Toyota Motor Sales, U.S.A., Inc., (TMS) announced this month that it will provide Toyota plug-in (PHEV) hybrid prototypes to the Advanced Power and Energy Program at the University of California, Irvine (UCI) and the Institute of Transportation Studies at the University of California, Berkeley (UCB), as part of its on-going sustainable mobility development program with the two UC campuses.
Toyota Motor Corporation (TMC) has also announced that the Japan Ministry of Land, Infrastructure, and Transport has certified prototype plug-in hybrid vehicles for use of similar testing on Japan public roads.
Toyota has a long history of working collaboratively with both universities on the development of advanced technology and alternative-fuel vehicles, including demonstration and research programs involving fuel cell vehicles, gas-electric hybrids and pure electric vehicles. This next phase of its sustainable mobility partnership involving plug-in hybrid vehicles will be conducted in conjunction with the Alternative Fuel Incentive Program jointly developed by the California Air Resources Board (CARB) and the California Energy Commission (CEC). The goal of this program, which was authorized under California Assembly Bill 1811, is to incentivize the use and production of alternative fuels and vehicles.
"Our goal with this program is to evaluate various advanced vehicle technologies, as well as key factors such as infrastructure, intelligent transportation systems, and urban design," says Dave Illingworth, senior vice president and chief planning officer for TMS. "The Toyota Prius convinced mainstream consumers on the merits of hybrids. Although there is much work to be done with plug-ins, we see this pilot program as a significant step in the advancement of the technology."
A conventional gas-electric full hybrid system, such as that found in the Toyota Prius, is powered by both an electric motor and a gas engine. The system operates in pure-electric mode, pure-gas mode, or a combined gas-electric mode. The electric motor is powered by a dedicated battery pack that is kept charged by electricity generated by the gas engine and the vehicle's re-generative braking system. The fact that the hybrid battery never needs to be plugged-in to a recharging station has been one of the primary selling points with mainstream consumers.
Based on the current-generation Prius, the PHEV prototypes will be powered by oversized packs of nickel-metal hydride batteries that effectively simulate the level of performance Toyota expects to achieve when it eventually develops its own more advanced, compact and powerful battery systems.
The prototype PHEV system is designed to operate in a similar manner to the current Prius, switching from pure-electric mode, to gas-engine mode to a combined gas-electric mode. The big advantage is that the PHEV's prototype battery pack is capable of storing significantly higher levels of electricity, supplied by "plugging into the grid" for periodic recharging sessions. With significantly more electric power in reserve, the vehicle will be capable of operating in pure-electric mode for longer periods of time and at much higher speeds than the current Prius. This will result in substantial gains in fuel economy and a major reduction in total tailpipe emissions of smog-forming gases, over current conventional hybrid systems.
Given its commercial success, it's no surprise that the further advancement of hybrid technology is a top priority for Toyota. As of the end of May 2007, cumulative sales of Toyota hybrid vehicles worldwide topped the one million mark, a global sales number the company hopes to hit annually in the early 2010s.
The U.S. market accounts for more than half of Toyota's first million hybrid sales -- 604,693 vehicles from the first Prius sold in 2000 through June 2007. And despite decreasing tax credits, demand continues to climb.
An analysis by The Detroit News showed Toyota accounted for 80 percent of the U.S. hybrid market in May, a month that saw TMS' hybrid sales jump more than 100 percent over the previous May. The company's hybrid sales for the first six months of 2007 are up 69 percent over the same period last year.
"The cost-benefit of hybrids is becoming more apparent with climbing gas prices," says Jim Lentz, TMS executive vice president. "We anticipate combined sales of Toyota and Lexus hybrids in the United States to reach a quarter million units this year."
The price of gas isn't the only reason people purchase hybrids; many are concerned about reducing dependence on foreign oil and tailpipe emissions. A recent study by the National Renewable Energy Laboratory says hybrids have saved close to 215 million gallons of fuel in the United States since their introduction in 1999.
Additionally, Toyota estimates that over the past decade, hybrids worldwide have emitted approximately 3.5 million fewer tons of CO2 than gas-powered vehicles of the same class.
SOURCE: Press release via Toyota
Some Risks of Hybrid Cars
Although hybrid cars offer great savings on gas and are more environment friendly than their conventional counterparts, they do pose certain risks.
Because of their giant sized, high voltage batteries they do pose a risk of acid spills and electric shocks especially during accidents. To minimize these risks stringent safeguards are in place.
The giant battery is placed at the back of the vehicle and the structure of the vehicle and its location is such that it is well protected from any shock.
Certain technological advances made ensure that even if the battery is damaged in an accident the acids won't spill out like in a conventional lead acid battery. Conventional batteries contain an acidic liquid electrolyte but in a hybrid giant battery, technology is used to ensure that this liquid remains as a sort of "paste," thereby minimizing the spill.
Further concerns arise out of the risk of electric shock. The giant battery pack at the rear can pack a punch of up to 300 volts. If the cables which connect this battery to the engine were to rupture or to leak for some reason then they could deliver a nasty wallop. However there are safeguards like automatic cut offs when a leakage is detected, which are designed to protect the passengers.
However hybrids are clearly here to stay. With technology improving rapidly and attention clearly focussed on passenger safety hybrid cars are going to be a pleasant and profitable driving experience in the years to come.
Because of their giant sized, high voltage batteries they do pose a risk of acid spills and electric shocks especially during accidents. To minimize these risks stringent safeguards are in place.
The giant battery is placed at the back of the vehicle and the structure of the vehicle and its location is such that it is well protected from any shock.
Certain technological advances made ensure that even if the battery is damaged in an accident the acids won't spill out like in a conventional lead acid battery. Conventional batteries contain an acidic liquid electrolyte but in a hybrid giant battery, technology is used to ensure that this liquid remains as a sort of "paste," thereby minimizing the spill.
Further concerns arise out of the risk of electric shock. The giant battery pack at the rear can pack a punch of up to 300 volts. If the cables which connect this battery to the engine were to rupture or to leak for some reason then they could deliver a nasty wallop. However there are safeguards like automatic cut offs when a leakage is detected, which are designed to protect the passengers.
However hybrids are clearly here to stay. With technology improving rapidly and attention clearly focussed on passenger safety hybrid cars are going to be a pleasant and profitable driving experience in the years to come.
Porsche demonstrates Cayenne SUV hybrid prototype
Porsche this week demonstrated a Cayenne SUV hybrid prototype, providing a glimpse of what the company will offer to consumers by the end of the decade. The Cayenne Hybrid features a full-hybrid design where the hybrid module (clutch and electric motor) is positioned between the combustion engine and the transmission. The design will improve acceleration and engine flexibility compared to a conventional Cayenne and Porsche is targeting average fuel consumption figures of 9.8 liters/100 kilometers in the New European Driving Cycle and about 24 miles per gallon in the US FTP cycle for the Cayenne Hybrid, and hopes future developments may allow it to push towards a consumption figure of 8.9 liters/kilometer (approximately 26 miles per gallon).
Coordinating the car’s three main components – the combustion engine, the electric motor and the battery – is the Hybrid Manager, the heart of the Cayenne Hybrid. The Hybrid Manager, which oversees some 20,000 data parameters as compared to only 6,000 data parameters for a conventional engine, is one of the most powerful technologies found in any hybrid vehicle.
Other unique features of the Cayenne Hybrid designed to decrease fuel consumption include the power steering and vacuum pump for the brakes, as well as the air conditioning, which operate on electric power. Technical components, such as the oil pump in the Cayenne’s automatic transmission, have been replaced by electrically powered units. The Cayenne Hybrid’s electro-hydraulic steering – a first for a vehicle of its kind, will ensure the Cayenne Hybrid drives like a Porsche with predictable and safe handling characteristics and the agility that is expected of a Porsche SUV.
Porsche plans to introduce similar hybrid technology in a version of its Panamera four-door Gran Turismo. The Panamera will debut in 2009, with a hybrid to follow.
Porsche Cars North America, Inc. (PCNA), based in Atlanta, Ga., and its subsidiary, Porsche Cars Canada, Ltd., are the exclusive importers of Porsche sports cars and Cayenne sport utility vehicles for the United States and Canada. A wholly owned, indirect subsidiary of Dr. Ing. h.c. F. Porsche AG, PCNA employs approximately 300 people who provide Porsche vehicles, parts, service, marketing and training for its 213 U.S. and Canadian dealers. They, in turn, provide Porsche owners with best-in-class service.
Ford posts surprise $750m profit
US carmaker Ford has posted its first quarterly profit since 2005, crediting cost-cutting and the sale of its Aston Martin business for its progress.
It made $750m (£367m) between March and June, as against a loss of $317m in the same period a year ago.
The news came as Ford said that it was talking "in greater detail" to parties interested in buying its UK Jaguar and Land Rover divisions.
Analysts believe a private equity buyer is most likely to buy the marques.
Ford did not name the contenders, although they are thought to include India's Tata Motors.
It also said that a strategic review of its Volvo business would probably be completed by the end of the year.
Selling assets
Ford's return to profit surprised Wall Street because, like other US carmakers, it has struggled to compete with Asian rivals.
Rising petrol prices have boosted Asian firms in recent years, as buyers opt for more fuel-efficient vehicles.
Most US carmakers have suffered from the decline in demand for so-called "gas-guzzling" sports utility vehicles (SUVs) and trucks.
Ford has been selling assets such as Aston Martin to offset heavy losses - and the proposed disposal of Land Rover and Jaguar is seen as a continuation of this policy.
The firm needed to offload its luxury car brands to secure the rest of the business, analysts have said, and it is estimated that the sale of Jaguar and Land Rover could raise as much as $1.5bn (£750m).
The two businesses employ about 16,000 workers in the UK and Ford said that it "fully understands its responsibilities, not only to its employees but also to its local communities".
Land Rovers are made at Solihull, while Jaguar has a site at Castle Bromwich - both in the West Midlands.
The two also share a site at Halewood on Merseyside.
Among the investment firms expected to bid is Cerberus Capital Management, which bought the Chrysler Group from DaimlerChrysler in May.
Ripplewood Holdings, a group headed by former president of Chrysler, Thomas Stallkamp, is also reported to be interested.
Earlier this month, Ford denied that it was in talks about selling off its Swedish carmaking division Volvo, which it bought in 1999.
Hybrids: Appearance Matters More Than Mileage
Toyota's hybrid Prius is selling. On the other hand, most of the other hybrid vehicles, regardless of the manufacturer, are not. At least, in any big numbers.
Our take? Is it good or bad? We say it's good. The consumers are offered a variety of technology and will ultimately reward the automakers who offer the mostest.
In June alone, 17,756 Priuses were sold. That contributes to a total of 94,503 units sold for the first six months of the year. Although Toyota offers other hybrid models such as the Camry hybrid or Lexus GS, the Prius accounts for two-thirds of the company's sales in hybrid vehicles.
Other automakers did not fare so well. Sales of the hybrid Honda Civic for six months are fewer than Prius sales just for the month of June. The company has dropped the Accord hybrid. And only 11,444 Ford hybrid Escapes have been sold during a six month period. A total of 2,028 Mercury Mariner hybrids were sold.
So, what's happening here? Why is Prius doing so well when the rest of the hybrids are lagging?
Some say the style of the Prius is what is attracting consumers. It has its own distinct look. Other hybrids, on the other hand, are just versions of non-hybrid models.
The dilemma of hybrids that sell or don't sell is opening up the fuel efficiency market to all sorts of alternatives. For example, General Motors and Chrysler will be offering full-size SUV hybrids. There will be plug-in electric hybrids. The automakers are also turning to diesel. Chrysler, Ford, and General Motors will be offering diesel pickups in the near future. GM plans to offer diesel Caddies and Saturns by 2010. Finally, Honda plans to sell a small car in the U.S. that features a four-cylinder diesel engine.
Then there are the more high tech cars with fuel cells or the twin turbo technology from Ford.
How to Set a New Car Budget - Auto Loan and Beyond
It is easy to loose sight of reality when you are looking for a new car either for buying or leasing. Before you sign on the dotted line for an auto loan, take a critical look at your finances, credit score, and monthly income for the next few years of term of auto loan.
Here Are A Few Critical Steps in Setting a New Car Budget
It is crucial that you figure out accurately how much you will be able to afford for a new car. Things like the down payment you will have to be prepared for, what you can actually afford to pay every month, your credit limit, what will be its resale market value if you plan to sell it off a few years later.
There are other important issues like the car insurance additions, taxes you need to bear, and whether you can meet your household expenses to give a deep thought to.
The Steps
1. After you are decided on a particular car and shopped around for quotes from dealers as well as auto loan lenders, sit down to do your math. Decide on an amount you can easily put down as down payment. The higher the amount you are able to afford the better as it obviously pays back through reduced interest payout.
2. There are several auto loan calculators available on the net but when using one, mind that the loan amount also includes insurance and taxes. Get a fair idea of monthly payments, total interest and the number of years you are comfortable with.
3. Look back whether you have sufficient life and health insurances already in place, just in case. Auto loan lenders, sometimes insist on additional insurance cover depending on your financial and credit report status. You will have to take this into your car budget in case you are lacking them.
4. Critically compare the third party loan offers against loan from credit unions and dealership loan arrangements. Credit unions generally enjoy the reputation of being cheaper than banks while rates for dealership loans are slightly higher however this is not the case always.
5. Shed the belief that sticker prices are non negotiable. Dealers are free to add their margin to the base price and this margin is usually about 12-15%. There is always a room for bargaining with the dealers and their standard ‘bargain margin' is usually around 5%-7%. If you can pull off this, it very well pays for a part of your auto loan interest.
6. One final step in budgeting a new car is foreseeing and preparing for future adversities and financial crises such as job loss, loss of business, burglary etc. Although none of them are predictable, they are eventual possibilities in anybodys life. The question is not that of whether you face a financial crunch or not, but it is essentially one of whether you can meet your monthly payments or not for the term of the loan and after.
The writing on the wall is nothing moves without proper budgeting in an organized world. You can implement good points and suggestions from friends and if needed you can take a credit counseling also. After all, an auto loan is there to quench your thirst for a new car.
Mercedes-Benz unveils DiesOtto - the “future of the gasoline engine”
Don’t count out the petrol engine just yet according to motoring giant Mercedes-Benz, which has unveiled a new gasoline engine offering the high torque and fuel economy of a diesel together with extremely clean emissions. The company is highly optimistic, calling it “the future of the gasoline engine.” The Mercedes-Benz DiesOtto powertrain is a further development of the spark-ignition engine and includes features such as direct gasoline injection, turbocharging, variable valve timing and variable compression and it will be used in conjunction with a hybrid integrated starter/generator module. At its core lies the controlled auto ignition, a highly efficient combustion process similar to that of a diesel. The result is an 1800cc four-cylinder motor producing 238 bhp (175 kW) with torque of 400 nm while delivering 6 l/100 km (47 UK mpg, 40 US mpg) in an S-class.
Optimising the internal combustion engine is one of the milestones on the Mercedes-Benz roadmap for sustainable mobility.
The company’s powerful and economical BLUETEC diesel engine diesel has already been available in the US in the E-Class since 2006, and it will also become available in Europe from the end of this year.
The E 300 BLUETEC will be by far the cleanest diesel in its class, and will meet the requirements of the EU5 exhaust emission standards in full.
"Our next goal will now be to make the gasoline engine as economical as a diesel. All the preconditions for this are provided by our DiesOtto concept, which incorporates the foremost strengths of both the gasoline engine and diesel engine," says Prof. Dr. Herbert Kohler, Head of Group Research & Advanced Engineering Vehicle and Powertrain; Chief Environmental Officer of DaimlerChrysler.
The result of this " marriage " is a four-cylinder unit with a displacement of just 1.8 litres, which combines the strengths of the low-emission gasoline engine with the fuel economy of a diesel.
Despite its considerably reduced displacement – downsizing is one of the major factors for achieving a lower fuel consumption – this compact power unit delivers superior performance together with refinement at the level of the luxury class.
An output of 175 kW/238 hp and a maximum torque of 400 newton metres are achieved together with the hybridisation a fuel consumption of less than six litres of gasoline per 100 kilometres. This figure by no means relates to a small or compact car, but to a vehicle the size of the current S-Class, with the level of comfort and safety that is typical of a Mercedes.
" In line with the worldwide success of today's diesel engine, vehicles equipped with gasoline engines will continue to have a long-term attraction for many customers and in many markets. Accordingly we are giving our attention to both engine types – including a full hybrid option for diesel and gasoline vehicles, " says Prof. Kohler. Mercedes-Benz is working on its DiesOtto concept with corresponding emphasis.
Its key technological features are as follows:
* Downsizing with fewer cylinders and a smaller displacement
* Turbocharging for superior performance
* Direct gasoline injection as a further fuel economy measure
* Controlled auto ignition, a combustion process similar to that of a diesel
* Variable valve control
* A variable compression ratio leading to even better fuel economy and, depending on customer needs and the type of operation,
* A hybrid module with an integrated starter/generator, which makes the drive unit even more economical.
When starting and under full load, the fuel/air mixture is ignited by a spark plug, as in a conventional spark-ignition engine (homogeneous combustion). The controlled auto ignition to which the DiesOtto automatically reverts within its working cycle occurs under partial load conditions, i.e. at low and medium engine speeds. The result is the very low nitrogen oxide emissions of homogeneous combustion at reduced reaction temperatures. All further emissions control in the DiesOtto engine is by means of a standard three-way catalytic converter. A highly efficient engine management and control system has also been realised to combine the individual sub-systems into a drive concept.
The current prospects for the future of the internal combustion engine reveal its great potential, and show that the new drive concept is a feasible proposition in the mid-term according to Benz. Some of the intermediate solutions incorporated, e.g. direct gasoline injection, are already in series production at Mercedes-Benz. Others will be gradually integrated into series-production engines until the overall solution has been realised.
Ford Vehicle Quality Still Consistently High
Ford Motor Company vehicles continue making dramatic strides in quality, outstripping the industry's rate of improvement in 'things gone wrong' (TGWs) in the second quarter U.S. Global Quality Research System (GQRS) study.
The GQRS report is the latest of several recent third-party quality assessments showing Ford's continued improvement. Ford received 14 total vehicles ranked in the top three in their respective segments, including five highest-ranked segment awards, in J.D. Power and Associates IQS study released on June 6. Many of those vehicles were recently launched.
On June 28, J.D. Power and Associates APEAL study ranked Ford Edge the industry's top performing all-new vehicle and Ford Mustang won its segment for the third straight year.
In April, RDA Group released its first quarter GQRS report for the year showing Ford in a statistical dead heat with Toyota and just behind Honda.
"We're encouraged by these sustained quality gains, but we also know we have more work to do," Fields said. "The quality race never ends, and we have to make sure customers know how much progress and momentum we're gaining on the quality front."
The company improved by 10 percent versus last year, while the report's average industry-wide improvement rate hit 4 percent. Plus, 19 Ford Motor Company models ranked in the report's top three places for customer satisfaction, TGW performance -- or both -- after three months in service.
Mustang Shelby GT500 (pictured), Ford Explorer and Lincoln Mark LT pickup won top honors for TGW performance, while Ford Edge, Ford E-series vans and Mazda MX-5 Miata topped their segments in customer satisfaction. Ford's newest vehicles, including Ford Edge, Lincoln MKX and Lincoln Navigator L, were strong customer satisfaction performers -- and each launched with considerably fewer TGWs than the industry average. Meanwhile, Ford Fusion, Mercury Milan and Lincoln MKZ are sustaining their high quality levels since their launches in late 2004.
"We're launching new products with quality, and our team is working hard to consistently build quality into the vehicles we're delivering for customers," said Mark Fields, president of The Americas, Ford Motor Company. "We've redoubled our commitment to deliver more products customers really want -- with quality that rivals the best in the industry."
The 2007 second quarter U.S. Global Quality Research System study, conducted for Ford by RDA Group of Bloomfield Hills, Mich., asks customers of all major makes and models to comment on troubles and rate their overall satisfaction with their three-month-old vehicles.
Second-place winners for TGW performance and customer satisfaction include:
* Ford Freestyle: TGW performance, Crossover utility.
* Ford Expedition: TGW performance, Large traditional utility.
* Ford Expedition EL: Customer satisfaction performance, Large traditional utility.
* Ford E-Series: TGW performance, Full-size van passenger/cargo.
* Mercury Milan: TGW performance, CD car segment.
* Mercury Mountaineer: TGW performance, Medium traditional utility.
* Lincoln Navigator L: TGW performance and customer satisfaction performance, Large premium utility.
* Mazda MX-5 Miata: customer satisfaction, Sports car segment.
* Volvo S60: TGW performance, CD Premium car segment.
* Volvo S80: TGW performance, D Premium car segment.
Third-place winners include:
* Ford Fusion: TGW performance, CD car segment.
* Ford F-150: TGW performance, Fullsize light truck segment.
* Lincoln MKZ: TGW performance, CD Premium car segment.
* Lincoln Navigator: TGW performance and customer satisfaction performance, Large premium utility segment.
* Mazda MX-5 Miata: TGW performance, Sports car segment.
In the report, Ford Motor Company vehicles are at 1,427 TGWs, representing 159 fewer TGWs since last year. The company's lineup achieved an overall customer satisfaction rating of 75 percent, up by 1 percentage point.
"We've been employing the most disciplined processes around the world to improve the quality of all of our brands," said Bennie Fowler, vice president, Quality, Ford Motor Company. "The results show that the processes work. And we will not let up."
Ford, Lincoln, Mercury brands had an impressive performance with 1,419 TGWs, an improvement of 144 TGWs; and a customer satisfaction rate of 75 percent, up by 2 percentage points.
Volvo vehicles are at 1,433 TGWs, an improvement of 114 TGWs, and a customer satisfaction rate of 79 percent. Jaguar vehicles are at 1,603 TGWs, a deterioration of 46 TGWs, and a customer satisfaction rate of 82 percent. Land Rover is at 1,794 TGWs, an improvement of 411 TGWs, and a customer satisfaction rate of 73 percent. Mazda vehicles are at 1,798 TGWs, representing an improvement of 107 TGWs, and a customer satisfaction rate of 73 percent.
The survey average for TGW performance is 1,447 and for customer satisfaction level is 78 percent.
The GQRS report is the latest of several recent third-party quality assessments showing Ford's continued improvement. Ford received 14 total vehicles ranked in the top three in their respective segments, including five highest-ranked segment awards, in J.D. Power and Associates IQS study released on June 6. Many of those vehicles were recently launched.
On June 28, J.D. Power and Associates APEAL study ranked Ford Edge the industry's top performing all-new vehicle and Ford Mustang won its segment for the third straight year.
In April, RDA Group released its first quarter GQRS report for the year showing Ford in a statistical dead heat with Toyota and just behind Honda.
"We're encouraged by these sustained quality gains, but we also know we have more work to do," Fields said. "The quality race never ends, and we have to make sure customers know how much progress and momentum we're gaining on the quality front."
General Motors Hedges Diesel Future With VM Motori Purchase
DETROIT -- General Motors Corp. announced today it has reached a joint venture agreement with Penske Corporation to purchase 50-percent equity of VM Motori S.p.A, a designer and manufacturer of diesel engines based in Cento, Italy.
This investment builds on GM's existing relationship with VM Motori, GM's diesel expertise worldwide, and its strong relationship with Isuzu.
"Diesel engines have a very important role in GM's global advanced propulsion strategy," said Tom Stephens, group vice president, GM Global Powertrain and Quality. "We are leveraging expertise and resources within our company and through technology partners to ensure we develop the world's best powertrains."
GM announced at the Geneva Motor Show that it will jointly develop a new 2.9-liter V-6 turbo diesel engine with VM Motori that is scheduled to launch in the Cadillac CTS in Europe in 2009. GM Powertrain Europe will focus on the development of the first industry application of a clean combustion process called closed-loop combustion control, electronic engine control and exhaust-gas aftertreatment, as well as calibration and integration into GM vehicles. VM Motori plans to build the new unit at its plant in Cento, Italy, and is responsible for the mechanical aspects of the engine's design, development and testing.
Penske Corporation, based in Bloomfield, Mich., is a transportation services company that encompasses retail automotive sales and services, truck leasing, supply chain logistics management, transportation components manufacturing, and high-performance racing.
VM Motori, founded in 1947, specializes in engine design and production for a variety of uses, including light commercial vehicles.
GM currently offers 17 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices from the 1.3L four-cylinder diesel engine sold in the Opel Agila and Corsa, up to the 6.6L V-8 Duramax diesel sold in full-size vans, heavy duty pickups and medium duty trucks in the U.S.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
Forward-looking statements
In this press release and related comments by GM's management, we use words like "expect," "schedule, ""plan," "intend," "pursue," or "believe," to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but the actual events may differ materially due to a variety of important factors. Among other items, such factors include technical innovations, market and regulatory conditions, or changes in the general business or economic environment.
GM Uses Onstar To Lower Car Owners' Insurance Premiums
Today, GMAC Insurance and OnStar announced the rollout of the Low-Mileage Discount program where Americans who drive less, pay less on their auto insurance.
The opt-in program is the first of its kind leveraging state-of-the-art technology using OnStar to allow customers who drive fewer miles to benefit from substantial savings. Eligible active OnStar subscribers simply sign up to save on their premiums (up to 54%) if they drive less than 15,000 miles annually. Since the pilot program began, 10,000 participants have enrolled in the Low-Mileage Discount program.
Under the program, new customers receive an automatic 11% discount, as well as the GMAC Insurance OnStar Subscriber Discount, upon enrollment (existing customers receive a discount based on historical mileage). With the subscriber's permission, the odometer reading from his or her monthly OnStar Vehicle Diagnostics email is forwarded to GMAC Insurance. Based on those readings, the company will decrease their premiums using discount tiers corresponding to miles driven. There is no additional reporting, downloading or monitoring required, and no additional data is gathered or used for any purpose other than to help manage transportation costs. Customers who drive more than 15,000 miles per year are not penalized. In fact, all OnStar customers receive a discount for simply having an active OnStar subscription.
"Customers who drive less should pay less, and this program allows customers to use technology already in their vehicles to give them the discounts they deserve," said Gary Kusumi, president and CEO, GMAC Insurance. "Giving consumers the power of cost control is a welcome advance, especially as people manage their transportation costs more closely in the midst of fluctuating gas prices. The program also encourages people to limit unnecessary driving, helping the environment in the process."
Robert Panczak of Schaumburg, IL, experienced the benefits of the GMAC Insurance Low-Mileage Discount program first-hand as a participant in the program pilot. Panczak is savvy about the insurance industry and wanted to find a company that offered the best value for his needs. He had three cars in all, but one, a Saturn VUE equipped with OnStar, was driven very rarely and only for short trips. Since beginning the pilot program in March 2006, Panczak has saved $500 per year with the Low-Mileage Discount alone.
"Before switching to GMAC Insurance, my premiums were eating me alive," Panczak said, "and since I didn't use one car as often as the others, why should I pay the same amount in insurance? Now, I don't have to."
"We are bringing more value to the 2.8 million subscribers who receive monthly OnStar Vehicle Diagnostics emails," said Chet Huber, OnStar president. "Not only are we providing them with information about the health of key operating systems in their vehicles, we are helping them to save on their transportation costs as well."
OnStar Vehicle Diagnostics is an industry-first service available only from GM, which collects valuable maintenance information on four of the vehicle's key operating systems from hundreds of diagnostic checks and sends a personalized e-mail directly to the owner once a month.
The GMAC Insurance Low-Mileage Discount program is easy to initiate, with no effort from the customer beyond initial enrollment. There are no additional devices installed in the vehicle, and the only data that GMAC Insurance collects are miles driven on a monthly basis. Other low-mileage discount programs have met with customer resistance due to privacy concerns over the level of data collected.
Drivers can also opt to take advantage of enhanced accident support services. If a GMAC Insurance customer is involved in an collision, they can request the OnStar advisor to transfer them to a representative to initiate the claim and arrange for towing and rental car services, after responding to any emergency assistance needed.
Customers must enroll in OnStar Vehicle Diagnostics to be eligible for the GMAC Insurance Low Mileage Discount. Eligible OnStar subscribers can enroll in the opt-in service at no additional cost by simply pressing their blue OnStar button and asking to be enrolled, or by visiting the OnStar Web site ( www.onstar.com ). OnStar Vehicle Diagnostics service can be activated on most 2004 model-year or newer OnStar-equipped GM vehicles that have GM's Oil-Life System. The only information shared with GMAC Insurance for the Low-Mileage Discount is miles driven on a monthly basis.
OnStar will be standard on most GM retail cars, trucks and SUVs in the United States and Canada by the end of 2007. Currently, the GMAC Insurance Low-Mileage Discount is available in the following 34 states:
* Alabama
* Arizona
* Colorado
* Florida
* Idaho
* Illinois
* Indiana
* Kentucky
* Louisiana
* Maryland
* Michigan
* Minnesota
* Mississippi
* Missouri
* Montana
* Nebraska
* Nevada
* New Hampshire
* New Mexico
* New York
* Ohio
* Oklahoma
* Oregon
* Pennsylvania
* Rhode Island
* South Carolina
* South Dakota
* Tennessee
* Texas
* Utah
* Virginia
* Washington
* West Virginia
* Wisconsin
GMAC Insurance plans to extend availability to additional states in the next year.
Doing the Math: Specific Savings
Following is a breakdown of the discounts offered in the GMAC Insurance Low-Mileage Discount program, including the OnStar Subscriber Discount:
Annual Mileage Average Total Savings*
0-2,500 54%
2,501-5,000 39%
5,001-7,500 34%
7,501-10,000 26%
10,001-12,500 18%
12,501-15,000 13%
* Average total savings include the Low-Mileage Discount and the OnStar Anti-Theft Discount combined. The LMD is full-policy savings at the vehicle level. The OnStar Subscriber Discount provides savings off of the Bodily Injury, Comprehensive and Property Damage coverages of the vehicle policy. Drivers who average fewer than 5,000 miles per year may receive even more than 35% in savings.
In addition to the Low-Mileage Discount program, GMAC Insurance offers even more discounts on auto insurance premiums for current GMAC Auto Finance and GMAC Mortgage customers; GM Cardmembers; GM/GMAC employees and retirees; active OnStar subscribers; customers with multiple GM vehicles; and customers who qualify as safe drivers. For more information on the GMAC Insurance Low-Mileage Discount Program and additional discounts for GM and GMAC Insurance products, and to find a local independent agent, call 1-800-GMAC-123, or visit www.gmacinsurance.com to receive a quote.
The GMAC Insurance Group is one of the largest automobile insurers in the United States and is a wholly owned subsidiary of GMAC Financial Services. GMAC Insurance Personal Lines offers a variety of property and casualty products, including personal auto, RV, motorcycle, boat and commercial auto insurance. With a nationwide network of claims professionals, local independent agents and a 24-hour, toll-free claims hotline available 365 days a year, GMAC Insurance provides superior claims service for its customers.
2008 Jeep Grand Cherokee Debut Rumbles Across Europe
Making its European debut, the new Jeep Grand Cherokee was shown in France to media and brand enthusiasts during the 2007 Euro Camp Jeep event.
New Exterior and Interior Design
With its upright and substantial posture, the Jeep Grand Cherokee's design offers an athletic and contemporary appearance. The grille has been lengthened, and the headlamps are more circular for a more dominant and expressive front view. New HID headlamps, optional on Limited and standard on Overland, includes an internal optic lens for the park/turn function. Fog lamps also have also been repositioned for enhanced performance. Off-road enthusiasts will be pleased with the new two-piece front fascia, allowing for the entire lower piece to be removed before hitting the off-road trails.
On the inside, the vehicle's two-tone instrument panel features a new level of refinement with bright accents, a soft-touch surface and updated styling. A new tilt and telescoping steering column is standard, with a new steering wheel that includes bright accent bezels, which house the electronic vehicle information centre's switches. The Limited model's steering wheel adds two-tone leather and bright chrome accent rings, and the Overland features a real wood rim for added luxury. Also new is the updated line of instrument clusters that feature new brighter LED illumination, with the Limited and Overland models receiving a modern and elegant treatment where, when the vehicle is started, the dark-tinted lens fades to reveal chrome-ringed black gauges that are surrounded by a bright silver accent field. The new floor console has improved cup holders and the Limited and Overland models get a new leather-wrapped and chrome-accented parking brake handle. The door panels have new armrests for improved ergonomics and comfort. New for the Overland model are the new dark slate gray perforated leather seats that feature accent piping for an even more upscale look.
The new Grand Cherokee will arrive in dealerships outside of North America in the second half of 2007.
The Grand Cherokee offers an extremely advanced and flexible Hill Descent Control for greatly improved control in off-road situations. A new Hill Start Assist holds the vehicle automatically on steep hills for a smooth and controlled drive away from a stop. Trailer Sway Control minimizes trailer sway during towing. The new Grand Cherokee also features a new 4.7-litre V-8 engine that delivers an improvement in fuel economy of more than 5 per cent, with a 30 per cent increase in horsepower and a 10 per cent increase in torque. The interior and exterior design is restyled and the new Grand Cherokee also features a host of innovative, premium amenities.
"With the addition of a Jeep-engineered Hill Descent Control, a choice of five engines, two four-wheel-drive systems and more premium amenities than ever before, the new Jeep Grand Cherokee adds more capability and refinement to the benchmark full-size SUV that created the luxury SUV market when it debuted in 1992," said Thomas Hausch, Vice President, International Sales -- Chrysler Group.
Jeep-engineered Hill Descent Control
Jeep engineering designed the Hill Descent Control system to mimic the downhill control and flexibility afforded by the ultra-low gearing found in a Jeep Wrangler Rubicon with its 4:1 ratio transfer case and 6-speed manual transmission. This gearing provides for six speeds of controlled hill descent.
Operational in the 4WD Low position, Hill Descent Control provides downhill assistance at a controlled rate of speed with more precision and smoother operation than simply using the brakes. By means of electronic brake control, Hill Descent Control supplements the gear reduction and engine braking that a traditional mechanical low-range transfer case provides. Unlike most of its competitors, the new Grand Cherokee with Hill Descent Control offers extremely smooth transitions between speeds and allows the driver to use the throttle and brakes without turning the system off, with a smooth and controlled return to the preset speed after the driver releases the throttle or brakes.
In the Grand Cherokee, once Hill Descent Control is activated with a push of a button in the centre stack, preset speeds can be selected by using the transmission shifter. For ease of operation, after the Hill Descent Control button is engaged, Grand Cherokee's Hill Descent Control is activated and deactivated automatically, as the system senses changes in topography. The system works whether the vehicle is driven in forward or reverse.
The preset maximum speeds are:
1st gear: 1.6 km/h
2nd gear: 4 km/h
3rd gear: 6 km/h
4th gear: 9 km/h
5th gear or D: 12 km/h
Reverse (R): 1.6 km/h
Neutral (N): 4 km/h
Hill Descent Control was engineered to provide the smoothest transitions possible, even from a complete stop on extremely steep and slippery surfaces.
Hill Descent Control is standard on all Grand Cherokee models except SRT8.
Hill Start Assist
The Hill Start Assist system provides the driver time to transition from brake to throttle to achieve a smooth launch on a grade. The system will hold brake pressure for two seconds upon the driver's release of the brake pedal. The Hill Start Assist system decreases wheel pressure in response to increasing throttle to provide a smooth launch. This system is extremely helpful when driving in urban as well as off-road areas with steep hills.
Hill Start Assist is standard on all Jeep Grand Cherokee models except SRT8.
Trailer Sway Control
Trailer Sway Control minimizes trailer sway (an alternating yaw of the vehicle) and improves handling in adverse towing conditions caused by crosswinds and traffic, provides trailer stability and increases towing safety.
Sensors monitor the vehicle's movement relative to the driver's intended path. The vehicle yaw sensor recognizes sway. Once the system determines the sway is increasing and is not a result of the driver's steering input, Trailer Sway Control applies brake pressure on one front wheel to counteract the yaw induced by the trailer and smoothly applies brake pressure to the other wheels to slow the vehicle. As the trailer sways to the other side of the vehicle, Trailer Sway Control will increase pressure to the opposite side of the vehicle. The technology will continue to apply alternating brake pressure and reduce engine torque until the trailer sway is under control.
Trailer Sway Control is included with the optional Trailer Tow Group.
Five Engine Offerings
The 2008 Jeep Grand Cherokee comes with a choice of five engine offerings:
* Award-winning 3.0-litre common rail diesel V-6 engine -- Available on Jeep Grand Cherokee Limited and Overland
* 3.7-litre V-6 petrol engine -- Standard on Jeep Grand Cherokee Laredo
* New 4.7-litre V-8 petrol engine -- Standard on Jeep Grand Cherokee Limited
* 5.7-litre V-8 HEMI petrol engine -- Available on Jeep Grand Cherokee Limited, standard on Overland
* 6.1-litre HEMI V-8 petrol engine -- Standard on Jeep Grand Cherokee SRT8
The new 4.7-litre V-8 petrol engine is more than 5 per cent better regarding fuel economy while increasing power and torque compared to the previous 4.7-litre engine. The new engine incorporates two spark plugs per cylinder (the only Chrysler Group engine to do so, other than the 5.7-litre HEMI), increased compression ratio, improved cylinder-head port flow and revised combustion chamber, valvetrain and camshaft profile. The result is 227 kW , a 30 per cent increase, and 453 Nm of torque, a 10 per cent increase over the previous 4.7-litre V-8 engine.
The new 4.7-litre V-8 also offers refinements, primarily from significant revisions to the induction system and reduced accessory-drive noise through lower accessory drive speed. Engine smoothness at idle is enhanced with a new camshaft design, two spark plugs per cylinder and a revised valve-lash adjuster system.
Innovative Premium Amenities
The new Jeep Grand Cherokee includes a variety of premium amenities that are new for 2008, including the new MyGIG Multimedia Infotainment System that has a built-in navigation, audio, entertainment and communication system. MyGIG enables customers to use touch-screen or voice commands to control all of the features, and includes a 20-gigabyte hard drive where music and photos can be stored. There's space reserved on the hard drive for approximately 1,600 songs; that's over 100 hours of music. There also is a voice-memo recorder feature.
Also new on the Jeep Grand Cherokee are High-intensity Discharge (HID) auto-levelling headlamps. HID headlamps provide approximately three times the light output of conventional reflector lamps for improved night-time illumination. The auto-levelling feature automatically adjusts the headlamps to the vehicle pitch depending on the load and number of passengers in the vehicle. This feature also benefits oncoming traffic as the system prevents drivers from being distracted by glare from the headlamps. The auto-levelling feature is only available with HID headlamps.
ParkView Rear Back-up Camera (with or without navigation), ParkSense Rear Back-up System, rain-sensing wipers, memory seats and mirrors, iPod connectivity and 18-inch aluminum wheels also are part of the vehicle's available features.
With its upright and substantial posture, the Jeep Grand Cherokee's design offers an athletic and contemporary appearance. The grille has been lengthened, and the headlamps are more circular for a more dominant and expressive front view. New HID headlamps, optional on Limited and standard on Overland, includes an internal optic lens for the park/turn function. Fog lamps also have also been repositioned for enhanced performance. Off-road enthusiasts will be pleased with the new two-piece front fascia, allowing for the entire lower piece to be removed before hitting the off-road trails.
On the inside, the vehicle's two-tone instrument panel features a new level of refinement with bright accents, a soft-touch surface and updated styling. A new tilt and telescoping steering column is standard, with a new steering wheel that includes bright accent bezels, which house the electronic vehicle information centre's switches. The Limited model's steering wheel adds two-tone leather and bright chrome accent rings, and the Overland features a real wood rim for added luxury. Also new is the updated line of instrument clusters that feature new brighter LED illumination, with the Limited and Overland models receiving a modern and elegant treatment where, when the vehicle is started, the dark-tinted lens fades to reveal chrome-ringed black gauges that are surrounded by a bright silver accent field. The new floor console has improved cup holders and the Limited and Overland models get a new leather-wrapped and chrome-accented parking brake handle. The door panels have new armrests for improved ergonomics and comfort. New for the Overland model are the new dark slate gray perforated leather seats that feature accent piping for an even more upscale look.
The new Grand Cherokee will arrive in dealerships outside of North America in the second half of 2007.
Cheap Chinese Cars For U.S: An Improbable Wish?
We all know by now that the Chinese are coming to the American automobile market.
It is Chrysler who is helping the Chinese enter the U.S. market, making a historical agreement to sell inexpensive cars built by Chinese automaker Chery in the Central and South American markets in 2008 before heading northward to sell in the U.S. in 2009.
Now the reputation of Chinese made products have taken a major hit in recent weeks. BusinessWeek reminds us that we've had the pet food controversy, the tire fiasco, the tainted fish problem, and substandard products made by Chinese companies being sold in China. The bad publicity is sure to impact on sales of Chinese cars in the U.S. and that impact will be negative rather than positive.
Still, China continues to be the darling of the automotive world. Besides Chrysler, other western auto makers such as General Motors and Volkswagen are making deals with other Chinese auto makers.
So why are the American auto makers helping to push Chinese cars on to the American market? The simple answer is that they can't construct cars and sell them for $13,000 or less. The arrangements with the Chinese auto makers makes it possible for them to offer the more inexpensive cars.
Our take? So, is the rush by the American car companies to partner with the Chinese car companies going to be profitable for everyone concerned? Just like everything else, we have to let the whole thing play out.
Honda expands global production
 Honda is enjoying strong sales growth around the world |
Honda plans to build new plants in Thailand, Vietnam, India and Argentina, as well as a research centre in China.
Honda has forecast its global car sales this year will exceed 2006's record 3.55 million units, as it continues to increase output in North America.
Japanese carmakers have also been expanding overseas production plants as costs, including wages, are lower.
'Low-priced car'
On Wednesday Honda unveiled plans for a $246m research and development centre in China.
Honda will design a new Guangzhou brand vehicle with its joint venture partner specifically for the Chinese market to go on sale from 2010.
"It will be a low-priced car unlike anything Honda would sell on its own," said Honda president Takeo Fukui.
Honda also revealed it had begun construction of a second car plant - due to start up in late 2008 - in Thailand at a cost of about $200m.
It would eventually double Honda's production in the country to 240,000 vehicles a year.
The carmaker has also said it will plough in an investment of $65m to raise its production of motorbikes in Vietnam by 50% to 1.5 million units from the second half of 2008.
'Weak domestic demand'
On Wednesday it confirmed a $230m investment for a second car plant in India, which will make about 60,000 vehicles a year from late 2009.
And in Argentina Honda plans to spend $100m on a new carmaking production plant.
It is set to start up in 2009 with an annual production capacity of 300,000 compact vehicles to meet growing demand in South America.
Honda's earnings slipped slightly in the last financial year to March amid tough competition in its home market and higher raw material costs.
"Weak domestic demand is a very large issue," Mr Fukui said. "Our domestic sales are in a severe situation. Our export business is our main driving force."
Honda is also expanding in North America as Asian carmakers step up the pressure on US rivals such as General Motors and Ford.Price Tag On World's Oldest, and Still Working, Automobile
A steam-powered four seater is called the La Marquise. Originally built by the French manufacturers De Dion, Bouton et Trepardoux in 1884, it was introduced a year Gottlieb Daimler and Karl Benz, who are considered the fathers of the modern car, built their first experimental gas-powered car.
The car will be auctioned in Pebble Beach, California on August 19. Speculation has been it could capture up to 1 million pounds, or a little over $2 million.
Ford Seeking a Future by Going Backward
DEARBORN, Mich., July 16 — It was a big victory at the time.
When Bill Ford Jr. beat out Fiat and Volkswagen eight years ago to buy Volvo, he declared the $6.5 billion acquisition a “meaningful step” to fulfilling the Ford Motor Company’s “21st-century vision” of becoming the world’s leading automaker.
To cosset his new prize — along with Ford’s other luxury foreign automakers: Jaguar, Aston Martin and Land Rover — he built a sprawling headquarters in California two years later, with separate lobbies designed to reflect each of their personalities (Volvo’s was blue with blond Scandinavian wood.)
Mr. Ford and Ford’s chief executive then, Jacques A. Nasser, promised that the new Premier Automotive Group, with Volvo as its centerpiece, would collectively sell a million cars a year by the middle of this decade, and generate at least a billion dollars a year in profits.
But those plans have not worked out. And now, with its recent decision to entertain bids for Volvo, Ford appears to be shifting into reverse on its strategy, dismantling the collection of luxury auto companies, including the Land Rover division it bought in 2000, that it once assembled with such confidence.
Alan R. Mulally, who was named Ford’s chief executive almost a year ago, is pushing the company to climb out of $12.6 billion in losses last year by returning to its roots as a mass-market manufacturer, and the fabled foreign brands are no longer considered pivotal to its turnaround strategy.
Ford has company in its retreat. Plans by Chrysler and General Motors during the 1990s to also use foreign brands to expand their global reach have been largely abandoned.
General Motors has already sold off stakes in foreign companies like Fiat and Fuji Heavy Industries that represented its own global foray, while DaimlerChrysler itself, the most ambitious attempt to dominate the international stage, will soon be broken apart.
The Detroit automakers are now refocusing on their core brands, a strategy they will deploy in hopes of regaining market share they are losing to the likes of Toyota and Honda, which have never strayed from their strategy of investing billions in their basic car business.
“What has really evolved here is that the scenario has changed so dramatically,” said David Cole, chairman of the Center for Automotive Research. “Because of that change, you’re looking at things in a far more pragmatic way, with the thought that if you screw up in labor negotiations, or you screw up in product development, the company may go down.”
In retrospect, Ford’s experience with the Premier group, known as P.A.G., is proof that a car company cannot buy its way to a dominant position in the market, said David E. Davis, founder of Winding Road, an online car magazine, and a longtime observer of the auto industry.
Ford saw its purchases of Volvo and the other brands “as a costly, but not overwhelmingly costly, way to project themselves into parts of the market where they had never been able to move in with their own resources," Mr. Davis said. “It turned out that all they bought was a huge amount of trouble."
Indeed, the group’s collective sales last year were just over 700,000, or one-third less than the sales goal Ford set for P.A.G. when the group was founded in 1999.
Moreover, the group has lost money in four of the past five years, versus the $1 billion a year in profits that Ford had proclaimed the brands would contribute. (The group, however, did earn a pretax profit of $402 million in the first quarter.)
Ford’s purchase of Volvo occurred at a time when the American auto industry had reason to feel bullish.
It came only 28 days after Mr. Ford and Mr. Nasser took charge of the company, and was part of a decade-long buying spree that enveloped nearly every global auto company. Daimler-Benz and the Chrysler Corporation linked up in November 1998 to form DaimlerChrysler, while the French automaker Renault and the Japanese automaker Nissan announced their alliance only a few months after Ford bought Volvo.
The deal making culminated in 2000 when G.M. took a stake in Fiat, a deal that came together virtually over a weekend, but which cost G.M. $2 billion to unwind in 2005.
Jaguar, which Ford bought for $2.5 billion in 1990 in another bidding war, had trouble making the leap to the contemporary luxury market, which grew increasingly crowded with new offerings from Lexus, Mercedes-Benz and BMW.
Purists complained that Ford, which used common underpinnings for Jaguar and Lincoln models, made its cars look more like Ford Tauruses than English classics.
Ford also poured management time and billions of dollars into fixing Jaguar, claiming as recently as this year’s Detroit auto show that the brand would remain in the company fold, when many industry analysts were saying that it was well past time for Ford to cut its losses.
“The Ford guys just threw restraint to the wind,” Mr. Davis said, “and spent way more money than Jaguar would ever recoup for them.”
Volvo has been a different story. It has generated profits of $800 million to $1 billion a year, provided Ford with expertise in safety development, and ranks as one of Ford’s best-selling brands.
But even it has failed to live up to the promises that Mr. Ford and others made. Volvo sold 430,000 vehicles worldwide last year, versus the 650,000 target that Ford had predicted. And its profits have not been enough to offset losses elsewhere in P.A.G.One problem for Volvo has been that the impact of its primary selling point has been diluted as other companies have made safety advances with their own cars.
Honda, for example, has declared that it wants its cars to be known as the industry’s safest, at thousands of dollars less than Volvo models.
Indeed, analysts say that if Ford were in better financial shape, it might be able to make a case for keeping Volvo — leaving at least one resident in the 300,000-square-foot P.A.G. headquarters in Orange County, with its coffee bar and roof planted with more than 30 types of vegetation.
Mr. Cole of the Center for Automotive Research said of Ford’s decision to break up the Premier group: “They’re faced with no choice but to do that. You could have phenomenal operating performance at a Volvo, but it’s not going to offset a catastrophe at the home Ford Motor Company.”
“You can think of Volvo as a pretty important accessory and Aston Martin, Land Rover and Jaguar as fringe sort of things,” but none are more important than the main auto company, he added. With Ford auto sales dropping in the United States, “I think they’re looking at contingencies because revenues are falling short of forecasts,” Mr. Cole said.
Jonathan Steinmetz, an auto industry analyst with Morgan Stanley, said in a research report: “Ford does not have the resources, from both a financial or a managerial perspective, to keep plowing time and money into all its brands,"
He noted that Ford had mortgaged virtually all its assets, including factories, office buildings, and even the trademark on its blue oval logo, to raise $23 billion in cash. So it has good use for the money it can raise by selling the Premier group brands.
“Every bit will help,” Mr. Steinmetz said.
Jaguar, he said, has been “a large cash drain.” Land Rover, while better off than Jaguar, is too small to help the company solve its problems, Mr. Steinmetz said.
With This Tool, You Tell a Mechanic What’s Wrong
TWO of the most alarming words a car owner can face are "check engine." That warning light on the dashboard could mean the car needs expensive engine work or simply that the gas cap is loose.
For most drivers, there’s no way to find out without taking the car to a mechanic. The primary reason is that vehicles are largely controlled by onboard computers, which are generally inaccessible without the proper equipment and software. So when that check engine light goes on, a mechanic has to link to the car’s computer to obtain the codes that detail the problem and then translate those codes, which are indecipherable to most mere mortals. You must trust his translation and hope that the loose-gas-cap code wasn’t misinterpreted as the get-out-your-checkbook code.
But there are a growing number of products and services that are helping to take that helplessness out of car repair by doing the translation for you. A Connecticut company has begun to place drive-up kiosks in some Southern states that offer a do-it-yourself computerized car check. With this system, you can arrive at the mechanic with some idea of what’s wrong with your car, even if you don’t know how to fix it.
Since 1996, all vehicles have been equipped with a standard plug, called the on-board diagnostics, or O.B.D.-II port, to access a car’s emissions codes. The port is just under the dashboard on the driver’s side of most vehicles. Furthermore, as the sophistication of safety, engine, transmission and even entertainment systems has grown, the O.B.D. port has increasingly been used to tap into these onboard computers as well.
Professional mechanics can spend about $6,000 on diagnostic tools and pay monthly subscription fees for up-to-date codes. In most cases, consumers can obtain the same information online by subscribing to services provided by individual automakers, but this can be expensive. Chrysler, for example, charges $20 a day, or $200 a month, for such information. And you still need a device to pull the codes from your car’s computer.
Some service centers, like Pep Boys, charge $85 or more to run a computer diagnostic check, although your local mechanic may do it without charge. However, the kiosks that are arriving at some service centers, gas stations and auto parts stores may obviate the need for fees or for favors from a mechanic.
Environmental Systems Products of East Granby, Conn., has designed a system, called SAM (for Smart Auto Management), that looks like a gas pump. Drivers pull up to a SAM kiosk and tap its touch screen to watch an instructional video. SAM walks customers through the process, which involves paying a $15 fee with a credit card, scanning the car’s vehicle identification number, or V.I.N., bar code (usually found on the door frame) using a scanner and connecting a lunchbox-size wireless diagnostics reader to the vehicle’s O.B.D. port.
The whole process takes less than 10 minutes. At the end, a motorist receives a lengthy printout listing any detected diagnostic codes and their meanings. For example, in one test report the SAM printout explained that a P0125 code meant that the engine coolant sensor was unable to record the correct temperature, which could result in poor fuel economy and engine performance. It also indicated the seriousness of the problem (not very) and possible fixes. An additional page noted if any recalls or technical service bulletins, or T.S.B.’s, had been issued by the automaker. To get a detailed listing of T.S.B.’s and recalls, consumers have to register at the SAM Web site, iamsam.com, and pay $20 for an annual subscription to track up to seven vehicles.
The SAM system isn’t perfect. My 2000 Dodge Durango, for example, had a new transmission control module that wasn’t properly connected to the truck’s main computer. Consequently, it couldn’t communicate with SAM.
“But it’s not just for people who think there’s something wrong with their car,” said Art Jacobsen, vice president for product development at SAM. “It can tell you if there’s something wrong with a used car you’re about to buy, like if an air bag is missing.”
The company opened its first 200 SAM kiosks mainly in North Carolina and Atlanta and hopes to expand nationally later this year, part of a trend to give consumers better access to their car’s computers.
Already available are inexpensive hand-held devices like the $90 CarMD, which plug into the O.B.D. port on most vehicles. Should your vehicle have problems, the CarMD will display the diagnostic codes from the car’s computer on its small screen. To translate the codes, owners install CarMD’s Windows-based software on a PC and plug the device into the computer’s U.S.B. port. The device then connects to CarMD’s site to explain the codes. The site identifies the specific codes for a vehicle based on the V.I.N. typed in.
In my case, the CarMD report indicated that two engine sensors might be malfunctioning. However, the report was still littered with inscrutable abbreviations like E.T.C. and I.A.T.
Inilex, which makes a competing product to the LoJack antitheft device called the Kepler Advantage, is planning to add basic car diagnostic information to its location tracking service. The device, which costs $1,100, uses a global positioning system, or G.P.S., to determine a car’s location and then to inform owners via an e-mail message when the vehicle has traveled outside an approved area. This summer, the company is hoping to introduce a $14.99-a-month service that will not only track a vehicle’s location, but also monitor basic diagnostic information, like coolant levels and the condition of the transmission.
Although automakers charge for access to their codes, by law translations of the emissions control codes have to be available to all mechanics to meet federal requirements and state inspections. Furthermore, there is legislation pending in three states — Massachusetts, New Jersey and New York — that seeks to force automakers to make all of their computer diagnostic and control codes available to independent repair shops and installers. Still, now that consumers are getting do-it-yourself access to most codes, there’s no doubt that diagnostic services like SAM are a step in the right direction.
And if one is available in your area, even if you’re not buying a car or trying to ignore a check engine light, a clean diagnostic report could give you peace of mind before you load up the family sedan for that long summer vacation drive.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
Every year the largest glacier in North America, the 120-mile long Bering Glacier, sheds seven times the water volume of Lake St. Clair near Detroit. It’s melting at a rate of 30 cubic kilometers per year, according to the Michigan Tech Research Institute. Many scientists believe that accelerated glacier melting is only one part of an alarming global-warming trend, part of which can be traced to the 140 million automobiles we drive 1.7 trillion miles yearly.
There are simple techniques every motorist can apply to reduce a vehicle’s negative impact on the environment and save money on fuel. Here we highlight 10 things any driver can start doing immediately with virtually no inconvenience to daily routine. They include actions as simple as clearing out the trunk to reduce weight, making sure tires are properly inflated and turning off the engine when the car is parked.
Automobiles are serious polluters. Each gallon of gasoline consumed generates about 20 pounds of carbon dioxide (CO2), according to the EPA (click here to find out how they calculated this). The typical passenger car delivers six tons of CO2 to the atmosphere per year.
The CO2 that motor vehicles emit through their tailpipes gets trapped in the atmosphere for periods ranging from decades to centuries. Once in the atmosphere, the CO2 absorbs heat from the sun and radiates it back to Earth. Over years, this has caused the temperature of the oceans and the air to rise and has contributed to the phenomenon called global warming, scientists say. Gases in the atmosphere, like CO2, that contribute to global warming are called greenhouse gases. Others include water vapor, methane and ozone — some of which can be naturally occurring.
Many of the tips in this article help mitigate CO2 emissions by reducing fuel consumption; others address proper disposal of hazardous materials associated with vehicles.1. The Right Tool for the Task
2. Route and Speed
3. Tires
4. Junk in the Trunk
5. Aerodynamics
6. Idling
7. Fuel
8. Air-Conditioning
9. Oil Changes
10. Disposing of Waste
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
10. Disposing of Waste
Every consumer should ponder the amount of solid waste generated by driving. Consider just one car component: the tire. The U.S. generates 290 million scrap tires per year, according to the EPA. Fortunately, the vast majority of those are recycled or reused in some capacity. But 27 million of those, 9.3 percent, do go to landfills.
To put a dent in the pounds and gallons of auto-related waste, all it takes is shrewd recycling. Tire retailers and local recycling centers will usually take old or unwanted tires.
Engine fluids are just as hazardous to the environment as tires. Improperly disposed of motor oil from one oil change can contaminate 1 million gallons of fresh water, a year’s supply for 50 people, according to the EPA.
If you’re a do-it-yourselfer, deliver your drained oil to a local recycler. Most quick-oil-change places and some auto-parts stores sell the used oil they collect so your contribution fattens their bottom line. You can also contact local recycling centers or the garbage collector.
Used oil filters should be handled as hazardous waste and not simply dispatched with the household trash. Auto parts stores, repair shops and oil-change outlets may accept used oil filters. Here’s a website that lists locations by zip code that accept used motor oil and filters: http://www.earth911.org/master.asp?s=ls&serviceid=1
Batteries should also be disposed of with care. The lead in them has value and the chemicals in them are toxic. Try depositing your discards at auto-parts stores or any high-volume battery shop. They’re usually tapped into the recycling stream because it makes economic — not to mention environmental — sense to their business.
Used antifreeze is a serious threat to pets, so it should not be left standing in open containers. Consult your local landfill or garbage collector for recommendations on how to properly recycle this material.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
9. Oil Changes
Convenience shops that change your oil in less time than it takes to enjoy a latte want to renew your acquaintance every 3,000 miles. It’s good for them and beneficial to your engine because the moisture and debris that has infiltrated your lubrication system is discarded when the oil and filter are replaced. Unfortunately, there are two flaws in this scenario: the amount of waste destined for landfill deposit and the amount of natural resources consumed to manufacture the refill oil. We’re talking big numbers here: The US Energy Information Administration reports that more than 100,000 barrels of lubricating oil are drained per day. Fortunately, most of that precious resource is now recycled.
Convenience shops that change your oil in less time than it takes to enjoy a latte want to renew your acquaintance every 3,000 miles. It’s good for them and beneficial to your engine because the moisture and debris that has infiltrated your lubrication system is discarded when the oil and filter are replaced. Unfortunately, there are two flaws in this scenario: the amount of waste destined for landfill deposit and the amount of natural resources consumed to manufacture the refill oil. We’re talking big numbers here: The US Energy Information Administration reports that more than 100,000 barrels of lubricating oil are drained per day. Fortunately, most of that precious resource is now recycled.
Following your vehicle manufacturer’s recommendations for oil-change intervals is a smart and conscientious strategy. Monitors included in many new cars keep tabs for you and issue a warning when it’s time to change the oil so you don’t even have to consult the owner’s manual. With modern vehicles, it’s possible to go more than 10,000 miles between oil changes. But bear in mind that short tips and starting the car in cold weather have adverse effects on oil life.
If you’re worried about offending your engine with such long intervals, spend a little extra on synthetic oil. The benefits are greatly enhanced high- and low-temperature protection and, in some cases, reduced friction, which can improve mileage a smidgen. Just make sure you don’t deviate from the manufacturer’s viscosity recommendation.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
8. Air-Conditioning
Consumer Reports found that running the air conditioner reduced mileage by 1 mpg in its tests involving the Mercury Moutaineer and Toyota Camry. There was no measurable loss of mileage with the windows open.
So keeping the windows down and the A/C off as much as possible will help conserve fuel and reduce CO2. Because A/C use influences fuel consumption, the EPA is altering its 2008 model year test procedures to include this loss of efficiency in its mileage reports.
Consumer Reports found that running the air conditioner reduced mileage by 1 mpg in its tests involving the Mercury Moutaineer and Toyota Camry. There was no measurable loss of mileage with the windows open.
So keeping the windows down and the A/C off as much as possible will help conserve fuel and reduce CO2. Because A/C use influences fuel consumption, the EPA is altering its 2008 model year test procedures to include this loss of efficiency in its mileage reports.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
7. Fuel
Premium Gasoline:
Using higher-octane gasoline than recommended by your vehicle’s manufacturer improves neither performance nor mileage, according to the EPA. Using the lowest suitable grade of gas minimizes the amount of crude oil necessary to fill your tank — the higher the fuel grade, the more crude oil required to make it — while also saving you money.
Diesel:
Mercedes-Benz's E320 Bluetec with a diesel engine provides roughly the same performance as its E350 gasoline counterpart; however, the diesel delivers an extra 7 mpg in city driving and 9 mpg better mileage on the highway, according to EPA tests. That 35 percent efficiency gain is typical of diesel versus gasoline engines. The problem is that diesel engines pollute more than gasoline engines. There will be more diesel vehicles available in coming years as the emissions controls required to counteract the extra pollution are implemented. There are cost variables as well: The diesel E-Class costs $1,000 more than the gasoline E-Class; plus the price of diesel fuel is constantly in flux and difficult to predict.
Ethanol:
A number of new vehicles can run on E85, a blend of 85 percent ethyl alcohol and 15 percent gasoline. These so-called “flex-fuel” vehicles capable of filling up with 100 percent ethanol, 100 percent gasoline or any mix of the two are part of a strategy to reduce imported crude oil. E85 currently costs several cents per gallon less than gasoline. The lower cost is offset by the fact that it takes an extra half gallon of E85 to match the energy content of one gallon of gasoline.
In comparing the two fuels, Car and Driver found slightly improved acceleration with E85 (attributed to its octane advantage over gasoline), but 30 percent lower mileage.
According to the Department of Energy, E85 reduces some emissions while raising others. Another issue is energy savings. Growing corn to produce the ethanol depends on fuel-burning tractors in the field and delivery trucks on the highway. The bottom line is that, at least in the near future, driving on E85 will not put much of a dent in the 9.6 million barrels of crude oil we’re importing every day.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
6. Idling
Engines idling in traffic jams wasted an estimated 2.3 billion gallons of fuel in 2003, according to the Texas Transportation Institute’s 2005 Urban Mobility Study. Using the EPA's estimate of 1 gallon of gasoline producing 20 pounds of CO2, that would mean 46 billion pounds of CO2 needlessly went into the atmosphere. To address this concern, many carmakers are seeking to equip their vehicles with automatic shutdown and restart systems. Most hybrids already take advantage of this technology.
Engines idling in traffic jams wasted an estimated 2.3 billion gallons of fuel in 2003, according to the Texas Transportation Institute’s 2005 Urban Mobility Study. Using the EPA's estimate of 1 gallon of gasoline producing 20 pounds of CO2, that would mean 46 billion pounds of CO2 needlessly went into the atmosphere. To address this concern, many carmakers are seeking to equip their vehicles with automatic shutdown and restart systems. Most hybrids already take advantage of this technology.
Drivers of non-hybrid vehicles will still be forced to idle their engines in traffic jams, but they can help by turning off the engine when waiting at the curb to pick up the kids or during other temporary stops off the roadway.
It’s also a good idea to skip those remote cold-start devices. While it’s great to get into a car that’s already cozy on a frigid day, the warm-up idling wastes fuel and dumps needless CO2 into the atmosphere.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
5. Aerodynamics
Car designers tune their shapes in wind tunnels to allow their vehicles to slip through the air with the greatest of ease. That helps gas mileage. To check the effects of screwing up their efforts, Car and Driver tested mileage with a large, square-cornered rooftop carrier in place, noting a net loss of 6 mpg. Contemporary ski racks and gear boxes are more streamlined and carefully contoured to minimize this penalty. That said, it’s a good idea to remove roof racks that aren’t being used and only install them when you need them.
Car designers tune their shapes in wind tunnels to allow their vehicles to slip through the air with the greatest of ease. That helps gas mileage. To check the effects of screwing up their efforts, Car and Driver tested mileage with a large, square-cornered rooftop carrier in place, noting a net loss of 6 mpg. Contemporary ski racks and gear boxes are more streamlined and carefully contoured to minimize this penalty. That said, it’s a good idea to remove roof racks that aren’t being used and only install them when you need them.
It’s also a good idea to repair flapping fenders, dragging mufflers and damaged trim jutting into the air stream. Over thousands of miles, seemingly small effects add up to gallons of wasted fuel, especially at highway speeds. To see how a significant deterioration of the aerodynamic drag coefficient impacts mileage, Car and Driver propped open the front of the hood on a test car one foot. That sapped mileage by 7 percent.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
4. Junk in the Trunk
Hauling around paraphernalia — books, training weights, broken car parts, sand for winter traction — is wasteful because accelerating that ballast consumes fuel. The Department of Energy estimated that excess weight can impact mileage by a negative 1 or 2 percent.
When Car and Driver editors piled 775 pounds of ballast into a 2,000-pound small car, mileage fell by 1.5 mpg. The U.S. Department of Energy says 100 pounds of cargo is enough to adversely affect gas mileage.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
3. Tires
Tests that author Don Sherman helped devise and conduct at Car and Driver magazine found that dropping tire pressure from the manufacturers’ recommended 30 psi to 20 psi cost half a mile per gallon on a 37.5 mpg baseline (achieved by the car cruising at 60 mph with no modifications). When over-inflation by the same amount was evaluated, there was no discernible benefit.
Tests that Consumer Reports conducted on a Mercury Mountaineer and a Toyota Camry show that dropping only 2 psi from the recommended inflation pressure increases fuel consumption by 1 percent. Reducing inflation by 10 psi from the manufacturer's recommendation dropped the Camry's mileage by 1 mpg and the Mountaineer's "by a much smaller margin."
Tires are expensive to replace; proper inflation is the key to maximum tread life and reducing the likelihood of a blowout. Because tires tend to lose a couple of psi per month in cold weather, keeping a pressure gauge in the glovebox and checking pressure periodically is essential. Follow the carmaker’s inflation recommendations printed on a door jam placard, rather than figures printed on the tire sidewall. Also, the size and style of tire influences your mileage. Low-profile and wide tires tend to take a bite out of efficiency, as do winter tires. Sidewalls marked with energy symbols indicate that the tire was engineered with lower-than-normal rolling resistance.
Tests that author Don Sherman helped devise and conduct at Car and Driver magazine found that dropping tire pressure from the manufacturers’ recommended 30 psi to 20 psi cost half a mile per gallon on a 37.5 mpg baseline (achieved by the car cruising at 60 mph with no modifications). When over-inflation by the same amount was evaluated, there was no discernible benefit.
Tests that Consumer Reports conducted on a Mercury Mountaineer and a Toyota Camry show that dropping only 2 psi from the recommended inflation pressure increases fuel consumption by 1 percent. Reducing inflation by 10 psi from the manufacturer's recommendation dropped the Camry's mileage by 1 mpg and the Mountaineer's "by a much smaller margin."
Tires are expensive to replace; proper inflation is the key to maximum tread life and reducing the likelihood of a blowout. Because tires tend to lose a couple of psi per month in cold weather, keeping a pressure gauge in the glovebox and checking pressure periodically is essential. Follow the carmaker’s inflation recommendations printed on a door jam placard, rather than figures printed on the tire sidewall. Also, the size and style of tire influences your mileage. Low-profile and wide tires tend to take a bite out of efficiency, as do winter tires. Sidewalls marked with energy symbols indicate that the tire was engineered with lower-than-normal rolling resistance.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
2. Route and Speed
The safety slogan ”Speed Kills” is due for a 21st century update to “Speed Kills Your Gas Mileage.” It works both ways: Fuel consumption rises when creeping along in stop-and-go traffic and when humming along at 75 mph.
The government’s mileage guide shows that the optimum steady-speed efficiency is from 45 mph to 60 mph. By 75 mph, the drop-off is 7 mpg (from a peak mileage of 30 mpg). The EPA also says that dropping speed from 65 mph to 55 mph improves mileage by 15 percent.
The safety slogan ”Speed Kills” is due for a 21st century update to “Speed Kills Your Gas Mileage.” It works both ways: Fuel consumption rises when creeping along in stop-and-go traffic and when humming along at 75 mph.
The government’s mileage guide shows that the optimum steady-speed efficiency is from 45 mph to 60 mph. By 75 mph, the drop-off is 7 mpg (from a peak mileage of 30 mpg). The EPA also says that dropping speed from 65 mph to 55 mph improves mileage by 15 percent.
Quick starts and hard braking can diminish mileage by as much as one-third at highway speeds and by 5 percent around town, according to the EPA. Maintain momentum and avoid the brakes to save gas and frustration. Circumvent congestion when possible and drive as if there’s an egg between your foot and the throttle to minimize rapid acceleration.
Using cruise control on the highway may boost fuel economy as well: A recent study by Edmunds.com says that it can improve mileage by as much as 7 percent.
Driving Green: 10 Ways to Be More Eco-Friendly on the Road
1. The Right Tool for the Task
You wouldn’t think of using a sledgehammer to hang a picture frame. Driving a gas-hungry SUV on your daily commute is equally senseless. In a dual-driver household, the wage earner with the longer, more consumptive commute should draw the most-efficient vehicle from the motor pool.
The family’s Ford Expedition or Hummer H2 should be reserved for those special occasions — a vacation trip, towing the boat to a lake, a weekend off-road adventure — where their extra power and traction are really needed and actually used.
Bravo, Cinquecento!
The pedal is to the floor and the speedometer is touching 180 km/h. This is not particularly fast for the Italian highways — the posted 130-km/h speed limit is universally ignored. But it is exceedingly fast for one of the smallest cars in the world. I realize this when we zip by an Alfa Romeo and a Mercedes, whose drivers give us bemused looks.
The car is Fiat's new Cinquecento — Italian for 500. It was launched on July 4 in Italy, 50 years to the day after the launch of its predecessor of the same name. Cars this small and this cute are not meant to be driven fast.
The new Fiat 500 is a mere 355 centimetres long and looks like half an avocado. In Europe, autos of this dimension are known as "city cars." They are designed primarily for ease of parking and torturing children in the cramped back seats, not patrolling the highways in search of sports cars to humiliate.
Yet here we are, blasting along the highway outside of Torino like a cruise missile. I am not afraid. That's a lie.
The driver, a Swiss-Italian automotive journalist named Graziano Guerra — guerra, ominously, is Italian for war — seems intent on pushing the car beyond the limits of its ability and I wonder when the first ball bearing will turn to molten liquid. Yet the marvellous midget feels as solid as a rock.
It is quiet inside — Graziano and I talk in normal voices. We are both big men and we are comfortable. When my turn to drive comes, I push the car to 160 km/h with nary a wobble.
He and I agree: Fiat has created a marvellous car, perhaps the best small car on the planet. It's a compelling combination of value, style, safety, performance and parkability, though reliability is unknown.
I know this car would obliterate machines like the (smaller) Mercedes Smart and the (larger) Toyota Yaris in the Canadian and American markets.
The competition will be happy to know Fiat has no plans to sell the 500 or any other product in North America. Another Fiat brand, Alfa Romeo, will reach North American dealerships in 2009 (or so Fiat says — it has made this promise before). But Alfa makes expensive sports cars, not city cars.
The launch of the new 500 was a national event. Italian Prime Minister Romano Prodi went to Torino for the dazzling launch spectacle, which was created by the team behind the opening ceremonies of the 2006 Torino Winter Olympics. He was joined by 1,200 journalists and some 10,000 other guests from around the world.
The new 500 was put on display in piazzas and airports around the country. Owners of the old Fiat 500s, produced between 1957 and 1977, held rallies everywhere. It was all accompanied by an advertising blitz that emphasized Italian history. In the ads, the car appears only at the end.
Indeed, the Fiat 500, known as the "people's car," is as Italian as pizza, Vespas and Fellini movies. It's the car that gave Italians their first taste of four-wheeled mobility and freedom. It was cheap, simple, practical, pleasing to the eye and ever so tiny, with a length of only 294 centimetres. That's only four centimetres longer than the current Smart, which, unlike the 500, has no back seat.
The 500 took its name from the rear-mounted, air-cooled, two-cylinder engine with a displacement of 500 cubic centimetres. When the overworked engine expired, it could be unbolted and replaced with a new engine in the time it took mama to whip up another batch of gnocchi.
Almost 3.9 million of the original 500s were produced and hundreds of thousands are still on the road. Some of the survivors are fashion statements owned by collectors, who pay small fortunes to have them restored to mint condition. Most are still daily drivers, cluttered with shopping bags and rammed haphazardly into parking spots normally available only to scooters.
The new 500 had to be a nostalgic reinterpretation of the old 500, yet be completely new. Fiat, led by Italian-Canadian chief executive officer Sergio Marchionne, appears to have struck the right balance.
The new car, though bigger, is instantly recognizable as a 500, in the way that the new Mini Cooper shares a similar shape with the old Mini. That's where the similarity ends. Underneath the skin, the new 500 is a thoroughly modern machine.
It comes with two gasoline engines — 1.2-litre and 1.4-litre — and a turbo diesel of 1.3 litres with a claimed fuel consumption of only 4.2 litres/100 kilometres in combined city and highway driving. That's the equivalent of 67 miles a gallon.
There are seven airbags and electronic stability control is standard on some models, available on others.
The 1.4-litre car we drove was fairly fast, with a 0-100 km/h time of 10.5 seconds. The 500 is clearly not a sports car, nor is it meant to be. But it is no slug.
The handling is rewarding and the engine is responsive, though it has to be revved high to move ahead of the pack when the light turns green.
Marchionne has said he wants the 500 to be the "iPod" of cars — simple, popular and fashionable. To broaden its appeal among the fashion-conscious and young drivers, it is available in 500,000 possible design combinations. Options include 15 types of seat upholstery, 12 body colours, nine types of wheels, 19 different stickers, three interior fragrances, an iPod player, a USB port and chrome galore.
Loading the car up with goodies and the more powerful engines can jack up the base price of €10,500 ($15,000) to €14,500.
It's a pity the new 500 is not available in Canada. In terms of fun, driveability and space, it kills the Smart car. In terms of price, it kills the Mini. In terms of style, it kills the Yaris and rivals like the Honda Fit.
If Ford, GM and Chrysler were smart, they would build a city car like this. Fiat has made the smallest cars desirable again.
GM and Ford products on the comeback
The August issue of Consumer Reports magazine contains a rare, happy surprise for Detroit - a rave review of a General Motors SUV.
Consumer Reports is often seen as uniformly critical of vehicles from the Big 3 U.S.-based car makers. For example, not one domestic make was included in Consumer Reports' 2007 list of "Top 10 Picks," released in April.
But according to a Consumer Reports staffer, recent introductions from Ford and GM show that they are capable of making genuinely competitive vehicles.
In addition, J.D. Power surveys show that buyers appreciate the improvements in recent GM and Ford products, sometimes even more than Consumer Reports' car testers do.
With GM and Ford sales in decline, successes like these will be particularly important.
Consumer Reports is, by any measure, the single most influential magazine when it comes to the cars Americans actually buy. Much of the success of Toyota and Honda in the United States can be traced to their rise in Consumer Reports' rankings beginning in the 1970s. A 2006 Forester research study showed that car shoppers trust Consumer Reports more than any other source of automotive information.
The magazine has always maintained that it has no reason to favor or attack any particular company. Consumer Reports, published by the not-for-profit group Consumer's Union, does not run any paid advertising and it doesn't write its reviews based on cars lent by manufacturers.
Its testers have simply not liked U.S. cars much in recent memory.
So it's all the more surprising to read this about GM's Saturn Outlook SUV: "With its roomy interior, the Outlook is an excellent alternative to a large, truck-based SUV for buyers who don't need the extra towing capacity or off-road ability of a truck. We also also liked the Outlook's agile handling, comfortable ride, and third-row seat that's hospitable for three adults."
In the placid language of Consumer Reports, that's high praise.
Jake Fisher, one of the car testers at Consumer Reports' Auto Test Center, credits GM for not just following what the Japanese car companies have done, something U.S. automakers have tended to do in the past.
With the Outlook and its cousins, the GMC Acadia and the Buick Enclave, GM has carved out a new niche: large SUVs that ride and handle like cars while getting relatively decent fuel economy - all without sacrificing interior space.
"I think Toyota and Honda are going to be in kind of a catch up mode," said Fisher.
This is part of a trend for GM and its cross-town competitor Ford, said Fisher. Ford and GM are "getting ride and handling right," he said, "and they're getting interiors right, which is a big change for GM."
Ford has recently had big scores with its Fusion sedan and its close cousins, Mercury Milan and Lincoln MKZ, said Fisher.
The Fusion earned the magazine's highest possible recommendation, signified by a check mark with a circle. Perhaps more surprisingly, the V6 version of the Fusion actually has better "predicted reliability," according to the Consumer Reports, than V6 versions of the Toyota Camry or Honda Accord.
For its part, GM has a serious contender in its Aura sedan, said Fisher, a car that bodes well for the upcoming 2008 Chevrolet Malibu due to roll out later this year. That car shares most of its engineering with the Aura. "GM's getting real serious about midsized cars," said Fisher.
Not everything these companies turn out now has been so successful. Consumer Reports is not particularly fond of the new Ford Edge, for example. "The handling is lackluster, fit and finish is subpar, and the transmission is not as smooth or responsive as it should be," the magazine says in its review.
Consumer Reports ranks the Edge at the bottom of the pack among midsized SUVs in its August issue, even though it managed a "very good" rating.
In addition, the magazine's reviewers just took delivery of a 2008 Saturn Vue, a newly redesigned GM product. So far, said Fisher,"We're not blown away by it."
Consumers don't always agree with Consumer Reports. For example, the Edge finished at the top of its class in a recent J.D. Power & Associates APEAL survey that looked at how well people actually liked their recently purchased cars.
Sales of the Edge have also been extremely strong, backing up J.D. Power's contention that its APEAL survey is an even better predictor of market success than professional reviews.
Newer Ford and GM products have been ranking higher in owner satisfaction surveys, said Joe Ivers, executive director for research with J.D. Power, as well as in surveys rating vehicle quality.
Placing second and third after the Edge in J.D. Power's APEAL rankings were the same Saturn Outlook and GMC Acadia SUVs that Consumer Reports lauded. (The related Buick Enclave was released too late too make it into that study.)
"The thing that both these vehicles excel in the most is exterior styling," Ivers said of the Edge and Outlook.
Chrysler hasn't been following the trend in terms of improving the way its products are seen by critics and consumers.
Of the five "Most Disappointing" new models listed in Consumer Reports' annual April Autos issue, four - the Jeep Compass, Dodge Caliber, Dodge Nitro and Chrysler Sebring - were Chrysler products. (The fifth was the subcompact Toyota Yaris.)
Likewise, Chrysler has not done well in J.D. Power surveys, said Ivers, ranking low in quality and owner satisfaction. In J.D. Power's latest Initial Quality survey, all three Chrysler brands - Chrysler, Dodge and Jeep - scored well below average. In the J.D. Power APEAL survey, the three Chrysler brands all ranked among the bottom five.
For its part, Chrysler does not see the situation as being as dire as all that. Surveys and selected media reviews, like those in Consumer Reports, don't encompass all that people feel about their Chrysler products, said Sam Locricchio, a Chrysler spokesman. Also, even though the rankings in J.D. Power surveys may be low, the brands are still seeing improvements year over year.
Interior quality has been a problem, Locricchio acknowledged, which is why Chrysler opened a special interior design studio in October of last year.
Just as GM and Ford are turning the corner on their on products, though, said Fisher, they are now faced with another problem. The competition just isn't getting any easier.
"Their biggest problem right now is Hyundai," he said.
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