November 2, 2011

Industry Continues Steady Recovery in October
October represented a successful month for the U.S. auto market, which analysts credit to pent up demand, stable gas prices, and slowly improving inventory levels. According to AIADA’s Market Watch, Hyundai’s sales were up 22.8 percent, Kia was up 20.8 percent, Nissan was up 22.1 percent, and Volkswagen saw sales rise 39.6 percent from a year ago. Honda and Toyota, still struggling with inventory shortages and now severe flooding in Thailand, saw sales drop 0.7 and 6.8 percent, respectively. They are confident, however, that production levels are returning to normal, and expect the fourth quarter to be strong. Overall, international brand sales were up 6.8 percent from October 2010 and 6.2 percent year to date. Domestic automakers, thanks to improved SUV and truck sales, were up 8.3 percent and 14.8 percent for the year. “Throughout 2011, dealers have seen a pattern of slow but stable growth in sales,” said AIADA President Cody Lusk. “More than anything, the steady pace of our recovery shows us that the auto industry is on solid footing.” For more on how international brands fared in the U.S. auto market during October, click here.

Matchmakers Introduce Drivers to Best Models
With more than 1,000 different models available, The Wall Street Journal’s Joseph B. White says that choosing can be difficult. Taking a cue from romantic matchmaking services, several leading auto-shopping and advice websites are experimenting with online tools designed to help car shoppers choose a new car. For people whose needs aren't met by obvious top-sellers like the Toyota Camry, the new online tools might be worth a try. Edmunds.com Chief Executive Jeremy Anwyl says the company worked with academics who have researched how people make choices, in developing its My Car Match tool. "The idea is to understand how people make trade-offs," Mr. Anwyl says. Shoppers will say that good fuel economy is a top requirement, but in reality they will sacrifice miles per gallon to get a car that can comfortably hold five people and a lot of bags. Consumer Reports has been testing a New Car Selector feature for its website that aims to help shoppers create a personal top-10 list by pulling together information from the magazine's road tests, quality surveys and other information. Click here for The Wall Street Journal’s interactive graphics on which cars buyers prefer. For more on online automotive “matchmaking” tools, click here.

Hyundai Weighs Powerful V-8 for Genesis Coupe
Watch out Ford Mustang, Chevrolet Camaro, and Dodge Charger: USA Today reports that there may another hot coupe with a big 5-liter Tau V-8 engine under the hood. Gently hinting at things to come, Hyundai has shoehorned its big V-8 under the hood of its Genesis coupe. At present, the stock version has nothing bigger than a V-6. The 450-horsepower V-8 coupe is just a concept for the SEMA aftermarket trade show going on in Las Vegas, but things are sounding serious. Click here for a picture of the SEMA concept. Hyundai Motor America CEO John Krafcik seems to be intrigued at the possibilities. He just announced some improvements and updates will be coming to the rear-wheel-drive coupe, which has only been out about three years, for the North American International Auto Show in Detroit in January. And he notes that the Genesis shares the same chassis with the much larger sedan of the same name, which easily carries the V-8. The concept was built by Rhys Millen Racing, the latest product in a four-year partnership. Asked if he would add the V-8 to the coupe for customers to buy, Krafcik replied, "It's certainly a possibility." Click here for more on Hyundai’s plans for its Genesis coupe.

Mitsubishi Starts Production of U.S.-Bound EV
Mitsubishi has started production of its i electric vehicle that is destined for North America, as the Japanese automaker prepares to start selling the small car in Hawaii, California, Washington, and Oregon by the end of November. The automaker also said the North American version of what's sold as the Mitsubishi i-MiEV in Japan and Europe will be torquier than overseas versions; a tire-pressure monitoring system and front and rear bumpers also will be added in order to conform to North American safety requirements. Click here for a picture. Edmunds Auto Observer reports that Mitsubishi, which has sold about 16,000 i-MiEVs since debuting the model in Japan in July 2009, is looking to sell 1,500 of the electric vehicles by March 31 and 5,000 a year in the U.S. starting in 2013. The company's North American division is marketing the four-door hatchback as a zero-emissions commuter car that best complements a conventional car instead of serving as a household's only vehicle. The i, which is priced in North America at about $6,000 less than the $35,200 Nissan Leaf battery-electric vehicle, offers an EPA-rated single-charge range of about 62 miles, or 11 miles fewer than the Leaf. For details on Mitsubishi’s new EV, click here.

Toyota to Export U.S.-Built Sienna to South Korea
Toyota Motor Corp., demonstrating the impact of the new U.S.-Korean free trade agreement, on Tuesday said it will export Sienna minivans from its Princeton, Ind. plant to distributors in South Korea. Shipments of an estimated 600 vehicles a year are scheduled to begin in early November, according to Automotive News. "Toyota's North American operations are constantly working to identify and expand opportunities for the vehicles we produce here," Yoshimi Inaba, COO of Toyota Motor North America Inc., said. This will be the first time the Sienna will be exported from North America. In September, Toyota was considering shifting production of its South Korea-bound Camry mid-sized cars to the United States from Japan to help lower export costs, due in part to a soaring yen and a free trade agreement between the United States and South Korea. Toyota also exports its Avalon sedan produced in Georgetown, Ky., as well as its Sequoia SUV assembled in Princeton, and Tacoma and Tundra pickups produced in San Antonio, Texas. Toyota supported the free trade accord between the U.S. and South Korea. Toyota's exports rose 30 percent in 2010 to about 100,000 units. For more on Toyota’s plans to export the Sienna minivan from one of its U.S. factories, 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.

Around the Web
Coverage of 2011 SEMA Show [Edmunds Inside Line]
New Type of Car Loan Designed to Give Buyers Peace of Mind [The Car Connection]
Mulling the Second Life of an EV Battery [Wheels]
Garages to Make Auto Enthusiasts Swoon [Forbes]