Section: Earnings/Financials
Written By: Seyth Miersma
May 16th, 2008 2:00 PM
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Manufacturer certified used vehicles have gained a lot of traction in the marketplace over the last few years, with many dealers finding that customers are increasingly comfortable with the quality of vehicle and the attendant warranties. The system has worked out so well in fact that many dealers are choosing to offer independent extended warranties on vehicles that may be uncertifiable by the automakers.
CNW Research has collected data for its May issue that suggests such deals are panning out for dealerships. They found that in 2007, dealer certified vehicles were commanding a premium of $681 over their non-cert counterparts, and sitting on dealer lots an average of 11 days less.
In our current economic climate, car buyers seem to be more and more inclined to take a risk on a pre-owned vehicle, and the small measure of security that certification offers makes the “used” pill even easier to swallow. Would a dealer certified used car be in the running with new products for your next vehicle purchase? Give us a shout, in comments.
+ CNW Research
Written By: Seyth Miersma
May 13th, 2008 2:05 PM
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Nissan released a statement today regarding the company’s financial position for 2007, as well as outlining a corporate plan for the next five years. In between reporting on the company’s great success in Europe last year (sales up 17.9 percent) and bold declarations for its future products (a leading zero-emissions vehicle by 2012), the release managed to sneak in some broad hints about vehicles we can expect in the coming year.
While some new products like the not-for-North America Qashqai+2, the new Z, and the Cube were already on our radar, Nissan was nice enough to confirm a few rumored vehicles as well. The Infiniti G37 Convertible is said to be a go, though it’s unclear if it’s destined to be a retractable hard top or something more conventional. More intriguing still is the “mini SUV” item, which may be the recently reported “1-series fighter” we’ve been hearing about. Check out the full Nissan press release below the jump and tell us what you think of the five-year plan, in comments.
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Written By: Seyth Miersma
April 29th, 2008 3:30 PM
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It’s been well established that the 2008 Chevrolet Malibu has been a sales leader for General Motors, easily surpassing the popularity of the out-going model. Interestingly though, J.D. Power and Associates is reporting that a fair amount of import owners are opting for new Malibu’s as well. Nearly one-fifth, 19.8 percent, of all trade-ins for the new car were imports. That number is up significantly from 12.5 percent for the last generation car in 2007.
Malibu is claiming conquests from the Japanese brands at a 4.6 percent better rate than last year. The combined percentage of trade-ins from the likes of Honda, Toyota, and Nissan was up to 9.7 percent in the first quarter of the year.
Overall Power ranked the Malibu as number 17 among the top-selling 20 models for the first quarter of 2008, and the fifth- best-selling midsize conventional sedan.
Click through the jump to read the full break-down of the J.D. Power Malibu trade results.
+ J.D. Power
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Written By: Seyth Miersma
April 24th, 2008 11:00 AM
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Ford cleared one major hurdle in completing its sale of Jaguar and Land Rover to Indian automaker Tata on Wednesday, receiving the go-ahead from U.S. government antitrust officials.
Authorities from the U.S. Federal Trade Commission said in a notice on Wednesday that they had completed a review of the $2.3 billion dollar deal and had no plans to take actions to block the move.
This latest small victory over the mass of legislative red tape will help to put Tata on a path to be a builder of among the most diverse portfolios of vehicles on the planet. Tata officially announced that it would be buying Land Rover and Jag last month.
A smattering from the future Tata empire in the galleries below.
+ Automotive News: TATA GETS US ANTITRUST OK FOR JAGUAR, LAND ROVER (subscription required)
If you’ve got an idea for Question of the Day, a funny photo for Caption It, or just want to share a news tip, let us know at windingroadtips@gmail.com
Written By: Seyth Miersma
April 21st, 2008 11:00 AM
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Two General Motors brands were at opposite ends of consumers shopping lists during 2007, with new sales statistics showing big changes in segment popularity.
GM’s Saturn brand was tied for the greatest jump up in new vehicle registrations per franchise last year, up by 55 over 2006 to a total of 479 registrations. BMW showed the same improvement for the year.
Meanwhile Hummer had a less auspicious sales year, with the average franchise registering just 285 new vehicles in 2007. That number was a drop of 90 from 2006, just beating out American Honda, which recorded a drop of 89 registrations per franchise, for the worst year-over-year performance.
Saturn’s success can be partly attributed to an influx of new vehicles, the brand’s greater fuel economy across the range, and rising fuel costs. Conversely Hummer’s slack sales can be attributed to a general decline in the large SUV segment in the U.S.
(Have a look at the popular Saturn Sky in our gallery below.)
+ Automotive News: Hummer plummets, Saturn soars in sales per franchise (subscription required)
If you’ve got an idea for Question of the Day, a funny photo for Caption It, or just want to share a news tip, let us know at windingroadtips@gmail.com
Written By: Seyth Miersma
April 11th, 2008 12:00 PM
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The United Auto Workers union presented a new contract proposal to American Axle on Wednesday, and while the parts manufacturer said that the new effort was a slight improvement on the first contract offer, it maintained that the offer still wasn’t competitive within the current market.
American Axle has proposed steep cuts for UAW employees, claiming that drastic measures will be needed to stay in line with the costs of today’s competition. The company has offered buyouts for UAW workers who would prefer to leave American Axle and “buydowns” for hourly workers who are willing to take pay cuts and reduced benefits. The manufacturer has also said that if it couldn’t come to terms with the union, it would have to close U.S. plants.
The UAW and American Axle officials are still negotiating, in hopes that some middle ground can be found, and that the six-week strike can be ended.
+ Automotive News: American Axle: UAW proposal comes up short (subscription required)
If you’ve got an idea for Question of the Day, a funny photo for Caption It, or just want to share a news tip, let us know at windingroadtips@gmail.com
Written By: Seyth Miersma
April 9th, 2008 2:00 PM
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Germany’s Daimler said today that it was holding to its 2008 and medium-term earnings forecasts, saying that its focus on the premium market would help it to stay ahead of an economic slowdown.
The automaker said last February that its pretax earnings for 2008 would clearly pass the level of 2007 when the company generated income of $13.74 billion. Daimler has also stayed true to its prediction that the margin on its overall business would rise to 9 percent beginning in 2010.
Company CEO Dieter Zetsche referenced fears of a slowing world economy by saying, “We are well equipped to handle the current macroeconomic challenges. Zetsche pointed out that the company wasn’t financially tied to the subprime lending business, and that Daimler possesses a “high level of gross liquidity,” that further strengthens its position.
+ Automotive News: Daimler sticks to 2008 forecast (subscription required)
If you’ve got an idea for Question of the Day, a funny photo for Caption It, or just want to share a news tip, let us know at windingroadtips@gmail.com
Written By: Seyth Miersma
April 9th, 2008 11:00 AM
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Retail gasoline prices have pulled back just a bit from record highs yesterday, but an updated government forecast tells of per gallon prices reaching $4 during this year’s summer driving season.
The U.S. Energy Information Administration released its monthly report on petroleum supplies and demand, which forecasts that monthly average pump prices will peak at about $3.60 per gallon during June. However prices are predicted to spike to as high as $4 a gallon at times. The revised forecast brings the government predictions more in line with the best guesses of many analysts who think that peak monthly averages may themselves hit $4 per gallon.
The EIA is also guessing that the high fuel prices will have a negative effect on consumer demand this summer. The agency is betting that gas consumption will fall by about 0.4 percent during the peak summer months and overall consumption will drop by 90,000 barrels per day for the year. Previous EIA estimates had consumption rising by 40,000 barrels a day.
+ Yahoo Finance: Gas Prices Slip, but Could Hit $4
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Written By: Seyth Miersma
April 8th, 2008 10:00 AM
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American Axle confirmed yesterday that it would resume full negotiations with the United Auto Workers this Wednesday, the first such since talks broke off on March 11.
A meeting between UAW President Ron Gettelfinger and American Axle CEO Richard E. Dauch yesterday afternoon facilitated the new round of talks, and is hoped to be a step in the direction of ending the six-week old strike by 3,650 union workers.
American Axle spokeswoman Renee Rogers called the meeting between Gettelfinger and Dauch “very productive.” The spokeswoman also reported that UAW officials from all five of the company’s Detroit-based bargaining units will be present at the Wednesday talks.
The American Axle strike has shut down 30 General Motors facilities to date, and idled production equal to 80 percent of American Axle sales.
+ Automotive News: American Axle and UAW to resume full bargaining (subscription required)
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Written By: Seyth Miersma
April 5th, 2008 10:00 AM
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Ford Motor Company CEO Alan Mulally earned a total of $21.7 million dollars in 2007, including a base salary of $2 million, and $7 million worth of stock and incentive bonuses. While that amount seems considerable, Mulally’s salary was actually down significantly from 2006 when he totaled $28.2 million in compensation.
On the whole Ford lost much less money last year than in 2006, totaling losses of $2.7 billion in 2007, compared to $12.6 billion the year before.
Other high-profile Ford executives raked in major compensation increases for 2007, despite the company finishing in the red: Chief financial officer, Don Leclair, earned $11.7 million in 2007, up from $4.4 million in 2006. President of the Americas, Mark Fields jumped from $5.6 million in 2006 to $8.4 million in 2007. Head of Ford Europe and the Premier Auto Group took in $10.3 million in 2007 versus $4.3 million in 2006.
+ The Detroit News: Ford’s Mulally earns $21.7 million in ‘07
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Written By: Seyth Miersma
April 1st, 2008 8:00 AM
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In a move consistent with the cutbacks it’s been making all year, Chrysler has announced that will no longer provide free life insurance benefits to its retired white-collar workers. Retirees had been covered by a free $50,000 policy, but will now only be eligible to enroll in a voluntary MetLife plan at a reduced, group rate. Individuals losing benefits will also be eligible for a one-time pension boost of up to $4,000.
Chrysler currently has about 14,000 white collar retirees and the company decided that the cost of that group’s insurance policy was one it could no longer bear. “We made this choice after looking at the competitive landscape,” said Chrysler vice president of compensation, benefits, and corporate services Thomas Hadrych. Hadrych went on to say that only one-third of America’s 1,000 largest companies offer retiree life insurance.
The pension boost was given to keep former white-collar workers abreast of United Auto Workers retirees, who are slated to get an increase of $2,800 to their pensions over the next four years. The pension boost is said to be unrelated to the cessation of life insurance, but Hadrych helpfully points out that retirees could, “use the payment to buy life insurance, if they choose.”
+ The Detroit News: Chrysler cuts white-collar retiree life insurance
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Written By: Seyth Miersma
March 28th, 2008 3:00 PM
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In 2006 Dutch exotic car builder Spyker didn’t do very well financially, the company reported losses of 1.3 million euros for that year. But that amount seems positively cheery when compared against news coming out of the company today, which had Spyker reporting a loss of over 72 million euros in 2007.
The automaker fully admits that it made mistakes last year; the biggest and most costly of which had to have been its involvement in Formula One racing. CEO Victor Muller called 2007, “A dramatic year, the likes of which the company had never seen before and which we would like to leave behind us as soon as possible.”
2008 seems to have a much better outlook for Spyker (it could hardly be worse), the company has been infused with capital from Snoras Bank in Lithuania, and is ready to start producing its C8 Aileron model in Q3. The company produced 18 cars in the first quarter of 2008, selling 12 of them. Spyker is also seeking an “aggressive expansion” to its dealer base in preparation for the launch of its D8 Peking-to-Paris model (in the gallery below) in 2009.
+ Automotive News: Spyker Cars posts big 2007 loss (subscription required)
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