In 2007, Chrysler Expects $1.6 Billion Loss

Chrysler Expects $1.6 Billion Loss in 2007
By Ward’s Staff From Wires
WardsAuto.com

Chrysler LLC CEO Bob Nardelli tells a group of engineers and designers the auto maker is on track to post a $1.6 billion loss this year, according to a report in The Wall Street Journal.

The report, citing a person familiar with the situation, says Nardelli expects revenue of $63 billion, short of the $64 billion in costs the auto maker will incur for the year.

“Therefore we will lose about $1.6 billion this year,” Nardelli is quoted as saying.

Since assuming control of Chrysler in August, private-equity firm Cerberus Cerberus Capital Management LP has slashed thousands of jobs and eliminated four models from its lineup in an effort to get costs under control.

Last week, Steven Landry, executive vice president of North American sales, informed a group of business students from St. Mary’s University in Halifax, Nova Scotia, of the expected loss.

“You have to come to the realization that in some instances, you’ve got to stop spending,” Landry says in a published report. “You’ve got to rightsize what you do to the revenue that comes into the company.”

Toyota Matrix

Toyota Takes Another Shot at Drawing Younger Buyers With Matrix
By Christie Schweinsberg

RALEIGH-DURHAM, NC – Ever since its debut in 2002, the Toyota Matrix compact hatchback has failed to live up to expectations as a major draw for young, hip buyers.

“Right now it’s much more of a family vehicle, not really the target we envisioned for that product,” Toyota Motor Sales U.S.A. Inc. product planner Mike O’Brien told Ward’s in August.

He blamed that in part on styling, saying the first-generation Matrix was “a bit boxy” and failed to convey motion. It didn’t “have the appeal to young people that we had hoped for,” he said.

With the second-generation Matrix, due to hit U.S. dealers in February, Toyota is aiming to right this wrong.

The revamped Matrix, which continues to share its platform, engines and transmissions with General Motors Corp.’s Pontiac Vibe, sports a sleek new look and has “the soul of a 2-door sports car,” Toyota Div. General Manager Bob Carter says at a media preview for the car.

So Toyota will take another stab at appealing to younger consumers, hoping the new model will lower the median age of the overall Corolla/Matrix buyer in line with the Mazda3, currently the segment leader in that regard.

Matrix should make up greater percentage of Corolla mix, Toyota says.
“I can tell you that we would be thrilled for Corolla to have the youngest buyer demographic in the segment,” Carter says. “And we think the new second-generation Matrix will get us closer to that goal.”

Toyota considers the ’09 Matrix part of the Corolla lineup, reporting sales of the two models together. With the new Matrix and Corolla, also redone for ’09 and set to go on sale in February, it hopes to shift more sales to the former, with an 80/20 split in favor of Corolla vs. 85/15 currently.

Toyota will be aiming its marketing message at men ages 25-30, some of the same buyers its Scion brand targets. As with the FJ Cruiser SUV, Toyota wants the Matrix to draw some customers from the Scion brand, as it says a third of buyers who shop and don’t buy a Scion purchase a Toyota.

Carter says he is unconcerned about overlap, noting Scion always has been focused on luring trendy urban buyers while Toyota is targeting “mainstream youth.” But he says Toyota will borrow some of Scion’s marketing gimmicks to launch the ’09 Matrix.

Those include promoting the vehicle online as well as in the real world at rally, tuner and gaming events. There also will be “low levels of television” advertising, Carter says.

Targeting young men makes sense because Toyota overall woos fewer of them than the competition.

“Currently, 37% of Toyota buyers are male and under 35,” Carter says. “That’s four points below the industry average of 41%. This means there is a lot of opportunity for us with young new-car buyers.”

Toyota again is offering the Matrix in three trim levels: Base; S, which replaces the XR grade; and XRS.

The Base model comes with Toyota’s new 132-hp 2ZR-FE 1.8L engine used in the Scion xD hatchback, replacing the current Matrix’s 126-hp 1.8L. It is expected to comprise about 40% of total Matrix sales, Toyota says.

The midrange S trim will be the volume-leading grade, with more than half of total sales. All-wheel-drive, discontinued on the Matrix with the ’07 models, returns as an option on the S grade, boasting active torque control. About 14% of buyers are expected to opt for the AWD system, which again is packaged solely with a 4-speed automatic. Carter says AWD take rates tend to be lower with manual transmissions.
Those choosing a non-AWD S can select a 5-speed automatic transmission or a 5-speed manual. Toyota’s 158-hp 2.4L 4-cyl. engine, available in the Camry, is standard on both S and XRS trims.

The XRS, which Toyota discontinued for ’07, is expected to remain a bit player, comprising just 5% of Matrix sales.

Vehicle stability control with traction control is standard on the XRS but optional on all other trims. Additional options include an audio system with 6-disc CD changer (all three models); JBL hands-free audio system with 6-disc changer or navigation system with XM NavTraffic (S and XRS); and an all-weather guard package that has rear-seat heater ducts and a heated rearview mirror (XRS).

Pricing for the ’09 Matrix is expected to be announced before year’s end.
Toyota is vowing the hatchback will be a “no-compromise vehicle,” saying buyers won’t have to pay a premium for a versatile vehicle with an up-market image.

– with Byron Pope

Tundra Gaining Ground

Toyota Says Tundra Gaining Ground
By David E. Zoia

Toyota Motor Sales U.S.A. Inc. is sticking to its target of selling 200,000 new Tundra fullsize pickups in calendar 2007, though executives admit it may turn out to be a photo finish.

“It’s going to be close,” predicts Bob Carter, group vice president and general manager-Toyota Div., citing rising gas prices and other economic factors that are slowing the market overall. “That’s still our goal, but it’s going to be close.

Carter, discussing Toyota’s November sales in a conference call with media and analysts, says the auto maker is pleased with the performance of the fullsize pickup, heavily revamped for the ’07 model year.

“We’re seeing record market share on the West Coast and good growth elsewhere, particularly in the Midwest,” he says. “Tundra has maintained leadership in California and has gained leadership in the Pacific Northwest.”
Sales of the pickup rose 43.2% in November, Carter says, adding that he expects the Tundra to close the year “strong.”

Overall, Toyota delivered 197,189 vehicles in the U.S. last month, including Lexus and Scion models, up 0.3% from year-ago. It was a record November for the Toyota Div., with total deliveries of 172,341 units, including a best-ever 98,749 car sales for the month.

Hybrids were hot, Toyota says. Camry Hybrid sales of 5,118 units marked a 65% jump from year-ago and Prius sales soared 109% to 16,737. Lexus RX hybrid demand increased 26% to 1,674 units, and the luxury brand delivered 170 high-priced LS 600h L hybrids.

Tundra on target.
Yaris sales declined 8.2%, a dip Toyota blames on incentives being used to clear the outgoing Corolla from stock. A revamped model is due for ’09 and slated to hit dealerships in February.

“We’ve had good aggressive consumer programs on the Corolla that may have shifted some buyers out of Yaris,” Carter says. “Once we introduce the new Corolla, you’ll see Yaris increase in volume.”

Lexus sales fell 7.0% to 24,848 vehicles, but it still marked the second-best November for the brand, Toyota says.

2008 Chevrolet Malibu Production

Brisk Demand Spurs Malibu Production at Orion
By: James M. Amend

A better-than-expected sales month and the addition of a second production site for the ’08 Chevrolet Malibu indicates the market is responding to the extensively redesigned sedan.

GM’s Fairfax, KS, assembly plant serves as the primary manufacturing location for the vehicle. Although executives revealed in an Oct. 2 sales call that Orion Township, MI, would receive demand-based production of the redesigned sedan, the auto maker stopped short of officially naming it as a second site.

GM now confirms production in Orion following a celebration at the plant marking the occasion.

A GM spokesman tells Ward’s the plant should begin shipping to dealers this week.
The spokesman says GM established a “flex-link” between the two plants, allowing it to dial Malibu production up and down “like a spigot,” depending on demand.

Fairfax, which also builds the Saturn Aura, currently operates two shifts building roughly 48 vehicles per hour. Orion, which also builds the Pontiac G6 family of vehicles, presently runs two shifts at 60 vehicles an hour. Those hourly rates would mean Fairfax builds about 700 units per day and Orion cranks out 900.

GM does not make production numbers available by model, but according to Ward’s data Fairfax averaged 262 Malibu units per day in October. Ward’s forecasts Orion will build roughly 144 Malibus per day in December, a month shortened to 15 production days due to the holiday shutdown.

Orion Township, MI, employees celebrate production of ’08 Chevy Malibu.
Perhaps more importantly, the Malibu launch at Orion suggests consumers are receiving the vehicle as well as most media critics.

GM officials say the car enjoys a turn rate of about seven days, a brisk pace fueled by a combination of its favorable reception and limited availability. Turnover is even quicker on the West Coast, where a Malibu sits on a dealer lot for roughly six days before being sold.

Scott Daly, sales manager at Courtesy Chevrolet in Phoenix, AZ, calls the reception excellent. “We can’t keep them on the lot,” he says.
“It’s a winner,” agrees Hank Gaylor, sales manager at Classic Chevrolet in Grapevine, TX. “We need more.”

Mark LaNeve, vice president-sales, service and marketing at GM, says the new Malibu drove a 15.0% increase in Chevrolet passenger-car sales in November – the sedan’s first full sales month.

“We thought we would sell 1,000 units, and we actually sold 3,994,” LaNeve says during a sales call with analysts and journalists.

GM hopes the ’08 Malibu will provide a more solid entry into the highly competitive midsize passenger-car segment dominated by the Toyota Camry and Honda Accord. Early anecdotal evidence suggests Malibu is winning conquest sales, LaNeve says.

“There’s a lot of good stories,” he says. “Dealers tell us, ‘You wouldn’t believe who is buying them.’ We think we’ve got a legitimate contender.

“We’ve said all along (the) perfect Camry and Accord customer who buys five in a row is not our target,” he adds. “But the customers who buy (a Camry or Accord) that are indifferent, we think we’ve got a shot at those.”

GM has gone to unusual lengths to hype the Malibu on the Internet and television before its launch.

The auto maker declines to reveal its advertising budget for the ’08 Malibu but estimates it at about what was spent to launch the redesigned version of its bread-and-butter Chevy Silverado fullsize pickup last year.

Malibu production marks the first Chevrolet product for the Orion plant, which celebrates its 25th anniversary next year. Throughout that time, Orion has built products for the Pontiac, Cadillac, Oldsmobile and Buick brands. The plant employs 2,059 hourly workers and 189 salaried personnel.

Should More Outsiders be Allowed in Automotive?

Time to Allow More Outsiders in Automotive
By Drew Winter
WardsAuto.com

Conventional wisdom in the world’s automotive capitals stipulates that industry outsiders can’t run auto companies.

The automotive business is so unique, so infused with passion, impulse and history, that if gasoline has not been coursing through your veins since infancy, you are better off seeking employment elsewhere.

But as the economist John Kenneth Galbraith pointed out when he coined the term, “conventional wisdom” usually is more about convenience and maintaining the status quo than truth.

Mention industry outsiders in Detroit and you are likely to get a lecture about General Motors in the 1990s: It committed automotive blasphemy by hiring executives with backgrounds selling contact lenses, toothpaste and – oh, the humanity! – even diapers, to market its precious cars and trucks.

The much-maligned brand management concept at GM was pioneered by then-Chairman John Smale, a former Procter & Gamble executive, who used the concept with great success at P&G to sell consumer products such as soap and toothpaste.

At the time, it wasn’t a bad idea. GM’s brands were a mish-mash that needed sorting out. Unfortunately, GM’s version of brand management used focus groups, market research and brand positioning as a substitute for the creativity, intuition and passion of product-development veterans. It died an ugly death.

But that does not mean outsiders are not capable of fixing a troubled company.
Long-time observers love to say that all a struggling auto maker needs to be successful is great cars and trucks.

But when auto makers get into trouble today, whether they are based in the U.S., Europe or Asia, their problems are so multifaceted and huge that even a celebrated car guy with a golden gut may lack what it takes to turn around a company.
The problems of Ford, Chrysler and a growing number of others have metastasized far beyond mere product deficiencies.

They need top executives skilled at integrating and leveraging global assets on a massive scale, and who can take operations that look like medieval fiefdoms and turn them into worldwide production and retailing networks.

They need executives who can interpret the ebb and flow of the oceans of cash and debt these giant organizations create every day.

What auto makers don’t need is executives who know how to rebuild the carburetor on a ‘57 Chevy, or who can do a lap of the Nurburgring in less than eight minutes.
Alan Mulally is an engineer with decades of experience developing and marketing a long list of highly complex and successful airplanes for a global market, including the vaunted Boeing 777.

In the early 1990s, Robert Nardelli boosted General Electric’s locomotive business from 35% market share to 70%. After that, he turned around GE’s money-losing gas turbine engine business and a host of other troubled operations.

Neither Mulally or Nardelli – who now head Ford and Chrysler respectively – is steeped in automotive lore or restores classic cars in their spare time. It doesn’t matter.

If they are successful, which they are likely to be, we must start letting a lot more “outsiders” into the very big small town we call the auto industry. Conventional wisdom be damned.

Roger B. Smith of General Motors

Remembering GM’s Roger B. Smith
By David C. Smith
WardsAuto.com

Roger Bonham Smith was not a CEO out of central casting.
Standing at medium height and with blond-reddish hair, a ruddy complexion and a rather high-pitched voice, he hardly fit the stereotype of a boardroom tycoon.

But that’s precisely what he was as chairman of General Motors Corp. from 1981-’90. He died at age 82 on Nov.30, and to the end remained silent about his 42-year GM career.

“I’m taking it to the grave,” he replied when repeatedly asked to tell of his time at GM.

Bright, warm with friends but tough on colleagues, Smith also was one of GM’s most controversial leaders. Few among his subordinates spoke reverently about him, and many privately branded him a tyrant.

Yet in heading what was then the world’s largest corporation based on annual revenues, he weathered some tumultuous times and took a series of bold steps into uncharted territory that those with less fortitude may never have taken – for better or worse.

Four of those moves stand out: Launching Saturn as an entirely new company to compete against Japanese models; acquiring Electronic Data Systems (EDS) from fiery Ross Perot; purchasing Hughes Aircraft Co.; and tying in with Toyota Motor Corp. to build GM and Toyota cars at a GM plant in Fremont, CA.

But he also made questionable decisions that still haunt GM today. One was the 1984 reorganization designed to streamline the company but, with GM’s ingrained bureaucracy, had almost the opposite effect. Organization and operations charts were tossed aside and new ones redrawn, resulting in near chaos down the ranks.

Some GM old-timers say the “reorg,” as they called it, set back GM’s core product development programs just when it needed to be paying much more attention to burgeoning competition.

Although Smith loved cars, he was not a “car guy” in the traditional sense. His career was almost entirely on the financial side, and an underling who didn’t deliver a strong business case for his project would find it to be a no-go.

Given his reputation as a “bean-counter,” it’s surprising that an engineer was named as his successor. Bob Stempel was no ordinary engineer, however. He was a “car guy” with a string of technical accomplishments as he rose to executive vice president. But he was never cut out to be the financial leader of a corporation that for decades drew its CEOs from the financial side. As GM’s woes mounted not long after Smith retired, Stempel was forced out, and GM reverted to tradition by naming Jack Smith, a Roger Smith protégé, to CEO and, eventually, chairman.

Few who didn’t really know Roger Smith would be surprised to learn he had a keen sense of humor and a common touch. He once described a reporter he especially disliked as having a brain that “wouldn’t fit the top of a common pin.”

And he liked to pique attention by slyly reminding reporters that he had a “lulu” he was about to disclose.

One of those lulus was Saturn. Top GM insiders of that era in the late 1980s still argue that Saturn was a $2-billion waste – that Chevrolet first, but perhaps the other divisions as well, could have used that cash to develop stronger competitive models.

Others, however, saw Saturn as symbolizing GM’s commitment to changing the way it addressed the market and customers.

Saturn reportedly seldom made money in its early years and only now – 20 years after it was conceived – does it appear to be routed toward success. What if, asked some close to GM at the time, the auto maker had pumped cash into Oldsmobile instead, rather than later killing it off?

Smith reportedly paid $5 billion each for EDS and Hughes, although he once confided the number was closer to $4 billion apiece. Both since have been spun off at a multiple much higher than GM had paid, which should go down as a plus in assessing Smith’s time at the top.

Smith got Perot in the bargain, as he joined GM’s board of directors. But their relationship was not without its ups and downs, breaking at one point into open warfare. Perot, alone among the board directors, voted against the Hughes acquisition and repeatedly attacked GM for failing to take his advice on numerous issues. Still, in EDS Smith infused GM with information technology it did not have, and from his viewpoint picking up EDS strengthened the auto maker.

Ford Motor Co. reportedly offered to buy Hughes, but Smith once chortled he had gotten the best of his cross-town rival. Both were especially interested in Hughes’ technical acumen, particularly electronics.

The Toyota deal resulted in the launch of New United Motors Mfg. Inc., aimed at assembling cars for both companies, with Toyota in charge.

Besides getting a source for compact cars developed by Toyota, Smith’s motive also was to learn first hand about the Japanese auto maker’s esteemed lean production system, then transfer this knowledge to GM’s own operations. In that he had limited success, running into some initial resistance back home. Although today’s GM manufacturing system and strategy probably can trace some of its lineage back to NUMMI, which remains a 50-50 JV.

A book may yet be written about Smith’s tenure at GM. Sadly, it won’t be a first-hand account.

– David C. Smith, no relation, interviewed GM’s Roger Smith dozens of times over 20 years as the former editor-in-chief of Ward’s AutoWorld.

Sonic hires Wesley Pandoff as Corporate Controller

Sonic Automotive Announces Hiring of Corporate Controller
CHARLOTTE, N.C., Dec. 10 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, announced today that Wesley Pandoff has joined the Company as Senior Vice President and Corporate Controller.

Prior to joining Sonic, Mr. Pandoff was with the Greenbriar Equity Group as CFO of its Commercial Truck investment group. Prior to that, he held a variety of senior finance positions at AutoNation and Ford Motor Company.

Commenting on Mr. Pandoff's new position, Mr. David Cosper, the Company's Vice Chairman and Chief Financial Officer said, "We are pleased that Wes has chosen to join Sonic and lead our field financial activities. Wes has a rare blend of retail automotive and large corporate finance experience. He is an exceptional leader and will help us drive operational and profit improvements across Sonic."

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 174 franchises and 36 collision repair centers. Sonic can be reached on the Web at http://www.sonicautomotive.com.

SOURCE Sonic Automotive, Inc.

Sonic Hires Heath Byrd as Chief Information Officer

Sonic Automotive Announces Hiring of Chief Information Officer
CHARLOTTE, N.C., Nov. 13 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, announced today that Heath R. Byrd has joined the Company as Vice President and Chief Information Officer.

Mr. Byrd comes to Sonic from Gevity, an IT/HR outsourcing company, where he served as Vice President of Operations. Previously he worked for HR America as its President and CIO. He attended the United States Air Force Academy and received a Bachelor of Science degree from North Carolina State University and a Masters in Health Administration degree from Duke University.

Commenting on Mr. Byrd's new position, Mr. Scott Smith, the Company's President said, "We are pleased that Heath has chosen to join Sonic to lead our information technology efforts. As we continue to target new opportunities for growth, we believe information technology will play a significant and increasing role in our success. We look forward to Heath adding exceptional value to Sonic's business going forward."

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 174 franchises and 36 collision repair centers. Sonic can be reached on the Web at www.sonicautomotive.com.

SOURCE Sonic Automotive, Inc.

CONTACT:
David Cosper
Chief Financial Officer
or
Greg Young, Chief Accounting Officer - Investor Relations
both of Sonic Automotive, Inc.
+1-704-566-2400

Aimbridge’s Automotive Avenues launches Web site
Aimbridge Lending Solutions, an integrated provider of multi-channel, multi-lender auto buying and lending services, announced that Automotive Avenues has launched a new more interactive Web site intended to enrich the customer car buying experience. The site, www.autoaves.com, is designed to enhance Web-based decisioning during the car buying process and help credit unions capture more loan growth from their members.

The new Web site features improved functionality and easier navigation. Advanced features enable Automotive Avenues to cater to individual members while bringing credit unions another step closer to Web-based, fully automated purchases. Several key differentiators include:


• A private membership log-in where members can save personal information and manage their accounts;
• A custom program for members to build a new car to their preferences, have it priced and then order it through Automotive Avenues;
• Improved research and 360 degree views of automobiles’ interiors and exteriors;
• Auto check history reports and head-to-head comparisons; and
• Spanish-language version of inventory.


“Automotive Avenues’ new Web site brings us a step closer to a fully Web-based auto buying experience and, at the same time, enhances personalization for members,” said Bill Green, president of Automotive Avenues. “With almost 90 percent of the current car buying process being completed online, including research, credit submission and decisioning and a deposit payment, it was important that Automotive Avenues have a site that could fulfill what members wanted. The new site, and its many progressive features, contributes to our commitment of member satisfaction and give members a satisfying car buying experience.”

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Digital Dealer Magazine
Thursday, December 27, 2007 Issue 52 VOLUME 2 ISSUE 52


BMW launches new Web site
With an eye toward enhancing its relationship with owners and potential buyers, BMW of North America last week launched a new re-design of its Web site --BMWUSA.com. Using collected (artificial) intelligence technology, BMW says the site will continually personalize the user experience for each consumer.



Featuring extensive CGI capabilities offering more than 130 million options for users to configure a BMW, an efficient interface for sharing and saving videos, and future integration with several other BMW service areas such as BMW Assist and Financial Services -- the new BMWUSA.com offers a one- click-shop that will aim to provide BMW owners (and prospective owners) a seamlessly integrated and individualized online experience.



"Our relationship with our customers is of the ultimate importance to us here at BMW. Our new website is a reflection of that," said Jack Pitney, Vice President of Marketing, BMW of North America. "Today, a website can't just be a static, generic round-up of information. We know that to be valued by our customers -- and our potential customers -- we need to work hard to provide them the information they want and need, and nothing that they don't."



For example, AJAX (Asynchronous JavaScript and XML) technology will increase the site's interactivity, speed, functionality and usability.



The re-designed Web site will also feature content ratings that consumers will use to leave their mark on the site, be heard, and in doing so, assist other site visitors and current or prospective BMW owners. These ratings will help BMW develop a vibrant online community among BMW enthusiasts.



"We approached this not as the re-design of a website, but rather as a full, 360-degree look at how BMW manages its relationship with its customers and potential customers," said Steve Thibodeau, President and Chief Relationship Marketing Officer, dotglu. "We know that for half of the buyers online, the website will be the first direct interaction they will have with BMW. We had to make sure that this interaction was as performance-driven as the cars themselves."



Throughout 2008, BMWUSA.com will be expanding profile management capabilities, building site-customized communication based on five user personas. Such personas will be activated by a collected (artificial) intelligence technology that will enhance and personalize the user experience.



Later in 2008, visitors will be empowered to enjoy a deeper level of interaction with dealers and garner information about dealer-installed accessories more easily than ever before. Every content feature of the new site will be available with one-click access, including user configurations, ratings, maps, videos and car maintenance tools.

Social network ad spending to grow 70% next year

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Thursday, December 27, 2007 Issue 52 VOLUME 2 ISSUE 52





News
CarMax: Online hybrid car searches rising
CarMax, Inc. which is in a position to know as the nation's largest retailer of used cars, says carmax.com online searches for hybrid cars are on the rise. Examples of the most searched hybrid cars include the Ford Escape Hybrid, Toyota Prius and Toyota Camry Hybrid. Carmax.com says searches for hybrid cars have increased 10 percent over last year and 43 percent from October to November.
[FULL STORY]









Startup monitors traffic via Web providers
Privacy an issue

As Internet advertising is increasingly precisely targeted to meet consumers' presumed desires, the trick for advertisers is to sniff out people's interests and needs without riling their privacy defenses, The Detroit News notes in a recent story about a Silicon Valley startup, NebuAd Inc., that believes it has reached this balance with a new ad-serving system -- even though its system of peering inside Internet traffic might seem ominous.









Buzzing about battery power - Volt is big on the Web
The Chevrolet Volt is slowly consuming Lyle Dennis' life. A year after casually launching a blog devoted to General Motors Corp.'s ambitious efforts to build a battery-powered Chevy, Dennis, a neurologist from Suffern, N.Y., has become a cyber-celebrity of sorts, The Detroit News reports. "I just wanted to do anything I could to make it happen, and I thought it might be fun to have a blog," Dennis said. "I didn't expect all this. It can be challenging." His Web site, GM-Volt.com, gets about 100,000 visitors a month, he said. More than 7,400 people have signed a waiting list he's compiling that he says he'll send to the company to convince it that there's a market for the product. They will have to wait. The car is still years and some significant scientific advancements away from becoming reality, GM says. Still, the Volt is also showing up on other Web sites, forums and social networking pages such as Facebook.com.









Wired readers dis Tesla Electric Roadster
The Information Age publication Wired, like many others, has published an end-of-year Top Ten list. The difference here, notes EdmundsInsideLine, is that based on reader votes, Wired has called to its 2007 Podium of Shame 10 "most-prized products that were promised but never delivered." The name of the list: the Vaporware Awards. Number nine on the list is the Tesla Roadster, which, as the magazine says, "has been appearing everywhere...except the blacktop." The all-electric sports car, promised to be out by October, has had its release date pushed into 2008.


Toyota pegs worldwide '08 sales at 9.85 million
Toyota plans to sell 9.85 million vehicles worldwide in 2008, the company said Tuesday, setting an ambitious target despite worries about a slowing U.S. auto market as it tries to become the world's top automaker, according to wire reports from Japan. Toyota also said it plans to produce 9.95 million vehicles worldwide next year, up 5 percent from this year -- the same as the projected annual percentage jump for Toyota's global sales. Its recent growth has put Toyota Motor Corp. on track to top General Motors Corp. as the world's largest automaker by sales. GM has said it estimates this year's sales to total 9.3 million vehicles; Toyota estimates 9.36 million sales.






Swapalease.com selects DataScan Field Services
DataScan Field Services, the largest full-service automotive audit and inspection company in North America, has been selected as the exclusive vehicle inspection company for customers of Swapalease.com, the world’s largest online lease marketplace.
[FULL STORY]


Social network ad spending to grow 70% next year

Advertisers are avidly experimenting on Facebook, MySpace and niche social networks. In 2008, they are expected to spend $1.6 billion—a rise of 69 percent over the $920 million they spent in 2007, according to a new eMarketer report, Social Network Marketing: Ad Spending and Usage. Social networking may get more than its fair share of media attention, but it is not a fad, says Debra Aho Williamson, author of the report. “In 2007, 37 percent of the US adult Internet population and 70 percent of teens used online social networking at least once a month.” There is little to suggest that this activity will go away. eMarketer predicts that the total US social networking audience will grow by 46 percent over the next four years to 105 million in 2011.

'08 Toyota Sales

Toyota pegs worldwide '08 sales at 9.85 million

Toyota plans to sell 9.85 million vehicles worldwide in 2008, the company said Tuesday, setting an ambitious target despite worries about a slowing U.S. auto market as it tries to become the world's top automaker, according to wire reports from Japan. Toyota also said it plans to produce 9.95 million vehicles worldwide next year, up 5 percent from this year -- the same as the projected annual percentage jump for Toyota's global sales. Its recent growth has put Toyota Motor Corp. on track to top General Motors Corp. as the world's largest automaker by sales. GM has said it estimates this year's sales to total 9.3 million vehicles; Toyota estimates 9.36 million sales.

Tesla Electric Roadster

Wired readers dis Tesla Electric Roadster

The Information Age publication Wired, like many others, has published an end-of-year Top Ten list. The difference here, notes EdmundsInsideLine, is that based on reader votes, Wired has called to its 2007 Podium of Shame 10 "most-prized products that were promised but never delivered." The name of the list: the Vaporware Awards. Number nine on the list is the Tesla Roadster, which, as the magazine says, "has been appearing everywhere...except the blacktop." The all-electric sports car, promised to be out by October, has had its release date pushed into 2008.

Chevy Volt

Buzzing about battery power - Volt is big on the Web

The Chevrolet Volt is slowly consuming Lyle Dennis' life. A year after casually launching a blog devoted to General Motors Corp.'s ambitious efforts to build a battery-powered Chevy, Dennis, a neurologist from Suffern, N.Y., has become a cyber-celebrity of sorts, The Detroit News reports. "I just wanted to do anything I could to make it happen, and I thought it might be fun to have a blog," Dennis said. "I didn't expect all this. It can be challenging." His Web site, GM-Volt.com, gets about 100,000 visitors a month, he said. More than 7,400 people have signed a waiting list he's compiling that he says he'll send to the company to convince it that there's a market for the product. They will have to wait. The car is still years and some significant scientific advancements away from becoming reality, GM says. Still, the Volt is also showing up on other Web sites, forums and social networking pages such as Facebook.com.

New Advertising technology for dealers

Startup monitors traffic via Web providers to refine ad data, highlighting privacy struggle
BRIAN BERGSTEIN / AP Technology Writer

As Internet advertising is increasingly precisely targeted to meet consumers' presumed desires, the trick for advertisers is to sniff out people's interests and needs without riling their privacy defenses.

Silicon Valley startup NebuAd Inc. believes it has reached this balance with a new ad-serving system -- even though its system of peering inside Internet traffic might seem ominous.

NebuAd's system is designed to improve on Web sites' long-standing practice of dropping tiny tracking files known as cookies on visitors' computers. When those cookies indicate enough about a Web surfer's interests, related ads can be made to appear.

But the fact that you visited a site doesn't say as much about your interests as knowing what you did there and afterward. Did you read several articles or quit halfway through one? Did you leave the site to research the topic further on a search engine?

To glean those deeper insights, NebuAd installs equipment inside the facilities of Internet service providers (ISPs), which see everything their customers do online. NebuAd's boxes examine many of the sites people visit, what they do there and what they hunt for on search engines.

While some tracking mechanisms can ferret out an interest in travel or the outdoors, NebuAd says it can tell whether you are in the market for a trip to the south of France or snowboarding gear.

The company won't say how many carriers or advertisers it works with, though CEO Bob Dykes said Internet providers representing millions of customers run NebuAd's system to let it gather information. In return, they get a share of the revenue from advertising NebuAd places.

The only ISP known to be working with NebuAd is Monroe, La.-based CenturyTel Inc., which has 530,000 broadband subscribers scattered throughout the country. NebuAd says some of the largest ISPs are at least testing the service.

Aspects of NebuAd's technique are already in play. For example, besides cookies, many online retailers deploy "clickstream analysis" tools that monitor what customers do on a given site -- what they browse, what they read, which items they put in their shopping carts but fail to buy.

As a much wider-ranging eye in the sky, NebuAd could pique more worries about privacy. And its creators have taken steps to mitigate them.

Dykes pledges his company never creates a database that could leak or be subpoenaed. It doesn't compile lists of sites that people have visited or what they did online.

Instead, its system works somewhat like a huge set of meters: one measuring interest in travel to the south of France, another tallying curiosity about snowboarding, and so on and on and on. Whenever you do something online that is thought to reveal heightened or diminished interest in a subject NebuAd tracks, the meter ticks up or down.

The system measures interest in at least 800 marketing categories, Dykes said. But it is blind to online behaviors that indicate bedroom proclivities or medical conditions, because NebuAd doesn't take sex-related ads or promotions for what Dykes calls "sensitive drugs."

NebuAd also doesn't read e-mails or postings on social networking sites, which should help keep it out of privacy storms like the one that erupted last month on Facebook.

Also, while NebuAd follows users closely enough to match ads to their interests, Dykes said the company doesn't keep identifying information on them as individual people, even a numeric Internet Protocol address.

Once grabbed from an ISP's network, such details are fed into a cryptographic system known as a one-way hash, producing a string of code that supposedly cannot be reversed to identify a consumer. NebuAd's servers -- and snoops, presumably -- see only the hash codes.

"All they really have is (the equivalent of) a dot on a grid somewhere that says, 'It's time to get an ad to this dot,'" said Larry Ponemon, a privacy consultant who has advised NebuAd.

If that does not reassure consumers, Dykes said NebuAd requires ISPs to ask their customers whether they want to opt out.

However, that could prove contentious. Pam Dixon, director of the World Privacy Forum, said NebuAd should instead use an opt-in mechanism -- automatically excluding anyone who doesn't sign up. She said even if a marketing profile is anonymous, someone might be able to tie it to an individual Web user, if its details were as richly detailed as NebuAd indicates.

"For this particular business model ... it's got to be opt-in, because people's expectation of privacy is that this isn't happening," Dixon said.

The degree to which this privacy equation has been managed will likely be key for NebuAd.

In the company's favor, its unusual approach to gathering data could deliver better insights than traditional cookie-based systems, including those run by such powerful players as Yahoo Inc., Time Warner Inc.'s AOL, Microsoft Corp. or DoubleClick Inc., which Google Inc. hopes to buy.

Cookie networks capture information more sporadically, which is one reason "behavioral targeting" accounts for just 3 percent of spending on online advertising in the United States, according to eMarketer, a research group.

"No one has to go to every Web site, and everyone can turn off cookies, but everyone has to use an ISP to get online," said David Hallerman, a senior analyst for eMarketer.

NebuAd's system would be far less valuable, however, if not enough ISPs join the network. ISPs could get skittish if a privacy outcry erupted, justifiable or not.

"There may not be a real privacy violation, but if the individual thinks there is, then there is a problem," Hallerman said.

NebuAd also has to compete for advertising dollars increasingly being thrown at search engine result pages, where people often provide awfully clear signals about their consuming interests.

However, Tom Soevyn, CEO of Focalex Inc., a marketing agency that places ads with NebuAd, says NebuAd's system appears more cost-effective than search engine marketing, partly because it puts ads on multiple kinds of sites.

"When I've run on some of the ad networks I've had horrible results," Soevyn said. While his tests with NebuAd are still in "early stages," he added, "it seems to be working pretty well. ... We'll keep our fingers crossed."

Carmax Online hybrid car searches rising

CarMax: Online hybrid car searches rising.

CarMax, Inc. which is in a position to know as the nation's largest retailer of used cars, says carmax.com online searches for hybrid cars are on the rise. Examples of the most searched hybrid cars include the Ford Escape Hybrid, Toyota Prius and Toyota Camry Hybrid. Carmax.com says searches for hybrid cars have increased 10 percent over last year and 43 percent from October to November.


"One of the ways we know that people are looking more for hybrid vehicles is by monitoring the search activity on our website," said Tom Folliard, president and chief executive officer of CarMax. "Hybrid cars are increasingly making an impression on car shoppers and searches on carmax.com are reflecting that."


The following hybrid cars experienced the largest increases in carmax.com search activity:

Make/Model October to November 2007 Increase
Ford Escape Hybrid 108%
Toyota Prius 56%
Toyota Camry Hybrid 48%


Online shoppers can use the carmax.com website to search the company's inventory of more than 25,000 used and new vehicles, including hybrid cars. The website showcases each vehicle with multiple photos, the no-haggle price and information on features, options, fuel economy and customer reviews.

In fiscal 2007, carmax.com averaged more than four million visits per month. Additionally, approximately 70 percent of in-store customers visited the website before coming to the store.