2008 Toyota Corolla Le Sedan 4-door 1.8l on 2040-cars

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Jonas wreaks havoc on auto industry

Many folks along the East Coast are still stuck at home from Winter Storm Jonas' brutal snowfall over the weekend, but the blizzard had some nasty temporary effects on the auto industry, too. Winter weather emergencies kept people from leaving the house, and that spelled trouble for factories and dealers. The terrible conditions in Washington, DC, even prevented the the Washington Auto Show from opening. General Motors, Toyota, and BMW had to close factories due to the weather. BMW cited concerns for its workers driving to the plant for canceling some Friday and Saturday shifts in Spartanburg, SC, according to Automotive News. Toyota closed its Georgetown, KY, factory on Friday, and GM shut down the second shift at its Bowling Green, KY, site for that day, too. Showrooms in the blizzard's path saw a massive drop in sales over the weekend because the customers weren't coming. Some affected dealers are now trying to make the best of a bad situation by offering potential buyers even deeper discounts to get them through the door, according to Automotive News. The piles of snow also mean hours of work for employees to clean off all the cars on the lot. The good news is that none of these issues should pose longterm problems. Weather reports don't show much snow for the East Coast in the coming days, which should allow the industry quickly to return to normal.

Toyota to suspend 18 assembly lines as production restarts post-quake

TOKYO - Japanese manufacturers began restarting production at plants in the country's quake-hit northeast, but Toyota Motor Corp said it plans to idle 18 assembly lines for a few days next week due to a shortage of parts from suppliers. It had suspended operations at three factories due to the quake and sees lost production of 20,000 units due to the stoppages. Toyota has already cut its global production target due to the ongoing chip shortage. The suspension will cut heavily into Toyota's domestic production. Impacted product lines include the Toyota RAV4, Land Cruiser, Harrier and Yaris and virtually every Lexus. Toyota did not say whether these shutdowns could extend to U.S.-based production lines, but the possibility exists if they receive parts from the same suppliers.  On one hand, the limited damage caused by the magnitude 7.4 temblor has highlighted Japan's success in building resilience against the frequent tremors that shake the archipelago. But the quake has sparked concerns of further disruptions to a pandemic-hit supply chain for precision components vital to electronics and autos production and in which Japanese manufacturers play a leading role. Murata Manufacturing Co Ltd, the top global supplier of ceramic capacitors used in smartphones and cars, said it restarted production on Friday at two stopped plants with the remaining two idled plants to restart next week. A fire that broke out at a factory which produces chip inductors caused some damage to equipment. Renesas Electronics Corp, which makes nearly a third of the microcontroller chips used in cars globally, said it has restarted production after stopping it at two factories with a partial stop at a third. All three factories, including the Naka factory where fire broke out last year, are expected to return to pre-quake capacity by Wednesday, Renesas said. Power has mostly been restored across the northeast, which suffered Japan's biggest earthquake 11 years ago. Areas of Tokyo lost power for nearly three hours after the latest quake, in which three people died and 183 were injured. The blackout has forced the disposal of some COVID-19 vaccines held in cool storage, the Yomiuri newspaper reported. Tech conglomerate Sony Group Corp is in the process of gradually restarting production at three factories in the quake-hit area, a spokesperson said.

Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.