December 9, 2011

Toyota Lowers Annual Profit Forecast 54% After Thai Floods
Toyota Motor Corp. cut its full-year profit forecast 54 percent after Thailand's worst floods in almost 70 years disrupted output of Camry and Prius vehicles. Net income will fall 56 percent to 180 billion yen ($2.3 billion) in the 12 months ending March 31, the carmaker said in a statement today. According to Automotive News, that's less than half the profit projected by the average of 21 analyst estimates compiled by Bloomberg. The company also cut predictions for operating profit and sales. Toyota said the Thai floods will cut earnings by 120 billion yen, more than 40 percent of the estimated losses from Japan's earthquake in March. Component shortages caused by the floods disrupted production for Japanese automobile makers worldwide, compounding the challenge from the record quake and the yen's surge. Toyota delayed the new projections by a month because of the floods. Honda Motor Co., which also pushed back its forecasts because of Thailand, aims to disclose them by the end of January, Chief Financial Officer Fumihiko Ike said last week. For details on Toyota’s annual profit forecast in the wake of flooding in Thailand, click here.

Reality Show Tackles Struggling Auto Dealers
There are a lot of badly run car dealerships out there, according to Tom Stuker, the self-proclaimed dealer "doctor." Stuker is a consultant from Bloomingdale, Ill., who travels around the country helping dealers improve their business. According to The Detroit News, he has just wrapped up filming a series for Spike TV called "Car Lot Cowboy" that will debut early next year. In a cross between "Supernanny" and "Kitchen Nightmares," the reality show follows Stuker and his team as they work to turn around sales at beleaguered dealerships across the country, dishing out some tough love and advice. Stuker said the date for the premiere is still being determined. The episodes shot to-date feature both new and used dealerships in New Jersey, Florida, New Orleans, South Carolina, and California. With his signature black cowboy hat and boots, Stuker said he has helped about 15,000 dealerships in his career. He has seen common problems boil down to poor hiring practices that fail to get strong sales staff; limited training including when sales staff without business skills is promoted to management; and accountability. Click here for more on a new reality TV show that focuses on struggling auto dealerships.

New Distracted Driving Measure Shows Alcohol is Still the Bigger Threat
The safety threat posed by drivers who text and talk behind the wheel generates a lot of heat, but drinking and driving remains the bigger problem, reports The Wall Street Journal. Distracted driving accounted for about nine percent of all highway fatalities in the U.S. in 2010, while 31 percent of deaths were linked to alcohol, according to a new measure of distracted driving deaths released as part of a U.S. Transportation Department report Thursday. The report, which updates fatality figures released earlier in the year, confirmed earlier estimates that overall highway deaths fell in 2010 to the lowest level in six decades, even as Americans drove more. The death toll from all vehicle crashes fell 2.9 percent to 32,885 people, or a fatality rate of 1.1 deaths per 100 million vehicle miles traveled. In a separate report released Friday, the DOT said it found that its surveys found about 5 percent of motorists drove with cell phones held to their ears – which is illegal in some states – while 0.9 percent were observed “manipulating” a handheld device, a proxy for texting. Click here for AIADA’s interview with DOT Secretary Ray LaHood on the dangers of distracted driving. For more on driver safety, click here.

Gordon Ramsay, Bette Midler, and a Sale Help Acura's Buzz Rise in November
According to Forbes, while Buzz scores for the Luxury Car Sector as a whole decreased during the month of November among prospective new car buyers, Acura saw a distinct lift in Buzz during the middle of the month. The score comes from YouGov BrandIndex’s Buzz score, which asks respondents: “If you’ve heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?” The jump in Acura’s consumer perception was probably aided by the start of the “Season of Reason” Sales Event and the release of two ads to promote it, one featuring chef and television personality Gordon Ramsay and the other with singer and actress Bette Midler. This “Season of Reason” Sales Event and the accompanying ads seem to have had a positive effect on Acura’s consumer perception. On November 11, several days before the ad was released, Acura’s Buzz score among prospective new car buyers stood at 6, while the average Buzz for Luxury Car Sector as a whole was 13. One week later, Acura’s Buzz had jumped to 17, while that of Luxury Car Sector had sunk to 9. Read more about Acura’s Buzz score here.

Most Popular Car Theft Holiday Arrives Soon
Though the holiday season may be in full swing, it doesn’t mean vehicle thieves are at rest. In fact, reports Auto Remarketing, a day of celebration that’s just around the corner is proving to be the most theft-prone holiday of them all, according to the National Insurance Crime Bureau. Based on the number of vehicle thefts reported to the National Crime Information Center for each of the 11 holidays examined by NCIB, it was discovered that the busiest holiday in 2010 for car snatching was New Year’s Day. There were 2,347 car thefts reported that day, more than 200 cars stronger than the No. 2 holiday (Memorial Day; 2,122 thefts). “While Americans are enjoying the holidays and most have time off from work, we need to remember that holidays are just another day at the shop for vehicle thieves,” NICB stressed. New Year’s Eve also ranked high on the list (No. 5) with 1,986 thefts, followed by Christmas Eve (1,928) in sixth. Christmas Day ranked 11th with 1,361 stolen cars. “The NICB reminds drivers to be alert during the busy holiday season. That includes parking in well-lit areas, keeping packages in the trunk or out of sight and making sure your vehicle is locked while it's parked,” the bureau stressed. For more on the worst days of the year for auto theft, click here.

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This BMW 1M Makes 550 hp Thanks to American Muscle [Autoblog]
Get Your Denim Dashed Ferrari While Supplies Last [Motoramic]