Auto Industry Financial Recovery, a Group Effort

As the new year dawns, U.S. automakers have a surplus of inventory sitting in lots, to the tune of one million units. While this number would sell out in two months in more prosperous times, it would take four to eight months to clear in the current state of economic chaos. The three major automakers are facing the possibility of producing more vehicles than they can sell if the scarcity of credit and public timidity continues to inhibit prospective car buyers. Congress and automakers are rushing to rectify this mismatch of supply and demand by getting credit flowing again and introducing more products better aligned with current consumer sentiments.

The Treasury Tosses the Big Three A Lifeline.
The Bush administration approved 17.4 billion dollars in emergency loans to fund the development of new products the public will hopefully buy. Some of the key selling points many shoppers now have an affinity for are: improved fuel economy, hybrid vehicles, electrics, alternative fuel, and more conservative vehicles with lower curb weight.

Retooling for Consumer Demand
On January 11, 2009, the North American International Auto Show in Detroit will introduce a few new vehicles, concept cars, and improved hybrid technology that could begin to address consumer's increasing demand for economical transportation. Hopeful to make an impact at the most important car show on earth, Ford's next-gen hybrid propulsion system has a few new tricks up its sleeve to power the most fuel-efficient midsize sedan in production, the 2010 Ford Fusion.

Honda is introducing a new 4-door hybrid, called the Insight (name taken from Honda's first hybrid runner), which at $20,000, will cost about $4,000 less than the Civic Hybrid. The 2010 Toyota Prius will be even more fuel efficient than yast year's model. Not surprisingly, a few big names and several lesser luminaries, Nissan, Infiniti, Porsche, and Mitsubishi for example, will not be on display in Detroit due to difficult times.

The Credit Freeze
The other impediment to recovery is the credit lock-out, which deters millions of potential buyers. When GMAC, the finance arm for GM, hiked loan-qualifying credit scores from 620 to 700, only the top 10 percent of those who applied were approved. Since GMAC finances over three-quarters of the vehicles sold by GM, the results were disastrous.

GMAC and the Holding Company
On December 30, 2008, GMAC obtained bank holding company status, thereby qualifying for a $5 billion piece of the Treasury Department's $700 billion Troubled Asset Relief Program (TARP). GMAC announced that it will now offer 5-year, zero percent interest loans while dropping the credit score requirement to the 620 or better level. Loosening the noose on credit offers a breath of hope for GM vehicle sales, especially in the second half of 2009.

12 Million Sales a Year Instead of 16 - the New Norm?
Some auto industry experts however, are suspecting that the current drop in car sales is more than just a passing phenomenon, but rather the establishing of a new norm. More people are realizing that trading in their vehicles every three years is a luxury they can't afford. These suspicions are further supported by the fact that sales at Japan's big three, Honda, Toyota, and Nissan have declined by an average of thirty percent.

Darwinian Economics
Other analysts concur that by the third quarter, some stabilizing of the auto market may occur. Unfortunately, this may be too late for Chrysler, who saw a 50 percent decline in sales in December, 2008. A drop that large may represent a complete loss of confidence by consumers in the Chrysler badge and is not a good prognostic indicator. It is time for automakers to step back and address the true needs of consumers and society, before new car buyers become an endangered species.

Ford's Cash Position Potentially Weaker than Indicated

Currently the Ford Motor Co. is the only U.S. automaker operating without the benefit of federal bailout money, but the company's cash on hand has now dropped below $15 billion.

Confusion about the carmaker's financial health ensued, however, after CEO Alan Mulally spoke to Fox Business Network from the Consumer Electronics Show in Las Vegas on Thursday, January 8.

Mulally indicated the company had $15 billion, but later corrected himself. A company spokesman, Mark Truby, indicated the fourth quarter numbers had not yet been finalized, "However, our cash position will be lower than $15 billion. It would be premature to say anything more."

Mulally's statement had offered optimism that Ford was getting control of its cash burn, a fact Truby still said was valid when compared to third quarter numbers when Ford was left with $18.9 billion and a monthly expenditure of roughly $2.57 billion.

If the company indeed had $15 million, the burn rate would have been slowed to approximately $1.3 billion. On January 9, the company is setting its monthly outlays between $1.3 billion and $2.57 billion for the fourth quarter.

During his interview with Fox, Mulally said, "We're very conscious of cash. And we focus all of our investments, we focus all of our daily operations, we're working very closely with our suppliers and our payables, and we are managing that cash -- because cash right now is so important to finance this transformation."

Detroit 2009: Mercedes-Benz unveils McLaren SLR Stirling Moss early

At an event ahead of tomorrow's Detroit Auto Show kick-off, Mercedes-Benz showed off the new Mclaren SLR Stirling Moss to a select group of journos. The company is only offering 75 roadsters to current SLR owners to close out the supercar's tenure, so when these windscreen-free, 650 hp monsters are gone, that's it for the SLR. It must be a rush exploring the SLR's supercharged 5.5-liter V8 and 217 mph top speed with your head out in the open. Goofy old man and silly aviator eye-protectors sold seperately.

FOLLOWUP: VW's Matrix-style advertisement garners 100+ complaints

So it's not just America that gets up in arms over commercials. Remember the Matrix-styled ad with the Volkswagen Golf designer fighting various versions of himself? It seems a number of British telly viewers think the commercial "is in breach of the broadcast advertising code for featuring excessive violence that could be copied by children." So they complained to the Advertising Standards Authority, and the ASA is now investigating.

The complaints could mean the spot won't be aired before the 9 p.m. watershed, which is when programs for "children" ages 15-and-up get aired. We've seen more frightening things on YouTube -- in fact, even the G-rated The Tale of Despereaux has more chilling moments than this commercial -- but maybe the parents are afraid their kids will end up fighting... their clones.

[Source: The Guardian]

CES 2009: Navigon takes routing personal

Navigon and Rand McNally have teamed up to develop some interesting new GPS features that make it easier for users to personalize their trips.

Landmark View 3D is s a $40 upgrade for Navigon's 2200T model and has the ability to display 600 North American landmark buildings in 3D to aid directions... or at least add some novelty to your nav. In keeping with the tourist theme, scenic routes and city guides will be available for $20 each. The scenic routes will feature weekend getaway suggestions, picturesque tours and regional trips. More than 1,400 cites are covered in the guides and routes can be customized to fit your interests. And for another $30 a year, Navigon owners can now be alerted to red light camera locations.

Headed overseas? Add maps of 38 European countries to your Navigon for $130. The update comes pre-loaded on an SD card and covers 4.5 million miles of road and millions of points of interest. The new features will be available for download from the Navigon Fresh software website sometime in the Spring.

Slip Sliding Away…2008 Auto Sales Are In

Auto sales figures for the American market are in and, as has long been expected, they reveal just how much new car sales slid compared to 2007. In the end there were few surprises with very little good news offered. Of all of the full line manufacturers selling cars in the domestic market, only Subaru registered a year over year increase, squeaking out a net gain of 0.3% for the year even as their December sales tumbled by 7.7%.

Understandably, the automakers seized on whatever good news they could when sharing their December 2008 sales figures or what their sales were for the entire calendar year.

Ford emphasized that its market share increased for the third consecutive month on strength of increased demand for its all new F Series pick up truck. Ford sales were still down by 32.5% for the month and 20.5% for the year, falling just three thousand units short of second place Toyota for the final month of the year.

Mercedes sales slipped by 11.2% for the year but overall Daimler AG sales fell only 1.5% thanks to the introduction of the Smart line last January. In 2008, Daimler sold 24,662 of the diminutive two seater a vehicle that was in big demand at the height of last year’s record gas prices. BMW’s slide was 15.2% for the year, but just 9.7% when MINI sales are counted. Look for both German automakers to expand their small car offerings in the coming year to take advantage of shifting consumer demand.

Of the Big Six automakers, Chrysler LLC had by far the worst year falling exactly 30% against 2007. December 2008 was particularly awful with sales down by 53.1%. Surprisingly, Hyundai wasn’t too far off of that mark, tumbling 48.3% for the month or 14% for the year.

GM closed the year with 2.95 million sales, a drop of 850,000 units over 2007. More notable was that GM hasn’t seen sales this low since 1959 when America’s population had 125 million fewer residents.

Of all of the “losers” for 2008, only Daimler, the BMW Group, Honda (-7.9%) and Volkswagen (-3.2%) managed single digit losses with most everyone else showing losses in the teens. Toyota still managed to gain market share though its sales were off by 15.4% as GM (-22.7%) and Ford (-20.5%) joined Chrysler in posting huge year over year losses.

For the year, sales totaled 13.24 million units down about 2.9 million passenger vehicles over 2007. Sales in December were actually up by 150,000 units over November 2008, which isn’t unusual given the typical year end sales that take place during the final month of the year.

With 2008 in the books, the automakers will be giving careful attention to realigning production to meet demand for the coming year. Already we know that Toyota has put a Mississippi plant on hold, while America’s domestic automakers will continue to look to pare excess capacity while trimming factory and office workers.

Consumer confidence remains low, suggesting that 2009 sales may fall short of 2008 sales especially if credit remains difficult to obtain. For consumers who have the means to purchase a new vehicle, incentives are continuing in the form of cash back rebates shaving thousands off of the sticker price to cut rate financing, sometimes both.

Source: Motor Intelligence (Autodata)

Honda Pulls Back In Wake of Global Recession

Months of bad news coming out of Detroit has masked the predicament of other automotive manufacturers including those most everyone would consider to be in the best shape to weather the global recession.

We might imagine that a number of smaller full line manufacturers are having a tough go of it, with Fiat looking for a partner and with Isuzu completing its pull out of the North American market later this month. But, to include either Toyota or Honda in with the crowd seems to indicate that things are far worse for the global economy, something Honda seems to have confirmed via recent news.

Like Toyota, Honda has been cutting back on production capacity and has shelved some plans while delaying others. Among the latest developments for Honda is their announcement that several programs have been canceled including an all new S2000 roadster, a line of rear wheel driven Acuras, a V8 engine and at least one hybrid.

The news follows an earlier report that Honda canceled its NSX sportscar program, one of the most anticipated models from the automaker.

However, it must have been Honda’s fourth quarter performance which forced the automaker to institute its austerity plan as the company soon realized that its year over year sales surge (the company was up 3.2% for the year through July 2008 for U.S. sales) had evaporated resulting in a -7.9% drop for 2008. December alone was a disaster as Honda sales dropped 34.7% over December 2007.

To that end, Honda issued a press release containing the following statement: “American Honda’s sales mirror the industry’s current condition,” said Dick Colliver, executive vice president of American Honda Motor Co., Inc. “We believe Honda will be in a strong position when the market stabilizes.”

Honda’s Acura division took it on the chin in 2008 as sales plunged by an even 20%. The entire luxury car segment took a beat down for the year, dispelling the myth that this market was largely immune to a recession.

Honda’s performance pales in comparison to the double digit loss from Toyota (-15.4%) and is nowhere near what GM (down 22.7%), Ford (off 20.5%) and Chrysler (-30%) experienced for the year. But, it also points out that Honda isn’t shielded from the vagaries of the economy, thus the cutbacks.

Detroit Will Have To Wait

The premier auto show in North America is held every January in Detroit, what was once called the Detroit Auto Show but now has the distinction of being known as the North American International Auto Show (NAIAS).

For automotive analysts and enthusiasts, the Detroit show is the highlight of the show season, a wonderful opportunity to take in all of the new cars and concepts, many of which make their global debut at the show.

Alas, this year’s show is a bit scaled back as several manufacturers, including Nissan, have pulled out while the home team — General Motors, Ford and Chrysler — have chosen a more subdued showing, showcasing new cars and concepts, but without the usual glitz.

I had planned to attend this year’s show but have decided to hold onto to cash and save my money for either Chicago (February) or New York (April) while also planning to attend SEMA in Las Vegas this November. Like so many other Americans, conserving cash is where its at especially as everyone tries to figure out where the economy is heading over the next few months.

To that end, I will still cover the NAIAS but this time from my desk. Certainly, I won’t be present when the newest cars are released nor will I be able to interview some of the industry’s movers and shakers, but I’ve updated my contact list to make sure that I can share at least some of the breaking information (and photographs) with you.

I’m not planning to post anything about the show on Sunday (the first press day) but I’ll keep you posted through this site on Monday and Tuesday with all of the show information.

Luscious LaCrosse Leaves Lexus Lurching

Just days before the start of the North American International Auto Show (NAIAS) in Detroit, Michigan, General Motors has taken the wraps off of the next generation Buick LaCrosse — Oh, is it a beauty!

With a distinct Lexus look to the body style, the next generation LaCrosse is big on visual appeal inside and out. Slated to show up in Buick showrooms this summer, the 2010 Buick LaCrosse is the brand’s best looking vehicle since the Enclave.

There are no V8 engines to be found in the all new LaCrosse, rather a pair of fuel saving V6s will be used. According to GM, “The new LaCrosse was created with great attention to detail, craftsmanship and advanced technology,” said Susan Docherty, Buick-Pontiac-GMC vice president. “It builds on the success of Enclave as the next step in Buick’s revitalization. And, as with Enclave, our goal is to attract a whole new buyer to our dealerships for LaCrosse.”

According to GM, the 2010 Buick LaCrosse will be offered in three models - CX, CXL and CXS:

• CX – equipped with a new 3.0L direct injection V-6, premium cloth seats and 17-inch wheels. The 3.0L engine generates an estimated 255 horsepower (190 kW) and 211 lb.-ft. of torque (286 Nm) and is mated to a six-speed automatic transmission.
• CXL – also equipped with the new 3.0L direct injection V-6, adds leather-appointed heated seats, dual-zone automatic climate control, fog lamps, outside rearview mirror with LED turn indicators and puddle lamps, and 18-inch wheels. Intelligent AWD is available.
• CXS – equipped with a 3.6L direct injection V-6; real-time active-dampening suspension; perforated, leather-appointed, heated and cooled seats, and chrome-plated 18-inch wheels (19-inch optional). The 3.6L engine, mated to a six-speed automatic transmission, generates an estimated 280 horsepower (209 kW) and 261 lb.-ft. of torque (354 Nm).

“The new LaCrosse is intended to represent modern elegance,” said Ed Welburn, vice president of GM Global Design. “Throughout the design, you experience a balance of contrasts. Both the interior and exterior have been designed with harmony in mind. The exterior balances taut, sculpted lines with sensuous accents and surfaces. Inside, smoked chrome accents, warm wood, first-class leather and materials combine with cool blue ambient lighting to create an inviting environment.”

The sedan will make its official roll on Monday when Buick holds its press conference at the NAIAS. In the meantime, the following photographs can serve to whet your appetite for this nice looking sedan:

Sculpted styling is the most noticeable difference between the first and second generation LaCrosse models.

Buick faithful see that the LaCrosse is closely styled to the Invicta concept which rolled out at the 2008 Beijing Auto Show. Buick's largest market is China where the brand outsells the U.S. domestic market by a 2 to 1 ratio.

The interior of the LaCrosse features an analog instrument cluster, chrome offset by dark wood accents, and the contrasting thread and French stitching on the instrument panel. Both the 3.0L V6 and 3.6L V6 are paired with a six speed automatic transmission to provide excellent highway fuel economy.

Pricing and EPA fuel economy have yet to be announced. Expect that information to be provided closer to the LaCrosse’s summer release.

Source: General Motors

No Cash Yet For Chrysler; Treasury Favors GM?

Although I don’t necessarily agree with The Wall Street Journal’s editorial this past Friday (January 2, 2009, pg. A14) – Treasury to Ford: Drop Dead — I must concur that the federal government’s handling of the $17.4 billion loan package for the auto industry is a curious one.

Ford isn’t receiving a penny of the funds, which is okay with them as they only wanted a line of credit to keep running. However, the US Treasury nixed that idea, choosing to send all of the funds to GM and Chrysler, with GM getting the lion’s share at $13.4 billion.

In fact, the Treasury seems to have done GM a huge favor by purchasing $5 billion in preferred stock in its financing arm, GMAC, while lending GM $1 billion to help the automaker purchase equity in support of converting GMAC to a bank holding company. That moved quickly allowed GMAC to lower its lending requirements, particularly for new GM passenger vehicles. Immediately, GMAC made available 0% financing on select GM models while dropping their credit score threshold from 700 points to 621.

Before the federal government stepped in to buy a share of GMAC, GM owned 49% of the financing company with Cerberus Capital Management LP (owner of Chrysler LLC) owning the remaining 51%. With the federal government having a stake in GMAC, it now appears that the US Treasury is favoring GM above all other automakers. In fact, Chrysler has yet to receive a cent of the loan money as the Treasury says that they are working with the automaker to disburse funds (Update: The Treasury released these funds to Chrysler late Friday, January 2nd).

In the meantime, GM now has an edge on Ford and Chrysler (as well as Toyota, Honda, Nissan, et al, for that matter) as the automaker can offer cheap financing on several of its models. Granted, the Chevrolet TrailBlazer, Saab 9-7X and GMC Envoy aren’t exactly sport/utility vehicles with a broad appeal, but they have a level of financing that you won’t find with your Ford Explorer, Nissan Pathfinder or Toyota Highlander. The Saab 9-3 and 9-5 sedans are also included in this limited time offer which happens to expire today.

Over the past few months I’ve shared my opinion that a bail out for the automakers is a bad idea. I believe that the US Treasury will have to shovel tens of billions of dollars over and above the $17.4 billion loan deal for GM and Chrysler. And, thanks to putting GM at an unfair advantage, will likely force Ford to come back to Washington, DC with their hands out. Big Government owning Big Business equals socialism in my opinion.

One scenario that could result from all of this is a trade battle with European and Asian countries who will seek to subsidize their own cars in a quest to remain competitive. Initially, the American car buyer could benefit from improved financing but the addition to our national debt as well as the threat of a trade debacle will loom large.

Best time to buy a car: Now

Things are scary out there, but here's how to decide which Detroit's cars and trucks are worth buying.

By Peter Valdes-Dapena, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- There's never been a better time to buy a car. On the other hand, there's never been a scarier or more confusing time, either.

There are big incentives out there and dealers are discounting like crazy as they try to get aging inventory off their lots.

But consumers are understandably worried about the financial health of the automakers they may be buying from, especially domestic manufacturers. So, is it worth taking the deal? Here are some points to consider.

The product: If it weren't for all the financial trouble, this would be a great time buy a car from either General Motors or Ford.

GM has some really outstanding products, including the award-winning Chevrolet Malibu, new large three-row SUVs - the GMC Acadia, Buick Enclave, Saturn Outlook and Chevrolet Traverse - and the Cadillac CTS, a world-class mid-size luxury sedan.

Ford (F, Fortune 500), meanwhile, has successfully attacked its past quality problems. Now when you buy a Ford car or crossover you can expect the same kind of dependability that was once the hallmark of Japanese brands like Toyota and Honda, according to Consumer Reports.

Beyond dependability, vehicles like the Fusion mid-sized sedan, a new, more powerful 2009 Escape crossover and the Flex large crossover are just good cars that offer practicality, style and excellent fuel economy.

Meanwhile, Chrysler has been lagging its competitors in dependability and overall product quality. The new Dodge Ram truck, with a sharper design, nicer interior and better handling than competitors' big rigs, is one product that's arguably superior, if you're looking for a truck that's better looking and more enjoyable to drive.

The prices: Auto sales are forecast to stay low until at least the end of 2009.

And while some think car prices will continue to drop, they probably won't. Manufacturers have been drastically cutting production. That means that inventories will get lower, manufacturers will have less need to pile on incentives and dealers won't be as worried about getting cars off their lots quickly.

So, from a price perspective, this really is the best time to buy. On many Ford, Chrysler and GM models, you could even get below-wholesale prices, according to pricing data at AOL Autos.

The incentives: Right after GM's financing partner, GMAC, got its own government aid package in late December, GM (GM, Fortune 500) announced it was offering 0% financing on selected products. Unfortunately for car shoppers, the deal is limited to just the Saab 9-3 and 9-5. For SUV shoppers, the 0% deal is limited to the Chevrolet Trailblazer and its variants, including the Saab 9-7X. These older truck-based designs are outclassed by competitors and even by GM's own crossover vehicles.

Still, GM is offering low-rate financing on other, better vehicles that can still save you hundreds of dollars even it's not 0%. Those rates could make it a good time to pick up one of those more attractive offerings like the CTS, Malibu or Traverse. GM is also offering big rebates on many models.

For its part, Ford is offering its "Employee Pricing Plus" program and, in many cases, they're adding big rebates on top of the price discounts.

The risks: Depreciation, the difference between what you pay for a car and what you can ultimately trade it in or sell it for, is the single biggest cost of car ownership.

And that could offset the savings if the resale value of your car takes a steep dive.

The financial troubles of America's automakers have led to more than-than-usual uncertainty about that. Looking at Kelley Blue Book value data, once a car brand ceases production, the resale value of vehicles bearing that brand drops fast.

That's true even if the manufacturer stays in business, as happened with GM's Oldsmobile brand and Chrysler's Plymouth. So if you're looking at purchasing a Saturn or Saab, for instance, keep in mind that GM is reconsidering the future of those brands.

Then there's the scary prospect that GM or Chrysler themselves might not survive the next couple of years. It's probably a safe bet that they will, with government help, but no-one can say for sure.

If the very worst were to happen and these automakers were to completely go out of business, some of their brands would likely carry on. Chrysler's Jeep brand, for instance, has already outlived several previous owners and no doubt would again. Some other company will pick up the business Even if GM were turn out all its lights, brands like Cadillac, with its unique luxury image, and Buick, which is a huge success in China, would probably carry on somehow.

Ford is the lone Detroit automaker not seeking immediate government assistance. So, from a business perspective, they seem like the safest bet for longevity. Certainly, the Ford brand itself has a secure future. Around the world, the Ford blue oval is a strong brand and Ford is putting even more emphasis on strengthening it.

For car buyers, buying the best cars from the strongest brands is always the best play, though. Ultimately, that's not good news for any of the domestic manufacturers.

Despite suffering its first operating loss since 1950, no-one is questioning the long term viability of Toyota. Or that of Honda, either. Both companies also make reliable cars that are, at worst, competitive with Detroit offerings and they have better resale value, too. Both are also offering incentives like 0% financing.

Despite Detroit's big improvements in all-around competitiveness and product quality, America's financial crisis will drive even more consumers to buy Japanese cars even as the federal government to save America's automakers.

Autos: 2008 winners and losers

Best-selling vehicle: F-series

Big trucks got hit from every direction in 2008. First, gas prices soared to over $4 a gallon. Then, a mortgage crisis crunched new home construction, a big market driver for trucks. Then a national economic crisis drove down all new vehicle sales.

Things got so bad that Ford delayed the introduction of its new, redesigned 2009 F-150 (shown here) so dealers would have time to sell down their inventory of the old 2008 model.

Still, for the 27th consecutive year, the Ford F-series was America’s top-selling vehicle of any sort. All in all, Ford sold 475,240 F-series trucks in 2008, according to the automotive Web site Edmunds.com.

Trucks, and the F-series in particular, have an advantage over cars in this race. First, trucks are bought for personal use and in large numbers for fleet and business use. Second, there are simply fewer large truck models for buyers to choose from.

And third, each model is available in a mind-boggling array of sizes, body styles and engine types. The F-series benefits in particular because it doesn’t sell under two different names, the way the Chevrolet Silverado/GMC Sierra does.

If you combine GM’s two brands of big trucks, they actually outsold the F-series by almost 160,000 units.

Best-selling car: Camry

Like the F-150, the Camry has become a perennial winner, landing the spot of “Best selling car” with 2008 sales of 436,617, according to Edmunds.com. That includes the Camry Hybrid and the two-door Solara,. It’s won this race for ten of the last 11 years. (The Honda Accord took the crown eight years ago.)

In many ways, the Camry’s run is even more impressive than that of the F-series. Buyers have plenty of mid-size cars to choose from, including the Honda Accord, Ford Fusion and Chevrolet Malibu. But the Camry has become the default, idiot-proof choice among American car buyers. Those who don’t know the first thing about cars know that, at the very least, they’re getting a good, dependable vehicle in the Camry.

That’s what every one of its competitors is up against. You don’t just have to make a better car, you have to get thousands of skeptical Americans to believe you and put their hard-earned cash on the line. At best, it’s going to take a long time for anyone to knock the Camry off this perch.

Best-selling brand: Toyota

For decades, it’s been a two-horse race between Chevrolet and Ford. But this year, Toyota’s Toyota brand - not counting Scion and Lexus - came out ahead simply because Chevy and Ford sales sank much further than Toyota’s.

It was pretty close though. Toyota sold 1,843,669 cars this year. Chevrolet came in second with 1,790,519 sales.

But don’t look for Toyota to be doing that “Oh what a feeling!” jump. They’d rather that everyone’s sales went up, including theirs, even if they didn’t come out on top.

Better a rising tide that lifts all boats then getting beached on the highest rock in the harbor.

Biggest brand boost: Mini

Nobody did well this year. Even Honda, which managed gains during the gas-price crush when just about every other brand suffered declines, finished the year with about 7% lower sales than in 2007. The biggest winner, in percentage terms, was Mini which sold 28.6% more cars this year than last.

Mini’s diet-sized fuel consumption certainly helped, but the recent introduction of a second model to its one-car line-up probably helped even more. The Mini Cooper Clubman, which has more storage room and slightly more back seat space, made the brand accessible for drivers who needed more practicality.

Jaguar also managed a slight sales increase, thanks to its fancy new XF. But among major auto brands, only Subaru managed even a very slight increase in sales. Credit goes to a few key models, most notably the new Forester crossover SUV that won Motor Trend’s “SUV of the Year” as well as recognition as the best small SUV by Consumer Reports.

Biggest brand collapse: Hummer

It’s no surprise that Hummer had the worst sales fall-off of any brand in America last year, dropping by half to 27,485.

The bottom line is that high gas prices pushed customers away from truck-based SUVs, which are all Hummer sells.

And as a love-it-or-loath-it niche product, Hummer has always been highly dependent on new model introductions that sell hot for a while, then fizzle.

When sales of the original H1 started to fade, the smaller H2 came in to pick up the slack. Then, as the H2’s welcome wore thin, in rode the smaller-yet H3.

But with H3 sales way down, Hummer could use another all-new product. (The Hummer H3T, shown here, just isn’t new enough, or small enough, to do it.) But that will have to wait while GM decides whether to sell the brand or keep it.

Biggest market share gain: Honda

By the end of the year, Honda’s sales were down slightly, but nearly every other brand was down more. That added up to a 1.2% market share gain for Honda.

Honda never got pulled into the whole big SUV thing and that made the brand look very, very smart when gas prices summited the $4 mountain this summer.

Honda sales slacked off as gas sledded down the other side in the fall, but not enough to take away that market share gain for the year.

Biggest market share drop: Chrysler

In terms of market share, Chrysler LLC’s Chrysler brand suffered the worst loss in 2008, according to data from Edmunds.com.

Fortunately (if you can call this fortunate) almost everyone else’s sales suffered, so despite a 39% overall drop-off, Chrysler’s market share decreased by just 0.88%. Not at all good, but not as bad as you might have thought.

The runner-up in this category was another Chrysler brand, Dodge, which lost 0.76% of its market share.

Best-timed new model: ForTwo

Germany’s Daimler had been talking for years about selling the tiny Smart ForTwo in the United States. The idea sounded just as strange as the car looks. Daimler’s Smart division had been a money-loser even in Europe where high gas prices push consumers toward small vehicles.

Why would Americans, who pay less than half as much for gasoline, sacrifice size and practicality to buy the two-seat ForTwo? There seemed to be only one compelling reason: It was so darned cute.

But then, just as the ForTwo began arriving at American ports, gas prices shot up. It arrived just as Americans were most willing to sacrifice roomy comfort for the sake of fuel economy.

The subsequent, and equally startling, drop in gas prices has done nothing to stem sales, though, said Smart spokesman Ken Kettenbeil. Still, by the end of the year, Smart’s overall market share was just 0.2% - matching that of Hummer.

Worst-timed new model: Borrego

If the Smart ForTwo got lucky because of high gas prices, the Kia Borrego crapped out. Kia is known for inexpensive small cars, but it went to great pains to stretch into a new vehicle segment with the Borrego midsize truck-based SUV.

To be fair, planning a new vehicle is always a little dicey. A typical new model takes about five years to get to market. During that time, gas prices rise and fall and rise again, consumer tastes change and competitors come out with new options.

“Maybe the timing wasn’t the best, but there are still those who need this type of vehicle,” said Kia spokesman Chaz Abbot “and for us to succeed we don’t need that big of a share.”

But Kia should have noticed all the passengers queuing up for the lifeboats on the ship they were about to board. Other automakers had long been coming out with new crossover models and taking the focus off their slow-selling SUVs.

Runner-up: Hummer H3T
Introducing a new Hummer truck even as truck sales are tanking and GM is looking to sell the underperforming Hummer brand may seem like a sure-fire winner in this category.

But the H3T is a variant of an existing vehicle so it took no great investment on GM’s part and, even if it sells poorly, it will at least squeeze a few more sales out of GM’s H3 production line. You can’t really fault them for that.

Barack Obama, car guy

Barack Obama, car guy

The president-elect can do more for the auto industry than anyone since Henry Ford.

By Alex Taylor III, senior editor

NEW YORK (Fortune) -- One of the least explored personal sides to our new president is the amount of gasoline in his veins. We know all about his affection for the basketball court and his tendency every now and then to sneak out for a cigarette. But we've heard very little about what drove him to acquire one of the least politically-correct cars on the planet: a Chrysler 300C.

With its high torque and horsepower, voracious appetite for fuel and gangsta-car persona, it is hardly the kind of vehicle you'd expect a consensus-building politician to drive. But those are Obama's wheels.

Or were. During the campaign he sold the 300C in favor of a hybrid Ford Escape, and as president of the United States, he won't be getting into the driver's seat very often - unless he's at a military base or some other secure location where he can let loose. He'll be spending all his time in the back seat of an armor-plated Cadillac.

But let's hope that he doesn't lose any of the love for automobiles that may have attracted him to the Chrysler. Because he's in a position to do more for the auto industry than anyone since Henry Ford or Daimler and Benz.

Now that General Motors (GM, Fortune 500) and Chrysler have been temporarily removed from intensive care, courtesy of a federal bailout, Obama will be in charge of the effort to permanently return them to financial health. As such, he could ensure their long-term survival - as long as the market cooperates - or doom them to some interminable government-regulated hell.

Here are some Dos and Don'ts:

• Do consider a kind of pre-packaged bankruptcy for the auto companies. It may be the only way to allow them to renegotiate their outstanding loans and work out better arrangements with their dealers and the United Auto Workers.
• Don't tell automakers how to run their businesses. The Detroit Three hasn't done a whole lot right lately, as evidenced by their multi-billion dollar losses. But they do know something about selling cars. Of course, it wouldn't hurt to curb some of their more self-destructive practices like fleet sales, sub-prime loans and premature lease buy-backs.
• But do make it easier for the auto companies to run their businesses by reducing some of the encumbrances that have strangled them. Fifty-state fuel economy and exhaust emission regulations would be a start, instead of allowing California and a dozen or so other states to go off in their own directions.
• Don't be swayed by every back-yard mechanic who claims he has a scheme to release America from the yoke of imported oil. Take a look at the troubles with Tesla's $100,000 electric car company. Then there's the scheme to convert the hybrid Toyota Prius into a plug-in with thousands of dollars of additional batteries. If this were remotely a good idea, don't you think Toyota (TM) would have already thought of it?
• Do remember that developing and manufacturing cars is a complicated business requiring thousands of parts, hundred of suppliers, and millions of educated guesses about what consumers want and will pay for. And by the way, that process takes about four years and requires the investment of about $1 billion for each model.
• Don't play favorites. Ford (F, Fortune 500) would like you to believe that it is stronger than the others, but its lead is likely to be a temporary one. And you'll be hearing that Chrysler is less deserving of aid because it is privately owned. But its real owners are pension funds and college endowments, and its failure would put real flesh-and blood people out of work, just as it would at the other two.
• Do impose a higher federal gasoline tax. This idea, once considered political suicide, is gaining currency. Even the New York Times endorsed it last week. With gasoline prices behaving irrationally, it is the smartest, most fool-proof way to get Americans into more fuel-efficient cars.

Challenging times create opportunities for greatness. Given the depths of America's economic morass, President Obama has an opportunity to become the greatest leader we've seen in more than half a century. Saving America's auto industry would be a significant addition to his legacy.

2009 Volkswagen GTI - Review

The 2009 Volkswagen GTI is a rare combination of style, power, and affordability. As a carryover from the prior model year, the GTI retains its sporty capabilities, impressive fuel economy, and innovative features. Some potential buyers could be disappointed with the Volkswagen GTI's lack of engine options; nevertheless, the drive train that is offered is more than enough in terms of performance capabilities. Also, the GTI is available as either a two-door coupe or four-door sedan, so buyers can pick the trim that best fits their unique driving needs.

Under the hood, the 2009 GTI is fitted with a generous 200 horsepower 2.0L Turbocharged I4. A six-speed manual transmission with overdrive comes standard on the model, but buyers can upgrade to a six-speed automatic with overdrive as well. Premium McPherson struts provide a smoother ride, similar to that in the Volvo C30, and four-wheel anti-lock brakes prevent lockups when brakes are suddenly pressed. The Volkswagen GTI also has an Electronic Stabilization Program that will keep the model on its intended course in the event that traction is lost.

The interior is stocked with an enormous number of standard features like CFC-free single-zone climate control, cruise control, a folding key with radio frequency remote transmitter, automatic power locks, and two auxiliary power outlets. The folding key will automatically unlock the door when it is within a certain distance from the vehicle. Also standard is a premium six-disc in-dash CD changer with MP3 compatibility. This allows drivers to sync their MP3 players with the stereo system, making their playlist even more portable. A leather-wrapped steering wheel with audio controls provides easy access for volume control and station changing. Also, power one-touch windows are included with the base model.

The exterior of the Volkswagen GTI features a roof-mounted satellite radio antennae, dual exhaust tips, and Bi-Xenon headlamps. These innovative headlights are high-intensity and gas-charged for the ultimate in clear, pure light projection. Buyers can upgrade to a power glass sunroof and 18-inch alloy wheels as well.

Overall, the 2009 Volkswagen GTI is a great pick for those that are looking for sporty performance combined with superior fuel economy. The GTI's EPA estimated fuel rating is a notable 21 city MPG and 31 highway MPG. Also, priced at $22,990, the GTI is an excellent value for the money. With a remarkable number of standard features, the GTI far surpasses the competition on the market; however, some buyers could be disappointed that a navigation unit and Bluetooth connectivity are not included with the base model.

2008 Volkswagen R32 - Review

The brand new limited edition 2008 Volkswagen R32 offers a distinctively different look and impressive sport performance that is not commonly associated with a 3 door hatchback. The 2008 R32 is currently the most powerful high performance Volkswagen sold in the United States and only 5000 will be manufactured for sale in America.

Premium fuel is required to acquire optimal performance from the 250 horsepower 3.2 liter V6 iron block engine. This strong powerhouse works in conjunction with a sophisticated all wheel drive system and Volkswagen's highly regarded 6 speed DSG automatic transmission that features manual operation with exceptionally quick shifts as well as a fully automatic mode. The R32 sounds and feels absolutely invigorating as it goes from 0-60 in only 5.9 seconds. Fuel economy is below average for a compact hatchback, but hard to beat in any other vehicle with such a potent powertrain, with EPA ratings of 18 mpg in the city and 23 on the highway.

The R32 looks a little like a Rabbit because it shares the same functional body style. It also closely resembles-yet outperforms-Volkswagen's sport performance GTI. Yet, it is uniquely distinguished from the Rabbit and the GTI by not only the powertrain but by its excitement enticing exterior center mounted exhaust pipes, brushed aluminum color grille, blue painted brake calipers and side skirts. The interior features plenty of room for 4 adults and a flexible cargo area that has an easy access, low and wide opening and an enormous 43 cubic feet of storage space with the rear seats flipped up and away. Premium quality materials typically found in luxury sedans outfit the cabin. The driving enthusiast designed cockpit with flat bottom steering wheel and metallic accents create an awe inspiring environment. The only available trim is fully loaded with standard features that include 18 inch alloy wheels, xenon headlights, power operated sunroof, heated leather sport seats with power lumbar support, dual zone automatic climate control, power windows, mirrors and door locks, a premium 10 speaker sound system with satellite radio and in dash CD changer. A navigation system that includes an iPod adapter for the sound system is optional.

All disc brakes, all wheel drive, a stability control system and responsive steering provide a well balanced and sure footed ride, especially when driving on wet or snow covered roads. Although not quite as dexterous as some sport performance focused compacts, the 2008 Volkswagen R32 provides an impressive combination of functional utility, sport performance and luxury that defies the typical Volkswagen economy car only image and offers Volkswagen fans the opportunity to own what is likely to become a rare, cult inspired collectable limited production VW.

2009 Toyota Yaris Hatchback - Review

The 2009 Toyota Yaris Hatchback is available in either a three-door or five-door body style. With an affordable intro price and super fuel economy, the Yaris Hatchback was given the Yahoo! Autos Excelerator Award and five-star ratings for both frontal and side-impact crash testing. With a number of standard features, the Yaris Hatchback surpasses the majority of the competition. Though the modern exterior design might not be to the taste of some buyers, it appears aerodynamic with a European twist.

Inside, the 2009 Yaris is packed with amenities. The S trim is fitted with a leather-trimmed steering wheel and shifter knob and an iPod interface built into the stereo system. The base trim includes accessories like MP3 capabilities with the radio, four-way adjustable front seats, and two 12-volt auxiliary power outlets to recharge any electronic devices quickly and conveniently. Dual glove boxes are included for extra storage space, and a cover for the rear cargo area is standard as well. Buyers can upgrade to features like remote keyless entry, a rear spoiler, and power windows and locks.

Under the hood, the 2009 Toyota Yaris is equipped with a 106 horsepower 1.5L I4. Though the Yaris might not have the super power that a buyer is looking for, its 29 city MPG and 36 highway MPG is hard to beat without hybrid technology. Also, the Yaris is rated as an Ultra Low Emissions Vehicle, so it makes less of an impact on the environment. The model comes standard with a five-speed manual transmission, but buyers can opt for a four-speed automatic transmission. Independent MacPherson front struts give the Toyota a smooth ride, and four-wheel anti-lock disc brakes with Electronic Brake-force Distribution apply just enough force to each brake so that the model can stop quickly and drivers do not lose control.

Safety features like an Advanced Airbag System make the 2009 Yaris a great pick for families with small children. This unique airbag system can sense the angle of a collision and will only deploy the proper airbags which can help prevent further injuries from occurring. A tire pressure monitoring system, energy-absorbing steering column, and three-point seatbelts in the rear seating make the Yaris one of the safer hatchbacks on the road. The three-point seatbelts will convert to fit a smaller individual or accommodate an infant's car-seat.

In general, the 2009 Toyota Yaris Hatchback is a highly efficient and convenient vehicle. Compared to the Chevrolet Malibu, it certainly is not the most spacious model on the market, it can comfortably seat five passengers. Priced at an inexpensive $12,205, the Toyota Yaris gives more bang for a buyer's buck than most any other vehicle available.

Hydrogen Fuel Cell Info Including Honda FCX Performance Specs

evelopments in Hydrogen Fuel Cell Vehicles

Fuel cell technology is expected to revolutionize the automotive industry, offering an incredible potential to increase efficiency and reduce emissions for many types of vehicles. All of the leading automotive manufacturers currently have at least one fuel cell powered vehicle in development or testing, and much progress has been made in recent years. Some of these concept vehicles can reach a speed of 90 mph and can travel up to about 280 miles before they need refueling. Available in limited supply in southern California is the Honda FCX Clarity, a fuel cell vehicle (FCV) being offered to customers in locations where hydrogen filling stations are now operational.

Commercialization of highly efficient fuel cell powered vehicles is on the not so distant horizon, and there is no doubt as to the environmental benefits of low to zero emissions. Each automobile manufacturer has their own agenda and timeline regarding the deliverance of fuel cell vehicles to the open market, with some indicating availability as early as 2010 and some estimating closer to 2020. According to the California Energy Commission, as of the 2005 model year 65 light duty fuel cell powered vehicles were delivered for testing to a select group of consumers and fleet operations and tested on more than 220,000 miles of public roadways. It is anticipated that public transit agencies will be the first to replace their diesel engine powered buses with fuel cell buses that promise to offer immediate and tangible benefits for commuters, the environment and the transit agencies themselves. Currently, several fuel cell buses are being tested by SunLine Transit. But, there are still a few challenges to overcome before fuel cell powered vehicles can be considered an economically viable alternative to combustion powered vehicles currently available to the general population.

One of the challenges that must be surmounted in order for fuel cell powered vehicles to be economically viable is the affordability of the vehicles. It is important to remember that fuel cell prototypes, like any new technology, tend to be costly and do not represent the cost of the engine or the vehicle as it will be made available to the public. Costs have already been significantly reduced and General Motors has announced that they plan to achieve a competitive cost by 2010 and has invested hundreds of millions of dollars in the technology. GM is obviously committed to providing reasonably priced fuel cell powered vehicles and when they are made available to the public they will be affordable. Prototypes have been known to have very high cost associated with the technology, often costing more than $3000 per kilowatt to operate. However, so much progress has already been made that, based on current and best technology; fuel cell vehicle engines can be mass produced and designed at a cost of just $225 per kilowatt. The ultimate goal in the automotive industry is to create a fuel cell engine with a cost of $30-$50 per kilowatt which will help give the fuel cell vehicles an affordable MSRP in addition to the incremental fuel savings associated with the technology.

Not to be outdone by Honda, Chevrolet has initiated a program where the new Chevrolet Equinox Fuel Cell vehicle is given to approximately 100 chosen recipients for a no-cost 3-month test period. All expenses are paid and the lucky recipients can drive the vehicles to and from work and errands. Where the hydrogen to power the fuel cell engine can be purchased and how it is stored in the vehicle are two of the most pressing issues facing fuel cell vehicle development. It is projected that hydrogen will be readily available for purchase at energy stations, and some are already operational while plans for others are on the agenda. A national hydrogen infrastructure exists today to serve an expanding industrial market and making hydrogen available to all automotive consumers will require new production and delivery systems, but they do not all need to built at once or in existence before fuel cell cars hit the main roads. Diesel fuel powered vehicles continue to be sold to the satisfaction of many motorists, yet diesel fuel is still only available at approximately 1 out of every 6 gas stations. The distribution of hydrogen could very well follow a similar strategy. It may also be very possible to generate hydrogen at home using small systems called electrolyzers that use electricity to convert water to hydrogen. To achieve a fully commercial range, fuel cell cars need to hold enough hydrogen to run for more than 300 miles. Using pressurized tanks that compress hydrogen for storage, Ford designed a fuel cell vehicle with a range of 380 miles. Other manufacturers that use conventional compressed hydrogen storage have reported more than 200 miles of run time before refueling is necessary. There are many other storage methods being considered and tested, and it seems clear that we are well within reach of a solution that will increase the feasibility of mass produced fuel cell cars.

The U.S. Department of Energy is well aware that we cannot limit our options to any one technology, and is supporting hydrogen and fuel cell research and development in conjunction with other hybrid technologies and biofuels. The ultimate resource for hydrogen is a renewable energy source, like wind or solar power. This would enable hydrogen to deliver its maximum environmental potential. However, the current shortages of renewable energy sources indicate that, at least initially, most hydrogen will come from natural gas. The National Academy of Sciences estimated that hydrogen production for use in fuel cell vehicles would not put undue strain on our natural gas supplies. The Department of Energy estimates that relying on natural gas to produce enough fuel for more than 150 million fuel cell vehicles for the long term would yield only a 20 percent increase in today's natural gas demand. Because the demand will increase incrementally, there will be plenty of time to manage this slight increase in demand and develop alternatives to natural gas, which will become more attractive as the demand for hydrogen increases.

Rental Companies Reduce Car Purchases

Rental car companies are feeling the effects of the credit crunch and reductions in consumer and business travel, cutting their annual vehicle purchases from 1.9 million units in 2007 to 1.5 million in 2008.

The president of the American Car Rental Association, Robert Barton, described his industry as "paralyzed" by the current economic recession citing the inability to borrow money to finance inventory as well as difficulty disposing of retired vehicles at auction.

Because the Detroit Big Three have traditionally depended on the rental car industry to purchase their excess inventory, the contraction in rental car purchases further damages the already deeply damaged American automotive industry.

A spokesman for Enterprise Rent-A-Car, Patrick Farrell, quoted by Automotive News, said that his company would buy about 400,000 vehicles in the 2009 model year, approximately 50 percent less than last year. Enterprise is the largest rental company in the nation.

Additionally, the company is keeping vehicles in service on average 13 months, up from 11 months. "This is about the economy, the impact it's having on our industry and the way we have to react to maintain our financial strength," said Farrell.

Hertz Car Rental, which maintains a fleet of approximately 300,000 vehicles, is also expected to cut back on purchases for the year. Spokesman Rich Broome said, "It's going to be tough when rental demand is falling and the used-car market is so weak. If current demand trends hold, it is likely that we will purchase fewer cars and hold onto cars a little longer than in the past."

GMAC Announces Debt Swap

On the last business day of the year, the General Motors financing affiliate GMAC announced a swap of $21.2 billion in debt for $15.7 billion of new securities and cash, easing the company's debt burden, but requiring investors to take less than face value for their holdings.

The move was taken in order for GMAC to become a bank holding company, a status approved by the Federal Reserve on December 4. The transformation paves the way for GMAC to access low-cost funding and hopefully will insure its survival. The debt swap comes in the wake of a $6 billion federal bailout for the troubled financing entity.

As the main lender to General Motors customers, restoring the viability of GMAC is a key component to saving the nation's largest automaker. The other major owner of GMAC is Cerberus Capital Management LP.

On Tuesday, December 30, GMAC announced the resumption of loans to consumers with credit scores of 621 or higher, backing away from the 700 score level that has been in place since October. The average credit score in the U.S. is approximately 723.

The company is faced with recovering from losses totaling approximately $7.9 billion accrued in the fifteen month period that ended on September 30.

GM Offering Incentives in Wake of GMAC Bailout

Within hours of GMAC receiving $6 billion in government loan monies, General Motors announced zero percent financing through Monday, January 5 on 2008 and 2009 Chevrolet TrailBlazers, GMC Envoys, and Saab 9-7X, 9-3, and 9-5s.

In a conference call with reporters, Mark LaNeve, vice president of sales, service, and marketing for GM in North America said the incentives might be expanded on January 6 and said the credit crunch and the need to extend credit to consumers with scores of 700 or higher had impaired the ability of dealers to close sales.

"We've been trying to hold onto market share with one arm tied behind our back," said LaNeve. Dealers will not be able to offer loans via GMAC to consumers with credit scores in the 620 range. "Six hundred twenty is not a subprime score," he said. "That's a very creditworthy buyer. Hopefully, we'll have access to more of the market that is out there."

GM dealers are responding positively to the chance to write more car loans in the hope of stimulating flagging sales. "Any tool they can get to make credit available and put deals together is a good thing," said LaNeve. "Anytime you can make credit available to a wider spread of buyers, that's a good thing."

Dealer Groups Downgraded

On December 24, Standard Poors Rating Services downgraded the five top publicly traded dealer groups based on industry wide pressures rather than on individual company performance.

Additionally, the agency predicted sales of light vehicles in the U.S. to fall to 11.1 million during 2009, which would be the lowest level recorded since 1982.

In a statement, Standard Poor's said, "We expect 2009 new vehicle sales to decline 15 percent, to 11.1 million units at best, from already depressed 2008 levels. Considerable uncertainty exists about the duration and depth of the downturn."

The largest dealer group, AutoNation headquartered in Fort Lauderdale, Florida was rated BB+, a non-investment grade commonly called "junk bond" status.

"Longer term, large retailers such as AutoNation are likely to benefit from the rationalization of weaker dealers, but in the near term, financial performance will be pressured," said Standard Poor's.

The action came before GMAC was approved as a bank holding company by the Federal Reserve, giving it access to government lending programs. It is not known if that approval would have altered S P's rating.

The approval came as good news for GM dealers in North America where GMAC, as recently as Sept. 30, was providing dealership inventory financing for 80 percent of GM vehicles around the world as well as serving as a major source of retail financing, accounting for 42 percent of G's loan and lease volume for North American dealers.

Subaru Sees Improved Sales

Amidst news of GM, Chrysler and Ford idling plants over Christmas, turning off lights, heat, and elevators, and even buying cheaper office supplies, comes one piece of positive auto industry news: Subaru of America, according to executive vice president Tom Doll, expects to post a small sales increase for 2008, and will also set records for three of its vehicles.

Sales of Subarus were up by 1.2 percent for the first 11 months of the year - a year in which the total sales of all U.S. light vehicles were down by 16.3 percent.

According to Doll, "We're doing it a good way. The quality of our sales is very good. We aren't selling a massive number of cars to fleets." He goes on to add, "We are settled mostly in niches, and our customer is better financially heeled than other car customers - we have good demographics."

Despite their positive momentum, Subaru isn't spending huge amounts of money into advertising or financing offsets. Their lowest finance rate is 3.9 percent, and they average only $1,600/vehicle in incentive spending. Despite this, sales records are expected for the Forester crossover, Legacy sedan and Impreza compact.

The current incarnation of the Forester may be Subaru's biggest success. It was launched in May, 2008 after a redesign made it two inches taller, four inches longer, and $1,250 less expensive, making the base price (before adding the $665 shipping charges) only $19,995. Since the re-launch, sales have increased to the tune of 33.8 percent (through November).

In addition to great purchase results, the Forester was also well-rated by the Automotive Lease Guide, which predicts the vehicle will retain roughly 60 percent of its value after 36 months.

The new Forester may be Subaru's golden child, but the Impreza (available as a sedan and a five-door hatchback) is still selling strong in its 18th month on the market. Numbers through November saw a sales increase of 9.6 percent for the car which, "...sells for under $20,000, and it comes with all-wheel drive." Also doing well is Legacy sedan, which saw a 9 percent increase in sales figures through November, despite the fact that it won't be redesigned until next year (for the 2010 model year).

What does Doll say about the future for Subaru, in a market with predictions of lower and lower 2009 numbers every day? He's hopeful Subaru will continue to be strong. "With the new president and promises to stimulate the economy, we are hopeful, but not anticipating big growth."

2009 Toyota Yaris Tailback

Even the little Toyota Yaris is getting in on the fun of SEMA with a concept called the Tailback. Toyota says that the suicide doors added to the pint sized five door are for functionality, but it’s obvious it is just going for cool points. Other modifications include front and rear fascia with a center exit exhaust, grille, and widened front and rear fender flairs that incorporate new full length side rocker panels.

The car does have some practical function, too. The Yaris 5 Door Tailback is powered by a compressed natural gas system (CNG) and offers the possibility to switch from the vehicle’s combustion engine to its CNG system with the push of a button.

Based on the all-new 2009 Toyota Yaris Five-Door Liftback, the Yaris Five-Door Tailback concept highlights functionality and youthful styling.

Functionality is emphasized through the automated rear suicide doors and rear split tailgate. The exterior features aggressively styled modifications including a custom wide body kit that enhances the front and rear fascia with a center exit exhaust, grille, and widened front and rear fender flairs that incorporate new full length side rocker panels. The custom hood and newly designed rear spoiler add to the youthful styling of the Yaris 5 Door Tailgate concept. Accompanied by the redesigned body is a set of DPE wheels that feature eleven inch wide rear wheels with a five and a half inch lip and are covered in Nitto rubber, Rotora big brake kit, and Tanabe lowering springs. Custom mixed green with gold metal flake exterior paint, provided by Sherwin Williams, further enhances the sporty styling.

The Yaris 5 Door Tailback concept also features a compressed natural gas system (CNG). As an eco-friendly tuner, this bi-fuel concept offers the ability to switch from the vehicle’s combustion engine to its CNG system with the push of a button. The CNG tank and custom casing is housed in the rear of the vehicle and is unveiled as the rear tailgate is powered open.

The vehicle’s interior boosts an impressive Pioneer audio/visual system. While the lower monitor displays a variety of digital gauges, both monitors have the ability to display movies and videos which can be played through the integrated iPOD®.

The trunk area houses a custom amplifier and subwoofer casing. Additionally, custom upholstery adorns the interior with gray suede and black leather front and rear seats with yellow stitching that adds to the youthful appeal of the concept. Gray suede is carried throughout the vehicle on the headliner, sun visors, and doors. The rear seats showcase 60:40 split functionality and reclines, slides and folds flat, a feature available on the Yaris 5-Door Liftback.

2009 Toyota CNG Camry Hybrid Concept

Toyota unveiled at the Los Angeles Auto Show the compressed natural gas (CNG) Camry Hybrid concept vehicle. According to the company the car features "just one of the many alternative fuels we’re exploring in our ongoing advanced technology research and development."

The CNG Camry Hybrid Concept is powered by a 2.4 liter, 4-cylinder engine with Toyota Hybrid Synergy Drive and the gasoline fuel system has been replaced by CNG system. The maximum output is 170 hp (Engine + Electric Motor + Generator + Power Storage).

The CNG Camry features a sporty look: a sleek custom front fascia and front bumper cover eliminate the grill opening, while a custom rear bumper covers the tail pipe and visible exhaust system. The vehicle is fitted with 19 x 7.5 alloy wheels and Bridgestone Potenza 225/35ZR19 run-flat tires to accommodate the lack of a spare tire.

Full details in the press release after the jump.

Press release

Toyota Motor Sales (TMS), U.S.A., Inc., today highlighted the versatility of its Hybrid Synergy Drive® system by showing a compressed natural gas (CNG) Camry Hybrid concept vehicle at the 2008 Los Angeles Auto Show.

"In the near future, growing demand for liquid petroleum simply and effectively will exceed supply," said Chris Hostetter, group vice president, TMS Advanced Product Strategy. "Before that occurs, automakers must look to vehicles powered by alternative fuels. We believe CNG will be one of those alternatives."

The current CNG benefits are amplified by rapidly changing market conditions and an increase in consumer environmental awareness. As a transport fuel, natural gas is a clean and safe gasoline alternative. It can potentially reduce U.S. dependency on foreign oil and reduce vehicle operating costs. Currently more than 99 percent of natural gas used in the U.S. comes from domestic & other North American sources. Proven worldwide natural gas reserves are estimated to last until 2100 and have the potential to last until 2200 through improved advanced production methods.

Natural gas also produces lower particulate emissions, nitrous oxide (NOx), carbon monoxide (CO), carbon dioxide (CO2) and non-methane organic gases (NMOG), and less CO2 per unit of energy when compared with gasoline. In addition, it has a higher flash point (ignition temperature) than gasoline, can run at a higher compression ratio and is quickly dispersed into the atmosphere, should a leak occur.

The CNG Camry Hybrid concept was designed by the TMS Advanced Product Strategy group and built by Metal Crafters of Fountain Valley, Calif. To convert the stock Camry Hybrid to a CNG vehicle, the gasoline fuel system was replaced with a CNG system including two CNG tanks installed in the spare tire well area.

The exterior of the vehicle also received some sporty ‘concept’ touches. A sleek custom front fascia and front bumper cover eliminate the grill opening, while a custom rear bumper covers the tail pipe and visible exhaust system. The vehicle is fitted with 19 x 7.5 alloy wheels and Bridgestone Potenza 225/35ZR19 run-flat tires to accommodate the lack of a spare tire. The overall ride height is lowered while new side body skirts and "Compressed Natural Gas Hybrid" graphics complete the unique look.

In 1999, Toyota marketed a CNG-powered four-cylinder Camry to fleet customers in California. Due to relatively low gasoline costs at that time, customers were not attracted to a vehicle that required special refueling techniques and a limited refueling infrastructure. The program was discontinued a year later. Today there are less than 1,000 CNG refueling stations nationwide, with less than half open to the public.

"Toyota believes CNG has huge potential, both in the U.S. and globally," said Hostetter, "but CNG is just one of the many alternative fuels we’re exploring in our ongoing advanced technology research and development."

TOYOTA CNG CAMRY HYBRID CONCEPT

PRELIMINARY SPECIFICATIONS

POWERTRAIN
2.4 liter, 4-cylinder engine with Toyota Hybrid Synergy Drive®
Gasoline fuel system replaced with CNG system

ESTIMATED FUEL ECONOMY (mpg)
City/Highway/Combined = 32/34/33
(Gasoline Camry Hybrid = 33/34/34)

NET HORSEPOWER (Engine + Electric Motor + Generator + Power Storage)
170 hp

CNG SYSTEM
•Two (2) Lincoln composite Type 4 tanks - plastic liner with carbon fiber wrapped exterior
•Tanks installed in spare tire well area
•Maximum 3,600 psi

CAPACITY
Proposed 8 gallon gasoline equivalent

RANGE
250+ miles

DIMENSIONS (inches)
Overall Length: 191.2
Overall Width: 71.7
Overall Height: 57.5
Wheelbase: 109.3
Wheel Size: 19 x 7.5 alloy wheels

The Fast and the Furious: Tokyo Drift - cars

I’m sure at this point you all have seen Tokio Drfit and were impressed by the many cars you swo in there... We will try in here to tell a few words about each of them...

The plot you all know it. So no need to talk about it... And if you did not recognized all the cars you swo in there we will give you a hand.

In total, Tokyo Drift used over 200 cars for the movie, and they came from all around the world. There are 11 Nissan 350Z cars alone, and these were brought in from Japan because they required right-hand drive vehicles for the movie. Three of them were used for crash scenes. Most of the cars were second hand, as they needed some out of production cars like Toyota Chasers, Mazda RX7s and old Nissan Silvias. From the Mitsubishi stables came 10 units of Mitsubishi Lancer Evolution IX cars. Volkswagen also provided some cars - four Volkswagen Golf R32s and a few Volkswagen Touran MPVs.

2006 Mitsubishi Lancer Evolution IX Tokyo Drift

This is Sean Boswell’cars. The question is what do you have to change about a Evo IX to make it a fast and furious car. First of all the front wheels must be disconnected from the drivetrain so that Evo become a rear-wheel-driver.

The Tokyo Drift Evo IXs was also lowered over Eibach springs and fitted with APR’s wide-body kit and those oversize fenders were filled with 19-by-8.5-inch Ray’s G-Games 99B wheels and 255/35R19 Toyo Proxes T1R tires. RMR also modified the steering knuckles for additional angle and upsized the brakes with Brembo discs and calipers. The turbocharged, 2.0-liter, four-cylinder engines were left essentially stock except for the addition of an RMR exhaust system. Power is up from the stock 286 horsepower at the crank to 289.5 hp at the rear wheels, measured on a chassis dynamometer.

1967 Ford Mustang Tokyo Drift

Also a Sean Boswell car. Sean has to make from an old junk a cool race car in just one day so he can race with the Drift King. So he use a V8 engine from a 2001 Nissan Skyline Rb26 and the transmission of a 1998 Nissan Skyline 5 Speed 2WD.

The car has 245/35R19 front and 275/35R19 rear Toyo Proxes T1R tires and Volk Racing Grey GT-7 wheels keeping them off the ground. The V8 Tokyo Drift Mustangs has an output of 375 hp and can sprint from 0 to 60 mph in 6.7 seconds and consumed the quarter-mile in 14.7 seconds at 96.7 mph.

1971 Chevrolet Monte Carlo Tokyo Drift

The Monte Carlo does not have a long history in the movie. It appears in the first minutes of the movie as the Sean’s first car and is the first one that is crashed.

Two of the engine from the 9th used in the movie are: 509 cubic-inch with 560 horsepower that can sprint from 0 to 60 mph in 4.4 seconds and a Bill Mitchell 572 cubic-inch with 700 horsepower.

The wheels are Cragar 397 steel 15-inch, fited with Wilwood brakes, wrapped in Good Year Eagle slicks at all four corners. The power is trying to get out through the rear wheels, so the tires in the front are 27x8 inches, and those to the rear are27x10 inches.

2000 Nissan Silvia S15 Tokyo Drift

First was Han’s car, but he gave to Sean to race the Drift King, but he doesn’t drive it that well and he crash it reall badly. This is a car that we might say that the guys from Universal didn’t spend so much time working on it.

The coolest thing about the Furious Silvia is the near stock-looking C-West DRFT aero kit. The exterior touches include Modern Image graphics, a C-West-supplied GT wing and a set of Ganador mirrors. The wheels get a visual upgrade in the form of some 19-inch Volk GT-7 rims wrapped in Toyo Proxes TR1 tires.

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2006 Mazda RX-8 Tokyo Drift

The RX8 is Neela’s car. The RX8 is a car that protects you from trouble, or at least this is how it looks like, this is why the Universal made it a girl car. Probably... The only thing that ruin this car is its paint job. I’m not saying is not a well done job, but black and neon-blue does not fit together... if it’s a girl car it should be paint like one, you will never see a girl loving this combination. Red and black, yellow and black maybe, but not this. Anyway lets go on....

The front, sides and rear of the car is a VeilSide D1-GT body kit. The Tokyo’s RX-8 has an output of 191 horsepower at 5,500 rpm and 187 pound-feet of peak torque at 5,150 rpm. Considering that the US RX8 has an output of 238 hp at 8500, I might say nothig impressive in here.

The Tokyo Drift RX-8 can sprint from 0 to 60 mph in 6.7 seconds and completes the quarter-mile in 14.9 seconds at 103.6 mph

2006 Nissan 350Z Tokyo Drift

The 350z is the bad guy’s car. But do not judge the car by it’s driver, because this is a very cool car. You won’t see on this car any special candy-colored paint jobs or any other graphics. A simple black that makes it looking really good.

The Tokyo Drift’s 350Z is equipped with an APS twin-turbo system breathing into the 3.5-liter DOHC 24-valve V6 engine with an output of 450 hp or even more.

It has an six-speed transmission feeds back to a Nismo limited-slip differential which can propel the Nissan in 5.7 seconds through its 60 mph journey or can touch the quarter-mile in 13.2 seconds at 114.8 mph.

Mazda RX-7 Veilside Tokyo Drift

This is one of Han’s car also. This RX7 was build by Veilside, one of the largest automotive aftermarket companies in Japan, for the 2005 Tokyo Auto Salon. Universal bought the car as-is and then went to work changing it up for the movie.

The first thing they change about it was the colour: the original red become a bright orange. And that was all the work they did to this car.

Although it looks more powerful it only produced 306 hp at 6,650 rpm and 256 lbs-ftof torque at 5,950 rpm at the rear wheels. It sprints from 0 to 60 mph in 6 seconds and in 14.1 seconds it runs the quarter-mile at 104.5 mph

1970 Plymouth Road Runner GTX Tokyo Drift

The 1970 Plymouth Road Runner GTX can be seen at in the very last 2 minutes of the movie where Dominic Toretto has challenged the new D.K. Sean Boswell. He had won the GTX a couple years back from Han, who was killed earlier in the movie by his car blowing up.

The car was borrowed for the movie from builder Steve Strope from Pure Vision Designs.

The construction of this car was followed on the TLC series "Rides" and the car was featured in Hot Rod Magazine. The cameo was a last minute re-shoot after primary filming was completed, so the car was rented by the production rather than purchased for its appearance. And it was cast at the suggestion of Hot Rod Magazine’s editor.

Volkswagen Golf R32 Tokyo Drift

Reiko’s car. Volkswagen has offered four new right-hand-drive 2007 Volkswagen R32s to the filmmakers, including two already converted to rear-drive for drifting duty.

The R32 from Tokyo Drift uses a rear wing and a set of "Lamborghini" scissor doors. It has a 3.2 liter V6 angine with 250 hp and a six-speed manual transmission. It can sprint from 0 to 60 mpf in 6.1 seconds and the quarter-mile went by in 14.4 seconds at 94.3 mph