On the Move

Page 1

Monday, January 23, 2012

For Advertising Information Contact Your Local Cars.Com On-The-Move Sales Team at 599-2329

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Here, Arlington GM plant manager Paul Graham stands in front of a special Suburban in Arlington, Texas, on May 11, 2011. The General Motors Assembly Plant in Arlington had rolled its nine-millionth vehicle off the assembly line. General Motors recently was named the world’s top-selling automaker.

GM retakes title of top-selling global automaker By Tom Krisher The Associated Press

DETROIT — General Motors Co. has retaken the title of world’s topselling automaker, selling just over 9 million cars and trucks across the globe. The company said Thursday that it sold 9.03 million vehicles worldwide last year, up 7.6 percent from 2010. That’s more than 1 million better than Japan’s Toyota Motor Corp., which took the title away from GM in 2008. GM had held the global sales crown for more than

seven decades before losing it to Toyota, as GM’s sales tanked while it headed toward financial ruin. In 2009, GM filed for bankruptcy protection, needing a U.S. government bailout to survive. Now GM is profitable aga i n a nd its veh icles are selling well across the globe. The company reported net income of $7.1 billion for the first three quarters of last year, and it is expected to add to that number when it reports fourth-quarter and fullyear results in February. In 2011, Germany’s fast-

growing Volkswagen AG took second place behind GM with record global sales of 8.16 million, up 14 percent from the year before. The French-Japanese alliance of Renault and Nissan was third, selling 8.03 million vehicles. Toyota ended up finishing fourth in 2011 with 7.9 million vehicles sold. Its sales were hurt last year because the March earthquake in Japan slowed its factories, and dealers ran short of cars to sell. Toyota is aiming for a comeback and has forecast that it will sell 8.48 million vehicles

in 2012. Auto industry analysts predict a tight race this year between GM, Volkswagen, Toyota and the Nissan-Renault joint venture. Some analysts have said that VW is the world’s biggest automaker because GM’s figures include vehicles made by its Wuling joint venture in China. Many don’t count Wuling because GM doesn’t have controlling interest in the company, but GM includes it in global sales figures. Excluding Wuling, GM would have been topped

by Volkswagen. Being the world’s topselling automaker doesn’t mean much for the bottom line. But GM retaking the title is an example of how far the company has come since its 2009 bankruptcy. GM CEO Dan Akerson said last week that the company isn’t that concerned about posting large sales numbers and is focused more on making money so it can reinvest in products and generate returns for shareholders. But he says strong sales can bring strong finances.

“ You’re not goi ng to achieve the financial goals we want to achieve and have declining market share or declining numbers of units sold,” he said. “So it’s one indicator among many.” GM said its sales were up in all four of its regions: North America, Europe, South America and International Operations, which includes Asia. The Chevrolet brand led the way, selling a record 4.76 million vehicles across the world. GM sold 640,000 more cars and trucks last year than it did in 2010, when it sold 8.39 million.


Page 2 / Monday, January 23, 2012

Tallahassee Democrat / OnTheMOve

Auto industry, seeing new life in Average age of 2012, is on a rapid hiring spree cars on US roads

rises to new record

By Dee-Ann Durbin The Associated Press

DETROIT — Volkswagen opened a plant in Tennessee last month with 2,000 workers. Honda is hiring 1,000 in Indiana to meet demand for its best-selling Civic. General Motors is looking for 2,500 in Detroit to build the Chevy Volt. Two years after the end of the Great Recession, the auto industry is hiring again — and much faster than the rest of the economy. As an employer, it’s growing faster than airplane manufacturers, shipbuilders, health care providers and the federal government. The hiring spree is even more remarkable because memories of the U.S. auto industry’s near-death experience are fresh. In 2009, General Motors and Chrysler both got government bailouts and entered bankruptcy, and auto sales hit a 30-year low. In June of that year, about 623,000 people were employed by the auto industry in the United States, the fewest since the early 1980s. Now the figure is almost 700,000, a 12 percent increase. Sales are back up, too, and automakers are hiring by the thousands to meet increased demand. “The buzz is incredible around here about what opportunity we’re going to get if we can build a great product,” says Ben Edwards, who went to work for Volkswagen in Chattanooga, Tenn., last year and is now a team leader on an assembly line that installs tires and seats. Edwards was working as a general contractor until the housing market dried up. He says the pay at Volkswagen, which starts at $14.50 an hour, is fair and the benefits are generous. Besides hiring 2,000 people itself, Volkswagen figures the

DaviD P. Gilkey/Detroit Free Press/MCt JiM GensheiMer/san Jose MerCury news/MCt

Customers check out how cars are assembled at the Tesla factory in Fremont, Calif. Job growth in the auto industry is growing faster than airplane manufacturers, shipbuilders, health care providers and the federal government.

In 2009, General Motors and Chrysler both got government bailouts and entered bankruptcy, and auto sales hit a 30-year low. plant, where it will make its new Passat, will create 9,000 spin-off jobs in the region, including 500 at auto-supplier plants that are springing up nearby. Automakers are hiring again because car sales are rising. Americans bought 10.4 million cars and trucks in 2009 and 11.6 million in 2010. This year, they’re on track to buy 13 million or more, and auto companies are adding shifts to meet the demand. The auto industry’s 12 percent increase in jobs compares with a 0.2 percent gain for the economy as a

whole, excluding farming and adjusted for seasonal variation, since June 2009. The Labor Department reports Friday on jobs gained or lost last month. In a normal economic recovery, improvement in the housing market leads the way by creating construction jobs. But home prices haven’t stopped falling, and the construction industry has shed 8 percent of its workers since June 2009 — 474,000 jobs in all. The gains in the auto industry have been small by comparison. But they do create positive ripple effects for the economy. The Center for Automotive Research estimates that every new auto manufacturing job leads to nine other jobs — from parts makers to restaurants that feed autoworkers. Before the turnaround, new auto jobs were scarce. Detroit’s auto companies had too many factories, high wages and bloated

bureaucratic management. Jobs began disappearing in 2006 and 2007 as U.S. automakers tried desperately to restructure. Dozens of auto suppliers were pushed into bankruptcy. Then came 2008, when gas prices spiked and the financial crisis struck. The industry lost almost one in every four of its jobs. By the time GM and Chrysler got out of bankruptcy, in June 2009, the industry employed about half as many people as it did in 2000. Sales and profits have risen ever since, and payrolls have followed. GM, Ford and Chrysler are all making money for the first time since the mid2000s and adding workers to build popular models like the revamped Ford Explorer. Foreign companies, stung by the high cost of exporting cars to the U.S. when the dollar is weak, are racing to build more products here.

Jon Moss, manager of GM special vehicles, stands above the floor of Custom Automotive Services, which houses General Motors show cars and historic automobile fleet. By Jerry Hirsch Los Angeles Times

LOS ANGELES — The average age of autos on the road has reached a record high. The average age of the 240.5 million cars and light trucks being driven in the U.S. rose to 10.8 years last year from 10.4 in the year before, according to R.L. Polk & Co., an automotive market research firm. The aging fleet is a result of slow new vehicle sales since 2008 and the reluctance of consumers to invest in new cars, analysts said. Automakers say this has created a latent demand for new vehicles that is just beginning to translate into more robust sales. Automakers sold 12.8 million vehicles last year, a 10.3 percent increase from 2010 and the most since 2008. They expect sales to reach about 13.8 million this year. T he i mprovi ng new vehicle market is expected to continue for several

years and slow the aging rate seen in the U.S. fleet in the past three years, said Polk, which analyzes national vehicle registration data. In the meantime, the number of aged vehicles on the road should be good for some segments of the auto industry. “Dealer service departments and independent repair facilities, as well as aftermarket parts suppliers, will see increased business opportunity with customers in need of vehicle service,” said Mark Seng, global aftermarket practice leader at Polk. The average age of passenger cars rose to 11.1 years from 11 years at the end of June 2011, Polk said. The average age of pickup trucks and sport-utility vehicles rose to 10.4 years from 10.1. Overall, average vehicle age has increased an entire year since 2006 and almost two years since 2000.


Monday, January 23, 2012 / Page 3

OnTheMOve / Tallahassee Democrat

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Page 4 / Monday, January 23, 2012

Tallahassee Democrat / OnTheMOve

Buick unveils 2013 Encore compact luxury crossover SUV By Chrissie Thompson and Mark Phelan Detroit Free Press

DETROIT — Buick on Tuesday revealed the 2013 Encore, one of the first entries in a new segment of compact luxury crossover SUVs. The Encore will launch early next year as the fifth new entry from Buick in five years, as the brand seeks to remake itself for younger, luxury-minded buyers. Audi and BMW also are expected to add little SUVs to their lineups in 2013. “This vehicle is going to play in white space,” Buick marketing chief Tony DiSalle said ahead of the crossover’s unveiling. Buick is r id i ng two st ra ight ye a rs of U. S. market-share gains in its attempt to create a new “approachable luxury” segment, aimed at people who want to appreciate the finer side of life, but who shun flashiness. Buick now stands for beauty, quiet and refinement, said Mark Reuss, General Motors’ North American chief, in a recent interview. Reuss, 48, who joined GM at its Buick City operations in Flint, said the past couple of years have marked the first time

in his career in which he could articulate what a Buick was. At 168.5 inches long, the Encore is six inches shorter than the Volkswagen Tiguan. Buick says its 36.7foot turning radius is tighter than the smaller Mini Countryman. Its petite size means the crossover is aimed at singles and married couples without children, along with empty nesters who are ready to move on from minivans. The Encore’s headlights and waterfall grille look like those of its older sibling, Buick’s strong-selling full-size Enclave crossover. Hockey stick shaped character lines along the sides mirror the look of newer Buick Regal and Verano sedans, while upswept rear quarter panels give the five-passenger Encore a sporty look. Features include lanedeparture warning, blindspot alert forward collision warning and Bose noise cancellation to eliminate road noise. The Encore has a 140-horsepower, 1.4-liter turbocharged engine and six-speed automatic transmission. It will come with front- or all-wheel-drive. The front-drive Encore should get better than 30 miles per gallon on the highway.

Detroit Free Press

D E T ROI T — Ho nd a expects sales of its mainstream brand to grow to 1.25 million vehicles in the U.S. this year, while its Acura luxury brand expects sales to rise to 180,000 from 123,000 in 2011, CEO Takanobu Ito said last week. Ito also said he expects Honda to boost its North American production by

about 20 percent this year as sales rebound and the company exports more vehicles to offset the impact of a strong yen on profitability of vehicles exported from Japan. Honda’s U.S. sales fell 6.8 percent last year as the Japanese earthquake in the spring and flooding in Thailand disrupted its flow of parts, forced production cuts and left dealer showrooms understocked. While production at Honda’s North Amer-

Surprising safety and fuel efficiency innovations for 2012

By Mark Phelan Detroit Free Press

A host of new features you may never have heard of — and certainly didn’t expect to see in mainstream cars and trucks — will be commonplace by the end of 2012. New technologies and safety and fuel economy concerns have accelerated automakers’ innovation into hyperdrive. Here’s some of what to watch for in 2012 and at the North American International Auto Show: S T OP - S TA RT: A lso called auto stop, this shuts the engine off at traffic lights and stop signs and imperceptibly restarts it when you’re ready to go.

“Imperceptible” is the key word. Auto stop can reduce fuel consumption significantly, but people won’t tolerate it if they notice the engine cycling on and off, or if the vehicle doesn’t start moving when they expect it to. The Mazda 3 already offers the system, which will show up on many more models in 2012. DOUBLE-DIGIT AIR BAGS: Front-seat knee air bags are one of the next big things. Cars ranging from the subcompact Chevrolet Sonic to the compact Buick Verano and midsize Toyota Camry added them in 2011, with more to come next year. Ten is the magic number for air bags in new cars, as tho-

rax-protecting bags for the front and rear seats become common. Next up: inflatable shoulder belts a la the Ford Explorer and a center-mounted bag from GM that keeps front-seat occupants from knocking heads. Some automakers are even considering air bags to keep backseat passengers from hitting the front seats. The days when automakers believed safety systems don’t help sell cars are gone. MORE VOICE-RECOGNITION: Your smartphone will make your next car better, thanks to new systems that will use it for navigation, to stream your favorite news, music and more. Now that Transporta-

tion Secretary and driverdistraction hardliner Ray LaHood has come out in favor of hands-free systems rather than a pointless and unenforceable prohibition of phones, automakers are free to continue to innovate. Buick, Cadillac, Chevrolet, Hyundai and Toyota all have slick new systems to make the phone an integral part of your car. FORD STICKS TO ITS GUNS: Despite widespread complaints from customers and critics, Ford remains committed to the controversial MyFordTouch control layout. In its simplest form in the Focus, the system works fine. More elaborate versions used in the Explorer SUV eliminate the dials that control

audio volume, radio station, temperature and fan speed. Ford says it fixed usability problems with better voice recognition, but skeptics say dials are simply the best way to do some things. We’ll find out who’s right when Ford uses the system in some high-profile new models in 2012. SMALL BUT POWERFUL: This is a golden age of engine development. Small engines with new technologies have power and fuel efficiency that were inconceivable a few years ago. GM’s 2.0-liter four-cylinder turbocharged, directinjection engine produces a whopping 270 horsepower and 295 pound-feet of

torque. It would wipe the floor with a lot of old V-8s and rates 32 mpg on the highway in the Buick Regal GS, the year’s most surprising sport sedan. Ford created the catchy EcoBoost name for its turbo/ DI engines and uses it on everything from the compact Focus to the big Explorer crossover SUV and F-150 pickup. T he F i at- de si g ne d , 1.4 -liter four- cyli nder engine Chrysler builds in Dundee, Mich., will graduate from the slow-selling Fiat 500 to the sportiest version of the new Dodge Dart compact sedan. You’ll see lots more small engines with big performance numbers in 2012.

Chrysler looks to retake compact car market with reinvented Dodge Dart By Tom Krisher Andre J. JAckson/detroit Free Press/Mct

Buick unveils the 2013 Encore, a small luxury crossover, during the 2012 North American International Auto Show at Cobo Center in Detroit, Mich., on Jan. 10. GM initially will import the Encore from South Korea, Reuss said. The car will be quite profitable this way, he said, so GM can wait to see how many customers Buick attracts in this new seg-

ment before it decides whether to build the car in the United States. If GM were to build the Encore in the U.S., production options could include the Orion Township plant. That factory

already builds a compact vehicle, the Buick Verano sedan, along with the subcompact Chevrolet Sonic. Its production line runs two shifts, while many of GM’s U.S. plants operate on three. The Orion fac-

tory also has room for a second assembly line. Nex t ye a r GM a l s o plans to start building an Encore in China, where middle-level managers have made Buick a soughtafter brand.

Honda CEO: We’re poised to boost U.S. sales, North American production By Greg Gardner

Monday, January 23, 2012 / Page 5

OnTheMOve / Tallahassee Democrat

ican factories has reached pre-earthquake levels, dealer inventories won’t be fully recovered until March 2012, Ito said. Acura has unveiled the 2013 RDX crossover and a compact sedan called the ILX, along with a concept of a new NSX ultra-sports car. This month, Honda introduced a concept of the 2013 Accord that will reach showrooms by the end of this year.

Much is riding on every new product. Critics have not been kind assessing the very conservative styling of the 2012 Honda Civic. Other industry observers have asked whether lukewarm consumer reaction to Honda’s recent new models isn’t as big a factor in last year’s sales decline as the natural disasters in Japan and Thailand. Ito and Tetsuo Iwamura, Honda’s top U.S. executive,

defended the competitiveness of Honda’s recent models and the strength of its engine technology, which has been the automaker’s core strength for decades. “We think the Civic and the CR-V are competitive enough,” Ito said. The company is planning to recapture sales and market share lost in 2011. It is building a new factory in Celaya, Mexico, that will start production in 2014

and eventually make up to 200,000 cars annually. It also is expanding its Lincoln, Ala., plant to boost annual output by 40,000. As previously planned, its newest American plant in Greensburg, Ind., is increasing production. Between the two U.S. and one Mexican plant, Honda will be able to make about 1.9 million vehicles a year in North America by the middle of the decade.

The Associated Press

DETROIT — If the new Dodge Dart sells anything like the original, Chrysler will have the small-car hit it needs. The reinvented compact, unveiled at the Detroit auto show Monday, is nothing like its predecessor from the 1960s and ‘70s. But Chrysler is counting on the Dart, and its zippy name, to help it sell more small cars and continue its recent revival. Instead of the somewhat boxy lines of the original, the new Dart has the sleek stance of a modern muscle car, with a short hood, long roof and slightly flared fenders. And it’s based on the frame and suspension of a crisp-handling Alfa Romeo hatchback brought over by Chrysler’s Italian owner, Fiat SpA. The Dart also is a crucial test of the Chrysler-Fiat alliance, one aimed at saving millions of dollars by reusing Fiat frames, engines and technology, yet giving them an American style with more

Tony Ding/The AssociATeD Press

The 2013 Dodge Dart is unveiled at the North American International Auto Show on Jan. 9 in Detroit, Mich. space for people and gear. The Dart is the first Chrysler designed jointly by the companies. Chrysler, which ran out of cash and had to be bailed out by the government in 2009, saw sales jump 26 percent last year, and it’s poised to turn its first annual profit since 1997.

Now the automaker needs a breakthrough in the growing small-car market, where it hasn’t had success since the bug-eyed Dodge Neon in the mid-1990s. After nearly failing, Chrysler also realizes it must end its dependence on inefficient SUVs and pickups. Since the Neon, few have

considered Chrysler compacts, keeping the company out of a market that has grown to about 15 percent of U.S. auto sales. Forty years ago, it was a different story. Back then, Dodge Darts were everywhere. Middle-class Americans bought nearly 3.3 million between 1960 and 1976,

when Chrysler offered versions for every lifestyle: the stripped-down commuter car, convertibles, the family station wagon, and street racers like the Dart Swinger, which came with a racing stripe, hood scoops and a 340-cubic-inch V-8 engine. Sales peaked in 1974 at more than 340,000 when gasoline

was a little over 50 cents per gallon and President Richard Nixon resigned during the Watergate scandal. Chrysler would kill for those sales today. Its current small-car offering, the Caliber, sold only 35,000 last year, a fraction of the class-leading Toyota Corolla at 240,000. The Caliber is noisy, slow and its looks can’t compete with rivals like the Honda Civic, Ford Focus, Hyundai Elantra and Chevrolet Cruze. “Let’s face it, the Caliber is not really able to go ... toe-to-toe with ... competitive compact cars,” says Reid Bigland, CEO of the Dodge brand and Chrysler Group LLC’s sales chief. “That’s about to change.” Some versions of the Dart will get 40 miles per gallon on the highway. Its starting price is $15,995, at least $500 below its closest competitors, the Ford Focus and Chevrolet Cruze. The Focus starts at $16,500, while the Cruze base price is $16,720. The Toyota Corolla, the sales leader in compacts, starts at $15,900.


Page 6 / Monday, January 23, 2012

Tallahassee Democrat / OnTheMOve

Lexus unveils LF-LC hybrid, a concept sport coupe

Carlos osorio/The assoCiaTed Press

Lexus Division General Manager Mark Templin with the Lexus LF-LC concept as it’s introduced at the North American International Auto Show in Detroit on Jan. 9.

Lexus coupe a forerunner for future models By David Runk The Associated Press

D E T R O I T — L ex u s unveiled a sleek, powerful concept sport coupe Monday that the luxury brand said offers a look at how its future offerings might be designed. The two-door, four-seat LFLC hybrid, which features an expansive glass roof, was displayed for the first time at the North American International Auto Show in Detroit. It features tail lamps inspired by the look of jet airplane afterburners. “We wanted this to be a gorgeous car, but we also wanted everything to be functional with a focus on the driver,” said Lexus general manager Mark Templin. The LF-LC is packed with technology, including a touchscreen device in the center

console that allows the driver to control some of the vehicle’s systems as well as two 12.3-inch LCD display screens. Touch-screen surfaces on each door operate windows, mirrors and seats. The luxury arm of Toyota Motor Corp. said there are currently no plans to produce the LF-LC. The car illustrates what Templin said is the latest phase for Lexus, which is aiming for “emotional and inspirational” vehicles. This year it plans nine new or updated vehicles and three F Sport models. As part of that, Lexus plans to release new versions of the midsize GS sedan early this year. “From the GS forward, all our products will have more distinctive designs, more engaging driving dynamics, even better fuel economy and more advanced electronics,”

Templin said. Here’s what’s new: n POWER: Lexus expects the LF-LC would kick out more than 500 horsepower. n SPEED and MILEAGE: Those technical details weren’t released. n LOOKS: A definite headturner, the LF-LC’s glass roof and flowing lines set it apart. There’s no mistaking the luxury look and feel as well as its powerful appearance. n CHEERS: It’s a beautiful machine, even at rest. It surrounds the driver in the latest technology, and raises the possibility that future Lexus models will draw on the distinctive design. n JEERS: A car like the LFLC likely would be a pricey addition to the Lexus collection. The rear seating, which sets it apart from the traditional sportscar, looks to be a tight fit.

deTroiT Free Press/JessiCa J.TreViNo/MCT

Even at rest, the Lexus LF-LC Hybrid sports coupe is a beautiful machine. Aiming to be an emotional and inspirational vehicle, with its glass roof and flowing lines, it’s a definite head-turner. This year, Lexus plans nine new or updated vehicles and three F Sport models. Lexus also plans to release new versions of the midsize GS sedan this year.


TD-0000196663

OnTheMOve / Tallahassee Democrat

Monday, January 23, 2012 / Page 7


Page 8 / Monday, January 23, 2012

Tallahassee Democrat / OnTheMOve

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$13,977

850-576-6171

Kraft Nissan

$14,977

850-576-6171

$14,997

Kraft Nissan

850-576-6171

Kraft Nissan

$15,777

850-576-6171

‘09 HONDA CR-V

‘08 NISSAN Rogue

‘08 NISSAN 350Z

‘10 NISSAN Armada

Tilt and Telescopic Steering Wheel, PW, Cruise, Spd-Proportional Power Steering.

4 Clyinder, ABS, PW, PL, Cruise, Auto.

V6, 3.5 Liter ABS, Tilt, PW, PL, Cruise, Auto, 5-Spd w/Overdrive & Manual Mode.

17K Miles. 1 Owner. Every Option Available.

$16,677

850-576-6171

Kraft Nissan

$16,997

850-576-6171

Kraft Nissan

850-576-6171

TD-0000196664

Kraft Nissan

$20,997

850-576-6171

3 2 27 M a h a n D r i ve | Ta l l a h a s s e e, F L 3 2 3 0 3

Kraft Nissan

$36,377

850-576-6171


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