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Big Three See Gains in June 2012

Posted by admin On July - 5 - 2012

Big Three AutomakersDetroit’s Big Three automakers showed higher domestic auto sales for the month of June. Both General Motors and Chrysler saw double-digit increases. Ford’s gains weren’t as impressive, but they were still respectable at 7 percent. Even some foreign automakers got in on the action.

In fact, Toyota may very well have experienced the most dramatic jump in sales. While June was 12 percent off from May, the Japanese company saw a massive 60 percent increase. Considering the fact that Toyota has many domestic construction resources, these numbers are also good for US economists.

New auto sales among American buyers in the month of June were essentially expected to jump 21 percent from the past year. Nevertheless, some market analysts expected those same figures to fall by 4.7 percent over the previous month. Automakers have been seemingly pretty pleased with the gains, though, and many of them are posting figures that should make investors rather happy.

Ford sold 207,759 vehicles during June in the United States. They only sold 194,114 in June 2011. While that’s 3.9 percent below the May 2012 total of 216,267, it’s still rather impressive. Motor vehicles that carry the Ford marquee saw sales increases of 7.2 percent. Lincoln increased 2.5 percent.

GMC sales in general were up 15 percent. Chevy saw a 15 percent jump of its own. Buick’s 27 percent gains were extremely impressive, though Cadillac sales were only up by 12 percent. Dealer inventory in the United States was at 700,927 motor vehicles, which actually marks a 1 percent increase over the previous month.

Strangely enough, all this good news from various automakers doesn’t seem to be quite good enough for Ford. That firm actually expects to lose around $570 million in overseas sales. This has a great deal to do with the poor economic conditions in Europe.

The European debt crisis is everywhere in the news today, and sadly it reared its ugly head in Ford’s figures. Fortunately, the strong results in North America should help them stay afloat. Ford is still expected to make a profit this quarter, and their Ford Credit auto-lending unit should also keep the company above water.

The Benefits of Manual Without the Hassle

Posted by admin On September - 15 - 2011
Ford PowerShift

Do you know how to drive a manual transmission vehicle? With fewer than ten percent of all cars and trucks sold in the U.S. last year being manual transmission vehicles, there’s a good chance that you either don’t know how to drive one or simply don’t want to deal with the hassle of doing so. However, there is that added benefit of better fuel economy in manual vehicles. Interested in getting more miles per gallon without having to deal with a clutch? Then you may want to look into purchasing a new Ford Fiesta or Focus.

Why are the new Ford Fiesta and Focus a good choice? Because they both are coming with the option to choose the “PowerShift” transmission system. The PowerShift system uses a gearbox rather than a traditional clutch that needs to be pressed with your foot, so that you’ll be able to push buttons instead. It’s easier to use that a traditional manual transmission vehicle, so those that could never quite get the hang of letting the clutch in and releasing just right can enjoy the benefits of a manual without the hassle.

The benefit of purchasing a PowerShift vehicle is that fuel efficiency is improved by as much as ten percent as compared to automatic Ford Fiestas and Focuses. This efficiency comes with features usually reserved for automatic transmissions: PowerShift vehicles have more control at low speeds than traditional manual vehicles, and there is none of the rollback on hills associated with driving a manual transmission vehicle.

The PowerShift technology gives Ford a boost in the fuel efficiency arena, an area that the company is attempting to dominate by offering best-in-class vehicles in the category of fuel efficiency for every class. The company has targeted increased fuel efficiency as a central goal, which has also been highlighted in its recent partnership with SunPower to offer solar panel packages in conjunction with its all-electric 2012 Focus.

If you’re looking for the benefits of a manual transmission, but prefer the convenience of an automatic, the PowerShift Fiesta or Focus may be the right vehicle for you.

American Auto Industry On Road to Recovery

Posted by admin On May - 11 - 2011
Auto Industry

The posting of April sales is a continued indicator that United States auto makers are experiencing a recovery since the bailout. Ford Motor Co. enjoyed approximately a 25% increase in sales from April of 2010. GM sales were up approximately 6.4% and they posted a first quarter profit of over $3.2B. Though Toyota Motor Company has grappled with safety recalls, they posted 24% increased sales. Several other companies are seeing the same significant gains holding over from prior months.

Much of this success is attributed to the shifting domestic buyer’s taste in automobiles. The industry heard consumers clearly when they began clamoring for small, fuel-efficient vehicles. As such, several are in production and continue to be produced while medium to larger-scale automobiles are being discontinued.

Incentives from manufacturers were a major catalyst in helping to improve sales across the board. As sales have risen, manufacturers have begun dialing back quite a few of their incentive programs to try and push sales to a more normalized fashion. Sales are decreasing steadily from March when many of these incentive programs were at their peak to bring in wary customers.

Studies conducted by auto industry researching website Edmunds.com showed a reduction of nearly 5% in incentives as automakers tried to rein in their spending. Many good bargains are still available though incentives are changing. GM posted an approximate expense of $3,270 per vehicle on incentives. Though this number is quite high, the average was skewed by incentives offered on discontinued models to simply get them moved and on the road. Honda Motor Co. spent approximately $1,790, setting a new record high in incentives offered on Honda automobiles.

Increase in sales is good news for the industrial sector who is currently witnessing a void of qualified workers in quite a few markets. Manufacturers are gearing up for production of new designs, moving into roomier office buildings, and making regular payments on the government bailout they received that rescued them from bankruptcy.

Though analysts feel that it is too early to say where the recovery will ultimately lead manufacturers, it is clear that the Big Three of Detroit and other manufacturers were not ready to surrender to foreign competitors. Their coming fight will be to reclaim lost market share and get consumers back in more of their vehicles.

Chevy, Ford Among Companies With Bad Consumer Reviews

Posted by admin On January - 5 - 2011
Ford-Chevy

A bad consumer review can be like the kiss of death for merchandise on the market today because of the accessibility that consumers have to the information. Consumer reports tend to be honest and forthright concerning products so many consumers hold these reviews in high regard. While potential consumers may find these reports helpful in their navigation of the marketplace of products, negative reviews are especially brutal for car companies and their associated products.

The highly acclaimed Consumer Reports magazine released news this week that Chevrolet and Ford are among other car companies whose products will not be recommended to consumers. More specifically, the 2011 Chevy Tahoe sport utility, 2011 Ford Edge crossover, and 2011 Lincoln MKX crossover are the most well known car models that will not be supported by Consumer Reports. While the magazine admits that all three of these popular vehicles do have some valuable strengths that consumers will appreciate, the vehicles performed poorly in a series of rigorous tests and data compilation performed by the popular publication.

The touch screen navigation in the Ford Edge and Lincoln MKX received negative reviews on almost all counts especially on the overall distraction that is causes for drivers. The Chevrolet Tahoe received decent reviews with regard to its technology, however, received poor marks on braking time, price, and overall handling.

Other vehicles that will not be sponsored by Consumer Reports are the Honda CR-Z hybrid, Porsche Cayenne sport utility, and the Infiniti QX56 sport utility. While it is likely that both the Cayenne and Infiniti are too new for Consumer Reports to have done sufficient testing by the time their February issue was sent for publication, the Honda CR-Z reportedly performed surprising low in testing done by the consumer review experts especially considering that it has great fuel economy and a relatively affordable price tag. The CR-Z, which looks similar to the Honda Insight and Toyota Prius, is being blogged about across the internet as an ugly twin to the Insight with bad handling, high level of cabin noise, and a payload that is basically equivalent to that of a large moped.

While it is bad news for these car companies that Consumer Reports gave poor marks to their car models and accessories, most of these names are already popular and established in the car market so they may be able to withstand these reviews. Overall, Consumer Reports magazine is a highly respected publication that can positively or negatively affect the sales and perceptions of products. Ford, Chevy, and the other companies that are receiving bad reviews in February’s issue will have to hope that these reviews will not hurt their sales efforts.

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