Analysts are asking, How tough a spot is Saab in? The Swedish carmaker's plant has been largely idle for the past month as it searched for investment cash. At last report, it had tied down a short-term loan from China. It sold 31,696 cars worldwide last year, down about 100,000 from a few years ago. This year in the United States, it has sold 2765 cars.
Its top-end 9-5 sedan is being outsold in the US by electric plug-ins the Nissan Leaf and Chevrolet Volt. Saab executives admit they failed to prepare their customer base for the new 9-5.
Mustang loyalists create mayhem
Ford left it up to Mustang fans to name a special V6 performance version of the current model. To participate, the Ford faithful had to install an app called "You Name It" on their Facebook page. Nearly 3000 choices turned up on the social media outlet before Ford chose "Mayhem Mustang Package." The fellow who came up with the handle has won a three-year lease on a Mustang equipped with the package he helped to brand.
Ford says the contest allowed Mustang loyalists to have a say in the creation of an option package and it boosted awareness of the new package.
America's good ol' boys walk away from the trusty pick-up
Sales of pick-up trucks in the US have plummeted. April sales accounted for 11.8 per cent of light vehicles, numbers not seen since Ward's Auto began keeping a database in 1980. At their peak, in July 2005, pick-up truck sales accounted for 22.9 per cent of light vehicle sales. Then, a gallon of unleaded petrol cost US$2.28. Now it's around US$4. Texas is the biggest truck market in the US. One dealer said: "Our volume was typically 50 per cent F-Series (truck)
sales, but that has come down. We're going to be selling more cars than ever."
Tyre mountains
State governments in the US are looking at ways to better dispose of old tyres. In Colorado, a 72ha site contained 60 million clapped-out tyres in piles 20m deep. The city of Atlanta has set up a commission to study the problem it has with used tyres. Stockpiles become a breeding ground for all sorts of creepy-crawlies. Chemicals used in the manufacture of tyres can contaminate soils. Students in Virginia ran a used-tyre amnesty day, where 2000 were handed
in and shredded. Lake County, California, allows its residents to hand in up to 20 tyres a year for recycling at no cost. The state itself handles 44.4 million waste tyres a year.
Swansong for American car dealerships
San Francisco city has just lost its last all-American car dealer. The Ford Lincoln Mercury yard shut up shop the other day, leaving the 104sq km city to imported brands. The closest Ford dealer is now 20km outside of the city boundary. Same with Chevrolet and Chrysler outlets. Downtown Van Ness Ave, once nicknamed "car dealers row"and chockablock with American models, is now home to Japanese, German and British nameplates.
Dennis Fitzpatrick, regional vice-president of the California New Car Dealers Association, told the San Francisco Chronicle: "It's a tough market. Imports have a much bigger share in San Francisco."
Research shows that the 45,000 new and used car dealerships in the US turn over US$600 billion a year. The top 50 companies generate less than 15 per cent of total revenue. The big boys have many advantages, including a wider selection of vehicles. But the research shows they are facing stiff competition from smaller, internet-savvy dealerships.
Game of choice
Range Rover is using an interactive video to promote its new Evoque, due in New Zealand this year. The video is called "Being Henry" and is about choices and outcomes. You choose for Henry. Make the wrong choice of exterior colour or interior seating for the Evoque and his pistol-packin' granny threatens mayhem. Make the right choice and things fall into place.You can rerun the video until you're happy with the end result. Something like that, anyway. Search for the Being Henry website.
The good oil: China rescue plan as Saab runs out of gas
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