April 25th, 2006 by admin
A look at an impressive new entry in the battle for better fuel economy.
Recently, I’ve posted several topics about auto news relating to the gas crunch and vehicles with good fuel economy. Today, however, I was very excited when I saw the Loremo. Not only does it get 157 miles per gallon but it just looks great.
The Loremo is produced by a six year old German car company name Loremo AG. Despite its gas mileage the Loremo is not a hybrid and still has good performance.
The base model Loremo LS is powered by a 2 cylinder 20 hp turbo diesel engine that will reach a speed of 100 mph and the GT model will reach up to 135 mph with a 0 to 60 mph acceleration of 9 seconds.
Wow! That sounds great but how did they do it? Well, the car is extremely light weight and aerodynamic. And even with its light weight, the Loremo still meets safety standards because of their patented “linear cell structure” method.
This sounds like a very ground breaking and interesting car but, sadly, at this time it looks like it will only be for sale in Europe
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April 24th, 2006 by admin
Ford endured a first quarter loss and more may be coming.
Just yesterday gas was going for $2.85 a gallon in the city where I live. And I’m not talking about the premium stuff. We all know that it will continue to climb as summer approaches. Right now there is talk of $4.00 a gallon in the near future!
This is definitely not good for our wallets. It is also not good news for Ford. The automaker just posted a $1.19 billion first quarter loss. The company has a lot of problems right now, but the one that directly correlates with the high gas prices is the fact that they have been heavily dependent on their SUVs for years. Ford’s SUVs, along with its F-series trucks, have been bailing out the companies weak car sales for years now.
Ford’s CEO, Bill Ford Jr. seems to be ready to turn the company around inspite of gas prices:
"Three months in, we are in the very early stages of this strategy to transform the way we do business, down to its very core," said chairman and CEO Bill Ford Jr.
However, as gas goes higher they may see declining SUV sales as motorists turn to smaller vehicles with better fuel economies. Their F-series trucks will also have to face some new competition as GM and Toyota take aim at them with their new truck offerings.
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April 21st, 2006 by admin
A look at Toyota’s impact in the U.S.
I recently saw a billboard which read, “Want to support Japan? Then buy Toyota and Honda.” I’m sure whoever is responsible for the ad (probably someone affiliated with one or all of the big three North American automakers) is very patriotic. However, in today’s world of increased globalization, this may not necessarily be the case anymore.
Toyota hopes to help make that clear with some new advertisements of its own. Their new ad campaign will promote how Toyota is good for America. These ads will detail how much money they have invested in their U.S. plants and how many Americans they employ. They are also planning to expand even more in the States while GM and Ford face cutbacks.
There will probably be some people who are upset at these ads and will never believe a foreign company could be good for America. However, if you take Toyota’s (and any other foreign companies) sales as any indication, most people buy whatever car they want.
And shouldn’t they? This is America. The land of freedom and capitalism. Let the people choose, and may the best product win.
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April 20th, 2006 by admin
Thoughts about the new VW commercials.
Have you seen the new Volkswagen Jetta commercials? Wow! After I saw them, that was the first thing I said. And, I think, I repeated that phrase on each repeat viewing as well. Don’t worry if you haven’t seen them yet and are worried I will ruin some surprise. You probably won’t see it coming anyway.
Both commercials start out very unassuming, and wiht someone driving a Jetta and having a casual conversation with the passenger(s). At first, you might not realize it is a car commercial. And then, all of a sudden, through no fault of the Jetta driver, a very realistic car wreck happens. If it catches you off guard, which I believe is what the ad is designed to do, it is very much akin to a jump scene at a scary movie. These are not small fender benders either. The first thing you think about is how badly the people are hurt. Which leads to the next scene in which everyone who was in the car is shown visible shaken by the accident but otherwise very ok. The new VW slogan which is, “Safe Happens,” is then shown.
After I saw this I immediately thought two things. First was, “wow, that was a weird, almost scary commercial.” And the second was, “that car must be really safe.” I realize that it is just a commercial and none of it was real but they still made their point.
Now, my second thought was, what they were going for with these tv spots? However, I wonder, if a lot of people might just think it is a disturbing commercial. Usually, car companies want the thought of an accident to be far from anyone’s mind when their commercials are running. This is a bold strategy for Volkswagen and it will interesting to see how people react to it.
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April 19th, 2006 by admin
Recent news about auto parts suppliers.
Here in America, our cars and trucks are a very important part of our everyday lives. Most of us could not function without them. Many of you know that if one little part goes wrong, it could put the whole vehicle out of commission. And there are a lot of parts.
The auto makers, such as Ford, GM, Toyota, etc., who make our cars, do so with parts they receive from their suppliers. And many of these suppliers are experiencing tough times right now. Some, including Delphi Corp., have had to file for bankruptcy. This definitely can put a kink in the auto makers plans. However, the auto makers themselves might be partly to blame.
One of the reasons many auto parts suppliers are facing difficulties is because auto makers have been demanding lower prices. This would hurt by itself, but the suppliers have had to face rising costs for the materials used to make their parts.
How has this affected the auto makers? Two, specifically, have made news in this department of late.
Toyota has been working hard to secure its relationship to its suppliers by working more closely with them. They hope this will help bring costs down for the parts makers and keep their supply chain moving properly.
Meanwhile, Ford has made news advocating some bankruptcy reform for the parts suppliers. Naturally they would be worried because when their suppliers file for bankruptcy the supply chain is rudely interrupted.
This just goes to show that when one part fails the whole chain is in trouble.
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April 18th, 2006 by admin
GM is revamping its Saturn brand.
When GM unveiled the Saturn brand in the 90’s, it was marketed as “a different kind of car company.” Although that slogan was dropped a few years ago, Saturn will once again be a different kind of company. This time it will be because GM is finally revamping its image and lineup.
Saturn grew quickly in the early 90’s as a semi-independent branch of GM. The idea was for them to compete with smaller foreign cars. However the brand has long since passed its prime. As Brett Clanton of the Detroit News put it,
its sales peaked a dozen years ago and its entire lineup was outsold by the Honda Accord last year.
With GM’s financial problems well known, it seriously had to evaluate the Saturn brand and decide if it was worth keeping. They decided to make the necessary changes and hopefully move the brand forward. Maybe Saturn won’t go the way of Oldsmobile. GM tried a similar re-invention of the Oldsmobile brand in the late 90’s but then phased out the brand ending in 2004. (Side note: I currently drive a 98 Oldsmobile Intrigue which was one of the “new” Oldsmobiles)
The New look of Saturn will be much more European and upscale. Check out their website at Saturn.com to see four of the new models. The SKY Red Line looks especially spiffy.
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April 17th, 2006 by admin
Are auto makers using hybrids to hide behind?
“What’s in a name?” Yes, I just quoted Shakespeare in an auto blog. But seriously, what kind of meaning does the word hybrid bring with it. Several years ago many environmentalists saw hybrids as salvation for the auto industry. But now, many of these same people are weary that the big auto manufacturers have hijacked the word hybrid and fooled a lot of people.
Bradley Berman has written a fantastic article on this subject; in it he quotes Jason Mark who is the director of the Clean Vehicles Program for the Union of Concerned Scientists.
"We think that hybrid technology ought to be reserved for the environmental and consumer benefits [it] can deliver," says UCS’s Jason Mark. "Every quasi-hybrid under the sun is being labeled as a hybrid for public relations benefits." Mark thinks that hybrid technology should be put to better uses than turning a 16-mpg vehicle into an 18-mpg vehicle. "The point is not to turn extreme gas-guzzlers into moderate gas guzzlers."
Mr. Mark is not the only one upset. Many environmental groups focused on the auto industry have taken offense at how the big auto makers use the hybrid label loosely. They are also enraged at how the auto makers turn around and lobby against policies and laws that would require them to lower the emissions of their vehicles. Many of these groups choose to target a specific auto manufacturer but they are united on the case against the Pavley Law.
The Pavley Law, which would be a California law but would effect the auto industry in a wider sense, has met stiff opposition in the form of auto companies. Even Toyota, makers of the prius I mentioned the other day, is among those trying to block the law. This is the kind of actions that has these environmental groups stirred up like a disturbed fire ant bed.
As Mr. Berman put it,
Now the only way for a car company to be considered environmentally friendly is to remove its name from the lawsuit
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April 14th, 2006 by admin
A new poll indicates increased interest in hybrids.
We have discussed rising gas prices and related issues several times already this week. Many people are decreasing the amount they drive their cars and turning to smaller more fuel efficient vehicles.
Yesterday we looked at the Toyota Prius and discussed hybrid cars. But how many of you out there will purchase a hybrid vehicle? A new Gallup poll conducted last month and release earlier this week showed that 57% of those surveyed will consider buying a hybrid when they purchase their next vehicle.
Here are some more statistics from the poll.
Those favoring hybrids show little gender or regional differences, but "hybrids appeal much more to younger and middle-aged Americans than to seniors," Gallup reports. Upper-income Americans are slightly more likely than lower-income Americans (62% vs. 55%) to say they would seriously consider buying a hybrid when purchasing their next car.
This may be somewhat surprising, considering how Americans love their powerful cars. However, the price of gas coupled with the countless new hybrid models on the horizon may be enough to push drivers in this new direction.
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April 13th, 2006 by admin
Toyota looks to continue success in hybrid car market.
With gas prices and concern for the environment both on the rise, many motorists are increasingly focused on one set of numbers represented by three small letters. MPG as everyone knows stands for miles per gallon. But did you know that Toyota hopes to put a really big number in front of those letters? How does 113 sound to you? As in 113 mpg.
Toyota hopes to set a new record for production cars by reaching this number with its next version of the Prius. The Prius is already one of the most popular hybrid options available to drivers in North America but with competition from other automakers they hope to build on its success.
The Prius works by alternating between running its gas powered engine and in electric mode. The new version will run in electric mode far more often, including all the time at slow speeds. This will all be accomplished with some really cool new batteries. These aren’t your average double A’s.
The current Prius uses nickel-hydride items, which currently offer the best balance between cost and performance. But engineers are working on new lithiumion cells, which are lighter, smaller, generate more power and last longer.
Look for this new Prius around 2008 as well as electric offerings by the likes of Subaru and Mitsubishi some time after that.
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April 11th, 2006 by admin
The popularity of sub-compact cars is on the rise.
Until recently, sub-compact cars have not fared very well in America. The SUV has been king for some time now but its position of dominance might not be as secure as it used to be. This does not mean that small cars will come to dominate American highways the way they have in Europe, but they are getting a lot more respect these days.
It’s not hard to figure out the reason behind the rise in popularity of the smaller cars. It’s the rise in gas prices. It’s not uncommon for motorists to turn to smaller cars when gas prices increase because smaller cars tend to get better gas milage. Car manufacturers are wise to provide affordable cars at the smaller size not only for this reason but it is a great way to get young, first time car owners. This can help build up your brand, especially if these young buyers are loyal later in life.
Many foreign car manufacturers started out primarily making sub-compacts and still excel at doing it today. However, the North American “Big Three” (GM, Ford, Daimler Chrysler) have a lot to learn. Peter Johnson pointed out some shortcomings in a recent article.
Toyota has introduced the Yaris, Hyundai has significantly revised the Accent, Kia has updated the Rio, Honda has just introduced the Fit, and Nissan will introduce the Versa in May of this year. And let’s not forget Scion with the xA and xB.
The Chevrolet Aveo is essentially a re-badged Daewoo and doesn’t offer the level of refinement as the others. The Ford Focus is larger and more expensive, as is the new for ’06 Dodge Caliber.
Many of our North American manufacturers have been in decline recently. Maybe a new fleet of small fuel-efficient cars could be a step in the right direction for these companies. I want to see them succeed, but if they don’t provide consumers with what they need, the consumers will go elsewhere.
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