Street Insider reports that General Motors delivered 154,877 vehicles in November, down 41 percent compared with a year ago. That makes for some of the worst sales numbers in the US, leaving GM PR with nothing to get traction on despite aggressive Red Toe Tag Sale incentives which will continue through January 5. “In November we saw the continuation of the dramatic decline in volume for the industry. Every manufacturer is posting awful numbers and we are no exception,” says GM’s Mark LaNeve in what may be one of the biggest understatements we’ve heard in weeks. GM’s car sales were down 41 percent compared to last November, while trucks were down 44 percent. The only GM vehicle with positive sales growth compared to last November is the much-touted Malibu, which is up 31 percent. Ok, that’s not strictly true. The GMC C/T Series is up 64 percent, at 82 units compared to 50 last November. Needless to say these exceptions won’t save GM from the bleeding across every other model and brand. And, as our Ken Elias points out, the 862,000 models currently sitting on GM lots is “way out of whack relative to trailing sales.” Not good. Read More >
Category: News Blog
TTAC reader Steve Leiter took up our challenge and headed over to the Maryland Port Authority for Chrysler’s bailout begging party. He files this report… “Sorry, no pictures, ran out the door so fast, cell phone was selected specifically such that it does NOT have a camera in it.
The podium’s surrounded by a gray RAM pickup, olive Patriot, red Charger, white Caliber, Sand 300C, red convertible Sebring, Bbue Liberty, and silver Journey. About 90 folks, equally split between ACT employees, suits, and press corps people. 12 of the employees had neon yellow flak-jackets– must be the Stevedores. WJZ-TV, CNN-Political, etc. cameras.
Ford, Lincoln and Mercury dealers reported total sales of 118,818 units this November, down 30 percent compared to a year ago. Ford’s spin on the news is that “estimated industry-wide sales” were down 35 percent, meaning Ford actually gained market share. But let’s look at the reality. The Ford nameplate is down 18.5 percent, with only the Fusion and Focus (+.9 percent, and +15.7 percent respectively) increasing sales compared to a year ago. Even the all-new F150 is down 25.4 percent. Lincoln is down 19.1 percent, and Mercury is down 28.5 percent, as neither brand has a single model that sold better than November of last year. Volvo is down 29.7 percent, with only the C70 enjoying a bump in sales compared to a year ago (+27 percent). Looking at the raw numbers, it’s hard to get too down on Ford’s PR flacks for trying to find something positive in this mess.
Halt! Nothing goes there. Toyota will suspend production in Japan on Dec. 24 and 25. This sounds normal to you? Mind you: They don’t believe in Rudolph in Japan. Toyota will partially halt output of Lexus luxury cars at its Tahara plant in Aichi Prefecture and suspend all production at subsidiary Toyota Motor Kyushu Inc. “It is rare for Toyota to stop all production at a factory,” says an astounded Nikkei (sub.)
Honda submerges emerging market plans: Honda froze a project to raise capacity in Turkey and postponed the launch of its second Indian plant by at least a year, says The Nikkei (sub.) With raised eyebrows, the Nikkei notes that the “cutbacks are now spreading to emerging markets, which are seen as key battlefields for growth.”
European CO2 compromise: The EU member states agreed on a big CO2 compromise for cars, Das Autohaus reports. There will be limits. But not so fast and not so strict. Like in 2012, only 65 percent of new cars should produce less than 120g/100km of the climate-killer. In 2014 it will be 80 percent. 100 percent in 2015. This is a big walk-back from original plans, and the greens are up in arms. The ruling still needs a formal approval.
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Bloomberg reports that Toyota will cut winter bonuses by about ten percent for some 8,700 managers. This is the first time Toyota has reduced bonuses since 1998, as economic headwinds batter even the strongest automakers. Toyota’s profit forecast was cut by 56 percent last month, spurring president Katsuaki Watanabe to create the cost-saving task force. Said hit squad recommended the bonus cuts as well as halving Toyota’s contract workforce by March 31. Watanabe has often warned his firm to beware the symptoms of what he calls “big company syndrome,” in reference to the problems with culture and execution that have reduced GM from its once-dominant position. Compared to Detroit’s production-slashing, brand-reviewing, bailout-mongering approach to hard times, Toyota is looking relatively nimble. Oh, and its projected to earn $5.7b in actual profit this year. It’s not the $18b of a year ago, but at least Watanabe isn’t staring at the possibility of a $1/year salary.
Toyota PR has signed in, reporting that their “Saved by Zero” marketing campaign ain’t saving much. This November, the Japanese automaker’s overall U.S. sales dropped 33.9 percent, from 197,189 to 130,307. Of course, it would have been worse without the zero percent finance deals, which is one scary ass thought. And speaking of frightening, Scion is dead in the water, from xB (-43.8 percent) to tC (-55.1 percent) to xD (-27.5 percent). Still, small dog, small problem. Big dog (Tundra), big problem (-55.9 percent). And that’s nothing as compared to Toyota’s volume sellers, sales of which fell off a cliff. We’re talking Corolla (-12.8 percent) and Camry (-28.2). And for all Congress’ hybrid love, as TTAC predicted (thanks to our tipsters) Prius mania has screeched to a halt. Sales of the gas – electric hybrid fell from last November’s 16,737 to this Turkey month’s 8,660. That’s a 48.3 percent drop. Except for the new LX (up 497.2 percent to 424 vehicles), ToMoCo’s luxury division lost ground across the board, to the tune of -34.7 percent. Clearly, it’s going to be a long, cold winter for everyone in this biz.
In addition to my robust obsession with cars, I’m also very much a fan of new technology. Be it computers, cell phones, wristwatches that wash dishes, or high-powered laser staplers, I’m interested. To keep up to date (especially since I am more of a gadget window shopper), I’m a frequent visitor at a number of the gadget blogs on the web. You might be surprised (though probably not) at the similar themes between these gadget blogs and their commenters with the car blogging community. I’ve got nine of ’em. Read More >
Ford has released its nonclassified report to the Senate Banking Committee today, as CEO Alan Mullaly escapes from Detroit in his Escape hybrid. The Detroit Free Press has posted the entire report in PDF format, and it’s 33 pages of good stuff. The big news: despite insisting that federal funds are a “backstop,” Ford is asking for more money than it did last time Mr. Mullaly went to Washington. Specifically, Ford offers three scenarios, ranging from a short-term recovery (14.5m total US market in 2010 = $5b in support), to normal (12.5m in 2010 = $9b) to short-term worsening (11m units in 2010 = $13b). Ford’s “recommended terms of the loan would be: (i) at government borrowing rates; (ii) a revolving credit line with a ten year duration; and (iii) with additional conditions consistent with the TARP legislation.” When was the last time you “proposed” your own loan terms?
Fisker seems to be getting a handle on the whole car-company routine, joining the now-proud tradition of leaking images to the web to build hype leading up to a launch. Of course that’s a little bit harder when your production model is nearly unchanged from the concept, but these considerations don’t bother anyone else in the industry. Anyway, the $88k Karma is said to get 50 miles of all-electric range before its GM Ecotec engine kicks in to generate more juice. Top speed is listed as 125mph, and 0-60 should take 5.8 seconds. Production at Valmet’s facilities in Finland will eventually reach 15k units per year, and the first deliveries will take place in fall 2009. We will bring you complete photos when the Karma debuts in Detroit this January.
When Jonathan Swift’s “A Modest Proposal” was first published, its sustained and unyielding irony lead more than a few to believe that the Irish scribe was actually advocating for cannibalism and infanticide. With the benefit of nearly 300 years, we can now recognize Swift’s detailed plan to serve the children of Ireland’s poor to their landlords as biting satire. Reading the LA Times‘ Dan Neil’s own “modest proposal,” one can’t help but go back and check for signs of self-aware irony (a far less scarce resource than it was in 1729). Sadly, there’s no much to go on, leading me to believe that Dan Neil actually wants the United States federal government to purchase General Motors. Or is there? After the usual litany of Big 3 woes, Neil “modestly proposes” as US takeover of GM. He then correctly anticipates the “gall of free-market ideology rising” in his readers, and he breaks down the case. And it’s off to irony no-mans land. Read More >
And there we were saying Ford doesn’t have branding. Anyway, fun is a serious business, apparently. Bloomberg reports that Ford has been trying to trademark the word “FUN” (all caps?) in connection with “some” of its European automobiles since 2005. In 2007, the EU courts said, in effect, geddowdahere. And while we’re dealing with the surreal, how about this: the original case was brought in German. Spaß; Freude; Scherz; Lachen; Gelächter? Bloomberg seems to think that today’s ruling clears the way for Ford to resume its claim on FUN, but I think they got it exactly backwards. The adjudication itself is, remarkably, a hoot. Seriously, the jump is well worth your time, as it includes some language Bloomberg neglected to mention. Where’s their sense of fun?
I’m a bit gun-shy after mistakenly accusing NBC of pulling the SNL sketch pillorying the Big 2.8’s Congressional bailout begging from YouTube for ad revenue-related reasons. So I’m not going to raise the specter of conspiracy for a 404 message on The Australian newspaper. I’m sure the story on the Pontiac G8 disappeared due to technical reasons. Or something. Thankfully, one of our B&B cut and pasted the piece into an email. “Holden Exports Facing Stop Sign” contemplates the prospect of GM axing Pontiac as part of its pursuit of bailout billions. “The Holden-built Pontiac G8 is part of the problem, as it is struggling to find buyers. Just 13,000 have been bought since shipments began at the beginning of the year, and inventory levels exceed 11,000 cars — or 283 days’ supply — the third-worst for any GM model, according to specialist US website Automotive News. Potential Pontiac G8 buyers must now factor in an uncertain future for the brand. ‘It’s a challenging business environment for carmakers around the world,’ said a spokesman for GM Holden, Jonathan Rose. ‘We’re very proud of our export program.’ He denied Holden was adding to Pontiac’s woes, and said export shipments were continuing… The company expected US demand for Pontiac G8s to boost exports, but recently announced plans to shut its factory for 25 days in the first quarter next year, in addition to its four-week Christmas holiday closure.”







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