December 5, 2011

Honda Plans More Exports From N.A.
According to Automotive News, Honda Motor Co. is looking to grow its North American manufacturing base into a low-cost source of vehicles to be exported globally, as part of its efforts to expand its production footprint outside of Japan. The strong yen is hurting Honda's ability to profitably export vehicles from Japan. "Right now, we are asking the U.S. to take on a lot of our production, and exports as well," said Honda CEO Takanobu Ito. "Already they have been doing some exports to the Middle East, but we are asking them to do more exports around the world." In 2010, Honda exported 32,978 cars from its U.S. plants to more than 20 countries. Currently, Honda's Japanese factories produce about 1.2 million to 1.3 million units annually, of which 300,000 to 350,000 units, or about 25 percent, are exported around the globe. Ito wants to shrink that share to between 10 and 20 percent. "So even while the Japanese market is shrinking, we are going to try to reduce the amount of exports from Japan," Ito said. "We are trying to optimize our volume of exports." Click here for the latest on Honda’s plans to increase exports from its North American manufacturing plants.

VW's Chattanooga Plant Rated Cleanest, Most Efficient in World
Volkswagen AG, like most automakers today, strives to build not only environmentally friendly cars but also environmentally friendly car factories. At its new 1,400-acre site in Chattanooga, Tenn., the German automaker has adopted sophisticated technology as well as simple measures to conserve energy and water. According to The Detroit News, the $1 billion plant was rated Thursday as the cleanest and most energy-efficient car-manufacturing site in the world by the U.S. Green Building Council. It awarded the factory with a platinum Leadership in Energy and Environmental Design (LEED) certification, the only auto manufacturing site to receive that honor. The Green Building Council, based in Washington, D.C., rates structures based on their environmental impact and other criteria such as energy and water consumption, use of raw materials, and recycling rates. Click here for more on VW’s Chattanooga plant at AIADA’s site, www.whatisanamericancar.com. Some of the Chattanooga plant's energy and water conservation measures include constructing an ultra-clean paint shop, estimated to save 50 million gallons of water over 10 years, and installing LED lighting that uses two-thirds less energy. For more on VW’s recognition as the cleanest auto plant in the world, click here.

Does November Surge Set Sales Stage for '12?
November auto sales in the United States posted the best monthly sales rate since the anomalous surge in August, 2009 related to the federal government’s Cash for Clunkers program. According to Edmunds Auto Observer, industry sales rose by 14 percent overall in the month, to about 994,000 units, propelled by broader availability of vehicles to meet American consumers’ “pent-up demand,” some signs of collective economic confidence, and continued moderation in gasoline prices and interest rates. “With consumer confidence making its biggest jump in eight years, we look for the industry to continue its recovery in December and to continue to pick up steam in 2012,” said Bob Carter, Toyota Division general manager. Al Castignetti, vice president of the Nissan Division, said that the fourth quarter would be “the strongest of the calendar year. We think December will be a great month in that final quarter, with all the manufacturer marketing out there and a somewhat stabilized inventory.” Edmunds.com’s Jessica Caldwell cautioned about presuming the hot November pace necessarily would continue. “The sales that are happening this month, and last month, are deferred from earlier in the year,” she said. Read more on what to expect from the auto industry in 2012 here.

For Toyota, Finally, More Cars and Sales
Since May, Japan's Big 2 have been hemorrhaging U.S. sales as they dig out from the Japan earthquake and Thai flooding. Automotive News reports that in November Toyota Motor Sales U.S.A. finally broke the pattern, adding inventory and recording its first sales increase in seven months. With Toyota's return to growth, U.S. light-vehicle sales jumped 14 percent and the market roared to its best monthly selling rate since cash for clunkers in August 2009. As Toyota replenishes dealer stocks and rolls out new models, Toyota brand boss Bob Carter is anticipating more market gains. He announced a $239 lease deal and other incentives on the new-generation Camry, the first spiffs on the 2012 model since it was introduced in September. "I've been waiting to say this for seven months," Carter said. "For the first time since the earthquake and tsunami in Japan disrupted worldwide automotive production, Toyota sales were up last month." Carter said Toyota's November momentum will continue because production is running normally and U.S. dealer inventory rose 30,000 units during the month. The automaker is heavily advertising its annual Toyotathon sales event, which runs from Nov. 1 to Dec. 31 this year, he said. For more on Toyota’s rebound, click here.

Saab in Talks with Youngman and Chinese Bank
According to CBS Money Watch, Swedish Automobile, the owner of Saab, said Monday it is in talks with an unnamed Chinese bank and an auto company about getting them to buy stakes to help the troubled car brand. Swedish Automobile, or Swan, said the negotiations with the bank and Zhejiang Youngman Lotus Automobile Co. include short-term actions to help it pay November wages to Saab's staff and continue reorganization. Swedish Automobile CEO Victor Muller told local news agency TT the bank in question is not Bank of China, but didn't give any more details. The outcome of the discussions is still uncertain and a deal needs the approval of relevant stakeholders, including previous Saab-owner General Motors Co. Saab has been fighting for survival since Muller took over the loss-making brand from GM in 2010 through his Dutch company Spyker Cars, which has since changed names to Swedish Automobile. The company's production has been at a standstill for most of the year, and the car maker entered bankruptcy protection in September. Saab's employees have still not received their November salaries and two labor unions last week filed official requests for the money. Read the latest on Saab’s plight here.

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