Despite pumped-up production schedules in recent weeks, North American June output will trail last year’s pace by 8.3%, according to a recent WardsAuto.com article. Ward’s Auto forecasts manufacturers will assemble 1,394,600 vehicles next month based on 21 production days, somewhat under the industry’s planned 1,403,000 units. Output in like-2006 totaled 1,521,101 units, with one additional production day.

However, boosted by healthier production rates than seen in the year’s first three months, Ward’s Auto is forecasting second-quarter North American output to surpass first quarter by more than 7.0%, based on a daily build rate, with volume rising from 3,937,354 units to 4,177,072.

While Ford Motor Co.’s Wixom, Michigan, plant will close this month, output of its re-badged Taurus sedan and Taurus X CUV, which are replacing the Ford Five Hundred and Freestyle, will more than offset the lost production. General Motors Corp. is ramping up production of the new 2008 Saturn Vue at its Ramos Arizpe, Mexico, plant and Honda of America Manufacturing Inc. has added more Civic sedans in Canada. These additional builds, along with a bump up in inventories as many automakers prepare for model-year changeovers this summer, will contribute to a stronger second-quarter slate.

Still, compared with prior-year’s production that yielded 4,274,339 units, second-quarter 2007 output will trail the same period in 2006 by 2.3%. Detroit’s Big Three will build fewer vehicles in June than the prior year. Ford output will drop 17.9% to 264,802 units, Chrysler Group’s production will decline 15.1% to 239,190 and General Motors Corp.’s output will fall 14.6% to 391,711.

In keeping with rising sales trends among foreign-based manufacturers, Toyota Motor Manufacturing North America Inc., Nissan North America Inc. and Honda all are forecast to step up production in June. Nissan, now assembling the Versa subcompact in Mexico, is forecasted to increase North American output 23.6% in June over prior-year. Toyota will outpace last year’s 7.4% and Honda will increase its builds 2.9%. Other foreign-based automakers will see a combined 5.0% gain in June.

Capacity utilization also will drop in the month, with North American manufacturers only using a combined 84.1% capacity, compared with 87.5% in like-2006. The largest decline will be in Canada, from last year’s 91.3% to 80.8%. Among the automakers, Chrysler’s capacity usage will see the biggest drop in June, from last year’s 91.6% to 77.3%. The cutback is a reflection of the automaker’s continuing attempt to better align production with demand in order to reduce inventories and return to profitability.

Ward’s Auto is forecasting production in the year’s first half to finish 5.2% behind like-2006, to 8,114,477 total assemblies from prior-year’s 8,561,519.

Source: Elnick, Diane. (May 18, 2007). “June North American Production to Fall Below Last Year’s.” WardsAuto.com. Retrieved May 18, 2007 from www.WardsAuto.com.

Magazine publisher Primedia said on Monday it will sell its Enthusiast Media division, which includes popular automotive magazines like Motor Trend, Automobile, and Hot Rod, to Source Interlink for $1.2 billion. According to a Reuters report, the all-cash deal is expected to close in the third quarter and will zero out Primedia’s debt.

Source Interlink, based in Bonita Springs, Florida, distributes magazines, CDs, DVDs and other entertainment products to over 110,000 retail locations throughout North America, and is part of billionaire investor Ron Burkle’s private equity firm, Yucaipa Companies.

Primedia’s Enthusiast Media group includes more than 70 magazines and 90 websites. Once completed, the deal will leave Primedia with its Consumer Source business, which publishes free consumer guides.

Sources:
-“Source Interlink to Buy Primedia Unit for $1.2 billion,” Micheal Flaherty, Caroline Humer, Reuters.com, 5/14/07

-“Burkle’s Source Agrees to Buy Primedia Magazine Group,”
Leon Lazaroff, Bloomberg.com, 5/14/07

In a move that had been hinted at for weeks, DaimlerChrysler AG divested itself from the bulk of its investment in Chrysler, handing over an 80.1% share of the company to the New York-based private equity firm Cerberus Capital Management, according to a Bloomberg report.

Cerberus will invest $7.4 billion in a new venture called Chrysler Holding LLC, while Stuttgart, Germany-based DaimlerChrysler will contribute a net $650 million. Industry observers may recognize Cerberus as the same group that offered to invest $3.4 billion in bankrupt auto-parts maker Delphi Corp., a deal that Cerberus is expected to back out of, Bloomberg reports.

"The sale of Chrysler represents a significant milestone in the automotive industry,” notes Carl Sheffer, SEMA vice president, OEM relations. “Never before has an American automotive company been acquired by an investment company with the added caveat of taking the company private.

“It will be interesting to watch how this transaction will impact future product offerings, profitability, dealings with the UAW and dealings with other manufacturers as they move forward. At this time, I don't see any significant impact on the relationships currently in place with SEMA and many of our member companies.”

SEMA members are located in each of the 436 Congressional districts (435 plus District of Columbia).

Nine California districts, as well as Rep. Joe Knollenberg's in Michigan, make it on the top ten list of Congressional districts in terms of number of SEMA members. 

Heading the list is Congressional Automotive Performance and Motorsports Cacucus member Dana Rohrabacher's district with one hundred and twelve SEMA members. For a list of SEMA members in each of the 436 Congressional districts (435 plus District of Columbia) click here. 

For a list of SEMA members by state click here. To identify your Member of Congress click here.  To identify which Members of Congress are in the Congressional Automotive Performance and Motorsports Caucus click here.  

Members Per Representative                                                                                                                                      

Truck Accessories Group has signed on as the first Gold Sponsor of the SEMA Installation Banquet and Gala Fundraiser Supported by DUB magazine, Presented by Advanstar. Truck Accessories Group includes popular brands Leer, Century, Raider, Pace Edwards, and State Wide Aluminum.

The SEMA Installation Banquet & Gala Fundraiser is where outgoing Board members are recognized for their service, newly elected Board members are introduced and the newest selections for the SEMA Hall of Fame are announced. Beginning this year, the event was combined with charitable fundraising activities, and proceeds from the gala will be contributed to two very worthy causes—Childhelp and the Petty Victory Junction Gang Camp.

One of the fundraising activities held in conjunction with the annual banquet is the silent auction. The silent auction features a multitude of one-of-a-kind collectibles and memorabilia.

Items that have already been graciously donated include a two-night stay for two couples at the Cibolo Creek Ranch in Texas, as well as passes to the Barrett-Jackson Auction.  

To donate an item for the silent auction, use the PDF donation form located here.

Click here for more information on the Installation Banquet & Gala Fundraiser.

With a new high-performance Nissan 350Z on the way, offered through the automaker’s NISMO performance division, we take a look at the most popular parts for the standard 350Z and its upmarket sibling, the Infiniti G35.

Between April 11-May 10, 350Z enthusiasts spent $601,282 on parts and accessories while their G35 counterparts shelled out $484,894 via online auction, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions.

Exterior goods, lighting and lamps, and wheels and tires (in that order) proved the most popular category with 350Z fans, accounting for $62,491. Antennas, grilles, and wings and spoilers were the most sought-after exterior items, while headlight/taillight covers, xenon lamps, and taillights comprised the lighting category’s most coveted items. Wheels and tires accounted for more than 30 percent ($267,291) of the monthly total.

G35 enthusiasts also like their exterior goods, although in different order. Lighting and lamps was the most favored category, comprising $49,906 of the monthly total, with wheels and tires, and exterior accessories completing the top three categories.

Headlights, side markers and xenon lamps were the most purchased lighting components, while grilles, spoilers and wings, and body kits were the hottest exterior accessories. Wheels and tires nearly mirrored the popularity of those for the 350Z, accounting for $244,176 in sales.

Terapeak's Motors P&A Research provides sellers with access to in-depth research on the past year of online auction data and allows users to get in-depth research reports on the competition and themselves. More at www.terapeak.com/motors. 

Brenda Priddy was the first to bring us quality (non-camera-phone) photos of Honda’s sporty Accord coupe, and now they have the very first pictures of the sedan!

According to Brenda Priddy & Company, with similar—but not identical shapes, and different textures (no honeycomb grille on these sedans)—it was easy to tell exactly what we were looking at in our rear-view mirror.

The new Accords will reach the production line this coming September or October, with the first shipments to dealers shortly afterwards.

Our sedans are likely all four-cylinders, but Honda has publicly talked about more horsepower, better fuel economy, cylinder deactivation and lower emissions for the V6-powered Accord—and although there’s no word from Honda, we’re anticipating a 3.5L V6 with about 270 hp, and a 180-hp 2.4L four-cylinder powerplant.

 

Brenda Priddy & Company

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