October 2011 Sales: VW, Chrysler Up Big as Market Levels

It was a good month despite the numbers. Automakers said October’s Seasonally Adjusted Annual Rate (SAAR) was the best of the year, at roughly 13.5 million including medium- and heavy-duty trucks, up from 13.2 million in September. Ford and GM cited somewhat encouraging job growth and looser credit for stronger sales.

It’s like malaise; only it looks pretty good next to 2008.

That means that seasonally, Octobers never are terribly good for selling cars and trucks. Another anomaly is that General Motors’ sales rose just 2 percent, though the automaker held on to its 19.4 percent market share, which is up roughly one point for the year to date.

This is the type of confusion car sales numbers cause. That 2 percent increase compares October 2011 with October 2010, of course, and SAAR numbers don’t really mean anything by the time you get actual annual numbers.

What the GM numbers mean is that GM has found its natural level, just under 20 percent share. Chevy sales were up slightly while every other division was off slightly. Buick, for one, ended a long streak of year-over-year gains as it sold down the last of its outdated products, the Lucerne, and built on the Enclave, LaCrosse and Regal. GM says Cadillac struggled amidst a strong product and marketing attack from BMW.

Other news outlets have trumpeted Chrysler Group’s “sensational” 27 percent sales hike, but that’s compared with a very lean 2010 number. Last year, Chrysler was slowly getting back on its feet and trying to hang on to a base number of sales as it got production levels back up. Most of its new or refreshed product was still a month or more off. A 27 percent hike looks good until you consider that Chrysler was the number-five automaker in October ’10, somehow keeping ahead of Honda last year.

That’s not to detract from Chrysler’s success this year. It has managed to reach a five-figure number for its midsize Chrysler 200, and Jeep and Ram pickup sales are strong. You’re getting a pretty good indication of how well the top six or seven automakers will do going forward, though Honda will continue to have shortages because of the Thai floods. Hyundai and Kia will continue to eat into competitors’ market share, and based on a strong start-of-production month for the VW Passat, I think that car could get into the top-five list of midsize cars. Which midsize will it dethrone?

This remains far more important for the U.S. market than competition in the compact class. Forget what GM and Ford say about us moving to c-segment cars, like the Europeans. In October, the top-five bestselling midsize cars outsold the top-five bestselling compacts by a margin of 41.2 percent. That’s up from a 28.3 percent margin in September, which admittedly was closer than August’s 34.5 percent. But in July, when gas prices were still about $4 per gallon in most parts of the country, the gap between the top five-bestselling compacts and midsize cars was just 22.8 percent, with the d-segment cars always leading the c-cars.

With EPA fuel mileage numbers pretty close, mostly in the 30s for both midsize and compact highway figures, price in the current economy has had a bigger effect than fuel efficiency in getting more families into compact cars. Compacts like the Chevy Cruze and Ford Focus cost about as much as a mid-trim level midsize five or six years ago. So it’s no surprise that compact crossover utilities, from the ancient Ford Escape to the fairly new Chevy Equinox are doing well. The bestsellers in the category, the Honda CR-V and Toyota RAV4 have been in very short supply since the Japanese earthquake. Americans looking for a bargain are choosing to pay midsize sedan prices for an Equinox or Nissan Rogue, to get the kind of roominess and versatility that makes c-segment hatchbacks so popular with Western European families.

By the way, you can read my sales reporting day updates and other breaking auto industry news by following me on Twitter at MT_Lassa.

And so, to the numbers …

1. GM: 186,895, up 2 percent.

*Camaro up 22.1 percent, to 6,119, versus Mustang, off 7.9 percent, to 4,898, versus Challenger, off 3 percent to 3,097.

*Chevy Cruze was up more than 104 percent versus Cruze and Cobalt in October ’10, to 14,295.

*Equinox outsold it, though, at 15,108, up 18.3 percent.

*Chevy Malibu was off 17.1 percent, to 10,239.

*Chevy sold 3,833 of its new Sonics, 116 Caprices to cop shops and 2,140 Captiva Sports to fleets.

Chevy sold 1,108 Volts, for 5,003 to date. GM sales chief Don Johnson maintains his prediction that Volt sales will total 10,000 by the end of the year. Just 4,997 to go in two months.

*Chevy Silverado, at 36,656, up 6.9 percent, plus GMC Sierra, up 2.9 percent, at 13,362, combined for 50,018, still short of Ford F-Series.

*GMC overall was off 4.6 percent, to 31,609.

*Buick was off 7 percent, to 11,687. Regal was its only gainer, up 39.6 percent, to 2,281.

*Cadillac was off 11.9 percent, to 11,795. Its only gainer was the SRX, up 12.7 percent, to 4,984. Despite heavy advertising, CTS sales fell 7.6 percent, to 3,918.

2. Ford Motor Company: 167,803 up 6.2 percent.

*Ford brand totaled 161,709, up 12.6 percent.

*That means Lincoln struggled at 6,094, down 10.8 percent.

*F-Series had a great month, at 52,511, up 7.1 percent.

*Fusion again was the bestselling domestic midsize sedan, at 18,094, up 4.2 percent.

*The aged, soon-to-be-replaced Escape remained one of Ford’s strongest non-truck models, up 30.6 percent, to 19,046.

*Explorer was up 224.7 percent over the old body-on-frame model year ago to-date, with 11,987 sold. That compares with 7,197 Chevy Traverses, off 12.8 percent, and just 1,910 Ford Flexes, off 6.2 percent.

*Focus was off 0.1 percent, to 12,386.

*Lincoln MKZ was up 5.6 percent, to 1,953, and MKX was up 5.4 percent, to 1,765, though MKS was off 9.6 percent, to 981 and MKT slid 27.1 percent, to 369.

3. Toyota-Scion-Lexus: 134,046, off 6.8 percent.

*Camry was off 9.5 percent, to 22,043 as production of the new model continued to ramp up.

*Corolla was off 9.5 percent, to 16,244. Toyota says this model was among those most affected by parts shortages due to the Japanese earthquake.

*Prius was off 2.6 percent, to 11,008 and included a couple of Prius-vs sold near the end of the month.

*Tundra was off 6.1 percent, to 6,496.

*RAV4 freefell 24.5 percent, to 10,680 units in October.

*Lexus division was off 10.9 percent, to 18,092. The brand’s “December to Remember” annual sales “event” began November 1. That’s a long December.

*RX, Lexus’ bestseller, was off 18.9 percent, to 6,681.

*ES was off 13.3 percent, to 4,300.

*IS was off 11.4 percent, to 2,640.

4. Chrysler Group: 114,512, up 27 percent.

*The 200 was a strong seller, at 11,205 versus 2,221 Sebrings last year.

*Ram pickup remains Mopar’s bestseller, up 21 percent to 21,037.

*Though Grand Cherokee was Jeep’s bestseller at 11,084, off 13 percent, Wrangler continues to sell well, up 25 percent to 9,892.

*Town & Country was off 25 percent, to 6,338.

*Avenger was Dodge’s bestseller, at 7,136, up 145 percent. Caravan was off 13 percent, to 7,100.

*Dodge Journey was up 36 percent, to 5,028.

*Fiat sold 1,965 500s, for 15,826 year-to-date.

5. American Honda: 98,333, off 0.5 percent.

*Accord was up 9.4 percent, to 22,589, edging Toyota Camry by 546 units.

*Civic was off 1.9 percent, to 16,173, which was 71 units below the Toyota Corolla.

*Odyssey was up 8.6 percent, to 10,415.

*Acura sales rose 4.8 percent, to 11,115.

*MDX was off 2.8 percent, to 3,691.

*TSX was up 37.3 percent, to 2,977, and 259 were wagons. Of 24,698 TSXes sold this year, 2,691 have been wagons.

6. Nissan North America: 82,346, up 18 percent.

*Despite several strong months in a row, Nissan has been unable to catch shortage-plagued Honda.

*Altima was up 15.1 percent, to 21,838.

*Rogue recorded a strong 10,034, up 13.2 percent.

*Sales of the new Versa sedan reached 8,889 in its second full month.

*Leaf sales totaled 849 for the month, 8,066 for the year so far.

*Infiniti sales accounted for 6,862, off 13.5 percent.

7. Hyundai: 52,402, up 23 percent.

*Hyundai already has passed 2010’s full-year sales of 538,228, with sales of 545,316 through October.

*Sonata was up 3.9 percent, to 18,192.

*Elantra was up 37 percent, to 13,000.

*Combined with Kia, the company sold 90,092, good for sixth place.

8. Kia: 37,690, up 21 percent.

*Kia sold 8,616 Optimas, versus 1,630 at model changeover in October ’10.

*Forte sales slipped 18.1 percent, to 4,712.

*Sorento slipped 4 percent, to 10,178, though Soul was up 15.8 percent, to 7,109.

9. Volkswagen of America: 28,028, up 39.6 percent.

*New Passat sales of 5,040, best month for the midsize car since December 2005.

*Jetta was up 9.1 percent, to 13,058,with 1,709 of those wagons.

*Diesels accounted for 20.5 percent of all VW sales in October.

10. BMW Group: 27,288, up 17.5 percent.

*Mini sold 5,415, up 37.1 percent, including 2,012 Countrymen. Countrymans?

*BMW X5 was up 25.6 percent, to 3,997 and X3 was up 2,244 percent, to 2,321.

*BMW brand sold 21,873, up 13.5 percent

11. Mercedes-Benz: 24,449, up 28.2 percent.

*Benz highest U.S. October on record.

*Bestseller C-Class was up 87.9 percent, to 7,084.

*M-Class was up 44.8 percent on the strength of the new model, to 4,091.

*E-Class was off 18.9 percent, to 4,516.

*Mercedes sold 1,485 Sprinter vans, up 104.8 percent, and 327 Smart Fortwos.

12. Subaru: 20,081, off 11.6 percent.

*Subaru says its production levels are back up.

*Bestselling Outback was up 2.3 percent, to 8,891.

*Forester was off 18.9 percent, to 5,385.

*Undergoing model changeover, Impreza was off 45.8 percent, to 1,993.

13. Mazda: 18,326 up 1.7 percent.

*Mazda3 was off 8.4 percent, to 7,095.

*Mazda6 was up 38.8 percent, to 3,438.

*CX-7 was up 13 percent, to 2,807.

*CX-9 fell 1.3 percent, to 2,465.

14. Audi: 10,225, up 25.8 percent.

*A4 sales rose 5.8 percent to 2,613, edging out Q5 at 2,610, up 24.3 percent.

*A5 was up 21.5 percent, to 1,394.

*A6 was up 43.9 percent, to 1,186, on the strength of the new model.

15. Mitsubishi: 4,378, off 14 percent.

*Bestseller Lancer was off 19.6 percent, to 1,064. Lancer Sportback was of 40 percent, to 75, and EVO was off 11.2 percent, to 166.

17. Porsche: 2,270 off 14 percent.

*Cayenne off 9 percent, to 1,032.

*Panamera was off 18 percent, to 611.

18. American Suzuki: 1,947, off 5 percent.

*SX4 continues to lead, at 945, off 5 percent.

*Kizashi was off 18 percent, to 480.

Jaguar/Land Rover: N/A.

Volvo: N/A.

Saab Cars North America: N/A.

Bestselling midsize models:

1.)   Honda Accord           22,589

2.)   Toyota Camry            22,043

3.)   Nissan Altima 21,838

4.)   Hyundai Sonata         18,192

5.)   Ford Fusion               18,094

Bestselling compact models:

1.)   Toyota Corolla          16,244

2.)   Honda Civic                16,173

3.)   Chevrolet Cruze        14,295

4.)   VW Jetta                     13,058

5.)   Hyundai Elantra        13,000

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Consumer Reports Sez: Chrysler Improves, Ford Tumbles

DETROIT – Consumer Reports, the magazine that ranks everything from coffee grinders to cars, says Chrysler quality is up this year based on its annual automotive survey. The Chrysler 200, Dodge Durango and Jeep Grand Cherokee are leading the way (the ’12 Chrysler 300 was too new to rank). General Motors’ quality was about steady, with some models up and others faltering, while Ford Motor Company’s quality has slipped.

David Champion, senior director for the magazine’s Automotive Test Center, singled out Doug Betts at the Automotive Press Association luncheon Tuesday, for his efforts in improving Chrysler quality. Betts became Chrysler’s quality vice president in 2009, when Chrysler, Dodge and Jeep rankings were in both Consumer Reports’ and J.D. Power’s basement. Last September, Betts was named quality chief for Fiat.

Chrysler still has a way to go. In the magazine, Jeep is 13th of 28 brands for quality, the highest among domestics. The Wrangler Unlimited is its worst-ranked model and the Patriot (!) is its best. Chrysler is 15th, with Town & Country worst, 200 the best. Dodge, with Ram not separated out, is 21st, with the Ram 2500 turbodiesel worst and the Caliber best. Quality of design, as you’ll soon see, doesn’t directly translate to quality and reliability.

Ford’s new Explorer, Focus and Fiesta are most responsible for dragging down that brand, Champion said. The magazine bases its results on a survey of its 5 million subscribers. Nearly 1 million readers responded to the survey and were allowed to report on up to two cars, resulting in a total sample of 1.3 million vehicles. CR releases results on models for which it received at least 100 survey responses, so cars like the Porsche Boxster were not counted this year, although the Cayenne, which CR rated low, was counted.

Most troubling is that both Chevrolet and Ford hurt themselves with below-average scores on their compact cars. The new Honda Civic is a design disappointment, and the Toyota Corolla was a disappointment when it launched for the ’09 model year. Both are traditionally the two bestsellers in this important category, which snags a lot of first-time new car buyers. The new Volkswagen Jetta, which has become a top-five compact bestseller thanks to VW’s aggressive pricing and heavy advertising, should be vulnerable, too.

“The VW Jetta and Honda Civic do well” in quality/reliability scores, Champion told the APA, “even though we don’t like them, because they’re cheap and chintzy.”

The Cruze is Chevy’s bestselling car so far in 2011. Owners ranked it “significantly below average” Champion said, because of “a number of small issues, including electrical, and squeaks and rattles.”

Chevrolet ranked 17 overall among the 28 brands surveyed. Its “worst model” is the Silverado 2500 and its “best model” is the Volt, Consumer Reports’ December issue says, which serves as a kind of halo model for cars like the Cruze. The hope is that if the $42,000 Volt draws new buyers into Chevy showrooms, many of them will drive away in $20,000 Cruzes.

Ford “dropped significantly,” Champion said, dinging the Focus for its automated manual transmission and MyFordTouch, which in my opinion ranks works no better than the 2002 BMW 7 Series’ iDrive.

The Ford brand ranked 20th among the 28 brands, while Lincoln ranked 14th. CR says the “worst” Ford model is the AWD Edge, while “best” is the Fusion Hybrid.

Neither the Chevy Cruze nor the Ford Focus ranked anywhere near the top of an eight-car compact comparison Motor Trend conducted earlier this year, though both have the style and interior appointments to potentially take sales away from the compact leaders, independent from the supply problems the Japanese brands have suffered since the tragic March 11 earthquake and tsunami.

From 2008 to ’10, Ford had made great strides in quality while GM and Chrysler struggled with their financial problems. Ford’s obsession with electronic gizmos and “connectivity” and its automated manual transmission issues have started to reverse those gains. MyFordTouch suffers from being the equivalent of an in-car automated phone operator system. The dual-clutch PowerShift, the only “automatic” available in the Fiesta and Focus, suffers poor refinement. Word is that quality problems with the PowerShift have led to Focus and Fiesta supply problems at dealerships across the country.

The Cruze is Chevy’s first truly global model, and was on-sale in Europe more than a year ahead of its North American debut. There’s no excuse for quality problems. Champion noted that GM’s best-rated models are cars and trucks that have been on the market for a number of years. The RWD CTS is No. 25 Cadillac’s best model, for example, with its quality ranking rising since its ’08 introduction, though the Escalade is Cadillac’s worst.

No question, Cadillac, Buick and Lincoln also need to raise their games. CR’s nine top-ranked brands, from No. 1 Scion down to No. 9 Nissan all are Japanese. The Ford Focus has been in this spot before. When the 2000 model launched early in 1999, it quickly caught Toyota’s Corolla sales in the U.S. and was gaining on the bestselling compact, the Honda Civic. Then, too many factory recalls blunted the ’00 Focus’ rise. Both the Focus and the Chevy Cruze could be racing toward the top of the sales charts, if only they could claim a Honda/Toyota-like reputation for quality.

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Are Ford And Chrysler Guilty Of False Advertising?

Newsletter Stay up to date on car reviews, buying guides, articles and more If California-based advocacy group Made in the USA Foundation is correct, both Ford and Chrysler are guilty of engaging in false advertising. Automotive News (subscription required) advises that the group has filed complaints with the Federal Trade Commission on vehicle ads from both Ford and Chrysler.

In a recent radio spot, a Ford dealer called the Ford Fusion an “American car,” even though it’s actually manufactured in Hermosillo, Sonora, Mexico. Ford was quick to distance itself from the ad by saying it was a dealer-created radio spot, not one developed by Ford itself.

As we told you last week, Ford will shift overflow production of the 2013 Ford Fusion from Mexico to its plant in Flat Rock, Michigan, formerly shared with Mazda. That will give at least some of the upcoming Fusion inventory bragging rights as American built.

The complaint against Chrysler is a bit more nebulous, since the Made in the USA Foundation is protesting the “Imported From Detroit” ad that includes the Chrysler 300. The Chrysler 300 is put together in Brampton, Ontario, Canada, using engines built by Chrysler’s plant in Mexico.

As Made in the USA general counsel Joel D. Joseph points out, “The ads are clever but they’re false... Last time I checked, Detroit is not Canada.” The group’s petition to the FTC requests “corrective advertising” from Chrysler to clear up any consumer confusion.

Chrysler believes the group’s claim is without merit, and vows to do all it can to protect the “Imported From Detroit” image it’s created. In fairness to Chrysler, the ads don’t claim the 300 is built in America, only that it’s “Imported From Detroit.”

The Made in the USA Foundation is also unhappy that manufacturers are removing country of origin information from vehicles displayed at auto shows. This information is included on a vehicle’s window sticker, which is often removed at an auto show to prevent theft and to encourage dialogue with the helpful and friendly sales representatives working the show floor.

What’s your take on this. Is the Made in the USA Foundation right to sound the alarm, or is this much ado about nothing?

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2012 Chrysler 200

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Just a year after its introduction, the Chrysler 200 mid-size lineup is arguably already better-established than the longtime Sebring models they replaced--thanks to a well-implemented ad campaign, and Eminem. But as fresh as the marketing was, the actual car is strictly a holdover, bridging the gap between the somewhat disastrous Sebring and this sedan's Lancia-based replacement that's probably due sometime next year.

The 2012 Chrysler 200 and 200 Convertible do carry over with the Sebring's bones, but they do away with its overwrought styling, low-buck interiors and stiff ride. Only fleet sales kept the Sebring from being a total disaster, but the reformulated 200 is the better-realized car that Chrysler should have first put on sale four years ago; it's not perfect, but it's a good match for a style-conscious, comfort-oriented buyer.

One of the most important parts of the 200's emergency transplant was its interior; Chrysler gave the 200 an all-new, beautifully sculpted interior that feels up to Volkswagen standards and includes materials and finishes that are a world better than the old hard plastics. Likewise, Chrysler has doubled up on insulation to make the 200's interior a very quiet place (except for the coarse four-cylinder engine's note), and softened the ride. Factor in the newly available 3.6-liter Pentastar V-6 and six-speed automatic transmission, and the 200 no longer feels a step behind.

While the 2012 Chrysler 200 is mostly up to the standards of comfort, space, and safety that you'd find in models like the Hyundai Sonata or Toyota Camry, it's still missing some of the standard features, like Bluetooth connectivity, that all shoppers are expecting. Likewise, look past the sheen of the brightwork and consider that the base 200 still only has a four-speed automatic--and fuel economy is still lackluster--and it's fair to say that this model isn't quite in the top tier...but almost.

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Chrysler Recalls 2012 Chrysler, Dodge, Jeep Models For Engine Debris

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Chrysler Group is recalling nearly 700 model-year 2012 Chrysler 200, Chrysler Town & Country, Dodge Charger, Dodge Durango, Dodge Grand Caravan, Dodge Journey and Jeep Grand Cherokee models built between August 31 and September 13, 2011.

All affected vehicles are equipped with the 3.6-liter Pentastar V-6, which may potentially experience connecting-rod bearing failure due to manufacturing debris left inside the engine block during assembly.

Connecting-rod failure could lead to a seized engine and loss of vehicle control. No customer incidents have been reported due to this defect, which was detected during a quality audit of Chrysler’s Saltillo South Engine Plant.

Due to the recent manufacturing dates, most affected vehicles are on dealer lots or in transit to dealerships, and won't yet have been delivered to customers.

Chrysler will replace the engines of affected vehicles when the recall begins in October.

Owners will be notified via first class mail, but those with questions or concerns can contact Chrysler at (800) 853-1403. Questions may also be directed to the National Highway Traffic Safety Administration’s Vehicle Safety Hotline, which can be reached at (888) 327-4236.

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2012 Chrysler 200

See What the
Rest of the Web Says We've gathered reviews from Edmunds.com, Cars.com plus live Tweets on this car. See What We Found »

Just a year after its introduction, the Chrysler 200 mid-size lineup is arguably already better-established than the longtime Sebring models they replaced--thanks to a well-implemented ad campaign, and Eminem. But as fresh as the marketing was, the actual car is strictly a holdover, bridging the gap between the somewhat disastrous Sebring and this sedan's Lancia-based replacement that's probably due sometime next year.

The 2012 Chrysler 200 and 200 Convertible do carry over with the Sebring's bones, but they do away with its overwrought styling, low-buck interiors and stiff ride. Only fleet sales kept the Sebring from being a total disaster, but the reformulated 200 is the better-realized car that Chrysler should have first put on sale four years ago; it's not perfect, but it's a good match for a style-conscious, comfort-oriented buyer.

One of the most important parts of the 200's emergency transplant was its interior; Chrysler gave the 200 an all-new, beautifully sculpted interior that feels up to Volkswagen standards and includes materials and finishes that are a world better than the old hard plastics. Likewise, Chrysler has doubled up on insulation to make the 200's interior a very quiet place (except for the coarse four-cylinder engine's note), and softened the ride. Factor in the newly available 3.6-liter Pentastar V-6 and six-speed automatic transmission, and the 200 no longer feels a step behind.

While the 2012 Chrysler 200 is mostly up to the standards of comfort, space, and safety that you'd find in models like the Hyundai Sonata or Toyota Camry, it's still missing some of the standard features, like Bluetooth connectivity, that all shoppers are expecting. Likewise, look past the sheen of the brightwork and consider that the base 200 still only has a four-speed automatic--and fuel economy is still lackluster--and it's fair to say that this model isn't quite in the top tier...but almost.

View the original article here

Chrysler Recalls 2012 Chrysler, Dodge, Jeep Models For Engine Debris

Newsletter Stay up to date on car reviews, buying guides, articles and more

Chrysler Group is recalling nearly 700 model-year 2012 Chrysler 200, Chrysler Town & Country, Dodge Charger, Dodge Durango, Dodge Grand Caravan, Dodge Journey and Jeep Grand Cherokee models built between August 31 and September 13, 2011.

All affected vehicles are equipped with the 3.6-liter Pentastar V-6, which may potentially experience connecting-rod bearing failure due to manufacturing debris left inside the engine block during assembly.

Connecting-rod failure could lead to a seized engine and loss of vehicle control. No customer incidents have been reported due to this defect, which was detected during a quality audit of Chrysler’s Saltillo South Engine Plant.

Due to the recent manufacturing dates, most affected vehicles are on dealer lots or in transit to dealerships, and won't yet have been delivered to customers.

Chrysler will replace the engines of affected vehicles when the recall begins in October.

Owners will be notified via first class mail, but those with questions or concerns can contact Chrysler at (800) 853-1403. Questions may also be directed to the National Highway Traffic Safety Administration’s Vehicle Safety Hotline, which can be reached at (888) 327-4236.

View the original article here

Chrysler Recalls 2012 Chrysler, Dodge, Jeep Models For Engine Debris

Newsletter Stay up to date on car reviews, buying guides, articles and more

Chrysler Group is recalling nearly 700 model-year 2012 Chrysler 200, Chrysler Town & Country, Dodge Charger, Dodge Durango, Dodge Grand Caravan, Dodge Journey and Jeep Grand Cherokee models built between August 31 and September 13, 2011.

All affected vehicles are equipped with the 3.6-liter Pentastar V-6, which may potentially experience connecting-rod bearing failure due to manufacturing debris left inside the engine block during assembly.

Connecting-rod failure could lead to a seized engine and loss of vehicle control. No customer incidents have been reported due to this defect, which was detected during a quality audit of Chrysler’s Saltillo South Engine Plant.

Due to the recent manufacturing dates, most affected vehicles are on dealer lots or in transit to dealerships, and won't yet have been delivered to customers.

Chrysler will replace the engines of affected vehicles when the recall begins in October.

Owners will be notified via first class mail, but those with questions or concerns can contact Chrysler at (800) 853-1403. Questions may also be directed to the National Highway Traffic Safety Administration’s Vehicle Safety Hotline, which can be reached at (888) 327-4236.

View the original article here

Chrysler recalls 12 different 2011 models for faulty steering column

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Chrysler planning to expand Toledo Jeep plant

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Recall Alert: 2011 Chrysler, Dodge, Jeep Vehicles

Chrysler is recalling some 11,351 model year 2011 vehicles to inspect and potentially repair a steering column pivot rivet. An incorrectly installed or missing rivet could compromise the integrity of the steering column in the event of a crash.  Under such circumstances, the effectiveness of the frontal impact safety system would be reduced, heightening the chance of injury.

Models affected by this recall are as follows:

The recall is expected to begin later this month, and owners will be contacted via U.S. Mail. Dealers will inspect the steering column to verify that the rivets are present and properly aligned, and will repair as necessary. Owners of the above vehicles can reach Chrysler’s customer service hotline at (800) 853-1403, or they can contact the National Highway Traffic Safety Administration’s Vehicle Safety Hotline at (888) 327-4236.

[NHTSA]

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The Week in Cars: Indy’s 100th, Flagging Sales and Fiat Owns Chrysler

The 100th anniversary of the Indianapolis 500 and the introduction of the 2012 Volkswagen Passat VR6 (the five-cylinder and TDI drive was weeks ago) kept me on the road, and that’s why I have no monthly sales blog, this week. Here’s my attempt to catch up.

Indianapolis 500

I was pulling for Tony Kanaan, who throughout the race quickly moved his way up the field, only to fall back on ill-timed pit stops. As you know, Dan Wheldon took a dramatic victory after the last turn, when leader and rookie J.R. Hildebrand augured into the wall. Wheldon’s contract with Bryan Herta Motorsport expired the night of his second 500 victory. Herta had no money left.

This is the great and the awful thing about the Greatest Spectacle in Motor Racing. It is, as Leon Mandel once wrote, “American Formula One.” Even after 100 years though, it’s a race a rookie nearly won, a race that a team with no money did win. One that Kanaan, who started 22nd in a field of 33, could have won. It has the excitement of the best of F1 racing, without the shlock of NASCAR.

I watched the race from Source Interlink’s Turn Two suite with my niece, Betsy, who’s 14, and my nephew, Jeffery, 11. They want to go again next year. I want them to see the kind of IndyCar racing that I listened to on the radio in the late ‘60s and early ‘70s. I’d like to see other new engine-builders join Chevrolet, which supplies engines beginning next year. (Three cheers for Chevrolet!) I’d like to see the Indy 500 again become a bigger deal than the World Series and a year’s worth of NASCAR races, while maintaining its odd combination of world-class sophistication and speed and aw-shucks Midwestern pragmatism.

May Sales

A slowing economy heading for a double-dip, the Japanese earthquake and tsunami tanking Toyota and Honda sales and GM cutting fleet sales all have been blamed for the industry’s 3.7-percent drop in U.S. sales last month. I’d bet that while the earthquake hurt Japanese-brand sales, it didn’t much affect American or European brands.

GM’s total sales dropped 1 percent while it reported a 9-percent hike in retail sales, and its market share was better than 20 percent. GM’s car and crossover sales are getting stronger, while it has a 100-day supply of big pickup trucks. Ford sales were virtually unchanged. Chrysler passed Toyota for third, with help from strong Jeep sales and the Chrysler 200, and Hyundai combined with Kia, which both companies hate to do, outsold Honda last month. Chrysler won’t stay ahead of Toyota, though Hyundai/Kia were inching up on Nissan and Honda, anyway. The Japanese parts shortages only accelerated that trend.

The Chevrolet Malibu was America’s most popular midsize car, though that model continues to rely on daily rental fleet sales. Less so the Chevy Cruze, which was strong at 22,711 units for the month. That’s just 408 units ahead of the Ford Focus, which mostly consisted of the new ’12 model. I give the Focus no more than two or three months to catch, and permanently pass, the Cruze. The Chevy Camaro continues to pound the Ford Mustang, though, 9,451 to 6,607.

Meanwhile, Ford announced another price increase. Higher prices, lean production plans and lowered U.S. brand incentives are what’s really affecting auto sales, at a time when the consumers who still have jobs aren’t growing their incomes. This is bad for middle-class consumers, while higher profit margins in the face of lower sales and production ultimately is good for the automakers.

Fiat Buys Treasury’s Remaining Chrysler Shares

It will take the U.S. Treasury Department up to 90 days to approve and complete the deal, but consider it done. Fiat Auto is paying Treasury $500 million for its remaining 6.6 percent of Chrysler, which will make the Italian company majority owner at 52 percent. Fiat gains another 5 percent when the Dodge PF 40-mpg compact goes on sale just before the end of the year. Fiat is running out of reasons to issue an Initial Public Offering for Chrysler and instead swallow it whole (or let the UAW retiree benefit fund hold on to the other 43 percent).

Is this another DaimlerChrysler deal? Is it like Chrysler buying out AMC to get Jeep? Sergio Marchionne seems to have as much passion for Chrysler as he does for Fiat, and the Chrysler execs who have stayed on, such as Ralph Gilles, are unabashedly optimistic about their employer’s future. Daimler bought Chrysler in 1998 in order to provide a cheap-car counterpoint to Mercedes-Benz. It misunderstood the Chrysler brand, and stripped the Chrysler Group of its resources on the way to dumping it off on Cerberus in 2007. Bob Nardelli’s arrival at the Auburn Hills HQ, for a Plymouth Prowler gathering, no less, was Chrysler’s darkest day in a long string of them. If Marchionne does keep the Dodge and Chrysler brands for the long-term, even mostly on Fiat/Alfa platforms, the company faces its brightest future since 1926.

Three-banger Ford

Ford announced it will build a 1.0-liter, three-cylinder EcoBoost turbo engine, and the Fiesta, which currently runs a 1.6-liter four is probably the recipient. No surprise – with the four, the Fiesta’s fuel mileage is marginally better than the Focus’. In SFE trim levels, the Fiesta beats the Focus’ city mileage by 1 mpg, and only matches highway mileage, at 40 mpg. Ford proudly notes that it sold 29,423 small cars last month, but just 7,120 of those were Fiestas, while 22,303 were Foci. Probably more important for Ford was its concurrent announcement it will build a new, 8-speed automatic transmission, to keep up in the cog count with GM and Chrysler.

Mulally’s Successor

The 65-year-old Ford Motor Company executive officer, Alan Mulally, says he has no plans to retire. Apparently, chairman and scion William Clay Ford is preparing for a contingency. He was quoted at the Mackinac Policy Conference, a mostly state government-oriented annual meeting on an island filled with horses and bikes, but no cars, as saying Mulally’s successor will probably be selected from within FoMoCo. I’d put my money on Mark Fields over Jim Farley. Derrick Kuzak is the wild card.

Mark Reuss on Autonomous Cars

At the same Mackinac Policy Conference, GM North America President Mark Reuss floated an idea for a pilot program featuring the corporation’s EN-V technology. This is the “pod car” concept unveiled recently; an electric-powered personal mass transit vehicle that drives itself. Reuss said he’d like a pilot program to introduce the system to the city of Detroit, as well as Shanghai. Commuters would pay to use the pods to go from door-to-door, much as they pay for public transportation now to get within walking distance. It reminds me of the Michelin Challenge Bibendum green transportation conference in 2004, when GM announced a pilot program to test shiny new fuel-cell buses in host-city Shanghai. Meanwhile, ugly, broken-down buses were transporting people who couldn’t afford reliable cars around GM’s hometown. Why didn’t the Motor City get fuel-cell buses?

Before I say “I told you so” about autonomous cars, I must add that Reuss was emphatic this is a “what if” kind of dream. Still, he says GM already has autonomous personal transportation pod technology. He deserves lots of credit in pushing an idea that could be a boon to our economically devastated city. I’d still like to see GM get into light- and high-speed rail and take advantage of the controversial efforts to improve those systems in the U.S. Maybe Ford and Chrysler could get involved, too. After all, this isn’t like when GM got into kitchen appliances or Ford sold TVs. This is the transportation business.

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2010 Chrysler Town & Country and Dodge Journey Earn Pet Safe Choice Awards

The Chrysler Town & Country and Dodge Journey have been awarded Bark Buckle UP's 2010 Pet Safe Choice Awards at the 2010 Chicago Auto Show. The Pet Safe Choice Award is given to vehicles that best accommodate a variety of pet needs, including ventilation for pets and adaptability of third-party pet-travel gear.

"The 2010 Chrysler Town & Country continues to be the best vehicle to transport people, belongings and their pets with minivan-first second- and third-row fold-in-floor Stow `n Go seating, large in-floor covered storage bins, low step-in load floor, power-sliding doors and power liftgate," said Olivier Francois, President and CEO — Chrysler Brand, Chrysler Group LLC.

Bark Buckle UP evaluated vehicles on a variety of criteria, including accommodation of animals and various kennel sizes, ease of pet access within the vehicle, ease of pet entry and exit, pet-friendly interior surfaces and their ease of clean up.

"Pets are an extension of every family, and the Dodge Journey's best-in-class seating and storage solutions meet the needs of all family members from kids to pets. With features like the available integrated booster seat that accommodates children comfortably, to in-floor storage that keeps all the pet-essentials organized and easy-to-reach, the Dodge Journey makes every trip better for the entire family," said Ralph Gilles, President and CEO — Dodge Brand, Chrysler Group LLC.

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Imported from Detroit, driven in L.A. – Dr. Dre inspired Chrysler 300S [Video]

Chrysler turned a lot of heads with its powerful 200 commercial starring hip-hop star Eminem during the Super Bowl, but now the near-luxury brand is turning to the godfather of hip-hop himself, Dr. Dre, to show off the 2012 300S, complete with Dre-branded Beats audio system.

In April, Leftlane reported live from the New York Auto Show as Chrysler confirmed a partnership with Dr. Dre in an effort to bring “recording studio audio” to the automobile. Now, Chrysler has officially launched its ad campaign showing off its sleek new 300S as it rolls through the dark streets of Los Angeles, piloted by none other than Dre himself.

Chrysler used the commercial to make a bold statement, suggesting that good things come to those who work for it, not wait for it – a message obviously intended to convey the current work ethic found in Detroit.

As for the Beats audio, for the 300 this option consists of a Uconnect Touch 8.4-inch screen, a 522-watt 12-channel amplifier, a Beats proprietary equalizer algorithm, 10-speakers by Beats Audio with three 3.5-inch speakers located in the instrument panel and two 3.5-inch speakers located in the rear doors. Two 6?9-inch front-door woofers provide midbass, while two 6?9-inch speakers and a center-mounted 8-inch speaker located in the rear-shelf area provide full-range audio.

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Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Fiat makes bid to buyout remaining U.S. stake in Chrysler

New Cars Home

Learn more about new cars with our extensive collection of overviews, specifications, and pictures.

View the original article here

Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Fiat makes bid to buyout remaining U.S. stake in Chrysler

New Cars Home

Learn more about new cars with our extensive collection of overviews, specifications, and pictures.

View the original article here

Oil and Profits … Chrysler Finally Back in Black

Crude oil futures dropped the morning after Navy Seals killed Osama bin Laden, though they were off just 27 cents per barrel as I write this. Both the economy and the price of gasoline have altered American car-buying habits, such as they are. We’re buying sedans and crossovers and have cut back on big pickups, with construction fleet keeping that last segment at a decent level, down to 10+ percent of the market from roughly 14 percent before the Great Recession. The midsize truck-based SUV segment, which was so big and so profitable in the ‘00s, has virtually disappeared.

The Detroit Three have updated their fleets to reflect these shifts, and now even Chrysler Group LLC has been able to benefit. Its $116 million net profit for the first quarter of 2011, small as it was, represents the company’s first black ink as a new company. It was Chrysler’s first net profit, in fact, since 2006, before Daimler sold the automaker to Cerberus. For the first quarter of 2010, Chrysler Group lost $197 million.

During and after bankruptcy, Chrysler virtually brought production to a halt, and sold off existing stock at heavy discounts. U.S. sales began to pick up last year, and by the end of the first quarter of ’11, sales rose 23 percent, to 286,950 units for Q1 ’11 versus 234,215 for Q1 ’10. The global numbers look pretty good, too. International sales were 394,000 (including 50,000 in Canada and 20,000 in Mexico) for the quarter, up from 334,000 (45,000 Canada, 19,000 Mexico) a year earlier.

The 2007 United Auto Workers contract, and the further concessions from the 2009 bankruptcy are finally starting to kick in. Chrysler can make money on cars, even low-margin models like the new 200 and even as it has to pay incentives to move leftover Sebrings, for example.

Average Transaction Prices (ATP) are up, using Chrysler’s calculation based on J.D. Power & Associates data. The ATP for a Chrysler Group vehicle was $27,300, with a $3,800 average incentive, in Q1 ’10. This dipped to $27,000 ATP with a $4,200 average incentive in Q2 ’10. For Q1 ’11, the ATP is $28,300 with a $3,400 average incentive.

The question now is whether timing is good for new, truly improved cars like the Chrysler 300, as $4 gas becomes commonplace. Monday morning, Marchionne said the new models so crucial to Chrysler’s near future are rolling out slowly, to make sure quality is good.

New Chrysler 200s, 300s and Jeep Compasses “are hitting the market as we come out of Q1,” Marchionne said. “I still have an adequate inventory on the ground (on those models, but…). We need to fill the pipeline to sell them.”

After years of storing unsold cars and trucks on lots all over Metro Detroit, and then trying to force them on a bloated number of dealerships, inventory got as low as 179,000 in December 2009, with a 58-day supply. As inventories grew in ’10, the days supply ranged from 58 to 63. In March, Chrysler had 302,000 vehicles in inventory, a 67-day supply.

Perhaps Chrysler has found its level. While Marchionne intends to grow sales and market share by 2014, a 60-day supply is considered ideal.

Chrysler reports that Q1 ’11 net revenues were up 35 percent, from $9.7 billion in Q1 ’10. Modified operating profit was $477 million this first quarter, up from $143 million for last year’s first quarter. Cash on hand was $9.9 billion on March 31, up from $2.5 billion on December 31, 2010.

Marchionne says Chrysler dealerships have an average of fewer than two 200s in stock, right now. While it’s just a band aid job on the less-than-mediocre Chrysler Sebring, the 200 is a heavily advertised move in the right direction, much like the 2008-11 Ford Focus, with decent styling.

Chrysler still relies heavily on trucks, of course. The Ram pickup (previously the Dodge Ram) is up 39 percent for the quarter, to 52,739.

Ford Motor Company last week reported a healthy $2.55 billion first quarter profit, up from $2.09 billion in Q1 ’10. General Motors reports first quarter earnings on Thursday.

This comes as gas prices reach new highs. In Metro Detroit, the average price for regular unleaded hit $4.15, up 17 cents over the past week. Prices have been fairly high for the whole quarter, though, and so far the result seems to be that Chrysler 300 shoppers may downsize from Hemi V-8 to 3.6-liter V-6, not to a 200 or Dodge Caliber.

The Detroit Three said the ’07 UAW contract would allow them to earn profits on smaller cars, not just SUVs and trucks. So far, their promises are proving true, though the margins are still fairly thin. It remains to be seen whether the UAW will get greedy and try to win too much back in the ’11 negotiations. UAW President Bob King’s decision not to pick a single of the Detroit Three as a “strike target” is encouraging, though.

Just one more thing, for comparison purposes. ExxonMobil earned $10.65 billion net income in the first quarter, up from $6.3 billion in Q1 ’10. BP posted net income of $7.2 billion for Q1 ’11, up from $6.2 billion.

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