimler Financial, Daimler Trucks and Johnson Refrigerated Truck Bodies is a leap forward in advancing our mission of reducing hunger and waste," Goodell said. "It will not only improve our operating efficiency by keeping fuel costs down, it will also allow us to direct more donated dollars to distributing food in a way that protects the environment."
The 31,000-pound Class 7 truck is the fifth truck donated by Daimler Financial Services and Daimler Trucks North America and aftermarket "body builders" in the past four years, bringing Forgotten Harvest's growing fleet to 21 vehicles.
Like a hybrid car, the M2e Hybrid Freightliner performs best with consistent stop-and-go applications. Launch and acceleration are aided by the 60hp electric motor, then with increased demand from the throttle, it blends combined diesel and electric power as needed. During braking, the braking power restores the battery charge. The hybrid system has been proven to increase brake life by over 100% in urban delivery service.
Combined with the industry's most thermal efficient truck body and all-electric refrigeration solution by Johnson Refrigerated Truck Bodies, the new hybrid truck will contribute a 40 percent increase in fuel efficiency over a standard powertrain Class 7 truck and body with traditional diesel-powered refrigeration.
"There is a tremendous need to feed the hungry all over the United States, but especially here in Michigan where the economy has taken its toll on those most in need," said Entenmann. "
Patterson agreed, saying: "At Daimler, we welcome the opportunity to be able to contribute to the extraordinary work being done on a daily basis by Forgotten Harvest."
In 2008, Forgotten Harvest rescued and delivered 9.5 million pounds of prepared and perishable food to emergency food providers across metro Detroit. This year, due to the staggering increase of people seeking food assistance, the organization is on target to distribute more than 12 million pounds. The food, which is donated by grocers, wholesalers, farmers and other food providers, is delivered same day and free of charge to soup kitchens, shelters and pantries in the tri-county area.
About Forgotten Harvest
Forgotten Harvest was formed in 1990 to fight two problems: hunger and waste. Forgotten Harvest will rescue more than 12 million pounds of food this year by collecting surplus prepared and perishable food from a variety of sources, including grocery stores, fruit and vegetable markets, restaurants, caterers, dairies, farmers, wholesale food distributors, and other Health Department-approved sources. This donated food, which would otherwise go to waste, is delivered absolutely free of charge to 150-plus emergency food providers in the metro Detroit area. The individuals and families served are as diverse as the community's residents - young and old, from all races and faiths. The common bond uniting them with each other and with Forgotten Harvest is hunger. Visit www.forgottenharvest.org
About Daimler Financial Services
Daimler Financial Services (DCFS USA LLC), headquartered in Farmington Hills, Mich., provides brand-specific financing for Mercedes-Benz automotive dealers' inventories and their retail customers, and conducts business in the United States luxury car market as Mercedes-Benz Financial. In the U.S. trucking industry, Daimler Financial Services Americas conducts business as Daimler Truck Financial and finances Daimler commercial vehicles branded Freightliner, Sterling and Western Star for dealers and their customers in the fleet, vocational, municipal and owner/operator segments. Daimler Financial Services Americas serves as the headquarters for operations in the United States, Canada, Mexico, Argentina and Brazil, and has approximately 1,600 employees. Daimler Financial Services Americas is a company of the Daimler Financial Services Group, headquartered in Berlin, Germany, which operates in 40 countries with an employee base of close to 6,800. Daimler Financial Services is one of the leading financial services organizations worldwide. For more information visit www.daimler-financialservices.com/na
About Freightliner Trucks
Freightliner Trucks is a division of Daimler Trucks North America LLC, headquartered in Portland, Ore., and is the leading heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 4-8 vehicles and is a Daimler company, the world's leading commercial vehicle manufacturer. For more information, call or visit your nearby Freightliner Trucks dealership or go to www.FreightlinerTrucks.com
About Johnson Refrigerated Truck Bodies
Johnson Refrigerated Truck Bodies is recognized as the industry leader in refrigerated transport. With headquarters in Rice Lake, Wisconsin, Johnson is the innovator and manufacturer of molded fiberglass refrigerated truck bodies and specialized trailers that range from 8 to 36 feet in length. Johnson has a reputation of quality, durability, and innovative all-electric refrigeration solutions that are designed for many years of maintenance-free delivery. In business since 1932, Johnson Refrigerated Truck Bodies is a CARLISLE Company. For more information please call 800-922-8360 or visit www.johnsontruckbodies.com.
Forgotten Harvest, Metro Detroit's only mobile food rescue organization, is adding this first hybrid-powered truck into its 20 vehicle fleet and it will enable Forgotten Harvest to rescue 850,000 additional pounds of fresh food annually at a 30-percent fuel savings. The new truck is donated by Daimler Financial Services, Daimler Trucks North America and Johnson Refrigerated Truck Bodies.
Donation from Daimler's U.S. truck, financial services divisions and supplier will increase organization's capacity by 850,000 additional pounds of food annually while reducing fuel costs by 30 percent.
Forgotten Harvest, Metro Detroit's only mobile food rescue organization, today took delivery of its first hybrid-powered truck. The Class 7 Freightliner, donated by Daimler Trucks North America, Daimler Financial Services and Johnson Refrigerated Truck Bodies, will enable the organization to rescue 850,000 additional pounds of fresh food on an annual basis at a 30 percent fuel savings.
Susan Goodell, Executive Director of Forgotten Harvest, was presented the keys to the 2009 M2e Hybrid Freightliner diesel-electric truck by Klaus Entenmann, President and CEO of Daimler Financial Services, and Chris Patterson, recently retired President and CEO of Daimler Trucks North America, at Forgotten Harvest's Metro Detroit facility. Ron Ricci, President of Johnson Refrigerated Truck Bodies of Rice Lake, WI, donated the 20 -foot fiberglass refrigerated truck body with ElectriMax, all-electric refrigeration that will keep the food fresh during deliveries to homeless shelters and social service agencies that feed the hungry throughout Metro Detroit.
"This generous donation by our friends at Daimler Financial, Daimler Trucks and Johnson Refrigerated Truck Bodies is a leap forward in advancing our mission of reducing hunger and waste," Goodell said. "It will not only improve our operating efficiency by keeping fuel costs down, it will also allow us to direct more donated dollars to distributing food in a way that protects the environment."
The 31,000-pound Class 7 truck is the fifth truck donated by Daimler Financial Services and Daimler Trucks North America and aftermarket "body builders" in the past four years, bringing Forgotten Harvest's growing fleet to 21 vehicles.
Like a hybrid car, the M2e Hybrid Freightliner performs best with consistent stop-and-go applications. Launch and acceleration are aided by the 60hp electric motor, then with increased demand from the throttle, it blends combined diesel and electric power as needed. During braking, the braking power restores the battery charge. The hybrid system has been proven to increase brake life by over 100% in urban delivery service.
Combined with the industry's most thermal efficient truck body and all-electric refrigeration solution by Johnson Refrigerated Truck Bodies, the new hybrid truck will contribute a 40 percent increase in fuel efficiency over a standard powertrain Class 7 truck and body with traditional diesel-powered refrigeration.
"There is a tremendous need to feed the hungry all over the United States, but especially here in Michigan where the economy has taken its toll on those most in need," said Entenmann. "
Patterson agreed, saying: "At Daimler, we welcome the opportunity to be able to contribute to the extraordinary work being done on a daily basis by Forgotten Harvest."
In 2008, Forgotten Harvest rescued and delivered 9.5 million pounds of prepared and perishable food to emergency food providers across metro Detroit. This year, due to the staggering increase of people seeking food assistance, the organization is on target to distribute more than 12 million pounds. The food, which is donated by grocers, wholesalers, farmers and other food providers, is delivered same day and free of charge to soup kitchens, shelters and pantries in the tri-county area.
About Forgotten Harvest
Forgotten Harvest was formed in 1990 to fight two problems: hunger and waste. Forgotten Harvest will rescue more than 12 million pounds of food this year by collecting surplus prepared and perishable food from a variety of sources, including grocery stores, fruit and vegetable markets, restaurants, caterers, dairies, farmers, wholesale food distributors, and other Health Department-approved sources. This donated food, which would otherwise go to waste, is delivered absolutely free of charge to 150-plus emergency food providers in the metro Detroit area. The individuals and families served are as diverse as the community's residents - young and old, from all races and faiths. The common bond uniting them with each other and with Forgotten Harvest is hunger. Visit www.forgottenharvest.org
About Daimler Financial Services
Daimler Financial Services (DCFS USA LLC), headquartered in Farmington Hills, Mich., provides brand-specific financing for Mercedes-Benz automotive dealers' inventories and their retail customers, and conducts business in the United States luxury car market as Mercedes-Benz Financial. In the U.S. trucking industry, Daimler Financial Services Americas conducts business as Daimler Truck Financial and finances Daimler commercial vehicles branded Freightliner, Sterling and Western Star for dealers and their customers in the fleet, vocational, municipal and owner/operator segments. Daimler Financial Services Americas serves as the headquarters for operations in the United States, Canada, Mexico, Argentina and Brazil, and has approximately 1,600 employees. Daimler Financial Services Americas is a company of the Daimler Financial Services Group, headquartered in Berlin, Germany, which operates in 40 countries with an employee base of close to 6,800. Daimler Financial Services is one of the leading financial services organizations worldwide. For more information visit www.daimler-financialservices.com/na
About Freightliner Trucks
Freightliner Trucks is a division of Daimler Trucks North America LLC, headquartered in Portland, Ore., and is the leading heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 4-8 vehicles and is a Daimler company, the world's leading commercial vehicle manufacturer. For more information, call or visit your nearby Freightliner Trucks dealership or go to www.FreightlinerTrucks.com
About Johnson Refrigerated Truck Bodies
Johnson Refrigerated Truck Bodies is recognized as the industry leader in refrigerated transport. With headquarters in Rice Lake, Wisconsin, Johnson is the innovator and manufacturer of molded fiberglass refrigerated truck bodies and specialized trailers that range from 8 to 36 feet in length. Johnson has a reputation of quality, durability, and innovative all-electric refrigeration solutions that are designed for many years of maintenance-free delivery. In business since 1932, Johnson Refrigerated Truck Bodies is a CARLISLE Company. For more information please call 800-922-8360 or visit www.johnsontruckbodies.com.
Sunday, June 7, 2009
2010 Toyota Prius, Would It Be U.S. Top Model?
Memo to the beleaguered U.S. car industry: As the recession eases, torment from Toyota may increase.
Designers of the Prius, the curiously shaped hybrid that since 1997 has allowed up-to-the-minute Americans to advertise their eco-correctness, are going after the Average Joe.
The third-generation Prius is not just for "some special people," said Wahei Hirai, Toyota's managing officer for design. "This is a mainstream car."
The new model is more powerful than its predecessors, with more headroom, a bigger trunk, better gas mileage and a lower price. It is only now being rolled out in the United States, but judging from exceptionally brisk Japanese sales and effusive early reviews, the car looks like a hit. In May, the Prius was Japan's best-selling car.
To keep up with surging domestic demand, overtime has been brought back at the two plants that assemble the car. Workers have been transferred in from factories around the country. Production has grown to 50,000 cars a month, but customers in Japan must wait three to four months to drive home a new Prius.
The car's sudden popularity comes in a country where the recession has been roughly twice as severe as in the United States and where car sales have been slumping for years. Sales here have been helped by new tax incentives.
Yet, the real test for the new Prius is the United States, where sales of earlier models have historically dwarfed sales in Japan or Europe. As Toyota executives, engineers and designers explained to reporters during a two-day tour here, the world's largest car company has spent 4 1/2 years tweaking the Prius so it can become much more than merely an "eco-icon."
"We are not forsaking the people who want to make an environmental statement," said Paul Nolasco, a Toyota spokesman who helped lead the tour in and around Toyota City. "But the objective of the Prius is to get the family to the mall, not to see how far you can go on so many drops of gas."
The car is hardly a gas hog. It is rated at 50 miles a gallon, 10 miles better than its principal hybrid competition, the Honda Insight. The Insight was the best-selling car in Japan in April, costs less than the Prius and also seems likely to bedevil Detroit's comeback hopes.
A legion of Toyota brass explained during hours of PowerPoint presentations that the new Prius has been designed to elbow its way into the upper ranks of the U.S. passenger car market, where the No. 1 and No. 2 bestselling cars last year were the Toyota Camry and Honda Accord.
Toyota sold about 437,000 Camrys last year, while sales of the second-generation Prius lagged well behind, at about 159,000. Its buyers were mostly Americans in their 50s and 60s.
But even the new larger Prius faces tough challenges in the United States this year. Gasoline prices are running about $1.50 a gallon lower than last year, making hard-pressed consumers less likely to pay extra for a hybrid. And sales across the industry have been plunging. Prius sales in the United States fell to 10,091 in May, down 30.1 percent from May 2008. For the year to date, sales of the Prius in the United States have skidded to 42,753, down more than 45 percent from the first five months of 2008.
Moreover, Honda has crafted an ad campaign designed to appeal to younger car buyers, an audience Prius has had trouble reaching. The campaign -- whose slogan is "The hybrid for everyone is here" -- features popular music and images young people driving to an outdoor music concert or to the beach.
Prius engineers and designers said that cracking open the family-sedan market in these environmentally stressful times is not yet a job that an all-electric car can handle.
Battery technology has not developed to the point where it can provide most commuters with the range, acceleration and comfort they demand, said Masatami Takimoto, an executive vice president in research and development.
"Fundamental issues are unsolved," he said, noting that Toyoto sees gasoline-electric hybrids like the Prius -- not all-electric, plug-in cars -- as the "core" of its future, at least until there are significant breakthroughs in battery development.
The company, though, is hedging its bet by investing heavily in a joint battery project with Panasonic, and it plans to sell a small all-electric car by 2012.
While Toyota sees the hybrid as its main meal ticket for the medium-term, General Motors is hoping to move beyond hybrid technology with the Volt, which it calls an "extended-range electric vehicle."
Its batteries can take the car 40 miles between charges and a small back-up gasoline engine can take it more than 300 miles. But the estimated cost of the Volt, which GM expects to bring to the market late next year, is about $40,000. The third-generation Prius is selling for between $22,000 and $28,000, depending on options.
In its all-electric mode, the Prius can go 1.2 miles.
Toyoto, in effect, says so what?
Its designers say they have made a gas-sipping, low-emission car that's fun to drive, accommodates large people in the back seat and has room in the trunk for three golf bags.
If the Prius proves as popular in the United States as it seems to be in Japan, Toyota does have a problem, company officials acknowledged. Collapsing U.S. car sales in the past year forced Toyota to put off plans to open a factory in Mississippi that could assemble the Prius.
"Yeah, supply is going to be an issue," said Nolasco, the company spokesman.
Designers of the Prius, the curiously shaped hybrid that since 1997 has allowed up-to-the-minute Americans to advertise their eco-correctness, are going after the Average Joe.
The third-generation Prius is not just for "some special people," said Wahei Hirai, Toyota's managing officer for design. "This is a mainstream car."
The new model is more powerful than its predecessors, with more headroom, a bigger trunk, better gas mileage and a lower price. It is only now being rolled out in the United States, but judging from exceptionally brisk Japanese sales and effusive early reviews, the car looks like a hit. In May, the Prius was Japan's best-selling car.
To keep up with surging domestic demand, overtime has been brought back at the two plants that assemble the car. Workers have been transferred in from factories around the country. Production has grown to 50,000 cars a month, but customers in Japan must wait three to four months to drive home a new Prius.
The car's sudden popularity comes in a country where the recession has been roughly twice as severe as in the United States and where car sales have been slumping for years. Sales here have been helped by new tax incentives.
Yet, the real test for the new Prius is the United States, where sales of earlier models have historically dwarfed sales in Japan or Europe. As Toyota executives, engineers and designers explained to reporters during a two-day tour here, the world's largest car company has spent 4 1/2 years tweaking the Prius so it can become much more than merely an "eco-icon."
"We are not forsaking the people who want to make an environmental statement," said Paul Nolasco, a Toyota spokesman who helped lead the tour in and around Toyota City. "But the objective of the Prius is to get the family to the mall, not to see how far you can go on so many drops of gas."
The car is hardly a gas hog. It is rated at 50 miles a gallon, 10 miles better than its principal hybrid competition, the Honda Insight. The Insight was the best-selling car in Japan in April, costs less than the Prius and also seems likely to bedevil Detroit's comeback hopes.
A legion of Toyota brass explained during hours of PowerPoint presentations that the new Prius has been designed to elbow its way into the upper ranks of the U.S. passenger car market, where the No. 1 and No. 2 bestselling cars last year were the Toyota Camry and Honda Accord.
Toyota sold about 437,000 Camrys last year, while sales of the second-generation Prius lagged well behind, at about 159,000. Its buyers were mostly Americans in their 50s and 60s.
But even the new larger Prius faces tough challenges in the United States this year. Gasoline prices are running about $1.50 a gallon lower than last year, making hard-pressed consumers less likely to pay extra for a hybrid. And sales across the industry have been plunging. Prius sales in the United States fell to 10,091 in May, down 30.1 percent from May 2008. For the year to date, sales of the Prius in the United States have skidded to 42,753, down more than 45 percent from the first five months of 2008.
Moreover, Honda has crafted an ad campaign designed to appeal to younger car buyers, an audience Prius has had trouble reaching. The campaign -- whose slogan is "The hybrid for everyone is here" -- features popular music and images young people driving to an outdoor music concert or to the beach.
Prius engineers and designers said that cracking open the family-sedan market in these environmentally stressful times is not yet a job that an all-electric car can handle.
Battery technology has not developed to the point where it can provide most commuters with the range, acceleration and comfort they demand, said Masatami Takimoto, an executive vice president in research and development.
"Fundamental issues are unsolved," he said, noting that Toyoto sees gasoline-electric hybrids like the Prius -- not all-electric, plug-in cars -- as the "core" of its future, at least until there are significant breakthroughs in battery development.
The company, though, is hedging its bet by investing heavily in a joint battery project with Panasonic, and it plans to sell a small all-electric car by 2012.
While Toyota sees the hybrid as its main meal ticket for the medium-term, General Motors is hoping to move beyond hybrid technology with the Volt, which it calls an "extended-range electric vehicle."
Its batteries can take the car 40 miles between charges and a small back-up gasoline engine can take it more than 300 miles. But the estimated cost of the Volt, which GM expects to bring to the market late next year, is about $40,000. The third-generation Prius is selling for between $22,000 and $28,000, depending on options.
In its all-electric mode, the Prius can go 1.2 miles.
Toyoto, in effect, says so what?
Its designers say they have made a gas-sipping, low-emission car that's fun to drive, accommodates large people in the back seat and has room in the trunk for three golf bags.
If the Prius proves as popular in the United States as it seems to be in Japan, Toyota does have a problem, company officials acknowledged. Collapsing U.S. car sales in the past year forced Toyota to put off plans to open a factory in Mississippi that could assemble the Prius.
"Yeah, supply is going to be an issue," said Nolasco, the company spokesman.
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.
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