Car Biz Weekly

As General Motors pushes to terminate Saturn and Pontiac, the automaker will be introducing impressive discounts in order to help deplete inventories of these two brands. GM employees and suppliers can get even better deal thanks to employee discounts as well.

Tens of thousands of GM employees can take advantage of this unique perk, which has long been a part of GM’s benefits package. In addition, GM is offering $7,000 off new cars until January 4.

The new discounts are intended to move Saturn and Pontiac inventories quickly so that GM and its dealers can focus more on its core brands, including Buick, Chevrolet, Cadillac, and GMC. GM employees are most likely to get the best dealers on these new cars, even below invoice price. Continue reading ‘Looking for New Car Deals? Try Saturn, Pontiac’

General Motors, and Penske Automotive, will be saying goodbye to Saturn as the attempt to sell the Saturn brand fell through. Production on Saturn vehicles has already been stopped, and now dealers will have just a few months to sell all remaining inventory.

Penske Automotive Group was in talks with GM for months in hopes of buying the embattled brand. The biggest challenge standing in the way of the Penske was finding another source for vehicles says Buick Birmingham since GM had no intention of continuing to supply the brand with vehicles. Penske had reportedly been in talks with French automaker Renault, but when discussions fell through, Cincinnati Used Cars suggests that Penske had no choice but to walk away from GM.

Once Penske walked away from talks, it took GM less than 24 hours to build the last Saturn vehicle. Currently, there are about 12,000 Saturn vehicles in inventory. Last month about 3,000 vehicles were sold according to sources at Chevy Parts New Mexico. It’s expected that inventory will be divided by GM to ensure as many dealers as possible have their needs met.

GM remains confident that it will be able to sell the remaining Saturn inventory. Unfortunately, Saturn dealers are so optimistic about the demise of the beloved brand. Continue reading ‘Saturn Phased Out Over Next Four Months’

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’

After its reign as the largest automaker in the world, General Motors has filed for Chapter 11 bankruptcy. The Treasury and the federal government have claimed that theses new developments will make the new GM a leaner and healthier company. The bankruptcy is the third largest in American history and involved nearly $173 billion in dept.

In approximately 60 to 90 days, this new GM will be launched. The difference from the existing GM is that the new version will only include the strongest brands, dealers, and facilities. Oklahoma GMC points out that that while GM has previously been home to numerous nameplates, it will now only consist of only Chevrolet, Buick, GMC, and Cadillac brands. Fewer brands means fewer sales admits one dealer specializing in Philadelphia car loans, but these brands remain the automaker’s strongest and will certainly help make the automaker as a far leaner company.

Ultimately, the changes at GM are intended to provide the automaker with an improved balance sheet as recent years has seen debt grow dramatically. In order to help achieve its lofty goals, the U.S. Treasury is also committing $30 billion in bridge financing to further aid the process. Missouri Used Cars says the U.S. Treasury will not own GM debt alone, but will also share some of the dept with Canadian and Ontario governments as well.

While bankruptcy is under way, General Motors will continue to sell its cars and honor vehicle warranties. GM dealers realize that sacrifices will need to be made, but remain optimistic as the automaker will become stronger once it exits bankruptcy proceedings. In addition, operations until them will continue to operate as normal in most markets outside of North America. Continue reading ‘Time Runs Out: GM Files for Bankruptcy’

The Shanghai Auto Show turned out to be a much bigger show that expected. Between the release of the Porsche Panamera sedan and the even the Kia Soul Hybrid, the Shanghai Auto Show featured exciting new models with the world’s fastest growing auto market as its backdrop. One of the fastest growing brands in China happens to be Buick, which is also revamping its lineup here in North America. It’s this reason that Buck has unveiled its all-new Business MPV concept in Shanghai.

Unlike previous Buick concepts and unveilings in China, the Buick Business MPV was designed and engineered exclusively by GM’s Asian design team. Unfortunately, the Buick Business may not be seen outside of Asia should it make its way into production, to the dismay of Oklahoma City Buick dealers who admire the vehicle’s sleek profile. If it does, it will certainly help the Buick brand deliver a more upscale presence in the North American market.

The Buick Business appears to be little more that a MPV with an oversized Buick grille from the outside, but Washington DC Buick dealers say it’s far more appealing from the inside. Rather than being just another family hauler, the Buick Business is actually more of a mobile boardroom or a high-tech alternative to a limousine or sedan.

The interior of the Buick Business houses up to six passengers comfortably, allowing them to swivel their chairs and hold a discussion or meeting with ease. With electric sliding doors, large 20 inch wheels, and even a glass sunroof, the Buick business is a comfortable alternative to a stodgy sedan. Additionally, the Buick Business is powered by a fuel efficient 2.4-liter four-cylinder engine but is also equipped with an electric motor that features regenerative brakes and a stop-start system, a system that visitors to Louisville Chevrolet and other GM customers would most certainly like to see stateside.

Don’t except to see the Buick Business in the States any time soon. Unfortunately, Chevrolet Car Loans believe that the luxurious and efficient model would be unique vehicle for a unique niche in the premium market. With Buick doing well in China, expect to make it into production in that market. Continue reading ‘Buick Business MPV Unveiled in Shanghai’

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’

The bailout package for Detroit has sparked controversy and mixed feelings as some have felt that the Big Three brought trouble on to themselves. But with many others hoping the government will step-in soon to provide vital financial help, it isn’t only American drivers hoping for a bailout. Toyota and other Japanese automakers also endorse the use of federal aid to keep General Motors, Chrysler, and Ford out of bankruptcy and in the marketplace.

Toyota recently released statements that uphold the notion of a bailout for the Big Three. Toyota is in support of any initiative that helps the automotive industry. While this may seem unusually for a competitor of the Big Three to hope for their survival, a Toyota dealer Cheyenne say it makes much more sense than it may initially seems.

The dynamics of the auto industry are such that the fate of each are intertwined with each other, and as such as Toyota and Honda hope for the survival of GM and Chrysler, even if it seems counter intuitive on the surface. First, Asian automakers produce 3 million vehicles per year at facilities within the U.S. If the Big Three fell into bankruptcy, the Asian automakers fear that their own production may be in jeopardy, as a Cleveland used Toyota notes Toyota accessory and parts suppliers may also be sucked into financial peril with a Big Three bankruptcy.

With a great amount of overlap between those supplying the automakers, Birmingham Honda dealers think it will be inevitable that the production will be disrupted due a potential bankruptcy.  It could take months before Toyota or another automaker would be able to stabilize production and return operations back to normal.

Asian automakers have made steady gains in the North American market in recent years. With manufacturing and dealer operations working in their favor, one used car dealer boston believes that Japanese automakers don’t want to mess with a good thing and see Detroit place strain on their manufacturing output.

But manufacturing isn’t the only area where a Big Three bankruptcy will cause intense strain. Dealers in the U.S. often sell a combination of domestic and overseas brands such as Spokane Chevy. Not only would inventory be affected, but dealers also believe that a Big Three failure would also eat away at the already low demand for new cars. November auto sales saw substantial declines in demand, causing a 26-year low for auto sales.

The U.S. remains the largest market for Toyota, Honda, and Nissan, which is why a stable market, with the Big Three alive and well, is essential to helping theses automakers maintain momentum. Already, weak overall demand in the U.S. has forced Japanese automakers to lower their sales projections, which is why the automakers,  points out one Pittsburgh Honda dealer, are hoping for any measure that will bring stability to the industry and bring about consumer confidence.

With weak sales and a poor economy, Toyota and other automakers are simply not immune to sales and production issues. For example, this week Toyota cut its plans to open a new manufacturing facility in Mississippi. The plant was scheduled to produce the next generation Toyota Prius, which has previously been in high demand at Toyota Albuquerque and elsewhere across the country.

It’s expected that the Japanese automakers would gain greater market share should a Detroit automaker fail. However, Nissan Tacoma fears that having to sell inventory of the failed brand would depress the prices of new cars throughout the inventory, at least in the short term.

While the failure of a U.S. automaker could place strain on Japanese automakers, it could open doors for others. An Indian or Chinese automaker, for example, could purchase assets of the failed company and become a low cost option for American consumers. India’s Tata and China’s Geely are two such automakers that are gaining ground in developing markets, and may see such an opportunity to enter the lucrative U.S. market cost effectively. Regardless, Acura Auto Service Pittsburgh and others in the auto industry feel that a ripple effect will eventually reach them from the fall out of a Big Three bankruptcy.

Having upstart companies from overseas compete within the U.S. is nothing new. Korean automakers have slowly been carving out their own market share for years, with more even greater moment in recent years thanks to attractive, high-value models says Hyundai Chicago dealers. But by piggybacking off of the assets, design, and dealer network of a U.S. automaker, an Indian or Chinese automaker would have the opportunity to grab market share at a quicker pace than their Korean rivals.

To prevent upstarts maintain the inroads they’ve gained over decades of hard short, Japanese automaker such as Toyota are hoping for the survival of GM, Chrysler, and Ford. They also don’t want to see an upstart automaker make inroads in the wake of a domestic automaker’s failure. Continue reading ‘Why Toyota, Honda, Nissan, Support Federal Bailout for Detroit’