October 25, 2011

VW Likely to Overtake Toyota as Top Carmaker in 2011
According to Bloomberg, Volkswagen AG will probably become the world’s biggest carmaker this year, vaulting past Toyota Motor Corp. and General Motors Co. on gains in emerging markets. The German company’s sales, third among carmakers in 2010, will probably rise 13 percent to 8.1 million vehicles this year, based on the average of three analysts surveyed by Bloomberg. GM sales will gain about 8 percent to 7.55 million, while Toyota will drop 9 percent to 7.27 million, according to the survey. VW sales in China may rise almost 20 percent in 2011 and more than double in India, according to estimates at researcher J.D. Power & Associates. Estimates at J.D. Powers, IHS Automotive, and PwC Autofacts were used to calculate the average projections. Toyota may regain the lead from VW next year as the recovery of the Japanese company’s facilities from the March earthquake will pave the way for the Toyota City-based automaker to sell 8.4 million cars, or half a million units more than VW, according to research firm IHS Automotive. J.D. Power projects VW will retain its lead in 2012, outselling Toyota by about 50,000 units. For more on the race to be the world’s top automaker, click here.

Mazda’s Takeri Concept Foreshadows Next Mazda6
Mazda Motor Corp. has unveiled a sculpted, mid-sized sedan concept that strongly foreshadows the next generation Mazda6 and comes equipped with a regenerative braking system that helps save fuel by powering the car’s electrical system. The Takeri concept, to be shown at the Tokyo Motor Show in late November, employs the brand’s new kodo design language that debuts in the CX-5 small crossover. Click here for a picture. The car strongly hints at the upcoming redesign of the Mazda6, said Hidetoshi Kudo, general manager for product strategy. Automotive News reports that the concept brims with Mazda’s new SkyActiv fuel-saving technologies, including the SkyActiv-D clean diesel engine, the new six-speed automatic transmission, a new body and chassis framework, and an engine idle-stop system. But Takeri takes SkyActiv a step further as the first Mazda equipped with regenerative braking. The system converts kinetic energy to electricity during deceleration and stores it in capacitors for use later in powering air conditioning, audio systems, lighting and other equipment. Mazda expects to offer gasoline and diesel versions of the revamped Mazda6 when it goes on sale in the United States, Kudo said. For more on Mazda’s Takeri concept and the coming Mazda6, click here.

2012 Green Car of the Year Finalists Named
The 2012 Ford Focus Electric, 2012 Honda Civic Natural Gas, 2012 Mitsubishi i, 2012 Toyota Prius v, and 2012 Volkswagen Passat TDI are all finalists for 2012 Green Car of the Year, Green Car Journal announced Monday in a press release. CNET reports that the winner will be announced during a press conference at a Los Angeles Auto Show press day on November 17. This marks the seventh consecutive year the award has been given out. Green Car Journal editors considered dozens of models that were designed to reduce their environmental impact and be more energy-efficient. According to the press release, the cars under consideration include "high-efficiency gasoline and diesel models along with ones that run on gaseous fuels, electricity, and other alternative fuels." Green Car Journal also looked at the "market significance and 'newness'" of the cars. "This year's Green Car of the Year finalists underscore that there is no single solution to our transportation challenges," Ron Cogan, editor and publisher of Green Car Journal and editor of GreenCar.com, said. Last November, Green Car Journal named the 2011 Chevrolet Volt its 2011 Green Car of the Year. Read more about the finalists here.

Nissan Adapts to Strong Yen
As seemingly relentless yen strength eats into the profitability of Japanese auto makers, Nissan Motor Co. said Monday it remains committed to its aggressive midterm profit goals while seeking to appeal to drivers who prize fuel-sipping vehicles. Nissan, Japan's second-largest car maker by volume after Toyota Motor Corp., plans to spend 10 percent of its annual research-and-development budget over the next six fiscal years on environmental technologies in an effort to broaden its lineup of so-called green vehicles. But while Chief Executive Carlos Ghosn said Nissan's profit goals won't be affected by current yen levels, he warned that there is "no way" the company can plan any new projects in Japan as the currency continues to soar. According to The Wall Street Journal, Nissan aims to become a market leader in the market for environmentally friendly cars, targeting cumulative sales of 1.5 million zero-emission vehicles with partner Renault SA of France over the course of the six-year strategy. The Japanese company will spearhead its sales drive with the Leaf electric vehicle, which Nissan launched in December as one of four electric models that it plans to introduce over coming years. For the latest on Nissan’s profit strategy, click here.

The Divergent Fortunes of Saab and Volvo
On a gloomy, rainy afternoon, Rafael Hernandez strained through his exercise routine, preparing for the day that he would return to work at the local Saab auto plant. The Saab factory here has not produced any cars since April, when creditors stopped providing operating cash and left Mr. Hernandez and more than 3,000 of his co-workers with little to do but wait. Just 62 miles to the south, in Gothenburg, Sweden’s second-largest city, the contrast is stark. There, Volvo is operating two shifts, churning out 54 cars an hour from early morning until midnight. Stefan Jacoby, Volvo’s new chief executive, talks confidently of plans to raise output to 800,000 cars a year by 2020. That the outlook for the Swedish carmakers could be so different is partly testimony to diverging histories under former American owners — General Motors for Saab, Ford Motor for Volvo. According to The New York Times, it also reflects their ensuing fortunes: Volvo found a deep-pocketed rescuer and Saab did not. Without a breakthrough, Saab’s fate could be sealed as early as Friday, when the court overseeing the reorganization decides whether it can continue. For expanded coverage of the triumphs and misfortunes of Sweden’s automakers, click here.

What You Need to Know about Dealership Construction and Real Estate Investment
Expanding your dealership can put you in a better position to take advantage of new opportunities. For many dealers, however, the decision to expand is just a start: understanding the ins and outs of real estate construction and acquisition can be a real challenge. Join AIADA and Affinity Partner, KeyBank¹ – along with presenters from Massachusetts-based Colonial Auto Group and the law firm of Stebbins, Lazos, and Van Der Beken – on Thursday, November 17 at 11 a.m. EST for a free webinar that will provide insight on auto dealer real estate decision-making. The webinar will cover topics including what you should consider before taking on a construction project; project, budget and risk considerations in commercial construction administration; important legal issues to take into account; and a dealer’s perspective on new construction and real estate purchase. Whether you are building or buying new facilities, this webinar can help you make the most of your real estate space. Be sure to save the date and time – Register today! 
 ¹Information provided by KeyBank National Association is not legal, tax or investment advice. If such advice is required, the services of a qualified professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information. All credit products are subject to credit approval. 

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