Tag Archive
“IRS Increases Vehicle Reimbursement Rate”
The IRS has increased the vehicle reimbursement rate.
The Internal Revenue Service today issued a 2007 allowable vehicle reimbursement rate of 48.5 cents per mile, despite a moderation in gas prices compared with the volatile post-Hurricane Katrina prices of a year ago.
The 2007 rate is an increase from the 2006 rate of 44.5 cents per mile.
Many businesses use this rate as a guideline for their compensation of business travelers who use private vehicles to do company business.
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“Government wants to keep confidential some vehicle safety data” – Detroit Free Press
According to a recent article in the Detroit Free Press, the National Highway Traffic Safety Administration wants to keep certain vehicle safety data private.
From the article:
The proposal, similar to past versions, came in response to a ruling by a federal judge earlier this year that the agency had failed to provide enough notice to comment on an early warning system plan. In the March ruling, District Judge Richard J. Leon sent the proposal back to the agency.
The early warning system was part of legislation approved by Congress following the massive recall of Firestone tires in 2000. It required automakers and other manufacturers to submit data on deaths, injuries, consumer complaints, property damage and warranty claims.
NHTSA said its proposal would consider certain early warning information as confidential, including production numbers not involving light vehicles, consumer complaints, paid warranty claims and field reports.
Apparently the requested disclosures violate a public records law that prohibits sharing information that could result in privacy intrusion.
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Green vehicle guide available for download from their site.
The Environmental Protection Agency posts a guide online called the Green Vehicle Guide that gives data on the environmental impact of vehicles.
They have recently updated their website with information on the 2007 models of popular cars. You can also go to their site to look up specific vehicles, or find the "greener" ones in their database.
The updated version with the cars listed alphabetically or by air pollution score is available in text, Adobe Acrobat or Excel format for downloading by consumers.
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“To win customers, many automakers are looking to improve their warranty offerings “
According to an article in Businessweek, the gap between quality and safety from one automobile company to another is closing, and is resulting in a search for new methods of product differentiation. A popular way for the car companies to distinguish themselves from each other is the warranty that comes with the vehicle.
From the Businessweek article:
To demonstrate confidence in the quality of their vehicles and lure customers away from competitors, many automakers are looking towards ramped up warranty offerings – the window of time and/or distance for which the vehicle is covered in the event major maintenance issues arise.
General Motors Co. recently made headlines when it announced that it was increasing its limited powertrain warranty on all 2007 model vehicles to 5 years or 100,000 miles, including roadside assistance up 100,000 or 5 years and courtesy transportation. The warranty is fully transferable and has no deductible.
The article goes on to mention how Hyundai and Kia each “increased flexed warranty offerings in order to strengthen its quality reputation and gain a foothold on the competition” – and the plan worked, if the recent recognition and sales for either of the companies is any indication.
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Could we see the first electric cars by 2008?
According to an article in the San Jose-Mercury news, the first fully electric car to run on American roadways is now in the planning stages.
No major automaker currently sells a purely electric-powered car that can be used on public roadways in the United States.
Mitsubishi displayed an all-wheel-drive gasoline-electric hybrid car at the Detroit Auto Show in January, but the company does not currently sell a hybrid car.
In the early 90s, there was speculation that the first fully electric car available nationwide was expected to come from GM, as they had a clear advantage at one point as far as research and development.
Though there is some speculation that GM had ulterior motives for abandoning the project in 2002, their official reason, stated as insufficient demand, held water at the time from a profitability standpoint – gas prices were half what they are now. Now that more consumers believe that the has come for the electric car, and are stating that they would purchase one, it looks as if Missubishi will be the frontrunner in the entire industry.
Electric cars are not necessarily the savior of the energy question, according to a documentary that explores the issues behind converting to alternative energy sources, "Addicted to Oil". Early blogosphere reports show that consumer response to the news so far is positive.
The issue of electric cars raises many important questions. Will maintenance costs for cars run on electricity decline, or are ther other issues that could make the costs go up? Could maintenance frequency go down? What kinds of changes would have to be made on warranty coverage?
Some of these questions can be estimated from studies on hybrids, or the electric car community in California. Others we won’t know about until the sample of electric cars is large enough. For those, we’ll have to wait and see.
CEO reportedly still open to alternate North American Alliance
A dispute over the terms Nissan-Renault posed to GM has lend to the end of talks between the three companies. Carlos Ghosn, chief executive of both corporations, said before the talks ended that he’d still consder working with another North American company if talks didn’t work out.
Speculative reports point at Ford Motor Company, as they have recently posed the notion to pursue talks with Nissan-Renault.
From an article in the LA Times:
"Assuming he was sincere, Ford looks like the next candidate for the job," Banc of America Securities analyst Ron Tadross wrote in a note to investors Wednesday.
Read more in the International Herald Times.
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Whats in A Warranty Deductible
An automobile warranty can vary tremendously depending upon your warranty coverage inclusions. This is especially true for the amount you will spend to have the service. Similarly to other types of insurances, your auto warranty has a deductible. Many top of the line warranty providers are going to give you top of the line coverage, but you will 
doubtless pay more, with the exception of some providers, many times an aftermarket warranty.
The coverage you invest in will either save you thousands but afford you a sizeable payout at time of service, or can save you some will charging you more than they should be. Investigate thoroughly the deductible expectation of an extended warranty. Do you pay to speak to a mechanic or to have the full repair done?
Some warranties that expect payment per visit may get more from your wallet the more you visit the shop. A deductible based upon final repair will be charged after all of the details are finished. Some warranty groups also offer warranties with no deductible. This may be the best option for a car owner who expects frequent visits to the shop. There are many options when choosing a car warranty based upon deductible. Consider your car needs and your prospective wear and tear and then you will have a basis for choosing the type of deductible offered.
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June may drive the stake further into the heart of GM
June has always been a low sales month for the auto industry, and GM is expected to take biggest brunt of the sword that will be slaying this month. However, during this month, Toyota and Honda sales are expected to continue rising during this month.
Since this month is expected be a debacle in the auto industry GM is offering a magnificent incentives that will attract new customers. GM is offering their regular pricing incentives, plus 0-percent 72 month financing option.
The 0 percent sale is going on until July5th. So, if you’re looking for a good deal on a new American made vehicle, this week may be your chance to get that new car you wanted.
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Ford tries something new
Everyone knows that the auto industry is not exactly a bed of roses right now. Thus, companies are pulling out all the stops when it comes to innovation and new ideas. While in last place, Ford is trying the most "innovative" approach, www.fordboldmoves.com. Boldmoves is a documentary style website that’s "behind the scenes" style deep within the ranks of Ford. The website is a nifty advertising scheme that, in theory, could get people interested in Ford’s business model.
I’m sure, however, that the documentary style is not so documentary. Usually in unscripted an documentary you end up with things like "The Office" in real life, and I’m sure Ford will not allow others to see the nuts and bolts of the company like we would wish. To an extent, I’m sure the "documentary" is fairly scripted. But, who knows, it’s new; maybe boldmoves will prosper and become a interesting piece of work.
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Honda thinks they have it
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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