Chrysler’s U.S. sales up 10%, Ford flat, GM, Japanese brands down



Auto sales fell in May for the first time in eight months as the full impact of the production shocks in Japan created shortages of new cars and trucks.

The market’s retreat after months of double-digit sales gains was exacerbated by high fuel prices, which stoked demand for fuel-efficient small cars — which have been in short supply since Japan was struck by natural disasters March 11.

Most auto executives predicted sales will rebound once inventories are restored, pointing to pent-up demand despite concerns about the recovery.

“Looking at the economy, we continue to think the recovery remains on track, but we see some challenges,” said Don Johnson, vice president for U.S. sales at General Motors Co.

U.S. auto sales fell 3.7 percent to 1.06 million vehicles in May from 1.1 million a year earlier. The lost output resulting from supply disruptions in Japan, estimated at between 100,000 and 150,000 vehicles last month, more than makes up the difference.

“If you take the Japanese out, the seasonally adjusted annualized rate is very close to the April level” of more than 13 million vehicle sales, Johnson said.

Although the selling pace slowed in May to an anemic 11.8 million cars and light trucks, GM and Ford Motor Co. left their full-year sales forecasts unchanged at around 13 million vehicles.

Among the big players, only Chrysler Group LLC and Hyundai Motor Co. reported gains in the monthly sales report, which was skewed by the different number of selling days: 24, down from 26 a year earlier.

GM’s sales slipped 1 percent, and Ford’s edged down 0.3 percent. Toyota Motor Corp.’s sales plunged 33.4 percent, placing Japan’s biggest automaker in fourth place in the U.S. market behind Chrysler. The Auburn Hills automaker’s sales were up 10.1 percent.

Toyota and Honda, fixtures in the list of the top 10 selling autos, dropped out altogether in May. The only Asian models in the list were the Nissan Altima and Hyundai Sonata.

Hyundai’s sales surged 20.7 percent, while Volkswagen AG reported a 24 percent rise in May, when it marked its return to the United States as a local manufacturer with the opening of a plant in Chattanooga, Tenn.

Overall, the European brands performed strongly in May, increasing sales 22.7 percent and boosting their combined market share to 9.9 percent, up 2.1 points.

With gas prices off their peaks but still high, European carmakers are benefiting from their diesel and other fuel-saving technologies. Jonathan Browning, chief executive of Volkswagen Group of America, said he didn’t expect the price of gas to subside much in the near term, “and in the long term, it’ll continue to increase.”

High gas prices weighed on demand for big pickups. Their sales fell 12.7 percent in May.

But of all the factors contributing to May’s results, gas prices were the least important, said Jeff Schuster, a forecaster at J.D. Power and Associates. “The story in May is the incentive pullback as well as the real and perceived vehicle shortages.”

Automakers have scaled back on profit-eroding incentives in recent months. Compared with last May, incentives are down more than $500 on average to $2,303 per vehicle, according to Autodata Corp.

Sales executives said consumers seemed concerned that they wouldn’t get good deals because of the shortages of vehicles. “Early in the month, consumers sat on their hands,” Johnson said.

With few vehicles to sell in May, Toyota lowered its discounts to $1,408 per vehicle. “We dialed back in our marketing in all forms,” said Bob Carter, general manager of the Toyota brand division at Toyota Motor Sales USA.

But with production in Japan now picking up, Toyota announced deals Wednesday for both Lexus and Toyota-brand vehicles in June, including zero interest for 60 months on the Toyota Camry midsize sedan.

The deals apply both to vehicles in stock and models on order. “We want to retain loyal customers who may not be able to get exactly what they want,” said Mark Templin, general manager of the Lexus division in North America.

According to a J.P. Morgan study, Japanese vehicle production bottomed in April, with domestic output down 60 percent at less than 300,000 vehicles.

But Japanese automakers say they now expect to restore output faster than they first predicted when they said it might take until the end of the year.

Over the next couple of months, the U.S. selling pace might stay below 13 million vehicles, on an annualized basis, GM’s Johnson said. “But once inventory starts to build, that’s when we’ll get back above 13 million.”


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New Cars 2011: What to Watch for in Minivans



This is the sixth of a series. In addition to an overview of the 2011s and your money, MoneyWatch has broken out details for Small Cars, Mid-size Cars, Small SUVs and Mid-Size SUVs. We also will cover Luxury Cars and Hybrid and Electric cars.

The rapping suburban parents in Toyota’s “Swagger Wagon” commercial cleverly spoof the uncool Mom-with-a-minivan image. But the commercial isn’t all that’s new in minivans. Toyota’s Sienna (on sale now) and leading competitor Honda Odyssey (available this fall) are both getting complete redesigns as 2011 models. The two other big sellers, Chrysler’s Dodge Grand Caravan and Town and Country, are expected to have some small design tweaks when they’re out later this year.

The minivan buyer is changing, also. Although minivan sales have lost ground to crossover utilities (Ford and GM no longer even make minivans), the chief virtues of the vans-seating for up to eight, easy access with side sliding doors and low-level easy rear loading-are attracting retiring Baby Boomers. The auto site Honk.com says 13 percent of minivan buyers now have no children at home and predicts the figure will grow due to easy access and comfortable seating for older drivers and the ability to haul adult children and grandkids in one vehicle.

Here’s a look at the redesigns for the Sienna and Odyssey and whether these minivans are worth your money:

Toyota Sienna-The Sienna’s stylish redesign has found favor with reviewers. Hey, you gotta have style if you’re gonna swagger. New headlights angled upward give the front end a slightly edgier look and the rear corners are less boxy than in the previous design. Following the overall trend to higher mileage, the Sienna offers a four-cylinder engine with 19 mpg in the city, 24 on the highway, in addition to the minivan’s traditional V-6 (18 city/24 highway)2011 toyota sienna New Cars 2011: What to Watch for in Minivans. Some reviewers complain that the four-cylinder, which comes in the least expensive models, shows sluggish acceleration. With mileage nearly as good, the six-cylinder version is probably worth the extra $1,240 in list price (at $25,500).

As for safety, a major issue for minivan buyers, the Sienna comes with standard stability and traction control and seven airbags, including side and head protection. That is similar to equipment in the 2010 Honda Odyssey and likely the 2011 Odyssey. The 2011 Sienna hasn’t yet been crash-tested by the federal government but received a “top safety pick” rating from the Insurance Institute for Highway Safety, which does its own crash tests. The Sienna was not involved in Toyota’s sudden acceleration recall.

The Sienna seats seven or eight depending on which version you pick. It has 39 cubic feet of luggage space with all the seats in and huge 150 cubic feet maximum cargo space with all but the front the seats out. The Sienna starts at a list price of $24,360 with the four-cylinder engine and, like most minivans, the price ranges much higher-up to $39,770 for the V-6 all-wheel drive Limited version.

Put it all together, add in that the previous generation of Siennas got top reliability ratings after three years of ownership in this year’s J.D. Power and Associates rankings, and the Sienna looks like an excellent value-especially for its versions priced below $26,000.

Honda Odyssey-The Odyssey, the top-selling minivan, also gets a new look: a zig-zag body line that Honda says also improves the view for third-row passengers. The 2011 model is lower and slightly wider-which translates into more shoulder room inside for driver and passengers. Though 2011 honda odyssey New Cars 2011: What to Watch for in Minivansthe new version is available later this fall, Honda has yet to to release full specifications and safety equipment details or to provide test drives for reviewers (we expect to get a test drive in early September). Despite improvements by the Toyota Sienna, Odyssey is likely to hold onto its reputation as the most capable minivan in driving and handling.

Honda expects its improved V-6 engine-with variable cylinder management that lets the minivan use only as many cylinders as needed-to be rated at 19 mpg in city driving, 28 on the highway, making it more fuel efficient than the Sienna. No one has yet crash-tested the 2011 model, but the 2010 got top ratings from the National Highway Traffic Safety Administration. While Honda hasn’t yet released exact dimensions, expect seating for seven or eight  (depending on which model you choose) and luggage and cargo space roughly comparable to the Sienna. Exact prices have not yet been released, but last year’s range was $28,800 to $40,750. Family drivers who care if their van can corner smartly and maneuver smoothly along curving roads will probably want the Honda. And based on projections by Kelley Blue Book, the Honda Odyssey likely will hold its resale value slightly better than the Toyota Sienna.


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Great Dodge Truck Parts



Dodge typically connotes large and powerful trucks every time the term “dodge” is used. Though, nike airforce one there are also other types such as sedans and other small cars aside from their big trucks. These cars, just like their trucks, are likewise muscular and powerful.
The Dodge brand, which was formerly known as Dodge Brothers Motor Vehicle Company went through an interesting history. The original Dodge Company founded in 1901 by John Francis Dodge and Horace Elgin Dodge was the Dodge Brothers Bicycle and Machine Factory. The Dodge brothers started to collaborate with the Ford Motor Company, and later on air force 1 low shoes decided to put up their own automobile industry. In 1913, they began producing their own automobiles, and the first Dodge automobile appeared on November 14, 1914 with their name on it as a 1915 model. This company manufactured products essential to the early automobile cheap air force one mid shoes industry and has also helped designing motor parts for early vehicles like the Oldsmobile. During the war, the company first manufactured their trucks, which were first used by the American army, and later sold commercially.
Even with many automobile manufacturers nowadays, Dodge had handled staying on top with dodge truck parts. The tight competition in the automotive industry became Dodge’s encouragement to give great efforts and emerge with exemplified, innovative, and high performance vehicle products and result. Entering the industry of automobiles was not very simple especially with the other big competitors out there but still Dodge achieved its goals and remained in the industry as one of the most successful automobile manufacturers. All companies started from simple manufacturing and later on making it big and successful. Dodge has stayed in a respected group and has even produced several types of bestselling vehicles.
Every Dodge car or truck has the right restoration and parts such as air filter, alternator, antenna, brakes, clutch, distributor, egr valve, emblems, engine mounts, fuel filter, fuel pump, hub caps, ignition parts, ignition switch, interior parts, mass air flow sensor, mirror, oil filter, oxygen sensor, park light, radiator hose, seat belt, serpentine belt, shock absorbers, starter, struts, tail light, timing belt, timing chain, turn signal, water pump, window regulator and wiper blades.
For many airforce one shoes decades, Dodge has introduced many good-featured and fabulous air force one mid shoes vehicle models like the Durango, Dakota, Caravan, Viper, and many others. Even if the models are latest or the old ones, all Dodge-made products are of good quality. Yet, proper care and maintenance of the overall Dodge is still very important to keep it performing well.


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2010 Dodge Ram 3500 Heavy Duty: The Godzilla of pickups



In recent decades, the leading Japanese automotive companies have fielded successful models in just about every conceivable United States market niche. After beginning with just a handful of small cars and trucks in the 1960s, Honda, Toyota and Nissan now offer a wide range of best-sellers. Affordable family cars? Check. High-performance sports cars? Check. Luxury sedans? Check. Full-size pickup trucks? Check.

There is one niche that is still dominated by the Big Three American companies, however — heavy-duty trucks. Chevrolet, Dodge and Ford all offer pickups that are far larger and more powerful than the biggest Japanese trucks. Designed and built for serious hauling, they can be equipped with mighty diesel engines and dual rear wheels — features that are not even offered on the biggest Japanese competitors.

Our test 2010 Ram 3500 is among the best of these workhorses. With a standard 6.7-liter Cummins Turbo Diesel engine and extra-strong six-speed automatic transmission, it can haul up to 17,000 pounds, making it ideal for both construction work and recreational trailer or boat hauling.

Our test model came with several options that increased its already massive profile. They included dual rear wheel wrapped in huge flared fenders, optional four-wheel-drive that raised its ride height, and the extended Mega Cab four door cabin. With its huge upright grill, the Ram 3500 looks like a slightly smaller Freightliner semi-truck. Viewed from the rear, it looked as wide as a battleship. When people saw us coming, they almost fled in fear, screaming, “Godzilla! Godzilla!”

Drivers don’t need to fear the Ram 3500, however. Due to the wonders of advanced engineering and re-tuned suspension settings, the one-ton truck drives like a three-quarter ton, at least most of the time. Without a full load, acceleration is impressive, thanks to the turbo diesel’s 650 foot-pounds of torque. The power steering is light and precise, making it relatively easy to maneuver, even in downtown traffic. Stopping distances are longer than a typical car, of course, but an airbrake is available to make steep hills more manageable.

Our test model was also equipped with every conceivable option under the sun, further disguising the fact that the Ram 3500 is, in fact, a very large truck. Driving down the road, we were pampered by heated leather seats, a heated leather steering wheel, a power sunroof, SIRIUS Satellite Radio and one of the most powerful air conditioners on the planet. Backseat passengers could chill out even further with built-in TV.

The illusion of normality was disrupted by rough pavement, however, where the Ram 3500 bounced around more than smaller trucks. Several hundred pounds of sand in the bed probably would have helped even out the ride in such conditions. Driven empty on smooth roads, the jiggling was hardly even noticeable — a remarkable achievement for any heavy-duty truck.

Despite its creature comforts and relatively refined road manners, extra care has to be taken when driving the Ram 3500. Because of its length and flared rear fenders, wide turns are required, especially when telephone poles and other obstacles are placed near intersection corners. Care also needs to be taken when backing up because the dual wheel rears easily roll over small things, like curbs and Smart cars. The optional rear-view camera in our test model was a big help with parallel parking. Narrow streets also need to be approached with caution since the dually rear end make the back of the truck so wide.

Our fully-loaded test Ram 3500 was priced at just under $58,000, a remarkable bargain, given its capabilities and luxury appointments. That’s less than some cars we’ve tested — cars it could easily tow without the slightest effort.


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Chrysler to Set Up 200 Fiat Dealerships



Chrysler said Tuesday that it planned to set up about 200 outlets by the end of the year to sell the Fiat 500, an Italian designed subcompact. The dealerships will be run by existing Chrysler dealers and in many cases located on the same property, but they will have separate showrooms and employees.

The strategy runs counter to a general trend of consolidating multiple brands into one showroom. It also requires dealers to commit significant resources to a lineup that initially has a single model. A convertible, the 500 Cabrio, is scheduled to arrive in 2011, followed by a battery-powered 500 in 2012, but Chrysler has not revealed plans to expand Fiat beyond that.

BMW used a similar approach to successfully reintroduce its Mini brand to the United States nearly a decade ago, requiring dealers to build auxiliary showrooms to sell the Mini Cooper. But investing in an expansion for what analysts consider to be a niche model, at a time when auto sales are depressed and many dealers are struggling, is a gamble.

“If I were a dealer, I would be somewhat reluctant to make that investment,” said Erich Merkle, an automotive analyst and president of Autoconomy.com in Grand Rapids, Mich. “You have to go and build a new facility to sell a brand that really is going to take a considerable amount of time to get any kind of volume.”

A Chrysler spokesman, Ralph Kisiel, said the company intended to have Fiat dealerships in 125 markets in about 41 states. He said most would be concentrated in metropolitan areas where small cars were already popular and where demand was expected to increase.

Executives sent letters this week to all 2,320 Chrysler, Dodge, Jeep and Ram dealers inviting them to apply for a Fiat franchise. Fewer than 10 percent will be selected, and the locations will be announced in September, Chrysler said.

“We want our best performing dealers to get these franchises,” Mr. Kisiel said, adding that Chrysler has focused on “markets that have a high number of small-car registrations.”

Interest in the 500 among Chrysler dealers has been high, and given the small number of outlets being selected, Mr. Merkle said he expected the company would receive more than enough bids, despite the requirements.

Among those planning to apply is Alfredo Gulla, a Chrysler dealer in suburban Westchester County, N.Y. Mr. Gulla opened a Fiat dealership at age 19 and sold that brand for more than two decades until Fiat abandoned the United States in 1984 amid widespread quality problems.

“All these years I’ve been waiting and waiting and waiting” for Fiat to return, said Mr. Gulla, the owner of Larchmont Chrysler Jeep Dodge. “It’s an emotional situation as well as an economic one.”

Mr. Kisiel said Chrysler was confident that dealers would get a good return on their investment and thought that separating Fiat from Chrysler’s four other brands would help the 500 attract customers who have not bought Chrysler products before.

“You can’t expect a Ram salesman to be trying to sell a Fiat 500,” Mr. Kisiel said, referring to Chrysler’s Ram brand of pickup trucks.

The Fiat 500 is a major piece of Chrysler’s efforts to diversify a lineup that has relied heavily on trucks and sport utility vehicles, hurting sales as American consumers began seeking more fuel-efficient alternatives. The company plans to build more than 100,000 of the vehicles a year at a plant in Mexico, sending half to the United States and half to South America.

Access to a dealership network in the United States was a major reason that the Italian carmaker’s chief executive, Sergio Marchionne, pursued a takeover of Chrysler. The 500 fills a hole in Chrysler’s lineup, but also gives Fiat a quick way to re-establish itself in the United States.

“Everybody wants something new, so it will create a lot of excitement, and we’ll probably sell a lot of them at the beginning,” said Frank Mancari, the owner of Mancari Chrysler Jeep Dodge in Oak Lawn, Ill., who hopes to get a Fiat franchise. “It’s Mr. Marchionne’s baby; he’ll make it work whatever it takes. If they price it right and the quality’s there, they’ll have a winner.”


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