Analyst forecasts for Maywere perhaps a little bearish on Ford and a little too bullish on GM, as the two remaining American automakers saw their volumes drop by 3% and 1% respectively (year-over-year) last month. Pickups seem to have been the highest hurt by high gas prices, as GM’s full-sizers dropped 14%, while Ford’s F-Series dropped 15% despite a 55% mix of Ecoboost V6-powered F-150s. But the real losers in May’s downturn were probably the Japanese automakers, whose numbers are just starting to come in, while the biggest winners appear to be the luxury brands, with Porsche up 50% and Maserati up 36%. Check back often as we update our developing table of US auto sales in May.
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Posts By: Edward Niedermeyer
Mark Modica, a former Saturn dealer GM bondholder, has leveraged his financial loss at the hands of the government bailout into a blogging position at the National Legal and Policy Center, a conservative nonprofit that “promotes ethics in public life through research, investigation, education and legal action.” At the NLPC, Modica focuses on what he believes to be corruption surrounding the auto bailout, and has written a series of anti-GM posts that make TTAC look like a Detroit hometown newspaper (TTAC “bias police,” take note). Most recently, Modica has caught the attention of the auto media, including Automobile Magazine and Jalopnik, with a series of posts accusing Chevy dealers of “scamming” taxpayers by claiming the Volt’s $7,500 tax credit and then selling Volts as used cars. TTAC welcomes anyone seeking to cast more light on the bailout, but unfortunately, Modica’s attacks are too focused on making GM look bad and not focused enough on providing relevant information to the American people. Let’s take a look and see why…
A November study by the University of Adelaide recommended that a commission be established to review the placement and use of speed cameras in South Australia. Last month, the state parliament rejected any suggestion that policies relating to automated ticketing could be questioned.
As part of a parliamentary internship program, a research report reviewed existing research and applied the findings to the road safety situation in South Australia. The results were provided to Ivan Venning, a Liberal Party member of House of Assembly, who attempted on May 19 to win approval for a select committee to examine the use and effectiveness of photo enforcement. During debate, Venning pointed out several other states were currently conducting reviews of their own.
Bloomberg reports:
Renault SA Chief Executive Officer Carlos Ghosn agreed to make development of upscale cars for French factories a “priority” as the government steps up its influence in the wake of a botched spy investigation.
Renault, based in Boulogne-Billancourt near Paris, named Carlos Tavares as Ghosn’s deputy late yesterday. The French state, the carmaker’s biggest shareholder with a 15 percent stake, made support for the appointment conditional on strategy changes, including taking a stronger lead in its alliance with Nissan Motor Co., people familiar with the situation said.
“If it’s this hard just to get your man in place, it suggests we’ll see more, rather than less, government influence going forward,” London-based Credit Suisse analyst Erich Hauser said. France is a “relatively small shareholder with a disproportionate say over strategy, which has to be a concern for other investors.”
…Ghosn said he intends to be “more present in France from now on,” in an interview published today in French daily Le Parisien and confirmed by Renault.
In the face of such (continued) humiliation at the hands of a minority government partner, one has to admit that America’s auto bailout has been an relatively hands-off affair. Context is important after all (although to be perfectly fair, Renault did embarrass the French government with that “spy scandal”). Besides, it sounds like the brave French pols are simply out to avenge the sad death of the Vel Satis, so hey, at least the French might get the epically weird luxury sedan to end all epically weird luxury sedans out of the deal.
Sometimes honesty is the best policy…
May sales estimates are out, and the analysts are seeing slowdown in their crystal balls. Reuters reports that its survey of leading auto analysts projects a 12.6m SAAR (Seasonally Adjusted Annual Rate) for the month, while Bloomberg is projecting a 12.1m rate. Wherever the actual number lands, it is likely to be the first month this year below a 13m SAAR, as Japanese supply interruptions as well as model changeovers lower overall supply. But, reports the WSJ [sub], there’s evidence that perceptions of undersupply are possibly keeping consumers away from showrooms as much as an actual shortage of vehicles. A Honda dealer who says he has plenty of cars for sale is quoted as saying
Traffic is down and I think it’s the media effect. People think there’s no cars and they think there’s no incentives, so they’re waiting.
And that’s not all: it turns out that May’s downbeat forecasts could have an even deeper cause…
With new compact and subcompact models from Ford and GM enjoying respectable sales, the mainstream media has been indulging in some “feel-good” headlines, like the New York Times’s Detroit’s Rebound Is Built on Smaller Cars, or CBS’s more equivocal Can small cars rebound U.S. auto industry? It’s an understandable instinct, as the media has long battered Detroit’s inability to build competitive compact and subcompact cars, and in the post-bailout atmosphere of redemption, these headlines definitely help reassure Americans about the value of their “investment.” Unfortunately (if unsurprisingly), however, these pieces gloss over the full truth of the situation. Yes, Ford and GM are enjoying improved sales success with small cars. The “U.S. auto industry,” on the other hand, isn’t actually getting all that much out of the situation, beyond some fluffily positive press. Here’s why:
AOL’s Translogic [via PopSci] takes a look at the LAPD’s brand-spankety new Chevy Caprice PPV, the born-again Pontiac G8 that you can’t buy at a dealership. But rather than looking at the Caprice’s cop car-creaming performance (as did the Michigan State Police), this report focuses on the LAPD’s high-tech toys… which could just make the Caprice’s V8, rear-drive abilities less necessary than ever. Still, between the Holden-powered, rear-drive performance, the footprint-spying night vision camera and the automatic license plate recognition system, the Caprice PPV will probably make you think twice about speeding the next time you’re visiting the City of Angels.
Editor’s Note: Tomorrow is the first day of June, which the National Motorists Association has deemed “Lane Courtesy Month.” What follows is a piece entitled “Lane Courtesy: A Driving Ethic,” which was originally posted at the NMA’s website. There, the NMA has dedicated a whole page to issues of lane courtesy, including studies, fact sheets and other resources for the promotion of lane courtesy. TTAC thanks the NMA for drawing attention to the perennial aggravation of “Left Lane Bandits” and encourages you, our readers, to learn more at the NMA’s website and spread the good word. With just a little more awareness of lane courtesy, a better world is indeed possible…
Though the auto bailout is being widely defended in the political realm as a jobs-saving measure, the industry sees the rescue’s value in precisely the opposite light, as industry and supplier execs rate “capacity rationalization” as the most positive effect of the bailout. And, reports Automotive News [sub], Ford and GM could still end up cutting as many as six more plants over the next few years as questions linger about volume recovery in the larger market. Of the three GM plants likely to be shut down, the former Saturn plant at Spring Hill, TN, is the most likely to survive as it includes a paint shop, a small engine plant and associated parts manufacturing facilities. In contrast, analysts note that GM’s Janesville, WI, plant is the firm’s oldest and is therefore far less likely to survive, and its Shreveport, LA, compact truck plant is part of “Old GM” and will likely be liquidated. Similarly, Ford’s Ranger plant in Minnesota, as well as its Avon, OH Econoline plant and its Flat Rock, MI Mustang plant could face shutdowns. Ranger is running out of production, Econoline has been losing share to Ford’s more-efficient Transit Connect, and Mustang has been losing market share to Camaro while facing a Mazda pullout from the Flat Rock plant.
Because GM is adding jobs at other plants, the net job loss from its three likely shutdowns (two of which are currently idle) could be relatively low, but then cost savings aren’t likely to match those accrued by past shutdowns either. Ford, meanwhile, is facing a bit more disruption if Mazda pulls out of Flat Rock, but could accrue more savings than GM as only the Ranger plant is scheduled to lose its production. In any case, the UAW will have to weigh its desire to keep plants open with its desire to mitigate the inequity of the two-tier wage system… as well as its desire to gain board seats. All of which could make the UAW’s upcoming bargaining session (not to mention the political debate about the auto bailout) much more interesting…
No, this is not another installment of Steve Lang’s “Lease, Rent, Sell or Keep?” series. Wards Auto is reporting that Toyota facing a decision over whether to kill its Matrix hatchback when a new version of the Corolla on which it is based debuts sometime “before 2013.” Toyota’s Bob Carter tells Wards that
There’s no change right now on the car, (but) we haven’t made the decision yet
So, what to do? Toyota doesn’t break sales of the Matrix out from the Corolla, but according to Wards:
The hatchback reached its pinnacle in 2002, selling 66,836 units, Ward’s data shows.
Annual deliveries have declined since then, except for 2008, the second-generation model’s first full year.
However, Matrix volume plunged 47.3% to 26,121 in 2009, from 2008’s 49,567, and last year slid 44.5%, with only 14,492 deliveries.
Toyota’s Carter insists that the forthcoming “Prius C” compact hatch “attracts a different type of buyer,” an argument he’d probably also apply to the Scion xB, another Corolla-based hatchback. So, should Toyota develop a new Matrix along the lines of its predecessors in hopes that the third iteration brings back some magic to the nameplate? Or, would a re-styled xB make a better Toyota than Scion, opening up Scion’s lineup for a version of the Verso-S? Or perhaps Toyota could offer its European Auris as a Hyundai Elantra Touring-style contrast to the very American Corolla. Or, Toyota could look to the Verso for a larger, more utilitarian alternative to a traditional Matrix.
In any case, with so many possible options, it’s no wonder Toyota hasn’t made a decision yet…
When Chrysler celebrated its payback of “every penny that had been loaned less than two years ago” last week, I noted that CEO Sergio Marchionne’s triumphant line was technically correct, but hardly represented the whole truth of the story. I pointed to $1.5b in supplier aid that helped keep Chrysler afloat, as well $1.9b worth of the Bush Administration’s “bridge loan” to “Old Chrysler,” prior to its government-guided bankruptcy and sale to Fiat. Apparently my more-inclusive accounting of the price of Chrysler’s rescue (which was picked up elsewhere in the online media) caused Mr Gualberto Ranieri, Chrysler VP of Communication, to spend some part of his Memorial Day Weekend writing a response of sorts, outlining Chrysler Group LLC’s perspective on the situation. Hit the jump for Ranieri’s statement, and my brief answer to the headline’s question.
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Ladies and gentlemen, today is a historic day for the Aston-Martin brand. Never in the rich and storied history of the British sportscar maker has there ever been a vehicle, and therefore a review, quite like this one. Autocar handles the burden of history with the soft touch that defines nearly every “first drive” review, demeaning its own readers’ inability to purchase this exclusive Aston rather than daring to question its point, purpose, performance or purchase price. So read on, dear reader… because what we have here is a piece of automotive history. And since you’ll never own one of these proud and noble machines, you might as well use this opportunity to bask in its reflected glory. To wit:
The 97bhp four-cylinder engine feels and sounds energetic up to 50-60 mph. The optional CVT transmission gives easy step-off at traffic lights. In this car it it’s a much better option in a city car than any fiddly five-speeder.
The [Aston-Martin] can produce a quite refined cruising performance on motorways if necessary, though passing performance isn’t its forte.
The steering is feather-light and nicely accurate. If you haven’t sampled [this Aston-Martin] you’ll be surprised by the sheer pleasure that flows from using its scooter-like turning circle, especially when it’s a viable three-seater, that can occasionally cope with four if you don’t mind having no boot space.
But wait… that’s not all! Hit the jump for the answer to the question you’re doubtless asking yourself at precisely this moment: Should I buy one?
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A lengthy Automotive News [sub] story on Scion concludes with Scion VP Jack Hollis restating the brand’s basic myth:
Scion was not created for Scion’s sake. Scion was created for Toyota’s sake. It is an investment in Toyota’s collective future.
Hollis’s argument is bolstered by the scenario in which a youngster is attracted to a Scion store by the brand’s youth-oriented marketing, only to leave in a Corolla. Hollis argues that this model means Scion doesn’t have to worry about its sales volume… which is a good thing, considering the brand’s steady sales decline over the past four years. Hollis explains:
We still don’t go with a set [volume] number. Scion wants to be more influential. We want to talk to more people. We’re getting the right people, so the real question is: How do we get more of them?
I don’t know about you, but creating a brand to be “influential” and to “talk to more people” sounds like some vintage, dry-aged, old-school GM branding nonsense. And given that Scion’s sales decline coincided with the rollout of less-distinctive, more Toyota-like products, Scion’s apparent comfort with its recent declines smack of Old GM-style apathy as well (Scion execs respond with the old “but we gave customers what they wanted” chestnut). But don’t worry… Scion has a plan!
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