16155 Miles Mp3 Player Usb Port Uconnect Soft Top 4wd Bushwacker Fender 1owner on 2040-cars

Auto blog

Suzuki has to take out $45M loan just to shutter US dealers

Bloomberg reports American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.
U.S. Bankruptcy Judge Scott C. Clarkson granted American Suzuki interim authority to borrow the funds, but Bloomberg reports the company will likely return to court in a few weeks to seek up to $100 million. According to Richard Pachulski, a lawyer for Suzuki America, the automaker may owe its dealers somewhere around $50 million.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Renault appoints Dacia Logan creator to head its Nano-rival program in India

After watching the Tata Nano post sales numbers smaller than its engine displacement, Renault gave up on its much publicized intention to build a truly inexpensive car to rival it. Then, a month ago, reports emerged that Renault was resuming work on a couple of low-priced cars for emerging markets, but this time it would work with its in-house partner, Nissan. That plan envisions an offering for €3,000 ($3,888 US) and another for €5,000 ($6,400 US), both of which would be more spendy than the Nano but might avoid the charge of being cheap - and nasty - and instead be considered affordable.
A report in Reuters talks to the man in charge, Gerard Detourbet, who has been in Chennai, India since at least August working on the program. Detourbet led the Dacia Logan project and is considered "Renault's low-cost car specialist" and "the father of entry-car programs." This one is reportedly codenamed A-Entry and will create a "'sub-entry' architecture" that will provide roominess beyond the vehicle's price and class, and use an engine with a displacement of 800 cubic centimeters.
It isn't aimed at the Nano, though - it means to take on the products that make up 45-50 percent of India's car market, like the Maruti Suzuki Alto and Hyundai Eon. According to Reuters, out of the 2.6-million-strong Indian car market the Maruti Suzuki line-up alone nabs one million registrations annually. The Alto 800 begins at 244,000 rupees ($4,440 US), the Eon at 300,000 rupees ($5,559 US), the Chevrolet Spark at about 316,000 ($5,750 US); if Renault can nail its price targets it will just about bracket those three and be right in the game.