October 28, 2011

Let Good Times Roll Becomes Carmakers’ Refrain
Toyota Motor Corp.’s Mississippi plant opens this month to build the Corollas that the Japanese automaker needs to get its U.S. sales growing. Among the 1,500 people Toyota is hiring for the Blue Springs plant is Karen Bowen, 39, a single mother. Her job with the quality-assurance team “means a better life for my family,” said Bowen. According to Bloomberg, U.S. and international carmakers plan to hire or rehire at least 25,000 workers between now and 2015. That includes 4,000 jobs in the fourth quarter alone from Toyota’s $1.3 billion plant, a new assembly shift at Honda Motor Co.’s Civic factory in Indiana, a third shift at Kia Motors Corp.’s Georgia assembly plant, and an expansion at Hyundai Motor Co.’s Alabama plant. “There’s a sense of ‘let the good times roll’ for automakers,” said James Rubenstein, a professor at Miami University in Oxford, Ohio. Including Volkswagen AG’s new Tennessee plant and recent hiring by BMW in South Carolina, international carmakers are adding 6,350 jobs this year at their U.S. plants, with 3,400 more coming in 2012 as Toyota, Honda, Nissan Motor Co., and Daimler AG’s Mercedes-Benz expand U.S. operations. For more from Bloomberg on the auto industry’s rebound, click here.

A Bubble? October Car Sales May Be Year's Highest
October car and truck sales may mark the highest monthly Seasonally Adjusted Annual Rate (SAAR) of sales at 13.4 million vehicles, reports Edmunds Auto Observer. That would be the highest level since August 2009, when sales were inflated by the U.S. government’s Cash for Clunkers program. Edmunds.com estimates 1,033,257 cars and light trucks will be sold October, which would be up 13 percent from October 2010, but down nearly 2 percent from September. Edmunds.com estimates that retail SAAR will come in at 10.7 million vehicles, with fleet sales accounting for 20 percent of all sales this month. Automakers post results on Tuesday. Click here for a table comparing SAAR rates over the past year. But will high sales levels last? “Pent-up demand has been building for three years and will play out on a slow building of sales,” said Edmunds.com CEO Jeremy Anwyl. He notes that a number of buyers may be back in the market who were put off by a lack of inventory and high prices in April and May. But this bubble of buyers, which he estimates as 200,000 to 300,000 sales, will taper off towards the end of the year. Click here for more October car sales predictions.

China's Pang Da, Youngman Agree to Buy Saab
According to Automotive News, Chinese firms Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to buy Saab for 100 million euros ($142 million). Saab owner, Swedish Automobile, said today that it has entered into a memorandum of understanding to sell 100 percent of the shares of Saab to the Chinese companies. Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile." The memorandum of understanding is valid until November 15, provided Saab stays in reorganization. Swedish Automobile said Saab's administrator, Guy Lofalk, has withdrawn his application to a Swedish court for Saab to exit reorganization. Swedish Automobile Chairman Victor Muller said the deal has "secured the future of Saab." He went on to say that the Chinese companies are committed to investing 500 million euros in Saab and that he will stay on as Saab CEO until a new CEO is found and plans to remain involved in the future. Without fresh investment, Saab could lose its court protection from bankruptcy claims, paving the way for the automaker to be declared bankrupt. Click here for the latest on Saab’s financial issues.

Hyundai Profit Increases 21%
Hyundai Motor Co. said Thursday that third-quarter profit rose 21 percent, helped by sales of Sonata sedans and Tucson SUVs. Net income climbed to 1.92 trillion won ($1.7 billion) in the three months ended Sept. 30, compared with 1.59 trillion won a year earlier, the Korean automaker. South Korea's largest maker of automobiles was projected to report profit of 1.89 trillion won, based on the average estimate of seven analysts surveyed by Bloomberg. Chief Financial Officer Lee Won Hee said Hyundai Motor will probably sell more than 4 million vehicles this year as they crank up production from factories in markets such as China. The gains will probably lead Hyundai Motor to post record earnings this year and exceed profits generated by Japan's Toyota Motor Corp., according to analyst estimates. Hyundai had initially targeted sales of 3.9 million this year. Automotive News reports that in China, demand for mid-sized sedans surged, resulting in monthly Sonata sedan sales climbing above 10,000 for the first time in September. The company also boosted production in Russia, where Hyundai began manufacturing cars last year, after it started to build affiliate Kia Motors Corp.'s redesigned Rio subcompact, according to company data. Click here for more on Hyundai’s profits.

Autos in a League of Their Own
To leave their mark on the automotive landscape, automakers are constantly trying to create new types of vehicles. According to MSN Autos, sometimes they miscalculate, and build a machine that is doomed to be ridiculed forever. But when a winner is conjured up, the automaker often has an instant classic on its hands. And sometimes when the vehicle is executed just right, other manufacturers surrender the market to it. Here, MSN Autos presents 10 such vehicles. These machines have no real competition, because of price, body style, market position, or performance. Essentially, they are in a league of their own. The Mazda Miata makes the list. While it's not very powerful, it is as fun to drive as larger sports cars, with their bigger engines and much higher price tags. The Miata has had very little competition in its 22-year run. The Smart fortwo, which arrived in the U.S. in 2008, is also noted for its original novelty as the smallest production car most people had ever seen. Honda built its Ridgeline pickup truck on a carlike, unibody platform instead of using a traditional ladder frame, placing it on the list. To check out other vehicle novelties in a league of their own, click here.

AIADA to Celebrate “A Legacy of Leadership” at 42nd Annual Meeting and Luncheon
Join AIADA, fellow dealers, and industry leaders at our 42nd Annual Meeting and Luncheon in Las Vegas. Together, we’ll consider the Legacy of Leadership that is inspiring today’s international dealer community and what it means for the future of our industry. This year's meeting will include keynote remarks from Mark Templin, Group Vice President and General Manager at Lexus. “Lexus has proven itself a leader in the U.S. auto market, and Mark Templin has played a central role in making it one of today’s most popular luxury brands,” said AIADA President Cody Lusk. “His remarks will provide invaluable perspective for dealers considering how our industry can continue to lead in the U.S.” Read more about Templin and AIADA’s 42nd Annual Meeting and Luncheon here. In addition to Templin’s remarks, the event will include the presentation of the David F. Mungenast Lifetime Achievement Award and the passing of AIADA’s chairman’s gavel from the current chairman, Jim Smail of Pennsylvania to Chairman-Elect Ray Mungenast of Missouri. Don’t miss your chance; register today by clicking here or call 1-800-GO-AIADA.

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