January 27, 2010
Toyota Suspending Sales of Eight Recalled Cars
According to MSNBC, Toyota is suspending U.S. sales of eight car and truck models to fix sticking gas pedals and halting production lines at plants from Texas to Canada to deal with the problem. The suspended sales, announced Tuesday, involve a significant portion of Toyota Motor Co.'s fleet and some of its most popular vehicles, including the Camry and Corolla. As part of the plan, Toyota is halting some production at five assembly plants beginning the week of Feb. 1 "to assess and coordinate activities." There are 2.3 million vehicles involved in the recall, which was announced last week. "This action is necessary until a remedy is finalized," said Bob Carter, Toyota's group vice president and general manager. The automaker said the sales suspension includes the following models: the 2009-2010 RAV4, the 2009-2010 Corolla, the 2007-2010 Camry, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2010 Highlander, the 2007-2010 Tundra, and the 2008-2010 Sequoia. The move would affect plants in Princeton, Ind., Lafayette, Ind., Georgetown, Ky., San Antonio, Texas, and a facility in Ontario, Canada. About 300 workers who build V8 engines at a Toyota plant in Huntsville, Ala., will also be affected. Owners with questions can call the Toyota Customer Experience Center at (800) 331-4331. Click here for full coverage of Toyota's recall.
Don't Miss Your Chance to Register for 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. Registration for this can't miss event won't be available much longer. 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. 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. Don't wait. Register today by clicking here or by calling 1-800-GO-AIADA.
GM Strikes Deal to Sell Saab Brand to Spyker
General Motors reached a deal on Tuesday to sell its Saab operations to the carmaker Spyker Cars NV, keeping the Swedish brand alive. Under the deal, GM gets $74 million in cash and $326 million in preferred shares of Saab, which will represent less than 1 percent of the voting rights, according to Netherlands-based Spyker. According to the Detroit Free Press, the deal marks a victory for GM after attempts to sell Saturn and Opel fell apart at the last moments. GM is winding down Saturn and Pontiac and has a tentative deal to sell Hummer as it focuses on Chevrolet, Cadillac, Buick, and GMC in the United States. Opel is in the process of being restructured. A deal to sell Saab to Koenigsegg Group AB fell apart in November after an initial agreement was reached in June. Then last-minute negotiations with Spyker were interrupted by GM's announcement in December that it would wind down Saab. Despite that, the two sides continued to talk. The deal, which is subject to governmental approvals, is expected to close in mid-February, according to a GM statement. Click here for complete coverage of GM's sale of its Saab unit to Dutch automaker, Spyker.
Spotlight Shines Green at Washington Auto Show
Automakers at the Washington Auto Show on Tuesday touted their aggressive plans to rapidly bring plug-in electric vehicles to market. According to The Detroit News, Nissan Motor Co. showed off its battery electric Leaf, which will have a range of 100 miles and go on sale in December. The Japanese automaker hasn't disclosed the price of the vehicle. But the company said Tuesday that 38,000 potential customers have signed up for information on the Leaf. Nissan won a $1.6 billion low-cost Energy Department loan to build the next-generation battery electric Nissan Leaf in Tennessee. Politicians also came to the show. They included Rep. Edward Markey (D-Mass.) who on Tuesday praised efforts to build electric vehicles. The Energy Department plans to award more funds this year to spur the development of electric vehicle technology. Two electric car startups also have won loans: $529 million for Fisker Automotive's plug-in development, and $465 million to Tesla Motors to build a factory in Pasadena, Calif., for its $50,000 Model S electric sedan and a powertrain manufacturing facility in Palo Alto. The push comes as automakers are preparing spend billions with a 40 percent jump in fuel efficiency standards by 2016. For more on electric vehicles at this week's Washington Auto Show, click here.
Why $25,000 is Magic for Cars
How much car can you get for $25,000? More than you might think. According to the Wall Street Journal, from two-seat convertibles to sport-utility vehicles, family sedans and minivans, a wide range of new vehicles can be purchased for that price or less. Click here for a slideshow of affordable vehicles. People perceive $25,000 as a price they can manage, analysts say - without having to settle for a low-end car. Car makers, facing a prolonged sales slump, are trying to keep prices below that perceived sweet spot in order to lure recession-weary consumers. Subaru sells most of its cars for just under $25,000, spokesman Michael McHale says. Crucially, at $25,000, buyers can keep monthly car payments between $400 and $500 on a four-year loan with an interest rate of 6.56 percent and a down payment, trade-in or combination equal to 20 percent of the sticker price. Lower-cost loans are more important for buyers than in the recent past because lease offers have been cut back substantially and are harder to find. Click here for a video on why $25,000 is today's sweet spot for automakers and consumers alike. To read more on what vehicles fit the bill, and what consumers often give up to achieve the $25,000 price point, click here.
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