.
Sales of new cars in Europe continue to drop in January
BRUSSELS, (Xinhua) -- Sales of new cars in Europe plunged by 27 percent in January year-on-year, the European Automobile Manufacturers' Association (ACEA) said here on Friday.
A total of 958,500 new cars were sold across the continent in the first month of 2009, the lowest level in 20 years, the ACEA said in a statement.
In Western Europe, new car sales dropped 26.5 percent to 891,505 units.
Iceland, which has been hit badly by the financial crisis, saw the deepest fall of 88.1 percent in new car sales, followed by Ireland with 66.5 percent.
Other countries that suffered steep drops include Spain, which fell by 41.6 percent, Italy by 32.6 percent and Britain by 30.9 percent.
France performed the best, falling 7.9 percent; followed by Germany, which saw a drop of 14.2 percent.
In Eastern Europe, Romania and Hungary witnessed declines of more than 50 percent in sales of new cars, while in the Czech Republic the drop was 12.3 percent.
According to the ACEA, sales of new cars in Europe have declined for nine months in a row.
Statistics show that the auto industry in both Europe and the United States has been greatly impacted by the global financial crisis.
Source : news.xinhuanet.com (2/13/2009)
Roush Performance Parts Ready for 2010 Ford Mustang at March Sales Launch
LIVONIA, Michigan — When the 2010 Ford Mustang shows up in dealerships this March, Roush will have 35 performance parts and accessories ready for buyers who want to customize right away.
The initial accessories will include suspension packages, brake kits, exhaust systems, wheels, interior upgrades and a light bar for convertible models.
Additionally, Roush will offer its supercharger that makes 445 horsepower and 400 pound-feet of torque just weeks after the Mustang goes on sale. A non-calibrated version of the ROUSHcharger will also be sold for tuners looking to make even more power.
Roush will introduce body kits and exterior style pieces for the 2010 Mustang in mid-April.
Source : www.edmunds.com (2/13/2009)
Polk Predicts the Impact of U.S. Government Incentives on Automotive Sales
SOUTHFIELD, Mich., Based on detailed analysis and evaluation of the current economic stimulus package expected to be voted on today in Washington, Polk analysts predict the current proposed government incentive will increase U.S. light vehicle sales by 94,000 units in 2009, providing consumers with an average rebate of $330 for each new vehicle purchased.
Throughout the negotiations between the House and the Senate over the economic stimulus plan, Senator Barbara Mikulski (D-MD) spearheaded a provision to help revive the sagging automotive market. Under the current proposal, consumers who buy a new vehicle will be able to deduct the sales tax from their income taxes.
Polk analyzed vehicle prices, sales tax rates, registrations by state, and income tax brackets to develop its rebate forecast. The sales projection forecast is based on measuring the efficiency of past incentive programs across the automotive industry, together with current economic conditions including limited credit availability, low consumer confidence and a rising unemployment rate.
A previous proposal also included a deduction for interest expenses on new vehicle financing. Under that plan, Polk estimates the average rebate would have been $1,250 per vehicle, and would have provided a sales boost of 359,000 units in the U.S.
"Although the current tax incentive is not as generous as the initial one, it is nevertheless an encouraging measure. This incentive program could be even more successful if coupled with additional steps to boost consumer confidence that would drive more showroom traffic for dealers," said Lionel Yron, director of Consulting & Analytics at Polk.
"For example, Hyundai just launched a special program where U.S. consumers can return their newly purchased vehicle if they lose their income within a year. As a result, Hyundai's sales are up 14% in January while overall, the industry is down 37% compared to January 2008," explains Yron. "The magnitude of this gap hints at how much market uncertainties weigh on consumer spending."
Another interesting point of comparison is to look at the steps taken by Western European governments to spur automotive demand in their region. In Germany, consumers can receive a rebate of 2,500 Euros (equivalent to $3,200 USD) if they scrap their old vehicle when purchasing a new one. According to Polk estimates, this measure is expected to increase light vehicle sales by 200,000 units for 2009 and should push the German car market just above 3 million units.
"Because of the fixed rebate amount, small car buyers will benefit from a greater discount. As such, Polk expects to see robust sales gains in this segment. The scrappage bonus may very well ignite a sustained recovery for the German car market," commented Ulrich Winzen, chief analyst at Polk.
Source : www.theautochannel.com (2/13/2009)
Chery Said Possible To Buy Europe Car Brand
Shanghai, (Gasgoo.com) President and CEO of Chery Automobile Co., Ltd. said yesterday that his company would not rule out the possibility of buying a troubled European auto brand, Beijing Times reported. Volvo is believed to be one of the choices. Yin Tongyao told the newspaper that Chery Auto is in preliminary talks with several European automakers about a possible acquisition but he declined to comment on whether they include Volvo.
Chery Automobile has contacted several European auto brands, including Ford Motor's Volvo car brand, and is interested in an acquisition, a source with direct knowledge of the matter said today.
Changan Automobile Group and Geely Automobile Holdings Ltd were the other two Chinese automakers rumored as potential buyers of Volvo, but Geely denied such a plan last Thursday.
Chery, the nation's fourth-largest auto maker, received a 10 billion yuan ($1.47 billion) loan to fund its global growth from Export-Import Bank of China (China Eximbank) last December. "We were also granted the flexibility of a credit line by the bank," Yin added.
Chery plans to build a $500-million new assembly plant in north Argentina's Chaco province. The facility will produce 100,000 Chery cars annually, mainly for export to Brazil. Chery already has eight overseas plants in Southeast Asia, Latin America and Eastern Europe.
The automaker reported monthly sales of 3,5000 units last month, up 36.14% year on year and 31.5% month on month, respectively.
Source : www.theautochannel.com (2/13/2009)
2009 Geneva Auto Show Preview: Fiat 500C
GENEVA — Fiat has released two sketches and a very fuzzy teaser photo of its new 500C, the soft-top edition of the Italian automaker's popular compact (though photos leaked out earlier on Autocar). The Fiat 500C convertible will be officially unveiled at the 2009 Geneva Auto Show, and it goes on sale this summer in Europe.
The 500C will feature a sliding canvas soft top with fixed window frames, rather than a fully folding roof — likely a measure to preserve structural rigidity while keeping production costs in check.
The convertible is expected to share running gear, including a choice of four-cylinder gas and diesel engines, with its hardtop sibling.
Source : www.edmunds.com (2/13/2009)
Alleged Audi dealer email green-lights U.S. R8 V10 orders
With the first U.S.-spec Audi R8 FSI V10 going on the block in Boca Raton, earlier reports that the V10-powered supercar might not make it to the States have been debunked. Further proof that Audi isn't going to leave the U.S. out of the fun comes in the form of a directive to dealers (posted after the break thanks to one of our readers) that confirms the R8 V10 is on the way and, although pricing hasn't been officially announced, buyers can expect to pay approximately $45,000 more for the V10 model compared to its V8-powered counterpart.
The directive goes on to state that the R8 V10 will be sold in the States as a 2010 model and due to high demand for the current V8 variant, production of the V10 model cannot commence "as rapidly as anticipated in order to produce more V8 models to satisfy existing customer orders." Buyers who want to hold out from the V10 should expect a lead time of eight to ten months if demand and production of the R8 continues at its current rate.
Source : http://www.autoblog.com/ (2/13/2009)
Leyland-Nissan jt venture may come up at Nissan facility
Chennai, Ashok Leyland is considering the option of setting up its joint venture with Nissan at the Nissan-Renault facility coming up at Oragadam.
Mr K. Sridharan, Chief Financial Officer, Ashok Leyand, while emphasising that there were no changes in the structure and legal framework of the Ashok Leyland-Nissan joint venture for light commercial vehicles (LCV), said that the company was considering various options relating to the location of the project, the model of vehicles to be introduced and the size of investment.
The possibility of locating this joint venture along with the Nissan-Renault joint venture at Oragadam, where land is available, is something that will help to speed up the implementation of the project.
The alternative was to wait for the State Government to allocate land at another location, which could take some time. The LCV plant, which was originally scheduled to begin production in 2010, was six months behind schedule.
The scale of operations was also under discussion. Earlier, both partners planned to invest a total of Rs 2,400 crore with an equity of about Rs 1,200 crore shared equally in three projects – for technology development, power train manufacture and vehicle production.
There are no changes in the essential structure of the projects and only Ashok Leyland and Nissan are involved. The partners are also discussing the appropriate models to introduce into the domestic market and target for the export markets, he told reporters here on Friday.
Mr Sridharan said that the scale of operation is being reconsidered in the light of the slowdown in vehicle sales. Ashok Leyand has itself cut back significantly on capital expenditure, he added.
Financing arm
Ashok Leyland has floated a vehicle finance company, Hinduja Leyland Finance Ltd, to drive commercial vehicle sales.
Mr Sridharan said the company was awaiting Reserve Bank’s approval to commence operations.
The company is reviving its finance business because “99 per cent of commercial vehicle sales” are supported by loans from banks, money lenders and non- banking finance companies.
The capital structure would be decided later. He expected this captive financing arm to account for nearly 15 per cent of vehicles sold.
Interest rate
Commercial vehicle sales, which are going through an unprecedented low, are further hit by the lack of clarity on interest rates. Loans to commercial vehicles are primarily on fixed interest rates.
When the Government and banks signal the need for a drop in interest rates, buyers decide to wait for the drop in rates and “tend to hold back purchases”.
It is important a clear message is sent on the interest rate situation to support commercial vehicle industry, Mr Sridharan said.
A captive finance company’s advantage was in the market information available with the vehicle manufacturer.
“That is what Ashok Leyland brings to the table,” he said.
Ashok Leyland would use its dealership network and customer knowledge to help the finance company take a calculated risk in credit support to buyers.
Source : Business Line (Online Edition) (2/13/2009)
Sales of new cars in Europe continue to drop in January
BRUSSELS, (Xinhua) -- Sales of new cars in Europe plunged by 27 percent in January year-on-year, the European Automobile Manufacturers' Association (ACEA) said here on Friday.
A total of 958,500 new cars were sold across the continent in the first month of 2009, the lowest level in 20 years, the ACEA said in a statement.
In Western Europe, new car sales dropped 26.5 percent to 891,505 units.
Iceland, which has been hit badly by the financial crisis, saw the deepest fall of 88.1 percent in new car sales, followed by Ireland with 66.5 percent.
Other countries that suffered steep drops include Spain, which fell by 41.6 percent, Italy by 32.6 percent and Britain by 30.9 percent.
France performed the best, falling 7.9 percent; followed by Germany, which saw a drop of 14.2 percent.
In Eastern Europe, Romania and Hungary witnessed declines of more than 50 percent in sales of new cars, while in the Czech Republic the drop was 12.3 percent.
According to the ACEA, sales of new cars in Europe have declined for nine months in a row.
Statistics show that the auto industry in both Europe and the United States has been greatly impacted by the global financial crisis.
Source : news.xinhuanet.com (2/13/2009)
Roush Performance Parts Ready for 2010 Ford Mustang at March Sales Launch
LIVONIA, Michigan — When the 2010 Ford Mustang shows up in dealerships this March, Roush will have 35 performance parts and accessories ready for buyers who want to customize right away.
The initial accessories will include suspension packages, brake kits, exhaust systems, wheels, interior upgrades and a light bar for convertible models.
Additionally, Roush will offer its supercharger that makes 445 horsepower and 400 pound-feet of torque just weeks after the Mustang goes on sale. A non-calibrated version of the ROUSHcharger will also be sold for tuners looking to make even more power.
Roush will introduce body kits and exterior style pieces for the 2010 Mustang in mid-April.
Source : www.edmunds.com (2/13/2009)
Polk Predicts the Impact of U.S. Government Incentives on Automotive Sales
SOUTHFIELD, Mich., Based on detailed analysis and evaluation of the current economic stimulus package expected to be voted on today in Washington, Polk analysts predict the current proposed government incentive will increase U.S. light vehicle sales by 94,000 units in 2009, providing consumers with an average rebate of $330 for each new vehicle purchased.
Throughout the negotiations between the House and the Senate over the economic stimulus plan, Senator Barbara Mikulski (D-MD) spearheaded a provision to help revive the sagging automotive market. Under the current proposal, consumers who buy a new vehicle will be able to deduct the sales tax from their income taxes.
Polk analyzed vehicle prices, sales tax rates, registrations by state, and income tax brackets to develop its rebate forecast. The sales projection forecast is based on measuring the efficiency of past incentive programs across the automotive industry, together with current economic conditions including limited credit availability, low consumer confidence and a rising unemployment rate.
A previous proposal also included a deduction for interest expenses on new vehicle financing. Under that plan, Polk estimates the average rebate would have been $1,250 per vehicle, and would have provided a sales boost of 359,000 units in the U.S.
"Although the current tax incentive is not as generous as the initial one, it is nevertheless an encouraging measure. This incentive program could be even more successful if coupled with additional steps to boost consumer confidence that would drive more showroom traffic for dealers," said Lionel Yron, director of Consulting & Analytics at Polk.
"For example, Hyundai just launched a special program where U.S. consumers can return their newly purchased vehicle if they lose their income within a year. As a result, Hyundai's sales are up 14% in January while overall, the industry is down 37% compared to January 2008," explains Yron. "The magnitude of this gap hints at how much market uncertainties weigh on consumer spending."
Another interesting point of comparison is to look at the steps taken by Western European governments to spur automotive demand in their region. In Germany, consumers can receive a rebate of 2,500 Euros (equivalent to $3,200 USD) if they scrap their old vehicle when purchasing a new one. According to Polk estimates, this measure is expected to increase light vehicle sales by 200,000 units for 2009 and should push the German car market just above 3 million units.
"Because of the fixed rebate amount, small car buyers will benefit from a greater discount. As such, Polk expects to see robust sales gains in this segment. The scrappage bonus may very well ignite a sustained recovery for the German car market," commented Ulrich Winzen, chief analyst at Polk.
Source : www.theautochannel.com (2/13/2009)
Chery Said Possible To Buy Europe Car Brand
Shanghai, (Gasgoo.com) President and CEO of Chery Automobile Co., Ltd. said yesterday that his company would not rule out the possibility of buying a troubled European auto brand, Beijing Times reported. Volvo is believed to be one of the choices. Yin Tongyao told the newspaper that Chery Auto is in preliminary talks with several European automakers about a possible acquisition but he declined to comment on whether they include Volvo.
Chery Automobile has contacted several European auto brands, including Ford Motor's Volvo car brand, and is interested in an acquisition, a source with direct knowledge of the matter said today.
Changan Automobile Group and Geely Automobile Holdings Ltd were the other two Chinese automakers rumored as potential buyers of Volvo, but Geely denied such a plan last Thursday.
Chery, the nation's fourth-largest auto maker, received a 10 billion yuan ($1.47 billion) loan to fund its global growth from Export-Import Bank of China (China Eximbank) last December. "We were also granted the flexibility of a credit line by the bank," Yin added.
Chery plans to build a $500-million new assembly plant in north Argentina's Chaco province. The facility will produce 100,000 Chery cars annually, mainly for export to Brazil. Chery already has eight overseas plants in Southeast Asia, Latin America and Eastern Europe.
The automaker reported monthly sales of 3,5000 units last month, up 36.14% year on year and 31.5% month on month, respectively.
Source : www.theautochannel.com (2/13/2009)
2009 Geneva Auto Show Preview: Fiat 500C
GENEVA — Fiat has released two sketches and a very fuzzy teaser photo of its new 500C, the soft-top edition of the Italian automaker's popular compact (though photos leaked out earlier on Autocar). The Fiat 500C convertible will be officially unveiled at the 2009 Geneva Auto Show, and it goes on sale this summer in Europe.
The 500C will feature a sliding canvas soft top with fixed window frames, rather than a fully folding roof — likely a measure to preserve structural rigidity while keeping production costs in check.
The convertible is expected to share running gear, including a choice of four-cylinder gas and diesel engines, with its hardtop sibling.
Source : www.edmunds.com (2/13/2009)
Alleged Audi dealer email green-lights U.S. R8 V10 orders
With the first U.S.-spec Audi R8 FSI V10 going on the block in Boca Raton, earlier reports that the V10-powered supercar might not make it to the States have been debunked. Further proof that Audi isn't going to leave the U.S. out of the fun comes in the form of a directive to dealers (posted after the break thanks to one of our readers) that confirms the R8 V10 is on the way and, although pricing hasn't been officially announced, buyers can expect to pay approximately $45,000 more for the V10 model compared to its V8-powered counterpart.
The directive goes on to state that the R8 V10 will be sold in the States as a 2010 model and due to high demand for the current V8 variant, production of the V10 model cannot commence "as rapidly as anticipated in order to produce more V8 models to satisfy existing customer orders." Buyers who want to hold out from the V10 should expect a lead time of eight to ten months if demand and production of the R8 continues at its current rate.
Source : http://www.autoblog.com/ (2/13/2009)
Leyland-Nissan jt venture may come up at Nissan facility
Chennai, Ashok Leyland is considering the option of setting up its joint venture with Nissan at the Nissan-Renault facility coming up at Oragadam.
Mr K. Sridharan, Chief Financial Officer, Ashok Leyand, while emphasising that there were no changes in the structure and legal framework of the Ashok Leyland-Nissan joint venture for light commercial vehicles (LCV), said that the company was considering various options relating to the location of the project, the model of vehicles to be introduced and the size of investment.
The possibility of locating this joint venture along with the Nissan-Renault joint venture at Oragadam, where land is available, is something that will help to speed up the implementation of the project.
The alternative was to wait for the State Government to allocate land at another location, which could take some time. The LCV plant, which was originally scheduled to begin production in 2010, was six months behind schedule.
The scale of operations was also under discussion. Earlier, both partners planned to invest a total of Rs 2,400 crore with an equity of about Rs 1,200 crore shared equally in three projects – for technology development, power train manufacture and vehicle production.
There are no changes in the essential structure of the projects and only Ashok Leyland and Nissan are involved. The partners are also discussing the appropriate models to introduce into the domestic market and target for the export markets, he told reporters here on Friday.
Mr Sridharan said that the scale of operation is being reconsidered in the light of the slowdown in vehicle sales. Ashok Leyand has itself cut back significantly on capital expenditure, he added.
Financing arm
Ashok Leyland has floated a vehicle finance company, Hinduja Leyland Finance Ltd, to drive commercial vehicle sales.
Mr Sridharan said the company was awaiting Reserve Bank’s approval to commence operations.
The company is reviving its finance business because “99 per cent of commercial vehicle sales” are supported by loans from banks, money lenders and non- banking finance companies.
The capital structure would be decided later. He expected this captive financing arm to account for nearly 15 per cent of vehicles sold.
Interest rate
Commercial vehicle sales, which are going through an unprecedented low, are further hit by the lack of clarity on interest rates. Loans to commercial vehicles are primarily on fixed interest rates.
When the Government and banks signal the need for a drop in interest rates, buyers decide to wait for the drop in rates and “tend to hold back purchases”.
It is important a clear message is sent on the interest rate situation to support commercial vehicle industry, Mr Sridharan said.
A captive finance company’s advantage was in the market information available with the vehicle manufacturer.
“That is what Ashok Leyland brings to the table,” he said.
Ashok Leyland would use its dealership network and customer knowledge to help the finance company take a calculated risk in credit support to buyers.
Source : Business Line (Online Edition) (2/13/2009)
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