Automotive News - August 4, 2008 - (Page 28) 28 • AUGUST 4, 2008 GM Pricewise, Malibu can’t touch Tahoe continued from Page 1 Revenue shrinks GM’s second-quarter results showed sharp declines in North American and overall revenue. Q2 2008 Q2 2007 SUBARU Customer Incentives Cash rebate Finance rate Cash rebate Finance rate Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. CHRYSLER LLC Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Dodge Journey $1,000 – 2008 models Chrysler 300 (incl. SRT8 and C) $3,750-$4,500 0-5.9% Aspen $4,000 0% Sebring, PT Cruiser (excl. convertible) $1,250-$3,500 0-5.9% Town & Country $2,000-$3,000 0-5.9% Pacifica, PT Cruiser convertible $1,000-$2,500 0-5.9% Dodge Ram 1500 $5,000-$6,000 0% Ram 2500/3500 $4,500 0-7.9% Durango $4,000 0% Charger, Magnum $1,500-$3,500 0-5.9% Grand Caravan $2,000-$3,000 0-5.9% Avenger, Dakota $1,500-$3,000 0-5.9% Caliber, Nitro $1,250-$1,750 0-5.9% Jeep Grand Cherokee $2,500-$5,500 0% Commander $3,500-$4,500 0% Patriot, Liberty $1,500-$2,000 0-5.9% Compass, Wrangler $500-$750 0-5.9% 2007 models Chrysler Aspen, 300 C, Pacifica $0-$5,500 – Town & Country $4,500-$5,000 – Sebring, 300 (excl. SRT8 and C) $0-$4,500 – PT Cruiser $2,500-$3,500 – Dodge Ram 2500/3500, Ram 1500 $0-$8,500 – Durango $0-$6,000 – Grand Caravan, Dakota $0-$5,000 – Magnum, Charger $0-$4,500 – Caravan, Nitro $0-$4,000 – Caliber $0-$1,000 – Jeep Commander $0-$6,500 – Grand Cherokee $0-$6,000 – Liberty $0-$5,500 – Compass, Patriot $0-$2,500 – data from the Power Information Network. That’s what consumers paid for the vehicle July 1-27. By contrast, the Chevrolet Silverado 1500 pickup sells for $26,326, and the Chevrolet Tahoe averages $38,264. So even a fully loaded Malibu can’t touch a Tahoe. N. American revenue Total revenue Adjusted net income Reported net income $19.82 billion $38.15 billion –$6.34 billion –$15.47 billion $29.66 billion $46.67 billion $1.30 billion $784 million NISSAN NORTH AMERICA Expires Sept. 30. In lieu of rebates, cut-rate financing is available. 2009 models Nissan Armada $3,000 2.9% Titan $2,500 2.9-3.9% Versa $500 3.9% 2008 models Infiniti FX35, FX45, EX35, Q56 – 0% G35, G37 – 1.9% M35, M45 – 0.9-1.9% Nissan Armada, Titan $4,500-$5,000 0-1.9% Quest $3,500 1.9% Xterra $3,000 0.9% Maxima, Pathfinder $2,500 1.9-3.9% Frontier $1,750-$2,500 0.9-2.9% Sentra $1,500 3.9% Altima $500-$1,250 3.9% Versa $800 2.9% Altima Hybrid, Rogue $500 3.9% 350Z – 1.9-2.9% More cars But GM doesn’t have much choice. CEO Rick Wagoner has declared that the consumer shift away from big trucks is permanent, and his product plans reflect that. Over the next year and a half, GM says it will introduce 19 new vehicles, 18 of which are either cars or crossovers. The first one to come will be the Chevrolet Traverse crossover next month. In 2011, Chevrolet will add a minicar, and GM is considering small cars for its Saab, Cadillac and Saturn brands. The highest-profile car in GM’s future is the Chevrolet Volt, a plug-in hybrid that will debut in 2010. But this compact sedan will carry a hefty price tag approaching $40,000, so it may be fated to remain a small-volume niche vehicle. In his conference call with reporters and analysts last week, CFO Ray Young said he is confident GM can stabilize its cash flow. In June, GM disclosed plans to close four truck plants by 2010, and reduce an- nual truck production capacity by 500,000 units. All these cost-cutting moves will conserve precious cash. But Young added: “Ultimately we’re going to have to grow the business.” While the full-sized pickup market will rebound, it will never return to its former glory, says Jim Hall, a former GM employee and managing director of 2953 Analytics, a consulting firm in suburban Detroit. Hall and Cole say GM can survive, provided the economy doesn’t crumble between now and 2010. Says Cole: “If we don’t have a recovery in the next year or so, then we’re really in trouble.”c SUBARU Expires Aug. 4. In lieu of rebates, cut-rate financing is available. 2008 models Forester, Legacy, Tribeca $0-$2,500 0-4.9% Outback $1,000-$1,750 0-4.9% Impreza – 0-4.9% SUZUKI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2008 models Grand Vitara, XL7 $0-$3,000 0-3.9% SX4 $750-$1,500 1.9-6.9% Reno, Forenza $500 3.9-6.9% TOYOTA MOTOR SALES Expires Sept. 2. 2009 models Lexus RX 350 – 2.9-3.9% VW GROUP OF AMERICA Expires Sept. 2. 2009 models Volkswagen Eos, GTI, Passat, Rabbit, Tiguan 2008 models Audi A6, A8, Q7, RS4, S4, S8 A3, A4, TT R8 Volkswagen New Beetle convertible, GTI Touareg 2, GLI, Jetta, New Beetle sedan, Rabbit, Eos, R32 Passat GENERAL MOTORS Expires Aug. 19. In lieu of rebates, cut-rate financing is available. 2009 models Cadillac CTS – 1.9-6.9% Escalade – 6.9% Chevrolet Aveo, HHR, Avalanche, Cobalt, Colorado, Equinox, Malibu, Suburban, Tahoe – 6.9% GMC Acadia, Yukon, Yukon XL – 6.9% Hummer H3 $3,500 6.9-7.9% H2 $2,500 6.9-7.9% H3T $1,500 1.9-4.9% Pontiac Vibe $500 5.9-6.9% G6, G8, Solstice, Torrent – 6.9% Saturn Sky, Outlook, Aura – 6.9% 2008 models Buick Lucerne, LaCrosse $1,000 5.9-6.9% Enclave – 5.9-6.9% Cadillac DTS, XLR $4,000 0-4.9% Escalade, SRX, STS $3,000-$3,500 0-4.9% – 0-4.9% CTS Chevrolet Silverado 1500, Avalanche, Suburban, Tahoe $0-$2,000 0-6.9% TrailBlazer $2,000 1.9-5.9% Express cargo, Tahoe Hybrid $1,500-$2,000 2.9-6.9% Equinox, Express, HHR, Silverado 2500HD, Silverado 3500HD $1,500 2.9-6.9% Colorado $0-$1,500 3.9-6.9% Impala $1,000 2.9-6.9% $1,000 5.9-6.9% Cobalt, Malibu Aveo $500 5.9-6.9% Corvette – 0-6.9% Uplander – 5.9-6.9% GMC Sierra 1500 $1,500-$2,000 0-6.9% Envoy, Yukon, Yukon Hybrid, Yukon XL $2,000 0-6.9% Savana cargo $1,500-$2,000 2.9-6.9% Canyon, Sierra 2500HD, Sierra 3500HD $0-$1,500 3.9-6.9% Savana $1,500 2.9-6.9% Acadia $500 5.9-6.9% Hummer H2, H3 $7,000-$8,000 0% Pontiac Grand Prix $2,000 2.9-6.9% Torrent $1,500 3.9-6.9% G5, Solstice, Vibe $1,000 5.9-6.9% G6, G8 $500-$1,000 2.9-6.9% Saab 9-3, 9-5, 9-7X – 5.9-7.9% Saturn Aura, Sky, Vue (excl. hybrid) $500-$1,500 0-6.9% Outlook $500 5.9-6.9% 3.9-5.9% 0.9% 0.9-2.9% 5.9% 0% 0-2.9% 0-3.9% Sales of Chrysler's once-hot 300 fell 57.6 percent in July. VOLVO Expires Sept. 30. 2008 models S80, XC90 S60, V70, XC70 C70, S40, V50 C30 – – – – 0-3.9% 4.9% 5.9% 6.9% SALES Nissan was the only gainer among Big 6 continued from Page 1 2008, Chrysler had an operating profit of $1.1 billion, and its cash on hand as of June 30 was $11.7 billion, Press said. ‘Dancing on the sun’ “We’d like to be judged as a company on how well we do when we’re under pressure,” he said. “The hardest steel comes from the hottest fire. We’re dancing on the sun.” Because Chrysler is privately owned, details of how the company arrived at the $1.1 billion figure are not subject to public scrutiny. Chrysler Financial’s announcement on July 25 that it was ending consumer vehicle leases by Aug. 1 triggered a rush of last-minute shopping that helped many dealers. “In the last three days we (leased) more than 300 cars,” Bill Golling, owner-president of Golling Chrysler Jeep and Dodge in suburban Detroit, said on Thursday, July 31, the final bringing the first seven months down 10.5 percent to 8.55 million units. Toyota Motor Sales U.S.A. Inc., Ford Motor Co. and Mazda Motor Corp. joined GM and Chrysler LLC in posting double-digit losses in July. American Honda fell 1.6 percent. Nissan North America fared best among the top six automakers with an 8.5 percent gain. During a conference call, Chrysler tried to counter what co-President Jim Press called “a lot of false speculation” about the health of the automaker. For the first time since it became a privately held company, Chrysler revealed financial results. Through the first six months of day of leasing. Golling said he typically leases about 125 cars per week. George Fetsco, owner-president of nearby Rochester Hills (Mich.) Chrysler Dodge, said: “Since this was announced, we’ve done about 40 (leases) a day, and we normally run eight to 10 a day. But it’s front-loading a lot of business.” In June, the number of online product inquiries on major automotive Web sites fell to the company’s second-lowest monthly level since 2003, said Compete.com, an automotive research company. Hal Wurster, automotive managing director for Compete.com, said: “The negative word on the street regarding the state of Chrysler and other Detroit manufacturers seems to be keeping the serious shoppers away.” c Nancy Kaffer of Crain’s Detroit Business 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 Sept. 2. 2008 models 7 series, M, Z4 $2,500-$5,000 GENERAL MOTORS Expires Aug. 19. 2009 models Cadillac SRX, STS, XLR Escalade (all) 2008 models Saab 9-7X 9-5 9-3 $1,500 $1,000 $4,500 $3,500 $3,000 AMERICAN HONDA MOTOR CO. Expires Sept. 2. 2008 models Acura MDX, RDX, TL, TSX Honda Pilot, Ridgeline Element, Odyssey $1,000-$2,500 $4,000-$4,500 $1,500-$2,500 LAND ROVER Expires Sept. 30. 2008 models LR3, Range Rover LR2, Range Rover Sport $3,000-$6,000 $1,500-$4,000 NISSAN Canton plant skips buyouts for now continued from Page 3 for now. Preparations for manufacturing light commercial vehicles are under way, he said. Toyota: Train and improve Nissan isn’t the only one suffering. Last month, Toyota Motor Corp. said it will suspend production of the fullsized Tundra pickup and Sequoia SUV for three months beginning in August. But rather than offer buyouts or lay off workers at the San Antonio and Princeton, Ind., factories where the Tundra and Sequoia are made, Toyota will use the downtime to train workers and improve operations. “We have a long-term view, about the Tundra especially,” says Mike Goss, spokesman for Toyota Motor Engineering & Manufacturing North America Inc. “So we don’t want to make knee-jerk decisions that we might regret later. We want to weather the storm the best we can. We think we can come out o http://Edmunds.com
Table of Contents Feed for the Digital Edition of Automotive News - August 4, 2008 Automotive News - August 4, 2008 Losing leases: It hurts already Crisis at Chrysler: Buyers bail GM's really bad news: Its revenue Lincoln reworks bonus plan for dealers Pain spreads beyond Detroit: Nissan offers employee buyouts Mitsubishi changes dealer advisory board GM repeats employee discount program Ford merges brands' sales, marketing After 5 funky years, Toyota's Scion now finds itself in a funk It's a body, er, a bus by Fisher At Tech Center, form follows function Industry nemesis again turns up heat on climate Right products, diverse customers raise suppliers' profits Last-minute leases swamp Chrysler With leases off the table, Chrysler offers new sales incentives GM favors 4 endorsed vendors of dealer management systems GKN to supply F-150 FX4's differential For sale: 2 Metaldyne plants 1 week's notice: Chrysler dealers deserved better Get used to the roller coaster That 1934 Reo had a clutch pedal We sell what the public wants Decision makers can't use hindsight Detroit's truck trauma is self-inflicted Why won't consumers buy Detroit cars? Speaking of ads, don't overlook VW Software helps dealers manage parts Service survey: Customer satisfaction rises Researcher: Vehicles can prevent crashes Personnel Microsoft will offer Live Search Dealers Picture This Nissan offers buyouts to its Tenn. workers Lincoln-Mercury exec joins Kia Kaline out at Ford Penske earnings drop slightly Asbury will move; profits slip S&P downgrades American Axle Best sales news: July is over Now THAT'S resale value ... Sirius-XM satellite radio deal: A mixed bag Don't be misled by Chery's sales; it's a key player McCurdy applies some political (tire) pressure A star is born: The saga of the shrinking sticker Our flag is still there Obama-mobile? Or McCain-carrier? Automotive News - August 4, 2008 Automotive News - August 4, 2008 - (Page Intro) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 1) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 2) Automotive News - August 4, 2008 - Ford merges brands' sales, marketing (Page 3) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 4) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 5) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 6) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 7) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 8) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 9) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 10) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 11) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 12) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 13) Automotive News - August 4, 2008 - Speaking of ads, don't overlook VW (Page 14) Automotive News - August 4, 2008 - Service survey: Customer satisfaction rises (Page 15) Automotive News - August 4, 2008 - Personnel (Page 16) Automotive News - August 4, 2008 - Dealers (Page 17) Automotive News - August 4, 2008 - Dealers (Page 18) Automotive News - August 4, 2008 - Picture This (Page 19) Automotive News - August 4, 2008 - Picture This (Page 20) Automotive News - August 4, 2008 - Picture This (Page 21) Automotive News - August 4, 2008 - Picture This (Page 22) Automotive News - August 4, 2008 - Picture This (Page 23) Automotive News - August 4, 2008 - Nissan offers buyouts to its Tenn. workers (Page 24) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 25) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 26) Automotive News - August 4, 2008 - Best sales news: July is over (Page 27) Automotive News - August 4, 2008 - Best sales news: July is over (Page 28) Automotive News - August 4, 2008 - Best sales news: July is over (Page 29) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 30) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 31) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 32)
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