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BLUE BOOK Briefing 2 LATEST NEWS STORIES on KBB.COM (CONTINUED) www.kbb.com BLUE BOOK APRIL 2011 BRIEFING Kelley Blue Book Public Relations Contacts: Robyn Eagles | Director, Public Relations Joanna Pinkham | Senior Public Relations Mgr Brenna Robinson | Public Relations Mgr Adair Ahlers | Public Relations Coordinator 949.268.3049 | [email protected] 949.268.3079 | [email protected] 949.267.4781 | [email protected] 949.268.2755 | [email protected] In This Issue: WHAT’S NEW: INDUSTRY INSIGHTS: Kelley Blue Book Mobile Apps Hit One-Million Download Mark; Developers Thank Car Shoppers Via Timely commentary from Jack R. Nerad, executive editorial director and executive market analyst, Facebook Kelley Blue Book’s kbb.com: NEW TSUNAMI POISED TO CRASH OVER CAR INDUSTRY Kelley Blue Book Analysts Recommend Consumers Wait to Replace Current Vehicle Until Gas Prices Drop LATEST NEWS STORIES ON KBB.COM: Majority of New-Car Shoppers Plan to Research Financing Options Online, According to Latest The latest video and written news stories by the editorial staff of Kelley Blue Book’s kbb.com kbb.com Vehicle Financing Study NEW-VEHICLE REVIEWS ON KBB.COM: Kbb.com: Ford Back on Top for Most-Considered Auto Brand, Gains Significant Lead Over All-new and updated video and written reviews from the editorial staff of Kelley Blue Book’s Competition kbb.com More Than 80 Percent of Car Shoppers Say Gas Prices Have Influenced Vehicle Purchase Considerations; Increasing Number of Consumers Rate Current Economic Situation ‘Poor’ INDUSTRY INSIGHTS: New Tsunami Poised to Crash Over Car Industry - Jack R. Nerad, executive editorial director and executive market analyst, Kelley Blue Book’s kbb.com he March 11, 2011 earthquake and resulting tsunami that crippled Japan has been widely have delivered to their showrooms simply won’t WHAT THIS EVENT PROVES Treported. Video and photos of the devastation appear. And, finally – most importantly – they won’t WITHOUT QUESTION left by the natural disaster still haunt us daily, but be sold. IS THE INTERLOCKING one aspect of the disaster that has been largely NATURE OF THE GLOBAL under-reported by the general media are the The fact that vehicle production is disrupted in crippling effects the quake/tsunami has had (and Japan is a no-brainer. A quick glance at the news AUTO INDUSTRY. WHILE will continue to have) on the global auto industry. will deliver the message that it will be extremely JAPANESE CARMAKERS In fact, the earthquake/tsunami reference is very hard for the Japanese auto industry to resume its ARE BEING FORCED TO apropos to describe the situation we are in, because momentum. The disruptions elsewhere are far less DEAL WITH A SUPPLY as it concerns the auto industry, we have already intuitive, but equally real. For example, Ford Motor CHAIN TORN ASUNDER experienced the earthquake but the tsunami has yet Company recently shut down its Genk, Belgium, to wash over us. small-car plant because of a parts shortage. At BY THE CATACLYSMIC least two U.S.-based manufacturers are limiting EVENTS, THE World’s What this event proves without question is the the exterior colors that can be ordered because of AUTOMAKERS ARE ALSO interlocking nature of the global auto industry. While shortages of Japanese pigments. The instances SUFFERING FROM A Japanese carmakers are being forced to deal with of the effects are legion. And now another specter SHORTAGE OF PARTS a supply chain torn asunder by the cataclysmic looms -- Japanese carmakers and parts suppliers events, the world’s automakers are also suffering might also face a critical shortage of electricity to AND OTHER SUPPLIES from a shortage of parts and other supplies sourced power their plants. SOURCED FROM JAPAN... from Japan, and those shortages will have ripple - JACK (or possibly even tidal) effects down the road. One only has to watch the evening news to NERAD Parts that aren’t being produced today will prevent grasp the latest travails of the Japanese nuclear cars that require those parts from being produced power industry. Potential radioactive leaks have tomorrow, and those cars that aren’t produced created the big headlines, but the underlying story tomorrow will, of course, not be shipped the next is that substantial amounts of electrical generating day. Therefore, sometime in the next several weeks, capacity have gone off-line, prompting fears that vehicles that American dealers were expecting to even when complete control of the damaged nuclear reactors is regained, there won’t be enough electricity to power Just how big the problem will become remains to be seen, but there is no carmaker and supplier factories. doubt that supply of vehicles built in Japan will be severely curtailed in the next several weeks. Honda and Mazda have already asked their American dealers to Currently, Tokyo Electric Power is instituting rolling blackouts to help cease ordering vehicles built in Japan, and others could quickly follow suit. In ration the limited supply of electricity available. But rolling blackouts are very fact, all over the world vehicle production has been severely disrupted. That is inefficient for large industrial plants because they idle workers who are “on the tsunami that has yet to break over the global industry. the clock.” Some have suggested rotating power supply among the various Japanese car manufacturers and other key industries like consumer electronics, The gap in production now and in coming weeks might be simply a blip, a but no definite plan has been made. Until there is a definitive plan, it will be shortfall that could quickly be made up by longer hours or additional shifts once difficult for individual manufacturers to plan production even when the requisite the situation normalizes. Or it could have much greater implications, potentially parts are available. bankrupting supplier companies and severely weakening manufacturers who already have been battered by the global recession. What we do know for certain is that it will have serious effects, and we haven’t come close to feeling all those effects just yet. LATEST NEWS STORIES ON KBB.COM : Check out the very latest news stories by visiting www.kbb.com and scrolling down to the Latest News & Articles link on the home page. The following latest news stories by kbb.com’s editorial staff went live on the site or were updated during March 2011. Written Stories Posted to kbb.com: 2011 Aston Martin V8 Vantage S - Geneva Auto Show Chevrolet Colorado Pickup Concept - First look 2011 Aston Martin Virage -- Geneva Auto Show Chevrolet Orlando Play-Doh Edition - Unveiled in London 2011 Bentley Continental Supersports ISR Edition - Geneva Auto Show Chevy Goes Social @ South ‘Buy’ Southwest 2011 Geneva Auto Show First Drive - 2012 Buick LaCrosse eAssist 2011 Kia Sorento Review - A new direction, a new home Ford intros new Focus, new sock puppet 2011 Kia Sportage SX Turbo - First look Infiniti ETHEREA Concept - Geneva Auto Show 2011 Volkswagen Golf Cabrio - Geneva Auto Show Italdesign Giugiaro Volkswagen Tex Concept - Geneva Auto Show 2012 Alfa Romeo 4C Concept -- Geneva Auto Show Italdesign Guigiaro Volkswagen Go! Concept - Geneva Auto Show 2012 Audi A6 First Drive Review J.D Power CSI Study finds Lexus and Mini owners most satisfied 2012 BMW 650i Coupe - First look Japan disaster likely to have far-reaching effects on car industry 2012 BMW Active E - Geneva Auto Show Koenigsegg Agera R - Geneva Auto Show 2012 Chevrolet Colorado pickup teased Land Rover Range-e Concept - Geneva Auto Show 2012 De Tomaso Deauville - Geneva Auto Show Lincoln tops 2011 J.D Power Vehicle Dependability Study 2012 Fisker Karma production begins Main Street in Motion offers test drives of GM and competitive cars 2012 Ford Fiesta to add new personalization packages Mazda Minagi Concept -- Geneva Auto Show 2012 Ford Focus SE Sedan with SFE package joins the 40 mpg club Mitsubishi Lancer Evolution facing its biggest change ever 2012 Jaguar XKR-S - Geneva Auto Show Mitsubishi Small Global Concept - Geneva Auto Show 2012 Lamborghini Aventador LP700-4 -- Geneva Auto Show New battery tech promises recharging in minutes not hours 2012 Lexus LFA Nurburgring Package - Geneva Auto Show Nissan ESFLOW Concept - Geneva Auto Show Preview 2012 Mazda5 First Drive Review Nokian Tyre Audi RS6 sets new ice speed mark 2012 Mercedes-Benz C63 AMG Coupe - First Look Porsche 911 GT3 R Hybrid 2.0 loses weight and gains power 2012 Morgan 3 Wheeler - Geneva Auto Show Porsche Semper Vivus -- Geneva Auto Show 2012 Nissan GT-R: Driving it fast(er) Renault R-Space Concept - Geneva Auto Show 2012 Opel Ampera - Geneva Auto Show Rolls-Royce Phantom EE Concept -- Geneva Auto Show 2012 Saab 9-3 Griffin - Geneva Auto Show Saab PhoeniX Concept - Geneva Auto Show 2012 Tesla Model S update Subaru Boxer Sports Car Architecture - Geneva Auto Show 2012 Toyota Prius+ - Geneva Auto Show Take a look inside the new 2012 Ferrari FF 2012 Volkswagen Golf R - European Preview Drive Tata Pixel Concept - Geneva Auto Show 2012 Volkswagen Tiguan - Geneva Auto Show Toyota FT-86 II Concept -- Geneva Auto Show 2014 BMW i8 spied testing in the snow Toyota Yaris HSD Concept - Geneva Auto Show 2014 Porsche 918 Spyder ordering process opens Toyota recalls 2.17 million more vehicles for floormat-related fixes Audi confirms more clean diesels and E-tron EV heading to the U.S. Toyota to add 10 new hybrids by 2015 BMW offers a look inside its secret ‘Plant Zero’ development factory Valvoline introduces NextGen line of recycled motor oil Berkeley Lab creates revolutionary storage medium for hydrogen fuel Volkswagen Bulli Concept - Geneva Auto Show Bertone Jaguar
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