Auto News for July 1

GM shares closed lower on Monday after the company announced another recall – this time some 8.4 million older vehicles for ignition switch problems. The announcement came shortly after GM outlined a compensation plan for those affected by the previous defective ignition switch problem that has been linked to at least 13 deaths and dozens of accidents.

An excellent story on all this can be found here:

http://www.nytimes.com/2014/07/01/business/gms-payout-formula-for-the-dead-1-million-and-up.html?hp&action=click&pgtype=Homepage&version=HpHeadline&module=second-column-region&region=top-news&WT.nav=top-news

Lately forecasters were predicting that June auto sales might take a dip, but that was not the case at Chrysler Group. Sales rose 9 percent and that topped forecasts thanks to strong demand for its Ram truck and Jeep products. It was Chrysler’s best June since 2007.

Cars.com rates vehicles based on where they are made in the U.S. and their domestic parts content. On that basis, the Ford F-150 and the Toyota Camry topped the latest survey. The Camry made the list because it is put together here in the U.S. with mostly domestic parts. Those two were followed by the Buick Enclave and Chevy Traverse.

It seems strange to look at a listing of Ford officials and not see Alan Mulally near the top. He officially stepped down on June 30 and many believe he will go into the books at one of the greatest auto industry CEO’s ever. It seems fair to speculate that he will be avidly courted by other firms. Stay tuned.

As dealers start to receive 2015 models and clean out their lots of 2013’s, the average transaction price for light vehicles dropped $245 in June. TrueCar said GM had the highest transaction price in the industry at nearly $35,000 “a tribute to the strength of their new models and incentive spending discipline.”

For the first six months of the year, J.D. Power said transaction prices are at record levels. One reason is longer loan term options that allow buyers to afford higher prices, it said. One wonders how that will affect future sales, with consumers owing more money on aging vehicles.

 

 

 

 

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