Car Biz Buzz

With Chrysler’s bankruptcy problems, the automaker has been trying hard to unload its Dodge Viper business. Since late in 2008, Chrysler has been working to find a buyer for the Viper sports car brand, but unfortunately the only offers available went up to $10 million – far less than Chrysler was hoping.

As a result of the Viper brand being virtually unsellable, Chrysler will be holding onto it, meaning the brand will be handed over to Fiat to control. Reportedly, Chrysler had received offers of up to $35 million for the Dodge Viper business, but unfortunately used cars Connecticut dealers believe these offers were well before bankruptcy and needless to say have since  fell through.

With Chrysler now emerging from bankruptcy as a new company, the Viper’s fate will now be decided by Italian automaker Fiat. This includes the control of all Viper assets says Texas Dodge. Fiat can continue to look for a potential buyer for the assets. However, the other option is for Fiat is to simply dissolve the brand, which one body shop Oklahoma City observes is a sure way to remove competition from Fiat’s own Ferrari and Maserati sports car brands.

The Dodge Viper brand began 17 years ago. The brand helped Chrysler add a performance pedigree to its image and has earned a cult following. After a mere 25,000 Vipers have been produced, there will still be plenty of disappointed enthusiasts should the brand cease to exist. Continue reading ‘Chrysler’s Viper Brand Moves To Fiat’

Following is bankruptcy filing, General Motors has confirmed that the Hummer brand has at last found a buyer. Based on information just released, the buyer has been identified as Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Co. The sales is certainly not soon enough for GM. The Hummer brand had seen ample popularity, but has more recently been handicapped by poor sales and poor consumer perception. GM said the sale was helped by the brand’s sales potential in emerging markets such as China and India.

The sale of Hummer to the Chinese company is expected to be wrapped up by the end of Q3 of this year. With the sale marks a big step for GM towards downsizing, and becoming one step closer to the company that it is supposed to emulate says one Pittsburgh used car dealer. In addition, the Hummer sale has also secured a number of jobs involving manufacturing and engineering personnel, not to mention jobs at Hummer dealerships. Auto Loans Detroit note that the deal also includes provisions for future product development by the new investor. This includes the potential for a new compact SUV.

Numerous details of the buyer and the transaction have yet to be released. Until that time, Oklahoma City Car Loans points out that Hummer will continue to manufacture and sell its vehicles. This includes production at GM’s Shreveport Assembly, which will produce the H3 model until 2010 at minimum.

Sales at Hummer are down over 60% compared with last year. This is a substantial decline that continues to hurt Hummer’s ailing parent company. Meanwhile, dealers have been unhappy by GM’s public bashing of the Hummer nameplate as they wished the pending sales could have been handed more discreetly. Continue reading ‘GM Officially Finds Buyer for Hummer’

With competition in the auto industry at an all time high thanks to the demanding economy, reliability and quality both play important roles in gaining new customers and retaining them. As a result, those seemingly irrelevant automotive quality and satisfaction surveys are becoming more important to today’s car buyers as they strive to find the make and model that will provide the most value. One of the latest of these reports is from California-based AutoPacific, which recently showcased its list of the most satisfying vehicles for 2009.

There was finally good news on this list for General Motors, whose Cadillac division won the Highest Satisfaction Brand for the second year in a role. Despite the negative news surrounding GM lately, the news apparently has not stopped customers from enjoying their Cadillac cars and SUVs. Despite setbacks for GM, Cadillac Philadelphia says that the Cadillac brand remains committed to luxury and innovation.

In other news, Hyundai was able to move up on this list compared with last year’s rankings, which is no surprise to Hyundai Service Chicago. Hyundai’s two shining models were the Genesis, which won the title of most satisfying Aspirational Luxury Car, and the Sonata which won most satisfying Premium Mid-Size. New Jersey Hyundai dealers say customers have continued to be drawn to Hyundai and these two models specifically thanks to their incredible value. Overall, Lexus took the title of highest overall satisfaction.

This survey was given to customers who purchase or leased a vehicle in Q4 of 2008. What’s interested is that it reflects attitudes of car buyers just at the beginning of concern over the economic downturn. Feel free to check out the full list of winners for the most satisfying vehicles below. Continue reading ‘Cadillac and Hyundai Named ‘Highly Satisfying’’

Car dealers are finding ways of attracting car buyers to showrooms while also delivering the best experience possible. Obviously fresh products remain an important part of the equation, but as the automotive industry braces for more losses, automakers are realizing the showrooms themselves also play a large role in the sales equation.

Luxury automakers in particularly have been focusing their attention to individual showrooms. Acura for example has begun investing heavily in its branding and services at the showroom level according to St Louis Acura dealers in order to raise the profile of the brand among premium car buyers. Additionally, a Los Angeles BMW dealer says that all products in the luxury segment remain so attractive and competitive that ultimately the focus has now widened to include the entire sales experience. As a result, if the showroom doesn’t give the premium feel that buyers expect, a dealer may lose a sale.

The latest to invest in its dealer showrooms is Audi. With an investment of $1 billion, Audi dealers will become transformed by the end of 2010 to include a new “Terminal” design scheme. The new design is intended to align dealerships with Audi’s image of sportiness, luxury, and efficiency. See the video of the new design above.

While automakers in every segment struggle to lure buyers back to showrooms, Washington DC Mercedes Benz dealers realize that service and the total package is exactly what premium buyers require. This is also why new car incentives have gone beyond low APRs and now include free maintenance and other enticing offers. Continue reading ‘Luxury Brands Invest in Posh Showrooms’

The automotive industry is said to be in the midst of an auto recession. With auto sales at a record low, automakers and dealers alike are feeling the effects of a sluggish economy as car buying is down across the board. Those particularly hard hit are the Big Three Detroit automakers who have scrambled to cut costs and introduce exciting new models.

New car buyers are staying clear from dealerships for a number of reasons. Among these reasons are falling resale values says Chicago Used Cars. For buyers planning on trading-in their current vehicles, they’re going to be getting less cash for them, which may make all the difference for some consumers. This is especially true for those who want to trade-in their full-size trucks and SUVs. Dealers are having a hard enough time selling their existing stock of new trucks and SUVs, and your used truck probably is likely to be a turn off for many dealers.

Leasing is also contributing to the auto recession. Automakers have reevaluated their leasing programs as many drivers have failed to make payments. Chrysler has made the boldest step, eliminating leasing entirely. Once vehicles have been returned to the dealer, Philadelphia Used Cars say they’ve lost a significant amount of value following the duration of the lease, hurting dealers further.

Car buyers have also changed their buying habits to keep with the changing economic constraints. Increasingly, buyers are considering smaller, more fuel efficient cars rather than the once popular trucks and SUVs. With concerns over gas prices and plummeting resale values, drivers are focused on compacts, which have helped make companies like Honda and dealers like Lexington Auto Dealers slightly better off as buyers are drawn to their selection of compact and fuel efficient models.

Some analysts have varying opinions about when the auto business will recover, but many expect it to be quite some time before it happens. Some don’t expect the recovery to begin until 2013. Meanwhile, it’s expected that GM may declare bankruptcy in the coming months. Even Ford, who has recently added a string of all-new models to their lineup, will also be bringing European models to US shores, which San Diego Ford dealers expect will help boost its presence within the compact car market. But Ford is not only in promising new models by 2010 – GM and Chrysler both have many vehicles in the works in hopes of encouraging a rebound in domestic sales.

Perhaps one of the most anticipated vehicles from Detroit will be the Chevrolet Volt. As a top priority for GM’s development teams, the Volt will be one of the first electric models available to the general public, and Hartford Buick expects will help boost GM’s reputation and brand when it comes to car buyers demanding efficiency and the greenest technology available. But with such significant time and financial commitment that big question is whether the Chevy Volt will pay off. Continue reading ‘The Auto Recession Hits Hard’

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’