Tag Archive
A look at Toyota’s impact in the U.S.
I recently saw a billboard which read, “Want to support Japan? Then buy Toyota and Honda.” I’m sure whoever is responsible for the ad (probably someone affiliated with one or all of the big three North American automakers) is very patriotic. However, in today’s world of increased globalization, this may not necessarily be the case anymore.
Toyota hopes to help make that clear with some new advertisements of its own. Their new ad campaign will promote how Toyota is good for America. These ads will detail how much money they have invested in their U.S. plants and how many Americans they employ. They are also planning to expand even more in the States while GM and Ford face cutbacks.
There will probably be some people who are upset at these ads and will never believe a foreign company could be good for America. However, if you take Toyota’s (and any other foreign companies) sales as any indication, most people buy whatever car they want.
And shouldn’t they? This is America. The land of freedom and capitalism. Let the people choose, and may the best product win.
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Thoughts about the new VW commercials.
Have you seen the new Volkswagen Jetta commercials? Wow! After I saw them, that was the first thing I said. And, I think, I repeated that phrase on each repeat viewing as well. Don’t worry if you haven’t seen them yet and are worried I will ruin some surprise. You probably won’t see it coming anyway.
Both commercials start out very unassuming, and wiht someone driving a Jetta and having a casual conversation with the passenger(s). At first, you might not realize it is a car commercial. And then, all of a sudden, through no fault of the Jetta driver, a very realistic car wreck happens. If it catches you off guard, which I believe is what the ad is designed to do, it is very much akin to a jump scene at a scary movie. These are not small fender benders either. The first thing you think about is how badly the people are hurt. Which leads to the next scene in which everyone who was in the car is shown visible shaken by the accident but otherwise very ok. The new VW slogan which is, “Safe Happens,” is then shown.
After I saw this I immediately thought two things. First was, “wow, that was a weird, almost scary commercial.” And the second was, “that car must be really safe.” I realize that it is just a commercial and none of it was real but they still made their point.
Now, my second thought was, what they were going for with these tv spots? However, I wonder, if a lot of people might just think it is a disturbing commercial. Usually, car companies want the thought of an accident to be far from anyone’s mind when their commercials are running. This is a bold strategy for Volkswagen and it will interesting to see how people react to it.
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Recent news about auto parts suppliers.
Here in America, our cars and trucks are a very important part of our everyday lives. Most of us could not function without them. Many of you know that if one little part goes wrong, it could put the whole vehicle out of commission. And there are a lot of parts.
The auto makers, such as Ford, GM, Toyota, etc., who make our cars, do so with parts they receive from their suppliers. And many of these suppliers are experiencing tough times right now. Some, including Delphi Corp., have had to file for bankruptcy. This definitely can put a kink in the auto makers plans. However, the auto makers themselves might be partly to blame.
One of the reasons many auto parts suppliers are facing difficulties is because auto makers have been demanding lower prices. This would hurt by itself, but the suppliers have had to face rising costs for the materials used to make their parts.
How has this affected the auto makers? Two, specifically, have made news in this department of late.
Toyota has been working hard to secure its relationship to its suppliers by working more closely with them. They hope this will help bring costs down for the parts makers and keep their supply chain moving properly.
Meanwhile, Ford has made news advocating some bankruptcy reform for the parts suppliers. Naturally they would be worried because when their suppliers file for bankruptcy the supply chain is rudely interrupted.
This just goes to show that when one part fails the whole chain is in trouble.
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GM is revamping its Saturn brand.
When GM unveiled the Saturn brand in the 90’s, it was marketed as “a different kind of car company.” Although that slogan was dropped a few years ago, Saturn will once again be a different kind of company. This time it will be because GM is finally revamping its image and lineup.
Saturn grew quickly in the early 90’s as a semi-independent branch of GM. The idea was for them to compete with smaller foreign cars. However the brand has long since passed its prime. As Brett Clanton of the Detroit News put it,
its sales peaked a dozen years ago and its entire lineup was outsold by the Honda Accord last year.
With GM’s financial problems well known, it seriously had to evaluate the Saturn brand and decide if it was worth keeping. They decided to make the necessary changes and hopefully move the brand forward. Maybe Saturn won’t go the way of Oldsmobile. GM tried a similar re-invention of the Oldsmobile brand in the late 90’s but then phased out the brand ending in 2004. (Side note: I currently drive a 98 Oldsmobile Intrigue which was one of the “new” Oldsmobiles)
The New look of Saturn will be much more European and upscale. Check out their website at Saturn.com to see four of the new models. The SKY Red Line looks especially spiffy.
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Are auto makers using hybrids to hide behind?
“What’s in a name?” Yes, I just quoted Shakespeare in an auto blog. But seriously, what kind of meaning does the word hybrid bring with it. Several years ago many environmentalists saw hybrids as salvation for the auto industry. But now, many of these same people are weary that the big auto manufacturers have hijacked the word hybrid and fooled a lot of people.
Bradley Berman has written a fantastic article on this subject; in it he quotes Jason Mark who is the director of the Clean Vehicles Program for the Union of Concerned Scientists.
"We think that hybrid technology ought to be reserved for the environmental and consumer benefits [it] can deliver," says UCS’s Jason Mark. "Every quasi-hybrid under the sun is being labeled as a hybrid for public relations benefits." Mark thinks that hybrid technology should be put to better uses than turning a 16-mpg vehicle into an 18-mpg vehicle. "The point is not to turn extreme gas-guzzlers into moderate gas guzzlers."
Mr. Mark is not the only one upset. Many environmental groups focused on the auto industry have taken offense at how the big auto makers use the hybrid label loosely. They are also enraged at how the auto makers turn around and lobby against policies and laws that would require them to lower the emissions of their vehicles. Many of these groups choose to target a specific auto manufacturer but they are united on the case against the Pavley Law.
The Pavley Law, which would be a California law but would effect the auto industry in a wider sense, has met stiff opposition in the form of auto companies. Even Toyota, makers of the prius I mentioned the other day, is among those trying to block the law. This is the kind of actions that has these environmental groups stirred up like a disturbed fire ant bed.
As Mr. Berman put it,
Now the only way for a car company to be considered environmentally friendly is to remove its name from the lawsuit
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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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Toyota looks to continue success in hybrid car market.
With gas prices and concern for the environment both on the rise, many motorists are increasingly focused on one set of numbers represented by three small letters. MPG as everyone knows stands for miles per gallon. But did you know that Toyota hopes to put a really big number in front of those letters? How does 113 sound to you? As in 113 mpg.
Toyota hopes to set a new record for production cars by reaching this number with its next version of the Prius. The Prius is already one of the most popular hybrid options available to drivers in North America but with competition from other automakers they hope to build on its success.
The Prius works by alternating between running its gas powered engine and in electric mode. The new version will run in electric mode far more often, including all the time at slow speeds. This will all be accomplished with some really cool new batteries. These aren’t your average double A’s.
The current Prius uses nickel-hydride items, which currently offer the best balance between cost and performance. But engineers are working on new lithiumion cells, which are lighter, smaller, generate more power and last longer.
Look for this new Prius around 2008 as well as electric offerings by the likes of Subaru and Mitsubishi some time after that.
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How to know if your Check Engine light means something big or small.
Everybody, at one time or another, has more than likely seen the “Check Engine” sign light up on their car’s dashboard. But what does this mean? Should I be worried? Well Joe Thompson, who owns an auto body shop, has written a short but informative article about what to do when your Check Engine light is illiminated
You shouldn’t panic because the problem could be something very simple. Many people know that tightening the gas cap could make the light turn right off. However, if that is not the problem take Joe’s advice.
Try reducing your speed and the load of your vehicle. The loss of power could actually trigger the "check engine" warning light to go on. Or you can also try slowing down, or remove any accessories that need the power of your engine.
If none of this helps you should take your vehicle to a professional. It might be beyond your ability, but the problem could still be minor and very fixable. If you wait or ignore the sign altogether, you run the risk of your car becoming seriously damaged. Not only that but if you wait and the problem becomes more serious it may not be covered by your car’s warranty were a lesser problem would be.
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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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