In the wake of disastrous September sales figures, Toyota Motor Corp. has unveiled an unprecedented 0% interest rate on eleven 2008 and 2009 Toyota brand models for up to five years, including even Camry and Corolla, its two top sellers.

The move is yet another sign that the world’s second largest automaker has been severely hurt by the deep U.S. economic crisis, which has caused sales to slip to their lowest point since 1993.

“Toyota has always had some fairly extensive incentives but they have always been to dealers and not to consumers. Clearly, that hasn’t worked this year,” said Art Spinella, president of CNW Marketing Research, Inc. “The more Toyota becomes like General Motors, the more it has to rely on consumer incentives.”

Toyota said its offer varies by model, with terms ranging from 36 to 60 months, and is set to expire Nov. 3. Toyota declined to say which models qualify the full five-year terms, saying the offers vary by region.

Separately, General Motors Corp. announced 0% financing for 36 to 72 months on dozens of models Wednesday with an offer that is also set to expire Nov. 3. Seven GM models qualify for six years, six qualify for five years, nine models qualify for four years and more than a dozen others qualify for a three year deal.

Toyota’s 0% offer includes both 2008 and 2009 model years. The models that qualify are: Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra.

Continue reading →

Share This

Delphi Corp. needs $3.5 billion to $4 billion to emerge from bankruptcy protection, said Steve Miller, Delphi’s executive chairman.

The Troy auto supplier, which has been restructuring in Chapter 11 for nearly three years, is going to its current investors to refinance its existing bankruptcy loans as well third parties for new money, Miller said during the Automotive Supplier Finance Summit today at the Marriott in Troy.

Delphi plans to raise that money through a mix of debt and sale of stock in the reorganized company.

Delphi had previously sought a $6.1 billion exit loan. The company needs to raise less money, in part, because GM boosted its contribution to Delphi, which includes shifting $3.4 billion in pension debt to GM.

Lenders and investors, Miller said, want to know two things: “That the ongoing company is profitable and that the risks have been mitigated. We believe we have achieved both of those objectives in the new arrangements we have with General Motors,” he told reporters.

But Delphi, which entered the credit markets last year just as the credit crunch took hold, is returning when the markets have virtually frozen, as the financial sector continues its shakeout.

“I am confident that we will get this last step done,” he said during the keynote of the summit.

Separately, Miller, who was a leader in organizing the 1979-’80 federal bailout of Chrysler Corp., said he supports the $700 billion proposal to buy bad debt from the nation’s financial institutions to spur confidence in the economy.

“Confidence in our system and the liquidity of our capital markets are so in peril that only some full stroke will get things moving again,” he said.

But Miller said he was awestruck by the proposal, put together by Treasury Secretary Henry Paulson, and the recent bailouts of AIG, as well as government takeovers of Fannie Mae and Freddie Mac.

He noted the differences between the Paulson plan and the Chrysler bailout, which required a 5-year plan detailing Chrysler’s products and finances, and six months of negotiating the terms of that deal before Chrysler saw any money.

“Compare all the recent history of what’s been going on to the thoughtful, carefully targeted Chrysler deal of 1980. The dollars are now hundreds of times larger, yet the governmental decision process is chaotic and panic-driven.”

Source : Freep.com

Share This

Evolution focused on pure Jinba Ittai Enjoyment

The facelift MX-5 embodies the purest form of Zoom-Zoom. With evolved sensory qualities, it continues to deliver the unchanging value of “Jinba-Ittai” (oneness between driver and car) despite the changing world. Marking its 20th anniversary next year, the new MX-5 offers a “lots of fun” driving experience underpinned by the untiring passion of Mazda’s engineers since 1989.

Updates at a Glance

Newly evolved look that’s functional and instantly recognizable, as Mazda, and as MX-5
• Exterior styling with greater dynamism & athleticism, which contributes to superior aerodynamics
• Strongly emphasized a premium identity in the look and feel of the Roadster Coupe

Enhanced engineering to enable the driver to enjoy the full potential of the engine performance
• 500 rpm higher rev limit and the raised engine speed at max power
• Introduced a forged crankshaft, fully floating pistons and newly designed valve springs

Sportier engine sound that responds more crisply to accelerator inputs
• Surge tank rigidity optimization, new forged crankshaft and ISE , Induction Sound Enhancer (for 6MT)
Smoother shifting feel with brisk and high-quality steering feel
• With 6MT, the meshing surfaces of the 1st–4th triple-cone synchronizers are now carbon coated, and the 3rd–4th synchronizer diameter has been increased.
• Linear & sporty 6AT that’s newly available for Europe incorporates two new control technologies, Direct Activematic (DAM) and Active Adaptive Shift (AAS).
• A lower front roll centre and retuned suspension make the car’s response to steering inputs more linear and enable the driver to precisely trace desired lines. The yaw and roll also feel more natural, producing a higher-quality ride
Improved quietness
• Roadster Coupe cockpit road noise with the roof closed is 2.1dB lower than before. Improvements include urethane filling in the front suspension member and damping material in the front roof section.
• Quietness is further promoted in the Roadster Coupe and soft-top version by stiffer door modules and by newly added reinforcements on the No. 2 crossmember.
Environmental, safety and conformability
• More convenient features, ie., improved Bose®sound system, 5 step adjustable seat heater, etc.
• Average fuel consumption display and outside air temperature is equipped
• More models featuring DSC as standard equipment

Continue reading →

Share This