GM delays truck overhaul

General Motors Corp. has indefinitely put off plans to re-engineer a next generation of full-size pickups and SUVs amid plummeting sales of large trucks, the automaker said Wednesday.

Instead of overhauling big trucks like the Chevrolet Silverado pickup and GMC Yukon SUV in a few years, GM will save money and resources by improving on the current models launched in 2007. Delaying a remodel of the trucks also gives GM time to factor in the effects of new federal fuel economy mandates.

GM could save $250 million to $300 million by putting off that makeover for just one year, said analyst Jim Hall of 2953 Analytics LLP in Birmingham.

The next generation of full-size trucks was scheduled to go into production in 2013, according to GM’s labor contract with the United Auto Workers.

“We’re going to focus on improving the current trucks until we see where the market goes,” GM spokesman Tom Wilkinson said.

Sales of GM’s full-size pickups were down 24 percent last month compared with a year ago as consumers grappled with the reality of $4-per-gallon gasoline. Large SUV sales fell 51 percent for the same time period.

Industrywide, passenger cars outsold light trucks in the United States this spring for the first time in two decades, a trend that’s expected to stick around if not accelerate.

In response to the dramatic shift, GM last month announced plans to idle four North American truck factories as part of sweeping restructuring moves designed to move away from a traditionally truck-heavy portfolio. The automaker also is adding shifts at two car plants.

Move to aid development

The move to delay a major truck redesign likely frees up money and engineering talent that cash-strapped GM can spend to develop more fuel-efficient vehicles such as cars and crossovers. A total redesign typically takes four years.

GM has said it needs more and better passenger cars for the U.S. market. But money to develop new vehicles is tight. The automaker, which hasn’t turned a full-year profit since 2004, is burning cash, losing $3.3 billion in this year’s first quarter alone.

Full-size trucks, because they come in so many configurations, are typically the most costly and complex vehicles to redesign.

Hall said the automaker could use its resources to build vehicles that are in greater demand increasingly by fuel-conscious consumers. GM is looking at everything from battery powered cars to high-tech gasoline engines to deliver more miles per gallon.

“By delaying, you’re making more people available and now to these people will be working on more strategic programs,” he said.

GM, he said, also likely wants to hold off on new trucks until next spring when requirements of new corporate average fuel economy, or CAFE, mandates are finalized.

“This is being done to better use their resources in this time between now and CAFE,” Hall said.

Competition is tough

GM faces stiff competition in the shrinking pickup segment. Ford Motor Co. and Chrysler LLC plan to launch new versions of the Ford F-150 and Dodge Ram pickups this year.

GM’s Wilkinson said the automaker is confident that the existing trucks can compete with other companies’ new models. Even without a total makeover of the platform, GM can change anything from the trucks’ powertrains to the interiors.

“Our intention is to remain a leader in the segment,” Wilkinson said.

Toyota Announces Prices For 2009 Tacoma Pickup Truck

Toyota Motor Sales, U.S.A., Inc., announced manufacturer’s suggested retail prices (MSRP) today for 2009 Tacoma pickup trucks, which range from $15,170 to $27,075.

Tacoma greatly enhances its overall value with the addition of several new features. All Tacoma models will now feature Vehicle Stability Control (VSC), and Traction Control (TRAC) as standard equipment, making Tacoma the latest model to feature Toyota’s STAR Safety system consisting of Anti-Lock Brakes, Electronic Brake Force Distribution, Brake Assist, VSC, and TRAC. Additional new standard features include an automatic limited slip differential, roll-sensing curtain and seat side airbags, and front active headrests.

Exterior styling has been freshened with an argent painted grille, LED taillamps and four new colors that include Magnetic Gray, Barcelona Red, Pyrite, and Timberland. Smoked headlamp trim is featured on X-Runner and models with the optional TRD Offroad and TRD Sport packages.

Inside, Tacoma features a new and enhanced standard equipment audio system. All Tacoma audio head units feature AM/FM radio, an auxiliary audio input, an MP3-capable CD player, and satellite radio capability. Standard audio on Access and Double Cab models have been upgraded to two ceiling mounted speakers for a total of six and will be satellite radio ready. An optional JBL six-disc CD changer with satellite radio that includes a three-month free subscription to XM Satellite Radio and Bluetooth™ is available for Tacoma Double Cab models.

Additional interior enhancements include a new front door trim panel on all Tacoma models. Access Cab models receive power windows and door locks as standard equipment and a new rear seat design that features a center storage area and under seat storage. Other enhancements include a stylish new seat fabric pattern for models equipped with the optional SR5 package, and all Regular Cab models are equipped with bench seats. A new backup monitor is offered as an option on Access and Double Cab models.

2009 Tacoma 4×2 models carry a base MSRP that ranges from $15,170 for the Regular Cab with a four cylinder engine and five-speed manual transmission to $25,285 for the X-Runner Access Cab V6 with a six-speed manual transmission. For PreRunner models, base MSRP ranges from $16,055 for the Regular Cab with a four cylinder engine and five-speed manual transmission to $24,000 for the Double Cab Long Bed V6 with 5-speed automatic transmission.

The base MSRP for Tacoma 4×4 models range from $19,130 for the Regular Cab with a four-cylinder engine and five-speed manual transmission to $27,075 for the Double Cab Long Bed V6 with a five-speed automatic transmission. The overall average MSRP for all Tacoma models increases $1,104, or 5.1 percent.

The 2009 Tacoma is available now at Toyota dealerships.

2009 Suzuki Equator Pickup truck

At the Chicago Auto Show, American Suzuki Motor Corp. introduced the 2009 Suzuki Equator, which is a midsize pickup destined to complete Suzuki’s range of all-terrain vehicles, including motorbikes and ATVs. The Suzuki Equator was developed with Nissan North America (will also be produced at the Nissan plant in Smyrna, Tennesse) and it’s based on the Nissan Frontier.

The engine offer includes a 2.5-liter DOHC four-cylinder engine developing 152 hp and 171 lb-ft of torque or a 4.0-liter V6 DOHC engine producing 261 hp with 281 lb-ft of torque. Also, customers will have several transmission choices, including a five-speed electronically controlled automatic transmission (I4 and V6), five-speed manual transmission (I4) or six-speed manual transmission (V6).

The Suzuki Equator will be offered in two styles, Extended Cab and Crew Cab which offer a high-utility bed with spray-on bedliner and an extensive tie-down system with adjustable tracks. The truck also offers a wide range of attachment points for securing cargo (including motorcycles or ATVs) plus a full range of accessories including bed dividers, sliding cargo trays and modular storage units. Crew Cab models will offer an available roof rack.

Peterbilt releases ComfortClass for 63-in. sleepers

Peterbilt Motors Co. has rolled out its ComfortClass system in a 63-in. sleeper configuration, available for order on Class 8 vehicles that are equipped with a 63-in. Unibilt sleeper.

According to Peterbilt, the ComfortClass system provides a temperature-controlled environment and the capacity to run electronic devices in the sleeper without having to run the engine for up to 10 hours.

“The ComfortClass system helps ensure operator comfort by maintaining the desired temperature within the sleeper while the truck is not in operation,” said Landon Sproull, Peterbilt chief engineer. “It provides climate control performance as effectively as traditional systems, but uses much less energy to do so. It will provide up to 10 hours of HVAC, even with outside temperatures of up to 95 degrees, ideal for the typical off-duty period of an over-the-road operator.”

The 63-in. ComfortClass follows the introduction of the 70-in. sleeper ComfortClass last year, and both sizes will be available on Peterbilt Models 365, 367, 384, 386, 388, and 389, the company said.

Peterbilt Dump Truck Financing

There are many alternatives in obtaining startup Peterbilt dump truck financing. The first logical place to investigate your startup financing is at your local bank. This may be a pleasurable experience if you have many contacts at your local bank but most people usually don’t have these types of connections. The startup business must have at least high 600s on their credit scores and be prepared to go through a lengthly paper process. Prior year tax returns may be required, current personal financial statments needed and various other lending requests. The business startup is considered a high risk factor to the bank and must adhere to higher lending standards.

Most banks and financial institutions offer loan and/or lease programs. The difference is that the loan program transfers title at the end of the payment obligation, whereas the leasing component offers a rent type environment during the course of the lease with a buy out option at the end of the lease period to take title. Usually, the monies required upfront to acquire a loan are higher and eliminates many candidates. The Leasing arena requires anywhere from usually first and last payment to approximately 20% down on the cost of the Peterbilt dump truck depending on the type of industry requested.

On the startup loan and lease programs for a Peterbilt dump truck applicant, the applicant must investigate whether the bank and/or financial institution considers this a qualified asset which they will lend on. Most lenders like this type of asset but others may specialize in other industries such as medical and transportation such as limos, limo buses, ambulances etc. Some Lenders will only lend up to ten years based upon the age of the truck where others may extend beyond this parameter. Loans and leases usually run anywhere between 36 -60 months based upon the age of the dump truck.

The startup Peterbilt dump truck applicant is seeking a relationship with the lender. The front money to commence the lending vehicle, the monthly payments and the buyout clauses at the end of the lending instrument, if there is one, is paramount in making a prudent business decision. The amount of paperwork and hoops to jump through to get to end of the financing process are considered in the total evaluation process.

As we discussed above, there can be a lengthly paperwork process to obtain your start up financing. Recently, some of the lenders have changed their computer qualification  models and require application only programs This means there are no income tax returns required, time consuming personal fianancial statments needed, and other key documents either prepared and /or requested. This program is usually geared for the seasoned business but there are start ups applications programs available. These application lending programs run as high as $100,000 for this start up program. It is important for the Peterbilt dump truck applicant to check out all the lending programs available. The collateral is the dump truck and usually no additonal collateral is required. The minimum credit score required for all Peterbilt dump truck applicants may run as low as 575.

The last thing you should be aware of is dealer/financing inventory programs. What this means, the lender has repos and/of a off lease inventories that they want to move for cash flow purposes. This financing arrangement is geared to the start up as well as seasoned business and may offer the Peterbilt dump applicant an execellent buying and financing opportunity.

Another option available for startup businesses looking for a Peterbilt dump truck is lending programs that require additional collateral. The start up applicant may have very poor credit, such as 550 or below. He also could have a recent discharged bankruptcy and/or judgements and liens that may be still outstanding. Most typical lenders will reject the dump truck applicant based upon these factors described above. If the applicant has equity in a house, free and clear title on vehicles and contruction equipment, certain lenders can put together a dump truck lending package to solve the road blocks to obtain the financing desired. Be aware that the rate factor and/or interest rate charged on these transactions which are typically very high.

When you are shopping for your Peterbilt dump truck financing, consider the following, the front money, the monthly payments, what collateral is required, and what the buyout clauses mean. Also, make sure you have a good source of income coming from a contract and/or other methods. Addionally, be aware that you are going to personally guarantee the transaction.

2009 Infiniti FX50 and FX35

On sale June 24, all-new 2009 Infiniti FX luxury crossover SUV pricing will start at $40,950 for the FX35 RWD, step to $42,350 for the FX35 AWD, and reach $56,700 for the FX50 AWD.

The 2009 Infiniti FX is available in three models: FX50 AWD with a new 5.0-liter, 390-horsepower DOHC V-8 engine, and the FX35 AWD and FX35 RWD sharing a 3.5-liter, 303-horsepower DOHC V-6. Each engine is paired with a new, standard seven-speed automatic transmission that can be controlled via magnesium paddle shifters.

Based on the laudable FM platform, the new FX features an extensive list of available equipment and technology, such as available Continuous Damping Control and rear active steer. The most notable technology suite includes Distance Control Assist (DCA), a system that automatically applies the brakes to maintain a safe distance from the vehicle ahead, aiding urban driving. Other leading-edge safety systems include Intelligent Brake Assist (IBA), which provides forward collision warning and automatic emergency braking, and a Lane Departure Warning/Lane Departure Prevention system, which as the name implies helps keep the vehicle in its travel lane.

Like the first-generation FX, the new FX looks to combine sport and luxury in an engaging, high-tech crossover vehicle.

Cars drive over trucks in sales

If there was any doubt before, it should be gone now: America is now officially a car market.

Even as industrywide sales of new vehicles declined 10.7% in May, sales of passenger cars were up 2.4%.

Meanwhile, sales of pickups, SUVs, minivans and crossovers plummeted 23.6%, according to monthly sales results released Tuesday.

Detroit’s automakers, who have long depended on their truck leadership for the bulk of their profits, suffered the worst declines as a result. Truck sales were down 36.9% at General Motors Corp., 25.6% at Ford Motor Co. and 24.3% at Chrysler LLC.

Nearly 60% of all new vehicles purchased in the United States last month were cars, with the smallest, most affordable ones performing best.

Jim Farley, Ford’s group vice president of marketing and communications, called the pace of the shift from trucks to cars “breathtaking.”

That automaker watched its critical F-Series pickup line, which has been the best-selling model in America for 26 years, lose the title for the month to the Honda Civic compact car. The Civic posted a record month, with more than 53,000 sales in May.

At GM, Mark LaNeve, vice president for sales, service and marketing in North America, characterized the market shift as a “real severe correction.”

“In the truck market we felt it, obviously,” he said.

None of Detroit’s automakers was able to offset truck declines with car sales. Car sales were down 13.7% at GM and 28.1% at Chrysler.

Ford, however, was able to ride the shifting consumer wave better than many of its rivals. With a growing stable of respectable cars, Ford posted a 3.8% gain in car sales, allowing the automaker to pick up critical market share in cars.

Ford sold 10.8% of the cars purchased in America last month, a gain of 0.2 percentage points. By contrast, Toyota Motor Corp. lost 0.4 percentage points of car share, ending the month with 21.2%.

At Ford, the Focus compact car, which is built locally in Wayne, was the star of the month.

Sales were up 53.2%. Excluding sales to fleet customers, Farley said that retail demand for the Focus was actually up 105%. Retail sales of the Focus, he noted, even outsold retail sales of the F-Series. The Focus is now the eighth best-selling vehicle in America.

As a result, Farley said that Ford would boost output of the car to 280,000 next year, up from 245,000 this year.

The big car winner of the month, though, was clearly Honda Motor Co.

The company’s Honda and Acura brands posted a combined 31.9% gain in car sales.

While the niche Mini brand posted a 52.8% gain in car sales, the only other major automaker to post a gain approaching Honda’s was Hyundai, which saw a 26.3% improvement.

Nissan Motor Co. car sales, including Infiniti, were up 18.7%, on the strength of the Nissan Altima midsize car, which posted a 43.6% gain over the same month a year ago.

While Toyota car sales, including Lexus and Scion brands, were flat, with a gain of 0.4%, the flagship brand now has six models in the top 20 rankings for America’s best-selling vehicles. That includes the Corolla compact car, Camry midsize car, Tacoma compact pickup, Prius hybrid car, RAV4 compact SUV and Yaris subcompact.

Honda seems to be benefiting from an unrelenting, long-term adherence to making high-quality cars that are affordable and fuel-efficient.

Sales were up 53% for the Fit subcompact car, 31.7% for the Civic compact car, 38.9% for the Accord midsize car. The Japanese automaker also saw its CR-V compact SUV among the Top 20 vehicles sold in America.

Honda, which also has a reputation for modesty, gave credit for its performance to the rapid shifts in the market.

“The dramatic increase in car sales appears to be one of the most profound shifts in automotive buying patterns in more than a decade,” Dick Colliver, executive vice president of American Honda, said in a statement. “Record sales of the Honda Civic clearly demonstrate an accelerated trend toward fuel efficiency.”

Truckers fight to survive amid diesel fuel rise

The rise in the price of diesel fuel has cost Walt Bosma a few steak dinners, and left him scrambling to find ways to save and cut costs as he drives his tractor trailer across the country.

Bosma, 62, of Michigan, stopped for a break in his 300 mile trucking route Monday at a Kangaroo convenience store in Dothan. Bosma planned to stay overnight in the sleeper unit of his truck, which is powered by a diesel generator. He parked at the Kangaroo convenience store, located at the corner of Headland Avenue and Ross Clark Circle, which sold diesel fuel for $4.53 per gallon.

“They’re a few pennies cheaper here than at home,” Bosma said. “It’s running around $4.69 a gallon at home.”

Bosma said his fuel costs have more than doubled per week over the past year, jumping from about $1,500 a week to $2,500 to $3,000 per week in 2008. By the July 4 holiday Bosma said he expects average costs to reach between $5 and $5.50 per gallon.

Rising fuel costs have left truck drivers scrambling to find ways to conserve energy and costs, which included a more regular check on the air pressure of the truck’s tires for Bosma.

“I drive 5 mph under the speed limit if I can,” Bosma said. “It gives you better fuel mileage.”

Bosma, who has worked as a truck driver for 38 years, said he gets between 6.7 to 9 miles per gallon.

James Fahey, of Bryant, Ark., who stopped at the Flying J truck stop off Ross Clark Circle, said most truck drivers are looking for the best deal when it comes to buying their fuel.

“We’re all slowing down, because it increases our fuel mileage,” Bryant said. “The lowest fuel costs in the nation are in this area.”

Trickle down

The cost of diesel fuel has also led to an increase in cost in other areas, Bosma said. The fuel crunch has forced him to eat out fewer times. Bosma works for Eagle Express out of Ludington, Mich., which has a fleet of about 150 trucks.

“You don’t get the steak dinners like you used to,” Bosma said. “It ain’t just fuel prices. It’s price of tires and oil. All your commodities are going up, you know your bread and milk. It’s mostly because of the shipping.”

Jim Franklin, the Chief Financial Officer for AMX trucking out of Ashford, agreed with Bosma.

“If it was just a little more stable where you didn’t see those increases on a daily basis that would certainly help,” Franklin said. “There’s not too many costs that are not driven by fuel. Our tire costs have gone up, and anything that’s petroleum based. Something as simple as servicing a truck, we’ve really seen it increase.”

The rise in the cost of diesel could cause some smaller carriers to go out of business, Franklin said.

Franklin said the fuel crunch has led the company, which includes a fleet of about 250 trucks, to reach special deals with some of the larger truck stops on fuel prices. The company has also tried to keep their drivers from straying from trucking routes. They also use special computer software to generate the best travel routes.

“It’s not good that fuel is going up, but the fact that it’s so volatile it kind of compounds the problem,” Franklin said.

Ford Ranger sales slide along with bigger trucks

Sales of Ford’s Ranger fell nearly 25 percent last month, as the St. Paul-made pickup suffered in the face of a dramatic drop-off in demand for trucks across the industry.

Ford sold 7,239 Rangers in May, versus 9,608 in the same month last year.

Sales of trucks and SUV fell nationwide as consumers turned away from fuel-guzzling vehicles in favor of more efficient models. Toyota’s Camry and Corolla cars both outsold Ford’s larger F-series trucks, the market leader for nearly two decades.

The Ranger had made some gains in recent months, on the strength of price incentives and fuel economy that’s better than the larger Ford trucks.

The St. Paul assembly plant that makes the Ranger is currently scheduled to close in the fall of 2009.

Earlier this week, Ford Motor Co. Chief Executive Officer Alan Mulally said that the Ranger might be revived in some form - he spoke to reporters in Washington about an updated Ranger truck or a smaller F-150 - in a response to higher oil prices. But there’s no indication that the automaker is thinking of building such a vehicle in the Twin Cities.

Ford’s US sales sink 15 pct as trucks, SUVs

Ford Motor Co. said Tuesday its U.S. sales fell 15 percent in May as consumers continued to abandon pickups and sport utility vehicles in favor of smaller cars, an industry-wide shift that will force plant closures at General Motors Corp. and production cuts at Ford.

Ford said its car sales were up 3 percent compared with last May, and it sold more than 30,000 Ford Focus small cars for only the second time in the car’s nine-year history. But pickup and SUV sales dropped 24 percent. No truck was immune: Ford’s F-series trucks, the best-selling vehicles in the U.S. for 31 years, plummeted 31 percent.

The rapid decline in truck and SUV sales caused GM to announce Tuesday that it plans to close four truck and SUV plants by 2010, costing 10,000 jobs. Ford said last month it plans to slash North American production of trucks and SUVs for the rest of the year. Ford also is planning to lay off salaried workers. Ford promised more details on its restructuring plan in July.

Other automakers were scheduled to report May sales later Tuesday.

GM shares rose 35 cents, or 2 percent, to $17.79 in afternoon trading. Ford shares rose 3 cents to $6.67.

The Associated Press reports unadjusted figures, calculating the percentage change in the total number of vehicles sold in one month compared with the same month a year earlier. Some automakers report percentages adjusted for sales days. There were 27 sales days last month and 26 in May 2007.

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