Car Biz Weekly

Almost as soon as Toyota earned the title of the world’s largest automaker, analysts quickly began to eye Volkswagen and their rapid growth as well. Now it seems that the time has come for the Volkswagen Group to claim the title of the world’s largest automaker, as this year VW is poised to produce 4.47 million vehicles.

Since January of this year, Toyota has been struggling against the effects of a sluggish economy. As such, the automaker has been forced to cut output dramatically. According to VW St Louis, assistance by the German government through a Cash-for-Clunkers-like program has also helped VW gain the edge over Toyota.

Last year Toyota had produced 9.24 million vehicles. This year that number is expected to be around 7.24 million vehicles according to IHS Global Insights.

This year the VW group also added Porsche to its roster of global brands which Green Bay Volkswagen says is a great addition to the already world-class lineup of brands. These other brands include Bentley and Lamborghini just to name a few. Last year Toyota earned the title of world’s largest automaker after overtaking General Motors, which held the title for 80 years. At Boston Toyota the demand for fuel efficient vehicles like the Yaris, Corolla, and the third-generation Prius helped maintain Toyota sales, but global challenges has hindered Toyota’s continued growth.  Continue reading ‘Volkswagen Group Becomes World’s Largest Automaker’

The demise of car dealerships in recent months have already wreaked havoc on communities around the country. Combining dealerships closures with the closures of numerous automotive plants and manufacturing facilities, some communities are beginning to see the devastating effects of vacant real estate.

Many communities are trying to come to terms with the void that car dealerships could leave behind when they’ve closed says Boise Subaru. Vast lots soon become eyesores along main thoroughfares, not only making for an unattractive property, but also hurting the commercial success of a community.

When car dealerships close, the properties have a tendency to be left undeveloped, unless other dealerships quickly move in. With undeveloped properties degrading the landscape, many communities are finding that they could potentially scare away other businesses. Although cities try to invest in improving sideways, street signs, and other enhancements, a used car dealer Washington DC points out that some communities have also appealed to lawmakers and the Big Three in order to prevent further closures.

Some dealerships that have managed to keep their doors open have helped alleviate this possible strain on neighborhoods. Some dealers have focused more on selling used cars as in the case of one dealer of used trucks Bosie, while others such as Marlboro Nissan have focused more on vehicle repair and maintenance. This helps to stem job losses, and prevent the prevalence of vacant buildings and lots. Unfortunately, dealers that stay open without new cars on the lot typically don’t see the profits that they previously had and therefore aren’t able to reinvest in their communities.

Many communities and dealerships are still reeling from the effects of the slumping economy says a certified Volvo dealer New Hampshire. As automakers still deal with a crippled industry, dealers and cities may still see difficulties ahead. Continue reading ‘Dealership Closures Strain Communities’

Amid the endless  news of the weakened auto industry, glimmers of hope are beginning to surface. The brightest of these glimmers may be at Ford, which has reported a net income of $2.3 billion in the second quarter of this year. While the company still posted a pre-tax operating loss, Ford still managed to cut losses dramatically compared with last year.

Ford’s improved financial reporting is due to a number of cost cutting initiatives, improved market share, and encouraging results from Ford Credit, the automaker’s financial arm. A Ford dealer in Los Angeles says that all of these factors combine to ease the pain of the ongoing worldwide financial crisis.

With Ford continuing its restructuring and recovery, one Ford dealer specializing in car loans Salinas is hopeful that the automaker will get out of the red by 2011. That’s a bold goal considering that there is no end in sight for the auto industry’s recovery. In addition, Ford Credit is showing healthy figures, thanks to a $646 million profit in Q2.

While other Big Three automakers are emerging from bankruptcy and starting over, Ford is continuing to make the changes that seem to be yielding results. In an effort to turn things around, Ford has already made dramatic cuts, which has included prominent brands says Denver Auto Loans. In the coming months, consumers can expect more changes to come to Ford via the automaker’s lineup as well. Continue reading ‘Ford Continues Drive Towards Profitability’

Month after month, automakers and car dealers have seen dismal sales numbers have driven plenty of people out of business. However, June sales may be a turning point, as the month showed glimmers of hope for sales. The question remains whether this glimmer of hope is a sign that the worst is over.

General Motors finished the month with a 33 percent decline in sales, down only slightly more than analysts predicted. In addition, Toyota and Chrysler both faced declines that were worse than predicted. The only automaker to perform better than expected was Ford.

While auto sales data from June is by no means overwhelmingly positive, Florida Commercial Trucks points out that the sales numbers have improved compared with other months earlier in the year. June sales overall slipped from 9.9 million cars to 9.7 million cars. But despite the declines, June still marked the second best performing month yet this year, which again may not be too exciting, but it’s something.

The auto industry has a long way to go before it can return to its former health. Rather than a sharp bounce back, auto sales are likely to recover only gradually over a long period of time suggests Yonkers Used Cars. But analysts with Edmunds.com suggest that the leveling off of sales declines seen in the month of June is at the very least a sign of stabilization.

Other analysts have been even more optimistic, stating that current auto sales suggest that the worst is now over. A sign that this optimism is warranted is the fact that GM saw a 10 percent increase in sales in the U.S. compared with last year. Peoria Chevy says that the overall decline at GM was actually attributed to a huge hit to fleet sales. With Chrysler already out of bankruptcy, its partnership with Italian automaker Fiat has yet to have an effect on its lineup. Meanwhile, a used cars Saginaw dealer suggests that fleet sales have also hurt Chrysler’s overall sales figures.

As already mentioned Ford has fared better, both increasing market share and performing better than predicted. It still faced a sales decline, but the drop was not nearly as bad as recent months. In another encouraging sign of momentum according to Jersey City Lincoln Mercury, Ford has also noted declines in inventories and will also be increasing production for the third quarter of this year.

Typically, Korean and Japanese automakers have been far more resilient when compared with the Big Three. However, automakers such as Toyota have not been immune to the devastating effects the economy has had on the auto industry. Toyota June sales were worse than predicted. Both Honda and Nissan saw significant sales declines as well, but were relatively aligned with predictions. Continue reading ‘June Auto Sales May Suggest Hope’