Automotive News
Car Czar Rattner's Book Gives Behind the Scenes Look at Auto BailoutsBy Doron Levin Steve Rattner, President Obama's car czar, has released galley proofs of “Overhaul,'' a book that gives an insider's peek at the government's restructuring of the U.S. auto industry, most notably the two automakers that filed for bankruptcy, General Motors and Chrysler. The 320-page memoir, to be published October 14 by Houghton Mifflin, lauds the government's efforts, spicing … [Link] On Labor Day Eve, GM CEO Akerson Extends Hand to UnionsBy Michelle Krebs In his first communication with employees, new General Motors CEO Dan Akerson relayed in a Labor Day letter extended his hand to the company's unions and gave employees a pat on the back. Akerson, officially installed this week as GM's fourth CEO in 17 months, shared a conversation he had recently with UAW President Bob King and … [Link] VIDEO: Edmunds.com Analysts Discuss Sales Stuck in First GearEdmunds.com analysts Karl Brauer, Jessica Caldwell, Ivan Drury and Michelle Krebs recap August sales, discussing the long hangover of last summer's Cash for Clunkers, Ford's overtaking of Toyota, Hyundai's momentum and the surge in big SUV sales. They also give a glimpse of the rest of 2010 that looks to be stuck in first gear. [Link] August Sales Portray an Auto Industry Going 'Sideways'By Dale Buss, Michelle Krebs and Bill Visnic U.S. auto sales have entered a period where treading water is the best the industry can hope for as American consumers deal with sobering economic realities and grim expectations. August sales results underscored that trend, coming in at a seasonally adjusted annual rate of 11.5 million units, solidly within the narrow range … [Link] As Expected, August Sales Don't Look Good on PaperBy Bill Visnic The entire auto industry knew August sales weren't going to stack up well compared to last year: after all, the Cash for Clunkers program in August, 2009 lured an astonishing number of even recession-addled consumers into what had been gloomy showrooms for ten months out of the year. So when General Motors Co. was one of the … [Link] Standoff: Automakers Continue Supply, Incentives Discipline; Consumers Await DealsBy Michelle Krebs By and large, automakers are sticking to their guns by keeping inventories and incentives in check, and their discipline may be leading to a standoff with consumers who appear to be awaiting awesome deals like those of the past. Edmunds.com estimates the average automotive incentive in August declined from July, as is the historic pattern. They were … [Link] Toyota Gets 9,600 Apps for Jobs at Restarted Mississippi PlantIn a signal not only that jobs in the current economy are precious but that auto manufacturing jobs apparently still carry weight, in the first week after announcing it was accepting applications for hourly workers at its restarted assembly plant in Blue Springs, Toyota Motor Manufacturing Mississippi Inc. has been inundated with about 9,500 applications for the approximately 1,350 hourly … [Link] Infiniti's Emmy Ads Boost QX56 Shopping Consideration, Edmunds.com ReportsBy Michelle Krebs Commercials that aired during Sunday night's Emmy awards and starred the cast of NBC's comedy series Community riding in an Infiniti QX56 boosted shopping consideration for the recently revamped full-size SUV, according to Edmunds.com. Shopping consideration for the QX56 rose 51 percent after the airing of the commercials to its highest daily level in three months, according … [Link] Chevrolet Cruze App Allows Owners to Connect by RemoteBy Michelle Krebs The 2011 Chevrolet Cruze, which goes on sale next week, will feature a Smartphone application through General Motors' OnStar that allows the owner to check the fuel gauge, lock and unlock the car, set off the horn and lights alarm and perform onboard diagnostics, such as checking tire pressure, by remote. The Chevy Connect feature will be … [Link] New U.S. Kia Plant to Build Hyundai CUVKia Motors America today announced it will begin production of the Hyundai Santa Fe crossover at the Kia Motors Manufacturing Georgia assembly plant in West Point, Georgia, beginning in late September. It had long been speculated the Kia plant might initiate production of Hyundai vehicles; Hyundai Motor Co. owns 36 percent of Kia and the two closely affiliated companies share … [Link] EPA Wants Public Input on New Improved Fuel-Economy LabelsBy Bill Visnic The U.S. Environmental Protection Agency and the U.S. Department of Transportation today jointly announced the agencies will adopt a new window sticker for all new vehicles that more effectively conveys information about fuel-efficiency and emissions. The EPA added a new twist by saying it is actively soliciting public comment about two proposed new window-sticker designs shown at … [Link] New GM Marketing Boss: 'GM Is Not A Brand'By Dale Buss Don't expect to see the new CEO of General Motors, Daniel Akerson, appear in a corporate television ad the way his predecessor, Ed Whitacre, did several months ago. At least not if Joel Ewanick has anything to say about it. Recently hired as GM's chief marketing officer, Ewanick is chomping at everything like an over-caffeinated Pac-Man as … [Link] News Still Grim for Midsize Pickupshe future for the species known as the midsize pickup is getting darker with the news this week that the Volkswagen Group isn't interesting in entering the market and Ford Motor Co. seemingly is unmoved by recent overtures asking the company to reconsider the scheduled closure of its Ranger assembly plant in Minnesota. Edmunds.com's Inside Line reported yesterday that VW … [Link] Despite Slim-Down, Automakers Still Hung with Too Much CapacityBy Bill Visnic Auto-industry executives keep talking about how they've trimmed down in order to bulk up profits, but that's only partially true. Many indeed are profitable at today's sharply reduced global sales rates – but they've still got some work to do in cutting the fat from their manufacturing empires. The latest data from Oliver Wyman's prestigious Harbour Report … [Link] Toyota Pulls Trigger on Another Hefty RecallBy Bill Visnic Proving true to its word of being more responsive to consumer concerns while at the same time likely still smarting from the biggest recall-related fine ever paid by an automaker, Toyota Motor Corp. today announced it will recall more than 1 million Corolla and Matrix models to replace a potentially faulty electronic circuit board. Toyota's move comes … [Link] August Car Sales Hold Steady, If Not SpectacularBy Bill Visnic August new-vehicle sales will remain steady at a Seasonally Adjusted Annual Rate (SAAR) of 11.8 million, according to data from Edmunds.com, but when totals are finalized next week, the month certainly won't be able to compare to last August's Cash For Clunkers-fueled SAAR of 14.1 million. August new-vehicle sales (including fleet transactions) are expected to be 1,028,200 … [Link] Toyota Outlines Alt-Fuel, Manufacturing Goals in Environmental PlanBy Danny King Toyota Motor Corp. is looking to boost 2015 global fleetwide fuel efficiency by 25 percent from 2005 levels by broadening sales of hybrid-electric vehicles and introducing battery-electric vehicle (BEV) and plug-in hybrid-electric vehicles (PHEV), as the world's largest automaker outlined its fifth so-called "Environmental Action Plan" earlier today. Toyota will debut its first PHEV by 2012, with … [Link] Surprise (Not) – Fraud Alleged in Cash-For-Clunkers ProgramBy Bill Visnic The revelation in today's reporting from USA Today isn't that fraud is being investigated in last summer's controversial Cash-For-Clunkers stimulus program. The real surprise is that there might be so little of it. The paper reports that as much as $94 million in Cash-For-Clunkers claims submitted by auto dealers may be invalid due to improper documentation. But … [Link] What's Really Holding Back the Auto Recovery?By Karl Brauer Three years after the recession that started in December, 2007, and according to various economic indicators, one year into an economic rebound that began around July of last year, the strength of the recovery remains open to debate. But using these dates as a baseline and comparing current auto sales numbers to recession/recovery patterns of the past … [Link] Advantage Volt as Range Anxiety Still Troubles American Drivers?By Bill Visnic General Motors Co.'s Chevrolet Volt extended-range electric vehicle and Nissan Motor Co. Ltd.'s Leaf battery-electric car both are scheduled to launch in December and there's been plenty of debate about whether the two will compete for buyers. Many analysts don't believe so, largely because the two cars essentially are different animals: the Leaf has a maximum driving … [Link] Obama Administration Auto-Jobs Numbers: 76K More This YearBy Bill Visnic Vice President Joe Biden this week visited the Chrysler Group LLC assembly plant in Toledo, OH, that builds Jeeps. While at Toledo North, Biden unsurprisingly touted the impact of government bailouts in saving jobs in America and stated one impressive figure, even if it almost certainly comes with caveats: Biden said the domestic content of vehicles sold … [Link] Economic Jitters Could Negate Strong Initial August SalesBy Bill Visnic Although U.S. auto sales started August at a robust pace, a diving U.S. stock market, a big drop in home sales, continuing discussion of deflation afflicting the U.S. and a surging value of the Japanese yen all are contributing to broad economic discomfort that could begin to impact the auto industry's wobbly recovery. The exchange rate between … [Link] Second Ex-Chrysler Exec Turns Up in Auto High-TechBy John O'Dell Barely a week after a former Chrysler Corp. executive connected with that company's once-ambitious electric-vehicle development programs was named to lead a company planning to make plug-in hybrid commercial vehicles, another executive who previously worked for Chrysler also is joining up with a company connected to electric-vehicle development. Former Chrysler Executive Eric Ridenour is heading to Colorado … [Link] New Pressures For Deflation-Weary JapanBy Bill Visnic Bending under the sustained pressure of a years-long deflationary economic environment, the current situation in Japan may be a cautionary one for those not convinced the potential onset of deflation should be a concern for the United States. The New York Times reports today that anxiety is mounting in Japan for action after recent economic measures showed … [Link] Ugly or Not, Deflation Rears Head at Auto IndustryBy Dale Buss No one can agree if it's coming or not. Instead, maybe its opposite will show up. And in any event, the auto industry has been feeling its influence for several years. The subject of this economic riddle? Deflation. It's rearing its ugly head, now menacing the economy at large, and already has a strong hold on major … [Link] Toyota Skeptical of Data From Its Own Black BoxesBy Bill Visnic When refuting recent claims of drivers citing unintended acceleration in its vehicles, Toyota Motor Corp. often has pointed to evidence gathered by onboard event data recorders, the so-called "black boxes" that became one point of discussion in the Congressional unintended-acceleration investigation earlier this year. After the Congressional inquiry, Toyota pointed to data recovered from black boxes to … [Link] GM Grabs Another Hyundai Marketing AlumBy Bill Visnic General Motors Co., seemingly anxious to nurture its rebound in the U.S. market and in the eyes of still-cautious consumers, announced today it has hired Chris Perry to be vice-president of marketing for the Chevrolet brand. Perry, was vice president of marketing for Hyundai Motor America and will report to U.S. vice president of marketing Joel Ewanick, … [Link] Challenges Abound as GM Pitches Its IPOBy Nick Kurczewski With the required papers now filed, General Motors' management will kick off a road show to convince potential investors to buy the automaker's stock in its Initial Public Offering. Their challenges are many, according to analysts and investment bankers interviewed by AutoObserver.com. Topping the list of concerns about the GM IPO are timing and management. Does the … [Link] Retail Car Sales Strong in August, Reports Edmunds.comIf vehicle sales continue at the current pace, August sales will total approximately 1.03 million units for a Seasonally Adjusted Annual Rate of about 11.8 million units, Edmunds.com reports. This analysis assumes that fleet sales are relatively steady as a percentage of total vehicle sales compared to last month. "It looks like bargain hunters are getting serious about taking advantage … [Link] Government Motors Shortly Will Be a Little Less SoBy Doron Levin After a bit of fumbling and a few false starts, General Motors Co. issued its prospectus for common stock on Wednesday afternoon, conveying an impression that the automaker's leadership remains in a state of confusion and turmoil that – for GM's sake – must finally settle down. Selling stock, especially an initial public offering following a bankruptcy, … [Link] GM Files for Initial Public Offering; No Price or Number of Shares RevealedBy Michelle Krebs and Doron Levin General Motors has filed the documents for its highly anticipated Initial Public Offering of stock that would reduce the U.S. government's stake in the automaker. The filing of more than 700 pages with the Securities and Exchange Commision (SEC) on Wednesday reveals few details about the offering itself. It does not say when the … [Link] GM, China's SAIC Partner for New Powertrain Tech – IPO Implications?By Bill Visnic Longstanding partners General Motors Co. and China's SAIC Motor Corp. Ltd. established a venture this week to develop a new 4-cylinder engine family and a dual-clutch automated-manual transmission. The timing of the announcement may be unintentional accidental, but leaves industry watchers wondering if SAIC, which already has deep ties with GM in a 13-year relationship, may be … [Link] GM Files for Initial Public Offering; No Price or No of Shares RevealedBy Michelle Krebs and Doron Levin General Motors has filed the documents for its highly anticipated Initial Public Offering of stock that would reduce the U.S. government's stake in the automaker. The filing of more than 700 pages with the Securities and Exchange Commision (SEC) on Wednesday reveals few details about the offering itself. It does not say when the … [Link] Like Automakers and Their Dealers, Retailers Ask Where are Consumers?By Michelle Krebs Retailers are asking what automakers and their dealers have been as well: where are consumers, and what will it take to lure them into their stores? Wal-Mart and Home Depot, which both reported quarterly earnings Tuesday, posted better-than-expected profits. However, both acknowledged American consumers are not spending as much as they had expected despite the great deals … [Link] UAW's North Michigan Resort Off the MarketThe United Auto Workers union has taken down the for sale sign on its luxurious forested retreat known as Black Lake in Northern Michigan. Officially named the Walter and May Reuther Family Education Center was taken off the market in June at the request of newly inducted UAW President Bob King and the union's new executive board, the Detroit News … [Link] China's BAIC Expands Further by Acquiring Smaller RivalBy Michelle Krebs In another step in the consolidation of the Chinese auto industry, Beijing Automotive Industry Holding Co. (BAIC) will take over smaller rival Guangzhou Baolong and invest $736 million to expand its current southern China plant and add a new one. BAIC, one of China's largest automakers, is a company on the move. BAIC had made a bid … [Link] Auto Industry Drives U.S. Factory Output Higher in JulyDemonstrating again that it is a major engine in the economy, the auto industry garnered credited for pushing U.S. industrial production higher in July. The Federal Reserve reported Tuesday that U.S. industrial production climbed 1 percent in July after dropping 0.1 percent in June. Manufacturing output increased, by 1.1 percent, after dropping 0.5 percent in June. The approximately 10 percent … [Link] Coda Sells California ZEV Credits to Unnamed MakerBy Danny King Part of the business plan of some small American electric-vehicle makers involves selling zero-emissions-vehicle credits to larger manufacturers. These credits stem from a vote by California's Air Resources Board (CARB) in 2008 requiring Honda, Toyota, General Motors Co., Ford Motor Co. and Nissan Motor Co. to sell a total of more than 60,000 plug-in hybrid and battery-only … [Link] Fiesta Gets Tough Competition in its Own Showroom as Small-Car Sales PlodBy Bill Visnic Gasoline prices are staying low and consumers aren't exactly flocking to hybrids and other fuel-saving small cars. That might be part of the reason sales for Ford Motor Co.'s much-anticipated Fiesta subcompact haven't exactly gone orbital; for July, the Fiesta's first full month on the market, sales were 3,349. Ford knew the Fiesta will have to overcome … [Link] For GM IPO, Financiers Scrambled to Take PartBy Bill Visnic With General Motors Co. expected to announce at any moment it has filed the paperwork for an initial public offering of stock and the company's return to public ownership, a well-detailed picture is emerging of how Wall Street's banks and financiers scrambled for a piece of the action. Most tellingly, coverage by Reuters this week shows it … [Link] Honda Owners Shocked by Civic Hybrid's Browned-Out BatteriesBy Bill Visnic Honda Motor Co. Ltd. is following-up a big recall last week for faulty ignition interlocks with another quality hit that may be more potentially damaging to the automaker's dependability reputation: it appears thousands of Honda's Civic Hybrids may be experiencing accelerated deterioration of the car's crucial and expensive nickel-metal hydride battery pack. Edmunds.com's Green Car Advisor confirmed … [Link] China Auto Sales Cool, Makers Begin to WorryBy Bill Visnic The China Association of Automobile Manufacturers reported sales in the nation slowed again in July, dropping 11.9 percent compared with June as the auto sales continue to slow after a blistering pace last year. The trend is causing concern for many automakers who have pinned plans for the bulk of their near-term growth on the long-expanding Chinese … [Link] Best of 2010 May Already Be Behind GMBy Bill Visnic General Motors Co. detailed its second consecutive quarter of profitability after exiting bankruptcy last July. That is a good thing for GM and everything and everybody connected. But with the economy plodding and U.S. auto sales in lockstep, GM's best days – at least for this year – may already be behind it. In a conference call … [Link] GM-Linked Hybrid Van Start-Up Hires Ex-Tesla ExecBy Danny King Bright Automotive this week hired ex-Tesla Motors executive Mike Donoughe to run the company's operations, as the Indiana-based company looks to speed up development of its IDEA plug-in hybrid-electric commercial van after General Motors Co. recently agreed to invest in the company. As executive vice president for vehicle engineering and manufacturing, Donoughe helped Tesla develop its all-electric … [Link] Rattner on Whitacre Departure: He Wasn't a Long-TermerBy Doron Levin Steve Rattner, the former Wall Street banker who headed the U.S. Treasury's reorganization of General Motors and Chrysler, said Thursday that the abrupt resignation of Ed Whitacre as GM chief executive officer “shows him as a man who meant what he said," that he didn't want to run GM long term. “From the beginning, Ed made it … [Link] Whitacre Leaving GM, Board Member Akerson to Take OverBy Bill Visnic General Motors Co. chairman and CEO Ed Whitacre announced today he will give up his title of CEO on Sept. 1 and will leave the company at the end of the year. Taking over to lead GM is Daniel F. Akerson, currently a member of the GM board of directors and managing director and head of global … [Link] GM Earns $1.3-Billion Profit in Second Quarter As IPO LoomsBy Michelle Krebs General Motors, which emerged from Chapter 11 bankrupty a year ago, earned $1.3 billion in the second quarter as it prepares to launch its initial public offering, documents for which could be filed with regulators within the next few days, if not today. "I am pleased with our progress on achieving our business objectives," said Chris Liddell, … [Link] Exam Shows Brakes Often Not Used in Toyota UA IncidentsBy Bill Visnic In another development that partially exonerates Toyota Motor Corp. in reported incidents of unintended acceleration, the results of an early study of data from onboard data recorders shows that in the majority of cases, the driver was not applying the brakes while the vehicle purportedly was accelerating of its own accord. The findings, reached in the initial … [Link] Exam Show Brakes Often Not Used in Toyota UA IncidentsBy Bill Visnic In another development that partially exonerates Toyota Motor Corp. in reported incidents of unintended acceleration, the results of an early study of data from onboard data recorders shows that in the majority of cases, the driver was not applying the brakes while the vehicle purportedly was accelerating of its own accord. The findings, reached in the initial … [Link] GM IPO Moving ForwardGeneral Motors moved a step closer to its highly-anticipated initial public stock offering today by filing with federal regulators its rules covering board and shareholder meetings. The filing comes on the eve of GM reporting second-quarter earnings, expected by Wall Street analysts to be its best results in six years. GM, which refuses any comment on the filings, is rumored … [Link] Turbo Truck May Shove Ford to Top of Light-Pickup HeapBy Bill Visnic Ford Motor Co. promised its EcoBoost suite of high-tech engine technology would start to spread throughout its lineup, and today announced another significant application for the power- and fuel-efficiency-enhancing EcoBoost V6: the 2011 F-150 pickup. The turbocharged 3.5-liter EcoBoost joins Ford's snarly 5-liter V8 and a normally aspirated 3.7-liter V6 as new additions to the F-150 powertrain … [Link] Former Ford Exec Gilmour Heads UniversityFormer Ford Vice Chairman Allan Gilmour has been named interim president of Wayne State University in Detroit. Gilmour did two stints in leadership positions at Ford. He retired as vice chairman after 35 years in 1995. In 2002, he was asked to return to the company as vice chairman, retiring again in 2005. A graduate of Harvard University and the … [Link] Analysts Bet on Declining Auto Demand for Bearish Daimler OptionsDaimler AG, parent company of Mercedes-Benz and smart among others, is poised to reverse this year's vehicle sales rally, according to a new analysts' report out of Europe, cited by Bloomberg News. Reports from analysts at the Royal Bank of Scotland Group note concern with production overcapacity in Europe and lackluster consumer demand due to pressure on disposable incomes come … [Link] Tesla Shares to Rise 30% by Year-End 2011, Analysts' Report SaysBy Danny King Tesla Motors shares may jump as much as 30 percent by the end of next year as the electric -vehicle maker will likely attract investors because of its relatively inexpensive lithium-ion battery packs and plans to launch its Model S sedan, as well as more stringent environmental regulations from the government that will boost demand for electric … [Link] Trucks Hitching Up Bigger Share of Market in RecoveryBy Dale Buss Pickup-truck sales gained more traction last month, and industry executives are starting to believe that their biggest and most profitable vehicles can be counted on to haul an even larger share of the fledgling recovery for the rest of the year and beyond. Large trucks garnered a 12.4 percent share of overall U.S. auto sales in July, … [Link] Scion Hammered by Recession, Hopes New tC Starts Bounce BackBy Erin Riches, edited by Bill Visnic Toyota Motor Corp.'s Scion small-car and youth-attracting division has been hit hard by the recession and its aftereffects, the brand's vice president admitted at a media event last week to launch the all-new 2011 tC coupe. Jack Hollis, Scion vice president, acknowledged that Scion sales have been poor over the last couple years. … [Link] Veteran Auto Writer Jerry Flint Dead at Age 79By Michelle Krebs Jerry Flint, a journalist who covered Detroit and its auto industry for 52 years for Forbes, The New York Times, the Wall Street Journal and trade journal Ward's, died Aug. 7 of a stroke at the age of 79. Flint bluntly called it like he saw it. The way he saw it usually was right but often … [Link] Chrysler's Financial Picture Brightens, But Challenges RemainBy Michelle Krebs Chrysler Group LLC reported Monday an improved financial picture in the second quarter, but the automaker clearly has more work ahead. Chrysler narrowed its net loss to $172 million in the quarter (from $197 million in the first quarter). Chrysler earned an operating profit and increased the amount of cash it has on hand. "The second quarter … [Link] NPR's On Point Peeks Under the Hood of the U.S. Auto IndustryNational Public Radio's On Point program used the occasion of President Obama's visit to a Ford assembly plant in Chicago to look under the hood of the U.S. auto industry. Only a year ago, Ford was struggling financially, while General Motors and Chrysler had just emerged from Chapter 11 bankruptcy. Last week, the President was in Detroit visiting GM and … [Link] Future GM Models Could Include Smaller Minivan, Pickup, Bloomberg Reports; New Corvette ConfirmedBy Michelle Krebs General Motors Co. is studying several possible additions to its vehicle lineup, including a new midsize pickup, a stretched version of its European minivan, a Cadillac flagship and a diesel engine for cars, Bloomberg News reports. A new Chevrolet Corvette is already in the works. GM CEO Ed Whitacre has told his staff to explore adding new … [Link] |
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