Car Biz Buzz

Faced with an uncertain market with ample new challenges, Land Rover has decided to freshen up its entire lineup. New Land Rover models that will get a midlife update include the LR3, Range Rover, and Range Rover Sport. All of these new models will be on display at the upcoming New York Auto Show.

New upgrades to Land Rover models include fresh interior design, upgrades to the chassis, modest exterior updates, and even new V8 engines. Aurora Land Rover says that to further highlight these changes, the Land Rove LR3 will also be getting a name change to LR4.

In addition to its name change, the new LR4 will get plenty of attention inside the cabin, where Used Cars Denver, which specializes in Land Rover models, says American consumers have indicated room for improvement. Instead of its current utilitarian design, the new LR4 interior will have more soft surfaces and more of an up market feel and look. The LR4 will also receive an updated front grille that is similar to the one on the Range Rover. The new LR4 will go on sale in October.

The Range Rover Sport will receive 1,420 all new parts. Styling cues will also put it more in line with the larger Range Rover. There will also be new Jaguar-sourced Bilstein dampers to help with on-road driving comfort. The larger Range Rover will get a Jaguar-sourced 5.0-liter V8 that produces 510 horsepower. A 5.0-liter V8 that produces 375 horsepower will also become available on all three Land Rover models. With the new X5 and M5 seeing high demand at BMW Los Angeles dealer it seems like an appropriate time for Land Rover to revamp its lineup.  This is especially true as the premium SUV segment is facing more difficulties than most vehicle segments. Continue reading ‘Changes Come to Land Rover Lineup’

As Chevrolet continues to hype and advertise the long-awaited Volt plug-in electric car, many are doubting the effect it will have on Chevy and GM sales. This negative view is shared by the Obama administration, which believes that the car will cost consumers too much and will not provide the demand and the volume that the embattled automaker truly needs.

While the Volt is seen as being technically advanced and possesses plenty of promise, the Chevy is not the commercially viable vehicle that the automaker needs right now. With an expected price far exceeds that of the gasoline-propelled equivalents, the manufacturing costs may not be justified by sales when it becomes available next year.

The outlook being adopted by the current administration is certainly a setback for GM admits Chevrolet Chicago. The Detroit automaker has used the Chevrolet model to change the perception of the brand, and it was this one car that Chevrolet hoped would transform the brand into an eco-friendly moniker.

Regardless, the Chevrolet Volt is heading into production next year. Despite doubt in the vehicle’s commercial success, Orlando Chevrolet dealers say its unique technology will allow the Volt to travel up to 40 miles on batteries alone. After 40 miles, the gasoline engine will then be able to extend the vehicle’s range.

Despite the advanced technology behind the Volt, the administration believes that GM overall remains behind Toyota and other automakers when it comes to developing green technologies. With hybrid technology in particular, GM has offered few options for affordable, efficient hybrid offerings according to hybrid shoppers among Gardena Honda dealers. Meanwhile, the Volt powertrain will likely put it financially out of reach for many eco-conscious buyers. When it becomes available next year, the Volt is expected to be priced around $40,000 – thousands more than other gasoline-powered sedans in its class.

Most hybrids only offer a short range of hybrid power, making the Chevy Volt’s technology unique. However, if the automaker is unable to reduce cost it will not provide the eco-friendly hit that it was hoping for. This may be where GM has made a fatal error. Despite years and plenty of money already invested in the Volt, it is unlikely that the automaker will be able over overtake Toyota and Honda as the green automotive technology leader. Even with the Volt, San Diego Toyota says that GM brands still lack the popular small cars that consumers are buying from Honda, Toyota, Hyundai, and others. Continue reading ‘Doubt Arises Around Chevrolet Volt’

Saturn has been in a precarious position for months. As General Motors is focusing on restricting and becoming profitable again, many brands under its wide umbrella have been at risk. Already Saab, Hummer, and Opel have found their way onto the chopping block. However, the fate Saturn, which has seen devastating sales despite a relatively fresh product lineup, has largely been unknown. It seems that now sources indicate the brand may be up for sale, and that there are parties that actually want to purchase the ailing brand.

Sources at Saturn have indicated that there is interest from investors in doing a spinoff to establish an independent Saturn brand. Additionally, there apparently are other parties that simply want to buy it. It is not currently known where these parties are other automakers, but perhaps one possible scenario is a Chinese or Indian automaker looking to get a foothold in the lucrative US market. Boston used car dealers say such as move would be a good investment as Such a purchase would give an Indian or Chinese automaker an instance dealer network.

In viability reports supplied to the U.S. Treasury in mid-February, GM said it would supply product to Saturn through the 2012 model year. Unfortunately for Connecticut Saturn and others, no further details were outlined as to a solution or potential buyer before that time. However, GM has formed a task force comprised of both GM executives and select Saturn dealers to determine the feasibility of a spin off or selling the brand completely.

Recently, General Motors had informed Saturn dealers that a team had been established to evaluate options for the Saturn brand. It’s expected that a clear plan may not be available until sometime in April. Meanwhile, Hartford Chevrolet knows all too well that sales continue to hurt Saturn and its parent. Sales in February fell 57.2 percent from last year, which accounts for a mere 6,338 vehicles. Continue reading ‘Saturn May Have Buyers’

Car dealers have faced plenty of hardships in recent months, and will continue to run into hardships. While the recent federal stimulus offers tax incentives for car buyers, it’s not all good news for car dealers. While money in the pockets of consumers is always a good thing amid falling car sales and weakened consumer confidence, new bailout plans from Chrysler and General Motors both have outlined ideas that may be even more costly to dealers.

While the automakers attempt to secure $38 billion in federal funding, the government first has to approve their restructuring plans. These plans include many hard decisions. For example, Middle Tennessee Chrysler dealers say Chrysler plans to cut dealer margins, production, and 3,000 workers. As dealers are facing problems, Chrysler dealers aren’t looking forward to reduced dealers and service contract margins. Chrysler executives say that Chrysler dealers must make sacrifices just as other Chrysler employees have. When it comes down to it, these steps must be executed should Chrysler hope to receive vital cash.

Some dealers have been outraged by further concessions being forced upon them, but other contend that it’s a small and minor step toward getting the industry back on track, which Philadelphia Cadillac dealers believe is an import goal for everyone. While there’s been no mention of changes to Chrysler’s brands, GM’s restructuring plan provides consolidation of its brands and dealerships. Additionally, the fate of some of GM’s brands, such as Saab, Hummer, and Saturn, remains somewhat unknown as GM’s restructuring has concentrated on its core brands, including Chevrolet, Buick, Pontiac, Cadillac, and GMC. While some are concerned about the fate of these brands, Louisville Chevy says that GM’s core brand will be most important in keeping the company in the black in the long run.

The effects have been felt less at pre-owned stores like Used Cars NC where the economy has helped to drive costs and prices down to a manageable level for customers.

Regardless of changes at Chrysler and General Motors, both automakers and their dealers are hoping that tax credit will help spur new car sales. The economy has kept many consumers from venturing into showroom, and with additional cash in hand Detroit Chevrolet dealers believe consumers will start spending again. The chief economist for the Nation Automobile Dealers Association also sees this happening, anticipated sales to rise several percentage points this year. While this may be a positive outlook, the 2009 has already had a bad start and many dealers are likely going to find themselves out of business. Continue reading ‘Dealers Affected By GM and Chrysler Cutbacks’

With all of the commotion surrounding the domestic automakers, it’s easy to forget about others in the auto industry that are facing hardships. Among them are auto parts suppliers, which are now asking the federal government for $22.5 billion in financial assistance.

Both the Motor & Equipment Manufacturers Association and the Original Equipment Suppliers Association have pressed the U.S. Treasury for help. Their request for a loan ensures that the parts suppliers will be able to pay their bills quickly and assist in the turnaround of the automotive industry. The breakdown of the loan request includes money for loans taken out against invoices payable by domestic automakers, money for commercial loans, and additional funds to enable General Motors and Chrysler to pay their suppliers more quickly. While the request is far reaching, one Toyota dealer Tustin believes it’s absolutely necessary to maintain momentum and help the industry weather the current economic crisis.

With auto sales down about 36 percent from a year ago, Monroe Toyota dealers stress that all automakers are dramatically scaling back production. As a result of fewer cars being build, auto parts suppliers are hurting more than ever. Toyota parts and Toyota accessories providers also warn that the ripple effect of the struggling automakers is now affecting the entire industry.

Already more than 40 auto parts suppliers have fallen into bankruptcy and more are in “imminent financial distress” according to the Motor & Equipment Manufacturers Association. Meanwhile, Hyundai Parts Stores say more suppliers are expected to fall into bankruptcy this year. With the entire industry now feeling the effects, Maine Ford dealers feel things may get worse, before they get better.

The auto parts industry employs about 600,000 people, which puts plenty of jobs and households in potential financial peril. As jobs are cut at GM, Ford, and Chrysler plants, Anaheim Toyota says that many other jobs are ultimately lost among parts suppliers.

With credit evaporating, the auto parts suppliers are increasingly in need of cash, especially in light of the automakers’ struggles, says Detroit Chevrolet dealers. With outstanding invoices and the fate of GM and Chrysler in question, auto parts suppliers are looking for a solution that will help save the industry from falling apart. Continue reading ‘Auto Parts Suppliers Seek $22.5B in Federal Aid’