The Automotive News Week in Review - August 28, 2009

Cash for Clunkers – By the Numbers

The government-sponsored “Cash for Clunkers” program, officially known as the CARS initiative, ended on Monday. Through CARS, vehicle buyers were eligible to receive a rebate of up to $4,500 on the purchase of a new car or truck, provided that they traded in an older clunker and qualified for certain fuel economy stipulations and other requirements.

The program was met with an incredible response from the public. Over 690,000 applications were made for the rebate vouchers, for a total of $2.878 billion dollars in funds paid out to automobile shoppers. The vast majority of the vehicles traded in were pickup trucks and SUV’s, and the average fuel economy of all cars and trucks taken in by Cash for Clunkers was 15.8 miles per gallon. In contrast, almost 60% of the new vehicles driven off the lot under the plan were cars with an average fuel economy that was 58% better than the cast-offs.

California residents filed the biggest chunk of the Cash for Clunkers applications, while Toyota saw the largest slice of the sales pie – 19.4 percent. General Motors came in second with 17.6 percent of sales, with fellow domestic automaker Ford close behind at 14.4 percent. Chrysler managed only a distant 6.6 percent of the new vehicle total.

Honda Announces Plan for EV by 2015

Honda has jumped on the electric vehicle bandwagon by stating their goal of selling a plug-in hybrid vehicle in the United States by the year 2015. Spurred on by programs from Ford and General Motors, both of which plan to hit the market with this type of automobile much more quickly, Honda would appear to be removing the focus from their hydrogen-powered FCX Clarity vehicle. This is perhaps not surprising, given the lack of inroads that a hydrogen infrastructure has been able to make across North America when compared against those planned for electric cars.

Ford’s EV offerings look to be in the form of an electric Transit Connect compact van and Fusion sedan, while General Motors is relying on the Chevrolet Volt and perhaps a Cadillac compact sedan to lead their alternative fuel charge. Toyota, Chrysler and Nissan are also planning to roll out a fleet of electric vehicles within a similar timeframe.

Chrysler and Nissan Dissolve Partnership

Chrysler has made it known that it will no longer participate in a technology-sharing program with Japanese brand Nissan, as part of their ongoing restructuring under Fiat. Chrysler had intended to benefit from Nissan’s expertise in small car manufacturing in order to facilitate their expansion into a more global market that favors this type of vehicle. Chrysler was also set to re-badge the Nissan Versa for sale in South America. In exchange for Nissan’s generosity, the company was to receive a manufacturing partner for the next generation of the full-size Nissan Titan pickup truck, a nameplate which has struggled to keep up in sales when compared to its domestic competition.

Publicly, while Chrysler and Nissan have jointly stated that the decision to terminate their partnership was made after a study of the viability of each project, within the industry it is clear that Fiat does not intend to encourage the small car initiatives of a competitor. Instead, it appears as though Chrysler will become a conduit for the Italian car company finding a North American foothold for its European market vehicles.

Guns and Steel Collide at HUMMER Dealership

In Missouri, a Hummer dealer was forced to get creative this week in order to make the best possible use of the empty space in his dealership following the sales slowdown that has hit the brand hard. Instead of Hummer H2’s littering the showroom floor, a sizable section has been converted into a gun display.

Called Adventure Shooting Sports, the new venture has lined the walls with gun racks and cases, and offers a number of different self-defense courses in addition to selling hand guns, long guns and automatic weapons. The new business is somewhat tied in with Adventure Accessories, which provides customization services at a discount for current Hummer owners. General Motors has stated that any alteration of dealership space associated with the company must be cleared with headquarters beforehand, and that it was looking into the Hummers and guns combination.

Honda Accord Leads List of Stolen Rides

The 1994 Honda Accord was the most stolen vehicle in 2008, according to a report from the National Insurance Crime Bureau that was released this week. The family sedan may be almost 15 years old, but it still packs an irresistible appeal for car thieves, suggesting a strong value on the black market parts network. Honda also picked up the number 2 spot on the list with the 1995 Civic. Rounding out the top ten was the 1989 Toyota Camry, the 1997 Ford F-150, the 2004 Dodge Ram, the 2000 Dodge Caravan, the 1996 Jeep Grand Cherokee, the 1994 Acura Integra, the 1999 Ford Taurus and the 2002 Ford Explorer.

It would appear that falling vehicle sales have also hit thieves in the pocketbook as well. The FBI has stated that theft of automobiles in general was down more than 10% when compared to 2007 numbers, the fifth year in a row that car thefts have decreased in the United States. Fewer cars were stolen in 2008 than in any other year in the previous 20 year period.

Saab Releases Details of new 9-5

Saab has finally brought forth some information regarding the next generation 9-5 sedan. Even though the company is no longer officially associated with General Motors, the car will make use of the same Epsilon II platform used by the Buick LaCrosse. Underneath the hood, it will feature a range of turbocharged 4 and 6-cylinder engines, including a diesel option. Power will range up to 300 ponies, and all-wheel drive will be available across several trim levels. Inside, the vehicle has also been improved, with the addition of a heads-up display, three zones of climate control and a keyless starting system.