Car Buyers Make 'Mad Dash' to Dealers as Clunkers Program Ends (22/08/09)

There was a flurry of activity in the US as consumers flocked to dealerships to take advantage of the 'Cash for Clunkers' programme before it came to an end, Bloomberg reports.

"Given that the funding could run out at any time, the government is erring on the side of caution so neither consumers nor dealers are left holding the bag," Edmunds.com CEO Jeremy Anwyl told the news provider on 22nd August.

U.S. auto dealers swamped as trade-in rebate ends (24/08/09)

Dealers have confirmed that customers were descending on showrooms in huge numbers to capitalise on the $3 billion (£1.87 billion) rebate scheme for the final time.

"It's been crazy. We've had lines [of customers]," Scott Gruwell, Sales Director at Courtesy Chevrolet in central Phoenix, told Reuters.

"We've had the best weekend in literally a year-and-a-half to two years."

'Cash for Clunkers' Yielded Almost 700,000 Sales (26/08/09)

New figures released by the Transportation Department have suggested that the programme - known officially as the Car Rebate Allowance Scheme - generated nearly 700,000 automobile sales.

Auto sales: hangover awaits after "clunker" party (25/08/09)

However, there are now concerns over the inevitable lull in sales following the conclusion of the incentives and how automakers will be affected.

"We are expecting things to slow down quite considerably after the whole cash for clunkers business is over," said Aaron Bragman, an analyst at auto industry forecasting firm IHS Global Insight, in an interview with Reuters.

U.S. Automakers' Small-Car Output May Outstrip Demand (28/08/09)

Meanwhile, the 'Big Three' US automakers intend to increase their production of small, fuel-efficient cars by up to 63 per cent by 2015, according to a Bloomberg report.

CSM Worldwide is predicting that General Motors (GM), Ford and Chrysler will assemble 2.71 million small cars per year in North America over the next six years.

Auto Inventory at 24-Year Low May Spur Profit, Output (02/09/09)

Although a 60-day supply is the industry standard, inventories for GM, Ford and Chrysler were 39 days, 35 days and 28 days respectively at the end of August, JP Morgan Securities analyst Himanshu Patel told Bloomberg.

"The low inventories should help support a significant increase in auto production," added Deutsche Bank analyst Rod Lache, who predicted a 49 per cent rise in second-half North American output.

Auto Dealers, Chamber Fight Calif. Emissions Waiver (10/09/09)

American auto dealers and the US Chamber of Commerce have joined forces in challenging a landmark emissions ruling through the federal court, the Wall Street Journal reports.

The Environmental Protection Agency decided to allow states to set their own emissions standards, but the two groups believe California, in particular, will take an excessively hard-line approach.

Germany not mulling new plan to buoy car sales (24/08/09)

Ulrich Wilhelm, spokesman for the German government, has confirmed that the country's scrappage scheme will not be extended and that no alternatives are being considered at present.

Dongfeng Group Profit Rises 5% as Policy Spurs Sales (25/09/09)

Meanwhile, Dongfeng Motor Group, China's third-largest automaker, confirmed that its first-half sales in the country increased by three per cent to 39 billion yuan (£3.56 billion).

The company is planning to build a new five-billion-yuan plant in Guangzhou which will have an annual capacity of 240,000 vehicles when it is completed in 2012.

Dongfeng Motor raises 2009 sales target 18 pct (26/08/09)

Dongfeng also revealed that it expects the domestic market to increase by 15 per cent on average in each of the next three years.

"We are optimistic about the development of China's auto industry. The market is having ten years or more of speedy growth," said President Liu Zhenming, according to Reuters.

The automaker has announced that it is raising its 2009 sales target by 18 per cent to 1.3 million vehicles.

SAIC Motor H1 net falls 26 pct, but outlook solid (26/08/09)

SAIC Motor Corporation, which is China's biggest automaker, revealed that it enjoyed a 23.7 per cent rise in auto sales between January and June 2009.

The firm sold 1.23 million vehicles - taking its domestic market share to 20.1 per cent - while sales of its Roewe and MG brands jumped 276 per cent to over 40,000 units.

GM, China FAW Set Up Commercial-Vehicle Joint Venture (30/08/09)

GM announced recently that it has signed a new 50-50 joint venture with China FAW Group with the intention of producing light trucks and vans in the country.

The two-billion-yuan deal, which was rubber-stamped by the Chinese government in July, is thought to be an attempt by GM to mitigate the slump in US vehicle demand.

China Urges Carmakers to 'Keep Their Heads' on Growth (07/09/09)

Automakers in China have been warned to "keep their heads cool" in relation to the risk of overcapacity, despite an expected 28 per cent annual sales jump in the country this year.

Chen Bin, Chief Director of the Industry Coordination Department at the National Development and Reform Commission, told Bloomberg that the improvement is largely due to stimulus measures launched in Beijing and may not be sustainable in the long term.

Geely Doubles Profit as China Car Sales Surge (08/09/09)

Geely Automobile Holdings, China's largest privately-owned automaker, revealed that its first-half sales for 2009 increased by 21 per cent, spurred by new, larger models and the government incentives.

Volkswagen invests more in China, talks with Proton/Volkswagen Group boosts activities in China (11/09/09)

Meanwhile, German carmaker Volkswagen has revealed that it intends to invest €4 billion (£3.67 billion) in order to increase its production capacity in China by 100,000 units between now and 2011.

The company is also set to explore the possibility of building cars in Malaysia in partnership with local automaker Proton Holdings.

Nissan Says China Sales in 2009 Will Beat Forecast (16/09/09)

Nissan has confirmed that it plans to increase annual output at its Guangzhou plant in China from 360,000 to 460,000 units by adding a third shift from October onwards.

Alongside its partner, Dongfeng, the automaker is set to incorporate a new production line at the facility which will take its output to 600,000 units by 2012, Bloomberg reports.

The company will sell its first electric vehicle, known as the Leaf, in Japan, the US and Europe next year and in China - where it will also be made eventually - in 2011.

GM Will Sell Opel to Magna as Funding, Technology Are Settled (10/09/09)

GM has agreed a deal to sell a majority 55 per cent stake in its Opel unit to Magna International after the auto parts maker secured German loan guarantees of €4.6 billion.

The transaction could involve a partnership with Russian automaker OAO GAZ, which revealed earlier this year that it could produce 180,000 Opel vehicles at its main domestic plant.

Russia's auto output declines 61% in seven mths (26/08/09)

Moving to Russia, a new report by ASM Holding, the country's auto industry monitoring agency, suggests that nationwide auto production decreased by 61.4 per cent in the first seven months of 2009.

Overall output stood at 414,100 units, compared to 1,071,000 for the equivalent period last year, while production of Russia-designed cars slumped by 36.3 per cent to 185,020 units.

Toyota to cut global capacity by 1 million vehicles: report (25/08/09)

Toyota, the world's largest automaker, is set to reduce its production capacity by about one million vehicles (ten per cent), according to the Nikkei business daily.

Toyota to suspend production line (26/08/09)

As part of the move, the company intends to suspend production at its Aichi plant in Japan for a year, which will see output decline by about 220,000 vehicles.

Toyota to ask new Japan government to extend green car aid (02/09/09)

Toyota is also set to urge the new Japanese government to extend the March 2010 deadline for incentives relating to fuel-efficient vehicle purchases by two years, Reuters reports.

Japan Carmakers, Utilities Say DPJ Carbon Plan May Not Work (31/08/09)

The new Democratic Party of Japan administration vowed during its election campaign to reduce the country's carbon emission by 25 per cent by 2020 in comparison to 1990 levels.

However, automakers, refiners and utilities are concerned about the viability of the target, which is double the goal set by the previous government, Bloomberg reports.

"[Fears are based on] the impact on economic activities and employment and the magnitude of burden on people," Japan Automobile Manufacturers' Association (JAMA) Chairman Satoshi Aoki told the news provider.

Toyota Leads Drop in Japan Auto Output as Demand, Exports Fall (31/08/09)

Toyota suffered a 30 per cent year-on-year decline in Japanese auto production during July as the country suffered from significantly lower export volumes.

The company saw its output fall for the 12th straight month to 261,099 units, according to JAMA figures.

Meanwhile, Honda produced 79,316 vehicles, representing a decline of 29 per cent, while Nissan, the third-largest automaker, suffered a 28 per cent decrease to 92,609 units.

Honda's July Global Output Falls 24% on Recession (28/08/09)

In addition, Honda, which is Japan's second-biggest automaker, cut its global auto production for the ninth straight month in July.

Output slid by 24 per cent to 258,972 vehicles on a year-on-year basis, a slump which can largely be attributed to declining demand in North America as a result of the recession.

Honda to Boost India Car Production on Rising Demand (28/08/09)

However, the news for Honda was slightly better in India as it revealed that it will increase production in the country by 50 per cent from next month, Bloomberg reports.

The automaker - which is the fourth-largest in India - confirmed that the building of its City, Jazz and Accord models will be lifted to 7,500 units in response to growing demand.

Maruti Suzuki Plans India Expansion as Car Sales Rise (28/08/09)

Staying in India, Maruti Suzuki revealed that Osamu Suzuki, Chairman of its parent company Suzuki Motor Corporation, will discuss plans to expand its production capabilities in the country.

The move is motivated by new figures from the Society of Indian Automobile Manufacturers which indicate that sales will increase by at least ten per cent in the year to March, according to Bloomberg.

Suzuki to spend $215 million on new India factory (06/09/09)

Suzuki, which controls about half of the Indian auto market, has also announced that it intends to build a new $215 million production plant in the country, Reuters reports.

The facility, which will be added to its existing Manesar factory, is set to have annual output of approximately 250,000 cars and could be completed by 2011.

Ford plans to bring Rs 3 lakh-plus small car (01/09/09)

Ford has commenced production of a new, affordable small car aimed at rapidly-developing auto markets such as India, China, eastern Europe and South America.

John G Parker, the company's Group Executive Vice-President for Asia-Pacific and Africa, told the Economic Times that the fuel-efficient car will have a "Rs 3 lakh-plus (£3,867) price range".

Ford CFO: Programs To Generate 3 Mln Auto Sales In Europe (11/09/09)

Ford Chief Financial Officer Lewis Booth believes that the scrappage schemes introduced by governments in Europe should see three million new vehicle sales.

However, he told the Wall Street Journal that the company is "continuing to try [to] find ways to take more capacity out" of the continent.

Europe's carmakers drive hard for hybrid with diesel (06/09/09)

Peugeot launched its new 3008 Hybrid 4 at the recent motor show as European manufacturers begin to roll out hybrid vehicles - albeit with diesel rather than petrol engines in combination with electric motors.

"Our diesel-engined cars can already match the fuel economy of cars like the [Toyota] Prius, so we have to go one step further and combine the greater efficiency of the diesel with an electric motor," Pierre Louis Colin, the company's Hybrid and Electric Car Development Director, told the Sunday Times.

World Car-Market Recovery May Take Years, VDA Says

Matthias Wissmann, President of Germany's VDA trade group, claimed that the worldwide car market could take up to five years to recover from the recession, Bloomberg reports.

He said that global sales could reach 50 million this year, but that improvements are largely dependent on the performance of the Chinese and Indian auto sectors.

EU delays van emissions clampdown-draft document (14/09/09)

Manufacturers of new vans in the European Union must cut CO2 emissions by 14 per cent by July 2013 or face the prospect of being hit with fines, Reuters reports.

According to a leaked document, the introduction of the new emissions targets - a year later than originally proposed - could also see the setting of a 135g/km limit by 2020.

Carmakers count down to green car targets (16/09/09)

Finally, a host of major automakers have called on governments around the globe to support the push towards developing greener car technologies.

"We think the potential is beyond but it's going to depend not so much on the technology but on how governments, mayors, presidents and governors are willing to push this technology," Renault Chief Executive Carlos Ghosn told Reuters.

© Adfero Ltd