Automotive News - July 14, 2008 - (Page 10)

10 • JULY 14, 2008 Cars outsold trucks in June, but not all small cars were winners. Sales of the Chevrolet Aveo fell 19.7 percent. A 2009 model is shown. 2008 sales forecast? 14,652,757 Fortunately, the first half of 2008 is over. Unfortunately, the second half looks worse than the first. Not much worse, but worse. If you’re looking for a full-year sales number, try this on for size: 14,652,757. That is my number, and it’s not exactly a wild guess. It is based on a 10-year analysis of firsthalf and second-half sales. In those 10 years, first-half sales have accounted for 50.6 percent of the full-year total. Applying that percentage of this year’s first-half count of 7,414,295 gives the above-mentioned 14,652,757. That is not a jump-for-joy number. It would be down 9.3 percent from salestales ther, I tag the 14.6 million to include 7.8 million cars and 6.8 million trucks. It would be the first time since 2001 that cars have outsold trucks. How deep is the ocean? John K. Teahen Jr. is the senior editor of Automotive News. 2007’s tally of 16,154,450. But in view of this year’s May-June sales collapse, the industry should be quite content with 14.6 million. The seasonally adjusted annual sales rate for June was 13.1 million deliveries. Taking the projection a step furHow deep is the pit that the Detroit 3 are struggling to climb out of? In June, the local forces had just 45.8 percent of the market. In May, they had only 44.4 percent. The six-month figure was just as dreary. The Detroiters had only 47.9 percent in the first half. It is not a happy situation when more than half the buyers on your home turf are snubbing your products. Need Results? You Need The Performance Partnership www.hatadv.com Short supply? It may be a case of demand outstripping supply, but some of the smallest cars posted ordinary sales numbers in June. The Pontiac G5 was up only 4.2 percent over last year. And the Kia Rio gained just 5.2 percent. Some of the little guys even lost ground, like the Chevrolet Aveo, down 19.7 percent; Toyota Yaris, 7.5 percent; and Ford Focus, 5.5 percent. But don’t overlook the big winners, like the Honda Fit, up 78.2 percent; Hyundai Accent, up 70.0 percent; and Hyundai Elantra, up 50.6 percent. And Suzuki reported that sales of its Aerio/SX4 nearly tripled in June. As a group, small cars were up 7.3 percent for June and 9.7 percent for the first half. You may e-mail John K. Teahen Jr. at jteahen@crain.com Bad and Worse Cars and trucks 2008 estimate 2007 actual Difference 14,652,757 16,154,450 –9.3% 1,501,693 units Cars 2008 estimate 7.8 million 2007 actual 7,885,099 Difference –1.2% 85,099 units Trucks 2008 estimate 6.8 million 2007 actual 8,269,351 Difference –17.8% 1,469,351 units Source: Automotive News Suzuki cuts U.S. work force 8% LOS ANGELES — American Suzuki Motor Corp. has reduced its U.S. work force by about 8 percent at its headquarters in suburban Los Angeles and in the regions. Spokesman Jeff Holland says 20 of the 600 U.S. employees took buyouts or early retirements. An additional 30 jobs were eliminated after the company did not meet its voluntary-buyout numbers. In a March 28 letter to employees, Chairman Rick Suzuki said the U.S. jobs would be eliminated because of sliding sales and operating losses. Suzuki also said he would step down, but he still holds his position. It remains unclear when or if Suzuki still plans to leave the post. — Kathy Jackson Some accidents get tired of waiting to happen. In the Auto Dealer industry, risks can come out of nowhere. With Travelers IndustryEdge, you’re covered. Our experts have a deep knowledge of the Franchised Auto and Truck Dealer world, and can identify the risks unique to your business. Even those that might be in your blind spot. Call your Travelers agent today, or find an agent near you at travelers.com. ©2008 The Travelers Companies, Inc. All rights reserved. The Travelers Indemnity Company and its property casualty afﬁliates. One Tower Square, Hartford, CT 06183 travelers.com http://www.hatadv.com http://www.hatadv.com http://travelers.com http://travelers.com http://travelers.com

Table of Contents Feed for the Digital Edition of Automotive News - July 14, 2008

Small-car boom misses Chrysler Ford's large rwd car plan is iffy Suppliers: Inflation is looming Hummer H3T price: $31,495 VW may build next Passat in U.S. plant Glut of trucks pulls Prius to U.S. Ford sues U.S. over taxes Restyled Ridgeline Volvo will tighten U.S. dealer network As BMW's chief in N.A., Purves got biggest thrill out of Mini Despite pricey fuel, Jetta diesel in demand Everybody's a critic: How dealers cope with online reviews Hyundai goes big on Genesis lease The shift to automatic: A transmission transition Jaguar-Land Rover dealer: Stand-alone would bankrupt me Chevy christens compact Cruze Fiat, BMW will team up on platforms, parts Revision: Bosch still tops Auto News supplier list GM to build Volts in U.S. for Europe GM ads will push mpg for 90 days A missed opportunity 2008 sales forecast? 14,652,757 Suzuki cuts U.S. work force 8% CAFE standards: Stop whining and get to work Uncertainty is the name of the game Honda dealer rubs salt in a wound Careless driver was to blame for crash Unsafe driving wasn't Ford's fault For doomsayers, business is booming again Best ad slogans have staying power Bird Dog Club creator hunts dealer poachers Dealers How to design a Lamborghini? Passion for speed certainly helps Dressed to kill Check for children Delinquency rate on indirect loans skyrockets Group promotes payment assurance Ford has big plans for small vehicles in North America Mulally pushes Ford toward fuel efficiency Ford brand will draw on European lineup With no new vehicles planned, Mercury's future is bleak Engines promise power plus fuel economy Horbury: We'll keep our vehicle designs fresh Ford aims to move Lincoln upscale Toyota's Lentz: Don't panic over collapse; market will stabilize Personnel Chrysler's car sales sag in June — even more than trucks PG sells majority of auto glass business to private-equity firm Chrysler's Campi makes nice Suit against Ford is reinstated BMW reassesses Mini demand JCI plant cuts shift, work force CAW board endorses local president Purves: Thumbs-up for BMW innovations Current trend in Europe: Electric cars Solid reviews for Ford's new Flex Philosopher has insight for ailing U.S. auto industry The 'B' word brings media deathwatch at GM Chrysler to dealers: Don't panic

Automotive News - July 14, 2008

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