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

It is easy to loose sight of reality when you are looking for a new car either for buying or leasing. Before you sign on the dotted line for an auto loan, take a critical look at your finances, credit score, and monthly income for the next few years of term of auto loan.

Here Are A Few Critical Steps in Setting a New Car Budget
It is crucial that you figure out accurately how much you will be able to afford for a new car. Things like the down payment you will have to be prepared for, what you can actually afford to pay every month, your credit limit, what will be its resale market value if you plan to sell it off a few years later.

There are other important issues like the car insurance additions, taxes you need to bear, and whether you can meet your household expenses to give a deep thought to.

The Steps
1. After you are decided on a particular car and shopped around for quotes from dealers as well as auto loan lenders, sit down to do your math. Decide on an amount you can easily put down as down payment. The higher the amount you are able to afford the better as it obviously pays back through reduced interest payout.

2. There are several auto loan calculators available on the net but when using one, mind that the loan amount also includes insurance and taxes. Get a fair idea of monthly payments, total interest and the number of years you are comfortable with.

3. Look back whether you have sufficient life and health insurances already in place, just in case. Auto loan lenders, sometimes insist on additional insurance cover depending on your financial and credit report status. You will have to take this into your car budget in case you are lacking them.

4. Critically compare the third party loan offers against loan from credit unions and dealership loan arrangements. Credit unions generally enjoy the reputation of being cheaper than banks while rates for dealership loans are slightly higher however this is not the case always.

5. Shed the belief that sticker prices are non negotiable. Dealers are free to add their margin to the base price and this margin is usually about 12-15%. There is always a room for bargaining with the dealers and their standard ‘bargain margin' is usually around 5%-7%. If you can pull off this, it very well pays for a part of your auto loan interest.

6. One final step in budgeting a new car is foreseeing and preparing for future adversities and financial crises such as job loss, loss of business, burglary etc. Although none of them are predictable, they are eventual possibilities in anybodys life. The question is not that of whether you face a financial crunch or not, but it is essentially one of whether you can meet your monthly payments or not for the term of the loan and after.

The writing on the wall is nothing moves without proper budgeting in an organized world. You can implement good points and suggestions from friends and if needed you can take a credit counseling also. After all, an auto loan is there to quench your thirst for a new car.

Mercedes-Benz unveils DiesOtto - the “future of the gasoline engine”

Don’t count out the petrol engine just yet according to motoring giant Mercedes-Benz, which has unveiled a new gasoline engine offering the high torque and fuel economy of a diesel together with extremely clean emissions. The company is highly optimistic, calling it “the future of the gasoline engine.” The Mercedes-Benz DiesOtto powertrain is a further development of the spark-ignition engine and includes features such as direct gasoline injection, turbocharging, variable valve timing and variable compression and it will be used in conjunction with a hybrid integrated starter/generator module. At its core lies the controlled auto ignition, a highly efficient combustion process similar to that of a diesel. The result is an 1800cc four-cylinder motor producing 238 bhp (175 kW) with torque of 400 nm while delivering 6 l/100 km (47 UK mpg, 40 US mpg) in an S-class.

Optimising the internal combustion engine is one of the milestones on the Mercedes-Benz roadmap for sustainable mobility.

The company’s powerful and economical BLUETEC diesel engine diesel has already been available in the US in the E-Class since 2006, and it will also become available in Europe from the end of this year.

The E 300 BLUETEC will be by far the cleanest diesel in its class, and will meet the requirements of the EU5 exhaust emission standards in full.

"Our next goal will now be to make the gasoline engine as economical as a diesel. All the preconditions for this are provided by our DiesOtto concept, which incorporates the foremost strengths of both the gasoline engine and diesel engine," says Prof. Dr. Herbert Kohler, Head of Group Research & Advanced Engineering Vehicle and Powertrain; Chief Environmental Officer of DaimlerChrysler.

The result of this " marriage " is a four-cylinder unit with a displacement of just 1.8 litres, which combines the strengths of the low-emission gasoline engine with the fuel economy of a diesel.

Despite its considerably reduced displacement – downsizing is one of the major factors for achieving a lower fuel consumption – this compact power unit delivers superior performance together with refinement at the level of the luxury class.

An output of 175 kW/238 hp and a maximum torque of 400 newton metres are achieved together with the hybridisation a fuel consumption of less than six litres of gasoline per 100 kilometres. This figure by no means relates to a small or compact car, but to a vehicle the size of the current S-Class, with the level of comfort and safety that is typical of a Mercedes.

" In line with the worldwide success of today's diesel engine, vehicles equipped with gasoline engines will continue to have a long-term attraction for many customers and in many markets. Accordingly we are giving our attention to both engine types – including a full hybrid option for diesel and gasoline vehicles, " says Prof. Kohler. Mercedes-Benz is working on its DiesOtto concept with corresponding emphasis.

Its key technological features are as follows:

* Downsizing with fewer cylinders and a smaller displacement
* Turbocharging for superior performance
* Direct gasoline injection as a further fuel economy measure
* Controlled auto ignition, a combustion process similar to that of a diesel
* Variable valve control
* A variable compression ratio leading to even better fuel economy and, depending on customer needs and the type of operation,
* A hybrid module with an integrated starter/generator, which makes the drive unit even more economical.

When starting and under full load, the fuel/air mixture is ignited by a spark plug, as in a conventional spark-ignition engine (homogeneous combustion). The controlled auto ignition to which the DiesOtto automatically reverts within its working cycle occurs under partial load conditions, i.e. at low and medium engine speeds. The result is the very low nitrogen oxide emissions of homogeneous combustion at reduced reaction temperatures. All further emissions control in the DiesOtto engine is by means of a standard three-way catalytic converter. A highly efficient engine management and control system has also been realised to combine the individual sub-systems into a drive concept.

The current prospects for the future of the internal combustion engine reveal its great potential, and show that the new drive concept is a feasible proposition in the mid-term according to Benz. Some of the intermediate solutions incorporated, e.g. direct gasoline injection, are already in series production at Mercedes-Benz. Others will be gradually integrated into series-production engines until the overall solution has been realised.

Ford Vehicle Quality Still Consistently High

Ford Motor Company vehicles continue making dramatic strides in quality, outstripping the industry's rate of improvement in 'things gone wrong' (TGWs) in the second quarter U.S. Global Quality Research System (GQRS) study.

The company improved by 10 percent versus last year, while the report's average industry-wide improvement rate hit 4 percent. Plus, 19 Ford Motor Company models ranked in the report's top three places for customer satisfaction, TGW performance -- or both -- after three months in service.

Mustang Shelby GT500 (pictured), Ford Explorer and Lincoln Mark LT pickup won top honors for TGW performance, while Ford Edge, Ford E-series vans and Mazda MX-5 Miata topped their segments in customer satisfaction. Ford's newest vehicles, including Ford Edge, Lincoln MKX and Lincoln Navigator L, were strong customer satisfaction performers -- and each launched with considerably fewer TGWs than the industry average. Meanwhile, Ford Fusion, Mercury Milan and Lincoln MKZ are sustaining their high quality levels since their launches in late 2004.

"We're launching new products with quality, and our team is working hard to consistently build quality into the vehicles we're delivering for customers," said Mark Fields, president of The Americas, Ford Motor Company. "We've redoubled our commitment to deliver more products customers really want -- with quality that rivals the best in the industry."

The 2007 second quarter U.S. Global Quality Research System study, conducted for Ford by RDA Group of Bloomfield Hills, Mich., asks customers of all major makes and models to comment on troubles and rate their overall satisfaction with their three-month-old vehicles.

Second-place winners for TGW performance and customer satisfaction include:

* Ford Freestyle: TGW performance, Crossover utility.
* Ford Expedition: TGW performance, Large traditional utility.
* Ford Expedition EL: Customer satisfaction performance, Large traditional utility.
* Ford E-Series: TGW performance, Full-size van passenger/cargo.
* Mercury Milan: TGW performance, CD car segment.
* Mercury Mountaineer: TGW performance, Medium traditional utility.
* Lincoln Navigator L: TGW performance and customer satisfaction performance, Large premium utility.
* Mazda MX-5 Miata: customer satisfaction, Sports car segment.
* Volvo S60: TGW performance, CD Premium car segment.
* Volvo S80: TGW performance, D Premium car segment.

Third-place winners include:

* Ford Fusion: TGW performance, CD car segment.
* Ford F-150: TGW performance, Fullsize light truck segment.
* Lincoln MKZ: TGW performance, CD Premium car segment.
* Lincoln Navigator: TGW performance and customer satisfaction performance, Large premium utility segment.
* Mazda MX-5 Miata: TGW performance, Sports car segment.

In the report, Ford Motor Company vehicles are at 1,427 TGWs, representing 159 fewer TGWs since last year. The company's lineup achieved an overall customer satisfaction rating of 75 percent, up by 1 percentage point.

"We've been employing the most disciplined processes around the world to improve the quality of all of our brands," said Bennie Fowler, vice president, Quality, Ford Motor Company. "The results show that the processes work. And we will not let up."

Ford, Lincoln, Mercury brands had an impressive performance with 1,419 TGWs, an improvement of 144 TGWs; and a customer satisfaction rate of 75 percent, up by 2 percentage points.

Volvo vehicles are at 1,433 TGWs, an improvement of 114 TGWs, and a customer satisfaction rate of 79 percent. Jaguar vehicles are at 1,603 TGWs, a deterioration of 46 TGWs, and a customer satisfaction rate of 82 percent. Land Rover is at 1,794 TGWs, an improvement of 411 TGWs, and a customer satisfaction rate of 73 percent. Mazda vehicles are at 1,798 TGWs, representing an improvement of 107 TGWs, and a customer satisfaction rate of 73 percent.

The survey average for TGW performance is 1,447 and for customer satisfaction level is 78 percent.

The GQRS report is the latest of several recent third-party quality assessments showing Ford's continued improvement. Ford received 14 total vehicles ranked in the top three in their respective segments, including five highest-ranked segment awards, in J.D. Power and Associates IQS study released on June 6. Many of those vehicles were recently launched.

On June 28, J.D. Power and Associates APEAL study ranked Ford Edge the industry's top performing all-new vehicle and Ford Mustang won its segment for the third straight year.

In April, RDA Group released its first quarter GQRS report for the year showing Ford in a statistical dead heat with Toyota and just behind Honda.

"We're encouraged by these sustained quality gains, but we also know we have more work to do," Fields said. "The quality race never ends, and we have to make sure customers know how much progress and momentum we're gaining on the quality front."

General Motors Hedges Diesel Future With VM Motori Purchase

DETROIT -- General Motors Corp. announced today it has reached a joint venture agreement with Penske Corporation to purchase 50-percent equity of VM Motori S.p.A, a designer and manufacturer of diesel engines based in Cento, Italy.

This investment builds on GM's existing relationship with VM Motori, GM's diesel expertise worldwide, and its strong relationship with Isuzu.

"Diesel engines have a very important role in GM's global advanced propulsion strategy," said Tom Stephens, group vice president, GM Global Powertrain and Quality. "We are leveraging expertise and resources within our company and through technology partners to ensure we develop the world's best powertrains."

GM announced at the Geneva Motor Show that it will jointly develop a new 2.9-liter V-6 turbo diesel engine with VM Motori that is scheduled to launch in the Cadillac CTS in Europe in 2009. GM Powertrain Europe will focus on the development of the first industry application of a clean combustion process called closed-loop combustion control, electronic engine control and exhaust-gas aftertreatment, as well as calibration and integration into GM vehicles. VM Motori plans to build the new unit at its plant in Cento, Italy, and is responsible for the mechanical aspects of the engine's design, development and testing.

Penske Corporation, based in Bloomfield, Mich., is a transportation services company that encompasses retail automotive sales and services, truck leasing, supply chain logistics management, transportation components manufacturing, and high-performance racing.

VM Motori, founded in 1947, specializes in engine design and production for a variety of uses, including light commercial vehicles.

GM currently offers 17 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices from the 1.3L four-cylinder diesel engine sold in the Opel Agila and Corsa, up to the 6.6L V-8 Duramax diesel sold in full-size vans, heavy duty pickups and medium duty trucks in the U.S.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Forward-looking statements
In this press release and related comments by GM's management, we use words like "expect," "schedule, ""plan," "intend," "pursue," or "believe," to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but the actual events may differ materially due to a variety of important factors. Among other items, such factors include technical innovations, market and regulatory conditions, or changes in the general business or economic environment.

GM Uses Onstar To Lower Car Owners' Insurance Premiums

Today, GMAC Insurance and OnStar announced the rollout of the Low-Mileage Discount program where Americans who drive less, pay less on their auto insurance.


The opt-in program is the first of its kind leveraging state-of-the-art technology using OnStar to allow customers who drive fewer miles to benefit from substantial savings. Eligible active OnStar subscribers simply sign up to save on their premiums (up to 54%) if they drive less than 15,000 miles annually. Since the pilot program began, 10,000 participants have enrolled in the Low-Mileage Discount program.

Under the program, new customers receive an automatic 11% discount, as well as the GMAC Insurance OnStar Subscriber Discount, upon enrollment (existing customers receive a discount based on historical mileage). With the subscriber's permission, the odometer reading from his or her monthly OnStar Vehicle Diagnostics email is forwarded to GMAC Insurance. Based on those readings, the company will decrease their premiums using discount tiers corresponding to miles driven. There is no additional reporting, downloading or monitoring required, and no additional data is gathered or used for any purpose other than to help manage transportation costs. Customers who drive more than 15,000 miles per year are not penalized. In fact, all OnStar customers receive a discount for simply having an active OnStar subscription.

"Customers who drive less should pay less, and this program allows customers to use technology already in their vehicles to give them the discounts they deserve," said Gary Kusumi, president and CEO, GMAC Insurance. "Giving consumers the power of cost control is a welcome advance, especially as people manage their transportation costs more closely in the midst of fluctuating gas prices. The program also encourages people to limit unnecessary driving, helping the environment in the process."

Robert Panczak of Schaumburg, IL, experienced the benefits of the GMAC Insurance Low-Mileage Discount program first-hand as a participant in the program pilot. Panczak is savvy about the insurance industry and wanted to find a company that offered the best value for his needs. He had three cars in all, but one, a Saturn VUE equipped with OnStar, was driven very rarely and only for short trips. Since beginning the pilot program in March 2006, Panczak has saved $500 per year with the Low-Mileage Discount alone.

"Before switching to GMAC Insurance, my premiums were eating me alive," Panczak said, "and since I didn't use one car as often as the others, why should I pay the same amount in insurance? Now, I don't have to."

"We are bringing more value to the 2.8 million subscribers who receive monthly OnStar Vehicle Diagnostics emails," said Chet Huber, OnStar president. "Not only are we providing them with information about the health of key operating systems in their vehicles, we are helping them to save on their transportation costs as well."

OnStar Vehicle Diagnostics is an industry-first service available only from GM, which collects valuable maintenance information on four of the vehicle's key operating systems from hundreds of diagnostic checks and sends a personalized e-mail directly to the owner once a month.

The GMAC Insurance Low-Mileage Discount program is easy to initiate, with no effort from the customer beyond initial enrollment. There are no additional devices installed in the vehicle, and the only data that GMAC Insurance collects are miles driven on a monthly basis. Other low-mileage discount programs have met with customer resistance due to privacy concerns over the level of data collected.

Drivers can also opt to take advantage of enhanced accident support services. If a GMAC Insurance customer is involved in an collision, they can request the OnStar advisor to transfer them to a representative to initiate the claim and arrange for towing and rental car services, after responding to any emergency assistance needed.

Customers must enroll in OnStar Vehicle Diagnostics to be eligible for the GMAC Insurance Low Mileage Discount. Eligible OnStar subscribers can enroll in the opt-in service at no additional cost by simply pressing their blue OnStar button and asking to be enrolled, or by visiting the OnStar Web site ( www.onstar.com ). OnStar Vehicle Diagnostics service can be activated on most 2004 model-year or newer OnStar-equipped GM vehicles that have GM's Oil-Life System. The only information shared with GMAC Insurance for the Low-Mileage Discount is miles driven on a monthly basis.

OnStar will be standard on most GM retail cars, trucks and SUVs in the United States and Canada by the end of 2007. Currently, the GMAC Insurance Low-Mileage Discount is available in the following 34 states:

* Alabama
* Arizona
* Colorado
* Florida
* Idaho
* Illinois
* Indiana
* Kentucky
* Louisiana
* Maryland
* Michigan
* Minnesota
* Mississippi
* Missouri
* Montana
* Nebraska
* Nevada
* New Hampshire
* New Mexico
* New York
* Ohio
* Oklahoma
* Oregon
* Pennsylvania
* Rhode Island
* South Carolina
* South Dakota
* Tennessee
* Texas
* Utah
* Virginia
* Washington
* West Virginia
* Wisconsin

GMAC Insurance plans to extend availability to additional states in the next year.

Doing the Math: Specific Savings
Following is a breakdown of the discounts offered in the GMAC Insurance Low-Mileage Discount program, including the OnStar Subscriber Discount:

Annual Mileage Average Total Savings*

0-2,500 54%

2,501-5,000 39%

5,001-7,500 34%

7,501-10,000 26%

10,001-12,500 18%

12,501-15,000 13%

* Average total savings include the Low-Mileage Discount and the OnStar Anti-Theft Discount combined. The LMD is full-policy savings at the vehicle level. The OnStar Subscriber Discount provides savings off of the Bodily Injury, Comprehensive and Property Damage coverages of the vehicle policy. Drivers who average fewer than 5,000 miles per year may receive even more than 35% in savings.

In addition to the Low-Mileage Discount program, GMAC Insurance offers even more discounts on auto insurance premiums for current GMAC Auto Finance and GMAC Mortgage customers; GM Cardmembers; GM/GMAC employees and retirees; active OnStar subscribers; customers with multiple GM vehicles; and customers who qualify as safe drivers. For more information on the GMAC Insurance Low-Mileage Discount Program and additional discounts for GM and GMAC Insurance products, and to find a local independent agent, call 1-800-GMAC-123, or visit www.gmacinsurance.com to receive a quote.

The GMAC Insurance Group is one of the largest automobile insurers in the United States and is a wholly owned subsidiary of GMAC Financial Services. GMAC Insurance Personal Lines offers a variety of property and casualty products, including personal auto, RV, motorcycle, boat and commercial auto insurance. With a nationwide network of claims professionals, local independent agents and a 24-hour, toll-free claims hotline available 365 days a year, GMAC Insurance provides superior claims service for its customers.

2008 Jeep Grand Cherokee Debut Rumbles Across Europe

Making its European debut, the new Jeep Grand Cherokee was shown in France to media and brand enthusiasts during the 2007 Euro Camp Jeep event.

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?

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.