March 5, 2010
In Geneva, the Road to Recovery Still Bumpy
Europe is putting its best foot forward at this week's annual Geneva international auto show, which opened to the media Tuesday. The region's first major auto show of the year is expected to offer a plethora of new-vehicle introductions that include an impressive array of hybrid and full-electric vehicles to meet new stringent emission standards. But according to Wards, there are many speed bumps ahead for auto makers. Top of mind is the worry consumer demand will begin to fall big time as countries pull the plug on their scrappage incentive programs, particularly in Italy, Spain, and the U.K. Indeed, some estimates see sales falling in Europe by 2 million units this year. Additionally, Europe - like the U.S. - has been slow to exit the global recession. Economic recovery in the European Union has slowed to a crawl, much of it due to weakness in Germany, which last year was the region's powerhouse. "The road to recovery remains stony," Daimler Chairman Dieter Zetsch, who also heads up the ACEA European industry group, is quoted by the Associated Press as saying. "While the worst is hopefully behind us, the upswing is far from stable." For more on the outlook in Europe, click here.
Toyota Hopes 0% Financing Will Lure Customers
Toyota's U.S. arm is again looking to zero percent financing to pull it out of a sales slump. The last time Toyota rolled out a nationwide incentive plan like this was in late 2008, as the entire U.S. auto industry was getting crushed by tight credit and a collapsing economy. CNN reports that with its public image dented by massive high-profile recalls, the Japanese automaker's sales were down 9 percent last month compared to a year ago, even as Ford sales were up 43 percent and General Motors were up 12 percent. Toyota estimates it lost about 18,000 sales last month due to the recalls, said Bob Carter, group vice president of Toyota Motor Sales, USA's Toyota division. Click here for AIADA's response to General Motors' incentives targeting Toyota and Lexus owners. Toyota called its incentive program, which begins immediately and runs through April 5, "the company's most far-reaching sales program in its history," in a corporate announcement. Toyota is offering 0 percent financing for as long 60 months on eight of the automakers' most popular models. They are the Avalon full-size car, Camry mid-size car, Corolla and Matrix compact cars, Yaris subcompact, Highlander, and Rav4 crossover SUVs, and the Tundra truck. For more on Toyota's special offer, click here.
India's Mahindra to Set Date for U.S. Launch
Mahindra & Mahindra, India's largest utility vehicle and tractor maker, hopes to announce in two to three weeks a timeframe for the launch of its pickups in the United States, a top official said on Thursday. Click here for a picture. According to Automotive News, the U.S. market is crucial for Mahindra to achieve its objective of becoming a global player, but the launch, originally expected late last year or early 2010, has been delayed due to safety and emission certification. "The process is taking a bit longer than what we anticipated," Pawan Goenka, president and member of the management board, said in an interview. He said an application would be made to the U.S. Environment Protection Agency as soon as the vehicle completed the tests required, which should be known in about two to three weeks. "Since our long-term aspiration is to be known as the premier SUV and pickup manufacturer in the world, it is but natural that we must sell and be successful in the U.S.," he said. "Without that we cannot call ourselves a premier player in that segment." The pickup will be competing with Ford Motor Co.'s 2010 Ford Ranger and Toyota Motor Corp.'s Tacoma models in the United States. For more on Mahindra, click here.
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