Topic: Auto sales...and related stuff

[Snowman]

The Big Three should get into the insurance business in some markets that discourage new car purchases. Imagine if this were to occur in Ontario….
Insurance, fuel hurt vehicle sales
By RICHARD BLOOM
From Thursday's Globe and Mail
High gasoline prices and lofty insurance rates drove vehicle sales lower in Canada for another month, industry experts said.
According to data provided by the auto makers and compiled by analyst Dennis DesRosiers, 132,518 cars and trucks were sold in August, down 6.7 per cent from last year. Year to date, sales have declined 4.9 per cent from 1.11 million in 2003 to 1.06 million during the first eight months of this year.
Among the largest auto makers — Ford Motor Co. of Canada Ltd., General Motors of Canada Ltd. and DaimlerChrysler Canada Inc. — sales plunged 11.9 per cent, 11.4 per cent and 3.2 per cent, respectively last month.Year to date, sales are down 13.1 per cent, 3.2 per cent and 1 per cent, respectively, at the Big Three auto makers.
“Gas prices and insurance rates are hurting the market,” said Mr. DesRosiers, president of DesRosiers Automotive Consultants Inc. in Richmond Hill, Ont.
Gas prices have been on the rise in recent months as geopolitical uncertainty and fears of supply shortages pushed the price of crude oil toward the $50 (U.S.) a barrel level. According to Calgary-based MJ Ervin & Associates, Canadian gasoline prices averaged 82.5 cents a litre year in August — up from 77 cents a litre in August of 2003.
Mr. DesRosiers noted that while some predicted consumers would gravitate toward smaller, more fuel-efficient vehicles as gasoline prices climb, that isn't occurring. Instead, people are backing away from the market altogether — deciding to wait for either car prices or energy costs to decline, he said.
Bank of Nova Scotia economist Carlos Gomes echoed Mr. DesRosiers comments, saying that sales during the first few months of the year were on par with 2003 but then fell off a cliff once energy prices started rising substantially.
“Everything started to fall apart once May rolled around and it is energy driven,” Mr. Gomes said.
What's more, Mr. DesRosiers said that bargain-basement financing deals offered a year ago have also cut into this year's sales: “When you put out incentive programs, you steal from the future, and the future is now.” He also observed that corporate fleet vehicle sales during July and August — which, according to his calculations, account for about 20 per cent of sales during the summer — were weaker than normal last month.
“There was some very specific front-end loading of fleet sales into the first six months and fleet sales at midyear were actually up about six points while retail was down by about five points. Fleet is now weak and this is reflected in lower overall sales numbers,” he said.
But the auto maker's woes weren't just experienced in Canada. Within their crucial U.S. operations, sales at General Motors Corp. dropped 14 per cent from a year earlier, Ford Motor Ltd.'s sales fell 13 per cent, while DaimlerChrysler AG said they dropped 5.7 per cent. Toyota Motor Corp.'s sales fell for the first time in 16 months.
On the back of those results, Ford said it plans to reduce fourth-quarter North American production by 7.8 per cent while General Motors said production will decline 6.9 per cent. (Officials at Ford and GM Canada said it was too early to say whether it will come from the Canadian operations).
Still, some smaller players, including Honda Canada Inc., BMW Canada Inc. and Volvo Cars of Canada Ltd., increased sales

[wing]

Interestingly some cars in the UK come with FREE insurance!

And some of the cars aren't half bad, hot hatches!  I'd be buying one damn fast if I could get a car free of insurance!

[S60]

Nissan Motor reportedly said on Thursday that it has revised upwards its sales target in the US, but reduced its sales goal in the domestic Japanese and European export markets.

Overall, CBS Marketwatch reported, there is still no numerical change in the automaker's three-year plan to attain global sales of 3.6 million units in the year ended September 2005, up 1 million from the year ended March 2002.

The report said Nissan cut its sales goal for the Japanese and European markets by 80,000 and 30,000, respectively, but raised its sales target in the US and other countries by 60,000 and 50,000 units. The ‘Nissan 180’ plan originally called for sales increase of 300,000 units each in Japan, the US and other countries and a 100,000 rise in Europe.

CBS Marketwatch said the announcement came on the day the automaker unveiled six new models in Yokohama, which it will launch in the Japanese market by mid-January 2005. One of the six models, the Murano crossover sport utility vehicle, which has sold more than 80,000 units in the US since its debut there in December 2002, went on sale in Japan on Thursday. It will also soon be launched in continental Europe and the UK.

"These six new models for Japan, together with the new products we will introduce in many key markets this fiscal year, support our commitment to sell an additional 1 million units worldwide under Nissan 180," Nissan President and CEO Carlos Ghosn said in a statement cited by CBS Marketwatch.

[Drivesideways]

From the G&M article Snowman posted:

Mr. DesRosiers noted that while some predicted consumers would gravitate toward smaller, more fuel-efficient vehicles as gasoline prices climb, that isn't occurring. Instead, people are backing away from the market altogether — deciding to wait for either car prices or energy costs to decline, he said.

I wonder if stepping away from the market is necessary for the gravitation to take place.  And if so, how long to people stay away.  If I was all het up for a big ol' SUV but couldn't afford gas and insurance, I'd probably be waiting quite a while before I gave up and bought that Echo hatch.

[johngenx]

Suggest this plan to your MLA...

What about a goverment insurance plan that is based on the amount you drive?  Here's how it would work.  There would be a surcharge at the pump.  Everytime you put gas in your car, you'd be buying your insurance.  Don't drive your car for six months?  Well, you're insured (EVERYONE is, no more worries about non-insured drivers), but you're not paying cause you're not driving.

Every single car on the road would be automatically insured.

Even morons that have lost their license to 3000 DUI's and have no insurance BUY GAS.  At least those a$$holes would still be paying something in too.

[Snowman]

The snowball is starting down the hill:
http://biz.yahoo.com/rb/040909/autos_visteon_charge_1.html

[outtllaw]

 I think that high car insurance has more of an effect on new car perchease than gas prices. The cost of gas is still relatively low in canada compared to most european countries. The cost of car insurance is way too high espically for young people buying new cars. the average insurance permium cost for a person under 25 is $4500 a year,this has made me put off buying a new car for a couple years. Public insurance would be a perfect fix for this problem.

[davidm]

I always love insurance discussions.  BC people think private insurance will be better, anyone I talk to about ICBC from the east or US loves the sound of ICBC.  Grass is always greener ...

Insurance on my A4 wagon for a 16 year old would be a touch over $3k per year with ICBC - obviously I pay substantially less (43% off to be precise).

On the car co's I just saw an ad for a domestic brand that was 0% for 72 months, $0.20/litre off gas for up to $250 or was it $2500, plus something else.  Not too much left to give away at this rate ...

[ovr50]

The newest issue of the Economist magazine has a 14 page spread on the global auto industry and it's very good. Recognizes all the problems and puts everything in the global context. A good read if you're interested in the state of the auto industry other than just US spin on things.  

(Message edited by ovr50 on September 09, 2004)

[Snowman]

Yes Ovr….my shortsightedness with the industry made me only think about the domestic market…..I need by-focal lenses. I distrust economists…I tend to run in the other direction…..buy high sell low…..fack me!...I will trade my base metal mining shares for VW....I will seek out this rag….web site?

[ovr50]

"The Economist" is not by economists per se; that's the name of the mag since about 150 years ago - published out of London, UK. Is basically a news magazine for the world. Web site is www.economist.com. A highly respected publication. Check it out.

[Snowman]

Time to shuffle the deck:
Ford Announces Executive Appointments

Friday September 10, 9:01 am ET
 
James G. O'Connor is retiring as group vice president, North America, Marketing, Sales & Service at year's end, and will be succeeded by Earl Hesterberg, currently vice president, Ford of Europe, Marketing, Sales & Service. * Marv Adams is promoted to senior vice president, chief information officer. * Tony Brown is promoted to senior vice president, Global Purchasing. * John Fleming is elected president, Ford of Europe, reporting to Lewis Booth, Ford of Europe's chairman and chief executive officer. * Geoff Polites is elected a company vice president and vice president, Marketing, Sales & Service for Ford of Europe, reporting to Lewis Booth. * Antonio Maciel, currently president of Ford South America, is elected a company vice president.  
DEARBORN, Mich., Sept. 10 /PRNewswire-FirstCall/ -- Ford Motor Company (NYSE: F - News) announced today key executive appointments in its Americas and Ford of Europe operations and two corporate staff promotions.
In the Americas, the company announced Jim O'Connor's plans to retire on December 31 as the company's group vice president, North America, Marketing, Sales & Service. O'Connor will be ending a distinguished 40-year career as one of Ford's marketing, sales and service leaders as he assists in the transition to his successor over the next three months. Earl Hesterberg, a company vice president and Ford of Europe's vice president of Marketing, Sales & Service, will succeed O'Connor as group vice president, North America, Marketing, Sales & Service. Hesterberg will report to Greg Smith, executive vice president of the Americas, effective October 1.  
"Jim has stayed longer than he planned at my request, and for that the Ford Motor Company will always be indebted to him," said Bill Ford, the company's chairman and chief executive officer. "It will be hard to imagine a Ford Motor Company without Jim. He'll always be remembered for his professionalism, as well as his terrific sense of humor and ability to tell a good story. Jim led our marketing, sales and service efforts over the years, and he has been one of our company's most valuable ambassadors. We'll miss him, as will the many Ford and Lincoln Mercury dealers who have counted on his support. Fortunately, our company will continue to benefit from the talented teams he has built and from the organizational foundations he has created.  
"Looking ahead, we expect Earl Hesterberg to continue as a strong and effective marketing, sales and service leader," Ford added. "At Ford of Europe, he was successful at improving its sales performance, even as the European marketplace grew increasingly competitive. His previous leadership experience at other automotive brands should also prove to be valuable as he takes on new challenges in North America."  
Hesterberg began his Ford career in 1975. In 1982, he moved to Nissan and spent 16 years in various assignments, including Vice President, General Manager, Nissan Division in the U.S. from 1991 to 1995, and later vice president, Sales, Nissan of Europe. In 1997, Hesterberg was appointed president and chief executive officer of Gulf States Toyota, Inc., a private company that imports and distributes Toyota products in the south and central U.S. Hesterberg returned to Ford in 1999 when he joined Ford of Europe as vice president, Marketing, Sales & Service.  
In addition, the company announced two corporate staff promotions. Marv Adams has been promoted to senior vice president, chief information officer, and Tony Brown has been promoted to senior vice president, Global Purchasing. Adams and Brown previously had been leading their global corporate staff functions as vice presidents. The promotions reflect the scope and complexity of the functions they lead.  
At Ford of Europe, the company announced two key executive appointments:  
•   John Fleming, Ford of Europe's current vice president of Manufacturing, will become its president, effective October 1. He will report to Lewis Booth, Ford of Europe's chairman and chief executive officer. Fleming, a 37- year veteran of the Ford Motor Company, has distinguished himself as a leader in driving manufacturing flexibility and productivity at Ford's European plants, which are now among the market's most efficient.  
•   Geoff Polites, currently vice president, European Sales Staff, Ford of Europe, will succeed Hesterberg as a corporate vice president and as vice president, Marketing, Sales & Service, Ford of Europe, effective October 1. Polites, who started his career with Ford in 1970, also served 11 years as a dealer principal at City Ford in Australia, where he won Ford's coveted President's Award three times and served on the Ford National Dealer Council for five years. He rejoined Ford in 1999 as president of Ford Australia after selling his interests in City Ford.  
"We will miss Earl Hesterberg, but the appointment of Geoff and John will ensure that we maintain leadership strength and continuity at Ford of Europe," said Lewis Booth, Ford of Europe's chairman and chief executive officer. "These moves also mean a continued focus on the Ford of Europe priorities of great quality, exciting products, returning to profitability, and inspiring our people."  
Separately, the company announced the election of Antonio Maciel as a company vice president, effective October 1. Maciel continues as president of Ford South America, which he assumed October 2003.  
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With more than 318,000 employees worldwide, the company's automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company celebrated its 100th anniversary on June 16, 2003.  

[Snowman]

Ford delays shipment of three new vehicles; dealers hungry for products
AMY WILSON | Automotive News and JOHN K. TEAHEN JR. | Automotive News  
Posted Date: 9/10/04
DETROIT -- Ford Motor Co. has delayed shipments of its newest vehicles at a time when its car sales are the lowest in decades and dealers are hungry for fresh products to boost sagging profits.

As of late last week, Ford had not begun shipping the 2005 Ford Five Hundred sedan, Freestyle sport wagon and Mercury Montego sedan to dealerships.

Ford has been building the vehicles at its Chicago assembly plant since mid-July. Dealers had been told shipments would begin the week of Aug. 23.

Ford COO Jim Padilla would not specify last week why Ford is holding on to the vehicles.

"When it's ready, we will ship it," Padilla said. "And we are very damn close."

Padilla said that he expects shipments to begin within the next couple of weeks.

Sales are still planned for September, though volume sales are not expected until October, after dealers build inventory and advertising begins.

To date, the company has built 3,627 Five Hundreds, 2,316 Freestyles and 915 Montegos.

Sources say they are not aware of major quality problems. One source said Ford is just being extra careful.

Dealers are hungry for the crucial new models because Ford Division dealer pretax profits are down about 8 percent through July.

Ford Division car sales plunged to 45,298 in August, apparently the division's lowest monthly car sales total since the build-up days following World War II.

Ford has fallen to fourth place in car sales for the year to date behind Chevrolet, Toyota and Honda. Ford ranked third behind Toyota and Honda after the first eight months of 2003

[Snowman]

Chrysler Group President and CEO Dieter Zetsche Says Company's 1998 Merger Improved Long-Term Viability
Friday September 10, 1:00 pm ET  
- Merger lays foundation for Chrysler Group's global transformation - Zetsche confirms Brampton (Ontario) Assembly Plant will build left- and right-hand drive versions of the Chrysler 300C and SRT-8 vehicles for sale outside of North America beginning in 2006 - Announces all Jeep(R) Liberty Diesels will be fueled by B5 biodiesel fuel, reducing the vehicle's petroleum use by an additional 5 percent - Innovative Canadian partnerships have paved the way to meet unique industry challenges  
CALGARY, Alberta, Sept. 10 /PRNewswire-FirstCall/ -- Chrysler Group President and CEO Dieter Zetsche told a group of international business leaders at the Spruce Meadows "Changing Fortunes" BUSINESS ROUND TABLE today that the Company is thriving in a very competitive global marketplace as a result of its 1998 merger with Daimler-Benz, transforming its North American operations and going back on the offensive with nine new products launched this year, including the Canadian-built Chrysler 300C.
"The North American auto market is contested like no other market in the world," Zetsche told the group of 170 CEOs, presidents and corporate executives. "Just about any large shopping mall parking lot tells the story. Focusing on how to adapt and compete in the new order is the key to survival."  
He credited the six-year-old merger for laying the foundation of the Chrysler Group's global transformation, but noted that significant improvements in productivity, quality and costs had to be achieved first in North America. As a result of the sharp focus on these initiatives, Zetsche said the Chrysler Group has made significant improvements and is working to close the gap between the best automotive companies in the world. The goal, he told the audience, is to equal or exceed them in key areas by 2007.  
While much work over the past three years was focused on surviving, Zetsche said, "We are now going on the offensive and striking back in the best way you can, namely with hot products."  
He said that international demand for the Brampton, Ontario-built Chrysler 300C is outpacing supply by more than 30 percent this year and, with the addition of the Chrysler 300C Touring sports wagon, the 300C family of vehicles is giving the Company added strength in traditionally European- dominated segments.  
He added that the 300C momentum will continue. "I can confirm today that in 2006 we will start to sell left- and right-hand drive versions of the Chrysler 300C and SRT-8, (the recently introduced higher performance version of 300C) outside of North America."  
He said the Company was able to keep cost down while accelerating development of these rear-wheel/all-wheel drive vehicles by drawing on the engineering expertise within the DaimlerChrysler family.  
"The Chrysler 300C and SRT-8 are tangible evidence of another important way in which the merger is paying off," Zetsche said.  
Because of the strong portfolio of products, Zetsche said the Chrysler Group is "stepping up our international market initiatives." With vehicle sales in more than 125 countries, the Company plans to sell about 180,000 vehicles outside of North America in 2004. By 2007, the number of models available in markets outside of North America will more than double to approximately 18. And in that same period, the number of right-hand drive vehicles will double to more than a dozen.  
Zetsche said that DaimlerChrysler Canada has an emerging role to play in the Company's global "mindset" and product offensive as "a market proving ground."  
"In terms of buying patterns, gas taxes, consumer tastes and market segmentation, the Canadian market much more reflects that of Europe and other international markets than does the U.S. market," Zetsche said. "This is one reason that we'll closely be tracking demands and consumer response to our 2005 Jeep® Liberty Diesel, available with 2.8L common-rail turbo diesel. If we're successful, we could expand our diesel offerings to the Jeep line or into other vehicles available in Canada in the next couple of years."  
Zetsche said that clean diesel technology plays an important role in reducing oil consumption and carbon dioxide emissions. The Jeep Liberty Diesel meets those two objectives by cutting C02 emissions by about 20 percent and achieving fuel economy gains of about 30 percent over the 3.7 liter V-6.  
"To further maximize our diesel's potential, we will also encourage the use of biodiesel in our vehicles," Zetsche added. "Each Jeep Liberty Diesel coming off our assembly line will be fueled by B5 biodiesel from soy beans. B5 biodiesel reduces Liberty Diesel's petroleum use by an additional five percent.  
"There's great untapped potential for biodiesel, but we'll need standards that will ensure consistency in the quality of biodiesel fuels," Zetsche said.  
He added that another important strategy the Company is employing is to adapt to global competition including forming innovative partnerships to find new solutions for the challenges that confront the industry. He referred to two Canadian partnerships as examples of how industry, academia and government can work together in order to remain competitive.  
The first, the Automotive Research and Development Centre (ARDC), is a joint initiative of DaimlerChrysler Canada and the University of Windsor, which opened in 1996. ARDC was the first industry-academia partnership of its kind in North America dedicated to automotive research, development and education. ARDC does critical research and development work in the areas of automotive coatings and vehicle safety for DaimlerChrysler.  
The second is with the Canadian Automotive Partnership Council (CAP-C), a joint initiative of government, labor, industry and academia to help formulate a comprehensive auto industry policy for Canada.  
"I strongly believe that developing innovative, progressive and constructive partnerships between academia, government and industry will be increasingly necessary to remain competitive in the global marketplace," Zetsche said.  

[Drivesideways]

Ctrl-c...ctrl-v...ctrl-c...ctrl-v...I can't keep up.  That's a lot of reading, dude.  My finger doesn't move that fast across the screen.  Besides, I can hardly see it anymore through the smudges.  

That last story is good news for Chrysler and for the good folks at the Brampton plant.  I wonder how many of the 300/Magnum family they'll sell outside NA....the global market has been very different from ours.

[Mdxtasy]

Just saw my first Magnum on the streets today....red...it's a long car.

[Snowman]

The 300/Magnum has a unique design, RWD, AWD, reasonable hp, and the Hemi logo. I think it will do well outside NA…but not in the same volume as on home soil. Who knows…..perhaps it will develop an image and sell like stink.

[Drivesideways]

I've only seen it on the lots, not on the road yet.  It's hard to get a real impression of its proportions that way, but yeah, it does look long.

[Snowman]

“Just saw my first Magnum on the streets today....red...it's a long car.”
Cripes MD…you’re starting to sound like Murray and Dubya.

[Giant Dwarf]

Not only that, but where the heck have you been hidin'?  I've been seein' those things for months.  I see so many bloody truckloads of them I think I"m sick of them already!