Lincoln, Cadillac woo buyers with extras

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Auto dealers vie to distinguish their brands in a soft market
Robert Snell / The Detroit News

General Motors and Ford have dropped their fur-lined gloves and are engaging in one-upmanship to distinguish their luxury brands in a competitive segment of the market.

Ford Motor Co.'s Lincoln and General Motors Co.'s Cadillac are dangling free maintenance deals, a perk long offered by rival import BMW, but dropped by luxury automakers Lexus, Audi and Mercedes-Benz in recent years amid high costs.

The goal is not to boost sales during the short term in a soft luxury market, but to distinguish the premium domestic brands from their foreign rivals, raise brand awareness for Lincoln and Cadillac, and cultivate long-term repeat customers.

Their efforts come as the luxury car market has posted single-digit percentage gains and luxury sport utility sales have increased 30.7 percent in the first half of the year, despite a weak economy. Other vehicle segments, such as pickups and sport utility/crossovers, have notched double-digit increases this year, while the overall market has climbed 16.7 percent.

The domestic brand incentives sparked mixed reactions from dealers and industry analysts, who said free maintenance perks could help them compete with foreign rivals, but likely won't boost sales in the short term.

"It's a customer comfort sort of thing and a little bit of exclusivity," said auto analyst Joe Phillippi of AutoTrends Consulting in Short Hills, N.J. "You're not going to get this at a Chevy or Ford dealership. Someone's not going to buy a Cadillac or Lincoln because they think the free maintenance deal is better than the other guy's. But it's going to make them happy while owning the car."

While Cadillac and Lincoln lag Lexus, BMW and Mercedes in sales, the domestic brands were up 33.3 percent and 7.5 percent, respectively, through June, compared with the 9.4 percent increase in the overall luxury segment.

Dealers encouraged
Some dealers are encouraged and hope the perks trigger an increase in showroom traffic at a time when retail sales remain sluggish amid a weaker-than-expected recovery in the auto industry.

"It will make it a little easier to get customers in the door," said Justin Osen, a salesman at Don Gooley Cadillac in St. Clair Shores.

Last month, Lincoln unveiled a deal offering free scheduled maintenance for three years or 45,000 miles for those who buy or lease a new 2010 or 2011 Lincoln. Cadillac followed three days later, upping the deal to four years or 50,000 miles on 2011 models.

The Lincoln program, which expires Sept. 7, covers oil changes, tire rotations, routine inspections, engine belts, hoses and replacement of wiper blades and brake linings. The Cadillac offer will be standard on 2011 models.

Chrysler Group LLC doesn't have any luxury brands and declined to comment whether it has any similar perks for its lineup.

The Cadillac and Lincoln offers aren't the right tool to lure buyers or close sales, said Lincoln dealer Tammy Darvish, vice president of DARCARS Automotive Group in Silver Spring, Md.

"I don't think it will really have a lot of impact," she said. "People don't come in and buy a car because of free maintenance."

But the offer could convince a customer to stay loyal to a particular dealership and help the dealer build a relationship with the customer, Darvish said.

"I prefer to go into a relationship with longevity at the heart of it," she said. "Not just a quick 'come in and get a free oil change,' and we'll never see you again."

The timing of the offers coincides with automakers clearing out 2010 models and introducing new models. For Cadillac, the first vehicle eligible under the deal is the CTS Coupe, which reaches showrooms later this summer.

"It's a good time to offer these types of deals. They're being competitive at a time when people are luxury shopping," said Jessica Caldwell, a senior analyst at Edmunds.com.

"They need to prove themselves and offer a competitive product before they can compete with BMW or Mercedes," she added. "Right now, it's crucial for them to step up their game and break into the luxury market strongly."

Caldwell is encouraged that the luxury segment hasn't tanked along with the economy. Sales should improve later this summer and early fall as 2010 models are liquidated and 2011 models introduced, she said.

A mixed reception
The offers' varying lengths and coverage met with mixed reception among some analysts, however, who say Cadillac, in particular, didn't go far enough.

James Bell, executive market analyst for Kelley Blue Book, faulted Cadillac for failing to cover wear-and-tear items such as windshield wipers and brakes.

Cadillac's deal covers scheduled oil changes, tire rotations, engine and cabin air filters, and a multipoint vehicle inspection.

The offers should generate additional warranty and service profits for dealerships coping with sluggish retail sales, Bell said.

In addition, they should help ensure that owners take better care of leased and low-mileage vehicles, which ultimately will be resold by those same dealers, he said.

"Our bet says these programs become standard offerings from both U.S. manufacturers in the next year," Bell said.

The offers are not particularly novel -- many European brands have offered such perks for years -- but they do signal bids by Ford and GM to more aggressively pursue luxury segment leaders Mercedes and Lexus.

"The program is designed to raise satisfaction for owners by ensuring access to expert service," said Kurt McNeil, vice president of Cadillac sales and service. "It should lead to higher loyalty rates for dealers by establishing them as a valued resource for our customers."

The efforts also could increase margins for sales staff and ease the stress of buyers seeking freebies.

Each time Osen sells a Cadillac SRX, for example, his cut is $280 before taxes. But that amount shrinks after taxes and the $80 oil change that he routinely offers free to his customers.

The incentive also could help ensure leased vehicles are returned in better condition and easier to sell, Osen said.

"If the car gets fixed for free, what do they care?" Osen said. "I can't tell you how many lease turn-ins have the light on saying it needs an oil change."

Come check out all of the new Cadillacs at Bradshaw Cadillac in Greer SC. Shop 24/7 at www.BradshawGreer.com

New Cadillac sedan is proof of hard lessons GM’s learned

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The new CTS is efficient, striking and powerful.

Cadillac is a name full of history. It was the pride and joy of General Motors before years of mismanagement and lost sales turned what was once the world’s largest carmaker on its head. It was merely the final insult when so many cars bearing this quintessential American luxury “bigger-is-better” name were junked under the U.S. government’s cash-for-clunkers program.

The shock of the last few years obviously signaled the need for a new direction and philosophy at Cadillac, something other that just big luxury battleships, something efficient. The 2010 Cadillac CTS 3.0 that I tested recently provided a glimpse of that ongoing transformation.

When it was released in November last year, the 2010 Cadillac CTS 3.0 boasted the second-highest fuel efficiency among cars in its class being sold in Korea. It got 9.4 kilometers per liter (22 miles per gallon), second only to the Lexus ES350’s 9.8 kilometers per liter.

The Cadillac’s signature design, reminiscent of a spaceship or stealth fighter, is still the same in the CTS 3.0. Its straight lines conjure up a state-of-the-art image. The wide chrome grille between four rectangular headlamps adds to the dynamism of the vehicle. The number of imported cars is ever-increasing here, but during my test drive, the exotic look of the Cadillac CTS 3.0 still drew the attention of many pedestrians and other drivers.
 
Indeed, the luxurious air of the vehicle earned it a spot on several soap operas, almost always populated by fantastically wealthy characters. For example, Koo Jun-pyo, one of the four rich handsome boys in “Boys Over Flowers,” a KBS soap opera, drove the car.

And actually, the price tag is reasonable, compared to other luxury imports.

The 2010 CTS 3.0 Luxury, the cheaper model, goes for 47.8 million won ($38,400), compared to the Lexus ES 350’s 60 million won range. The 40 million won bracket is home instead to the BMW Mini Cooper JCW or Volkswagen Golf or Passat. The 2010 CTS 3.0 Performance, on the other hand, is priced at 56.6 million won.

The car promises 275 horsepower, the strongest among automobiles with engines between 3,000 and 4,000 cubic centimeters.  To test drive a CTS call or click www.BradshawGreer.com  In Greer SC.  We have the complete line 2010 Cadillac  in stock.  We can also help you with GMC Chevrolet and Buick.  864-879-7111.
By Moon Gwang-lip

Preview: 2011 Chevrolet Cruze

Another Great preview. This time on the all new Chevy Cruze by Clare Dear.  Bradshaw Chevy Buick GMC Cadillac will be your Cruze headquarters in the Upstate. Stop by to see the full line of Chevys at 14000 E Wade Hampton Blvd. Greer SC, 29651. Shop 24/7 at http://www.bradshawgreer.com/.

Milford. Mich. • The initial impression of Chevrolet’s new compact Cruze sedan is that it’s a mini-Malibu — and that opinion sits well with the bow-tie brass. Their intention is to deliver mid-sized comfort, dynamics and amenities, but at compact-sized pricing and fuel efficiency. And although pricing and final fuel numbers won’t be known for several months, this global product is right on target with its other objectives.

The Cruze is already available in 60 markets around the world, but North Americans won’t get their hands on it until the third quarter of this year. With the compact category evolving as the fastest-growing segment in the industry (it’s expected to be the second-largest in the United States by 2012), coupled with the consumer trend to downsize, the timing is right for this car. In fact, it is expected to be General Motors’ single largest volume small-car line globally.

During the preview at General Motors’ Milford proving grounds, Chevy executives described the Cruze as a “transformational” car for the brand, a product that will be sought after by consumers and will be better than competitive models such as the Honda Civic and Toyota Corolla. It’s expected to generate “huge volume for the brand” and, as a major player for GM globally, the team working on developing the North American edition is enduring unprecedented scrutiny.

As a result of that corporate focus, the Cruze is undergoing intensive testing here, even though it’s a model already on sale elsewhere. For example, although it has already earned five-star-equivalent crash ratings in several overseas markets, including Korea, China, India, Australia and Europe, the North American version is undergoing extensive additional evaluations at GM’s vehicle safety facility.

In addition to significant structure and system analysis, GM engineers have already written off 20 to 30 Cruzes in destruction (crash) tests. The body count went up by one during my visit, with test vehicle No. 17269 sacrificing itself in a side-impact crash by taking a midship hit from a 1,500-kilogram sled (with a Ford F-150 snout, no less) careening down the track at 50 kilometres an hour.

The dust had hardly settled when technicians were already scouring the remains, documenting the physical damage. From this untrained eye, the results were reassuring, with the side pillar making a limited intrusion into the cabin, while air bags helped minimize potential injuries to the occupants.

Obviously, safety is a key issue and the Cruze will be offered with a full suite of standard features, including four-wheel ABS (with brake-force distribution), electronic stability and traction controls, breakaway pedal assemblies, OnStar automatic crash notification and a segment-leading 10 air bags — two front, two knee, a pair of side curtains that protect both rows of seats, plus seat-mounted side-impact bags front and rear.

Chevrolet also wants the Cruze to be a class leader in ride, responsiveness and quietness. After doing several laps on the test circuit in several Cruze iterations, as well as a Civic and Corolla, it appears the car has attained that goal. The suspension, with MacPherson struts up front and a unique torsion beam and Watts-link arrangement in back, has a European feel (firm but compliant). The Cruze stayed well planted on bumpy sections of the track, while the Japanese competition skittered about.

Similarly, the Cruze had a noticeable advantage in the noise/vibration department. Its 18 acoustical treatments, including an acoustical laminated windshield with triple sealing at its base and hydraulic ride bushings, keep the cabin well isolated from road and wind noise.

The Cruze will be offered as a four-door sedan in four trim levels (LS, 1LT, 2LT and LTZ), with two suspension options (touring and the firmer sport package.) Two engine choices will be available — a 1.4-litre turbocharged Ecotec four-cylinder generating 138 horsepower at 4,900 rpm and 148 pound-feet of torque at a low 1,850 rpm, or a naturally aspirated 1.8L four-cylinder that pumps out the same horsepower (but at 6,300 rpm) and 123 lb-ft of torque at 3,800 rpm.
Transmission choices are a fully synchronized six-speed manual or the global 6T40 six-speed automatic. The gearing in the manual box has overdrive ratios in fourth, fifth and sixth to enhance fuel economy while the first three cogs are underdriven for better acceleration.

A special Eco model will be offered that uses the 1.4L turbo engine coupled with the six-speed manual. (A version using the automatic box is in the works for later introduction.) Chevy engineers set a target of 5.9 litres per 100 kilometres on the highway for this car, giving consumers the benefit of hybrid-like fuel efficiency without having to shell out the higher price tag such products command. However, it was made quite clear the Eco will not be a stripped model. Instead, huge efforts have been exerted to reduce weight and improve the car’s aerodynamics to achieve the target consumption rating.

Weight-reducing measures include replacing the car’s audio speakers with lighter units, saving about a kilogram. The weld flanges have been trimmed by a millimetre or two, while the Watts link in the rear suspension has been deleted (although the pending automatic version will have the setup.) The carpets are lighter than the standard Cruze models. The 17-inch tires, borrowed from the new Volt, are ultra-low-rolling resistant and they’re mounted on lighter alloy wheels.

To help the Eco model slip more smoothly through the air, the front fascia has been lowered and an air dam added. There’s also an underbody belly pan and shielding around the tire wells and rear axle, and a spoiler has been attached to the deck lid. Another aero initiative is the addition of shutters on the lower grille opening that close as the car’s speed increases. Overall, the Eco Cruze has a drag coefficient of 0.016 — the lowest in its class.

Chevy brass believe the Cruze is the right car at the right time. My initial impressions suggest they’re right.

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Preview: 2011 Buick Regal

I found this great preview article on the new 2011 Buick Regal by Scott Deveau. Get information on the new Regal at Bradshaw Chevrolet Buick GMC Cadillac 14000 E Wade Hampton Blvd Greer, SC 29651.  Shop 24/7 at http://www.bradshawgreer.com/.  Stop by today to see all of the new Buicks.

Frankfurt, Germany • The Nürburgring Nordschleife race track is widely held to be the most dangerous and difficult in the world. Not only has it been the cause of countless deaths, but its 73 turns over 21 kilometres are some of the most difficult to drive.

At first blush, it would seem the infamous track should be the last place to test a new Buick, screaming around curves at 100 kilometres an hour like a roller coaster but with no promise of remaining hinged. Yet the Nürburgring turned out to be an excellent test of Buick’s new 2011 Regal sport sedan. Not only did the base CXL model prove adept at handling the pounding delivered by the Nürburgring, but the 2.0-litre turbocharged version actually appeared built for just such a test.

There’s a very strong reason why. The Regal, which is sold as the Opel Insignia in Europe, underwent hundreds of thousands of hours of testing during its development at General Motors’ facilities at the Nürburgring.

GM makes it no secret the track was the “birthplace” of the Regal, and it will likely figure heavily in the car’s marketing. The result so far is a sleek, sexy sedan that can handle the switchbacks of the German countryside as smoothly as being opened up to 220 km/h on the autobahns.

The Regal is Buick’s most aggressive foray into redefining the embattled brand, carrying on where the LaCrosse and Enclave models made inroads.

For decades, Buick had aligned itself with the Greatest Generation — Second World War veterans and the like — creating vehicles GM would have described as “big, safe, quiet and comfortable.” But the limitations of that market have become abundantly clear, with the buying power of the subsequent Baby Boomer generation shifting to more youthful brands.

The Regal is not your grandfather’s Buick. The car was designed by a team of engineers and designers based at GM’s Opel facility in Germany, but incorporated the talents of the company’s counterparts in China and the United States to create the Buick’s truly global platform.

While the Regal is already sold in China and carries the Insignia name in Europe, the model destined for North America has more than 230 different parts, many due to regulatory demands (such as different headlights), but also aesthetics, including the car’s trademark waterfall grille. Interior designers from China put their stamp on the interior — the Regal’s cabin has a sexy, slick look that borrows from premium brands, including ice-blue lighting for the instruments, a thick-rimmed, leather-wrapped steering wheel and raised stitching in its leather seats.

But the most noticeable departure of the Regal’s previous incarnations comes in the sculpted and contoured exterior that draws heavily from tight European designs. Buick is attempting to position the Regal as a sport sedan and is taking aim at the likes of Acura’s TSX and the Volvo S60.

The Regal CXL (base price of $32,990) comes standard with a 182-horsepower 2.4L four-cylinder, the same engine as in the LaCrosse, as well as a six-speed automatic transmission and 18-inch wheels. Later this year, a sportier version with a 220-hp 2.0L direct-injected turbocharged four will be available, carrying a base price of $35,990.

The Regal is just a starting point for Buick as it looks to expand into other segments. The brand estimates its vehicles cover about 14% of the North American market. By 2012, it plans to have another, smaller crossover in its portfolio as well as another compact car, based on the Excelle it sells in China. This will expand its product portfolio to the point where it covers 42% of the North American market. By 2016, Buick wants to have enough models on the road that 60% of the market’s segments are covered. It’s through the continued introduction of products that GM hopes that it will finally be able to appeal to a younger demographic, as well.

The question remains whether Buick will be able to successfully reposition itself in the North American market, where it still carries a connotation for being the brand of choice among an older demographic. While acknowledging it might take a decade or more to entirely reposition the brand, GM believes that as more products are introduced into its lineup — such as the Regal  — the company will be able to reinvent itself for a younger clientele.

Only time will tell, but the Regal is certainly a step in the right direction.

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Could Chevrolet Equinox and GMC Terrain become hits for GM?

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USA Today DRIVEON

General Motors may have a rare -- and badly needed -- hit on hits hands with the Chevrolet Equinox and GMC Terrain.

The starkest evidence yet was GM's announcement Friday that it's increasing production of the two models at a Canadian assembly plant. Almost certainly, March sales figures are going to show healthy increases in sales of the two models. But GM passes on a little more positive word about the pair that underscore why the extra production was needed:

U.S. retail sales for Equinox in February rose 121% compared to February 2009, the eighth consecutive month of year-over-year retail sales increase.

Terrain was a new model introduced last year. So far in 2010, U.S. retail sales for Terrain are up 191 percent, compared to the same period last year for the Pontiac Torrent, the vehicle it replaced.
In February, Equinox averaged 16 days-to-turn,(industry parlance for how many days that vehicles linger on dealers' lots.) Terrain averaged 13 days-to-turn, as compared to 31 days for the overall compact SUV segment and 54 days industry average.

About half of all Equinox and Terrain sales come from non-GM trade-ins.
That last one, that so many sales are coming from buyers trading in other brands, is probably what makes GM CEO Ed Whitacre the happiest.

Check out the Equinox and the Terrain at Bradshaw Chevrolet Buick GMC Cadillac.

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Snyder's Fight 4 Air...One REVOLUTION at a Time!

Posted by Kristin Snyder's Fight 4 Air at 3/20/2010 11:59 PM Add Comment

Bradshaw Greer Ride

I love my Carolina Chevy dealers! Seriously, the are a great group of guys who are completely behind me for the Big Ride Across America. It really means the world to me to have their support. Before going to back to get my Masters full time, I had the pleasure of working for this group doing their marketing. This group was always one of my favorite groups to work with, and now I am honored to truly be representing them. During my training rides, I will be selecting Carolina Chevy Dealerships to start and end my rides. In doing this, I hope to expand the awareness of the American Lung Association throughout the Upstate South Carolina area and Western North Carolina, as well as give recognition and personal thank you's to each of the dealerships supporting me.

Today, I went to Bradshaw Chevrolet in Greer, SC for a 30 mile ride. I caught up with Wes Bradshaw prior to the ride to get some pics. I've never seen Bradshaw's dealership before - its impressive. Its probably one of the nicest I've seen in the Southeast. The Bradshaw dealerships are a family run business, and great down to earth people who truly care about their community and giving back to it, it's very inspiring. Here is a picture with Wes Bradshaw and myself prior to my ride. Wes keeps talking about getting a mountain bike...I'll have to keep on him about that!!


My route today was full of rolling hills. My legs were a little tight from yesterdays ride and climb up Paris Mountain, but overall felt good. I'm amazed that my chest feels so good. Usually after hard rides and climbs I'll have chest tightness and aches, but I haven't. It seems that the new asthma care plan my doctor has me on is working well.

-Kristin

Motor Trend Declares 'Buick is Back!'

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Buick graces the cover of the premier automotive magazine for the first time in 28 years
General Motors

DETROIT, March 8 -- /PRNewswire/ -- For the first time in 28 years, Buick dominates the cover of Motor Trend magazine, along with a headline declaring "Buick is Back!" The April issue of the premier automotive publication features photos of the Buick LaCrosse, Regal Turbo and Regal GS Concept and touts the growing momentum behind Buick.

The April 2010 edition of the magazine includes two Buick features; a drive review of the new 2011 Regal called "International Rescue" and "Trading Places," a comparison of the 2010 LaCrosse and the 2010 Lexus ES350, in which LaCrosse emerges the winner. The Century T-Type was the last Buick to grace cover of Motor Trend in August of 1982. The April issue of Motor Trend is now available on newsstands.

"We are thrilled to be honored with the placement of Buick models on the cover of Motor Trend," said John Schwegman, U.S. marketing vice president, Buick GMC. "The declaration that 'Buick is Back' attests to the transformation of the Buick brand and the buzz building for the LaCrosse and Regal. It shows that we are introducing cars that merit the attention of auto enthusiasts, including the editors of Motor Trend."

In his review of the 2011 Regal, Motor Trend Editor-in-Chief Angus Mackenzie says the Regal "is the first Buick in history with internationally chic sheetmetal and sophisticated road manners to match," and that it "is truly likely to appeal to young, affluent, trend-setting import buyers."

Available in dealerships this spring, the Regal is the next chapter in Buick's transformation. The vehicle features a dynamic driving experience with a standard 2.4L Ecotec direct injected engine rated at an estimated 182 horsepower (136 kW). Also available later this year is the 2.0L Ecotec turbocharged and direct injected engine rated at an estimated 220 horsepower (164 kW). Customers will also experience many advanced personal technologies, making it a premium sport sedan without the premium price. Pricing for the Regal starts at $26,995.

The LaCrosse, a luxury sedan completely redesigned for 2010, continues to attract buyers to Buick and the 2010 model is selling three times faster than its predecessor. The car has been praised for its exterior styling and luxurious interior and features a suite of advanced personal technologies and safety features that rate among the best in the industry. In addition to two fuel-saving V-6 engines, a new fuel-efficient, direct inject Ecotec 2.4L four-cylinder engine will be available with the LaCrosse CX model this spring. LaCrosse will be the only sedan in its segment with an available four cylinder engine.

About Buick

Buick is in the midst of a transformation that started with the Enclave luxury crossover and continues with the completely redesigned LaCrosse luxury sedan and Regal sport sedan. Buick is emerging as a modern, premium brand with vehicles characterized by sculpted designs, personal technologies, luxurious interiors and responsive performance. Future new sedans and crossovers are planned and will continue to expand Buick's portfolio both in North America and China. More information can be found at www.buick.com. To see the best Buick's in the Upstate visit www.BradhsawGreer.com

SOURCE General Motors

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For car buyers, lending market sees signs of thaw

For car buyers, four words mean the difference between going home in a new sedan or their old clunker: Your loan is approved.

They are being uttered more often these days, spurred by a trillion-dollar government program that provides guarantees when those loans are sold to investors. That is helping banks, credit unions and auto finance companies make auto loans at a quickening pace. And consumers are paying less to borrow. Interest rates have been at record lows since last December.

It's bit of good news for the auto industry in the U.S., where 2009 sales are expected to hit a 30-year low of around 10 million when figures are announced Tuesday. Partly because of loosening credit, industry analysts expect more than 1 million cars and light trucks to be sold in December, the best monthly performance since Cash for Clunkers in August.

Financial firms wrote 5.5 percent more car loans in the third quarter compared with the prior three months, Experian Automotive says. Fourth-quarter figures aren't yet available, but Jesse Toprak, vice president of the auto pricing tracker TrueCar Inc., says December saw an uptick in auto loan approvals for consumers with average or above-average credit as auto finance companies tried to clear out inventory.

Paul Taylor, chief economist for the National Auto Dealers Association, said used-car prices also have stabilized due to limited supply, making used-car loans more attractive to banks.

Still, Toprak said it could take another year or even longer for financial firms to trust consumers enough to return to normal levels for auto lending. It's also far from the freewheeling days of the credit boom. Third-quarter auto lending was down 30 percent from the same period in 2006, a year when U.S. car and light truck sales reached 16.5 million.

In the meantime, only those with good credit need apply.

A top-tier borrower — someone with a credit score between 720 and 850 — can get a 36-month auto loan with an average monthly rate of 5.74 percent, down from 6.65 percent a year ago, according to Informa Research Services, a financial research firm headquartered in Calabasas, Calif. On a $20,000 car loan, that's a savings of nearly $300 over three years.

But the cost of borrowing has risen for people in the bottom tier. A person with a score of 500 to 589 has seen the average rate climb to 18.56 percent from 16.47 percent a year ago. That translates to an extra $751.68 over 3 years. Banks are still nervous about loaning money to risky borrowers given high rates of unemployment, foreclosures and late payments since the financial crisis began.

"We used to have a subprime auto lending industry," says Dan Alpert, managing partner at Westwood Capital, an investment bank involved in the securitization business. "We don't have that anymore."

Although demand for autos has picked up from depths seen at the start of 2009, the lending machine really got moving thanks in large part to grease from the government's TALF — or Term Asset Backed Loan Facility — program. The program began last March and allows investors to borrow money from the Federal Reserve to buy the loans off lenders' books. This raises money and makes room for financial firms to write more loans.

There is evidence it's working. Financial institutions raised more than $19 billion by selling securities made of bundled auto loans in the third quarter last year. That's up nearly 60 percent from the second quarter and more than sixfold from the same period in 2008, according to the Securities Industry & Financial Markets Association.

TALF is scheduled to end in March 2010. Whether the market for securitized loans can stand on its own at that point depends on the state of the economy, lending experts say.

The concerns are similar to those in the housing market, where tax credits for first-time home buyers have helped prop up demand. But those credits expire April 30. And loan activity, in general, has been weak. According to the Federal Reserve, loans by the nation's 8,000 banks have fallen 8 percent to $6.7 trillion in the past year, and some analysts expect them to keep falling at least through next year.

But there are good signs. The proportion of loans — auto and other — requiring TALF support has declined steadily over the past several months and should continue to fall early this year as the market for securitized loans continues to improve, says Tom Deutsch, deputy executive director of the American Securitization Forum, an industry group that represents those who turn debt into bonds.

"It should be relatively easy to wean off TALF," he says.

In the meantime, the easier lending market has helped car buyers like Marissa Corbitt, who last month bought her first-ever car with a loan from Nissan's financing arm, NMAC.

Corbitt, a 24-year-old accountant from Chattanooga, Tenn., was able to negotiate the cost of her 2010 Rogue down several thousand dollars to about $20,500 after some incentives. She said she was then pleasantly surprised by the interest rate NMAC offered her for the crossover.

"Nissan was offering a 2.9 percent APR, so I got that," said Corbitt, whose top-tier credit score helped her case. "It's a good interest rate."

George Pipas, Ford Motor Co.'s top U.S. sales analyst, says the industry appears to have passed through its lowest point and is trending toward a slow recovery.

"The situation is still fragile," Pipas said. "You can't walk away from concerns about employment and income."

By DAN STRUMPF and DEE-ANN DURBIN
AP Auto Writer

For great a selection of Chevy's, Buick's, Cadillac's, and GMC's visit www.bradshawgreer.com

Bradshaw Automotive

Bradshaw Automotive began in 1979 when William Bradshaw and his wife, Annette, purchased a small Oldsmobile / Cadillac Dealership in Greer, South Carolina. Shortly after entering the automotive business as an office manager, William knew he wanted to become a dealer and his aim was to achieve that goal by the time he was thirty-years-old. At age twenty-nine, William and Annette sold their home, and using that equity and their small savings, along with the help of a financial investor / mentor, they purchased that small store in Greer. The stakes were high, but it was the opportunity of a lifetime. The risk, along with hard work, the contribution of many dedicated employees, and some good luck, paid off. That small store with fifteen employees has now grown to include eight dealerships and seven different franchises with almost four hundred employees.

As Bradshaw began to grow, a small Buick store was added in 1987 and in 1988, Chevrolet was acquired. Then came Acura, Honda, Saturn, and Infiniti. Additional franchises may be added as time and opportunity permits. While the organization has grown considerably, it is still a family run operation. William is active in the day-to-day operations of all of the dealerships and is aided now by his son, Wes Bradshaw, and his son-in-law, Bill Donovan. The growth and success of Bradshaw Automotive can be best explained by William's philosophy of treating employees and customers like family, and always respecting their needs.

William's automotive accomplishments are easy to measure in sales, but his total accomplishments are less obvious. His contributions to his community, both in time and financially, his leadership position with Greenville Tech Foundation, his selection as South Carolina Auto Dealer of the Year, his recognition as a Time Quality Dealer and a National Finalist for that award, and most recently his service with NADA (National Auto Dealers Association, an organization representing over 20,000 new car dealers across the nation) are all indications of his service to his community and his industry. In 2006, William served as National Chairman of NADA, furthering his service and impact on the automotive community.

Through it all, William still operates with those same philosophies that have served him, his employees, and you, his customers, very well.

Chevy Equinox, an example of GM's promise

If General Motors Co. is going to climb out of the hole, repay taxpayers and get on the move again, it needs more cars like the 2010 Chevy Equinox.

This compact SUV looks a little like a Lexus, but at $28,000 for the top-of-the-line LTZ model, it has a much lower base price. The style is American all the way, with plenty of chrome, a spacious leather interior, a six-speed automatic and a peppy-yet-gas-friendly four-cylinder engine.

"The bottom line is to give the customer astonishing amounts of value," said GM Vice Chairman Bob Lutz. "This looks and feels like a way more expensive car."

After one of the worst years in a century of domestic automotive manufacturing, GM is desperate for a win. Its biggest financial problems have been solved, courtesy of bankruptcy court and $53 billion in federal aid. Now America's No. 1 automaker has to perform.

Its financial results this week showed progress. The company -- your company, because it is after all 61 percent owned by U.S. taxpayers -- generated a surprising $3.3 billion in cash during a truncated third quarter. It floated plans to begin repaying its loans early, and raise billions through an initial public offering next year.

But even as it's hitting the gas pedal, it's leaving a trail of parts behind. Employment fell 17 percent in the previous 12 months, to 209,000 worldwide. The U.S. hourly work force took a brutal 25 percent whack. Between June and the end of next year, GM expects to shrink its dealer network by 1,900 -- a scary thought given the nation's rising jobless rate.

GM is trying to speed along the things that traditionally take it forever. "Things like sales programs, changes in direction in advertising or modifying the product plan," Lutz said. "Things that used to be put on a monthly schedule are now on a twice-weekly schedule. We don't drown ourselves in a sea of numbers. We don't need in-depth studies if we all agree this is what we're going to do."

And now that the government has invested so much, it wants results -- and not only financial results. Bailing out GM was supposed to save U.S. jobs by preserving a bedrock U.S. industry.

Yet GM's latest numbers suggest that it will be selling a lot more Wuling microvans through a joint venture in China than SUVs at home. Even the definition of an American car has gotten squishy: GM made its test model of the Equinox in a Canadian assembly plant, sourcing 30 percent of the parts from outside North America, including a South Korean transmission.

Further, the government vision of a small-car fleet with triple-digit fuel economy runs up against long-standing American preferences. The Equinox may be a "compact" SUV, but it's not compact in the same way a jumbo shrimp is still a shrimp.

It feels big, and though it advertises combined fuel economy of 26 miles per gallon -- outstanding for its class -- a cold-weather drive around the city unmasks its SUV heart.

GM says the Equinox can more than make it from Chicago to Kansas City, Mo., or roughly 600 miles, on a tank of gas, and do it in style. For GM, that alone represents a step toward survival.

To see the All New Equinox for your self; stop by Bradshaw Chevrolet, Cadillac, Buick, GMC, Pontiac in Greer. Visit anytime at http://www.bradshawgreer.com/.

2010 Cadillac CTS / CTS-V - 10Best Cars: Maybe the best American car ever made.

Now entering its third year as a 10Best winner, the Cadillac CTS plays at the top of a segment packed with some of the best cars in the automotive kingdom. Its interior is gorgeous, with a truly expensive feel, and it is more spacious inside than most of its similarly priced competition. Outside, the CTS combines uniform shapes and sharp angles that borrow from nobody. But the way the CTS drives is what we keep falling for year after year—its moves are as crisp as its exterior lines. The CTS manages to blend refinement, driving dynamics, comfort, and performance in a refreshing, even exhilarating, way that satisfies enthusiast drivers and luxury seekers simultaneously.

For 2010, the sedan is joined by a new Sport Wagon that maintains the connected and rewarding feel of the sedan but adds practicality and arguably an even more stylish appearance. And for those who aren't satisfied by the 304 horsepower of the 3.6-liter V-6, Cadillac still offers the CTS-V, a 556-hp supercharged beast that brawls eagerly with the very best sports sedans from Germany. More than a few of us consider the CTS-V to be the best American car ever made. Put that assertion aside, and the CTS-V is still a bargain alternative to the supersedans from Germany.

The CTS lineup retains its place on our list of favorite cars because it is that rare thing: an American car that doesn't have to make excuses. It's simply great. Stop by and test drive the 2010 CTS at Bradshaw Cadillac, Chevrolet, Buick, GMC, Pontiac today at 14000 Wad Hampton Bv. Greer, SC. Visit us 24/7 at http://www.bradshawgreer.com/.

With Senate Vote, Congress Refuels 'Clunkers' Program

By Dana Hedgpeth and Perry Bacon Jr.Washington Post Staff Writers Friday, August 7, 2009


The government's "Cash for Clunkers" program won a much-anticipated extension Thursday night as the Senate voted to give an additional $2 billion in funding to the popular initiative aimed at boosting stagnant auto sales.


The 60 to 37 vote follows House approval of a similar measure last week and appears to save the government plan from an unexpected early shutdown. The White House supports extending the program, and the new funds are predicted to last until Labor Day, Transportation Department officials have said.


"Cash for Clunkers" appeared to be in jeopardy last week just days after its official launch. Congress had appropriated $1 billion for the program, which offers vouchers worth up to $4,500 for drivers trading in their gas guzzlers for more fuel-efficient vehicles. But the program drew so much interest that it almost ran out of funds well before its expected expiration in November.

Transportation officials warned lawmakers late last week that the plan faced suspension.
In a statement Thursday night, President Obama praised the swift passage of the Senate bill, calling the program "a proven success." Obama could sign the bill as early as Friday.


The Senate vote came after lawmakers considered and rejected several amendments to the legislation, including one from Sen. Tom Coburn (R-Okla.) that would have allowed trade-ins to be donated to charity. The current bill requires that the cars be junked.


"Today's vote is a victory for families and businesses all across the nation," Sen. Debbie Stabenow (D-Mich.) said after the vote.


Seven of 40 Republicans crossed party lines to support the measure, while four Democrats voted against it. Auto dealers welcomed the prospect of additional money for the program, which has helped draw customers in droves.


"With the additional $2 billion, even more 'clunkers' will be taken off the road and replaced with more fuel-efficient vehicles," John McEleney, chairman of the National Automobile Dealers Association, said in a statement Thursday night. "Extending the 'clunkers' program benefits the environment and the economy. It's the best kind of stimulus."


Dealerships said they continued to see interest as the program ends its second week.AutoNation, one of the largest vehicle retailers in the country, said consumer traffic was up 35 percent over this time last year at its 225 dealerships in 15 states.


Since the program started, AutoNation has taken in 3,500 clunkers. To keep up with anticipated demand from the program, company executives ordered 45 percent more vehicles in the second quarter from major automakers, including Honda, Ford and Toyota.


"Cash for Clunkers is a huge success," said Marc Cannon, a senior vice president at AutoNation. "It is doing everything they said it would do: creating dealer traffic, clearing out inventory and getting more fuel-efficient cars on the road. This is what the American consumer and psyche needed."

On Wednesday, the Transportation Department published new figures showing that a total of 184,304 trades had consumed $775.2 million of the $1 billion originally appropriated. The Toyota Corolla is the best-selling new car under the clunker program. After the Corolla, the top sellers are the Ford Focus, Honda Civic and Toyota's Prius and Camry.


Of the new vehicles not manufactured by the Big Three, according to a preliminary analysis by the Transportation Department, "well over half" were made in United States. Of the trade-ins, more than 80 percent were trucks, the government said, with Ford's Explorer and F-150 pickup topping the list. The average miles per gallon of the new vehicles is 25.3, compared with the trade-ins that averaged 15.8 miles per gallon.


The program, however, has been plagued by troubles. Consumers were confused as to which cars qualified. Dealers said they have spent hours trying to log on to the government's Web sites to put in paperwork on the deals they completed. Some dealers said they ran into problems collecting government payments.


Transportation officials say they have resolved those issues by adding computer capacity and beefing up contracted staff to help run the program. Some auto analysts and economists are skeptical about the program's long-term impact.


"The Cash for Clunkers at this point is like one of those energy drinks," said Anthony Sabino, a professor of law and business at St. John's University in New York. "It gives you a short-term boost, then you crash and you fall back into the doldrums."

For your best Cash for Clunker deal, visit www.saturnofasheville.com, www.saturnofgreenvillesc.com, or www.saturnofsparatanburg.com for the fuel efficient cars from Saturn with a 5 year 100,000 mile powertrain warranty.

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• Congress OKs $2B refill of 'cash for clunkers' (huffingtonpost.com)

Mercedes, Lexus, and Saturn top ranking of U.S. dealerships

Todd Agostini is glad that luxury auto sales are down right now. The sales manager at the Jaguar dealership in Cherry Hill, N.J., Agostini says that Jags take a discerning eye to appreciate. And the heady times before the credit crunch were bringing in too much riff-raff--customers who didn't fully understand the brand or thecars themselves.

"We couldn't stand selling cars to people who really didn't have any business in our car," says Agostini. "Not that we didn't like the people at all, but it hurts the brand."

It sounds elitist, but Cherry Hill is the No. 17 Jaguar dealer in the country, and No. 1 for used Jaguar sales. The dealership has been able to remain profitable, so far, in an auto market with new-car sales down 36% from last year.

It's partly the cars that keeps customers coming, sure, but it's also the experience those customers have in the showroom. While General Motors ( GMGMQ.PK - news - people ) and Chrysler are closing roughly 1,100 and 800 dealerships nationwide, respectively (and surviving dealerships conjure ways to attract their customers), Jaguar joins several other luxury brands in shining through the recession's haze.

Mercedes-Benz, Lexus and Jaguar are the top three brands when it comes to consumer satisfaction at their dealerships. Along with Saturn and Land Rover, they round out the top five in our list of the best dealerships in the country.

Behind the Numbers To generate our list of the best car dealerships this year, we used data provided by Pied Piper Management, a California-based marketing firm. The numbers were collected between July 2008 and June 2009 using 3,531 anonymous shoppers at dealerships of every automotive brand, nationwide. The prospective car buyers were questioned on many aspects of their experiences at the dealerships, from whether a salesperson smiled to whether they were offered a brochure to whether they planned to purchase a vehicle from that particular showroom.

Pied Pier analysts then used that information to evaluate how effectively a dealership sells cars, to compare particular sales processes to industry benchmarks and to identify deficiencies in certain brands. Each brand was then given a score as a factor of overall sales effectiveness, with a higher score meaning better sales rates, as well as a greater likelihood of brand-exclusive dealerships.

Nine of the 10 highest-scoring brands on our list are in the luxury category; Saturn is the lone exception. Only one of the luxury brands, Cadillac, is from an American automaker.

Fran O'Hagan, president of Pied Piper, says luxury brands are more effective with auto sales because their salespeople earn higher commissions per sale and are willing and able to devote more time and attention to individual shoppers.

Longo Toyota, a dealership near Los Angeles, for instance, is the largest dealership in the U.S. It sells more than 15,000 new cars a year, and shoppers there know that if they want to buy a Camry, they can choose from multiple colors and options and drive one off the lot that day. It's all about the transaction, O'Hagan says.

It's not so with luxury dealerships. "They attract a different type of person," O'Hagan says. "The visit may take two or three times longer than at Longo, but the salesperson is happy to devote that time. People who want to make their living selling Jags or Mercedes tend to be a different type than the people who make their living selling something at a higher volume."

Indeed, Agostini says his typical buyer has already bought two or three vehicles at the Cherry

Hill dealership, and routinely invites salespeople to dinner or to week-long vacations at beach houses nearby.

Changing the Face of Car SalesThe industry average for sales effectiveness has increased dramatically across all types of dealerships, according to Pied Piper, thanks to an economy that forces salespeople to be more vigilant on the showroom floor, O'Hagan says.

The nature of what a salesperson must be in order to close a sale, especially in the luxury sector, has changed, too. While it's still true that shoppers buy from people they like, salespeople are facing a much more educated and sophisticated buying public.

It's not enough to know the product--they've got to convince a prospective buyer that a

Mercedes, say, is better than a Lexus, when so much specific, in-depth information is widely available for both types of cars.

"Product knowledge is dramatically less important than it used to be," O'Hagan says. "It's much more [a question of] 'What can the salesperson do for me?'"

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Government Launches ‘Cash-for-Clunkers’ Website

Government Launches ‘Cash-for-Clunkers’ Website
by Joshua Duval

The National Highway Traffic Safety Administration (NHTSA) launched the website for its ‘cash-for-clunkers’ incentive program yesterday, despite the continued uncertainty regarding how the program will be implemented.
After passing through both chambers in Congress, the cash-for-clunkers legislation was attached to a war-time spending bill and signed into law by President Barack Obama last Thursday. The government has appropriated $1 billion to the program, enough to replace about 250,000 clunkers with new vehicles.The website for the program, located at www.cars.gov, has been dubbed the “Car Allowance Rebate System.” It provides general information and links relevant to the program, but is short on specifics. A generalized flow chart of how the program will work confirms that the program will run through dealers, and implies that payments will be made directly to dealers. The diagram also says dealers will have to wait about ten days for NHTSA to approve transactions and issue the financial credit.The site also contains a link to the government’s fuel economy rating site, and a copy of the actual legislation that created the program.Analysts have been skeptical about how effective the program will be. Funding for the program was dramatically reduced, from an envisioned $4 billion (enough for about 1 million rebates) to one-fourth of that, and the current delay in finalizing the program’s details means it won’t take advantage of the typical summer buying rush. In addition, many believe the owners of cars that qualify for the program won’t be able to afford to buy new cars – even with the available $4500 rebate.