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Auto Industry Working Together

GM and Suzuki working together for hybrids

hybrid newsOdd news comes out of the auto world all the time, and today is no different. After selling their shares of Suzuki, GM plans to develop hybrid vehicles with Suzuki in North America. Suzuki and GM both are lacking in thy hybrid department.

GM and Suzuki plan to develop a hybrid SUV in order to break into the American hybrid market. These two companies see the American Market heading into this direction. It is reported that their sport utility vehicles will have engine displacements around 3 liters.

Maybe this is a sign that GM is finally catching on, but why did they choose Suzuki? I’m not sure, but I hope that everything goes well and they’re able to break into the American auto market and combat Toyota.

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Auto Warranty Information

Why you need an extended warranty

An extended auto warranty is essential for any car owner. Many people don’t think about the benefits of having an extended warranty. With any new or used car you purchase, you may want to consider getting the powertrain extended warranty. Not many used cars come with this, and sometimes new cars come with a very short powertrain warranty.

You also may be interested in a component or bumper to bumper warranty that can save you a lot of time, stress, and money.  In the time of need your warranty will be ready if you get it from autowarranties.com. If you want more information on powertrain, components, and bumper to bumper warranties, check out our new car and used car information pages that will give you all the information you could need.

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Alternative Fuels

Honda thinks they have it

auto warranty It looks like hydrogen fuel cell cars could be a little closer than first expected. Until a few weeks ago, most everyone thought that hydrogen fuel cells were 10-15 years off. Now, however, Honda has plans for production on their hydrogen cars in the next three to four years.

If Honda is the first manufacture to release hydrogen fuel cell cars, that will boost them into the new realm of autos. In theory, the hydrogen car would use hydrogen to generate electricity that powers a motor.  In fact, Britain already has a hydrogen filling station because some of their public transportation system has hydrogen engines.

Right now, Honda claims, their in the process of refining and working on more efficient ways for the fuel cells to operate. They’re hoping in three to four years they will have met the desired output and efficiency needed to be worth buying.

The first hydrogen based car will be based on the FCC concept, which was unveiled at the Tokyo Motor Show last year.  It is interesting that Honda is so positive about the outlook because GM and Toyota, not to long ago, stopped working together because it was too difficult to produce and they (GM and Toyota) were unsure of the hydrogen fuel cell’s future.  

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5 Hybrid Myths

Demystifying the hybrid

With hybrid technology looking as though it will be the “next generation” for cars, there are certain myths that are very prevalent in main stream American thought. There are actually 10 big myths of hybrid cars, but we’ll just look at 5.

You need to plug in the car
Usually, whenever you talk about electricity, almost everyone’s mind jumps to the outlet. In that, you have plug-in a hybrid every night before you go to sleep. However, that could not be more untrue. Hybrids today don’t need to be plugged in; engineers developed regenerative braking.  Whenever you brake, that friction and energy that is produced is harnessed and stored in multiple batteries in the car.  However, there are some hybrids that you do plug in that get better gas mileage because they stay plugged up over night. There are some hybrids that have regenerative braking and plug in technology together.

Hybrid batteries need to be replaced.
With the charge of a hybrid battery staying between 40%- 60%, automakers have greatly extended the hybrid’s battery. There is, however, the standard warranty that comes when you buy a hybrid that includes the batteries, so if something goes wrong you’ll have the warranty.

Hybrids are a new phenomenon
The first gas-electric patent was filed in 1905.  However, when the self starter was introduced in 1913, gasoline engines became more prevalent and easier and cheaper to make.

People buy hybrids only to save money on gas
Saving gas at the pump is probably the foremost outcome of owning a hybrid, but the majority of owners actually have them for environmental reasons. A hybrid car sends a message. It sends a message that “I care about the environment.” That’s what some people want others to know about them. (bumper stickers are cheaper)

Hybrids are expensive.
Beginnings in 2006, hybrids were available in 10 different models. The price varies largely. Some hybrids barely cross the $13,000, while other companies have luxury hybrids that can cost up to $60,000.  Hybrids do add about $3,000 to the price tag of any car, but that figure is dropping rapidly.  

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The New Sentra

Nissan’s Hope for the Future

warranties for busy people Nissan, during the 90’s, was struggling to stay out to bankruptcy, and they did a good job. They released a redesigned, reengineered Nissan Altima  that single handedly brought Nissan out of the woods for a little while and then they revamped the Maxima. I remember seeing the new Altima and Maxima for the first time, they were amazing.

Now, they’re at it again. Nissan unveiled the new Sentra earlier this year and it will be in the hands of dealers in the fall. Nissan is almost in the same position as it was in the 90’s. They’re banking on the remake of the Sentra to boost them into car heaven. Nissan sold 119,000 Sentras in 2005, and they’re looking to increase that number substantially for 06-07. Since the car does not launch until the fall, Nissan will not see the benefits until late 07.

And, with any redesign, there are always people who see otherwise. Not everyone is convinced the new Sentra is enough to help Nissan. When the car was debuted earlier this year, there were mixed reviews about it on their website.  A company is never in a good situation when they’re banking on a redesign to get themselves out of murky water. 

Hopefully this redesign will renew hopes throughout the entire auto industry.

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GM and Ford sales Fall in May

Honda and Toyota sales rise in May.

May is no longer known for having kids, but for buying foreign cars. Toyota and Honda sales climb for the month of May. Rising interest rates and rising gas prices have contributed to the lowest sales from GM and Ford of all time, but Toyota and Honda saw double digit sales increase.

GM sales fell nearly 16 percent due to cut back in rental company sales.  Rental companies are now switching to Honda and Toyota. Trucks and SUV sales were also down a whole 10 percent.  This was a record setting year for foreign auto manufactures and most analysts suggest that things will continue this way until Ford and GM refocus and revamp their strategy.

However, it seems, at least through commercials, that GM and Ford are both busy advertising about their fuel flex vehicles that are hitting the market. But, I’ve actually yet to see a fuel flex vehicle on the road. So, I wonder if GM and Ford’s strategy will work.  

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Drive on us

Ford offers free gas incentive

auto newsWhile Toyota is busy becoming the number 1 automaker in the world, Ford is trying to catch footing in the market again. Ford is now offering zero percent financing and free gas for a year. It is called "Drive On Us" campaign.   Every car purchased between June 2, 2006 and July 31, 2006

will receive the ultimate financing and a MasterCard with $1,000 in fuel credits, and with SUVs the MasterCard will have $1,100 in gas credit.

 Some models get a price reduction and the Gas card. Ford is really pushing the limits with zero percent financing. I think they’re surpassing GM’s employee pricing with price reductions, gas credits, and zero percent financing. .

 
So, if you’re getting ready to buy a car, you may want to check out your local Ford dealer.

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Pontiac Looks To The Rear In Order To Move Ahead

Can GM breath some life into this struggling brand?

extended warranty newsRecently, GM decided against scrapping its Saturn brand. Instead GM gave  it a new image.  Once again they face this same choice with their Pontiac brand.  Pontiac sales have been declining and many see it as a dying brand.  

GM still thinks it has some life left in it.  Just like Saturn, Pontiac will get an image make over.  They looked to modern European design to infuse Saturn with for new life, but they will take a different approach with Pontiac.  They will look back into Pontiac’s past.  Pontiac’s new focus will be providing high performance rear-wheel-drive cars.

This plan, which is not final yet, will phase out the front-wheel-drive Pontiacs over the next two years.  These will be replaces with rwd models.  Some of these models will be brand new, while others will be rwd versions of current ones.  

This move may reduce the volume sales Pontiac will incur,  but GM is focusing on more streamlined line-ups from its brands.  

GM is pressuring dealers to combine Buick, Pontiac and GMC franchises into single stores by cutting the brands’ product lineups.


GM is continuing to get its house in order as they restructure.  Saturn and Pontiac are just two of their brands.  Look for them to continue shaking things up until they get things turned around.
 

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Diesel In America?

Problems and possible solutions concerning diesel engines.

diesel technologyLast week I discussed the possibility of diesel engines becoming more popular in America, this is something that has already happened in Europe.  I mentioned one setback was the fact that diesels emit nitrogen oxides and emission standards in this country are continuing to crack down on those.  

Some of these new standards will soon be taking effect and will most likely hurt Volkswagen, who is a leader in the area of diesel passenger cars.  They will not be able to offer diesel versions of several popular models in 2007.  However, they hope to be up to the standards by 2008.

In last weeks blog, I mentioned a few options for automakers to use when lowering nitrogen oxide emissions.  Honda has just announced a patent for new technology to do just that.

In Honda’s treatment system, exhaust flows through a plasma reactor, or gaseous layer of electrically charged atoms, according to a U.S. patent obtained by Bloomberg News. That separates out harmful nitrogen oxides and forms nitrogen dioxide that’s then reduced or absorbed by alkali metals and silver.


It looks like the diesel models will have to stick to the other side of the Atlantic for now.  However, in time they might make the jump to our shores in full force.

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Four Wheels Are Better Than Two

Ford to offer more all-wheel drive vehicles.

extended warrantyThe Ford Motor Company lost $1.2 billion in the first quarter of this year but they don’t plan on staying down for long.  They have big plans to make a splash in the AWD market.  Right now Subaru is king of the hill when it comes to all-wheel-drive cars but Ford could challenge them for dominance.

Ford’s goal is to sell half a million by next year.  This would definitely make them a major player in this area because the total sold for this year was only 1.5 million.  Ford’s aim will be to capture the middle market.  BMW and Audi, among others, offer AWD luxury models while Subaru has catered to the other end of the market.

The plan will bring all-wheel-drive to the company’s Ford Fusion, Mercury Milan and Lincoln MKZ mid-sized sedans in August and to the new Ford Edge and Lincoln MKX crossovers this fall. Ford already offers it as an option in other vehicles, such as the Freestyle crossover and the Five Hundred full-sized sedan.


 Many drivers value AWD vehicles for their stability in harsh conditions and off-road terrain.  Currently, most AWD vehicles are trucks or SUVs.  Ford is hoping to attract these SUV buyers as some are turning to crossover SUVs based on car designs.  

Ford is not the only automaker getting into this field.  GM and Chrysler will offer new AWD options soon, although on a smaller scale than Ford.  You might expect Subaru to feel some pressure now, but they seem to welcome the help to convert the masses to all-wheel-drive passenger cars. 

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