November 3, 2011

VW Will Show Refreshed CC Sedan in LA
Volkswagen plans to show its refreshed CC sedan with coupe styling at the Los Angeles auto show this month. The CC debuted as a 2009 model and is on the European Passat platform. Changes to the freshened 2013 model include new front and rear styling and a standard rear bench that seats three, replacing the two rear bucket seats on the current car. The 2013 model gets adaptive xenon headlights and new LED taillights as standard equipment. Click here for a picture. VW said it has sold nearly 270,000 CCs since the car debuted. U.S. sales from 2008 through October have totaled 79,318, according to Automotive News. When the sedan debuted four years ago, it was the first affordably priced four-door coupe on sale in the U.S. What looked at first like a niche has developed into a completely new segment: the sedan has the looks and heart of a sports car and mixes practicality with style and attainability. Volkswagen's operations in the United States include research and development, parts and vehicle processing, parts distribution centers, sales, marketing and service offices, financial service centers, and its state-of-the-art manufacturing facility in Chattanooga, Tennessee. Read more about the new VW CC here.

Glued, Screwed, and Rented
BMW is committing more than $1 billion getting ready for a customer who doesn't exist just yet: young, urban, affluent, and looking for a premium electric ride – but maybe just to share rather than buy outright. Forbes reports that in June 2011 BMW launched DriveNow, a premium car-sharing service with Germany's Sixt AG. Customers can access cars using a special computer chip in their driver's license and can hire and leave them wherever they wish, rather than returning them to a specific location. The service started in Munich, with plans for other congested cities. BMW also created a $100 million venture capital fund, BMW i Ventures, to invest in startups like MyCityWay and ParkatmyHouse, which offer mobility services for crowded cities. As for the cars, BMW hasn't announced pricing but indicated the i3 (a tiny electric for urban commuters) will cost less than a BMW 5-series, starting at around $47,000 when it hits showrooms in late 2013. Press reports peg the likely price of the i8 (a plug-in hybrid sports car, due in 2014) at $130,000, on par with rivals like the $109,000 Tesla Roadster. Click here for full details on BMW’s electric plans.

Mercedes-Benz Surpasses BMW in U.S. Luxury Auto Sales in October
Business Week reports that Mercedes-Benz sold more luxury cars than BMW in the U.S. last month, bolstered by a new sporty C-Class model. Mercedes-Benz’s U.S. deliveries jumped 23 percent to 22,637, while the BMW brand’s sales rose 13 percent to 21,873. BMW, based in Munich, kept the lead for the year with 199,552 vehicles. BMW increased incentives by 35 percent per vehicle last month, while Mercedes-Benz’s discounts fell by 15 percent and discounts on Toyota Motor Corp.’s Lexus models declined 12 percent, according to TrueCar.com, a website that tracks automotive sales. Mercedes-Benz’s October sales were boosted by an 88 percent gain in deliveries of the top-selling C-Class. U.S. dealers sold 192,695 Mercedes-Benz vehicles in the first 10 months of the year. Lexus sales last month tumbled 14 percent to 18,092. It has been the top- selling luxury auto brand in the U.S. on an annual basis for the past 11 years. Its lead over BMW narrowed to 9,216 last year, less than half the 19,473 gap in 2009. Mercedes finished in third place last year. For a full report of October sales figures for the U.S. international nameplate auto industry, check out AIADA’s Market Watch sales report. Read more on Mercedes-Benz’s October finish at Business Week by clicking here.

Electric Cars Attract Shoppers to Showrooms
Electric vehicles are giving automakers a boost – in marketing appeal. Although sales haven't exactly been electrifying, The Detroit Free Press reports that the vehicles are helping auto companies draw more shoppers to their showrooms, something that would not have happened without the curiosity over the new autos. "There is such a halo effect," said Oliver Hazimeh, an automotive industry consultant at PriceWaterhouseCoopers' PRTM Management Consulting. "These cars appeal to the cool tech-savvy consumer segment." Just having those vehicles in the showroom can translate into sales of other models, Hazimeh said. Shoppers come in to check out the electric vehicles but then drive off with something else if they find they can't afford the premium for the new technology. Electric vehicles also are helping Chevrolet, which makes the Volt plug-in electric sedan, and Nissan, manufacturer of the all-electric Leaf, win customers from other brands, according to an analysis of initial sales data by auto information company R.L. Polk. About 90 percent of Leaf buyers didn't own a Nissan previously, according to Polk data. That's much better than Nissan's average conquest rate of 52 percent. For more on the impact of electric vehicles on car shopping numbers, click here.

Nissan Increases Full-Year Profit Forecast
According to Auto Remarketing, Nissan’s chief operating officer raised the automaker’s full-year forecast on Wednesday. Though Toshiyuki Shiga took a cautionary tone, Nissan revised up its full-year forecast to net income to $3.63 billion, based on average exchange rates of 80 yen to the dollar, and 110 yen to the euro, for the second half of the year. "As we look forward to the second half of this fiscal year, we remain confident in Nissan’s ability to deliver improved retail volumes and solid revenues despite challenging market conditions," Nissan’s COO said. “We will deliver significant profits reflecting continued operational momentum and financial discipline, although the impact of the strong yen will continue to impact our full-year fiscal 2011 forecasts." For its part, Nissan North America announced another record for October sales, up 22.1-percent on a year-over-year basis, to more than 75,000 units. "Nissan has once again delivered strong first-half earnings and healthy profit margins, reflecting the innovation and consumer appeal of our vehicles in all markets around the world," said Carlos Ghosn, Nissan president and chief executive officer. In the July-to-September second quarter, Nissan's net income was 98.4 billion yen (U.S. $1.26 billion, euro 0.89 billion). For more on Nissan’s sales success, click here.

Don’t Let Your Life’s Work Go up in Smoke
Something strange seems to be happening from a property loss standpoint, and AIADA’s Affinity Partner, Federated Insurance, wants business owners to be aware and vigilant about their property protection plans. During the first six months of 2011, eight Federated insured business owners suffered fire losses in excess of $1 million! It is highly unusual to have so many fires of this magnitude in such a short period of time. Four fire loss exposures were identified. Click here to find out the common causes. In addition, the containment and cleanup of pollutants running off the site from fighting the fire can be very costly. So why is this happening? In each case, human error and indifference toward basic fire prevention ultimately led to a business closure due to fire. Some experts suggest that an underlying cause could be the lack of basic maintenance due to current economic conditions. This appears to be the case when equipment has been improperly installed and used despite manufacturers’ warnings. Or when temporary electrical wiring is strung rather than having a licensed electrician make a permanent installation that meets the code. Click here to download a fire prevention checklist for your dealership or visit www.FederatedInsurance.com to learn more.

Around the Web 
Car Bargains Will  Likely  Be Harder to Find [The Car Connection]
Top Family Cars [MSN Autos]
Automakers Try to Extract Sales from a Virtual World [Wheels]
SEMA Helps Put Dream Cars on Road [The Detroit News]