Treasury Dept. is getting blamed for shutting down the troubled Auto Dealerships way too quick according to the report published by TARP.

TARP or Troubled Asset Relief Program was setup to manage and help car companies out of of bankruptcy. While it all went according to the plan, report states that the decisions were made too quick and left thousands of workers jobless thus increasing unemployment numbers.

We think that regardless of how this was handled, it appears that the folks over at Treasury made the correct decisions because the results are great so far.

CNNMoney

The Barrett-Jackson Auction Company reported more than $15 million in total sales during its inaugural Southern California automotive lifestyle event on June 25-27, 2010 in Costa Mesa, Calif. Nearly 400 vehicles including customs, classics, hot rods, restomods and original collector cars were sold at No Reserve at the OC Fair & Events Center. The auction, which attracted over 58,000 people, included ride ‘n drives by Ford and GM, Meguiar’s seminars, Ford Drifting and other exciting activities.

“As we expected, Southern California supported our first Orange County auction with amazing attendance,” said Craig Jackson, chairman/CEO of Barrett-Jackson. “Barrett-Jackson week was a whirlwind of excitement, entertainment and experiences unlike anything held in this area. From collector cars to an inaugural road rally, charity receptions and a local cruise-in, we delivered a fantastic event. We’re absolutely delighted with this year’s results, and look forward to building on this year’s success in 2011.”

During the three-day auction, nearly 400 vehicles crossed the Barrett-Jackson auction block as SPEED TV captured the action live for 18 hours. Classic cars were high on the bidders list at the auction as many were sold at top dollar. These cars included a Fathom Blue 1970 Chevrolet Chevelle SS 454 convertible with matching numbers for $253,000. A 1970 Plymouth Road Runner custom two door hardtop that appeared in two of “The Fast and the Furious” films sold for $187,000. A 1967 Chevrolet Corvette convertible sold for $181,500 and the 1940 Willys custom two door coupe fetched $181,500. Jesse James’ personal 1936 Ford custom five window coupe, built at West Coast Choppers, went to a new home for $165,000.

“All eyes were on our first auction in Orange County this weekend,” stated Steve Davis, president of Barrett-Jackson. “Barrett-Jackson is a barometer for the collector car market and people were excited to see what trends would emerge. This auction proved true to So Cal as bidders went for classics, restomods and customs that they could cruise around in. It’s not surprising that those types of vehicles would be in such demand since Southern California is the birthplace of hot rodding.”

Barrett-Jackson auction also helped raise more than $1 million for charity at the event. The Darrell Gwynn Foundation raised $280,000, including a 1990 Darrell Gwynn Coors Extra Gold Top Fuel Dragster replica ($150,000) and a limited edition 2008 Barrett-Jackson Edition Ford Shelby GT ($130,000). The Juvenile Diabetes Research Foundation received over $100,000 with the sale of a 2011 Ford Mustang two door custom coupe DUB wide body. The 1970 “Project American Heroes” Chevelle SS custom coupe sold for $250,000 with all proceeds benefiting the Armed Forces Foundation.

The Main Auction Pavilion was the heartbeat of the event with crowds vying for their own piece of Barrett-Jackson Orange County inaugural auction history. The top ten cars at the Orange County auction included:

• Lot #370 - 1970 Chevrolet Chevelle SS 454 Convertible - $253,000
• Lot #350 - 1970 Chevrolet Chevelle SS Custom Coupe - $250,000
• Lot #362 - 1970 Plymouth Road Runner Custom 2 Door Hardtop - $187,000
• Lot #375.1 – 1967 Chevrolet Corvette Convertible - $181,500
• Lot #383 – 1940 Willys Custom 2 Door Coupe - $181,500
• Lot #354 – 1931 Packard 840 Roadster - $170,500
• Lot #355 – 1938 Packard Victoria Convertible - $170,500
• Lot #382 – 1936 Ford Custom Five Window Coupe - $165,000
• Lot #378 – 2004 Maybach MOD 62 Four Door Sedan - $154,000
• Lot #386.1 – 1990 Darrell Gwynn Coors Extra Gold Top Fuel Dragster replica - $150,000

“Our Orange County auction was designed to tap into So Cal’s car culture and introduce more people to the hobby,” noted Jackson. “The result was a great success. About 58 percent of bidders were first time buyers to the auction scene and 57 percent were first time consignors. They’re coming to Barrett-Jackson because of the great cars and the confidence inspiring transparency that you can only find at our auctions.”

“Something for everyone” was the theme of the weekend as people strolled through Ford and GM exhibits, checking out the latest automotive toys and custom rides. The Kids Kar Zone was set up to provide bean bag tosses, a milkshake drinking contest by Ruby’s, face painting, balloon twisting and spin art, while parents sipped on wine at the Orange County Wine Society booth.

The Road Rally kicked-off the week long automotive lifestyle event on Saturday, June 19, with more than a hundred cars roaring down Bristol Street and ending at the OC Fair & Event Center with a mini car show that followed. The Father’s Day Cruise-In at Connell Chevrolet hosted 164 vehicles. First time owners and serious collectors mingled to the sounds of rock music and the smell of BBQ. President Steve Davis and Gary Bennett, vice president of consignment at Barrett-Jackson, were on hand to pass out three Barrett-Jackson Choice Awards.

The week included a special reception to celebrate the Barrett-Jackson Cancer Research Fund in Memory of Russ and Brian Jackson as well as the Childhelp Drive the Dream Charity Gala where $150,000 was raised to help abused, neglected and at-risk children. Barrett-Jackson hosted the Opening Night Party on Thursday, June 24 with models clad in the latest designs by Oscar de la Renta, Pucci, Roberto Cavalli, MaxMara and Ermenegildo Zegna during the South Coast Plaza fashion show.

“The Orange County auction was a one-of-a-kind experience that is unlike our other destinations,” added Davis. “The event’s local flair meant a relaxed atmosphere that only So Cal can provide. With tens of thousands of people in attendance over the weekend, we created a new tradition for Southern Californians to enjoy every summer. We look forward to coming back again with even more cars and high-energy entertainment.”

US auto firms notched a double-digit jump in sales in May as they cashed in on an economic recovery while Japanese giant Toyota saw volume modestly rise despite a recall crisis, data showed Wednesday.

Chrysler, which together with General Motors emerged from bankruptcy about a year ago,posted the largest increase in year-on-year sales, which surged 33 percent.

It was the firm's second straight monthly gain, with sales climbing to 104,819 units from 79,010 units in May last year.

Company executive said it was the first time monthly sales topped the 100,000 threshold since March last year, when the market was depressed after a financial crisis plunged the world's largest economy into recession.

"May was another positive sign as sales momentum continues to build for Chrysler Group, exceeding the 100,000-unit threshold for the first time in more than a year," said Fred Diaz, Chrysler's president and chief executive.

"The company continues to show improvement each month, with May being our strongest month this year, exceeding overall industry growth for the second month in a row."

GM, which reported last month its first post-bankruptcy quarterly profit in three years on the back of cost-cutting measures, said its US sales rose 16.6 percent in May from a year earlier.

It was the eighth consecutive month of gains for the top US automaker, with 223,822 units sold, outpacing April sales of 183,091 vehicles.

Steve Carlisle, vice president of GM's US sales operations, said the company's brands had outperformed the US auto market thanks to its newest products.

Ford, the strongest of the local auto giants, said its US sales soared 21.9 percent in May from a year earlier -- the sixth month in a row its sales have increased more than 20 percent.

The company said total sales rose to 196,912 units from 161,531 units in May last year.

"Our laser focus on fuel efficiency and quality is paying off for our customers and for Ford," said Ford vice president Ken Czubay.

Ford also announced it would phase out its 71-year-old Mercury brand in the fourth quarter as part of restructuring that will also see an expansion of its luxury Lincoln line-up.

Edsel Ford, son of company founder Henry Ford, established Mercury during the Great Depression as a mid-priced alternative to the mainstream Ford and upscale Lincoln.

Mercury will now join a host of other Detroit brands that faded away this decade, including GM's Saab, Saturn, Hummer and Pontiac, along with Chrysler's Plymouth brand.

Toyota meanwhile posted the smallest year-on-year sales increase in May among the top automakers after being plagued by massive safety recalls earlier this year.

Its US sales climbed 6.7 percent from a year earlier to 162,813 units.

Don Esmond, senior vice-president of automotive operations for Toyota Motor Sales, USA, said the company was working hard "to exceed our customers' expectations for quality, safety, reliability and service."

Toyota has pulled around 10 million vehicles worldwide since late last year for safety issues and has paid a record 16.4-million-dollar fine to settle claims it hid gas pedal defects.

The beleaguered auto giant also faces a host of lawsuits over "unintended acceleration" issues that prompted the majority of the recalls.

Crisis-hit automaker Toyota on Monday said global sales surged 26.3 percent year-on-year in March, despite millions of safety recalls worldwide.

The Toyota group, which includes brands Daihatsu and Hino trucks, said it sold 876,126 vehicles in March, up from 693,759 a year earlier, spokesman Paul Nolasco said.

Also in March, Toyota said global production jumped 82.2 percent to 860,534 units compared to a year ago, when the industry was in the grip of the global economic crisis.

<img src="http://www.autotalk.com/pictures/data/735/orange-2008-toyota-supra-drawing.jpg" />

The beleaguered carmaker has recalled around ten million vehicles worldwide in recent months due to a series of accelerator and brake defects.

In the latest blow, it was downgraded by ratings agency Moody's over the impact of mass recalls on the company's future profitability.

Toyota recently widened a recall of two sports utility vehicles -- the Lexus GX 460 and some models of the Land Cruiser Prado -- to 34,000 units worldwide over stability problems.

Last week the company agreed to pay a 16.4-million-dollar fine, the largest for an automaker in the United States, for hiding for at least four months accelerator pedal defects blamed in more than 50 US deaths.

Europe's top automaker Volkswagen reported runaway first-quarter results on Wednesday, with net profit almost doubling and sales soaring by close to a fifth, echoing strong results from competitors.

"We started 2010 with a large number of attractive new vehicles and pressed ahead with our model offensive," the German giant's chief executive Martin Winterkorn said in a statement.

"The good start to the current year shows that we are on the right path and that we were able to benefit disproportionately from the growth in the global auto market in the first quarter," he said.

Volkswagen, which aims to overtake Japan's troubled Toyota as the world number one by 2018, said net profit rose to 473 million euros (633 million dollars) from 243 million euros in the year-earlier period.

Operating profit was 848 million euros, up from 312 million euros in the first quarter of 2009.

Sales soared 19.4 percent to 28.6 billion euros. Pre-tax income was 703 million euros, compared to just 52 million euros. The results were better than expected, Merck Finck analyst Robert Heberger said.

Volkswagen's global vehicle sales in the first quarter soared 24 percent year-on-year as the company continues to benefit from its large presence in the dynamic Chinese and Brazilian markets.

The results follow solid first-quarter results from other European automakers this week, with Italy's Fiat saying on Wednesday that sales rose 14.7 percent to 12.9 billion euros.

France's PSA Peugeot Citroen said Wednesday that its sales were up 27.5 percent at 14 billion euros, raising its operating profit outlook.

VW's domestic rival Daimler, owner of the Mercedes brand, on Monday raised is 2010 profit targets after returned to profit in the first quarter with operating earnings of 1.2 billion euros on sales of 21.2 billion euros.

Wolfsburg-based VW, which managed to stay in the black last year despite the global downturn, said it still expected to report higher deliveries to customers this year, as well as increased sales and operating profit.

Interest rate and exchange rate volatility would remain a drag on income, however, it warned.

The firm's brands range from super-luxury Bentley and premium brand Audi to Skoda and Seat.

Last month, Winterkorn said he was upbeat on the automaker's growth potential in the United States and China in 2010, but he expects "strong headwinds" in Europe and the company's home market of Germany in particular.

Due to its extensive line-up of small cars, Volkswagen was one of the biggest beneficiaries of state-backed "cash for clunkers" scrapping incentives, which were launched last year in many major markets to revive demand.

The company therefore has a large exposure to the anticipated decline as most of the initiatives expire.

South Korea's second largest carmaker Kia Motors said Friday its net profit more than quadrupled in the first quarter to March this year, thanks to strong sales at home and abroad.

Kia, an affiliate of Hyundai Motor Co., said it earned 398.5 billion won (358 million dollars) in the three months ended March 31, up from 97.3 billion won in the same period last year.

"Strong demand for new models such as the K7 sedan and the Sorento R sport utility vehicle and increased sales in the United States, China and Russia drove profit and sales higher," a company spokeswoman said.

First-quarter operating profit also surged more than three-fold to 309.8 billion won as sales rose 39 percent to 4.86 trillion won.

The country's largest automaker, Hyundai Motor, on Thursday reported its net profit jumped almost five-fold to to an all-time record 1.12 trillion won (1.0 billion dollars) in the same period on the back of strong sales abroad.

President Barack Obama announced Saturday that the bailout his government offered to General Motors and Chrysler last year have shown great results.  President was spending a weekend with his wife Michelle in Asheville, NC.

Conservatives raised hell last year when President Obama announced the bailout of General Motors and Chrysler but Obama went ahead with his decision.

Both General Motors and Chrysler have reported great progress with GM announcing last week that it has fully paid the bailout money.

Source: Reuters

Results from Toyota Motor to be released next month are expected to show the auto giant returning to profit in the year to March, despite a massive recall scandal, news reports said Saturday.

The Japanese automaker is expected to post a group operating profit of up to 50 billion yen (530 million dollars), reversing a 461 billion yen operating loss for the previous year, the Nikkei business daily said.

The uptick is mainly due to cost-cutting and a weak yen, which offset the costs of the global recalls, the daily said.

The company has recalled around 10 million vehicles worldwide since late last year due to accelerator and brake defects, but nevertheless expected to see a "good earnings situation" a Toyota executive told Kyodo News.

Toyota had earlier forecast an operating loss of 20 billion yen for the year to the end of March.

Sales were expected to show a five percent fall to 7.2 million units, Nikkei said. The better-than-expected sales were partially due to strong demand for its new Prius hybrid car in Japan.

A Toyota spokesman was not immediately available to comment on the report.

The firm is due to announce its earnings results in early May.

On Monday the company agreed to pay a 16.4-million-dollar fine, the largest for an automaker in the United States, for hiding for at least four months accelerator pedal defects blamed in more than 50 US deaths.

Toyota faces at least 97 US lawsuits seeking damages for injury or death linked to sudden acceleration and 138 class action lawsuits from American customers suing to recoup losses in the resale value of Toyota vehicles.

The company overtook General Motors in 2008 as the world's top automaker, but the safety recalls raised questions over whether it sacrificed quality to become number one.

Contradictory to the reports in the news media, it appears that the US economy is on an upward turn. AP is reporting that US auto sales have surged 47% compared to the first quarter of 2009.

This was also confirmed by Ford Motor Co's President Mark Fields when he disclosed the numbers for the first quarter sales. Fleet sales are important for Ford due to the large share in commercial fleet market.

2009 was a bad year for Fleet sales in US due to the economic downturn as businesses and government were hit by the economic downturn.

Other than Ford, Nissan, Hyundai and Kia are also seeing improved Fleet Sales.

Source: AP

US auto giant General Motors said Monday it expected its annual car sales in China to hit more than three million vehicles in 2015 as the country's car market continues to outpace that in the US.

Kevin Wale, GM China Group president and managing director, told a briefing that the carmaker's sales in China would exceed two million units this year, hitting its target four years ahead of schedule, Dow Jones Newswires reported.

GM sold a record 1.83 million units in China last year.

Wale said underlying demand was so strong in China that sales would remain robust even if the government scaled back incentives for the industry put in place during the financial crisis to boost consumption.

China's auto sales overtook those of the United States for the first time last year, making the Asian country the world's biggest auto market.

Sales have been driven by government incentives such as lower taxes on cars with engines smaller than 1.6 litres and subsidies for clean-technology vehicles. Most of those measures have been extended into 2010