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Flex-Fuel Popularity Grows

The ‘new’ technology picks up speed heading into 2007

With the world turning the way it is presently, there are plenty of reasons traditional gasoline-powered vehicles are coming under scrutiny. There’s the crude oil situation, skyrocketing transportation prices across the globe. Let us not forget the EPA who constantly reminds us how much damage our emissions are doing to the atmosphere lest we forget to look outside our own window. What’s a country to do?

Two types of fuel, one tankFlex-fuel technology was originally created by the Ford Motor Company two decades ago. Since that time, there has been a very slow increase in awareness in this new breed of automobile known alternatively as variable fueled vehicle.

The concept is an interesting one. Instead of running entirely on a different type of fuel, the flex-fuel model allows engines to be powered by any mixture of petroleum and ethanol. That means fill up with ethanol when you can–it’s better for the environment, and you’re doing your part to deter the high prices of unleaded fuel. But when you can’t find a refill station for the corn by-product, it’s ok to fill up with the usual 89-octane. The vehicle requires nothing more from you. It has sensors to monitor the mixture and adjust fuel injection and timing to keep the engine spinning smoothly.

How about efficiency and price? Running purely on ethanol, any of the 31 models for 2007 will average four to five miles per gallon less around town and on the highway than if running strictly unleaded gasoline. Due to the sporadic demand of ethanol, the prices fluctuate widely based on demand. Currently, only nine states in the U.S. have more than 20 ethanol refilling stations statewide.

General Motors leads the way into 2007 by offering six flex-fuel vehicles. Daimler-Chrysler also shows promise by offering four. Most of the variable fuelers available are large trucks or SUVs, and that trend will continue.

One is forced to wonder if this technology is going to make it in the mainstream. With electric vehicle and fuel cell technologies progressing, flex-fuel is not the only solution to a market thirsting for answers.

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Ford looking for a saving strategy

The Detroit automaker is suffering heavy losses

It’s no secret that some of the largest automobile makers in North America are feeling the pressure from their Japanese rivals. As companies like Ford and General Motors watch their market share dwindle, one would think that an offensive strategy would be in the works. Ford, though, seems more confused than competitive at the moment.

After suffering losses of over $1.5 billion in 2005 and more than $1 billion already this year, CEO Bill Ford seems caught between making excuses and trying to create a plan to save the company. He told the New York Times earlier this year,

"The headwinds we faced at the beginning of 2006 have only become stronger."

Ford has also announced its current restructuring plan, the second in less than five years, which seems vague and lacking direction. Thirty thousand jobs being nixed by way of fourteen plant closures ought to give way to some profitability by 2008. But what about specific cost-cutting targets, or clearly-defined sales goals, or even market-share growth plans? Those don’t exist just yet.

Then there’s the compact car market, where Toyota, Honda, and Nissan have made very attractive advancements. Ford has all but forgotten about its own Focus, which will receive only small changes for the upcoming year.

Although the Ford F-150 has been America’s best-selling vehicle for all of recent history, the pressure is on from newly-designed competitors like Chevy, GMC, and Toyota with their Silverado, Sierra, and Tundra, respectively. Contrary to Ford’s closing of factory plants, Toyota plants to skyrocket sales of its Tundra with its newly-opened plant in Texas.

And who can forget fuel-efficiency? The highly-efficient Ranger has been neglected for the upcoming year as well. Ford has also backed off of its goal for the number of hybrids it plans to bring to the market in the next four years. With gas prices predicted to continue rising, and with an increasingly fuel-economy-minded consumer base, these decisions don’t seem to be in the interest of increasing sales.

But there is a sparkle of sunlight on the horizon, and it’s the Edge. It is Ford’s impressive new entry into the crossover market. With attractive lines, sporty 18-inch alloys by default, and a class-leading standard six-speed automatic tranny, the Edge shows a lot of promise.

Ford may be down, but they’re far from out. However, if they expect the tides to turn any time soon, they need a little more than one hot new Edge and extended factory warranties across the board to draw the consumers back their way.

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Honda Fit : Big Where It Counts

The smallest car from Honda is surprisingly roomy inside

With Honda’s Accord moving up to compete with classier sedans, and the Civic taking its place to fight for attention with the small-sedan market, the new creation from Honda fits a much needed gap in the company’s market: the sub-compact.

The Fit is Honda’s answer to Toyota’s Yaris, and it’s a challenging retort to say the least. The Fit’s base price is about three grand more than the comparable Yaris Liftback model, but it has benefits to back up that difference. At first glance, one might notice that this Fit is indeed almost a foot shorter than the Yaris. However, it exceeds the Yaris in every interior room dimension (head room, shoulder room, etc.). With the rear seats down, the Fit boasts and impressive 41.9 cubic feet of room. With an innovative 60/40 rear seat design and a fold-flat front passenger seat, the interior can be configured to meet many storage needs.

HondaThe Fit comes in two trims, the standard of which is called Fit, and the peppier version is known as Fit Sport. The Sport trim comes with larger alloy wheels, a pumped up stereo system, some exterior body accessories, and a few other perks. Both trims are equipped with the same 109-hp, 16-valve VTEC, 4-cylinder engine that can be paired with either a five-speed manual or five-speed automatic transmission.

One of the very few drawbacks to the Fit is that the fuel economy for the US models is not as good as expected. The EPA estimates that the Fit manages 33 MPG in the city and 38 MPG on the highway at best, which is hardly impressive given the Civic’s 30/38 rating.

Every new Honda, including the small but roomy Fit, is covered by a comprehensive three-year, 36,000-mile warranty.

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Toyota Risking Quality for Quantity?

Is a recent surge in recalls hurting their stunning reputation?

The Toyota, Lexus, and newly-developed Scion brands have been booming in the United States for years now. The Toyota Camry has conquered its rivals for the best-selling car every year since 2002. One of the Toyota’s trademarks that has led to this success has been its reputation for outstanding quality. It seems that is about to change, however.

There has been a surge in recalls from Toyota and its subsidary companies. In the past two years, the number of recalls has increased tenfold to nearly 2.2 million vehicles. To their credit, one of the problems was a minute issue that affected vehicles as much as 16 years old–old enough, in fact, that the company is not required to issue a recall. However, Toyota did.

Toyota suffering from recalls?Another bit to Toyota’s credit is that their recent addition of a more youth-oriented brand, Scion, while being extremely customizable in nature, lends itself to increased criticism from its consumer base. That idea has not deterred the automotive giant, but rather encouraged them to continue to improve the new brand.

In the contrary to a fear of problematic vehicles, Toyota Motor North America’s senior vice president insists that warranty claims for his division have been on a steady decline. In fact, compared to companies such as Ford and GM, Toyota spends less than half the rate of revenue as the American giants do filling warranty claims.

Many leading auto watchdogs, such as J.D. Power and Associates, report that there is no decline in quality of the company’s vehicles. So it appears that at the end of the day, Toyota’s sterling reputation is still one to be trusted, and by its competitors, greatly feared.

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Detroit automakers feel pain of gas prices

Ford, GM, and Chrysler are stuck with SUVs

Gas prices drain revenueOh, if only they had looked ahead.

Half a decade ago, the sport-utility craze was in full force. The three large automakers based in Detroit were reeling with delight, while their strategists were planning ahead for new and better SUVs and heavy-duty pickup trucks.

With Japanese automakers having spent the last few years focusing on more fuel-efficient vehicles and developing hybrid technologies, the US companies are feeling the disadvantage. Gas prices have nearly tripled in a few short years, and truck- and SUV-focused companies such as Chrysler are at a loss, literally. Chrysler reported earnings of less than $70 million for the last quarter, and they project losses in the hundreds of millions in the near future.

One might reason that the American companies should follow suit and begin producing smaller, more fuel-efficient vehicles. However, in order to stay competitive with the smaller cars, their profit margins will remain around one-tenth of the green gap with the larger trucks and SUVs. For that reason, it still doesn’t make sense financially to refocus their efforts.

While great fuel economy is simply not feasible at this point in the realm of large automobiles, the executives at the companies such as General Motors can find solace in the newer models of their vehicles being more fuel-efficient than previous models. It appears that they will hold their path, cross their fingers, and hope that consumers still have a place in their hearts for gas-guzzling beasts.

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Performing a Warranty Inspection

Reassuring the Reliablility of Your Auto Warranty

The last difficulty you desire after making an investment like that of an automobile is a warranty that doesn’t cover your original expectation. If vehicle buyers find it necessary to have an inspection performed on the vehicle prior to dropping the sum or filing a loan, then consider it as much a priority to do the same for the warranty.

To ensure that you are investing not only in a reliable vehicle, but also a warranty guaranteed to see it through some wear and tear, make sure it meets a set standard and do not settle for less. Fortunately, consumers are aided by a Federal Trade Commission Law that states requires availability of a warranty for the scrutiny of a potential buyer.

Many automobile customers are swayed by a seller’s implications about the warranty on a car. A dealer may mince words when it comes to the vehicle’s coverage for a reason. Always read the warranty with expectation of its guarantee and then read it again for any fine print before putting down on your purchase.

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Ford extends powertrain warranties

All 2007 models will receive new warranty program

Ford MustangFord Motor Company is increasing its powertrain warranty on 2007 models. The Ford, Lincoln, and Mercury brands will be affected by this upgrade.

The Ford and Mercury brands will get an increase from a three-year, 36,000-mile warranty (which remains the bumper-to-bumper coverage) to five-year, 60,000-mile powertrain coverage. There will also be complimentary roadside assistance for the life of the warranty.

The Lincoln brand gets an even larger boost, with the new powertrain limited warranty being extended to six years or 70,000 miles. Its four-year, 50,000-mile bumper-to-bumper coverage remains unchanged. Roadside assistance on all Lincoln models is also covered for the life of the powertrain warranty.

Ford Motor Company has increased these offers based on high demand from dealers. These new offers will help to quell quality concerns and increase the consumers’ perceived quality of the brand.

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Alliance Rumors shake the auto world

Looks like GM and Toyota Will not work together

Last week a story broke about a hopeful alliance between Toyota and GM. The alliance would combat the Nissan-GM-Renault deal. However, Toyota has now denied all reports of the GM partnership.

Toyota and GM have already been working together in a "partnership" for a few years. But, the partnership had nothing to do with business, they  were trying to co-develop fuel cells, and that relationship supposedly has ended.

But as for a new business relationship between GM and Toyota, that does not seem too likely.

"They haven’t approached us, and we haven’t approached them," the Toyota executive told the News.


I Think before anyone needs to risk their own necks for GM, GM really needs to show some improvement. GM is still suffering and it would not be the best business decision to risk a healthy company for a company that’s a few billion in red ink. 

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Nissan Reaches Out To Online Audience

Automaker sponsors “Star Tomorrow” on NBC.com

The title sponsor for NBC.com’s ‘Star Tomorrow’ is Nissan.  The automaker has chosen to sponsor an online battle of the bands that ends when the winner gets a record label contract.

The sprawling NBC-Nissan deal covers branded integration, exposure throughout the competition’s Web site, a sweepstakes sponsorship, and placement within spots running on the NBC network to drive consumers to the Web destination.

The multifaceted sponsorship, which Nissan will use to plug its new Versa subcompact model, is an example of the emerging "content-surround" tactic, in which marketers look to follow a show by attaching their brands to its various multiplatform incarnations.

Nissan will receive a pre-roll spot, set branding, banner ads and display ads on the ‘StarTomorrow’ site, a Nissan Versa giveaway and a virtual Versa lounge that will feature extra footage of the bands.

If the contest goes from online to on-tv, Nissan holds right of refusal as the sponsor there as well.

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Valvoline Finds What They’re Looking For…

Mechanics Still Assert 3,000 mile interval oil change is good

How long do you go without changing your oil? My father grounded me every time I went over 3,000 miles in my car without changing the oil. Every time I came home from college, he would check the mileage and oil of my car to see if I had disobeyed his command. He always told me that oil is the lifeblood of my car, and I believe him and still do; however, I’m not so sure I think my vehicle needs an oil change every 3,000 miles. (but old habits die hard, I’m afraid)

The reason I bring this up is that Valvoline conducted a study saying that the majority of certified mechanics still believe the 3,000 mile mark is the best mileage to get your oil changed without doing damage to your car. However, beware of a "study" done by an oil company. Each of the mechanics they surveyed also said Valvoline was the best choice, so obviously the study was partial toward Valvoline.

Many people today are starting to think the 3,000 mile mark is antiquated because of better oil and better engines that cars use. I am one of those people, however, I still get the oil changed every 3,000 miles just because that’s what I’ve done my whole life and I feel like I owe it to my father (crazy, huh?).

I would imagine that engine erosion varies largely from car to car and driver to driver. Maybe this Valvoline study/survey will persuade a 3rd party non-biased group to conduct another survey. 

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