(Source: Wall Street Journal)

Last summer, when gas cost $4 a gallon, buyers snapped up small cars so fast that dealers couldn’t keep them in stock. Now, with gas prices half that level, almost 500,000 fuel-thrifty models are piled up unsold around the country.

The turnabout comes at a bad time for the struggling U.S. car industry, which has revamped factories and shifted product plans to produce more small cars in coming years. The moves are prompted by coming stricter federal fuel-economy standards and the Obama administration’s car-bailout plan, which encourages auto makers to boost their vehicles’ mileage.

 Practically every small car in the market is stacked up at dealerships. At the end of February,Honda Motor Co. had 22,191 Fits on dealer lots — enough to last 125 days at the current sales rate, according to Autodata Corp. In July, it had a nine-day supply, while the industry generally considers a 55- to 60-day supply healthy.For other models the supply situation is even worse. Toyota Motor Corp. has enough Yaris subcompacts to last 175 days. Chrysler LLC has a 205-day supply of the Dodge Caliber. And Chevrolet dealers have 427 days’ worth of Aveo subcompacts. At the current sales rate, General Motors Corp. could stop making the Aveo and it wouldn’t run out until May 24, 2010.

“I don’t think Americans really like small cars,” said Beau Boeckmann, whose family’s Galpin Ford in southern California is the country’s largest Ford dealer. “They drive them when they think they have to, when gas prices are high. But we’re big people and we like big cars.”

The logjam of small cars is caused in part by the recession, which has sapped sales of all types of vehicles. But it also underscores how badly gasoline prices have whipsawed the industry. A year ago, car companies rushed to react when Americans practically stopped buying large vehicles and flocked to hybrids and small cars.

Click here to read the entire article (Subscription Reqd.  Free Registration available).

Government’s Auto Task Force is hiring, looking for Wall Street experience

Curious what it takes to be a member of the recently-created Auto Task Force? Thanks to an email sent out by Harry J. Wilson, a newly-hired Task Force worker, there’s no need to wonder. Some knowledge of the auto industry would reportedly be helpful, though prospective applicants and their family members cannot currently own any stock in the Detroit automakers or serve on any of the D-3’s boards of directors. Would-be applicants would also need to be “sufficiently intellectually and professionally nimble,” whatever that means, and have 8-12 years of experience on Wall Street.

According the Detroit News, the source of the Autoblog article,   “Harry J. Wilson, a new member of the task force, recently sent an e-mail that circulated on Wall Street, seeking applicants for up to four jobs on the autos team. The task force’s findings will help chart the government’s role in the future of the U.S. auto industry.  That message said the team was looking for up to two hires in each of two job categories: principal/vice president level and associate/analyst level. Candidates should have eight to 12 years experience and be “sufficiently intellectually and professionally nimble.” The analyst would have “the same skills,” with less experience.

“Our team is quite small,” said Wilson, formerly of Silver Point Capital and the Blackstone Group, in the March 13 e-mail obtained by The Detroit News. “The work is incredibly intense. The amount of work is massive, the timelines are tight and the level of focus is also very high.”

Click here to read the entire article. 

(Source: Autoblog; Photo: emrank@Flickr)

(Source: Jalopnik)

Pre-orders are officially being taken today for the Tata Nano in India at an MSRP of 100,000 rupees (just under $2,000). That makes the Nano officially the cheapest automobile in the world.

The on-road price will be a little bit higher, probably around $2,400, once you factor in excise duty, education fees and road tax, along with transportation cost, local taxes, insurance and registration fees and “a lifetime parking fee” (applicable in some locations).

(Source:  Baltimore Sun/Investigative Voice via Jalopnik)

First Daughter and current South Baltimore teacher Jenna Bush‘s Secret Service detail vehicle was towed away this week because of unpaid parking tickets… and karma.

 According to Investigative Voice, the Baltimore Parking Authority towed one of the vehicles in Jenna Bush‘s Secret Service detail because of several unpaid parking tickets. Click here to read the rest.

TransportGooru’s musings:  I wonder if the tax payers have to bailout another Bush mess?

(Source: Autoblog) 

Last week, we told you how despite the downturn, Daimler is upping its investment in the state of Michigan, coming to terms with the city of Ann Arbor to build a new hybrid and electric R&D facility. Now, Automotive News is reporting that the automaker is expected to actually expand its Vance, Alabama production plant.

If the rumors are true, the Mercedes-Benz plant (which currently builds GL, M, and R class vehicles) will benefit from a $290 million investment that is to begin within 60 days. The news evidently leaked out after company officials contacted the Tuscaloosa County Industrial Development Authority about property and sales tax breaks (which it apparently received).

Click here to read the entire article.

(Source: BBC)

He has worked as a chauffeur for top businessmen in Pune and Mumbai – ferrying them around the country, to important meetings in big, fancy and expensive cars.

He has sat behind the wheels of dozens of cars, from an old British Morris to the Land Rover he’s driving now.  It’s been an honest, hardworking life – albeit austere.

The salary of a driver in India can only afford you so much. Mr Pandurang has worked hard to support his family – putting his children in English language schools, so that they would get opportunities he never had.

He’s never been the kind of man to want anything for himself, working night and day to feed his family instead. But throughout his life, he has had one dream: to own a car of his own.

Last January, Mr Pandurang and his family watched in awe and excitement as the unveiling of the world’s cheapest car was broadcast on television screens across India.

They were sitting in the living room of their modest flat when they first saw Ratan Tata, the boss of the Tata Group, announce on national television that the Nano would be sold for 100,000 Indian rupees – around £2,000 at the current exchange rate.

“I was shocked” says Rakhee, Mr Pandurang’s 24 year old daughter. “It was like God had answered our prayers – we could finally help to make dad’s dream come true.”

(Source:  Autobloggreen)

Click above for a high-res gallery of the smart fortwo

Question: Should you only pay half the price for a parking spot if your car only takes up half as much room as other vehicles? According to Central Parking System, Inc., which owns more than 350 parking garages in Manhattan, Brooklyn, Bronx, Queens and New Jersey, the answer is yes. CPS has partnered up with smart USA to offer drivers of the fortwo half-price parking in all of its garages.

Click here to read more. 

(Source: USA Today)

Air travelers stand to be the beneficiaries of “ridiculously low” airfares as fare wars break out among U.S. airlines desperate to fill seats amid sagging demand. Even those hoping to travel during the peak-period summer months stand to benefit, according to the Los Angeles Times. The paper writes that “fares for summer trips are often among the highest of the year and start rising in the spring, but not this year. With business travel plummeting, airlines are pulling back and offering some of the lowest-priced plane tickets in recent memory.”

(Source: Fast Lane, The offical blog of the U.S. Sec. of Transportation)

March 19, 2009