


Holden, known for it's massive sedans and massively appealing V8s, is on the small car bandwagon with its announcement to build a four-cylinder car in Australia to be sold alongside the Commodore. Holden currently has three four-cylinder cars, but they're comprised of rebadged Daewoo's and an Opel, and haven't set the Outback on fire. The new compact car will be based on the Chevrolet Cruze, but with a body designed by Holden, and will offer both four-pot gas and diesel options. Down the line, Holden said it will investigate ethanol-capable engines and start-stop technology for its new Corolla fighter.
Holden has a few reasons to make such a move right now, changing consumer tastes being one of the most important. The Australian government has also pledged $6 billion (AUD) to its local auto industry, which has allowed Holden to carry out its plans with less concern about the bottom line. Holden will spend $200 million (AUD) and the government will provide another $179 million (AUD). The new compact sedan will have to stave off competition from Toyota, as well as the parade of cheap Thai cars that have been flowing into Australia after the two countries concluded a free trade agreement. The new Holden will face-off against the Ford Focus and Toyota Corolla when production begins in 2011.


We knew the auto industry was in bad shape and it didn't take long to extend its poisoned-tipped tentacles into the world's automotive juggernaut. In August came news that the Japanese automaker had cut its sales forecast for 2008 from 10.4 million vehicles to 9.7 million. A Japanese newspaper, though, says it expects Toyota to only sell 8.3 million for the year. If true, it would be the company's first year over year sales decline in a decade. The Nikkei Daily (subscription required) doesn't back up its prediction with any sources, but we'll know how close to the truth they get come in January when Toyota announces official sales numbers.


Vehicle owners behind in their payments and faced with mounting debts have begun taking matches to their cars and trucks in an effort to stop their payments and collect the insurance settlements. Unfortunately, in most cases the attempts backfire (pun intended). According to police, when delinquencies on auto loans rise, owner-involved arson jumps as well. Between 2004 and 2007, "potential owner give-ups" (most of which involve torched vehicles) nearly doubled nationally. Distinguishing between an actual theft-and-burn and an owner-induced arson is the job of investigators who often find such cases easy to crack. For example, recently a pair of Chrysler Pacificas were burned and it just so happens that that particular model was only reported stolen 98 times across the nation this year – the so-called "theft" raised more than a few eyebrows at headquarters. In another case, a Yukon owner claimed his truck was stolen and burned overnight. Police knew that the thief likely had the keys (Yukons are especially difficult to hot-wire) so their focus was immediately turned towards the owner who had conveniently left "two cans of gasoline" in the back. In yet another case, the late-paying owners had significantly lowered their deductible just days before the reported theft. Over their heads in debt, fraudulent owners choose arson because the burned-out vehicle shells are often found immediately by authorities, and the insurance companies settle and disburse payments quickly. That is, assuming they haven't fallen behind on their insurance bills as well!
Light-vehicle sales in the U.S. are expected to continue their decline in 2009. Global Insight, a firm that has been forecasting sales since the 1960s, is predicting sales of 13.4 million units next year. That figure is slightly down from the 13.8 million units automakers are expected to sell in 2008. (For comparison to recent years, 16.1 million vehicles sold in 2007 and 16.5 million units sold in 2006.) Global Insight makes note of the current U.S. credit crisis and the worsening global economy, citing the worldwide financial situation is more detrimental to auto sales than oil at $200-a-barrel. When oil is high, at least the countries benefiting from the oil profits continue to purchase cars – unlike today. While analysts differ on when we may see a turnaround, the firm feels it could take until 2013 for sales to recover to levels seen just a few years ago.
