AIADA Chairman Russ Darrow writes that there were times when it seemed 2009 might never end. Between two wars and a crippling recession, most Americans can probably say the same. Nevertheless, here we are at the end of November, and tomorrow is already Thanksgiving. It's a time to acknowledge all that we have been blessed with: our families, our businesses, our communities, and our country. This year, we dealers have a lot to give thanks for. We are thankful for our inventory, for manufacturers who believed in us, for credit that came through at the last minute, for Cash for Clunkers, and for every other little thing that stood between us and disaster this year. We are even thankful for years like 2009, which hone our skills as businessmen and women and provide us with the perspective we sometimes lack. On a personal note, I want to take this opportunity to thank you. Thank you for your involvement in AIADA, thank you for joining me in defending the industry that has given us so much, and thank you for reading these weekly letters - whether you agree with me or not! Stay safe this long holiday weekend, and be sure to take a moment to give thanks. Click here to read Darrow's entire letter to members on the things America's international auto dealers have to give thanks for this year.
Toyota said Wednesday it will replace accelerator pedals on 3.8 million recalled vehicles in the United States to address problems with the pedals becoming jammed in the floor mat. As a temporary step, Toyota will have dealers shorten the length of the gas pedals beginning in January while the company develops replacement pedals for their vehicles, the Transportation Department and Toyota said. According to MSNBC, new pedals will be available beginning in April, and some vehicles will have brake override systems installed as a precaution. Toyota, the world's largest automaker, announced the massive recall in late September and told owners to remove the driver's side floor mats to prevent the gas pedal from potentially becoming jammed. Popular vehicles such as the Toyota Camry, the top-selling passenger car in America, and the Toyota Prius, the best-selling gas-electric hybrid, are part of the recall. It includes the 2007-10 model year Camry, 2005-10 Toyota Avalon, 2004-09 Prius, 2005-10 Toyota Tacoma, 2007-10 Toyota Tundra, 2007-10 Lexus ES350, and 2006-10 Lexus IS250/350. On Tuesday, Toyota announced a recall of 110,000 Tundra trucks from the 2000-03 model years to address excessive rust on the vehicle's frame. For more information, owners can contact Toyota at 800-331-4331 or the NHTSA hot line at 888-327-4236. Click here for more on Toyota's plans to replace defective gas pedals.
Koenigsegg Group AB said Tuesday it was backing out of a deal regarding its planned purchase of Saab, citing a series of costly delays. The agreement with Koenigsegg was based on financial backing from the Swedish government, but in the end, taking on Saab proved to be too costly for a boutique car maker with no high-volume manufacturing experience. According to the Wall Street Journal, many industry observers say the emergence of another buyer for the money-losing company is unlikely amid the car business's historic downturn. Still, Saab on Tuesday received at least one expression of interest from a potential purchaser, according to one inside source. The surprise collapse of the Saab deal means GM and its newly formed board of directors are faced with yet another tough decision on the company's global product portfolio. In recent months, the board approved, then ultimately reversed, Chief Executive Frederick "Fritz" Henderson's plan to sell majority control of GM's Germany-based Opel unit. The 13-member board, which includes Henderson, will talk about Saab's future at a previously scheduled meeting next week, said people familiar with the situation. Click here for more on GM's difficulty in selling its Saab brand.
The American auto market was one of the hardest hit by the global downturn - and international auto makers that relied on U.S. sales were sucked into the slump. However, according to the Detroit News, many benefited from the downturn. While Hyundai thrived by addressing consumers' concerns in its smart marketing campaigns, Japan's Toyota stumbled after an aggressive expansion left it saddled with idle capacity. Volkswagen's relatively small presence in the U.S. market proved to be a positive. When the U.S. market contracted by a third, only a few tens of thousands of vehicles were shaved off the German auto maker's sales rolls, barely denting Europe's biggest carmaker. Its plan to surpass Toyota by 2018 still seems bold but less far-fetched. Honda strode through the recession without suffering much damage, benefiting from a shift to fuel-efficient vehicles and brands that hold their value. Nissan is investing in the future and plans to be among the first to market zero-emission electric cars. George Magliano, an auto analyst with IHS Global Insight, sums it up when he says, "Competition is going to be unbelievably tough . . . This is a tough business, and it's going to get worse." For more on how the U.S. auto market has impacted international auto makers, click here.
If the proof of the pudding is in the eating, to an automaker the proof of its products is meant to be in extreme testing. Over millions of miles in the most extreme conditions, car manufacturers test their wares prior to selling them to you. AOL Autos is featuring an inside look at that process. That's why you'll see pre-production Bugatti Veyrons doing rooster tails in Sweden, Bentleys running through entire tanks of gas at 185 mph in South Africa, and Aston Martins emerging from a dust storm in Kuwait. For instance, before the latest Mercedes C-Class was introduced in 2007, it was submitted to 31,000 miles at full throttle, 15,500 miles of pulling a 2-ton trailer, 3,700 miles on the Nurburgring, and engine and climate control system testing in South Africa, Arizona and Texas, Scandinavia, and Japan. Nevertheless, while there are national regulations for vehicle safety, emissions, and even lighting, there are no federal standards for automobile capabilities in extreme conditions. That's because, for as much work as the NHTSA and carmakers invest to make sure the products will keep going and going and going, they know that there is just one person who can ultimately make the drive to hell and back: you. Click here for more on what auto makers do to test vehicles before sending them to the consumer.
AIADA wishes you a safe and happy Thanksgiving. FirstUp will return on Monday, November 30.
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