November 18, 2011

Toyota Mulls Deeper Supplier, Dealer Ties to Counter Strong Yen
Toyota Motor Corp. may strengthen ties with its suppliers and dealers to offset the stronger yen, but it is unlikely to buy companies outright, Toyota President Akio Toyoda said on Thursday. "Perhaps we would like to deepen alliances" with suppliers and dealers, Toyoda said during the opening of a Toyota plant in Mississippi, where Toyota will build Corolla cars. According to Automotive News, the rise in the yen, which hit a record high against the U.S. dollar in late October, has diminished the profits of companies like Toyota that export products built in Japan. But the yen's surge has also opened opportunities for Japanese companies to seek growth and expand by buying overseas assets at a lower cost. Still, Toyota is unlikely to take this route, Toyota Motor Sales President Jim Lentz said. Instead, Toyota is more likely to enter partnerships similar to one it entered earlier this year with Ford Motor Co. to build hybrid trucks and SUVs, and develop phone, navigation, and entertainment systems, he said. That deal will allow Toyota to tackle an area of vehicle technology where it has lagged. For more on how Toyota says it intends to deal with the rising yen, click here.

2012 Honda Civic Natural Gas Wins Green Car of the Year
The 2012 Honda Civic Natural Gas was named the Green Car of the Year on Thursday at a ceremony at the Los Angeles Auto Show. The Detroit News reports that the Civic beat out a diverse field of finalists: the Ford Focus Electric, Mitsubishi i, Toyota Prius V, and VW Passat with a diesel engine. The finalists, in conjunction with new models and concept cars shown by other automakers, represent virtually the full spectrum of green technology available on the market today. Michael Accavitti, vice president of marketing for American Honda Motor Co., said of the honor, "This, to Honda, is everything." Rob Cogan, editor of the Green Car Journal, said, "There is no other vehicle like the Civic Natural Gas on American highways, and this recognition has been a long time coming for Honda." The Civic Natural Gas debuted in 1998 but was largely a fleet vehicle. A few years ago, Honda started selling some to retail customers in four states. But with the redesigned 2012 model that went on sale last month, the automaker is expanding distribution to 200 dealers in 36 states. For more on the 2012 Green Car of the Year, the Honda Civic Natural Gas, click here.

Suzuki Pressures Volkswagen to Dissolve Alliance
According to The Wall Street Journal, a dispute over the fate of the alliance between Volkswagen AG and Suzuki Motor Corp. is poised to enter more than a year of arbitration after the Japanese car maker said today it will begin proceedings unless Volkswagen sells back its nearly 20 percent stake in Suzuki. Reflecting its frustration with the slow progress of discussions, Suzuki said Friday that VW hasn't responded to its request for top-level talks and has terminated its partnership with VW. In response, VW, which owns a 19.89 percent stake in Suzuki, reiterated that it plans to hold on to its investment. The two companies remain at an impasse over the future of their alliance. But the Japanese company said it would seek arbitration if its shares aren't returned. If VW doesn't change its mind, Suzuki will begin arbitration before long in "a neutral country, neither Japan nor Germany," said Yasuhito Harayama, Suzuki's executive vice president. VW acquired the stake in Suzuki at the end of 2009 for roughly €1.7 billion, as it sought to benefit from Suzuki's expertise in the small-car segment, while Suzuki hoped to take advantage of the partner's advanced fuel-efficient technology. For more on the dispute between the two automakers, click here.

DuPont Reveals World's Most Popular Vehicle Colors
If the 2011 DuPont Automotive Color Popularity Report is any indication, it might be a wise idea for dealers to stock several white and silver vehicles on their respective lots. Surpassing longstanding rivals black and gray, DuPont revealed Thursday that white/white pearl joined silver at the top of the world color ranks in this year’s report, thanks to a substantial increase in global popularity. Officials recapped that last year, white/white pearl tied for third with gray in the world color ranks with just 16-percent share. But, reports Auto Remarketing white’s ongoing popularity in North America – combined with a surge in popularity in Europe, China, Korea, South America, and South Africa – helped it increase its position this year to 22 percent globally. Black and gray dropped to third and fourth, respectively, in this year’s report with red and blue strengthening and holding positions in fifth and sixth place. “While white/white pearl has historically been a popular color for vehicles, we’ve seen a bigger shift in its popularity this year than DuPont expected,” explained Nancy Lockhart, DuPont color marketing manager. The report also includes automotive color popularity rankings and regional trends from 11 leading automotive regions of the world. Read more on this year’s most popular vehicle paint colors here.

A Car-by-Car Guide to the 2011 LA Auto Show
The U.S. auto show season got underway this week with the opening of the 2011 Los Angeles International Auto Show. MSNBC reports that there is plenty for just about everyone at the annual event, from a subcompact Honda battery car to the fastest muscle car Detroit has ever built. Small cars are clearly gaining strength but it should be no surprise that, with California the world’s largest luxury car market, there is a disproportionate number of high-line models, from the new Jaguar XKR-S to the seventh-generation Porsche 911. That sports car underscores the significant gains manufacturers are making as they adopt new technologies like direct injection and Auto Stop/Start. Though the new 911 is significantly more powerful it’s also expected to get as much as 15 percent better mileage. Plenty of awards are being handed out. And there’ll be more models falling into that category than ever before, including the Honda Fit EV, the Japanese maker’s first battery-electric vehicle. Audi is staging the North American debut of three new performance models. Hyundai is debuting its Azera sedan, the latest to adopt its “Fluidic Sculpture” design language. For the full run down of models making their debut this week at LA’s Staples Center, 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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2013 Nissan GT-R is More of a Great Thing [Autoblog]
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5 Voices Behind Funny Car Ads [CNN Money]
Mission Impossible Star Unveils BMW Electrics [DriveOn]