Auto News

Fast Lane Daily , New Ford M-Sport ,Fenix Automotive and New Lamborghini

David Walker, LeaseTrader.com — Fri, 20 Nov 2009 22:07:12 GMT

New Ford M-Sport Fiesta S2000, Lee Noble Launches Fenix Automotive, New Lamborghini

M-Sport reveals their new Ford Fiesta S2000 Rally Car, Fenix Automotive -- a new company founded by Lee Noble, looks to be developing their first car. Also, some Lamborghini rumors in the Internet Rumor Mill, and Commenter of the Week. Hosted by Derek DeAngelis.

Ford Motor Co to invest $1.15 billion in Brazil

David Walker, LeaseTrader.com — Fri, 20 Nov 2009 16:48:50 GMT

Ford Motor Co to invest $1.15 billion in Brazil

CAMACARI, Brazil (Reuters) -- Ford Motor Co. plans to invest 2 billion reais ($1.15 billion) in Brazil through 2015, most of it on a plant in the northeastern Bahia state, to expand production and benefit from expected growth in Latin America's largest economy, the state governor said on today.

As part of the investment plan, which will be officially unveiled in a ceremony with President Luiz Inacio Lula da Silva later today, Brazil's government will extend state and federal tax breaks to Ford, Bahia state governor Jaques Wagner said on a radio interview.

A Ford spokeswoman in Brazil said the automaker would make not comment until the official ceremony at the company's Camacari plant starts at around noon (9 a.m. EST).

Ford is the fourth-largest automaker by sales in Brazil and ranks second in the United States, behind General Motors Co.

Brazil is a major market for global automakers such as Italy's Fiat, Germany's Volkswagen, GM and Ford. Asian and French manufacturers are also relying increasingly on Brazil to offset slumping sales at home.

Porsche, Volkswagen & Toyota-Subaru's partnership “Fast Lane Daily”

David Walker, LeaseTrader.com — Thu, 19 Nov 2009 21:13:02 GMT

Porsche, Volkswagen & Toyota-Subaru's partnership “Fast Lane Daily”

Another episode from our Friends at Fast Lane Daily

Porsche puts out another track-car, the 911 GT3 R. Volkswagen has closed a 3-week-long hiring period with great success. Also, the Internet Rumor Mill has a bunch of goodies. Toyota-Subaru's partnership has some more news info on the FT-86 Concept, and could Ferrari be working on a GTO version of the 599GTB? That's all today, plus Shakedown with Leo Parente. Hosted by Derek DeAngelis.

J.D. Power & Associates predict more sales for November

David Walker, LeaseTrader.com — Thu, 19 Nov 2009 20:40:11 GMT

J.D. Power & Associates predict more sales for November

DETROIT (Reuters) -- Forecaster J.D. Power & Associates said today that it expected U.S. auto industry sales to increase slightly on an adjusted basis in November from a year earlier due to stable retail sales and growth in fleet sales.

U.S. auto sales are expected to grow by 0.4 percent in November when taking into account two fewer selling days this year than last year, J.D. Power said.

The seasonally adjusted annualized rate of sales, a key measure for economists, is expected to rise to 10.2 million vehicles in November from 10.1 million a year ago, it said.

Sequentially, the annualized rate of sales is expected to decline from October, J.D. Power said. The rate in October was the strongest in a year when excluding July and August, which were boosted by the government cash for clunkers incentives.

For the year, J.D. Power expects the U.S. auto industry to post sales of 10.3 million vehicles. It expects industry sales to rise to 11.5 million in 2010.

British Supercar, Volkswagen’s new Truch and Jay Leno on Fast Lane Daily

David Walker, LeaseTrader.com — Wed, 18 Nov 2009 19:51:22 GMT

Chalk up another British supercar, a track-day toy hits the track and Volkswagen’s got a handyman special in the works. And stay tuned for our next installment of Jay Leno week later in the show. Hosted by Derek DeAngelis and Matt Farah.

FAIL – Most 2010 Vehicles Can’t Pass Tougher Safety Tests

David Walker, LeaseTrader.com — Wed, 18 Nov 2009 16:21:41 GMT

FAIL – Most 2010 Vehicles Can’t Pass Tougher Safety Tests

Shoppers looking to buy the safest 2010-model cars will have 67 fewer choices this year than they did in 2009. That's because the test for safety ratings got a lot tougher.

A new roof-strength requirement aimed at protecting passengers in rollover crashes cut the number of top-rated vehicles to 27 for the 2010 model year, compared with 94 in 2009. The Insurance Institute for Highway Safety added the roof test to the already-rigorous tests it uses to address increasingly specific circumstances under which drivers and passengers are injured and killed in collisions.

The institute, an auto-safety research group funded by the insurance industry, named 19 cars and eight sport-utility vehicles as "top safety picks." Among them are the Audi A3, Honda Civic, Dodge Journey and Ford Taurus. Auto makers with the most top-rated models include Subaru, a unit of Fuji Heavy Industries, with five vehicles making the cut. Ford Motor Co. and its Volvo unit had six top-rated vehicles, and Volkswagen AG and its Audi unit combined for five vehicles. Four Chrysler LLC vehicles got the top rating. General Motors Corp.'s Buick LaCrosse and Chevrolet Malibu are also on the list.

Video of front-impact crash tests used to determine which vehicles receive top safety ratings. Video courtesy of the Insurance Institute for Highway Safety.

Among major auto makers with no top picks is Toyota Motor Corp. Toyota's Camry came close with good front, side and rollover protection, but fell short in the rear-impact test. A Toyota spokesman called the institute's findings "extreme and misleading," considering that Toyota and its units make 38 different vehicles and that only three were tested for roof strength. BMW AG says none of its models were tested by the institute and that its cars must pass rigorous rollover tests conducted internally.

To become a top safety pick, a vehicle has to have the insurance group's top rating of "good" in front, side, rollover and rear-impact crash tests and also have electronic stability control, which helps drivers maintain control of their vehicles in situations that might otherwise result in crashes.

Adrian Lund, president of the Insurance Institute, says his group tests about 50 to 55 vehicles during the model year, using its own funding. Additional cars are tested at the request of car makers, which in these cases pay for the test vehicle. Often these vehicles initially missed the top rating and were resubmitted for testing later in the model year. At the beginning of the 2009 model year, 72 vehicles received the group's top rating. By the end of the year, following additional tests, the list grew to 94.

Video of side-impact crash tests used to determine which vehicles receive top safety ratings. Video courtesy of the Insurance Institute for Highway Safety.

The 2010-model roof-strength requirement, however, pared the list considerably. In this test, a metal plate is pressed against one corner of the roof. To receive a top rating, the roof has to withstand a force equal to four times the vehicle's weight without crushing the roof five inches inward.

The National Highway Traffic Safety Administration earlier this year said it was making its roof-strength test more stringent as well. In this test, a force equal to 2.5 times a vehicle's weight will be applied separately to the right and left sides of the roof. The rule will limit how much the roof can buckle under the pressure. The previous standard was 1.5 times the vehicle's weight.

The main difference between the two safety groups' test programs is that the federal standard sets a requirement every vehicle must meet. The Insurance Institute tests are designed to show consumers the differences from one vehicle to another under more severe crash conditions.

Roof strength has long been a point of contention between the Insurance Institute and the auto industry, as well as among safety experts. Car makers have resisted tougher roof-strength standards, in part because they say their testing hasn't shown a conclusive relationship between roof strength and occupant safety. They also say that focusing on roof strength in isolation doesn't consider how well a vehicle's structure performs as a whole in a rollover crash.

Other safety experts point out that most people killed in rollovers weren't wearing seat belts and died after being partially or completely ejected from the vehicle. Some say this further clouds the role of roof strength in preventing fatalities.

The institute's Mr. Lund says that while seat belts and crash-avoidance technology like electronic stability control are critical in reducing rollover fatalities, a strong roof is better at maintaining the overall integrity of a vehicle's passenger compartment. Mr. Lund says his group's research, which looked specifically at rollover crashes, indicated occupants die more often in vehicles with weaker roofs.

Top Models

Vehicles that received a top rating of "good" in all four crash tests—front, side, rollover and rear impact—and have electronic stability control to help drivers avoid crashes.

Large Cars	Buick LaCrosse, Ford Taurus, Lincoln MKS, Volvo S80
Midsize	Audi A3, Chevrolet Malibu built after Oct. 2009, Chrysler Sebring, with optional ESC, Dodge Avenger with optional ESC, Mercedes C class, Subaru Legacy, Subaru Outback, Volkswagen Jetta 4-door, Volkswagen Passat 4-door, Volvo C30
Small Cars	Honda Civic 4-door, Kia Soul, Nissan Cube, Subaru Impreza, Volkswagen Golf 4-door
Midsize SUVs	Dodge Journey, Subaru Tribeca, Volvo XC60, Volvo XC90
Small SUVs	Honda Element, Jeep Patriot, Subaru Forester, Volkswagen Tiguan

Source: [ Wall Street Journal ]

Ford Motor Co stock hits two-year high

David Walker, LeaseTrader.com — Tue, 17 Nov 2009 23:34:08 GMT

Ford Motor Co stock hits two-year high

George Soros: Now owns 7.3 million shares of Ford.

DETROIT -- Ford Motor Co. stock today reached a new two-year high after disclosures that billionaire investor George Soros' hedge fund bought a 7.3 million-share stake in the automaker.

Ford shares briefly hit the $9 mark this morning for the first time since October 2007. Ford shares closed the day at $8.98, up 27 cents or 3.1 percent on heavy volume.

According to a regulatory filing on Monday, Soros Fund Management took the 7.3 million stake in Ford during the third quarter. The stake, roughly 0.2 percent of Ford's outstanding shares, is valued at $53 million.

The 79-year-old Soros, a native of Hungary, is a well-known investor, executive, philanthropist, and political activist. He made his original fortune through his private investment fund, Quantum.

He timed his investment during a quarter in which Ford turned a surprise $997 million profit and improved its cash position by $2.8 billion.

Ford shares have been on an upward trajectory since bottoming out in November 2008 at $1.26 a share. Unlike General Motors and Chrysler, Ford avoided seeking government assistance this year and has made several moves to shore up its finances in recent weeks.

Moreover, Ford's product lineup has been widely praised, and its U.S. market share has improved from 15.0 to 15.8 percent over the past year. Ford's U.S. light-vehicle sales are down 21 percent for the first 10 months of the year, but that's still better than the overall 25 percent decline in vehicle sales this year.

SOURCE: [ Automotive News ]

LeaseTrader.com Could Be Shoppers biggest deal for Credit

David Walker, LeaseTrader.com — Mon, 16 Nov 2009 17:33:02 GMT

LeaseTrader.com Could Be Shoppers biggest deal for Credit

MIAMI, FL -- (Marketwire) -- LeaseTrader.com estimates that more than 50 percent of car lease shoppers today are not qualifying for a tier-1 lease price at a dealer with many turning to the secondary lease swap market for the right deal. Failing to qualify for tier-1 pricing because of a confusing credit threshold can end up costing consumers thousands over the life of a new
lease.

A person's credit history and credit score determine the monthly payment and also the security deposit and down payment requirements on new car leases . With beacon scores lower today, many consumers are qualifying for only undesirable leasing payments.

Credit is analyzed differently in the secondary lease swap marketplace, here LeaseTrader.com matches interested auto lease shoppers with an affordable car lease. Although shoppers still must have good credit to take over a lease, there are no additional levels of credit approval based solely on a person's credit beacon score that then determine which tier
they fall into for pricing.

"Keeping good credit is the most important part of a family's balance sheet during this period of economic recovery," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "We're working with people every day who have the credit to get a car lease but can't qualify for the best payment at a dealer. Through lease transfer, these people are getting approved to take over a lease that was initially tier-1 pricing with a great, low payment."

LeaseTrader.com, the nation's most popular online lease swap marketplace, is working with a growing number of customers with mid-range credit scores that are still able to get approved for a car leases with tier-1 pricing. The company matches car shoppers with individuals who no longer wish to stay in their leasing contract. LeaseTrader.com works with the lease company to transfer the lease from one person to another.

General Motors posts $1.2 billion loss

David Walker, LeaseTrader.com — Mon, 16 Nov 2009 15:21:40 GMT

General Motors posts $1.2 billion loss

DETROIT -- General Motors Co. posted a $1.15 billion loss during the third quarter following its exit from bankruptcy and said reduced costs and stabilizing sales would allow it to begin repaying $6.7 billion in U.S. loans.

"We have significantly more work to do, but today's results provide evidence of the solid foundation we're building for the new GM," CEO Fritz Henderson said in a statement.

The "managerial net loss" was for the period from July 10, the day GM exited court protection, through Sept. 30. For the full quarter a year earlier, the automaker had an operating loss of $4.2 billion and a net loss of $2.5 billion.

GM also said:

• Revenue for the entire three-month period rose to $28 billion, up $4.9 billion from the second quarter. GM attributed much of that increase to a global seasonally adjusted annual sales rate of 67.8 million units in the quarter, up from 62.7 million in the second quarter.

• It will burn through additional cash in the fourth quarter. GM will pay out $2.8 billion for Delphi's bankruptcy settlement, $2 billion for "payment term adjustments," $2.5 billion for loan repayment to the U.S., Canadian and German governments and $1 billion in restructuring costs. Cash levels will be "materially lower than third-quarter levels of $42.6 billion."

• The seasonally adjusted annual sales rate for total U.S. vehicles will be 10.7 million in the last three months of this year. GM said adjusted demand averaged 11. 7 million units in the third quarter, buoyed by the government's cash-for-clunkers program. Annual light-vehicle sales are typically 200,000 to 300,000 below total vehicles.

• Fourth-quarter global demand will slip to a 65.4-million-unit annual rate.

• In 2010, global sales will total between 62 million and 65 million units. In the U.S., total-vehicle sales will hit 11 million to 12 million units.

Different standards

GM said last week that today's results wouldn't match Security and Exchange Commission reporting standards. GM is using "managerial accounting" and the number won't comply with generally accepted accounting principles, spokeswoman Julie Gibson said.

The automaker will switch to fresh-start accounting, applied to corporations after bankruptcy, for release of first-quarter figures next year.

“We lost money,” Henderson said in a conference call. “Certainly much lower than what it has been, although it's not exactly comparable ... it's a lot better than what we had expected.

“Nonetheless, it's a loss, and you cannot be satisfied with it.”

GM will begin quarterly payments in December by shelling out $1 billion for the U.S. loan, the company said. At the same time, the automaker also will start repaying a $1.4 billion loan to Canada by giving back an initial $192 million.

GM was not required to make any payments on the U.S. loan before it matured in July 2015, but better-than-expected vehicle sales will let it start repayments much sooner than expected.

GM vehicle sales fell off less than expected during its government-supported bankruptcy in June and July. Sales since then, aided partly by the U.S. cash-for-clunkers incentives, have performed ahead of plan. In October, GM's U.S. sales rose 5 percent, for their first year-over-year gain since January 2008. For the year, GM is down 34 percent.

As a result of the sales performance, GM has not been forced to burn through some $16 billion in U.S. funds provided to the company when it emerged from bankruptcy. A person familiar with the situation said before the earnings release that GM has used only about $3 billion of these funds, which are contained in a restricted escrow account that cannot be accessed without Treasury approval.

Task force, GM board

Henderson said repaying government loans is a personal priority.

“I've been asked since we went into the bankruptcy, probably a hundred times, ‘When are you going to start paying back the taxpayer?' The answer is, ‘Now,' " Henderson said on the call.

Earlier this month, the Government Accountability Office said it didn't think GM would become profitable enough for the government to recoup its investment. That will depend on the performance of GM's stock after an initial public offering, Henderson said.

“I'm accountable for results. We're accountable for results. And it's my mission to disprove the GAO, to create value in the company," he said. “The value of the stock is driven by how management performs.”

GM said it will make its loan payments from the escrow account. Any leftover escrowed funds as of June 30, 2010, will go toward repaying the U.S. and Canadian loans, unless the U.S. Treasury extends the escrow by one year. After GM repays the loans, it will get any balance of the escrowed money, the company said.

The $6.7 billion in senior debt to the U.S. Treasury is only a small portion of the $50 billion in aid provided to GM. Much of this was converted to a nearly 61 percent equity stake, making the Treasury GM's largest shareholder. Treasury officials have said they hope to sell shares in a GM initial public offering in the next year.

The source said this would not happen in the first half of the year, so the repayment plan would let GM reduce the loan by at least $3 billion "before any plausible IPO."

The repayment schedule also could be altered to accommodate IPO plans or accelerated payments, should conditions warrant.

Source: [ Automotive News ]

Car Czar agrees to raise salary caps for new hires

David Walker, LeaseTrader.com — Fri, 13 Nov 2009 17:02:06 GMT

Car Czar agrees to raise salary caps for new hires

WASHINGTON (Reuters) -- Two days after GM Chairman Ed Whitacre said the government should loosen its restrictions on executive pay for bailed-out companies, the White House pay czar signaled his willingness to raise salary caps for new hires.

Kenneth Feinberg, the U.S. Treasury's special master for executive pay at the seven firms that have received taxpayer bailouts, last month ordered pay and bonuses cut in half on average for the top 25 earners at the companies. That included executives at General Motors Co., Chrysler Group, Chrysler Financial and GMAC Financial Services.

Feinberg, speaking at a forum sponsored by Bloomberg, said the automotive firms did not appeal his rulings. But he said he would be open to requests to hire in new executives at competitive pay.

“If General Motors or any other company wants to bring someone in laterally -- laterally -- and competitive pay packages require that lateral hires get certain competitive pay, what have you, we're perfectly willing to examine that," he said.

Whitacre said on Tuesday the $500,000 cash-salary limit on all but two of GM’s executives made hiring from outside difficult. He urged a reconsideration of Feinberg’s limits.

Feinberg today defended his pay restrictions as striking an appropriate balance between reining in excessive pay and allowing companies to thrive and repay the government.

"I'm always concerned that the companies thrive and they keep the personnel they need to stay in business. That's a major concern," he said. "I took that into account in 2009, and I'll look at that again in 2010."

Repayment top priority

Feinberg said he would measure his success in determining appropriate pay levels for the bailed-out firms by their repayment of taxpayer money.

"There is nothing more important than the fact that these companies repay," Feinberg said. "The secretary of the Treasury has made it very clear that we must keep these companies in business, thriving, so that the taxpayer can get repaid."

Feinberg is now working on compensation plans for the next 75 highest earners at the seven firms and then will start the whole process over for 2010 compensation.

Under the caps set for GM's top 25 executives, CEO Fritz Henderson had his cash salary cut 25 percent to $950,000 from $1.26 million.

Cash salaries for the top GM executives were cut by 31 percent, and only one unnamed executive besides Henderson will be paid more than $500,000 for 2009.

One of the first tests of the salary caps has been GM's search for a new CFO. GM's financial management was criticized by the Obama administration's auto task force headed by former investment banker Steve Rattner.

In early September the GM board endorsed plans for CFO Ray Young to step aside, people familiar with the deliberations have said, but the search for a replacement and an announcement on Young's next move have stalled since then.