"That’s when autos reporter Micheline Maynard corrects Obama's statement that, " nation that invented the automobile cannot walk away from it." She points out, "The automobile was NOT invented in the U.S."
Hyundai motor is on roll in the market of United States of America. IntelliChoice which tracks automotive ownership data has opted Hyundai’s Sonata sedan as one of its “2009 Best Overall Values of the year.” Hyundai has also got third rank as having Americas best certified pre-owned program.
In the list of 10 best used cars which are available under US $ 10,000, Hyundai’s Tucson, Grandeur XG, and Santa Fe models were listed in the 10 best used cars which are available under US $ 10,000. And it was done by the automotive retail site known as Cars.com. Hyundai Genesis luxury sedan also recently got the car of the year award givrn by a panel of automotive journalists.
President Barack Obama pledged last night to hold U.S. automakers responsible for the bad practices but vowed to help out in making a retooled, re-imagined auto industry. In the comments which were prepared for the delivery to a joint session of Congress, Obama gave an abstemious assessment of the nation’s ills significantly the economic but he stated that they’ll reconstruct and recover and U.S. will emerge stronger than before in the market.
Obama stated the comment which he prepared through the speech regarding the midway “as for our auto industry, everyone identifies that years of bad decision-making and a world recession have pushed our automakers to the edge. We ought to not, and will not, protect them from their own awful practices. “
He also stated that automakers are devoted to the objective of a re-tooled, re-imagined auto industry that will compete and win. Numerous of jobs rely on it. Scores of communities rely on it. And he believes the nation that invented the automobile cannot walk out from it.
Toyota Motor Corp. is bringing back Yoshi Inaba, the former U.S. sales chief who left the automaker to run an airport. His return will be approved at the annual shareholders meeting in June, spokesman Irv Miller said today.
That meeting also will approve Akio Toyoda, grandson of the company's founder, as Toyota's new president. He is expected to shake up the automaker's management ranks as the company struggles to cope with its first operating loss in 71 years.
Inaba's job assignment isn't known yet, Miller said. Inaba, who spent two tours of duty in the United States before heading North American operations out of Japan, will "oversee some North American projects," Bloomberg News reported, citing spokeswoman Ririko Takeuchi.
Toyota's sales of Toyota, Lexus and Scion vehicles in the United States fell 15.4 percent in 2008 to 2,217,660. They tumbled 31.7 percent in January.
Toyota has been hurt by the general market meltdown in North America, as well as an ill-timed push into full-sized pickups. A surging yen has slashed profits on its North American sales as well.
Inaba, 62, was CEO of Toyota Motor Sales U.S.A. Inc. from 1999 to 2003. While CEO, he added the Scion line to Toyota's lineup. From 2003, he oversaw North American operations from headquarters in Toyota City for several years before taking charge of Toyota's China operations.
He left in 2007 to run an international airport in Nagoya, Japan, near Toyota's headquarters. Inaba's return to Toyota became public knowledge after the airport announced his successor.
src:http://www.autonews.com/apps/pbcs.dll/article?AID=/20090220/ANA02/902209967/1117
Statement of U.S. Transportation Secretary Ray LaHood On President Obama’s Signing of the American Recovery and Reinvestment Act
“Today President Obama kept faith with the American people. Less than one month after taking the oath of office, he signed the landmark American Recovery and Reinvestment Act.
“I thank and congratulate President Barack Obama for this impressive and hard-won victory.
“This is the day America starts back. Resources to help America are now available. At the Department of Transportation we will make sure the transportation money in this law gets Americans to work quickly.
“Transportation is a great enabler of economic growth, the lifeblood of commerce. It moves people to jobs and goods to the marketplace. Without strong transportation arteries, economies stagnate.
“We will use the transportation funding in the Act to deliver jobs and restore our nation's economy. We will emphasize sustainable investment and focus our policies on the people, businesses and communities who use the transportation systems. And, we will focus on the quality of our environment. We will build and restore our transportation foundations until the American dream is returned.
“We will invest in jobs to expand transit capacity and modernize transit systems. Transit is a centerpiece of my focus on livable communities and our Department will work closely with Vice President Biden's "Middle-class Taskforce" on transit initiatives.
There many advantages to a possible Fiat-Chrysler alliance, one of which will be the ability to manufacture many Italian models- Fiat 500, for example North America and within the North America. Few recommend Fiat’s rebirth totally in the new world which might come in the courtesy of European factories.
Automotive reports tell us that First nuova fiats will be not in U.S. but will be built in Europe. This contrasts not only with fiats previous public statements that will re-enter the North American market but also with the rumored Fiat-Chrysler plans.
And the shipping cars will allow Fiat to vend both the Fiat 500 and an entry level Alfa Romeo by 2010 which was stated by the automotive reports. This would nevertheless just be a merely a short term solution and another appealing tidbit is that if the Fiat-Chrysler deal pans out a novel Alfa Romeo 169 sedan might be based on the upcoming surrogate for the Chrysler 300 and Dodge Charger.
Motor Co. decided to cut production in North America and Japan by other 50,000 vehicles to match quickly fall in demand. For the fiscal year the North American output was 1.264 million units ending in March 31st.
The company also stated on Jan27 that North American production cuts will have affect on Honda’s plants in Ohio, Alabama and Ontario. By 14,000 units Ohio will scale back the production where as Alabama and Ontario is by 6000 and 9,000. The cuts will come through the days which are not produced and the slowing down of the lines. And very vital thing to be noted is that Honda is not planning for any job cuts.
Honda makes the Civic, Element, and CR-V in the East Liberty, Ohio where as Honda makes the Odyssey, Pilot, Ridgeline and Accord in Lincoln, Ala and in Alliston, Ontario Honda manufactures the Civic, the Acura CSX, and MDX.
In the mean time in Japan the carmaker is cutting output by 21,000 units at its facility that manufactures minicars. This in turn brings the domestic production to 1.147 million units this financial year.
In order to reduce the production in North America, Toyota is employing additional measures at North American manufacturing plants. It’s also planning to implement few additional non-production days differing from plant to plant. At certain plants the company will also implement condensed work/pay weeks. At the affected plants, the production team members will work and will be paid for 72 hours rather than 80 hours at the time of the two-week pay period.
It also decided to reduce the production team member bonuses and executive pay and will also eradicate executive and salaried bonuses. For the team members who desire to follow further opportunities, Toyota decided to implement voluntary exit program.
Vice president of external affairs for Toyota Motor Engineering & Manufacturing North America by name Jim Wiseman stated that they’ve taken responsible in step by step actions in order to address this issue in latest months and they’re also hoping that the new measures will help them out in adjusting while protecting the jobs. He feels that this type of philosophy of sacrifice is the best approach for them and positively will make them as a stronger company in the long term.
President Barack Obama plans to appoint senior administration officials _ rather than a single "car czar," as had been discussed _ to oversee a restructuring of the auto industry. Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers will oversee the across-the-government panel, a senior administration official said on Sunday on the condition of anonymity because no announcement had been made. "The president understands the importance of this issue and also understands that the auto industry affects and is affected by a broad range of economic policies," the official said. As the teams move forward, Obama "wants to make sure that we're getting the expertise and input of agencies across the government," the official said.
Obama and his aides face difficult choices on the fate of the US auto industry, weighing the cost of pouring billions more into struggling companies against possible bankruptcies that could undermine plans to jump-start the economy.
General Motors Corp and Chrysler LLC are racing against a Tuesday deadline to submit plans to the government. The plans are to be followed by weeks of intense negotiations ahead of a March 31 deadline for the final versions of the reports.
GM and Chrysler are living off a combined $13.4 billion in government loans. If they don't receive concessions by March 31, they face the prospect of having the loans pulled, followed by bankruptcy proceedings.
Any bankruptcy would be particularly painful, with some economists predicting the country could lose 2 million to 3 million jobs this year and the unemployment rate, now 7.6 per cent, could swell past 9 per cent by the spring of 2010.
In television interviews on Sunday, White House senior adviser David Axelrod didn't respond directly when asked if the US economy could withstand a GM bankruptcy. Nor did he directly address a question about whether the Obama administration would let GM go into bankruptcy.
"I'm not going to prejudge anything. I think that there is going to have to be a restructuring of those companies. I'm not going to get into the mode of how that happens. We'll wait and see what they have to say on Tuesday," he told "Fox News on Sunday." Executives at the two automakers have said bankruptcy is not an option because consumers would not buy cars from a company that might go out of business.
"How that restructuring comes is something that has to be determined," Axelrod said. "But it's going to be something that's going to require sacrifice not just from the auto workers but also from creditors, from shareholders and the executives who run the company. And everyone's going to have to get together here to build companies that can compete in the future."
Enter the President's Task Force on Autos. That group will use officials from the departments of Treasury, Labor, Transportation, Commerce and Energy. Members of the National Economic Council, the White House Office of Energy and Environment, the Council of Economic Advisers and the Environmental Protection Agency will also be involved, according to the administration official. Obama also plans to name restructuring expert Ron Bloom a senior adviser to Geithner. He will not be the "car czar" pointman many labor and business leaders expected. Bloom, a former consultant to the United Steelworkers of America, will be doing much of the financial analysis for the administration.
Geithner is expected to be the only Cabinet secretary to be part of the panel, the senior administration official said. Deputy secretaries, however, would be involved.
Obama "felt it was important to have the treasury secretary as his official designee to oversee these loans," the senior administration official said.
The terms of the federal loans set "targets" for concessions, largely from debt-holders and the United Auto Workers union, but concession talks have made little progress with just a couple days left before the initial deadline.
Negotiations between GM and the UAW broke off Friday night but resumed Sunday, still focusing on exchanging the company's cash payments into a union-run retiree health care trust for GM stock, according to a person briefed on the talks who didn't want to be identified because the bargaining is private.
GM and UAW officials declined comment.
GM and Chrysler don't need to have everything nailed down for Tuesday's progress reports, but the companies are expected to detail concessions along with plant closures, the potential elimination of brands and thousands of job cuts.
Axelrod wouldn't say whether the administration would offer the auto industry more bailout money. GM already has borrowed $9.4 billion to stay in business, and it would receive an addition $4 billion if the Treasury Department approves its viability plan. Chrysler wants $3 billion more on top of the $4 billion it has already borrowed.
"We need to see what it is that they come up with this week," Axelrod said.
SRC:http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=NLetter&id=0cbb3526-ff8e-46d3-9d58-150dc851b9b8&MatchID1=4924&TeamID1=4&TeamID2=2&MatchType1=1&SeriesID1=1244&PrimaryID=4924&Headline=Obama+to+appoint+panel+for+auto+recovery
Canada is well-positioned to take advantage of moves by auto makers to bring electric vehicles and other fuel-efficient technologies to market, say analysts who have studied these developments.
The opportunities for Canada are exemplified by Ford Motor Co.'s partnership with Canadian auto parts manufacturer Magna International to produce a fully electric car that goes up to 160 kilometres on a single charge.
Magna officials say the partnership will create jobs at Magna, and there are more opportunities out there.
Bill Pochiluk, president of industry adviser AutomotiveCompass LLC, has said Canada has all the resources it needs to be a global leader in green automotive technology. Canadian governments can help by funding more research and development.
The United States has already put in place a $25-billion (U.S.) fund for research and development of green automotive technology. Canada only invests $500,000 annually.
Opportunities for Canada exist in developing lightweight aluminum components that help improve fuel efficiency of gasoline vehicles and extend the range of electric and hybrid ones. Federal organizations such as the National Research Council have a role to play in funding the development of these sorts of green vehicle technologies, say advocates.
There is much at stake. One in every 20 new cars sold in Canada could be electrically powered within a decade, say members of a task force on the future of plug-in vehicles.
The group was set up by the federal government last winter to design Canada's Electric Vehicle and Technology Road Map for shifting the transportation industry away from fossil fuels.
"It's going to be an electric vehicle revolution," says Michael Elwood, chairperson of the task force and vice-president of marketing at Vancouver-based Azure Dynamics, which specializes in electric and hybrid electric drive technology.
"Hybrid electric, plug-in hybrid electric and electric vehicles are all part of the equation," he says.
If one in 20 new cars sold in Canada is electric — 5 per cent of the market — about 80,000 electric vehicles would be sold each year, based on current sales volumes.
"Electricity may be the only fuel for land transportation that can substantially replace oil products while continuing to provide for the amount of movement of people and freight that is essential for modern society," says the report.
"Oil products now fuel 95 per cent of world transport activity and transport activity consumes 60 per cent of oil production. Both shares are higher in Canada. The need to reduce demand for oil, to avert scarcity and high prices is gathering urgency."
Auto manufacturers are, of course, moving ahead with hybrid and electric technologies in their new models. But the success of electrics and hybrids is contingent on consumer demand, fuel prices and, perhaps above all, research and development funding.
At present, auto companies, even ones with a relatively strong balance sheet and a pristine credit rating, are finding it impossible to get the financing needed to develop the batteries and other technologies that will make clean electric cars safe, reliable, practical and affordable.
"If we want to transform this industry, in a radical way, we are going to need a lot of investment," says Nissan CEO Carlos Ghosn. "You cannot take an existing car and retrofit it and say, 'It's electric.' You have to start from zero.
"If we are serious about transforming the industry into something that's as clean as possible, [governments] have to make long-term financing available at a reasonable interest rate."
Ghosn adds that "even Triple-A companies" are having problems getting financing simply for operations.
"The industry today is unable to finance itself to make the transition. But when you are investing massively in batteries, when the financial market doesn't care about it, it is impossible. Who is struggling is not the issue. This is not a Big Three issue. It is valid for Europeans. It is valid for the Japanese," Ghosn said.
Ghosn and others say the industry is in the early stages of a revolutionary change in technology — from internal combustion engines that have dominated for a century to electric vehicles that most believe are the future. But research into creating more powerful, longer-lasting batteries is expensive, as is developing sufficient infrastructure for owners of electric vehicles to charge their vehicles.
Governor Deval Patrick emphasized at a news conference today that he has not decided yet whether to propose an increase in the state’s gas tax to address the state transportation system’s financing problems.
He said gas tax increases are just a few of the many options that he is discussing with his advisers.
“We haven’t landed in any particular place yet,” he said. “We don’t have a lot of decisions. ... We have a whole range of options on the table that are all from a menu intended to put our transportation network on a sustainable footing for the long term.”
The Globe reported today that Patrick is considering gas tax increases of 5 to 29 cents per gallon. The latter increase would raise the state’s rate to 52.5 cents per gallon, the highest in the nation.
Patrick also acknowledged he was interested in placing tolls on highways at the state’s borders and in open-road tolling, a method of imposing tolls without forcing cars to slow down, based on a chip installed in a vehicle inspection sticker.
Financial problems loom over both the Massachusetts Turnpike Authority and the MBTA. The governor and Legislature are working on plans to reform the system and solve the financial troubles.
“The choice that’s off the table is continuing to neglect this challenge,” Patrick said. “We have an enormous challenge in front of us, in terms of transportation and the sustainability of transportation over time.”Rick Wagoner who is the CEO of GM stated that GM’s reorganizing plan which is demanded by federal government is coming together. On a visit to Capitol Hill Wagoner told the reporters that they are making progress when it’s needed. He refused to tell any of the obstacles yet he stated that there are lots coming up and the time period is short.
Feasibility plans are to be submitted to the Treasury department by the GM and Chrysler LLC on Tuesday i.e. February 17th. Last December the Bush administration demanded the plans as a condition of pledging $17.4 billion in emergency loans to the automakers.
It has become difficult time for the Wagoner in adjusting the operations to the market realities as GM announced the work force and the salary cuts and also stated that they weren’t particularly designed to abide with the federal demands and also mentioned that the plan needs GM to ascertain the resource level which can be afforded by them.
The federal loans must be repaid incase the automakers plan don’t show any long-term feasibility which in turn leads the companies to bankruptcy. No modifications have been done in the conditions of the loans by the new Obama administration. Well Wagoner privately met many officials of Congressional Committees viz. Rep. Henry Waxman, D-Calif., chairman of the House Energy and Commerce Committee; Rep. Edward Markey, D-Mass., chairman of that panel's environmental subcommittee; and Sen. John Rockefeller, D-W.Va., chairman of the Senate Commerce Committee. They also met with Rep. Sander Levin, D-Mich.
And a spokesman of GM by name Greg stated that it was just courtesy calls without any agenda. To the automakers' future Waxman might be crucial. He is a person of national cap-and-trade program who fights and struggles for the climate change and also a sturdy proponent of state green house gas rules.In order to deal with fuel economy and climate change it requires national single standard probably the fuel economy program which is administered by the transport Department.
Wagoner stated that climate change was also one of the topics which have been discussed with the Waxman in his meeting. He praised the chance to sit down and obviously chairman was well informed on the issues and hence it was good to hear his views.
All American Auto Transport, a leading auto transport company, today released steps to avoid the current auto transport scams and finding a reliable auto transport company for your car shipping needs.
"There are several very important steps to take to avoid the current auto transport scams that are occurring. We have been receiving numerous calls from people who have fallen into the same trap and felt it was important to highlight what steps to take to avoid becoming another statistic," said Kelsey Hughes, founder of All American Auto Transport Inc.
"Do your homework," says Hughes. "Take a little time and look into the company you are about to trust with your car." He explained very often people call 4 or 5 companies and choose the company with the "cheapest rate" and never look into why they are cheap. "These 'great rates' often require a prepaid deposit, which for many, is where the scam starts." The company charges the deposit under the false pretense of "reserving space on a truck." In reality, they keep the money and look for a car carrier to take the car, sometimes without result. In some cases at the rate they quoted, they are unable to find an auto transport company willing to transport the car. Sadly, the $150 or $200 deposit is rarely returned.
Checking an established and unbiased website such as the Better Business Bureau (BBB) is one of the best ways to avoid this type of scam. "It takes 5 minutes to see the company has received 150 complaints in the last 36 months," says Hughes as he shows us several surprisingly bad companies with "F" ratings and hundreds of complaints on the BBB. He also showed us websites that are created and maintained by auto transport companies themselves. "My staff continually hears 'well this company has tons of amazing reviews on this site.' And while some of those reviews may be true, ANYONE can write them and there is no way to verify what is legitimate and what their secretary has been writing on her down time."
About All American Auto Transport:
American Auto Movers, Inc. has a large network of professional auto transporters to ensure a quick and smooth transport. For more information or a free car transport quote, call (800) CAR SHIPPING / (800) 227-7447 or visit www.aaat.com. At All American Auto Transport, customer satisfaction is our primary goal.
Contact:
All American Auto Transport, Inc.
800-227-7447
www.aaat.com
Two law firms has been retained by the U.S. government with broad bankruptcy know-how and the investment bank Rothschild to guide officials on the taxpayer-backed restructuring of General Motors and Chrysler LLC, a person with direct skill of work said. Last month U.S. Treasury hired New York law firm Cadwalader, Wickersham & Taft and will also deem a range of possibilities for striving automakers comprising the prospect of a bankruptcy funded by the U.S. government, the person said.
Cadwalader is coupled by Chicago-based law firm Sonnenschein, Nath & Rosenthal and Rothschild in running with U.S. officials as they prepare to assess turnaround plans being prepared by the two automakers, the person said.
A spokesperson for Sonnenschein in Los Angeles fortified that the company had been affianced to counsel Treasury on "continuing matters associated to the 2008-2009 growths within the U.S. automobile industry."
Melissa Anderson who is a spokeswoman told that the lawyers from Sonnenschein who are counseling the U.S. government are from the company’s capital markets which are based in New York. Representatives for Rothschild, GM, Chrysler and the U.S. Treasury were not able to reach immediately for the comment. Cadwalader didn’t have any comment.
GM and Chrysler executives have formerly ruled out a bankruptcy filing, saying that it would fast spin out of control into insolvency as buyers would be frightened away from buying novel cars and trucks from a ruin automaker. The sales of GM and Chrysler dropped by 50% in the previous month as the U.S. sales declined to the lowest monthly total in 27 years.
Few outside analysts had a dispute that without the risk of bankruptcy, the firms be short of the leverage that they require to take out profound concessions from bondowners and the UAW.
GM and Chrysler face a Feb. 17 deadline to submit updated restructuring plans to the U.S. government.
GM has been given $13.4 billion in emergency loans. Chrysler, which has a awaiting coalition with Italy's Fiat S.p.A., has been given $4 billion and is looking for another $3 billion.
Both firms have awaiting the end of March to display that they may be made "feasible" under the terms of a bailout approved in late December by the Bush management.
The Obama management has not yet chosen a "car czar" or other officials who would supervise the reform of the cash-strapped auto industry.
Further requests for aid remain pending. Ford Motor Co. has asked for a $9 billion line of credit if market situations get worse. Auto-parts providers have asked for more than $20 billion in government aid that would be either channeled through the car firms or loans that would given to them unswervingly.
Strong sales of the Sonata sedan and Santa Fe crossover helped out Hyundai stand with only two other brands in recording elevated U.S. sales in January when it’s compared with January 2008.
The other two gainers were Hyundai's sister brand, Kia, and Subaru.
Hyundai reported sales of 24,512 vehicles in January, a 14.3%augment over January 2008. Kia sales augmented up to 3.5 %. Merged, Hyundai and Kia were up 8.9% in a U.S. market that declined 37.1%.
The Sonata mid-sized sedan paved the way with sales of 8,508 units, up 85.5 % from 4,587 in the same month previous year. Hyundai sold 5,024 Santa Fes, up 35.2 % from 3,716 units previous year. Both on the whole car and light truck sales rose up.
Hyundai will start shipping the 2009 Santa Fe crossover to dealerships this following week. Production began last summer at Hyundai's Montgomery, Ala., plant, but delivery was belated as of a glut of 2008s. Strong inducements and publicity helped out the dealers move most of the 2008 units, says Dave Zuchowski, who is the sales chief at Hyundai Motor America.
Zuchowksi told that Hyundai’s new Assurance program which was launched in January offered a tremendous momentum. This makes their customers to return their novel vehicles if they are being terminated within a year. A group of journalists named Genesis Sedan as the ncar of the year and this too attracted the customer’s attention.
Zuchowski told that they would have been let down if their sales had been less than the sales of last January and added that he would like to be flat year by year though there is so much uncertainty in the market place.
Dick Colliver, who joined American Honda Motor Co. just as a huge sales kickback disgrace was intimidating the concern and who led Honda to reliable sales hit for a decade and a half, has stepped away as executive vice president of sales.
Colliver will become senior adviser to the concern effective April 1.
Reinstating Colliver as head of sales will be John Mendel, a previous Ford Motor Co. and Mazda executive who has been executive vice president of auto operations for American Honda ever since 2007.
Takashi Sekiguchi, who has been executive vice president of corporate affairs and product planning, reinstates Mendel as head of auto operations.
The changes come as Honda is anguishing the same sales challenges as other automakers. After 14 consecutive years of development in America, American Honda saw its sales decline 7.9 percent in 2008.
U.S. auto sales in January probable stayed at quarter-century lows for the fourth straight month, as stable demand at dealerships couldn't make up for falling deliveries to fleets.
Few surveys projected that January seasonally adjusted yearly sales rate of 10 million to 10.6 million cars and light trucks. General Motors forecasts a figure below 10 million, which would be the lowest as August 1982.
Analysts expect the largest Japanese automakers to charge better than the Detroit 3 when firms release sales totals tomorrow.
North American production levels that were two-thirds lower than last year's might trigger a 60% decline in fleet sales contrasted with a year earlier, said George Pipas, Ford Motor Co.'s sales analyst.
At best, the sales rate will be around 10.3 million, Pipas said. The vend rate will be in line with current months -- about 8.3 million units. Descending fleet sales "most likely" will drag demand below a 10 million annual rate, he said.
Pain spread around
GM's projection of a January sales rate below 10 million stems completely from decreases in fleet sales, Mike DiGiovanni, GM's executive director of global market analysis, said in a January conference call.
Analysts forecast Chrysler will replicate its 50% December turn down from year-earlier levels, and GM will drop about 40 percent after a 31.2 percent decline in December. Both automakers are making feasibility plans for the U.S. Treasury Department to protect the $13.4 billion in federal loans they've previously received.
Ford sales for January will go down by about a third, analysts say.
The auto information site Edmunds.com forecasts a 26 percent decline for Honda, a 27 % tumble at Toyota and a 31 percent decline at Nissan, for on the whole industry fall of at least 30 percent.
A rate below 10 million would crush any hope that demand hit bottom in November, when seasonally attuned sales fell to a 26-year low of 10.3 million units. The figure increased to 10.4 million in December.
The auto industry is looking to ricochet from its poor sales year since 1992 as the recession extends.
Previous year's U.S. light vehicle sales dropped to 13.2 million, dragged down by soaring fuel prices in the initial part of the year and a global credit chomp later. In 2007, 16.1 million light vehicles were sold in the United States.
January fleet sales went down partially as of U.S. automakers' extended plant shutdowns after the year-end holidays, analysts say. Additionally, some corporations took benefit of GM's December fleet inducements. December fleet deals helped GM unpack about 300,000 more vehicles than Deutsche Bank's Rod Lache expected, the analyst said in a note to investors.
January's North American production declined 64 percent from year-earlier levels, and cuts are continuing. Last week, Honda Motor Co. reduced this quarter's manufacture by about 14 percent. GM eradicated 2,000 production jobs and instituted more impermanent plant closings, and Mitsubishi Motors Corp. extended a shutdown of its U.S. plant to 12 weeks from seven.
The industry commenced 2009 with a 94-day supply of vehicles, more than 50 percent above the level suggested by analysts.
The sustained troubles of fleet customers also might keep sales down. A bill to reform the Troubled Asset Relief Program, sent to the U.S. Senate last month by the House of Representatives, would permit the federal government to expand loans to automakers' fleet customers, comprising car rental firms. Last month, the Hertz car rental firm cut 4,000 jobs, and Avis Budget Group Inc. cut 2,200 jobs in December.
Ford's Pipas told that he wouldn’t expect to see the fleet business come back necessarily in February and March.
Dropping sales in North America and Europe sent operating profit at Honda Motor Co. declining 63 percent in the third quarter, pushing the firm to hack its outlook again.
Honda now looking forward to operating profit of 140 billion yen ($1.46 billion) in the financial year ending March 31, compared with a former forecast of $1.88 billion. The novel target, released just a month after a former downgrade, stands for an 81.1% tumble from previous year.
Honda says it will considerably cut capital and R&D costs.
For the October to December third quarter, the Japanese automaker's operating profit diminished 62.9% to $1.07 billion from the year preceding to. Sales slid 16.8% to $26.39 billion.
Big sales turned down in North America, Europe and Japan hammered on the whole earnings. In the meantime, the yen's dramatic boost against the dollar and euro lopped off more than $1 billion from Honda's third-quarter operating returns.
"We anticipate it to continue like this for the initial half of the year," Executive Vice President Koichi Kondo said here while proclaiming results today.
"We may only hope it enhances in the second half."
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