Given the state of the market, the Ford Motor Company is on a bit of a roll right now. The Blue Oval posted an 11% decline in volume for June versus the same month in 2008; a far better number than nearly every competitor from Japan or Detroit. Ford also flat-out dominated the market in the Great White North, as the Dearborn, MI-based automaker ranked number one in sales volume for the first time in 50 years.

Ford outpaced perennial market leader General Motors by a substantial (for Canada) 5,000 units. Ford posted 27,408 sales for the month; a 24.6% increase over June 2008. Toyota and Honda also were in the rear view mirror, as the Japanese stalwarts managed sales declines of 17%. Chrysler was a distant fifth place, as bankruptcy and an outdated product lineup conspired to sink sales by 58% verses June 2008. Overall sales in Canada were down 13% on the month.

Ford's increase in sales was due in part to a surprising 41% increase in CUV and SUV sales. The F-150 also posted a healthy 59% increase, with Ford's Edge was up 23%.

[Source: London Free Press]

We've been hearing Chinese officials say for quite some time now that there are far too many automakers in the country for a healthy market in the long-term, but we didn't realize until today just how out-of-hand it may be. According to state-run Chinese news agency Xinhua, China has seen an unprecedented 89 new automobile launches so far this year.

That's surely a big number, but it doesn't really hit home until you consider that 89 vehicles in the first half of 2009 averages out to a new or heavily revised vehicle appearing in China once every two days. Of those new designs, 73 were cars, nine were SUVs, six were MPVs and – in contrast to typical American vehicle launches over the same period – only one was a crossover.

As you're surely aware, 2009 is only half over, and there are reportedly some 50 new vehicles still slated for introduction before the end of the year, equaling about 140 new models introduced in 2009. The good news, at least as far the bottom line goes, is that the new releases have translated into sales. The 4.96 million vehicles sold between January and May of this year represent a 14.29-percent increase over the same period in 2008. Still, considering the glut of new models hitting the market, one has to figure that a goodly number of those vehicles will go begging.



[Source: Gasgoo]

While the National Highway Traffic Safety Administration doesn't plan to release its final rules and regulations for the Car Allowance Rebate System (CARS), otherwise known as Cash-for-Clunkers program, until July 23rd, Hyundai has decided that its customers don't have to wait. Alexandria Hyundai in Alexandria, VA has already accepted the first trade-in and doled out its first rebate. The clunker is a 15-mpg 1995 Ford Explorer, and Katherine Michon of Arlington, VA traded it in for a $4,500 credit on a brand new 26-mpg Hyundai Elantra Touring.

How can Hyundai get away with accepting clunkers early? The automaker is giving dealers short-term cash advances to cover the cost of its rebates until the CARS program officially kicks off later this month. Hyundai has 13 models with particular engine combinations that qualify for CARS, and the NHTSA has already confirmed that transactions on or after July 1, 2009 are eligible.

This could be a brilliant move on Hyundai's part, since its own internal research shows that 11 percent of car shoppers have delayed their purchase to take advantage of the rebates. If Hyundai is the only game in town that's accepting trade-ins and giving rebates early, it could steal a few sales away from other brands that are waiting patiently for the program to officially begin.

On the other hand, the NHTSA warns on the CARS official website that "interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued." By that time, however, you'll be driving around in a new car and getting reimbursed for the rebate will by Hyundai's problem.



[Source: Hyundai]

General Motors, Ford, Chrysler, Honda and everyone else may not think there is much of a market for mainstream diesel vehicles in the United States, but Volkswagen would beg to differ. Since it launched its new generation diesels last fall in the Jetta and earlier this year in the Touareg, they have been selling like hotcakes with June being its best month yet. Last month was the best sales month to date for the Sportwagen with 1,982 sales and a whopping 81% of those were equipped with the 2.0-liter TDI four-cylinder.

Among the 8,431 Jetta sedans sold in June, 40% were diesel powered. And while the Touareg followed most other SUVs with a 41% overall decline to only 330 units in June, 29% of those had the 3.0-liter V6 TDI engine. Rabbit sales were down 69% in June, but a redesigned Golf is arriving in September, including a TDI – and if fuel prices keep climbing through the summer, it could see a huge sales spike as well.



[Source: Volkswagen]

Suzuki is getting in on the free gas bandwagon that Hyundai kicked off this year by launching a "Free Gas for Summer" promotion on all SX4s sold between now and August 31st. Of course, it pays to read the fine print – what the purchaser really gets is a pre-paid credit card loaded up with $270 for the SX4 Sedan or $290 for the slightly less fuel efficient SX4 Crossover.

Whether or not this incentive is really "free gas for summer" depends on how much you plan to drive over the next three months or so. Still, it's a relatively pain-free way for Suzuki to advertise "Free Gas!" and it's still a few hundred bucks off the running costs of the car.

Along with the aforementioned sales promotion, Suzuki has also announced that it's offering $2,000 in customer cash off the price of any SX4 sold with a manual transmission, which we found to be a willing partner in eking out the most performance from the little runabout and much more desirable than the four-speed slushbox when we tested it last year.



Photos Copyright ©2008 Jeremy Korzeniewski / Weblogs, Inc.

Despite having fewer model variations on the market, pent up demand for the 2010 Chevrolet Camaro appears to have been enough to send the bad Bowtie past Ford's redone Mustang in June. Sales figures for the month are beginning to trickle in today, and General Motors says it shifted 9,320 Camaro units last month, as compared to the Blue Oval's 7,632 Mustangs.

Whether Chevrolet's victory will be sustainable over the long haul remains to be seen, but as The General has a backlog of 10,000 sold orders to fill (equating to less than a seven day supply), the streak is likely to continue for at least the next few months. Presently, GM offers just two main Camaro models, the V6 RS and the V8-powered SS, while the Ford Mustang has more bodystyles and trims than you can shake a stick at (arguably making the Camaro's achievement seemingly that much more impressive).

Sales of the third leg of 2009's pony car table, the Dodge Challenger, trail far behind, with just 1,369 units cleared last month.

As the industry heads into the dog days of summer, it looks like America's renewed pony car war is just heating up. Who will take the crown for the whole year? Sit tight, muscle fans.



Photos Copyright ©2009 Alex Nunez / Weblogs, Inc.


Photos Copyright ©2008 Drew Phillips / Weblogs, Inc.

A new study by RL Polk & Co. shows that the kind of car you drive is tied to the state you live in, and whether that state is traditionally Republican or Democrat-leaning. The study shows that 36 of the 50 United States tie closely to political lines. Red states (Republican) typically buy domestic, while blue states (Democrat) typically skew import.

In states where Democrats won three of the past four elections, imports consist of as much as 60% of the market, while Republican strongholds favor domestics by up to 74%. The paradigm changes slightly in traditionally Democrat states that also produce a lot of cars and trucks. States like Wisconsin and Michigan still prefer domestic products. The three states that have been split over the past four elections also prefer domestic vehicles.

The exact reason for the phenomenon isn't clear, but a quick view of the political map shows that traditional Democrat strongholds are on the east and west coast, where imports are preferred. The center of the country traditionally favors Republicans, especially in the South. That's pickup truck country, and Ford, GM and Chrysler dominate the segment.

[Source: Washington Times | Image: Infovis.net]

June auto sales will no doubt be ugly. In all likelihood, the sixth month of the year will be the 24th month in the past 25 to see a year-over-year sales decline. June could also bring a bit of good news, though, as an Automotive News poll of nine different industry analysts shows that sales may hit an annualized rate of 10 million, up from the 9.1-9.9 levels of previous months this year.

The slight pickup in June sales verses May numbers would suggest that the market for new cars and trucks has likely bottomed out. Edmunds predicts that the automaker likely to gain much share in June is Ford, as the car research site predicts sales that its sales are down only 15.6%. The next smallest decline is predicted to be Nissan at 24.2%, and then Toyota, Honda, GM, and Chrysler are all guesstimated to be between 28-32%. The June 2009 sales figures will likely be a bit skewed for Honda, though, as the Japanese automaker had an unusually strong June 2008 because of a big-time push for fuel efficient vehicles due to $4 per gallon gas.

Deutsche Bank analyst Rod Lache has told Automotive News that the second half of the year could see even more of an upward trend due to the freshly minted Cash-for-Clunkers law. Lache says sales could hit 11 million on an annualized rate, though it's likely that most people driving junkers can't afford a new car payment along with increased insurance rates.

[Source: Automotive News subs req'd | Image: Karen Bleier/AFP/Getty]

When President Obama signed the Cash-for-Clunkers bill into law back on June 24, the Transportation Department was given 30 days to set the official rules and regulations for the program that will put the plan into motion. According to the official CARS (Car Allowance Rebate System) site, NHTSA intends to get the deed done a day early by July 23. Although the paper the President signed stipulated that consumers may be eligible for the program starting on Wednesday, July 1, the Transportation Department is warning dealers not the jump the gun:

Interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved. If a dealer chooses to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule.

Dealerships who violate the official rules and regulations may be subject to fines of up to $15,000. Still have questions? Click here to see the complete list of FAQs straight from the NHTSA.

[Source: CARS | Image: kudzuplanet under C.C. 2.0]

Life is hard at the top, whether that precipice happens to be at the zenith of the overall sales chart or of a specific market niche, such as Lexus' position as the best-selling luxury automaker in the United States. Toyota's posh brand has held the top spot since the year 2000, with BMW perpetually trailing in second place. Could 2009 finally be the year that BMW breaks through to number one?

So far this year, Automotive News is reporting that BMW's 76,819 total sales in the States puts the German brand slightly ahead of Lexus, which has moved a total of 73,186 units thus far in '09. Both brands are down somewhat from 2008, though BMW's 30.5% decline is not quite as severe as Lexus' 37.2% fall. Neither automaker is interested in boasting of its successes in this market, though BMW will gladly accept the extra market share. Speaking to Automotive News, Jan Ehlen, a spokesman for BMW of North America, said:

This year's emphasis is on maintaining our market share and even growing our share a bit. If this results in remaining in the top spot of the premium market, that would be a nice bonus.

[Source: Automotive News]