January 11, 2010

China Tops U.S. as Largest Auto Market in '09
China overtook the United States as the biggest auto market in 2009 and automakers should see more strong growth this year, an industry group reported Friday. Boosted by Beijing's stimulus, 2009 passenger car sales soared to 10.3 million and total vehicle sales are estimated at 13.6 million, the China Passenger Car Association said. That represents growth of about 45 percent from 2008. According to MSNBC, it was the first time any country bought more cars than Americans. The Chinese group's data were in line with forecasts by J.D. Power and Associates of 12.7 million sales of cars and light trucks and 900,000 bigger vehicles in 2009 for a total of 13.6 million. The company in early 2009 expected sales of 9 million vehicles but raised that as Beijing rolled out measures to boost demand. Global automakers including General Motors Co., Ford Motor Co., and Germany's Volkswagen AG looked to China to help drive revenues as demand elsewhere plunged and U.S. automakers laid off workers and shuttered factories. Volkswagen says China is its biggest market. China, with 1.3 billion people and a growing urban elite, was long expected to become the top auto market but not until as late as 2020. Click here for full coverage of China's successful auto market.

Lawmakers' Visits on the First Day of the Detroit Auto Show Seem to Set a Pattern
According to the New York Times, the House speaker, Nancy Pelosi, the House majority leader, Steny Hoyer, and the transportation secretary, Ray LaHood, are among those flying to Detroit on Monday to visit the North American Auto Show. This will be the third consecutive year that politicians have crashed the show's media days. Last year, Senator Bob Corker, a Tennessee Republican, spent an evening checking out both companies' new models. In 2008, the three top Republican candidates for the presidential nomination crisscrossed the show floor simultaneously on the eve of Michigan's primary. While some view the visits as a good thing, some say they also have the potential to distract. Automakers spend millions of dollars setting up displays and staging introductions of new models, and they want the show to focus on their vehicles. At the same time, given the amount of taxpayer money poured into the auto industry in 2009, Congressional leaders would most likely face criticism if they ignored the show. The government now owns 60 percent of G.M. and about 10 percent of Chrysler, having lent a total of $62.5 billion to the two companies. For more on the Congressional visits to Detroit's North American Auto Show, click here.

Carmakers' Auto Show Mission: Rekindle the Romance
According to Greg Gardner at the Detroit Free Press, the curtain rises today on a radically altered global automotive industry - and Detroit auto show. Automakers have invested billions of dollars on hybrid and electric vehicles that are meant to drive consumers into an era concerned about high energy costs and the environment - and less about power, speed, and showiness. Many of those practical cars will be on display during Monday's news media preview of the 2010 North American International Auto Show. Click here for a gallery of what visitors can expect to see at auto show. Toyota's new mini-hybrid, Ford's new Focus compact car, and the Electric Avenue exhibit underscore the message that small is beautiful. And for gear heads, there will be a wealth of styling and performance innovations to explore. There's an old maxim: What does not kill us makes us stronger. Today, the North American International Auto Show opens to the news media with the hopes of a stronger future. Talk of acceleration, torque, and towing weights has replaced last year's anxious chatter about taxpayer rescues, bankruptcy, and liquidation. For coverage of how the North American Auto Show is reflecting new changes in the auto industry, click here.

VW to Double U.S. Sales in Next 2-3 Years, Exec Says
Volkswagen AG, Europe's biggest carmaker, aims to more than double its sales in the United States within the next three to four years, the head of the company's U.S. business said on Sunday. "We will sell 400,000 to 450,000 vehicles in 2012-2013," Stefan Jacoby said at an event in Washington, D.C., ahead of the Detroit auto show. According to Automotive News, VW sold 213,454 cars in the United States last year - down 4 percent from 2008. The entire VW Group, including Audi, sold 297,537 vehicles in the United States in 2009, down 5 percent from sales of 313,581 vehicles in 2008. There was a good chance that VW's U.S. business could become profitable in 2013, Jacoby added. Overall, Jacoby expects U.S. vehicle sales of 11 million to 11.5 million in 2010. He expects U.S. car sales to settle at about 15 million over the medium term, he said, adding that the market for compact and medium-sized sedans would grow faster than other segments. VW aims for U.S. sales of 800,000 by 2018, helped by local production and a broader dealership network. VW ranks behind brands such as Hyundai, Honda, Mercedes, and BMW in the United States. Click here for more on how VW expects to strengthen its role in the U.S. auto market.

Cities with the Best Gas Prices
Gas prices nationwide have spiked dramatically since Christmas. Last week, the U.S. average for a gallon of unleaded was $2.63; as of Jan. 8 it was $2.72 (up more than $1 per gallon from $1.71 a year ago - and rising). Oil prices are above $81 per barrel for the first time since November 2009. However, Forbes reports that some cities consistently trend toward the lower end of the spectrum when it comes to gas prices. To determine the cities with the best gas prices in America, the publication used data provided by GasBuddy Organization. Forbes then selected the 10 major U.S. cities with the lowest average regular unleaded gas prices for the 12 months ending Jan. 4, 2010. Current and national average prices are listed as of Jan. 7. Click here for an in-depth slideshow of the cities with the best gas prices. Despite some showings from more northerly locales, Forbes' list is dominated by Southern cities: Lubbock and Houston, Texas; Spartanburg, S.C.; and Tulsa, Okla., all made the grade. On the other hand, analysts are blaming harsh weather in the Midwest and Northeast for unseasonably high gasoline prices in California ($3.08 per gallon on San Francisco on Jan. 8). For the full report on which American cities have the best gas prices, click here.