April 4th, 2006 by admin
Fast cash for world’s largest automaker
GM is heads over heals right now trying to figure out how to make their company profitable. They’re laying employees off, closing plants, cutting pension plans, and selling their cornerstone stock in GMAC for a quick $14 billion.
Rick Wagoner, GM Chairman and Chief Executive, believes this move will sustain the company for a turn around from its $10.6 billion loss in 2005. However, many investors still don’t believe this "quick fix" will actually fix anything in the long run.
GM had to have been in one of the tightest corners ever to sell their stake in GMAC. So, I’m starting to believe that things are worse than they seem.
In the context of history, the last six months are going to prove to be pivotal," Wagoner said at a news conference. "This is about restructuring our business so we can be robustly profitable in the future, so we’re not so balanced on a razor’s edge (that) if gas prices go up, you don’t make any money, if your sales go down 10 percent you don’t make (any money)."
But GM’s shares sank more than 3 percent after the announcement as analysts questioned whether the cash infusion would have a lasting impact on GM’s outlook and major credit ratings agencies indicated the deal may not lead to an investment-grade rating for the finance arm.
Nothing is looking good for GM at the moment. I surely hope this $14billion is enough to get them back up and running.
I know this is an extremely serious matter and I don’t mean to lighten it at all, but I can’t help but wonder how a company gets in such a bad position where $14 billion is not enough to ensure success?
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April 2nd, 2006 by admin
What does bumper-to-bumper coverage mean ?
At Autowarranties.com we pride ourselves in providing the best plans possible for new and used cars. But, there are many confusing terms that can bog people down when purchasing an auto warranty.
Today, we’ll discuss the bumper-to-bumper extended warranty for new cars.
The bumper-to-bumper warranty is the most comprehensive program that is offered here at Autowarranties.com, and we recommend it to people who want the all-around coverage for their new car.
We suggest Bumper to Bumper to those individuals who want maximum protection for their vehicle. This program covers all the major components on your vehicle.
Bumper to Bumper Coverage provides Mechanical Break-down coverage for repairs/replacements of ALL original equipment, manufacturers factory installed mechanical an electrical operating parts and assemblies on the covered vehicle.
Now that you’ve got a better understanding of what bumper-to-bumper means, check out our extended warranty page for new vehicles.
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March 31st, 2006 by admin
Saab debuts worlds first completely hybrid car
Last week Saab unveiled the first fossil-fuel-free
hybrid convertible. The car is being called the BioPower Hybrid 9-3 convertible concept. This is a major leap forward in hybrid cars. The concept is based on pure bioethonal instead of just part bioethonal.
The Biopower convertible also has a "zero mode," which is a button on the car that enables the car to operate from two powerful batteries, thus, eliminating all emissions. However, while in "zero mode" the car can only go up to 50k/m, but when you reach that threshold of 50k/m, the car automatically switches back to the biofuel.
The Saab BioPower Hybrid Concept also includes a natural step in the further development of BioPower technology. Such as the SIDI – a new direct injection system designed so the engine will start and run perfectly without any mix of petrol, even in extreme cold.
The turbocharging is tuned to take further advantage of the higher octane rating of pure bioethanol. So, the engine can produce 260 bhp and a huge 375 Nm torque.
Acceleration is boosted by the two electric motors of the hybrid system. At low speed and take-off they can briefly add a huge instant 785 Nm of torque. Helping to catapult you from zero to 100 in 6.9 seconds with automatic transmission.
Faster than most diesel or petrol-driven cars, but with zero fossil fuel emission.
Wow, I’m really excited. I can’t wait until these things are actually developed and work in the "real world." If Saab delivers what they promise, it sounds like a success to me.
(Source: Press Release From Saab)
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March 30th, 2006 by admin
Things to look for when test driving
Fun but scary, buying a new car is an experience that really can’t be compared. One of the most intimidating things about buying a new car is the test drive.
What questions do you ask? What do you need to take with you? How do you KNOW if you are getting all the answers?
I surely wish I could take a mechanic and an impartial car salesman with me when I am test driving, but since that’s not possible, I try to read all I can to prepare.
Peter Johnson has written a check list of things to look for when test driving a car. These are things we should all look the next time we test drive 
a car.
Preliminary questions before you take the test drive. – Does the vehicle look attractive to you? – Is it available in a color you like?– Is the vehicle easy to get into?– Does the interior come in a color you like?– Is their enough headroom, legroom, etc. when the seat and steering wheel are properly adjusted? Sit in the front and the back.– Are the gauges easy to read?Answer these questions while you’re test driving the car. – Is the engine as quiet and smooth as you expected?– Does the steering have a nice feel to it?– Does the vehicle have adequate power for acceleration? How about with the A/C on?– Does the vehicle handle well?– How are the brakes? Does the vehicle stop safely? Try the vehicle on a variety of roads, including the highway.– Does the suspension absorb road irregularities well? Is it too soft or too hard?– Are the interior noise levels okay on the highway? Listen for the engine, wind and road noise.– Try all of the accessories including the radio, heater, A/C, and power features to ensure that they operate to your liking.Once you’re back in the dealership, consider these questions.Try parking the vehicle. Does it have any blind spots?– Walk around the vehicle with the engine running. How does it sound? Also, take a look at the engine while it’s running. Does everything seem in good order?– Check the trunk. Is it large enough? Is the trunk opening large enough for balky items? – Do the rear seats fold down?Then, consider the long-term aspects of maintaining the car– Will the car manufacture warranty cover everything I want and need?-Should I consider an extended warranty?
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March 29th, 2006 by admin
The Sky is not falling in the global auto industry
At this moment in time, the American auto Industry looks really bleak. However, that’s not the case everywhere.
Daniel Pool, adviser to National City Corp., insists the global auto industry is actually thriving.
"If you look past Ford, General Motors and Delphi, you will find that the global auto industry is healthy and there are success stories to be found here in Michigan and elsewhere," Poole said.
National City maintains strong investments in such auto suppliers as Auburn Hills-based BorgWarner and Milwaukee-based Johnson Controls Inc., said Poole, assistant director of equity research for the financial holding company in Evansville, Ind.
"You have to look for companies that are responding well to technological change and rapid global growth," Poole said.
Good news about the auto industry comes as a suprise to most Americans, because; it is very hard to see past all of the lay-offs and chapter 11 bankruptcies that have taken place in the past few years.
Poole, however, was not oblivious to the problem in America, he just wanted his investors to understand the automotive world is not coming to an end and that companies will eventually pull out of this slump. Poole does predict that there will be a few more major bankruptcies in the next 11 to 18 months.
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March 28th, 2006 by admin
Auto News: GM sticks with plan
GM will continue to lower prices instead of offering discounts and incentives for the next year.
GM began of lowering the price of their cars with the "American Revolution" ad campagn. Now, instead of offering rebates and extras with their vehicles, GM’s vehicles will actually be cheaper than the competition.
GM announced this news while they continue to lose market share against fierce competitors.
General Motors Corp. expects its U.S. market share to continue to fall in the first quarter of this year due to aggressive competition, but said that won’t reverse its strategy of lowering prices and relying less heavily on discounts, GM marketing officials said Monday.
"We’re certainly not pleased with current share levels and we’re not satisfied with it, but we have to run this play," said Paul Ballew, GM’s executive director of market and industry analysis, in a teleconference with analysts.
GM is in the same boat as the rest of the American auto world. Maybe, once this pricing program matures, there will be forbearance of profit, eventually.
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March 27th, 2006 by admin
AutoNation did not meet the expectations of Wallstreet Journal
AutoNation announced that they did not meet expectations in the first quarter. In fact, Q1 was not their best performance.
AutoNation blames the folly on unbelievably high interest rates and towering stock option costs.
Of course, making a dealership a successful dealership is not as easy as it was at one time, says Chairman and Chief Executive Officer Mike Jackson. Jackson also insists:
revenue should be flat to slightly higher compared with the $4.62 billion recorded a year ago, but added that rising interest rates hurt its earnings by 2 cents per share and stock options reduced results by another penny.
It’s not looking like a good start in ’06 for the auto world. I’m sure this news affected everyone in the auto industry and there will be a ripple affect accordingly up the line all the way to the auto manufacturing sector.
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March 24th, 2006 by admin
Harley-Davidson is opening a dealership in China
Harley-Davidson is opening a dealership in mainland China and is planning to open next month. This will mark the first dealership outside the United States since WW II. Harley-Davidson is also going for a "first-class" experience when building the show room and other parts of the dealership.
The dealership will have 14 staff members initially and be headed by Feng Huo Lun’s founder, owner and executive director Wan Jidong. Foley said Wan and his management team are passionate about riding motorcycles and understand the market in China.
The dealership will sell several makes of Harley-Davidson motorcycles, parts, accessories, merchandise and collectibles. Sales and service will be offered, as will rider training and events including organized rides.
Entry into the Chinese market is expected to be gradual because the market is limited by ownership and riding restrictions in most large cities and on highways, Harley-Davidson said. A population with a limited, but growing, disposable income will also prove a challenge, it said.
This is really neat. It’s odd to see an American company exporting to China. Heck, it’s odd to see any company exporting TO China. They seem to be always exporting.
Nice to see the US sharing a great product like the quintessential American motorcycle. Though, I just can’t see very many Chinese driving a Hog.
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March 23rd, 2006 by admin
Audi joining the diesel crowd
Audi is promising by 2008 they will have their first prototype of a diesel auto. The car would be called the Q7. No one really doubts Audi’s technology, but people are wondering why it has taken so long for them to announce it. Clean diesel seems to be a popular alternative of gasoline.
Audi engineers are about two years away from nailing an execution of after-treatment technology that, in concert with low-sulfur diesel fuels, will enable the European Q7’s 3.0L V-6 diesel to meet stringent U.S. federal emissions standards and, more importantly, those in California.
The automaker expects the diesel car to sell 35,000 units in the debut launch in America. And, Audi suggests that the Q7 will retail at$49,000. For me, this does not mean too much because it’s way over my price range. However, with more companies adopting the diesel mindset, cheaper cars may begin featuring the new technology.
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March 22nd, 2006 by admin
You must look for the best deal
Most people are looking for the best rate on their auto warranty. For many it’s the deciding factor as to which warranty they choose. This just isn’t smart…
We all know cost is a great indicator of auto warranty choice. In fact, it may also be YOUR choice. However, to ensure you have a warranty in place that’s reliable, it’s not all you should be looking at:
- Price
Yes, price is important, but don’t let that be all you notice.
- Trust
Is the company established? Is it a member of the BBB? Are they visible online? Are their contact details prominently located?
Don’t end up with a great price on a useless auto warranty.
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