Economic crisis affecting all automakers
It will be a while before there is light at the end of the tunnel, as the economic crisis gets worse by the day. Here is a quick update on all the car manufacturers that are heavily affected by the current problems, as much as local dealers like to hide these facts.
General Motors: In his first ever good deed, President Bush has approved US$ 17.4 billion in low-interest loans for GM and Chrysler. The money will be taken from the US$ 700 billion bailout fund that was created to save greedy American banks and financial institutions. GM expects to their upcoming US$ 40,000 Volt electric car and new models to save them, among other measures.
Chrysler: They are in the worst position, expecting to run out of cash in less than two months, so a share of the US$ 17.4 billion loan is a temporary blessing for them. Currently, they’ve shut down plants for a month. Their future plans include hybrid and electric versions of their current models. Interestingly, petrol is cheaper than ever right now, even as desperate OPEC output cuts have been implemented. So we doubt many Americans care about hybrids any more.
Ford: So far, they campaigned for the loan, but chose not to take a share of the money, as they still have lots of reserve cash for now. Their plans also seem to include a bunch of eco-friendlier cars, including a new Fusion hybrid and the Explorer becoming a crossover. The new Mustang is just an image car.
Toyota: The largest carmaker in the world will suffer its first loss in 71 years in 2008. A combination of events, including a stronger yen and slowing sales, will now force them to cut production. Some say the Lexus LF-A supercar is cancelled too.
Honda: No news about any losses, but Honda has pulled out of Formula One and other racing programs. The 2010 Honda NSX has also been cancelled, even though it was almost ready.
BMW: The German company admitted to a 25% drop in sales and have now cut back production. Their overpriced cars are now being offered with huge discounts at local dealers. We believe they should kill the ugly X6 and 1-Series models to save the rest.
Land Rover: They’ve cancelled their three-week G4 Challenge off-road competition, and have also asked the British government for a £ 1 billion loan to keep going.
Subaru: The company that built its reputation on rally-racing, has pulled out of the World Rally Championship.
Nissan: They seem to be fine for now, with new models such as the 370Z and the Patrol in the pipeline. However, they are cancelling the Armada and its Infiniti cousin due to slow sales.
Volkswagen: Porsche kept buying up VW shares a little bit at a time, with opposition from its current owners. Shareholders probably wish they’d dumped the entire company on Porsche earlier, because the sportscar maker has stopped its takeover bid in view of falling VW sales.
All the other smaller automakers are quietly taking a beating, under the shadow of larger manufacturers. More motorsports programs with probably get cancelled. A side-effect of this crisis is that various interesting foreign-market models are now being dumped in the GCC market, and overall car prices are coming down to reasonable levels.
Comments
Faisal
have the car prices been reduced in UAE??
BJD(Boris)
No they shouldn’t discontinue the menacing X6, they should discontinue the ugly X3. I think sales in UAE are going pretty well. Kia announced a 60% profit over 2007. anyway, not important. I’m happy to see atleast Ford’s doing better than the other two. btw, I saw a soul in the service centre.
Murf
beamer prices have fallen, and also chrysler are giving big discounts on the 2008 models..the japanese brands are still being stubborn but they probably will reduce in the next 2-3 months.
Mashfique Hussain Chowdhury
The BMW 5-Series now starts at Dhs 147k instead of 190k. Mitsubishi sent me an email saying Evo prices are now 10k lower. Nissan is offering free insurance. And I hear Camry now starts at 71k, down at least 5k.
vivek
well…the toyota’s are still too stubborn…a full option Prado still goes for 174,000 dhs and 162,000 (widout navigation), full option fortuner and fj is for 135,000…
Faisal
when did a prado get navigation???
Murf
12 grand more for navigation, RIP OFF ! But i guess no one takes it anyway.. 🙄
BJD(Boris)
you get GPS screens in plugins electronix for less than 800 AED.
assassin
that 12k you pay extra for navigation system, remote engine starter and high gloss alloy wheels.
and i heared the new patrol shape is refused, and nissan is building another shape now. Is that true?
RS
did the BMW M series even decrease?
Jakomo
Can anybody tell me what are the prices of new 7 series?
Any idea if Audi decreased
Zao
most of the banks in UAE have stopped givin car loans….before we could get loan with 0% down payment from most of the banks if there was a salary transfer…now many banks are askin for 30% down payment…
thatsit(mohamad)
assassin… i think you are getting scared from now…who said they cancelled the shape of the patrol??? this shape kills the shape of the LC. and dont look at the pics and say its level is lower than the old one…am telling you the new patrol is stronger than the old one in off roading…at least it still have those diff locks for front and rear axels…did you know that they were testing the patrol in desert (in UAE) since around a year…and they also have the old patrol for comparison. am telling you the new trany and engine play a major part in off roading ability….lets just wait and see…this car will eat the roads once they launch it…like the altima (as you can see in th roads)..
RayD
Yup,the Japs are being stubborn about their prices. They’d rather give away a few freebies(which don’t make a dent in their profit) than reduce the prices of their cars.
I’ve said it before and i’ll say it again – the Toyota/Honda dealers really know how to rip people off. At the same time,it’s so foolish that people actually play into their hands by buying their cars at higher prices.
assassin
thatsit(mohamad), good to hear that, and what do you mean of saying front and rear diff-locks. i think you mean front and rear diffs. because nowadays you can’t find any suv that got front and rear diff-locks bottoms exept in jeep wrangler as i think.
BJD(Boris)
he did say its better in off-roading so why won’t it have rear diff-locks? looking at the ground clearance in the pix which assassin posted, I wouldn’t be surprised if it had adjustable suspension like Mohave.
spyke
Ahh i see the Patrol is still the hot topic..Yeh but assassin many auto experts are saying that the “off roading experts at nissan have finished the patrol to compete with the current LC200,its biggest competitor” and its not only the off road ability of the vehicle but also the on road comfort. The interior pictures didnt show much but you could see that its going to be quite plush..
vivek
@Faisal: yea, the Prado does come with a navigation..but i dont really knw from whn it started coming with nav 🙂
@Murf: well..who knows?! the crowd in uae are sooo insane!! People b’lieve so much in the resale value of the Toyotas that even if the base Prado is priced at 200K, thre will be buyers for it!!.What say??.I say, Mega CRAP! 😆
@Boris: 800 dhs for gps..thats what smart people who are not obsessed with the “resale theory” think!
@RayD: dont waste your energy..no one will listen; most people thse days are born with their brains stuffed up sumwhre else 😆 😆 ..
and guys..interestingly enough, Ford has upped the base price for the Explorer to 110K! It was 105K before..however, the option list for the base model has grown up slightly too..and the top spec Explorer (Eddie Bauer) is priced at 135K..whats in their minds?? 😐
spyke
Why would they increase the price of the base explorer at a time when automakers are already finding it hard to sell their vehicles??Dont understand..may be their trying to make some profit here in the middle east where it still is a lil better compared to say the US..
spyke
Ohh and Vivek the next generation Explorer is going to be a cross over like Mash said!! based on the Ford Five hundred platform..So its not going to be as capable off road as in current form. Some people say its keeping with the times but Ford already has so many cross overs already, with the Ford Edge, freestyle and Escape!!so its gonna be quite crowded when the explorer also joins that line up..
Ace
Any news on the new Mazda Ultra ? Anyone been to their new showroom on Sheikh Zee ?
I’m watching IN GEAR on City 7 TV, they’re covering the AbuDhabi Motor Show , Adam Kechil the host from liverpoool in the youuu Kkkk (with the whole accent ) is sooo full of himself…he claims he’s the most knowledgable drive in the region. He’s reviewed the Ford Mondeo and Nissan XTerra…he says you should read the manual before driving the XTerra. He talks to camels in the desert asking them if they wanna join him for a drive. Some host he is.
Its worth to watch this monkeyman’s attempt to review, highly recommended if anyone can catch a re-run.
BJD(Boris)
the Ultra was launched last friday and nothing much to say about it besides the 3.7L V6 engine, made in US and much larger than the jap veresion. not to mention, I hate it.
Mashfique Hussain Chowdhury
I’ve never seen the City7 show, although I’ve seen the guy at events. We hang in the same non-celebrity circles, and we both remain unrecognised in public. Haha!
Faisal
I like the idea of the City7 show where they invite viewers with cool cars to have there car reviewed….
And I think Mazda missed a big opportunity to show off the 6 ultra at the Abu Dhabi show…
BJD(Boris)
they didn’t miss much. they are advertising well any way. they advertise on Radio 2.
spyke
Lol yeh i find the guy funny as well, in an entertaining sort of way, not like jeremy clarkson or nything but hes ok..after you get past the accent..lol..yeh the city 7 programme is on every week on sundays at 9.00pm. dont know when the re run is..
vivek
@Spyke: well yea, i too heard abt the Explorer going to take up the shape of a crossover..the concept looks amazing..but that jus leaves me wondering wht the Fords have in store for those who want to wander into the dunes! The Expedition is humungous and the Sport-trac looks like its been forcefully beaten down to take the shape of a pickup truck! In this land of off road wonders, if Ford replaces the current off-road capable Explorer with a useless crossover, they are stupids! Or else, they should bring in a truck that is a replacement and improvement over the current Explorer. A more powerful engine was the only thing which the current Explorer lacked anyway!
@Boris: you forgot the 2 extra Bose surround speakers in the Ultra 😆 😆 ..however, compared to the Accord v6, the ultra’s price is still somewht justifiable.
spyke
If i was given a choice i would choose the ultra over any accord any day!! its got better styling and way more features!!
RayD
Yup gents! The Ultra is out. It’s far better than the Jap crap were getting and the price,as my good friend Vivek has stated,is justifiable. By the way,the CX-7 will be launching soon 🙂
As for City7,i’ve never seen the show…who cares…
Salem
The biggest rip off ever is the Hyundia genisis cost 170,000 another is the Nissan GTR 450K compared to American 260K.
The BMW here just reduced to a reasonable price is not the wow factor discount price. here the BMW is already selling for 100k difference in some model compared to USA.
Have anyone heard of the Dodge Charger lifetime warranty? impressive warranty
BJD(Boris)
Genesis gets some more features compared to the american market like ummm… grille mounted camera and some others. but the price isn’t as high as many other of its rivals like the 5-series and E-class.
Salem
Boris the price is pretty high for Korean car which want more buyers. The ad says LS feature GS size and IS price. If it doesnt have the price edge with it competition it is worthless IMO
The gensis with 170k is similar to the 5series and E-class.
525 is about 185K and E230 is about 190K
if you pay abit for BMW you get the 530 for 210K.
BJD(Boris)
wait a min. the genesis start price is 130 000 AED and you get a 3.8L V6 and the 5series starts at [according to DA Buyers guide] at 140 000 AED and you get a 2.0L for that. top end price for Genesis is 170 000 AED and for now thats still the V6 but getting the 6 cyl in the 5series will cost above 200 000 AED. maybe the V8 Genesis coming soon will take the price closer to 200 000 AED but for 5series adding a V8 is gonna cost from 250-300 thousand AED.
but all we are comparing here are engines and it sucks this way. There is lots more to compare but I am not very knowledged about the 5series options…
Murf
its a pity, genesis does seem to be a great car with great features. Price maybe should’ve been much less if it wanted a market share in this merc, beamer and lexus dominated region.
BJD(Boris)
maybe you have a point. I’ve seen plenty of Mohaves [plenty for an entry level SUV] but not even ONE genesis on the road. I saw one at the showroom and it really deserves a look. maybe people are waiting for the V8
Salem
I just heard the price of the BMW 5series which states 147K is not in Abu Dhabi show room, which still have the older price of about 190K. But also it have the weakest ever BMW 5 series option.
As for the Genesis it should be cheaper than the GS300 I would take a look at it if the price was about 140K or maybe abit more but no way 170K.
To everyone please check other dealers and showrooms world wide so you have a better idea of the product and wonder what makes out car much more expensive than other place around the world. We have to work as a group in this matter as car consumers so we get a better deal and service from the dealers
BJD(Boris)
Al Majid knows that UAE like luxury vehicles and SUVs and thats why Mohave and Genesis in UAE get more options than any other market outside Korea and thus they’re highest price is higher than in other places. And 170 000 AED is the top-of-range price of genesis. it starts at 30-40 thousand AED.
BJD(Boris)
I meant 130-140 thousand AED
Faisal
Shouldn’t the Genesis be competing with the g37, mustang, camaro, a4 coupe, 330ci etc….???
BJD(Boris)
we are talkign about the sedan at the mo. I don’t think the genesis coupe is out yet and no announcements of prices so well…
Faisal
ohk…
Salem
we getting the v6 gensis in America with the same price you get a fully loaded v8.
BJD(Boris)
yeah, so its cheaper here. but how would you be sure of the price of the V8 Genesis? has it come to UAE yet?
Abbood
Nissan started special offers in Jeddah for 2008 models; i.e. Murano at SAR 114k SAR down from SAR 130k. Generally speaking, I don’t think this is a good time to buy a new car. The dealers are still making high margins and as long as demand continues to slow down, prices will continue to drop. I expect aggressive mid-year offers and discounts to achieve mid year targets and even more aggressive offers at the end of the year. Also, GM and Ford will come back with a vengeance with their new 2009 and 2010 models.
Abbood
By the way, there will be a car show in Jeddah Harthy Center from next Saturday the 27th to Tuesday. It will have all the 2009 models including Nissan, Toyota, Honda, Hyundai, GM, Ford, Audi, BMW, etc.
Salem
if the v6 is 170K here I dont know what the price of the V8 but if you check the offical usa website which is abit standard through whole of the USA starting $32,250 but say you want it fully loaded and add some to it just incase $42,000 the v8 fully loaded using Yahoo! currancy conversation the price doesnt reach 150K dhs. The is a rip off compared to our starting model of 170K v6 dont you think Boris.
But there are so many dealer so it natural they have it cheaper compared to one dealer here but the price of the v8 in USA more 20K cheaper than here is a rip-off
here is the price in USA:
http://www.hyundaiusa.com/shoppingtools/byo/model.aspx
BJD(Boris)
starting price for V6 is 130K btw but what you have revealed is quiet interesting. its tru that UAE gets more features than US but I wonder if its really that much more features to show a differnce like this.
Carol Switz
Hi I havent been in the region long and i was reading the comments about the In Gear show. Actually I enjoy it because he talks to cammels and makes it ointeresting for me (who knows nothing) as well as my husband who is a desert instructor. My husband says Kechil is damn good when he is in the desert. As for telling everyone he is the best, I think you have miss heard what he said. He is a thorn in the side of driver training companies as he has a degree in the phsychology of driver training and he said on a radio interview he only does the show so he can insert the road safety segments. So actually he has never said he is the best reviewer or presenter but he is having a go at authority by saying he is the most qualified road safety campaigner. I think thats the reason that Volvo took hiom on board for their City Safety campaign.
Mashfique Hussain Chowdhury
He’s in a Volvo ad? I just asked Volvo for ads. They said they have no money for ads.
assassin
Evo now is 10k cheaper.
http://www.alhabtoor-motors.com/mitsubishi/sedan/evolution/main.htm
eazy_mas
Cool just keep it for the right time to buy it 😉
now for the other dealers. I mostly hope the service is getting better because I will take car dealer into consideration.