July 8, 2010

Automakers Hold Line on Discounts as Sales Moderate
Automakers disappointed by June sales are extending discounts - and in some cases modestly increasing rebates and enhancing loan terms - on new cars and trucks to entice skittish shoppers. According to Automotive News, light vehicle sales rose just 14 percent in June from depressed levels in June 2009. Click here to check out AIADA's Market Watch sales report for the month of June. "We will see more generous incentives in July," said Jessica Caldwell, senior analyst at Edmunds.com. Edmunds estimates July average per-vehicle incentives will be at or above the $2,600 level in June, said Caldwell. While inventories rose from July 1 compared to June 1 for most brands, they remain low by historical standards. That gives automakers room to be prudent with discounts, analysts say. Another reason automakers won't be piling on the discounts any time soon: They have cut factory capacity and other costs enough that they can operate profitably at the industry's current sales levels. Jeff Schuster, executive director of forecasting for J.D. Power and Associates, said incentive spending has been fairly flat since automakers eased back from generous deals in March. He estimates June incentives averaged $2,800 vehicle. Click here to read the full report on what consumers can expect from automaker sales incentives.

Minivan Image Gets Makeover
The words "swagger" and "minivan" aren't heard often in the same sentence, but that's the theme of a popular YouTube video that tries to take some of the dorkiness out of driving a minivan. The Detroit News reports that a big hit on the Web, Toyota's hip-hop ad for its new Sienna minivan features a couple with little kids rapping about their "Swagger Wagon." Click here to watch the ad. Minivans have been one of the hardest hit segments in recent years, with sales now languishing at a third of their peak levels. Forecasters expect the Sienna and other new and modified minivans coming out during the next year to boost demand, but not to the historic highs of 1.4 million units recorded in 2000. Beyond the recent slump in demand that knocked the overall market, minivans face tough competition from crossovers, which have many minivan attributes without the image problems. Some automakers - like GM and Ford - have quit the segment, but a handful of automakers are sticking with it. In addition to the Sienna, a new Honda Odyssey will go on sale this year, and the next-generation Nissan Quest will come out in early 2011. Click here for recently-released photos of the all-new Nissan Quest. For more on the minivan's image makeover, click here.

Toyota Slows its Development Process to Boost Quality
Toyota Motor is taking more time to develop cars and trucks and faces higher expenses as the world's largest carmaker seeks enhanced vehicle quality following its worst recall crisis. According to USA Today, the company is spending an average of four weeks more on development to allow for added quality checks and has expanded its quality-review group to 1,000 engineers, Executive Vice President Takeshi Uchiyamada told reporters Wednesday in Toyota City, Japan, where the automaker is based. Such efforts will probably increase costs for the next year or two, he said. "Temporarily, the cost might increase," said Uchiyamada, who is leading Toyota's product-quality and manufacturing operations. "But by improving the development process, we'll better stabilize quality." The average vehicle-development time for a model for the Japanese market has been 24 months, he said. Toyota in May created the "design quality innovation division" that's now working with vehicle-development teams to ensure flaws are caught and corrected before models go into production, Katsutoshi Sakata, the group's general manager, told reporters. Along with increased reviews of components, engines, transmissions, and electronics, Toyota is spending more time with customers as part of the development process to understand how they use the vehicles in daily driving. Click here to read more about what Toyota is doing to revamp its safety and quality reputation.

A Maserati for the Masses
Maserati is set to build a midsize sport luxury sedan to rival the likes of the BMW 5 Series/M5, Mercedes CLS/AMG, Jaguar XF/XFR, and Cadillac CTS/CTS-v. The car will be smaller than the Quattroporte, which will continue. According to Motor Trend, it will go on market about 2014, probably as a '15 model in the U.S. Although it's in the product planning stage, there's no frozen design, and running prototypes are still years away. Maserati wants to become a "relevant player" within its chosen luxury segments. Adding the new model would allow it to strengthen dealer coverage and brand visibility. The all-new car is part of Maserati's 2010-'14 business plan, which Fiat Group CEO Sergio Marchionne recently revealed to investors. For 2013, Maserati will renew the Quattroporte, with plans to trim the price of the base model about 10 percent, while keeping the upper version where it is. Officials are aware quality needs to be improved too. Even with the new, cheaper entry-level model, there would still be space between the base Quattroporte and the top of the new more compact sedan, but Maserati would have a wider range of cars at better prices, pushing up the chances of sales headway. Click here for more on Maserati's sales plans.

The World's Most Beautiful Cars
Looks aren't everything. Given a rainy day on a pock-marked street, even a luxury roadster will look and feel less than stellar. But when it comes to attracting attention on a showroom floor, appearance does matter - a lot. Take, for instance, the case of Jaguar's new XJ sedan. The $113,000 XJL Supersport is just one of 10 cars on Forbes' list of this year's most beautiful cars. Others, like the $240,000 Ferrari 458 Italia and $183,000 Mercedes SLS AMG, are sportier than Jag's large sedan - but they all have an allure that's hard to resist. Click here to check out Forbes' list of the year's best looking cars. To compile its list, Forbes asked some of the best luxury-car experts for their nominees. Cars nominated for the list must be in production for 2010 - no pre-production models are allowed, like the admittedly beautiful Fisker Karma, or the sleek new Range Rover Evoque. The $197,850 Aston Martin Rapide received multiple nominations from the judges. Another four-door winner, but with a more staid bearing, is Bentley's new flagship, the $285,000 Mulsanne. For expert picks on the most beautiful vehicles available in car showrooms today, click here.

An Image Upgrade that Can Save You Money
A dealership lighting upgrade will slim down your utility bill by curbing excess energy consumption. You'll improve your dealership's image and stand out from the competition. Venture Lighting, an AIADA Affinity Partner, has been the worldwide leader in metal halide innovation for over 25 years, specializing in energy-efficient exterior and interior lighting packages for retail automotive applications. Their manufacturer-direct pricing can save you up to 25 percent on high-quality, sustainable, and energy-saving lighting solutions. You can enhance your store's image with high-definition lighting from Venture's state-of-the-art Natural White® product line, designed specifically for the auto industry. At night and indoors, Natural White makes colors appear exactly as they do under direct sunlight, yet each lamp consumes less energy than traditional metal halide light sources. And Venture will help keep you "green" with their Smartpac® lamp recycling and utility rebate assistance programs. For more information on a lighting upgrade for your dealership, contact Venture at (800) 657-0077 or email aiada@venturelighting.com.

Around the Web
Reader Review: 2011 Hyundai Sonata SE [KickingTires]
2011 Porsche Cayenne First Drive [Edmunds Inside Line]
Sneak Peek: Nissan's Redesigned Quest Minivan [Driver's Seat]
Top 5 Fuel Efficient Vehicles We Want (But Can't Have) [Translogic]