Automotive News - February 25, 2008 - (Page 30)

30 • FEBRUARY 25, 2008 Taxes distort Jan. sales in Europe Jesse Snyder jsnyder@crain.com Estimated Europe light-vehicle registrations by make, January Jan. 2008 Jan. % 2007 change Court rejects Chicago dealer’s appeal Bernadine Williams and Bradford Wernle bwilliams@crain.com Once again, Europe’s January car sales were skewed by consumers reacting to changes in vehicle taxes. In January 2007, new-car sales in Germany fell dramatically after the government raised the value-added tax to 19 percent from 16 percent. Germans’ car-buying funk continued all year. That was enough to hold total European volume for 2007 to a narrow 1.1 percent gain, to 15.96 million units. Meanwhile, there was strong growth in France, Italy, the United Kingdom and central Europe. Ups and downs This January, Germany was up 10.5 percent compared with last year’s slow January. But France was down 5.6 percent after it imposed gas-guzzler fines of up to 2,600 euros, or $3,854 at current exchange rates. Italy was off 7.3 percent because many consumers had bought cars in 2007, expecting government incentives to end Jan. 1. Italy renewed oldcar trade-in incentives for 2008 but did so very late in 2007. Total European volume slipped 0.3 percent to 1,308,761 units, said ACEA, the European automakers’ association. Two other countries with January tax changes also had sales swings, said Nigel Griffiths, director of international automotive research for Global Insight. Finland’s sales jumped 27.4 percent after it cut taxes on fuel-efficient cars. In the Netherlands, the market fell 3.3 percent because some people had bought cars last year to avoid the new-year tax increase on big cars. “It’s a big distortion,” Griffiths said. He said the French decline in January would have been greater except that the government didn’t agree on its new-year purchase-tax penalty until mid-December, limiting the chance to beat the tax to a few weeks. “Still, you had a spike in December SUV and premium-brand sales,” Griffiths said. “And dealers were preregistering cars they didn’t have yet to avoid the penalties.” VW division .. Audi Seat Skoda Other VW AG Peugeot Citroen PSA GROUP .. Ford division.. Volvo Land Rover Jaguar FORD MOTOR Opel/Vauxhall Chevrolet Saab GM U.S. GM Fiat division .. Lancia Alfa Romeo Other FIAT GROUP .. Renault div. .. Dacia RENAULT Toyota Div. Lexus TOYOTA MOTOR Mercedes-Benz Smart DAIMLER AG† BMW division Mini BMW GROUP.. NISSAN HONDA SUZUKI HYUNDAI KIA MAZDA MITSUBISHI .. CHRYSLER LLC† OTHER 129,928 48,893 29,603 38,014 303 246,741 90,041 80,340 170,381 110,332 21,826 7,719 1,695 141,572 101,459 16,436 5,723 601 124,219 92,295 10,942 8,014 645 111,896 93,472 15,178 108,650 72,873 2,928 75,801 62,150 7,069 69,219 52,467 12,421 64,888 33,935 25,866 23,244 22,615 21,347 20,845 11,025 9,377 27,140 122,882 51,846 31,413 38,652 518 245,311 92,539 83,458 175,997 111,547 24,160 8,188 2,739 146,634 112,375 15,527 6,728 540 135,170 86,520 11,790 14,014 608 112,932 99,524 8,735 108,259 80,734 3,927 84,661 59,582 4,686 64,268 48,084 9,240 57,324 22,607 24,625 22,812 26,127 18,941 21,150 11,889 9,405 24,019 5.7 –5.7 –5.8 –1.7 –41.5 0.6 –2.7 –3.7 –3.2 –1.1 –9.7 –5.7 –38.1 –3.5 –9.7 5.9 –14.9 11.3 –8.1 6.7 –7.2 –42.8 6.1 –0.9 –6.1 73.8 0.4 –9.7 –25.4 –10.5 4.3 50.9 7.7 9.1 34.4 13.2 50.1 5.0 1.9 –13.4 12.7 –1.4 –7.3 –0.3 13.0 –0.3 Gerald Gorman, a former Chicago Chrysler dealer, has lost an appeal of a lower court’s dismissal of his case alleging that DaimlerChrysler Financial Services had practiced racially discriminatory lending. The dismissal by Judge Frank Easterbrook of the 7th U.S. Circuit Court of Appeals ends a bitter legal battle that resulted in a high-profile boycott of Chrysler and brought protesters to the Chrysler stand at the 2004 Chicago Auto Show. “Chrysler Financial has maintained all along that this case has been without merit and an attempt by Gorman to take advantage of the legal system and cover up his financial improprieties,” said Bill Porter, a Chrysler Financial spokesman. In 2003, Gorman, principal owner of Ridge Chrysler-Jeep and Dodge of Midlothian in suburban Chicago, and his wife sued DaimlerChrysler Financial, alleging the company had declined to finance the auto purchases of inner-city black customers. Gerald Gorman was a white dealer whose customers were mostly blacks. The stores closed in 2003. After the Gormans’ initial suit, DaimlerChrysler Financial filed counterclaims seeking repayment of loans it had made to the dealerships. The Gormans’ case bogged down in the intricate details of the dealerships’ financing. In 2006, U.S. District Judge Virginia Kendall ruled that Gerald Gorman had lied repeatedly during court proceedings about the source of a $750,000 investment in the dealerships. In his summary, Judge Easterbrook spoke bluntly about the Gormans’ conduct: “Plaintiffs have behaved like a pack of weasels and can’t expect any part of their tale to be believed.” c TOTAL 1,308,761 1,312,131 †DaimlerChrysler sold the Chrysler group on Aug. 3, 2007; Daimler AG and Chrysler LLC totals through July 2007 are extracted from DaimlerChrysler. Note: Reflects estimated registration data from 28 European countries; excludes most commercial vehicles Source: ACEA Estimated Europe registrations by country January 2008 % change CO2 curbs New curbs on carbon dioxide emissions especially affected January sales for premium brands with heavier and more powerful cars, said Adam Jonas, managing director of Morgan Stanley. “The luxury brands got slammed,” he said. “It may not be the end of luxury in Europe. But it’s a blip that could last a year.” Among luxury brands, volume leaders BMW and Mercedes-Benz scored significant gains while smaller brands showed big losses. Alfa Romeo was down 42.8 percent to 8,014 sales, and Jaguar fell 38.1 per- Italy 232,207 Germany 220,742 France 162,116 United Kingdom 162,097 Spain 101,630 Netherlands 66,379 Belgium 56,846 Ireland 47,609 Greece 33,583 Romania 29,495 Poland 28,367 Austria 21,884 Finland 21,519 Switzerland 19,322 Sweden 17,033 Portugal 15,818 Denmark 13,211 Hungary 12,343 Czech Republic 10,082 Norway 9,901 Slovenia 6,128 Slovakia 4,783 Luxembourg 3,981 Bulgaria 3,326 Estonia 2,464 Lithuania 2,273 Latvia 2,191 Iceland 1,432 TOTAL 1,308,761 Note: Excludes most commercial vehicles Source: ACEA –7.3 10.5 –5.6 –2.1 –12.7 –3.3 1.8 3.9 6.0 34.5 24.6 –2.4 27.4 5.6 –17.3 9.4 12.9 0.0 10.2 –21.9 24.0 36.6 1.9 8.4 –5.8 55.2 –17.7 47.9 –0.3 cent to fewer than 1,700 units. Both Lexus and Saab recorded doubledigit losses; Volvo fell almost 10 percent, and both Audi and Land Rover fell 5.7 percent. c AUTO SHOWS Feb. 23-March 2 — Cleveland Auto Show, I-X Center, Cleveland, 440-746-1500, www.clevelandautoshow.com Feb. 23-March 2 — Greater Milwaukee Auto Show, Midwest Airlines Center, Milwaukee, 717-671-4300, www.motortrendautoshows.com Feb. 29-March 2 — New Orleans International Auto Show, Morial Convention Center, New Orleans, 504-831-8863, www.neworleansauto.com/autoshow Feb. 29-March 10 — Melbourne International Motor Show, Melbourne Exhibition Centre, Melbourne, Australia, 61-3-9829-1111, www.motorshow.com.au March 3-9 — Quebec City International Auto Show, Centre de foires de Quebec, Quebec, 418-624-2290, www.salondelautodequebec.com March 5-9 — Greater Kansas City International Auto Show, Bartle Hall, Kansas City, Mo., 913-345-8970, www.kansascityautoshow.com March 6-9 — First Hawaiian International Auto Show, Hawaii Convention Center, Honolulu, 717-671-4300, www.hiautoshow.com March 6-9 — Oklahoma City International Auto Show, Oklahoma State Fairgrounds, Oklahoma City, 405-607-0400, www.okcautoshow.org March 6-16 — Geneva International Motor Show (press days: March 4 and 5), Geneva Palexpo, Geneva, 41-22761-1111, www.salon-auto.ch March 7-9 — Virginia Motor Trend International Auto Show, Greater Richmond Convention Center, Richmond, Va., 717-671-4300, www.motortrendautoshows.com March 8-16 — Columbus International Auto Show, Greater Columbus Convention Center, Columbus, Ohio, 614-766-9100, www.columbusautoshow.com March 8-16 — Greater Minneapolis and Saint Paul International Auto Show, Minneapolis Convention Center, Minneapolis, 952-831-8019, www.gmada.com March 19-23 — Fort Lauderdale International Auto Show, Greater Fort Lauderdale/ Broward County Convention Center, Fort Lauderdale, Fla., 305-947-5950 March 21-23 — Nashville International Auto Show, Nashville Convention Center, Nashville, 717-671-4300, www.motortrendautoshows.com March 21-30 — New York International Auto Show (press days: March 19 and 20), Jacob K. Javits Convention Center, New York, 800-282-3336, www.autoshowny.com March 26-30 — Denver Auto Show, Colorado Convention Center, Denver, 888-704-4199, www.denverautoshow.com March 27-30 — Dayton Auto Show, Dayton Convention Center, Dayton, Ohio, 877-704-8190, www.hartproductions.com March 28-April 6 — Bangkok International Auto Show, Bangkok International Trade and Exhibition Centre, Bangkok, Thailand, 66 2 229 4310, www.bitec.net March 28-April 6 — Zagreb International Auto Show, Zagreb Fairground, Zagreb, Croatia, 385 1 6503 111, www.zv.hr/autoshow March 30-April 1 — Central Illinois Auto Show, Peoria Civic Center, Peoria, Ill., 309-693-9867, www.peoriaautoshow.com April 2-6 — Dallas Auto Show, Dallas Convention Center, Dallas, 214-637-0531, www.dallasautoshow.com April 17-21 — Pittsburgh International Auto Show, David L. Lawrence Convention Center, Pittsburgh, 866-575-3040, www.pittautoshow.com April 19-27 — Atlanta JournalConstitution International Auto Show, Georgia World Congress Center, Atlanta, 770-916-1741, www.ajcautoshow.com April 20-28 — Auto China 2008 (press days: April 20 and 21), New China International Exhibition Center, Beijing, www.autochina.auto-fairs.com April 23-27 — Tallinn Motor Show, Rocca al Mare Exhibition Centre, Tallinn, Estonia, 372 682 8990, www.orangetime.ee/expo April 24-May 4 — Lisbon International Motor Show, Parque das Nacoes, Lisbon, Portugal, 351 21 3 http://www.motortrendautoshows.com http://www.aiag.org http://www.autoshowny.com http://www.clevelandautoshow.com http://www.autonews.com/pace http://www.denverautoshow.com http://www.sae.org http://www.motortrendautoshows.com http://www.hartproductions.com http://www.autonews.com/anevents http://www.neworleansauto.com/autoshow http://www.bitec.net http://www.executive-conference.com http://www.zv.hr/autoshow http://www.motorshow.com.au http://www.autonews.com/anevents http://www.peoriaautoshow.com http://www.salondelautodequebec.com http://www.dallasautoshow.com http://www.autonews.com/anevents http://www.kansascityautoshow.com http://www.pittautoshow.com http://www.hiautoshow.com http://www.sme.org http://www.okcautoshow.org http://www.ajcautoshow.com http://www.niada.com http://www.salon-auto.ch http://www.autochina.auto-fairs.com http://www.plugin2008.com http://www.orangetime.ee/expo http://www.motortrendautoshows.com http://www.usaautocrm.com http://www.acap.pt http://www.autonews.com http://www.columbusautoshow.com http://www.automobil.hungexpo.hu http://www.gmada.com http://www.autonews.com/calendar http://www.britishmotorshow.co.uk http://www.autonews.com/calendar http://www.autoslovakia.com

Table of Contents Feed for the Digital Edition of Automotive News - February 25, 2008

Automotive News - February 25, 2008 Chamco's 'consultant' is forced into limelight Group 1, Gulf States clash Dealer profit stuck in neutral Ghosn: Autos are in recession NHTSA investigates Toyota, Pontiac cars' windows The upside of upside down: Better belts Push buttons will alter interiors Schwarzenbauer leaves Porsche for Audi CSM: Cuts in auto output to ease in 2nd quarter Ford's Hispanic ad campaign takes it to the mat Hydrogen slips as a solution for the greening of autos Kia to spend big to upgrade dealerships GMAC: Office cuts won't affect dealers LaSorda: Chrysler's $700 million axle plant is 'going up' Toyota hybrid battery partner boosts output Buick may add a car below the LaCrosse Toyota could add 2 more small vehicles to U.S. lineup Calif. regulators shoot for 40-plus mpg by 2020 Loyalty/conquest: Power's best, worst Chrysler firm on retrieving tools from Plastech Former NUMMI exec applies Toyota ideas to aircraft industry Kozyra's resume reflects volatile supplier climate Obituaries Chrysler, Plastech now have chance to work together Do it the NADA way Hail, Geneva; spring must be near Volt's potential is unlimited The Volt is terrific; give GM a hand Beware of high tech running amok Teach reporters half full/half empty Dealer wants to view Conti exec: Inside, it's about the info Dealers Caddy chief's goals: Build on CTS, prestige, high-tech Geneva looks like another green scene Volvo XC60 system senses impact, hits the brakes Saab 9-1 concept awaits green light GM: Supply of vehicles to certify will stay steady Used-vehicle supplies up, prices down in Jan. Black Book plans daily updates Cars.com rolls out video service Manheim launches search tool Luxury sales channel is high on GM agenda GM seeks dealers' help with 5-point green plan Northwood offers dealer MBA Court rejects Chicago dealer's appeal Taxes distort Jan. sales in Europe Nissan to cut designers NHTSA studies window woes Bank: Autos easier to afford VW labor boss gets jail term Delphi sells 2 units Toyota Tundra had tough Jan. Chrysler's white knight: We're investors, not heroes Ford's 'Knight Rider' is Sync on steroids GMAC parties have lost a bit of their pizazz Global warming? It's a crock - but . . . Nardelli's NASCAR debut is a winner A frosty reception for the TSX

Automotive News - February 25, 2008

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