January 5, 2010
Car Buyers See Signs of Thaw in Lending
For car buyers, four words mean the difference between going home in a new sedan or their old clunker: Your loan is approved. According to MSNBC, they are being uttered more often these days, spurred by a trillion-dollar government program that provides guarantees when those loans are sold to investors. Consumers are paying less to borrow. Interest rates have been at record lows since last December. Financial firms wrote 5.5 percent more car loans in the third quarter compared with the prior three months. Fourth-quarter figures aren't yet available, but Jesse Toprak, vice president of the auto pricing tracker TrueCar Inc., says December saw an uptick in auto loan approvals for consumers with average or above-average credit as auto finance companies tried to clear out inventory. Still, Toprak said it could take another year or even longer for financial firms to trust consumers enough to return to normal levels for auto lending. It's also far from the freewheeling days of the credit boom. Third-quarter auto lending was down 30 percent from the same period in 2006, a year when U.S. car and light truck sales reached 16.5 million. Click here for more on the increasing access to credit for today's auto consumers.
Honda's Cache, Private for Now
American Honda does not have a corporate museum in the United States - not officially, anyway. But, according to the New York Times, there is a carefully considered collection of Hondas tucked away in a warehouse a few blocks from the company's headquarters here. Click here for a photo of the collection. The collection was started by a former executive of American Honda, Tom Elliott, who had put aside a sampling of models important to the company's United States history, said John Mendel. The collection has grown to several dozen vehicles, including Honda racecars from the IndyCar series, a selection of motorcycles and, more recently, early examples of a Honda-made generator and an outboard motor. At least that's what Honda will admit to, although many more vehicles could be seen in storage farther back in the building when an informal lunch for journalists was held there. Click here for a photo gallery. While the collection is not open to the public - there is not even a sign on the building - the space is used for company meetings and events. The dream of someday being able to showcase these vehicles is at least a year or two away from becoming reality. One of the questions that American Honda officials will face at that point is which vehicles to display. Click here to read more about Honda's private collection of its notable vehicles.
Tata Making Nano Variant for U.S. Market
India's Tata Motors Ltd. is developing a new variant of its Nano mini car - the world's cheapest car - for the U.S. market, which would be ready in three years, its chairman said today. "We also recognize there is a market not only in developing countries, but possibly for a low-cost car in developed markets. For the U.S., we need a car that will have a larger engine, which needs additional crash tests, modifications, and we're in the process of doing this," Ratan Tata said at the Auto Expo 2010 in New Delhi. According to the Wall Street Journal, the Nano was the show-stopper at the 2008 New Delhi Auto Expo, with the mini car grabbing headlines across the world owing to its low price of about $2,500. Click here for a photo of the Tata Nano. According to USA Today, Tata Motors has doubled its December sales compared with last year. The demand for low-cost, fuel-efficient cars has prompted several global auto makers to announce their own plans for similar models to the Nano. Small cars account for nearly two-thirds of car sales in India, where annual sales are forecast to grow to 3.0 million units by 2016. Tata Motors controls Jaguar and Land Rover, which it acquired for $2.3 billion from Ford Motor Co. in June 2008. Click here for more on Tata Motors' future plans.
Review: Hyundai Elantra Blue Caters to Eco-Minded Consumer
According to Scott Burgess at the Detroit News, the 2010 Hyundai Elantra Blue caters to the eco-minded consumer. And by that he means the most important eco: economics. It's the newest member of the Elantra family - a group of compacts that make up for low pizzazz scores with high mileage and solid performance. Hyundai engineers acted like a doctor whose patient just returned from a year in the Amazon. Belts, friction, and abuse of power all take away from a vehicle's efficiency. Blue engineers tweaked the engine as much as possible, changed out the transmission gears, sat the car on little 15-inch wheels, and even gave it a "smart" alternator to drain less juice from the engine. It paid off - the Elantra Blue hits 35 miles per gallon on the highway - numbers some smaller subcompacts can't touch. Click here for a photo of the Elantra Blue. Other than the Blue badge on the car, there really isn't anything different from the regular Elantras. Much like other 2010 Elantras, Hyundai has added a few more touches of chrome, including a new waterfall grille, additional jewelry in the cabin, and a new black interior. Click here to read Burgess' entire review of Hyundai's fuel efficient Elantra Blue.
2009 is History, but Sales Races Still Up in the Air
Races between global auto makers are too close to call until December sales are reported tomorrow. According to Automotive News, such races include whether upstart Korean automaker Hyundai-Kia can oust Nissan North America from the big six of U.S. sales. Through 11 months, the Nissan and Infiniti brands led Hyundai-Kia 696,699 to 680,282. And the margin is much tighter - 511 units - between the No. 11 Subaru and No. 12 Volkswagen brands. With both likely to sell more than 200,000 vehicles for the full year, December's results will determine the winner. December sales also will settle cliffhangers among individual nameplates. The 11-month gap between the Toyota Corolla/Matrix and the Honda Accord is only 836 units out of volume of a quarter-million each. That's after the Corolla outsold the Accord by 4,660 in November. On the group level, American Honda Motor Co. has overtaken Chrysler Group for fourth place behind General Motors Co., Toyota Motor Sales U.S.A., and Ford Motor Co. After finishing 2008 only slightly behind Chrysler, American Honda's 11-month lead over the smallest of the Detroit 3 is almost 200,000 units. For more on what December's sales numbers could mean for the auto industry, click here. Read FirstUp tomorrow for AIADA's complete Market Watch report of U.S. auto sales.
Make Your Trip to NADA in Orlando Pay Out
As an AIADA member, you are eligible to receive exclusive products, services, and unique discounts from our Affinity Partners, who are committed to serving the dealer market. The buying power of all AIADA members allows our Partners to offer you individually exceptional deals, helping your business be more profitable throughout 2010 and contributing to your bottom line. We partner exclusively with companies that have best-in-class products and services and are committed to earning your business. Want to know more? Don't miss the following AIADA Affinity Partners at NADA in February - Federated Insurance: Booth 1453; Carfax: Booth 631; Venture Lighting: Booth 1221; CNA National Warranty Corporation: Hospitality Suite at Loews Portofino Bay Hotel-Michelangelo Room. If you're not going to be at this year's convention, click here to learn more about all of our Affinity Partners and how they can help your business.
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