August 13, 2010

Report: U.S. Loses 258 Auto Dealerships in First Half of Year
The number of automotive dealers in the United States is expected to fall about three percent this year, following a record decline in 2009, according to findings released Thursday by a Detroit-based consulting firm. As of July 1, there were 18,223 dealers nationwide; 258 dealers closed in the first half of the year, said John Frith, vice president of retail channel solutions for Urban Science. That is on top of last year's record 1,603 closures, a drop of eight percent. That compares to an annual decline of one percent to two percent since 1991, Frith said Thursday. The shrinking numbers in 2009 and 2010 are due to terminations by General Motors and Chrysler, as part of their bankruptcy restructurings last year. However, The Detroit News reports that during the same period, about 40 dealers, mainly selling Volkswagen, BMW, Hyundai, and Kia brands, opened across the country. The consolidation occurs as the auto industry continues to readjust to lower sales volumes, which dropped dramatically and are rebounding slowly. Some analysts wonder if the heady days of 17 million U.S. sales will return. The industry is currently pacing at a 12 million annual sales level. For more on some of the big changes taking place in the U.S. auto retail industry, click here.

2010 Top 10 Family Cars
According to Kelley Blue Book, if safe, roomy, and affordable are the characteristics that qualify a vehicle as a family car, then the American family has never had so many choices. While a sea of options is ultimately a good thing, it can also make it more difficult for families to pick a winner. To help ease the pain, every year Kelley Blue Book puts together a list of the Top 10 Family Vehicles, evaluating an ever-lengthening list of eligible vehicles on such factors as resale value, fuel efficiency, capability, and kid-friendliness. This year's list features vehicles in a range of sizes and prices, offering something for a wide variety of families. Click here to see them, listed in order of overall passenger/cargo roominess. International nameplates perform well on the list. Notables include the Honda Odyssey, which Kelley Blue Book notes is sharply styled and the most premium-like minivan on the market. The Subaru Outback is also a top performer as a family vehicle. The all-new 2010 sport wagon/crossover is the longest, widest, most family-friendly yet, writes Kelley Blue Book. Also on the list: the Honda Accord Crosstour, as well as the Hyundai Elantra Touring. Click here to see the list of family-friendly vehicles and what the folks at Kelley Blue Book liked most about each of them.

New CEO for GM
General Motors Co. said it would replace its chief executive with a board member lacking automotive experience but well-regarded on Wall Street, a move whose timing was surprising and appears designed to pave the way for the car maker's return to the public stock market. According to the Wall Street Journal, Daniel Akerson, a 61-year-old director known for his work as a telecommunications dealmaker, will take over as CEO on Sept. 1. He will replace Edward E. Whitacre Jr., a former AT&T Inc. chairman and CEO brought out of retirement by the Obama administration a year ago to lead the company out of its U.S.-financed bankruptcy reorganization. Whitacre, 68, will remain chairman until December, when he will cede that title to Akerson as well. The change atop the nation's largest car maker is part of a plan put in place by GM's board over the last few weeks to enable the company to present a clear picture of its management team to investors as it looks to return to the public markets and allow the U.S. to cash out its 61 percent ownership stake. Whitacre has long said he planned to step down after GM offers shares to the public. Click here to read the Wall Street Journal's report on GM's incoming CEO and the changes still ahead for the automaker.

Hyundai Is 'On a Roll' With Car Buyers
Hyundai made its first appearance in the top five most considered automotive brands among new-car shoppers, according to the latest Kelley Blue Book Market Intelligence Brand Watch study. It also named Hyundai as the No.1 "upward-climbing" brand in share of market interest in May, as Hyundai's share of new-car shopper activity increased 70 percent from May 2009. The New York Times reports that the increase was attributed to the popularity of the newly redesigned Sonata and Tucson models. And in the first quarter of this year Hyundai became the top automaker in brand loyalty, surpassing Toyota and Honda. Earlier this year, the 2011 Hyundai Sonata was the most considered vehicle on Edmunds.com for five consecutive weeks, a first for Hyundai. The Tucson was also second for two weeks on the Edmunds.com analysis. In June, the Sonata was the site's most considered vehicle. Sales have continued to rise, with Hyundai setting an all-time July sales record, following all-time June and May sales records. July was its 19th consecutive month of year-over-year retail market share gains. While the Genesis was its foray into the luxury market, later this year its new flagship sedan, the Equus, will go on sale. Hyundai has said pricing will start in the mid-$50,000 range. For coverage of Hyundai's uptick in success among U.S. car shoppers, click here.

Review: Mazda2 is an Entry-Level Blast
Drafting is an auto racing art, the trick being to follow another car closely enough to take advantage of reduced air resistance, but not so closely as to crash into its bumper. For the 2011 model year, this racetrack technique is wafting into the increasingly competitive space of subcompacts. Take the Mazda2, an inexpensive new hatchback that's taking advantage of Ford's heavily marketed new Fiesta - a car that itself was following the success of Honda's Fit and Toyota's bargain-basement Yaris. Click here for a photo of the Mazda2. Starting at $13,980, the Mazda2 isn't the least expensive subcompact. (That would be the Yaris, priced at $12,605). Averaging 35 mpg highway and 29 city, the Mazda2 isn't the most fuel efficient. (Yaris wins again, with 36 highway, 29 city). But the Mazda2 is the most fuel efficient car the Japanese manufacturer has made in the 40 years it's been peddling cars in North America. Susan Carpenter at the Los Angeles Times said she found the Mazda2 interior to be pleasingly simple, if Spartan. Additionally, while the technology in the Mazda2 cockpit is neither plentiful nor cutting-edge, it's smart in what it offers. There are steering wheel controls for the stereo and cruise control. Overall, Mazda2 proves the adage: Good things come in small packages. Click here for Carpenter's entire review of Mazda's entry-level subcompact.

Around the Web
Audi Future Vehicles [Edmunds Inside Line]
Nissan Juke Pricing Announced [U.S. News and World Report]
The Mystery of Steve Jobs' Plateless Buzz [Gizmodo.com]
Reggie Jackson Selling 15 Cars to 'Simplify' His Life [DriveOn]