The Motor Vehicle Safety Act of 2010 now includes an additional $60M to develop an in-vehicle alcohol detection system which would disable the vehicle for those with illegal blood alcohol levels. The development has already been funded at $10M with half coming from automakers hoping to use the technology.
Fleets testing pre-production 2011 Ford Super Duty trucks are pleased with results after averaging 22K miles. Improved fuel-economy, less noise, added power, off-road maneuverability, Sync communications and B20 compatibility are highlights of fleet praise for test trucks.
Santander Consumer USA is quickly ramping up its market penetration in the U.S., especially in used-vehicle auto loans. In addition to originations, the company has been quietly buying up auto loan portfolios and making servicing deals and origination deals with such companies as Chrysler, Triad Financial, CarMax, HSBC and in the most recent multibillion-dollar deal, CitiFinancial Auto.
While fleet sales serve an important purpose for Detroit automakers, they could account for a good portion of June sales figures, masking weak demand from retail customers. Still, June sales expected to be up 13 percent from June, 2009.
Credit markets opened up again in early 2010 resulting in a return to leasing for younger and subprime consumers seeking lower monthly payments. The increased churn of new vehicles, improved brand loyalty from always driving newer vehicles, and other factors encourage struggling automakers to promote leasing.