January 13, 2010

Toyota to Adjust Brakes in Autos after Recall
Toyota Motor Corp. will adjust the brake system in all new models built in North America after recalling more than 4 million vehicles last year to stop cases of unintended acceleration. According to Business Week, the software fix broadens Toyota's steps to shorten the gas pedals on all autos covered by the recall and alter the so-called brake override system on some models. Toyota's recall, at least the third involving more than 100,000 U.S. autos in the past two years, dented a reputation for high quality established in surveys such as those by researcher J.D. Power & Associates. However, despite Toyota's challenging year, the company emerged the big winner of the annual R.L. Polk loyalty awards at the Automotive News World Congress Tuesday night. Automotive News reports that Toyota took home four awards for customer loyalty. "Our quality and safety were severely questioned," he said. "We learned lessons the hard way, but with the support of our dealers we will do everything to let our customers know how much we care for them and how committed we are that they drive the safest cars on the road," said Yoshimi Inaba, president of Toyota Motor North America. Click here for more on Toyota's plans to restore and improve on its reputation for customer satisfaction.

U.S. Carmakers Try to Win on Asian Rivals' Terms
Asian auto makers grabbed their biggest chunk ever of the U.S. car and truck market in 2009, but, according to MSNBC, they may struggle to build on that momentum this year as rivals in Detroit offer a fleet of efficient, small cars. Market share held by 10 Asian automakers - including leaders Toyota Motor Corp. and Honda Motor Co. - rose to 47.4 percent last year, surpassing for the first time Detroit's three players, which slipped to 44.2 percent, according to Autodata Corp. This year's struggle will center on small and midsize cars, as well as alternative-fuel models that run on electric batteries, or hybrid combinations of gasoline and electric. The Asian manufacturers' longtime dominance in smaller and greener cars gives them a running start this year, but Ford Motor Co. has countered with a revamped compact Focus and General Motors Co. is touting an all-electric Volt and new small cars like the Aveo, which is supposed to get about 40 mpg on the highway. It's a brutal market overall. The outlook for industry sales isn't certain for 2010, but last year saw a drop of 21 percent to the worst level since 1982. Just 10.4 million cars and light trucks were sold, far below the average of 17 million for much of last decade. Click here for more on the challenges Asian auto makers will face in the U.S. market in 2010.

Electric Cars: Race is on, and the Road is Jammed
According to the Detroit Free Press, the road for electric vehicles is starting to get jammed - and no one's sure where it leads. Every major automaker at the Detroit auto show this week offered some flavor of electric-drive vehicle, with several start-ups, such as Commuter Cars from Spokane, Wash., jostling for attention, too. Click here for a photo gallery of electric vehicles on display at this week's Detroit auto show. But questions remain: Where to plug in on trips? Who will pay the higher price tag that comes with many models? Some auto makers and experts warn of a traditional industry hubris that's slow to catch shifts among consumers. "We are an industry that summarily discounts new competition," said John Mendel, executive vice president of Honda in America. Throughout the show, every reveal of a new electric-powered vehicle raised the same set of hurdles that lie outside the auto industry's control. Half of the cost of an electric vehicle comes in the battery pack. Governments around the world have supported electric vehicles so far, but many executives worry about relying on subsides. And many consumers appear unwilling to justify the extra cost of even a regular hybrid unless oil prices surge far higher. For more on electric vehicles on display at this weeks' Detroit auto show, and what their future holds, click here.

Detroit's Hottest Debuts
While many at the Detroit auto show are breathing a sigh of relief that 2009 is now history, some are optimistic beyond the numbers. Don Esmond, senior vice president of Toyota USA, compared 2009 to a "good Midwestern ice storm - it'll trim the trees and they'll come back stronger." And for the auto industry, a big measure of that strength - or at least show of strength - is the unveiling of new products. Forbes spent several hours on the floor of the auto show examining vehicles and interviewing auto makers about what they have slated for 2010 and beyond to determine which vehicles are the hottest newcomers to Detroit this year. Click here to view a slideshow of vehicles that topped Forbes' list. Volkswagen AG will offer 60 new and refreshed models globally across its brands this year; Nissan will bring eight new cars to market in the next 12 months, including the electric LEAF. In the U.S., Toyota has committed to bring a mass-marketed, plug-in Prius to showrooms in 2012 -- which will compete with GM's plug-in Chevrolet Volt, slated to go on sale later this year. Higher up in the price spectrum, Mercedes-Benz is debuting its E-Class convertible and BMW is unveiling its Z4 sDrive35i. Click here for full coverage of Detroit's hottest vehicle debuts.

Dutch Carmaker Still Pushing to Buy Saab
The head of the Dutch carmaker trying to buy Saab said Tuesday that the company had the money to make a deal and that one was still possible even though General Motors had started to shutdown the Swedish carmaker. "They are considering offers very, very seriously," Victor Muller, the chief executive of Spyker Cars, said. "I'm not that concerned about all these steps that are being taken. It's my job to reverse that decision and make sure that Saab is indeed saved." According to the New York Times, so far G.M. has resisted Spyker's bids and last week began what it described as an "orderly wind-down" of Saab. An earlier deal to sell Saab to a Swedish company, Koenigsegg Group, fell apart in November. Nick Reilly, the head of G.M.'s European operations, said Tuesday that the automaker would make a final decision by next month, but that a sale appeared unlikely. "In our plans, we are winding down Saab regrettably," Mr. Reilly said at the Detroit auto show. "The longer it carries on as we start to wind it down, the more difficult it is for somebody to come along and buy it." Click here for more on the future of Saab as GM prepares to close out the brand.

Yesterday, Today, Tomorrow: AIADA's 40th Annual Meeting and Luncheon
Join fellow dealers and industry leaders as AIADA celebrates 40 years and looks to the challenges of tomorrow at its Annual Meeting and Luncheon, February 15, 2010 in Orlando, Florida. John Krafcik, President and CEO of Hyundai Motor America, will present the keynote address, and the AIADA board of directors will announce the recipient of the 2010 Dave Mungenast Lifetime Achievement Award. Finally, the gavel will be passed from current AIADA Chairman Russ Darrow of Wisconsin to the 2010 Chairman-Elect Rick DeSilva of New Jersey. This year's meeting is more important than ever. Don't miss the chance to connect with fellow dealers and industry insiders to build on the success of yesterday and confront the challenges of today and tomorrow. Click here to register.