Just two short months after Hyundai CEO John Krafcik warned that a brewing incentive and price war was “a step backward for the industry” and “short-term thinking in a long-term process that hurts manufacturers and consumers,” it seems that any signs of a price war are over. But before you rush to give a certain earthquake/tsunami combo credit for the entire situation, consider for a moment that Ford has now joined Toyota in raising prices while insisting it has nothing to do with supply interruptions. A Ford spokesman tells the Detroit News that
This is the second price increase this year [Ed: Ford bumped prices by $130 in January] but has been in the works for months as the industry faces higher commodity costs
Meanwhile, Ford is also the only Detroit-based manufacturer to bring incentives below nine percent of its average transaction price, as its March incentives were down nearly 10 percent compared to March of 2010. Between Ford and Toyota bringing up prices and Hyundai keeping sales growth strong despite low-low incentives, the pressure is mounting on GM, Chrysler, Nissan and Honda. Will they continue to trade margins for volume, or will they take the opportunity to bump prices as Japanese parts shortages continue to play out?
The 2011 Model Year will probably not go down as one of the better lineups in the Chrysler brand’s history, consisting of only four models from three nameplates. But, according to Automotive News [sub] it will probably be one of the most exclusive and rarest years for the Chrysler Group, which includes Chrysler, Dodge, Ram and Fiat, as the 2012 model-year will go into production as soon as dealers receive the “one or two buildouts” of 2011 vehicles.
Our daily run-down of delays, shut-downs, shortages, and postponements, triggered by the March 11 tsunami in Japan.
Toyota informed its U.S. dealers and workers to expect production slowdowns due to parts shortages. “Today, we communicated to team members, associates and dealers here that some production interruptions in North America are likely. It’s too early to predict location or duration,” Toyota said in a statement. Most, but not all of the parts for vehicles built in North America are sourced here. Wall Street Journal
Toyota expects to idle its pickup truck assembly plant south of San Antonio. “We are informing our team members that, with the situation over in Japan, it is likely that we will see some nonproduction days coming,” Craig Mullenbach, spokesman for Toyota’s San Antonio plant, said. Mullenbach added that parts needed to build the full-sized Tundra and mid-sized Tacoma pickup truck in San Antonio are running out. Reuters
Honda will suspend car production at its Japanese factories until at least April 3. Honda will temporarily transfer some functions such as car development and procurement out of its badly damaged R&D center in Tochigi. Reuters
The international auto manufacturers association OICA finally got around to publishing its 2010 production statistics by country. Officially still provisional, but don’t expect material change. Publication of the all important by manufacturer part will probably take well into summer, but you, esteemed TTAC reader, are well ahead of the game.
Before we delve into the numbers, some kudos: Read More >
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