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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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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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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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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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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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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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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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GM announces mass production of hydrogen cars until 2010
We’ve been waiting for an alternative fuel source to come
available for awhile. Well, GM is now placing a time period on when we can see new hydrogen based vehicles.
On Thursday, the automaker announced that while it will continue its tie-up with Toyota on other advanced technologies, it will no longer be sharing its fuel-cell research.
‘Because of the advances we made that type of technology is passing from the research phase to development,’ Fosgard said.
Fuel cells produce electricity through a chemical reaction between hydrogen and oxygen, leaving water as the only by-product. They are far more environmentally friendly than the currently popular hybrid gas-electric engines which merely reduce the amount of gas needed to power the vehicle.
I’m so excited to see the mainstream car manufacturers embrace this technology. Hybrids are here to stay!
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New ad campaign from Chevrolet
Chevrolet is beginning its second phase of the "American Revolution" ad campaign and they’re starting it with the Olympics. This new campaign will consist of intensive television, print, and internet ads.
One of the new slogans, which you may have already seen, is "America’s brand salutes America’s best." Chevy will be pushing the American Revolution Ads on television strongly. For example, the new Tahoe and Suburban will be given a spotlight during the Olympics.
The 2007 Chevy Tahoe and Suburban are heavily featured in a whopping 254 thirty-second spot buys airing on network and cable TV over the course of the Olympics.
Nonetheless, Chevy will be advertising heavily through print media as well.
Chevrolet is also the exclusive automotive sponsor of a special section of USA Today that will run each day of the games.
Don’t forget the internet
The Chevrolet brand also purchased ads on NBColympics.com and Yahoo! Sports Olympic Games page.
Three different animated banners featuring Tahoe, Suburban and Avalanche, will run on these sites.
When Chevy is not sponsoring the Olympics, they’re running ads with NASCAR. During the Daytona 500, Chevy ran an ad called "toast" staring Jeff Gordon, Dale Earnhardt Jr. and Tony Stewart.
The four are seated at a restaurant, congratulating one another on their recent wins. After clinking champagne glasses, the four douse themselves with the champagne rather than drink it. "Office" shows the inside of the Team Chevy offices. They’ve won so many awards (25 of the last 33 NASCAR manufacturer’s championships) that there’s no room to store the trophies. Desk drawers are full to bursting, shelves are brimming; when the latest trophy is won, a man considers placing it in the men’s room (since there’s no room elsewhere) but thankfully does not.
It’s good to see an American auto Company being creative with their ads. In the end, I do hope that this new ad campaign brings them some new customers.
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A few common sense steps to saving money at the gas pump
Fluctuating gas prices are now a signature of the oil industry. With all of the fluctuation in gas prices, it would be wise to enhance your vehicle’s mpg in any way. There are a few things you can do to increase your vehicles gas mileage, thereby decreasing what you pay at the pump.
- Good vehicle maintenance is always a must.
Keeping your vehicle in tip-top shape will not only supplement your vehicle’s gas mileage, but it will also keep you safer.
Just simple measures like keeping your tires properly inflated can make a real difference.
If you’re not a vehicle wiz, just take your vehicle to your local auto mechanic and tell him or her to give you a tune-up.
- Get rid of any excess junk in your vehicle.
That’s right, clean out your trunk and back seat to make room for all that money you’ll save.
Some studies suggest the average driver carries around between 50 and 100 pounds of unnecessary weight – not counting the very important spare tire, jack, and emergency road kit – that costs you each time you fill your car, truck, SUV, or (mini)van.
- Consolidate your trips.
Carefully plan your errands so you’re not backtracking yourself too much.
For example, when you have a doctor’s appointment in another city or another part of your town, try to think ahead to any other business you might need to conduct in that area.
Also, try and stock up on the necessities. You don’t need to make 15 trips to the grocery store in one week. Think ahead of time; make a list of what you need for the entire week and get it done with one trip.
- Carpool
Finally, if you have kids, you know that it’s difficult to manage all of their schedules especially if you’re acting as chauffer. You, as a parent, may want to initiate a car pool with other parents so you can split the cost of gas. Likewise, you may want to inform your child about the fuel situation, from a global perspective.
Encourage your children to help you conserve fuel and let them know that in doing so, they help you afford other things they like even better than trips out.
These are just a few common sense ways that you can decrease the amount of fuel you use and increase the amount of money you save.
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