December 20, 2011

VW Plans Biggest Tech Overhaul in Nearly 2 Decades to Drive Profits
Volkswagen AG will kick off its biggest technology overhaul in almost two decades when Europe's largest carmaker revamps the Audi A3 next year. According to Automotive News, the compact Audi will mark the first of more than 40 models that will use a set of standardized components such as axles, steering columns, and chassis. Sharing parts across brands, such as VW, Skoda, and Seat, may lower costs by 5 billion euros ($6.5 billion) a year. The technology will help Volkswagen's plan to become the world's biggest and most profitable automaker by 2018, surpassing Toyota and General Motors Co. The manufacturer estimates it will lower production costs 20 percent and cut assembly times 30 percent. VW's approach is more aggressive than the parts sharing that has become standard in the auto industry. The technology will provide the basis for VW models stretching from the Polo subcompact to the mid-sized Passat, representing the bulk of the automaker's sales. Volkswagen is not planning to close any factories or fire workers and instead said it will save money by making the process of building cars simpler and faster. For more on how VW plans to become the world’s biggest automaker, click here.

Safest Small Cars for Under $20,000
While record low fatality rates indicate that today’s cars are safer than ever, the latest crash test results confirm that some models still do a better job than others at protecting their occupants in a serious collision. Compacts and subcompacts are becoming increasingly popular among cash-strapped buyers and empty nesters looking to downsize their rides; J.D. Power and Associates says they’re on pace to outsell midsize entries for the first time in nearly two decades. Fortunately, reports Forbes, those shopping for a small car for themselves or younger members of the family will find a burgeoning selection of models from which to choose that are rated as “Top Safety Picks” by the Insurance Institute for Highway Safety (IIHS). To qualify, a car must garner top scores across the board for performance in front, side, rollover and rear-end crashes based on ratings determined by the IIHS’ evaluations. Vehicles are classified in each category on a basis of “good,” “acceptable,” “marginal,” or “poor” performance. Click here to see the list Forbes has compiled, based on IIHS statistics, of the safest small cars under $20,000. For complete analysis, click here.

Saab Loyalists Lament Passing of Iconic Brand
Saab fans are the type of people who take photos of themselves with their quirky cars, or buy two or three models just for the heck of it. So, reports MSNBC, it was no surprise that when Saab filed for bankruptcy Monday, Saab loyalists took to the internet. 60-year old Saab saw its heyday in the 1980s but never lost its allure among a certain quirky-seeking intellectual set. That devotion fueled much of the outpouring today, surmised Sasha Strauss, managing director of brand strategy firm Innovation Protocol and adjunct professor at USC's Annenberg School for Communication. Many people get attached to their cars, and Saab in particular inspired pride for many auto enthusiasts, he said. “I do believe this marks the end of what was one of the most important car companies in history,” he said. Monday's announcement by Saab owner Swedish Automobile that it was filing for bankruptcy came after many months of rumored death for the troubled car company. Arrows have been pointed at GM because the automaker rejected a Chinese company’s bid to buy Saab and give it a new lease on life. Read more about the reaction of Saab loyalists to the brand’s bankruptcy filing here.

Audi Races to Catch BMW
The Wall Street Journal reports that Audi AG is racing to close the sales gap with BMW AG, the world's largest luxury car maker, and it may get there faster than expected. Audi is already on track to overtake Daimler AG's Mercedes-Benz brand as the world's second-best selling premium marque after BMW by selling 1.3 million cars this year, and expects to grow faster than the overall car market in 2012 as prices hold firm despite slowing economic growth worldwide, according to Chief Executive Rupert Stadler. "We're planning for another surge of growth next year," Mr. Stadler said in a recent interview. "We're on track to reach the 1.5 million (unit) sales mark a bit earlier than planned," he said, after the company previously said it wanted to reach the 1.5-million threshold in 2015. The company reported a 19 percent rise in sales volumes in the first 11 months of this year to 1.19 million units, and expects overall auto-sector sales volumes to rise 4 percent in 2012. Closing the sales gap to BMW and Mercedes-Benz in the U.S. is a cornerstone of Audi's expansion plans. For coverage of Audi’s race to catch BMW, click here.

Edmunds: Automakers Likely to Achieve 13.6M New Sales Next Year
After a solid year in 2011, it appears the auto market will make even more progress next year, according to Auto Remarketing. Even with what could be 12.8 million new-vehicle sales this year, there is still a hearty stock of pent-up demand remaining, as well as a stronger selection and improved credit conditions, leading Edmunds.com to project that 2012 sales will reach an estimated 13.6 million. “With annual sales still far below the level achieved prior to the last recession, there’s plenty of indication that pent-up demand is far from spent,” stated Lacey Plache, chief economist at Edmunds. “Improved selection and loosening credit conditions are helping to entice the millions of buyers that are waiting to jump back into the market.” The firm expects that the first few months of the year – specifically January through April – will likely be the remnants of the ongoing “mini-bubble” in the car market. Then, seasonality will come into play, Edmunds predicts. November and December of 2012 are likely to be pushed by year-end sales events, which have led to robust sales for these two months in recent years. For more on Edmunds’ predictions for 2012 calendar year auto sales, click here.

Shell Lubricants’ go.drive™ Entertains and Educates Dealership Service Customers
Thousands of dealerships nationwide have received go.drive™, a magazine published by SHREC Communications exclusively for Shell Lubricants, designed to entertain and educate auto dealer service customers. The magazine, which aims to help drivers get the most out of their visit to a dealership service department, features content that is fun, easy to digest and informative. By educating customers about issues pertaining to their vehicles’ service, go.drive™ can actually help dealership service departments sell more high-profit items. Shell Lubricants, an AIADA Affinity Partner, is dedicated to helping its dealer customers grow their business through consumer trust and loyalty. The Winter 2011 issue features articles about safe driving in winter weather, motor oil quality and must-have new car features, to name a few. View the online version here. Service and sales managers can order additional quantities for their customers to support improving relationships. How can you fully leverage this program? Contact your Shell representative or Don Moser, North American OEM/Automotive Dealer Group Marketing Manager at (713) 546-8120 or Don.Moser@shell.com. If you have any questions about the product – or to take advantage of the publication as a direct mail campaign combining go.drive™ with an in-store offer, contact go.drive™ support at (800) 331-3713.

Around the Web 
The 2012 Power List [Motor Trend]
Audi R8 Facelift Coming in 2012 [Motor Authority]
The 2012 Deals of Christmas [MSN Autos]
Nissan Releases Teaser Image of New Pathfinder Concept [DriveOn]