California Autos Examiner

Sunday, December 18, 2005

Automotive News Headlines

Here are some stories that will be making headlines this week.

A Chinese firm, Wanxiang Group, is looking to acquire some of Delphi’s assets in the United States.

Chrysler dealers are pushing back against ordering slow selling models from Chrysler’s sales bank. Some automakers have been known to have car transporters show up at dealerships with cars that weren’t ordered. This doesn’t appear to be the case here, but no manufacturer likes to feel the cold shoulder from their dealers.

Ford says that they won’t pull any last minute tricks to prevent Chevrolet from winning the US sales title. This has to be a blow to Ford’s pride, but probably a wise move financially.

GM will value price their new full sized SUV’s when they are released next year. So far value pricing hasn’t connected with consumers in a big way, but I’m going to back GM on this. I dream of the day when the sticker price accurately reflects the transaction price. There are few consumer products left with the amount of “horse trading” that goes on at car dealerships.

The Isuzu Ascender will soon be descending into the annals of history when GM pulls the plug on the model when the Oklahoma City plant closes. What the heck happened to Isuzu? The Rodeo was a stylish ride in its day, even if its quality left a bit to be desired. Remember when Isuzu rebadged the Rodeo and Trooper for Honda and Acura? Wow! Now they only have the rebadged i-series truck. Will they bring the D-Max derived MU-7 to the USA? [Update: The five seat Ascender will still be sold.]

Jaguar is following Mercedes’ lead and yanking free maintenance off the standard features list on its 2006 models. I think this is a mistake! How much does it really cost them verses the benefit of getting the customer used to bringing their car into the dealership for service? Usually in the first 4 years/50,000 miles you have a few oil changes and one major service. BMW currently has the best program which covers everything down to the wiper blades. Granted, many well heeled buyers won’t bat on eyelash over this change but I think it’s the wrong direction.

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