Autos

Mazda To Launch 180m.p.h. 'Furai' Concept.

2008-01-19T08:46:00.000-08:00

Mazda's Furai concept, unveiled January 14th, at the 2008 North American International Auto Show.The Furai ,which means 'sound of the wind' in Japanese, is the fifth radical design in Mazda's Nagare series of concept cars. Mazda says the Furai was created with a particular emphasis on guiding air over and through the vehicle's body. Based on a Courage C65 racing chassis for the American Le Mans Series, it has a 450 hp, Renesis-based R20B three-rotor rotary engine, tuned to run on ethanol and ethanol gasoline blends.It is the first time a racing three-rotor rotary engine has been fueled by ethanol.

Track cars are, by their capabilities, ill suited for highway use, and also not strictly road-legal. Some supercars can be raced, but are not properly equipped for it. The aim of Furai is to bridge this gap. Mazda neither intends to race Furai, nor is it a supercar that the company plans to build and sell. Furai is a design that lives between these these extremes. Franz von Holzhausen,
Mazda's North American director of design, who is behind the Furai, explains: 'We are looking for a way to bridge the gap between Mazda Motorsports and the production vehicles in our lineup. The mind sets of road-car and racing car fans are quite different, so the purpose of Furai is to find a meeting point for these disparate interests.'

Driverless Cars Close To Reality.

2008-01-07T18:53:00.000-08:00

It is no longer science fiction stuff. Driverless cars are close to reality and one can expect them to hit city streets within the next decade.

The driverless car concept embraces an emerging family of highly automated cognitive and control technologies, ultimately aimed at a full 'taxi like' experience for car users but without a human driver. The concept is not new. The history of such vehicles starts in 1977 with the Tsukuba Mechanical Engineering Lab in Japan, which built the first such vehicle. Since then various manufacturers around the world have been working to develop and perfect such vehicles. DARPA (the Defense Advanced Research Projects Agency) organizes the Urban Challenge, a race in which autonomous vehicles navigate city streets, in an effort to encourage research and development in this area. This race is now an annual event.

General Motors has announced that its CEO, Rick Wagoner will be unveiling a prototype of a self driving SUV on Tuesday at the Consumer Electronics Show. The vehicle is nicknamed the 'Boss'. GM expects the technology to be ready for testing by 2015 and commercial production to begin by 2018.

The benefits of such vehicles are immense and they will go a long way in reducing accidents as well as traffic congestion.It is estimated that almost 95% of the over 40,000 traffic fatalities each year in the US are caused by human error.These are expected to decline dramatically with such cars. They would also go a long way in reducing congestion and traffic jams, as vehicles move along at remote controlled speeds, constantly tracked on giant radar screens. They may ultimately zip along on special tracks or along designated corridors.

Much of the technology for developing such a car, such as radar-based cruise control, various kinds of sensors and satellite based tracking already exists. Experts feel that it will be possible to apply this technology to cars.

The challenge will be to get people to trust the car and in getting legislators to allow them on public roads.The most important problem will be to tackle the legal issue of liability for accidents as no person will be in charge.

Cars That Challenged Toyota In 2007.

2007-12-31T09:52:00.000-08:00

The year 2007 will be remembered as the one in which Toyota Motor Corporation nudged past General Motors to become the world's biggest automaker.It is expected to sell 9.36 million vehicles as against 9.2 million by G.M. It already was the world's most profitable and valuable car maker. But this has come at a price. Lexus, Toyota's luxury brand has slipped to 5th place from last year's first in new car predicted reliability. Toyota has also slipped to third place in overall safety ratings. G.M. on the other hand has turned in the most improved performance which goes to show that with sufficient attention to detail, the American car companies are in a position to hold their own against foreign competition.

Here is a look at some of the cars, apart from Toyota, that caught the eye in the year that has just gone by.

2008 Audi R8 : Audi unveiled the 2008 R8, its first ever mid-engine sports car. The car has a 420 hp V8 engine and all wheel drive. It uses the mid-engine Lamborghini Gallardo platform and is positioned against the BMW M6, Porsche 911 and Aston Martin Vantage. It goes from 0-60 mph in 4.6 seconds and sells for about $110,000.

2008 Cadillac CTS :The new Cadillac CTS may have been born and bred in Detroit yet it offers an alternative to more expensive foreign machines. It is rated as not just the best handling Caddy in history, but probably the best handling American sedan ever. Its top of the line 3.6 liter V-6 DI engine produces 304 hp and goes from 0-60 mph in 5.9 seconds.It is priced at about $47,000.

2008 Honda Accord :The all new 2008 Accord, both the sedan and coupe versions, have the look of high performance machines and the moves to back it up.Its sleek exterior has been completely re-designed with an aggressive, sportier look. It is powered by either a 2.4 liter 4 cylinder engine or a 3.5 liter V-6 engine. It comes with Honda's Variable Cylinder Management, which is a fuel saving cylinder de-activation technology. It goes from 0-60 mph in 6.5 seconds and is priced at about $ 31,000.

2008 Chevrolet Malibu :The 2008 Chevy now looks as good as the Camry and Accord. The expensive version is powered by a 252 hp double-overhead-cam 3.6 liter V-6 engine. It goes from 0-60 mph in 6.6 seconds. It may be the most satisfying mid- market mid size sedan from GM for a long time. For about $20,000 it is a steal.

2008 GMC Acadia :GM has finally got it right with a fine crossover SUV with its Acadia. Powered by a 3.6 liter V-6 engine which produces 275 hp, it can tow up to 4500 pounds when properly equipped. It is priced at about $37,000.

2008 Infiniti G37 :This new generation coupe from Nissan is an updated version of the G35 coupe. It is directly positioned against BMW's 335i.It is powered by a 3.7 liter V-6 engine producing 330 hp. It goes from 0-60 mph in 5.2 seconds. It is priced at about $35,000.

2008 Volvo XC70 : The 2008 Volvo XC70 bridges the gap between a station wagon and an SUV.Powered by Volvo's latest 3.2 liter V-6 engine it produces 235 hp. Its off-road capabilities are improved and it has all of Volvo's trademark safety features. It is priced at about $35,000.

The year 2008 should be an exciting one as Toyota tries to cement its place as the world's number one auto maker while GM finally seems to be making the right moves to regain its lost position.

40% Hike In Auto Fuel Efficiency Likely By 2020.

2007-12-02T01:22:00.000-08:00

After months of wrangling Democrat lawmakers wrapped up a deal on fuel efficiency standards Friday.Significantly the deal has been approved by John D. Dingell the auto industry's Congressional ally.As per the final version of the Bill the new auto fleet has to achieve average fuel efficiency of 35 miles per gallon by 2020, about 40% higher than current averages.At Dingell's insistence it has tougher standards for cars than light trucks. Fuel efficiency standards, known as corporate average fuel economy standards or CAFE were adopted in 1975 following the Arab oil embargo of 1974 and had set an efficiency standard of 27.5 mpg which has remained unchanged so far.

Democrats plan to make these proposals a part of the wider energy bill that the House of Representatives is expected to take up next week.The Bill is expected to contain a provision that would require the country's major utilities to generate at least 15% of their electricity from renewable sources like wind and solar power. This measure looks set to be opposed by the utilities who say this will cause a sharp increase in power prices in some parts of the country. The Bill also seeks to provide subsidies for biofuel production, a move opposed by the oil industry.

In a statement Saturday, Alliance of Automobile Manufacturers chief Dave Mc Curdy said 'Upon adoption of this legislation, Congress will have established aggressive, nationwide fuel economy requirements, concluding a long standing debate.' The Alliance is the voice in Washington for the top automakers including Toyota.

Rick Wagoner CEO of General Motors said the new rules would ' Pose a significant technical and economic challenge to the industry.' He said GM would tackle the changes ' with an array of engineering, research and development resources.'

The bill is expected to boost plans by automakers to adopt more fuel efficient technologies for conventional engines and alternatives such as gas-electric hybrids and vehicles running on biofuels. Manufacturers are set to receive credits for vehicles running on biofuels for the first time.

Interestingly a bill containing similar standards approved in June by the Senate was opposed by automakers who said that it would restrict the choice of vehicles, threaten jobs and push up costs. The companies had suggested a standard of 32 mpg by 2022 instead. Chrysler had estimated that it could add $ 6,700 to the cost of each Chrysler vehicle.

But the new plan gives the industry more flexibility to plan new vehicles. It contains separate standards for cars and trucks, extends credits for producing vehicles running on biofuels, and allows automakers to receive separate credits for exceeding the standards which can be applied to other model years.

Dingell also secured extension of the 1.2 mpg credit for the production of each flexi-fuel vehicle which can run on ethanol blends of 15% gasoline and 85% ethanol till 2020. They were due to expire by 2010.

The deal is expected to keep the United Auto Workers union happy as well because it discourages the shifting of production of small cars overseas as the fuel economy credits could be applied to larger, less efficient models.

The flexibility provided in the Bill seeks to set at rest concerns about safety standards as it was feared that rigid efficiency standards would not only restrict the choice of vehicles but also compromise safety, as automakers shifted to lighter materials in an attempt to maintain fuel economy.

Environmental groups estimate the new standards would save 1.2 million barrels of oil per day by 2020 besides reducing pressure on gasoline prices. It seems to be a win-win situation for everybody if it goes through.

All New Nissan GT-R Coming To US

2007-11-05T08:29:00.000-08:00

The 40th Tokyo Motor show opened to the public last month, in Chiba City and will run through November 11th.What's special about this year's show is that upgraded special events that involve audience participation and experiences have been offered to generate excitement about vehicles. On display are the latest space age designs, eco-friendly cars and the usual 'muscle cars' designed with scant regard either for mileage or the environment.

The star of the show is undoubtedly the all new Nissan GT-R. The original Nissan Skyline GT-R hit the street in 1969, but it was not until 1990 that the GT-R became famous. This was after Nissan introduced the first of three twin-turbocharged all wheel drive and all wheel steering cars R32, R33 and the R34. It was never officially sold by Nissan in the US which earned it the nickname Godzilla.However importing one was not difficult and hundreds of them found their way to the US. Its reputation got a further boost when in the 2003 film, 2 Fast 2 Furious, the film's hero raced one through the streets of Miami.

At the2006 New York Auto Show, Carlos Ghosn, CEO of Nissan announced that the GT-R36 would be sold in the US through Nissan.

The Nissan GT-R has a front mounted, 3.8L twin-turbo 6 cylinder V6 engine producing 473 horsepower. It has a 6-speed dual clutch automatic transmission with three driver selectable modes.It accelerates from 0-60 in 3.5 seconds and can reach a top speed of 193 m.p.h. GT-R Test mules have been spotted at various places, frequently alongside a 2006 Porsche 911 Turbo, speculated as being used by Nissan as a benchmark car.

Nismo, the motor sport arm of Nissan will be entering the Nissan GT-R in the super GT500 class for the 2008 season.

Its launch in the Japanese market is scheduled for December 2007. The US launch will follow in May/June 2008 and the European by the end of 2008.

The car is not cheap with the base version expected to cost around $70,000.Further the engine and rear mounted Dual Clutch gearbox are built by hand, limiting production to around 1,000 cars a month. This car will be followed by a more powerful GT-R Spec V, which will be available in the US as a 2010 model.

It is expected that the GT-R will live up to its hype.The most expensive car Nissan has sold in the US will certainly be worth its price.

Toyota's 50th Birthday In The US Nears

2007-10-21T09:09:00.000-07:00

On 31st October 1957 Toyota set up a dealership in Hollywood. In 1958 it launched its first car in the US market called the Toyopet Crown. That year it sold 288 of them and also one Land Cruiser. Its performance in the first few years was so bad that it seriously thought of quitting the US market.

But instead of doing that it sat back and analyzed the reasons for its failure. It quickly understood that the ugly looking and underpowered vehicle would never sell in the US and it eventually withdrew it from the market.

All this is now history. In its 50th year in the US Toyota is on track to sell 9.34 million vehicles worldwide, surpassing GM to become the largest car manufacturer in the world by numbers. It had already become the most profitable car manufacturer several years back. Today its market capitalization is greater than the Big Three put together plus Honda plus Nissan! The Big Three plan to close down 26 plants over the next five years and to shed thousands of jobs.Toyota on the other hand is opening a new plant in Texas this fall and another in Ontario in 2008. Today 60% of the cars Toyota sells in America are made here. It is not outsourcing to make profits. It is creating jobs in the US. It's offering union wages and health benefits. Above all it is selling cars made by Americans to Americans at a profit.Its cars have a 'retail turn rate'-that is the number of days a dealer has to keep a car before selling it of 27 days. For Ford it is 82, GM 83 and for Daimler Chrysler it is 107 days.(figs. for 2006).

Toyota has successfully challenged the American model of manufacturing and management. There are several, by now familiar, reasons for it. The first is the belief in 'kaizen' or continuous improvement, and in 'jidoka' or not letting a defect go from one machine to the next. Then there is the secret designation for certain projects known as 'irei' which roughly means 'not ordinary' and refers to vehicles which the company will go to any lengths to perfect. In the early 1990's, the Prius enjoyed this designation. Toyota plans decades in advance and is not unduly concerned with quarterly and annual balance sheets. True, it enjoys certain cost advantages, like lower health care costs, but what people overlook is the huge cash reserves it has built up and the massive amounts it is spending every year on research and development. Of late it has been hit by vehicle recalls due to manufacturing defects and has recently lost the top spot of being the safest car, slipping to third place, but it is still the clear leader of the pack. It is currently able to sell all the cars it produces in the US, and with the US having more cars per household than drivers, it should be able to do so in future as well.

2008 Volvo C30-A Cool Car

2007-10-13T05:09:00.000-07:00

The all new Volvo C30 two door hatchback goes on sale in the US later this year as a 2008 model. Unlike the usual Volvo family car which typically appealed to buyers above forty, Volvo has given the C30 more style and more speed and also a sporty look with which Volvo hopes to attract younger customers.

The C30 utilizes the S 40 T5's power train-a 2.5 liter 218 horsepower turbocharged inline-5 and it has a six-speed manual transmission(a five speed automatic will be optional). It generates 216 horsepower at 5,000 rpm and 236 pound -feet of torque between 1,500 and 4,800 rpm.The C30 is quick, going from 0-60 mph in 6.2 seconds.It has a top speed of 146 mph(149 mph for the manual version).

It seats four with individual bucket style back seats that are moved a bit towards the center to provide forward visibility around the front seats.The front as well as rear seats are comfortable. However cargo space is somewhat limited, only 8.2 cubic feet with the seats up. but with the rear seats folded it increases to 30.9 cubic feet.

The interior will be familiar to Volvo drivers. The distinctive 'floating' console is present as part of the design.In addition to standard front, side ,and side curtain airbags, the C30 protects with seat belt pretensioners for all four seats,a whiplash protection system(WHIPS), a side impact protection system(SIPS), and dynamic stability traction control(DSTC).

Car audio enthusiasts are certain to appreciate the Volvo C30's standard 160 watt stereo system. Also available is a Premium sound system with a digital 5 x130 W ICE Power amplifier from Alpine, Dolby Pro Logic II Surround, and 10 loudspeakers from Danish loudspeaker manufacturer Dynaudio. Total output for the Premium Sound System is 650 watts.

The C30 offers a Custom Build ordering process with 17 different exterior colors and 12 interior combinations. Its starting price is around $23,000. It has been designed under the supervision of Peter Horbury and was his last car for Volvo before he left to join Ford in North America.

The C30's nearest competitor in the US is likely to be the Volkswagen GTI, which is similarly priced and has similar specifications as well. Other competitors are the Audi A3, Mazda 3, and the Mini Cooper S.

The car is already on sale in Europe and will be available from this month in the US as a 2008 model.Volvo says its compact dimensions are suitable for driving and parking on cramped city streets. Although fuel economy could have been better, the features it offers, along with the Volvo quality are likely to make the car a winner.

Detroit Auto Show Braces For Upcoming Chinese Invasion

2007-10-11T08:39:00.000-07:00

A record number of Chinese companies will be exhibiting their products at the Detroit Auto Show in January next year. The show will feature the following Chinese manufacturers:

1. Changfeng Motor Group

2. BYD Auto Co.

3. Geely International Corp.

4. China America Automotive Inc./ZXNA

5. Li Shi Guang Ming Auto Design Co.

The show will be open to the public 19th January through January 27th.

Nissan Pivo The Cute Little Car!

2007-10-05T10:05:00.000-07:00

Nissan unveiled the Pivo concept car at the Tokyo Motor Show in 2005. At first sight it appears to be another of those futuristic cars.But a closer look reveals a very interesting vehicle.It is an electric car with a unique revolving cabin which can turn 360 degrees.The advantage of this design is that it eliminates the need for reversing and parking is not a problem anymore because you have wheels that can turn 90 degrees.Whatever you do you can always be looking forward while doing it.This makes it much safer to drive also.The driver's cabin is bubble shaped which eliminates blind spots and gives perfect visibility.This is the new Nissan Around View Technology. Its engine The Nissan Super Motor is powered by a Compact Lithium-ion battery which has zero emissions and gives you one of the most environment friendly cars available.

The Pivo seats three. the driver sits in front in the center and two passengers sit side by side in the rear.The name Pivo is derived from the word pivot. Whenever you need to reverse or to park you simply pivot the entire cabin and do it while looking forward.This is possible because of Nissan's advanced drive by wire technologies which eliminate the need for mechanical connections between the cabin and the chassis.

Cameras mounted on the outside of the car feed an accurate image of the surroundings on to a dashboard monitor. These cameras are located at the front, rear and both the sides of the car. An image processing technique synthesizes these images into a single bird's eye view.

An infra red commander allows drivers to operate the navigation and audio systems without taking their eyes off the road.Because of Nissan's Horizontal Display information is displayed along the bottom of the windshield allowing drivers to concentrate on the road ahead.

Now Nissan has unveiled the Pivo 2.This car also features a robot which sits on the dashboard and warns the driver when it senses that the driver is getting sleepy.It also nods and shakes its head which cheers up drivers.Unlike the first Pivo this car has no axles.Instead it has four electric motors which power each wheel separately.This vehicle will be exhibited at the Tokyo Motor Show later this month. In Japanese the Pivo is called 'Kawaii' or cute. Nissan hopes that this car will be particularly attractive to female drivers. Let's see whether this car is a hit or not.

2008 Nissan Rogue Arrives In Style

2007-10-04T10:57:00.000-07:00

Nissan has been an active player in the SUV market with models like Pathfinder, Xterra and Armada.This will be Nissan's first entry in the crowded small crossover SUV field. It will be in direct competition with the Toyota RAV4 and Honda CR-V. Its counterpart called the Quashqai has already been introduced in Europe in early 2007.First exhibited at the Detroit Auto Show the Rogue is built on the same 'C' platform as Nissan's Sentra. The Global 'C' architecture has been developed jointly by Nissan and Renault.

Both the base Rogue and the upgraded Rogue SL have a 2.4 liter four cylinder engine matched with Nissan's trademark continuously variable transmission (CVT) producing 170 horsepower. The Rogue's engine gives it more power than most of its competitors.

The Rogue also offers a long list of standard safety features including front seat mounted side impact supplemental air bags and roof mounted curtain supplemental air bags. Electronic stability control and anti-lock brakes are also there.

The Rogue offers many high tech options like heated leather seats, keyless ignition, Bluetooth phone connectivity, Bose audio system, malfunction trip computer and Xenon headlights. These options will take your cost closer to $25,000 from the base price offer of $20,000.

"With Rogue, we have targeted drivers in their early thirties, whose responsibilities and functional needs have changed but who don't want to leave behind the person they've always been-someone who enjoys driving, who values style and design and who wants to retain his or her individuality", said Bill Bosley, Vice President and General Manager, Nissan Division. "The Rogue name was chosen to reflect its positioning, though we certainly believe that all buyers, regardless of age of life stage, will positively respond to Rogue's fun to drive, all climate performance and aggressive styling".

How the Rogue will impact the market is tough to guess. Experts feel that though it is a good car it is a latecomer to this segment and without any standout quality it will find it tough to beat the competition.

2008 Ford Taurus Wins Crash Safety Award

2007-10-02T09:41:00.000-07:00

The Ford Taurus was first introduced in December 1985 as a 1986 model.It was a front wheel drive automobile and was a milestone design not just for Ford but the entire American automotive industry. Between 1992 and 1996 it was the best selling car in the US, losing this status to the Toyota Camry in 1997.Sales declined thereafter but the Taurus continued to be a favorite of car rental companies.This further depressed the residual value of the cars and Ford finally stopped producing it in October 2006. Ford had hoped that the Ford Five Hundred and the Ford Freestyle would be worthy successors of the Taurus . However these two cars went almost unnoticed due largely to their unattractive styling and underpowered engines.

As it became clear that the Five Hundred and the Freestyle would have to be upgraded substantially, CEO Alan Mullaly decided to revive the Taurus name for the new models and the Five Hundred became the new Taurus and its mechanical twin the Freestyle became the new Taurus X. Clearly Ford is banking on consumer awareness of the Taurus name to help it come up with a winner.

But the name is not all that Ford is banking upon. The new car is powered by a 3.5L Duratec V6 engine that generates 263 horsepower compared to the 153 horsepower of the old Taurus and 203 horsepower of the Five Hundred. The car is not fast, about 7.6 seconds to 60 but it does'nt lag too far behind the competition.The vehicle is styled to reduce aerodynamic drag and to cut out noise. Interior noise is greatly reduced, partly by using a new sound absorptive material called Sonosorb.

Where this car has done particularly well is that it has earned the National Highway Traffic Safety Administration's(NHTSA) highest five star rating for not only the front crash test (driver and passenger) but also the side crash test (front and rear outboard passengers).It is also the 'Top Safety Pick' of the Insurance Institute of Highway safety (IIHS). It provides as standard equipment the Safety Canopy System with rollover sensors and side curtain airbags, the Personal Safety System featuring dual- stage front airbags plus side impact airbags.

It has attractive styling with a new chrome grille and new taillights. It is also amongst the roomiest cars available with a huge trunk in which to carry your golf bags.Although the mileage could have been better, experts consider it to be a good car.

Although it does not promise to be a bestseller it certainly deserves a second look.

Hydrogen Cars Set To Revive The US Auto Industry

2007-09-22T10:11:00.000-07:00

A couple of news headlines in the last few days have once again brought into focus two of the most pressing problems facing every nation on this earth today.They are the price of crude oil touching $84 a barrel and that the arctic ice is vanishing at an alarming rate.The former threatens to derail economic growth worldwide and the latter is a warning that we are on the brink of an environmental catastrophe with yet unforeseen consequences.This is exactly why hydrogen powered vehicles become so important.

Most people think that US automakers have surrendered technological leadership to their Japanese rivals for good.If one were to consider sales of conventional vehicles and the latest hybrids then nobody would have a choice but to agree.But fortunately things are not so bleak for the US auto industry as they may appear at first sight.

People tend to overlook the fact that one of the major reasons why US automakers have lagged behind in the development of hybrid technology is that they have concentrated on developing electric and hydrogen powered vehicles.

So how do hydrogen powered vehicles work?They work in two different ways.The first is that hydrogen is burnt in internal combustion engines in the same way as in conventional autos.The second is to use hydrogen to power fuel cells.Here hydrogen is reacted with oxygen to produce electricity which is used to power an electric motor through a battery.

Hydrogen can be produced from a multiplicity of sources such as natural gas ,converting coal into gas,biomass and other waste products apart from water.It is estimated that supplies of hydrogen are unlimited.

Presently there are about 200 hydrogen powered vehicles on the road in the US mainly in California.Companies have started offering hydrogen powered cars to customers but there are a couple of problems.For one the cost of the vehicle is very high and secondly the fuel is not easily available.However it is expected that mass production will lead to significant reduction in costs.

Although hybrid cars cut down emissions significantly, only hydrogen cars offer zero emission, the only emission being water vapor.Moreover these cars will drastically reduce the nation's dependence on imported oil.The US government is actively supporting this initiative and President Bush has allocated almost $2 billion to this program.Since one fifth of the nation's cars are sold in California Governor Arnold Schwarzenegger is trying hard to put in place an infrastructure which would ensure easy availability of hydrogen.Once costs come down and fuel is easily available there is no reason why hydrogen cars will not replace gasoline cars very quickly because performance wise hydrogen cars are a match for their gasoline counterparts.Moreover they are more efficient and give two to three times the mileage of gasoline vehicles per equivalent measure of hydrogen.

Hopefully it won't be very long before hydrogen vehicles are a common sight on the highway.

Lamborghini Builds $1.4 Million Car!

2007-09-13T09:59:00.000-07:00

One day Feruccio Lamborghini,a tractor manufacturer and a car enthusiast went to meet Enzo Ferrari at the Ferrari factory to complain about the clutch in the Ferrari he owned.Enzo Ferrari told him to go away and drive a tractor because he was not fit to to drive cars.Lamborghini went back to his factory, had his Ferrari's clutch dismantled,and fixed the problem.

Encouraged by his success he decided to go ahead and build a sports car to his liking.The Lamborghini 350GTV made its first public appearance at the Turin Auto show in 1963.A string of successful cars followed and the company entered the small world of super car manufacturers.

In 1972 the company suffered a major blow when a large tractor order for a South American country was canceled causing large financial losses and forcing Feruccio to sell part of his tractor business.The car division flourished however and became profitable.The same year Lamborghini sold his interest in the car division a well and retired to pursue his hobby of wine making.

In the 1970's the oil crisis hit sales of expensive high performance cars and Lamborghini was no exception.Since it had a two year wait list many customers simply got fed up waiting for it.It also had reliability problems and needed expensive maintenance.The US also prescribed strict emission norms for automobiles. Unable to cope Lamborghini declared bankruptcy in 1978.

The company got a new lease of life after it was taken over by Chrysler in 1987.Today Lamborghini is owned by Volkswagen, and these cars are among the most powerful, expensive and exclusive cars on the road today.

Continuing the tradition of building exclusive, super expensive cars Lamborghini has unveiled the 'Reventon' at the Frankfurt international auto show.This is the most expensive car it has ever built and it costs $1.4 million to own one.It has already sold the 20 cars it proposes to build.It took them just four days to do it. The latest news is that ultimately 100 cars may be built.Most of the buyers are rumored to be businessmen from the US.Powered by a Lamborghini V12 engine the Reventon has a displacement of 6496cc. and delivers a top speed of 309km/h.The Reventon promises to be one of the most exciting Lamborghini models ever.

Buying A New Car? Consider A Hyundai!

2007-09-07T04:44:00.000-07:00

When one plans to buy a new car the name Hyundai doesn't come readily to mind.Hyundai motors America is headquartered in Fountain Valley California.Hyundai vehicles are sold throughout the US through more than 755 dealerships nationwide.

Hyundai entered the US market in 1986 and has had a fair amount of success since then.This year it hopes to sell 500,000 cars and it has a market share of 3.1% which puts it ahead of better known rivals such as Mazda.BMW and Volkswagen.

The Hyundai models have improved a lot over the last few years.The National Highway Traffic Safety Administration(NHTSA) gave five-star crash test ratings, the highest government rating under the agency's New Car Assessment Program, to the all new 2007 Hyundai Veracruz and Santa Fe for both frontal and side impact crash tests.The 2007 Elantra also scored five stars for frontal crash performance and Veracruz earned four stars for rollover performance.Sixty-three
models were assessed.

The Veracruz SUV utilizes the latest in active and passive safety technologies,including standard Electronic Stability Control, Anti Lock Braking System with Electronic Brake Force Distribution, anti whiplash passenger cabin and six airbags.The Veracruz has engineered crumple zones and a host of other safety devices including a Tire Pressure Monitoring system which alerts drivers if any of the tires is under inflated.In the area of safety the 2007 Hyundai Santa Fe ranked above the Toyota RAV4 and the Elantra beat out the Toyota Prius model in the compact car segment.

The Hyundai models perhaps lack the polish of their US and Japanese counterparts but they are darn close and if you consider that they cost about 20% less to buy, the difference becomes narrower still.In fact you no longer have to buy a Hyundai to save money.If you feel like saving money while buying something that is functionally as good and is a well conceived machine in its own right then a Hyundai is worth a second look.

The South Korean giant has aggressive growth plans and hopes to increase its US sales volume to more than 700,000 cars annually by the end of 2010, a 40% increase.Next week it plans to launch a new $150 million campaign in an effort to improve the Hyundai brand image.Its aim is to get rid of the image of being a value brand which sells only because of lower sticker prices.Experts acknowledge that its a brand issue and unless people have a good enough reason to change brands,they simply won't.With this in mind Hyundai plans to sell its total package rather than its price to consumers.Among other things it plans to offer attractive warranties and roadside assistance programs which are very important today to the consumer.

If this strategy clicks then we just might see more Hyundai cars on US roads in the near future.

And Now Hybrid Trucks!

2007-08-29T09:02:00.000-07:00

Although hybrid cars have been around for a while,since 1997 in Japan and 1999 in the US, the history of the hybrid truck is fairly recent.

Since the pick up truck forms perhaps the most important segment for GM it was but natural that they should try and build a hybrid in this segment.Moreover this is the most rapidly growing segment in hybrid vehicles as well.Trucks are expected to account for 60% of all hybrid sales by 2008.

The first hybrid trucks were from GM and Chrysler.The first full size pick up hybrids were the Chevy Silverado and the Dodge Ram which went on sale in the US in 2004.

These vehicles have now reached a stage of development where you can drive a powerful pick up truck or a SUV without feeling guilty about either damaging the environment or using up limited oil reserves.These new hybrid vehicles combining conventional gasoline engines with electric power allow you to do just that.The savings on gas could be as high as 60% and emissions be cut by up to 97%.

The first trucks were initially available to only fleet operators but are now available to all kinds of buyers,and have been an instant hit.

Hybrid trucks being used by utilities are gaining in popularity because they operate much more silently than their conventional counterparts.Often operating at night or early in the morning they are able to do their work without waking up the entire neighborhood.The 60% saving on gas is an added bonus.

Amongst new developments Kenworth Truck Company has introduced a hybrid electric truck for municipal fleets and utility companies.PACCAR together with Eaton has announced plans of developing a hybrid truck.But it is again a Japanese company,Mitsubishi,which has launched the most efficient diesel hybrid truck. the Canter Eco Hybrid.Since modern diesel engines are more efficient than petrol engines and also equally clean it is a huge success.

However it is an American company GM which has undertaken the most interesting development in this class of vehicles.It is developing a new diesel hybrid truck for the military.Apart from savings on fuel and being cleaner they offer a huge tactical advantage in battle conditions.They are more silent and therefore more difficult to detect.They also give off less heat and are less likely to be picked up by heat sensors of the opposition.

Presently these vehicles do have some disadvantages.Although they have four wheel drive it is not as efficient as the 4WD of a regular gas based vehicle ,especially in off road conditions.Moreover hybrids are not good at towing trailers over a long distance.

But there are many advantages of owning a hybrid.There are state purchase incentives for hybrids as well as federal tax breaks.Some companies too give incentives to employees to buy hybrids.You would also do well to remember that no training is required to drive a hybrid.It drives the same as your old gasoline vehicle.they are also perfectly safe.And what is more they are improving with each passing year.

Japanese vs.US Hybrid Cars-Why the Difference?

2007-08-25T08:45:00.000-07:00

Hybrids are the fastest growing segment of the American car market.In 2006 the sales of hybrids rose to 1% of total car sales ,an increase of 22%over the previous year.This high rate of growth looks set to continue with the public growing increasingly concerned about depleting world oil resources and the environmental impact of fossil fuels.

The figures speak for themselves.Hybrids can cut fuel consumption by up to as much as 40%.As far as cleaner environment goes the new Ford Escape Hybrid produces less than one pound of smog producing pollutants in a 15,000 mile drive.Its significance can be understood only when you consider that for non hybrid passenger vehicles the corresponding figure is 67 pounds!

It was Toyota which first demonstrated the hybrid-electric concept at the Tokyo Auto Show in 1995.At that time Toyota set an aggressive development schedule to bring the Prius to the Japanese market in two years time in an effort to be the first car company in the world to offer a production hybrid-electric car for sale.And succeed they did.The Prius was offered to the Japanese public in 1997 before the signing of the Kyoto Protocol.

The Prius went on sale in the US in 2000 and was an instant success.The first hybrid electric model in the US market,however, was the Honda Insight in 1999.The Honda Civic hybrid went on sale in 2002.

The year 2004 will be remembered for the launch of the second generation Prius.In addition the first full size pickup hybrids the Dodge Ram and the Chevy Silverado as well as the first SUV hybrid the Ford Escape hit the streets this year.

The success of the 2004 Prius led some experts to call it the most successful car model of all times.At one time it sold at a premium of $2000 over its sticker price!Even today the Prius sells more than all the other models combined.

So what did Toyota and the other Japanese automakers get right which the US automakers got wrong?Nothing really because it was just a question of focusing on a particular area.US automakers concentrated all along on pure electric cars and hydrogen fuel cars.While electric cars were introduced in the market they did not become popular because of limitations of size,speed and range.The hydrogen fuel car is still under development although GM hopes to introduce it in the market by 2010.

Of late the US manufacturers have sought to duplicate the success of the Prius.Encouraged by the success of the Ford Escape they have directed their energies into developing an American hybrid.But unlike the Ford escape which has been built under a licensing agreement with Toyota,GM's forthcoming Chevy Tahoe hybrid is st to be a very important event for the American auto industry.

Why so?The Prius recharges its battery pack through deceleration and regenerative braking.Thus while it improves fuel economy significantly in the city its results are not so spectacular on the highways.The USA is a huge country with a vast highway network.The Tahoe hybrid and all GM dual mode hybrids offer some additional tricks on the highway, which is very important in the US.

The year 2008 therefore promises to be an interesting one for the US hybrid industry.While none of the models are going to match the efficiency of Toyota,US automakers are clearly back in the reckoning.

2008 Honda Accord: All-New With More Space, Safety, Power

2007-08-22T21:38:00.001-07:00

Set to go on sale in mid-September, the all-new 2008 Honda Accord moves the world of mainstream transportation in a refined, dynamic and sophisticated direction with an expanded range of innovative technologies designed for more power, greater efficiency and enhanced safety across the entire lineup of sedans and coupes.

Completely redesigned for 2008 with increased dimensions for a more spacious interior, the sedan styling theme expresses a powerful presence with sharp and strong character lines. The coupe is further individualized with an aggressive stance and unique proportions that create a muscular, sporty demeanor.

"The all-new Honda Accord has become more advanced and refined with a new level of engineering sophistication," said John Mendel, executive vice president of American Honda Motor *** Inc. "As the Honda brand's flagship automobile, the Accord is designed to exceed expectations with premium technology, a more spacious interior and increased power, while retaining the fun-to-drive character and innovative feel that has always distinguished the Accord."

An available 3.5-liter i-VTEC V-6 engine produces 268-horsepower - the most ever for any Accord - while introducing a new generation of fuel-saving Variable Cylinder Management (VCM) technology and achieving a Partial Zero Emissions Vehicle (PZEV1) rating. The VCM system operates in six-cylinder mode for power and 4- and 3-cylinder modes for efficiency, resulting in an EPA city/highway fuel economy rating of 19/292 miles per gallon (Accord Sedan V-6).

Also new for Accord, an Advanced Compatibility Engineering (ACE) body structure enhances frontal collision compatibility with vehicles of different sizes and bumper heights. Additional safety equipment standard to all Accord models includes Vehicle Stability Assist (VSA), also known as Electronic Stability Control; side-curtain airbags; dual-chamber front side airbags with passenger-side Occupant Position Detection System (OPDS), active front seat head restraints, anti-lock brakes and more.

The Accord is available in sedan and coupe body styles with 2.4-liter 4-cylinder and 3.5-liter V-6 engine choices. Available transmissions include a 5-speed manual (standard with all 4-cylinder engines), a 5-speed automatic (standard on sedan V-6 models, available with all 4-cylinder engines and V-6-powered Accord Coupes,) and a 6-speed manual transmission (exclusive to the Accord Coupe EX-L V-6 6MT).

Sedan trim levels range from the well-equipped Accord Sedan LX and plus-featured LX-P (177-horsepower 4-cylinder engine), to the nicely-equipped Accord Sedan EX (190-horsepower 4-cylinder engine or 268-horsepower V-6 engine), to the premium and upscale Accord Sedan EX-L (190-horsepower 4-cylinder engine or 268-horsepower V-6 engine). Coupe trim levels range from the well-equipped Accord Coupe LX-S (190 horsepower 4-cylinder engine), to the nicely-equipped Accord Coupe EX (190-horsepower 4-cylinder engine) to the premium and upscale Accord Coupe EX-L (190-horsepower 4-cylinder engine or 268-horsepower V-6 engine).

Interior
Premium quality with a simple, modern and spacious design describes the philosophy behind the Accord's interior. The larger Accord Sedan total interior volume of 120.0 cubic feet (+3.3 cubic feet compared to 2007) moves the EPA classification from the midsize sedan class to the large sedan class. The additional space is intended to provide "equal" seating comfort for front and rear passengers. Rear legroom of 37.2 inches (+0.4 inches) approaches the impressive second row legroom of the Honda Pilot SUV (37.4 inches). The wider interior (+1.5 inches) allows the front seats to be positioned farther apart to allow for a wide center console more commonly associated with the finest luxury vehicles.

The Accord interior is designed for a dynamic, intuitive and upscale presence, starting with an easy-to-read information display on every vehicle. A zone styling approach separates operation-related instruments (top) and information-related instruments (lower). At night, the controls are further separated by color to distinguish between climate controls (aqua green) and audio controls (white). Classically-styled gauges for the speedometer and tachometer are perfectly round (instead of being truncated at the bottom). Steering wheel audio controls are standard on every Accord. Careful attention was paid to the symmetry of the exterior and interior of the vehicle - including sight lines related to the dashboard height and the visual presence of the hood to the driver.

Redesigned front bucket seats are larger, and feature substantial lateral support to complement the Accord's sporting side. The fold-down lockable rear seatback increases cargo-carrying versatility; the sedan includes a lockable pass-through.

Three impressive audio systems are available - all with MP3/Windows Media Audio (WMA) playback capability and an auxiliary input jack. The standard system features 160 watts, a single-disc CD player and six speakers. A Radio Data System (RDS) displays information broadcast by participating radio stations that often includes call letters, station type and programming information.

The Accord Sedan EX and Coupe LX-S add a 6-disc in-dash changer. The premium audio system, which comes standard on Accord EX Coupe and Sedan EX-L models, has a six-disc CD changer, 270 watts total amplification and seven speakers including an 8-inch subwoofer. XM Satellite Radio is standard equipment on all Accord EX-L models.

The latest-generation of the Honda Satellite-Linked Navigation System with voice activation (available on EX-L) uses an 8-inch screen and an interface dial for user input. Features include the Zagat Survey guide for restaurants, nightlife, hotels and attractions. Navigation-equipped models also include Bluetooth HandsFreeLink.

Exterior
Intended to convey a prestigious presence, the Accord Sedan embraces a traditional three-box shape that emphasizes both a dynamic and athletic feel with the sophistication of a timeless sedan form. Dimensionally, the Accord Sedan's overall length of 194.1 inches (4-cylinder models, V-6 models add 0.2 inches for front spoiler lip) is 3.0 inches longer than the 2007 model. The width of 72.7 inches is 1.1 inches wider, and the height of 58.1 inches is 0.9 inches taller. Even though the size is larger in every dimension, the vehicle's torsional rigidity has increased by 20 percent as a result of advanced body construction that uses 48 percent high-tensile steel - the most high-tensile steel by volume of any Accord to date. A significant benefit to the advanced body construction is that total vehicle weight increased only by approximately 5 percent despite the larger size, greater rigidity and added features.

The Accord Coupe styling radically breaks from the sedan with a uniquely aggressive image. Its long hood, sleek roofline and muscular lines suggest power and a heightened agility compared to the sedan. Dimensionally, the Accord Coupe's overall length of 190.9 inches is 3.2 inches longer than 2007 model, its width of 72.8 inches is 1.2 inches wider, and its height of 56.4 inches is 0.6 (LX-S) to 0.7 (EX, EX-L) inches higher. Compared to the 2008 Accord Sedan, the Accord Coupe is 3.2 inches shorter in length, 1.7 inches shorter in height and 0.1-inch wider.

Chassis
A performance-inspired double-wishbone front suspension and a multi-link rear suspension are designed to provide world-class chassis dynamics. The Accord Sedan wheelbase of 110.2 inches is 2.3 inches longer than the 2007 model, while the 62.2-inch front/rear track is 1.1 and 1.0 inches wider, respectively. The Accord Coupe wheelbase of 107.9 inches is 2.8 inches longer than the 2007 model (track is identical to sedan). Ultimately, the suspension design with wider tire sizes, standard ABS and standard Vehicle Stability Assist is intended to enhance driver confidence and handling performance.

The 2008 Accord Sedan also comes standard with 16-inch steel wheels with wheel covers, or16- or 17-inch aluminum wheels depending on model. (The Accord Coupe has 17-inch aluminum wheels standard, with 18-inch aluminum wheels available on the Coupe V-6). The 17-inch wheels are the first for a four-cylinder Accord and the Coupe's available 18-inch wheels are the largest ever for a Honda car.

Powertrain
All 2008 Accord engines deliver increased horsepower across the board, along with high fuel efficiency and low emissions. In total, these power plants represent the most powerful and advanced technologies of any Accord in history, and are also projected to deliver excellent real-world fuel economy performance. All engines only require regular unleaded fuel. Powertrain highlights include:

2.4-liter, DOHC, i-VTEC 4-cylinder engine (Sedan LX, LX-P)

177 horsepower at 6500 rpm, 161 lb-ft. of torque at 4300 rpm
5-speed automatic transmission or 5-speed manual transmission
Estimated EPA fuel economy of 21/31 mpg City/Highway2 (Sedan, Automatic)
PZEV1 or ULEV-2 emissions

Accord Sedan EX, EX-L; Coupe LX-S, EX, EX-L includes :

High-flow exhaust system with variable-valve silencer
190 horsepower at 7000 rpm, 162 lb-ft. of torque at 4400 rpm

3.5-liter, SOHC, i-VTEC V-6 engine (Sedan EX V-6, EX-L V-6; Coupe EX-L V-6: 5AT)

268 horsepower at 6200 rpm, 248 lb-ft. of torque at 5000 rpm
5-speed automatic transmission
V CM for improved fuel efficiency
Estimated EPA mileage of 19/29 mpg City/Highway2 (Sedan)
PZEV1 or ULEV-2 emissions

3.5-liter, SOHC, VTEC V-6 engine (Coupe EX-L V-6: 6MT)

268 horsepower at 6200 rpm, 248 lb-ft. of torque at 5000 rpm
6-speed manual transmission
VTEC provides two intake cam profiles for increased low- and mid-range torque
Estimated EPA mileage of 17/25 mpg City/Highway2
ULEV-2 emissions

Safety
Through a comprehensive and evolving approach to vehicle safety, Honda seeks to provide a high level of occupant and pedestrian protection in all of its cars and trucks, regardless of size or price, as well as increased compatibility with other vehicles as part of the Safety for Everyone initiative introduced in 2003. Consistent with the Safety for Everyone initiative, every 2008 Accord integrates sophisticated safety technology that includes the ACE body structure; side curtain airbags; driver's and front passenger's dual-chamber side airbags with a passenger-side Occupant Position Detection System (OPDS); and dual-stage, dual-threshold driver's and front passenger's airbags (SRS).

Additionally, the Accord has active front seat head restraints that are designed to help reduce the severity of neck injury in the event of a rear collision. Standard active safety features include VSA, a four-wheel disc anti-lock brake system (ABS) with brake assist and electronic brake distribution (EBD), front seatbelts with an automatic tensioning system and load limiters, and a pedestrian safety design in the front of the vehicle. Passenger-side seatbelt reminders and daytime running lights are also standard equipment.

Press release via Honda

2008 Honda Accord: All-New With More Space, Safety, Power

2007-08-22T21:38:00.000-07:00

177 horsepower at 6500 rpm, 161 lb-ft. of torque at 4300 rpm
5-speed automatic transmission or 5-speed manual transmission
Estimated EPA fuel economy of 21/31 mpg City/Highway2 (Sedan, Automatic)
PZEV1 or ULEV-2 emissions

Accord Sedan EX, EX-L; Coupe LX-S, EX, EX-L includes :

High-flow exhaust system with variable-valve silencer
190 horsepower at 7000 rpm, 162 lb-ft. of torque at 4400 rpm

3.5-liter, SOHC, i-VTEC V-6 engine (Sedan EX V-6, EX-L V-6; Coupe EX-L V-6: 5AT)

268 horsepower at 6200 rpm, 248 lb-ft. of torque at 5000 rpm
5-speed automatic transmission
V CM for improved fuel efficiency
Estimated EPA mileage of 19/29 mpg City/Highway2 (Sedan)
PZEV1 or ULEV-2 emissions

3.5-liter, SOHC, VTEC V-6 engine (Coupe EX-L V-6: 6MT)

268 horsepower at 6200 rpm, 248 lb-ft. of torque at 5000 rpm
6-speed manual transmission
VTEC provides two intake cam profiles for increased low- and mid-range torque
Estimated EPA mileage of 17/25 mpg City/Highway2
ULEV-2 emissions

5 Tips - Save Money On Gas

2007-08-20T02:30:00.000-07:00

Gas prices keep going up, and our wallets keep getting thinner. These tips will go a long way in reducing your gas bills.

1. Avoid Idling: While idling, your car gets exactly 0 miles per gallon. Although starting the car used to use a lot of gas, it's now the same as idling for about 30 seconds. Idling to warm up is particularly bad, as the engine needs extra fuel to warm up. After start up, allow your car to idle 15-30 seconds, then drive conservatively until it reaches normal operating temperature. Park your car and go into the restaurant rather than idling in the drive-through. Idling with the air conditioning on also uses extra fuel.

2. Plan your trips: This can prevent wasting fuel and wasting time. Plan to use alternative routes. Often back roads can prevent you from stopping at traffic lights and more importantly sitting in traffic jams.

3. Drive at a consistent speed: Avoid high acceleration and hard braking. Use cruise control when you can.

4. Check the pressure of your tires: Buy an inexpensive air pump and an accurate tire gauge (not a pencil gauge as they are not accurate). Keep all tires inflated to the pressure as recommended for your car. Go by the tire wall; the sticker on the door frame, fuel filler flap, or manual is for comfort, not fuel efficiency. Generally speaking, a slightly higher pressure will improve fuel mileage and handling, but too high will degrade traction and wear the tires rapidly.

5. Don't overload your car: If you have heavy objects in your car that you don't need, remove them. If your car is lighter, it will use less fuel to get where you're going.

Gasoline Cars vs Hybrid Cars - Which is Cheaper?

2007-08-19T05:35:00.000-07:00

Today people are queuing up for hybrids for a host of reasons. More mileage, cleaner emissions, less dependence on imported oil and the likes.

So how do conventional cars really match up to hybrids. Well here's a look.

As far as fuel efficiency goes the odds are clearly in favor of hybrids. You could get savings of 20%-25% on your gasoline bills if you are driving a hybrid. But before you get rid of your gas guzzler and rush off to the nearest Toyota/Honda dealer there are some things you must consider.

There is a lot of hype about the fuel efficiency of a hybrid. In fact the mileage that you actually get may be lower than what is advertised. This is because driving conditions in which the battery of a hybrid gets recharged fastest is by deceleration and regenerative braking. This simply may not always happen, resulting in a noticeable difference between the advertised and the actual mileage.

Then there is the premium that you pay for a hybrid: It shouldn't be anything less than $2,000 . If you consider the fuel that you save then at the current gas prices you will need to drive about 150,000 miles before you recover the initial difference in cost. If you don't drive too much it could be at least a ten year wait. What's more hybrid's store energy in large battery packs. These are costly to replace, more than $2,500. Although they last a long time, the cost of replacement is certain to drive down the resale value of used vehicles.

Again mixing of electric power and traditional internal combustion engines requires a lot of fine tuning. Then there are risks associated with handling powerful batteries. Small hiccups may mean a trip to sophisticated garages rather than the mechanic round the corner. The result, more money spent on maintenance.

However inspite of these apparent drawbacks it seems hybrids will win in the long run. As their production increases, prices are bound to come down because of economies of scale. Then the federal government offers a tax credit for buying a hybrid, which is about $2,000 for a 2007 Honda Civic. Additionally some companies also offer cash incentives to employees buying hybrids.

All in all, no matter what your calculator tells you now , hybrids are the cars of the future. Even today the extra dollars spent on one are a small price to pay for preserving the environment.

Hybrid Cars - Are They Safe?

2007-08-17T08:27:00.000-07:00

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.

Hybrid Cars - Their Mileage

2007-08-17T07:35:00.000-07:00

1. Honda Accord

Mileage: 30/37 MPG

2. Honda Civic

Mileage: 50/50 MPG

3. Lexus GS 450h

Mileage 25/28 MPG

4. Nissan Altima

Mileage 41/36 MPG

5. Toyota Camry

Mileage 43/37 MPG

6. Toyota Prius

Mileage 60/51 MPG

Car Theft - 4 Tips to Prevent Car Theft

2007-08-15T06:21:00.000-07:00

You often come across people who say "No one would want to steal my car." Well, they could be wrong. Most stolen cars aren't brand new. Usually, they are slightly old. Common cars don't stand out and can be easily sold. The most stolen cars are the Toyota Camry, Honda Accord and the Honda Civic.

The statistics are an eyeopener. There is a car stolen every 26 seconds in the US. Around 65% of all stolen vehicles are recovered, most of them in a damaged condition or with their vital parts removed. The number of arrests made is about one in eight. Most of the thefts occur on Friday's or Saturday's.

There is a misconception that insurance covers the entire cost of theft. It doesn't. The insurance company will finally shell out only the depreciated value of your car and not the replacement cost. Nevertheless, it is best to be properly insured.Whether or not they pay for repairs depends on the type of policy you have taken.

There are some practical ways to minimize the chances of your car been stolen. They are:

1. Lock your car properly when you leave it. Close all windows and the sunroof as well.

2. Don't leave valuables in the car in plain view. This attracts thieves and vandals who will simply smash your window and steal whatever they can.

3. Park your car in well lit areas with plenty of pedestrian traffic, or when possible in attendant lots.

4. Use your alarm and other anti-theft devices.

Registering with the National Vehicle Identification Program is free. They also help the police in tracking down stolen vehicles.

These small tips will go a long way towards protecting your car from being stolen.

How to Prevent Car Theft ?

2007-08-06T00:58:00.000-07:00

Top Hybrid Cars - Their Costs and Fuel Consumption

2007-08-03T06:31:00.000-07:00

1. Honda Accord

Base MSRP Approx. $30,000
Mileage: 30/37 MPG

2. Honda Civic

Base MSRP Approx. $21,850
Mileage: 50/50 MPG

3. Lexus GS 450h

Base MSRP $55,595
Mileage 25/28 MPG

4. Nissan Altima

Base MSRP $24,400
Mileage 41/36 MPG

5. Toyota Camry

Base MSRP Approx. $30,000
Mileage 43/37 MPG

6. Toyota Prius

Base MSRP Approx. $22,000
Mileage 60/51 MPG

Toyota Raises Prices of 2008 Models

2007-08-02T07:31:00.000-07:00

Toyota Motor Sales (TMS), U.S.A., Inc., announced manufacturer's suggested retail prices (MSRP) for the 2008 Avalon full-size sedan, Prius gas-electric hybrid, Yaris subcompact, RAV4 compact sport utility vehicle (SUV), FJ Cruiser off-road SUV, 4Runner mid-size SUV, Tacoma pickup and Sienna.

All eight models begin arriving in dealerships in late July and throughout the month of August.

1. 2008 Avalon

The total Avalon average MSRP increases $201 or 0.6 percent.

2. 2008 Prius

The total Prius average MSRP increases $150 or 0.7 percent.

3. 2008 Yaris

The total Yaris average MSRP increases $150 or 1.2 percent.

4. 2008 RAV4

Total RAV4 average MSRP increases $150 or 0.6 percent.

5. 2008 FJ Cruiser

The FJ's base MSRP ranges from $22,545 for the 2WD automatic to $24,13

6. 2008 4Runner

The total 4Runner average MSRP increases $376 or 1.2 percent.

7. 2008 Tacoma

The Tacoma pickup truck will receive a price increase of $100 or 0.5 percent for all models.

8. 2008 Sienna

The total Sienna average MSRP increases $35 or 0.1 percent.

Totyota raises price of 2008 models

2007-08-01T07:43:00.000-07:00

Toyota announced manufacturer's suggested retail prices today for the 2008 Avalon full-size sedan, Prius gas-electric hybrid, Yaris subcompact, RAV4 compact sport utility vehicle FJ Cruiser off-road SUV (pictured), 4Runner mid-size SUV, Tacoma pickup and Sienna.

Avalon, the flagship of the Toyota passenger car lineup, continues to set the standard for performance, luxury, and value in its class. For 2008, Avalon receives a new six-speed automatic transmission and a braking system upgrade for improved stopping distance, reduced fade and pedal firmness.

Exterior changes - include a new aggressive design for the headlamps, front bumper and radiator grille, in-key remote keyless entry and tinted tail lamps. New 17-inch alloy wheels are offered on the Touring and XLS models. The Limited model also receives chrome door handles.

Interior changes - include a new dark wood grain trim and eight-way power front passenger's seat with power lumbar support on XLS and Limited models. The Touring model features a new aluminum-style interior trim.

The 2008 Avalon also has an updated AM/FM/CD changer with nine speakers, MP3 playback capability and auxiliary audio input jack as a standard feature.

The base manufacturer's suggested retail for the 2008 Avalon ranges from $27,075 for the XL model to $34,415 for the Limited model. The total Avalon average manufacturer's suggested retail increases $201 or 0.6 percent.

The fuel-efficient 2008 Prius is a better value this year with an expanded lineup to include a lower-priced, new standard model. The base manufacturer's suggested retail for Prius ranges from $20,950 for the newly introduced standard model to $23,220 for the Touring model. The total Prius average manufacturer's suggested retail increases $150 or 0.7 percent.

The Yaris subcompact carries over unchanged for 2008 except for the addition of a standard tire pressure monitoring system for all models. The 2008 Yaris also gains the all-new Liftback Sport model. The Yaris Liftback Sport features several exterior enhancements, including color-keyed front and rear under-bumper spoilers and side rocker panels, and is equipped with standard features such as driver and front passenger sport seats, leather-trimmed steering wheel and shift knob, tachometer with amber illumination, 15-inch wheels, rear window defroster, rear window wiper, AM/FM/CD player with MP3/WMA capability and auxiliary audio input jack.

The five-speed manual transmission Liftback carries a base manufacturer's suggested retail of $11,300 and the Sedan with automatic transmission carries a base manufacturer's suggested retail of $12,900. The Yaris Sport Liftback with five-speed manual transmission will carry a base manufacturer's suggested retail of $12,975. All Yaris vehicles arrive in August and the total Yaris average manufacturer's suggested retail increases $150 or 1.2 percent.

The RAV4 maintains all interior and safety enhancements for 2008. All models now feature driver and front passenger seat-mounted side airbags and first- and second-row side-curtain airbags with roll-over sensor as standard equipment. RAV4 models carry a base manufacturer's suggested retail that ranges from $21,100 for the base model 2WD four-cylinder to $26,670 for the 4WD Limited V6. Total RAV4 average MSRP increases $150 or 0.6 percent.

The FJ Cruiser, the most capable off-road SUV in the Toyota line-up, will feature a number of key upgrades, including an anti-theft system, an illuminated entry system, side-curtain airbags for both rows and sun visors with vanity mirrors. The FJ's base manufacturer's suggested retail ranges from $22,545 for the 2WD automatic to $24,13

4Runner will improve its numerous standard safety features on all models with the addition of driver and front passenger seat-mounted side airbags and first- and second-row side-curtain airbags with roll-over sensor. For 2008 the manufacturer's suggested retail will increase $380 for SR5 and Sport Edition models and $350 for Limited models. The 4Runner manufacturer's suggested retail ranges from $28,015 for the 2WD SR5 V6 to $38,735 for the 4WD Limited V8. The total 4Runner average MSRP increases $376 or 1.2 percent.

For 2008, the Tacoma pickup truck will receive a price increase of $100 or 0.5 percent for all models. The base manufacturer's suggested retail ranges from $14,280 for the 2WD four-cylinder with a manual transmission to $26,115 for the Double Cab 4WD V6 automatic long bed. The total Tacoma average manufacturer's suggested retail increases 0.5 percent.

Sienna offers new product enhancements and Extra Value Packages. New standard features include Vehicle Stability Control, Traction Control and rear disc brakes on all models. Also, Bluetooth? is now on all models featuring standard or available JBL audio. The Sienna manufacturer's suggested retail ranges from $24,340 for the 2WD CE to $37,665 for the AWD Limited model. The total Sienna average manufacturer's suggested retail increases $35

Toyota Plug-In Hybrids Hit The Road In U.S., Japan

2007-07-31T17:57:00.000-07:00

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

2007-07-30T06:05:00.000-07:00

Porsche demonstrates Cayenne SUV hybrid prototype

2007-07-27T17:45:00.001-07:00

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

2007-07-26T09:08:00.000-07:00

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

2007-07-26T06:29:00.001-07:00

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.

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.

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.

How to Set a New Car Budget - Auto Loan and Beyond

2007-07-25T08:15:00.001-07:00

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”

2007-07-25T03:12:00.000-07:00

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

2007-07-24T20:04:00.001-07:00

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 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

2007-07-23T19:15:00.000-07:00

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

2007-07-20T18:56:00.000-07:00

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

2007-07-20T00:16:00.000-07:00

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.

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.

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.

Cheap Chinese Cars For U.S: An Improbable Wish?

2007-07-18T18:17:00.000-07:00

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.

Will Americans buy Chinese cars? Will people opt to buy cheap or will they seek cars with more safety features? Chrysler has stated that the Chery car will be priced at $10,000. However, Chery has said that the car will carry the price tag of only $7,000. More interestingly, it states it will be available in the U.S. in 2008.

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

2007-07-18T08:18:00.000-07:00

Honda is enjoying strong sales growth around the world

Honda, Japan's second biggest carmaker, has announced a major global expansion to meet fast-growing overseas demand.

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

2007-07-17T08:42:00.000-07:00

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.

Believe it or not, the auctioneer, Gooding and Company, claims that the car has had only three owners.

Ford Seeking a Future by Going Backward

2007-07-17T01:51:00.000-07:00

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

2007-07-16T10:13:00.000-07:00

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

2007-07-15T09:22:00.000-07:00

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

2007-07-15T09:20:00.002-07:00

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

2007-07-15T09:20:00.001-07:00

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.

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

2007-07-15T09:19:00.000-07:00

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.

Driving Green: 10 Ways to Be More Eco-Friendly on the Road

2007-07-15T09:18:00.000-07:00

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

2007-07-15T09:17:00.000-07:00

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.

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

2007-07-15T09:16:00.000-07:00

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.

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

2007-07-15T09:15:00.000-07:00

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

2007-07-15T09:14:00.000-07:00

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.

Driving Green: 10 Ways to Be More Eco-Friendly on the Road

2007-07-15T09:13:00.000-07:00

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.

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

2007-07-15T09:11:00.000-07:00

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.

The next time you shop for a new vehicle, shift efficiency higher on your list of priorities. Don’t miss the EPA mileage and annual fuel cost figures posted on the window sticker. A 2007 Honda Civic Hybrid (49/51city/hwy mpg) posts an annual fuel cost of $795 versus $2,484 to drive exactly the same distance in a 2007 Ford Explorer (14/20 city/hwy mpg). You can find more EPA data by vehicle at www.epa.gov/greenvehicles/ and www.fueleconomy.gov.

Bravo, Cinquecento!

2007-07-15T07:36:00.001-07:00

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

2007-07-14T20:00:00.000-07:00

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.

2008 Mitsubishi Endeavor Gets Safer, More Features

2007-07-13T19:38:00.000-07:00

The 2008 Mitsubishi Endeavor continues to add popular premium features.

The 2008 Endeavor's standard features list now includes Anti-lock Braking System, Active Skid & Traction Control, and a power steering oil cooler usually found on high performance or specialty vehicles. Building upon the equipment first offered in the 2007 Endeavor Special Edition, a new 2-tone leather interior will be available in November. Additional interior enhancements for Endeavor include a black center dash panel, updated door trim, and accent stitching added to the leather shift knob & steering wheel.

Changes for 2008:

Exterior:
* Rear glass no longer opens independently of rear hatch on LS model
* Three new colors: Rave Red, Quick Silver, and Canyon Beige
* New exhaust finisher

Interior:
* Two-toned leather seating surfaces for SE trim level; Suki beige with black bolsters
* Leather covered steering wheel and shift knob now trimmed with Suki beige stitching

Safety:
* Active Skid and Traction Control standard on all 2WD and AWD Endeavors

Additional Mechanical or Content Enhancements:
* The 2WD and AWD Tow packages now include a power steering fluid cooler

GM Offers 2.9% Incentive On Select Used Models

2007-07-13T10:10:00.000-07:00

DETROIT - GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used vehicle brand*, announced today a new nationwide rate incentive program on select GM Certified Used Vehicles, including the Chevrolet Impala and Pontiac Grand Prix.

The new rate incentive offer is effective July 10, 2007 through Sept. 30, 2007. Well-qualified buyers are eligible for 2.9% APR or 4.9% APR financing for terms up to 60 months from GMAC Financial Services on select GM Certified Used Vehicles purchased from participating GM Certified Used Vehicles dealers.

Well-qualified GM Certified customers can receive GMAC 2.9% APR financing for terms up to 60 months on 2002-2007 models of Chevrolet Impala and Pontiac Grand Prix. Or well-qualified customers can receive GMAC 4.9% APR financing for terms up to 60 months on 2002-2007 models of Chevrolet TrailBlazer and TrailBlazer EXT; GMC Envoy, Envoy XL, Envoy XUV, Envoy Denali; and Buick Rainier vehicles at participating GM Certified Used Vehicles dealers.

For example, with a 10% down payment, a monthly payment at 2.9% APR financing for 60 months is $17.92 for every $1,000 financed and at 4.9% APR financing for 60 months is $18.83.

In addition, qualified GM Certified customers can receive GMAC 5.9% APR financing for terms up to 60 months on 2002-2007 models of Pontiac G6, Buick Lacrosse, Chevy Malibu, Chevy Silverado, and GMC Sierra vehicles.

"These new incentives provide consumers with a range of high-quality certified used vehicle choices at affordable financing rates," said Paul Pejza, manager, GM Certified Used Vehicles. "With a fully-transferable 5-year, 100,000-mile powertrain limited warranty with no deductible and a rigorous 117-point inspection process, GM Certified Used Vehicles give customers tremendous peace of mind and value."

Consumers can go to www.gmcertified.com to learn more about GM Certified Used Vehicles, locate the closest GM Certified dealer or search the industry's largest available certified pre-owned inventory, with 70,000-plus vehicles.

About GM Certified Used Vehicles
GM Certified Used Vehicles, the number-one selling manufacturer-certified brand*, are high-quality, reconditioned vehicles, available at participating Buick, Chevrolet, Pontiac and GMC dealers. All models are six years old or newer, have 60,000 miles or less, are reconditioned to stringent GM Certified Used Vehicles standards and must undergo a rigorous 117-point inspection and reconditioning process. All GM Certified Used Vehicles are supported by a fully transferable 5-year/100,000-mile** powertrain limited warranty with no deductible, three-month/3,000-mile*** bumper-to-bumper limited warranty extension, a three-day/150-mile customer satisfaction guarantee, and 24-hour roadside assistance and courtesy transportation during the term of the powertrain warranty. For more information about GM Certified Used Vehicles, visit www.gmcertified.com.

About GMAC Financial Services
GMAC Financial Services is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and currently employs about 31,000 people worldwide. At Dec. 31, 2006, GMAC held more than $287 billion in assets and earned net income for 2006 of $2.1 billion on net revenue of $18.2 billion. For more information, go to www.gmacfs.com.

Ford Goes Organic, Green, With Vehicle Interiors

2007-07-13T10:05:00.000-07:00

DEARBORN, Mich., -- Scientists at Ford's Research and Innovation Center are hailing a major breakthrough with soy-based polyurethane foam -- the primary substance that makes up a vehicle's seat cushions, seat backs, armrests and head restraints.

While many in the automotive industry are experimenting with a 5 percent soy-based polyol -- one of the many ingredients used to create the foam used in vehicles -- Ford researchers have formulated the chemistry to replace a staggering 40 percent of the standard petroleum-based polyol with a soy-derived material. And they are doing it without compromising the durability, stiffness or performance of the foam.

"Five percent is relatively easy, a nice walk-before-you-run application, but there really isn't a solid business case to do it," says Matthew Zaluzec, manager of Ford's Materials Research & Advanced Engineering Department.

"At 40 percent, which was formulated in our lab by our researchers, we have the ability to make a significant impact on the environment while reducing our dependency on imported petroleum."

Initial projections estimate that using a soy-based foam at high volumes could represent an annual material cost savings of as much as $26 million. As for the potential environmental benefit, according to the National Institute of Standards and Technology, soy polyols have only one-quarter the level of total environmental impact of petroleum-based ingredients.

Friend to the Environment
Ford first showcased its industry-leading work with soy foams in 2003 on the Model U concept, which featured soy-based seat cushions as well as a soy-based resin composite tailgate. Ford's research of possible applications for soybean products, however, actually dates back to the company's early years. The Model T, for example, once contained 60 pounds of soybeans in its paint and molded plastic parts.

"Soy is a very green, renewable resource," says Debbie Mielewski, technical leader for Ford's Materials Research & Advanced Engineering Department. "Using a soy-based foam gives us the opportunity to conserve natural resources and reduce our environmental footprint."

Most automotive manufacturers today use a 100 percent petroleum-based polyol foam. Per year, the U.S. market for this material is 3 billion pounds - 9 billion pounds worldwide. Mielewski says an average of 30 pounds of petroleum-based foam is used in each vehicle produced, making a strong case for auto manufacturers to consider and research other renewable, more environmentally friendly materials to produce the foam.

Conquering Obstacles
To protect its scientific advancements with soy-based foams, Ford has applied for two patents, one for high-content soy foam formulations and the other for a novel, low-odor process to synthesize polyols.

For some time, Ford researchers had been hitting a roadblock with the 40 percent soy-based foam because of its odd odor, reminiscent of vegetable oil. Ford formulation chemist Christine Perry says that issue is now resolved, thanks to a new synthesis method for soy polyol, developed and tested at Ford's Research and Innovation Center. The new process uses room-temperature ultraviolet light instead of high heat and catalysts to make the soy polyol.

"Using high temperatures for the chemical reaction can cause numerous side products, which produce the rancid odor," says Perry. "It also requires a metal catalyst and more energy. With our breakthrough UV process, we have a simple reaction that is readily controlled by time of exposure. Plus, it is inexpensive and reduces the odor."

The actual foam is created by combining the 40-60 blend of soy- and petro-based polyol with an isocyanate cross-linking agent and nine other additives in precise combinations.

"We have done a lot of work on the formulation," says Cynthia Flanigan, a technical specialist with Ford's Materials Research & Advanced Engineering. "Because none of the additives is independent of one another, when you make a change to one, it affects all the others."

Extensive testing of high and low soy percentages revealed that a 40- to 50-percent soy substitution produced a product with properties most similar to the 100 percent petroleum-based polyol foam.

For Ford, the end product is a soy-based foam that exhibits the desired automotive properties for seating applications such as seat cushions, seat backs, armrests and head restraints. The foam's chemistry can be altered as needed, depending on factors such as the geometry of a part or required hardness of the foam.

Joint Effort
Ford is working in conjunction with other organizations and suppliers to bring these innovative technologies to the mainstream as quickly as possible. Several companies have already expressed interest in licensing them. 313-319-8544 cell

Auto parts supplier Lear Corp. has conducted head restraint trials with the 40 percent soy foam, measuring how it performs with a variety of production head restraint tools used for Ford vehicles. Bayer MaterialScience LLC has made significant contributions to the foam's formulation development.

For the past three years, the project has received funding from the United Soybean Board, a group of farmers and leaders that oversees investments in soy-based technologies. To date, Ford is the only auto manufacturer financially supported by the United Soybean Board.

"We are certain that many of Ford's competitors are watching the company's efforts very closely with the idea of emulating any success Ford has with soy-based cushioning," says Todd Allen, chairman of the USB's New Uses Committee. "We believe that when the first soy foams are introduced on Ford vehicles, that will have a snowball effect on the usage of soy polyols by other industries such as agriculture equipment, recreational vehicles, office furniture cushioning and other automotive components."

It's Baaaack: $3 Gas Has Returned

2007-07-12T18:46:00.000-07:00

Today, the national average for a gallon of regular gasoline has hit $3.00 on the dot, according to AAA. The main reason our summer of relative gas peace has been disrupted is problems at the refinery level. A major refinery in Kansas has been shut down after a flood, and gas prices in the Midwest have shot up in one day. USA Today says “as much as 20 cents in one day,” but one of our editors saw regular gas prices jump from $3.03 Monday to $3.45 this morning.

Analysts say the national price will go above $3 later this week.

Next Generation Honda FCX Concept Debuts In Europe

2007-07-12T18:43:00.001-07:00

Honda recently debuted its latest fuel cell-powered vehicle, the FCX concept, in Sweden.

Though the FCX has been around awhile, the latest version has a few interesting modifications. First, the new FCX features fuel cells are laid in a new configuration which allows gravity to drain the water produced by the fuel cell. This helps achieve a higher output.

As a result, the new fuel cell is 20 percent smaller and 30 percent lighter than the current version. The power output, however, is 14kW greater. Overall the powerplant is about 180kg lighter and has a volume that is 40 percent smaller than prior models.

Another improvement is a better low temperature start-up. The FCX can start at temperatures 10 degrees C lower than the current model -- as low as minus 30 degrees C. This new feature is definitely going to be put to the test in Sweden!

Overall, while the new FCX energy efficiency is only about 10 percent better than the current model, it is about three times better than a gasoline engine vehicle and two times better than a hybrid vehicle. Take that, Prius!

Honda says that it plans to release the FCX in limited numbers starting in 2008 in Japan and the U.S.

Ford and Southern California Edison Partner On Hybrids

2007-07-12T18:39:00.000-07:00

Ford is serious about the electric car. And it's willing to partner up to bring such vehicles to reality.

Reuters reports that Ford has announced an alliance with power utility company Southern California Edison (SCE) to help make it happen.

Neither company provided much details. The alliance, like Chrysler and Cerberus, is considered the first of its kind.

Our take? Could we be seeing the first of many tie-ups between other auto makers who are working on development of plug-in electric cars and other utilities who can also benefit in their own way from the technology? If so, it's about time. We've argued that the auto makers, no matter how advanced their cars, ultimately have to stop and refuel. Without the support of an infrastructure, whether it's gas stations or a simple electrical outlet, such cars are simply expensive pieces of metal.

ROSEMEAD, Calif., July 9, 2007 -- The automaker that introduced the world's first hybrid sport-utility vehicle and the electric utility with the nation's largest and most advanced electric vehicle (EV) fleet are combining resources to explore ways to make plug-in hybrid (PHEV) vehicles more accessible to consumers, reduce petroleum-related emissions and improve the cost-effectiveness of the nation's electricity grid.

Describing teamwork between their industries as essential to making progress on energy security and climate change, the heads of the Ford Motor Company and Edison International, the parent company of Southern California Edison (SCE), today announced the nation's first collaboration to examine the future of PHEVs as part of a complete vehicle, home and grid energy system.

"The Ford Motor Company team is firmly focused on delivering products people really want. This unique partnership with Southern California Edison will allow us to explore new solutions for our customers' growing need for energy conservation," said Alan Mulally, president and chief executive officer of Ford. "By combining strengths, ours in hybrid technology, theirs in energy management, we can consider transportation as part of the broader energy system and work to unleash the potential of plug-in technology for consumers."

"The challenges of reducing greenhouse gas emissions and increasing our nation's energy security reach across industry boundaries and unite us in a common cause," said John E. Bryson, chairman and chief executive officer of Edison International. "Partnerships between automakers such as Ford and electric utilities such as Edison demonstrate the innovative leadership position that both companies hold in seeking and finding solutions to global and consumer problems."

New Ford-Edison Vision
Ford and Edison intend to explore many of the potential benefits of widespread PHEV use, which include enhanced energy security, reduced greenhouse gas emissions, lower fuel costs and more cost-effective use of the nation's electricity grid.

Plug-in hybrid electric vehicle technologies are not yet competitive due primarily to the high cost of advanced batteries. Ford and SCE will explore whether these batteries have other uses that could reduce their cost to consumers. For example, a popular vision of plug-in hybrid automotive technology is the potential for owners to charge their vehicles in the evening when the cost to produce electricity is low, and then store and use that energy during peak hours of the day, when electricity costs are high. Advanced batteries also could store energy from rooftop solar panels more efficiently. The two companies will evaluate and model the potential economic value of such innovative uses.

Also, batteries currently have no residual value priced into the purchase cost. Ford and SCE believe it might be possible to develop a market for the untapped value present in used plug-in hybrid electric vehicle batteries at the end of their vehicle life.

And, Edison's nationally recognized Electric Vehicle Technical Center in Pomona, Calif., is testing advanced battery technologies that could further enhance the emergence of future energy storage applications in the utility industry.

Ford-Edison Project to Evaluate Potential Values of PHEVs

- Fueling at the plug instead of the pump would be cheaper for consumers.

As a transportation fuel, electricity is 50 percent to 75 percent less expensive than the equivalent cost of a gallon of gasoline. The diverse mix of energy sources used to generate the nation's electricity supply is priced lower and is more stable than the cost of petroleum.

- The use of plug-in hybrid vehicles holds the promise of reduced greenhouse gases and enhanced energy security.

Plug-in hybrid technology offers the opportunity to use as transportation fuel the nation's growing renewable generation portfolio as well as surplus off-peak power.

Plug-in hybrids produce less carbon dioxide and pollutants than gasoline hybrids. Such environmental and financial benefits will increase as a larger percentage of the nation's transportation needs is fueled from the power grid.

- Using off-peak electricity to fuel transportation could increase grid productivity and help bring down the price of electricity for utility customers.

New Ford-Edison Vision
Each night, a large percentage of America's power generation infrastructure sits idle. A recent study by the U.S. Department of Energy 1 estimated that if every light duty car and truck in America today used plug-in hybrid technology, 73 percent of them could be plugged in and fueled by excess capacity in the electricity grid without constructing a single new power plant.

- Smart plug-in vehicles could become part of an integrated smart home and grid energy system of the future.

Untapped consumer benefits could be obtained by adding to the traditional utility system the energy storage and retrieval capacity of a large number of advanced batteries in plug-in hybrid vehicles. For the first time, excess power generated by home-based units such as rooftop solar generation could be stored and used when needed by the property owner.

Ford-Edison Project Components
- Ford and Edison intend to undertake a multi-million dollar, multi-year PHEV evaluation and demonstration program.

- Ford will provide SCE with a demonstration fleet of 2008 Ford Escape Hybrid SUVs that will be benchmarked for performance characteristics. The Escape hybrid platform will then be engineered by the Ford product development team, with a battery company partner yet to be named, to be fully PHEV capable.

- Some of the vehicles will be evaluated in typical customer settings in order to model overall home and grid values this technology could tap.

- Additional project funding may be sought from participants such as the Electric Power Research Institute, the U.S. Department of Energy, the California Energy Commission and the South Coast Air Quality Management District.

- Ford will initially work exclusively with SCE to develop the testing procedures and define its initial demonstration fleet. As Ford's plug-in hybrid program grows, the automaker will look for broader participation as it develops a business model not just for Southern California, but potentially nationwide. SCE has worked for more than 20 years with all major automakers and will continue seeking alliances between the two industries that advance plug-in hybrid technology.

New Ford-Edison Vision

Related Facts

- Ford was the first American auto manufacturer to develop and produce a hybrid SUV, the Ford Escape Hybrid. This full hybrid is now in its fourth year of production.

- Ford is pursuing a portfolio of advanced technology solutions to address energy security and climate change concerns, including refinements in gasoline fueled engines and advanced transmissions, clean diesel, biofuels and flexible fuel vehicles, hybrids and hydrogen fuel cells.

- The electric grid is the only alternative fuel infrastructure accessible to every U.S. home.

- SCE's EV fleet has traveled more than 14 million miles since the mid-1990s. Since the inception of SCE?s EV program, company vehicles have avoided the consumption of more than 700,000 gallons of gasoline and avoided 7,500 tons of global warming carbon dioxide emissions and more than 1,700 tons of air pollutants.

- SCE's Electric Vehicle Technical Center, founded in 1993, conducts extensive plug-in electric vehicle battery testing with major battery manufacturers and the DOE to evaluate system reliability in both mobile and stationary applications.

Ford Focus In China Equals Profits

2007-07-12T09:19:00.000-07:00

The Free Press reports show that Ford sales in China jumped 25 percent to a little over 93,000 cars and trucks. Ford offers not only Ford and Lincoln models, but sells from its Premiere Automotive Group (Volvo, Jaguar and Land Rover) in the country as well. The company plans to introduce the third generation Ford Mondeo, a premium midsize to large car normally sold only in Europe, into the Chinese market later this year.

However, much of its success in the Middle Kingdom is due to the refreshed 2007 Ford Focus. Manufactured in Chongqing, China since the third quarter of 2005, the Focus has reached sales of 55,676 in the first half of this year.

Ford also owns 30 percent of Jiangling Motors, a manufacturer of commercial vehicles as well as other products; it has a 50-50 joint venture with Changan Automotive. Ford, Changan, and Mazda came together this year to create an engine plant which has been working since April.

More details can be found at the link above. Our take? We would not be surprised if Ford follows Chrysler's direction and imports Chinese-manufactured Ford vehicles into the U.S. one day.

How to Save Gas and Save Money With a Few Simple Checks

2007-07-10T18:53:00.000-07:00

Most people don't know that problems with the way their car performs can end up costing them good fuel economy. If the car you drive is not running at its best then you are loosing money and fuel economy every time you drive.

On a monthly basis if you check a few simple things you can prevent gas robbing problems. In addition, as an added benefit, you might be preventing future costly repair bills.

More importantly, by performing this monthly check, you will keep your car is as safe as it can be. You can identify and correct problems that if left alone could lead to critical car failures that could end up causing accidents and injury.

Most maintenance should be left to the professionals. However, once a month you should perform the following checks to help identify and head off problems that can cost you fuel and money down the road:

1. Check tire pressure and look for signs of uneven wear or embedded objects that can cause air leaks. In winter, check tire pressure whenever there is a sharp change in temperature.

2. Check for fluid leaks. Look around the car and especially under the car around the engine. If you see fluid then you should attempt to identify it. One way is by its color. Coolant is a bright yellowish green color, Transmission fluid is usually pink, Oil is black and brake fluids and power steering fluids are generally clear, with a slight tinge of brown . These fluids are all oily to the touch.

3. Check the level of your fluids. This would entail the engine oil, the engine coolant, the transmission fluid and the power steering fluid. Make sure you top off any that are low. Check with the owner's manual to make sure you are doing this properly.

4. Check for a few other things while you have the hood open. If you see cracked or leaking radiator hoses or if you notice cracked or split spark plug wires you should get them fixed immediately. Check the hose clamps to make sure they are tight. Lastly check the battery for signs of corrosion. Make sure to check where the cables attach to the battery.

5. Check for problems with the brakes. On a straight, flat and traffic-free stretch of road, rest your hands lightly on the steering wheel and apply the brakes gradually. If the vehicle swerves to one side, one of the brake linings may be worn more than the other, or the brakes may need adjustment.

6. Use a similar test to check for problems with wheel alignment. On a straight, flat and traffic-free stretch of road, rest your hands lightly on the steering wheel and drive at an even speed. If the vehicle pulls to one side, the wheels may be misaligned.

These are the basic things you can check on your car monthly. Doing this will keep your car running at its best. A car that is running properly will save you gas, save you money and keep you safe!

Ford Taps Utility to Test Plug-In Hybrids

2007-07-10T17:47:00.000-07:00

GM may have the flashy Chevy Volt concept, but it seems Ford has taken the first step to test plug-in hybrids in the wild. Ford has teamed with electric utility California Edison to test its new plug-in hybrid technology starting this year, with as many as 20 vehicles on the roads by 2009. The company not only wants to test the cars themselves, but also the impact they have on the power grid.

A plug-in hybrid uses an electric motor to power the car with batteries that can be recharged by plugging in to an electrical outlet. A gasoline generator or small engine is used to charge the batteries when they run out of energy and the driver can’t stop to recharge.

Ford debuted a plug-in hydrogen hybrid earlier this year in an Edge SUV, but the company has been quiet about a gasoline version. Supposedly, the test vehicles will be Ford Escapes. We’re glad to see this real-world test run taking shape and will follow it closely.

Honda Fit To Receive Weather, Traffic Reports

2007-07-10T17:42:00.000-07:00

According to the International Heral Tribune, Honda boasts a new navigation system that, besides providing maps to the quickest routes to destinations and traffic jams, also shows earthquake information and inclemental weathers such as heavy rains.

The navigation system, which will available on the all-new Honda Fit compact (pictured), has also been improved to obtain map downloads in just minutes. Before drivers had to exchange discs that contained the map data. While the service is free, people will still have to pay extra to mobile phone companies for the data which costs between $6.00 to $8.00 for a data transmission card per month. Reports say that over 500,000 drivers use the navigation service and about 40 percent of Honda owners.

Right now, the new system will be offered in Japan only. No plans to take it overseas to say the U.S.
or Europe.

Our take? Mark our words: we'll be seeing the new system in the U.S. and Europe within the next two years either from Honda or competitors such as BMW.

New AAA Survey Shows Teens Admit to Risky Driving Behaviors

2007-07-10T09:09:00.000-07:00

A new survey on teen driving done by AAA and Seventeen magazine says that 61% of teens freely admit to risky habits while driving a vehicle including text messaging, talking on cell phones, speeding and drinking and driving.

The nationwide survey of 1,000 16 and 17-year-old teen drivers conducted in April reveals that:

--  66% say they have exceeded speed limits by 10 mph or more
--  51% talking on the cell phone while driving
--  46% text message while driving
--  11% have driven after drinking alcohol or using drugs

"Motor vehicle crashes are the leading killer of teens and these types of behaviors can set the stage for tragedy," said Patrice Frazier, managing director of community affairs for the Automobile Club of Southern California. "Teens are inexperienced drivers who need to focus on driving and not be distracted by friends or other activities."

California's Graduated Driving License Law requires teens not to carry passengers under the age of 20 or drive between 11 p.m. and 5 a.m. unless accompanied by a licensed driver age 25 or older for the first year after they receive their license (or until they reach age 18).

"Parents can help teens become better drivers," said Frazier, "by exhibiting good driving skills and avoiding distractions like electronic devices while driving. Parents should talk to their teens about why it's important to focus on driving, obey traffic laws and make cell phone calls or text message only when they reach their destination."

The Auto Club offers teen driving classes through the Auto Club Driving School. Information is available at AAA.com. DriverZED, a DVD driving risk assessment program for teens, is available at Auto Club offices for $5 for members and $7 for non-members.

Infiniti Enters Chinese Auto Market

2007-07-10T03:31:00.001-07:00

Infiniti, a new and ambitious luxury brand, became one of the best sellers in North America soon after its launch, with customers responding to its vibrant design, exhilarating performance and special customer care philosophy.

Infiniti has now arrived in China, ready to redefine the concept of luxury and launch a new era in the nation?s luxury car market.

"The China business is crucial for Infiniti's global expansion and the smooth implementation of Nissan Value-Up," said Yasuaki Hashimoto, Corporate Vice President of Nissan Motor *** Ltd., who took part in the grand opening ceremony with Yukihisa Kayashima, President of Nissan (China) Investment *** Ltd, Mr. Cai Yingjie, Vice President of Yongda Group, and Mr. Xu Yue, General Manager of Shanghai Yongda Infiniti dealership. During the opening ceremony, the ritual of key delivery was also held for Infiniti's first car owner.

"Infiniti has been well received in the marketplace thanks to its vibrant design, exhilarating performance, modern luxury experience and premium quality, as well as its Total Ownership Experience customer care philosophy," said Yasuaki Hashimoto. "Infiniti's worldwide customers are innovative, ambitious and successful people. We are also expecting many of the same kind of customers in China. Cumulative Infiniti global sales have so far topped 1,100,000 units. Today, we are so excited to see that Infiniti has taken a major step forward in China. We hope that Infiniti can achieve great success in this market."

Independent comparison tests show that, in terms of performance and driving experience, Infiniti has many strong advantages over its competitors. In addition, Infiniti also has a unique and advanced customer care philosophy -- Total Ownership ExperienceTM, and has been awarded as one of the brands achieving the highest customer satisfaction.

Shanghai Yongda Infiniti dealer shop offers warm welcome
The new Infiniti dealership is designed to make every visitor immediately feel warm and comfortable the moment they enter. Infiniti believes that it does not just sell products, but offers a 'redefined luxury experience' thus making the customer feel at home, bringing to life Infiniti's Graceful strength concept.

Even the smallest detail has been taken into account in the design of the Shanghai Yongda Infiniti dealer shop. The exterior is covered with transparent steel glass and expressive rounded curves on the top, like a giant sailing ship, while a striking Infiniti logo shines day and night. The G35 luxury sports sedan and FX luxury SUV, masterpieces of the Infiniti line-up, have prominent places in the showroom. Warm-colored sofas in the exhibition area further enhance the overall feeling of comfort.

Infiniti Retail Environment Design Initiative (IREDI) -- new definition of luxury experience
"All Infiniti dealerships will be built based on Infiniti Retail Environment Design Initiative (IREDI), Infiniti's unified global standard. We believe that our dealers will be able to bring the greatest satisfaction to customers through their commitment to the Total Ownership Experience philosophy -- even exceeding the expectations of luxury customers," said Mr. Kayashima.

The IREDI concept was established in 2005 and first applied at an Infiniti dealership in Korea in July 2005. The standard has now been applied in many Infiniti dealerships around the world. It is expected that 18% of Infiniti dealerships in the U.S. will adopt IREDI by the end of FY2007, and the number will reach 60% by 2010.

The IREDI concept includes two aspects: First, a dynamic exterior is required, but it should not give people a sense of distance. A glass wall and Infiniti logo with strong visual impact at night are the most typical features. Second, in the interior, the lobby should be spacious and modern, the rest area should be warm and relatively separate, and the exhibition area requires an artistic layout. The core value of the IREDI concept is to promote continuous sales and profit growth, enhance Total Ownership ExperienceTM and strengthen customer loyalty.

Total Ownership ExperienceTM (TOE)
Total Ownership ExperienceTM(TOE), Infiniti's customer care philosophy, is promoted to a higher level by IREDI. TOE will bring precious added value to Chinese consumers, including a 4-year/100,000km new car warranty, 24-hour road assistance, CCC(Customer Care Center, high-quality insurance service, etc. TOE aims to build a good, long-term relationship with customers. Customers get premium service the moment they enter the Infiniti dealer shop, and such service will continue throughout the whole process, from pre-sales to after-sales.

Infiniti started its sales in China from July 1st. The first few models are G35 sedan and FX35/45 SUV. G35 Base is priced at RMB448,000, G35 Premium at RMB478,00, while FX35 Base is priced at RMB638,000 and FX35 Top at RBM678,000 and FX45 Top at RMB808,000.

Press release via Nissan/Infiniti

Chrysler, Ford, GM, See June Sales Down. Again

2007-07-10T03:26:00.000-07:00

According to the Detroit News, General Motors sales for June dropped a disturbing 21.3 percent in comparison with June of 2006. Ford's sales drop was not that dramatic. It dropped 8.1 percent as compared to last year and Chrysler faired best although its sales declining 1.4 percent. GM blamed its reduction to a planned reduction in fleet sales. In addition, comparison of June 2007 to June 2006 is difficult and somewhat unusual because in June 2006 the company offered a promotion -- a big 72 hour sale.

GM also pointed out that Toyota offered a promotion of its own, offering zero percent financing for 60 months to promote the sale of pickups. GM claimed that this action cut into its pickup sales for the month. The figures show that the Chevrolet Silverado and the GMC Sierra, GM's top selling pickups, had a decline in sales of more than 20 percent. On the other hand, the Toyota Tundra experienced an amazing jump in sales of 146.3 percent.

Overall, Nissan showed an impressive jump in sales of 22.7 percent over June of 2006. Toyota gained 10.2 percent. Honda increased by 11.5 percent.

Ford continues to hold the number two position in sales in the U.S. in June and for the first half of 2007 while Toyota holds down third place.

Wireless, Not Fuel Economy, Drives Future Car Development

2007-07-09T19:23:00.000-07:00

We don't think there is anyone in this great country of ours -- male or female -- who doesn't like the tech gadgets (or gizmos) that keep showing up in aftermarket stores or in the new cars. Especially the luxury cars.

And the automakers know it! Man, do they know it! And they are falling all over each other to pack their new cars with as many gadgets (or gizmos) as they can. There are safety gizmos, security gizmos, navigation gizmos, entertainment gizmos and even infotainment gizmos. According to the Associated Press (via mLive), analysts predict that more than half of all the new vehicles produced in the next seven years will have technologies that will connect them to "the outside world".

General Motors offers Onstar while BMW kowtows to its segment with Assist. Ford will be introducing a technology tie-in with Microsoft called Sync. The new technology, which is supposed to be introduced this fall on the Ford Focus and on 11 other models during the 2008 model year, uses voice recognition and steering wheel controls to allow the driver to control and listen to music coming from an iPod or other digital music player and to hear text messages on their cell phone read to them.

But Sync can do more, much more. The technology could permit the vehicle to receive software "fixes" through wireless downloads or provide electronic manuals that allow the car's owner to literally "ask" their vehicle questions about performance or maintenance. Parents will be able to track the family car when it is driven by their child and the system will alert the parents via text message if the car leaves an area or is driven more than a certain speed. To upgrade the system all you will need is to update the software.

Sync also offers other features, but they are not technically telematics features because Sync does not use two-way communication.

According to reports, the U.S. market for gadgets in the car is expected to grow from $3.5 billion now to between $12 billion and $16 billion by 2012-2014.

Our take? With today's technology, the sky could be the limit. Actually, the limit will be what car buyers want or what they are willing to tolerate.

Saturn Outlook Is Crossover Hit Among Consumers

2007-07-09T19:21:00.001-07:00

This time it is the Saturn Outlook crossover which has placed in two categories of the Consumer Reports. The SUVs go through 50 tests and evaluations which measure such things as acceleration, braking, and ease of use of the vehicles' controls and displays.

The August issue, which rates SUVs, ranks the Outlook third in the midsize SUV category behind the highly popular Toyota Highlander Hybrid and the Honda Pilot. In addition, the Outlook ranked second behind the Mercedes-Benz GL450 in the large SUV category.

Our take? So far, 2007 is looking like the year of Saturn as Outlook joins the Sky roadster and the Aura sedan (North America's Car of the Year) as another hit for the GM brand. Let's hope that, unlike Saturn's prior incarnation with its Ion, that GM doesn't drop the ball this time.

You can save 14% when you buy gas

2007-07-09T04:04:00.001-07:00

There is a strategy that can save you 4 percent, 5 percent, 10 percent or even 14 percent of your gas purchases. If you are a smart consumer you can save a lot of money.

This method utilizes credit cards that offer rebates on fuel or other gas station purchases. The correct card can substantially lower your cost of gas. You save without having to do any maintenance on your car. This savings method costs nothing at all.

Gas companies still need to compete for your business. They don't compete on price so they have to use other methods. One method used from time to time is credit cards with rebates. The average card will rebate you 10% on your purchases at their stations. Included in those purchases are your purchases for gas. The 10% rebate is usually the first two or three months that you have the card and after that the rebate changes to 5% on your gas purchases thereafter.

For example currently BP has a credit card that will pay 10% for the first 60 days for BP gas purchases and 5% for BP gas purchases after 60 days. These cards generally offer 1% rebates on other purchases and can be used anywhere Visa or MasterCard is accepted.

The credit card explained above is specifically for BP branded stations. You can not have a rebate at other stations. Instead of a gas company card a general market card might be a good choice if you need to use many different branded stations.

Generally most credit card companies have gas rebate plans. One such company is Discover Card. They currently issue a Discover Gas Card. This credit card will provide a rebate of 5 per cent of your gasoline purchases. The Discover card generally gives you a 1 per cent rebate on other items you purchase.

More examples: Chase has a gas Card that will give you a rebate of 6% for gas purchases for the first 60 days and then gives you a 3% rebate. Citicard has a similar program.

Both types of cards, the ones that provide savings only at specific company stores and the general market cards have advantages and disadvantages. The advantage to using a general market card is that you can use the general market card to buy fuel at any station and get the rebate. The card issued by the gas company only pays you the rebate at the gas company's branded gas stations.

The general market credit card only pays 6% even at it's highest rebate, but the gas company issued card provides 10 percent rebate for the initial period. In this instance the advantage on the size of the rebate is with the gas company card.

That above strategy will get you a discount of 3 percent up to 10 percent. 3% is good and 10% is even better, but what about getting the savings up to 14%? There is a trick you can utilize to do that.

Pre paid gas cards or gasoline gift cards are sold at most gas stations. Usually these prepaid cards are discounted. You may have to wait for certain promotions but in general you can find one that is discounted. For example by spending $48 on a $50 gift card, you can use the card for $50 worth of gas but it only cost you $48.00.

The net result for paying a lower price for more gas can be restated as a discount on the gas. Paying $48.00 for a $50.00 gift or prepaid card is equal to a 4% discount.

If you purchase the gift or prepaid card with the gas company card during the initial period you are getting a 10% rebate on that purchase.

If you purchase a prepaid card that provides a 4% discount, the $48 dollar card for $50 dollars worth of gas, you are adding to your savings.

You are getting a 10% rebate on the prepaid card purchase using the rebate credit card and you are getting a 4% savings by purchasing the prepaid gift card. Therefore the total you are getting is 14%. The 10% savings + the 4% savings or 4+10=14. Now you have just saved yourself 14% on your gas purchase.

Nissan drives into Russian market

2007-07-09T03:04:00.000-07:00

Nissan is hoping to cash in on the booming Russian market

Japanese carmaker Nissan has begun building work on a multi-million dollar car plant in Russia.

The $200m (£99.5m) St Petersburg plant will open in 2009, employ 750 people and produce 50,000 cars a year.

Russia's booming economy and fast growing market has attracted a number of carmakers in recent years - most notably Toyota, Renault and Kia Motors.

Accountants PricewaterhouseCoopers have predicted that the Russian car market will be worth $96bn in sales by 2011.

"This is a significant step for Nissan in Russia," Nissan executive vice president Carlos Tavares said at a ceremony to mark the start of work on the site.

"Geographic expansion is very important to us."

Nissan, Japan's second-largest carmaker, will assemble X-Trail 4x4 cars and Teana saloons at the site for sale exclusively in Russia.

Building of the plant comes almost a month after Nissan said its bosses would not be paid bonuses this year after the group suffered an 11% drop in profits, the first decline in seven years.

2008 Chevrolet Malibu Hybrid To Debut At All-Star Game

2007-07-09T03:00:00.000-07:00

SAN FRANCISCO -- The all-new 2008 Chevrolet Malibu Hybrid will join baseball's other stars as it makes its world debut in the All-Star Fan Zone today. The Malibu Hybrid's appearance continues through the last out of one of MLB's highlights of the year.

Thanks to an affordable hybrid powertrain option, the all-new 2008 Chevrolet Malibu Hybrid not only will be the most refined new midsize sedan in the neighborhood, but one of the most fuel-efficient, as well. Powered by the GM Hybrid System, the first-ever Malibu Hybrid delivers an EPA rating of 24 mpg city and 32 mpg highway -- a two-mpg increase over the non-hybrid four-cylinder model -- and will be Chevrolet value-priced, offering customers an affordable hybrid choice.

"The beauty of the Chevy Malibu Hybrid is that customers don't have to choose between a stylish, expressive, fuel-saving sedan full of standard content and the gasoline that goes in the tank," said Chevrolet General Manager Ed Peper. "The Malibu Hybrid's winning package of uncompromising design and fuel economy will help us assert leadership in the midsize sedan segment and meet the needs of Chevy customers."

Production of the Chevrolet Malibu Hybrid is scheduled to begin in October, with vehicles arriving in dealerships shortly thereafter. The system will be available as a powertrain option on the base LS model, which also features Electric Power Steering, Automatic Climate Control and the StabiliTrak electronic stability control system.

The GM Hybrid system featured on the Malibu Hybrid saves fuel by using sophisticated controls and software, as well as a unique, 36-volt electric motor/generator mated to GM Powertrain's 2.4L Ecotec VVT four-cylinder engine and Hydra-Matic 4T45 four-speed transmission. The GM Hybrid system maintains the vehicle's sporty feel and seamlessly reduces fuel consumption by:

Shutting off the engine when the vehicle is stopped, to minimize idling
Restarting the engine promptly when the brake pedal is released
Enabling early fuel shut-off during vehicle deceleration
Capturing vehicle kinetic energy during deceleration through regenerative braking to charge the advanced nickel metal hydride battery
Performing intelligent battery charging when it is most efficient

The GM Hybrid system provides additional power, when required, during launch from the electric motor/generator. At wide-open throttle, such as during a passing maneuver, the system enhances acceleration by using the motor/generator to bolster the gasoline engine and achieve maximum power.

The GM Hybrid system also is designed to automatically maintain full accessory functionality -- including climate control -- when the vehicle is stopped, so that hybrid operation is seamless to the driver and passengers. The Malibu Hybrid delivers an appropriate balance of fuel economy and cabin comfort with an air conditioning system with two selectable modes. The Hybrid A/C mode favors more fuel-efficient performance by limiting the draw on the hybrid powertrain, while the normal mode provides maximum passenger comfort in hot climates and enhances defogging performance.

Malibu Hybrid models make a statement away from the gas pump, too, thanks to specific exterior appointments such as 16-inch low rolling resistance tires and unique hybrid badging. Inside, a special gauge cluster provides information and feedback about the hybrid powertrain's operation.

The 2008 Chevrolet Malibu Hybrid is covered by GM's five-year / 100,000-mile powertrain warranty, the most comprehensive in the industry. In addition, the Malibu Hybrid?s advanced nickel metal hydride (NiMH) battery pack is covered by an eight-year / 100,000-mile warranty.

Suzuki Moves College Graduates With $1000 Car Discount

2007-07-06T07:39:00.000-07:00

Now, in partnership with its U.S. dealers, Suzuki's automotive division is working to make a new car purchase both easier and more affordable. Recent graduates from an accredited program can enjoy an additional $1,000 cash discount on the purchase of any new Suzuki vehicle. Not only will new grads get a reliable, stylish car or SUV, but the discount will help to free up some oft-needed cash for things in life that don't come with a generous discount, such as rent, food and gas. Suzuki's College Graduate Incentive Program is the most generous such incentive in the industry, and doubles the incentives offered to graduates by many other auto manufacturers.

"Suzuki recognizes college graduation as a major accomplishment, and we want to offer the most supportive programs to those buyers," said Gary Akin, vice president of sales, ASMC. "We're happy to extend this unique incentive program to the many deserving graduates across the country, and encourage them to become even more familiar with our increasingly diverse portfolio of vehicles."

Students who earn their degrees up to six months prior to or up to two years after the date of graduation may apply the $1,000 incentive toward their ASFS loan. To learn more about Suzuki's college graduate program and receive a certificate of redemption to take to local Suzuki dealers, go to www.suzukiauto.com/collegegrad.

The Fine Print: Graduates of an accredited U.S. two-year or four-year college, university or nursing program may be eligible after meeting ASFS requirements, including verification of employment beginning within 90 days of finance approval. The accredited institutions are listed at http://ope.ed.gov/accreditation/ through a link at the bottom of the page http://ope.ed.gov/accreditation/Search.asp.

2007 Suzuki Auto Product Line
Beyond Suzuki's all-new midsize crossover, the XL7 (pictured), the company's popular and versatile line of cars and SUVs includes the media-acclaimed Grand Vitara, award-winning SX4 compact crossover, Forenza sedan and Forenza Wagon, and Euro-designed Reno. At the New York International Auto Show in April, Suzuki unveiled the 2008 SX4 sedan, scheduled to arrive in dealer showrooms this fall. Each Suzuki vehicle is designed to match the needs of life enthusiasts, and conveys the company's standout virtues of toughness, leading-edge style and high-end features at very competitive prices. All 2007 Suzuki automobiles are backed by America?s #1 Warranty: a 100,000-mile/seven-year, fully transferable, zero-deductible powertrain limited warranty

Ford Twin-Turbos Target Fuel Economy

2007-07-06T07:32:00.000-07:00

Ford introduced a twin-turbo V-6 engine for the upcoming Lincoln MKS sedan as a concept in January in a totally different car. Now the company is saying not only is this new engine — called TwinForce — on the way, but it will come in the form of four-, six- and even eight-cylinder gasoline engines in the future.

Ford is saying the twin-turbo will deliver diesel-like fuel economy, upward of 25% better than non-turbo engines of the same size.

We’ll reserve final judgment on the plan until we hear more about the actual engines, not just the concept and plans. However, a highly efficient engine that doesn’t sacrifice power for mileage could be just the thing to help Ford come out of its current lull.

Ford Claims Twin-Force Will Save Fuel (AutoWeek)

Mercedes-Benz unveil new C-Class flagship

2007-07-05T07:00:00.000-07:00

July 5, 2007 Mercedes-Benz have released details of the new C 63 AMG. Due to hit the market in early 2008, the high-performance C-Class promises stunning looks to coincide with its impressive performance specs. Powered by a 6.3-litre V8 engine with a peak output of 336 kW/457 hp and maximum torque of 600 newton metres that’s capable of achieving zero to 100 km/h in 4.5 seconds, the V8 flagship model also boasts exemplary handling via a wider track, an all-new front axle, speed-sensitive AMG sports steering and suspension plus a new 3-stage Electronic Stability Program.

The fifth generation of the cooperative venture between Daimler-Benz and AMG, the new AMG C-Class has an electronically limited top speed of 250 km/h and achieves its 336 kW/457 hp output at 6800 rpm from a displacement of 6208 cubic centimetres, bringing it very close to the 470 odd horsepower delivered by its sister AMG C-Class racing touring car in the German Touring Car Championships (DTM). Torque developed by the 6.3-litre V8 engine is said to be 30 percent more than comparable engines in this performance class, reaching a maximum of 600 newton metres at 5000 rpm. The torque curve is also impressive: from 2000 to 6250 rpm the driver always has more than 500 newton metres on call providing powerful acceleration in any engine speed range.

First introduced in 2005, the AMG V8 engine is features variable camshaft adjustment, four-valve technology with bucket-type tappets, a rigid aluminium crankcase of closed-deck design, low-friction TWAS coating on the cylinder contact surfaces and electronically controlled fuel delivery, all contributing to the sporty AMG note.

The AMG 6.3-litre V8 is built in the AMG engine shop on the traditional "one man, one engine" principle. This means that one technician is responsible for hand-assembling a complete V8 engine to the highest quality standards – which is attested to by his signature on the AMG engine plate.

The exterior design includes a new bonnet with prominent power domes along with the trademark AMG radiator grille with a central star and two louvres with chrome inserts. The honeycomb pattern of the grille is also reflected in the large air dams of the new front apron which forms part of the AMG-specific bodystyling. The fog lamps with chrome surrounds are spaced well apart, acting together with the flared front wheel arches to accentuate the width of the car and side air vents in the front apron serve to expel the hot air from the oil coolers.

The cars profile reveals 18-inch AMG light-alloy wheels and the AMG sports exhaust system with two chrome twin tailpipes provide further visual highlights along with the spoiler lip on the boot lid which reduces lift and ensures greater handling stability at high speeds.

Inside the car special AMG sports seats with integral head restraints are added for the first time and the standard upholstery in ARTICO man-made leather/AMG fabric is available in a choice of black or reef grey – or as an option the interior can be further enhanced with particularly high-grade leather in black, reef grey or black/sahara beige. The three-spoke design AMG performance steering wheel is also new with its rim diameter of 365 millimetres and a flattened lower section.

AMG SPEEDSHIFT PLUS 7G-TRONIC The transmission features AMG steering wheel shift paddles and three driving modes: "S" (Sport), " C" (Comfort) and "M" (Manual) differ in their shift characteristics and speed. Gearshifts in "S" mode are around 30 percent faster than in "C", and around 50 percent faster in "M" mode. It’s also the first AMG car to feature an automatic throttle-blipping function during downshifts. This not only enhances the driver’s emotional experience – the almost completely jolt-free downshifting process also reduces the load-change responses and has a particularly positive effect when braking before bends.

Redesigned front axle with 35-millimetre wider track The C 63 derives its handling performance via AMG sports suspension and an all-new three-link front axle design. The stiff configuration of the springs and gas-pressure shock absorbers ensure optimal road contact and low body movements when negotiating bends at speed and the new front axle has a 35-millimetre wider track ensuring lower dynamic wheel loads when cornering. Stability and braking performance is further enhanced by the redesigned wheel location at the front, larger torsion bar stabiliser, new head bearings and dampers with rebound buffer springs

The multi-link independent rear suspension has also been thoroughly re-engineered, with a twelve-millimetre wider track and more camber leading to improved cornering performance. Reinforced drive shafts and drive joints increase fatigue strength and round off the improvements to the rear suspension.

18-inch AMG light-alloy wheels The C 63 AMG is fitted with 18-inch AMG light-alloy wheels in a five-spoke de-sign. Painted in titanium grey, these high-sheen 8.0 x 18 and 8.5 x 18 wheels are shod with wide-base tyres in size 235/40 R 18 (front) and 255/35 R 18 (rear). There's also the option of 19-inch AMG light-alloy wheels.

AMG high-performance braking system Internally ventilated and perforated disc brakes all-round reside behind the spokes of the AMG wheels. The front brakes have size 360 x 36-millimetre discs with six-piston fixed callipers, while deceleration at the rear is by 330 x 26-millimetre discs with four-piston fixed callipers designed to provide greater sensitivity and high fade-resistance.

3-stage ESP with Sport function The C 63 AMG is the first AMG model to feature the 3-stage ESP with a Sport function. This system offers three different control settings: "ESP ON", "ESP SPORT" and "ESP OFF" – the currently active mode is shown in the central display of the AMG instrument cluster. In "ESP ON" mode, the onset of handling instability leads to braking intervention at one or more of the wheels, accompanied by a reduction in engine torque. Briefly pressing the ESP key activates "ESP SPORT". In this mode the braking intervention to counter oversteer or understeer, as well as the accompanying reduction in engine torque, allows a higher dynamic threshold. ESP is restored to its normal function as soon as the brake pedal is operated. Holding pressure on the ESP key activates "ESP OFF". There is no intervention to control the handling dynamics, and no reduction in engine. "ESP OFF" should only be used by experienced drivers on dedicated racetracks. Once again operating the brake pedal restores all the normal functions of ESP. The system’s traction logic is active in all three ESP modes. If one of the drive wheels threatens to spin, specific brake pressure is applied to create the effect of a mechanical differential lock. This means that the engine power is optimally transferred to the road.

Development and design of the C 63 AMG Development of the Mercedes-Benz C 63 AMG began in 2004 when it was first constructed as a digital model. In spring 2005 the first 1:4-scale design models were produced on the basis of drawings and computer images, and in addition the first testing and development vehicles were already built on the basis of the preceding C 55 AMG. This made it possible to test major assemblies such as the drive train, brakes and axles. The latest onboard measuring technology provided valuable data such as engine oil, coolant and brake disc temperatures – but other aspects of interest were lap times e.g. on the north loop of the Nürburgring, as well as measurable, precisely defined handling manoeuvres to provide comparisons between different axle configurations. These tests were accompanied by extensive aerodynamic tests on the bodyshell of the C 63 AMG before the final design was approved.

Following approval of the concept in the autumn of 2005, the first fully-fledged prototypes of the C 63 AMG were built. At the same time the high-performance saloon was also produced as a digital prototype. Computer simulations made it possible for the "real" development prototypes to exhibit a very high level of maturity during the first rollout. These simulations included the most important vehicle functions - handling dynamics, the engine and drive train, bodyshell durability, suspension performance, passive safety, the engine’s thermal characteristics and performance/fuel consumption.

The AMG development and test programme for the C 63 AMG began in summer 2005. Over the next couple of years around 20 vehicles were dispatched all over the world from Mercedes-AMG GmbH in Affalterbach, to be subjected to strenuous tests in every climatic zone. Major test stages for the drive train included altitude tests in Denver, Colorado (USA), Lesotho (South Africa), Mont Ventoux (France) and Granada (Spain), High temperature tests in Death Valley, California (USA), Upington (South Africa), Idiada proving ground (Spain) and Phoenix, Arizona (USA), driving trials in Los Angeles, California (USA) and cold temperature tests in Arctic Falls (Sweden). The cooling, fuel and braking systems underwent similar stringent testing around the world along with endurance testing on a wide range of roads and proving grounds.

Toyota develops active head restraint to reduce whiplash injuries

2007-07-04T09:09:00.000-07:00

July 4, 2007 Toyota has developed an Active Headrest that reduces the stress on the neck during low-speed, rear impacts. The new head restraint is an extension of the WIL concept seat, in which both the seatback and head restraint simultaneously cushion the head and lower back to reduce stress on the neck. Specifically, when the occupant’s back presses against the seatback during a rear-end collision, a built-in lower unit triggers the head restraint to move diagonally upward. This action swiftly catches the back of the head, thereby reducing the risk of whiplash injury sustained by the neck upon collision. In-house testing shows it reduces the severity of whiplash injury by 10-20%. The headrest will begin incorporation in new Toyota models in the near future.

Ford and GM see US sales decline

2007-07-03T19:09:00.000-07:00

Struggling US carmakers Ford and General Motors (GM) have both seen a sharp drop in monthly US sales as they continue to fail to win over buyers.

With both blaming the declines on planned cuts in unprofitable sales to rental firms, GM's overall June sales fell 24%, while Ford's were down 8%.

By contrast, their main Japanese rivals all saw their US sales rise last month.

Nissan's monthly sales added 22.7%, while Honda's advanced by 7.3%, and Toyota gained 6.1%.

Chrysler, the third of the "big three" US carmakers saw its June sales decline 1.4%.

Job cuts

Both GM and Ford are continuing with major cost cutting plans as they attempt to turn around their fortunes.

Ford, which plans to sell its luxury UK-based Jaguar arm, is looking to cut 45,000 jobs in North America, while GM aims to reduce its workforce by 34,000 jobs.

Meanwhile, Chrysler is being taken off the stock market by private equity group Cerberus Capital Management in a $7.4bn (£3.7bn) deal expected to be completed as early as this month.

It is being sold by German owner Daimler.

Ford's sales of traditional cars fell 24.6% last month.

By contrast, sales of its light trucks, which includes its sports utility vehicles, added 2.9%.

GM's passenger car sales lost 22.3%, while its light trucks lost 25.6%.

"The bottom line was that it was a tough quarter and a first half that was weaker than we expected," said GM's sales analyst Paul Ballew.

Car poll hails Japanese quality

2007-07-03T00:54:00.001-07:00

Japanese cars are the most reliable, the least polluting and the best to own, according to consumer group Which?

Honda has won this year's Reliability Award, based on a Which? readers' survey of 100,000 cars, beating the Best Manufacturer Award-winner Toyota.

The Green Award went to hybrid champion Toyota, ahead of runner-up BMW, which won the Road Testers' Award.

Some models by US marques Chevrolet, Chrysler and Dodge were criticised due to safety concerns.

Volvo's safety image was let down by concerns about seatbelts, which enabled Ford Galaxy and Toyota Auris to jointly grab the Safety Award.

Lexus won the Ownership Award ahead of Honda, though the Honda Jazz was this year's most reliable individual model.

Safety-conscious car buyers should steer well clear of the Chrysler Voyager, a people carrier, the Dodge Caliber, a medium-sized car, and the Chevrolet Matiz, a rebadged small Daewoo, Which? said.

The only serious non-Japanese contender for the Reliability Award was Korea's Hyundai, which came joint third - alongside five Japanese marques: Daihatsu, Lexus, Mazda, Subaru and Suzuki, with Mitsubishi following closely behind.

Ford and Nissan also scored highly in the reliability stakes, though when considered at a group level they were both pulled down by their sister-marques.

Renault, Nissan's partner, and Land Rover, which is owned by Ford Motor, were at the bottom of the reliability league table.

Volkswagen unveils new Tiguan Compact 4x4

2007-06-30T08:01:00.000-07:00

Volkswagen has taken the wraps off its new Tiguan compact 4x4 which will go on sale in February 2008, following its world public debut at the Frankfurt Motor Show in September. Based on the Concept Tiguan that made its debut at the Los Angeles Motor Show last year, the Tiguan is slightly larger than the Volkswagen Touran compact MPV and an appearance which reinforces its strong links to its ‘big brother’, the Touareg. In the UK, the Tiguan will initially be available with two engines – a 2.0-litre 140 PS TDI diesel which is likely to be the most popular model, and a 1.4-litre 150 PS TSI petrol unit. Later in 2008 a 170 PS TDI and two further petrol engines will become available to order.

The Tiguan is slightly larger than the Volkswagen Touran compact MPV at 4.4 metres long, 1.8 metres wide and 1.6 metres in height. It has a purposeful appearance which reinforces its strong links to its ‘big brother’, the Touareg, with raised suspension, large tyres and true 4x4 styling cues.

In the UK, the Tiguan will initially be available with two engines – a 2.0-litre 140 PS TDI diesel which is likely to be the most popular model, and a 1.4-litre 150 PS TSI petrol unit. Later in 2008 a 170 PS TDI and two further petrol engines will become available to order. Both diesel engines meet the stringent Euro 5 emissions standard that comes into effect in 2009.

S, SE and Sport models will be offered at launch, all with 4MOTION four-wheel drive and an 18 degree angle of approach, a figure that defines the size of obstruction the vehicle can drive over. Customers requiring additional off-road capability can choose a 28 degree angle of approach front end. This model comes with a radiator protection grille, underbody protection, hill descent control and a compass.

UK pricing is expected to start at around UKP 19,000 (US$38,000), with Volkswagen Retailers due to start taking orders for the new car in November.

New smart fortwo BRABUS - 30% more power

2007-06-30T07:53:00.000-07:00

German automotive performance company Brabus regularly graces our pages, most notably by continually breaking its own record for the world’s fastest sedan. The name is synonymous with Mercedes and Smart performance tuning and the company’s latest effort involves the next generation Smart fortwo. With a reengineered 72 kW/98 bhp three cylinder turbo engine the smart fortwo BRABUS and the smart fortwo BRABUS Xclusive have 30 percent more power than before and still boast low fuel consumption. The sporty two-seater accelerates from zero to 100 km/h in 9.9 seconds and reaches a top speed of 155 km/h. Ex factory prices for the pocket rockets range from EUR16,490 (US$22,160) to EUR 22,430 (US$30,150) depending on the equipment line and body type.

The sporty character of the new smart fortwo BRABUS is immediately apparent. For example, it features "Monoblock VI" alloy wheels with wide tyres measuring 175/50 R 16 at the front and 225/35 R 17 at the rear, wider rear wheel arches, a sports exhaust system with centrally positioned stainless steel tailpipes and a body that has been lowered by ten millimetres. In the interior cockpit instruments with specially designed dials, BRABUS sports pedals and a three-spoke leather steering wheel with shift paddles underline the exclusiveness of this model. The transmission and suspension also have a sporty setup.

The smart fortwo BRABUS Xclusive lives up to its name with additional equipment details such as H7 projection headlamps with titanium coloured surrounds, a front spoiler with enlarged air inlets, striking side skirts and a rear apron painted in the colour of the body. The seats are covered with fine leather and are heated. The leather-effect instrument panel features aluminium-look trim components.

Both BRABUS models of the new smart fortwo are available as a coupé or a cabrio.

The turbo engine that has been improved in numerous details is the heart of the new smart fortwo BRABUS. From capacity of one litre the three-cylinder engine now develops 72 kW/98 bhp at 5500 rpm and lends the 770 kilogram two-door car remarkable agility. The weight to power ratio is just 7.8 kg/bhp - 24 percent lower than that of the previous BRABUS variant.

The turbo in-line engine develops maximum torque of 140 Newton metres at 3500 rpm. The BRABUS variant of the smart fortwo sprints from zero to 100 km/h in 9.9 seconds and reaches an electronically limited top speed of 155 km/h.

With combined fuel consumption of just 5.2 litres per 100 kilometres the new smart fortwo BRABUS is one of the most economical cars in its size and power category. Carbon dioxide emissions stand at 124 grams per kilometre.

Delphi gains deal with its union

2007-06-24T07:06:00.000-07:00

Struggling US car parts maker Delphi says it has reached an outline deal with its main union to allow it to cut wages and exit bankruptcy protection.

Although no details have been released, it is understood that the United Auto Workers union has agreed to see hourly wages reduced from $27 to $18.50.

The deal will come as a major relief for General Motors (GM), Delphi's former parent and main customer.

Any strike by Delphi workers would have quickly hit production at GM plants.

Although the agreement still needs to be ratified by Delphi workers, analysts say this is all but a formality.

"We believe this agreement will be a significant milestone in our transformation and a major step towards emergence," said Delphi's chief restructuring officer John Sheehan.

Spun out from GM in 1999, Delphi filed for Chapter 11 US bankruptcy protection in 2005 after racking up huge losses.

Handicapped by high wages and generous healthcare and pensions provision, Delphi has also been affected by cheaper competitors from China and other Asian nations.

GM's own problems

The settlement between Delphi and the United Auto Workers (UAW) comes after more than 20 months of tough discussions, which also included GM representatives.

GM was involved not just because it remains Delphi's main customer, but also because it has had to financially prop up its former subsidiary.

The carmaker estimates that the difficulties at Delphi have cost it more than $7bn (£3.5bn).

GM, which is itself trying to turn around its fortunes after making large losses, now has to seek its own agreement with the UAW.

Chapter 11 bankruptcy projection gives a US firm time to restructure its finances while protected from its creditors.

KPMG 'helping Ford sell Jaguar'

2007-06-24T06:58:00.000-07:00

Ford has hired accountancy giant KPMG to go over the books at its Jaguar and Land Rover subsidiaries, says a report.

If the Sunday Times article is confirmed, it would show that Ford is moving ahead with plans to sell the two UK-based units.

Although Ford has yet to confirm it intends to sell Jaguar and Land Rover, the BBC learned earlier this month that it had already briefed MPs on the move.

No-one at Ford or KPMG was available for comment on the new development.

Falling profits

Ford has so far said it has been studying the future of Jaguar and Land Rover for a year, and that it was neither setting a timeframe for any decision, nor ruling out any options.

Union leaders have voiced concerns about possible redundancies at the two units should their sale go ahead.

Jaguar has about 10,000 staff at sites in Coventry, Birmingham and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire.

Ford, which has been selling assets in a bid to offset falling sales and profits, earlier this year sold Aston Martin.

Analysts say that the sale of Jaguar and Land Rover could raise as much as $1.5bn (£750m).

G.M. to Alter Tiger Woods’s Role in Its Ads

2007-06-24T06:15:00.000-07:00

DETROIT, June 21 — After eight years as the face of Buick, Tiger Woods is still less than half the age of an average Buick owner.

And from now on, General Motors plans to spend less time convincing people that Mr. Woods actually wants to drive a Buick and use him instead as a pitchman in companywide ads for products like OnStar, a communications service offered by all eight G.M. brands.

Mark R. LaNeve, G.M.’s vice president for vehicle sales and marketing in North America, said Thursday that the automaker wants its ads to focus on its products rather than on Mr. Woods.

“I don’t want a celebrity at the very core of any of the brands,” Mr. LaNeve told reporters. “We want the message on Buick to be what Buick’s true north is, which is classic, premium American vehicles. Tiger should be on the periphery helping us do that.”

Mr. Woods, 31, has been with Buick since December 1999. G.M. has signed him to represent the company through 2009, when his five-year contract, reportedly worth $40 million, expires.

Although his prominence has helped Buick gain visibility, experts question whether the millions of dollars that G.M. spends on Mr. Woods has had any real effect on the century-old brand, which now produces just three models. The average Buick buyer is 63 years old, according to the Power Information Network.

“There was just no believability that Tiger was dying to drive a Buick,” said Laura Ries, president of Ries & Ries, a marketing strategy firm in Atlanta.

“The brand personalities just didn’t go together, like oil and water,” she said. “Buick is an older person’s car. Tiger is very young, very cool and at the top of his game. You imagine him driving a Bentley or a Mercedes or a Lexus.”

Mr. LaNeve said such criticism was not a factor in G.M.’s decision to change Mr. Woods’s role, saying Mr. Woods is a “great asset” for the automaker and “does a great job for us.”

Whenever Mr. Woods appears in a future G.M. ad, he will be shown driving a Buick, Mr. LaNeve said. He currently appears in a television spot for OnStar that also features the talk show hosts Kelly Ripa and Jimmy Kimmel; Mr. Woods is seen asking an OnStar operator to unlock the door to his Buick Enclave, the brand’s new crossover vehicle, after inadvertently locking his golf shirt and keys inside.

“He’s got an association with General Motors,” Mr. LaNeve said, “so why shouldn’t we use him beyond just Buick?”

Buick officials said Mr. Woods recently took delivery of a fully loaded Enclave CXL. He also drives a Buick Lucerne and several other G.M. vehicles.

Sale Possible as Ford Considers Its Options for Jaguar and Land Rover

2007-06-16T20:11:00.000-07:00

DEARBORN, Mich., June 12 — First, Aston Martin left the Ford Motor Company fold. Will Jaguar and Land Rover follow?

Ford said Tuesday that it was working with financial advisers to sort out the future of the two British brands, which have been rumored to be up for sale for more than a year.

The comments were the strongest yet from Ford, which previously had denied any plans to sell Jaguar and Land Rover. They come as Ford is trying to reverse a $12.6 billion loss in 2006 and raise money for its restructuring effort.

“As we’ve consistently been saying since last year, Ford Motor Company has been assessing a number of strategic options for all of our operations, as any responsible company would do,” a Ford spokesman, Tom Hoyt, said Tuesday. “Ford is actively investigating its options in terms of other possible actions, and we’re not ruling anything in or out.”

He went on, “We are working with our financial advisers to determine the best future for Jag and Land Rover.”

The statement comes about three months after Ford sold Aston Martin, maker of the sports cars driven by the movie spy James Bond, for $848 million to a group of investors led by the racing mogul David Richards. At that time, Ford said it was not looking to sell the other divisions of its Premier Automotive Group, which include Jaguar, Land Rover and the Swedish carmaker Volvo.

Although Mr. Hoyt did not say directly that Jaguar and Land Rover were being put up for sale, his comments brought to mind remarks by DaimlerChrysler’s chief executive, Dieter Zetsche, as he sought bidders this year for the Chrysler Group.

In February, Mr. Zetsche said that Daimler was considering “all options” for Chrysler, which it sold last month to Cerberus Capital Management.

Mr. Hoyt did not discuss Volvo, but some analysts and industry executives say it, too, could be sold as Ford’s chief executive, Alan R. Mulally, focuses on fixing Ford’s core operations in North America.

Jon Rogers, an analyst with Citigroup, estimated that Ford could get $7 billion for Volvo and $8 billion collectively for Jaguar and Land Rover. Because Jaguar and Land Rover share parts and production facilities, selling them individually could be difficult, Mr. Rogers said.

Ford bought Jaguar in 1989, Volvo’s car operations in 1999 and Land Rover in 2000. It once hoped the luxury division could earn upward of $1 billion a year.

Instead, the Premier group has lost $1.15 billion over the last three years. Ford has said it expects the brands to be profitable this year; they earned $402 million in the first quarter. But analysts said losses most likely had continued at Jaguar. The division has been a constant source of problems for Ford, which purchased it for $2.5 billion.

One potential buyer, Jon Moulton, a managing partner of the private equity firm Alchemy Partners in London, said he was interested in Jaguar and Land Rover “on an emotional level.” But he said he thought that they would command a higher price than he would wish to bid.

In a telephone interview, Mr. Moulton said that he expected an equity firm or a buyer in the Middle East or Russia rather than another car maker to purchase Jaguar and Land Rover. The least likely option, Mr. Moulton said, would be for Ford to retain ownership.

“I think a sale will have to go through,” he said. “Ford’s ability to continue feeding them cash is increasingly restricted. They are two very interesting brand names. Neither of them has really made much money for their owners over the last 20 years, but the allure of them is very obvious.”

Strong Mini demand drives up BMW

2007-06-08T07:43:00.001-07:00

German carmaker BMW saw its group-wide sales rise 7% last month, helped by strong demand for its UK-made Mini.

BMW said sales of the Mini, which was revamped last autumn, rose 14% in May from a year earlier to 19,864 cars.

Meanwhile, sales of the firm's core BMW brand rose 5.8% last month to 108,488, lifted by the popularity of its latest X5 model and new 3 Series coupe.

The Munich-based group now forecasts it will sell 1.4 million BMWs, Minis and Rolls-Royce cars this year.

At BMW's main German rivals, Mercedes-Benz saw its sales grow just 2.9% last month, while those at Audi have added a monthly average of 10% this year.

Last month BMW reported that its profit fell 34% in the first three months of 2007 following heavy investment in new models.

Turned Down for an Auto Loan? There are Options

2007-06-08T07:34:00.000-07:00

(ARA) – In the current climate of declining property values, higher interest rates, and changes in available mortgage products, more and more homeowners are becoming delinquent or going into foreclosure. Many folks are losing their hat, their home and their good credit, through no fault of their own.

In addition, as a result of these challenges, many Americans also face the difficulty of getting approved for a car loan. Crawling out of the hole that a bad credit score creates can take years of persistence and patience. So, what can Americans in that predicament do until their score goes up? And what can they do to help get their scores up?

There are many lenders out there who understand this dilemma and offer an excellent way to start the long process of credit recovery. An auto loan with a trend of on-time payments is a great way to reestablish credit. A great place to start the loan process is online at a site like Car.com, a popular consumer automotive information site committed to helping customers with special finance needs get approved for a loan and into the right vehicle.

Car.com is a free service that works with a nationwide network of finance companies and dealers to help customers with special finance needs. The service connects consumers with a dealer or lender who operates in the consumer’s area, who specializes in secondary finance, and who is dedicated to helping car-buyers get the vehicle they want at a price they can afford. The advantage a site like Car.com provides is that consumers who have been turned down by other dealers or banks have an opportunity to find the right lender for their particular situation online and in the comfort of their own home.

“Knowing we would have to work with a bank that handled ‘second chance’ cases, I thought that they would put us in a cheap car, but this was not the case! They showed us a VW Jetta that was right within our price range and looked and drove like new!” says Kellie M., Waycross, Ga.

A site like Car.com also provides help for students or first-time car buyers, who struggle from the catch 22: How do you get a loan if you don’t have credit, since you need credit to get a loan? Car.com believes that there is a lender for everyone.

Here is how the process works: Click on Car.com to help find your car loan, the online questionnaire only takes a few minutes to complete. Car.com then securely delivers your information to its network of third party lenders and dealers. Loan decisions normally occur within hours. While you’re there, if you need to find out your credit rating, use Experian Automotive to receive a copy of your credit report online.

Also at Car.com you can search for a vehicle, see vehicle reviews, previews, videos, histories and discussions. Find a form, fill out the short application and learn about financing. You can compare vehicles and figure out your payment schedule with an online payment calculator.

To find out what vehicle you will qualify for, fill out the short application at www.car.com, and start improving your credit.

Copyright © 2007, ARAnet, inc.

Scion’s youthful xB good for grown-ups too

2007-06-08T07:29:00.000-07:00

In designing the new, bigger 2008 version of its cult-hit Scion xB subcompact cube, Toyota took a leaf out of General Motors Vice Chairman Bob Lutz’s book.

In “Guts,” which he wrote after his departure from Chrysler in 1998, Lutz outlines his Immutable Laws of Business. Rule No. 1: “The customer is not always right.” That may sound heretical in this age of customer satisfaction, but consider this passage:

“Most people buy subcompacts because that is what they can afford, not because they have some warped desire to sit with their knees up around their chest,” Lutz wrote. “Thus, when asked what they’d like changed about their cars, it’s axiomatic that subcompact owners would like them bigger.”

Lutz even prescribed how much bigger. The number he named — four inches longer in wheelbase — is exactly the amount Toyota has stretched its new Scion xB, even at a time when consumers are showing increased interest in smaller cars.

Why? Because just as Lutz said they would nearly a decade ago, although xB owners love their cars, they want then to be just a little bit bigger explains Steve Haag, Scion’s corporate manager.

Stretching the xB has moved it up a class — from a subcompact to a compact car by EPA standards — and that doesn’t make it a bad car. It’s actually a very good car that is likely to have much broader appeal than its iconoclastic predecessor, but it seems less likely than the old car to serve its intended purpose.

Scion is Toyota’s effort to attract younger car buyers. The Toyota brand is so entrenched with retirement-age baby boomers that the company’s average customer age is looking more like Buick’s. Scion has successfully attracted younger customers, and Haag says Toyota genuinely prefers to sell fewer Scions, as long as they help pull a new generation of customers into Toyota’s camp.

In this regard, Scion’s first three models — the xA, the xB and especially the tC coupe with its average customer age of 25 — have succeeded marvelously. By contrast, Honda’s similarly developed Element SUV failed in this mission, attracting older customers who appreciated its practicality and who might have thought its unorthodox styling made them look young and hip.

By making the new xB a larger, more comfortable, more expensive and more practical car, Scion runs the risk of seeing the average age of its buyers climb as quickly as their cholesterol numbers. The danger is that the intended twenty-something hipster buyers will soon see Scions piloted by gray-hairs on every corner.

Practical-minded customers flock to the Scion xB because it’s a great car at a great price. It employs the versatile small wagon/four-door hatchback body style that packs the most interior space in the least exterior space, and it’s large enough for adults with families to look at it as a fuel-efficient family car instead of a small wagon or SUV.

And while the xB’s increased length means it’s less appealing to drivers faced with the challenges of urban parking, it will be more appealing to older suburbanites wanting to pack in their families.

The xB maintains its cubist exterior design, but the new version sports beveled corners where the old car featured the sheer facets of a cut diamond. These softened edges and integrated bumpers give the new car a fresher, sleeker appearance. Gone is the old car’s petulant lower lip of a front bumper, but the hugely stretched length and extended front and rear overhangs imbalance the car’s proportions, giving it a bit of a dachshund look.

Inside, the xB’s low price mandates hard, cheap surfaces everywhere, but at least those cheap surfaces are textured and have a matte finish. The dashboard feigns continuity with the old car’s useless center-mounted instrument panel, which inconveniently positioned the gauges where they could be read by back-seat drivers, but no one else. The central instrument pod remains, but the large digital speedometer and analog tachometer are offset to the left, bringing them closer to the driver’s normal line of sight.

The larger xB has abundant leg room in both the front seats and the rear, where even with the front seats drawn back there’s still plenty of space. An extra 2.8 inches of width means that unlike the older model the new xB has a back seat that is wide enough for the car to be a true five-seater. The rear cargo hold has also grown, with ample space available behind the back seat. There is plenty of room for a couple child seats and space in back for a stroller.

On the road, the xB’s electric power steering exhibits some of the characteristic numbness and lack of feedback for which such systems are derided, but the expectations in this area aren’t high for an economy car.

The car’s handling is sure and the ride is a clear improvement over that of the old xB, which at times felt busy. The five-speed manual transmission slips slickly from one gear to the next, and the shifter’s location (sticking out from the dashboard — a bit like the Honda Element) puts it in easy reach. The clutch pedal is so light, though, that it’s hard to feel the friction point as the clutch begins to engage.

A bigger, stronger and thirstier 2.4-liter engine moves the xB with far more authority than the old car’s puny, 1.5-liter powerplant, but of course it demands more fuel to do so. It’s hard to compare the mileage of the two cars because the EPA’s tougher test for 2008 models yields lower numbers. In the xB’s case, the score with the new test is 22 MPG in the city and 28 MPG on the highway. That’s good, but not the sort of amazing numbers small car buyers expect.

The xB’s added size and weight have improved its safety. Toyota’s internal tests predict that the Insurance Institute for Highway Safety will rate the xB a “good” in front and side impacts, but Toyota made the same prediction for the new Tundra truck and fell short, so we’ll have to wait and see. The xB also features electronic stability control as standard equipment. It’s proven to dramatically reduce the incidence of crashes, so Scion deserves plaudits for including it.

In keeping with Scion’s aim to involve owners with their cars, there’s a full line of parts to help drivers soup up their xB, and even with lower-riding springs and bigger wheels installed, the xB’s ride and handling are still excellent. This isn’t typically the case for lowered cars. Similarly, an optional cold air intake system and a low-restriction exhaust each boost horsepower, but they don’t spoil the experience by making the car too noisy.

Young drivers who do buy an xB will find these optional extras strongly compelling, as long as they have the extra dough to pay for them. And by giving drivers what they asked for in a larger, more practical car, Toyota has delivered a Scion that’s fit for grown-ups too.

Revisiting the 1957 Sales Numbers

2007-06-07T09:35:00.000-07:00

In the May 20 feature, “Fifty, Finned and Fabulous,” it was noted that in 1957 Ford took the sales title from Chevrolet for the first time.

While that’s generally accepted as true, there is more than one way of looking at the sales numbers in the auto industry that year.

The final tally, according to our trusty reference, the Standard Catalog (Krause Publications), was 1,522,406 for Ford versus 1,515,177 for Chevrolet, a difference of 7,359 units.

Clear enough? Not so fast. The distinction is that Ford sold more 1957 Fords during the 1957 model year than Chevrolet sold of its 1957 Chevrolets.

But Chevrolet actually sold 136 more cars during the 1957 model “calendar year” than Ford.

Confused? The thing was, some 7,359 of the Chevrolets sold during that time period were leftover 1956 models.

From a production standpoint, Ford churned out 1,655,065 of its 1957 model Fords. But the final 132,659 of those wound up being sold outside the 1957 calendar year.

Those carryover models, coupled with a deep recession in the country’s economy, fouled Ford sales for 1958. Oh, and don’t forget the introduction of the Edsel that year. Production of 1958 Ford models dropped to just 967,954 units. Ouch!

Chevrolet handily regained the sales title, even though the recession helped drive its sales down to just 1.2 million units.

A Hybrid of Nonsensical Thinking

2007-06-07T09:20:00.000-07:00

The Honda Accord Hybrid was killed on Monday. Honda will not have an Accord Hybrid in its line when the next-generation Accord arrives this fall.

This was not much of a surprise, since the Accord Hybrid really didn’t deliver on the key reason people buy hybrids: fuel mileage.

But wait, there’s more: The Accord Hybrid, introduced in 2004 with a V-6 engine, cost significantly more than the gasoline version and about $5,000 more than the four-cylinder Toyota Camry Hybrid it competed against. Also, an Accord with a four-cylinder gasoline-only powertrain could get an honest 34 miles per gallon in highway driving. The Accord Hybrid was rated at 35 m.p.g. highway, but in actual driving it was lucky to top 30 m.p.g. The hybrid also needed pricier premium fuel.

So it never sold well. The $31,685 ($2,000 more with satellite radio and navigation) Accord Hybrid was marketed as a performance machine, which Honda concedes was a mistake. Sage Marie, a Honda spokesman, said the company is getting the message that hybrid buyers are primarily interested in high fuel economy numbers. Period. Lexus also had to defend its decision to put hybrid powertrains in its RX, GS and LS lines, which provide strong performance but little (if any) benefit in fuel economy.

It was interesting that Honda decided to kill the Accord rather than fix it. By dialing back the performance — perhaps transplanting the four-cylinder hybrid powertrain from the Civic Hybrid — the Accord Hybrid’s fuel economy numbers might have jumped into the mid- to low-40s.

This is the second hybrid Honda has killed in the past year, despite gasoline prices that are marching toward $4 a gallon. The Insight, the industry’s mileage king with mid-60s fuel economy, was axed last year.

So what is next for Honda’s hybrids, which are being outsold almost seven to one by Toyota’s hybrids?

The company is still moving ahead with plans for a high-economy vehicle to compete with the Toyota Prius by the 2009 model year.

Meanwhile, the Accord Hybrid will go down in Honda history as a misstep.

Chinese Auto Parts Enter the Global Market

2007-06-07T09:15:00.000-07:00

JINZHOU, China — Zhao Qingjie’s favorite book, he says, is a Chinese translation of Lee A. Iacocca’s autobiography.

Mr. Zhao, who runs one of the largest manufacturers of automotive starters and alternators in China, has long been interested in the United States. That should make his counterparts in the auto parts industry elsewhere very nervous.

“Entering the U.S. market is one of our key strategies,” said Mr. Zhao, whose company, Wonder Auto Technology, has obtained a Wall Street stock listing and is preparing to start exporting.

China’s auto parts exports have increased more than sixfold in the last five years, nearly topping $1 billion in April and emerging as one of the fastest-growing categories of Chinese industrial products sold overseas. More than half of these auto parts go to the United States; most of the rest to Europe and Japan.

The rise of Chinese auto parts exports is part of a much broader shift. China is moving up from basic goods like textiles, toys and shoes and toward higher-value industrial goods that pay better wages — but also compete more directly with products from countries like Mexico and even from advanced industrialized countries like the United States.

Still, while China has room for considerable growth in auto parts exports to the United States, it is not competitive overseas in bulky products like car seats that are uneconomical to ship or need to be manufactured close to a car factory for quality-control reasons. And China’s rising labor costs and strengthening currency are making automakers leery of becoming too dependent on China for parts that can be shipped.

The latest wave of auto parts exports is led by domestic Chinese auto parts manufacturers like Wonder Auto that are rapidly gaining strength and starting to enter markets around the globe.

Domestic manufacturers like Wonder and the Wanxiang Group are relying on the same inexpensive Chinese assembly-line labor as multinationals like Delphi Automotive Systems and Visteon. But they can undercut the global giants in part by hiring talented but cheaper Chinese engineers and headquarters staff as well.

Soaring output at auto assembly plants in China is generating enormous demand for auto parts and creating the economies of large-scale production previously possible only in North America, Europe and Japan. And with at least a half-dozen Chinese automakers planning to start exporting in the next few years, Chinese auto parts will soon be going overseas not just in crates, but as part of fully assembled cars.

Multinational automakers set virtually the same quality standards for their operations all over the world. They are working closely with Chinese parts companies to help them meet these standards; once they do, they are allowed to submit bids for supplying factories elsewhere.

“They get put on the global list and then can quote for anything worldwide,” said Nick Reilly, the president of Asian and Pacific operations for General Motors.

Chinese auto parts have surged in the American market as imports have declined from Japan, Canada and Malaysia and have stagnated from Mexico and the European Union.

China is strongest in electrical and electronic components and in cast-metal parts that require environmentally hazardous casting and a lot of manual labor for machining.

Feeling the pinch are small auto parts manufacturers and their employees in the United States, heavily concentrated in Ohio and mainly supplying larger auto parts companies instead of shipping directly to the big automakers.

While overall American industrial production is on the upswing, the troubles of the auto parts industry could become an issue in next year’s presidential elections.

Ohio elected a new Democratic senator in November, Sherrod Brown, who favors a more aggressive American trade and currency policy, including the filing of legal cases with the World Trade Organization challenging China’s currency, labor and environmental policies.

“It’s not a fair competition because over and over again in terms of currency and labor standards, China doesn’t play by the same rules as we do in the United States,” Senator Brown said.

China is rapidly grabbing orders for replacement parts sold to repair garages. The Wanxiang Group of China is already building up its distribution in the United States by buying Neapco, a steering shaft company in Pottstown, Pa., and striking a deal with Ford in April to buy its prop shaft business.

Many of these imports from China are simply replacing goods from other countries. New starters and alternators, for example, are no longer made in the United States, as production has moved to Mexico, Singapore, Malaysia and now China.

But used starters and alternators are still remanufactured in the United States, reusing the costly copper wiring in each device and selling them in the $1.5 billion market for replacement starters and alternators. Companies in this business, like Motorcar Parts of America with its headquarters and main factory in Torrance, Calif., have been struggling to compete with imports of all-new starters and alternators.

Mr. Zhao of Wonder Auto calculates that it costs him $4 million to set up an assembly line here in Jinzhou with mostly manual labor, employing 20 workers.

The combined wages of 20 workers here come to only $40,000 a year at the current exchange rate of 7.65 yuan to the dollar. That is in the range of annual base pay for one unionized auto parts worker in the United States and comparable to two nonunion American auto parts workers. Mr. Zhao recently explored and rejected the idea of opening a factory in the United States, after calculating that it would cost $10 million to set up a heavily automated line that would employ three workers.

Total benefits for 20 workers come to an additional $20,000 a year, Mr. Zhao said.

The company’s wages of $170 a month remain respectable by the standards of this gritty refinery city of 800,000 in northeastern China. A small apartment without modern amenities like a refrigerator or air-conditioning rents for as little as $40 a month, while even a large meal at the restaurant of the city’s best hotel costs less than $3.

Jobs at Wonder Auto are much sought after and turnover is almost zero, said Sun Shaohua, 30, who strips copper wires for alternators, the devices that take mechanical energy from the engine and turn it into electricity to recharge the battery.

“Many people come, but nobody ever leaves,” he said.

Mr. Zhao said he was already in discussions with General Motors and Volkswagen about supplying their operations, first in China and then overseas. For now, Mr. Zhao mainly supplies domestic Chinese carmakers, notably Brilliance China Automotive, which has a high-roofed factory in Shenyang, a three-hour drive to the northeast, where workers in tan shirts and trousers labor at a modern assembly line.

While China’s auto parts industry is growing rapidly, automakers are nervous about buying all of their parts from China. They cite three important costs that are becoming increasingly unpredictable for any manufacturer doing business in China: labor costs, raw material costs and the exchange rate of the yuan against the dollar.

Industrial wages are still low in China compared with wages in other car manufacturing countries. But Chinese wages have been soaring by 10 to 30 percent a year for the last several years, auto executives said. Skilled workers at car factories in high-income coastal areas can earn nearly twice as much as workers here in northeastern China, a rust belt of aging industrial complexes built with Soviet help in the 1950s.

But even as China’s labor cost advantage is narrowing, it is simultaneously creating a new advantage: lower material costs.

As recently as four years ago, severe shortages within China of industrial commodities like high-quality steel resulted in high prices. Now the opposite is true: China has invested so much in new steel mills and other factories that it has become the world’s largest steel maker and faces an increasing glut.

The biggest question mark hanging over China’s exports lies in the currency exchange rate — a problem that Japanese auto executives in particular know well after dealing with the yen-dollar exchange rate.

China has allowed the yuan to appreciate only by 6 percent against the dollar in the nearly two years since breaking its fixed peg to the dollar. Chinese officials have repeatedly warned of their reluctance to accept faster appreciation.

But Chinese foreign exchange reserves have ballooned to $1.2 trillion from $316 billion in the last four years as Beijing has bought dollars on an enormous scale to prop up demand for the American currency and prevent it from falling faster against the yuan.

The question is how much longer Beijing can keep up these purchases, which require adroit handling to prevent them from causing inflation in China. Atsuyoshi Hyogo, who runs Honda’s China operations, said that China had slightly lower costs than its Japanese counterparts at currently prevailing exchange rates, but he added that the Chinese currency should be much stronger than it was now.

For all the uncertainty, Wonder Auto and other Chinese parts makers are growing quickly. Wonder’s sales rose 45.8 percent in the first quarter, to $21.6 million; profits nearly doubled, to $2.7 million.

Traded on the over-the-counter market in the United States, the company’s shares have risen more than fivefold since an initial public offering last June; Wonder Auto has applied for a Nasdaq listing. The rapid rise has enriched Mr. Zhao, who owns 54.2 percent of the company’s shares, worth more than $90 million, as well as 11 percent of another company in Jinzhou that manufactures air bag sensors.

That is quite a change from his earlier life. Forced to spend three years on a farm during the Cultural Revolution of the 1960s, Mr. Zhao taught himself to fix tractors. Denied admission to a naval academy because his father was a Nationalist soldier before the Communists won China’s civil war, Mr. Zhao went to a technical institute instead.

He became a business professor and ran a state-owned motorcycle shock-absorber factory before starting Wonder Auto.

Mr. Zhao said that he still worked 75 hours a week. His father died when Mr. Zhao was 6 years old, and for many years afterward he felt responsible for his two sisters and his mother.

“I had to let my mother know, in raising three kids, including a son, that it was all worth the hardship,” Mr. Zhao said. “As a boy from a small village, I want to make something of myself.”

Toyota Worldwide Hybrid Sales Top 1M

2007-06-07T07:38:00.000-07:00

TOKYO -- Toyota said Thursday global sales of its hybrid vehicles have topped 1 million, a landmark for the Japanese automaker that leads the world in "green" cars.

Toyota Motor Corp.'s cumulative sales of gas-and-electric-powered vehicles totaled 1.047 million as of the end of May. Of those, nearly 345,000 hybrids were sold in Japan, while 702,000 were sold abroad, the company said in a statement.

The Prius is the clear leader, with a total of 757,600 units sold since its 1997 introduction in Japan. Toyota began selling the Prius in North America, Europe and other places in 2000. Last year, the model made up more than 40 percent of hybrid sales in the U.S.

Demand for hyrids, which deliver superior mileage by switching between a gasoline engine and electric motor, has soared amid higher oil prices and greater consumer concern about pollution and global warming.

Toyota offers several other hybrid models, including the hybrid Camry and hybrid Lexus models.

Toyota also began selling its most expensive hybrid, the $124,000 Lexus LS 600h, recently in Japan. It will be exported over the summer, according to the company.

Toyota produces its hybrids in Japan, in China since 2005, and in Kentucky since last year.

But not all hybrids sell well. Honda Motor Co. earlier this week said it will discontinue the hybrid version of its Accord sedans, which has done poorly. Sales of the Accord hybrid, available only in North America, totaled just 439 last month, while Toyota sold 24,000 Prius cars during the same period.

Last year, Honda said it will stop making the slow-selling Insight hybrid, but Honda is promising a new U.S. hybrid competitor in 2009.

Tokyo-based Honda continues to sell the hybrid Civic, which has sold more than 153,000 since going on sale in 2001 in Japan, Europe and North America.

Ford gets 5 top quality awards

2007-06-07T07:28:00.000-07:00

Porsche takes the top spot and Mercedes is most improved brand in latest J.D. Power survey

NEW YORK (CNNMoney.com) -- Five vehicles from Ford Motor Co. placed at the top of their categories in initial quality, according to a survey released Wednesday by J.D. Power and Associates.

The 2007 J.D. Power Initial Quality Study looks at both manufacturing defects and design problems in new cars as reported by their owners.

The Ford Mustang ranked as the most problem-free "Midsize sporty car" in the survey while the Mercury Milan was the highest ranked midsized car and the closely related Lincoln MKZ was the top-ranked "Entry premium car."

The Lincoln Mark LT, a luxury version of the Ford F150 truck, was the top-ranked SUV and the Mazda MX-5 Miata was the top-ranked "compact sporty car." (Ford owns a controlling interest in Mazda.)

All three of Ford's U.S.-based brands - Ford, Lincoln and Mercury - earned above-average marks for quality. Ford's European luxury car brand Jaguar ranked sixth, tying with Toyota's Toyota brand.

The overall top brand, on average, was Porsche with 91 problems per 100 vehicles. (The average car in the survey had 125 problems per 100 vehicles.) The Porsche Boxster was the top-ranked "Compact premium sporty car," according to the survey.

The second-ranked brand overall was Toyota's Lexus luxury brand followed by Lincoln, Honda and Mercedes-Benz.

The Mercedes-Benz SL-class was the top-ranked "Premium sporty car" and the E-class was the top-ranked "midsize premium car." The Mercedes-Benz S-class tied with the Audi A8 as the top-ranked "large premium car."

Mercedes-Benz has not done well in J.D. Power surveys in the past but jumped 20 places in the rankings this year to finish fifth.

"All Mercedes-Benz models in the study improved substantially," said Neal Oddes, director of product research and analysis for J.D. Power, in the announcement, "and the breadth and speed of these improvements demonstrates the Mercedes-Benz commitment to quality."

No GM brands earned above-average scores in the survey. GM's best-ranking brand was Buick with 127 problems per 100 vehicles, a score that placed it just below average. Several individual GM models did earn top rankings, however.

The highest ranking brand from DaimlerChrysler's U.S.-based division, the Chrysler Group, was Chrysler. Chrysler had 151 problems per 100 vehicles, placing it well below average.

At the bottom of the scale, Ford's luxury SUV division, Land Rover, ranked last of all brands with 170 problems per 100 vehicles. Still, that represents a reduction of 34 problems per 100 vehicles from last year.

Despite taking the top spot in the "small sporty car" segment with the Miata, Mazda finished second-to-last among brands overall with 163 problems per 100 vehicles.

Top ranked vehicles

Subcompact: Kia Rio/Rio5

Compact: Honda Civic

Compact sporty: Mazda MX-5 Miata

Compact premium sporty: Porsche Boxster

Entry Premium: Lincoln MKZ

Midsized premium: Mercedes-Benz E-class

Large premium: Audi A8/Mercedes-Benz S-class

Premium sporty: Mercedes-Benz SL-class

Midsized sporty: Ford Mustang

Midsize: Mercury Milan

Large: Pontiac Grand Prix

Compact SUV: Honda CR-V

Midsize SUV: Toyota 4Runner

Lage SUV: Toyota Sequoia

Midsize Premium SUV: Lexus RX

Large Premium SUV: Lincoln Mark LT

Large pickup: Chevrolet Silverado Classic HD

Midsize pickup: Toyota Tacoma

Van: Chevrolet Express

Source: J.D. Power and Associates

A Grand Opening for BMW’s Quick-Tanning Machine

2007-06-03T04:20:00.000-07:00

DRIVING a BMW 3 Series after some time away is like being reunited with a favorite band. The in-line 6 sounds its opening notes and you think, “Hey, I remember that song.”

The car picks up the tempo and glides through a tricky two-lane passage, and your hips shimmy right along. As the performance approaches a lighter-waving climax, you’re reminded that, among sport sedans, the 3 Series is like Dylan or the Clash: the one you can always come back to.

Of course, a company doesn’t keep a car on top for 30 years by rehashing the past, but through regular reinvention.

The Bangle school of styling that so provoked BMW purists (their motto: forever square) with its restless kinks and bulges, has grown into a mature, often-imitated style that can no longer be casually dismissed. The look definitely flatters the 3 Series. It was liberally applied to the fifth-generation sedan for 2006. A coupe soon followed, along with a welcome rarity, a wagon as fun and shapely as it is practical.

On an unreasonably cold spring morning, I pulled on a wool hat to avoid spoiling my first date with the luxurious 335i convertible. Starting at $49,875, it is the most expensive and style-conscious of the current 3 Series lineup. (A new limited-edition 420-horsepower M3, featuring the first V-8 ever installed in the series, will top the range later next year).

Having failed for years to outhandle and outfinesse the BMW, the competition has been trying to hammer it into submission. The best of the budget alternatives is Infiniti and its recently redesigned G35. A more powerful G37 coupe — on sale in August, with a sedan version to follow — will develop a class-leading 330 horsepower from a 3.7-liter V-6.

Such V-6 engines take up less space than in-line sixes of the same displacement. And BMW could no longer stretch its smaller, 3-liter in-line 6 and still fit it under the 3 Series hood. So to keep the sport-sedan stalkers at bay, it had to whip out the automotive version of pepper spray: a pair of quick-spooling turbochargers boost the direct-injection 6 to a nice round 300 horsepower and 300 pound-feet of torque. Even the burly new M3 with the V-8 will produce 5 less pound-feet of torque (295) than the turbo models.

That makes the 335i the first turbocharged gasoline-powered BMW sold in the United States. The engine makes a vocal argument to being the best turbo powerplant this side of a $130,000 Porsche. Free-spinning and seamless, it evinces none of the power lag or spiky peaks you expect from turbochargers, achieving peak torque at a low 1,400 r.p.m.

The result is a 3 Series that feels roughly as quick, but less high-strung, than the current-generation M3 (rated at 333 horsepower). For the new convertible, BMW cites a snappy 5.5-second run from 0 to 60 m.p.h. when equipped with the terrific six-speed manual transmission — only two-tenths of a second behind the 335i coupe. If you don’t want to pump a clutch pedal, the $1,275 six-speed Steptronic is among the fastest and smoothest automatics around; don’t forget to throw in $100 for paddle shifters.

Trusty brakes feature every imaginable technology, including a self-drying feature that ensures that they are always ready for action on a puddly day. The brakes automatically keep the car from rolling backward when you’re starting off on an uphill slope, a feature every luxury car should consider.

Blessedly, the 3 Series can be ordered without the iDrive systems interface and its dreaded rotary control knob. And the Active Steering — which adjusts steering ratios to make for easier parking and supposedly better handling — is another option whose price, $1,400, isn’t justified by the benefits.

For style, speed and handling you can see and feel, choose instead the $1,300 sport package. It adds a firmer suspension, sport seats with power adjustable side bolsters and handsome 18-inch wheels with sticky run-flat performance tires. It also raises the top speed limitation to 150 m.p.h., compared with just 130 m.p.h. without the package.

During my blast north of New York along the Hudson River, the BMW’s mad turbocharged rush was a new thrill. More familiar was the unity of power, steering, shifter and brakes that no other car in this class can quite reproduce. The suspension is supple when you want it, firm when you need it, and the car will cruise or command any road, depending on your mood.

With the day warming and my hair whipping, I tried and failed to think of a hotter combination of four seats, open roof and excellent performance at this price. The 3 Series defies the stereotype of convertibles as fair-weather toys, and that real men and enthusiasts must do their serious road hunting from inside a closed-roof cave.

The 3 Series also addresses a longstanding bane of convertibles: the combination of tender thighs and searing-hot seats. The seats, armrests and shift knob feature BMW’s so-called sun-reflective technology. The leather is treated with pigments that BMW claims will reduce surface temperatures of dark-leather seats by up to 36 degrees on sunny days or 27 degrees for lighter-colored leathers.

Count the power hardtop as another first on a BMW. On the plus side, the top powers down in a fleet 22 seconds, and it takes just one second longer to click shut. The side and rear glass areas are together more than 30 percent larger than those of the prior cloth-top convertible, minimizing blind spots, letting in light and greatly improving visibility, including the view from the back seat.

But as with most folding hardtops, the roof adds weight and complexity, and seriously reduces the trunk space when stowed. At 3,946 pounds, the Bimmer weighs about 400 pounds more than the coupe. About 300 of that is because of the top, the rest from the stiffened structure that convertibles require to keep tremors at bay. Watching the top’s stacking, origami action is breathtaking, but so is the thought of how much it might cost to fix after a decade of use.

With the top down, trunk space drops from 12.3 cubic feet to 7.4, though it seemed smaller. With the roof open, I tried and failed to stow two wheeled carry-ons. A clever $500 Comfort Access option lets you open or close the top with the key fob, or to partly raise the roof for easier access to luggage.

As ever with BMW, the phrase “You get what you pay for” is both a compliment and caveat. My beautiful bright-blue 335i checked in at $54,540. Worth every penny, I’d say, but that’s still a whole lot of pennies.

So allow a word of praise for the 328i versions, whether sedan, coupe or convertible. (The 328i convertible starts at $43,975.) The starter Bimmers used to feel like something you settled for, with smaller engines and well under 200 horsepower. But the latest 328i models get a robust 230 horsepower from a 3-liter aluminum-magnesium 6, and the engine is so flexible that you’d swear it had 30 more horses in reserve.

Yes, a twin-turbo 300-horsepower BMW convertible is the stuff of summer dreams. The 328i model helps to keep that dream more attainable.

GM's Oshawa Plant Tops Productivity List

2007-06-02T18:56:00.000-07:00

The Toyota Motor Corp. led all North American automakers in manufacturing productivity last year, but Detroit's Big Three continued to close the productivity gap with their Japanese rivals, said The Harbour Report, a study watched closely by the auto industry.

The annual report prepared by Troy, Mich.-based Harbour Consulting, compared labor productivity at six companies that have North American plants. The study covered the installation of auto equipment and integration of parts and accessories like the Jet Chips cold air intake. The General Motors Corp. had four of the top ten most productive vehicle assembly plants, including the most productive plant in the study - Oshawa No. 2 in Oshawa, Ont. It took Toyota 29.93 work hours to manufacture components and assemble each vehicle.

"Topping the Harbour Report is a great achievement at a time when productivity is a critical challenge facing Canada's economy," said Arturo Elias, the GM Canada president. "This really shows what can be accomplished with constant focus and it is a testament to our great employees at GM Canada."

Harbour Consulting president Ron Harbour said that the difference between the most and least productive companies last year was 5.17 hours, more than two hours better than the 7.33-hour gap in 2005. Yet the gap still is equal to about $300 per vehicle in favour of Toyota, the study said.

The productivity gain came because Toyota's performance declined while the Detroit Three continued to increase. Ford and GM became more productive by slashing thousands of workers through buyouts and early retirement offers, and all three continued to work with unions to negotiate away work rules that place them at a disadvantage to the Japanese companies, Harbour said.

The improvements came even though sales and production declined for all three Detroit automakers, he said. "I think it's a major point that Ford, Chrysler and GM all made improvements despite the fact that they all had some significant drops in volume," he said. "When you're losing production volume that fast, it's pretty hard to make productivity improvements."

Ford, GM and Chrysler could narrow the gap even further in 2007, because they did not fully realize the full impact of productivity improvements in 2006, Harbour said. "One of them could even overtake Toyota if production volumes don't drop too much. We should see a big improvement in the Big Three's numbers overall in 2007."

Joe Hinrichs, Ford's vice president of North American manufacturing, said that although his company is behind competitors, it has seen five straight years of productivity improvements. "Our rate of improvement was better than some," Hinrichs said. He added that Ford has worked with union leaders on forging agreements to make plants more efficient. That includes allowing workers to do multiple jobs and contracting out traditional union jobs to save money.

Harbour said that such agreements are a necessity as the Detroit Three try to return to profitability. According to the study, Ford lost US$5,234 per vehicle before taxes last year, followed by GM with a $1,436 loss and DaimlerChrysler, which lost $1,072 per vehicle. On the contrary, Toyota made $1,266 per vehicle, while Honda made $1,368 and Nissan made $1,575. While Harbour gives the United Auto Workers and Canadian Auto Workers credit for helping the Detroit Three reduce costs, he said more must be done in the upcoming U.S. national contract talks. He added, "They have really come to the party here and made some really big improvements. But there are still some things out there."

The Detroit Three have to erase productivity differences at any cost because their viability depends on it, Harbour said.

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A Sleeping Beauty Since ’62, Rare Bugatti Awaits Its Comeback

2007-06-01T18:57:00.000-07:00

AMONG serious collectors, there are few mysteries; with only occasional exceptions, cars of particular significance have all been deeply researched and their histories well-documented. A Duesenberg or Ferrari expert knows when an important example will be coming to auction and can typically recite its ownership history in numbing detail, referring to the car not by something as vague as a model name but by its exact chassis number.

That is why the grapevine of the collector market buzzes when a rare car re-emerges after being out of sight for many years. Such is the case — and the source of anticipation — surrounding the French grand touring car from 1938, a Bugatti Type 57C Atalante coupé. One of about 40 built, the Atalante is the last design of a talented young man before his early death, and one of the most daring shapes of its time.

Adding to its mystique, the car, owned by a member of one of New York’s most prominent families, had not seen the light of day since 1962, when it was last registered for the road. The Atalante has not moved from its garage space — it is now sandwiched between a old Farmall tractor and a 1949 Jaguar Mark V sedan — in a New York City suburb since then. It will be auctioned on June 3 by Christie’s at the Greenwich Concours d’Élégance, at Roger Sherman Baldwin Park in Greenwich, Conn. Christie’s estimates that the car will sell for $300,000 to $400,000.

While noncollectors might be shocked by that price for a car in this state of neglect, its as-found condition adds charm for many would-be Bugatti owners. Many vintage cars, even from the grandest marques, have suffered untold indignities, but this Atalante is remarkably original — with little more than small repairs at the rear and the addition of bumpers — and it has never sustained the harm of a botched restoration.

Its value is related to Bugatti’s status as one of the most revered names in automotive history, memorable enough for the Volkswagen Group to revive the brand in recent years for a series of ultraexpensive sports cars.

The founder of the company, Ettore Bugatti, built his first car in 1899 and gave them his name in 1910, when he established his company in the Alsace region, then under German control. Bugatti soon became known for superbly engineered racecars, one of which won the first Monaco Grand Prix in 1929. To finance the racing, the company built powerful cars for wealthy enthusiasts, a business model later adopted by Enzo Ferrari.

Ettore’s son, Jean, grew up in the business and established himself as an imaginative and talented automotive engineer and designer. Jean, who died in 1939 while testing a racecar, designed the bodies for the Type 57 models.

Of the 710 Type 57s built, about 40 carried the sleek two-door coupé body named Atalante, after the quick-footed young woman of Greek mythology who would not marry any man who could not outrun her.

The owner of this particular Bugatti is John Wendell Straus. Mr. Straus, 87, is a grandson of Isador Straus, who built R.H. Macy & Co. into a retail giant and who, with his wife, Ida, was among those lost on the Titanic in 1912.

John W. Straus has loved cars since childhood. His first, at the age of 14, was a Ford Model T that he kept for many years. As a student at Harvard, he spent much of his free time looking for old cars abandoned in fields near the Cambridge campus. He joined the military in 1942, where, as a pilot in the Army Air Force with a fluency in French, he trained Free French airmen in Alabama.

After the war he joined the family business; as a Macy’s vice president he was deeply involved in the Thanksgiving Day Parade and served as the store’s liaison to the production team of “Miracle on 34th Street” when it filmed in Manhattan.

Mr. Straus often found himself at Zumbach Motors on West 54th Street, one of the first foreign car repair shops in New York and a gathering place for show business personalities like Paul Whiteman and Dave Garroway. It was there one day in the early 1950s that Straus saw a rakish black and yellow Bugatti. It was not just the car’s looks that convinced him he had to own it, but also the obvious care and craftsmanship that went into its construction.

The car had originally left the Bugatti factory in Molsheim, then in France, with a convertible body and the optional supercharged engine. An early owner of this car also owned an Atalante coupé; the coupé originally came with the less powerful version of the Type 57 engine, a 135-horsepower in-line eight cylinder.

In the late 1940s the body of the convertible was swapped with that of the coupé, mating the 160-horsepower engine with the rarer coupé body. Such exchanges were not uncommon at the time, with some well-to-do owners regularly changing the body style of their car seasonally to suit their moods.

The Bugatti joined other cars in Mr. Straus’s garage, which over the years included a Rolls-Royce Phantom I, several Jaguars, a late-1930s Mercedes-Benz 540K, his original Ford Model T and a Duesenberg that had been purchased new by his father. They all saw service driving his family between New York City and their country homes in Westchester County.

Mr. Straus became involved in education and the arts during the ’60s and left Macy’s in 1968 to begin a second career in education. He later became an consultant serving on the boards of many arts organizations. All this activity left little time for his cars and one by one they were parked, not to be driven again.

It is exactly this sort of unrestored car that has helped the Christie’s auction at the annual Greenwich concours make something of a name for itself.

“In selling a ‘barn find’ car, we find that you have to market it correctly,” said Christopher Sanger, vice president in charge of sales for Christie’s motor car department in the United States. “A picture’s worth a thousand words — you need the right images to create the proper mood, by showing the car as discovered so people can appreciate how undisturbed it is.”

Finding cars like this is also a part of the competition between auction houses. “We’re all striving to find fresh-to-the-market cars — important and rare cars that have been tucked away in collections and lost to time,” Mr. Sanger said.

Restoring a car purchased in original condition like this requires special care. Alex Finigan, sales manager of Paul Russell & Company in Essex, Mass., a shop that regularly works for top collectors, said that the work should start with documentation. “The process is that we photograph literally every nut and bolt. Although we’ve worked on many Bugattis, they’re all different.

“We study any period factory photos as well,” he said. “This is all before a wrench touches the car. It’s very important to identify what is original and what may have been added later.”

Restoration on a car like the Bugatti can take up to 6,000 hours of labor and cost hundreds of thousands of dollars. In 2006, a restored Atalante sold at the Gooding auction at Pebble Beach for $682,000.

For the person who buys this Bugatti, it will be akin to the thrill of an archaeologist at a dig site, combined with that of the museum curator who finally puts the object on display. It’s like unearthing a lost treasure, then bringing it out into the light of the world to be celebrated once again. By any measure of desirability, it’s worth the effort.

The Greenwich Concours d’Élégance will take place from 10 a.m. to 5 p.m. on Saturday and Sunday, June 2-3, at Roger Sherman Baldwin Park in Greenwich, Conn.

Palm to Sell Device That Won’t Fit in the Palm

2007-06-01T18:52:00.000-07:00

CARLSBAD, Calif., May 30 — Fifteen years after pioneering personal computers that nestled comfortably in a user’s hand, Palm reversed itself Wednesday and said that it would begin selling a two-handed laptop-size machine called the Foleo.

The 2.5-pound “appliance” comes with a 10-inch screen and is meant to be a companion for a smartphone, according to one of Palm’s founders, Jeff Hawkins, who introduced the machine here at the D: All Things Digital technology industry conference.

The Foleo, which will be priced starting at $499, synchronizes information with Palm and Windows Mobile phones and can be linked wirelessly via phones to the Internet, although it comes with Wi-Fi ability.

During a demonstration, Mr. Hawkins acknowledged the limitations of smartphones, which have been viewed as a lighter, less expensive alternative to carrying a portable laptop computer. “Sometimes you need a big screen,” Mr. Hawkins said.

He said he had struck on the idea of a mobile companion for the phone five years ago, but that his business partners Donna Dubinsky and Ed Colligan had resisted the project as a distraction while the company introduced the popular Treo smartphones.

The Foleo, which will go on sale this summer, is based on the Linux operating system. But it does not have a broad range of applications. For example, while Mr. Hawkins demonstrated the ability to synchronize e-mail automatically with a smartphone, synchronizing with a datebook was not a feature.

The notion of an inch-thick device that is sold as a peripheral to a phone generated some skepticism. But several analysts saidt the phone might get a following of Linux enthusiasts.

“This could become the first commercially viable portable Linux system,” said Tim Bajarin, an industry analyst at Creative Strategies, a consulting firm based in Campbell, Calif.

The Foleo is the latest in a series of industry efforts to define a new category between cellphones and laptops. Microsoft has tried to create interest in devices it calls ultra-mobile PCs, and Intel has been encouraging developers to introduce systems it describes as mobile Internet devices.

Several smaller start-up companies like Oqo, based in San Francisco, have also been offering hand-held systems that have most of the features of standard laptops, but fit comfortably in jacket pockets.

This year’s conference also included an interview with Apple’s chief executive, Steven P. Jobs. Mr. Jobs said his company would soon be focused on three business — computers, digital music, and cellular telephone handsets — and “a hobby,” the company’s recently introduced Apple TV peripheral.

He called the device an experiment and said it would soon make it possible to download videos from the YouTube site of Google onto a home TV.

He described efforts by PC and consumer electronics companies and others to replace the cable set-top box as failures. Apple has recently reset its strategy and is going to try to shape Apple TV as something other than a conduit for television.

“We want to be the DVD player for the Internet age,” he said.

Mr. Jobs also said that more than two hundred million copies of the Apple iTunes software had been downloaded, with most of them running on Windows-based personal computers.

He did not let that fact pass without taking a not-so-subtle jab at his long-time competitor, Bill Gates, Microsoft’s founder: Offering iTunes software to Windows users was like “offering a glass of water to someone in hell,” Mr. Jobs said.

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