August 5, 2010

Jobs Returning to Auto Sector
The auto industry is emerging from the deepest downturn in decades as a smaller but arguably healthier sector that is now starting to add jobs. The Detroit News reports that Ford, for example, will bring more of its supplier work in-house and previously announced it would hire more workers to build the Ford Explorer SUV later this year. Hyundai is considering expanding production capacity for its hot-selling Sonata sedan in Alabama. Suppliers such as BorgWarner are hiring too. There are 50,000 more auto-related jobs than there were a year ago, and the forecast is for the industry to add 182,000 manufacturing jobs through 2012, said Sean McAlinden, chief economist with the Center for Automotive Research. After steady gains in U.S. monthly sales, including a 5.2 percent boost in July, the industry is on track to sell about 12 million vehicles this year - but that is still well below the 17 million peak a decade ago. Click here for AIADA's July Market Watch sales report to see how July sales shaped up. Hyundai U.S. chief John Krafcik said the company will make an announcement in about a month about boosting Sonata production. At BorgWarner, revenue this year should be similar to 2007 or 2008, said Chief Executive Tim Manganello. For more on signs the auto industry is gradually on the upswing, click here.

Obama Says He'll 'Keep on Fighting' to Pass 'Card Check' Bill
President Obama told the AFL-CIO on Wednesday that he would "keep on fighting" to pass the controversial "card check" bill. According to The Hill, Obama said during a speech to the labor group's executive committee meeting that he continued to support the Employee Free Choice Act (EFCA, or "card check") among the litany of proposals he favors to help workers. "[W]e're going to keep on fighting to pass the Employee Free Choice Act," Obama told the union. "Getting EFCA through Senate is going to be tough. It's always been tough; it will continue to be tough. We'll keep on pushing," he said. While the legislation had some support in the House, it's failed to muster the 60 votes necessary to survive a filibuster in the Senate. Sen. Tom Harkin (D-Iowa), a key Democrat and proponent of the legislation, has suggested that some form of the bill could move during the lame-duck Congress between Election Day and early January, when a new Congress is sworn in. AIADA remains opposed to card check legislation.Click here for more on the issue at AIADA's website. Click here to read the latest from The Hill on President Obama's plans for the legislation.

Hyundai Isn't Slowing Down
Just as Detroit's recovering car companies were starting to feel good about finally competing effectively against Japanese rivals Toyota and Honda, John Krafcik arrived in town Wednesday to give them all a whack across the head. Tom Walsh writes at the Detroit Free Press that for all the progress that Ford, General Motors, and Chrysler have made in the past year, Korea's Hyundai continues to set a blistering pace as the world's hottest car company. In a speech at the annual Management Briefing Seminars, Krafcik, president of Hyundai Motor America, rattled off the intimidating specifics of the company's 10-year surge. The automaker posted a 19 percent gain in July and its U.S. sales are up 24 percent this year. Not counting sales to corporate fleets and rental companies, the midsize Hyundai Sonata now ranks among the retail leaders in that segment, along with the Toyota Camry, Honda Accord, Ford Fusion, Nissan Altima, and Chevrolet Malibu. No one knows what the future will bring, but Hyundai's rapid rise is a cautionary reminder to keep a watchful eye on the rear-view mirror. Click here for more from Tom Walsh on what fellow automakers have to fear from Hyundai's blazing success in recent years.

New 2011 Volkswagen Jetta Blasts its Rivals off the Road
The 2011 Volkswagen Jetta is terrific, according to James R. Healey of USA Today. The vehicle generates about half of VW's U.S. sales, and the redesigned 2011 Jetta must take the lead if VW is to hit its mark of trebling sales the next few years. So, VW has made the 2011 Jetta, on sale this October, bigger, much roomier, more refined, and less-expensive than the model it replaces to lure new customers. Click here for a photo gallery of the newly redesigned Jetta. However, along with its revamp, VW also has made some changes that could rile its core cadre of loyalists. The changes to keep costs down include fewer available combinations of equipment and trim. The rear brakes are also old style drums on most models, not the discs of the 2010 model. However, writes Healey, it could be that most people won't care about Jetta's apparent technical backsliding. The evidence: The test cars drove great. Smooth, nimble, quick, comfortable, assured, refined. Judged by time in the testers, and from a general perspective rather than a VW partisan's view, the new car kicks the old one - and many rivals - right off the road. Click here for more from Healey on the new Jetta.

The 7 Most Dangerous Trucks
U.S. sales of cars and trucks were up almost 15 percent in July, and are on track to reach 11.8 million units by the end of the year. According to Forbes, the biggest gains came in the truck and luxury SUV segments. But some trucks and truck-based SUVs still posted declines in sales for the month, including the Chevrolet Colorado and Hummer H3. Why didn't they do as well as the rest of the segment? Perhaps because they have some of the lowest safety scores in their class, making them among the most dangerous new trucks on the road. Forbes' list of the year's most dangerous trucks is based on Insurance Institute for Highway Safety crash-test results for 2010 model-year pick-ups. (Truck-based SUVs were also included.) Click here to view the list. After each crash, dummies are checked for trauma in 28 body regions for front crashes, and 37 regions for side crashes. Each truck earned a value for overall front, side and rear ratings, with more points awarded for better results, for a maximum possible total of 12 points. The vehicles on our list scored the lowest number of total points of all trucks. Click here to read Forbes' coverage of the most dangerous trucks.

CARFAX Recognized for Environmental Efforts
Carfax, along with partners Michigan International Speedway (MIS) and The Conservation Fund, have received a "Communitas Award" for their efforts to lessen the environmental impact of stock car racing. The organizations teamed up to make the "Show Me the CARFAX" Race Weekend at MIS the first carbon offset stock car race event in history. The extensive joint efforts of Carfax and MIS included tree planting, energy use reduction and increased recycling - that helps neutralize more than 4,000 tons of greenhouse gases released into the atmosphere during the 'Show Me the CARFAX' Race Weekend. Together, Carfax, MIS, and The Conservation Fund have planted more than 7,500 trees to neutralize carbon emissions. To read more, click here. Millions of used car buyers and sellers each year rely on Carfax, an AIADA Affinity Partner and the most trusted provider of vehicle history information. To find out how you can become a CARFAX Dealer Subscriber, click here or call (800) 444-0145.

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