Ferrari sports and racing cars for sale at Maranello on May 18th
Posted by Mehul Brahmbhatt on April 15th, 2008 filed in Car, Ferrari, NewsComment now »
RM Auctions, in association with Sotheby’s, will offer an exciting line-up of important Ferrari sports and racing cars when they return to Maranello, Italy on May 18th for the much-anticipated ‘Ferrari: Leggenda e Passione’ auction event. Headlining the list of significant consignments for the single-day event is a pair of rare and ultra-desirable California Spyders, a 1951 Ferrari 212 Inter Coupe Pinin Farina with celebrity provenance, and a 1951 Ferrari 340 America Coupé with a superlative racing history.
London, England (April 14, 2008) – Ferrari aficionados will have a rare opportunity to peruse and bid on some of the marque’s finest – and oldest – sports and racing cars next month when RM Auctions, in association with Sotheby’s, returns to Maranello, Italy for their much-anticipated Ferrari: Leggenda e Passione auction event.
To be held May 18th at Maranello’s legendary Ferrari factory, the single-day event will present dozens of significant vintage Ferraris for auction, as well as a selection of newer Ferrari models, and items from one of the world’s most important Ferrari memorabilia collections, Jacques Swaters’ famed Ferrari Francorchamps Collection.
“Our upcoming Ferrari Leggenda e Passione auction is set to be a truly historic and international event, highlighting over 50 years of Ferrari history,” said Max Girardo, Managing Director of RM’s European Operations.
“We have received tremendous early interest in the event and have secured a magnificent assortment of consignments, including some of the earliest Ferraris produced, making this a ‘must attend’ event for professional collectors and those with a predilection for the Ferrari marque,” he added.
Headlining the growing list of significant consignments are no less than two rare and ultra-desirable California Spyders – a magnificent 1958 Ferrari 250 GT LWB California Spyder, (s/n 0923GT) and a stunning 1961 Ferrari 250GT SWB California Spyder (s/n 2377GT) with celebrity provenance. Completed on March 3, 1961, 2377GT was shipped to the US in the 1960s after being purchased by Academy Award winning actor, James Coburn, who shared a passion for Italian sports cars with close friend and fellow Ferrari enthusiast, the legendary Steve McQueen. Over the course of his 25-year ownership, Coburn was a regular sight in his Spyder, using it as a daily driver to and from the movie studios. Additionally, on weekends, he, along with McQueen and fellow actor James Garner, could often be found testing their driving abilities through the winding Hollywood hills. Throughout Coburn’s ownership, he repainted the vehicle three times, first in dark blue, followed by silver and finally burgundy; today the car appears in its original black and includes extensive documentation relating to its restoration and maintenance.
Another star attraction with celebrity provenance, and just confirmed for the May auction, is a fabulously restored 1951 Ferrari 212 Inter Coupe Pinin Farina (s/n 0265EU). Fitted with a prototype 3.0-litre 250 type V12 engine, this unique example was purchased new by renowned film director Roberto Rossellini and used on a road trip to Sweden by him and his wife, three-time Academy Award winning actress, Ingrid Bergman.
Also set to cross the block at the Maranello event is a legendary 1951 Ferrari 340 America Ghia Coupe, (s/n 0150A). Regarded as one of the rarest of all early racing Ferraris, this example was the last of four 340 Americas bodied by Carrozzeria Ghia, and the only one with a superlative racing history. Sold new in 1952 to noted Ferrari patron, Antonio “Tony” Paravano, the car was subsequently shipped to California before making its racing debut at Torrey Pines in July 1952, closely followed by an appearance at the grueling Carrera Panamericana in Mexico, where Jack and Ernie McAfee drove it to a respectable fifth place finish.
To coincide with the 40th anniversary of the Ferrari Daytona, the May event will also offer an ultra-collectible, award-winning 1971 Ferrari GTS/4 Daytona Spyder, a fully restored 1971 Daytona Coupe; and a totally original 1973 Ferrari 365 GTB/4 Daytona, with just one owner from new and 2,500 original miles.
New Car Sales Tactic: Show What Happens When You Crash
Posted by Mehul Brahmbhatt on April 13th, 2008 filed in CarComment now »
One of the most talked about displays at last week’s New York International Auto Show was a crumpled Ford Taurus. Ford wanted to show visitors how well the car withstands a collision.
This is relatively new terrain for automakers, which historically–and religiously–avoid any suggestion that automobiles actually collide, that you might lose your life in one of their products. Safety features are most often promoted by showing how the vehicle miraculously avoids trouble: the SUV that swerves to avert a child darting into the street, the family sedan that abruptly stops on slick pavement, inches short of a fender bender with a car that had mistakenly nosed into an intersection and so forth.
Automobile safety has always been hard to explain, difficult to sell. And car makers have allowed unspoken white lies about safety to move their product. Drivers who ride high in a vehicle, for example, report feeling safer because they can see out over traffic. Yet a vehicle with a high center of gravity is more likely to roll. Large and heavy cars cocoon passengers in copious steel, protecting them in the event of a collision. Yet large and heavy vehicles are more likely to lose traction (and are very difficult to regain control of once they skid or spin). They’re more likely to be involved in an accident in the first place.
There are signs that this conventional wisdom is changing. Volkswagen ran a memorable, if controversial, campaign for its 2007 Jetta and Passat called, “Safe Happens.” Commercials showed passengers riding along casually and nonchalantly before a violent crash. The passengers emerge unharmed and the vehicle is mostly intact. Viewers hated the commercials for dramatizing the fears that lurk with anyone who straps on a safety belt in an automobile. But the ads raised consumer interest in Volkswagen.
SmartCar realized that safety was a crucial consideration for its debut. Engineers at the company are justifiably proud of the canny ways the car protects its occupants. They put videos of the crash tests on the Internet even before the ForTwo went on sale in the United States. At any press event, they have crumpled, rolled and battered vehicles on display.
So now Ford is scaring the daylights out of drivers as a sales tactic. As insidious as it seems, it’s actually a breath of fresh air.
Toyota cutback shouldn’t be a concern
Posted by Mehul Brahmbhatt on April 10th, 2008 filed in ToyotaComment now »
There was some alarm a couple of weeks ago when Toyota Motor Co. announced that it was cutting back on production of its Tundra truck and Sequoia sport utility vehicle.
If the Japanese automaker is cutting production, does that mean that the $1.3 billion plant it’s building in Northeast Mississippi is in danger of being scuttled, some wondered? The mid-sized Highlander SUV will be built at the Blue Springs plant, so some of the worried thinking was that a ripple effect could mean potential problems with building the plant.
Rest your fears - that isn’t happening, barring a complete collapse of the auto industry and an implosion of the world’s second-largest automaker.
So why cut production of the Tundra and Sequoia? While sales of the hulking vehicles are higher than a year ago, Toyota expects demand to slow. Given the higher gas prices and other economic worries the move is in anticipation that consumer spending will pull back on big-ticket items.
Tundra sales were, in fact, nearly 17 percent higher in March than a year earlier. Sequoia sales were up nearly 20 percent. So it’s not like the bottom was falling out. However, total Toyota SUV sales - which include the FJ Cruiser, 4Runner, Highlander, Land Cruiser and Sequoia - were down nearly 20 percent in March and 15 percent for the year.
Highlander sales, by the way, were down 0.2 percent in March but were up more than 7 percent for the year.
And while Toyota will be trimming production, it’s not laying anybody off.
Other automakers off, too
But Toyota wasn’t the only automaker to post a less-than-stellar truck and SUV sales in March.
GM’s truck and SUV sales dropped 22 percent in March; its Hummer brand sales were down 29 percent.
At Ford, sales for trucks and large SUVs fell 17 percent. Even its popular F-Series pickup, the best-selling truck for 31 years, were down 24 percent.
Chrysler’s light truck sales fell nearly 22 percent. Its Jeep brand had sales drop 12 percent.
Honda’s truck and SUV sales declined 12 percent.
Nissan’s truck and SUV sales dropped 20 percent. The company’s Titan pickup plummeted 45 percent while its Armada SUV plunged 43 percent
Auto analysts say - no surprise - that small car sales are faring much better, with four-cylinder vehicles gaining in popularity.
Will auto sales improve? Some automakers are hopeful that the economic stimulus package that consumers will be getting in the next few months will spur buying.
Some rough months likely are still ahead for the industry before it gets better.
But thankfully, the building continues in Blue Springs. And in Dorsey and Baldwyn.
Toyota and GM recall 662,000 cars in U.S.
Posted by Mehul Brahmbhatt on April 10th, 2008 filed in ToyotaComment now »
Toyota Motor Corp and General Motors Corp are recalling more than 662,000 vehicles sold in the United States due to defects in power windows, the two companies said on Wednesday.
Toyota will recall 539,500 Corolla and Matrix vehicles for the 2003 and 2004 model years, it said in a statement.
GM said it would recall 122,598 Pontiac Vibe hatchbacks, which share the same platform with Toyota’s Matrix and are built by GM in a joint venture with the Japanese automaker.
On vehicles equipped with power windows, the driver and front passenger glass bolts may loosen and cause the door glass to separate from the window regulator, Toyota said. Vehicles equipped with manual windows are not subject to the recall.
Toyota will notify vehicle owners by mail, beginning in late April. It advised owners to contact their local Toyota dealer for inspection and repairs.
Replacement of the driver and front passenger door glass bolts will be done at no charge, Toyota said.
Nissan May Cancel Quest Minivan, Infiniti QX56 SUV
Posted by Mehul Brahmbhatt on April 10th, 2008 filed in NissanComment now »
USA Today reports, “Nissan says it will stop making the Quest minivan and its full-size SUV, the Infiniti QX56,” instead using the factory that currently makes the vehicles to produce “light commercial vehicles.” Nissan “did not say when or where —or if — it will build next-generation versions of the minivan and big SUVS, which are slow sellers in declining market segments,” meaning production of the vehicles may cease altogether. Nissan spokeswoman Frederique Le Greves told reports, “When we get to the end of each vehicle’s cycle, we look at the market” and decide whether to offer new versions of the vehicles.
While Nissan insists it has not made a formal decision to remove the vehicles from its lineup, the move may be a prelude to doing just that. Kicking Tires comments, “Sounds to us like company speak that Nissan will not build new versions of the two. If it actually announced that fact today, though, it could impact sales of the 2009 models that will still be built and sold on new-car lots.”
The AP recently reported that Nissan suffered a 4-percent sales decline in the first quarter of 2008, and poor minivan and SUV sales were part of the reason for the drop. “Nissan’s truck and SUV sales plummeted 20 percent, with the Nissan Titan pickup down 45 percent for the month and the Nissan Armada SUV [the QX 56 is a modified Armada] off 43 percent.”
USA Today called the Quest “an also-ran in the shrinking minivan market, with sales down about 38% the first quarter vs. a year ago, according to Autodata. Its sales rank it eighth among nine vans currently in production, behind even the nearly invisible Mazda5 mini-minivan.” The QX45, meanwhile, “sells in such small numbers that it ranks 80th of 102 SUVs currently in production.”
Research the current models, and their competition, with U.S. News’ rankings and reviews of minivans and luxury large SUVs.
Hybrid Sales Continue To Climb In United States
Posted by Mehul Brahmbhatt on April 9th, 2008 filed in HybridsComment now »
The popularity of Hybrid vehicles in the United States continues to rise.
According to a report by the Green Car Congress in Washington, D.C., sales of hybrids in the U.S. rose 10 percent in March 2008 compared to 2007 sales in the same month.
The total sale of all hybrids in U.S last month was the second-highest ever, falling only behind the May 2007 total. The total pushed hybrid to a total sales share of 2.8 percent.
Toyota reported 20,635 sales of the Prius in March 2008, an increase of eight percent over March 2007 and the model’s second-best month’s results to date.
The Camry Hybrid sold 6,930
units, up 35 percent, and representing 17.1 per cent of all Camry sales.
The Highlander Hybrid sold 2,239 units, down 10 per cent from March 2007, and representing 20.7 per cent of all Highlanders sold.
The Lexus RX400h sold 1,570 units, up seven percent, and representing 20.3 percent of all RX models sold. The GS450h sold 65 units, down 64 percent, while the LS600h sold 113 units.
The Honda Civic Hybrid sold 3,769 units, up 34 percent and representing 11.5 per cent of all Civic sales. The Honda Accord Hybrid, now discontinued, sold 53 units, down 86 percent and representing 0.1 per cent of all Accord models sold.
Combined sales of the Ford Escape and Mercury Mariner hybrids dropped 20 percent to 2,008 units, representing 9.0 of all Escape and Mariner models sold.
The Nissan Altima Hybrid sold 832 units, an 80 percent increase and 2.6 percent of all Altima models sold.
Car sales get new models boost
Posted by Mehul Brahmbhatt on April 8th, 2008 filed in Car, NewsComment now »
The stock markets may have tanked, oil prices may have sky rocketed and interest rates may have gone up. But that has not stopped the common man from walking into a car dealership and driving home his set of dream wheels. Most car companies sold more cars in India during financial year 2007-08 than they have ever done before. And there’s one big reason for this: the onslaught of new models hitting Indian roads.
With more options on the table, customers have flocked to showrooms and the numbers tell the story. Maruti Suzuki rode strong with a 12% growth in sales. While small cars continued to dominate the company’s sales with a 13.4% growth, its brand new Maruti SX4 sedan helped it break the domination of Honda City in the mid-size sedan category.
And as a result, Honda, bound by capacity constraints for most part of the year, found it tough to keep up its sales during the year. But it was General Motors (GM) that recorded the highest growth in percentage terms. Again a new model the Chevrolet Spark coupled with some customer incentives and interesting variants garnered the numbers.
Next in line was Fiat, which saw a revival in sales thanks to its distribution tie-up with Tata Motors. But with just 3379 units sold over the year, the company still has a long way to go if it wants to make its presence felt. The newly launched diesel Palio with the 1.3 litre Multijet engine and the upcoming Linea and Grande Punto may just do the trick.
Another star attraction during the year was the Mahindra Renault Logan, an entry level sedan which gave the existing biggies a serious run for their money.
Perhaps the best validation of the fact that new model launches have driven sales comes from Tata Motors, which witnessed a decline in sales because it could not offer something new to its customer. During the year, company executives reiterated this lacuna, assuring customers that 2008 will be the year to watch out.
The refurbished portfolio includes the new Indica and the much-awaited Nano. Ford too had a similar story to tell. While there might be some sighs of relief in Dearborn, Michigan with the income of $2.3 billion from the sale of Jaguar and Land Rover, the falling sales in market like India must be a cause of worry.
Chevrolet Offers Cash Back on 2008 Impala, Avalanche
Posted by Mehul Brahmbhatt on April 3rd, 2008 filed in Car, Chevrolet, NewsComment now »
It’s a new month, and new April incentives are gradually rolling out. GM’s the first to post, and thus far the deals are slightly underwhelming.
Chevy is offering $1,500 cash back on its Impala sedan, a perennial best-seller despite its otherwise bland personality. The carmaker is also giving back $2,000 on the 2008 Avalanche, which Cars.com reviewer Kelsey Mays lauded in his review when the truck first hit the scene. Both cars also have 36-month, 2.9% financing offers.
Chevy is continuing its usual high-dollar truck incentives in April, offering between $1,500 and $3,250 cash back on its various Silverado trucks. Incentives expire April 30.
Car sales fall 23% as early Easter cuts selling
Posted by Mehul Brahmbhatt on April 3rd, 2008 filed in Car, NewsComment now »
Sales of new cars nose-dived last month by more than 23 percent from a year before, partly because early Easter holidays shortened the trading month.
Total new vehicle sales reported to the National Association of Automobile Manufacturers of SA (Naamsa) declined by 17.5 percent year on year to 47 778 units, with new car sales falling to 27 724 units.
Motor industry analyst Tony Twine, a director of Econometrix, said last month had two fewer trading days than in March 2007, or a 9 percent reduction in selling time.
He noted that growth in passenger vehicle sales had been in a downswing since October 2006, an early response to the interest rate hikes that began in June 2006. Car sales had fallen 30 percent in the 18 months since hitting an incredibly high point just before October 2006.
There was a huge dichotomy in the economy as downward pressure on consumers to prevent them spending contrasted with a ballooning business sector that was trying to sustain the fixed investment cycle.
Sales of new light commercial vehicles, bakkies and minibuses dropped to 16 616 units last month, a dip of 10.7 percent from March last year.
Medium truck sales rose by 2.6 percent to 1 321 units and heavy truck and bus sales leapt 9 percent to 2 117 units.
Nico Vermeulen, Naamsa’s executive director, said the data should be seen in context, because new vehicle sales in March last year represented one of the highest sales months on record and Easter holidays fell in March this year, reducing the number of selling days.
Jacques Brent, the vice-president for sales and market at the Ford Motor Company of Southern Africa, said sales last month were slightly up on February, but overall market sentiment remained unchanged with “tough times ahead”.
Brent said Ford had revised its forecast for total industry new vehicle sales downwards to 570 000 this year from 590 000.
Brand Pretorius, the chairman of McCarthy Motor Holdings, said the key reason for the much lower car sales was that both business and consumer confidence were under siege.
Current sales figures were not an accurate reflection of spontaneous demand, he added. They resulted from intense discounts, cash-back offers and subsidised interest rates that were stimulating the market artificially.
“We believe market demand is actually at a significantly lower level. Purely from a motor industry perspective, there is no need for a further interest rate increase, as demand has already slowed right down.”
Malcolm Gauld, the vice-president of sales and marketing at General Motors South Africa, said the significant cost push burden of a sudden deterioration in the rand meant pricing adjustments were unavoidable in the short term.
Ford sells Jaguar, Land Rover to India’s Tata Motors
Posted by Mehul Brahmbhatt on March 31st, 2008 filed in Car, Ford, Land RoverComment now »
Ford Motor Co. is selling its storied Jaguar and Land Rover brands to India’s Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7 billion — roughly a third of the price it paid for the two luxury brands.
The deal announced Wednesday will expand the Indian carmaker’s reach around the globe and give Jaguar and Land Rover badly needed capital to update and expand their product lines.
The agreement had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.
Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata’s statement said.
Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. But the Dearborn-based automaker has been struggling and wants to focus on its main brands.
Selling the companies at such a loss clearly shows buying them was a mistake for Ford, said Erich Merkle, vice president of auto industry forecasting for the consulting company IRN Inc. in Grand Rapids.
Jaguar never has made a profit under Ford, Merkle said.
“You have to cut your losses at some point. It’s been draining them of cash and resources,” Merkle said.
The net proceeds aren’t enough to rescue Ford’s finances, but the sale will allow the company to focus on its core Ford brands, Merkle said.
Tata should have the cash to save the brands and develop new products to better compete with luxury automakers such as BMW AG, Merkle said.
Tata said it expects no significant changes in the terms of employment for Jaguar and Land Rover’s 16,000 workers. It said the transfer of the brands would take place at the end of the second quarter.
The sale raises the Tata conglomerate’s profile on the world stage, said V.G. Ramakrishnan, the lead auto analyst with the consulting firm Frost and Sullivan India.
“This is another important landmark step of showcasing that Indian companies are arriving on the global landscape,” Ramakrishnan said. “Many people will see this deal as the future of things to come — you will see more companies out of India acquiring global companies. They want to be seen as major global players.”
In England, some workers were upbeat about the change, but others worried about the future.
“People seem to be generally happy about the buyout. Tata has a reputation as a business which is going places and has ambition to be a major market force,” said Lee Betteridge, a 34-year-old Jaguar toolmaker.
“I think Ford may have made a mistake as the companies are turning around and making profit, especially Land Rover,” he said.
“I am pleased I have kept my job. But for how long?” asked Paul Hoyte, 35, a Land Rover worker. “There has been a lot of cost-cutting under Ford. Will Tata cost-cut? Maybe I will lose my job in the future.”
Tata Motors built the first fully Indian-designed car. In contrast to the high prices that Jaguars and Land Rovers sell for, Tata recently announced plans to build a $2,500 car later this year. Jaguars in the U.S. have sticker prices starting around $50,000 and can cost nearly twice that amount.
Ford CEO Alan Mulally said in a statement that the British brands are leaving Ford in good shape.
“Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all.”
Tata said Ford will continue to supply engines, transmissions and other components for five to nine years. Ford also will continue to provide environmental and other technologies as well as engineering support.
Tata Chairman Ratan N. Tata said his company will try to build on the brands’ heritage, keeping their identities intact.
C. Ramakrishnan, Tata’s chief financial officer said the company had secured a 15-month, $3 billion bridge loan from a small syndicate of banks. He said Tata expects to replace that financing with a mix of equity and debt during the next several months, including “unlocking value” from some of its investments in subsidiaries.
He acknowledged Jaguar’s financial difficulties but said the brand is turning around and he expects it to be profitable within two years.
“Land Rover is a highly profitable company … and Jaguar is well on its way,” he said in a conference call with reporters Wednesday.
Ramakrishnan said the brands’ existing management will continue.
Tata Motors is part of Tata Group, India’s oldest and largest conglomerate. The family business is owned mostly by Tata-funded charitable trusts. A substantial portion of the group’s income is channeled into various philanthropies that have helped build some of the country’s finest institutions, including India’s first cancer hospital.
Among Tata’s holdings are steel makers and a consulting service that does software engineering and other work for western firms.
Roger Maddison, an official with Unite, Jaguar and Land Rover’s main labor union, said the deal is good news for the automakers’ employees as well as those who work for parts suppliers.
“Unite has secured written guarantees for all five UK plants on staffing levels, employee terms and conditions, including pensions, and sourcing agreements. The sale ensures our members futures and we look forward to working with Tata,” Maddison said in a statement.
Mulally has said the company would invest the proceeds from the sale in quality and product development at Ford.
Ford named Tata as the preferred bidder for the British automakers in January, essentially dismissing two other bids.
Cash-hungry Ford, which lost $12.6 billion in 2006 and $2.7 billion last year, has been looking to sell Jaguar and Land Rover for months.
It has mortgaged assets to continue operations and expects to burn up $12 billion to $14 billion until 2009, when it plans to return to sustained profitability.
Jaguar and Land Rover are strained by unfavorable exchange rates and high production costs in Britain.
Ford had hoped to turn Jaguar, which was founded in 1922, into a high-volume brand that could compete with BMW and Mercedes-Benz. But its entry-level X-Type sedan, introduced in 2001 to lure younger buyers, sold poorly and was slammed for its conservative styling. Jaguar’s U.S. sales were down 24 percent last year.
Land Rover, which was founded in 1948 — the year after India gained its independence from Britain — has fared better thanks to popular products such as the Range Rover Sport and LR2. Land Rover’s U.S. sales were up 4 percent last year. But unlike Jaguar, which has improved its quality rankings under Ford, Land Rover placed last in J.D. Power and Associates’ rankings of initial quality and dependability in 2007. The rankings measure problems per vehicle after 90 days and again after three years of ownership.
Ford shares edged up a penny to $6.01 in morning trading Wednesday. They have traded in a 52-week range of $4.95 to $9.70.