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    Leasing Reaches Record High, Could Grow Further


    • Leasing is becoming very popular for buyers because of low payments

    Sales of new cars have been reaching all-time highs and part of the reason comes down leases. The Detroit News reports that nearly one in three vehicles built for the U.S. is leased. Data from Edmunds shows 2.2 million vehicles were leased in the first half of 2016. Not only is this up 13 percent from the same time year, it is double the volume from 2011. Steven Szakaly, chief economist for the National Automobile Dealers Association tells the Detroit News there is plenty of space for more leases.

    “I think this could easily be 40 percent of the market,” said Sazkaly.

    Why have leases become popular? It comes down to the monthly payment. Compared with payments for auto loans, lease payments are on average 23 percent less. Leasing is also a popular option for younger folks. Jessica Caldwell, analyst for Edmunds says the reason is leasing is like a cell phone contract; low monthly payments and knowing that you can get into a new car in a few years.

    But while leasing is helping new car sales, some analysts are worried this could cause used car prices to go down. Why? A glut of turned in leased vehicles will flood the used car market, causing prices to be slashed to move metal.

    “They’ll swamp the market, they’ll force residuals down,” said Sean McAlinden, chief economist for the Center for Automotive Research.

    The increase in leasing is already having an effect on used car values. Tom Webb, chief economist for Cox Automotive Inc., said 2.55 million vehicles came off lease last year. That number will increase to 3.1 million this year. Automakers are now figuring out ways to sell this glut of vehicles while keeping values up.

    Source: The Detroit News

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    People wanting to be in the jones jones race of upping their friends by one will lease to get into a higher level auto than to accept that they can only really afford X. This will cause a bigger increase in debt and in lower residuals plus a glut once these low miled used auto's hit the market.

    In 2-3 years I expect another auto correction of poor sales and a flood of auto's on the market.

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    5 hours ago, dfelt said:

    People wanting to be in the jones jones race of upping their friends by one will lease to get into a higher level auto than to accept that they can only really afford X. This will cause a bigger increase in debt and in lower residuals plus a glut once these low miled used auto's hit the market.

    In 2-3 years I expect another auto correction of poor sales and a flood of auto's on the market.

     

    So much wrong here I don't even know where to begin.

     

    Just a lot of 'no'.

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    5 hours ago, Frisky Dingo said:

     

    So much wrong here I don't even know where to begin.

     

    Just a lot of 'no'.

    Start at the beginning of what you think is wrong as I see this all around me every day, homes that can barely pay their mortgage with high end luxury auto's going paycheck to paycheck. When all the lease auto's come back in the prices are depressed. 

    Good deals for those of us willing to buy a lease return with full warranty.

    We have alrady seen the auto industry based on leases and big discounts hit record sales only to have it follow by a depressed market. This will repeat itself again and again.

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    Leases are huge on Cruze, Elantra, Focus type cars because people can lease them for $179 a month, when you can't even buy a $10k used car for that monthly payment.    That puts a lot of cars on the used market at 3 years old, probably bad for resale but good for used car shoppers.

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    13 hours ago, dfelt said:

    Start at the beginning of what you think is wrong as I see this all around me every day, homes that can barely pay their mortgage with high end luxury auto's going paycheck to paycheck. When all the lease auto's come back in the prices are depressed. 

    Good deals for those of us willing to buy a lease return with full warranty.

    We have alrady seen the auto industry based on leases and big discounts hit record sales only to have it follow by a depressed market. This will repeat itself again and again.

    People not living within their means is definitely more of a rule than an exception these days, I will grant you that. And some people leasing more car than they need due to incentives is not a wise decision. That is not what I was disputing. 

    What this piece conveniently ignores is that many people are on this ~3 year trade cycle anyway. So just because leasing is growing in popularity doesn't mean the market will be flooded by trade ins by default. The market will become more saturated in trades in general because of the higher sales numbers the car market has been enjoying. In fact, I would say the higher lease numbers will have the opposite effect on used car values. People are turning cars in that have to meet certain requirements so as not to be penalized at lease in. Cars in better condition with lower mileage than comparable non-leased cars are going to have higher values.

    The bigger problem is a market whose sales are being padded by bogus reports and bolstered by extreme incentives. Those are what's responsible for the massive increase in car sales. Along with looser lender requirements and low fuel costs. The market was bound to become flooded in second cars anyway, leasing in and of itself is not the culprit.

    Many people are just becoming aware of how beneficial leasing is, how much money it can save you, and how much it can alleviate the fear of unknown variables over the course of ownership. It's not some evil that is going to crash the car market and needs to be vanquished. That's really a short sighted and misinformed notion.  

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    Yeah leasing properly can really benefit somebody. For instance, if my mom OR dad leased one of their two vehicles they'd probably save a munch of money. They both live only 3 miles from work but they di visit my sister a handful of times a year in IA so they would still surpass the minimum mileage on ONE of their vehicles. Then again, my dad keeps their vehicles for ~7-8 years so they do get their monies worth from them as-is. Similar situation for a buddy of mine's fiancé. He said once her car is paid off they will likely lease her next car because she puts so few miles on it.

    If you can fit into the bottom two rungs of a lease mileage-wise it can be pretty beneficial.

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    Audi of washington has a tone of lease specials on the whole product line, example is their AWD A6 on lease special of $519 per month for 36 months for 7500 miles a year. 

    To me that is a crazy that you would spend that kind of money with so few miles allowed and be stuck with it for 3 years.

    I understand the leasing from a business standpoint and being able to drive new every 2-3 years. But I hate payments and would rather buy what I like and drive it way longer. 

    Then again, I am the exception as I still drive my 1994 GMC SLE Suburban as well as all my other fine auto's I own. :P

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    Leasing can make sense for a lot of people for a lot of reasons.  BMW seems to under write their leases to encourage people to buy new BMW's they then can turn around and sell them as CPO cars two or three years later.  Sell the same car twice....hmmm.....

    Personally I think repair costs have gotten so high and people do not have a lot of discretionary income or a lot of knowledge of cars, so leasing keeps them under a warranty and one less thing they have to worry about.

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    I can see the day where cars are never sold again, you pay for the right to drive it and after so long, you can then drop to month by month or drive it into the dealer, they put the car into a special recycling slot and out the other end comes your new auto you just ordered. No wait, custom order, custom build auto's on demand.

    Reminds me of the scene in Minority Report.

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    5 hours ago, dfelt said:

    I can see the day where cars are never sold again, you pay for the right to drive it and after so long, you can then drop to month by month or drive it into the dealer, they put the car into a special recycling slot and out the other end comes your new auto you just ordered. No wait, custom order, custom build auto's on demand.

    Reminds me of the scene in Minority Report.

    I could very well see car makers retaining the right to the software and refusing to update it, thus making the car functionally obsolete.  Tesla already updates over the internet wirelessly IIRC, I for see some sort of mandated turn in.

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    8 hours ago, A Horse With No Name said:

    Leasing can make sense for a lot of people for a lot of reasons.  BMW seems to under write their leases to encourage people to buy new BMW's they then can turn around and sell them as CPO cars two or three years later.  Sell the same car twice....hmmm.....

    Personally I think repair costs have gotten so high and people do not have a lot of discretionary income or a lot of knowledge of cars, so leasing keeps them under a warranty and one less thing they have to worry about.

    Completely agree with your second part. Auto makers are making vehicles to the point where average joe can barely touch his own car because it's just so complex or difficult to get to certain areas of a car. Then there are hybrids with insane electricity "flowing" through them that you have to be extra careful with. 

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    9 hours ago, ccap41 said:

    Completely agree with your second part. Auto makers are making vehicles to the point where average joe can barely touch his own car because it's just so complex or difficult to get to certain areas of a car. Then there are hybrids with insane electricity "flowing" through them that you have to be extra careful with. 

    The body control computer thing is downright frightening from a cost standpoint. Cruze near me got hit by lightening,  Body shop said to scrap the car even though it looked fine. Insurance wanted it fixed any ways.  Bill came to fourteen grand by the time all of the body control computers and electronics were replaced. 

    Fourteen grand is a lot of scratch for a three year old fairly base Cruze.

    Edited by A Horse With No Name
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    1 hour ago, A Horse With No Name said:

    The body control computer thing is downright frightening from a cost standpoint. Cruze near me got hit by lightening,  Body shop said to scrap the car even though it looked fine. Insurance wanted it fixed any ways.  Bill came to fourteen grand by the time all of the body control computers and electronics were replaced. 

    Fourteen grand is a lot of scratch for a three year old fairly base Cruze.

    How did that not get totaled out? That had to be like 90% of its value if it was fairly base and a few years old.

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    A 3 year old Cruze is not worth 14 grand. Not even an LTZ. That car should have been totaled, no question.

     

    Also guys, you should know that leasing actually works even BETTER for people who drive a lot of miles annually.

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    I never would have guessed. I just assumed a smaller payment for the lease would save you money while the car is depreciating no matter what while I "own" it, somewhat regardless of the miles put on it.

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    42 minutes ago, Frisky Dingo said:

    Also guys, you should know that leasing actually works even BETTER for people who drive a lot of miles annually.

    Actually that is only as long as you stay within the contract of 12K or 15K miles. Otherwise, the cost is incredibly expensive. Example is if I leased my Escalade for 15,000 miles, I would have had to pay an extra $3750 per year as during the first 4 years I averaged 30,000 miles a year driving. So the first 15,000 would have been covered under the lease at $1099.00 per month on the 15K year deal for 36 months. But then I would have had to pay up another $11,250 at the end of the lease and go into another lease. At least my escalade I own and now that I do not drive it that much, since it is a 2006, 10 years later, it is now considered low mileage as I only use it for personal long distance road trips. So about 10K a year and it is paid for but I have total comfort and luxury for my road trips.

    End result is Leasing works for the Right Use Case. 

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    50 minutes ago, Frisky Dingo said:

    A 3 year old Cruze is not worth 14 grand. Not even an LTZ. That car should have been totaled, no question.

     

    Also guys, you should know that leasing actually works even BETTER for people who drive a lot of miles annually.

    Exactly, because a high end car will depreciate more than the mileage penalty.  You really screw with idiots like BMW when you turn a car in that won't go CPO because of mileage.

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    2 minutes ago, dfelt said:

    Actually that is only as long as you stay within the contract of 12K or 15K miles. Otherwise, the cost is incredibly expensive. Example is if I leased my Escalade for 15,000 miles, I would have had to pay an extra $3750 per year as during the first 4 years I averaged 30,000 miles a year driving. So the first 15,000 would have been covered under the lease at $1099.00 per month on the 15K year deal for 36 months. But then I would have had to pay up another $11,250 at the end of the lease and go into another lease. At least my escalade I own and now that I do not drive it that much, since it is a 2006, 10 years later, it is now considered low mileage as I only use it for personal long distance road trips. So about 10K a year and it is paid for but I have total comfort and luxury for my road trips.

    End result is Leasing works for the Right Use Case. 

    Exactly the point...if you wanted to drive an Escalade a ton of miles and turn it back in....a 90,000 mile Escalade will have a ton of depreciation....

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    Frisky, care to explain how leasing is better for people who drive a lot annually?

    Most of the leases are 12-15k a year.  How is it beneficial to somebody who drives 20-25k a year?

    1 hour ago, Frisky Dingo said:

    A 3 year old Cruze is not worth 14 grand. Not even an LTZ. That car should have been totaled, no question.

     

    Also guys, you should know that leasing actually works even BETTER for people

    who drive a lot of miles annually.

     

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    34 minutes ago, ykX said:

    Frisky, care to explain how leasing is better for people who drive a lot annually?

    Most of the leases are 12-15k a year.  How is it beneficial to somebody who drives 20-25k a year?

     

    On some cars the mileage penalty is less than the actual depreciation of the vehicle.  i know very little about leasing, but from what I do know this works best with Luxury vehicles.

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    Firstly, you are not limited to 12,000 or 15,000 miles annually. That is just how most standard leases are figured. They're simply calculated on an average, because that's how many miles most people drive a year. You can buy more miles before hand. So you have a lease designed around 25,000 miles, or 30,000 miles, or however much you need. I've done a 18,500 annual mile lease before. The key to remember is that excessive mileage depreciates your car whether you own or lease it.

    Here's an example of how it is still cheaper to lease, even with high annual mileage-

     

    You can buy additional miles on most leases for $.15-.20 a mile. So let's say you drive 25,000 miles a year. You lease for 3 years, so are essentially buying 30,000 extra miles- 10,000 miles over 15,000 standard annual miles x 3- for let's say $.18 a mile. So you have $5,400 cost for additional miles. You have bought these miles going into the lease, the cost of the extra miles is figured into the car's worth at lease end. You are still able to walk away clean at that point in time.

    The other way is you buy the car, and drive ~10,000 miles more a year than the average. You go to trade the vehicle in after 3 years time with 75,000 miles on it, and you are considerably over the average miles on similar aged vehicles. So you will have a deduction on your car's value on account of excessive mileage. In such a scenario, depending on the vehicle, you can expect to be deducted roughly $.30 a mile. 

    Now if we were break this up and calculate a total cost over those 3 years, it would be as follows-

    Scenario 1- Car costs $45,000 and and has 3yr, 45,000 residual of 57%. So $25,650. Minus $5,400 additional miles. So $20,250. Let's say after incentives and discount CAP cost is $38,500 (which is totally doable). So you have $18,250 of depreciation over the course of ownership. Over 36 months, that's $507 a month. Before tax and money factor. Add taxes and MF, and let's call it $570. First payment with fees is gonna run ~$620. $570 x 36 + $620 = $20,570.

     

    Scenario 2- Car costs $45,000 and after discounts and incentives (which are almost always worse on buy vs lease) you're out the door at $39,500. You financed that for 60 months @ 2.49% and get a payment of $701. Then you have to pay sales tax within 30 days. Let's use 7.5%. There's $2,962.50. After license fees and whatnot, let's call it an even 3 grand. You go to trade that car in 3 years later w/ 75,000 and the value on it is $20,250. Over the course of 36 months, you've paid $24,535. Only $22,000 of that went to principal, so you've got a payoff of  $27,500. Now you're 7 grand upside down. So even leaving out the negative equity, you had 35 payments (no payment for 45 days) of $701 totaling $24,535. Plus you spent $3,000 on sales tax. So over 3 years, you've spent $27,535. And you're still flipped going into the next loan.

     

    So, $20,570 to lease for 3 years and drive 75,000 miles, OR $27,535 to finance and drive 3 years and 75,000 miles. 

     

    You tell me which is cheaper......

     

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    Thank you for expanding, I see your point.  

    However, this works only if somebody wants to replace the car after 3 years.  If somebody keeps the car for 5 and more years vs continuous lease payment, then it is not so clear cut anymore IMO.

    Taking your example:

    Assuming after three years somebody managed to lease a car with similar payment.

    Then: $570 x 60 = $34200

    If somebody bought the car in 5 years he will pay it off for total of $42051 plus $3k registration, so $45051.

    Assuming depreciation with that kind of mileage is around 75% the residual value will be around $10k, so $35051.

    So it seems at 5 years it is pretty much a wash and then after that the person leasing is still paying $570 a month while the person owning only has depreciation to worry about (which will be negligible at this point) and the maintenance, which might be high because of the mileage but I doubt as high as $570 a month,  

    I guess it just a matter of personal preference if somebody wants a new car every three years or he is happy to keep car for the long run.

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    That is a valid point. For such individuals, buying is the better option. There is no doubt, leasing is not for everyone. But for some, it is a very beneficial route. 

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      It is now official. This morning, PSA Group has agreed to buy Opel and Vauxhall from General Motors for 2.2 billion euros (about $2.3 billion). The deal is comprised of a 1.8 billion euros ($1.9 billion) payment for Opel and Vauxhall, along with a stake in Opel's financing arm. This makes PSA Group the second-largest automaker in Europe.
      “It gives us the opportunity to become a real European champion. Our plan is to build a common future for Opel and Vauxhall and fix the existing issues,” said PSA Chief Executive Officer Carlos Tavares.
      Those existing issues include Opel and Vauxhall never breaking even for GM. Over the past two decades, Opel and Vauxhall have lost almost $20 billion. In 2016, the division was projected to break even, but the complications of Great Britain leaving the EU meant they posted a loss of $257 million.
      "The way I look at this is positioning Opel-Vauxhall to be incredibly successful in the future," said GM CEO Mary Barra when asked by a reporter if she was relieved about the sale of Opel and Vauxhall. 
      "General Motors doesn't have to be relieved. They can be proud of giving Opel-Vauxhall a better future," said Tavares.
      PSA Group is aiming to make Opel and Vauxhall profitable once again, with operating profit targets of 2 percent in 2020 and 6 percent by 2026. These targets will be reached by joint cost savings of 1.7 billion euros (about $1.8 billion) by spreading the costs of developing new vehicles and sharing purchasing costs.
      General Motors won't be fully cutting its ties with Opel and Vauxhall for the time being. GM has allowed PSA Group to license technology rights to keep selling current models (including the upcoming Insignia) until they transition onto PSA platforms. According to Reuters, the next-generation Opel/Vauxhall Corsa will be the first PSA developed model. GM will also collaborate with PSA on various projects such as hydrogen fuel cells. Finally, GM will pay PSA 3 billion euros ($3.18 billion) to settle transferred pension obligations.
      But there are still a number of unanswered questions with this deal. The big one deals with job cuts and plant closures. With this deal, PSA group will add roughly 38,000 workers and 10 production facilities. Some analysts believe that PSA Group will close two to three plants within the next five years, with the possibility of those closures taking place in Great Britain due to Brexit. Taveres has said that the automaker would honor existing labor agreements and closing plants is a “simplistic” solution.
      “We don’t need to shut down plants,” said Tavares.
      Second is what will happen for Buick and Holden when models they share with Opel transition to PSA platforms. Both Buick and Holden will be getting the next-generation Insignia as the Regal and Commodore. Buick also gets the Opel Mokka to sell as the Encore, while Holden sells the Astra compact.
      Finally, there is the question about PSA Group's plans to re-enter the U.S. How does the purchase of Opel and Vauxhall affect their plans?
      Source: Bloomberg, Reuters, Automotive News (Subscription Required), General Motors, PSA Group
      Press Release is on Page 2


      Opel/Vauxhall to join PSA Group
      Establishes PSA Group as #2 in Europe. This strong and balanced presence in its home markets will serve as the basis of profitable growth worldwide Joint venture in auto financing with BNP Paribas to support development of Opel/Vauxhall brands €2.2 Bn transaction advances GM’s transformation and unlocks shareholder value through disciplined capital allocation Detroit and Paris – General Motors Co. (NYSE:GM) and PSA Group (Paris:UG) today announced an agreement under which GM’s Opel/Vauxhall subsidiary and GM Financial’s European operations will join the PSA Group in a transaction valuing these activities at €1.3 Bn and €0.9 Bn, respectively.
      With the addition of Opel/Vauxhall, which generated revenue of €17.7 Bn in 20161, PSA will become the second-largest automotive company in Europe, with a 17% market share2.
      Creates sound European foundation for PSA to support its worldwide profitable growth
      “We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said Carlos Tavares, chairman of the Managing Board of PSA. “We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalizing on their respective brand identities. Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”
      “We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees,” continued Mr. Tavares.
      Advances GM’s Transformation and Unlocks Value
      “We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance”, said Mary T. Barra, GM chairman and chief executive officer.
      “For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum. We are reshaping our company and delivering consistent, record results for our owners through disciplined capital allocation to our higher-return investments in our core automotive business and in new technologies that are enabling us to lead the future of personal mobility.
      “We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term and we look forward to our participation in the future success and strong value-creation potential of PSA through our economic interest and continued collaboration on current and exciting new projects,” Ms. Barra concluded.
      Strengthens Each Company for the Long Term
      The transaction will allow substantial economies of scale and synergies in purchasing, manufacturing and R&D. Annual synergies of €1.7 Bn are expected by 2026 – of which a significant part is expected to be delivered by 2020, accelerating Opel/Vauxhall’s turnaround. Leveraging the successful partnership with GM, PSA expects Opel/Vauxhall to reach a recurring operating margin3 of 2% by 2020 and 6% by 2026, and to generate a positive operational free cash flow4 by 2020.
      PSA, together with BNP Paribas, will also acquire all of GM Financial’s European operations through a newly formed 50%/50% joint venture that will retain GM Financial’s current European platform and team. This joint venture will be fully consolidated by BNP Paribas and accounted under the equity method by PSA.
      The transaction is another step in GM’s ongoing work to transform the company, which has delivered three years of record performance and a strong 2017 outlook, and returned significant capital to shareholders. It will strengthen GM’s core business, support its continued deployment of resources to higher-return opportunities including in advanced technologies driving the future, and unlock significant value for shareholders.
      By immediately improving EBIT-adjusted, EBIT-adjusted margins and adjusted automotive free cash flow and de-risking the balance sheet, the transaction will enable GM to lower the cash balance requirement under its capital allocation framework by $2 Bn, which it intends to use to accelerate share repurchases, subject to market conditions.
      GM will also participate in the future success of the combined entity through its ownership of warrants to purchase shares of PSA. GM and PSA also expect to collaborate in the further deployment of electrification technologies and existing supply agreements for Holden and certain Buick models will continue, and PSA may potentially source long-term supply of fuel cell systems from the GM/Honda joint venture.
      Additional Information
      Terms of the Agreement
      Opel/Vauxhall automotive operations will be acquired by PSA for €1.3 Bn. GM Financial’s European operations will be jointly acquired by PSA and BNP Paribas for 0.8 times their pro forma book value at the closing of the transaction, or approximately €0.9 Bn.
      The transaction has a total value of €2.2 Bn, for Opel/Vauxhall automotive operations and 100% of GM Financial’s European operations.
      The transaction value for PSA, including Opel/Vauxhall and 50% of GM Financial’s European operations, will be €1.8 Bn.
      In connection with this transaction, GM or its affiliates will subscribe warrants for €0.65 Bn. These warrants have a nine-year maturity and are exercisable at any time in whole or in part commencing 5 years after the issue date, with a strike price of €1. Based on a reference price of €17.34 for the PSA share5 , the warrants correspond to 39.7 MM shares of PSA, or 4.2% of its fully diluted share capital6. GM will not have governance or voting rights with respect to PSA and has agreed to sell the PSA shares received upon exercise of the warrants within 35 days after exercise.
      The transaction includes all of Opel/Vauxhall’s automotive operations, comprising Opel and Vauxhall brands, six assembly and five component-manufacturing facilities, one engineering center (Rüsselsheim) and approximately 40,000 employees. GM will retain the engineering center in Torino, Italy.
      Opel/Vauxhall will also continue to benefit from intellectual property licenses from GM until its vehicles progressively convert to PSA platforms over the coming years.
      In connection with the transaction, GM will take a primarily non-cash special charge of $4.0-4.5 Bn.
      Ongoing Pension Fund Commitments
      All of Opel/Vauxhall’s European and U.K. pension plans, funded and unfunded, with the exception of the German Actives Plan and selected smaller plans will remain with GM. The obligations with respect to the German Actives Plan and these smaller plans of Opel/Vauxhall will be transferred to PSA. GM will pay PSA €3.0 Bn for full settlement of transferred pension obligations.
      Closing Conditions
      The transaction is subject to various closing conditions, including regulatory approvals and reorganizations, and is expected to close before the end of 2017.
      Warrants
      The issuance of the warrants is subject to the vote of shareholders at PSA’s General Meeting of May 10th, 2017. The three main shareholders of PSA (the French State, the Peugeot family and DongFeng) representing in aggregate 36.6% of the share capital and 51.5%7 of the voting rights of PSA have undertaken to vote in favor of the resolution related to the issuance of the warrants to GM. In the event the warrant issuance reserved to GM and its affiliates is not approved by PSA’s General Meeting, PSA will settle the €0.65 Bn in cash over five years.
    • By William Maley
      Maserati North America, Inc. - Up 49% (1,087 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Mitsubishi Motors North America - Up 38.8% (10,924 Vehicles Sold This Month, 17,381 Vehicles Sold This Year)
      Audi of America - Up 17.3% (9,102 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Jaguar Land Rover North America - Up 16.4% (9,231 Vehicles Sold This Month, 18,333 Vehicles Sold This Year)
      Volkswagen of America - Up 12.65% (25,145 Vehicles Sold This Month, 48,655 Vehicles Sold This Year)
      Subaru of America, Inc. - Up 8.3% (45,500 Vehicles Sold This Month, 89,379 Vehicles Sold This Year)
      Mercedes-Benz USA - Up 6.8% (27,383 Vehicles Sold This Month, 55,283 Vehicles Sold This Year)
      Mazda North American Operations - Up 5.9% (22,824 Vehicles Sold This Month, 44,522 Vehicles Sold This Year)
      General Motors Co. - Up 4.2% (237,388 Vehicles Sold This Month, 433,297 Vehicles Sold This Year)
      Nissan North America - Up 3.7% (135,740 Vehicles Sold This Month, 248,059 Vehicles Sold This Year)
      American Honda Motor Co. - Up 2.3% (121,686 Vehicles Sold This Month, 228,066 Vehicles Sold This Year)
      Porsche Cars North America, Inc. - Up 2.1% (3,637 Vehicles Sold This Month, 8,239 Vehicles Sold This Year)
      BMW Group U.S. - Down 2.5% (208,440 Vehicles Sold This Month, 381,052 Vehicles Sold This Year)
      Ford Motor Company - Down 4% (208,440 Vehicles Sold This Month, 381,052 Vehicles Sold This Year)
      Toyota Motor North America - Down 7.2% (174,339 Vehicles Sold This Month, 317,387 Vehicles Sold This Year)
      FCA US LLC - Down 10% (168,326 Vehicles Sold This Month, 320,544 Vehicles Sold This Year)
      Volvo Cars of North America, LLC - Down 11.6% (4,651 Vehicles Sold This Month, 8,123 Vehicles Sold This Year)
      Kia Motors America - Down 14.2% (42,673 Vehicles Sold This Month, 78,299 Vehicles Sold This Year)

      Hyundai Motor America - 

      Brands:
      Acura - Down 14.9% (10,864 Vehicles Sold This Month, 20,066 Vehicles Sold This Year)
      Alfa Romeo - Up 843% (443 Vehicles Sold This Month, 551 Vehicles Sold This Year)
      Audi - Up 17.3% (9,102 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      BMW - Up 0.3% (22,558 Vehicles Sold This Month, 40,667 Vehicles Sold This Year)
      Buick - Down 9.4% (16,131 Vehicles Sold This Month, 29,248 Vehicles Sold This Year)
      Cadillac - Down 8.6% (10,823 Vehicles Sold This Month, 21,121 Vehicles Sold This Year)
      Chevrolet - Up 3.4% (164,095 Vehicles Sold This Month, 299,265 Vehicles Sold This Year)
      Chrysler - Down 28% (16,730 Vehicles Sold This Month, 30,107 Vehicles Sold This Year)
      Dodge - Down 7% (43,878 Vehicles Sold This Month, 83,987 Vehicles Sold This Year)
      Fiat - Down 19% (2,145 Vehicles Sold This Month, 4,309 Vehicles Sold This Year)
      Ford - Down 4.5% (199,696 Vehicles Sold This Month, 363,523 Vehicles Sold This Year)
      Genesis - 
      GMC - Up 17.2% (46,339 Vehicles Sold This Month, 83,663 Vehicles Sold This Year)
      Honda - Up 4.3% (110,822 Vehicles Sold This Month, 208,000 Vehicles Sold This Year)
      Hyundai - 
      Infiniti - Up 32.5% (13,737 Vehicles Sold This Month, 25,295 Vehicles Sold This Year)
      Jaguar - Up 130.4% (3,484 Vehicles Sold This Month, 6,423 Vehicles Sold This Year)
      Jeep - Down 15% (62,345 Vehicles Sold This Month, 120,760 Vehicles Sold This Year)
      Kia - Down 14.2% (42,673 Vehicles Sold This Month, 78,299 Vehicles Sold This Year)
      Land Rover - Down 10.4% (5,747 Vehicles Sold This Month, 11,910 Vehicles Sold This Year)
      Lexus - Down 20.6% (18,338 Vehicles Sold This Month, 33.910 Vehicles Sold This Year)
      Lincoln - Up 8.8% (8,744 Vehicles Sold This Month, 17,529 Vehicles Sold This Year)
      Maserati - Up 49% (1,087 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Mazda - Up 5.9% (22,824 Vehicles Sold This Month, 44,522 Vehicles Sold This Year)
      Mercedes-Benz - Up 6.9% (24,522 Vehicles Sold This Month, 50,049 Vehicles Sold This Year)
      Mercedes-Benz Vans - Up 10.8% (2,513 Vehicles Sold This Month, 4,562 Vehicles Sold This Year)
      MINI - Down 24.1% (2,154 Vehicles Sold This Month, 5,264 Vehicles Sold This Year)
      Mitsubishi - Up 38.8% (10,924 Vehicles Sold This Month, 17,381 Vehicles Sold This Year)
      Nissan - Up 1.2% (122,003 Vehicles Sold This Month, 222,764 Vehicles Sold This Year)
      Porsche - Up 2.1% (3,637 Vehicles Sold This Month, 8,239 Vehicles Sold This Year)
      Ram Trucks - Up 4% (42,785 Vehicles Sold This Month, 80,830 Vehicles Sold This Year)
      Smart - Down 17.5% (348 Vehicles Sold This Month, 672 Vehicles Sold This Year)
      Subaru - Up 8.3% (45,500 Vehicles Sold This Month, 89,379 Vehicles Sold This Year)
      Toyota - Up 5.4% (156,001 Vehicles Sold This Month, 283,447 Vehicles Sold This Year)
      Volkswagen - Up 12.65% (25,145 Vehicles Sold This Month, 48,655 Vehicles Sold This Year)
      Volvo - Down 11.6% (4,651 Vehicles Sold This Month, 8,123 Vehicles Sold This Year)

      View full article
    • By William Maley
      Maserati North America, Inc. - Up 49% (1,087 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Mitsubishi Motors North America - Up 38.8% (10,924 Vehicles Sold This Month, 17,381 Vehicles Sold This Year)
      Audi of America - Up 17.3% (9,102 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Jaguar Land Rover North America - Up 16.4% (9,231 Vehicles Sold This Month, 18,333 Vehicles Sold This Year)
      Volkswagen of America - Up 12.65% (25,145 Vehicles Sold This Month, 48,655 Vehicles Sold This Year)
      Subaru of America, Inc. - Up 8.3% (45,500 Vehicles Sold This Month, 89,379 Vehicles Sold This Year)
      Mercedes-Benz USA - Up 6.8% (27,383 Vehicles Sold This Month, 55,283 Vehicles Sold This Year)
      Mazda North American Operations - Up 5.9% (22,824 Vehicles Sold This Month, 44,522 Vehicles Sold This Year)
      General Motors Co. - Up 4.2% (237,388 Vehicles Sold This Month, 433,297 Vehicles Sold This Year)
      Nissan North America - Up 3.7% (135,740 Vehicles Sold This Month, 248,059 Vehicles Sold This Year)
      American Honda Motor Co. - Up 2.3% (121,686 Vehicles Sold This Month, 228,066 Vehicles Sold This Year)
      Porsche Cars North America, Inc. - Up 2.1% (3,637 Vehicles Sold This Month, 8,239 Vehicles Sold This Year)
      BMW Group U.S. - Down 2.5% (208,440 Vehicles Sold This Month, 381,052 Vehicles Sold This Year)
      Ford Motor Company - Down 4% (208,440 Vehicles Sold This Month, 381,052 Vehicles Sold This Year)
      Toyota Motor North America - Down 7.2% (174,339 Vehicles Sold This Month, 317,387 Vehicles Sold This Year)
      FCA US LLC - Down 10% (168,326 Vehicles Sold This Month, 320,544 Vehicles Sold This Year)
      Volvo Cars of North America, LLC - Down 11.6% (4,651 Vehicles Sold This Month, 8,123 Vehicles Sold This Year)
      Kia Motors America - Down 14.2% (42,673 Vehicles Sold This Month, 78,299 Vehicles Sold This Year)

      Hyundai Motor America - 

      Brands:
      Acura - Down 14.9% (10,864 Vehicles Sold This Month, 20,066 Vehicles Sold This Year)
      Alfa Romeo - Up 843% (443 Vehicles Sold This Month, 551 Vehicles Sold This Year)
      Audi - Up 17.3% (9,102 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      BMW - Up 0.3% (22,558 Vehicles Sold This Month, 40,667 Vehicles Sold This Year)
      Buick - Down 9.4% (16,131 Vehicles Sold This Month, 29,248 Vehicles Sold This Year)
      Cadillac - Down 8.6% (10,823 Vehicles Sold This Month, 21,121 Vehicles Sold This Year)
      Chevrolet - Up 3.4% (164,095 Vehicles Sold This Month, 299,265 Vehicles Sold This Year)
      Chrysler - Down 28% (16,730 Vehicles Sold This Month, 30,107 Vehicles Sold This Year)
      Dodge - Down 7% (43,878 Vehicles Sold This Month, 83,987 Vehicles Sold This Year)
      Fiat - Down 19% (2,145 Vehicles Sold This Month, 4,309 Vehicles Sold This Year)
      Ford - Down 4.5% (199,696 Vehicles Sold This Month, 363,523 Vehicles Sold This Year)
      Genesis - 
      GMC - Up 17.2% (46,339 Vehicles Sold This Month, 83,663 Vehicles Sold This Year)
      Honda - Up 4.3% (110,822 Vehicles Sold This Month, 208,000 Vehicles Sold This Year)
      Hyundai - 
      Infiniti - Up 32.5% (13,737 Vehicles Sold This Month, 25,295 Vehicles Sold This Year)
      Jaguar - Up 130.4% (3,484 Vehicles Sold This Month, 6,423 Vehicles Sold This Year)
      Jeep - Down 15% (62,345 Vehicles Sold This Month, 120,760 Vehicles Sold This Year)
      Kia - Down 14.2% (42,673 Vehicles Sold This Month, 78,299 Vehicles Sold This Year)
      Land Rover - Down 10.4% (5,747 Vehicles Sold This Month, 11,910 Vehicles Sold This Year)
      Lexus - Down 20.6% (18,338 Vehicles Sold This Month, 33.910 Vehicles Sold This Year)
      Lincoln - Up 8.8% (8,744 Vehicles Sold This Month, 17,529 Vehicles Sold This Year)
      Maserati - Up 49% (1,087 Vehicles Sold This Month, 26,942 Vehicles Sold This Year)
      Mazda - Up 5.9% (22,824 Vehicles Sold This Month, 44,522 Vehicles Sold This Year)
      Mercedes-Benz - Up 6.9% (24,522 Vehicles Sold This Month, 50,049 Vehicles Sold This Year)
      Mercedes-Benz Vans - Up 10.8% (2,513 Vehicles Sold This Month, 4,562 Vehicles Sold This Year)
      MINI - Down 24.1% (2,154 Vehicles Sold This Month, 5,264 Vehicles Sold This Year)
      Mitsubishi - Up 38.8% (10,924 Vehicles Sold This Month, 17,381 Vehicles Sold This Year)
      Nissan - Up 1.2% (122,003 Vehicles Sold This Month, 222,764 Vehicles Sold This Year)
      Porsche - Up 2.1% (3,637 Vehicles Sold This Month, 8,239 Vehicles Sold This Year)
      Ram Trucks - Up 4% (42,785 Vehicles Sold This Month, 80,830 Vehicles Sold This Year)
      Smart - Down 17.5% (348 Vehicles Sold This Month, 672 Vehicles Sold This Year)
      Subaru - Up 8.3% (45,500 Vehicles Sold This Month, 89,379 Vehicles Sold This Year)
      Toyota - Up 5.4% (156,001 Vehicles Sold This Month, 283,447 Vehicles Sold This Year)
      Volkswagen - Up 12.65% (25,145 Vehicles Sold This Month, 48,655 Vehicles Sold This Year)
      Volvo - Down 11.6% (4,651 Vehicles Sold This Month, 8,123 Vehicles Sold This Year)
    • By William Maley
      February Brings More Sales Records for American Honda
      American Honda continues record pace in February for total vehicle and truck sales Honda CR-V raises the bar again, breaking February record with a 26.3 percent jump Honda HR-V also nets a February record, gaining 28.6 percent Acura RDX has its best-ever February, rising 6.1 percent as it continues to pace division TORRANCE, Calif., March 1, 2017 /PRNewswire/ -- American Honda Motor Co., Inc. today reported total February sales of 121,686 Honda and Acura vehicles, an increase of 2.3 percent over February 2016 and a new record for the month. American Honda trucks also set a February record, rising 12.2 percent on sales of 63,989. Total Honda Division sales as well as Honda truck sales also set new February marks, with total Honda Division sales gaining 4.3 percent on sales of 110,822 and trucks up 15.3 percent on sales of 56,419 units. Acura Division sales were down 14.9 percent, with 10,864 vehicles sold in February.
      Honda
      The Honda Division continued its record sales streak into the second month of the year, gaining 4.3 percent on sales of 110.882 units to set a new February benchmark. CR-V and HR-V repeated strong January performances, driving Honda trucks to a February record as well. The Fit also gained in February while Civic and Accord held their own in a market tilting toward trucks.
      Honda trucks set a new benchmark in February, gaining 15.3 percent on sales of 56,419. CR-V and HR-V drove truck sales, both setting new February marks; CR-V sales were up 26.3 percent on sales of 31,898, and HR-V up 28.6 percent with 6,354 units sold. Accord and Civic continue to swim against the tide, with sales cresting 23,000 and 27,000 units, respectively. "The new CR-V is exceeding our own expectations with production and deliveries now fully up to speed," said Jeff Conrad, senior vice president and general manager of the Honda Division. "It's clearly hitting a sweet spot in the market and complemented by HR-V at the entry level."
      Acura
      Acura sales continued recent trends, with the RDX enjoying its best-ever February. NSX also remained steady, showing no signs of the winter doldrums that can affect ultra-performance cars. And after a strong first outing at Daytona in January, the NSX GT3 racecar goes to the legendary 12 Hours of Sebring in search of endurance racing glory later this month. 
      Acura's popular RDX set a new February record, gaining 6.1 percent on sales of 4,029 vehicles. Continuing a steady production and sales pace, 46 NSX supercars were sold in February.   American Honda Vehicle Sales for February 2017
            Month-to-Date
      Year-to-Date
            February
      2017
      February
      2016
      DSR** %
      Change
      MoM %
      Change
      February
      2017
      February
      2016
      DSR** %
      Change
      YoY %
      Change
          American Honda Total
      121,686
      118,985
      2.3%
      2.3%
      228,066
      219,482
      3.9%
      3.9%
          Total Car Sales
      57,697
      61,950
      -6.9%
      -6.9%
      106,264
      116,332
      -8.7%
      -8.7%
          Total Truck Sales
      63,989
      57,035
      12.2%
      12.2%
      121,802
      103,150
      18.1%
      18.1%
            Honda Total Car Sales
      54,403
      57,267
      -5.0%
      -5.0%
      100,244
      108,079
      -7.2%
      -7.2%
            Honda Total Truck Sales
      56,419
      48,945
      15.3%
      15.3%
      107,756
      88,380
      21.9%
      21.9%
              Acura Total Car Sales
      3,294
      4,683
      -29.7%
      -29.7%
      6,020
      8,253
      -27.1%
      -27.1%
              Acura Total Truck Sales
      7,570
      8,090
      -6.4%
      -6.4%
      14,046
      14,770
      -4.9%
      -4.9%
          Total Domestic Car Sales
      46,581
      58,489
      -20.4%
      -20.4%
      85,936
      109,939
      -21.8%
      -21.8%
            Honda Division
      43,390
      53,909
      -19.5%
      -19.5%
      80,099
      101,887
      -21.4%
      -21.4%
            Acura Division
      3,191
      4,580
      -30.3%
      -30.3%
      5,837
      8,052
      -27.5%
      -27.5%
          Total Domestic Truck Sales
      63,989
      57,035
      12.2%
      12.2%
      121,802
      103,150
      18.1%
      18.1%
            Honda Division
      56,419
      48,945
      15.3%
      15.3%
      107,756
      88,380
      21.9%
      21.9%
            Acura Division
      7,570
      8,090
      -6.4%
      -6.4%
      14,046
      14,770
      -4.9%
      -4.9%
          Total Import Car Sales
      11,116
      3,461
      221.2%
      221.2%
      20,328
      6,393
      218.0%
      218.0%
            Honda Division
      11,013
      3,358
      228.0%
      228.0%
      20,145
      6,192
      225.3%
      225.3%
            Acura Division
      103
      103
      0.0%
      0.0%
      183
      201
      -9.0%
      -9.0%
          Total Import Truck Sales
      0
      0
      0.0%
      0.0%
      0
      0
      0.0%
      0.0%
            Honda Division
      0
      0
      0.0%
      0.0%
      0
      0
      0.0%
      0.0%
            Acura Division
      0
      0
      0.0%
      0.0%
      0
      0
      0.0%
      0.0%
           MODEL BREAKOUT BY DIVISION
                    Honda Division Total
      110,822
      106,212
      4.3%
      4.3%
      208,000
      196,459
      5.9%
      5.9%
            * ACCORD
      23,455
      25,785
      -9.0%
      -9.0%
      42,991
      46,550
      -7.6%
      -7.6%
            * CIVIC
      27,039
      27,707
      -2.4%
      -2.4%
      50,134
      54,448
      -7.9%
      -7.9%
            CLARITY FCV
      27
      0
      0.0%
      0.0%
      69
      0
      0.0%
      0.0%
            CR-Z
      118
      128
      -7.8%
      -7.8%
      207
      320
      -35.3%
      -35.3%
            * FIT
      3,764
      3,647
      3.2%
      3.2%
      6,842
      6,742
      1.5%
      1.5%
            INSIGHT
      0
      0
      0.0%
      0.0%
      1
      19
      -94.7%
      -94.7%
                                      CROSSTOUR
      3
      190
      -98.4%
      -98.4%
      3
      456
      -99.3%
      -99.3%
            * CR-V
      31,898
      25,250
      26.3%
      26.3%
      61,185
      44,458
      37.6%
      37.6%
            HR-V
      6,354
      4,940
      28.6%
      28.6%
      12,043
      9,117
      32.1%
      32.1%
            ODYSSEY
      6,800
      8,994
      -24.4%
      -24.4%
      13,300
      16,215
      -18.0%
      -18.0%
            PILOT
      8,099
      9,572
      -15.4%
      -15.4%
      15,279
      18,133
      -15.7%
      -15.7%
            RIDGELINE
      3,265
      -1
      -326,600.0%
      -326,600.0%
      5,946
      1
      594,500.0%
      594,500.0%
                                      ***    Memo: Accord FHEV
      1,867
      68
      2,645.6%
      2,645.6%
      3,578
      139
      2,474.1%
      2,474.1%
                    Memo: Civic Hybrid
      8
      143
      -94.4%
      -94.4%
      24
      304
      -92.1%
      -92.1%
          Acura Division Total
      10,864
      12,773
      -14.9%
      -14.9%
      20,066
      23,023
      -12.8%
      -12.8%
            ILX
      739
      1,500
      -50.7%
      -50.7%
      1,432
      2,733
      -47.6%
      -47.6%
            NSX
      46
      0
      0.0%
      0.0%
      96
      0
      0.0%
      0.0%
            RLX / RL
      103
      103
      0.0%
      0.0%
      183
      201
      -9.0%
      -9.0%
            TLX
      2,406
      3,080
      -21.9%
      -21.9%
      4,309
      5,319
      -19.0%
      -19.0%
                                      MDX
      3,541
      4,292
      -17.5%
      -17.5%
      6,815
      7,868
      -13.4%
      -13.4%
            RDX
      4,029
      3,798
      6.1%
      6.1%
      7,231
      6,902
      4.8%
      4.8%
                                      ***   Memo: RLX Hybrid
      27
      12
      125.0%
      125.0%
      38
      30
      26.7%
      26.7%
          Selling Days
      24
      24
          48
      48
                **** Hybrid
      2,066
      351
      488.6%
      488.6%
      3,944
      812
      385.7%
      385.7%
                *    Honda and Acura vehicles are made of domestic & global sourced parts
          **   Daily Selling Rate
          ***  Memo line items are included in the respective model total
          **** Hybrid includes FHEV, PHEV, CR-Z, Civic Hybrid, Insight, ILX Hybrid, RLX Hybrid, RLX Sport Hybrid, MDX Sport Hybrid and NSX
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