Auto news and reviews from Car Buyer's Notebook.com: Finance Archives

August 13, 2008

GM to Invest $445 Million in New Plant, Thai Operations

Rayong, Thailand - General Motors is investing $445 million to build an engine plant and upgrade an existing vehicle assembly plant here, company Chairman and CEO Rick Wagoner announced today.

The new 14,492-square-meter (156,000-square-foot) facility will be GM's first diesel engine plant in Southeast Asia and will provide four-cylinder diesel engines for use by Chevrolet in Thailand and other global markets and brands.

Continue reading "GM to Invest $445 Million in New Plant, Thai Operations"

August 12, 2008

LeaseCompare.com Steps in as Chrysler and Others Exit Auto Leasing

CINCINNATI -- LeaseCompare.com, the leader in online direct-to-consumer auto leasing, today announced that it has the financial resources to provide leasing for those who want to lease Chrysler and other vehicle makes, including SUVs.

As an independent leasing company, http://www.LeaseCompare.com gives consumers access to new and used car leasing from banks, credit unions and other finance sources. Site visitors can instantly compare payments, rates and residual values from each source and select the best lease for their driving habits.

Continue reading "LeaseCompare.com Steps in as Chrysler and Others Exit Auto Leasing"

Automakers Must Work Harder to Sell to Affluent

DETROIT -- Luxury cars and trucks are beginning to fall victim to the same woes dragging down the rest of the U.S. auto industry, forcing auto makers to fight hard for sales and to employ new tactics to peddle their highest-priced vehicles.

The luxury market is down 11% year-to-date, with overall U.S. auto sales down 18%. GM is taking a bet that there is still demand for big, status-symbol trucks among buyers unscathed by the slumping economy. Other auto makers aren't so sure.

August 11, 2008

BMW supportts Automotive Youth Education

Woodcliff Lake, NJ -- Passaic County Technical Institute students got a glimpse of their future with the donation of a BMW 745i which will be used as a state of the art automotive teaching tool.

The students are members of Automotive Youth Educational Systems (AYES), a nationwide partnership among automotive manufacturers, participating dealers, and selected high/prep schools.

Continue reading "BMW supportts Automotive Youth Education"

Cost Cuts Alone Can't Save Chrysler

Jim Press -- Chrysler LLC's co-president and optimist-in-chief -- says the company has slashed costs and is meeting its cash flow targets. So why is Wall Street so gloomy? In a report last week, Moody's Investors Service downgraded Chrysler's rating three notches to Caa1 -- a pessimistic "junk" rating.

The bottom line: Chrysler is slashing jobs, unused production capacity and assets to become smaller and more profitable. But is it spending enough on product development to ensure a healthy future? The Moody's report suggests the answer may be no. J. Bruce Clark, senior vice president of Moody's corporate finance group, praised Chrysler for its "relatively aggressive and successful cost-cutting program." But he adds that Chrysler must establish adequate demand for its minivans and crossovers, given the weakness of its car lineup.

Tight Credit Hinders Lease Deals

As automakers and big banks slash their vehicle leasing programs, dealers are finding few options. For customers who want or need low monthly payments, dealers say, financing will get tougher.

Since July, the Detroit 3's captive finance companies and several national banks have placed strict new limits on leasing or exited the business. Industry experts predict the cutbacks will have these effects: New-vehicle purchases financed by loans of six years or longer, once rare, will become more prevalent. Some independent lenders will seek to increase their leasing business, but their programs are likely to be less competitive and more restrictive than the factory-subsidized leases offered by captives. Customers who still want to lease vehicles will shift from Detroit 3 to import brands.

August 10, 2008

Cadillac Escalade Hybrid Launch Underway

DETROIT, Mich. - The launch of the world's first hybrid applied to a large luxury SUV, the 2009 Cadillac Escalade Hybrid, begins this month.

Achieving a 50-percent improvement in fuel economy in city driving, Escalade Hybrid arrives at Cadillac dealerships in the United States with an MSRP of $71,685. That represents a premium of only $3,600 over a comparably-equipped Escalade.

Continue reading "Cadillac Escalade Hybrid Launch Underway"

August 9, 2008

Video: Chrysler's Shop Till You Drive Event

Five significant stories from Chrysler LLC the week of August 8, 2008: Stories include: Shop 'Til You Drive Event, grand opening of the first Dodge Commercial Truck Center, Chrysler anniversary, talking public and new personnel moves.

Chrysler Financial Announces Leadership Changes

FARMINGTON HILLS, Mich. -- Chrysler Financial announced today the appointment of key executives to further strengthen the company's focus on its core business.

Thomas F. Gilman is appointed to the newly created position of Vice Chairman and Chief Executive Officer. This position combines the former roles of Executive Vice Chairman and President and Chief Executive Officer into a single position.

Continue reading "Chrysler Financial Announces Leadership Changes"

Toyota Reports 28% Fall in Profit

TOKYO -- Toyota said Thursday that its fiscal first-quarter profit plummeted 28 percent and stuck to its forecast that full-year profit with fall for the first time in seven years as it faces more problems from the weakening U.S. market.

Toyota Motor Corp., which had been riding on the success of its fuel-efficient cars, has consistently posted growing profit since it started reporting under U.S. accounting standards. And there's no previous comparable data that shows its annual profit has ever fallen.

GM agrees to lend Delphi $300 million against bankruptcy

General Motors Corp agreed to lend Delphi Corp a further $300 million as the automaker's former parts unit struggles to exit bankruptcy protection, courts papers show.

Delphi, in court papers filed Wednesday, said GM would increase its loan to the auto parts supplier to $950 million from $650 million so Delphi can maintain a minimum level of liquidity.

A hearing with the U.S. Bankruptcy Court in New York is scheduled for August 26.

Chrysler, Nissan in Talks on Cars

DETROIT -- Chrysler LLC is in talks with Nissan Motor Co. about jointly producing midsize cars, a partnership that would move the U.S. auto maker toward a radical new business model.

The two companies agreed earlier this year to team up on pickup trucks and subcompact cars. Since then, they have been discussing an agreement under which Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name, people familiar with the matter say.

A Chrysler spokesman said the company has "no new alliances" to announce, and declined to comment on any discussions it might be having.

Number of new-auto dealers falling

The loss of several area automobile dealerships -- including the recent closure announcement by Vinton Motor Co. -- is in keeping with a statewide and national trend.

Virginia is home to about 2 percent fewer franchised new-car dealerships than a year ago, according to the Virginia Automobile Dealers Association.

VADA estimates Virginia has 554 franchised new vehicle dealerships, a decrease of 11 from a year ago.

"We've been seeing dealerships closing around the state," association spokesman Michael Allen said.

This week, the owner of Vinton Motor Co. in Vinton said he will close Aug. 15.

GM Presses Ad Agencies on Costs

In its latest attempt to save money, General Motors has asked its advertising agencies to slash their fees by as much as 20% this year and next, according to several people familiar with the matter.

Several ad executives familiar with GM say he cuts could translate into more than $20 million in total savings for General Motors, but likely will mean layoffs for the agencies involved. GM's push shows how Detroit's pain -- caused by a sharp drop in U.S. car sales due to soaring gas prices -- is creating ripples in other sectors.

Weak U.S. Truck Sales Hurt Toyota Net

TOKYO -- Slumping U.S. sales of pickup trucks and sport-utility vehicles contributed to a 28% drop in Toyota Motor Corp.'s net profit for its fiscal first quarter, even as demand soared for its more fuel-efficient models.

Income for Japan's No. 1 auto maker by sales volume was also battered by a stronger yen, which reduces the value of overseas earnings, as well as higher material costs and losses from vehicle leasing in the U.S.

August 8, 2008

Bill Would Let Insurers Track Where, When, How Californians Drive

SANTA MONICA, Calif. -- Legislation that would allow insurance companies to track when, where and how Californians drive passed the Senate Appropriations committee today.

The bill authorizes different insurance rates for drivers who choose to protect their privacy and those who agree to place a "black box" in their cars.

Continue reading "Bill Would Let Insurers Track Where, When, How Californians Drive"

Auto Affordability Best in 28 Years

DALLAS -- The purchase of an average-priced new vehicle took 23.1 weeks of median family income in the second quarter, according to the Auto Affordability Index compiled by Comerica Bank.

The latest reading is down 0.9 weeks from the first quarter and 1.9 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $27,704 in the second quarter. Last quarter, it took fewer weeks of work to purchase a new car than in any quarter since early 1980.

Continue reading "Auto Affordability Best in 28 Years"

Keeping Your Car Can Save You Money

BETHESDA, Md. -- You've just made your last car payment. Should you keep the car or trade it in for a brand new vehicle? According to the Car Care Council, keeping your car rather than buying a new one is the way to go, especially if your goal is to save money.

"People who keep their cars, treat them as valuable investments and commit to regular vehicle maintenance, end up saving a lot of money," said Rich White, executive director, Car Care Council.

Continue reading "Keeping Your Car Can Save You Money"

August 7, 2008

Acura Announces Pricing For 2009 MDX

TORRANCE, Calif., -- Acura has announced pricing for the 2009 MDX luxury SUV, which is now on-sale at Acura dealerships nationwide.

For 2009, the MDX's power rear tailgate feature is standard equipment with the Technology and Sport packages - previously the power rear tailgate was only available on the Entertainment Package.

Continue reading "Acura Announces Pricing For 2009 MDX"

Nissan ECO Pedal system to be commercialized by 2009

TOKYO -- Nissan Motor Co., Ltd., today unveiled the ECO Pedal - a world first technology - designed to assist drivers to become more fuel-efficient.

When the eco-pedal system is on, each time the driver steps on the accelarator, a counter push-back control mechanism is activated if the system detects excess pressure, helping to inform the driver that they could be using more fuel than required.

Continue reading "Nissan ECO Pedal system to be commercialized by 2009"

August 6, 2008

Jim Press on Chrysler's Cash Position

Chrysler Vice Chairman and President Jim Press, speaking on the Paul W. Smith Show, said that the company is in a "very good, strong cash position", and that eliminating fleet sales and some models will position the company for a stronger future.

"We've been able to keep our cash position pretty much where it was at the beginning of this year," Press said during a 20-minute interview on Detroit radio station WJR-AM radio (760).

Continue reading "Jim Press on Chrysler's Cash Position"

Toyota Awards $500,000 to IIT Academy

Chicago -- The Center for Strategic Competitiveness at Illinois Institute of Technology (IIT) Stuart School of Business is pleased to announce that it has received a generous $500,000 grant from the Toyota U.S.A. Foundation to support the Academy for Future Leaders in Science and Technology.

The Academy, scheduled to launch in the summer of 2009, invites talented, but often under-served high school students, aged 16-18, from the metropolitan Chicago area to attend a summer-long science and technology education and internship experience at IIT's university campus.

Continue reading "Toyota Awards $500,000 to IIT Academy"

Chrysler Presents 16 Scholarships for Telling Their Story of Metro Detroit

AUBURN HILLS, Mich. -- Today Chrysler LLC presented high school, undergraduate and graduate student recipients of the "My Journey Through the D" essay contest with scholarships awards. Winning students shared a personal account or defining moment that underscores Detroit's impact on their life.

Of the nearly 400 applications submitted, 16 winning students were selected in the high school, undergraduate and graduate student categories and the sum of all scholarship awards total $29,000.

Continue reading "Chrysler Presents 16 Scholarships for Telling Their Story of Metro Detroit"

CarMax Reports Decline in Store Sales

RICHMOND, Va. -- CarMax, Inc. today reported that comparable store used unit sales declined by an average of 17% for the months of June and July.

"As reported in June, the sudden and dramatic drop-off in our sales beginning Memorial Day weekend caused us to withdraw our previous sales and earnings guidance for the fiscal year," said Tom Folliard, president and chief executive officer.

Continue reading "CarMax Reports Decline in Store Sales"

August 5, 2008

Toyota Announces Prices for 2009 RAV4 SUV

TORRANCE, Calif. -- Toyota Motor Sales (TMS), U.S.A., Inc., announced manufacturer's suggested retail prices (MSRP) today for the 2009 RAV4 compact sport utility vehicle (SUV).

Equipped with numerous enhancements for 2009, the average MSRP for the RAV4 will increase by $224, or 0.9 percent. The 2009 RAV4 will begin arriving at Toyota dealerships in early September.

Continue reading "Toyota Announces Prices for 2009 RAV4 SUV"

Car Leasing's Fall Means Cost Climb for Consumer

A shakeout in the auto leasing industry that revved up with Chrysler's exit from the leasing business last week is expected to be felt quickly by consumers who enjoy switching vehicles every two or three years without down payments or other ownership obligations.

The used SUVs and other gas-guzzlers that the companies' financing arms sell when leases expire are fetching far less than initially expected, now that gas has surged to $4 a gallon.

Economy cars, holding their value well because of better gas mileage, are expected to be readily available and lease for roughly their current average price of $340 per month.

Bush Rules on Fuel Economy Hit from 2 Sides

At the first public hearing on the rules Monday, critics accused the National Highway Traffic Safety Administration of using false assumptions about gas prices and environmental impacts when it set the proposed fuel economy standards. For their part, auto industry officials insisted that the standards are so aggressive, they might be tough for some automakers to meet.

David Westcott, a Buick and Pontiac dealer from North Carolina who spoke on behalf of the National Automobile Dealers Association, noted that new vehicle sales have plummeted to a two-decade low as cash-strapped consumers are having trouble getting the credit needed to make a purchase. He warned that if adding new fuel-saving technologies increases the price of vehicles, it could keep many Americans from trading in their older, less efficient cars and trucks.

Toyota Unit Cuts Staff Amid Weak U.S. Sales

TOKYO -- A production unit of Toyota Motor Corp. said Tuesday it laid off about 800 contract workers in June and August to reduce production of vehicles bound for North America, as car sales in the U.S. continue to slump.

However, a spokesman at Toyota Motor Kyushu Inc. said it will rehire 500 contract staff in the autumn or afterward to prepare to increase output, indicating it expects the production adjustment to end in several months. Toyota last week cut its U.S. sales projection for this year to 2.44 million vehicles from its previous plan of 2.64 million.

US Auto Sales Slump to 16-Year Low in July

DETROIT - U.S. auto sales slumped to a 16-year low in July as automakers failed to keep up with consumers' growing demand for smaller, more fuel-efficient vehicles. While production changes may help that problem, trouble in the credit and auto leasing markets will continue to take a toll on sales.

General Motors, Ford, Toyota and other automakers said Friday that their U.S. sales fell by double-digits. Nissan Motor Co. was the only major automaker to report a gain, with truck sales up 18 percent thanks in part to the new Rogue crossover and a boost in incentives. Nissan's overall sales rose 8.5 percent.

Automakers Race Time as Their Cash Runs Low

DETROIT -- The downturn in the American auto industry is rapidly becoming a full-blown fight for survival among Detroit's big automakers. G.M. and Ford had expected economic conditions to improve in the second half of this year, but now are forecasting an even more dismal sales environment.

Neither company appears in immediate danger of failure. But analysts say Detroit is in a race against time. "Things are pretty bad, and the river is getting deeper, faster and wider," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. "The question is, can they get to [the] other side before the cash runs out?

Chrysler Diversity Supplier Group Recognizes Top Suppliers and Employees

AUBURN HILLS, Mich. -- Chrysler LLC's Diversity Supplier Development group recognized top performing suppliers and employees that exemplify the core values of Chrysler LLC's Global Sourcing organization.

Employees are recognized for their efforts in successfully working with suppliers to improve spending with qualified minority suppliers. The recognized companies and individuals are:

Continue reading "Chrysler Diversity Supplier Group Recognizes Top Suppliers and Employees"

Chrysler Announces Leadership Changes

AUBURN HILLS, Mich. -- Chrysler LLC today announced the appointment of Jan A. Bertsch, Senior Vice President Treasurer and Chief Information Officer as part of an on-going effort to streamline functions for greater efficiencies. Bertsch will lead the efforts to consolidate Information Technology Management and Treasury into a new structure.

Under this integrated structure, Bertsch is responsible for the Company's global treasury operations. She continues to direct the Company's systems and computer hardware strategy and planning, systems applications development, data center operations and telecommunications network operations.

Continue reading "Chrysler Announces Leadership Changes"

August 4, 2008

18% of New Vehicles Cost over $100 to Fill at Pump

SANTA MONICA, Calif. -- Less than one year ago the national average price for regular gasoline was $2.96 per gallon, and many consumers simply wrote off monthly fuels costs as a mere annoyance.

Edmunds data shows that with gas prices at $4.06 per gallon (the average national price for regular fuel on July 21), there are 60 vehicles in the new-vehicle market that cost consumers more than $100 to fill.

Continue reading "18% of New Vehicles Cost over $100 to Fill at Pump"

Chrysler Financial Announces Completion of Credit Facilities Renewal

FARMINGTON HILLS, Mich. -- Chrysler Financial today announced that it has completed the renewal of its annual credit facilities.

The $24 billion credit facilities provide funding for the company's dealer and consumer financial services products. Originally, the company was seeking a renewal of its conduit credit facilities in the amount of $30 billion. Chrysler Financial reduced the amount required due to conditions in the credit markets and changes in the company's retail strategy.

Continue reading "Chrysler Financial Announces Completion of Credit Facilities Renewal"

August 3, 2008

Ford tunes cars to run on regular, vs. premium

DEARBORN, Mich. - With per-gallon prices hovering around $4, customers are sensitive to every penny spent at the pump, and Ford Motor Company is leveraging technologies to help consumers avoid an even further hit to their wallets.

Ford, Lincoln and Mercury vehicles, including luxury models like the all-new 2009 Lincoln MKS, run - and run well - on regular unleaded gas, a true competitive advantage given today's skyrocketing fuel costs.

Continue reading "Ford tunes cars to run on regular, vs. premium"

Toyota Announces Prices for 2009 Yaris Subcompact

TORRANCE, Calif. -- Toyota Motor Sales (TMS), U.S.A., Inc., today announced manufacturer's suggested retail prices (MSRP) for the three fuel efficient 2009 Toyota Yaris subcompact models.

MSRPs will range from $12,205 for the three-door Liftback Base model to $15,880 for the Sedan S model when the vehicles hit dealerships later this summer.

Continue reading "Toyota Announces Prices for 2009 Yaris Subcompact"

Posted by Frank at 11:15 AM | Email to a friend | Permalink | Comments (0) | TrackBack (0)

Car Buyer's Notebook

Recent Stories

Topics