November 8, 2011

Mitsubishi Weighs Evo Hybrid
Mitsubishi is working on a green overhaul of its turbocharged all-wheel-drive Lancer Evolution so the gas-guzzling sedan won't go extinct, reports Automotive News. The new vision for the performance car is an electric-gasoline hybrid with in-wheel motors, Mitsubishi Motors Corp. President Osamu Masuko says. Mitsubishi wants to preserve the brand equity it has established for performance cars and all-wheel-drive vehicles. But the Evo needs to be in step with the company's effort to rebrand itself as a global leader in electric and plug-in hybrid vehicles. "I don't think it's a good idea to introduce the next generation of Lancer Evolution that is similar to what we have today," Masuko said in a recent interview. "But if we think of hybrids with in-wheel electric motors, then there could be the possibility of a Lancer Evolution with an in-wheel motor," he said. He went on to say that Mitsubishi developed a prototype Lancer Evolution electric vehicle with in-wheel motors in 2005, but the car was limited by the battery's charging time and driving range. He concluded: "I don't know if it's going to be a plug-in or a hybrid, but it's not too far in the future." Read more about Mitsubishi and its plans for an Evo hybrid here.

Toyota Quarterly Profit Drops 18.5%
Toyota said its quarterly profit slid 18.5 percent to $1 billion on plunging sales caused by parts shortages from the tsunami disaster in northeastern Japan and warned it faces a new challenge from flooding in Thailand. The Detroit Free Press reports that Toyota sales plunged in the key markets of Japan and North America, but the automaker says it has made up for some of the losses by strong sales in Asia. Toyota's quarterly sales fell nearly 5 percent from a year earlier to $58.7 billion. The Thai floods, which began in July and now threaten central Bangkok, are compounding the production damage caused by March’s earthquake and tsunami in Japan. It is the Southeast Asian base for several automakers. Toyota said production cuts in Japan, which began last month, will continue through Nov. 18. The company is also being battered by the surging yen; it counted on the dollar costing 86 yen last year, but is now seeing it slip to 78 yen. Toyota President Akio Toyoda said earlier this week that the strong yen was reaching levels "far beyond what is tolerable," threatening to make it necessary to move production out of Japan. For the latest on Toyota’s profit levels, click here.

The Top Five Best Selling Vehicles to Ever Grace Planet Earth
Think about this for a second. The world welcomed its seven billionth human last week, just 12 short years after surpassing the six billion mark. With the world’s population growing at an exponential rate, natural resources like food and energy are expected to become strained. That also translates to a myriad of people who need transportation whether it’s personal or public. When the internal combustion engine was first installed into a vehicle by German engine and car designer Karl Benz way back in 1885, there were less than 1000 gas-powered vehicles on the road. Fast forward to the current day and there are around 750 million gas-powered vehicles in the world. It’s been speculated that if the current trend continues, that number will double over the next 30 years. In honor of the seven billionth human and every other person on earth, Automotive.com is featuring a list of the top five best selling vehicles still in production today. The Honda Civic takes the fifth spot with the Volkswagen Beetle (number four), Volkswagen Golf (number three), and Ford F-Series pickup (number two) following suit. But the best-selling car of all time is the Toyota Corolla. Check out the entire rundown of the best selling vehicles here.

Keeping High-Mileage Customers in the Long Run
As consumers hold on to their vehicles longer in the sluggish economy, some dealership service departments are competing aggressively with aftermarket shops. Many consumers are looking for inexpensive used vehicles to stay within their budget. Or they want a low-cost second car for another family member. According to Automotive News, dealers say they need to offset the erosion in warranty business that has occurred as new vehicles have improved. So to keep their shops busy and to retain high-mileage customers, some dealers' service departments are competing aggressively with aftermarket shops. Since the launch of its Value Autos line, Lithia Motors has seen an influx of older vehicles in its shops. Now about 6 percent of the vehicles Lithia services are at least nine years old, up from virtually nothing a few years ago. Lithia and other dealers promote prepaid maintenance programs to drive these customers back to the shop. To build volume, they use inexpensive oil changes and tires as loss-leaders. Brickell Honda in Miami advertises the "Brickell Motors 100K Mile Club" on its Web site. The club entitles customers with vehicles that have more than 100,000 miles to a 20 percent discount on parts and service. Click here for more on dealer strategies to keep their high-mileage customer base.

October Advanced-Drive Sales Still Slow
October advanced-drive vehicle sales remained substantially below year-earlier figures as record sales of the Chevrolet Volt plug-in hybrid were more than offset by plunging sales of Honda and Ford hybrid vehicles. Edmunds Auto Observer reports that sales did jump from the previous month to their highest level in six months as vehicle inventories continued to climb from mid-year lows, but with gas prices on a steady decline since May and a U.S. economy that remains shaky, fewer people were willing to pay the price premium for a hybrid vehicle than they were in October 2010. Not even the availability of nine advanced-drive models that weren't available to the American public a year ago helped, in part because Japanese automakers such as Honda continued to be hamstrung by low inventory levels stemming from the earthquake and tsunami that struck Japan in March. Automakers sold 21,394 advanced-drive vehicles in October, down from 24,181 a year earlier. That 12 percent drop contrasts with a 7.4 percent increase in sales of conventionally powered cars and light trucks in October. Click here to check out the rest of Edmunds Auto Observer’s entire break down of advanced-drive sales by automaker.

Merchant Warehouse to Provide AIADA Members with Award-winning Payment Processing Solutions and Service
AIADA announced last week the addition of its newest Affinity Partner: Merchant Warehouse. Merchant Warehouse has a long history as an A+ Rated member with the Better Business Bureau and has been rated number one by Credit Card Processing Review. They will offer dealers secure processing for all forms of electronic payments including credit, debit, EBT, rewards and gift cards, and checks. “We are extremely excited about our partnership with AIADA. I believe there is a real synergy between both our mission and theirs, with our ability to provide a credit card processing solution that assures their membership the lowest possible costs, in addition to the in-house resources needed to offer an unparalleled customer service experience,” stated Scott Zdanis, Co-CEO of Merchant Warehouse. Founded in 1998, Merchant Warehouse now has over 100,000 merchants and continues to set the standard for price, technology, customer service, and integrity within the payments industry. To learn more about what Merchant Warehouse can do for your dealership, contact Daniel Rowe, AIADA Channel Manager for Merchant Warehouse at (800) 795-6073 or drowe@merchantwarehouse.com. Click here to learn more about Merchant Warehouse.

Around the Web 
Updates for 2013 Nissan GT-R Announced [U.S. News & World Report]
Honda's Newest Robot [DriveOn]
Cop Car of the Future [CNN Money]
The Hidden Toll of Traffic Jams [WSJ]