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Mazda Motor Corp’s new design chief, HIkuo Maeda, is known by the nickname “Speedy,” because of his notorious lead food, both on and off the race course. In fact, reporters from the Automotive News Japan offices believe he might be the only standing auto executive to have had his driver’s license revoked more than once. It is this notoriety as a speed demon that makes Maeda the logical guardian of Mazda’s “zoom-zoom” branding.

Of course, Maeda, who took over the design position almost a year ago, has other credits making him seem a natural heir to the brand heritage. For example, he’s the man behind the shape of the Mazda RX-8 sports car – and he’s the son of the man who designed the original Mazda RX-7. That’s a pretty impressive auto design lineage.

“I was a real car lover long before I started designing cars,” Maeda told the press, in an interview at Mazda’s headquarters in Hiroshima, Japan. He continued, “”There are lots of car enthusiasts at Mazda, but I think I’m at the top.”

And what’s his top priority? Keeping Mazda cars zoom-zooming is definitely near the peak. He races one of the company’s MX-5 Miatas, when he can find the time, and in his private garage, a Lotus Elise sits in wait. Even more, he says he wants to bring back the RX-7.

“I do have a strong yearning to revive the RX-7 during my tenure,” he said. “But in order for that to happen, we need the U.S. economy to come back, first and foremost.”

Meanwhile, Maeda is concentrating on a less racy Mazda, the Mazda5 minivan with wavy side paneling (meant to invoke fluidity). It may not be a sports car, but it’s inspired, in part, by a series of concept cars known as the Nagare, which he inhereited from his predecessor Laurens van den Acker, originally of Ford Motor Company. Of the Nagare, which means “flow” in Japanese, Maeda says, “”It is like a Japanese garden. It encapsulates nature in a restricted area. It re-creates nature in something man-made.”

Filed under: Mazda by Mel
Tags: « design - executives - Mazda »
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Automotive News is reporting today that the latest Manheim Used Vehicle Value Index has been released, and is indicating that a tight supply of used vehicles and strong sales of used cars and trucks have resulted in a continued uptick, carried over from last month.

Specifically, the index stood at 118.1 in February, 2010, up from 117.6 in January, and 105.5 from February last year.

Tom Webb, Manheim’s chief economist, said that fewer sales of new cars and the trade-ins associated with them have helped contain used-car inventories. At the same time that new car sales have continued to be low, independent auto dealers sold 561,431 used vehicles in February,2010, an increase of nearly nine percent over February, 2009, web added, citing data from CNW Marketing Research.

In addition to independent sales, there were 584,982 used vehicles sold by franchised dealers last month, though this number is roughly three percent lower than it was in February, 2009.

According to Webb, the biggest threat to used-vehicle values in the immediate future is the increase in new-car incentives being offered by various automakers (likely a strategy to counter the incentives Toyota is offering). Such incentives typically reduce used-car values, especially late models.

“A lot depends on how aggressive the incentives get; 0 percent financing — it will depend on how far down the credit scale” automakers are willing to go, Webb told the press. He also said that Toyota’s residual values for recalled models have weakened as compared to the rest of the market, which isn’t surprising considering the publicity attached to the recall, and the sales suspension. He added, however, that Toyota’s prices were underperforming compared with the company’s history, which was due to lease programs in place before the recall, and because of lenders reducing loan amounts to stay withing strict guidebook predictions.

The practical upshot of all this, says web, is that, “We expect part of the recent decline will be reversed.”

The Manheim index began in January 1995 at 100 and is adjusted for model mix, mileage and time of year.

Filed under: Buying Trends, Used Cars by Mel
Tags: « Manheim index - Used Cars »
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Automotive News reported this morning that Fiat has developed a new engine that may be the world’s greenest fuel engine.

The two-cylinder Twin-Air was unveiled earlier this year at the Geneva Auto Show, and will be used on 500 units of the automaker’s signature 500 minicar beginning in September. The choice to equip their trademark car with a new, superclean fuel engine is part of the company’s plan to increase emission reductions and remain one of the most eco-friendly carmakers in Europe, according to a statement made by brand head Lorenzo Sistino on Tuesday.

Sistino elaborated, “It has taken the car sector 15 years to cut CO2 emissions by 20 percent. With the new Twin-Air, the world’s most ecological fuel engine, Fiat will cut CO2 by a (further) 30 percent in one stroke.”

The Twin-Air uses improved technology to offer four-cylinder performance from a two-cylinder engine, and is just one more facet of the Italian auto company’s efforts to build and sell small, efficient, green cars that retain their brand’s style and flair.

“Twin-Air is another step ahead for eco-technology and can represent a giant leap for the environment,” Sistino said.

Filed under: Fiat, Going Green by Mel
Tags: « Fiat - fuel efficiency - Green Tech »
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Automotive News is reporting this morning that while dealers representing other brands are entering into arbitration to begin working again, Mitsubishi Motors North America is hoping to recruit 25 new dealers this year. The company currently has a roster of 424 dealers, down from 575 in 2005.

Mitsubishi’s director of franchise development, Joe Delello, explained to reporters, “We’re looking to add dealers in targeted markets.” Such markets include primarily major metropolitan areas, such as Baltimore, Los Angeles, New York City, and Washingong, D.C. Delello added, “These are open points where we believe there will be sufficient units in operation for service business. These are not buy-sells.”

As with most automakers, Mitsubishi has seen diminishing returns over the past few years, with sales falling from 261,254 in 1999 to 53,986 last year. The company has spent the last three years regrouping, devising new-product strategies like focusing on smaller, more fuel-efficient vehicles.

Recently, at the National Automobile Dealers Association convention in Orlando, FL, Mitsubishi representatives networked with potential dealers, and also displayed the new, small, i-Miev electric car, which will be coming to the United States along with a gasoline-powered twin.

Chicago-area Mitsubishi dealer, and chairman of the company’s National Dealer Advisory Board, Scott Grove told Automotive News reporters that he believes the brand needs to put more stores in markets where dealerships have recently closed. He also said that the factory is exercising caution when it comes to recruiting new dealers, however.

“We are not in boom growth,” said Grove. “We will make better decisions on where we approve points.”

Filed under: Economy, Mitsubishi by Mel
Tags: « car dealers - Economy - Mitsubishi »
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Subaru was one of the few auto makers to show a sales increase for 2009 – theirs rose roughly 15% while industry-wide there was a 21% decrease in sales. This year, Subaru dealers are trying hard to match that upward trend, and already, they’re seeing a massive increase in sales of the 2010 Legacy and Outback models, since their respective launches.

According to a report posted under the “rumors” section of Automobile Magazine’s blog, however, there’s a possibility that we may see a shortage of Subarus by Spring.

Here’s the deal: Both the Legacy and the Outback are built in Subaru’s plant in Lafayette, Indiana, a plant that has its employees working overtime and on weekends in order to keep up with an increasing demand for all-wheel-drive vehicles. As of February 24th, the supply for those two models was enough for about ten days, and when reporters spoke with the company, COO Tom Doll said that the company’s “biggest challenge” was to keep dealers well stocked, so that they could continue to increase sales.

When asked for confirmation of the actual number of Outbacks and Legacies in stock, Phil Porter, chairman of the Subaru National Dealer Advisory Board told representatives of industry authority Automotive News that it was impossible to say, “…because we don’t have excess inventory.”

Speculation abounds, with auto-industry bloggers all offering their opinions on the actual availability of these two Subaru models. (As the driver of a ten-year-old Forester myself, I can attest to this: Subarus are absolutely worth the money, and they live up to the hype).

So what do we know for sure? Here’s a rundown:

• Current inventory of other Subaru models is at a 30-day supply, which is half the industry standard.
• The Lafayette, IN, plant is being modified for greater production capability this April.
• In January, 2010, Subaru had already realized sales that were 28% greater than January of 2009.
• Mr. Porter believes the plant refit and resulting production increase will allow the Japanese automaker to surpass last year’s record.

One other thing we know for sure: Subaru is one company to watch over the coming months.

Filed under: Buying Trends, Subaru by Mel
Tags: « Outback - rumors - sales - Subaru »
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