Subaru has introduced the new 2011 Subaru Impreza WRX models, which have taken the wide-body design from the WRX STI performance flagship model with an approximately 1.5-inch increase in front and rear track, firmer rear subframe bushings and wider 17-inch wheels that are now 17 x 8-in. vs. 17 x 7-in. and bigger tire size at 235/45R17 vs. 225/45R17 in the current model.
The 2011 Impreza WRX 4- and 5-door models are powered by a 265-horsepower turbocharged/intercooled 2.5-liter 4-cylinder SUBARU-BOXER® engine producing 244 lb.-ft. of peak torque at 4,000 rpm. and mated to a 5-speed manual transmission.
The 2011 Impreza WRX uses the Continuous AWD version of Symmetrical All-Wheel Drive and the Vehicle Dynamics Control stability and traction control system are standard. Incline Start Assist, featured on all Impreza models equipped with a manual transmission, can momentarily prevent the vehicle from rolling backward when being driven away from a stop on an incline.
The 2010 Impreza WRX starts at $26,190 and the WRX Premium starts at $28,690. No pricing yet of the 2011 Impreza WRX which will arrive in Subaru dealerships this summer.
The all-new Lexus CT 200h premium five-door compact hybrid, shown in Geneva last month, will be on display in New York next week, and will go on sale in the U.S. in early 2011 joining the HS 250h as Lexus' second dedicated hybrid.
The CT 200h is powered by a 1.8L Atkinson cycle four-cylinder gas engine with Variable Valve Timing with intelligence (VVT-i) and Lexus Hybrid Drive technology. The CT 200h's Lexus Hybrid Drive technology features two motor generators which can operate as both a motor and generator. The engine-driven generator can charge the battery pack or provide additional power to the drive motor as needed. The drive motor is driven by electrical power from the hybrid battery pack or generator and provides motive force for the front wheels. The CT 200h will be equipped with four drive-modes: Normal, Eco, Sport and EV.
Chrysler Group plans to produce a pure electric vehicle using the Fiat 500 platform with a powertrain comprised of a high power electric powertrain module, advance lithium ion battery, and an EV control unit to manage power flows. (The Fiat 500EV is pictured above at the North American International Auto Show in Detroit - January 2010.) All powertrain engineering and vehicle development will take place at Chrysler headquarters in Auburn Hills, Michigan. Pricing will be announced closer to launch, but will be competitive with similar electric vehicles in the market.
Later this year Chrysler Group will debut a Fiat 500 with a combustion engine for North America. Beginning in 2012, Chrysler will manufacture the Fiat 500EV for the United States market.
Japanese models capture nine segment awards, domestic models seven and Europeans three: Toyota Highlander, Prius, Sequoia and Tundra all received four segment awards, more than any other nameplate in 2010. Honda receives three segment awards for the CR-V, Fit and Ridgeline. Lincoln captures two awards for the Mark LT and MKZ. In addition, Audi, BMW, Buick, Cadillac, Chevrolet, Ford, Lexus, Mazda, Mercedes-Benz and Mercury each receive a model segment award.
Porsche leads the overall nameplate rankings in 2010, which is consistent with its performance in the J.D. Power and Associates 2007 Initial Quality Study which measures new-vehicle quality at 90 days of ownership. Lincoln improves by six rank positions from 2009 to follow Porsche in the nameplate rankings. Rounding out the top five nameplates are Buick, Lexus and Mercury. In addition, seven of the 10 models with the lowest incidence of problems in the industry are from Ford and General Motors, including the 2007 model-year Buick Lacrosse, Buick Lucerne, Cadillac DTS, Ford Five Hundred, Lincoln MKZ, Mercury Milan, and Mercury Montego.
The Cadillac DTS has the fewest problems in the industry, with just 76 problems per 100 vehicles. This marks the first time in more than a decade that a model from a domestic automaker has achieved the lowest PP100 score in the Vehicle Dependability Study.
The study measures problems experienced by original owners of three-year-old (2007 model year) vehicles and includes 198 different problem symptoms across all areas of the vehicle. Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The 2010 Vehicle Dependability Study is based on responses from more than 52,000 original owners of 2007 model-year vehicles. The study was fielded between October and December 2009.
Saab Cars North America, after its parent company Saab Automobile AB of Sweden was recently purchased by Spyker Cars NV of Holland, is splitting away from under the General Motors umbrella and establishing its own headquarters in the Detroit suburb of Royal Oak. Saab Cars North America says it will create or retain approximately 2000 jobs in North America with plans to invest $2.4 million to enhance its U.S. Sales and Marketing operations.
"Saab Cars North America appreciates the assistance and cooperation of the City of Royal Oak and the Governor's office in helping make the company's decision a reality during tough economic times," said Mike Colleran, President and COO, Saab Cars North America. "As a direct result in acquiring local and state assistance, we look forward to renewing our U.S. presence as an independent, premium luxury automotive brand with Swedish heritage while maintaining our loyal following and potentially attracting new customers."
Kia has jumped into a pro golf tournament sponsorship when many car companies have pulled out. On February 10th, just a month ago, Kia announced that it's sponsoring an LPGA tournament which tees off for the pros on March 25th at the famed LaCosta Resort & Spa in North County San Diego where the Tournament of Champions was held for 30 years, including an Infiniti sponsorship for a few years, and more recently LaCosta hosted the World Golf Championship men's match play events until 2006. At the same time, Kia announced it has signed LPGA golfer Michelle Wie to promote the brand.
Until the announcement by Kia, Honda and BMW were the only only car companies with lead sponsorship of a U.S. pro golf tournament with the PGA Honda Classic, played last week in Palm Beach Gardens, Florida, the Honda PTT LPGA Thailand and BMW's Charity Pro-Am on the Nationwide Tour. BMW sponsors three tournaments and Volvo one on the European PGA tour.
Over the years golf has been an important marketing venue for car companies. Buick was lead sponsor on four annual PGA tournaments until last year's General Motors' bankruptcy. Both Infiniti and Mercedes sponsored the event that hosted the previous year's PGA winners and in Los Angeles, Nissan sponsored the PGA event at Riviera Country Club for 21 years, until 2007. In the1980's, even Isuzu, a now-defunct U.S. brand, sponsored the San Diego Open.
The Kia sponsorship comes at a perfect time after their best February sales month ever with new products doing well and it's a good fit. Kia, headquartered in Korea, is sponsoring an event on the LPGA Tour, dominated by Korean players. Globally, Kia's sports sponsorships cover soccer, tennis, basketball and now golf at the highest professional levels.
Michael Sprague, Vice President, Marketing for Kia Motors America says the Kia Classic "is an ideal platform to showcase the all-new 2011 Sorento CUV, Forte compact sedan and Soul urban passenger vehicle."
UCLA alums will be happy to hear that recent grad and four-year Bruin Varsity team golfer, Tiffany Joh, received a sponsor's exemption to play in the Kia Classic which has a total purse of $1.7 million. This will be Tiffany's third LPGA event, first as a pro after graduating last June. She's a great golfer with a wonderful personality and lots of fun to play with - I enjoyed every minute of my 18 holes with her on Tuesday. Go Tiffany!
Saab Cars North America, which on February 23rd had its ownership officially transferred from General Motors to Spyker Cars NV, is cutting prices anywhere from 4 to 12 percent on all 2010 model year 9-3 cars.
The 9-3 Sport Sedan is available in two trim levels, 2.0T and Aero, and both can be specified with either front wheel drive or with Saab's Cross-Wheel Drive system with starting prices ranging from $29,725 MSRP for the 2.0T to $38,940 MSRP for the Aero model. MSRP includes destination and freight charges. The 4-cylinder 2.0 turbo delivers 210 horsepower and the 6-cylinder 2.8 turbo Aero is rated at 280 horsepower.
The 9-3 SportCombi starts at $31,155 MSRP for the 2.0T to $37,845 MSRP for the Aero model. The all-new premium 9-3X with a 2.0 liter turbocharged engine starts at $37,800 MSRP including destination and freight charges.
The 9-3 Convertible model prices range from $40,815 MSRP for the 2.0T to $45,905 MSRP for the Aero. The convertible offers a special edition package with leather steering wheel, Xenon headlamps and XM Satellite Radio for $695.
2010 vehicles will arrive during the next few weeks to dealer showrooms across the United States.
Ford, including Lincoln, Mercury and Volvo brands, sold 142,285 vehicles in February, a 43.1 percent sales increase in February a year ago. Among brands, Ford sales were up 46 percent, Lincoln sales were up 19 percent, Mercury sales were up 24 percent, Volvo sales jumped 38 percent. Year-to-date through February, Ford, Lincoln, Mercury and Volvo sales totaled 258,819, up 34.2 percent versus a year ago. Volvo February sales of 4,641 for a two month total of 8,769, up 39.9 percent over 2009. In February, Ford sales to retail customers were 28 percent higher versus a year ago, and sales to fleet customers were up 74 percent.
General Motors' Chevrolet, Buick, GMC and Cadillac dealers in the U.S. reported February 2010 sales of 138,849, up a combined 32 percent compared to February 2009. Sales of brands being phased out, Hummer, Pontiac, Saab and Saturn, amounted to just 3,102 vehicles bringing the total to 141,951. Retail sales for GM’s four brands were up 7 percent for the month. Year-to-date GM has sold 288,776 vehicles, a 12.6 percent gain over the first two months of 2009.
Toyota Motor Sales, U.S.A., reported February sales of 100,027 vehicles, down 8.7 percent from the year-ago month.The Toyota Division posted February sales of 86,240 units, a decrease of 10.6 percent from the same period last year. The Lexus Division reported February sales of 13,787 units, an increase of 5.2 percent over the year-ago month. Year-to-date, Toyota has sold 198,823 vehicles, a drop of 8.7 percent from the first two months of 2009.
Chrysler Group LLC reported total U.S. sales for February of 84,449 units, a slight increase versus the same time period last year (84,050 units). Year-to-date Chrysler has sold 141,592 vehicles, a 3 percent decline from 2009.
American Honda posted February sales of 80,671, an increase of 12.7 percent when compared to February 2009. American Honda year-to-date sales of 148,150 is an increase of 8.2 percent.
Nissan North America reported February 2010 sales of 70,189, an increase of 29.4 percent, compared with February 2009. Nissan Division sales rose 31.9 percent for the month, while sales of Infiniti vehicles were 10.7 percent higher than a year before. Nissan year-to-date sales are 132,761, up 22.8 percent over 2009.
Hyundai Motor America February sales of 34,004 was up 11 percent versus February 2009. This marks the fourteenth consecutive month of year-over-year retail market share gains for Hyundai. For the first two months of 2010 Hyundai has sold 64,507 vehicles, up 17 percent.
Kia Motors America reported its best February sales ever of 24,052 units, a 9-percent increase over the same period last year and 2.3-percent over the previous February sales record of 23,512 set in 2007. Year-to-date Kia has sold 46,174 vehicles, up 4.5 percent.
Volkswagen of America reported February 2010 sales of 18,116, a 32.6 percent increase over February 2009. 2010 year-to-date sales of 36,135 is up 36.9 percent over the same period of 2009. Separately Audi had February U.S. sales of 6,216, a 33.6 percent rise from a year earlier. Through the first two months of 2010, Audi sales are 12,726 cars a 35.7 percent jump over the same period in 2009. Audi February U.S. sales of 6,216 sales was a 33.6 percent rise from a year earlier. Through the first two months of 2010, Audi sales are 12,726 cars a 35.7 percent jump over the same period in 2009.
Daimler reported U.S. sales of 15,827 Mercedes-Benz and smart vehicles. Mercedes-Benz USA reported February sales of 15,385 vehicles, an 8.4 percent improvement over February 2009. On a year-to-date basis, the company sold 30,543 new vehicles, up 24% when compared to the same time last year.
BMW Group in the U.S. (BMW and MINI combined) sold 17,971 vehicles in February, a 13.7 percent increase compared to the same month in 2009. Both the BMW and MINI brands improved performance with BMW reporting a sales increase of 16.3 percent to 15,100 units and MINI a 1.6 percent increase to 2,871 vehicles. In the first two months of 2010, BMW has sold 33,381, a 10.8 percent rise over 2009.
Subaru of America sold 18,098 units in February, a 38-percent sales increase over February 2009, resulting in a February sales record. Year-to-date sales increased 33-percent with 33,710 units sold versus 25,282 units sold over the same period last year.
Mazda North American Operations reported February 2010 sales of 17,054, an increase of 4.0 percent versus February 2009. Year-to-date, Mazda sales are 32,748, up 2.9 percent.
Mitsubishi Motors North America February 2010 sales of 4,019 was a 10.4 percent drop from February 2009 sales. In the first two months of this year, Mitsubishi sales are 8,189, down 11.1 percent versus 2009.
American Suzuki February sales were 1,375, a 61 percent tumble from the same month in 2009 and year-to-date sales are 3,415, down 52 percent from last year.
Vehicle recalls are standard practice, happens all the time with hundreds of recalls every year, most voluntary by the manufacturer, not mandated by NHTSA. In fact, many dealers like recalls because it brings customers back into their showrooms while the vehicle is being fixed. A showroom visit ignites new car enthusiasm and a good look at the new products. I'm not going to fill my blog with every recall, it's an ongoing reality with every car company. High volume recalls on popular models are worth mentioning especially if they result in death, severe injury or crashes. Here's the latest one you're hearing in the news:
General Motors will conduct a safety recall of 1.3 million compact cars to replace a motor in the power steering system. Vehicles affected are the 2005-2010 Chevrolet Cobalt; 2007-2010 Pontiac G5; 2005-2006 Pontiac Pursuit sold in Canada, and the 2005-2006 Pontiac G4 sold in Mexico.
GM told the National Highway Traffic Safety Administration about the voluntary recall on Monday after concluding an investigation that began in 2009. NHTSA opened an investigation Jan. 27 into approximately 905,000 Cobalt models in the United States after receiving more than 1,100 complaints of loss of power steering assist, 14 crashes and one injury. GM says plans for the remedy are being developed. Customers will be notified when the plan is finalized.
Lexus wins the gold medal among luxury brands in the 2010 Customer Service Index rankings for the second consecutive year with an index score of 837. Ranked No. 2 among luxury brands is Cadillac at 827, showing a huge improvement from last year. Third luxury brand is Jaguar at 822 after having the highest overall rank in 2008 and second in 2009. Other top luxury brands include Acura at 817 and BMW at 816. The luxury brand industry average is 813. The study examines satisfaction among vehicle owners who visit a service department for maintenance or repair work. The CSI rankings are based on dealer performance during the first three years of ownership, which typically represents the majority of the vehicle warranty period. Five measures are examined to determine overall customer satisfaction with dealer service (listed in order of importance): service quality; service initiation; service advisor; service facility; and vehicle pick-up.
GM's outgoing Hummer brand has the top score among mass market brands with a score of 815, thanks to its service quality and service facility scores. Second is another soon-to-be-extinct GM brand, Saturn at 808. Buick with a score of 805 is third among mass market brands. Six of the top seven brands in the mass market segment are from General Motors. Ford brands hold the No. 7 and No. 8 rank positions, while no Chrysler brands perform at or above the mass market industry average of 758.
The 2010 J.D. Power CSI Study is based on responses from more than 114,200 owners and lessees of 2005 to 2009 model-year vehicles. The study was fielded between October and December 2009.
Kia Motors Manufacturing Georgia, the first manufacturing site in North America for Kia Motors Corporation based in Seoul, Korea, had the official grand opening of its facility in West Point, Georgia on Friday. The plant, capable of producing 300,000 cars annually, has been making the all-new 2011 Kia Sorento CUV since Nov. 16, 2009. The 2011 Kia Sorento which went on sale in the U.S. in January selling 7,398 units in its first month was Kia's best-selling vehicle in January.
The ceremony was attended by approximately 500 VIPs from Korea and the U.S., including Chairman of the Hyundai-Kia Automotive Group Mong-Koo Chung; Group President and CEO of KMMG and Kia Motors America (KMA) Byung-Mo Ahn; Georgia Governor Sonny Perdue; and a number of other high-ranking Korean government and State of Georgia officials.
Representing a $1 billion investment by Kia Motors Corporation, the new 2.2 million-square-foot automobile manufacturing plant is situated on more than 2,200 acres of land consisting of four main shops: stamping, welding, paint and assembly. The site also includes a transmission shop, module shop and a two-mile test track where every vehicle produced by KMMG will be thoroughly tested. KMMG's general assembly area is outfitted with more than a half mile of height-adjustable conveyors to achieve the most favorable installation position for each team member and reduce physical fatigue. It is outfitted with wood flooring, which provides a more comfortable and forgiving work environment for team members. KMMG currently employs more than 1,200 team members and is expected to nearly double that number by the end of the year, while onsite and nearby suppliers will create up to 7,500 additional jobs in the region.
Audi Q7s, both black and white, shuttled Russian Olympians around Vancouver during the 2010 games that wrap up Sunday, Feb. 28. The Canadian Olympic hockey team which, after the preliminary round games, had to win every game to get to the Gold Metal Game vs. USA. Canada knocked off Germany 8-2, shocked Russia 7-3 and then beat Slovakia 3-2 in the semi-finals to advance to the Gold Metal game Sunday at noon. The undefeated US Men's hockey team defeated Switzerland, Norway and Canada in the preliminary round and then beat Switzerland in the quarter-final and Finland in the semi-final to advance to the showdown game against Canada - a game all Canadians will remember from the Olympics they hosted. The official Olympic vehicles were a variety of GM trucks and cars, 4,600 in total.
General Motors announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations. GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.
Spyker Cars N.V. has finalized the deal with General Motors to purchase Saab Automobile AB. Saab Automobile and Spyker Cars will operate as sister companies under the umbrella of the Amsterdam Euronext listed parent company Spyker Cars N.V. (Ticker symbol: SPYKR). This transaction secures the future of Saab Automobile.
Jan Ake Jonsson, CEO of Saab Automobile AB said: "Today's announcement is great for Saab's customers, dealers, suppliers and employees around the globe, the level of passion and support shown to Saab over recent months has been remarkable and this does bode well for the future. Now we aim to get back to the execution of our business plan, starting with the introduction of the new 9-5 later this year, and with the continued support of our employees and business partners I am confident we will succeed."
Hyundai, which jumped into General Motors Academy Award TV ad slots last year with four and half minutes of the expensive commercials ($1.4M per 30 seconds) is having it's Oscar-nominated voiceover talent solve a conflict rule. The Academy of Motion Picture Arts and Sciences which runs the Oscars says that no commercial spots featuring participating stars (even in voiceover) can run within an hour of that star’s appearance on the Oscar show. To solve this, Jeff Bridges, nominated for Best Actor for Crazy Heart and also the voice on the Hyundai commercials has asked his friends, other well-known actors, to voice the spots for him. This could be an interesting twist that may give the Hyundai ads an added attraction - name that voice.
Tune into the 82nd Oscar telecast on ABC Sunday March 7th hosted by Alec Baldwin and Steve Martin to find out who will voice the Hyundai spots for 4-time Oscar nominee, Jeff Bridges.
General Motors supplied 4,600 vehicles for the Winter Olympics in Vancouver and you see them everywhere frequently. The Chevy Traverse along with the Tahoe, Yukon, Suburban and their hybrid and Flex-fuel versions are driving VIPs, Olympians and their families day and night. The above photo was taken at 11pm. on Georgia Street in downtown Vancouver. No hospitality tents just the vehicles for GM's role. The weather is spectacular - clear, sunny and too warm for some venues.
Team Canada Celebrates Shoot Out Win Over Switzerland
The hockey arena, home of the Vancouver Canucks was known for years as GM Place, not now. The host of the men's Olympic hockey games is now Canada Hockey Place where yesterday Team Canada needed a shootout goal to defeat the impressive Swiss team who had the game tied 2-2 after overtime on the amazing goaltending of Jonas Hiller of the Anaheim Ducks who stopped 44 of 46 shots before the shootout.
Don Esmond, Senior Vice President Toyota Motor Sales, U.S.A. along with Bob Carter, group vice president and general manager of Toyota Division and some dealers fielded media questions about the "sticky accelerator recall". Carter emphasized that the sticky pedal was a "very rare occurance, 13, 10 in the U.S. out of 2.3 million vehicles." Carter says they are repairing the problem at a rate of 50,000 per day and now more than 500,000 have been fixed. The stop sale affected 60 percent of Toyota's unsold U.S. inventory or 112,000 units of which 88,000 have been fixed and are back on sale. Carter emphasized that dealers priority was to fix customers vehicles first. Five million reinforcement bars in 7 different sizes are available to make the repairs with many dealers open 24/7 and adding technicians to get it done. Carter said, "the message is Toyota is open for business".
Esmond says they have to "rebuild the brand, restore confidence Step1. Step 2 is a fine balance between rebuilding the brand and getting back customers." "Did we tarnish the brand? Yes. Did we rust through? No."
Esmond went on to say, "we're a quality brand, we stumbled, I'm sorry for that - we'll recover."
In regards to the 8,000 Toyota Tacomas with a crank shaft part issue, Esmond says that Ford has 14,000 and Nissan 11,000 vehicles affected by the same issue.
Many questions come out of the Toyota sticky accelerator recall and the media's over-attention to it. There have over 10,000 recalls since the 1966 National Traffic and Motor Vehicle Safety Act went into affect so why the heavy focus on this one - because Toyota is the global sales leader? - because they claim to be the quality leader? - because it was known for some time before it was dealt with? - because the auto industry is under such scrutiny and focus after last year's bankruptcies and disastrous sales? Today's media passion for bandwagon over-blown coverage? All of the above?
More importantly is Toyota's fix to the damaged brand image which they will also try to repair quickly.
General Motors did not have much of a presence at the NADA in Orlando this year but promises to next year in San Francisco after discussions among NADA brass and GM's North American President Mark Ruess and Susan Docherty, GM's Vice President of U.S. Sales resulted in commitments. Docherty had a private meeting with 300 dealers in Orlando.
K.C. Crain, Mark Ruess, Keith Crain, Richard Saxton at Automotive News booth on NADA Show floor. Ruess was happy to be at NADA and looks for strong participation next year.
Car dealers, from mainly the U.S., are having their annual gathering in Orlando this year where it's colder than Vancouver, host city of the Winter Olympics, but conversations are running hot, especially in light of Toyota's troubles. Notably absent is Jim Lentz, president and chief operating officer of Toyota Motor Sales, U.S.A., Inc. and member of the company's board of directors, who apparently was summoned to Japan on Friday amidst their massive recall challenge. Other car manufacturers, as much as they want business from the Toyota fallout, are concerned that Toyota's floor mat and stuck accelerator issues will create increased regulatory oversight from the National Highway Traffic Safety Administration (NHTSA) creating more reporting headaches affecting everyone.
Yesterday's keynote speakers provided enthusiastic upbeat vibes for the dealers. Stefan Jacoby, CEO of VW of America, stated that, "good products are essential" and they must do "a better job of listening to customers on safety and quality" and he boasted that VW has eight vehicles recommended by Consumer Reports. Catering to his audience he emphasized that "dealers are a vital part of the industry... woven into the fabric of America... we need each other."
Mike Jackson, CEO of the country's largest dealership group, AutoNation, is an amazingly entertaining speaker, holding no punches when it comes to industry mistakes and government stupidity. Jackson was critical of how Chrysler tackled dealership reduction and how governments make more money off car sales than dealers with their high state sales taxes. Jackson had some simple logical thoughts about vehicle brands, like "look at your lease guide... what's the residual value? That's your brand." Jackson expects sales to improve to 11.5 million new car sales in the U.S. this year and with the job, housing and credit markets stabilizing looks forward to returning to 16 million vehicle sales years in three to four years from now.
This is my fourth NADA Show, starting in Las Vegas in 2007, then to San Francisco and last year in New Orleans when it looked like the end of civilization and people were wondering whether there would even be an NADA Show this year. Of course, they book the convention halls years in advance so there had to be an NADA, the question is what would it look like. I'm told attendence is up 20 percent over last year but the exhibit space is smaller meaning fewer businesses that cater to dealers are showing their products and services. Aspen Marketing who in the past have hired bands like Styx, America and Jefferson Starship, didn't have a party but still had a few Playboy centerfolds at their booth signing autographs.
