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

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Internet marketing and SEO practices have been known to be the best way to market your business online and one testimony to that respect is that of the strategy being employed by Santa Fe Ford. One factor that can be trace to this is the fact that more people are turning to the web to find used cars and this seems to be the secret weapon of Greg Waitcus, Vice President, Santa Fe Ford.

As you are well aware, most car companies today are desperately hanging on to dear life, much brought about the recession. While the “Cash for Clunkers” deal is being seen as a catalyst to change all that, used cars may yet offer something better as far as trade-in value is concerned.

And should that be the case, it would not be surprising in some cases where some cars may be bought at higher prices compared to the trade-in value that was set by the government when it comes to the CARS rebate program.

(Source) Press

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Volvo is shifting into high gear for their fuel cell technology venture, possibly creating additional jobs in Stockholm if everything goes according to plan. Swedish Energy Agency and the Volvo Group are investing SEK 200 M in Volvo’s development of fuel cells. The investment will create around 100 new positions in the Gothenburg region within the next three years.

In the autumn of 2009, Powercell Sweden will need to hire around 60 people in an entirely new plant in the Gothenburg region. Per Wassén, who is Investment Director at Volvo Technology Transfer and chairman of Powercell Sweden AB, foresees that the company will create around 100 new jobs within the next three years.

With the growing need for alternative energy and fuel for various means but largely for vehicles, fuel cell technology can truly be a big help towards the efforts of local motorists and car companies. A fuel cell resembles a small battery. It is charged with hydrogen gas and converts this into electricity, water and carbon dioxide through a chemical reaction.

The areas of use can be power supply units for households, trucks, boats, radio masts in remote locations and electric hybrid vehicles. Compared with normal diesel or gas-powered engines, fuel cells produce significantly less carbon dioxide and no emissions at all of particulates and nitrogen oxides. In addition, they are more efficient, smaller and lighter.

(Source) Press

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For the new chief executive, steering the new Chrysler to help generate more profits for Fiat is the objective of this acquisition. Being given the controlling interest of Chrysler, the merger of both car companies are upbeat that they can get by the sagging fortunes that befell the U.S. car company.

Calling it a new season of capitalism, Marchionne is no stranger to business challenges. He was able to pull it off in 2004 when he took over Fiat and now, expectations are high that he will be able to pull it off again. Actually he has already started, assigning top Fiat managers in Detroit last week. This is seen as the preliminary moves to which a whole lot more is expected in the following months.

“Marchionne knows he has to race against time,” the Corriere della Sera newspaper of Milan explained. “He knows that when the debts are eliminated, the costs reduced to the levels of Japanese competitors with factories in the United States, then miracles of technology and marketing have to be performed to give back life to a company that in the last six months has almost halved its sales and which, even before the financial crisis, saw its share of the U.S. market fall from 15 percent to 10 percent.”

(Source) Washington Times

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With a new structure, the new company that Chrysler and Fiat have built has bared their initial plans. And topping the agenda is focusing on the key brands Chrysler, Jeep, Dodge and Mopar. And of course, the next itinerary is to rebuild the brand trust and confidence, something that is to be executed immediately.

Chrysler Group’s new organization is based on a global brand-focused structure comprised of the Chrysler, Jeep, Dodge and Mopar brands, each with full profit and loss accountability. Common Commercial, Industrial and Corporate functions have been put in place to support the development, manufacture, distribution and sale of Chrysler, Jeep and Dodge products and Mopar parts by the brand organizations.

With the new outlook, Chrysler and Fiat are aiming to correct the issues surrounding the fall of the old management style. And with the working minds of two distinguished car companies, it may just work.

(Source) Press

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In a move that is expected to prepare them for the larger demands for their small-sized cars, Toyota Motor’s of Japan has announced that they will be cutting costs in production for their compact cars by $1.44 billion annually. Toyota aims to approach their car manufacturing practices wisely as they are definitely learning the lessons from the debacle that has hit auto giants GM and Chrysler.

Toyota has been trying to compete with the big boys as luxury cars and eco-friendly concept cars have risen at the moment in attention. However, reality check reveals that with the growing interest and plans of most standing car companies, overlooking their famed compact cars such as the Corolla and the Vits should not be left out.

Hence, while the luxury and eco-friendly car market promise to rack in profits, the same is foreseen for their regular compact cars. And with the right tweaks, there is no doubt that they can expect some revenue contributions from these cars as well as people are wising up their motoring needs as well by turning to smaller compact cars that consume fuel economically.

(Source) Asia One

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What are the chances of a person buying a car from a company going bankrupt? Would it make a difference? If the this information revealed by a study from Kelly Blue Book is any indication, the answer is it wouldn’t make a difference.

The whole area of concern here is that in some cases, people may place under consideration the state of a company, most probably referring to after-sales service which may eventually be gone should a company shut down.

A lot of these new problems surround the impending bankruptcy of General Motors and restructuring of Chrysler. When buying a car, you just have to go to the extreme case scenarios. How can you maintain a car if the actual manufacturer is no longer around?

These car buyers are banking on government aid and of course the pledge that these car companies will retain the after-sales services due to their customers. Such was declared even when the embattled car companies got entangled in this mess.

Regardless, it seems people will still consider it, especially the ones expecting some discounts since in these cases, companies would want to clean out their inventory rather than leaving them without a sale.

(Source) Press

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Today it is a matter of wise management to be able to get through the financial crunch of business. Such measures as this one undertaken by Advance Auto Parts should serve as a model for most auto companies, the need to address inventory management to avoid overstocking which may eventually lead to losses.

Similar to modern consumer products, the need to identify proper car parts as needed by consumers and car companies has to be addressed. Doing an analysis manually would be fine but why bother if you can get a software to help the auto parts business operate a wiser business model for proper inventory management and distribution of car parts.

Advance Auto Parts is using PASW Modeler (formerly Clementine) and PASW Collaboration & Deployment Services (formerly Predictive Enterprise Services) for market basket analysis and to help optimize its supply chain to accurately manage inventory at warehouses and individual stores.

Clearly, this is an important need in optimizing business operations. With the help of the SPSS Predictive Analysis Software, auto parts distributors can expect a reliable way of controlling their inventory and not overstock and encounter losses in the end.

(Source) Press

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It seems that the car scrappage schemes are finally paying off. At least that is that it seems like for Mazda plants in Japan which have reportedly resumed operations after being suspended due to plummeting sales ever since the recession set in.

We are all aware that Europe had been in the forefront of this scheme which aims to entice motorists to trade in their old cars for discounts on new ones. Apparently a lot of them grabbed the deal to which rising demand is now occurring hence business as usual for car companies to satisfy the new demand.

This leaves a bright spot in the car industry. Apparently other cars are bound to follow the lead of Mazda of Japan but no one knows when that would be. This is the best news we have gotten from the auto industry to date!

(Source) RAC

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Chrysler and General Motors are expected to announce car dealership closures in the coming days and many are awaiting the impact that this would have on local communities.

Chrysler has communicated to 789 of its 3188 dealerships that they will have to close by June 9. Most of the affected dealerships are located in densely populated areas where there are multiple Chrysler dealerships currently competing for the same business. It is estimated that approximately 38,000 people will lose their jobs. It is rumored that tomorrow, General Motors will announce 1,000-2,000 dealership closings.

Local communities who are losing dealerships will clearly see a rise in unemployment. Sales tax is often cited as another area of loss, but this is actually not an overall risk.

“Dealerships may be going away, but customers are not. In other words, when a dealership closes, its customer may buy a competitive product, or buy from another Chrysler dealership. The sales tax is still being paid. The risk for communities is that the tax may shift to a different town,” explained Edmunds.com CEO Jeremy Anwyl.

The closing of dealerships will change the competitive landscape for buyers. Currently, shoppers in saturated markets can essentially instigate “bidding wars” for their business, encouraging dealerships to undercut each others’ prices in competition for each car sale. With fewer dealerships in each area, that will become much harder to do, and buyers will pay more as a result.

Some people mistakenly believe that car companies will somehow save a significant amount of money by having fewer dealerships. In truth, there are only minor savings gained by cutting the regional staff and the streamlining of certain processes required to serve a smaller dealer body.

“As these dealers are more competitive against other brands, sales could increase, at least in theory,” commented Anwyl. “However, in practice, there is risk: One path to profitability for a dealer is through higher profit margins achieved by charging higher prices. As prices rise, other brands become more competitive and consumers may flee. In this way, dealerships may benefit, but manufacturers suffer further sales declines.”

“This move allows Chrysler to eliminate dealerships that did not embrace the opportunity to extend their franchises to include Dodge and Jeep vehicles, which are also owned by the Chrysler LLC parent company,” noted Edmunds’ AutoObserver.com Editor Michelle Krebs. “Chrysler didn’t play favorites in making the decision; a handful of the stores being closed are owned by well-connected industry ‘hot shots.’”

(Source) Press

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The falling trend in the car industry continues and to sustain their business, expect some tire manufacturers to lower their prices to stay afloat as well. It is practically a chain reaction. With most car companies suffering from low car sales, the demand for rubber tires is likewise expected to encounter rough sailing.

Tire makers, the biggest consumers of rubber, could report a 6.8 percent sales slump in 2009 as the global recession cuts auto demand, according to the government-funded International Rubber Study Group in Singapore. Supplies from Thailand, the top exporter, will increase after a seasonal drop, producers say. Prices of $1,530 a ton are 18 percent higher than alternatives made from oil, data compiled by Bloomberg News shows.

Demand will drop because people are buying fewer cars and delaying the purchase of replacement tires. U.S. auto sales plunged 37 percent in March, and the annual rate fell to the lowest in more than 25 years in February, according to Autodata Corp. Japan’s sales tumbled 32 percent in March to a level not seen in more than three decades. U.S. vehicle miles traveled fell by 7 billion, or 3.1 percent, in January from a year ago, the Federal Highway Administration said.

(Source) Ohio

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In a move to enhance the pace and use of electrics cars in their region, China has reportedly announced that they will be paying subsidies to car-buyers to support electric cars.

Under the new strategy, unveiled in a Friday conference attended by several Chinese officials as well as car firms’ executives, Beijing launches nationwide efforts involving car-producers, research institutes and government agencies to prevail over the technological and safety obstacles to develop electric cars.

China will invest $146b in research on the field, while providing most of the subsidies to consumers, rather than car companies. “Otherwise the companies will just fight for subsidies,” vice minister Zhang Shaochun said.

He added that the government believes the market should decide which electric vehicle model would become popular. So the government is paying some research subsidies, while the main move will be to provide large subsidies for buyers of electric cars.

Beijing has already provided up to 60,000 yuan, ($8,800), for purchases by taxi fleets and local government agencies.

(Source) Press

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These days, car owners are trying to wise up, foregoing the acquisition of a new car and turning to other means to keep their vehicles afloat, the Motor Vehicle Owners’ Right to Repair Act is back in the spotlight as car companies seek to reduce overhead and car sales continue a rapid decline.

With motorists keeping vehicles longer and dealership service bays closing at a swift pace, growing numbers of car owners are expected to turn to independent auto repair shops for service, according to Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association (AAIA).

Because vehicles are becoming increasingly sophisticated with virtually every system either monitored or controlled by computers, servicing these vehicle systems to keep them in safe and efficient working condition requires ready access to complete and accurate repair information from the car companies.

The Motor Vehicle Owners’ Right to Repair Act offers protections for vehicle owners by making it illegal for vehicle manufacturers to withhold information necessary to diagnose, service or repair motor vehicles.

“Without the Right to Repair Act, millions of motorists would be forced back to fewer dealers for service, making convenient and affordable local auto repair a thing of the past. In fact, many motorists may forgo important vehicle repairs because there is no dealership in the area,” continued Schmatz. “Clearly, using advances in technology to deny motorists and their trusted repair shops the ability to service vehicles is a misuse of computers and certainly not in the best interest of consumers. Passage of the Right to Repair Act will ensure that car owners can conveniently and affordably have their vehicle serviced at the repair shop of their choice.”

(Source) Press

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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

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As the downward trend on car sales continue, car companies like Toyota seems to be finding other locations to stock their unsold cars. And the latest word about it is that they are storing them on tankers since local regions are running out of places to hold them.

We already knew unsold cars were sitting in giant parking lots all over the world, but according to the port operators in Malmo, their 12,500 car capacity lots are full so the cars have to go elsewhere.

As a result, Toyota has been forced to contract the services of global car shipper Wallenius Wilhelmsen to park one of their 2,500 car capacity overseas ships in the port to act as a great big floating parking garage. If the cars cannot maintain these unsold cars on their dealer lots, you know things are getting serious.

(Source) Lloydslist

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