Chrysler offering even more incentives to close out July

The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

Daimler forces Chrysler to give up goods on $515M Q2 loss

Normally the privately owned Chrysler LLC is under no obligation to reveal its financial performance to Wall Street, but yesterday the Cerberus-owned automaker was forced to show a few pages from its accounting books thanks to one of its largest stakeholders and former owner, Daimler AG. The German automaker revealed that in the last six months, its 19.9% stake in Chrysler has cost it $585 million. To clarify Daimler's numbers, Chrysler also revealed yesterday that the loss being attributed to it, all of which was incurred in Daimler's first fiscal quarter of the year, is around 65 million euro, or $103 million, using American accounting standards. Perhaps realizing that all analysts had to do was multiply Daimler's loss by five to arrive at Chrysler's total loss for the last quarter, the automaker just came right out and said it lost about $515 million. While a mere pittance to the $8.7 billion worth of red ink Ford spilled during Q2, it was enough to drag down Daimler's numbers halfway around the world.

Officially Official: Harley-Davidson purchases MV Agusta, Cagiva

Click above for high-res gallery of the H-D Night Rod Special

Earlier rumors of an impending purchase by Harley-Davidson of Italian bike maker MV Agusta turned out to be spot-on, as the American Motor Company has officially announced the deal today. The total price for MV, which also owns Cagiva, is reported at about $109 million, with $70 million of that sum required to pay off MV's debt. Claudio Castiglioni, who's family had previously owned the company privately, will remain on board and will serve as Chairman. Castiglioni stands to pocket an undisclosed sum in 2016 if he is able to meet certain stipulated profit goals.

This new deal is an interesting one on a few levels. First, HD already owns a sportbike brand, though its Buell subsidiary plays on a very different level than MV Agusta. The influx of cash from Harley should do wonders for MV's current range of sports and naked bikes, and may allow a greater number of customers access to the storied Italian marque. Consider the fact that Buell was a very small player with a number of quality problems before the Motor Company stepped in and fixed the situation. Additionally, the MV Agusta and Cagiva brands carry quite a strong legacy of high quality machines and will lend instant credibility in Europe and America to Harley's sporting credentials. The full press release is posted after the break.

Surprise! Millionaires can still afford Lambos, profits rise

It seems that well-to-do individuals who grew up staring at Countach posters on their bedroom walls are still finding a way to fulfill their childhood fantasies. Both sales and profits are up at Lamborghini, with most of the increases coming from emerging markets, including the Middle East, China and Hong Kong. Lamborghini CEO Stephan Winkelmann believes that the key to its recent sales successes is its policy of producing fewer vehicles than it believes it can sell, thereby keeping demand high. Winkelmann also noted that costs go down as production goes up, a further boon to increased profitability.

With Lambo's latest Gallardo LP560-4 about to hit its 114 dealerships, the second half of the year is already shaping up quite nicely. Ridiculously expensive options with high profit margins like $19,000 carbon-ceramic brakes are sure to help the bottom line too.

Toyota expecting profit drop in 2008

The current economic environment in the United States is hurting all auto makers these days, even mighty Toyota, which was once considered immune to so-called market realities. Though its overall performance last year would be considered a stellar achievement for any other automaker, Toyota's 28% profit plunge in the fourth quarter of 2007 points to an expected 27% drop in annual profits in 2008. If Toyota's revised forecast proves accurate, 2008 would break a nine-year stretch of profit growth. In addition to the slowing U.S. market, Toyota also cites high material prices, the worldwide credit crunch and a strong yen as contributing factors in its mild downturn. Toyota's expected profit drop is certainly newsworthy, but we just have to wonder how the money-losing American car companies will cope in the U.S. market with the same issues. While sales of cars are gaining strength, the SUV and truck markets are sinking with what could be Titanic-like implications for the truck-heavy lines from Ford, Chrysler and GM.