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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.
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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.
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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.
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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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The new Ford Focus is an intelligent buy.
In 2000 the Ford Focus was introduced to the world. However, the world was not so fond of the new compact. There were many design problems and mechanical errors that prohibited the vehicle from being successful.
Nevertheless, with time and a good plan, Ford has redesigned and refashioned this car into a great buy.
Aggressive Price.
Yes, the number of cars available under US$15,000 continues to drop each year. However, the Focus takes it one step further as it retails just below $14,000.
Sufficient Power.
The 2.0L I4 engine paired to a five speed manual transmission gives the car enough power to get it moving and keep it moving at a nice clip on the freeway. Competing models offer smaller engines as small as 1.6L as found in the Kia Rio.
Spacious Interior.
Up to five people can be carried in the Focus and the interior room is large for a car in its segment
An Assortment of Body Styles.
Most cars built today come in only one or two body styles, however the Focus features four: a three-door ZX3 hatchback, a five-door ZX5 hatchback, a ZX4 sedan and the ZXW wagon. It is the ZX3 that retails for as low as US$13,990.
Respectable Fuel Economy.
With EPA figures of 26 city / 34 highway, the Focus achieves a fuel mileage level that few small cars can boast of.
The Ford focus is now a great buy for all.
But, it is especially promising for those with smaller budgets. And, it provides a great alternative to those who want to save money at the gas pump.
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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.
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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.
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- 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
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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Not a single American car manufacturer makes the list
2005 was a tough year for American auto industry.
The industry as a whole is having to take a step back and try to figure out what went wrong.
I can sense when something is amiss and this certainly seems like one of those times. It becomes abundantly clear that something is wrong when not even a single American-made car achieves top 10 status from Cars.com.
- Honda Civic
- Honda Accord
- Toyota Corolla
- Honda Odyssey
- Toyota Camry
- Toyota Prius
- Toyota Sienna
- Honda CR-V
- Toyota Highlander
- Toyota Tacoma
According to this list, American auto manufacturers are missing the mark. With GM’s recent problems, even the silly BMW faux pas during Super Bowl week won’t be enough to save their top American auto spot. Hopefully, this is a wake up call to the American auto industry to "get on the ball."
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Things to consider when buying a new car.
When buying a car, some of us spend a great deal of time researching.
We research because we don’t want to spend any more time than we are required to find the best price on the vehicle we want. We want all the luxuries without the luxary price tag. However, even as a smart shopper, we may overlook some details that could, potentially, save us money.
1) Review your credit report and score.
Your credit score determines — pretty much to the dollar — how much you’ll have to pay to finance a new car. The higher the score, the lower the interest rate.
2) Shop around with your financing options.
Most consumers get their financing through the dealer, which may be able to offer a lower wholesale rate. But that’s not always the case. So before you head to the dealership, find out what annual percentage rates you can get from your bank or credit union or on the Internet.
3) Check for manufacturer incentives.
Manufacturers sometimes offer special financing offerings on certain models — these are typically in the 2.9 to 6.9 percent range, so low that it’s tough for even credit unions to beat them.
Once you’ve found the vehicle you want to buy, apply these suggestions to finance your purchase.
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