automotive: February 2009 Archives

Interesting article in the New York Times this morning discusses how rental car companies are dealing with the downturn. In short: their cars are getting worse. Usage time for a typical car has crept closer to two years and total mileage can pass 30,000.

The reason for this is a bit counterintuitive: rental companies have to sell their old cars to make way for new ones. With the auto market in shambles, they can't move the old inventory profitably, so they can't afford (or make room for) new ones, leaving an aging auto fleet with few options.

Swedish carmaker Saab, which is currently owned by General Motors, has applied for creditor protection as a first step toward a sale. Saab is looking for funding that will aid the marque in a sale or a spinoff from GM. Saab, which was founded in 1937, was purchased by GM in 1990. GM, of course, is experiencing extensive fiscal woes and thinks a slimmer brand lineup is part of a key to its survival. It is also considering moves for Hummer and Saturn.