This short excerpt comes from Automotive Fleet; Mercedes will be lowering its power-train on many of its V8 engines.  

Lets hope Benz it not going soft

The 6.2L V-8 powering Mercedes’ AMG lineup will be replaced by the end of 2010 by a twin turbocharged 5.5L V-8, Inside Line quotes Daimler AG Group Research & Mercedes-Benz Cars Development board member Dr. Thomas Weber as saying.

Under Mercedes’ reported plan to downsize its powertrains, all V-8s will shrink in size for 2011, with turbocharging making up for the power deficit. If true, the move to smaller displacement engines would help increase efficiency while also reducing CO2 emissions, according to Auto Blog.

Source: http://www.automotive-fleet.com/News/Story/2009/12/Twin-turbo-5-5L-V-8-to-Replace-Mercedes-Benz-6-2L-V-8.aspx

American cars have been the poster for muscle cars for years, but that is soon going to change. As Dodge is now part of Fiat, their vehicles are getting a Euro makeover for the years 2010 and beyond.  When this merger took place we knew this day would come when our vehicles would not look the same again.

“The Challenger and Charger are by definition American vehicles and you cannot turn them into anything else, thus they are also going to remain Dodge (branded cars) worldwide,” Fiat-Chrysler CEO Sergio Marchionne told Automotive News Europe late last month. Meanwhile, vehicles such as the restyled Journey and the Nitro, due in Europe in 2011, could be sold as Fiats here and in Latin America.

Will you Drive This Dodge?

As times change, more and more vehicles will be made with that Euro flare to fit market trends and environmental changes.  Lets hope the markets react well to the new image of these cars that have been a stamp of good old American Muscle.

The future in Europe looks this way for other Chrysler Group brands.

1. The lineup of Chrysler brand cars could grow to include models currently sold by Fiat subsidiary Lancia. The Lancia models that may be turned into Chryslers include the Delta compact and the next-generation Ypsilon subcompact, which is due in the second half of 2011. The Delta and Ypsilon are expected to continue to be sold as Lancias in Italy, which accounts for about 90 percent of the automaker’s total sales.

This says that the Lancia accounts for 90 percent of total auto sales in Italy, who cares? That is in Europe, as stated before their roads are a bit smaller and the culture is completely different. Did anyone do market research on how many Americans would really purchase a Fiat Lancia?

2. There will be no changes at Jeep. Its lineup of SUVs and crossovers will continue to be sold.

Separately, Chrysler’s Ram pickups could be sold in Europe as part of the Fiat Professional light commercial vehicle unit’s portfolio. Fiat has not given a timetable for an official launch of the Ram pickup launch in Europe. Currently, Rams are sold in Europe only by private importers.

According to company figures for 2008, Chrysler Group sold 87,637 units in Europe. Jeep was the top-selling brand with 32,542 units, followed by Chrysler brand’s 28,936 sales and Dodge’s 26,159 units.

Fiat Group Automobiles sold 1.17 million units in Europe last year, according European automaker association ACEA. The Fiat brand led with 957,267 units followed by Lancia’s 113,978 sales and Alfa Romeo’s 102,223 units.

http://www.autonews.com/article/20091206/COPY01/312069985/1076

With the closing of many GM dealerships across the nation this past year; no one ever asked the question- what happened to all those customers?

Now that question has been answered, GM has offered 45-day discounts up to $2,000 for over 900,000 customers of their closed dealerships. But there is a catch…. the size of discount depends on “likelihood to purchase a GM vehicle and the relative distance to the next closest dealer” .

Doesn’t seem like much; but none the less the customers were on GM’s mind for once. 

These deals seem a bit useless when it comes to average customer credit in this market. But as stated before at least they are trying. Here is more from the article:

Other incentives

Customers who want the discount have to bring in the certificate enclosed with the letter as well as a proof of identity, Strosberg said. The offer extends to Jan. 4.

GM plans to begin a second wave of the program early next year that will include Saturn customers, Strosberg said.   The automaker also is issuing a service offer that includes a vehicle inspection and tire rotation to all customers of closed stores, the letter said. This offer is good through May.

GM’s U.S. sales chief Susan Docherty said Nov. 16 that the company was launching an incentive program for its four surviving U.S. brands in an attempt to flush out excess 2009 inventory. She did not discuss details.

“GM has to use aggressive marketing to try to keep those customers in the fold,” said Michelle Krebs, a senior analyst with the Edmunds.com research firm. “There are other brands waiting to pick those people up.”

Chrysler Group announced last week that it was offering cash incentives of $1,000 to $1,500 on many vehicles.

Boosting sales

“GM is working with a new foundation of fewer brands,” J.D. Power analyst Jeff Schuster said in an e-mail today.

“New product is obviously a key component to success, but the rebuilding can’t continue without a strong customer base. Loyalty is the name of the game here. It is much harder to get back a displaced customer than bring in a new one and GM is proactively going after buyers that may be at risk.”

GM’s November retail sales were on pace to increase 10 to 15 percent from a year earlier, Docherty said last week.

In October, GM’s U.S. sales rose 5 percent for its first year-over-year gain since January 2008.

GM sales plunged 34 percent during the first 10 months of the year compared with the same period a year ago.

A total of 1,839 GM dealerships have agreed to shut down by October 2010, the company said in a Nov. 16 filing with the government.

GM now has 5,860 dealerships and plans to scale back to between 3,600 and 4,000 over the long term, the filing said.

The negotiations, which also involve Chrysler, seek an alternative to legislation that would reverse dealer terminations. The legislation passed the House last summer but has stalled in the Senate.

More GM dealerships will be closing

As GM battles the recession this leaves many of their dealerships out to dry and in come cases out in the cold. But only $1000? Not even 12% off regardless of credit? What ever happen toa great deal; this is just an average deal GM is putting out there to pull in neglected customers.

This was a great ploy by GM to gain back some of those lost customers. Lets hope that some of those customers do return; SuperHeroCars will be more than glad to assist any ex-GM customers looking to get into a vehicle.

This is an update regarding the sale of the Hummer brand to China’s Tengzhong; the deal was proposed at $500 million but now it seems like the deal will only be worth about $100 million.

The Hummer Brand is being bought by China

Chinese machinery maker Tengzhong is still working to buy General Motors Co.’s Hummer brand after a regulatory setback, Chinese media reported.

China’s Ministry of Commerce, which must approve the Hummer acquisition, had turned back the application because it was lacking detail, the Legal Evening News reported.

“We are still trying hard,” an unnamed spokesman for Tengzhong was quoted as saying in response by China News Service.

The deal would mark the first major Chinese acquisition of a distressed U.S. auto asset during the current economic downturn.

Sichuan Tengzhong Heavy Industrial Machinery, a little-known firm based in land-locked southwest China, raised eyebrows when the deal for the premium off-road Hummer brand came to light three months ago.

Tengzhong’s bid for Hummer requires approval in China from both the commerce ministry and the National Development and Reform Commission, a powerful planning agency.

- This move have been in the workings for some time now. It seems there is alot of red tape concerning this deal. 

I don’t know what would possess GM to sell this brand,  although times a rough now things will turn around eventually. But none the less money has to be made and GM has been taking too many losses to keep the brand on board.

So anyone with a Hummer hold on to it; hey maybe it wil become an collectors item.  

Source: http://www.autonews.com/apps/pbcs.dll/article?AID=/20090908/ANA02/309079909/1263&AssignSessionID=373326151678011

In light of these recent events GM seems to be getting the ship back on track. In a report released today by AutoNews.com GM will be beefing up its marketing budget and spending on various marketing outlets to help rebuild a healthy brand image. This comes days after they have announced  a partnership with Ebay and then the Cash-for-Clunkers program is in full swing.

We’ll heavy up on the spending,” Lutz said at a press event here. “We’ve been spending at a level that barely sustained brand health. Now we’re going to spend at a level that builds brand health.”

According to TNS Media Intelligence via Advertising Age, GM spent $1.81 billion in measured media in 2007, the most recent year for which figures are available. Advertising Age is an affiliate of Automotive News.

Lutz, recently given control of GM marketing, said ad spending will have more impact, being spread over fewer brands. The post-bankruptcy GM will have four brands — Buick, Cadillac, Chevrolet and GMC — compared with eight previously.

That will allow GM to “not only launch but sustain” advertising for new vehicles, he said. Lutz repeated his intent to make increased use of social and viral media.

Lets see if GM can see SuperHeroCars.com through all that online clutter.

Source: http://www.autonews.com/article/20090811/ANA08/908119979/1018

The government’s Cash-For-Clunkers program has been officially launched; to some is a success but to other it may spell not fair well for used car dealers. According to AutomotieNews.com this program has more customers fulling up new car show rooms across the country.

The Cash For Clunkers Program has many used dealers on the ropes.

Many customers across the country are finding out that their vehicles do not qualify for the program. They have been walking into dealerships expecting to get rid of their clunker for a green vehicle and a voucher for $4,500. Some even end up buying a used vehicle anyway; this may hurt many used dealers due to the volume of customers flocking toward the new dealerships looking for those vouchers.

This hurts many within an industry that has been badly beaten by the economy; now this is like throwing salt on a wound. As if used car sales were not struggling enough, this just affirms that maybe the government may have rushed into this cash for clunkers thing? But this program is still in its first stages; lets see what happens at the end of the quarter or even by the end of the year.

The worst thing is that there are a few unsatisfied customers out there who have to settle; they need the vehicles but they had to settle due to a government program. As stated below one customer didn’t get exactly what he wanted.

Wallace says a customer who wanted to trade his 1989 Toyota pickup for a new vehicle didn’t qualify. It was “a junker in every sense of the word,” he says, but the truck’s four-cylinder engine was too fuel-efficient to qualify under the government rules.

Wallace gave the man $1,800 for the truck and sold him a used 2008 Nissan Versa small car.

“He was a little disappointed, but he needed a car,” Wallace says

This program works well for most of the GM dealerships that have  been in ot water. But its the average  used car dealer that will suffer here; this program has potential buyers flocking to new car show rooms and ignoring the used car dealers on  the way there.

Why scrap a car that can be resold? That doesn’t seem like something that should be done during rough times. But what do we know?

Here is the rest of the article…

Says Greg Cole, who owns Chevrolet dealerships in Pocatello, Idaho, and Athens, Ga.:, "It’s a positive program, and it’s just when General Motors dealers needed it."

But it also has redirected customers away from Cole’s used-car lots to new-car showrooms.

Adam Simms, owner of Toyota Sunnyvale in Sunnyvale, Calif., says his new-car sales are strong thanks to the federal government program. He expects to sell about 190 used vehicles in July, which would be his best used-vehicle sales month ever.

But Simms is concerned that taking so many used vehicles out of the market to be destroyed will hurt his used-car business over the next few months. Of the 130 vehicles he has taken in under the program, about 110 would have been resold as used at his store under typical circumstances.

Says Simms: "You’ll see the impact in August, September and October of those cars being destroyed."

Half ‘true junk’

Wallace says half the vehicles he has taken on trade under the guzzlers program are “true junk,” but the others “are vehicles somebody would have retailed.”

So in some instances, Wallace is giving customers $4,500 for their trade-ins so he can sell the vehicles on his used-car lot.

“People are always calling, saying they want an $8,000 or $9,000 car to go fishing in or for their high school student,” Wallace says. “You can never have enough of those cars.”

Source: http://www.autonews.com/apps/pbcs.dll/article?AID=/20090729/ANA05/907299975/1132&AssignSessionID=373326151678011

  Linda Gray is the General Manager for several Montana television stations, after hearing about Chrysler and General Motors dealers closing in her state she thought it would have affected her business. Linda Gray biggest category is Auto advertising and that has decreased to 32% when compared to last year.

“Auto is definitely down, but it isn’t down as much as we expected it to be,” “We weren’t so much affected by the closures.” said Ms.Gray

 

  The situation is not as bad because of dealers who are advertising. Sanford C. Bernstein & Company has reported that television, radio, and newspapers are more reliant on automotive advertising last year.

T.V station got 23 % of their total advertising from auto newspaper at 17% and radio at 14%.

  By next year pent-up demand is expected to drive car sales higher, and a 12% increase in auto advertising local T.V stations expected to be a big beneficiary of that increase.

- Luigi

As the world turns for the Big Three, Chrysler will be closing about 789 dealerships by the end of June 2009. According to an AutomotiveNews.com story the automaker will be forced to close after they filed to terminate franchise agreements in bankruptcy court yesterday. Here is a comment from Chrysler VP of sales;

The steps are being taken “with a deep sense of sadness,” said Steven Landry, Chrysler’s executive vice president of sales, in a statement. He said Chrysler used a “data-driven matrix” to make the decision. The rejected dealers account for 14 percent of Chrysler’s U.S. sales volume, he said.

Many of the dealerships were notified by UPS mail that their franchises will be closing; In another stunning move; Chrysler is not required to buy back any vehicles or parts from the dealers. This may not fair well for an owner who has a very large amount of inventory and cannot move any units.

Here is another snippet from the article which spells out the details of the shut down plan:

Highlights of Chrysler’s dealer elimination plan
• 789 dealers being informed of rejection; 24.7 percent of the dealer body.
• June 9 will be their last day of business.
• Bankruptcy Court review process runs from May 14 to June 9.
• Chrysler, because it is under Bankruptcy Court protection, will not be required to buy back vehicles, tools or parts from rejected dealers.
• Chrysler will match rejected dealers with accepted dealers, who will buy back parts, tools and vehicles.
• Rejected dealers will continue to sell vehicles, and Chrysler will continue to pay incentives and warranty charges until June 9.
• Chrysler says it won’t abandon retail customers, and will pay for “towing services, etc.”
• About 4 million customers of rejected dealers - “orphan owners” — will get letters explaining the situation.
• All decisions remain subject to change.

800 Chrysler Dealerships Gone..

Many of those dealers were moving more USED vehicles than NEW vehicles.

This goes to show how much different things will be for the Big Three and the rest of the country. The list of dealers to be closed can be seen when you click on the link below to read the full story. What about the owners of those dealerships and even the employees who were just notified that they will be out of a job by June. Also; in a related report from CNN.com analysts say that 80% of people who purchase vehicles, use the Internet as a tool to influence their purchase.

As more and more Americans change their lifestyle due to the economy; just remember one thing.

If you need a Hero, we are here to help.

To view the full article….

 http://www.autonews.com/article/20090514/ANA05/905149979/1197

As times get worst for everyone in the Auto indutry: Chrysler is being sued by Faurecia Interior Systems Inc. a French Auto Supplier. Apparently, Faurecia supplies components such as center consoles, instruments panels & door panels for some of the top selling vehicles such as. PT Cruiser, Sebring the Dodge Avenger, Jeep Liberty & Dodge Nitro.

Here is an excerpt from Automotivenews.com:

According to Faurecia’s lawsuit, the project costs were to be lumped as a surcharge into the per-piece cost of the parts for all four programs, so by the end of the vehicle’s life, Faurecia would recover its project investment costs. The surcharges were to be adjusted if production volumes changed dramatically, according to the suit.

But Chrysler has slashed production of the vehicle programs by 46 to 73 percent below what it forecast when it signed the contract with Faurecia in 2004, Faurecia said in its suit. Faurecia contends Chrysler refused to adjust the price to reimburse Faurecia for its costs since at least 2007…..

The suit also alleges that Chrysler purchased interior parts for a related vehicle program from a Chinese manufacturer using Faurecia’s designs.

Faurecia says Chrysler owes it $45 million in engineering and r&d costs alone, on top of interest……….

The lawsuit states that Chrysler failed to pay the supplier back for engineering, research and development and many other up front production cost.

Well, as if times were not tough already for Chrysler they may get harder. Who knows maybe they may settle out of court or maybe agree to a lesser amount but one thing is sure.

Chrysler cant keep taking too many of these hits or they may fall.