The Tokyo Motor Show officially opens on October 24, hosting a wide roster of automakers to show off their latest vehicles set to be released in the market. And just when many people were looking forward to the event, Hyundai has begged off from the Tokyo Motor Show despite having paid a non-refundable reservation fee of $122,000.

There were no definitive reasons given for Hyundai’s pull out but it doesn’t take a genius to figure out that it has something to do with expenses. If Hyundai participated, they would have to address other costs that include outlays, staffing and other support materials for any new model they would be unveiling as well as the space rental for the duration of the event. as well as the space rental for the duration of the event.

With their pull-out, the Tokyo Motor Show looms like a showdown among Japan’s familiar car brands. Only two other foreign car companies remain for the event and these are Alpina Burkard Bovensiepen and Lotus. With 3 weeks to go, will they stay or will they go?

(Source) NY Times

Tags: Alpina, automakers, burkard, car brands, car companies, duration, foreign car, genius, Hyundai, Japan, Lotus, new model, october 24, outlays, refundable, reservation fee, support materials, tokyo motor show

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The electric car is all the rave these days. And while we have seen a lot of concept cars in the making, many compare it to the route of the Apollo Programs’ Lunar Rover which took years to complete. In the same way, electric cars are still a bit lagging and one derivative is cost. However, most critics feel that pricing structures may be a hindrance, especially if the current economic situation does not improve. For example, would you pay over $15,000 for an electric car?

“What people overlook is that accomplishing ‘big picture’ programs like Apollo require accepting the concept of unlimited spending to achieve the mission,” says Ron Cogan, editor and publisher of the industry authority Green Car Journal and editor of GreenCar.com. “Current levels of unprecedented federal spending notwithstanding, electric cars are not an exclusive answer to future transportation challenges and consumers will not be willing to buy them at all costs.”

The primary culprit is not the car. Automakers in the 1990s proved they could produce full-function electric vehicles offering the attributes that most drivers expect, although with limited driving range of about 100 miles or so. What they couldn’t do was replace a gas tank with an advanced battery pack that cost less than $20,000 to $30,000. Extraordinarily high battery cost is why we’re seeing newly-announced battery electric sedans with a retail cost of $45,000 to $55,000.

(Source) Press

Tags: apollo program, apollo programs, automakers, car journal, cogan, Concept Cars, current economic situation, driving range, editor and publisher, electric car, electric cars, electric vehicles, federal spending, future transportation, gas tank, hindrance, lunar rover, sedans, transportation challenges

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According to a new study from Grant Thornton LLP, the financial advisory firm, European and Asian automakers will roll out more cars in North America than Detroit’s ‘Big Three’ by the year 2012.

The study anticipates that after the completion of the restructuring of the domestic auto industry, the combined capacity of Ford, General Motors and Chrysler Group LLC in the North American will decrease by more than 4 million units or a 35 percent decrease compared to 2008, for a total of 7.5 million units in 2012. The study also determines that this dramatic shift in production will have a big impact on North American parts suppliers that will need to guarantee more business from European and Asian makers.

Tags: 2012, Asian, automakers, European, financial advisory firm, Grant Thornton LLP, north america

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“Don’t Shrink it, Rethink it” is KVA’s motto. They feel consumers don’t want smaller cars but they do want to be comfortable and safe while driving their automobiles. KVA’s ms² advanced high strength steel is able to provide automakers with a direct solution to improve the safety of their vehicles, while reducing overall curb weight without sending sticker prices spiraling out of control. Using KVA’s processed martensitic stainless steel (ms²) can reduce a vehicle’s structured weight by nearly 40% percent. “With KVA’s ms² ™automakers can develop vehicles that are safe and meet all environmental requirements with cost-effective, lightweight advanced high strength steel technology,” says KVA’s Business Development Officer.

President Obama’s administration recently issued new fuel economy standards for passenger cars and light trucks, raising the requisite industry average to 35.5 miles-per-gallon (mpg) by 2016. Under these new rules, passenger vehicles will have to meet an average 39 mpg, while light trucks, 30 mpg. This will require makers to reduce an average weight of 350 pounds, approximated to save 1.8 billion barrels of oil and raise the average fuel efficiency of a new car by 30 percent.

Tags: automakers, environmental, fuel economy standards, fuel efficiency, KVA, steel, technology

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If you think the Honda Insight is the only thing that is making Honda hot these days, check the studies and records. It seems that Honda has scored another feather to its cap by being the preferred Supplier Working Relations.

Since 2002, Toyota has been lording it over as the best in the automaker circle. But apparently, Honda has been busy working on all aspects of its operation, including supplier working relations which is probably the reason for overtaking Toyota Motors this time around.

“Toyota supplier relations have lost significant ground in the last two years and it has slipped out of first place in our Study – a position it held since we started measuring the supplier working relations of the six automakers in 2002 with our Working Relations Index. Suppliers suggest a potential reason for this drop is a younger, less experienced staff in Toyota’s purchasing group for whom the ‘Toyota Way’ is not yet the way of doing things.”

Is Toyota slipping or are they just playing it safe? Remember, Toyota reported a first ever loss earlier this year and it seems that their fortunes are falling one after another. What could possibly be next?

(Source) Press

Tags: automakers, fortunes, Honda, honda insight, preferred supplier, purchasing group, Toyota, toyota motors, toyota way

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On whether their claim for restructuring is a fluke or an escape clause will be known soon as all eyes are now on the celebrated restructuring program of Chrysler and General Motors. No other than U.S. President Barack Obama is keenly awaiting what restructuring plans are being done, closely overseeing if they are doing good on what they promised.

Obama said in an interview broadcast Saturday on C-SPAN that the beleaguered automakers should aim to have product lines that appeal to consumers — and that means fuel efficient and high-performance vehicles that Americans hunger for.

Now if direction is what both companies need, these remarks from President Obama should be something worth putting into consideration. Obama and the world are eagerly awaiting the restructuring plans, hoping that it will be something truly worth waiting.

(Source) AFP

Tags: automakers, Barack Obama, broadcast, Chrysler, consumers, General Motors, GM, performance vehicles, restructuring

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Due to continued poor sales, General Motors has boldly announced that it will be closing down 1,100 dealers late next year, a move that all the more puts the car industry into deeper turmoil. GM’s announcement is more bad economic news for dealers, communities and businesses still reeling from Chrysler’s similar nationwide dealer cuts a day earlier. Both automakers are scrambling to reorganize and stay alive in a severe recession that has devastated sales of cars and trucks.

While GM doesn’t own the dealers, its network is too big, causing dealers to compete with each other and giving shoppers too much leverage to talk down prices and hurt the company’s future sales.

“Too many dealers, in actuality, are a problem,” Mark LaNeve, GM’s vice president of North American sales and marketing, said in a conference call with reporters.

GM declined to reveal which dealers will be eliminated and left it up to franchise owners to report the decision to customers.

The cuts are part of a larger GM plan to drop 2,600, or nearly 42 percent of its 6,200 dealerships as the automaker tries to restructure outside of bankruptcy court and become profitable again. Thousands of jobs will likely be lost and governments will lose untold dollars in tax revenue as dealerships are forced to close.

(Source) Memphis Daily

Tags: actuality, automaker, automakers, bankruptcy court, car industry, Chrysler, conference call, economic news, future sales, General Motors, GM, governments, leverage, mark laneve, memphis, recession, sales and marketing, shoppers, turmoil, vice president

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For BMW’s proper use of steel that adhere to market demand and safety, the BMW X6 research and development team has been awarded the annual Automotive Annual Excellence Award. The award was presented today at the Great Designs in Steel seminar in Livonia, Mich.

The award recognizes individuals or teams from automakers, suppliers or the academic community who embrace innovation and make significant contributions to the advancement of steel in the automotive marketplace.

“The BMW X6 utilizes steel solutions that add to its unique, sporty design and meet new crash-test requirements, without sacrificing safety or increasing its weight,” said Ron Krupitzer, vice president of automotive applications for AISI’s SMDI. “BMW’s innovative use of ultra high-strength steel technologies has resulted in a vehicle that is safe, lightweight, environmentally friendly and offers the best fuel economy in its class.”

BMW uses unique processing technologies and several complex, ultra high-strength steel grades in its design. The vehicle features a steel structure and steel side frames, panels, rear and B-Pillar reinforcements and longitudinal rear member, which improve cost, performance, reduce weight and meet Insurance Institute for Highway Safety side-impact crash test requirements.

(Source) Press

Tags: academic community, automakers, automotive marketplace, bmw x6, class bmw, crash test, excellence award, fuel economy, processing technologies, side frames, side impact, sporty design, steel grades, steel solutions, steel structure, steel technologies, strength steel, test requirements

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May is EcoDriving month hence a call for motorists to try and improve their driving skills such as improving fuel consumption and reducing the carbon footprint use. To mark the first EcoDriving month, the program is partnering with Indy Goes Green, sponsored by the racing team of Nelson Philippe. The program raises awareness about how to be an EcoDriver, and aims to be the first-ever carbon neutral Indy team.

“The key to EcoDriving is that anyone can do it, in any vehicle, and best of all, it’s easy,” said Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers. “Now, as the summer driving season gets underway, EcoDriving month is the ideal time for each of us to renew our green driving habits.”

During National EcoDriving Month, the Auto Alliance and its 11 global automakers are working to educate consumers about the benefits of EcoDriving through www.EcoDrivingUSA.com. Practicing EcoDriving produces the highest mileage from every single vehicle, regardless of size or age–potentially affecting the United States’ entire fleet of 245 million automobiles. As a result, the possible benefits of the program are significant, and many fuel-saving EcoDriving practices are surprisingly simple, such as:

• The U.S. Department of Transportation estimates that using cruise control for 10,000 of the miles driven in a year could save a driver nearly $200 and more than 60 gallons of fuel.
• Observing the speed limit and not exceeding 60 mph, where legally allowed, can improve mileage by up to 23 percent.
• Traffic lights are often synchronized so that a motorist driving at a specific speed will pass through a series of green lights without stopping. Driving at a steady speed can help drivers avoid red lights, therefore keeping their vehicles moving more efficiently.

(Source) Press

Tags: alliance of automobile manufacturers, auto alliance, automakers, automobiles, consumers, cruise control, department of transportation, estimates, fleet, fuel consumption, indy, mileage, motorists, nelson philippe, speed limit, steady speed, traffic lights

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If you think Chrysler’s declaration of bankruptcy is one setback, wait until it amplifies on the affiliated suppliers. Apparently, the auto suppliers will also have some problems coming their way, potentially losing one of their biggest clients for some time now.

Problems with suppliers could also impact production at the US plants of other major automakers such as Ford, Toyota and Honda which have been working with months to ensure to stability of their supply.

Under a plan announced Thursday by President Barack Obama, Chrysler aims for a “surgical” bankruptcy to wipe out a portion of its debts, allowing the creation of a new firm tied to Fiat to put the Detroit firm on the road to profitability.

Chrysler said it will idle most plants during the bankruptcy process, which it anticipates will take 30 to 60 days. But analysts warn the process could take significantly longer.

And suppliers were already smarting from news that General Motors — which has until June 1 to present a viability plan to the US Treasury — plans to shut most of its assembly plants during May, June and July to help control inventory and avoid difficulties with parts shortages.

US auto sales, which collapsed last fall amid a deepening economic crisis, were down 34 percent in April and are not expected to improve for months.

(Source) ABS CBN

Tags: assembly plants, auto sales, Auto Suppliers, automakers, bankruptcy process, Barack Obama, Chrysler, economic crisis, Fiat, Ford, ford toyota, General Motors, Honda, us treasury

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Until something concrete happens, the car industry seems to be at a standstill until the smoke clears on the current issue covering General Motors and Chrysler. The matter of will they still operate and who has got control over who has left the automotive industry in a standoff for now.

Dennis Cuneo, a former high-ranking Toyota executive, would love to buy an auto parts maker in the Midwest. It would cost a pittance, and the profit potential would be tremendous when Americans are buying cars and trucks again.

But Cuneo can’t seriously pursue such a deal until at least June, or whenever there’s finally some clarity about whether General Motors and Chrysler are still alive, who controls them, what brands they own and what models they still plan to make.

Cuneo’s dilemma is just one example of the paralysis gripping the Detroit region and other automotive towns in nearby states, while GM, Chrysler, their unions, debt holders and the U.S. government try to grind out deals to reshape the automakers as viable companies.

For workers, the paralysis means jobs are in limbo. Houses won’t sell. Lives are on hold.

And for people like Cuneo who still see great potential in the skilled workers and engineering knowhow of Michigan’s supplier base, there’s no way to properly assess the value of an acquisition prospect.

He and potential partners would want a company that makes high-value-added parts with skilled workers, that can’t easily be outsourced to some low-cost-labor haven.

(Source) Freep

Tags: auto parts, automakers, automotive industry, buying cars, car industry, debt holders, General Motors, paralysis, potential partners, skilled workers, viable companies

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There are a lot of things you can purchase online these days and cars are included. And while technology has made it easier for the modern consumer, it has also become an opportunity for crooks to take advantage of. For that matter, key automotive industry leaders announced today they are forming an alliance to address the growing threat of fraud in the online private party used car marketplace. ‘F.A.I.R.’ (Fraud Abatement through Industry Response) will host their first one-day roundtable event, including a public forum for Q & A, in Los Angeles on April 23, 2009 at the historic Petersen Automotive Museum.

Forty-four million used cars were sold in the US last year; over half of which were sold online. During the same period, Internet fraud rose 33 percent, according to a recent F.B.I./IC3 report. With consumer confidence at an all time low, the threat of increased risk could dampen online sales and further harm the ailing automotive industry if steps are not immediately taken to address this challenge.

“The for sale by owner market is being choked by fraud,” said Reza Bundy, CEO of Mota.com, a partner in the F.A.I.R. initiative. “The occurrence of fraud and financial loss in the peer-to-peer space is increasing and together our intent is to create standards that will ensure fair and square transactions for American consumers.”

(Source) Press

Tags: abatement, american consumers, automakers, automotive industry, bundy, Cars, ceo, consumer confidence, crooks, industry leaders, industry response, initiative, internet fraud, marketplace, occurrence, Petersen Automotive Museum, private party, public forum, reza, risk

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Who says Mercedes Benz is ignorant when it comes to developing eco-friendly cars? Well if the Mercedes Benz F-Cell Roadster is any indication, this is perhaps their ticket towards alternative cars using eco-friendly modes of transportation. The concept car is the F-Cell Roadster, an emissions-free vehicle whose body is patterned after the brand’s 1886 Benz Patent Motor Car.

It was created as a “training project,” meaning the company essentially used junior-level employees to create the concept. Nice to see that while some automakers are sweating things out, at least one has plenty of time to goof off with style.

(Source) Men.Style.Com

Tags: alternative cars, automakers, concept car, eco friendly cars, emissions, Mercedes-Benz, patent, roadster

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Advertising may be a tactic that most auto companies are trying to cut down on but make no mistake about it, there are some who have kept up with the advertising prowess to ensure that they get noticed. comScore, Inc. today released the results of a study of online automotive advertising, based on data from the comScore Ad Metrix service, including the debut release of data from comScore’s new product-level dictionary.

The study revealed that Ford Motor Company was the top auto advertiser in January with 481 million display ad impressions, followed by Toyota with 384 million and General Motors with 316 million. The top ten auto manufacturers accounted for 58 percent of the 1.9 billion ad impressions in the segment, with the “Big Three” U.S. automakers (Ford, GM and Chrysler) accounting for 26 percent.

Automotive advertisers delivered nearly 2 billion ad impressions and reached 120 million people, or 65 percent of the total Internet audience, in January 2009. This represents a decline of 43 percent in online ad impressions for the auto industry versus January 2008.

“The collective online advertising strategy of automakers shows a low level of online advertising for their green models and higher levels for their heavier gas consumption vehicles,” said Jeff Hackett, comScore senior vice president. “While SUVs may still drive a larger share of sales for the automakers, comScore research has shown that online is an effective brand-building medium and now might be a good time to begin shifting allocation of dollars and mindshare towards the models of the future.”

(Source) Press

Tags: advertising strategy, auto advertising, auto companies, auto industry, auto manufacturers, automakers, automotive advertising, debut release, ford motor, ford motor company, future source, gas consumption, General Motors, impressions, internet audience, jeff hackett, mindshare, prowess, senior vice president, top auto

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With most car companies basically frantic about trying to survive the economic storm, the deals and throw-ins of most companies have become too good to be true. Too good that it should not be surprising that the cost of new cars may very well be cheaper compared to buying a used car.

Edmunds.com, the premier resource for automotive information, today announced that the deals on some new cars are so generous that they actually make the new car less expensive than the one-year old used version of the same model.

Some automakers are currently offering special finance rates among the incentives offers they use to attract buyers. When applying the appropriate special finance rates being offered as incentives for new car purchases, Edmunds.com found the savings rose as high as $6,175. Edmunds.com estimates that approximately 18 percent of new car buyers qualify for the special finance rates offered by automakers.

“Never underestimate the cost of the interest on a loan, and never forget that if you have decent credit, you may be able to negotiate the interest rate you are offered,” recommends Edmunds.com Senior Consumer Advice Editor Philip Reed. “Car shoppers should look at all the costs of buying a car, not just the purchase price.”

(Source) Press

Tags: automakers, automotive information, buying a used car, car buyers, car companies, car purchases, car shoppers, economic storm, finance rates, interest rate, new car, new cars, price source

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