Archive for October, 2009

Ford Looks to the Future

AT the ripe old age of 52, William Clay Ford Jr. is perhaps the most seasoned auto executive in Detroit. This month, Mr. Ford celebrates 30 years on the job at the Ford Motor Company, which was founded more than a century ago by his great-grandfather, Henry Ford. He is now the executive chairman of the board, but Mr. Ford has held many positions during his career, including a five-year stint as its chief executive.

Along the way, Mr. Ford has seen Detroit’s fortunes rise and fall in the highly competitive global auto industry. He has also proved prophetic about the need to make cars cleaner and greener, and for automakers to get leaner to thrive in the 21st century. While its hometown rivals General Motors and Chrysler were forced to seek government aid and file for bankruptcy this year, Ford Motor survived without assistance from the American taxpayer.

In an interview in his office at company headquarters in Dearborn, Mich., Mr. Ford shared his views on where the automotive industry was headed, and why he believes Ford Motor will play a leading role in developing the cars we drive in the future.

Q: In 10 years, what will the typical car be like?

A: Let’s start with the driver. The driver will have more information at his or her fingertips. They will have real-time traffic data to help them navigate. They’ll have real-time parking information. They will have active accident-avoidance technology. And pretty much everything that one does manually today will have the option of voice control as well — setting the temperature, radio, telephone. The cars themselves will be lighter weight and smaller. Engine displacements will be smaller but with greater horsepower. And what propels the vehicle will be a mix of technologies. It will be electric, plug-in hybrids, and conventional gasoline engines.

Q: Will consumers have to compromise on anything to drive an electric car?

A: I think we have learned over the years that there can’t be trade-offs. Customers don’t want to give anything up. So our job as manufacturers is to deliver these new technologies in a way that doesn’t require any trade-offs. As we sit here today, range is an issue on pure electric vehicles. Ten years from now I suspect that will be a lot less of an issue. The way we overcome that in the short term is to have plug-in electric hybrids, which gives you the benefits of electric and the range of a gasoline engine.

Q: A lot of these changes are being driven by government regulations. Can regulations alone influence consumer behavior?

A: No, and I think we learned that with CAFE (corporate average fuel economy standards). The rules were being set by administrators, and the customer, because gas was so cheap, was saying, give me the biggest V-8 engine that you’ve got. Therefore we had to force smaller cars at great discounts on the market so we could sell bigger vehicles. That was contrary to what market demand was telling us that people wanted. Now, I think you have regulations and consumer interests converging, and it’s driven primarily by the price of fuel. The difference today is that technology is coming on stream fast enough that the customer can have both good fuel economy and good performance.

Q: Vehicle sales have dropped drastically in the past two years. Is this lower level of consumption the new reality?

A: Let’s take the U.S. There are several million new driver’s licenses being issued every year. You have a large number of new drivers coming into the market every year, whether it’s young people coming of age or immigrants. So the driving population continues to grow. In addition, public transport across the country is very uneven, and the average commute for Americans is still long. I think all of that will continue to necessitate individual ownership of vehicles.

If you look out into the future, there are going to be 50 cities in the world with 10 million people — 30 of which are not going to be in Europe or the United States. They are going to require mobility solutions that probably don’t include individual car ownership on a large-scale basis, simply because the cost of owning a car in the city is going to be too expensive.

Q: What are some of the possible solutions?

A: Let’s say you are a customer in Rio. You live in downtown and you want to get to the soccer stadium that’s 45 minutes outside of the city. You can use your cellphone to ask, what is the best way to route me to this stadium? It can give you the cheapest way, or the most direct way. It could be a combination of bus, subway, taxi, car-share, bicycle or walking. That customer can have a blend of transportation to get them to that destination.

Q: What about in China and India, where millions of people have never had cars and desperately want to own them?

A: There is a great demand everywhere in the world for individual mobility. People like the fact they are not on somebody else’s schedule. They can come and go as they please. But juxtaposed against that is the reality of urban living, where it can be very costly and difficult to keep a car. Again, it will depend on where people live and their needs, whether it’s China, India or the United States.

Q: Those countries are also growing their own auto industries and getting good at it. How does Ford make sure you are part of that growth?

A: One thing we can and will do is be the leader in technology globally. That really is our advantage. I don’t care where you are in the world, people are aware of what technology is available to others. If you’re in Nairobi you’re certainly aware of the iPhone. A generation ago, we all could get away as manufacturers with introducing an older vehicle into these markets. We can’t do that anymore, because the developing nations want the latest and greatest.

Q: Do consumers care where their cars are built?

A: Some certainly do. There is great national pride, not just in the U.S. but around the world. There is a certain percentage of the population that doesn’t much care. But all things being equal, I think people would still prefer to do business with their hometown companies. That’s true in America, that’s true in China, that’s true in Germany.

Q: Is the financial support given by taxpayers to G.M. and Chrysler a positive development for the American economy?

A: The biggest concern that we had all through this was the collapse of the supply base. I believe that if G.M. and Chrysler had gone into free-fall bankruptcies, it could have devastated the entire industrial base of this country.

Q: Does the average American value the domestic auto industry?

A: They should. One cannot find a healthy economy anywhere in the world that does not have a strong industrial base, period. We seem to be the only country in the world that doesn’t strongly value that. Everywhere else Ford does business in the world the government and people understand it, and do everything they can to enhance it. The notion that we can just simply become an information-age data provider as a nation is ludicrous. The unemployment consequences would be enormous. Manufacturing still has the greatest multiplier effect, in terms of job creation, of any sector of the economy.

Q: Are all these car companies, big and small, still going to exist 10 years from now?

A: It’s an interesting question. In the early 1980s I was part of our corporate strategy group here. We did a study that said in 10 years, there would be probably six car companies globally. Well look how that turned out. There are more car companies today than there were back then. Every futurist that ever looked at our industry going back 30 years said there was going to be great consolidation. But in fact you see the opposite happening. Logically, should there be consolidation? Yes. And logically, we should not have had the overcapacity we’ve had for many years. But nonetheless, those trends continue. It’s hard for me to predict there will be a great consolidation. The lesson for Ford is that we can’t control any of that. We had to get our own house in order.

Q: A decade ago, you were talking about the need for the industry to become more environmentally conscious. A lot of people criticized you then. Do you feel vindicated?

A: I’m not sure vindication is the right word. But I’m really happy about what is happening now. I did see this day coming. Maybe I saw it too soon. I certainly knew 30 years ago when I joined the company that the consumption of natural resources and the pollution that our industry was causing were unsustainable. Technology has evolved to a point where we can now move forward at a quick pace. Holding us back through the years was a combination of technology that wasn’t ready, and very cheap fuel that prevented the customer from wanting new, fuel-efficient technology. But we are at a confluence now. We have ever-increasing fuel prices, and technology that is a game-changer and can be introduced affordably.
Sourced via nytimes.com

Attractive solutions finance offers announced for new Polo

As the first new Polo customers prepare to take delivery of their cars tomorrow, Volkswagen is pleased to announce a number of finance offers from Volkswagen Finance on Polos purchased between 1 October and 31 December 2009.

There are two key offers, full examples of which are shown below. The first is a low monthly payment of £99 per month for the 1.2-litre 60 PS 3dr model or £109 per month for the equivalent five-door Polo. The second, which is likely to appeal to younger buyers, is a no deposit offer with subsequent monthly payments of £189 (3dr) or £199 (5dr). Both these examples are based on a three-year / 30,000 mile contract.

All customers buying a new Polo with a Solutions finance package are also eligible for fixed-price servicing for a one-off payment of £250. This gives three years or 30,000 miles servicing (whichever comes soonest), generating significant customer savings and also giving peace of mind against unbudgeted costs.

As the financial services arm of the Volkswagen Group, Volkswagen Finance supports the Retailer network with a range of finance and insurance products including its flexible personal contract plan – Solutions. The combination of brand values and inherent quality along with the flexibility of Solutions could ensure that a customer gets more Volkswagen for their motoring budget.

Established in 1994, Volkswagen Finance is a trading name of Volkswagen Financial Services (UK) Limited, a wholly owned subsidiary of Volkswagen Financial Services AG, based in Braunschweig, Germany.

Typical finance examples of the new Polo offers follow. Please note they are available to non-scrappage retail customers who purchase a new Polo before 31 December 2009. Three-door models will not arrive in the UK until January 2010 but can be ordered now with this offer. For full terms and conditions please visit your Volkswagen Retailer or volkswagen.co.uk.

Sourced via easier.com

The Basics about Car Financing

Most car buyers would take car financing in order to be able to get the car that they want.

That’s why many would define car financing as a way to pay for one’s car. car financing is actually a loan taken by car owners when they don’t have enough cash to pay for a car in full.

Most often than not, a person who wants to purchase a car whether he is buying it brand new or second But there are two types of car financing. The first is the secured car financing. This means that you would have to put your car as collateral for the loan. The second type is the unsecured car financing which does not require collateral but would require other requisites instead.

In acquiring an unsecured auto loan, you have to prove that you have the ability to repay the loan so you would have to provide a proof of employment. And this does not mean just any kind of job. Your employment must be permanent and stable for your loan to get approved. The interest of an unsecured car financing is also considerably higher. This is because the lender would be at a higher risk by lending you the money than if you had collateral.

The advantage of a secured auto loan is that interest rates are lower. If you don’t want to place your car as the collateral, lenders will also accept other properties like real estate or jewelry. And what would even make your interest rates lower is if you are able to pay a big down payment. This would mean that you will be borrowing a lesser amount and the less risk the lender will be in. And of course, the more value your collateral has the larger the amount you are lent as well.

If you think you can afford higher monthly payment, it would also be better to choose a shorter term because a car financing with a shorter term would have lesser and lower interest so you would end up paying lesser as well. This would be to your advantage but you have to be sure you can actually make the payments because unfulfilled and late payments would cost you more money instead.

There are many car financing companies available in the market. If you are in the market for an car financing, you can check out what each company can offer you. There are also many car financing in the internet. They say that it’s even easier to get car financing through the net and it’s faster too. You would usually get a loan approved in 24 hours. Online car financing companies also ask less documentation so it’s really convenient.

But whether you apply for car financing the traditional way or online, you should shop around first. You should compare the rates and the terms each company is offering first so you would be able to get the best deal. The more car financing companies you check out, the better. You would have more choices and so you would have better chances of finding the lowest rates. It’s also better if you deal with more reputable companies so you can be sure that you not just getting scammed.

Consumer Car Loan is your best source for car loans or bad credit car loans online. If you have really bad credit, bankruptcy, poor credit or a low credit score we can get a car loan for you and provide financing with low interest rates that will help you buy the car you really want at payments you can afford.

Sourced via pr-inside.com

US auto sales slide in September as China enjoys boom 14th October 2009

US auto sales declined by 23 per cent on a year-on-year basis during September as the hangover from the ‘Cash for Clunkers’ programme began to take hold.

According to new figures, General Motors (GM) and Chrysler bore the brunt of emptying showrooms, posting drops of 45 per cent and 42 per cent respectively.

Ford, the remaining member of the ‘Big Three’ US automakers, fared considerably better, managing to limit its decrease to just five per cent, despite its low inventories.

The statistics – which were released by Autodata Corporation – also revealed that industry-wide sales slumped by 41 per cent from the total recorded in August.

Furthermore, the annualised rate tracked by analysts indicated that transaction volumes fell to 9.2 million vehicles, which would represent the lowest figure since April.

“Consumer traffic at dealerships evaporated in the absence of the incentive programme, which ended in August,” said Standard & Poor’s Equity Analyst Efraim Levy.

“However, we expect the September lull to be temporary, as the comparisons get easier and we see the economy improving.”

Japanese manufacturers also struggled following the conclusion of the rebate scheme, with Toyota - which is the world’s largest automaker - suffering a 13 per cent decline.

Honda and Nissan recorded slumps of 20 per cent and seven per cent respectively, although the latter managed to increase its market share from 6.2 per cent to 7.4 per cent.

However, there was better news for Hyundai, South Korea’s largest automaker, which saw an increase of 27 per cent, while its affiliate, Kia, posted a sales jump of 24 per cent.

In addition, Volkswagen saw its US deliveries increase by 1.5 per cent from 12 months earlier and BMW, the world’s biggest luxury automaker, enjoyed a 3.6 per cent sales rise.

BMW also revealed that its overall sales grew by 0.7 per cent in September – the first positive move this year – prompting the company to improve its full-year sales forecast.

“Provided there are no economic setbacks, we should continue to make gains throughout the remaining months of the year,” Group Sales Chief Ian Robertson said.

“There is a good chance that we will end this year with a moderate decrease in sales of only ten to 15 per cent from 2008 levels, despite difficult economic conditions overall.”

Meanwhile, in China, which has surpassed the US as the world’s largest auto market, government incentives boosted September sales by 78 per cent to 1.33 million vehicles.

Tax on purchases of small cars has been halved, while a $730 million subsidy scheme aimed at rural buyers of light trucks and minivans has also contributed.

China now heads up world sales after shifting 9.66 million vehicles in the first nine months of the year, according to the China Association of Automobile Manufacturers.

GM has benefited spectacularly from the incentives, selling 1.29 million vehicles in the country between January and September, which is a year-on-year rise of 55.6 per cent.

“Sales continue to surpass forecasts as nearly all market segments experience growth,” said Kevin Wale, Resident and Managing Director for GM’s China operations.

Moving to Japan, sales of cars, trucks and buses (excluding minicars) increased by 3.5 per cent during September when compared to the equivalent period 12 months earlier.

According to figures from the Japan Automobile Dealers’ Association, 321,737 units were sold, representing the second month of gains following a year-long slump.

Buoyed by tax cuts and subsidies which run until March, Toyota reported an increase of 9.4 per cent to 139,775 vehicles, although the total did not include its Lexus models.

In addition, Honda and Nissan – which are the country’s second and third-biggest automakers – enjoyed sales leaps of 15 per cent and 3.7 per cent respectively.

Meanwhile, the Society of Motor Manufacturers and Traders (SMMT) revealed that new car registrations in the UK increased by 11.4 per cent during September to 367,929 units.

The improvement is largely being attributed to the government’s scrappage scheme, which Lord Mandelson announced recently would be extended by 100,000 vehicles.

“Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme,” said Paul Everitt, Chief Executive of the SMMT.

“The extension of the scheme will help to sustain demand through the latter part of this year and into 2010. This will allow economic recovery to strengthen and safeguard valuable industrial capability.”

Elsewhere in Europe, the VDA vehicle manufacturers’ association confirmed that Germany’ new car market grew by 21 per cent (316,000 units) during the month.

Although the country’s own scrappage scheme has now come to an end, orders fell by just 12 per cent, which was less than the figures predicted by market observers.

“It is still too early to declare the crisis over, but there are signs of a tangible stabilisation on foreign markets after a year (of a slump),” VDA President Matthias Wissmann told Reuters.

In France, sales increased by 14 per cent in September, representing the fifth straight monthly gain, as consumers responded to government incentives for buying small cars.

Domestic companies Peugeot Citreon – which is the second-largest automaker in Europe – and Renault reported rises of 9.5 per cent and 18 per cent respectively.

Ford enjoyed a particularly strong month across the continent, increasing its market share to 10.1 per cent and its sales by 12.3 per cent in comparison with last September.

The automaker’s performance was its fourth monthly sales rise in a row and also means that it has now improved its year-on-year market share for nine straight months.

Ingvar Sviggum, Ford of Europe’s Vice President for Marketing, Sales and Service, noted that September is traditionally a strong month for the firm but that it had “surpassed expectations” on this occasion.

Moving to India, figures from the Society of Indian Automobile Manufacturers suggest that auto sales in the country jumped by 21 per cent year-on-year during the month.

The leap, which is the eighth consecutive month of growth, can be explained by government-led lower borrowing costs and the imminent arrival of a number of festivals.

Vaishali Jajoo, an analyst at Angel Broking, told the Wall Street Journal: “The overall recovery in the Indian auto sector continues due to a sustained improvement in demand.

“This is due to improving macro-economic factors such as expanding liquidity, lower interest rates and rising consumer confidence.”

Meanwhile, national dealers’ association Fenabrave confirmed that new vehicle sales in Brazil increased by 19.85 per cent to a total of 296,651 units during September.

According to the body, the improvement can be attributed to consumers rushing to take advantage of government tax breaks for car purchases before their imminent expiry.

However, the country’s automakers’ association, Anfavea, noted that auto output in Brazil slumped by 6.7 per cent from August and by 8.4 per cent from 12 months earlier.

Finally, auto sales in South Africa declined by 22.4 per cent year-on-year in September as increasing unemployment and its first recession for 17 years dampened demand.

The Pretoria-based National Association of Automobile Manufacturers of South Africa confirmed that the month was a slight improvement on August’s 26.2 per cent drop.

However, vehicle sales in the country have now fallen every month since April 2007.

Sources:

U.S. Sept auto sales plunge; GM, Chrysler hit hard (01/10/09)

Hyundai U.S. Sales Rise for 3rd Month; Toyota’s Fall (02/10/09)

Volkswagen, BMW Raise U.S. Sales as Models Introduced (02/10/09)

BMW says 2009 vehicle sales may only fall 10-15 pct (07/10/09)

China auto sales jump 78 percent in September (13/10/09)

GM Jan-Sept China vehicle sales up 55.6 pct yr/yr (08/10/09)

Toyota, Honda Lead Increase in Japan’s Vehicle Sales (01/10/09)

Market momentum sustained in September (06/10/09)

German new car market swells 21 percent in Sept (02/10/09)

French Car Sales Rise 14% in Fifth Consecutive Gain (01/10/09)

India September Car Sales Rise on Festival Demand (13/10/09)

Ford of Europe Reports Strong September Sales to Break 10 Percent Market (12/10/09)

Brazil auto sales up 19.9 pct in September-dealers (01/10/09)

Brazil auto output slumps in Sept; sales soar (07/10/09)

South African Vehicle Sales Dropped Annual 22.4% in September (02/10/09)

Sourced via platinum.matthey.com