Automotive News - June 23, 2008 - 1
autonews.com ® JUNE 23, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY ‘Like house of cards,’ used trucks fall Donna Harris and Arlena Sawyers firstname.lastname@example.org Dealer Poncho Redfern sees big used trucks that were worth $20,000 just a few months ago valued today at $12,000. And he winces. “It’s not like prices are just a little soft,” says Redfern, president of Thomason Auto Group, of San Francisco, which owns seven dealerships in California and Texas. “The values have dropped extraordinarily. We are having a hard time adjusting.” Many new-vehicle dealers grew accustomed to raking in big profits on large used pickups and SUVs. But now those trucks are sucking out cash as they gather dust. Soaring fuel prices have toppled the market for big used trucks “like a house of cards,” says Tom Kontos, executive vice president of analytical services for the ADESA auction company. In the past three months, values of large used trucks have depreciated more than ordinarily would be expected in a year, according to CarMax Inc., the largest used-vehicle retailer in the United States. Some fullsized used trucks now fetch as little as half their wholesale book value. Dealers say they can’t offer customers much for trade-ins of big trucks — and some are refusing to take those pickups and SUVs at all. see TRUCKS, Page 39 Honda will send more Fits to U.S. Honda dealers scrambling for more small cars got some good news: When the next-generation Fit arrives in fall, Honda will boost the allocation to 80,000 per year from 60,000. | PAGE 6 | Suit alleges fraud by used-car dealer New Caddys coming Brand will launch CTS wagon in 2009; restyled SRX moves to new platform Jamie LaReau email@example.com Ohio’s attorney general is suing a used-car lot that allegedly bought new vehicles and sold them without titles. Two new-car dealerships also are named in the suit. | PAGE 8 | Truck dump Wholesale prices of used big pickups and SUVs plunged by onefifth last month. AVG. PRICE MAY ’08 CHANGE FROM MAY ’07 Full-sized pickups Large SUVs $9,343 $11,271 –21.3% –19.7% Source: ADESA Analytical Services DETROIT — General Motors will unveil a Cadillac CTS wagon this fall in an effort to compete with BMW’s 3 series and Mercedes C-class wagons. Cadillac intends to start production in 2009 for global sale. GM has shown a CTS coupe concept to be produced next year. Cadillac also plans to replace its current SRX crossover with a production version of the Provoq concept crossover as a 2010 model. The current SRX has suffered disappointing sales. Sources familiar with GM’s plans say the re-engi- The Provoq concept hints at the next-generation SRX. neered and restyled SRX will look similar to the Provoq, a hydrogen fuel cell concept. When the Provoq was shown in January, Cadillac General Manager Jim Taylor told Automotive News that a production version could do something the current SRX has failed to do: draw in female buyers. Taylor predicted a production Provoq could sell 60,000 to 70,000 units annually. Last year, Cadillac sold 22,543 units of the SRX in the United States. The current SRX is built on the Sigma architecture, also used for the CTS and STS. The next-generation SRX will be on a new architecture that is a blend of two GM frontwheel-drive architectures, Theta and Epsilon, and will likely be powered by a V-6 engine. In size it would be between the Saturn Vue and GM’s Lambda-based crossovers such as the Buick Enclave.c Minis give Japanese an added edge Japanese automakers are using their teeny minicars as test labs for techniques to cope with the new world of $4-a-gallon gasoline. | PAGE 37 | Detroit 3 a big drag in global supplier race David Barkholz and Douglas A. Bolduc firstname.lastname@example.org BAL SUPP LO On the Web This week at www.autonews.com: North American suppliers that are heavily reliant on the Detroit 3 are falling behind in the sales race with their Asian and European rivals. Stalwarts such as Delphi Corp., Johnson Controls Inc. and Lear Corp. NEWSPAPER LS tumbled on this year’s AutomoOBA UPP flects an increase in the value of GL tive News list of the top 100 the yen that hiked the compaglobal original-equipment ny’s sales numbers when parts suppliers. They were hit translated into dollars. Robert by slumping sales at home. Bosch GmbH, of Germany, fell Meanwhile, Denso Corp., of to second. Japan, claimed the title of world’s Excluding aftermarket sales, largest parts supplier on the strength Denso’s global sales jumped 31.5 perof Toyota Motor Corp.’s continued cent to $37.51 billion. All sales rose 11.5 global growth. Denso’s rise also re- percent in yen terms. Bosch’s sales rose 14.5 percent to $34.00 billion. For automotive suppliers dependent on North America, it probably will get tougher in the coming months. In the first half of this year, North American vehicle TOP ArvinMeritor This story and the accompanying lists contain incorrect information on ArvinMeritor Inc. It failed to take into account ArvinMeritor’s sale of the emissions unit in 2007. In fact, the company’s comparable sales, including components for both light and commercial vehicles, rose slightly to $6.45 billion in 2007, up from $6.42 billion in 2006. Business with the Detroit 3 represents less than 10 percent of ArvinMeritor’s revenue. We regret the error. ER LI see SUPPLIERS, Page 16 Today: The EPA releases a proposal for automakers to improve fuel efficiency and reduce greenhouse gases. Tuesday: At 1 p.m., Automotive News will hold a Webinar to explain how dealers are learning to create environmentally friendly stores. Thursday: J.D. Power and Associates releases its 2008 study of what consumers like and dislike about their new vehicles during the first 90 days of ownership. S T OP S ER LI G
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