November 4, 2011

Toyota Extends Output Halt, Reduction to Next Week on Thai Floods
Toyota Motor Corp. said on Friday it would keep its three Thai factories suspended and output reduced in Japan next week, while also cutting production in North America, South Africa, and some Asian markets due to the shortage of parts from flooded Thai suppliers. Automotive News reports that the move was widely expected after Nissan Motor Co. and Honda Motor Co. said the impact from the floods would last at least another week for Nissan and months for Honda, whose car plant is under water. Thailand's worst floods in 50 years have affected hundreds of manufacturers and cut off the supply of about 100 components for Toyota, Thailand's top automaker with a production capacity of 650,000 vehicles a year at its three factories there. Toyota said plans beyond Nov. 14 will be determined as the situation develops. Mazda Motor Corp., meanwhile, said it had secured replacement parts to enable a restart of production of passenger vehicles at its Thai joint venture plant with Ford Motor Co on Nov. 14, first on one shift only. From Nov. 21, work will return to normal with both shifts. For details on the impact of Thai flooding on Toyota’s production, click here.

NHTSA Releases Car Theft Lists
The Audi S8 topped the government's list of highest theft rates among new cars in 2009. And the Toyota Camry, which was 2009's best-selling car, was the most-stolen new car that year. According to The Detroit News, the National Highway Traffic Safety Administration tracked the theft rate among all new 2009 passenger vehicles stolen in 2009, and just released its report. The Audi S8 had the highest theft rate: 8.81 thefts per 1,000 vehicles produced. Just two out of 227 cars produced were stolen. Ford Motor Co.'s Shelby GT Mustang had the second highest theft rate with 8.61 vehicles per 1,000 stolen; five out of 581 total cars were stolen. Rounding out the top five: BMW M5 (7.58 per 1,000), Dodge Charger (6.47 per 1,000), and Honda S2000 (5.60 per 1,000). In sixth was the Mitsubishi Galant (5.11), followed by the Chrysler 300 (4.57), Infiniti M35/M45 (4.32), Cadillac STS (4.28), and Mercedes CL-Class (3.91). The report doesn't track light trucks, which include most SUVs, pickups, and minivans. However, the Cadillac Escalade has typically topped the overall list of most-stolen vehicles, according to surveys. For more on the cars preferred most by thieves in 2009, click here.

Lexus Starts 'December to Remember' Deals a Month Early
Lexus' annual, and memorable, red-bow-themed sales promotion, a "December to Remember," has begun earlier this year. The luxury brand is offering financing and lease specials available now on various 2011 and 2012 models. Inventory recoveries after Japan's earthquake disruptions have prompted the brand to move the program ahead of its usual Thanksgiving kickoff, Lexus chief Mark Templin told reporters Thursday. This year's December to Remember began Tuesday and ends Jan. 3. Specials vary by region. Lexus spokesman Bill Kwong said marketing for the program would launch Nov. 18. According to USA Today, the automaker needs as much traction as it can get. Sales were down 14.2 percent for October compared with a year ago, and sales remain off 16.2 percent for the year. While inventories are low, they are rebounding. As of Oct. 1, the brand had just 29 days' supply – a reflection of how long it would take dealers to sell their current cars at a normal selling rate. However, the supply is up from 25 days in September. Parent brand Toyota's “Toyotathon” event won't start until its usual Thanksgiving week time frame. Read more on the early start of the Lexus “December to Remember” sales event here.

Bustling SEMA Show Points to Racy OEM Trend
The 2011 Specialty Equipment Market Association (SEMA) show in Las Vegas was hopping again this year. According to Edmunds Auto Observer, the annual homage to all-things aftermarket drew crowds that suggest the auto-tuning industry is definitely coming back to life. The SEMA show has expressly outgrown its tuner car and aftermarket roots, and with a host of OEMs now participating each year, can be easily counted among the most significant auto shows on U.S. soil. Chrysler, Ford, and Chevy all trotted out new, V8 drag-racing machines and both Honda and Ford showcased their upcoming compact-car, track-only offerings. Ford’s Focus ST-R will become available soon for track-junkies, as will Honda’s HPD body-in-white Civic racing platform. Most attention was lavished on the upcoming B-Spec racing series, with Kia (Rio), Ford (Fiesta), and Mazda (Mazda2) displaying upcoming entries – with both Honda (Fit) and Chevy (Sonic) to join the fray. The notion of creating a new generation of enthusiasts via less expensive, ready-to-race cars seems logical and can also appease these brands’ diehard speed freaks with no chance of dinging production-car Environmental Protection Agency-rated fuel-economy numbers. For details on automaker offerings at this year’s SEMA show, click here.

Top 10 New-Car Deals for November
Discounts are fast becoming available on just-arrived 2012 cars and trucks as automakers want to jump-start sales for the new model year. The bargains are even more generous on closeout 2011s for those who are willing to settle for whatever color and feature combinations might be remaining on dealer’s lots. Unfortunately, buyers won’t find many discounts this month on top-selling small cars that have become fashionable among motorists looking to downsize their rides and save money at the gas pump. To that end, the best deals Forbes could locate among 2012 compact and subcompact cars were cut-rate financing deals on the Chevrolet Cruze compact sedan and the new subcompact Chevy Sonic. Noteworthy discounts on outgoing 2011 models include $1,000 cash-back on a Nissan Sentra compact sedan and $500 on a Ford Fiesta subcompact. As a testament to healthier automotive sales in general, big money incentives, even among what are now last year’s models, seem to be shrinking. International car buyers will find the best deals this month on the 2011 versions of the flagship sedans from Nissan’s luxury division, the Infiniti M37 and M56. Click here for a photo gallery of the 10 best new car deals this month. To read more on the list, click here.

Free Webinar – Before You Build, Renovate, or Buy: Dealership Construction & Real Estate Investment
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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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