February 13, 2009
Three New York City Area Parking Companies Offer Discounts to smart fortwo Owners
smart fortwo Owners Receive Half-Off Rates When Parking at Hundreds of New York City Area Facilities and Airports.
smart USA Distributor LLC (a subsidiary of Penske Automotive Group, Inc., and headquartered in Bloomfield Hills, Michigan) has announced agreements with three New York City area parking companies. Meyers Parking, Icon Parking Systems and AviStar Airport Parking now offer parking discounts to smart fortwo owners. Owners of the revolutionary vehicle will receive a 50 percent discount off daily and monthly posted parking rates at hundreds of locations across New York City.
"Our arrangement with the parking companies gives smart owners the best of both worlds: the ability to park at a discounted price, along with the ease to park almost anywhere," said Dave Schembri, President of smart USA. "The smart fortwo is helping New Yorkers change the way they park and navigate congested city streets, while offering great fuel economy, safety and functionality."
At 61 inches wide and 106 inches long, the smart fortwo is a practical solution for New Yorkers looking to find an easy way to park in New York City. In addition to being easy to park, the vehicle is attracting a significant number of buyers who want a solution to volatile gas prices, a way to reduce their environmental footprint and beat urban congestion in a package that is fun to drive.
Meyers Parking first offered half price parking to smart fortwo owners beginning last September, and the program was renewed for 2009. Meyers Parking is the official parking garage of Madison Square Garden, the New York Rangers, New York Knicks and New York Liberty. Meyers also has the largest public garages in Times Square, on the Upper East Side and the Empire State Building area.
"We are pleased to continue our '50 percent off' arrangement for smart fortwo owners in 2009. Meyers Parking knew it was only a matter of time before other parking companies would provide similar discounts; as it is fair and makes total sense," said Michael Carolan, Director of Operations for Meyers Parking. "We are pleased to have been the innovator of this '50 percent off' concept and we are very happy for smart owners as they now have options to park in areas where Meyers Parking facilities are not located at attractive rates."
Icon Parking Systems has more than 200 parking facilities in Manhattan. Many of Icon's locations can be found near famous New York City landmarks as well as residential areas throughout the city. smart fortwo owners are entitled to half price parking on all day, night and weekend rates and specials.
"It's no surprise that limited parking supply combined with increased development is contributing to congestion in the City. There is also a growing trend among businesses and consumers alike to be more mindful of their impact on the environment and community," said Paul Regan, Vice President, Icon Parking Systems. "By partnering with smart USA, we are hoping to leverage our resources to confront some of these challenges. It makes perfect sense to reward customers who drive vehicles that are economical, environmentally friendly, occupy less space and are relatively easy for operators to park."
For smart fortwo owners traveling by plane out of the New York City area, AviStar Airport Parking, a wholly owned subsidy of Parking Company America Airports, LLC (PCAA) is offering half price parking on the daily rate at both JFK and LaGuardia Airports.
smart USA has sold more than 26,000 smart fortwos since January 16, 2008. Currently there are approximately 4,000 smart owners in the metropolitan New York market. There are seven smart centers located in the tri-state area including: Manhattan, Roslyn, Smithtown and White Plains in New York, Edison and Englewood in New Jersey and Fairfield, Connecticut.
Source: smart USA
|GlobalGiants.com|
"Bravo smart fortwo!"
© GlobalGiants.Com
Edited & Posted by Editor | 9:43 AM | Link to this Post
January 23, 2009
Honda Ranks Highest among Manufacturer Web Sites in Satisfying New-Vehicle Shoppers -- J.D. Power
Honda ranks highest among automotive manufacturer Web sites for usefulness in new-vehicle shopping, according to the J.D. Power and Associates 2009 Manufacturer Web Site Evaluation Study(SM) (MWES)--Wave 1 released today.
The semi-annual study measures the usefulness of automotive manufacturer Web sites during the new-vehicle shopping process. New-vehicle shoppers evaluate Web sites in four key areas: appearance, speed, navigation and information/content.
Honda ranks highest with an index score of 882 on a 1,000-point scale--marking a 14-point increase from the last wave of the study, which was released in June 2008. Following Honda in the rankings and rounding out the top five automotive Web sites are Porsche (867), Mitsubishi (866), Kia (865) and Acura (862).
"Honda resolved some minor navigation issues on their Web site, which helped them improve upon their fourth-place ranking in the previous wave," said Scott Kane, senior manager of marketing/media research at J.D. Power and Associates. "Currently, the Honda Web site performs well in all measures and demonstrates particular strength in speed, navigation and demonstrating options, features and specifications."
The study finds that overall site usefulness for the industry as a whole has declined by nine points since June 2008, with 16 manufacturer Web sites demonstrating double-digit decreases. This marks the largest wave-over-wave decrease since the study's inception ten years ago. Overall, the largest declines occur within the "determine monthly payment" and "compare vehicles" attributes of the information/content measure.
"Because of changes in the economic environment, many of today's new-vehicle shoppers are in a much different --and more challenging--financial position than were shoppers in years past, and many auto manufacturers have not prepared their Web sites accordingly," said Kane. "For new-vehicle shoppers, having the ability to go online to easily compare vehicles from various manufacturers, figure out monthly payments and find the best deal possible has always been important. However, in these tough financial times, these kinds of considerations have an even greater impact on the shopping process."
In addition, as marketing budgets for automakers tighten, manufacturer Web sites are becoming less capable of meeting the increasing expectations of shoppers. For example, as some manufacturers have refreshed or redesigned their models, they have limited the variety of vehicle images on their Web sites, or have simplified their photo and video offerings.
Photo: 2010 Honda Insight EX
"Likely due to budget cuts, some sites that once had beautiful images in city and off-road settings from multiple angles showing off their vehicles' capabilities--things that resonated with consumers--have scaled back on the images offered," said Kane. "A hurdle that manufacturers are facing involves obtaining the high-quality content they need for their Web sites--such as images, video and animations--in a cost-effective way. Finding synergies within their organizations as they create content for various marketing needs--both online and offline--will be critical in continuing to meet new-vehicle shoppers' needs."
The study also finds that the more useful a manufacturer Web site is, the more traffic it is likely to drive to dealerships.
"While it may be tempting for manufacturers to scale back development and maintenance of their Web sites, improved Web site design can translate into a higher volume of sales and a positive return on investment," said Kane. "Now, more than ever, it is essential for manufacturers to be strategic about their marketing efforts to capture their share of the diminishing number of new-vehicle shoppers."
The 2009 Manufacturer Web Site Evaluation Study--Wave 1 is based on evaluations gathered in November 2008 from more than 11,400 new-vehicle shoppers who indicated they would be in the market for a new vehicle within the next 24 months.
Manufacturer Web Site Ranking
(Based on a 1,000-point scale)
• Honda ---------- 882
• Porsche ---------- 867
• Mitsubishi ---------- 866
• Kia ---------- 865
• Acura ---------- 862
• Lincoln ---------- 861
• BMW ---------- 859
• Lexus ---------- 859
• MINI ---------- 859
• Mazda ---------- 856
• Infiniti ---------- 853
• Mercury ---------- 852
• Jeep ---------- 851
• Ford ---------- 850
• Suzuki ---------- 848
• Cadillac ---------- 846
• Saturn ---------- 845
• Subaru ---------- 845
• Toyota ---------- 845
• Chrysler ---------- 841
• Dodge ---------- 840
• Industry Average ---------- 840
• HUMMER ---------- 837
• Mercedes-Benz ---------- 837
• Nissan ---------- 836
• Land Rover ---------- 835
• Saab ---------- 834
• Hyundai ---------- 833
• Volvo ---------- 833
• Volkswagen ---------- 829
• Buick ---------- 827
• Chevrolet ---------- 827
• GMC ---------- 821
• Jaguar ---------- 813
• Pontiac ---------- 801
• Audi ---------- 793
• smart ---------- 789
• Scion ---------- 773
Source: J.D. Power and Associates
|GlobalGiants.com|
"Do not frustrate the earnest visitors to the localized Web site of your car brand by not noticeably providing there the addresses of your relevant dealers."
© GlobalGiants.Com
Edited & Posted by Editor | 12:11 PM | Link to this Post
January 14, 2009
Detroit Auto Show 2009
Photo: Detroit - American Honda Motor Co., Inc., introduces the production version of the all-new 2010 Honda Insight, a dedicated gasoline-electric hybrid vehicle, during its world debut at the North American International Auto Show in Detroit. (American Honda Motor Co., Joe Wilssens)
Photo: Unveiled at the North American International Auto Show is the Jeep(R) Patriot EV.
Photo: Unveiled at the North American International Auto Show is the Chrysler 200C EV concept.
Photo: A caravan of 2009 Saturn Vue 2-Mode Hybrids departs from the North American International Auto Show in Detroit, Michigan Monday, January 12, 2009 - bound for the upcoming presidential inauguration in Washington, D.C. The caravan will make stops at Ohio State University, Penn State University and Howard University encouraging people to make positive changes to reduce the nation's energy consumption. Once in Washington, the hybrid vehicles will be used to provide courtesy transportation for inaugural events. (Photo by John F. Martin for General Motors)
Photo: General Motors North America President Troy Clarke introduces the 2010 Chevrolet Equinox - making its world debut - at the North American International Auto Show in Detroit, Michigan Sunday, January 11, 2009. The Equinox compact crossover will deliver an estimated highway fuel economy of 30 mpg with its new 2.4L direct injection engine. It will go on sale in mid-2009. (Photo by John F. Martin for General Motors)
Photo: The 2010 Buick LaCrosse luxury sedan makes its world debut at the North American International Auto Show in Detroit, Michigan Sunday, January 11, 2009. The Buick LaCrosse will feature all wheel drive, a suite of advanced intelligent personal technologies and safety features, and a choice of two fuel-saving V-6 engines. LaCrosse production will begin this summer at the Fairfax Assembly facility in Kansas City, Kansas. (Photo by John F. Martin for General Motors)
Photo: The next generation 2010 Cadillac SRX makes its world debut at the North American International Auto Show in Detroit, Michigan Sunday, January 11, 2009. The SRX mid-size luxury crossover is expected to deliver a 25-percent reduction in hydrocarbon emissions while providing fuel economy in the mid-20's. Production begins in the second quarter of 2009, with dealer availability shortly thereafter. (Photo by Jeffrey Sauger for General Motors)
Photo: General Motors employees, retirees, dealers and suppliers cheer the Chevrolet Beat concept during a media event at the North American International Auto Show in Detroit, Michigan Sunday, January 11, 2009. Chevrolet announced production plans for a new vehicle - the Chevrolet Spark - a fuel-efficient mini-car based on the Beat concept that will arrive in dealer showrooms in 2011. (Photo by John F. Martin for General Motors)
Photo: As part of the Mercedes-Benz New Year's Reception in Detroit, Daimler CEO Dr. Dieter Zetsche presented the latest version of the successful E-Class in front of over 650 trade journalists from around the world.
Photo: The Ford Fiesta at the North American International Auto Show. Before the Ford Fiesta's U.S. launch in 2010, consumers across the country will have an opportunity to drive, experience and learn all about Ford's newest global vehicle. Under a program coined 'Fiesta Movement', Ford will select up to 100 tech-savvy vehicle enthusiasts to drive a Fiesta and then relate their experiences through social media sites such as Facebook, FlickR and YouTube.
Photo: The Lincoln C Concept was introduced at the North American International Auto Show 2009. It is powered by a sophisticated human machine interface (HMI) and forward-thinking in-car connectivity technologies.
Photo: Ford's Battery Electric Vehicle hits the streets of Detroit at the North American International Auto Show, giving media from around the world a chance to put it to the test.
|GlobalGiants.com|
"The financial woes of G.M. and Chrysler have made the Detroit show far more downbeat than in years past. Persistent questions about their financial situations have tested the patience of executives at both companies."
-- From the article "Wagoner Says G.M. Is Working on an Overhaul Tied to the Bailout" in The New York Times, January 12, 2009 (NYTimes.com)
"As to buying from Detroit, that is another question.
While I have occasionally looked at Detroit product when buying a new car, I have always found that they were not the equal of foreign products in many areas, from design to ergonomics to comfort to dependability to value. Which is why I have only owned Japanese cars since I purchased my 1st new car in 1979.
With the current financial circumstances that the Detroit carmakers are in, there is NO WAY that I would risk buying a Detroit product. Who knows if they will be in business next year?"
-- A Reader's Comment in response to the article "How to Get Detroit Selling Again" in The New York Times, January 12, 2009 (NYTimes.com)
"A new automobile MUST BE sold with the Essential Guarantee of Continuing Service Facility and Continuing Spare Parts Availability.
Can a Detroit Auto Company provide that Essential Guarantee today?
NO, IT CANNOT."
© GlobalGiants.Com
Edited & Posted by Editor | 5:49 AM | Link to this Post
January 9, 2009
Daimler AG to introduce "smart fortwo BRABUS" in the USA in January 2009
Photos: smart fortwo BRABUS
Mercedes-Benz USA (Daimler AG) has reported that its sales for the smart USA recorded 2,341 sales in December 2008.
According to Daimler AG, "Year-to-date sales for 2008 are an incredible 24,622 units. smart USA achieved this impressive sales volume in its first year of business in the U.S. market. American response indicates the micro-car segment is a viable transportation option and the smart fortwo is the right car at the right time in the U.S."
The smart fortwo offers a powerful combination of outstanding fuel efficiency, innovative safety features, environmental friendliness and excellent value.
The smart fortwo BRABUS will go on sale in the United States this January. There are currently 74 smart centers open in 35 states.
The smart brand is entering another automotive market following its successful launch in the USA. Starting in April 2009, the smart fortwo will be available in Brazil. This was announced by the company at the São Paulo Auto Show, where the two-seater celebrated its public debut.
Photo: smart fortwo in China
According to Daimler, because of its outstanding features and its fresh design that combines functionality with joie de vivre, the smart fortwo has become a sought-after cult car in many countries. The sales figures also demonstrate this. Since the start of 2008 the number of smart fortwos delivered to customers worldwide rose by 53 percent to 101,900 cars.
Source: Daimler AG
|GlobalGiants.com|
Edited & Posted by Editor | 12:20 PM | Link to this Post
December 18, 2008
2009 NORTH AMERICAN INTERNATIONAL AUTO SHOW
The North American International Auto Show will open its doors in less than 30 days and plans continue to build anticipation for this flagship event in the automotive industry. On Jan 11th global eyes will turn to Detroit as the press days open the show with 44 product unveilings.
"Detroit will soon be welcoming more than 6,000 national and international media to the 2009 NAIAS," said Joe Serra, co-chair for the 2009 NAIAS. "While the automotive industry is in the midst of an obvious time of adjustment, the interest in the future of cars has only increased. What better place to see the future of automotive than in Detroit."
The public and media will be treated to a number of world debuts of highly anticipated vehicles from exhibitors such as General Motors, Chrysler, Kia, Volkswagen, Audi, Honda and Toyota. As the environmental impact of vehicles increasingly moves to the forefront of buyers' minds, many of the debuts will include vehicles designed with a 'green' mindset including the 2010 Toyota Prius, and 2010 Honda Insight.
One of the largest media events in North America, the NAIAS is the only auto show in the United States to earn an annual distinguished sanction of the Organisation Internationale des Constructeurs d'Automobiles, the Paris-based alliance of automotive trade associations and manufacturers from around the world.
Photo: Detroit, Mich.: At the 2008 North American International Auto Show, attendees enjoy all the sights and sounds of Public Days.
NAIAS 2009 EXHIBITOR PRESS CONFERENCE SCHEDULE
(THIS SCHEDULE IS SUBJECT TO CHANGE)
Sunday, January 11, 2009
7:00 am Media Credential Office Opens / Oakland Concourse
8:30-8:55 am Johnson Controls / D2-15
9:00 am Show Floor Opens
9:10-9:30 am NAIAS 2009 Opening Ceremony / Michigan Hall Stage
9:30-10:00 am North American Car and Truck of the Year Awards
10:10-10:35 am General Motors
10:50-11:15 am Lexus / Riverview Ballroom
11:25-11:50 am Ford / Cobo Arena
12:00-12:25 pm Chrysler
12:35-1:00 pm BMW
1:10-1:35 pm Volkswagen
1:45-2:10 pm Bentley
2:20-2:45 pm Kia
2:55-3:20 pm Audi
3:30-3:55 pm MINI
4:05-4:30 pm Lamborghini
4:40-5:05 pm Subaru
5:15-5:40 pm Jaguar / Main Show Floor
5:50-6:15 pm Volvo / Main Show Floor
Monday, January 12, 2009
7:00 am Show Floor Opens
8:30-8:55 am Michelin Corporate
9:05-9:30 am Lincoln-Mercury / Cobo Arena
9:40-10:05 am Maserati
10:15-10:40 am General Motors
10:50-11:15 am BYD
11:30-11:55 am Toyota / Riverview Ballroom
12:10-12:35 pm Brilliance
12:45-1:00 pm Lamborghini Fashion Show / Lamborghini stand
1:10-1:35 pm General Motors
1:45-2:10 pm Fisker
2:20-2:45 pm Revenge Designs
2:55-3:20 pm Michelin Challenge Design / Michigan Hall
3:30-3:55 pm Alpine / O2-44
Tuesday, January 13, 2009
7:00 am Show Floor Opens
10:00-10:25 am DENSO / Michigan Hall Stage
10:35-11:00 am Johnson Controls / D2-15
11:10-11:35 am EyesOn Design Awards at the NAIAS / Michigan Hall Stage
"At the Detroit 2009 North American International Auto Show, the first thing the press and the public would wish to know about an Automobile Manufacturer is its CURRENT REPUTATION."
© GlobalGiants.Com
|GlobalGiants.com|
Edited & Posted by Editor | 11:31 AM | Link to this Post
December 15, 2008
RENAULT NEW TWINGO: ENHANCED PERFORMANCE, LOWER FUEL CONSUMPTION
Building on the success of Twingo, which stands out as the best-selling car of its category in France and one of its category's three best-sellers in Europe, Renault has extended the city car's catalogue of diesel engines to include the dCi 85.
Renault Twingo dCi 85 eco2 combines enhanced performance and driving pleasure with low fuel consumption and CO2 emissions. The dCi 85 engine is available for both the Dynamique and GT versions of Twingo and sales are due to start in France on January, with prices starting from €14,850.
It is equipped with a low inertia turbo which offers response and motoring enjoyment from low engine speeds in all traffic situations.
Renault Twingo dCi 85 eco2 is available in two versions: Dynamique and GT (depending on market). These two equipment levels both feature a specific dynamic front bumper, while the GT version is recognizable by its satin-finish grey lip spoiler and chrome exhaust tail-pipe. Twingo dCi 85 features independent, sliding rear seats which ensure unmatched cabin space, and comfort.
Twingo is market leader in France and is one of the three best-selling cars of its category in Europe. Launched in June 2007, Twingo is available in 18 west-European countries and its sales continue to grow in Europe. With a total of 108,000 cars sold since January 2008, Twingo's share of the west-European market is almost 10%, which is double than what it was in 2006.
Twingo is also turning its attention to international markets and the month of November saw its introduction into both Japan and South Africa.
|GlobalGiants.com|
Edited & Posted by Editor | 10:32 AM | Link to this Post
December 11, 2008
GM'S COMMITMENT TO THE AMERICAN PEOPLE
Photo: Team Chevy NASCAR driver Kevin Harvick takes the Chevrolet Equinox Fuel Cell vehicle for a test drive after being shown its General Motors advanced technology Friday, August 29, 2008 in Fontana, California. (General Motors News Photo) (United States)
Photo: Chevrolet Volt Director of Design Bob Boniface (left) shows off the Chevrolet Volt to media as the vehicle makes its West Coast debut at the Los Angeles Auto Show in Los Angeles, California Wednesday, November 19, 2008. The Volt delivers up to 40 miles of gasoline and emissions-free electric driving with the extended-range capability of hundreds of additional miles. (General Motors News Photo) (United States)
Following is GM's letter published in Automotive News :
GM'S COMMITMENT TO THE AMERICAN PEOPLE
"We deeply appreciate the Congress considering General Motors' request to borrow up to $18 billion from the United States. We want to be sure the American people know why we need it, what we'll do with it and how it will make GM viable for the long term.
For a century, we have been serving your personal mobility needs, providing American jobs and serving local communities. We have been the U.S. sales leader for 76 consecutive years. Of the 250 million cars and trucks on U.S. roads today, more than 66 million are GM brands -- nearly 44 million more than Toyota brands. Our goal is to continue to fulfill your aspirations and exceed your expectations.
While we're still the U.S. sales leader, we acknowledge we have disappointed you. At times we violated your trust by letting our quality fall below industry standards and our designs become lackluster. We have proliferated our brands and dealer network to the point where we lost adequate focus on our core U.S. market. We also biased our product mix toward pick-up trucks and SUVs. And, we made commitments to compensation plans that have proven to be unsustainable in today's globally competitive industry. We have paid dearly for these decisions, learned from them and are working hard to correct them by restructuring our U.S. business to be viable for the long term.
Today, we have substantially overcome our quality gap; our newest designs like the Chevrolet Malibu and Cadillac CTS are widely heralded for their appeal; our new products are nearly all cars and "crossovers" rather than pick-ups and SUVs; our factories have greatly improved productivity and our labor agreements are much more competitive. We are also driven to lead in fuel economy, with more hybrid models for sale and biofuel-capable vehicles on the road than any other manufacturer, and determined to reinvent the automobile with products like the Chevrolet Volt extended-range electric vehicle and breakthrough technology like hydrogen fuel cells.
Until recent events, we felt the actions we'd been taking positioned us for a bright future. Just a year ago, after we reached transformational agreements with our unions, industry analysts were forecasting a positive GM turnaround. We had adequate cash on hand to continue our restructuring even under relatively conservative industry sales volume assumptions. Unfortunately, along with all Americans, we were hit by a "perfect storm." Over the past year we have all faced volatile energy prices, the collapse of the U.S. housing market, failing financial institutions, a stock market crash and the complete freezing of credit. We are in the midst of the worst economic crisis since the Great Depression. Just like you, we have been severely impacted by events outside our control. U.S. auto industry sales have fallen to their lowest per capita rate in half a century. Despite moving quickly to reduce our planned spending by over $20 billion, GM finds itself precariously and frighteningly close to running out of cash.
This is why we need to borrow money from U.S. taxpayers. If we run out of cash, we will be unable to pay our bills, sustain our operations and invest in advanced technology. A collapse of GM and the domestic auto industry will accelerate the downward spiral of an already anemic U.S. economy. This will be devastating to all Americans, not just GM stakeholders, because it would put millions of jobs at risk and deepen our recession. By lending GM money, you will provide us with a financial bridge until the U.S. economy and auto sales return to modestly healthy levels. This will allow us to keep operating and complete our restructuring.
We submitted a plan to Congress Dec. 2, 2008, detailing our commitments to ensure our viability, strengthen our competitiveness, and deliver energy-efficient products. Specifically, we are committed to:
• produce automobiles you want to buy and are excited to own
• lead the reinvention of the automobile based on promising new technology
• focus on our core brands to consistently deliver on their promises
• streamline our dealer network to ensure the best sales and service
• ensure sacrifices are shared by all GM stakeholders
• meet appropriate standards for executive pay and corporate governance
• work with our unions to quickly realize competitive wages and benefits
• reduce U.S. dependence on imported oil
• protect our environment
• pay you back the entire loan with appropriate oversight and returns
These actions, combined with a modest rebound of the U.S. economy, should allow us to begin repaying you in 2011.
In summary, our plan is designed to provide a secure return on your investment in GM's future. We accept the conditions of your loan, the commitments of our plan, and the results needed to transform our business for long-term success. We will contribute to strengthening U.S. energy and environmental security. We will contribute to America's technical and manufacturing know-how and create high quality jobs for the "new economy." And, we will continue to deliver personal mobility freedom to Americans using the most advanced transportation solutions. We are proud of our century of contribution to U.S. prosperity and look forward to making an equally meaningful contribution during our next 100 years."
"GM's foregoing appeal to the U.S. taxpayers leaves a negative impression on the shareholders and on the Investors-in-Waiting -- the key players that matter the most. The appeal makes no sense to them. They are looking for any tangible positive catalysis at GM.
If General Motors Corporation emboldens the shareholders and the Investors-in-Waiting by any courageous rational move, that would enable it to pull itself through."
© GlobalGiants.Com
"G.M. said it planned to focus on four core brands -- Chevrolet, Cadillac, Buick and GMC -- and sell, eliminate or consolidate the Saturn, Saab, Hummer and Pontiac brands.
Despite having downsized its operations in the last three years, G.M. said it would cut more than 20 percent of its remaining jobs, shut nine factories, seek to renegotiate the terms of $66 billion in debt, and push to reopen contract talks with the United Automobile Workers to reduce labor costs."
-- Article in The New York Times
"Bankruptcy, whether it's structured or not, would destroy demand for that company's vehicles and put dealers out of business."
-- Annette Sykora, Chairman of the National Automobile Dealers Association
"The terms of the loans will require auto companies to demonstrate how they would become viable. They must pay back all their loans to the government, and show that their firms can earn a profit and achieve a positive net worth. This restructuring will require meaningful concessions from all involved in the auto industry -- management, labor unions, creditors, bondholders, dealers, and suppliers.
In particular, automakers must meet conditions that experts agree are necessary for long-term viability -- including putting their retirement plans on a sustainable footing, persuading bondholders to convert their debt into capital the companies need to address immediate financial shortfalls, and making their compensation competitive with foreign automakers who have major operations in the United States. If a company fails to come up with a viable plan by March 31st, it will be required to repay its federal loans.
The automakers and unions must understand what is at stake, and make hard decisions necessary to reform. These conditions send a clear message to everyone involved in the future of American automakers: The time to make the hard decisions to become viable is now -- or the only option will be bankruptcy."
-- President George W. Bush on the administration's plan to assist U.S. auto makers. December 19, 2008.
Edited & Posted by Editor | 2:55 AM | Link to this Post
December 10, 2008
DuPont Automotive Color Popularity Report: White is Most Popular Color
Photo: The 56th annual DuPont Color Popularity report show white and white pearl coat remain the top color choice for North American consumers for the second year in a row.
The just published 2008 DuPont Automotive Color Popularity Report says white is the top vehicle color choice in North America for the second straight year, and is a strong player globally, with "white effects" allowing consumers to differentiate cars subtly to express their individuality. Black and silver with effects also turned in a strong performance globally. The term "effects" refers to special pigments that lend a pearl or iridescent appearance to coatings.
White and white pearl scored 16 and 4 percent, respectively, black and black effect scored 11 percent and 6 percent, while silver, which led the pack for six consecutive years, garnered a 17 percent share of the North American market.
Photo: Blue hues, such as seen in the Saturn Aura, are increasingly popular according to the 2008 DuPont Automotive Color Popularity Report
A leading supplier of coatings to the global automotive market both for new cars and in the collision repair industry, DuPont this year broadened the global scope of the authoritative Automotive Color Popularity Report to include specific data from emerging markets India and Russia. The automotive industry is expanding rapidly in both countries.
North American color choice highlights several trends. First, there is a continuing convergence of color choice globally with color preferences becoming more homogeneous across the globe. Additionally, DuPont continues to report white as a "palette cleansing" color signaling a pause after a long running trend and in advance of a new trend. The 2007 DuPont Automotive Color Popularity Report announced the end of silver's seven year reign.
Photo: Blue hues, such as seen in the Kia Sportage, are increasingly popular according to the 2008 DuPont Automotive Color Popularity Report
"We're seeing basic colors like black, white and silver continuing in the lead but consumers are looking for differentiation with tri-coat and other effects," said Karen Surcina, color marketing manager -- DuPont Performance Coatings. "These colors and effects provide a higher degree of customization and luxury-effect which allow consumers a conservative differentiation from the traditional color palette." A tri-coat paint system consists of a basecoat, a midlayer which contains the color and specialized "effect" pigments followed by a clear coat.
"While black, white and silver continue to remain strong, we are seeing interesting trends developing," Surcina continued. "The popularity of true chromatic colors such as blue and red are on the rise, with blue growing worldwide as consumers look to more environmental themes and lifestyles."
Photo: The 2008 DuPont Automotive Color Popularity Report shows a strong preference across the globe for black effect colors, like the Black Magic on the 2009 Volkswagen GTI, which provides a unique customized appearance.
"Blue is being utilized as the 'new green' because it is well understood by people all over the world that blue can also represent the preservation of nature," said Leatrice Eiseman, executive director of the Pantone Color Institute and author of Color: Messages and Meanings. "Imagine a clear blue sky mirrored in a pristine blue lake and you will get the picture. It is a universal favorite."
Global Convergence and Regional Differentiation
The global review of color popularity reveals that preferences are converging around the world, but within the convergence there is subtle differentiation between markets. As DuPont reported in June 2008, blue is becoming more popular, and currently ranks among consumers in North America with 13 percent of the overall market. Blue has garnered 12 to 13 percent of the market for the past few years and is a top five color choice in every market with the exception of Brazil.
"Neutral colors like silver and light gray shades capture a high volume, but long term they show a decreasing tendency in almost all regions," said Nancy Lockhart, DuPont color designer for North America. "Moving forward, it will be imperative to refresh styling of these popular colors with different effects that can restore their popularity."
Europe
Europe is dominated by the popularity of black vehicles in all segments. Black with effect, white/white pearl and silver are most popular across the board with a rise in bright reds in this year's report. The rankings remain consistent for black/black effect with 26 percent of the market, silver with 20 percent and gray with 18 percent.
White/white pearl saw a slight increase in popularity, rising from 8 percent last year to 10 percent in 2008. The warm neutral tones of beige and brown regained popularity in 2008, reaching 4 percent -- up from 2 percent last year.
"Current preferences are strongly influenced by ecological concepts, with demand growing for light, pure and sophisticated looks and the strength of blue showing optimism for the future," said Elke Dirks, DuPont color designer for Europe. "In the long term, we believe that European consumers will ask for a more colorful and individualistic palette from car makers."
Russia
Russian color preference shows an overwhelming use of silver at 30 percent, black and red at 14 percent and slight differences between green (13 percent), blue (12 percent) and white (10 percent). Though Russia leans toward the silver and black color spaces, red and green are more popular there than in any other region, demonstrating the diversity of color trends.
Asia
India's market shows a strong preference toward white and white pearl with 17 and 11 percent respectively, followed by silver with 27 percent. As in Russia, strong chroma colors made a good showing with red at 12 percent and blue at 8 percent. Black and black effect with 6 percent and 1 percent, respectively, was even with yellow and gold at 7 percent.
Silver remains exceptionally strong in the Asian countries of China, South Korea, Japan and India. In South Korea silver represents 50 percent of the market, up from 39 percent last year. Silver is the top color with strong growth shown in China as well at 32 percent for 2008, up from 23 percent in 2007. Japan and India report white/white pearl in the top color position (8 and 24 percent and 17 and 11 percent, respectively) with silver making a strong showing with 28 percent in Japan and 27 percent in India.
"Candy white and tri-coat pearl are extremely popular in most of the Asia Pacific area," said Emily Hung, DuPont color designer for the Asia Pacific region. "In Japan we see an overwhelming preference for white pearl or white with effect.
"In India and China we see a wide range of colors offered to attract young buyers to compact cars," Hung said. "Additionally, dark blue metallic is popular and we're fine-tuning a variety of shades for the region."
Mexico and Brazil
White and black are tied for the most popular color in Mexico at 20 percent each, with silver at 17 percent and gray at 13 percent. Following these cool-neutral shades, blue shows strength with 12 percent and red follows at 11 percent. Neutral spaces dominate Brazil with silver (31 percent), black (25 percent), gray (16 percent) and white (11 percent). Red is the most popular chroma color with 8 percent of the market.
DuPont "Time for Color" Trend Show
"Time for Color" is the theme of this year's DuPont global color trend forecast for the auto industry. Time is an important factor in the evolution of color. Consumers are increasingly focused on individuality, expressive car designs, small vehicles and fuel economy. These elements require innovative shades for a futuristic view of technology as it evolves. DuPont presents its annual trend show to automotive designers globally to showcase new trends, color availability and the new coatings technologies available to the market.
Source: DuPont
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Edited & Posted by Editor | 11:29 AM | Link to this Post
December 2, 2008
Ford Motor Company Will Re-Evaluate Its Strategic Options for Volvo Car Corporation
Ford Motor Company has just announced in Dearborn, Michigan that it will re-evaluate strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker.
Ford said the decision to re-evaluate strategic options for Volvo comes in response to the significant decline in the global auto industry particularly in the past three months and the severe economic instability worldwide. The strategic review of Volvo is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan.
"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan," said Ford President and CEO Alan Mulally. "Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."
Ford said the review likely will take several months to complete. In the meantime, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo earlier this year.
Photos: Volvo XC60
"Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." Volvo CEO Stephen Odell said. "We intend to build upon our strong brand heritage and to appeal to our global customers with vehicles like the new XC60 -- the safest car Volvo has ever built. Volvo also will introduce seven low-emission models in 2009, giving us the best environmental product range in the premium segment. We have a strong brand presence in Europe, North America and the Asia Pacific region, and are growing in key markets such as China and Russia, where we are the leading premium brand."
Ford Motor Company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda.
"It is an interest that is important to our economy, to our industrial base, the workforce concerns that are important to our country. We want to be able to review the performance of the auto companies as we go forward. In order to do that, it is important for us to pass legislation that will set criteria for restructuring and reorganization of that industry and the companies within it.
It is important to note that unless the restructuring that is called for in this legislation and the goal of viability is achieved by March 31, there is no justification for spending any more taxpayer dollars. Now it has been said this is a loan of $15 billion because it's for a different purpose than under Section 136; 136 is for innovation...
But come March 31, it is our hope that there will be a viable automotive industry in our country with transparency and accountability to the taxpayer. We think that is possible...
But if they don't meet the conditions of restructuring, there is not going to be an endless flow of money to this industry, left to their own devices and the practices they have engaged in.
So we will see how willing everyone is to go into the future, but we want to recognize the importance of the automotive industry to our country. Their survival is essential to our economy. If they cannot survive, then we have to make a re-evaluation of the leadership as well, because we will not give up on our automotive industry. It's just a question of how it is manifested and how it is led.
I am very encouraged by the conversations so far. We are on the path. I will only support using Section 136 with the assurance that we will get it back in a number of weeks. And in fact, in a number of weeks, if the Big Three are not on the path to viability, we may want our money back sooner than March 31 instead of over the longer term that would be built into the bill should they again be a thriving, competitive, innovative auto industry for the future."
-- Nancy Pelosi, Speaker of the United States House of Representatives. December 8, 2008
"Running a multi-billion-dollar automobile company with thousands of employees, retirees, suppliers, dealers and communities counting on you is not for the weak of heart or for the timid or the untried. Especially the untried.
Having been there, I do not agree with the sentiment now coming out of Congress that the management should be changed as a condition of granting loans to the Detroit automakers. You don't change coaches in the middle of a game, especially when things are so volatile. The industry has been brutalized by a totally unpredictable series of events over which it had little control and that is beating it unmercifully into the ground.
The companies may not be perfect but the guys who are running them now are the only ones with the experience and the in-depth knowledge and understanding of how the car business really works. They're by far the best shot we have for success. I say give them their marching orders and then let them march. They're the right people to get the job done."
-- Lee Iacocca, Former Chairman and CEO of Chrysler and Former President of Ford Motor Company, on Auto Industry Loans. Los Angeles, December 9, 2008.
|GlobalGiants.com|
Edited & Posted by Editor | 11:13 AM | Link to this Post
November 17, 2008
The Cost of GM's Death: Automotive News's Warning to the US Federal Government
Acquainting the U.S. federal government with "The Cost of GM's Death", Crain Communications's automotive industry tabloid newsweekly 'Automotive News' has issued the following statement:
If Congress thinks a bailout of General Motors is expensive, it should consider the cost of a GM failure.
Let's be clear. The alternative to government cash for GM is not a dreamy Chapter 11 filing, a reorganization that puts dealers and the UAW in their place, ensuring future success.
No, even if GM could get debtor-in-possession financing to keep the lights on (which it can't), Chapter 11 means a collapse of sales and a spiral into a Chapter 7 liquidation.
GM's 100,000 American jobs will die. Health care for a million Americans will be lost or at risk. Hundreds of GM's 1,300 suppliers will die. Their collapse could take down Ford Motor Co. and Chrysler LLC, perhaps even North American transplants. Dealers in every county of America will close.
The government will face greater unemployment, more Americans without health insurance and greater pension liabilities.
Criticize Detroit 3 executives all you want. But the issue today is not whether GM should have closed Buick years ago, been tougher with the UAW or supported higher fuel economy standards.
In the next two to four months, GM will run out of cash and turn out the lights. Only government money can prevent that. Every other alternative is fantasy.
The $25 billion in loans that Congress approved to partially fund improvements in fuel economy? Irrelevant. Dead automakers do not invest in technology.
The collapse of the global financial system has crushed the American car market, dried up revenues for the Detroit 3 and highlighted their weaknesses.
Each of the Detroit 3 is in crisis. But Ford, which borrowed big two years ago and thus has more cash today, may skip a bailout and the strings attached. Cerberus, which bought Chrysler last year, doesn't deserve money. Government cash might help sell Chrysler to a strategic owner.
Some Detroit critics want their pound of flesh: Throw the bums out and install a government czar. Treasury Secretary Henry Paulson won't use any of his $700 billion bank bailout money to help manufacturers. In any case, he'd need a guarantee that a bailout would make Detroit "viable."
Well, nobody -- not even AIG -- is insuring guarantees for viability.
The taxpayer needs protection and an upside. GM's top management may need to go. Government-as-shareholder deserves a big voice. Those details can be worked out.
The Detroit 3 CEOs and UAW President Ron Gettelfinger had better tell two critical congressional hearings next week what sacrifices they are prepared to make.
But the stark fact remains: Absent a bailout, GM dies, and with it much of manufacturing in America. Congress needs to do the right thing -- now.
Source: Automotive News
"From the sublime to the ridiculous there is but one step."
-- Napoleon Bonaparte
"We saw how the Japanese auto companies changed their business practices and were able to stay competitive. We had about 25 years or so to try to deal with this, and we didn't. Now it looks like the reckoning is coming.
My heart says, 'yes,' to the federal loan because of the phenomenal ripple effect throughout the economy if Congress doesn't do it, especially in the Midwest. [The leaders of General Motors, Ford and Chrysler are pleading with Congress for a $25 billion loan as a bailout to the auto industry to prevent bankruptcy.]
But my head says, 'no,' because I don't have a lot of faith the government can intervene and fix this without much more money going in to what would be a bottomless pit, particularly with the hubris of the Big 3 leadership over the past 50 years.
The proposed loan would just be a 'Band-Aid'. All they'd be doing is buying time, perhaps through 2010 when the union contract ends or for the release of the Chevy Volt and other planned hybrid cars.
We'd be starting to see America more like a colonial economy, no longer the primary owners of what we make, and we'd see more of the wealth go overseas."
-- John Heitmann, Automotive Historian and Expert, University of Dayton
"Notwithstanding the criticism of its management, General Motors Corporation must remain intact. Americans must remember that for the last many years, the words 'General Motors' and 'Chevrolet' have been synonymous with the word USA, and have been their brand ambassadors worldwide.
The issue of 'GM's Bailout' is not merely an issue concerning domestic finance, commerce, industry, or economy. It is much more than that. It is an issue of America's honor, goodwill, and credibility in the international business."
© GlobalGiants.Com
|GlobalGiants.com|
Edited & Posted by Editor | 1:35 AM | Link to this Post
October 31, 2008
GM and Chrysler Transaction is the Best Alternative to Preserve Jobs and Cash: Grant Thornton
Photo: 2009 Chrysler PT Cruiser
Grant Thornton LLP's Corporate Advisory and Restructuring Services Group has announced the release of The State of Chrysler report, which, according to it, "Thoroughly examines the company, including its operations, product development, future outlook, strategic alternatives and the hidden value of a potential transaction, including the widely-rumored marriage of General Motors Corp. and Chrysler LLC."
"Chrysler as we know it will cease to exist very soon," says Kimberly Rodriguez, principal of Grant Thornton's automotive practice. "At this point, there are very few options available to either company. We believe a transaction between GM and Chrysler is likely because it would be the most expedient way to protect cash and jobs at both companies. If one or the other company were to fail, we would face a much bigger calamity -- the collapse of the North American supply base and the potential endangerment of all three Detroit automakers and businesses that depend on them."
Photo: GM 2009 Pontiac G5 XFE (United States)
The report finds that under a GM/Chrysler transaction, Cerberus Capital Management would likely receive half of GMAC, GM's financing arm, and keep a percentage of the merged manufacturing entity. There is a strong possibility that the federal government and current company stakeholders will participate in a transaction, with the goal of completing a deal before the presidential election.
More specifically, Grant Thornton's Automotive Advisory experts note the following possible outcomes under a GM/Chrysler transaction:
• Chrysler has 26 model offerings, of which Grant Thornton considers only seven to be core and likely to be retained (56 percent of sales). These include the Dodge Ram pickup truck, core Jeep-brand vehicles and the company's minivans.
• Half of Chrysler's 14 existing manufacturing facilities likely would close. Three already have been announced for closure. A plant reduction of this magnitude would equate to about 12,000 production jobs lost plus another 12,000 administrative positions. Of this amount, a reduction in force of 5,000 has already been announced.
• Hundreds of supplier companies would be impacted, which could result in the loss of an additional 50,000 jobs.
• Dealer consolidation efforts will intensify. Chrysler and GM combined have 22,000 franchises -- half of the total in the United States. However, the combined market share of the merged companies would only be about one-third of today's significantly smaller market for new vehicles.
"Despite the significant number of families that will be impacted, the benefits of combining the two companies are both structural and strategic," Rodriguez said. "From an economic and political standpoint, the new company will likely be viewed as 'too big to fail.'"
Photo: GM 2008 Holden Barina (Australia)
Photo: GM Chevrolet Spark (India)
Other benefits include:
• GM is strong in international markets and is increasingly leveraging global vehicle architectures for scale and efficiency. It is a leader in plug-in hybrid technology with the Chevrolet Volt. To this product mix, Chrysler brings seven key models that have been recently redesigned or will be by 2010.
• The new company will be a much more powerful force in the full-size pickup truck segment, displacing Ford as the truck leader.
• The combined company will have more liquid assets, thanks to the cash on Chrysler's balance sheet.
• Significant cost-reduction opportunities will be possible, especially in sales, marketing and administrative functions. Overlapping assets can be sold.
Rodriquez concludes, "On the whole, the combination of GM and Chrysler would certainly create yet another wild ride on the auto industry rollercoaster, where cash and platform position determine the winners and losers."
Source: Grant Thornton LLP
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Edited & Posted by Editor | 8:01 AM | Link to this Post
October 27, 2008
Volvo Ocean Race 2008-09
Photo: Telefonica Blue officially suspended racing having reached landfall near Gibraltar to undertake repairs to the steering gear they damaged soon after the race start in Alicante. (© Dave Kneale/Volvo Ocean Race)
Photo: Telefonica Blue and Black training off Alicante. (© Maria Muina/Equipo Telefonica)
The Volvo Ocean Race 2008-09 is the 10th running of this ocean marathon. Starting from Alicante in Spain, on 4 October 2008, it is, for the first time, taking in Cochin, India, Singapore and Qingdao, China before finishing in St Petersburg, Russia for the first time in the history of the race. Spanning some 37,000 nautical miles, visiting 11 ports over nine months, the Volvo Ocean Race is the world's premier ocean yacht race for professional racing crews.
Photo: PUMA Ocean Racing heads into the Gibraltar strait during leg 1 of the Volvo Ocean Race. (© Dave Kneale/Volvo Ocean Race)
(Photo © Rick Tomlinson/Volvo Ocean Race)
Photo: Telefonica Blue sail testing off Alicante, prior to the in-port race. (© Rick Tomlinson/Volvo Ocean Race)
Photo: Telefonica Blue breaks away from the start line in Alicante, Spain for leg 1 of The Volvo Ocean Race. Next is a 6,500nm battle to Cape Town, South Africa. (© Rick Tomlinson/Volvo Ocean Race)
The Volvo Ocean Race is an extreme sport, where boats, equipment and crew push the limits at very high speeds, over very long distances and out of reach for any coast guard. Since Volvo bought the race in 1997, safety has been improved for each race.
A new design of boat, the Volvo Open 70, was introduced for the 2005-06 event. It is faster and more dynamic than any boat previously sailed in the race. This state-of-the-art class of boat, with canting keel and a sail area as large as three tennis courts is being used again in this race, with some slight modifications.
Each Volvo Open 70 has two Volvo Penta engines onboard that are provided by Volvo. One is an engine that can propel the boat, the other creates electricity for all the equipment onboard: the navigation gear, the desalination device etc. The waste is stored onboard and is recycled in the ports.
All major sport events face similar environmental challenges. Therefore, a major United Nations conference on sport and the environment was held in Alicante in conjunction with the start of Volvo Ocean Race. The conference focused on how to make global sport events more sustainable.
Photo: Volvo S40, Gekko Green
According to Volvo Car Corporation, in Volvo Cars' brand value pyramid, (1) Safety is followed by (2) Care for the Environment and (3) Modern Scandinavian Design, and all these three brand values are tied into Volvo Ocean Race as well.
|GlobalGiants.com|
Edited & Posted by Editor | 10:44 AM | Link to this Post
October 18, 2008
New-Vehicle Buyers Turn to the Internet for Information as Buying Habits Shift to Smaller Vehicles: J.D. Power
Consumer-Generated Content Proves Beneficial for Consumers during the New-Vehicle Shopping Process.
New-vehicle buyers are using the Internet more than ever when researching vehicle information, according to the J.D. Power and Associates 2008 New Autoshopper.com Study(SM) released yesterday. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
The study finds that 75 percent of new-vehicle buyers in 2008 are using the Internet during their shopping process, compared with 70 percent in 2007. This year marks the largest year-over-year increase in online shopping since 2001. The total amount of time shoppers spend online researching automotive information has also increased since 2007 -- up 12 percent to more than six and a half hours. Meanwhile, the number of Web sites being visited by new-vehicle shoppers has remained relatively flat since 2007, which suggests that consumers have become more engaged with the sites they currently visit.
• "The current economic environment, coupled with high fuel prices, has given rise to a shift in the vehicle buying habits of U.S. consumers," said Arianne Walker, director of marketing/media research at J.D. Power and Associates. "Shoppers who were once loyal to larger vehicle models are now finding themselves in the market for a compact or midsize car. For many, this is unknown territory, and these shoppers are turning to the Internet for information and education about the vehicles in their new consideration set. The resulting demand for information provides automotive marketers with valuable opportunities to reach out to shoppers via the Internet."
Automotive manufacturers can further engage shoppers through consumer-generated content on the Web. According to the study, nearly 70 percent of automotive Internet users (AIUs) utilize consumer-generated content while shopping for a new vehicle. In particular, vehicle ratings and reviews are the most popular form of consumer-generated content, with 63 percent of AIUs utilizing this resource. Additionally, 95 percent of AIUs who use consumer ratings and reviews say that the information is "helpful." Dealer ratings and reviews are also popular among new-vehicle shoppers, with 38 percent of AIUs utilizing the resource, and 87 percent of those find the information "helpful."
"The collaborative environment facilitated by Web 2.0 is changing the way shoppers research vehicles, driving many to seek the experiences and opinions of other shoppers and owners," said Walker. "The opinions of other consumers are so impactful that we are already seeing distinct purchasing patterns develop between those shoppers who use consumer ratings and reviews, and those who rely solely on expert ratings and reviews."
The study also finds that different types of automotive Web sites have specific benefits that satisfy the information and shopping needs of consumers. For example, shoppers view independent, third-party sites -- such as Edmunds.com and Kelley Blue Book (kbb.com) -- as being most useful for researching vehicle pricing and for providing ratings, reviews and forums. Conversely, shoppers view manufacturer Web sites as most useful for their information on vehicle model options, features and specifications, while dealer sites are perceived as being most useful for inventory information.
• "The challenge for automotive manufacturers and dealers alike is discovering how best to get involved in online conversations taking place among consumers in order to shift sales to their advantage," said Walker. "Knowing the strengths of various types of sites and where shoppers are going for their information can enable manufacturers and dealers to manage their site content more strategically and focus on efficiently targeting consumers at each stage of the shopping process."
The study also finds that Kelley Blue Book (kbb.com) is the most visited independent Web site, with 44 percent of automotive Internet users visiting the site. Additionally, Edmunds.com is the most useful independent Web site among automotive Internet users. Edmunds.com shoppers are 42 percent more likely than consumers using other independent, third-party sites to say that the reviews, forums and ratings are the most useful information on the site.
This J.D. Power Study is based on the self-reported shopping habits of 27,901 new-vehicle buyers.
|GlobalGiants.com|
Edited & Posted by Editor | 1:37 PM | Link to this Post
October 14, 2008
FORD'S SMALL CAR -- ALL-NEW FORD KA
All-new Ford Ka made its global debut at the 2008 Paris Motor Show. Ford informs that it replaces the original Ka but retains all of the qualities which made the Ka brand popular - "compact size, great looks, lively dynamics and fun personality".
The new Ka has striking interior and exterior design, and according to Ford, "It is setting a new standard for affordable small cars. Practical, safe, cheap to run, and friendly to the environment."
Production of the all-new Ford Ka commences in the autumn of 2008, and the vehicle will go on sale in the UK in late 2008/early 2009.
The first volume production example of the new Ford Ka rolled off the production line at a special ceremony on September 25, in Tychy, Poland, 12 years after the original Ka was launched to great acclaim. Polish Deputy Prime Minister Waldemar Pawlak was guest of honour at the ceremony. With sales due to begin across Europe from early next year, the new Ka was fully revealed to the public at the recent Paris Motor Show.
According to Ford, its designers have given the new Ka a fashionable, modern appearance based around the company's 'kinetic design' form language. A number of visual cues provide a connection to the original Ka, but with its distinctive face and chunky proportions the new model has its own unique character.
"It was three years ago that we reached agreement with Fiat to produce the new Ka here in Tychy," explained Ian Slater, vice-president communications and public affairs, Ford of Europe. "One of the strengths of this co-operation has been that both parties wanted to produce vehicles which would be very different in looks and character. I'm satisfied that in doing so, we've set up a 'win-win' opportunity for both companies."
Annual production of Ford Ka will be 120,000 units a year.
The highly-anticipated new James Bond adventure, 'Quantum of Solace', will feature a cameo appearance from Ford Ka. Ford's cheeky new small car will make its screen debut alongside the film's beautiful but feisty leading lady, Olga Kurylenko. Kurylenko plays Camille, a woman with her own personal mission and who quickly becomes an unlikely ally for Bond.
The new model is expected to continue the considerable success of the original Ford Ka, which is widely considered to be an automotive design icon. Launched at the Paris Motor Show in 1996, the Ka was praised for its exciting "New Edge" styling and class-leading driving dynamics.
According to Ford, throughout its 12-year life "the Ka has remained tremendously popular among small-car buyers, inspiring fierce loyalty from its owners. In total, Ka production has exceeded 1.4 million vehicles".
"We are very excited about the launch of the new Ka", said Roelant de Waard, Chairman and Managing Director, Ford of Britain. "The original has been a huge hit in the UK with a sales record of over 480,000 - 80 per cent of which have been to retail customers, and many of those first-time buyers. I'm confident that the latest design will prove just as big a hit", he added.
|GlobalGiants.com|
Edited & Posted by Editor | 3:20 AM | Link to this Post
October 10, 2008
New Light-Vehicle Sales in U.S., Chinese, Indian and European Markets Anticipated to Slow Dramatically -- J.D. Power Report
According to J.D. Power and Associates Report released today, as the U.S. new-vehicle retail market continues to deteriorate, new-vehicle retail sales are projected to end 2008 at 10.8 million units, which is 2 million units below 2007 sales.
Approximately two-thirds of the decline in retail sales -- which are reflective of actual consumer behavior in the new-vehicle marketplace -- can be attributed to consumers delaying vehicle purchases. On average, consumers are keeping their vehicles 4 months longer in 2008 compared with 2007 -- up from 67 months to 71 months. The remaining one-third of the volume decline comes from reduced leasing activity. Additionally, fleet sales are expected to decline to 2.8 million units in 2008, which is well below the 3.3 million unit level achieved in 2007.
"Buyers are both voluntarily and involuntarily exiting the U.S. new-vehicle market," said Jeff Schuster, executive director of automotive forecasting for J.D. Power and Associates. "The additional decline in expected vehicle sales is a function of growing concerns around availability of credit and leasing, declines in vehicle equity and general economic stress."
The current turmoil and financial crisis adds risk to the 2008 forecast of up to 200,000 units, as it is unclear how consumers will respond in the fourth quarter.
• Total U.S. Light-Vehicle Market:
(Light vehicles are defined as passenger cars, SUVs, MPVs and light commercial vehicles with gross vehicle weight of less than six tons.)
J.D. Power and Associates forecasts total new light-vehicle sales -- which includes both retail and fleet sales -- to drop to 13.6 million units in 2008, registering a 16 percent decline from 16.1 million units in 2007.
Market uncertainty has also led to a downward revision of the J.D. Power and Associates 2009 U.S. light-vehicle forecast. Total new light-vehicle sales are expected to drop to 13.2 million units in 2009, with the retail sales market declining to 10.6 million units.
"Falling trade-in equity, fewer leasing options, credit market restructuring and the increased migration to used vehicles are all putting added pressure on the U.S. new-vehicle sales market in 2009," said Schuster. "Any truly pronounced recovery appears to be more than 18 months away."
• China Light-Vehicle Market:
Slowing within China's automotive market is projected to intensify during the fourth quarter of 2008, and will likely lead to a downward revision for 2009. Despite the slowing, light-vehicle sales -- including passenger vehicle and light commercial vehicle segments -- in China are expected to reach 8.9 million units in 2008, which marks an increase of 9.7 percent from 2007. However, the projected growth rate for the China automotive market in 2008 is less than one-half of the 24.1 percent growth achieved in 2007.
• Indian Light-Vehicle Market:
The light-vehicle sales forecast has also been reduced for the India market, down 6 percent from the original forecast of 1.9 million units to 1.8 million units for 2008. The 5.1 percent growth rate forecasted for 2008 is considerably less than the increases demonstrated in 2007 (16%) and 2006 (21%).
• European Light-Vehicle Market:
Light-vehicle sales in Europe are expected to fall to 21.3 million units in 2008, marking a 3.1 percent decline from sales in 2007. Within Western Europe, sales are forecasted to decline to 15.6 million -- a decrease of 7.5 percent from 2007. While sales in Eastern Europe are expected to increase to 5.8 million in 2008 -- up 11.3 percent from 2007, growth within the region is slowing considerably.
"While the global automotive industry is clearly experiencing a slowdown in 2008, the global market in 2009 may experience an outright collapse," said Schuster. "While mature markets are being impacted more severely than emerging markets, no country or region is completely immune to the turmoil."
Source: J.D. Power and Associates
|GlobalGiants.com|
Edited & Posted by Editor | 2:59 PM | Link to this Post
October 9, 2008
Public Transit Usage is Rising in America
A U.S. mational survey shows that rather than wait for an electric car or better biofuels, millions of Americans are saving money and time by switching to public transportation.
According to this new nationwide survey commissioned by the HNTB Companies, more than 24 million Americans -- 11 percent of the adult population -- are using buses, light rail, commuter rail and other forms of public transportation more than they did last year. An even greater percentage of survey respondents, 16 percent, said they expect their ridership to increase in the coming year.
(The HNTB Companies is an organization of infrastructure firms. The three operating companies of HNTB Companies include HNTB Corporation, a transportation, engineering, planning and construction management firm; HNTB Architecture Inc., whose design professionals provide services to the buildings market; and HNTB Federal Services Corporation, which provides federal-sector clients diverse infrastructure services.)
"As today's Americans face increasing demands on their time and money, riding public transit is shifting from something they should do, like eating their vegetables, to something they want to do," said Peter Gertler, vice president and national director of public transit services for HNTB Corporation.
Nearly one in three Americans (32 percent) said their biggest motivator to choose public transportation over driving would be high gas prices. While conventional wisdom holds Americans would find it frustrating to give up the convenience of a car, the survey found the second most popular reason someone would choose public transportation over driving is more convenience (14 percent). Avoiding traffic (5 percent) was a distant third, followed by concern for the environment (4 percent).
"For more than 50 years, the automobile has ruled the transportation landscape," Gertler said. "Our interstate highways are aging and under tremendous strain, and we're seeing the costs of an unbalanced transportation system. Now more than ever we need to invest in multiple modes of transportation that address modern demands and preserve our quality of life."
Gertler cited several benefits in a balanced approach to transportation that includes public transit:
• Saves time and conserves fuel -- 541 million hours and 340 million gallons, according to the Texas Transportation Institute's 2007 Urban Mobility Report.
• Saves money -- Americans living in areas served by public transportation save $18 billion annually in congestion costs.
• Promotes cleaner air -- Public transit usage reduces U.S. carbon emissions by 37 million metric tons a year, equivalent to the electricity used by 4.9 million households.
Measuring transit trends across the country, the survey also found:
• More than twice as many men as women (15 percent versus 7 percent) say they're using public transit more often than a year ago.
• Young Americans are making the transition in greater numbers. Nearly one in five adults ages 18-34 have increased their public transit usage in the last year (19 percent); that's more than twice the number of Americans ages 35 and up who can make the same claim (8 percent).
• The average American who has public transportation available to them uses it once a week, in effect giving their car the day off.
• Nearly four in ten Northeasterners (38 percent) use public transportation, more than any other region in the country.
• Southerners, however, have fewer options. One in ten says they do not have public transit where they live or work.
Source: HNTB Companies
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Edited & Posted by Editor | 10:06 AM | Link to this Post
October 3, 2008
Paris Motor Show 2008: AutoWeek Editors Announce Editors' Choice Award Winners
The Editors' Choice Awards recognize Best in Show, Best Concept, Most Significant and Most Fun.
The AutoWeek editorial staff today announced its Editors' Choice Award winners for the 2008 Paris Motor Show.
"The Paris Motor Show has renewed our faith in the auto industry and its future," said AutoWeek Editor and Associate Publisher Dutch Mandel. "Despite the dismal global economy and the state of the industry, we saw a surprising number of exciting vehicles, both foreign and domestic."
Following are the 2008 AutoWeek Editors' Choice Award winners for the Best of Paris:
• BEST IN SHOW: Lamborghini Estoque -- "While the design is somewhat contrived, the Estoque really has presence when you see it in person. This is the car people will clearly remember," said Mandel.
• Contenders for Best of Show -- Ferrari California, Saab 9-X Air and BMW 7-series
• MOST SIGNIFICANT: Honda Insight -- "This hybrid car will be cheaper than the Prius, have high fuel economy and seating for five. Honda has officially returned to the game they used to own."
• Contenders for Most Significant -- Audi A1 Sportback, Pininfarina Bollore, Mercedes Fascination and Volkswagen Golf
• BEST CONCEPT: Peugeot RC HyMotion4 -- "If the French automakers were to come to the U.S., this is the car Americans would want. Here is an electric sports car we can love."
• Contenders for Best Concept -- Honda Insight, Mercedes Fascination, Audi A1 Sportback and Saab 9-X Air
• MOST FUN: Audi S4 -- "The S4 is a rocket ship that is fun and fuel efficient. It satisfies on all fronts."
• Contenders for Most Fun -- Fiat 500 Abarth Essesse, Ferrari California, Volkswagen Golf GTI and Lexus IS250C
AutoWeek is America's only weekly automotive enthusiast magazine. For more than a decade, the editors of this weekly have been selecting winners in four categories (1) Best in Show, (2) Best Concept, (3) Most Significant and (4) Most Fun at auto shows in Detroit, Geneva, Paris, Frankfurt and Tokyo.
"At the world's top auto shows, AutoWeek has been selecting winners in four categories - Best in Show, Best Concept, Most Significant, and Most Fun. These categories cover all types of cars displayed there. Yet, taking note of the new circumstances in which the automobile industry finds itself today, AutoWeek editors could consider adding another category, such as - Most Handy or Best Handy."
© GlobalGiants.Com
"With U.S. automakers reporting their worst monthly sales results of the year and no signs of relief expected in 2009, we now believe that as many as 100,000 industry-related jobs may be at risk.
With a more than 2 million unit sales decline likely this year compared with 2007, followed by a prolonged slump expected next year, the downturn is placing unforeseen levels of stress on the industry, we expect many players do not have the cash, credit or means to see the cycle through.
The last three quarters have seen a sharp curtailment in leases, high commodity and energy costs, a tightening of credit and rising unemployment. Consumers are fatigued, and we see more of the same in 2009 based on our read of the underlying industry fundamentals.
Only a resurgence in consumer confidence, stable financial markets, a resumption in the free flow of capital and a revitalized construction/real estate market can mitigate the downside risk."
- Grant Thornton LLP Corporate Advisory and Restructuring Services
|GlobalGiants.com|
Edited & Posted by Editor | 10:48 PM | Link to this Post
September 25, 2008
Dealer-Related Issues Among Top Reasons for Rejecting a New Vehicle says J.D. Power and Associates Report
According to the J.D. Power and Associates 2008 Escaped Shopper Study(SM) released today, majority of vehicles are rejected only after a new-vehicle shopper has visited a dealership,
The study, which analyzes the reasons why consumers consider a model but ultimately purchase a different make or model, finds that 80 percent of vehicles are rejected after a new-vehicle shopper has visited a dealership.
Three dealer-related issues are among the top reasons for not purchasing a vehicle:
(1) Another dealer has better service.
(2) Limited availability of the specific vehicle shoppers are looking for on dealer lots.
(3) Lack of professionalism among personnel at the dealership.
"Given today's challenging automotive market, both sales and service experiences at the dealership are particularly critical in the decision-making process of shoppers," said Tom Gauer, senior director of automotive retail research at J.D. Power and Associates. "Sales personnel can play a key role in improving close rates by viewing customer visits as an opportunity to demonstrate a vehicle's value and by successfully matching shoppers with the new vehicle that best suits their needs."
The study also finds that an increasing number of shoppers have considered buying an Asian brand -- 63 percent in 2008, up from 60 percent in 2007. Conversely, the proportion of shoppers who considered buying a domestic (American) brand has decreased -- down to 55 percent in 2008 from 58 percent in 2007. Shoppers who cross-shop among Asian and domestic brands are more likely to purchase an Asian brand and most often cite retained value, reliability and gas mileage as primary reasons for their choice. In contrast, those customers who purchase a domestic (American) brand instead of an Asian brand most commonly cite a desire to "buy American" as their primary reason for purchase, followed by rebates and incentives offered, and vehicle price.
"As shoppers move away from larger-vehicle segments in growing numbers, domestic (American) manufacturers -- more so than Asian and European manufacturers -- must focus on rapidly aligning their U.S. product portfolios with this shift in consumer preferences," said Gauer.
The percentage of shoppers who cite gas mileage as a reason for rejecting a vehicle has increased in 2008-up to nearly 20 percent this year from nearly 17 percent in 2007. Unsatisfactory gas mileage is the third-most-common reason to reject a vehicle, with particularly high rates of rejection in the large, midsize and compact utility vehicle segments.
Nearly 40 percent of all new-vehicle shoppers cite price as the most influential reason for not purchasing a vehicle. Additionally, nearly one-half of shoppers 40 years of age and younger reject vehicles based on price- or finance-related issues. In contrast, only one in three shoppers who are 60 years of age or older reject vehicles for the same reasons.
"Interestingly, nearly 40 percent of all shoppers who reject a vehicle because of price say they can afford the vehicle, but don't believe the vehicle is worth the price," said Gauer. "This presents an opportunity for dealership personnel to focus on demonstrating the different features contributing to the vehicle's total value to these shoppers, which can eventually lead to increases in close rates."
• J.D. Power's "2008 Escaped Shopper Study" is based on responses from 29,903 new-vehicle buyers surveyed between May and July 2008.
Source: J.D. Power and Associates
"This is a very useful report from J.D. Power. The crucial point that emerges from this study is that when an auto maker advertises its products in the media or displays them at auto shows, it is only half the marketing done. And this half the marketing done is no marketing done at all till it is hundred percent completed via the franchisee auto dealers.
Success in retail auto sales isn't an easy process and turnover is constantly an issue. With vehicle pricing readily available in newspapers, other publications and online, consumers quickly decide what make and model of vehicle they want to buy. Today, more and more consumers are using the Information Superhighway to find reviews and ratings of dealerships and their employees. As a result, the best local sales and service professionals have been elevated by their customers and are being promoted online as well as offline. As what a global Internet survey by Nielsen found, more than 80 per cent of those who use the Internet trust others' advice rather than any kind of advertising, proving that word-of-mouth is the most powerful advertising tool. Newspapers come second in the 'most trusted list'.
Since a dealer's good or bad reputation is instantly transferred to the automobile manufacturer, most of the remaining marketing to be done by an auto maker should consist of bringing about 'word of mouth' recommendations about its dealers. To make that happen and to make its marketing hundred percent complete and successful, it is essential that the car maker constantly reviews dealer performance and sees how it can help its dealers in keeping their salespersons courteous and professional."
© GlobalGiants.Com
|GlobalGiants.com|
Edited & Posted by Editor | 12:24 PM | Link to this Post
September 8, 2008
smart USA and Club Monaco launch "Fashion Fleet"
Photo: smart fortwo designed by Club Monaco.
Targeting the urban professional, global brands Club Monaco and smart USA are jointly advertising their products with the launch of FASHION FLEET: The Ultimate Urban Trunk Show. The fleet showcases a caravan of chic Club Monaco designed smart fortwos and Club Monaco fall fashion.
The Club Monaco smart fortwos, ten in total, feature images from the newly launched Fall 2008 Club Monaco Campaign, shot by renowned photographer Walter Chin as well as the brand's iconic black and white crest.
The smart fortwo is a brand of and is manufactured by Daimler AG. This technologically advanced vehicle achieves 41 mpg on the highway and is an ultra-low emissions vehicle. While Club Monaco is an international retail concept that designs, manufactures, and markets its own Club Monaco clothing, accessories and home collection. Now headquartered in New York City, Club Monaco operates 120 stores worldwide. Club Monaco is a subsidiary of Polo Ralph Lauren Corporation.
"The Fall Collection and campaign were inspired by the idea of the downtown aristocrat who brings uptown elegance a downtown flare." "It's a natural partnership for us and one we feel aligns with Club Monaco's core values -- design, style, and function," says John Mehas, President and CEO of Club Monaco. "Both Club Monaco and the smart fortwo are urban and sophisticated, and are geared toward meeting the needs of the modern consumer -- one who has a versatile and demanding lifestyle, and is looking for affordable luxury."
Photo: smart fortwo designed by Club Monaco.
FASHION FLEET: The Ultimate Urban Trunk Show is being launched during New York Fashion Week. Club Monaco designed smart fortwo vehicles will cruise New York City streets making stops at the landmark Mercedes-Benz Fashion Week locales. Young professionals will model the 'must have styles' of the season while gifting 75 lucky New Yorkers with iconic pieces from Club Monaco's Fall Collection at each stop. Gifts will include cashmere scarves, sunglasses from the newly launched collection, statement jewelry, small Italian leather goods and the signature Club Monaco houndstooth glove for smart drivers.
"smart USA is excited to partner with Club Monaco for the 2008 Mercedes-Benz Fashion Week activities," says Dave Schembri, President, smart USA. "smart is the brand at home on the streets of New York City providing drivers with urban mobility, great gas mileage and environmental responsibility. The smart fortwo's iconic design also complements the sophisticated style of Club Monaco stores and customers."
"Ten years ago one of the world's most unusual production vehicles was launched on the market. It was new and excitingly different from conventional cars - the smart city coupé, now called the smart fortwo. This extremely compact vehicle had just two seats and measured slightly more than two and a half metres in length. It was also able to fit into parking spaces perpendicular to the flow of traffic and it established its own class. Nevertheless, it took two people and their luggage to their destination very comfortably and with maximum safety. It also had impressively low fuel consumption and minimum carbon dioxide emissions. Even then it anticipated many of today's pressing questions concerning individual mobility and answered them in a unique way. After ten years of production one thing is certain: the idea has caught on. Thanks to technical innovations and a design that combines functionality with joie de vivre, the smart fortwo has become a cult car."
- Daimler AG, Stuttgart Sep 03, 2008
Photo: smart ed (electric drive)
And on September 5, 2008, Daimler AG and RWE AG launched the world's largest joint project for environmentally friendly electric cars (see the picture above).
"Before its introduction in January 2008, 'smart fortwo' was unknown in the United States.
Today, this most compact car is firmly establishing itself in the world's largest automobile market.
Almost all American auto reviewers are commenting on it. The dealer network is already in place.
The specialized market for "high-standard two-seater microcars" is automatically being created exclusively for Daimler AG. The German car maker is the solitary player in this American field.
And the way the things are going, 'smart fortwo' is poised to become a Super Brand in the USA."
© GlobalGiants.Com
Also check the following Relevant Posts:
• October 17, 2007: "smart fortwo" prepares for its US market launch in January 2008
• December 1, 2007: Launch of the smart fortwo in the USA
• December 17, 2007: Daimler Chairman Dr. Dieter Zetsche presents smart fortwo to Representatives of U.S. Government and Business
• January 14, 2008: Launch of the smart fortwo in the USA
• February 24, 2008: Designing of Daimler AG Mercedes-Benz "smart fortwo"
|GlobalGiants.com|
Edited & Posted by Editor | 2:33 AM | Link to this Post
September 5, 2008
Paris International Auto Show: Honda to Reveal Honda Insight Concept Hybrid Vehicle
Photo: Honda will reveal a concept version of its new small hybrid vehicle, to be named Insight, at the 2008 Paris International Auto Show, October 2, the company announced.
Honda has announced that it will reveal a concept version of its new small hybrid vehicle, to be named Insight, at the 2008 Paris International Auto Show on October 2.
Honda further said that "Insight" would go on sale in the U.S. next spring and the all-new purpose-built Insight will come to market at a price significantly below hybrids available today. And from this unique position in the marketplace, the Insight will advance the affordability and accessibility of hybrid technology to a new generation of buyers. The new Insight Concept shares styling cues with the Honda FCX Clarity fuel cell vehicle, Honda explains.
"The original Honda Insight pioneered hybrid technology in the U.S. and remains a symbol of Honda's commitment to innovative technology and fuel efficiency," said Takeo Fukui, Honda Motor Co., Ltd. CEO. "This new Insight will break new ground as an affordable hybrid within the reach of customers who want great fuel economy and great value."
The production Insight will be offered as a five-door, five-passenger hatchback. Along with the Civic Hybrid, the new vehicle will be produced at an expanded hybrid vehicle production line at the Suzuka factory in Japan.
Photo: Honda FCX Clarity
Honda claims, "The Insight Concept is a small, fuel efficient hybrid car that delivers big style and functionality with a healthy dose of fun." "The Insight Concept defines a new stage in the evolution of hybrid technology resulting in a new level of affordability for hybrid customers worldwide. Evoking the innovative styling cues first seen in the FCX Clarity, the Insight Concept is designed with a low center of gravity and a generous five-passenger cabin. While the Insight Concept's aerodynamic design identifies its fuel efficient purpose, its five-door access and folding rear seats speak to functionality that is designed to meet the needs of customers with an active lifestyle," the company adds.
Photo: Honda CR-Z Concept
According to Honda, the Insight is expected to have annual global sales of 200,000 units per year -- approximately 100,000 in North America. Following the launch of the new Insight, Honda also plans to introduce another sporty hybrid vehicle based on the CR-Z. "All together, Honda's global sales of hybrids should increase to approximately 500,000 units a year, or more than 10 percent of its total worldwide annual automobile sales," says Honda.
Source: Honda
"Honda's expectation to have annual global sales of 200,000 units of "Insight" per year (approximately 100,000 in North America), and its global sales of hybrids increasing to 500, 000 units a year, is no ordinary news. It deserves to be analyzed by other car makers -- Toyota, GM, Ford, Suzuki, Daimler, Nissan, Hyundai,..." - GlobalGiants.Com
|GlobalGiants.com|
Edited & Posted by Editor | 9:08 AM | Link to this Post
