December 23, 2009
The Year in Cars
As car sales dropped, carmakers struggled to tailor vehicles to a wider range of drivers in 2009. Some moved into new niches, like luxury hatch backs. Others moved into underappreciated segment like diesel cars and two-door coupes. Green cars were the focus of many auto shows. The Wall Street Journal took a look at all the new designs and angles to compile its list of top ten auto highlights for 2009. They range from Ferrari's introduction of its 458 Italia to the resurgence of diesels on American roads. In November, the Audi A3 TDI clean diesel was named the Green Car of the Year at the L.A. Auto Show. This is the 2nd year in a row that a clean diesel vehicle has taken the prize. Hybrids also continue to motor forward. Many new hybrid designs were introduced in 2009, but easily the most anticipated was the Honda Insight. Click here to see how the Insight matched up the Toyota Prius. For the Wall Street Journal's complete top ten auto highlights of 2009 click here.
Russ off the Cuff: Unite with AIADA, Fellow Dealers in Orlando
AIADA Chairman Russ Darrow says dealers should make it their New Year's resolution to do something positive for their stores and their employees by registering today for AIADA's 40th Annual Meeting & Luncheon in Orlando, Fl. Every year, AIADA holds an Annual Meeting and Luncheon in conjunction with NADA's conference. Hundreds of dealers, from all around the country, gather to talk cars, business, and legislation that impact our bottom line. Next year's meeting is especially important as it marks an important milestone for AIADA: Our 40th anniversary. John Krafcik, President and CEO of Hyundai Motor America, will give the keynote address at the 2010 meeting. AIADA's Annual Meeting & Luncheon meeting will also see New Jersey dealer Rick DeSilva take over as AIADA chairman. The meeting is a great place to meet fellow dealers, influential industry leaders, and association heads. In this economic climate, it's more important than ever that dealers leverage every opportunity to benefit their business. The Orlando meeting is a huge opportunity. Come and be a part of the auto retail community that is working to preserve our industry. Registration for the meeting is available online here or call 1-800-GO-AIADA. Don't wait - register today!
Ford, Geely Agree to Terms on Volvo Sale
Ford Motor Co. expects to sign an agreement to sell its Volvo car unit to China's Zhejiang Geely Holding Group by the first quarter of 2010 and close the deal in the second quarter. Automotive News reports that Ford said all of the accord's key commercial terms have been settled. Ford added that work still needs to be done before the deal is completed, such as Geely securing its financing and getting approvals from the Chinese government. Click here for a look at Geely's current lineup. In a statement, Ford said that the prospective sale "would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy." A successful sale would unwind European acquisitions made since the late 1980s. Ford sold Aston Martin in 2007 and Jaguar and Land Rover last year. Zhejiang Geely, the parent of publicly traded Geely Automotive, was named by Ford as preferred bidder for Volvo in October. The estimated $1.8 billion deal would be the largest overseas acquisition by a Chinese automaker. Ford paid $6.45 billion for Volvo in 1999. For more on the sale of Volvo, click here.
Opinion: Next Year Has Got to be Better
Keith Crain of Automotive News has a message for the auto industry: things are going to get better. This year was lousy at best. During this economic disaster, we have seen car and truck sales plummet. And although sales seem to have bottomed out recently, they are certainly nothing to write home about. But Crain has great optimism that next year will be markedly better. From a new Mercedes convertible to the hot Ford Taurus SHO, to some new iron from Asia, a renaissance of vehicles is under way. There is nothing like a good economy to inspire people to buy a new car. But the introduction of new models will bring out the buyers in America who have an almost irresistible desire to buy a car - especially when it is truly a new car. Once again, the consumer is proving that the product is king. Let's hope for an economic recovery - but a whole bunch of new products will pull us out of the recession just as quickly. Click here for the full editorial.
Chrysler Will Show Electric Fiat 500 in Detroit
Chrysler Group will show off two vehicles at next month's Detroit auto show hinting at future collaborations under Italy's Fiat S.p.A, according to two sources familiar with the plans. Automotive News reports that Chrysler has no immediate plans to sell either of the vehicles in North America. CEO Sergio Marchionne plans to gradually merge the Lancia and Chrysler brands. They are both under the guidance of brand CEO Olivier Francois, appointed in the aftermath of Fiat taking control of the U.S. automaker following its U.S.-steered rescue and bankruptcy this spring. A corner of Chrysler's stand will also be dedicated to showing vehicles from Fiat's luxury-sports brands, the Ferrari 458 Italia and the Maserati GranCabrio. In addition to the electric version of the 500 (click here for a picture) Chrysler will display the entire Fiat 500 lineup for the first time in North America, the sources said. Included will be the 500C cabriolet, scheduled to go on sale in 2011, and the sporty 500 Abarth. Abarth is Fiat's performance brand. The 500 hatchback, previewed in April at the New York auto show, will go on sale in the United States in late 2010. For more on Fiat and Chrysler's plans for the Detroit Auto Show, click here.
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