The Car Exam News #38: Olivier Francois markets Chrysler, and the Lincoln MKT as a Limo?

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Olivier Francois markets Chrysler: Automotive News has an interesting story about the Chrysler brand CEO (to the left in the photo above), and how he has moved Chrysler's marketing in a new, daring direction--especially convincing Detroit rapper, Eminem, and his people to go along with the idea for the successful two-minute Chrysler 200 Super Bowl Ad. Francois looks pretty bright right about now--will this be sign of positive things to come for the Chrysler brand? It's too early to tell, but if his strategy gets buyers into Chrysler showrooms, then it just may be the correct strategy.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110221/OEM02/110229997/1302) 2/21/11



The Lincoln MKT as a limo? Automotive News reports that's what Lincoln is trying to convince potential limo customers. It will replace the departing Town Car with the MKT for limo duty, but it doesn't seem like those potential buyers are crazy about the idea, calling their responses "lukewarm."



According to the report, the Lincoln MKT has sold poorly since it went on sale in 2009, with just over 7,000 MKT's being sold in 2010. The styling of the MKT is polarizing, to say the least, and Ford/Lincoln's attempt to sell the idea to limo companies just may backfire.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110218/OEM04/110219843/1256/OEM02) 2/18/11

P. Scott

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The Car Exam News #37: Toyota opens a new plant in Japan, & GM to give Ford's "Sync" some competition this year

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Toyota opens a new plant in Japan: According to Autoblog, Toyota has opened its first new auto manufacturing plant in Japan in almost 20 years. The Miyagi factory is about 160 miles north of Tokyo. It is only building the Yaris right now, but should add two other models by next month. The plant was designed to make production faster, and the decrease the demand for energy--which saves money for Toyota for now--and if the U.S. dollar can increase its value against the Japanese Yen, then Toyota will also have lower operating costs here in the U.S. As it stands right now, however, the Yen is much stronger than the Dollar.

Source: Autoblog (http://www.autoblog.com/2011/02/18/toyota-opens-first-new-plant-in-japan-in-almost-20-years/) 2/18/11



Watch out, Ford "Sync"--here comes the General: Automotive News is reporting that General Motors will give Ford's "Sync" information and entertainment system some competition later this year when it debuts its own new system called "MyLink." MyLink will function very much like the Sync system in Fords--it will respond to spoken commands, and will offer various other functions as well. MyLink will debut in Chevrolets first (the Equinox and the Volt) in the fall of this year, and debut in GM's other brands later on. GM will still offer its "OnStar" system with the MyLink system.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110217/OEM06/110219882/1182) 2/17/11

P. Scott

The Car Exam News #36: The Cadillac CTS sedan recalled, and the Feds don't want Bob Lutz back at GM?

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The Cadillac CTS sedan recalled again: Automotive News reports that GM is recalling over 400,000 Cadillac CTS sedans (2009-2010 model years) because of a problem with one of the rear wheels (the rear tow link). The problem could lead to one of the rear wheels becoming unstable; GM says no injuries or lost lives have been reported because of the faulty part, and about one in 20 of the cars recalled will have the part replaced. GM should start notifying customers soon about the recall.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110216/RETAIL05/302169946/1260) 2/16/11



The feds may be saying just say "no" to a Bob Lutz return to GM--at least for now: The Daily Beast reported that General Motors wants to rehire former chief of vehicle development, Bob Lutz, as a consultant for the company, but that the U.S. Department of Treasury doesn't want that to happen, because if he is paid so close to the time he retired from GM, it may be considered a "golden parachute" to the 79-year-old Lutz. This could change in about three months, though, since a year will have passed since his retirement. If GM can get Bob Lutz back on board, it will regain a knowledgeable force in the auto industry.

Source: The Daily Beast (http://www.thedailybeast.com/blogs-and-stories/2011-02-15/bob-lutz-may-come-back-to-gm-but-the-government-is-balking/) 2/15/11

P. Scott

The Car Exam News #35: Chevy benefits online from Super bowl ads, Marchionne says merger w/Chrysler can wait & consumers have more small car options

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Chevrolet benefits online from Super bowl ads: According to the Detroit Free Press, Chrysler and VW weren't the only auto companies with with successful Super Bowl ads with lots of online views. The Detroit Free Press reports that marketers for Chevy did their own online research to see how its ads performed online (GM ran five Chevrolet ads, including a "Lassie Themed" Chevy Silverado Pickup ad, a Camaro ad, and more), and they came up with a staggering number: Chevrolet received 55 million hits in the four days after the Super Bowl--which led to a 143% increase in consumer consideration of the brand, as well.

Source: Detroit Free Press (http://www.freep.com/article/20110216/BUSINESS01/102160384/Did-Super-Bowl-car-ads-work-Chrysler-steals-show-Chevy-grabs-online-views?odyssey=tab|topnews|text|Auto News) 2/15/11



Sergio Marchionne doesn't think so just yet: Automotive News reported that Marchionne, the C.E.O. of Chrysler Group LLC and Fiat SpA said he didn't think it was necessary for Fiat and Chrysler to merge before 2014, but he has left that option open, as he stated to reporters after a preliminary hearing in Rome on February 15th. Marchionne feels financial stability and investments in both companies are a key with any such action moving forward.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110215/OEM/110219930/1193) 2/15/11




Consumers will have more choices in the small car market--especially from the United States and Korea: the Detroit Free Press reported that Japanese automakers (especially Honda and Toyota) will be facing some strong competition from U.S. and Korean automakers in the small car business. Ford has the all-new 2012 Ford Focus coming on the horizon, and Hyundai has the all-new Elantra and Accent coming as well.



Potential Honda and Toyota buyers will have a longer list of small car choices to choose from, which should bode well for consumers in the market for a new small car. Also, if gas prices keep rising, there will be more incentive for potential new car shoppers to switch to a smaller, more fuel-efficient vehicle.

Source: Detroit Free Press (http://www.freep.com/article/20110214/BUSINESS01/102140372/1002/business/Small-car-competition-Japan-faces-challenge-from-U-S-Korea) 2/13/11

P. Scott

The Car Exam News #34: Mercedes to distribute Smart Car in U.S., and President Obama wants more incentives for electric vehicles

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Mercedes will sell the Smart Car in the United States: Automotive News has reported that Mercedes-Benz will now distribute the Smart Car in the U.S., taking it over from the Penske Automotive Group. Daimler AG (which owns M.B. and the Smart Car) gave the rights to sell the car to Penske, who started distributing the Smart Car in 2008 in the U.S. with good results at first--but then sales of the tiny car hit rock-bottom after that. The switch to Mercedes-Benz, U.S.A. distribution of the Smart Car should be completed by July of this year.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110214/RETAIL01/110219937/1287) 2/14/11



President Obama wants grants for electric vehicles and U.S. infrastructure: Automotive News is also reporting that President Obama, as a part of his proposed fiscal year 2012 budget plan, is proposing $200 million dollars to provide grants to 30 U.S. communities to buy E.V.'s in fleet purchases, as well as providing them with money to invest in their infrastructure. The Obama Administration's goal is to have one million "advanced-technology" vehicles on U.S. roads by 2015 in a bid to reduce dependence on foreign oil, but everyone is not buying the idea, including the House of Representatives House Energy and Commerce Committee Chairman, Republican Fred Upton (Michigan), who thinks government selection of companies for the plan is a bad idea, and takes the choice away (privately) from American Citizens.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110214/OEM05/110219936/1429) 2/14/11

P. Scott

Consumer and Car Exam News # 33: Chrysler 200 ad a big hit--especially with dealers, and Chevrolet keeps adding special Camaros

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Chrysler dealers are taking advantage of the 200's good fortune: Automotive News reports that Chrysler had a popular ad with its Chrysler 200 Super Bowl commercial featuring the rapper, Eminem, and dealers are doing a lot to try to take advantage of its success. Chrysler deals are trying to draw customers by printing t-shirts, sending lots of emails to customers and more. Chrysler's ad agency, Wieden + Kennedy has also stated there have been over five million views of the ad on YouTube.com.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110214/RETAIL07/302149934/1250) 2/14/11



Chevrolet keeps putting more heat on the Ford Mustang with the Camaro: Automotive News is also reporting that Chevrolet will come out with a limited-edition Camaro every six months to keep interest in the car strong, and keep the current Camaro development evolving. It was just last week at the Chicago Auto that Chevy revealed plans to sell the new supercharged, 550 hp 2012 Camaro ZL1, and it will also be selling 500 replicas of the 2011 Indianapolis 500 Camaro Pace Car this spring (the V6 Synergy model will also probably make a comeback in the spring, as well), and possibly another 2012 Camaro based on The Transformers movie sequel may debut this summer.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110214/RETAIL03/302149946/1156) 2/14/11

P. Scott

Consumer and Car Exam News #32: 2012 Chevrolet Camaro & Hyundai Genesis news from the Chicago Auto Show

Chevy means serious business with the Camaro in Chicago: According to Automotive News, Chevrolet unveiled a new, 6.2 Liter, 550 horsepower ZL1 at the Chicago Auto Show today. The new Camaro will reportedly debut on the market at the beginning of 2012. It will also have a six-speed, dual clutch transmission--and according to Chevrolet, it will be "the fastest Camaro ever offered by Chevrolet." The Car Exam hopes to have an opportunity to drive it in the future--stay tuned!

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110209/OEM04/110209730/1156) 2/9/11



The Hyundai Genesis will get more muscle, as well: Automotive News is also reporting that Hyundai revealed at the Chicago Auto Show that it will pack more power under the hood of the Genesis for the 2012 model year. The 5.0 Liter V8 in the R-Spec model will produce 429 horsepower and 376 ft. pounds of torque, the most ever for a Hyundai-produced engine. It will also have an eight-speed automatic transmission, a sport-tuned suspension, redesigned front fascia, 19-inch wheels and much more.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110209/OEM04/110209720/1156) 2/9/11

P. Scott

The Car Exam News # 31: The Ford F-150 recalled, and Automakers could roll in the dough with Super Bowl Advertising

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A bump in the road for Ford: Automotive News reports that Ford is recalling almost 281,000 2009-2010 F-150 pickups built between January 2008 and November 2009 because NHTSA reports the door handles could possibly malfunction and come open in the event of a crash. No accidents or injuries had been reported as of January 21, however.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110203/RETAIL05/302039961/1147) 2/3/11



Numbers can mean a lot: Automotive News is reporting that if a record number of viewers watch the Super Bowl this coming Sunday, the $3 million-dollar-plus ads some automakers have paid for may translate in higher sales for those automakers (some of which include G.M. and Volkswagen). If you're watching the big game this Sunday and it's time for commercial break--and you need to take a potty break--automakers with high-priced ads just may prefer it you hold it in awhile longer...at least until their commercials are over.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110203/RETAIL03/110209926/1295) 2/3/11

P. Scott

The Car Exam News #30: Winter storm wallops automakers, and Asia is ahead of the U.S. in the electric vehicle race

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Bad weather halts the auto industry: The Detroit Free Press is reporting that the colossal winter storm that has hit the Midwest and continues to move east forced Ford, Chrysler and General Motors to
halt production and cancel shifts at over 30 plants across the Midwest on Wednesday.
Production should resume at most of those plants today.

Source: The Detroit Free Press (http://www.freep.com/article/20110203/BUSINESS01/102030429/Storm-forces-auto-factories-close-shifts-canceled?odyssey=tab|topnews|text|Auto News) 2/3/11




Asia is beating the United States again: Automotive News reports that a research study shows that Asia is probably already ahead of the United States the development of electric vehicles. Why? South Korea and Japan are leading the pack in terms of battery development, while here in America consumers are unsure about the reliability, cost savings, resale value and lack of charging stations in the U.S. (for consumers already suffering from "range anxiety" due to the very limited driving distance of electric cars, the results from that study will probably make them even less likely to consider purchasing an electric vehicle anytime soon).

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110202/OEM05/110209941/1186) 2/2/11

P. Scott

Consumer and Car Exam News # 29: BMW & Mercedes outselling Lexus in 2011, and more new cars sold in January

The race against Lexus is getting tighter: Automotive News is reporting that BMW and Mercedes have gotten off to a better start in the sales race in 2011 than Lexus. Lexus has outsold BMW and Mercedes every year since 2000, but BMW and Mercedes have been closing the gap, especially in 2010. It is expected that the sales race between the three brands will be even tighter this year.

Source: Automotive News (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110202/COPY01/302029988/1292) 2/2/11



January 2011 auto sales better than January 2010: The Detroit Free Press is reporting that auto sales in January 2011 were up 17.3 % over January 2010. Consumer confidence rose in January; more new car sales went to individual buyers than fleets. Nevertheless, General Motors and Toyota are still offering sales incentives to attract more customers--if you're a consumer looking to find a good deal on a new vehicle, a G.M. or Toyota product just may look more appealing to you at the moment.

Source: The Detroit Free Press (http://www.freep.com/article/20110202/BUSINESS01/102020335/Auto-industry-sees-17-3-increase?odyssey=tab|topnews|text|Auto News) 2/1/11

P. Scott