In the market

Auto-loan delinquencies, debt both on the rise

The percentage of auto loans that were past due 60 days or more rose 11.5 percent in the second quarter, compared with last year, according to credit reporting agency Trans-Union.

The rate rose to 0.68 percent of outstanding loans, from 0.61 percent in 2007’s second quarter.

Delinquencies edged up 0.03 percent from the first quarter of 2008.

Peter Turek, automotive vice president in TransUnion’s financial services group, said auto-loan delinquencies tend to be cyclical, with the fourth quarter typically showing the fewest problematic payments. Delinquencies tend to rise in the first and second quarters.

Delinquencies were highest in Washington, D.C., at 1.41 percent, and Mississippi, at 1.25 percent.

The states with the lowest auto-loan delinquency rates were Alaska, at 0.22 percent; North Dakota, at 0.30 percent; and Wyoming, at 0.41 percent.

Average auto debt also increased for the second quarter, up about 2 percent to $12,869, from $12,630 in the year-ago quarter.

Turek said part of this increase reflects the ongoing housing slump.

“In some states there’s a lack of home equity,” he said. “Folks have less access to home equity to finance auto purchases,” which has led to more people taking out car loans.

Chrysler targets 2010 for sale of electric car

Chrysler LLC said recently that it will put an electric car on sale in North America in 2010.

The announcement reveals that despite missing out on the buzz surrounding the Chevrolet Volt, Chrysler is neck and neck with General Motors Corp. in the race to put a mass-produced electric vehicle on America’s roads.

The company showed reporters three electric prototypes: a Dodge sports car, a Jeep and a Chrysler minivan.

But Chrysler’s product development chief, Frank Klegon, said the automaker hasn’t decided which one it will roll out first.

The Dodge sports car is completely electric, but the Jeep Wrangler and Chrysler minivan models will have a recharging system similar to the Volt, which GM has said will go on sale in November 2010.

The Volt plugs into a standard wall outlet and can go 40 miles on battery power alone.

Then a small gasoline engine kicks in to recharge the batteries, allowing the car to travel hundreds more miles.

Chrysler is still working with several partners on the battery technology for its vehicles, Klegon said.

Rising gas prices and the decline in U.S. auto sales have put GM, Chrysler and Ford Motor Co. under pressure to break away from their dependence on trucks and SUVs for profits and focus on more fuel-efficient vehicles.

Chrysler’s sales have taken the hardest hit, but the Auburn Hills, Mich.-based automaker appeared to be behind other automakers that have touted plans to launch electric vehicles in the next few years.