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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April 10th, 2006 by admin
How to know if your Check Engine light means something big or small.
Everybody, at one time or another, has more than likely seen the “Check Engine” sign light up on their car’s dashboard. But what does this mean? Should I be worried? Well Joe Thompson, who owns an auto body shop, has written a short but informative article about what to do when your Check Engine light is illiminated
You shouldn’t panic because the problem could be something very simple. Many people know that tightening the gas cap could make the light turn right off. However, if that is not the problem take Joe’s advice.
Try reducing your speed and the load of your vehicle. The loss of power could actually trigger the "check engine" warning light to go on. Or you can also try slowing down, or remove any accessories that need the power of your engine.
If none of this helps you should take your vehicle to a professional. It might be beyond your ability, but the problem could still be minor and very fixable. If you wait or ignore the sign altogether, you run the risk of your car becoming seriously damaged. Not only that but if you wait and the problem becomes more serious it may not be covered by your car’s warranty were a lesser problem would be.
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April 10th, 2006 by admin
Gas prices could keep rising with ethanol
Starting in May, refiners will start including more ethanol and less methyltertiary-butyl ether in gasoline. MTBE had been used as a common additive to gas for quite some time but will now be phased out in favor of the cleaner burning ethanol.
This is good news for the environment, as MTBE can cause environmental problems and could possibly be a carcinogen. However, more than likely it will help gas prices to keep rising. Because of the new demand for ethanol, its price has been steadily rising meanwhile MTBE is down.
According to Platts, the New York Harbor spot price for ethanol is about $2.60 per gallon, up from about $2.30 at the beginning of the year, while methyl tertiary-butyl ether (MTBE), the gasoline additive that ethanol will replace because of its pollutant qualities, is $1.60, down from $1.91 in January.
As well as the price being affected by the demand for ethanol, this “new gas” won’t bring you as many miles per gallon. The ethanol is not as powerful as the MTBE additive.
So, get ready to do your part for the environment. It’d be easier if it just weren’t so expensive…
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April 7th, 2006 by admin
Zero-Percent Financing on Certain Hybrid SUVs
Ford is now offering zero-percent financing on new Hybrid SUVs. They’re expanding the zero-percent financing options to increase sales of the Escape and Mariner models. The zero-percent incentives have been successful in California and Washington D.C. and now the incentives are available nation wide.
The incentive on the gasoline-electric SUVs was offered last month in California and Washington, D.C., but was expanded effective Monday and runs through July 5, Ford spokesman Monte Doran said.
"We’re really committed to making hybrids mainstream and also keeping hybrids affordable," Doran said.
In March, Ford sold 1,441 Escape hybrids, up nearly 17 percent from February and down about 8 percent from March 2005, Doran said, while 149 Mariner hybrids, which went on sale in October, were sold in March, up 38 percent from February.
Ford is trying to make hybrid models available and affordable to all, which is something that more car companies need to do. Ford is demonstrating their commitment to the environment and innovation by allowing the commoner to actually consider buying a hybrid.
This news makes me actually want to consider the hybrid Escape. I’ve always been a fan of the Escape, but now, since the hybrid’s financing options are so good, I’ll probably look at the hybrid models.
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April 5th, 2006 by admin
Bill Ford Talks about the future of Ford.
Bill Ford, Chairman and CEO of Ford Motor Co., gave strong words to reporters, saying that, Ford would not even consider a Chapter 11 bankruptcy restructuring. Ford made this statement just before he was going to be awarded the 2006 Automotive Industry Executive of the Year.
"We don’t see it at all," Bill Ford said of a possible Chapter 11 filing. Ford Motor has ample liquidity, he said, stressing that the company was profitable in 2005.
He acknowledged that the U.S. auto industry is in a "precarious" state.
Ford Motor’s biggest problem is the bleeding North American auto business, which lost $1.6 billion before taxes and charges in 2005. Turning around that unit, the objective of the company’s Jan. 23 Way Forward restructuring announcement, requires tough decisions and nimble thinking, he said.
Ford Motor Co. plans to close 14 plants through 2012 and cut 30,000 jobs in the hopes of saving the company.
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April 5th, 2006 by admin
Toyota plans to increase plants in North America
Toyota’s North American planning group is considering building another North American assembly plant. The planning group considered the increase in sales they have experience in the past few years, and they’re now projecting their increase in the American market through 2010. The group suggested that Mexico would be the best place to build a new production plant for exportation to the U.S.
Steve Sturm, vice president of North America planning for Toyota Motor Sales U.S.A. Inc., declined to offer details about Toyota’s projection of sales in the U.S.
In 2005, the company produced 1.56 million units in North America, 63 percent of its North American sales. Its goal is to produce in each region at least 60 percent of its sales. (See story at right.)
Plans suggested by the North American planning group must be approved by Toyota headquarters in Japan, he says.
Sturm says the planning group is exploring a broad expansion of powertrain production. "Our engine and drivetrain manufacturing needs to grow in proportion with new assembly plants," Sturm says.
Over the past decade, Toyota’s North American sales have grown by an average of 8 percent annually. If things continue at that rate, Toyota’s sales growth will outpace its local production growth.
Toyota will gain volume from its existing products becoming more popular and from new vehicles.
Consulting firm CSM Automotive forecasts Toyota will manufacture close to 2.1 million units in North America in 2010. Plants already under construction or previously announced will handle most of this increase.
Mike Jackson, director of North America vehicle forecasts for CSM, said Toyota might expand some existing factories, such as plants in San Antonio and Baja California, Mexico.
If Toyota does build a plant in Mexico, it would assemble the Yaris (a subcompact car they’re releasing to replace the Echo).
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