July 29, 2010

Nissan, Hyundai Profits Soar
Nissan Motor Co. and Hyundai Motor Co's forecast-beating quarterly profits may prove tough to match in the second half as robust sales in China and elsewhere start to slow. According to Automotive News, patchy recovery in the U.S. market has become one of the biggest concerns for the auto industry. Nissan, Japan's No.3 automaker, reported its strongest quarterly operating profit in more than two years as sales surged, but it left its cautious guidance unchanged amid an increasingly murky outlook for demand. Hyundai, the world's No.5 car maker with affiliate Kia Motors Corp., beat forecasts with a record quarterly profit, helped by strong sales of models such as the Sonata sedan and Santa Fe sports utility, as well as weakness in the Korean won. South Korea's top automaker plans to launch a revamped version of its best-selling compact car Elantra in August and the Azera sedan later this year. Nissan is aiming to boost its global market share this year with sales growth of about 8 percent to 3.8 million units, driven by the revamped Micra/March subcompact, Juke crossover, and other new models including the much-hyped Leaf electric car. Since the beginning of the year, Hyundai shares have risen about 20 percent, versus a 5 percent gain in the wider market. Click here for more on Hyundai and Nissan's profit projections.

Toyota Recalls 412,000 Cars in U.S., 16,000 in Japan
Toyota is recalling 412,000 passenger cars, mostly the Avalon model, in the U.S., and another 16,420 vehicles in Japan for steering problems, the automaker said Thursday. The 373,000 Avalons being recalled in the U.S. range from the 2000 model year through to 2004 and have improper casting of the steering lock bar - a component for the steering system - causing cracks to develop on the surface. According to the Detroit Free Press, in some cases, the crack can cause the lock bar to break, potentially leading to a crash if the steering wheel locks, the world's No. 1 automaker by car sales said. No injuries have been reported from the accidents that may be caused by the defect. Also being recalled in the U.S. are 39,000 Lexus luxury model LX 470s for the 2003-2007 model years because of a steering shaft problem, which is different from the Avalon steering problem, according to Toyota. That problem affects 9,670 vehicles in Japan, two Land Cruiser models, the ministry said. One problem has been reported but no accidents are suspected of being linked to the defect, it said. Owners of Avalon and Lexus cars are being notified next month, being asked to bring in their cars to nearby Toyota and Lexus dealers for a free fix. For the latest on Toyota's recalls, click here.

10 Most Comfortable Cars Under $30,000
Multi-zone automatic climate control, heated/cooled seats, power window shades are just a few features of today's mainstream cars that offer more comfort-enhancing touches than yesterday's luxo-barges. Still, the basic foundations of comfortable transportation - road, rail or air - are a smooth, quiet ride and a just-right seat. So those are the factors Kelley Blue Book (KBB) focused on when putting together its list of the 10 Most Comfortable Cars Under $30,000. Not so long ago, such a list might have been populated exclusively by large, unwieldy, couch-like cars. Today, suspension and platform advancements have mitigated the compromise between ride and handling, as exemplified by the cars on our list. Not having to worry about the potentially fiery consequences of evasive action at highway speeds is a more relaxing way to get anywhere. The list includes the Hyundai Azera, which KBB says feels like a throwback to the era when a big sedan had a soft, "boulevard" ride and nobody cared too much about going around corners quickly. The Azera is as softly suspended as your favorite easy chair, and the rear seat area has the roomy aura of a limousine. Also on the list: the 2010 Subaru Legacy, noted for its comfortable seats and the newfound roominess of its cabin. Click here to see KBB's entire list of the most comfortable vehicles on the road today.

Audi Orders Extra Vehicles, Aims for 100,000 U.S. Sales
An extra allocation of 5,000 vehicles in the second half - vehicles diverted from other markets around the world - could push Audi's U.S. sales to a record 100,000 units this year. Automotive News reports that Audi of America President Johann de Nysschen said the company is now due to receive 103,000 vehicles for the full year. Audi obtained 48,000 units from Germany in the first half of the year, but de Nysschen says the brand has experienced a shortage in nearly every car line. Getting the additional vehicles doesn't automatically mean Audi will hit the 100,000 mark in 2010, he said. "We have to look at filling the pipeline and our anticipated sales projections for the first quarter of next year." On July 1, Audi had a 21-day supply of vehicles, the lowest in the industry. Last year, Audi sold 82,716 vehicles in the United States. Sales through June were up 28 percent to 48,440 vehicles. The brand's U.S. sales peaked in 2007 at 93,506 units. Three new cars are expected to fuel the growth in premium sales. The redesigned long-wheelbase A8 sedan, which accounts for 80 percent of A8 sales in the United States, will debut in November. It will be followed by the A7 next year and a redesigned A6 sedan in 2011. Audi unveiled the all-new A7 this week. Click here to see photos of the vehicle. For more on Audi's plans for U.S. sales, click here.

X-Prize Rolls Down to Wire After a Long Road
MSNBC reports that it's down to the wire for the Progressive Insurance Automotive X-Prize, or PIAXP, a competition announced in April 2008 as a way to spur the development of clean, high-mileage vehicles. Funded to the tune of $10 million - which will eventually be divided among three separate categories - the event seems unexpectedly well-timed considering the way the BP Gulf oil spill has raised anew questions about America's dependence on foreign oil. "What we're trying to do here is set the future, set the next level of efficiency for the automobile," said Steve Wesoloski, one of the senior technical advisors on PIAXP. On Tuesday, the foundation announced the results of an on-track competition, leaving nine vehicles from seven teams in the running. The X-Prize challenge drew an unexpectedly strong response; 115 teams entered 136 separate vehicles. They covered a wide range, from the relatively conventional to the truly exotic. Some entrants decided to bet on the time-tested internal combustion engine, focusing their efforts on other ways to improve efficiency. In the two alternative vehicle categories - one for side-by-side two-seaters, the other for tandems - electric propulsion has been a dominant, though not an overwhelming force. Click here for photos from the X-Prize. To read more about the X-Prize, click here.

How Sustainable is Your Dealership?
'Sustainability' has become a key buzzword in our society and for good reason. While part of sustainability focuses on creating an environment suitable for future generations, the other aspect focuses on something that every businessperson strives for - increasing your bottom line. What is one way that you can both help the environment AND contribute to your dealership's bottom line? Upgrade your dealership lighting. Venture Lighting, the official lighting Partner of AIADA, offers dealers the best of both worlds. Not only does their manufacturer-direct pricing save you up to 25 percent, but Venture's pulse start lamps save money on energy costs and replacement costs, since they last up to two times longer than outdated probe start lamps. In addition to using less energy, Venture offers customers FREE Smartpac® lamp recycling and Energy Star Program Management. For more information on a lighting upgrade to make your dealership more sustainable, contact Venture at (800) 657-0077 or aiada@venturelighting.com.

Around the Web
Mazda: DriverVille Video [Creativity-Online.com]
How to Spot a Muscle-Car Guy [Forbes]
June Demand for Gasoline at Lowest Level in Six Years [Autoblog]
MINI Returns to Rallying Roots [NY Times]