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Wednesday, Feb. 16, 2011 RSSSEND TO A FRIENDPRINT
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Top 5 Stories
More Captives, Banks Approving Credit-Challenged Customers
Analysis: Carmakers Push Back on Efficiency Aims
J.D. Power Sees World Auto Market Up 6 pct in 2011
GM Recalling Cadillac CTS Over Vehicle Handling
'Gorilla Marketing' Still Effective in Internet Age
Top 5 Stories
More Captives, Banks Approving Credit-Challenged Customers

BANDON, Ore. — CNW Research discovered that both captives and major banks are tapping into pent-up demand of subprime new-vehicle buyers. Though Art Spinella, of CNW, explained that in comparison to levels prior to the recession, these approvals are still low, they have apparently climbed by almost 61 percent in the opening days of February versus a year ago. This includes shoppers below 670 FICO. "The increases are based on a small number a year ago and are nowhere near the subprime heyday," Spinella highlighted. The number of younger buyers under 30 entering the market has also climbed for the last four months and is now at about 18 percent. A year ago this figure was 16 percent.
Source: SubPrime Auto Finance News

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Analysis: Carmakers Push Back on Efficiency Aims

While industry touts cleaner burning engines and is more serious about batteries for hybrids and electric plug-ins, car companies are seeking to slow or soften any requirement to nearly double efficiency by 2025 to 60 miles per gallon. "Fuel economy regulations are by far the most expensive regulations that automakers face," Shane Karr, vice president of government affairs for the Alliance of Automobile Manufacturers, said in a January letter to House Oversight Committee Chairman Darrell Issa. Issa has already solicited industry views on regulatory overreach, while Energy and Commerce Chairman Fred Upton proposed legislation challenging the Environmental Protection Agency's regulation of tailpipe emissions, an issue automakers unsuccessfully litigated in the past. The move by Upton, from Michigan, is viewed as an effort to neutralize the influence of California, a trailblazer in environmental policy, on federal tailpipe emissions policy.
Source: Reuters

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J.D. Power Sees World Auto Market Up 6 pct in 2011

DETROIT - Global auto sales will increase 6 percent in 2011 to a record 76.5 million new light vehicles, J.D. Power and Associates said on Tuesday. In 2010, sales reached a record 72 million, beating the previous mark of 70 million set in 2007 before a global recession cut into auto sales, California-based J.D. Power said. "Overall growth in the world economy has been supporting further recovery in auto sales," said John Humphrey, senior vice president of automotive operations at J.D. Power in a statement. "We're seeing signals of stability and increased consumer demand for new vehicles as economic optimism increases." J.D. Power director of global forecasting Jeff Schuster said the cooling of auto sales growth in the emerging markets in 2011 is the major reason global growth is only 6 percent this year, compared with forecast growth of 11 percent in 2012, when Western Europe and North America are expected to rebound.
Source: Reuters

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GM Recalling Cadillac CTS Over Vehicle Handling

WASHINGTON -- General Motors says it is recalling more than 50,000 Cadillac CTS vehicles worldwide to fix a loose joint that could cause a rear wheel to become unstable, making it hard for drivers to steer. GM says the recall affects more than 44,000 CTS vehicles in the United States from the 2009 and 2010 model years. The remaining vehicles were sold in China and around the globe. The auto company said nuts in the rear suspension could become loose, causing a sudden change in the vehicle's handling or making the driver lose control of the vehicle.
Source: The Associated Press

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'Gorilla Marketing' Still Effective in Internet Age

SAN FRANCISCO – The Internet Age has not let any air out of the inflatable sign business. Inflatable signs shaped like giant tires and the ever-present gargantuan gorilla (were) hot items on the show floor of the National Automobile Dealers Assn. convention here. “It’s a little bit hokey,” admits Dave Bare of Harris Kia in Nanaimo, BC, Canada. “But that’s not necessarily a bad thing.” Consumers may not be ready to buy a car when they see an inflatable on a dealership’s front lawn. But when they decide to move, they likely will remember a store where they saw a giant gorilla. Why, in an age when Internet-savvy car buyers arrive in showrooms with more product knowledge than some sales reps, is such a primitive technique so effective? “Because it’s stupid; that would be the first answer,” says Michael Bernacchi, a marketing professor at Detroit’s University of Detroit-Mercy. “Why does Go Daddy continue to do ridiculous Super Bowl ads? They get buzz, discussion. It gets a laugh; gets you connected.”
Source: Ward's Dealer

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Quotable
 
"Fuel economy regulations are by far the most expensive regulations that automakers face."

    -- Shane Karr, vice president of government affairs for the Alliance of Automobile Manufacturers, in a January letter to House Oversight Committee Chairman Darrell Issa, Reuters, Feb. 15

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