March 10, 2010
Toyota Dealers Outraged Over Use of Taxpayer Dollars on GM Incentives Targeted at Their Customers
On Tuesday, Toyota dealers across the country spoke out against General Motors using taxpayer dollars to fund unfair tactics that undermine their businesses. Last week, General Motors launched a nationwide predatory advertising campaign that uses fear in an attempt to lure customers away from Toyota and Lexus dealers. "Toyota dealers across the country are business owners who stimulate local economies and pay taxes to the government," said Paul Atkinson, President of the Toyota National Dealer Council and owner of Atkinson Toyota in Texas. "It is outrageous that GM is using our taxpayer dollars against us, making me and other Toyota dealers pay to undermine our own businesses. According to the U.S. Department of the Treasury, the U.S. government owns 60 percent of the equity in General Motors. "These incentives fail to take into account that, despite some recent problems, Toyota still makes some of the best cars, trucks and SUVs on the road in America," Atkinson continued. "These low-blow tactics pose a real threat to the citizens of the United States if the government lets these slip by." In recent weeks, Toyota executives wrapped up congressional testimony before the House Energy and Commerce Committee, the House Committee on Oversight and Government Reform, and, most recently, the Senate Committee on Commerce, Science, & Transportation. Click here for more on dealers' outrage at tactics employed by GM at the American taxpayer's expense.
Cash for Clunkers: Better Than We Thought
According to CNNMoney.com, the government's Cash for Clunkers program resulted in a far bigger boost to car sales than was previously estimated, even by the government, according to a new analysis by Maritz Research, an automotive market research company. Maritz estimates that a total of 765,000 new vehicles were sold because of the program. Those cars wouldn't have rolled off dealer lots without the offer, they say. That's more than double the Department of Transportation's estimate of 346,000 sales that wouldn't otherwise have been made. Government records indicate that a total of 677,000 new vehicles were purchased under the program. According to Maritz, 542,000 of those sales were made to people who didn't plan to buy a car otherwise. Additionally, another 223,000 people were lured into dealerships by the program, learned they didn't qualify for the benefit, but purchased a car anyway. "The results provide strong empirical evidence that CARS did not impede future sales," said Maritz vice-president David Fish, in an announcement. "Vehicles were sold to people who don't normally buy them." Maritz surveyed 36,000 people who bought a new car or truck from July to August, 2009, the period when Cash for Clunkers was available. Click here for more from CNNMoney.com on a new study showing the benefits of last year's Cash for Clunkers program.
Toyota Recalling All 2000 to 2003 Tundras
Toyota said on Tuesday it would fix all Tundra pickups sold in the United States for the 2000 to 2003 model years to address a risk that part of tahe truck's frame could corrode, causing spare tires or even the gas tank to drop to the road. In November, Toyota Motor Corp recalled 110,000 Tundras sold in 20 cold-weather states, saying exposure to heavy road salt could cause the corrosion. According to MSNBC, Toyota told its U.S. dealers in a notice on Tuesday that it would expand the recall to Tundras sold in all 50 U.S. states. Reuters reviewed a copy of the notice, which Lyons confirmed had been sent to the company's U.S. dealers. Toyota said the rear cross-member of the frame of the Tundra could corrode in some cases, and that could cause loss of rear brake circuits, making it harder for drivers to stop. In "the worst case," the fuel tank may drop to the ground and could be separated from the vehicle, potentially causing a crash or fire, the company said in its notice to dealers. Click here for more on Toyota's decision to recall its Tundra pickup for corrosion issues.
Chrysler's Future Rests on Global Platforms
According to The Detroit News, under new leadership, Chrysler is beginning to following the industry trend of fewer, larger, more global platforms for its vehicles. The strategy improves quality, allows the cost of engineering to be spread over more vehicles, and allows new cars to be brought to market faster. Chrysler comes late to the strategy, but CEO Sergio Marchionne insists the change must happen fast. He has said a single platform must yield 1 million vehicles to be profitable, and his desire for scale led Fiat to a partnership with Chrysler. Click here for a chart showing consolidation of Chrysler/Fiat platforms. Marchionne was reportedly dismayed by the number of platforms Chrysler was previously using, many of them the basis for relatively low-volume vehicles. To remedy this, future new vehicles for Chrysler and Fiat will come from the kind of big, global platforms successful automakers such as Honda Motor Co., Toyota Motor Corp. and Volkswagen AG are employing. Chrysler's 11 unique car platforms will be condensed into five by 2014. Additionally, Fiat will provide two small car platforms, an area where Chrysler does not even compete today, to bring the total to seven. To read more about Marchionne's plans to consolidate Chrysler's vehicle platforms in order to improve global sales, click here.
Saab Starts Shipping to U.S. Dealers as it Rolls Back Prices
Saab Cars North America, seeking sales momentum under new ownership, is lowering prices for its 2010 9-3s by 4 to 12 percent. According to Automotive News, Saab's 218 U.S. dealers are expecting 9-3s this month after a half-year delivery hiatus. Saab launches its redesigned 9-5 sedan this summer. The base model 2010 9-3 sport sedan starts at $29,725, including delivery, compared with $31,135 for the 2009 version. The new 9-3X crossover starts at $37,800. The cuts move Saab pricing more in line with competing vehicles, COO Mike Colleran said in a statement. To compare, the base 2010 Volvo S40 starts at $27,050, including shipping. Along with providing 2010s, Saab is offering current owners or lessees $1,000 off a new 2009 or 2010. The deal comes on top of incentives launched in late February that range from $4,000 to $8,000 off 2008 and 2009 models. Dutch niche automaker Spyker Cars NV bought Saab last month after the Swedish brand had been for sale since March 2009. Click here to read more at Automotive News on Saab's plans to lower prices on its cars to increase competitiveness with fellow automakers.
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