Automotive News - October 6, 2008 - (Page 44) 44 • OCTOBER 6, 2008 Toyota battles Detroit 3 with cheap loans Stories about these companies are on these pages: AI23 Systems 3 Acura 14, 17, 26 Alfa Romeo 22, 23, 26 Alphera Financial Services 4 American Suzuki Financial 44 Aston Martin 8, 22, 28, 30, 31 Audi 6, 10, 12, 14, 22, 30, 32, 33, 41 Bank of America 1 Bentley 23, 26 Bill Heard Enterprises 4, 46 BMW 8, 22, 23, 26, 30, 32, 33, 41, 44 Cadillac 12, 14, 16, 33, 44 CarMax 44 Cerberus 44, 46 Chevrolet 3, 6, 14, 16, 33, 41, 42, 44 Chrysler 3, 4, 6, 14, 20, 32, 41, 44, 46 Chrysler Financial 1, 4 Daimler 3, 33, 41, 46 Dodge 20, 44 Ferrari 26 Fiat 23, 26 Ford 1, 4, 14, 16, 26, 31, 33, 41, 44, 46 Ford Credit 1 Freightliner Custom Chassis 17 GM 1, 3, 4, 6, 12, 14, 33, 41, 44, 46 GMAC 1, 4, 44 GMC 3, 33 Heuliez 3 Honda 8, 14, 17, 23 Hummer 31, 41 Hyundai-Kia 41 Jaguar 23, 33 Jaguar Land Rover 43 Jeep 20 Johnson Controls-Saft 32 Kia 43 Lagonda 31 Lamborghini 8, 28, 31 Land Rover 26, 33 Lexus 30, 42 Lincoln Mercury 16 Magna 3 Magna Steyr 31, 32 Maserati 23, 26 Maybach 26, 33 Mazda 16, 26, 44 McClaren Group 32 Mercedes-Benz 8, 12, 22, 23, 28, 30, 32, 33, 44 Mini 8, 32 Mitsubishi 3, 44 Nissan 3, 41, 46 Nissan Motor Acceptance 43 Nuvell 43, 44 Opel 6, 12 Porsche 8, 10, 22, 23, 28, 30, 31, 44 Prodrive 31 Regions Bank 43 Renault 46 Rolls-Royce 22, 26, 30 Saab 16, 22, 33, 41 Smart 3, 6, 8, 41 Subaru 3 Suzuki 43, 44 Tata 33, 44 Toyota 6, 8, 10, 23, 41, 44, 46 Toyota Financial Services 44 Volkswagen 3, 6, 8, 10, 14, 22, 23, 30, 32, 41, 44, 46 Volvo 6, 22, 26, 33 Wells Fargo 1 Zag 17 ZF Friedrichshafen 26 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 BMW Expires Oct. 31. 2008 models M5, M6 3 series, 5 series, 6 series 1 series, M3, X5 7 series, X3, Z4, Z4 M – 0.9% – 0.9-4.9% – 1.9-2.9% – 3.9% Hans Greimel hgreimel@crain.com TO COMPANIES TOKYO — As consumers struggled with tight credit, Toyota Motor Sales U.S.A. last week started offering nointerest loans on 11 models. The incentives are a direct challenge to the financially struggling Detroit 3, which can ill afford an incentive war with Toyota. General Motors launched no-interest loans Oct. 1. “Dealer traffic is decreasing,” Toyota spokesman Hideki Homma said here last week. “We needed to promptly do something.” Analysts said Toyota is in a better position to pay for the incentives than its money-losing Detroit rivals. “This is a great marketing ploy when people think there’s no credit out there,” said Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets. “I don’t think the costs to Toyota will be that great.” Plummeting sales Jim Press, former president of Toyota Motor North America Inc., said at the Paris auto show: “Toyota’s doing what they do best. They’re going to increase share when everyone is struggling.” Press is now co-president of Chrysler LLC. Japan’s biggest carmaker saw a 32.3 percent drop in U.S. sales last month. Toyota’s offer runs through Nov. 3 and will cover loans from 36 to 60 months, depending on the model. The qualifying nameplates are the Camry, Corolla, FJ Cruiser, 4Runner, Highlander, Matrix, RAV4, Sienna, Sequoia, Tacoma and Tundra. “We gotta try something,’’ says China Arbuckle, general sales manager of Bill Page Toyota in Falls Church, Va. She said consumers are wary be- cause lenders are offering loans only to the most creditworthy customers. “We can’t just sit here and do nothing,” she said. Toyota reduced output in the United States in September to match falling demand. It produced 110,726 vehicles in the United States last month, down 15.8 percent from September 2007. Although Toyota offers 0 percent loans on the Tundra, it says it will resist a sales war with the Detroit 3 over full-sized trucks. Jim Lentz, president of Toyota Motor Sales, said at the Paris auto show: “I don’t want to get stuck in the middle of Ford and Chevy battling for the No. 1 truck this year, and Dodge launching the Ram.” Toyota had hoped to sell around 20,000 Tundras a month this year; September sales were just 7,696 units. The automaker stopped all Tundra and Sequoia production on Aug. 8. It is scheduled to resume in November. CHRYSLER LLC Expires Oct. 31. In lieu of rebates, cut-rate financing is available. 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% Grand Caravan $2,500-$3,500 0-7.9% Dakota $2,000-$3,000 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% GMC Savana cargo $1,500-$2,000 5.9-6.9% Savana $1,500 5.9-6.9% Acadia, Canyon, Envoy, Sierra 1500, Sierra 2500HD/3500HD, Yukon, Yukon XL – 0-6.9% Yukon Hybrid – 5.9-6.9% Hummer H2, H2 SUT $7,000 0-7.9% H3 $5,000 0-7.9% Pontiac G5, G6, G8, Grand Prix, Solstice, Torrent, Vibe – 0-6.9% Saab 9-7X $4,500 0-5.9% 9-5 $3,500 0-5.9% 9-3 $3,000 0-5.9% Saturn Aura, Outlook, Sky, Vue – 0-6.9% 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 $0-$1,000 0-4.9% Sienna, Tacoma $0-$500 0-2.9% 2008 models Toyota Tundra $0-$5,000 0-1.9% 4Runner $2,500-$3,500 0-0.9% Sequoia $0-$3,000 0% Sienna $0-$2,000 0% Tacoma $0-$2,000 – Highlander $0-$1,500 0-2.9% RAV4 $0-$1,000 0-2.9% Avalon $0-$1,000 1.9-4.9% Camry Solara $0-$1,000 3.9-4.9% FJ Cruiser – 0-4.9% 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% 2008 models Ford F-450 Super Duty $7,000 0-3.9% F-250 Super Duty, F-350 Super Duty $6,000-$7,000 0-3.9% F-150 $4,500-$7,000 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% Taurus X $3,000-$3,500 0-4.9% Econoline, Ranger $2,000-$3,000 0-1.9% Focus $1,500-$2,500 0-7.9% Escape Hybrid – 4.9-8.9% VW GROUP OF AMERICA Volkswagen expires Oct. 31; Audi expires Nov. 4. 2009 models Audi A3, A4, A8, 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, S8, TT, Q7 – 0.9% R8 – 6.09-7.39% Volkswagen New Beetle convertible, GTI, Touareg 2, Passat – 0% GLI, Jetta, New Beetle sedan, Rabbit, Eos, R32 – 0-2.9% Incentives for gas-savers Toyota’s inclusion of small cars such as the Corolla and Matrix in its 0 percent plan is a sign of the industry’s stress, says Junichi Yamaki, senior vice president for auto analysis at Moody’s Japan. Combined U.S. sales of the two small cars fell 27.9 percent in September despite high gasoline prices. Bob Carter, Toyota Division general manager, said: “We have the capacity through Toyota Financial Services to finance or lease them.” c Peter Brown, Mark Rechtin, Philip Nussel and Patricia Scott contributed to this report 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 M Z4 $7,500 $3,500 $2,500-$3,000 Suzuki seeks floorplan credit partner for dealers Kathy Jackson kjackson@crain.com GENERAL MOTORS Expires Nov. 3. In lieu of rebates, cut-rate financing is available. 2009 models Buick LaCrosse, Lucerne $1,000 6.9% Enclave $500 6.9% Cadillac CTS – 4.9-6.9% Chevrolet TrailBlazer $3,000 6.9% Avalanche, Impala, Suburban, Tahoe $1,000 6.9% Silverado 1500, Colorado $500-$1,000 6.9% Cobalt, Equinox, Express, HHR, Silverado 2500HD/3500HD $500 6.9% Aveo, Malibu, Traverse – 6.9% GMC Envoy $3,000 6.9% Yukon, Yukon XL $1,000 6.9% Sierra 1500, Canyon $500-$1,000 6.9% Acadia, Savana, Sierra 2500HD/3500HD $500 6.9% Yukon, Yukon XL, Envoy – 6.9% Hummer H3 $3,500 6.9-7.9% H2, H2 SUT $2,500 6.9-7.9% H3T $1,500 1.9-4.9% Pontiac G6 $500-$1,000 6.9% G5, Solstice, Vibe, Torrent $500 5.9-6.9% G8 – 6.9% Saturn Aura $500-$1,000 6.9% Outlook, Sky, Vue $500 6.9% 2008 models Buick Enclave, Lucerne, LaCrosse – 0-6.9% Cadillac DTS, XLR $4,000 0-5.9% STS $3,500 0-5.9% Escalade, SRX $3,000 0-5.9% CTS 0-5.9% Chevrolet Express cargo $1,500-$2,000 5.9-6.9% Express $1,500 5.9-6.9% Avalanche, Aveo, Cobalt, Colorado, Corvette, Equinox, HHR, Impala, Malibu, Silverado 1500, Silverado 2500HD/3500HD, Suburban, Tahoe, TrailBlazer, Uplander – 0-6.9% CHRYSLER LLC Expires Oct. 31. 2008 models Chrysler PT Cruiser $0-$4,000 Pacifica $0-$2,000 Town & Country, 300 $0-$400 Dodge Ram 2500/3500 $0-$4,000 Ram 1500 $0-$3,500 Avenger, Caliber, Charger, Dakota, Durango, Magnum, Nitro, Grand Caravan $400 Jeep Commander, Compass, Grand Cherokee, Liberty, Patriot, Wrangler $400 As lenders cut back on floorplan credit, American Suzuki Motor Corp. is making an urgent priority of helping its dealers get financing for their vehicle inventories. Suzuki’s 480 U.S. dealers now must arrange their own inventory financing. Gary Akin, Suzuki’s vice president of sales, says the company is seeking a floorplan credit partner for its retail network. He declined to identify lenders with whom Suzuki is talking. “It gets tighter every week,” Akin told Automotive News. “It’s not just new cars — dealers floor used cars, too,” he says. “We ha http://www.Edmunds.com
Table of Contents Feed for the Digital Edition of Automotive News - October 6, 2008 Automotive News - October 6, 2008 Many dealers floored by floorplan limits, costs THE GREAT COLLAPSE September was awful, and 2009 looks ugly GMAC is out of leasing — at least for now Versical, Nussel take new Automotive News posts GM to shut Ohio SUV plant 2 years ahead of plan VW commits to minority purchasing goals in Tenn. Chrysler exec to outline EV strategy at green conference Automakers are high on electrics Dealers give mixed reactions to Chrysler incentive program Chrysler boosts 2009 vehicle prices Lenders move fast to liquidate Heard's stores Mazda Kiyora Toyota, Audi mull tiny cars for U.S. Audi to decide next year on U.S. production Volvo plans diesel hybrid by 2012 Coupelike styling is back in a big way Honda Insight target price: Around $19,000 Mercedes plans U.S. sales of hybrids in S, E, C classes BMW is working on 2 small crossovers VW-Porsche feud risks growth plans Let's get clunkers off the road and spur the economy Europe: Still very different from us It could improve Caddy's image Shouldn't Cadillac try something new? A 4-cylinder is just what Cadillac needs Government's a player in Europe, too The Chevy Cruze should be big news Simple steps would revive industry Ford stops buying nonessential factory supplies Chevy, Mazda execs to speak at congress Automakers find India tough market to conquer Mahle CEO: Most engines will be smaller by 2012 GM begins streamlining purchasing TL stretches factory's flexibility Personnel Study: Dealers gain on independent shops Chrysler offers service contracts on certified vehicles No label Flashes of genius, years of turmoil VW seeks excitement with Routan, CC, Rabbit Sales soft, but Europeans plan to expand lineups 2010 redesign planned for Bentley flagship Alfa beyond Competizione Ferrari: Recession-proof and turning ... green? Maserati: Sporty gets even sportier Uncertainty surrounds Volvo's product plan Rolls-Royce goal: Add customers Panamera: Can Porsche defy skeptics again? Audi longs to join luxury big-leaguers in U.S. BMW plans more variants beyond sedans, wagons Under new owner, Aston Martin back in the race Lagonda's forte: Luxurious sedans that go very fast Couped-up? Lamborghini considers a sedan 250-mph Bugatti boosts the excitement Mercedes returns to the luxury suite Mini follows BMW's lead Smart ambitions, like car, remain small Suppliers cut staff, output to cope with downturn Driver monitoring systems differ High-tech mirrors are poised to make big gains IAC will open first India plant Supplier personnel Engineers call for common electric car standards Land Rover aims to boost the fuel economy of its SUVs Maybach adds open-top 62S Landaulet Saab gets a crossover in 2009; everything else is on hold Jaguar regains its focus on low volume, high end Dealers Economic winds batter Sept. sales Jaguar Land Rover joins group Ford aids minority suppliers CarMax plans 600 job cuts Ruling could ease disputes Feds seek more time for roof strength rule Suzuki seeks floorplan credit partner for dealers Toyota battles Detroit 3 with cheap loans $25 billion: How'd they do that? Peapod: Innovator's little big idea FOR SALE: Heard condos, mansion, jet Is film a flash in the pan? Ford hopes so VW: Next New Beetle will be 'more mature' Renault's U.S. ally of choice? Probably not Chrysler Automotive News - October 6, 2008 Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 1) Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 2) Automotive News - October 6, 2008 - Automakers are high on electrics (Page 3) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 4) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 5) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 6) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 7) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 8) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 9) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 10) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 11) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 12) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 13) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 14) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 15) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-1) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-2) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-3) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-4) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-5) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-6) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16A) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16B) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16C) Automotive News - October 6, 2008 - GM begins streamlining purchasing (Page 16D) Automotive News - October 6, 2008 - Personnel (Page 17) Automotive News - October 6, 2008 - Personnel (Page 18) Automotive News - October 6, 2008 - Personnel (Page 19) Automotive News - October 6, 2008 - Chrysler offers service contracts on certified vehicles (Page 20) Automotive News - October 6, 2008 - Flashes of genius, years of turmoil (Page 21) Automotive News - October 6, 2008 - Sales soft, but Europeans plan to expand lineups (Page 22) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 23) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 24) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 25) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 26) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 27) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 28) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 29) Automotive News - October 6, 2008 - BMW plans more variants beyond sedans, wagons (Page 30) Automotive News - October 6, 2008 - Couped-up? Lamborghini considers a sedan (Page 31) Automotive News - October 6, 2008 - Smart ambitions, like car, remain small (Page 32) Automotive News - October 6, 2008 - Suppliers cut staff, output to cope with downturn (Page 32A) Automotive News - October 6, 2008 - Driver monitoring systems differ (Page 32B) Automotive News - October 6, 2008 - High-tech mirrors are poised to make big gains (Page 32C) Automotive News - October 6, 2008 - Engineers call for common electric car standards (Page 32D) Automotive News - October 6, 2008 - Jaguar regains its focus on low volume, high end (Page 33) Automotive News - October 6, 2008 - Dealers (Page 34) Automotive News - October 6, 2008 - Dealers (Page 35) Automotive News - October 6, 2008 - Dealers (Page 36) Automotive News - October 6, 2008 - Dealers (Page 37) Automotive News - October 6, 2008 - Dealers (Page 38) Automotive News - October 6, 2008 - Dealers (Page 39) Automotive News - October 6, 2008 - Dealers (Page 40) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 41) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 42) Automotive News - October 6, 2008 - Feds seek more time for roof strength rule (Page 43) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 44) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 45) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 46) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 47) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 48)
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