The financing arms of U.S. auto makers are likely to shift to longer-term car loans as they eliminate or scale back their participation in the leasing business.

A longer maturity on loans translates into a slower repayment of principal, increasing the potential magnitude of losses resulting from defaults. It also means that these companies should set aside more reserves to account for possible losses from these loans - on top of the funds they have squirreled away to support the souring credit quality of their portfolios.

But these longer-term loans - which can now stretch out as long as 84 months, or 7 years - are one way that General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC can seek to clear bloated inventories and avoid further market- share losses. With fuel prices above $4 a gallon and consumer confidence on the decline, Detroit’s auto makers have been stung by steep declines in sales of the pickup trucks and sport-utility vehicles that have long sustained their businesses.

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Volkswagen AG moved ahead of Ford Motor Co. as the world’s third-largest automaker by vehicle sales in this year’s first half, according to figures the companies released last week.

Volkswagen reported a 7.2% increase to 3.31 million cars and trucks, while Ford said its sales fell 11% to 3.09 million.

Ford is headed for another decline in the annual global sales rankings, after yielding the No. 2 spot to Toyota Motor Corp. in 2003.

Ford’s U.S. sales fell 14% as gasoline prices rose above $4 a gallon, crimping demand for large pickups and SUVs. Its figures also exclude Jaguar and Land Rover, sold to Tata Motors Ltd. in June.

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Coming soon of next generation low-priced ,Volkswagen voyage or Gol Sedan in brasil

source spy : carrononline.net

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Honda will follow-up one of the most successful models in supermini history when its all-new Jazz goes on sale this Autumn. At a time of rising fuel prices and financial instability, a range of low emission, high economy petrol engines makes the new model an attractive option for the increasing number of motorists looking to downsize.

By enhancing its strongest qualities, Honda engineers have taken the innovative design and versatility of the current Jazz to the next stage. Greater flexibility, more interior space and lively, but economical engines raise the bar even further in a class that’s struggled to match the Honda Jazz for customer satisfaction and reliability.

The hugely-popular Jazz was always going to be a hard act to follow – simply because of the resounding success of the current car. As well as attracting consistently strong demand from customers in every year since its 2002 launch, the Honda Jazz europe 2008 has also won over 30 industry awards, making it one of the most celebrated models ever.

The sequel builds on this success, with a more stylish, contemporary exterior design to appeal to a broader audience. A slightly larger body style brings better visibility and means Jazz is even more spacious.
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