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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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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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Bill Ford Talks about the future of Ford.
Bill Ford, Chairman and CEO of Ford Motor Co., gave strong words to reporters, saying that, Ford would not even consider a Chapter 11 bankruptcy restructuring. Ford made this statement just before he was going to be awarded the 2006 Automotive Industry Executive of the Year.
"We don’t see it at all," Bill Ford said of a possible Chapter 11 filing. Ford Motor has ample liquidity, he said, stressing that the company was profitable in 2005.
He acknowledged that the U.S. auto industry is in a "precarious" state.
Ford Motor’s biggest problem is the bleeding North American auto business, which lost $1.6 billion before taxes and charges in 2005. Turning around that unit, the objective of the company’s Jan. 23 Way Forward restructuring announcement, requires tough decisions and nimble thinking, he said.
Ford Motor Co. plans to close 14 plants through 2012 and cut 30,000 jobs in the hopes of saving the company.
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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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10 secrets that could help you
Cars.com has devised 10 "secrets" that the mainstream consumer is oblivious of. These secrets can help you get the best deal, save gas, and be informed when purchasing or maintaining your automobile. Here are three:
1. The Best Finance Rates
Dealers aren’t required to give you the best finance rate. Many consumers finance their vehicles through the dealership. Sometimes this involves the best deal, especially when subsidized by the automaker. However, if a dealer claims to have found you the "lowest rate," it’s possible that rate includes a point or two of profit for the dealer. (There’s no federal law forbidding this.) To be sure and get the best rate, look into it on your own before entering the dealership.
2. Dealers Don’t Own the Cars They Sell
Dealers don’t own the cars they sell, and neither do the manufacturers. Instead, the bank — sometimes in the form of the captive finance company — owns them.
3. Cordless Hybrids
Hybrids don’t need to be plugged in. Understandably, many people think hybrids run on electric power until their batteries die, and then they switch to a gasoline engine. While some plug-in hybrids existed as long as a century ago, all the current versions use gas engines that both propel the car and replenish the battery, which also is charged through braking. There’s some plug-in research going on, but don’t hold your breath. Automakers determined that American buyers are, well, turned off by the prospect of plugging a car into household current, so most hybrid advertising emphasizes that the model "never needs to be plugged in."
These 3 tips will save you a lot of headaches and money when it comes to automobiles. I sure wish I would’ve known some of these secrets when I was buying my first car.
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