Report: Detroit automakers head to Congress to talk Japanese, Korean currency manipulation
Filed under: Government/Legal, Japan, Chrysler, Ford, GM, Earnings/Financials, South Korea
We can't even pretend to know the first thing about currency manipulation, so we won't bother trying to explain how artificially depreciated currency can help imports into the U.S. market. But American manufacturing groups have long accused the governments of China, Japan and South Korea of manipulating their currency to gain an bigger foothold in the U.S. market, and domestic automakers say Japan and South Korea in particular have been artificially depreciating their currency for years. Earlier this month, The American Automotive Policy Council, which represents General Motors, Ford and Chrysler, met with Obama Administration auto task force head Ron Bloom about the manipulation of the Japanese yen and Korean won, and now the AAPC is talking with members of Congress.
A report from The Detroit News shows that Japan added $56 billion to a "currency interventions fund" last week - a fund that apparently has a substantial cash reserve. Further, Japanese Finance Minister Naoto Kan told the Japanese Diet that his government is ready to manipulate currency by depreciating the yen. The AAPC claims that the actions of the Japanese and Korean governments put American manufacturing jobs at risk, adding:
"American auto companies will consider intervention in foreign exchange rate markets by the Japanese government that weakens the yen as unfair competition directed at the American automotive market and American workers as the industry begins to recover from the economic recession."
The DetNews claims representatives from the Japanese government were not available to comment on the group's claims. For its part, AAPC says that the goal of meeting with Congress is action:
"we urge you to make clear to the governments of Japan and Korea that the U.S. Congress considers such interventions unacceptable and that any decision to proceed with or continue such interventionist policies will be strongly and directly challenged by the United States in defense of fairness and American jobs."
Another area of concern for the AAPC is what they allege is the inherently closed nature of Asian auto markets. The Organization for Economic Co-Operation and Development claims that the two countries are currently the most closed out of the 30 markets with auto industries. The ECOD also notes that domestic automakers in those countries account for 95.5 percent of all auto sales.
[Source: The Detroit News]
Report: Detroit automakers head to Congress to talk Japanese, Korean currency manipulation originally appeared on Autoblog on Wed, 17 Mar 2010 18:01:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsReport: Congressmen spending thousands of dollars a month to lease ordinary vehicles
Filed under: Car Buying, Government/Legal, Ford, GM, Mercury
Remember when Congress got all up in the grilles of Detroit automaker chief executives for traveling to Washington in luxury courtesy of the companies private jets? It appears our lawmakers are less than perfect when it comes to sourcing their own cost-effective transportation, as Politico is reporting that at least 10 members of the House of Representatives have monthly vehicle leases that exceed $1,000 per month in taxpayer money.
But those leases, they're for specialized, bulletproof SUVs to keep our elected officials safe, right? Well, not so much. A little digging from Politico shows that members of Congress just don't know how to shop around. Of the top five lease prices listed, the most exorbitant monthly outlay at least appears to come with the best excuse. Missouri Democrat Emanuel Cleaver pays a reported $2,900 a month for a mobile office equipped with wifi and a wheelchair lift. Representative Cleaver justifies the hefty price tag by arguing that he uses the vehicle as his mobile office, foregoing the off-site office many other representatives have. Oh, and the mobile office runs on used cooking oil.
Other congressmen have less credible excuses, but it apparently isn't stopping them from giving it the old college try. House Intelligence Committee Chairman Silvestre Reyes (D-Texas) $1,628 to lease a GMC Yukon. Reyes blames short lease terms and fuel efficiency regulations on the high lease prices. Meanwhile, we suspect that every other American with decent credit can choose from dozens of CUVs or SUVs with 24-month leases for less than $600 per month.
Rep. Carolyn Cheeks Kilpatrick (D-Mich.) rolls in a $1,230 per month Chevrolet Tahoe. A spokesperson for Cheeks Kilpatrick claims the 13th District rep. leases the vehicle because General Motors headquarters resides within her district. Ironically, Cheeks Kilpatrick's son, Kwame Kilpatrick, the former Detroit mayor who left office in disgrace after being found guilty of perjury, caught plenty of flack a few years back for spending $1,000 per month for a taxpayer-funded Lincoln Navigator.
Rep. Harry Teague (D-N.M.), reportedly worth more than $36 million dollars, pays $1,266 per month for a Chevrolet Malibu. That's right, folks, a Malibu. Not a bad vehicle by any stretch, but $1,266 per month? Really? Other high lease offenders include Rep. Jesse Jackson Jr. (D-Ill.), who rides in a $1,259 per month hybrid Toyota Highlander, Rep. Lacy Clay (D-Mo.), who trolls the St. Louis streets in $1,059 a month Ford Escape hybrid and Rep. Paul Kanjorski (D-Pa.) with his $1,026 per month Mercury Mariner hybrid. Not to be left out, Rep. Sam Johnson (R-Texas) apparently also spends $1,143 every month for an unspecified leased vehicle, and multimillionaire Rep. Gary Miller (R-Calif.) leases a Lexus RX400h for $843 taxpayer-funded dollars a month, reportedly arguing that he needs the vehicle's bigger accomodations because he's over six-feet tall and has to make an hourlong commute twice a week.
Head over to Politico to read more about congress and the expensive vehicles they lease on your dime. We're thinking there are thousands of Autoblog readers who can help their congressmen procure a more cost effective lease vehicle than some of the ridiculous prices you just read about. Any volunteers?
[Source: Politico]
Report: Congressmen spending thousands of dollars a month to lease ordinary vehicles originally appeared on Autoblog on Wed, 17 Mar 2010 13:29:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsReport: Toyota kicks off industry-wide incentive blitz for March
Filed under: Marketing/Advertising, Ford, GM, Honda, Toyota
When the U.S. auto market crashed in the fall of 2008, automakers bumped up incentives in a big way to clear dealer lots of bloated inventory. But when Cash for Clunkers drained inventory - with industry-wide incentives reaching $3,165 per vehicle - while simultaneously removing nearly 700,000 used vehicles from the market, automakers quickly weened themselves off incentives.
Steering clear of heavy incentives likely wasn't all that difficult for Toyota, as the Japanese automaker has traditionally kept prices near MSRP even in the leanest of times. That changed, though, when Toyota became synonymous with the term "unintended acceleration." Toyota's nightmare public relations scenario came true as the traditionally quality-rich automaker was forced to recall over eight million vehicles. Sales dropped like a stone in the first two months of 2010 while every other automaker outside of Auburn Hills, MI saw substantial gains compared to a rough 2009.
Toyota had to do something to get foot traffic on the showroom floor, so the Japanese automaker took the outrageous step of offering zero-percent financing on its most popular models. Analysts at Edmunds and elsewhere tell us that the early returns from the big discounts are positive, with Toyota sales reportedly up an estimated 47 percent versus March, 2009.
But with Toyota once again rolling, other automakers are looking to turn more sales, and incentives appears to be the best way to do that. Detroit automakers are back on the zero, and even Honda is spending big on incentives. Barclays Capital tells Automotive New that a 60-month, zero-percent loan on a $30,600 vehicle costs an automaker a staggering $4,857. That's a lot of coin, but the early returns of cash on the hood are positive. And Edmunds reports that early March sales are up to 12.5 million on an annualized basis, the highest levels achieved since the Clunkers program.
So it appears as though Toyota started a potentially expensive, drawn-out incentives war. In the short term, customers win regardless of which automaker makes out best with these fresh incentives. Over the long haul, though, automakers need to make a profit so they can make more of the products we love so much.
[Source: Automotive News - Sub. Req. | Image: Ronaldo Schemidt/AFP/Getty Images]
Report: Toyota kicks off industry-wide incentive blitz for March originally appeared on Autoblog on Tue, 16 Mar 2010 18:29:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsReport: Geely may need to come up with $1.4B to fix damaged Volvo after purchase
Filed under: Ford, Volvo, UAW/Unions, Geely
It's going to cost up to $2 billion for Zhejiang Geely Holding Group Co. to take ownership of Volvo, but according to a new report out of BusinessWeek, that lofty figure is just the cost of entry. Volvo union members and the board have apparently told the Chinese automaker that it will need at least $1.4 billion to repair the storied Swedish automaker. Union head Glenn Magnusson reportedly says the money will be needed for the next year's product development, marketing, production and distribution. Magnusson tells BW that Geely has yet to demonstrate that it has the financials to sustain Volvo, adding "we haven't seen anything yet and we're not satisfied."
Further, Volvo board member Magnus Sundemo feels $1.4 billion may be a little low, adding that Geely will need to invest "at least as much as they're paying to buy us." One reason Volvo insiders feel the company will need plenty of cash is to satisfy Geely's desire to build up Volvo in China, with the goal of assembling 200,000 vehicles per year in The Land of the Great Wall.
Ford Motor Company and Geely, who have been in talks seemingly forever, are looking to get a deal done by the end of March. Regulatory filings are expected to draw out the process of officially handing over ownership of the Swedish automaker to June 30 at the earliest.
[Source: BusinessWeek]
Report: Geely may need to come up with $1.4B to fix damaged Volvo after purchase originally appeared on Autoblog on Fri, 12 Mar 2010 10:28:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFord is Hiring! 3.7-liter V6 for Mustang means 60 new jobs in Cleveland
Filed under: Plants/Manufacturing, Ford
2011 Ford Mustang V6 - Click above for high-res image gallery
There was a time in the illustrious history of the Ford Mustang when having an engine from the Cleveland Engine Plant meant that you were sporting a 351 cubic-inch V8 underhood. Times have changed quite a bit over the past 35 years, as Ohio's newest Mustang engine contains but six cylinders yet produces an impressive 305 horsepower and an even more brow-raising 30 miles per gallon highway.
Ford expects the 3.7-liter-powered Stang to account for two thirds of Mustang sales, and The Blue Oval is so confident in customer demand for its six-cylinder offering that it's hiring 60 new workers to assist production. To prep the Cleveland plant for its newest engine, Ford is also investing an additional $155 million to bring the plant up to speed.
Ford Powertrain Manufacturing Director Bill Russo appears to be pretty high on the Cleveland facility, adding that it is "not only building fuel-efficient engines for some of our most popular Ford products, it's becoming a hub for the future of Ford powertrains." A hub with a Help Wanted poster on the front door, no less.
While the news at Cleveland appears to be very good, the state of powertrains at Ford is even better. The Oval reportedly pumped a staggering $1.8 billion into powertrains for the 2011 model year, and has nine total new engines on the way. Three of those new powertrains will find their way under the hood of the Mustang, as the 3.7-liter, 5.0-liter and supercharged aluminum 5.4-liter powerplants are all new for 2011. Pony car powertrain fans can revel in the fun by pouring over the horsepower-centric press release after the jump.
[Source: Ford]
Continue reading Ford is Hiring! 3.7-liter V6 for Mustang means 60 new jobs in Cleveland
Ford is Hiring! 3.7-liter V6 for Mustang means 60 new jobs in Cleveland originally appeared on Autoblog on Mon, 01 Mar 2010 08:28:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsReport: Ford to benefit most from Toyota’s woes in February sales totals
2010 Ford Fusion Sport - Click above for high-res image gallery
Toyota is bracing for lower February sales as its massive recall and the ensuing media storm have cast a shadow over the automaker. Just how low can Toyota go? The Detroit Free Press says it could see its lowest US market share in over five years this month, with about 12 percent of U.S. sales.
Most analysts anticipate that Toyota will have a very rough month, but the big question on their minds is which automakers stand to gain the most from Toyota's pain. Edmunds and TruCar reportedly think that winner will be Ford, as they estimate that the Oval will see a 35-percent sales increase. If correct, that'll vastly outpace the nine to 14 percent increase for the month that was previously forecasted.
Despite Ford's anticipated performance and projected double-digit gains for the industry as a whole, the market is still struggling. After all, these February 2010 sales projections are increases in relation to the dismal February 2009 numbers, which came as the recession helped deliver the industry its lowest sales levels in 30 years. February 2010 sales are also expected to be generally lower because of the multiple east coast snowstorms that kept customers out of dealerships for much of the month.
[Source: The Detroit Free Press]
Report: Ford to benefit most from Toyota's woes in February sales totals originally appeared on Autoblog on Sun, 28 Feb 2010 09:19:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFord SVT Raptor outselling estimates, black most popular color
2010 Ford F-150 SVT Raptor - Click above for high-res image gallery
While we wholeheartedly love the F-150 SVT Raptor, part of us wondered whether there'd be many takers for a $40,000 truck that was purpose-built for the sand dunes. Looks like we needn't have worried, as it appears demand is very strong for the Raptor. In fact, Ford had its flacks issue a press release bragging about just how successful the Raptor's been so far. The factory super-truck has reportedly found 5,300 takers to date, and F-150 marketing manager Mark Grueber says Raptor "is so popular that we actually wound up building more 5.4-liter V-8 models than we had originally anticipated."
The reason Ford thought customers might be interested in waiting to pull the trigger on a Raptor is the spring availability of the Dearborn, MI-based automaker's new 6.2-liter V8 engine. The new 6.2 promises 411 horsepower and 434 pound-feet of torque, or 91 more ponies than the soon-to-be-mothballed 5.4. Ford's already taking orders for the 6.2-liter model, and we're thinking they'll only increase in number over the coming weeks and months.
After filling out 5,300 orders, Ford also has a better idea of which amenities customers want in their Raptors, and the content story is a good one for the automaker. Ford reports that customers are checking option boxes for the luxury package, reverse-sensing camera and moonroof at a rate of at least 79 percent. Ford's expensive but fantastic touchscreen navigation with SIRIUS Travel Link[TM] is being chosen in 62 percent of Raptors sold. And while we loved the Raptor in Molten Orange, 52 percent of customers are opting for Tuxedo Black. Hit the jump pore over Ford's bragfest press release.
[Source: Ford]
Continue reading Ford SVT Raptor outselling estimates, black most popular color
Ford SVT Raptor outselling estimates, black most popular color originally appeared on Autoblog on Sat, 20 Feb 2010 12:18:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsDealers report new Mercury compact will exhume Tracer name
Filed under: Marketing/Advertising, Ford, Mercury
If you're a big fan of Mercury... okay, there probably aren't many Mercury fans, but it looks like Ford is hoping to change that by 2011 - or at least stop certain franchisees from crumbling. On Sunday, we told you that Ford President Mark Fields told dealers at the company's annual meeting that an all-new Focus-sized offering was heading over to the product-starved Mercury marque, and now we have fresh rumors of said vehicle's name.
Now, Automotive News quotes two dealer sources as saying that the next Mercury will carry the Tracer name - a marque that's been lost to the ether for some time. But that apparently isn't stopping Ford. At any rate, we're sure the nation's Lincoln-Mercury dealers will be happy to have a new Jill Wagner-pitched offering on their showroom floors, no matter what the name may be. Let's just hope that the powers that be don't dig up the Trio trim level while they're at it.
In other Ford news, the Blue Oval began accepting orders for its subcompact Fiesta yesterday. A reported 60 percent of dealers said that they would order high trim vehicles when they become available. Ford has started a training program to help dealer salespeople sell the newest and most eagerly awaited Ford model to grace dealer forecourts in some time.
[Source: Automotive News - subs. req.]
Dealers report new Mercury compact will exhume Tracer name originally appeared on Autoblog on Tue, 16 Feb 2010 11:00:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsVideo: Motor Trend gets first ride in 2011 Ford Mustang V6, Camaro and Challenger compared
Filed under: Coupe, Videos, Ford
2011 Ford Mustang V6 - Click above for high-res image gallery
The 2010 Ford Mustang was by all accounts a pretty significant refresh compared to the 2009 model, with a vastly superior interior, better ride and handling and, some would say, improved outward aesthetics. But there was still something missing. The Blue Oval used carry-over powertrains, and in the case of the 210-horsepower V6 model, nothing changed.
For the 2011 model year, Ford is rectifying that mistake two-fold. The 5.0-liter V8 gets a great deal of press for its impressive 412 hp and 390 pound-feet of twist, but many members of the Autoblog team are just as excited to get their hands on the new 305 hp, 280 lb-ft 3.7-liter V6 offering. We'll likely have to wait a bit longer to curb that urge, but the folks over at Motor Trend have already been given a taste.
MT's Arthur St. Antoine was invited to Ford's Arizona proving grounds to spend some seat time
[Source: Motor Trend]
Video: Motor Trend gets first ride in 2011 Ford Mustang V6, Camaro and Challenger compared originally appeared on Autoblog on Mon, 01 Feb 2010 15:01:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFord employees take Motor Trend calipers to Disney World, hit TSA snag in Detroit
Filed under: Sedan, Etc., Government/Legal, Safety, Ford
When we look at Motor Trend magazine's golden calipers, we think of a prestigious trophy awarded each year to the publication's top car and truck of the year. Apparently, the Transportation Security Administration officials at the Detroit Metropolitan Airport see a weapon of mass destruction. Or something.The proud engineers at Ford have been taking their well-deserved 2010 Ford Fusion Car of the Year award all over town, taking pictures and having a little fun, mimicking what athletes do when they win Lord Stanley's Cup in hockey or the Lombardi Trophy in football. Ford Research & Advanced Engineering employee Tony Phillips went as far as Disney World with the award, but apparently not before coming to the attention of the TSA at Detroit Metro airport. Phillips had rightly brought the sizable trophy onto the plane as a carry-on - after all, who would want to tell Allan Mulally that they lost the trophy at baggage claim?
MT's shiny hardware was eventually let on the plane after "some interesting discussion, and it made its way to Orlando to ride some rides and hang with Mickey. Surprisingly, the Orlando TSA agents were more familiar with Ford's award than were the security agents in the Motor City, and congratulations were given to them on the accomplishment. Just as an FYI for Ford, you can bring by your trophy to Autoblog headquarters any time you wish. We won't even frisk you at the door.
[Source: @Ford Online]
Ford employees take Motor Trend calipers to Disney World, hit TSA snag in Detroit originally appeared on Autoblog on Wed, 27 Jan 2010 18:29:00 EST. Please see our terms for use of feeds.
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