Aug 122012
 

Japan is ramping up production in the wake of the 9.0 March 11 earthquake, and major factory-to-dealer incentives are on the way from Toyota and Nissan to move the anticipated inventory wave. Automotive News reports the Japanese automakers will offer cash, interest rate holidays and significant lease rewards in the U.S. industry. Decreased sales in early May – particularly when in contrast to those from a year ago – prompted the automakers to consider diving back to the incentives pool.

Supply is back meaning vehicles must move

Both Toyota and Nissan expect to return to full production capacity in North The United States before May is over, which means there will be inventory to move. Usually, incentive spending is used. This makes it easier to keep away from overstock. There will have to be even more automobiles sold since Nissan believes its Japanese factories can be up and running normally again by June.

The plan is something Nissan Division Manager Al Castignetti believes will work. The best deals possible could be offered in the tent sales he sees happening. These sales will be on the Altima and Maxima cars.

Compared to a year ago, sales are hurting

Compared with May sales last year, Toyota and Honda sales have fallen on hard times this May. A 56 percent drop in Toyota sales has been seen. The Lexus had a 45 percent drop. A 41 percent decrease in Honda sales was shown. There was a 46 percent decrease in the Acura division. Nissan and Infiniti are only down 12 percent. Of all the Asian automakers, Hyundai was one of the only that had a rise in May number. It was up 37 percent total.

J.D. Power and Associates forecaster Jeff Schuster blames Japan’s May sales slumps on a combination of higher gas prices, lower rebates and shortages caused by the Japanese earthquake.

Change from February to March in incentives

According to Edmunds, the decline in dealer rewards has been happening for a few months, even in the U.S. An average incentive of $2,346 per new vehicle sold was shown in the United States in Feb. 2011. In March, that dropped 8.6 percent or $220.

That was a huge drop in incentives. Ivan Drury as an Edmunds analysis spoke about it.

“These latest numbers show by far the biggest February-to-March incentives decline since Edmunds started tracking in 2002,” Drury said. “The decline is mostly likely a result of a 26 percent month-over-month sales jump in subcompact and compact cars which typically have a much lower level of incentives compared to large trucks and SUVs.”

Will increased rewards hurt automakers again?

In a report entitled “The Impact of Customer Rebates and Retailer rewards on Manufacturer Profitability and Sales, ” a team of researchers presented a statistical analysis that suggested that fixed production and labor costs for Detroit’s Large Three (GM, Ford Motors, Chrysler) are the same whether they produced as several vehicles as possible or stood idle part of the time. There was overstock and more incentives since the Large Three produced more than they needed to. There were lots of sales with these incentives. They were often at a loss though.

Are you currently looking to sell or purchase a used or pre-owned Ford F-150 Spokane? If this seems like you, look at the inventory at BJ used cars!

Apr 142011
 

Chrysler began in 1908 when Walter P. Chrysler, who loved cars very much, went into Chicago and joined a car show. He was working in a railway company and was only thirty three years old at that time. Even though he was employed in that particular industry, his love was not for trains but for automobiles. When he saw a white locomobile for sale, he did everything he could just to buy it. He even went to the extent of getting into a lot of debt, since he borrowed money to make the purchase. He was always fiddling with the car. That was why he learned how to drive the vehicle pretty late.

In 1920, he left his job and took over the Willy Overland Company and the Maxwell Chalmers Enterprise. These corporate groups were losing and Chrysler tried to revitalize these companies, so that they could compete in the industry and make progress in their line of business. The first car in the Chrysler line was developed four years later. Amazingly, Chrysler’s first release had a very positive outcome which encouraged him more. Just three years after Chrysler bought the Maxwell Chalmer’s enterprise; the Chrysler brand was already gaining a lot of income and was making a name for it. All in all, Chrysler created a number of famous car manufacturer brands; the Desoto, Plymouth, Dodge and Chrysler. Chrysler was considered a full-fledged car manufacturing company just after another five years. This is a testament to what the Chrysler brand is capable of doing, in a short span of years. Chrysler was now strong enough to compete against the two leading car manufacturers in the industry, which were GM and Ford Motors. Chrysler attempted to dislodge these two giant manufacturing companies in the market.

After ending his trade with the two companies in 1920, he worked once again. Chrysler tried to perk-up the sales of two companies that were not making progress in their field of business. These two companies were Willy’s Overland and Maxwell Chalmers. In 1924, that was another four years later, he introduced his own brand with his name carrying it. It was his first taste of success in the industry. More successes followed. After three years he bought out Maxwell. Chrysler was not only a brand of a car but also a successful manufacturing company. He introduced more lines such as the Desoto, Dodge and Plymouth as additions to his Chrysler brand. After five more years, Chrysler was now an entirely car manufacturing company. This was one of the more important highlights in the history of Chrysler. Slowly, the company he started became bigger and bigger. The company is now ready to face more serious challenges ahead and make a name for itself, in the industry. One of its challenges is to compete with the world’s two leading car manufacturers General Motors (GM) and Ford. A large percentage of the automobile market belongs to these two manufacturing giants. Chrysler would like to increase its share in the market.

After another five years, Chrysler became a major automobile manufacturer in the country, and was now ready to compete with the two leading automobile manufacturers in the world, namely GM and Ford Motors. These two giant companies were monopolizing the automobile the industry when Chrysler was trying to make waves in the industry. However, in 1934, there was a set back for Chrysler when a brand, Airflow, did not do well in the market. Followed by the Great Depression of the 1930’s, many companies were shut down. Chrysler was able to sustain its operations during the economic recession. During the Second World War, demand for automobile was very low. In order to survive, Chrysler manufactured military vehicles for sale to the government. Despite these challenges, Chrysler continued to progress. In 1951, it developed the Hemi V8 engine. The company is always ahead in the development of new technologies to create better and quality cars.

The past few decades gave Chrysler numerous good and bad times. Sometimes, they are at the top and, sometimes, they are at the bottom. Technological discoveries, wars, and economic problems all helped prepare and forge Chrysler into what it is today. It has always manufactured fine cars that grab the attention of the public. One thing is sure. Chrysler is here to stay.

TruckDealers in Surrey BC