December 19, 2011

Saab Files for Bankruptcy in Sweden
The Detroit Free Press reports that Saab Automobile filed for bankruptcy today after attempts by Chinese investors to take over the loss-making brand were blocked by previous owner General Motors. Saab CEO Victor Muller personally handed in the bankruptcy application to a court in southwestern Sweden, ending his two-year struggle to revive the more than six-decades-old car maker. The Vanersborg District Court was expected to approve the application later today. While experts say the company is likely to be chopped up and sold in parts, local officials in the town of Trollhattan, where Saab employs more than 3,000 people, were holding out hope that a new buyer would emerge to salvage the brand. "Our absolute hope is that the bankruptcy administrator will aim for a solution where the company is sold in its entirety," Trollhattan Mayor Paul Akerlund said in a statement. Muller used his luxury sports car maker Spyker Cars to buy Saab from GM in 2010, but the company ran out of money just a year later. To auto enthusiasts, Saab was known for its quirks such as placing the ignition lock between the front seats and becoming the first car to have heated seating in 1971. For the latest on Saab’s financial troubles, click here.

Group 1 Dumps TrueCar to Shield Data
Group 1 Automotive last week ordered all participating stores to cut ties with TrueCar.com, citing concerns over the security of data plumbed from dealers' computer systems by the fast-growing online lead generator. The move came soon after officials from Honda suggested to Group 1 executives at a Honda event last week that they rethink their stores' dealings with TrueCar, said Peter DeLongchamps, Group 1 vice president of manufacturer relations and public affairs. According to Automotive News, TrueCar has been hurt by enforcement of a Honda policy that threatens to withhold marketing dollars if dealers advertise vehicles below invoice price. Many shoppers on TrueCar's Web site are able to secure prices below invoice as dealers bid for the business. TrueCar has lately been a target of criticism among retailers that say the rising influence of internet shopping sites is driving down transaction prices for new vehicles. But Group 1 cited not pricing but potential privacy risks to consumers and to dealerships posed when TrueCar and other vendors gain access to data contained in dealer management system software. TrueCar requires access to verify vehicle sales resulting from the leads it provides. Read more about Group 1 Automotive’s decision to cut ties with TrueCar.com here.

Automakers Reveal Their Gems One Shadowy Photo at a Time
From now until the start of the North American International Auto Show in Detroit on Jan. 9, a flood of half-facts, quarter-panels, and potential buzz-creating pictures will make their way from the carmakers to the media. Carmakers love to tease consumers. It's a holiday tradition. And the media gobbles up every spoonful of new information and publishes it online the instant they get it. According to Scott Burgess at The Detroit News, the Detroit Auto Show is creating excitement with the buzz surrounding some of the vehicles that will debut, such as the Honda NSX, the all-new Ford Fusion, a Lexus concept vehicle, and others. Some photos, and the accompanying news releases, offer production details, engine sizes and power numbers. Others are much more vague with colorful artistic renderings. And some are nothing more than a view of the car's roofline at night – against a black background. All told, there will be more than 40 vehicle debuts at the Detroit show, and no one is going to get to see all of them before the drop cloths are pulled off. For more on the precursors to some of the vehicle debuts taking place at next month’s Detroit Auto Show, click here.

Infiniti Shifts Output From Japan to Fight Yen
Nissan Motor Co., which decided to make its Infiniti JX crossover in the United States to fight the strong and profit-eating yen, will keep moving Infiniti production out of Japan, the brand's global chief says. According to Automotive News, the strategy calls for building Infinitis in Europe and China for the first time and using more imported parts in Japan-made models. Future vehicles being developed for production in Japan will have non-yen content as high as 65 percent, up from around 15 percent today. Andy Palmer, executive vice president in charge of Infiniti, said the shift is necessary to combat the yen's surge to record highs against the dollar. "Clearly, we're working on one strategy," Palmer told Automotive News. "As cars come up for renewal, generally they're being relocated in a function of where the majority of sales are.” The transfer begins with the JX crossover. Production begins in February at Nissan's Smyrna, Tenn., plant, and the car goes on sale in the spring. It will be the first Infiniti made overseas since the QX56 SUV was moved back to Japan from Canton, Miss., early last year. For more on Infiniti’s strategy to combat a rising yen, click here.

The Most Disliked Cars of 2011
2011 has had some notable high-profile flops: American Airlines, Coke's white can, numerous Republican presidential candidates, and the Boston Red Sox. More than a few automakers can add their names to the list. In a year when U.S. car sales staged a modest recovery, a number of nameplates with high expectations wilted in the showroom. CNN Money is featuring ten cars that performed less than hoped for among the auto press and public. Among those on the list is the Fiat 500. Instead of selling 50,000 cars this year, Fiat had moved only 17,444 through November. The Chevy Volt is also noted for its tepid reception. After moving only about 6,200 for the first 11 months of 2011, GM admitted it would fall far short of its goal of selling 10,000 Volts in its first year. The Jaguar XF’s timely departure from the cues of Jag's heritage designs still resulted in a sharp sales drop during its fourth year on the market. In an otherwise strong 2011 for luxury car sales, Edmunds.com calculates the XF suffered a 28 percent falloff. Check out the rest of the vehicles selected by CNN Money as one of the most disliked cars of the year by clicking here.

Around the Web 
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Photos: Electric Powered Rolls-Royce Finishes World Tour [WSJ]