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COMMENTARY: Election Year Promises Will Meet Automakers' Harsh Reality, CSM Worldwide Analysis Shows
NORTHVILLE, Mich. -- The domestic auto industry is the subject of
much recent rhetoric by
the presumptive presidential candidates. Both candidates now say they will back domestic automakers with loan guarantees to help the industry restructure, support 'cap and trade' programs to reduce carbon emissions, develop new energy sources and fund the development of green vehicles.
But their platforms diverge sharply where the rubber meets the road, according to an analysis by CSM Worldwide, a global automotive forecasting firm headquartered in Michigan but with offices spread globally.
"Sen. Obama and Sen. McCain have been focusing on pocketbook issues like $4 gas, global warming and security issues like energy independence. Now the auto industry's financial crisis has their attention," said CSM Senior Economist Charles Chesbrough. "It may seem like the candidates' positions are closely aligned, but they actually have radically different approaches to CAFE, the vehicle technologies they champion and the support they're willing to lend to automakers."
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An Escalating Uphill Battle for Big Trucks, Especially Those from Japanese Makers
August 27, 2008
Full-size pickup trucks from Japan's largest
manufacturers - Toyota and Nissan -set new records in July for incentives as well as the time it takes to sell them, according to analysis by Edmunds.com.
Nissan paid its highest amount ever for incentives in July. The Total Cost of Incentives (TCI) on the Nissan Titan hit a record $5,286 for every one sold. Toyota also set a new record for incentives on the Tundra, surpassing the $5,000 mark for the first time, at $5,213 TCI.
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Posted by Michelle Krebs at 12:20 PM under Analysis , Companies , Toyota | Comments (0) | digg this | Seed Newsvine
Moscow Motor Show: Western Carmakers Are Gaining Ground on Local Producers
August 27, 2008
By Pal Negyesi
MOSCOW - Tucked away in the very last hall at the Moscow auto show, which held its press day Tuesday, is the stand of Russia's biggest car manufacturer, AvtoVAZ. Its status eroding, AvtoVAZ, maker of Lada cars, still commands a respectable a 20 percent market share in Russia. But it is no longer the ruling force on Russia's roads or at this show.
Years ago, when the Moscow International Motor Show was held at the old Moscow Expocentre, the AvtoVAZ press conference was the show's biggest spectacle. Russian media gathered en masse to hear ambitious projections from AvtoVAZ managers, like Vladimir Kadannikov. Kadannikov is no longer around, the show is held at the shiny new Crocus Center and AvtoVAZ is being steered towards a brighter future by French automaker Renault.
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Posted by Michelle Krebs at 5:47 AM under Commentary , Companies , Featured | Comments (0) | digg this | Seed Newsvine
Record Number of Models Surpass $10,000 in Incentives, Edmunds.com Analysis Shows
August 26, 2008
SANTA MONICA, Calif. -- As industry vehicles sales have sagged, it's well known that that
automakers' incentive spending has edged higher in their effort to move the metal. Now Edmunds.com's analysis of incentive spending shows a record number of models have reached the lofty level of $10,000 per vehicle in incentives.
A record 10 vehicles in July recorded a Total Cost of Incentive (TCI) of more than $10,000. (TCI is Edmunds.com's proprietary calculation of all incentives on a volume-weighted basis.) Two were BMW models; the rest were General Motors vehicles wearing Cadillac, Saab or Hummer nameplates.
A record two models - BMW's flagship 7-Series sedan and Saab's 9-7X SUV - have averaged a $10,000 plus incentive for the entire year so far. In fact, the 7-Series is approaching the $20,000 mark.
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Posted by Michelle Krebs at 8:02 AM under Analysis , Companies , GM | Comments (0) | digg this | Seed Newsvine
Tata Offered Land to Relocate Nano Factory
August 26, 2008
State governments across India have flooded Tata Motors with alternative offers of land for a
plant to build the Nano as political activists and farmers besieged the existing site in West Bengal this week, the Financial Times reported Tuesday.
Tata Group Chairman Ratan Tata has said he would consider moving the plant because farmers protesting they were unfairly displaced are jeopardizing the company's $344-million investment. The protests could cause cost increases and delays in the introduction of the Nano, billed as the world's cheapest car at $2,500 and planned for sale in India by year-end.
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Posted by Michelle Krebs at 6:51 AM under Business , Companies | Comments (0) | digg this | Seed Newsvine
Middle Eastern Investors Express Interest in GM's Hummer
August 26, 2008
DUBAI - Two separate investors from the Gulf Arab region have expressed interest in buying
General Motors' Hummer brand, a GM executive in the Middle East told Reuters Tuesday.
"For sure, there has been interest from various parties within the Gulf ... there is a precedent in the cases of Aston Martin, Ferrari or Daimler and those kinds of solutions could be very realistic solutions," GM Middle East Managing Director Terry Johnson said in an Reuters interview.
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Posted by Michelle Krebs at 6:39 AM under Business , GM | Comments (0) | digg this | Seed Newsvine
GM in Russia: Too Few Cars is a Good Problem to Have
August 25, 2008
By Pal Negyesi
MOSCOW - General Motors has the kind of problem in Russia that automakers love to have
anywhere: too few vehicles for demand.
The shortage of vehicles in this booming market, where people in the commodity-rich region are rushing to spend their new-found wealth on vehicles, was mentioned repeatedly by executives and dealers representing GM. Like other manufacturers, GM is hosting media, including AutoObserver, at this week's Moscow auto show and giving them a glimpse of their growing manufacturing and distribution presence in Russia.
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Posted by Michelle Krebs at 12:41 PM under Business , Companies , Featured | Comments (0) | digg this | Seed Newsvine
Demand for Secondary SUV Leases Strong
August 25, 2008
MIAMI - Despite plummeting sales of new SUVs and trucks, demand on the secondary market for SUV leases is strong as bargain hunters see a good deal in taking over someone's SUV lease, according to LeaseTrader.com.
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Posted by Michelle Krebs at 9:11 AM under Analysis , Companies | Comments (0) | digg this | Seed Newsvine
August Sales Expected to Drop from a Year Ago, But Improve from July
August 25, 2008
U.S. automakers next Tuesday are expected to report big sales declines in August sales despite increased incentives but show an improvement from July, according to J. D. Power's forecast.
The research firm said General Motors' 100th anniversary employee pricing promotion likely will help sales in the closing days of the month.
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Posted by Michelle Krebs at 7:28 AM under Analysis | Comments (0) | digg this | Seed Newsvine
Little Tata Nano Faces Big Challenges as Job One Could Be Delayed
August 25, 2008
By Nick Kurczewski
Nearly everything about the Tata Nano is on a smaller scale than other cars. From its tiny exterior dimensions to its ultra-low $2,500 base price, the Nano is the reigning champ of automotive frugality even before it goes on sale in October.
Stretching only 122 inches in length, the Nano is almost two feet shorter than a Mini Cooper. And with a curb weight of roughly 1,200 pounds, the Nano makes a lithe sports car like the Mazda MX-5 Miata suddenly seem like a candidate for Jenny Craig. The two-seat Japanese convertible weighs a whopping 1,200 lbs. more than the four-passenger Nano hatchback.
While the Nano's proportions are small, the Spartan city-car is causing full-size headaches for the folks at Tata Motors as production looms close. In fact, those problems are so large they could force Tata to postpone the introduction of the tiny Nano.
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Posted by Michelle Krebs at 4:29 AM under Analysis , Business , Companies , Featured | Comments (1) | digg this | Seed Newsvine
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