Car Biz Weekly

Times have been tough for the Detroit Big Three, but times have also been tough on the Japanese Big Three. In recent months, the largest Asian automakers, Toyota, Honda, and Nissan, have been forced to cut production, cut jobs, and alter product releases due to dismal financial results and poor sales. Clearly, the economic concerns extend well beyond Detroit and truly involves everyone from around the world.

While the slip in Japanese sales and profits has not been quite has steep as those of the domestic automakers, the time has come for Japanese automakers to follow the same path. This week Nissan has announced it will be cutting just over 8 percent of its workforce, thanks to a $2.9 billion loss expected for this fiscal year.

Despite steep losses, Nissan plans to uphold its current aggressive product development schedule. Included is Nissan’s upcoming electric vehicle, which Hartford Nissan says remains a high priority according to Nissan management.

Honda also has forecasted trouble ahead, reducing its earnings forecast by about 57 percent. While a profit is still expected according to Honda Philadelphia, Honda has preemptively cut salaries among board members and senior managers. Toyota, now the world’s largest automaker, has also shed salaries, cut production, and expects a loss of about $5 billion. Further cutbacks are also expected. That being said, Westminster Toyota dealers see new vehicles such as the Venza crossover and the all-new Toyota Prius hybrid to boost sales momentum. Already, Irvine Toyota dealers have seen demand for the Venza due to heavy Superbowl advertising and other current incentives.

While all automakers are hurt by dwindling sales here in the U.S., the automotive markets in Europe and Japan are also seeing declining auto sales. Even popular vehicles, such as the Toyota Prius hybrid, are facing declining sales as potential car buyers steer away from new car showrooms. In fact, a Toyota plant in Mississippi cut production of the Highlander in order to produce additional Prius vehicles. However, production there has been postponed, even as interest in the Prius has remained high.

With the U.S. auto market being particularly challenging these days, this year is looking to be a tough one for automakers and car dealers alike. While forecasts already look grim, many industry analysts are expecting the worst, with even more declines ahead in 2009. Continue reading ‘Japanese Big Three Continue to Struggle’

The mantra that ‘bigger is better’ is certainly leaving our vocabulary when it comes to cars. No longer is oversized, gas guzzling SUVs in vogue. Instead, smaller, more fuel-efficient vehicles are all the rage. However, these fuel efficient, easy-to-maneuver offerings aren’t necessarily the safest on the road.

Whether you’re buying a truck, an SUV, or a subcompact, all cars must adhere to strict safety regulations. While this helps provide drivers with a certain level of safety and peace of mind regardless of what vehicle one may purchase, a Honda dealer Los Angeles say it doesn’t necessarily guarantee the level of safety you’ll receive in real world driving. This is why it’s important to do your research before heading to the dealership to truly gauge how safe a car may be. Luckily, there are plenty of resources to do exactly that.

Perhaps the best resource for safety information is the Insurance Institute of Highway Safety (IIHS). This nonprofit is supported by the insurance industry, and does extensive safety testing on just about every vehicle on the road. In addition to gauging the safety of a car’s design and how well its safety features work, one Westminster Toyota dealer says the IIHS also does a number of studies to find trends when it comes to vehicle safety. For example, the data below indicates Highest Rates of Driver Death rates between the years of 2001 and 2004.

One factor that this study found is that size and weight plays a large role when it comes to safety. Although today’s advanced safety features help minimize fatality rates in any size vehicle, real world driving has plenty to do with plain physics, which Auto Body Pittsburgh can certainly agree with. This is why many of the vehicles with the highest fatality rates were small cars, while the vehicles with the lowest fatality rates were larger cars.

Recent years has seen auto safety change dramatically. In fact, Kia dealers Denver have seen dramatic changes in Kia vehicles alone. First the advanced safety features are very much mainstream. Even seat belts are used more than just a decade ago. But speeds have also increased over the years, as the national speed limit used to be only 55 mpg. With greater speeds, but safer cars, physics is playing a larger role in car accidents and in fatalities.

Even more recent research conducted by the IIHS shows that the highest personal injuries occurred among smaller 2005 to 2007 model year vehicles. While the data is a bit daunting, and is often a concern among Toyota dealers Anaheim, the question then becomes, should you buy a larger car to protect your safety?

Overall, the rate of fatalities has not gone up as more consumers have abandoned larger vehicles in favor of smaller cars. This is an important consideration according to Hyundai Albany when wondering whether a larger car will guarantee your safety. All indicators show that smaller cars are getting safer, despite the higher rates of fatalities.

Regardless, when considering a new vehicle, one Pittsburgh Kia dealer always reminds customers that it’s important to consult the IIHS or NHTSA websites in order to find how the vehicles held up in crash test reports. The most popular vehicles will certainly have crash information, while low volume vehicles will not have any data if there is low sales volume. However, most of the new models rank well, and usually receive four or five star ratings.

Ultimately, in the coming years, Saturn Denver believes that technology will play an increasingly larger role in new vehicle safety. It’s new technology that allows new subcompacts such as the Honda Fit to have a top crash test rating. Electronic stability control, front and side airbags, and a slew of other now common safety features are relatively new, and were not even available on the Chevrolet Blazer in the study referenced above.

As more technology becomes infused into the vehicles we drive, regardless of size, it’s likely that we’ll be able to minimize or reduce the severity of crashes. However, that being said, good driver behavior will never be substituted by the most advanced safety features. Continue reading ‘How Does Vehicle Size Affect Vehicle Safety’

General Motors, after reining as the 77 years as the world’s largest automaker, has lost its title after 2008 sales figures have stalled. GM’s sales had put the automaker in second place behind that of Toyota. GM sales in 2008 were 8.36 million vehicles, while Toyota sold 8.97 million vehicles.

After losing its long-held title, GM realizes that the future will be long and arduous, and sales within its core market, North America, have declined dramatically, and show no sign of improving any time soon. For GM dealers like Detroit Chevrolet dealers, they too realize the road ahead will  hold plenty of challenges. In addition, GM’s sales marked the first point since 1982 that annual sales have fallen below 10 million vehicles, making this a historic decline for the automaker.

Auto sales in the U.S. have plummeted as demand for new cars have weakened along with the economy. Aside from consumer sales, Hartford Chevrolet dealers have also noted that fleet sales and the rental car business have also suffered in recent months. Based on these numbers, it’s also expected that GM, Chrysler, and Ford may also be reducing production further.

The federal stimulus packages from the government are increasingly seen as vital lifelines to keep the automakers, including GM, afloat. Even Los Angeles Ford dealers see federal aid as a vital component to keeping the domestic auto industry alive. However, despite poor sales in the vital North American and European markets, GM did see sales gains in developing regions in Asia, Latin America, Africa, and the Middle East. Despite sales declines in Toyota sales as well, it was no surprise that Toyota was able to rise above GM this year. Continue reading ‘GM Loses Title of World’s Largest Automaker’