February 1, 2010

Toyota to Dealers: Parts to Fix Pedals on Way
Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end of this week as the automaker apologized to customers and tried to bring an end to a recall that has affected 4.2 million vehicles worldwide. According to MSNBC, the company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open 24 hours to fix the 2.3 million cars and trucks affected by the recall in the U.S. Click here to view Toyota's complete statement on its plans to resolve issues with its gas pedals. The automaker also said Monday it would suspend production of eight U.S. models affected by the recall for this week. The company also suspended sales of the models last week until repairs can be made. Jim Lentz, president and chief operating officer of Toyota Motor Sales, said in the statement that nothing is more important than customer safety. Lentz, in an interview on NBC's "Today," said the automaker was "confident that we have the fix" for the gas pedal system. He said the company first developed a report on the problems in late October, and he denied that Toyota had delayed addressing the problem. Click here to view Jim Lentz on NBC's Today Show. For complete coverage of Toyota's plans to address accelerator pedals, click here.

Toyota's U.S. Dealers Remain Stoical Amid Recall
According to the Financial Times, Toyota's 1,200 U.S. dealers are putting a brave face on the recall of vehicles with potentially defective accelerator pedals and a freeze on sales of some of Toyota's most popular models. "We have a lot of confidence in Toyota that they'll expedite this recall and get on to bigger and better things," said John Ball, sales manager at Tansky Sawmill Toyota, a dealership situated on the outskirts of Columbus, Ohio. Cody Lusk, president of the American International Automobile Dealers Association, said "the priority at the moment is squarely on handling customer calls and answering any and all of their questions". Akio Toyoda, company president, apologised for the recall, Japanese broadcaster NHK reported on Friday. "We're extremely sorry to have made customers uneasy," Mr Toyoda said. Edmunds.com predicted that Toyota would post a 12 per cent drop from a year earlier when automakers post their sales reports this week. The pressure on dealers eased towards the end of last week when Toyota allowed them to continue selling vehicles with pedals not made by CTS Corp, the Indiana supplier of the mechanisms subject to the recall. Pedals on vehicles built in Japan are made by Denso, a big parts supplier partly owned by Toyota. Click here for more on how Toyota's recall is affecting dealers.

Kia Packs Style, Space into Koup
According to Mark Phelan at the Detroit Free Press, the attractive Kia Forte Koup brings a dash of sportiness to the automaker's model line, complementing the oddball charm of the little Soul hatchback the Korean automaker introduced last year. Click here for a photo of the Koup. The vehicle offers generous passenger and luggage space and features seldom seen in cars priced well under $20,000. The budget-priced fun continues on the road. The Koup's handling and acceleration are more than adequate, and it also offers the style and sportiness buyers look for in a two-door car, adding practicality and comfort with a roomy interior and trunk. Prices for the Kia Forte Koup start at $16,595 for an EX model with a five-speed manual transmission and 156-horsepower 2.0-liter four-cylinder engine. A four-speed automatic raises the EX price to $17,595. The SX model comes with a 173-horsepower 2.4-liter four-cylinder engine and goes for $17,695 with a six-speed manual and $18,500 with a five-speed automatic. All-in-all, Phelan reports that the Forte Koup is a well-executed, nicely equipped, attractive vehicle. Following on the heels of the delightful Soul hatchback Kia introduced last year, it's a sign of how rapidly the Korean automaker is improving. Click here for Phelan's entire review of the new Kia Forte Koup.

With Deal Done, Saab Focuses on Financing
Victor Muller, CEO of Spyker Cars NV and Saab's new owner, has no plans to reduce Saab's dealer network immediately and hopes to forge a long-term deal with GMAC Financial Services to be the Swedish brand's primary lender. According to Automotive News, last week, General Motors Co. and Spyker, a small Dutch producer of luxury sports cars, reached a binding agreement on the Saab purchase. As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles. Muller said he is "in discussions" with GMAC to complete an arrangement that would allow the lender to finance new and used vehicles as well as provide floorplanning for Saab dealers. Some Saab financing from lenders other than GMAC "stopped overnight" 13 months ago after GM said Saab was under strategic review, Muller said. "That's 80 percent of sales in America," he added. Muller hopes to have an agreement with GMAC by the time the deal closes with GM in mid-February. Last year, Saab's U.S. dealerships sold 8,680 vehicles, down 59 percent from 2008. In a statement last week, GMAC said it "welcomes the opportunity to continue as Saab's preferred finance company, and we are in discussions with GM and the Spyker organization about the transition." Click here for more on Saab's focus on financing issues.

An Updated Sport Utility Packed With Guilty Pleasures
According to Christopher Jensen at the New York Times, Land Rover's new LR4 is a heavily reworked version of the LR3. Not only does it have significantly more power and a first-class passenger compartment, but its on-road handling is greatly improved and its off-road ability remains impressive. The LR4 also has slightly revised exterior styling, aimed at addressing a design that some consumers considered somewhat brutal, said David Saddington, the director of the Land Rover Design Studio. "It is more approachable - some might say a little more friendly." Click here for a photo. The LR4 has an interior that is both practical and luxurious, and more in keeping with its cousins from Jaguar. Both Jaguar and Land Rover are marketed and sold through the same organization, a subsidiary of Tata Motors of India. The standard features include a sunroof with three glass panels. Although it weighs almost three tons, the LR4 can reach 60 miles per hour in 7.5 seconds, about a second quicker than the LR3, the automaker says. Despite the extra horsepower, the economy rating is unchanged because the engine is more sophisticated and efficient: 12 mpg in town and 17 mpg on the highway. Click here for a photo gallery of the LR4. To read Jensen's entire review, click here.

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.