February 4, 2010

AIADA's Market Watch: International Brands See Mixed Start to 2010
On Wednesday, the American International Automobile Dealers Association (AIADA) released January 2010 sales figures for the international nameplate automobile industry. International brands accounted for 54.9 percent of all vehicles sold in the United States in January, up from 54.2 percent in December. Overall sales, including domestic brands and unadjusted for business days, were up 6.3 percent from January 2009. The seasonally adjusted annual rate (SAAR) for light vehicles now stands at 10.78 million, compared to 9.62 million units in January 2009 and 11.25 million units in December 2009. "January was a mixed bag for international brands," said AIADA president Cody Lusk. "On the whole, 2010 is off to a strong start. Dealers expect Toyota to recover quickly from the slowdown necessitated by its accelerator recalls, and are optimistic about 2010 sales across the board." According to numbers from Autodata Corp., international brands sold 383,250 units in January, down from 558,680 units in December and 414,848 units in November. Asian brands accounted for 45.7 percent of the market, identical to their share in December, and European nameplates had a 9.2 percent share, up from 8.5 in December. Click here to read AIADA's full Market Watch report regarding January's sales figures for the U.S. international auto industry. 

Confusion at Toyota Dealerships
According to CNN Money, Toyota dealers are under the gun as they face sometimes angry customers. Toyota Motor Corp. has said it will begin sending dealers parts to make recall repairs this week with actual repairs expected to begin this weekend. Some dealers now say they'll be ready to make repairs even earlier. Secretary of Transportation Ray LaHood inadvertently frightened many Toyota owners early Wednesday morning when he said, during a hearing on Capitol Hill, that any owner of a car affected by the recall should "stop driving it and take it to a dealer." LaHood later corrected himself, saying that he only meant that owners should get their cars fixed as soon as possible. Toyota released a statement Wednesday afternoon thanking LaHood for the clarification. Click here for AIADA's response to Secretary LaHood's clarified remarks. Toyota said that owners of vehicles involved in the most recent recall could safely continue to drive them since the problem develops gradually over time and, even in the worst case, is easy to bring under control by simply applying the brakes. In an extreme case drivers may need to shift the car into neutral. Bob Carter, Toyota's sales administration manager, sent a letter to dealers on Tuesday thanking them for their efforts and urging more. Click here for coverage of how Toyota dealerships are responding to worried consumers.

Auto Racer Starts a New Genesis
Hyundai says the design of its Genesis coupe was influenced by the Ferrari 599XX. But, according to Larry Edsall at The Detroit News, Rhys Millen, auto racer and founder of R Millen Motor Sports Sales (RMR) in Huntington Beach, took the design cue another step to create the RM460 Genesis coupe. Click here for a photo. Order a Genesis coupe from Hyundai and it's delivered with your choice of a turbocharged 2.0-liter, four-cylinder engine or a 3.8-liter V-6. Millen opted to equip his with the 4.6-liter V-8 that Hyundai reserves for the Genesis sedan. In the factory four-door, the engine pumps out 375 horsepower. Millen's motor provides 500 horsepower thanks to a set of JE pistons; an 11- to-1 compression ratio; eight individual throttle bodies as part of a custom induction system; custom exhaust headers and exhaust system; and an AEM aftermarket engine control module that coordinates with the factory-installed computer, thus maintaining all dash and gauge-cluster functions. He also installed a Mendeola five-speed sequential transmission with a limited-slip differential and DriveShaft Shop axles. An RMR (R Millen Motor Sports Sales) Signature Edition body kit includes carbon fiber spoiler. BASF did the custom RMR Rosso paint color. RMR, which is based in Huntington Beach, Calif., also built several of the vehicles used in "The Fast and the Furious" movies. Click here for more on Rhys Millen's souped up Hyundai Genesis Coupe.

Kia Will Unveil Sleeker Sportage at Geneva Show
Kia Motors Europe will unveil its new Sportage medium SUV at the Geneva auto show on March 2. According to Automotive News, the third-generation Sportage reveals a significant shift in design from the current model, moving away from the rugged off-roader look of the first Sportage, launched in 1993, to sleeker crossover proportions. Click here for a picture of Kia's planned new model. Kia said the new Sportage is longer, lower and wider than the second-generation model, introduced in 2004 and restyled in 2008, giving the latest model a more dynamic exterior look, as well as more space for people and cargo in the interior. The automaker indicates it will have a range of highly competitive diesel and gasoline engines. The crossover will be produced alongside its ix35 sister model from parent company Hyundai Motor Co. The new Sportage will go on sale Europe in September, with hopes that it will help to boost its sales in Western Europe to 252,000 units this year from 242,000 in 2009, despite its forecast of a total market decline of between 8 and 10 percent in 2010. Click here for more on Kia's launch of its redesigned Sportage crossover SUV.

Best New-Car Incentives
According to Forbes, when selling cars, incentives can be beneficial to consumers. A little extra cash can make all the difference: The $26,320 Nissan has a $4,000 cash rebate that is 15.2 percent off its MSRP. Even with its Assurance program attached to all of its new-car sales, Hyundai has competitive rebates as well. To find the best deals in February, Forbes used customized data provided by Edmunds.com, an automotive research Web site. Analysis included all 2010 vehicles sold in the U.S., calculating cash rebates as a percentage of base retail prices. Vehicles with the highest percentages in each segment made the list. Financing did not factor into the equation, since most automakers offer it to buyers as an either/or option with cash rebates. Forbes' list evaluates customer incentives - they include cash-back rebates, low-interest financing, or other perks offered directly to buyers. Dealer incentives, on the other hand, are factory-to-dealer cash deals that the salesmen are not obligated to pass on to consumers. Among the overall top 10 on Forbes' list, three are midsize cars, and three are mid-size SUVs. Click here to view the entire list. Click here for in-depth analysis from Forbes on the best incentives during the month of February.

Carfax and PureCars: Leading to Greater Online-Customer Confidence
In an effort to help online vehicle shoppers more quickly identify which cars best meet their needs and buy with confidence, PureCars has partnered with Carfax, the most trusted provider of vehicle history information and an AIADA Affinity Partner. Dealers give all visitors to PureCars.com free access to Carfax Reports they've purchased for their inventory. PureCars Value Reports with Carfax highlights give buyers important details about their car of interest up-front, such as great price, vehicle certification, ownership history and reported accidents, among others. Chris Connolly, Dealer Principal at Herb Connolly Auto Group noted how "it's a huge advantage for shoppers to view the Carfax Reports linked to our listings and see how our pricing measures up against the market. It's true - when you give customers what they need, they'll buy faster and we make more money." A recent independent study shows that the inclusion of Carfax Reports in web listings greatly influences an online shopper's dealer choice. In fact, PureCars.com allows used car shoppers to narrow their search results to include only vehicles listed with free Carfax Reports. To learn more about this new partnership, click here. To become a Carfax-subscribing dealer, call 800-444-0145 or click here.