Automotive News articles from May 2009

Automotive News archives from May 2009

Survival manual.(Save Your Car Dealership)(Brief article)
May 4, 2009... David Swanson, founder of Save Your Car Dealership, says dealers must take these steps to cope with a down market. * Streamline spending * Focus on used-vehicle sales * Monitor financial statements for errors * Communicate...

Slow economy hurts service contract sales.(NEWS)
May 4, 2009... Byline: Richard Truett Sales of extended service contracts for new and used cars a source of big profits for dealers have tanked along with auto sales this year. But consumers are keeping their cars longer than ever. The average age...

Tight credit squeezes dealers; F&I revenue declines as lenders refuse to roll service contracts, other add-ons into car loans.(NEWS)
May 4, 2009... Byline: Donna Harris Rattled by tight credit and rising default rates, lenders are reducing the amount of money they will loan toward a car purchase. The policy is costing dealers finance and insurance income. In some cases it's also...

F&I helps dealer ease pain of a down year.(NEWS)
May 4, 2009... Byline: Bradford Wernle In 2007, John Bommarito had a gut feeling that 2008 wasn't going to be a banner year for new-car sales. Bommarito, president of Bommarito Automotive Group in Ellisville, Mo., realized he was going to have to...

Mazda's O'Sullivan: Focused on new products.(Jim O'Sullivan)
May 4, 2009... When Ford Motor Co. cut its stake in Mazda Motor Corp. to 13 percent from 33.4 percent in November, several key Ford Motor Co. executives on loan to Mazda had to make a decision: Stick with Mazda or go back to Ford. One of Mazda's coups was...

California is industry's worst crash site.(NEWS)(Brief article)
May 4, 2009... As the surfers might say, the auto business in California is a total wipeout. In the first quarter, new-vehicle sales in the Golden State fell 43 percent to 231,726, according to the California New Car Dealers Association. That compares...

Here's the deal.(NEWS)
May 4, 2009... The issue: Chrysler has considerable leverage to cut dealerships in bankruptcy court. What's next: The company will choose dealerships that will survive with the reorganized Chrysler. The government says terminated dealerships will wind...

Buy-American boost may make Ford the winner in Ch. 11 saga.(NEWS)(Brief article)
May 4, 2009... And the winner is Ford?With Chrysler in bankruptcy and General Motors possibly following suit some analysts predict an exodus of customers who don't trust a bankrupt automaker to be around tomorrow to service a car bought today. Despite...

Chrysler dealers have GMAC option.(General Motors Acceptance Corporation)(Brief article)
May 4, 2009... Byline: David Sedgwick Thousands of Chrysler dealers who face the loss of floorplan financing will have an opportunity to sign up with GMAC. A senior GMAC executive said Thursday, April 30, that his company will sign up all Chrysler...

JM&A's Foster: Sell service plans in your service department.(Bruce Foster)(Interview)(Brief article)
May 4, 2009... Toyota and Lexus dealers in the Southeast have seen fairly steady sales of extended service contracts on new and used vehicles, says Bruce Foster, 42, director of the Performance Development Center at JM&A Group, a unit of JM Family...

Plant shutdown threatens suppliers.(NEWS)
May 4, 2009... Byline: Robert Sherefkin and Dave Guilford Chrysler LLC's shutting of its plants until it emerges from bankruptcy couldn't come at a worse time for parts suppliers. Already reeling from General Motors' impending nine-week production...

The April tally: 18th straight month of year-to-year decline.
May 4, 2009... Byline: John K. Teahen Jr. Auto people studied the April sales figures. Then they shuddered and dug in for another month of hoping and praying. April was not a good month. The 819,817 new cars and light trucks delivered by dealers were...

Used-car financing: More work, more profit.(Sandy Springs Toyota)
May 4, 2009... Byline: Arlena Sawyers Barry Jackson, owner of Sandy Springs Toyota in suburban Atlanta, says getting his used-car customers financed requires "more. More prodding of customers for bigger down payments. More verification of income and...

GM's store cutting could face flurry of suits.(NEWS)
May 4, 2009... Byline: Jamie LaReau Even with bankruptcy looming as a possibility at the end of the month, General Motors could face a barrage of lawsuits as it tries to meet the U.S. government's demand to streamline its dealership roster. Starting...

Toyota dealers: Inaba to run all of N.A.(NEWS)
May 4, 2009... Byline: Kathy Jackson Toyota's incoming North American boss, Yoshimi Inaba, will assume a powerful new position in charge of both sales and manufacturing operations, some dealers have been told. Inaba, 63, who was CEO of Toyota Motor...

In auction market, Chrysler's doing fine.(NEWS)
May 4, 2009... Byline: Bradford Wernle In the months before Chrysler filed for bankruptcy, dealers bid up auction prices of the struggling automaker's used vehicles. Dealers and experts say prices rose because: * Chrysler is sharing in an...

In fact, it was a good week for Chrysler.(NEWS)
May 4, 2009... Byline: Peter Brown The horror of a Chapter 11 filing by a once-powerful member of the Big 3 obscured some good news last Thursday: Chrysler LLC has a future. It will live. Even as he announced that Chrysler was going into bankruptcy,...

Dealers use eBay to sell parts; Total sales now exceed 135 million; "09 pace is up 15%.(NEWS)
May 4, 2009... Byline: Mark Rechtin Sitting on slow-moving inventories of spare parts is an unenviable position for an auto dealer. The online auction eBay says it can help. EBay, once known as a place to market Grandma's tchotchkes, has sold more...

In plan B, GM cuts go deeper.(NEWS)
May 4, 2009... General Motors last week revealed its second restructuring plan to the Obama administration's auto task force, which rejected the first plan. The automaker now plans to: * By 2010, eliminate 1,000 to 1,200 dealerships judged to be poor...

The final say.(NEWS)(Brief article)
May 4, 2009... "Every Pontiac dealer should get down on his knees every night and thank God that he is a Pontiac dealer. A Pontiac dealer to Automotive News during the brand's heyday in the 1960s

Packing up the Pontiac memories; 2 veteran dealers grapple with the impending doom of an iconic American brand.(NEWS)
May 4, 2009... Byline: Jamie LaReau John Delehanty, 58, will close his stand-alone Pontiac dealership in 2010 but wants another General Motors brand. For Rob Brown, 49, "the party's over for his 83-year-old Pontiac business. At the end of 2010, he'll...

Credit unions expand auto lending via aggregators.(NEWS)
May 4, 2009... Byline: Dave Guilford When many lenders abandoned automotive lending last year, Long Island dealer Keith Donnelly was stumped. Then he turned to credit unions, which had financed about 10 to 15 percent of deals at his three stores....

Obituaries.(Donald Dougherty Sr.)(Obituary)(Brief article)
May 4, 2009... Donald Dougherty Sr. THURMONT, Md. Retired auto dealer Donald Dougherty Sr. died March 29 at age 80. He was a Chevrolet and Oldsmobile salesman here for 18 years. In 1965, he and a partner bought Wilhide Chevrolet, renamed it...

A quick bankruptcy? Not so fast, experts say; it's up to the judge.(NEWS)
May 4, 2009... Byline: Dave Guilford Chrysler LLC says it will use Chapter 11 reorganization to create a viable new company "in a matter of 30 to 60 days. But bankruptcy experts say that timetable is very optimistic. "One of the dumbest things...

Bankruptcy strips car dealers of protections.(NEWS)
May 4, 2009... Byline: Bradford Wernle Chrysler LLC has a potent new weapon to thin its dealership roster: Bankruptcy Court. In a move that rocked dealers last week, the company filed for Chapter 11 reorganization in U.S. Bankruptcy Court for the...

dealers.(NEWS)
May 4, 2009... Milestones Dave Burke and Ray Burke of Burke Motor Group in Cape May Court House, N.J., received 25-year awards for Chevrolet from General Motors.

Saturn's demise will cut GM hybrid total.(General Motors Corp.)(Brief article)
May 4, 2009... One little-discussed consequence of taking Saturn out of the General Motors equation: GM loses just over a quarter of its sales of fuel-saving hybrids just the type of vehicles the Obama administration wants automakers to build. Saturn...

Foreign suppliers now fill half of top 25 spots; Annual survey: 19 had lower N.A. sales in 2008.(NEWS)(Survey)
May 4, 2009... Byline: Robert Sherefkin Virtually half of the 25 largest suppliers to automakers in North America are foreign-based, and many of the U.S. companies on the list are struggling. Automotive News' annual survey of the top 150 North...

GM seeks to replace Vibe at Toyota joint venture.(NEWS)
May 4, 2009... Byline: Lindsay Chappell As it shrinks its North American product portfolio, General Motors is negotiating with Toyota Motor Corp. to designate a new GM vehicle that would be built by the automakers' joint venture, New United Motor...

Correction.(NEWS)(Correction notice)
May 4, 2009... A story on Page 17 of the April 27 issue incorrectly described the powertrain of the Tesla Roadster. The Tesla is an electric vehicle.

BMW chief sees a sales upturn in September.(Jim O'Donnell )
May 4, 2009... Jim O'Donnell became CEO of BMW (U.S.) Holding Corp. last July, just before U.S. auto sales began to plunge. So it has been a tough start in America for the native of Scotland. But there are positive signs. O'Donnell, 59, expects BMW brand...

3 stars kept Pontiac from the gallows in "50s.(General Motors Corp. Pontiac Div)(Company overview)(Brief article)
May 4, 2009... This time there appears to be no escape. But Pontiac could count itself lucky, because it narrowly dodged a bullet 50 years ago. Born without fanfare in 1926, Pontiac immediately succeeded Oakland as General Motors' first step-up brand...

2 future collectibles from Pontiac?(NEWS)(Brief article)
May 4, 2009... Pontiac has created more than its share of collectible muscle cars. And now that the brand is headed for the last lap of Wide Track Boulevard, two limited-run models could join the ranks of well, if not classics, at least historical oddities....

Jim O'Donnell.(NEWS)
May 4, 2009... What will drive your expected sales increase in the fourth quarter? I am a bit of an optimist that the Obama factor will come into play. We are seeing some positive signs in terms of the banks. At the moment we are almost 100 percent...

Fairness, wisdom must guide GM in cutting stores.(General Motors)
May 4, 2009... Although General Motors has widened and accelerated the campaign to cut its dealer network, the automaker must treat dealers fairly while terminating them. For some time, GM has said it wants fewer dealerships. But last week's announcement...

Automotive News honored for bond with you, readers.(NEWS)(Brief article)
May 4, 2009... Automotive News was honored as one of the country's "Most Engaged Media Brands last month in New York by the Media Industry Newsletter. The judges praised the close ties Automotive News has with its 70,000 paid subscribers in print, online...

Jim O'Sullivan.(NEWS)
May 4, 2009... The oldest cars in your lineup are the MX-5 Miata and RX-8. Is there any call for a sports car in these times? The RX-8 and Miata are our soul. Without sports cars, this company is like Ford without the F series. It's our DNA. Besides, if...

briefs.(General Motors)(Mercedes-Benz )
May 4, 2009... GM could halt Saturn, Hummer output in Aug. DETROIT If General Motors can't secure a buyer for Hummer or Saturn by midsummer, it will begin halting production in August. "We'd stop building in the back half of this year August...

What emerges from Ch. 11 won't be the old Chrysler.(NEWS)(Brief article)
May 4, 2009... A picture of the reconstituted Chrysler emerged last week after the automaker filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court. * A new Chrysler: Under supervision of the court, the Obama administration auto task...

A little equity could grease the wheels for GM dealer cuts.(NEWS)(Brief article)
May 4, 2009... Byline: Edward Lapham This is no dream! This is really happening! You can forgive any dealer with one of the 2,600 stores that General Motors wants to close by the end of next year for being startled and incredulous, like waking up in...

Fed-run GM: A formula for disaster.(General Motors)
May 4, 2009... Byline: Keith Crain I am still surprised and disappointed that corporate America has been painfully silent as the government usurps more and more authority at General Motors. The White House and the Treasury Department fired the CEO...

On the Web.(NEWS)
May 4, 2009... This week at autonews.com * Monday: See automakers' latest U.S. incentive programs at autonews.com/spiffs * Friday: Toyota posts first annual operating loss in 71 years * All week: Coverage of Chrysler in bankruptcy and GM's battle...

GM to dealers: OnStar can be tool to boost service revenue.(General Motors )
May 4, 2009... Byline: Jamie LaReau General Motors is encouraging dealers to use OnStar to drum up service business. OnStar, GM's satellite communications system, sends an e-mail notice to a dealership when a customer needs scheduled service. With...

New board: Can a camel bust hump?(NEWS)
May 4, 2009... Byline: David Sedgwick You've heard the old saw that a camel is a horse designed by a committee. Well, New Chrysler's proposed nine-member board of directors is starting to look like a camel. The Treasury Department will name four...

Captive puts freeze on dealer funds.(NEWS)
May 4, 2009... Byline: Donna Harris Chrysler Financial has frozen the cash management accounts of Chrysler dealers. The move denies some dealers access to six figures or more of their own cash, which they deposited against their loans for...

Job 1 for Fiat boss: Visit, learn; From exec suite to men's room, CEO does his research.(NEWS)
May 4, 2009... Byline: Luca Ciferri If you're looking for Sergio Marchionne in the next few weeks, you might try the men's room at any one of Chrysler's plants, offices or technical centers in the United States. The Fiat S.p.A. CEO regards the state...

Rising used prices.(NEWS)(Brief article)
May 4, 2009... Values of used 2005-08 Jeep, Dodge and Chrysler vehicles rose before Chrysler LLC filed for bankruptcy. AUCTION PRICE INCREASE FEB. 1-APR. 22 Jeep - 9.9% Dodge - 5.5% Ford -5.4% Toyota - 5.3% Chevrolet - 5.0% ...

How Honda created life of luxury.(NEWS)(Brief article)
May 4, 2009... On June 8, Automotive News will chronicle Honda's U.S. history in a special section, "Honda's American Journey: 25 Pivotal Moments in 50 Eventful Years. For information about the section, go to autonews.com/honda50. In the early 1980s,...

With gas at $2, Ford delays diesel for F-150.(Brief article)
May 4, 2009... Byline: Amy Wilson A diesel engine for the Ford F-150 light-duty pickup is looking dicey. Ford had said it would sell a diesel F-150 beginning in 2010. Last spring, dealers were shown a 4.4-liter V-8 diesel said to deliver more power...

Dealers see hitch in Ford's $1 buyout; Takers might not find an alternate financing option.(NEWS)
May 4, 2009... Byline: Arlena Sawyers A proposal by Ford Motor Co. to let some dealers buy out the company's interest in their stores for a dollar could deprive them of adequate operating capital, dealers warn. Ford made the buyout offer last month...

Supply Line.(NEWS)(Brief article)
May 4, 2009... TRW will shut Wisconsin plant ETTRICK, Wis. TRW Automotive Inc. says it will close its plant here by the end of June, putting 60 employees out of work. The plant makes ignition switches, dome lamps and heating and air-conditioning...

Rising defaults deter longer loans.(NEWS)
May 4, 2009... Byline: Donna Harris The 72-month loan is falling out of favor. With loan defaults rising, risk-averse lenders are backing away from the ultralong-term loans that once enticed consumers. From Jan. 1 through March 15, 2009, 40.5 percent...

Ford Credit seeks bank charter to tap consumer funds.(NEWS)
May 4, 2009... Byline: Amy Wilson As it searches for cheaper sources of funding, Ford Motor Credit Co. wants to turn to American consumers. Savers who invest in certificates of deposit could buy CDs from a bank owned by Ford Credit, allowing the...

Branching out.(NEWS)
May 4, 2009... An industrial bank charter would give Ford Credit these advantages. * Deposits through CDs would provide a cheap source of funds. * Deposits would help Ford Credit diversify its funding sources. * Ford Credit could compete with...

Credit unions look to meet dealers' floorplan needs.(NEWS)
May 4, 2009... Byline: Donna Harris Credit unions have helped jump-start car sales by funding consumer loans when the domestic automakers' finance companies were short of cash. Now initiatives are afoot that could allow credit unions to provide...

F&I bright spots: Dent removal, tire repair; Growth of cheaper products gives dealers profit boost.(Ferman BMW )
May 4, 2009... Byline: Leslie J. Allen At Ferman BMW in Palm Harbor, Fla., customers have little need for service contracts. A new Bimmer has a factory warranty of up to four years or 50,000 miles. But drivers will open their wallets to insure...

Wachovia is poised to grow dealer business.(Wachovia Dealer Services)(Interview)
May 4, 2009... Despite the auto industry's deep recession, Tom Wolfe of Wachovia Dealer Services is overseeing a growing operation. After Wells Fargo completed its acquisition of Wachovia, the company named Wolfe president of its combined automotive loan...

At a glance.(NEWS)
May 4, 2009... Wachovia Dealer Services Dealers: 9,000 Commercial loans: $6.7 billion in outstanding balances Retail indirect loans: $26.7 billion in outstanding balances Regional business centers: 46

Independent certifiers prosper.(Motor Trend Certified Advantage warranty program)
May 4, 2009... Byline: Chrissie Thompson The recession has cast some sunshine on one sector of automotive business: independent certified used-car programs. Independent companies that certify used cars say business is booming. Dealers are turning to...

How dealers benefit.(NEWS)
May 4, 2009... Dealers say an independent certified used-car program is a worthy investment. * They can charge more for inspected cars with a warranty. * They sell their formerly uncertified used vehicles faster. * They can advertise that all of...

Mitsubishi sees profit despite falling sales.(NEWS)(Financial report)
May 4, 2009... Byline: Hans Greimel Mitsubishi Motors Corp. sees its U.S. and global sales falling again this year but says aggressive cost cutting will return it to a profit in the fiscal year that just started. U.S. sales are seen tumbling 29.8...

Honda: First quarterly loss in 15 years; profit for year Hans Greimel.(NEWS)(Financial report)
May 4, 2009... Honda Motor Co. posted its first quarterly loss in 15 years in the three months that ended March 31 but still squeaked out a full-year profit. It forecasts continuing black ink despite falling sales in the fiscal year that began April 1. ...

Noble's Ch. 11 story.(NEWS)(Brief article)
May 4, 2009... November 2008: Noble International hires Houlihan Lokey Howard & Zukin Capital Inc. to find the auto supplier capital. Feb. 23, 2009: GM, Ford and Chrysler agree to fund Noble's operations, but only for a while. March: Noble's stock,...

Bad cash flow, credit market cripple Noble.(NEWS)
May 4, 2009... Byline: Ryan Beene A few years ago, Noble International Ltd. had big plans. Today it's in Chapter 11 reorganization. The suburban Detroit supplier of laser-welded steel blanks used in car and truck bodies began a string of acquisitions...

Auto News Digest.(NEWS)
May 11, 2009... Marchionne will run new Chrysler Fiat CEO Sergio Marchionne told Bloomberg News last week that he will become CEO of Chrysler LLC after it emerges from bankruptcy. Chrysler CEO Bob Nardelli has said he will step aside after the company...

In quest for Chrysler's mate, LaSorda told "No'.(NEWS)(Tom LaSorda)(Brief article)
May 11, 2009... Byline: James B. Treece For roughly 21/2 years, Chrysler LLC co-President Tom LaSorda has been peddling his company, according to documents filed in U.S. Bankruptcy Court. He met with other automakers in search of a partner or a buyer...

Nissan exec: Pickup deal is too good to drop.(NEWS)(Nissan Motor Company Ltd.)(Brief article)
May 11, 2009... Byline: Lindsay Chappell Nissan's U.S. sales chief remains confident that Chrysler will build his next full-sized pickup despite the American automaker's bankruptcy and takeover by Fiat S.p.A. "The project is progressing, Brian...

Auto News Digest.(NEWS)
May 11, 2009... Dems propose cash for guzzlers WASHINGTON u Democratic lawmakers last week proposed a cash-for-guzzlers bill that would offer up to $4,500 to people who trade in vehicles for more fuel-efficient ones. The plan could spur 1 million sales,...

briefs.(NEWS)(Brief article)
May 11, 2009... Group ends challenge to Chrysler-Fiat merger A dissident group of Chrysler LLC lenders that challenged the carmaker's proposed merger with Fiat S.p.A. disbanded its effort Friday after two of its five members withdrew, a lawyer for the...

How do you turn a Fiat into a Chrysler?(NEWS)(Chrysler-Fiat )(Brief article)
May 11, 2009... Byline: Rick Kranz The Chrysler-Fiat plan to sell reworked Fiats and Alfa Romeos in the United States will require more than cosmetic changes. The vehicles will need various engineering changes to meet U.S. standards. According to...

Firing dealers is no job for an amateur.(NEWS)
May 11, 2009... Byline: Peter Brown The bleak landscape where my Oldsmobile-Saab dealership stood, a half-mile from my house, awaits the reawakening of the economy so a strip mall can go in. Nobody, including me (Olds) and my wife (Saab), buys General...

Honda touts the Insight as "populist's' car.(NEWS)(Honda Motor Company Ltd.)
May 11, 2009... Byline: Mark Rechtin Honda is taking a swipe at the perceived elitism of Toyota Prius owners with the launch campaign for its redesigned Insight hybrid. The tag line "A hybrid for everyone came from market research showing that many...

Hyundai's usual message: More. Now. Hurry!(NEWS)(Financial report)(Brief article)
May 11, 2009... Hyundai headquarters once again is cranking up the pressure on the brand's U.S. executives. Reports out of South Korea say the parent company is aiming for a 5 percent share in the United States this year. Last year Hyundai's share was 3.0...

Accord tops Ford F series to lead April sales.(NEWS)(Honda Accord)(Brief article)
May 11, 2009... Byline: Jesse Snyder Last month, U.S. new-vehicle buyers preferred the Honda Accord sedan to the Ford F-series pickup. The F series isn't often outsold, even for a month. It has been America's best-selling vehicle every year for at...

Opinion.(NEWS)
May 11, 2009... Obama's auto jobisn't over; hereare 2 new issues Now that the reorganization of Chrysler LLC is chugging along in U.S. Bankruptcy Court in New York, the Obama administration should address two related issues. First, the members of the...

Chrysler shoppers shrug off Chapter 11.(NEWS)
May 11, 2009... Byline: Arlena Sawyers Contrary to earlier fears, Chrysler LLC's bankruptcy filing has not caused consumers to scratch its new and used vehicles off their shopping lists, industry analysts say. A survey by Kelley Blue Book's kbb.com of...

Honda chief: Brand is "safe harbor' in bad times.(NEWS)(American Honda Motor Company Inc.)(Interview)
May 11, 2009... John Mendel has seen mostly good times since joining American Honda Motor Co. in December 2004. The company surpassed 10 percent market share in 2008, but since August it has been in the same dire straits as everyone else. Last month...

Feds push drastic cuts: Dealers wait, worry.(NEWS)
May 11, 2009... Byline: Jamie LaReau and Bradford Wernle General Motors and Chrysler LLC dealers are anxiously awaiting word on whether their businesses will live or die. At GM, the owners of more than 1,000 dealerships could get notice this week that...

How do you turn a Fiat into a Chrysler?(NEWS)
May 11, 2009... Airbags: Unlike Europe, the airbags for vehicles sold in the United States must be engineered for unbelted occupants. So U.S. airbags are bigger. Fuel tank: The fuel system must be tested for leaks after a serious crash. Fire is the issue....

A helpless feeling: GM dealers await their fate.(NEWS)(General Motors Corp.)
May 11, 2009... Byline: Jamie LaReau Fear drove many decisions last week at General Motors dealerships. Many dealers, afraid of losing their franchises, cut advertising spending, refused to order new vehicles and concentrated on service and used...

Toyota reports first loss, predicts worse is to come.(NEWS)(Financial report)
May 11, 2009... Byline: Hans Greimel Toyota Motor Corp. tumbled to its first operating loss in 71 years in the fiscal year just past, and outgoing President Katsuaki Watanabe warned the automaker faces even worse losses this year despite a campaign to...

Ford focuses on costs, keeps eye on product.(NEWS)(Interview)
May 11, 2009... Ford Motor Co. may be in better shape than General Motors or Chrysler LLC, but it is still losing money and burning cash. Amid the industry's sales plunge, Ford's struggling North American unit lost $637 million before taxes in the first...

The Final Tally.(NEWS)(Brief article)
May 11, 2009... Fiat: 3rd best? Over 21/2 years, Chrysler explored numerous potential partnerships, according to documents filed in U.S. Bankruptcy Court. In each case, a partnership promised savings from shared purchasing, consolidated engineering and so...

Service-only franchise fills void after Suzuki store shuts.(NEWS)
May 11, 2009... Byline: Arlena Sawyers Customers orphaned by the closure of what was the largest U.S. Suzuki dealership now can go to a nearby Hyundai store for Suzuki factory warranty and service work. American Suzuki Motor Corp. awarded a Suzuki...