Did you miss out on the chance to reserve a Challenger SRT-8 during the pre-production feeding frenzy? Don't worry– they're still available. It turns out the "sold out" production run wasn't. While many of the first 6.4k built were pre-sold, "a quarter of the cars were set aside for dealer orders." The Detroit News reports they're available at some dealers; in fact, one Michigan dealer has nineteen of them for sale. Jim Simpson, sales manager at Dick Huvaere's Richmond Chrysler Jeep Dodge, said "I wish I had 50 of them." So far he's sold one; he currently has two on the lot with 17 more expected later this month. A quick scan of inventory at Dodge dealers in the metro Atlanta area turned up five on dealer lots. So if you're interested, you might be able to find one in your area too. Or you can wait a few months until dealers have milked the "market price adjustment" and they're willing to talk turkey (so to speak) to get them off their lots.
Posts By: Frank Williams
America can't get enough of the Prius. To meet demand, Toyota will begin building the gas – electric four-door in the U.S. in late 2010 (yes, at the same time the Volt is supposed to debut). ToMoCo'll use the plant they're building in Blue Springs, Mississippi– originally destined for Highlander production. Highlanders are moving to the Princeton, Indiana plant starting in late '09. To make room for the Highlander, they'll shift Indiana Tundra production to San Antonio, consolidating Tundra production in Spring 2009. But before they do that, they'll shut down all Tundra production from August 8 until early November (lagging sales). Toyota says they'll continue to provide work for the non-union "team members" at both facilities, as well as those working at the Huntsville, Ala. plant that builds Tundra and Sequoia engines.
In a move bound to raise howls of protest from the Chevy Volt's cheerleaders, GM (along with nine other manufacturers) has asked the National Highway Traffic Safety Administration (NHTSA) to lower the 4.5 percent annual increases in the CAFE standards projected between 2011 and 2015. To justify the request, GM stated they won't have enough Volts and Vue plug-in hybrid electric vehicles (PHEVs) on the road by 2015 to meet the more stringent standards. GM "strongly discouraged" any assumptions that their PHEVs would impact their corporate fleet average. Their NHTSA filing flatly stated "GM's game-changing (extended range electric vehicle) technology should be treated as a low-volume application." (Only GM could use "game changing" and "low volume" in the same sentence.) How low is "low volume"? The Detroit News reports GM plans to build fewer than 200k Volts in the first five years (40k per year average). To make matters worse– for the U.S. PHEV crowd– GM says many of those will be exported. Of course, this all assumes GM will start producing Volt and PHEV Vues in late 2010 as promised. So now, it's put up or shut time. The sad thing is that GM will do neither.
As previously promised, here are the June 2008 market share numbers for the top five automakers. Click here for a comprehensive chart of 2008's market share data
|
Make |
Cars |
Trucks |
Total |
|
|
General Motors |
17.5% |
28.4% |
22.1% |
|
|
Toyota Motor Sales U.S.A. |
19.1% |
12.3% |
16.2% |
|
|
Ford Motor Co. |
10.2% |
21.0% |
14.8% |
|
|
American Honda Motor Co. |
14.2% |
9.0% |
12.0% |
|
|
Chrysler LLC |
5.2% |
16.3% |
9.9% |
Everyone in the car biz knows that June was a catastrophic month for the U.S. new car market. Total sales dropped by 18.3 percent. The big change this time 'round: it wasn't just light trucks that took it on the chin. Car sales received some body blows, as well. If you're an auto industry exec [still] living in denial, it's best to stop here. If not, read 'em and weep. [NB: As per TTAC policy, sales numbers not adjusted for "sales days."]
Canadian Auto Workers (CAW) union president Basil a.k.a. Buzz Hargrove is stepping down early. Although Buzz was expected to retire when he reached the mandatory retirement age of 65 next year, he's now leaving "soon after" the union selects his successor this summer. His hand-picked heir-apparent is the equally-outspoken not-to-say borderline-militant Ken Lewenza, current president of Windsor, Ontario Local 444. Buzz is leaving amid the controversy we've all come know and love; rumors say the national executive board is pressuring their staff to support Lewenza's bid. The Victoria Times Colonist quotes columnist Gord Henderson, who describes Buzz' golden boy as having a "Dr. Jekyll-Mr. Hyde persona" whose "flights of rhetoric are a wonder to behold, akin to watching Mount Vesuvius blow its stack." So we shouldn't run out of Lutz Award-worthy quotes from north of the border. With Canada's dubious distinction as the highest-priced labor force in the North American and auto industry manufacturers shutting down Canadian plants, Lewenza will have plenty opportunity to display his brand of "old-time table-thumping unionism." So don't go away; we'll be back with more!
Those of us old enough to remember the Kennedy/Nixon debate remember Dinah Shore encouraging us to "See the USA in your Chevrolet." Then Chevy invited us to enjoy "baseball, hot dogs, apple pie and Chevrolet" driving "the Heartbeat of America" as we participated in "an American Revolution." So much for flag-waving. In yesterday's press release, Chevy crows that their new Cruze– the Daewoo Optra they're going to build in Lordstown OH— features a new "global design language" that was "developed by a global design and engineering team." They warn tell us this "new global design language… will continue to be a signature element for future vehicles carrying the gold bowtie." Let's hope they're not talking about the new schnoz they're sticking on the front of the 2009 Aveo5. Where are Bill Mitchell or Harley Earl when you need them? Oh that's right; they're dead. Never mind then.
GM wants to have a production version of its plug-in electric – gas hybrid Chevrolet Volt ready in time for its centennial this September. Automotive News [sub] cites "people familiar with the project" [Ed: my haven't they been busy today] who say the ailing American automaker is rushing to finish their four-wheeled Hail Mary by September 16, when RenCen celebrates the 100th anniversary of its founding by Billy Durant. In spite of the self-imposed deadline, "a GM spokesman declined to comment on the timeline for its next announcements on the Volt, which will include naming a supplier for the vehicle's lithium-ion battery pack." How can GM PR claim a "production version" of the Volt will be ready when they can't even say who'll supply the battery pack eight weeks before the debut? With ease, apparently. GM seems to be banking on the usual fawning media coverage to divert attention from the real issue: crashing sales, a raging cash conflagration and the threat of Chapter 11 just over the horizon. But hey! We'll have a hand-assembled "production" Volt to show off. What more could you want?
Japan has laws mandating the size of your waistline. And now the auto companies are slimming down their cars–any way they can. Automotive News [sub] reports Nissan plans to reduce its fleet's average weight by 15 percent by 2015 (from 2005 levels). Toyota is looking for a 10 percent loss. Mazda wants to pare 220 lbs. from each of its new models. Honda's trimming down (2008 Accord notwithstanding), but hasn't publicized any goals. Automakers are doing what they can to lose weight, from using aluminum and plastic body panels to re-engineering existing components to make them lighter. For example, the next Prius' electric motor will be one-sixth as heavy as the current powerplant; the batteries will weigh half as much. Honda's even going so far as to shave off slivers of steel between spot welds on the Fit to save a few ounces overall. Adding lightness is an expensive business, but with existing safety regulations and new fuel efficiency standards, there may be no choice.
Should states be allowed to sell specialty license plates with religious messages? Stefan Lonce, author of a book on vanity license plates, doesn't think so because he wants The New York Times to promote his book and we all know where they stand on the old church-state thing. The one-time New York Times op-ed contributor points out that federal courts consistently rule that vanity plates are protected under the First Amendment. Unless, that is, someone finds the plate offensive. Lonce advocates establishing a national database of "prohibited vanity plate messages, created with advice from First Amendment experts and open to public scrutiny." States would use the db to determine what's PC and what's not. Lonce doesn't even consider the fact that a plate that's considered "offensive" in one state would be perfectly acceptable in another. For example, religious messages prohibited by state law in Vermont are perfectly acceptable in most southern states. "As long as we have a reliable method for deciding what's allowed and what isn't," Lonce concludes. "I say the more, the merrier." And Lonce and his pals at The Grey Lady need to stop trying to say how the First Amendment should be interpreted for the rest of us.
In today's depressed market, everyone has advice on how to buy or sell a car. This time it's CNNMoney with "6 things never to tell a car salesman." First, never say "I love, love, love this car." That's like chumming the waters before you jump in the shark tank. Next, never say "I need to get a car by tomorrow." That's like chumming the waters before you jump in the shark tank. Don't tell the sales pro "I need a monthly payment of…" That's like chumming the waters before you jump in the shark tank. Also, the salesman doesn't need to know "My trade-in's outside." And if you're thinking about leasing don't admit "I don't know anything about leasing." And even if you're the dweeb on the freecreditreport.com commercials, don't let them know you think "My credit's a little spotty." That's like… I think you get the picture (and it is the last one in the series). The bottom line: do your homework before you step inside the seventh circle of Hell a car dealership. In case you didn't know.
The Washington Post's Annys Shin [via The News Tribune] wins the prize for the best parsing of the initials SUV: Simply Unwanted Vehicles. True dat. Full-sized SUV prices have dropped 24 percent since last year; used Chevy Suburbans have devalued as much as $8k in the past six months. With that in mind, SmartMoney has five ways to help panic-stricken owners unload their automotive albatross. First, "be your own salesperson." Since dealerships don't want SUVs and can't sell what they have, seems sensible enough. Next, "price it right." Just make sure you use chalk or pencil; values are still dropping like a stone thrown in a deep dark well. Then "advertise online." Don't worry about the fact that AutoTrader.com's SUV ads have jumped 18 percent. You should also "provide plenty of details." If you're selling something no one wants, drowning them in minutiae just might work. Finally, "build credibility" with prospective buyers by providing maintenance records (provided you had the foresight to keep them) and a Carfax report (provided you aren't selling a rebuilt wreck). Whatever you do, maintain a positive attitude. Make the [theoretical] buyer believe he really wants to assume your liability– in the same way a cheerleader tries to get the crowd on their feet when their team is down by 45 points in the fourth quarter. Hence the picture.
Far be it from me to overuse a metaphor, but you know things are bad for the home team when the head cheerleader starts following the other team's plays. Right in the heart of UAW-land, Detroit News' Auto Editor Manny Lopez [reads TTAC] and mulls over the question of what constitutes an "American" car. His answer will probably piss off the Level Field Institute: as long as it's built in America with American parts, it doesn't really matter where the parent company resides. Waxing philosophical, he asks "what's more American: a Dodge Caravan built in Canada with fewer American parts or a Toyota Sienna chock full of Red, White and Blue components and built in Indiana [Ed. By non-union labor]?" Continuing along the same lines, Manny also wants to know if it's "more important to have the dollars flow back to Detroit, Dearborn or Auburn Hills or to employ American workers?" He'd better be careful or the home team fans may demand he turn in his pom-poms.
Want to save the equivalent of 30 cents a gallon on gas? The Detroit News says anyone can realize those savings if they just drive five miles per hour slower than usual. In fact, Department of Energy researcher David Greene estimates you could save $12 by driving 10 mph slower on a 500-mile trip. The tradeoff: it would add one hour to the trip (that you'll never get back). Don't get too overly zealous with your penny-pinching, though. The AAA warns that driving slower than 55 when the rest of the traffic is zooming past at 70 – 75 is "a recipe for a potential crash." Drivers in some states won't have to worry about that, though– Alabama, Michigan, Minnesota and Vermont are in various stages of considering bills to lower the speed limits on highways, in some cases to 55 mph. We're monitoring sales of CB radios…
"We continue to question whether GM will be able to sustain eight different brands and over 13,000 franchises with less than 20 percent market share." TTAC? Nope. Deutsche Bank analyst Rod Lache, as quoted by the Detroit News. GM's stock fell below $10 a share yesterday, and the prognosis isn't good for the company whose stock has fallen by more than 70 percent in the past year. Even Merrill Lynch analyst John Murphy, described by his peers as "last guy defending the [GM] bunker," said he expected GM's stock to fall to $7 and forecast "significant losses" for GM this year and next. When even the cheerleaders start predicting a losing season, the team doesn't stand much of a chance. It looks like GM could use a new coaching staff, and fast.
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