Though many a dealer knows lengthy long-term financing is a bad deal for all involved, Automotive News reports that attendees at the recent American Financial Services Association’s Vehicle Finance Conference in New Orleans acknowledged that such financing is necessary to do business.
If you should become one of the early adopters who purchase a Cadillac ELR soon, the brand has announced that they will throw in a free charging station as a gift for paying $75,000 over the next 36 to 72 months for the luxury plug-in hybrid.
For the 12 year in a row, the Toyota Camry is the No. 1 best-selling car in the United States, but how long its reign continues will depend on how well its competitors can do in their attempt to dethrone the king of the showroom.
The Great Recession has given us so much since it began five years ago with the fall of Lehman Brothers and Washington Mutual, from underwater mortgages and high unemployment, to bailouts of the financial and automotive manufacturing sectors and credit freezes.
Regarding the last item, a byproduct from said freeze will flood automakers with the potential to retain and steal customers when more and more leases draw to completion in the next year.
In August, Ford Motor Company started production of their mid-sized Fusion sedan at its Flat Rock, Michigan assembly plant, supplementing production in Mexico to keep up with demand.
Remember this piece from the Honda Summer 2008 Hydrogen Collection? It was supposed to point the way to future of green fuel technology before the Tesla brought plug-in sex appeal down the ramp with their Roadster and, later on, the S, as well as the trend of compliance EVs from Chevrolet, Volkswagen and Kia.
But with sales of plug-in hybrids advancing far slower than originally expected regulators are taking another look at alternative ZEV powertrains.
The Hyundai Sonata is the oldest car in its segment and a new model is expected next year. Normally, when a car is about to be replaced by the next generation of that model, automakers usually start increasing incentives to move the metal. Sonata sales are down 11% from last year. Now, Hyundai has slashed production of its midsize car, allowing it to reduce incentives to the second lowest in the segment. Average incentive spending on the Sonata is down to ~$2,200. Only Honda’s Accord, with about $840 in incentives available is discounted less.
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Many dealers are complaining that price differentials between the all new GM pickup trucks and heavily discounted competitors from Ford and Ram are leaving them with disappointing sales results. The new Chevy Silverado and GMC Sierra were launched in June amid heavy incentives from competitive brands. But the trucks, which have been praised by the press, are not moving quickly. Automotive News reports that a Pasadena, Texas dealer says that his supply is up to 170 days, compared to his normal inventory of 110 days supply. A dealer in Austin reports a 120 day supply, up from his norm at 90 days.
Usually, in the U.S. pickup truck market, whichever company has the newest truck normally gets a bump in sales. While it’s hard to get Chevy guys into Fords and vice versa, about 6% of the market does shift to the most recently updated pickup because of businesses making decisions based on dollars and cents, not brand loyalty.
GM is sitting on 4.5 months of slow-moving Volt inventory, says the Detroit News. To make matters worse, production on the 2014 model is about to start. To make a dent into the 140 days of Volt supply, what do you think GM will do? Read More >
Sales won’t be the only thing up when September new car sales are reported today. (Keep an eye on TTAC.) “”Transaction prices in September are the highest in years,” said Jesse Toprak, research chief of TrueCar.com. Read More >
The latest from USA Today suggests now is a good time to buy a Chevy Volt, if that’s what you really want. I checked in with former(?) TTAC scribe Captain Mike Solo, currently helping someone lease a Volt, and he says about the same: lease for $270 a month, with $1500 down. Which includes the government tax credit built into the residual…probably. So what does this all mean? Read More >
The Globe and Mail’s Greg Keenan explored an interesting conundrum that Canadian governmental officials are facing; is it worth subsidizing auto industry manufacturing facilities, even with austerity programs in place?
If you are thinking of buying some stock of an automaker, now could be a good time. Not because of the strong sales. Because of dropping incentives, paired with strong sales. This indicates a strong first quarter, which should drive up stock prices. Read More >
GM’s turn-around hinges on a market share above 19 percent, board member Stephen Girsky said at an industry meeting in October 2009. “The public plan is 19 percent and change. That is what everything is being based on,” Girsky said during a panel discussion at a conference at Columbia Business School. Reuters was taking notes.
In the 3rd quarter of 2009, GM had a market share of 19.5 percent. The share climbed to 21.8 percent in January 2011, and eroded ever since. Read More >
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