plus 4, Navistar Statement on FMTV Ruling - Stockhouse

Navistar Statement on FMTV Ruling - Stockhouse
Used cars get pricier and harder to find - WBIR
Beijing Autos to buy Saab car, engine technology - KIDK
GAO upholds protest of Oshkosh Corp. contract - CBS 5 - Green Bay
Videos From the Web: Car Videos - San Francisco Chronicle

Navistar Statement on FMTV Ruling - Stockhouse

Posted: 14 Dec 2009 08:46 AM PST

WARRENVILLE, Ill., Dec 14, 2009 (BUSINESS WIRE) --

Navistar Defense, LLC was informed today that the Government Accountability Office (GAO) sustained its protest of the Army Tank-automotive and Armaments Command's (TACOM) award of the Family of Medium Tactical Vehicles (FMTV) program.

In response to the ruling, Navistar released the following statement from Archie Massicotte, president, Navistar Defense:

"We appreciate the time and effort the GAO invested in the review of the FMTV solicitation process," said Archie Massicotte, president, Navistar Defense. "We welcome today's ruling and we will wait for further direction from the Army regarding what may be required of us moving forward."

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.

SOURCE: Navistar Defense

Navistar Defense Media contact: Elissa Koc, 630-753-2669 or Investor contact: Heather Kos, 630-753-2406 Web site: www.Navistar.com/newsroom

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Used cars get pricier and harder to find - WBIR

Posted: 14 Dec 2009 08:53 AM PST

By G. Chambers Williams III, The Tennessean

Looking for a good used pickup? How about a family car in the "affordable" range of $5,000 to $10,000?

Finding just what you need could be a challenge. Some Nashville-area dealers say the pickings are slim, as many of the most popular vehicles on the used-car market remain in short supply.

They blame the problem on fewer new car trade-ins, the aftermath of the summer's federal Cash for Clunkers program, automakers' recent efforts to limit fleet sales, and the fact that consumers are keeping their cars longer.

"It has been tough to keep the used-car lot stocked," said Mike Cunningham, general sales manager at Bob Frensley Chrysler-Jeep-Dodge in Madison. "The affordable market is almost nonexistent. We have those customers coming in on Saturdays wanting a nice $8,000 to $9,000 car. But we can't trade for one, let alone go out and buy one."

Consumers who find what they need may have to pay more for the vehicle, too, dealers say. Used-car prices are up considerably from the lows of last December, when they were depressed because of high fuel prices, a weak stock market and increased unemployment.

"We're finding that a lot of vehicles are $1,000 or more higher than they were last December for the exact same year and model," said Ben Freeland, owner of the Freeland Chevrolet Superstore in Antioch, which has a big used-car operation.

Dealers stop short of calling it an actual shortage, because there are plenty of previously owned vehicles for sale.

But choices are limited, and some vehicles - such as full-size Chevrolet and GMC pickups - are so expensive and in such short supply that some dealers have given up trying to find them.

"I'm not even looking for used GM pickups because you have to pay stupid money to buy them," said Bill Pratt, owner of Southeast Automotive on Nolensville Pike, formerly Southeast Chrysler-Jeep-Dodge. "Jeep Wranglers are tough to find, too, but they always have been."

Dealers trim inventory

Southeast Automotive started selling only used vehicles after its new-car franchise was terminated in June, along with those of nearly 800 other Chrysler dealers around the country.

Also contributing to the problem is the fact that many dealers trimmed their inventories drastically before the end of the year, a common industry practice, Freeland said.

Some dealers are getting creative and reaching out - sometimes way out - to find vehicles for their customers, using online wholesale auto auctions, said Chuck Hanes, co-owner of Smyrna Automotive Group, a used-car dealership that occupies the former quarters of Team Chevrolet.

Team Chevrolet officially lost its franchise in GM's dealer cutbacks in June, although the dealership had actually stopped selling cars after it entered Chapter 11 bankruptcy in January.

"Dealers who are Internet-savvy can find the cars they need, if they're willing to buy them from anywhere in the country," Hanes said. He does online searches for specific vehicles that customers want and then logs on to auction sites that are selling them. There, Hanes can either enter the bidding process from his desktop or press a buy-it-now button "just like on eBay" to get the vehicle.

There's even an on-screen button that allows him to get an instant shipping quote to have the vehicle delivered by an auto-transport company.

"A lot of dealers aren't comfortable with online buying and will limit themselves to trying to find what they need locally," Hanes said. "But if you're willing to go to the Web, the cars are out there somewhere."

Hanes insists on a seven-day inspection guarantee, which lets him return the vehicle if it's not what he expected, he said.

One recent morning, Hanes sat at his computer and bought a 2010 Chevrolet Camaro SS from an auction in Atlanta, then moments later bid on a 2008 Buick Enclave crossover utility vehicle in Denver.

"I have a comfort level buying online," he said. Finding the cars online has enabled him to build up the dealership's inventory. It opened Nov. 1 with only a handful of cars, but now has a wide selection ranging from pickups and SUVs to family and sporty cars.

Even on the Internet, though, Hanes has trouble finding those elusive GM pickups. "I do have several Fords and Dodges, though," he said.

Finding cars that can be sold for less than $10,000 is a challenge for Crown Ford on Thompson Lane, said sales manager Marty Horn. "That's a really tough market," he said. "Some of that is because of Cash for Clunkers, but it's mainly because people are keeping their cars longer."

CarMax, the national used-car chain, won't say whether it has had trouble stocking its lots - including two locations in the Nashville area.

But Tom Folliard, CarMax's president and chief executive, discussed the used-car shortage in a conference call when reporting the Richmond, Va.-based company's third-quarter financial results.

"There have been a lot of reports and supply is down, and it's largely ... because new-car volumes have been way down for well over a year now," he said. "It's just a basic supply-and-demand model."

At the low end of the scale, inventories of the under-$5,000 used cars sold mostly at "buy-here, pay-here" lots were initially depleted for several weeks because of the Cash for Clunkers sales of late summer, said Jerry Lewis, owner of Jerry Lewis Auto Sales in Murfreesboro.

But while inventories have rebounded now, sales are still lagging, Lewis said.

"The market is soft, and we're really feeling it now," he said. "I don't have a need to go to the auction because I have nowhere to park anything else right now."

Lewis said finding affordable trucks is the biggest challenge - so much so that he doesn't even try anymore. "We love trucks and they sell well, but prices are high and there are no good, cheap trucks in Tennessee," he said. "You just can't find them."

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Beijing Autos to buy Saab car, engine technology - KIDK

Posted: 14 Dec 2009 07:56 AM PST

SHANGHAI (AP) — Beijing Autos has agreed to buy technology from GM's Saab Automobile, a breakthrough for the Chinese automaker that could clear the way for General Motors Co. to sell the rest of Saab to another buyer.

An announcement Monday from state-owned Beijing Automotive Industry Holdings gave no details about the cost or timing of the acquisition of car and engine technology.

Beijing Autos, also known as BAIC, said it plans to buy the rights to some powertrain technology for Saab's 9-5 and 9-3 sedans, including engine and gearbox knowhow.

The production equipment used to make the 9-5 will be moved to China to produce BAIC cars, and Saab will help integrate the technology into the Chinese company's vehicles, the two sides said.

Saab will also support Beijing Auto's efforts to build its own car brands, using the Saab technology, said the announcement.

"This arrangement is excellent for both parties, now and for the future. We have developed a good relationship with BAIC and look forward to working with them to integrate this Saab technology into their future vehicles," Jan Åke Jonsson, managing director of Saab Automobile, said in a statement released by GM on Monday.

GM is also in talks with another buyer to sell the entire Saab brand, a person familiar with the negotiations said Sunday.

The sale of the technology to Beijing Autos will help Saab financially but won't hinder a deal to sell the Saab brand and its current production lines to another buyer, said the person, who spoke on condition of anonymity because they were not authorized to speak about the deals.

Beijing Autos has partnerships with Germany's Daimler AG and South Korea's Hyundai, but makes only trucks under its own brand name. The Saab acquisition will enable it to build a passenger car to call its own, but the company still has to build up its own reputation and product line, analysts said.

"BAIC may finally get a self-owned brand, however, the benefit from this deal depends on how much they have spent and on how well BAIC manages its Saab assets. We'll see," said Zhang Xin, an auto analyst at Guotai Jun'an Securities.

Earlier this month, GM had said it might phase out the Saab brand if it didn't find a buyer before the end of December. About 4,500 jobs at Saab are at stake.

However, GM said new potential buyers had emerged after Sweden's Koenigsegg Automotive AB dropped out of a deal to buy the company in November.

Private equity firm The Renco Group Inc. and investor group Merbanco Inc. are reportedly also interested in Saab.

Beijing Autos originally was part of the Koenigsegg team and said it would re-evaluate Saab after that deal fell through.

Beijing Autos, founded as Beijing Auto Works in 1958, was the first Chinese car maker to team up with a foreign partner, when it set up its Beijing Jeep Corp. joint venture with American Motors in 1983.

It and other Chinese automakers are keen to acquire technology at bargain prices that might help them leapfrog to higher quality production and build up their brand names in overseas markets. Several have sought to buy the European brands and technology of Detroit's "Big Three" automakers as they restructure.

Independent Chinese car maker Geely Group was also reportedly vying for Saab and is still said to be seeking to buy another Swedish automaker, Volvo Cars, from Ford Motor Co. That deal has not yet been completed.

Saab had a niche for years with people who wanted small, safe performance luxury cars but filed for bankruptcy in February. Its 9-3 and 9-5 are executive sedans that were first introduced in the 1990s.

Soaring sales, and a languishing American market, have made the China the world's biggest auto market this year, with sales forecast to exceed 13 million units, up a third from last year's 9.8 million.

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GAO upholds protest of Oshkosh Corp. contract - CBS 5 - Green Bay

Posted: 14 Dec 2009 08:10 AM PST

The Goverment Accountability Office has upheld the protest of a $3 billion contract previously awarded to the Oshkosh Corporation.

BAE Systems, Europe's largest defense company, and Navistar International Corp. appealed the Army's decision in September to award the contract for the Family of Medium Tactical Vehicles, or FMTVs, to Oshkosh.

BAE's Armor Holdings unit has made about 50,000 of the trucks since winning the first contract in 1991. Loss of the FMTV contract may force BAE to fire 3,000 employees at its plant in Sealy, Texas, the London-based company has said.

The GAO says the process in awarding the contract was flawed, and today's decision will send the contract into a new round of bidding by interested parties.

Michael R. Golden, the GAO's managing associate general counsel for procurement law, issued this statement today:

"Our Office sustained, or upheld, the protests today. Our review of the record led us to conclude that the Army's evaluation was flawed with regard to the evaluation of Oshkosh's proposal under the capability evaluation factor, and the evaluation of Navistar's past performance. We therefore sustained Navistar's and BAE's protests. We also denied a number of Navistar's and BAE's challenges to the award to Oshkosh, including challenges to the evaluation of Oshkosh's price.

We recommended that the Army: reevaluate the offerors' proposals under the capability evaluation factor, in a manner consistent with the terms of the solicitation; conduct a new evaluation of Navistar's past performance that adequately documents the agency's judgments; and make a new selection decision. We also recommended that if, at the conclusion of the reevaluation, Oshkosh is not found to offer the best value, the agency should terminate Oshkosh's contract for the convenience of the government. We further recommend that Navistar and BAE be reimbursed the costs of filing and pursuing the successful grounds of their protests related to their challenge of technical and past performance evaluation issues, including reasonable attorney fees. By statute, the Army has 60 days to inform our Office of its actions in response to our recommendations.

Navistar Defense, LLC, of Warrenville, Illinois, and BAE Systems, Tactical Vehicle Systems LP, of Sealy, Texas, protested the award of a contract to Oshkosh Corporation, of Oshkosh, Wisconsin, under request for proposals (RFP) No. W56HZV-09-R-0083, issued by the Department of the Army, U.S. Army Tank-Automotive and Armaments Command, for production of the family of medium tactical vehicles (FMTV). Navistar and BAE challenged the Army's evaluation of the offerors' technical and price proposals, and contend that the selection decision was flawed.

The Army received proposals and conducted negotiations with Oshkosh, Navistar, and BAE. The agency selected Oshkosh's proposal for award on August 26, 2009, and Navistar and BAE each filed a protest with our Office on September 4 and 5, respectively, with each supplementing its protest several times thereafter. In accordance with our Bid Protest Regulations, we obtained a report from the agency and comments on that report from Oshkosh, Navistar, and BAE. Our Office also conducted a hearing on November 9 and 10, at which testimony was received from a number of Army witnesses about the record. Following the hearing, we received further comments from the parties, addressing the hearing testimony as well as other aspects of the record.

Our decision should not be read to reflect a view as to the merits of the firms' respective approaches to produce the FMTV. Judgments about which offeror will most successfully meet governmental needs are largely reserved for the procuring agencies, subject only to such statutory and regulatory requirements as full and open competition and fairness to potential offerors. Our bid protest process examines whether procuring agencies have complied with those requirements.

The decision was issued under a protective order because the decision contains proprietary and source selection sensitive information. We have directed counsel for the parties to promptly identify information that cannot be publicly released so that we can expeditiously prepare and release, as soon as possible, a public version of the decision."

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Videos From the Web: Car Videos - San Francisco Chronicle

Posted: 14 Dec 2009 08:46 AM PST

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