DETROIT – More signs the auto industry is starting to turn the corner. According to the Detroit Free Press, production in the first quarter in North America is expected to increase 70 percent compared to a year ago. The industry plans to build 2.9-million vehicles this quarter compared to 1.7 million last year. The average supply of inventory for automakers was 52 days at the end of 2009, and typically 60 days is preferred.
GM is asking for more concessions from UAW workers who used to work at Delphi. GM bought back several Delphi plants, and now the Freep reports that it wants those workers to accept pay freezes and a $3 an hour pay cut for skilled trades. That would bring them in line with GM?s other workers, and make it easier for GM to sell those plants, because it doesn?t want to keep them.
GM traditionally has done a lot of its advertising during sporting events and other high-profile events, like the Oscars. But the company is moving away from that strategy. According to the Detroit News, the company will start to target specific demographics with product placements in TV shows. The company has already started this with GMC, known as a more masculine brand, to help broaden its appeal with women. GM also says spending this year will return to 2008 levels, even though it has four fewer brands.
For 2010 Ford heavily updated the Mustang, giving it a brand-new interior and a restyled body. As we?ve reported, even bigger changes are on the way for 2011. The ponycar?s getting two brand-new engines, both of which deliver almost 100 more horsepower plus six-speed transmissions. Pricing hasn?t been officially announced yet, but the website The Mustang Source has some numbers. A base coupe should sticker for right around 23 grand including destination, while the V-8-powered GT will just crack the $30,000 barrier. If this pricing is accurate, the entry-level 2011 Mustang undercuts the Camaro by at least $500.
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