Tag Archive
Kia will build its first US production plant in Georgia
Kia will be investing $1.2 billion in their first
production plant in the US.
The plant will be located in West Point, Troup County, Ga. and is expected to be completed in 2009. Georgia was competing with Kentucky and Mississippi to acquire the plant. Apparently, Sunny Perdue, Georgia’s Governor, offered incentives that could not be turned down.
The state promised various incentives that are worth 410 million dollars. These include free land and infrastructure, subsidies for the creation of new jobs, financial support for training workers and tax breaks.
Kia has seen exponential growth in America over the past few years, and they’re building this plant to demonstrate their longevity in and commitment to the American auto industry.
See Also
The high price of hybrids
Hybrid cars have been around for a few years, but they’ve yet catch on because of the high price tag.
Until recently, if you bought a hybrid, you would’ve probably ended up spending more money in five years than you would if you bought the gas-only counterpart. And, that is still the case for some popular hybrid cars and SUVs.
NUMBER CRUNCHING. The new calculations show that owners of the Toyota (TM) Prius will save $406 and owners of the Honda (HMC) Civic hybrid will save $317 compared with owners of their gas-only counterparts. However, owners of four other hybrids — the Honda Accord, Ford (F) Escape, Toyota Highlander, and Lexus RX 400h — will still end up spending $1,883 to $5,508 more over five years and 75,000 miles, Consumer Reports said.
Some manufacturers, however, are switching to diesel/electric instead of gas/electric.
GO DIESEL. With cleaner diesel fuel becoming available in the U.S. this fall, some automakers, including Volkswagen, Mercedes-Benz and Chrysler (DCX) are adding more diesel models to their fleet. Honda is adding diesels by 2010. Diesels tend to get better fuel economy than hybrids when usage is more cruising than urban stop-and-go. A Toyota hybrid, for example, doesn’t make it from Washington, DC, to Detroit, a distance of more than 500 miles, on one tank of gas, as it gets about 38 miles per gallon. A Volkswagen Jetta TDI diesel-powered car, however, can make the journey without stopping, getting 45 mpg (see BW Online, 2/15/06.
With recent technological breakthroughs and the government’s plan ease us of our gasoline addiction, maybe these vehicles will actually be affordable for the common person in the future.
See Also
Cottman, Aamco to merge chains
Aamco and Cottman are set to merge their respective chains to form one of the largest automotive repair chains in America.
The combined company, to operate under the Aamco name, will be 83 percent owned by American Capital Strategies Ltd. of
Bethesda, Md., a publicly traded investment company. American Capital acquired Cottman for $46 million in 2004.
The new Aamco will continue to provide transmission repair and expanded automotive services. Cottman centers will switch to the Aamco name.The combined company, to be based in Horsham, Pa., will employ more than 6,000 people and have annual sales of about $600 million.
At one time, Cottman and Aamco were one entity but it the 1950s they split. Hopefully, it’ll be a good reunion.
See Also
GM cuts employee’s pension plans
After a difficult year, GM is announcing changes in employee’s pension plans. This should come as no surprise, almost all companies that "restructure" cut their employee’s pensions to save money.
Effective Jan. 1, GM will freeze the accrued pension benefits for approximately 40,000 U.S. salaried employees. The change won’t affect retirees.Salaried employees hired on or after Jan. 1, 2001, will move exclusively to a defined contribution plan. Those employees currently have a cash balance plan, which works like a traditional defined benefit plan but allows participants to collect their benefits in a lump sum at retirement instead of in monthly checks. GM said those employees will continue to earn annual interest on the balance in their plans. Those employees also will get a contribution of 4 percent of their annual pay to their 401(k) program."These changes will reduce financial risks and future costs for GM, while protecting current retirees’ and employees’ earned pension benefits and providing competitive and fair retirement benefits going forward," Wagoner said in a statement.
Restructuring is a difficult process. The company must decide either to lose a few employees/benefits or lose the company.
Even though I don’t like to admit it, GM may be doing the right thing to save the company.
See Also
Toyota is excited about their expansion into Europe
Last year Toyota sold 964,000 vehicles in Europe.
Selling that many cars in Europe is a milestone for Asian automakers, and Toyota wants that trend to continue.
As an extension to the post Europe new battleground for U.S. and Asian automakers, Toyota Motor Company sold 964,000 units combined between its Toyota and Lexus brands in Europe last year. And with its revamped RAV-4 and Yaris, the automaker’s most popular vehicles, it expects to sell one million or more vehicles this year. For reference, 2005 marked the 9th year in a row that the second largest automaker in world’s sales rose in Europe, where it currently holds 5.1% market share.
According to analyst Noriyuki Matsushima of the Nikko Citigroup, "Toyota’s expansion of its global production network in Europe, North America, Asia and elsewhere is beginning to produce results, and we anticipate considerable earnings contributions in the coming years.
But with the German automakers releasing a brace of new vehicles, and Lexus struggling to gain a foothold in Europe, the company knows it won’t be smooth sailing.
Some of the success of Toyota is derived from its involvement in Hybrids. Toyota invested early in Hybrids and now that gamble is starting to pay off.
See Also
DaimlerChrystler recalls 23,677 luxury cars
DiamlerChrystler, the German automaker, is recalling 23,677 luxury cars because of defects. The recall includes Mercedes-Benz S-Class sold in mainland China from October 1998 through March 2005.
The recall covers 23,677 S-Class models built between October 1998 to March 2005, spokesman Frank Bracke told The Associated Press in a telephone interview Thursday from company headquarters in Stuttgart, Germany.
The refrigerator is built into the back seat to keep drinks chilled, but abuts the fuel tank and could cause fissures in the tank to develop, Bracke said
He said there have been no injuries reported and there is no threat of explosion or fuel seepage. However, welds on the tank could wear down, resulting in the release of gas fumes and causing knocking sounds, Bracke said.
The recalling of vehicles seems to be a growing trend by DaimlerChrystler; DaimlerChyrstler recalled over 1.3 million cars last year because of quality problems.
See Also
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!
See Also
The auto-giant may have reason to smile
We’re all pretty much in limbo when it comes to the American auto industry. We want the companies to do well and succeed, because we’ll end up with less competition and higher prices, and a drop in GDP, if they fail.
But, with recent news from Ford and GM, much still looks bleak. On a good note, however, Chrysler’s sales went up 2.5% in February, while Ford and GM both reported sales decreases.
While the Auburn Hills-based Chrysler Group reported a sales gain of 2.5% last month, consumers bought fewer new cars and trucks from both Ford Motor Co. and General Motors Corp.
Sales declined 4% at Ford and 2.6% at GM, the companies reported Wednesday. Other automakers were slated to release their results later in the day.
Analysts are expecting industry-wide sales in February to be strong compared to the same month a year ago.
Three of GM’s eight brands – Buick, Hummer and Saab – reported gains, while the other five posted declines. Sales of the company’s big Hummer SUVs more than doubled in February compared to a year ago.
Six of Ford’s brands reported sales declines. Only Land Rover was up, by 27.8% compared to the same month a year ago.
Chrysler also had a mixed result, with Chrysler and Jeep sales up, and Dodge sales down a slight 1%.
Auto analyst Himanshu Patel of JP Morgan Securities Inc. said Ford outperformed expectations.
“We expect a neutral to modestly positive reaction to the company’s release,” he wrote in a research note to investors.
GM’s performance, however, was “modestly below expectations.”
See Also
New software from MIcrosoft that goes in your car.
Microsoft is trying to move into the automotive industry. 
Microsoft is now creating software for vehicles. The Fiat is the first car to get the new Windows Operating System.
Based on Microsoft’s Windows Mobile for Automotive software, the system is ultimately expected to be available for all Fiat, Lancia and Alfa Romeo vehicles from the Italian automaker. Features include the ability to use voice commands and buttons on the steering wheel to control mobile phones and portable music devices in the car. Features include the ability to use voice commands and buttons on the steering wheel to control mobile phones and portable music devices in the car.
However, Microsoft is not alone in creating software for vehicles. They will be facing competition from GM’s OnStar program that has been very popular.
See Also
Ford reworking advertising and sales strategy
Ford is in the spotlight this week.
They’re going back to the basics in hopes of selling more vehicles this year. With the car industry in a slump, going back to the basics may not be a bad idea. Ford is calling this new campaign "focus vehicle." Ford will be focusing on eight models of their inventory and will be offering incentives, dealer bonuses, and market muscle to push vehicle sales.
Ford says the idea is to spend promotional money more intelligently, increase showroom traffic and reduce floor plan costs by turning vehicles faster.
In 2005 it took 82 days for Ford vehicles to sell. That’s 17 more days than the average for the automotive industry. That’s what they’re trying to change.
See Also
- Chevy Ads
Ford and chevy are changing. Take a look at how Chevy plans to change
- Auto Warranties
Call 1.800.419.3499 for information on your next car warranty
