August 20, 2010

J.D. Power Forecasts 15 Percent Sales Decline in August
The slow economic recovery, coupled with lower incentives compared with a year ago, probably will translate into a 15 percent drop in U.S. light-vehicle sales in August from the same month last year, J.D. Power and Associates predicted on Thursday. And the forecasting firm said the total annualized sales rate will drop 16 percent, from the Cash for Clunkers fueled 14.1 million rate in August 2009 to 11.8 million for the current month. "The economy is the big cause, but there aren't any significant incentives drawing customers," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "There are also shortages, inventory is low. The choices for buyers out there could be posing a challenge as well because they may not be able to find the vehicle that they are looking for." Automotive News reports that total August new-vehicle sales are expected to come in at 1.03 million cars and trucks, down 15 percent from a year earlier, when the federal government's clunkers incentive program was under way. Sales in August 2009 totaled 1.26 million. J.D. Power's forecasts are based on data collected from 8,900 dealerships in the United States and based on the first 11 selling days of August. Click here to read more on J.D. Power's forecast for August U.S. auto sales.

Korean Official: Ratify Free Trade Pact
The Korean ambassador to the United States urged Michigan business leaders Wednesday to endorse a long-stalled free trade agreement between the two countries, saying U.S. auto imports "can and should be increased a lot more." The Detroit News reports that Ambassador Han Duk-soo told the Detroit Regional Chamber of Commerce that the agreement "will actually make things better, not worse, for the auto industry and its workers." He argued the deal "will open fully an increasingly affluent consumer market to U.S. automakers by erasing the 8 percent tariff they pay on all their exports to Korea while the U.S. will eliminate its tariff of only 2.5 percent." The Bush administration signed the agreement in April 2007, but it hasn't been ratified by Congress. President Barack Obama has said he wants U.S. and Korean negotiators to address concerns by November to allow ratification by early next year. "As the Korean ambassador to the United States, I would like to see more Ford, Chrysler and GM cars in the streets of Korea than other foreign cars. And we know from experience that if we work together we can make that happen," Duk-soo said. Click here to read more from AIADA on the importance of ratifying a free trade agreement between the U.S. and South Korea. Click here for Han Duk-soo's remarks to Michigan business leaders this week.

GM to Hire Hyundai's Chris Perry to Head Chevy Marketing
According to Automotive News, General Motors Co. on Thursday named Chris Perry its new Chevrolet marketing boss, replacing Jim Campbell. Perry, 50, Hyundai Motor America's vice president of marketing, will be the fourth Chevrolet marketing leader in 13 months and will be reunited with Joel Ewanick, GM's top U.S. marketing executive, who held the same post at Hyundai. Campbell, 46, was named vice president of GM's performance vehicles and motorsports unit. In March, Perry was named Hyundai's top marketing executive when Ewanick joined Nissan North America. Weeks later, Ewanick moved to GM. In the past year, at least 17 of GM's marketing leaders have changed jobs or left. Three of GM's four remaining U.S. brands underwent major ad campaign changes - Buick more than once. Ewanick is GM's fourth U.S. marketing chief in the past year. Perry has been with Hyundai since 2000. Before taking the interim job, he was director of marketing and advertising. He has been credited by Hyundai dealers with being a key player in developing the company's attention-getting marketing efforts - including the Hyundai Assurance program, which guarantees customers that they can return their purchases if they lose their job. For more on Chris Perry's move from Hyundai to GM, click here.

Most and Least Expensive Cars to Insure
Looking to buy a reasonable ride, something reliable and affordable over the long run? Forbes reports that you should consider a Mazda Tribute or Dodge Caravan - they have among the lowest average insurance rates in the country. Most people don't think about how much they'll spend buying coverage when they're picking out a vehicle. But they should - on average, insurance accounts for roughly 11 percent of total ownership costs over a five-year period. And depending on the model you choose to drive, you could end up paying a lot more. Click here to see photos of the best and worst models to insure. To determine the cost of insuring different vehicles, Forbes used data commissioned by Insure.com from Quadrant Information Services. Analysts at Quadrant calculated the average premiums using car insurance rates from six large carriers (State Farm, Allstate, Progressive, Geico, Farmers, and Nationwide) in 10 ZIP codes per state. In general the vehicles with the lowest rates are wagons, vans, and low-priced sedans. Stay away from hotrods like the Dodge Viper SRT-10 coupe or luxury saloons like the Porsche Panamera Turbo; those tend to be more expensive. Click here to read Forbes' full rundown of the most and least expensive cars to insure.

That Came With a Manual Transmission?
It's a given that some vehicles are available with a stick shift: the Chevrolet Corvette, the Porsche Boxster, the BMW M3. You know, performance cars. But Car and Driver says that many manufacturers have surprised us by offering row-your-own manual transmissions in stuff you wouldn't expect, and for that they deserve special recognition. After all, manuals are way more fun and give the driver a greater sense of control. Unless you're really determined, you can't eat a hamburger or text your mom while you drive one. And manual-equipped cars often provide better fuel economy than their automatic equivalents. Click here for some of Car and Drivers' favorite shockers. For example, the Lexus SC300 (1992-97) was sold with a five-speed manual transmission, much to the surprise of many. Today, the Porsche Cayenne offers a manual transmission in its V-6 version. If minivans are your thing, you might be surprised to know that the 1989-90 Dodge Caravan Turbo offered a manual transmission, as does today's Mazda 5 minivan. Click here for a photo gallery of Car and Driver's list of vehicles. To read the full story on the least likely vehicles to come with a manual transmission, click here.

Around the Web
2013 Morgan EvaGT [Car and Driver]
Spycam: 2012 BMW M6 [Motor Trend]
Nissan Maxima Gets Minimal Changes for 2011 [DriveOn]
China's Top 10 Selling Sedans in July [The Truth About Cars]