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Ford, Toyota Sales Are Flat; GM Down

DETROIT -- Automakers reported mixed U.S. sales results for November on Monday, with some new or more fuel-efficient models performing well despite consumer malaise over high gas prices and the weak economy, according to the Associated Press.http://hosted.ap.org/dynamic/stories/A/AUTO_SALES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2007-12-03-14-12-56

General Motors, the biggest automaker by U.S. sales, said its sales dropped 11 percent, hurt by falling demand for trucks as well as cuts in sales to rental car fleets. Ford and Toyota both reported flat sales for the month. Nissan's sales rose 6 percent.

Posted by Peter C. T. Elsworth  at 2:56 PM to Ford , GM , Sales , Toyota | Permalink | Comments 0

Power: Younger Buyers Avoiding Domestics

A new study from J.D. Power & Associates offers some new insight into the steep cost American carmakers are paying for what is seen a sluggish response to rising fuel prices. The new Power study also underscored the importance of perception in consumer attitudes toward various vehicles and brands, according to thecarconnection.com.

While older buyers who purchase domestic vehicles are more likely to avoid certain models because they are imports, younger consumers who purchase import vehicles are more likely to avoid models because they are of domestic origin, according to the J.D. Power and Associates 2007 Avoider Study.

Among import buyers for example, the younger the person is, the more likely they are to avoid models because they are of domestic origin, the study found.

The study was based on responses from more than 35,000 owners who registered a new vehicle in May 2007, and it examines the reasons consumers fail to consider particular models when shopping for a new vehicle.

Posted by Peter C. T. Elsworth  at 11:16 AM to Auto industry | Permalink | Comments 0

Chrysler, VW Getting Closer?

The ink is hardly dry on the Chrysler-Daimler divorce papers, but already, another German carmaker could be waiting in the wings for the American carmaker, according to thecarconnection.com
David Cole, chairman of the Center For Automotive Research, said competition is forcing automakers to consider options they might not have contemplated only 12 months ago.

"There is going to be another round of mergers in the auto industry and the one company that matches up well with Volkswagen is Chrysler," he noted.

Volkswagen already has a joint project with Chrysler to develop a new minivan, which will be assembled by Chrysler in the next couple of years and will be sold in the U.S.

Posted by Peter C. T. Elsworth  at 10:55 AM to Chrysler , VW | Permalink | Comments 0

Former GM Chief Smith Dies

Roger B. Smith, the man who set General Motors on a new and controversial course in the 1980s, has died in Detroit after a brief illness, according to thecarconnections.com. He was 82.

Smith joined General Motors in 1949 after serving as a radioman for Admiral Arleigh Burke during World War II. He was at the center of major events at the automaker, having served early on in his career to GM´s legendary Alfred P. Sloan. After working for Sloan, Smith moved steadily up through the organization during its post-World War II heyday, earning a reputation for financial acumen.

That acumen was challenged as Smith was named chairman just as the industry was shaken by a surge in oil prices, following the 1979 Iranian revolution, and new competition from Japan.

He later became the object of ridicule with the release of Michael Moore's groundbreaking satire, "Roger and Me."

Posted by Peter C. T. Elsworth  at 10:54 AM to GM | Permalink | Comments 0

Oil Prices Fall Ahead of OPEC Meeting

Oil prices fell Monday in a volatile market on speculation that OPEC may still boost output at its meeting this week despite last week's sharp price drop, according to the Associated Press.

Light, sweet crude for January delivery was down 67 cents to $88.04 in electronic trading on the New York Mercantile Exchange by midafternoon in Europe. The contract had earlier traded as high as $89.94 and as low as $87.47.

Posted by Peter C. T. Elsworth  at 10:51 AM to Crude oil market | Permalink | Comments 0

November auto sales due today, lowest figures in decade seen

With the 11th month of 2007 U.S. auto sales results set to be released, a clearer picture will emerge as to how the year will end up for each auto company, brand and model, according to the Detroit Free Press's Tim Higgins.

Industry sales this year are expected to be the lowest in a decade. Earlier estimates for how November will look don't appear upbeat. Tom Libby, senior director of industry analysis at the Power Information Network, a subsidiary of J.D. Power and Associates, said that through Nov. 25, retail sales industrywide were down 7%. But Libby cautions that the auto companies can make interesting moves in the final month of the year in attempts to boost sales.

Posted by Peter C. T. Elsworth  at 10:13 AM to Auto industry , Sales | Permalink | Comments 0

Fuel economy deal gives automakers some wiggle room

This year's battle over tougher fuel economy standards has featured environmentalists demanding unbreakable guarantees for more-efficient cars and trucks, while automakers defended flexibility to meet an uncertain future.

Friday's compromise represented a split decision, according to the Detroit Free Press's Justin Hyde.
The deal negotiated by House Speaker Nancy Pelosi and Rep. John Dingell, a Dearborn Democrat, will force U.S. automakers to make a 40% improvement in their vehicles' mileage to 35 miles per gallon by 2020.

The proposal sets those targets, which the industry loudly opposed for much of this year, as the floor for federal regulators: They cannot set lower standards, but could impose a higher goal if they see fit.

Posted by Peter C. T. Elsworth  at 9:47 AM to Fuel economy , Government regulations | Permalink | Comments 0