Daimler (DAI) has started offering discounts for its micro-hybrid car, smart fortwo, in the U.S. in order to recoup its depressed sales. In the third quarter, Penske Automotive Group (PAG), which owns distribution entity for the smart fortwo in the U.S. through its 75 smart dealerships, saw a decline in smart USA wholesale to 3,401 units from 6,683 units in the prior-year quarter.   Last month, smart car’s sales fell more than two-thirds to 661 units in the U.S. It was also the lowest clocked for any month since the car’s debut in early last year.   Smart fortwo – the world’s most fuel-efficient and lowest CO2 emitting car – raised eyebrows in the U.S. with a fuel consumption tag of 36 miles per gallon at the time of its launch when petrol price hovered around $4 per gallon. However, it lost importance over time when the ...

Penske Automotive (PAG) posted a net income of $30.9 million or 34 cents per share from continuing operations in the third quarter. With this, the Michigan-based second leading automotive retailer in the U.S. exceeded the Zacks Consensus Estimate of 27 cents per share. When compared to the year ago level, net income reflects a rise of 16% from $26.6 million or 21% from 28 cents per share in the third quarter of last year. Total revenue dipped 13% to $2.59 billion. New Vehicle witnessed a steeper 14% decline in revenue to $1.34 billion compared to Used Vehicle (5% to $673 million). Total retail revenues slipped 10.4%, driven by weakness in the U.S. market. Same-store retail revenues fell 12.4% to $2.34 million. Excluding exchange rate fluctuations, total same-store retail revenues declined 8%, including 3.5% for service and parts revenues. Penske wholesaled 3,401 units of smart USA vehicles, ...

US stocks ended slightly lower on Wednesday even as the IMF noted that the world economy was recovering from the crisis faster than expected.  However, the agency cautioned that the improvements were in part due to stimulus measures taken by governments and central banks, and being driven by higher growth in Asia.  Revised second quarter GDP indicated the economy shrank at a 0.7% annual rate, compared to the initially reported 1% contraction and better than the expected 1.2% drop.

On Wednesday, the Dow ended down 29.92, or 0.3%, at 9,712.28 after falling nearly 134 points at one stage.  The S&P 500 index fell 3.53, or 0.3%, to 1,057.08.  The Nasdaq fell 1.62, or 0.1%, to 2,122.42.  US stocks by and large closed lower as profit taking affected major indexes on the final trading day of what had been a strong third quarter for the market.  Sentiment was essentially dampened

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US stocks ended slightly lower on Wednesday even as the IMF noted that the world economy was recovering from the crisis faster than expected.  However, the agency cautioned that the improvements were in part due to stimulus measures taken by governments and central banks, and being driven by higher growth in Asia.  Revised second quarter GDP indicated the economy shrank at a 0.7% annual rate, compared to the initially reported 1% contraction and better than the expected 1.2% drop.

On Wednesday, the Dow ended down 29.92, or 0.3%, at 9,712.28 after falling nearly 134 points at one stage.  The S&P 500 index fell 3.53, or 0.3%, to 1,057.08.  The Nasdaq fell 1.62, or 0.1%, to 2,122.42.  US stocks by and large closed lower as profit taking affected major indexes on the final trading day of what had been a strong third quarter for the market.  Sentiment was essentially dampened

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Penske Automotive Group (PAG) has declined to buy the Saturn brand from General Motors (GM), despite nearing the end of the deal. The spokesperson of the Michigan-based second leading automotive retailer in the U.S. has explained that Penske was unable to find a manufacturer to make the Saturn models when GM stops producing them after 2011. In June, Penske had reached a tentative agreement with GM to purchase the brand. Under the deal, GM had agreed to manufacture three Saturn models beyond 2011, but afterwards Penske was supposed to manufacture the products made by a third-party manufacturer. Speculation was rife that Penske was discussing the production of Saturn with French automaker Renault or a Chinese automaker to produce Saturn but the company spokesperson has not confirmed either. As Penske failed to reach an agreement with third party manufacturers for Saturn, it had no option but to ...

Several local news outlets are reporting that car dealers are experiencing a post-Cash for Clunkers Slump in sales. There is concern that the government's incentive program took sales away from the fall (and even 2010) by giving consumers reason to purchase new vehicles over the summer instead.

It is definitely taking sales away from September. Edmunds.com calculates that September sales are running at an 8.8 million unit pace. To put this number in perspective, Edmunds Senior Statistician Zhenwei Zhou said sales last September were 12.5 million. He also added "it had been over 16 million for years".

Whether this month's slump continues throughout the remainder of this year and into 2010 remains to be seen. Many carmakers are expected to introduce new incentive programs in addition to rolling out new models. Plus, two of the best-selling cars over the past several years - the Toyota Camry and the Honda Accord

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CarMax (KMX) will release its sales and earnings results for the second quarter of fiscal 2010 ended August 31, 2009 on September 22. The Richmond, VA-based used car retailer reported earnings of 11 cents per share, excluding special items, for the first quarter of the fiscal year. This was high above the Zacks Consensus Estimate of 4 cents per share. For the second quarter, the Zacks Consensus Estimate for the company is 16 cents per share, an improvement of 45% compared to the recorded earnings in the previous quarter.   CarMax, the largest retailer of used vehicles in the U.S., conducts its operations through its wholly owned subsidiaries -- CarMax Auto Superstores Inc., Virginia; CarMax Auto Superstores West Coast Inc., California; CarMax Auto Superstores California LLC, California; CarMax Auto Superstores Services Inc., Virginia; CarMax Business Services LLC, Delaware; and Glen Allen Insurance Ltd., Bermuda. The company operates ...

The markets were off today as the Dow Jones Industrial Average was the only major index to be in the black, up 0.15% to a level of 8,763.13.  The NASDAQ was down 0.03% closing at 1849.42 while the S&P 500 was down 0.25% ending at 940.09.  The 10-year once again saw price down ending with a yield of 3.83%.  A dollar gained strength today resulting with gold falling, settling at $962.60, and weaker demand saw crude prices fall to $68.44 a barrel. 

General Motors announced preliminary plans to sell its Saturn unit to Penske Automotive Group [PAG: 14.65, +0.05 (+0.34%)] which would put Penske in charge of Saturn’s parts, distribution, service, brands, and trademarks.  Mr. Roger Penske did not say how much the deal would be worth, but he said that the deal would allow for Saturn to retain 13,000 jobs in the corporation and the 350 dealerships.  The sale

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