Automotive News - October 20, 2008 - (Page 36) 36 • OCTOBER 20, 2008 SUBARU Customer Incentives , Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. Cash rebate Finance rate Cash rebate Finance rate Cash rebate Finance rate BMW Civic sales are up this year, but Honda cut inventory to 32,000 on Oct. 1 from 43,000 12 months earlier. Expires Oct. 31. 2009 models 5 series 3 series 2008 models 1 series, M3, M5, M6 6 series 3 series, 5 series – 2.9% – 2.9-3.9% 0.9-1.9% 0.9-2.9% 0.9-4.9% CHRYSLER LLC Expires Oct. 31. In lieu of rebates, cut-rate financing is available. 2009 models Chrysler 300 $500-$1,500 – Town & Country $750-$1,000 – Aspen, Sebring $500-$1,000 – PT Cruiser $500 – Dodge Journey $1,000-$2,000 Grand Caravan $750-$1,000 – Durango $1,000 – Charger, Ram 1500, Caliber, Avenger $500-$1,000 – Nitro, Dakota $0-$750 – Jeep Grand Cherokee, Patriot $500-$1,000 – Commander $0-$1,000 – Compass, Liberty, Wrangler $500 – 2008 models Chrysler 300C $5,250-$6,000 0-7.9% 300 (excl. SRT8 and C) $2,750-$5,000 0-7.9% Sebring $1,000-$5,000 0-7.9% Aspen $4,000-$4,500 0-7.9% Pacifica $2,000-$4,000 0-7.9% PT Cruiser (excl. convertible) $0-$3,500 0-7.9% Town & Country $2,500-$3,500 0-7.9% PT Cruiser convertible $1,000 0-7.9% Dodge Ram 1500 $5,000-$6,000 0-5.9% Magnum, Durango $4,000-$5,000 0-7.9% Charger $2,500-$5,000 0-7.9% Ram 2500/3500 $4,500 0-7.9% Dakota, Grand Caravan $2,000-$3,500 0-7.9% Avenger, Nitro $1,500-$3,000 0-7.9% Caliber $750-$2,000 0-7.9% Jeep Grand Cherokee $3,500-$5,500 0-7.9% Commander $4,250-$4,500 0-7.9% Liberty, Patriot $2,000-$2,500 0-7.9% Wrangler $1,000-$1,500 0-7.9% Compass $750-$1,000 0-7.9% INVENTORY Carmakers keep a close eye on output continued from Page 1 Trimming inventories Units of unsold vehicles Oct. 1 2008 Oct. 1 2007 As sales have deteriorated with each month, production cuts have kept pace. No action is too extreme. Automakers have closed factories, idled plants for months, eliminated shifts, moved production to different plants and cut imports. And dealers are showing discipline. “We are reducing all of our inventories, with the exception of Honda, to targeted levels,” said Joe Jankowski, CEO of Schaefer and Strohminger, a group of dealerships in Baltimore that sells brands including Honda, Dodge, Mazda, Jeep, GMC, Hyundai and Pontiac. “We’re factoring in a combination of days supply and specific floorplan expense levels.” Chevy Silverado Dodge Ram Ford F series Honda Civic 115,700 213,600 70,600 111,300 132,400 185,900 32,000 43,000 Source: Automotive News Data Center; companies Incentives help Automakers also are buying their way out of excess stock. Incentives were high on slow-moving pickups and SUVs this summer and are increasing on small and mid-sized cars this fall. Despite terrible sales in August, the Sept. 1 stock of 2.8 million vehicles was the lowest of any month since 1998, when a General Motors strike cut supplies. Even September’s steep 26.6 percent collapse to the first submillion unit sales month since 1993 added only 81,300 vehicles to inventory. “Auto manufacturers have been pretty disciplined about gauging demand and keeping inventory under control,” said George Pipas, the top sales analyst at Ford Motor Co. “You can’t just put the business on cruise control anymore.” This year, North American manufacturers have slashed production by 1.5 million units through Oct. 11, down 13.2 percent from a year earlier. Through September, U.S. sales are down 12.8 percent to 10.8 million. But the rate of decline has accelerated, driven by $4-a-gallon gasoline prices followed by a financial and credit-availability crunch. Worse, consumers have been fickle about what they buy. In May and June, as fuel prices spiked, buyers clamored for efficient small cars and spurned trucks and other gas guzzlers. But as prices at the pump fell, pickups rebounded. In June, the best-selling vehicle was the Toyota Corolla. In September, it was the Chevrolet Silverado large pickup, whose 50,428 sales total last month was nearly as much as the Corolla and Toyota Camry combined. “The reason people are not out of shape is that the industry has been driving the fundamentals this year,” said GM spokesman John McDonald. GM, Toyota, Ford, Honda, Chrysler and Nissan have cut inventories sub- stantially in the past year. Combined, the big six are down a quarter of a million vehicles from 2.6 million in September 2007. Industrywide, automakers reduced stocks by 646,100 units from February to August, a reduction of 19 percent in the six-month period. Inventory normally falls between February and August. But despite plunging sales, stocks this year fell by about 100,000 units more than the 10-year average for the period. There is a powerful incentive for holding stocks down. “Cutting inventory makes more capital available for the needs of the corporation,” said Robinet of CSM. “It’s capital that can be spent on product development.” Dealers finance vehicles on their lots, but automakers save by reducing the number of completed vehicles in factory lots and in transit. H2, H2 SUT $2,500 H3T $1,500 Pontiac G6 $500-$1,000 G5, Solstice, Vibe, Torrent $500 G8 – Saturn Aura $500-$1,000 Outlook, Sky, Vue $500 2008 models Buick Enclave, Lucerne, LaCrosse – Cadillac DTS, XLR $4,000 Escalade, SRX, STS $3,000-$3,500 CTS Chevrolet Express cargo $1,500-$2,000 Express $1,500 Avalanche, Aveo, Cobalt, Colorado, Corvette, Equinox, HHR, Impala, Malibu, Silverado 1500, Silverado 2500HD/3500HD, Suburban, Tahoe, TrailBlazer, Uplander – GMC Savana cargo $1,500-$2,000 Savana $1,500 Acadia, Canyon, Envoy, Sierra 1500, Sierra 2500HD/3500HD, Yukon, Yukon XL – Yukon Hybrid – Hummer H2, H2 SUT, H3 $5,000-$7,000 Pontiac G5, G6, G8, Grand Prix, Solstice, Torrent, Vibe – Saab 9-7X $4,500 9-3, 9-5 $3,000-$3,500 Saturn Aura, Outlook, Sky, Vue – 6.9-7.9% 1.9-4.9% 6.9% 5.9-6.9% 6.9% 6.9% 6.9% 0-6.9% 0-5.9% 0-5.9% 0-5.9% 5.9-6.9% 5.9-6.9% TOYOTA MOTOR SALES Expires Nov. 3. In lieu of rebates, cut-rate financing is available. 2009 models Toyota Corolla, Camry (excl. Hybrid) $0-$1,000 0-2.9% Matrix, Sienna, Tacoma $0-$1,000 0-4.9% 2008 models Toyota 4Runner, Tundra $0-$5,000 0-1.9% Sequoia, Sienna $0-$3,000 0% Tacoma $0-$2,000 – Avalon, Highlander, RAV4 $0-$1,500 0-4.9% Camry Solara $0-$1,000 3.9-4.9% FJ Cruiser – 0-4.9% VW GROUP OF AMERICA Volkswagen expires Oct. 31; Audi expires Nov. 4. 2009 models Audi A3, A4, A8, S8, TT, Q7 – 4.9% Volkswagen Eos, GTI, Passat, Rabbit, Tiguan, GLI, Jetta, New Beetle, Touareg 2 – 3.9-5.9% 2008 models Audi A3, A4, A6, A8, Q7, RS4, S4, S6, S8, TT, Q7 – 0.9% R8 – 6.09-7.39% Volkswagen New Beetle convertible, – 0% GTI, Touareg 2, Passat GLI, Jetta, New Beetle sedan, Rabbit, Eos, R32 – 0-2.9% 0-6.9% 5.9-6.9% 5.9-6.9% 0-6.9% 5.9-6.9% 0-7.9% 0-6.9% 0-5.9% 0-5.9% 0-6.9% VOLVO Expires Jan. 5. 2008 models XC90 S80 – 0.9-2.9% – 1.9-3.9% AMERICAN HONDA MOTOR CO. Expires Nov. 3. 2009 models Acura RDX Honda Pilot Accord 2008 models Acura MDX, RDX, TL Honda Odyssey, Ridgeline CR-V, Accord, Element – 0.9-2.9% – 0.9-2.9% – 1.9-3.9% – 0.9-2.9% – 0.9-2.9% – 1.9-3.9% Dealer Incentives Incentives in this table are a summary of dealer programs offered. Programs may vary by region and model. BMW Expires Oct. 31. 2008 models 7 series Z4, Z4 M $7,500 $2,500-$3,500 LAND ROVER Expires Oct. 31. 2008 models LR2, LR3, Range Rover, Range Rover Sport – 0-1.9% CHRYSLER LLC Expires Oct. 31. 2008 models Chrysler Pacifica, PT Cruiser $0-$4,000 Town & Country, 300 $0-$400 Dodge Ram 1500, Ram 2500/3500 $0-$4,000 Avenger, Caliber, Charger, Dakota, Durango, Magnum, Nitro, Grand Caravan $400 Jeep Commander, Compass, Grand Cherokee, Liberty, Patriot, Wrangler $400 MAZDA Expires Oct. 31. In lieu of rebates, cut-rate financing is available. 2009 models B series $2,000 – Tribute $1,500 3.9% RX-8 – 0.9% CX-7, CX-9 – 1.9-2.9% 2008 models RX-8 $3,500 1.9% Mazda6 $2,750 0% Tribute $2,000-$2,500 0.9% B series $3,000 – CX-7, CX-9 – 0% FORD MOTOR CO. Expires Nov. 3. In lieu of rebates, cut-rate financing is available. 2009 models Ford Flex, Explorer $2,500-$3,000 0-4.9% Fusion $2,000-$3,000 0-5.9% F-250 Super Duty, F-350 Super Duty $2,500 1.9-5.9% Escape $1,000-$2,500 0-5.9% Taurus, Taurus X $1,500-$2,000 2.9-7.9% Focus, Mustang $1,000-$2,000 0-8.9% Explorer Sport Trac $1,000-$1,500 2.9-6.9% Econoline $1,000 2.9-6.9% Lincoln Navigator $5,000 1.9-5.9% Town Car $4,000 4.9-8.9% MKZ $2,500-$3,500 0-5.9% MKS – 0.9-4.9% Mercury Grand Marquis $5,000-$5,500 1.9-5.9% Milan $2,500-$3,500 0-4.9% Mountaineer $3,000 0-3.9% Mariner $1,500-$2,500 0-5.9% 2008 models Ford F-450 Super Duty $7,000-$7,500 0-3.9% F-250 Super Duty, F-350 Super Duty $6,000-$7,500 0-3.9% F-150 $4,500-$7,500 0-5.9% Expedition, Expedition EL, Explorer $4,500-$5,000 0-1.9% Mustang $2,500-$5,000 0-5.9% Explorer Sport Trac $3,500-$4,000 0-1.9% Edge, Taurus $3,000-$4,000 0-4.9% Escape, Fusion $2,000-$4,000 0-3.9% $3,000-$3,500 0-4.9% Taurus X Econoline, Ranger $2,000-$3,000 0-1.9% Focus $1,500-$2,500 0-7.9% Escape Hybrid – 4.9-8.9% Lincoln Mark LT $8,500-$9,500 0-1.9% Navigator $7,000-$8,000 0-1.9% Town Car $6,000-$7,000 0-6.9% MKZ, MKX $3,500-$4,500 0-1.9% Mercury Grand Marquis $6,500-$7,000 0-1.9% Mountaineer $5,000-$6,000 0-1.9% Sable $3,500-$4,500 0-3.9% Milan $3,000-$4,000 0-3.9% Mariner $2,500-$4,000 0-3.9% Mariner Hybrid – 4.9-8.9% GENERAL MOTORS Expires Nov. 3. 2009 models Cadillac DTS, SRX, STS, STS-V, XLR, XLR-V $1,500-$2,000 Escalade (incl. Hybrid) $1,000 Saab 9-3, 9-5, 9-7X $2,000 2008 models Buick Enclave, LaCrosse, Lucerne $1,000 Chevrolet Silverado 1500 $1,500-$2,000 Avalanche, Silverado 2500HD/3500HD $2,000 Equinox $1,500 Malibu, Suburban $500-$1,000 Aveo, Cobalt, HHR, Malibu Hybrid $500 GMC Sierra 1500 $1,500-$2,000 Sierra 2500HD/3500HD $2,000 Acadia, Yukon XL $1,000 Pontiac G5, Torrent $500-$1,500 Saturn Outlook $1,000 MERCEDES-BENZ Expires Oct. 31. 2009 models R class C class 2008 models C class, CLK class, GL class E class, M class, R class, S class – 2.9% – 2.9-3.9% – 2.9% – 1.9-3.9% http://www.Edmunds.com
Table of Contents Feed for the Digital Edition of Automotive News - October 20, 2008 Automotive News - October 20, 2008 Amazingly, vehicle inventories are low An upside of the big slide: Raw material prices dip â for now With GMAC out, banks trickle in Get your daily Automotive News - in video form, starting Nov. 3 Honda's Fukui favors fed loans, confirms V-8 To move the metal, Mike Kahn moves the store Hyundai airbag flaw tied to drink spills Texas promo: Buy a GM vehicle, get GM stock Chrysler's uphill road in China GM/Chrysler? Anything's possible GM/Chrysler deal? Companies' pension plans may need cash Acura dealers: A V-8 engine is on the way Buyers pursue former Heard stores Honda: We're still lending Gilles, Ligocki will speak at congress Fed list promotes high-mileage cars Party time: Saturn turns to grass-roots marketing Online inventory service aims to cut dealer costs Document fees must not become a dirty little secret Just put up a 'For Sale' sign Cash for clunkers? Scrap the idea Arbitration can work for everyone It's time we control our own destiny GM missed boat on Cheyenne, Volt Sept. truck sales fall 7.4% Microheat seeks Chapter 11 At Bosch, r&d spending remains strong GM's new diesel opens up, loses weight Urea must flow or new diesels won't go Hankook plans to bring fuel-saving tire to North America Odell: I can help Volvo tap more potential So far, BMW cruises above the credit crisis Jatco builds China plant to meet expanding CVT demand 10 appointed at American Axle Personnel Milestones Obituaries Supplier Personnel Biking buddies Ford targets fleets with parental control key European sales fall; VW group bucks the trend 11 innovators win honorable mention 25 finalists selected for 2009 PACE awards Suppliers to the 2009 BMW X6 GMAC's loan cutbacks cost GM thousands of auto sales Credit tops agenda for NADA chief 'Flash' draws modest cash at theaters Booth's new berth sparks CEO speculation at Ford Economy's skid sends ritzy toys to eBay Report: Mazda scraps plan for U.S. plant GM's quandary: Finding loans for the imperfect Taylor to Hummer - and then ... ? Tough times at Tesla Automotive News - October 20, 2008 Automotive News - October 20, 2008 - (Page Intro) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 1) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 2) Automotive News - October 20, 2008 - Texas promo: Buy a GM vehicle, get GM stock (Page 3) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 4) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 5) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 6) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 7) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 8) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 9) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 10) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 11) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 12) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 13) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 14) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 15) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16A) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16B) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16C) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16D) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 17) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 18) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 19) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 20) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 21) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 22) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 23) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24A) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24B) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24C) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24D) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 25) Automotive News - October 20, 2008 - Obituaries (Page 26) Automotive News - October 20, 2008 - Biking buddies (Page 27) Automotive News - October 20, 2008 - Biking buddies (Page 28) Automotive News - October 20, 2008 - Biking buddies (Page 29) Automotive News - October 20, 2008 - Biking buddies (Page 30) Automotive News - October 20, 2008 - Biking buddies (Page 31) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 32) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 33) Automotive News - October 20, 2008 - Suppliers to the 2009 BMW X6 (Page 34) Automotive News - October 20, 2008 - GMAC's loan cutbacks cost GM thousands of auto sales (Page 35) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 36) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 37) Automotive News - October 20, 2008 - Tough times at Tesla (Page 38) Automotive News - October 20, 2008 - Tough times at Tesla (Page 39) Automotive News - October 20, 2008 - Tough times at Tesla (Page 40)
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