GM to test offering insurance for 1 year to buyers in Northwest

General Motors -- testing a new sales promotion -- is offering Oregonians and Washingtonians a new incentive to buy or lease a GM vehicle.

Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.

The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.

GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.

The offer includes 2010, 2011 and 2012 models, GM said.

GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.

If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.

The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.

Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.

The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.

Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.

MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.

“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”

2003 Olds Silhouette Repair debacle and questions.

We have owned this 2003 Olds Silhouette for the past 2 years. It's by far the best vehicle we've yet owned. Had it from Michigan to Minnesota and back. Husband drives it every day a total of 62 miles. For the most part, we are confident in its reliability. It currently has 158,000 miles on it.

But we figured it was time for some general maintenance, and a repair. We have been hearing a POP noise when we go down an incline like a short, steep driveway. Primarily from the right. My husband thinks he's hearing it on the left now, too. I haven't heard that but definitely have the one on the right. Neither of us are car experts, but we figured ball joints or something similar. (My husband is that most dangerous of people, someone who knows "a little" about cars. He's getting better at admitting he really doesn't know all THAT much about them, really. ;D )

We've also got a bit of a wobbly, shaky ride. We put used but great condition tires on the front prior to the winter. Now, they are quite worn on the outside edges. My husband thinks they look canted to him and thinks we need an alignment. (I don't have the car here to tell you if the tires are more worn on inside, outside or evenly on both, but I think the inside was worn more.)

I took the van to a mechanic yesterday that came highly recommended. I trusted this guy and honestly, still don't think he was in any way trying to cheat me. However, this is what I asked him to do:

Check and top off trans fluid. Flush and fill radiator. Check AC but DO NOT RECHARGE until I know what everything else would cost in case we couldn't afford it after everything else. Change plugs and wires. Diagnose popping noise and do repair. Do an alignment.

The ONE thing I neglected to tell him was about the wobbly drive.

He was instructed to not do ANY repairs/tune-up/charging/etc until he called me with a report on what's causing the popping noise and what it would cost to fix it. We're under pretty tight funds and I needed to make sure the most important things were done and paid for leaving the rest for when we had more money.

I sat in the library all day while waiting to hear from him. Hours went by and I still hadn't, so I called him. He said he couldn't find what's causing the popping noise. Said that it might be something up in the struts, but he didn't think it was something like ball joints, etc. (I forget the exact wording he used, but it was akin to that). He said he'd keep looking, but that he thought the car was in excellent condition and safe to drive. Said he'd call back in an hour.

Well more than an hour went by. At least 2 or more. I called him again. He said he still can't find a problem causing a popping. He also said that we have platinum plugs and wires and that they don't need replacing. When I expressed some surprise and doubt about that, he said if I insist, he can replace them and charge us but that we don't need to.

In retrospect, the previous owner had this under warranty and had it serviced quite often - I wouldn't doubt he put top of the line plugs and wires in it. But my husband insists it's not running as smoothly as it did 2 years ago. He does the oil changes himself, most often well before the automatic "change oil" alert says we need to. And we think we could be getting slightly better gas mileage (we got 25 mpg when we drove it to Minnesota 2 years ago, and now get around 22.3 tops). I don't have them on hand right now, but I'll be double-checking the repair/maintenance records the previous owner supplied to see if there's note of what kind of plugs/wires he had put in.

In any case, the mechanic said he did the fluids and AC, which pissed me off a bit because the popping noise had not been fully diagnosed and I didn't want to put any money into something as unimportant as AC when still faced with possibly pricey repairs, and had VERY plainly told him so when I dropped the car off. I let that go and asked about the alignment. He said, "you want an alignment?" as if I'd never mentioned it (and saw him write it down). I did say I was not sure if an alignment should be done in case whatever's causing the popping noise would cause the car to quickly go out of alignment again. But that the car has a wobbly ride. He had not test driven it himself (had another guy do it) and didn't know about the wobbly ride. I said yes, it's quite obvious when driven, and that the tires are wearing unevenly, too. I told him I had to talk to my husband before he did anything else.

I talked to my husband. At this point, he was pissed and didn't want this guy doing anything else to it. So I called the guy back. He was out test driving the van, so I told the person on the phone to have him call me as soon as he got back.

Over a half hour went by. I called back. He answered the phone. He had been "messing with another car" and didn't call me. At this point, it was getting VERY late in the day and I needed the car back so I could pick up my husband from work. He said he felt the wobbly drive but blamed it on the condition of the tires. I don't doubt that is a big part of the problem at this point. However, the tires wore very quickly and both my husband and I think it's due to a misalignment.

I had a lot of trouble being confrontational with this guy because 1) I don't think he was intentionally blowing off my concerns 2) I trust that he wasn't trying to rip me off 3) I needed him to pick me up from the library and take me back to the shop to get my car, so I was facing a very uncomfortable ride if I at all got testy about things like him charging the AC, etc.

My husband and I are also willing to admit that we're not used to owning a vehicle that needs relatively little service. We're used to having lots of things go wrong with our cars (the 1999 Chevy S-10 was a particular nightmare of dysfunction), and having to dump a lot of work and time into them. We're willing to admit maybe we're not used to being told "the car is fine, it doesn't need pricey repairs done."

At this point, my husband and I agree on a course of action:

1) We're going to get 4 new (used) tires put on the car. We have a total of $1150 we're prepared to put into the car (after the $150 we paid this guy yesterday), and have a reliable tire shop with a set of nearly new tires for about $200 we're going to pursue.

2) Before we do that, we're going to take the car, with the current tires intact, to an already highly recommended alignment shop so they can see the tire wear and test drive it first. We'll tell them about the popping noise and get their opinion. If they don't do the sort of work that might be involved in diagnosing and fixing that, we'll ask for their recommendation on a place to take it.

3) We'll get the tires. And take the car to either the alignment shop or the recommended mechanic to have the popping noise properly diagnosed and repaired, and aligned.

4) We'll check maintenance records about the plugs/wires and ask a 2nd opinion if we still think it's necessary.

I welcome input as to whether we're still on the wrong track with our new plans. It's not usual that we have this kind of money to devote all at once to car maintenance. We need to make sure we keep this van on the road.

My 2002 Ford Expedition Air Bag Light is on and Flashing Code 42

I have a 2002 Ford Expedition with the Air Bag Light on flashing 4 times then 2 times over and over. I tried turning off my car and restarting it but the light keeps coming back on and keeps flashing. I keep thinking my airbag is going to go off and it scares me. What should I do?

Response:
First off, anytime the airbag light is on the airbag system is turned off and will not deploy the airbag even if you get in a crash. You will need to have a mechanic scan the system and diagnose the problem and have it fixed. The most common issue on this particular vehicle is the the drivers side front airbag sensor becoming corroded. Cleaning the connections and or replacing the sensor is usually needed.

GM's loss is Uncle Sam's . . . loss, too

General Motors can see a silver lining in those billions of dollars in losses it piled up in the years before declaring bankruptcy in 2009. So-called tax loss carry forwards will allow the company to avoid about $45 billion in taxes on future profits, the Wall Street Journal reported last week.

The giant tax break will be good for up to 20 years.

GM might have lost those accounting provisions when it emerged from bankruptcy as a new company last year. That's what normally happens when a company undergoes a major change in ownership as part of a restructuring.

But a little-noticed ruling by the feds last year allows companies that got a bailout under the Troubled Asset Relief Program to retain those tax benefits, the newspaper said. So GM can keep more of its future profits.

The tax benefits were cited in the public disclosure preceding GM's initial public offering of stock, which will be launched this month.

Coolant Leak in 2001 Sunfire

Hello! HELP PLEASE!!!!! I have a 2001 Sunfire and my coolant keeps leaking out, I put some Coolant in it yesterday in Michigan City Indiana, and got home and the low coolant light came back on. Anyone, have an ideal what the problem could be? Im praying its not a big issue, so any help will be greatly appreaciated..

Response:
1) Check your hoses for a leak if that don't get it maybe you have a small crack in your radiator

2) Check for leaks under the car. Could be caused by a hose leak, bad water pump or radiator. If you don't see any leaks check your oil dipstick, if it is a milky or gray shade it could be a cracked head or head gasket which is bad. The milky or gray shade means the coolant is leaking into your engine and mixing with the oil.

3) I used "Bars stop leak" on mine last year around this time. Worked like a charm, haven't had a problem since. I drive a 1993 Saturn SC2.

4) take it to any auto shop and ask if they can give it a presure test, it should cost little or nothing

5) Google "Dexcool". Thats the red coolant that GM started using around 95 or 96. After reading the horror stories, decide if you still want to keep the car. This stuff will eat gaskets and metal engine parts to the point where you will eventually have to replace the engine. A friend with a late 90's Caddy spent 2 grand to replace the heads, and a month later 5 grand for a new engine. The car was only two years old. Another friend with 2 Chevy vans, a 96 and an 02 spent 800 bux to have the cooling systems 'super flushed' and an intake gasket on the 96 replaced. A month later he blew the engine on the 96. I checked the oil level and it was 4 inches past full. The coolant leaked into the oil pan. A month later he had to replace the lifters on the 02. Don't remember the cost on that one.

I just ain't worth it.

New Chinese policy may force foreign automakers to share intellectual property

Foreign automakers may have to share innovative electric-vehicle technology with Chinese companies in exchange for access to the nation's growing light-vehicle market, The Wall Street Journal reported, citing executives at a group of international automakers familiar with the government's plans.
China's Ministry of Industry is drafting a 10-year plan aimed at making the nation a leader in hybrid and electric-car technology.
The ministry's proposal could require foreign automakers to enter into joint ventures in which Chinese companies hold majority stakes, the newspaper said.
Major foreign automakers fear China will use the initiative to gain control of their intellectual property. China is now the world's largest vehicle market and a major source of sales and profits for many foreign automakers. Under China industrial policy, foreign automakers typically have to establish joint ventures with Chinese automakers to gain access to the market.
At the same time, the country has yet to produce a domestic automaker that can compete globally on the same scale as Toyota Motor Corp., Volkswagen AG and General Motors Co.
Chinese government officials see the electric and hybrid initiative as an opportunity to create such an automaker, The Journal said.
Raising a hurdle
A draft of the Ministry of Industry's electric-vehicle plan includes an investment of up to 100 billion yuan, or $15 billion, in charging stations and other infrastructure.
It also would create three to five globally competitive Chinese car companies with a capacity to build 3 million hybrid cars by 2020, according to The Journal. China hopes the initiative also will produce two to three global makers of core parts, such as advanced batteries and electric motors.
One foreign auto executive quoted by The Journal said the Ministry of Industry's draft "unnecessarily raises the hurdle for our plans for producing an electric car in China." Because China is likely to be a major market for electric cars and plug-in hybrids by 2020, foreign automakers will need to build such vehicles in China, the unidentified executive told the paper.
“The new pending policy would make the process unnecessarily more cumbersome and complicated," he said.
For automakers and other industries, China's importance has grown in the wake of the global financial crisis. But at the same time, Chinese leaders have sought to trade market access for technology to transform the country's industrial base.
In July, the U.S. Chamber of Commerce warned that China's policies are "forcing foreign technology companies to anguish over balancing today's profits with tomorrow's survival."
The Beijing government, according to The Journal, says concerns about the country's investment environment are unfounded.
"China is committed to creating an open and fair environment for foreign-invested enterprises," Chinese Premier Wen Jiabao told global business leaders at a meeting of the World Economic Forum in China this week. "Foreign-invested enterprises in China on the whole enjoy a good environment and have reaped good returns."

94 Olds Delta 88, 3.8L V-6 serpentine belt replacement

My 94 Olds Delta 88, 3.8L V-6 is on a belt chewing tantrum. The old serpentine drive belt was several years old with cracks across the belt ribs. Well, it separated apart, splitting completely along the ribs last week. I replaced the belt with a new belt from O'reilly auto parts, "Master Pro" brand. I installed the new serpentine belt, making sure that the pulleys were clean of any old belt debris and according to OEM belt routing diagram. I have taken the same belt off/on this engine many times in the past so I am very familiar with the belt routing.
Now after several days of using the car for 25-50 miles. I heard clunking sounds and after raising the hood, the new belt has chewed the inner side up and nipped off a 12" long thin piece, like one rib wide.
Since the belt is shaved, it is now riding out of line from one pulley to another.
What is the cause of this belt chewing? I checked/double checked to make sure the new belt was routed and seated in the pulleys correctly.
All pulleys appeared to me ok, rotating well with no (in/out)end play.
The only other thing that I noticed was it put some holes in the under hood insulation padding and the top covering, cloth, I think was hanging down where IT POSSIBLY could have been caught in the serpentine belt, would that throw the belt off line and caused the belt damage/shave?
One other thing I will note is the engine harmonic balancer has a slight wobble but it has had that for quite a long time.
Please give me some advice on correcting this belt monster. I wouldn't want to buy a $40 better belt only to have it eaten too.

Response:
Check your Belt Tensioner out. It sounds as if it is worn out and out of line. These are available at most parts stores for around $50 and have 2 plastic inserts for the water jacket and Heater Hoses. Also most people don't look at them just the pulley. If you can see any of the internal spring, it's worn out.

Vibration after Replacement of new rotors

I recently purchased 2 new rotors for my suzuki grand vitara and had my tech install the new rotors, when I drove off… I had a shake in the steering wheel when applying the brakes and it felt like the brakes was slipping when pressing on the brakes. I took off the wheel to check for oil or dirt on the rotors and didnt see any oil/dirt on the rotors. I then took it back the tech and he install the old rotors back and didnt have the problem anymore. My tech informed me that the rotors wasnt a good set and where not balance and I needed to take them back to the store and get a replacement. Was this information correct that I was told?

Response:
This is accurate information. The new rotors you had put on were no good right out of the box, it happens form time to time.

The store should Brake Article

the rear brakes on this stratus and the right rear caliper will not release

I replace the rear brakes on this stratus and the right rear caliper will not release. There seems to be nothing wrong with the caliper itself. The pressure does not back off when you take your foot off the brake. I think it has anti-lock braking system. Any Ideas.

Response:
Is it only one side that will not release? How do you know that. Did you try squeezing the caliper back away from the pads?
1) Sounds like the rubber part of the line has collapsed,that line has a inner line that gets weak and when you press on the brake pedal it lets the fluid flow out to the caliper but when you let off and the fluid tries to return back the line collapses keeping pressure on caliper not letting it release...
2)And to prove this, get a c-clamp and push the piston back into the caliper. Remove the clamp and the piston should stay in the caliper. Start the car, push on the brake petal, turn the car off, and check to see if the piston stays in the out position. If so, replace the rubber hose. You will need to bleed the air out of the lines when that is done. Get some penetrating oil. I like Kroil, others on this list like PB Blaster. Spray the bleeders until you can loosen them. You will also need a friend to help with the bleeding.

3)
Do you know the the stratus has screw in rear calipers and not push in calipers???

2009 Jeep Grand Cherokee Brake Noise

My brakes make a horrible a screeching noise with light pressure on the brake. They’ve been inspected several times and I ‘m told my brakes are fine. I’m told the thickness of the brake pads is fine. They’ve blown off “dust” which didn’t improve anything. I’m told they can cut the rotor but you can only get one cut from a rotor. I can have new brakes installed but if I’m told my brakes are fine…why would I have new ones put on? I’m at a loss on how to remedy this situation. This is a new vehicle. Brake noise started at 8,000 miles. It’s a 2009 JEEP Grand Cherokee.

Response:
from a safety and function stand point, there is no need to replace the brakes. The brakes will perform properly.

You can have the brakes cleaned multiple times but unless you have the pads and rotors replaced, the noise will return over time.

I would ...read the entire brake article

1989 ford ranger sending unit help

1989 Ford Ranger 6 cyl Two Wheel Drive Automatic

I need a new FUEL SENDING UNIT but when I talked to a local auto supplier they asked if the sending unit was on the passenger or driver side. Is there anyway I can tell which sending unit I need to purchase without dropping the fuel tank?

Apparently, the sending unit for the “drivers side” is twice the price of the passenger side but when I searched EBAY to purchase a sending unit it never indicated whether it was for the drivers or passenger side.

Response:
A fuel Sending unit is in the gas tank and sends an electrical signal to the fuel gauge on the dash to display how much fuel you have left.

A fuel Pump sends fuel to the fuel rail. On this vehicle it has 2 fuel pumps. One low pressure pump located in the gas tank mounted to the fuel sending unit. And One high pressure pump located on the frame rail of the truck.

So you will need to attach a fuel pressure gauge to the the fuel rail test port and test the pressure. It needs to be 30 psi. If all you see is 20 psi or less, you need to replace the READ ENTIRE ARTICLE

1998 jeep grand cherokee a/c leak

i have pumped up pressure to high end and low end of the system with nitrogin and cant hear or see leak. i did try to fill system with refridgerant first and it leaked out in a day and a half so it has a big leak but i am so boggled by this. do you have any advice for me


Response:
 
Replace the Evaporator. Ask any repair shop and they will tell you that the evaporator is the most common problem with the jeep Cherokee’s. This is also why it is difficult to see a leak. You might have to run the Air Conditioning and use a sniffer to prove it since it is buried in the dash.

http://www.freeautomechanic.com/airconditioning.html

1996 K2500 died while driving and not getting gas

I have a 1996 K2500 4×4 5.7 liter that suddenly stopped running while I was driving. It had to be towed and now I am stumped as to what the problem is. The filter is fine, all fuses have been checked, if I pour gas into the carburator it fires up it is just not getting gas to the carburator. The pump is okay. Anybody have any suggestions as to what I can do to try and get this truck running?

Response:
This should be a Fuel injected engine, and it is going to require lots of fuel pressure. So first thing I would do is put a fuel pressure gauge on it and see where your at. You need to be around 55 to 62 KOEO(key on engine off). If it is less than that, swap out the fuel filter as it can possibly increase if it is clogged. I have gotten as much as 5 more psi doing this. If you are still below the minimum 55 psi, You will need to replace the fuel pump (quite common)

charging system question on 1999 Lincoln Continental

I need some electrical charging system advice> My 1999 Lincoln seem to have a faulty or limited charging system. I just changed batteries and traded for a higher quality that the one I replaced. It seems that the battery is not receiving a full charge and the battery -after only three weeks- shows low charge or need service when checked. The old battery had the same problem and left me several times stranded with no starting power. the day I changed batteries it started almost as soon as the key was turned, now it takes a couple of turns and when I took it to Jiffy Lube for service the battery was low.

there is no charge fault light that comes on the instrument panel, however I do understand that something is not quite right. Can use some guidance in troubleshooting and avoid doing a dozen expensive things by trial and error.
 
Response:
1) Ring out the voltage at the battery when the engine is idling. Should be between 14.2-14.4 volts. If low, check the belt(s) or alternator.


2) Also, if a serpentine belt, check the idler to see if the shaft is not bent, and the pulley runs freely.


3) you can take the alternator in to auto zone and get it tested free. Its usually the alternator when a car doesn't charge enough.
 
4) Yes 9 out of ten times is the alternator that has a bad diode and all of your energy leaks out, you can test by placing a screw driver on the back of the alternator while the car is not running and no key on the ignition if the screw diver is attracted to the alternator due to magnetism then you know to replace the alternator.

Diagnosing an Air Conditioning Leak in your car's AC System

Air Conditioning Leak

If your Air Conditioning System seems to loose its cool, no pun intended, it is most likely do to a lose of freon. Freon itself is colorless and can be difficult to locate. Most shop mechanics will add approved fluorescent dye to the Air Conditioning system in order to help locate the leak. Once the dye has been added to the AC system and freon level topped off. Run the engine for 10 - 15 minutes with the AC on Max. Look for signs of the dye around all AC system components. Once you see where the dye has leaked out it is just a matter of swapping out a bad o-ring or replacing the compressor (shown above). The Dye can be easier to see under UV light but is not necessary in all cases.

More Air Conditioning Troubleshooting Tips

2001 Audi A4 trouble starting

I have an Audi A4 2001. sometimes when I start it, after moving it, just cant start even though the radio lights came on. But after say one hour, when I try to Start the engine, it comes on.What could be the problem? And the brakes are hard to press.

Response:
Thus could be caused by a bad starter assembly. Best way to test this is to check for voltage at the starter when it will not start…. if it is getting voltage and not turning over, you guess it = replace the starter.

Brake pedal feel is firm, but brakes lack sufficient stopping power or fade
1.Check the operation of the brake booster and brake booster check valve. Replace worn or failed parts.
2.Check brake linings and brake surface areas for glazing and replace worn or damaged parts.
3.Check for seized hydraulic parts and linkages, and clean or replace as needed.
http://www.freeautomechanic.com/brakes.html

1997 Honda Accord Error Codes

1997 Honda Accord 4-cyl VTEC engine light is on. Autozone diagnostic tester displayed these possible errors/causes:
P0401 - EGR insufficient flow, possible EGR Valve, blocked EGR passages in engine;
P0171 - (1) Fuel system too lean bank 1 (Cly #1), large vacuum leak [I found a disconnected hose between valve cover (Cyl#1) and air intake], (2) Fuel system concern, (3) Ignition system concern, (4) MAF sensor faulty, (5) HO2S/AF ratio sensor fault.

P0453 - (1) Sensor circuit high voltage, (2) Open or short circuit condtion, (3) Poor electrical condition, (4) Faulty FTP sensor.

I don’t know where these sensors are located and whether I should change them out if other possible causes might produce the same errors. I found a hose disconnected between the valve cover at #1 Cyl and the air intake.

Can someone shed some light on what might be wrong and how I should proceed?

I looked for vacuum leaks and found a hose disconnected at the #1 Cyl valve cover. The other end was connected to the air intake cover. If I knew where the sensors in question are, I might be able to check the wiring and do some continuity and voltage checks.

Air Conditioning 2002 Dodge Durango nothing coming out of dash vents

Air worked fine when it first got hot out this year. Now it only works in the back and the defrost part of dash. Nothing comes out of other dash vents. Any ideas what problem is?

Response:
1) Got Kids? If so, they more than likely dropped something in 1 of the side vents.
2)in some cases if the system is low on refrigerant, the system will ice up blocking some of the vents. try topping off the system with a little more refrigerant

3) Most likely a failed vent/mode door actuator has failed. The Air Conditioning System itself is fine or it wouldn't blow cold at all. The Blower motor is fine or it wouldn't blow air. So the only thing left is the door is jammed or the electrical actuator that moves the "mode" door from vent/dash/floor.

2005 Toyota Tundra SR5 Estimate for Repairs

rack and pinion assembly, Rack Mount Bushings, Left & Right outer tie rod, and Left & Right upper control arm bushings. I need an estimate please.


I would definitely like to know how long each should take and if any of the time gets cut out because of another part of the repair. Just wanting to know if I'm getting hosed. (we are in the military and are over seas and we are told to be careful of the locals over charging us Thanks!)
 
Response:
 
rack and pinion assembly, Rack Mount Bushings, Left & Right outer tie rod, and Left & Right upper control arm bushings


I would definitely like to know how long each should take and if any of the time gets cut out because of another part of the repair.

The cost of replacing the Steering Rack is aout $1200.00 including both outer tie rod ends. Tie rod ends by them selves would be about $250- $300. The control arm bushings run about $145.00 per side so about $290 for both. So the entire service would run about $1490.00 Plus (shop add ons) plus tax. Some shops do not have ad ons, but most do... like shop supplies, etc. Be sure to ask up front so you are not supprised.
 
Reply:
 
Thanks! Actually, come to find out they were trying to screw us. Went to another shop and it was only the tie rod bushing (i think that's what he called it). It was a thick gasket looking thing in the center of the tie rods and it was just starting to get a little worn so there was very slight play. Cost us $132 for the repair, part, and an alignment. Thanks for the info anyways, but I'm Glad I didn't need it!


V/R
Gena

Nissan says cheaper U.S. Leaf price due to tax, incentive gaps

Nissan Motor Co., aiming to be the biggest seller of electric cars, said a lower U.S. price for its Leaf hatchback compared with Japan and Europe reflects differences in local taxes and incentives and that the vehicle will eventually make money in all markets.

Nissan said this week its battery-powered Leaf will cost about $37,000 in Europe after incentives. That compares with $32,780 in the U.S. before incentives and a base price in Japan of more than $40,000. Variations in import fees, taxes and incentives account for the disparities, said Tom Smith, Nissan's chief marketing manager for European electric auto sales.

“If you just translate the U.S. price into euros, you seem to get a significant difference,” Smith said in a phone interview from Nissan's headquarters in Yokohama, Japan. Excluding Europe's higher tax on the vehicle and an import duty that's four times that in the U.S., “we are priced at exactly the same level in both markets,” he said.

The Leaf, powered by a lithium-ion battery pack, will go on sale in Japan and the U.S. this year and in Europe next year. Nissan's CEOCarlos Ghosn has set a goal of leading sales of rechargeable vehicles, which he estimates may make up 10 percent of global auto demand by 2020.

While competitors Toyota Motor Corp., General Motors Co. and Ford Motor Co. are preparing to sell battery-powered and plug-in hybrid models, none has announced plans matching Nissan's goal of being able to sell as many as 500,000 electric cars by 2012.

Too low?

Nissan aims for the Leaf to compete in price with Toyota's gasoline-electric Prius and Honda Motor Co.'s Civic Hybrid in the U.S. The vehicle qualifies for a $7,500 federal tax credit and may get an added $5,000 rebate in California, where large automakers are required to sell electric vehicles.

Based on cost estimates for Leaf's battery pack, electronic components and production, the U.S. price seems too low, at least initially, said John Kluza, a battery analyst at Lux Research in Boston.

The current cost of the 24-kilowatt-hour battery pack, capable of propelling the Leaf as far as 100 miles (160 kilometers), may be about $20,000, Kluza said. Nissan has declined to provide cost details.

“It seems the goal was to price Leaf to get sales volume even if there's some initial loss,” Kluza said. “In the first year or so, perhaps they'll take a hit of $2,000 on each car, maybe more. Over time, as battery production scales up, that price will start to look more appropriate.”

‘All the information'

The U.S. price excludes local sales taxes, which vary across the country, and a destination and handling charge of about $800, according to Jung.

Takeshi Miyao, a Tokyo-based analyst for consulting company Carnorama, estimates battery-pack and component costs for the Leaf are about 2.45 million yen ($26,900), excluding labor and other expenses.

Analysts such as Kluza and Miyao “don't have all the information,” said Nissan's Trisha Jung, chief marketing manager for U.S. electric vehicle sales, who oversaw local pricing for the model. “We are the first affordable, mass- market electric vehicle. We're pricing appropriately to ensure that.”

Nissan is factoring into the price the longer-term impact of state and U.S. federal incentives it won to produce the Leaf at its Smyrna, Tennessee, plant and build a lithium-ion battery factory next to it, said KG Duleep, who researches advanced auto technologies for consultant ICF International. Those incentives included a $1.6 billion low-cost federal loan won in 2009.

Advance orders

“When automakers price, they build in all aspects of capital costs over a multi-year period, and Nissan is getting a substantial amount of assistance,” said Duleep, who is based in Washington. “There's probably some loss on the first few thousand cars, but perhaps by 2013 or so their costs might be at or below $30,000 a vehicle.”

It took Toyota at least 10 years to make a profit on its Prius, which was introduced in 1997, when research, development and capital costs are included, said Koji Endo, managing director at Advanced Research Japan in Tokyo. It may take Nissan about the same amount of time, he estimated.

For a new car powered by a conventional gasoline engine, it usually takes about four years to make a profit, he said.

Nissan has a goal of 20,000 advance orders for the Leaf, which is set to begin arriving in the U.S. late this year. The company will mark the start of construction of its U.S. battery plant in Smyrna on May 26. The facility, to open in 2012, will have capacity to make lithium-ion battery packs for as many as 200,000 vehicles annually.