U.S. safety regulators have upgraded an investigation more than 382,000 Saturn Ion cars for possible steering problems.
The National Highway Traffic Safety Administration said it opened the engineering analysis after it and Saturn, a brand General Motors discontinued in 2009, received more than 4,000 complaints about sudden loss of electronic power steering assist in cars from model years 2004 through 2007.
Sixteen of the complaints said the power steering warning lamp had illuminated before or during the loss of power steering assist and the increased effort required to steer contributed to a crash, according to documents filed by NHTSA. Two of the crash claims indicated the driver was injured.
NHTSA also said GM had received 17,385 warranty claims related to the issue.
A GM spokesman said the automaker was cooperating with NHTSA.
Last year, GM recalled 1.05 million Chevy Cobalt and Pontiac G5 vehicles to correct a defect in the electronic power steering assist motor, according to NHTSA. The defect was described as a buildup of brush debris mixed with oily material that caused the motor to stop functioning; "the same problem identified in the current subject vehicles," NHTSA said.
Previously NHTSA investigated the sudden loss of power steering assist in model year 2005 through 2010 Chevrolet Cobalt vehicles.
In May 2011, GM provided safety regulators with complaint, warranty and power-steering system information for the Ion, as well as the Pontiac G6 and Chevy Malibu, according to NHTSA. In that response, GM indicated the power-steering system used in those vehicles was the same as that used in model year 2005 to 2010 Cobalts and Pontiac G5s.
NHTSA said it has duplicated the power-steering system failure in both a Cobalt and an Ion previously tested.
Showing posts with label Questions to ask when buying a car. Show all posts
Showing posts with label Questions to ask when buying a car. Show all posts
Wednesday, October 05, 2011
Monday, September 26, 2011
Ford F-150, Escape defect probes closed by U.S. regulator
Investigations into safety defects in Ford F-150, Escape and Mercury Mariner vehicles were closed without additional recalls, the U.S. National Highway Traffic Safety Administration said.
The auto-safety regulator ended probes into the 1997 to 2004 F-150 pickup trucks and 2010-2011 Escape and Mariners, according to a report posted today on its Web site.
Ford Motor Co. last month recalled some F-150s voluntarily for fuel-tank strap corrosion. The investigation into the Escapes and Mariners was for rear lift-gate window defects.
The agency, in its monthly report of closed investigations, also rejected a request to investigate Toyota Motor Corp. model-year 2008 Corolla cars for front air bags that may not deploy.
The auto-safety regulator ended probes into the 1997 to 2004 F-150 pickup trucks and 2010-2011 Escape and Mariners, according to a report posted today on its Web site.
Ford Motor Co. last month recalled some F-150s voluntarily for fuel-tank strap corrosion. The investigation into the Escapes and Mariners was for rear lift-gate window defects.
The agency, in its monthly report of closed investigations, also rejected a request to investigate Toyota Motor Corp. model-year 2008 Corolla cars for front air bags that may not deploy.
Wednesday, September 21, 2011
GM to develop electric cars in China with SAIC, but won't share Volt
General Motors Co. says it plans to develop an electric vehicle with Chinese partner SAIC Motor Corp., and it won't be just a copy of the Chevrolet Volt.
GM and SAIC announced the project in a statement today and during various media events from Shanghai this morning.
In a teleconference today with journalists, GM Vice Chairman Steve Girsky confirmed that GM will form a 50-50 joint venture with SAIC to develop an EV for the Chinese market.
That vehicle will be designed by the Pan-Asia Technical Automotive Center (PATAC), a design studio in Shanghai run by the two partners.
The EV will be a new vehicle, not an adaptation of an existing model like the Chevy Sonic, Girsky said. But he did not indicate whether the vehicle would be a small city car, when it would be introduced or how much it will cost.
"New technology is expensive and high-risk," Girsky said. "We will utilize our partners...to lower our risk and development costs, and bring technology to the market more quickly."
As the project moves forward, GM will move ahead with its plans to import small numbers of the Chevrolet Volt into China.
No subsidy
Girsky said GM hopes to persuade the Chinese government to extend its sales subsidy to imports such as the Volt. "We are hopeful that China will consider extending incentives to all vehicles in the future," he said.
Girsky also emphasized that the Chinese government has not pressured GM to share the Volt's technology with its Chinese partners.
GM's collaboration with SAIC, which was launched in 1997, has been profitable for both companies. SAIC now is China's largest domestic automaker, and GM is China's biggest foreign automaker.
The partners produce Buicks and Chevrolets for sale in China, and they also produce a commercial microvan called the Sunshine, China's top-selling light vehicle.
GM plans to introduce 60 new and upgraded models in the country during the next five years, the company said during the Shanghai auto show in April. GM and SAIC operate ten joint ventures in the nation.
Girsky said GM is confident that it can safely share its intellectual property with SAIC. "This is not the first time that we've brought intellectual property into China," Girsky said. "We work well with this partner."
China ventures
Automakers including Daimler AG and Nissan Motor Co. have announced plans to add alternative-energy vehicles in China as the world's largest polluter seeks to reduce emissions. The government aims to have 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.
Vehicle sales are forecast to slow this year in China, after sales-tax breaks and rebates for rural buyers ended in January and following central bank interest-rate rises.
Overall sales in the first eight months of the year rose 3.3 percent to 12 million units, with passenger-car sales gaining 6.1 percent to 9.2 million units, the China Association of Automobile Manufacturers said on Sept. 9. Deliveries climbed 32 percent last year.
The Shanghai GM joint venture introduced the Chevy Sail electric concept vehicle late last year. Vehicles developed under the partnership will be sold in China under Shanghai GM and SAIC brands, and GM also will use the architecture to build electric vehicles globally.
The agreement finalizes a nonbinding memorandum on cooperation for green-vehicle development SAIC and GM signed last November. At the time, SAIC agreed to buy a 1 percent stake in GM through an initial public offering held to make GM a public company again and cut the U.S. Treasury's stake in the company.
GM and SAIC announced the project in a statement today and during various media events from Shanghai this morning.
In a teleconference today with journalists, GM Vice Chairman Steve Girsky confirmed that GM will form a 50-50 joint venture with SAIC to develop an EV for the Chinese market.
That vehicle will be designed by the Pan-Asia Technical Automotive Center (PATAC), a design studio in Shanghai run by the two partners.
The EV will be a new vehicle, not an adaptation of an existing model like the Chevy Sonic, Girsky said. But he did not indicate whether the vehicle would be a small city car, when it would be introduced or how much it will cost.
"New technology is expensive and high-risk," Girsky said. "We will utilize our partners...to lower our risk and development costs, and bring technology to the market more quickly."
As the project moves forward, GM will move ahead with its plans to import small numbers of the Chevrolet Volt into China.
No subsidy
Girsky said GM hopes to persuade the Chinese government to extend its sales subsidy to imports such as the Volt. "We are hopeful that China will consider extending incentives to all vehicles in the future," he said.
Girsky also emphasized that the Chinese government has not pressured GM to share the Volt's technology with its Chinese partners.
GM's collaboration with SAIC, which was launched in 1997, has been profitable for both companies. SAIC now is China's largest domestic automaker, and GM is China's biggest foreign automaker.
The partners produce Buicks and Chevrolets for sale in China, and they also produce a commercial microvan called the Sunshine, China's top-selling light vehicle.
GM plans to introduce 60 new and upgraded models in the country during the next five years, the company said during the Shanghai auto show in April. GM and SAIC operate ten joint ventures in the nation.
Girsky said GM is confident that it can safely share its intellectual property with SAIC. "This is not the first time that we've brought intellectual property into China," Girsky said. "We work well with this partner."
China ventures
Automakers including Daimler AG and Nissan Motor Co. have announced plans to add alternative-energy vehicles in China as the world's largest polluter seeks to reduce emissions. The government aims to have 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.
Vehicle sales are forecast to slow this year in China, after sales-tax breaks and rebates for rural buyers ended in January and following central bank interest-rate rises.
Overall sales in the first eight months of the year rose 3.3 percent to 12 million units, with passenger-car sales gaining 6.1 percent to 9.2 million units, the China Association of Automobile Manufacturers said on Sept. 9. Deliveries climbed 32 percent last year.
The Shanghai GM joint venture introduced the Chevy Sail electric concept vehicle late last year. Vehicles developed under the partnership will be sold in China under Shanghai GM and SAIC brands, and GM also will use the architecture to build electric vehicles globally.
The agreement finalizes a nonbinding memorandum on cooperation for green-vehicle development SAIC and GM signed last November. At the time, SAIC agreed to buy a 1 percent stake in GM through an initial public offering held to make GM a public company again and cut the U.S. Treasury's stake in the company.
Tuesday, September 20, 2011
Hyundai recalls 205,233 SUVs in U.S. on front air bag defect
Hyundai Motor Co. said it is recalling 205,233 Santa Fe and Veracruz sport-utility vehicles in the U.S. because front air bags may not deploy when needed.
Hyundai said the electrical parts used to deploy air bags may not conduct current properly, causing them to not work in the event of a crash. The automaker announced the recall today on the National Highway Traffic Safety Administration Web site.
Hyundai told the regulator in a Sept. 8 letter posted on the Web site that it has received about 7,800 warranty claims for air-bag defects in the vehicles and isn't aware of any accidents or injuries caused by it.
In the year model 2007-2008 SUVs being recalled, the clock spring contact assembly for drivers' front air bags may become damaged, leading the air bag's electrical circuit to experience high resistance and potentially causing it to not deploy, Hyundai told the regulator. If this happens, the air-bag warning light on the instrument panel will turn on.
"Hyundai is voluntarily initiating this action to ensure the safety and quality of vehicles and the continued satisfaction of our customers," Miles Johnson, a U.S.-based spokesman, said in an e-mail.
Hyundai said the electrical parts used to deploy air bags may not conduct current properly, causing them to not work in the event of a crash. The automaker announced the recall today on the National Highway Traffic Safety Administration Web site.
Hyundai told the regulator in a Sept. 8 letter posted on the Web site that it has received about 7,800 warranty claims for air-bag defects in the vehicles and isn't aware of any accidents or injuries caused by it.
In the year model 2007-2008 SUVs being recalled, the clock spring contact assembly for drivers' front air bags may become damaged, leading the air bag's electrical circuit to experience high resistance and potentially causing it to not deploy, Hyundai told the regulator. If this happens, the air-bag warning light on the instrument panel will turn on.
"Hyundai is voluntarily initiating this action to ensure the safety and quality of vehicles and the continued satisfaction of our customers," Miles Johnson, a U.S.-based spokesman, said in an e-mail.
Monday, September 19, 2011
Toyota says rechargeable Prius will be be priced at $32,760
Toyota Motor Corp., the world's biggest seller of gasoline-electric cars, said today the rechargeable version of its Prius hybrid will cost $32,760, including transportation costs, when it goes on sale early next year.
The car goes as far as 15 miles solely on electricity, after which it runs as a standard 49 mpg Prius, Bob Carter, Toyota's group vice president for U.S. sales, told reporters here today. Toyota dealers will start selling the car in 14 states on the West and East coasts in March, he said.
The plug-in Prius' lithium-ion batteries recharge from a standard wall outlet and don't require installation of costly charging equipment. It will qualify for a $2,500 federal tax credit, Carter said.
"This will be the most affordable plug-in in the market," Carter said.
GM has said its 2012 model Chevrolet Volt will cost $39,145, before a $7,500 federal tax credit. That rechargeable model goes about 35 miles on electricity per charge, before a gasoline engine engages to power the vehicle.
Toyota plans to offer four Prius models, including the Prius v wagon that goes on sale next month and a compact version next year. Prius will outsell Camry, the nation's top-selling car line, to become Toyota's most popular models by the end of the decade, Carter said.
U.S. sales of the rechargeable Prius should be about 15,000 units in its first 12 months on the market, he said. It can average more than 80 mpg, based on company tests, he said.
The Prius v wagon will have a $27,160 starting price, including transportation. It gets an average of 42 mpg, Carter said.
The car goes as far as 15 miles solely on electricity, after which it runs as a standard 49 mpg Prius, Bob Carter, Toyota's group vice president for U.S. sales, told reporters here today. Toyota dealers will start selling the car in 14 states on the West and East coasts in March, he said.
The plug-in Prius' lithium-ion batteries recharge from a standard wall outlet and don't require installation of costly charging equipment. It will qualify for a $2,500 federal tax credit, Carter said.
"This will be the most affordable plug-in in the market," Carter said.
GM has said its 2012 model Chevrolet Volt will cost $39,145, before a $7,500 federal tax credit. That rechargeable model goes about 35 miles on electricity per charge, before a gasoline engine engages to power the vehicle.
Toyota plans to offer four Prius models, including the Prius v wagon that goes on sale next month and a compact version next year. Prius will outsell Camry, the nation's top-selling car line, to become Toyota's most popular models by the end of the decade, Carter said.
U.S. sales of the rechargeable Prius should be about 15,000 units in its first 12 months on the market, he said. It can average more than 80 mpg, based on company tests, he said.
The Prius v wagon will have a $27,160 starting price, including transportation. It gets an average of 42 mpg, Carter said.
Friday, September 16, 2011
U.S. fuel-economy rules projected to spur at least 10% cut in car weight
The U.S. government's new corporate average fuel economy target has spurred automakers to launch a campaign to slash the weight of their vehicles.
There appears to be a growing consensus that vehicle weight must be reduced 10 to 15 percent to achieve the government's 54.5 mpg fuel economy standard, effective by the 2025 model year.
This month, research firm Ducker Worldwide of suburban Detroit issued a report that forecast vehicle weight reductions of 10 to 12 percent by 2025. Meanwhile, the Center for Automotive Research in Ann Arbor, Mich., predicted vehicles would be up to 15 percent lighter.
A typical vehicle weighs about 3,625 pounds, which means automakers will seek to eliminate 360 to 540 pounds, if industry estimates are correct.
At least one automaker, Ford Motor Co., has publicly vowed to reduce the weight of new models introduced through 2020 by 250 to 750 pounds per vehicle.
Most likely, automakers will achieve this by relying heavily on lighter materials -- such as aluminum, magnesium, composites and carbon fiber -- along with advanced high-strength steel.
Given the high cost of carbon fiber, automakers generally will make greatest use of aluminum and advanced high-strength steel, said Richard Schultz, a Ducker managing director.
"The real loser will be 'mild' steel, but so what?" Schultz said. "The steel mills see this conversion happening, so they are replacing their equipment."
This conversion to lighter materials will occur step by step, as automakers redesign hundreds of parts.
Most companies prefer an incremental approach rather than clean-sheet experiments such as Jaguar's primarily aluminum XJ sedan or the Audi A8's aluminum spaceframe, said CAR President Jay Baron.
Automakers are "risk averse, because making a mistake is so costly," Baron said.
But some ambitious experiments have been launched. The U.S. Department of Energy has funded a $10 million effort by Chrysler Groupto design a seven-passenger minivan that weighs half as much as a typical people mover.
Chrysler declined to discuss the project, but industry sources say the designers will make use of magnesium, aluminum and composite components.
In 2009, Ford said it would reduce the weight of each new model over the next decade by 250 to 750 pounds, depending on vehicle size.
Its new models are starting to show the results of that strategy. The new Explorer, for example, features an aluminum hood that is 17 pounds lighter than a steel one. And a magnesium seat frame for the Explorer's third row saved 10 pounds.
Another example: the Lincoln MKT crossover has a liftgate made with a magnesium inner panel plus an aluminum outer panel. The magnesium-aluminum liftgate weighs 87.5 pounds, vs. 109.5 pounds for a standard steel one.
The liftgate, developed jointly by Ford and Meridian Lightweight Technologies Inc. of Strathroy, Ontario, won a 2010 Automotive News PACE award.
Consumer resistance
Weight reductions such as these arguably are invisible to the motorist, who may not care whether his hood is aluminum or steel. But other efforts to cut weight may encounter consumer resistance.
For example, Magna International Inc., of Aurora, Ontario, developed a front seat called Futureform, a 39-pound product that weighs 20 percent less than a conventional unit.
Its thin seat back saves weight, and thinner contours allow rear-seat passengers more legroom. To hold costs down, Magna used high-strength steel -- twice as strong as conventional steel -- in the frame rather than pricier materials such as carbon fiber or magnesium.
But Magna doesn't have any contracts yet. Why not? Consumers perceive the seat to be less comfortable, admits Jim Rudberg, a seating engineer for Magna.
Uncomfortable looks
The supplier's own tests conclude that the new seat is just as comfortable. But participants in Magna's customer clinics insisted that the seats didn't look comfortable.
This problem first popped up a few years ago, when Magna developed the fold-down seats for Chrysler's minivans with Stow 'n Go seating. Consumers thought the fold-down seats looked too skinny -- hence uncomfortable -- so Magna had to fatten them up.
What will it cost?
While 10-year cost projections necessarily involve guesswork, industry analysts aren't that far apart. The Ducker report puts the cost of a 10 percent weight reduction at $500 per vehicle.
The CAR study estimates that a 15 percent weight reduction would cost $1,156 per vehicle.
Incremental vs. innovative
Such estimates assume that automakers will gradually switch to new materials rather than make a one-time change to slash weight.
But some major innovations are in the works, too. At the Frankfurt auto show, BMW AG is unveiling the i3 electric car, an innovative vehicle made largely of carbon fiber.
In addition, Audi AG is unveiling a redesigned A2 with an aluminum body and spaceframe.
The Detroit 3 may be willing to experiment, too. Schultz of Ducker Worldwide hints that an American automaker plans to develop an aluminum-body vehicle in the next five to 10 years.
Carbon fiber sports car
Likewise, rumors are circulating that an American automaker may develop a sports car with a carbon fiber monocoque, or unibody.
If successful, these projects could speed the pace of innovation. But automakers are unlikely to adopt exotic materials for mass market models regardless of cost.
If the price of a new part is more than 5 to 10 percent higher than the old part, said Magna's Rudberg: "We won't even bother."
There appears to be a growing consensus that vehicle weight must be reduced 10 to 15 percent to achieve the government's 54.5 mpg fuel economy standard, effective by the 2025 model year.
This month, research firm Ducker Worldwide of suburban Detroit issued a report that forecast vehicle weight reductions of 10 to 12 percent by 2025. Meanwhile, the Center for Automotive Research in Ann Arbor, Mich., predicted vehicles would be up to 15 percent lighter.
A typical vehicle weighs about 3,625 pounds, which means automakers will seek to eliminate 360 to 540 pounds, if industry estimates are correct.
At least one automaker, Ford Motor Co., has publicly vowed to reduce the weight of new models introduced through 2020 by 250 to 750 pounds per vehicle.
Most likely, automakers will achieve this by relying heavily on lighter materials -- such as aluminum, magnesium, composites and carbon fiber -- along with advanced high-strength steel.
Given the high cost of carbon fiber, automakers generally will make greatest use of aluminum and advanced high-strength steel, said Richard Schultz, a Ducker managing director.
"The real loser will be 'mild' steel, but so what?" Schultz said. "The steel mills see this conversion happening, so they are replacing their equipment."
This conversion to lighter materials will occur step by step, as automakers redesign hundreds of parts.
Most companies prefer an incremental approach rather than clean-sheet experiments such as Jaguar's primarily aluminum XJ sedan or the Audi A8's aluminum spaceframe, said CAR President Jay Baron.
Automakers are "risk averse, because making a mistake is so costly," Baron said.
But some ambitious experiments have been launched. The U.S. Department of Energy has funded a $10 million effort by Chrysler Groupto design a seven-passenger minivan that weighs half as much as a typical people mover.
Chrysler declined to discuss the project, but industry sources say the designers will make use of magnesium, aluminum and composite components.
In 2009, Ford said it would reduce the weight of each new model over the next decade by 250 to 750 pounds, depending on vehicle size.
Its new models are starting to show the results of that strategy. The new Explorer, for example, features an aluminum hood that is 17 pounds lighter than a steel one. And a magnesium seat frame for the Explorer's third row saved 10 pounds.
Another example: the Lincoln MKT crossover has a liftgate made with a magnesium inner panel plus an aluminum outer panel. The magnesium-aluminum liftgate weighs 87.5 pounds, vs. 109.5 pounds for a standard steel one.
The liftgate, developed jointly by Ford and Meridian Lightweight Technologies Inc. of Strathroy, Ontario, won a 2010 Automotive News PACE award.
Consumer resistance
Weight reductions such as these arguably are invisible to the motorist, who may not care whether his hood is aluminum or steel. But other efforts to cut weight may encounter consumer resistance.
For example, Magna International Inc., of Aurora, Ontario, developed a front seat called Futureform, a 39-pound product that weighs 20 percent less than a conventional unit.
Its thin seat back saves weight, and thinner contours allow rear-seat passengers more legroom. To hold costs down, Magna used high-strength steel -- twice as strong as conventional steel -- in the frame rather than pricier materials such as carbon fiber or magnesium.
But Magna doesn't have any contracts yet. Why not? Consumers perceive the seat to be less comfortable, admits Jim Rudberg, a seating engineer for Magna.
Uncomfortable looks
The supplier's own tests conclude that the new seat is just as comfortable. But participants in Magna's customer clinics insisted that the seats didn't look comfortable.
This problem first popped up a few years ago, when Magna developed the fold-down seats for Chrysler's minivans with Stow 'n Go seating. Consumers thought the fold-down seats looked too skinny -- hence uncomfortable -- so Magna had to fatten them up.
What will it cost?
While 10-year cost projections necessarily involve guesswork, industry analysts aren't that far apart. The Ducker report puts the cost of a 10 percent weight reduction at $500 per vehicle.
The CAR study estimates that a 15 percent weight reduction would cost $1,156 per vehicle.
Incremental vs. innovative
Such estimates assume that automakers will gradually switch to new materials rather than make a one-time change to slash weight.
But some major innovations are in the works, too. At the Frankfurt auto show, BMW AG is unveiling the i3 electric car, an innovative vehicle made largely of carbon fiber.
In addition, Audi AG is unveiling a redesigned A2 with an aluminum body and spaceframe.
The Detroit 3 may be willing to experiment, too. Schultz of Ducker Worldwide hints that an American automaker plans to develop an aluminum-body vehicle in the next five to 10 years.
Carbon fiber sports car
Likewise, rumors are circulating that an American automaker may develop a sports car with a carbon fiber monocoque, or unibody.
If successful, these projects could speed the pace of innovation. But automakers are unlikely to adopt exotic materials for mass market models regardless of cost.
If the price of a new part is more than 5 to 10 percent higher than the old part, said Magna's Rudberg: "We won't even bother."
Wednesday, September 07, 2011
Buick Verano pricing to start at $23,470
The price for the upcoming Buick Verano, the brand's first compact since the 1990s, will be $23,470, including shipping charges, General Motors said today.
The price is considerably lower than the Japanese compact sedans that GM is pitting the Verano against in the entry-luxury segment: the Acura TSX ($30,495 with shipping) and the Lexus IS 250 ($34,170 with shipping).
"Given some of the great features the car is going to have, that's about the price we expected," said Sam Slaughter, dealer principal at Sellers Buick-GMC in suburban Detroit, which was the nation's top-selling Buick store last year. "We don't want it to be the el cheapo car that's going after the beer-can market."
Still, the Verano price is "going to be a little tight" with that of the Regal mid-sized sedan, the next car up in Buick's lineup, said Lynn Thompson, a Springfield, Mo., dealer who sells Buick, GMC and Cadillac. The base Regal has a sticker price of $27,530, including shipping.
Buick last marketed a compact in the United States when the Skylark was sold from the 1992 to 1998 model years.
The Verano, which goes on sale by year end, will be offered in three models. The top model will have a sticker price of $26,850 including shipping. All three models will get a 2.4-liter, four-cylinder engine combined with a six-speed automatic transmission that delivers 180 hp.
The Verano is hitting the market at a time when more U.S. consumers are shifting to smaller, more fuel-efficient vehicles.
GM has touted the Verano's quiet cabin and standard features not typically found on a car in its price range, such as a 7-inch color-touch radio display with IntelliLink, the infotainment system for Buick and GMC.
Higher-end Verano models will receive the same leather used in Buick's flagship LaCrosse sedan, and touches such as push-button start, a heated steering wheel and heated seats that activate automatically in colder temperatures.
The Verano "expands the brand's reach," Tony DiSalle, Buick's U.S. vice president of marketing, said in a statement. "We're inviting new customers into the Buick family, giving us the opportunity and privilege of building longtime Buick loyalty."
GM hopes to build on the success of the Chevrolet Cruze compact, which is built on the same platform as the Verano. The Cruze, which replaced the Cobalt in Chevy's lineup last fall, was the top-selling U.S. compact sedan in July and August.
The Cruze starts at $17,470, including shipping.
Editor's note: An earlier version of this story said it had been decades since Buick marketed a compact car in the U.S. market. Buick sold a compact, the Skylark, as recently as the 1998 model year.
The price is considerably lower than the Japanese compact sedans that GM is pitting the Verano against in the entry-luxury segment: the Acura TSX ($30,495 with shipping) and the Lexus IS 250 ($34,170 with shipping).
"Given some of the great features the car is going to have, that's about the price we expected," said Sam Slaughter, dealer principal at Sellers Buick-GMC in suburban Detroit, which was the nation's top-selling Buick store last year. "We don't want it to be the el cheapo car that's going after the beer-can market."
Still, the Verano price is "going to be a little tight" with that of the Regal mid-sized sedan, the next car up in Buick's lineup, said Lynn Thompson, a Springfield, Mo., dealer who sells Buick, GMC and Cadillac. The base Regal has a sticker price of $27,530, including shipping.
Buick last marketed a compact in the United States when the Skylark was sold from the 1992 to 1998 model years.
The Verano, which goes on sale by year end, will be offered in three models. The top model will have a sticker price of $26,850 including shipping. All three models will get a 2.4-liter, four-cylinder engine combined with a six-speed automatic transmission that delivers 180 hp.
The Verano is hitting the market at a time when more U.S. consumers are shifting to smaller, more fuel-efficient vehicles.
GM has touted the Verano's quiet cabin and standard features not typically found on a car in its price range, such as a 7-inch color-touch radio display with IntelliLink, the infotainment system for Buick and GMC.
Higher-end Verano models will receive the same leather used in Buick's flagship LaCrosse sedan, and touches such as push-button start, a heated steering wheel and heated seats that activate automatically in colder temperatures.
The Verano "expands the brand's reach," Tony DiSalle, Buick's U.S. vice president of marketing, said in a statement. "We're inviting new customers into the Buick family, giving us the opportunity and privilege of building longtime Buick loyalty."
GM hopes to build on the success of the Chevrolet Cruze compact, which is built on the same platform as the Verano. The Cruze, which replaced the Cobalt in Chevy's lineup last fall, was the top-selling U.S. compact sedan in July and August.
The Cruze starts at $17,470, including shipping.
Editor's note: An earlier version of this story said it had been decades since Buick marketed a compact car in the U.S. market. Buick sold a compact, the Skylark, as recently as the 1998 model year.
Tuesday, August 16, 2011
Toyota will debut ultra-frugal plug-in Prius
Toyota Motor Corp. will unveil an ultra-frugal, plug-in hybrid version of its Prius compact car at the IAA in Frankfurt next month.
The car will be the cleanest and most technically advanced Prius built to date, Toyota said on Monday.
According to the automaker, the plug-in Prius has a fuel consumption rating of 2.2 liters/100km (106.9 mpg US/128.4 mpg UK).
It will have CO2 emissions of 49 grams per kilometer, almost half the emissions of the standard Prius, and will be the first Toyota EV to use a new compact lithium-ion battery that offers a driving range of 20km in electric mode, a significant improvement over the 2km range offered by the current model.
Previous Toyota electric vehicles have used nickel-metal hydride batteries.
The Prius plug-in hybrid has the same 1.8-liter gasoline engine and electric motor setup as the hybrid Prius. Toyota said the battery can be charged in 90 minutes using a domestic mains connection.
Next summer, the Prius will join an expanded Toyota hybrid range in Europe that will include the Auris hybrid, the new seven-seat Prius+ and the Yaris hybrid.
The car will be the cleanest and most technically advanced Prius built to date, Toyota said on Monday.
According to the automaker, the plug-in Prius has a fuel consumption rating of 2.2 liters/100km (106.9 mpg US/128.4 mpg UK).
It will have CO2 emissions of 49 grams per kilometer, almost half the emissions of the standard Prius, and will be the first Toyota EV to use a new compact lithium-ion battery that offers a driving range of 20km in electric mode, a significant improvement over the 2km range offered by the current model.
Previous Toyota electric vehicles have used nickel-metal hydride batteries.
The Prius plug-in hybrid has the same 1.8-liter gasoline engine and electric motor setup as the hybrid Prius. Toyota said the battery can be charged in 90 minutes using a domestic mains connection.
Next summer, the Prius will join an expanded Toyota hybrid range in Europe that will include the Auris hybrid, the new seven-seat Prius+ and the Yaris hybrid.
Friday, August 12, 2011
Chrysler takes Ram to Wal-Mart
Chrysler Group's Ram truck brand plans on expanding its experiential advertising into Wal-Mart stores across the country this fall, executives said during a Web chat with journalists this morning.
The promotion will be in "thousands of Wal-Mart stores" and will integrate another of Ram's partners, Mossy Oak camouflage, said Marissa Hunter, head of Ram advertising, during the chat.
"We recognize the alignment between truck buyers, the hunting/fishing lifestyle and Wal-Mart," Hunter said. "We are working on promotion that brings all three together."
Hunter declined to comment on further details of the program. A Wal-Mart spokesman was unavailable for immediate comment.
Ram also announced today that it will launch two new commercials for its "Code of the West" advertising campaign.
The campaign — created by the Richards Group, a Dallas advertising and marketing agency — and was rolled out earlier this summer.
Actor Sam Elliott will still lend his voice to the advertisements as Ram continues to build its brand identity. It was spun off from Dodge in 2009.
Hunter said: "The role of these spots is twofold. First, continue to create overall awareness about the capability of the full Ram lineup. Second, do so in a manner that inspires consumers to think differently about the Ram Truck brand."
Through the first seven months of 2011, Ram brand U.S. sales were up 25 percent. Fred Diaz, CEO of the Ram brand and Chrysler de Mexico, said during the chat that he expects sales to continue to grow for the rest of the year.
He said: "The fourth quarter always represents a key selling season opportunity for commercial business which historically increases commercial sales by up to 50 percent."
The promotion will be in "thousands of Wal-Mart stores" and will integrate another of Ram's partners, Mossy Oak camouflage, said Marissa Hunter, head of Ram advertising, during the chat.
"We recognize the alignment between truck buyers, the hunting/fishing lifestyle and Wal-Mart," Hunter said. "We are working on promotion that brings all three together."
Hunter declined to comment on further details of the program. A Wal-Mart spokesman was unavailable for immediate comment.
Ram also announced today that it will launch two new commercials for its "Code of the West" advertising campaign.
The campaign — created by the Richards Group, a Dallas advertising and marketing agency — and was rolled out earlier this summer.
Actor Sam Elliott will still lend his voice to the advertisements as Ram continues to build its brand identity. It was spun off from Dodge in 2009.
Hunter said: "The role of these spots is twofold. First, continue to create overall awareness about the capability of the full Ram lineup. Second, do so in a manner that inspires consumers to think differently about the Ram Truck brand."
Through the first seven months of 2011, Ram brand U.S. sales were up 25 percent. Fred Diaz, CEO of the Ram brand and Chrysler de Mexico, said during the chat that he expects sales to continue to grow for the rest of the year.
He said: "The fourth quarter always represents a key selling season opportunity for commercial business which historically increases commercial sales by up to 50 percent."
Monday, July 18, 2011
Glitch-hunting Hyundai sweats the details
Rapid response to problems is paying off
Hyundai's best engineers were initially baffled by the reports.
Customers from Australia were complaining that the printing on interior door trim items such as window and lock controls was inexplicably smearing like wet paint.
It was 2009, and the South Korean automaker was well on its way to becoming a global powerhouse, thanks to huge strides in improving quality. Executive Vice President Shin Myeong-ki, chief of quality control, could ill afford any slip that would slow that momentum.
Tedious detective work uncovered the culprit -- and is an example of how an increasingly quality-conscious Hyundai Motor Co., fighting hard to bury memories of shoddily built cars, is sniffing out glitches one by one. There were only two cases from Down Under, but Shin ordered a full investigation.
"When the complaints came in, we were worried that it was a worldwide problem with the ink," Shin recalled in an interview at Hyundai's global headquarters here.
Engineers followed their noses: A certain perfume brand was reacting with the ink like solvent.
"But there are so many different perfumes, we had to buy boxes of different brands to test which one it was. Eventually we isolated it," says Shin, who politely declined to identify the offending fragrance. Hyundai changed the ink formula and today still tests cars for reactions to perfumes.
Sweating such details is one way Hyundai has transformed its image from a laggard in quality and reliability to an industry leader in 10 years. The work has paid off in top-tier recognition in assessments from J.D. Power and Associates, Consumer Reports and other third parties.
In 2011, Hyundai tumbled in the J.D. Power Initial Quality Study, falling to No. 11 from No. 7 in 2010 and No. 4 in 2009. The slips were attributed mostly to the launches of several new models over the past two years, including the Genesis Coupe in 2009 and the Elantra compact and Sonata sedan in 2010. But this year, Hyundai still cracked the top 10 for the first time in Power's Vehicle Dependability Study, edging Honda to rank third among nonpremium brands.
"This remains key for Hyundai's continued success as reliability/durability remains by far the most frequently mentioned factor by consumers when choosing a new vehicle," Raffi Festekjian, Power's director of automotive research, said of Hyundai's dependability study showing.
Hyundai's obsession with customer feedback highlights the growing importance of "soft quality," or customer perception of quality through touch and feel, fit and finish, and intuitive controls.
When Shin logs into e-mail each morning, the first thing he checks is a database of field complaints filed the previous day by customers and dealers worldwide.
Today's automakers generally are beyond bolts falling off or cars breaking down. The new frontier is perceived quality -- pre-empting costumer complaints or catching them before they multiply.
Failure to alert headquarters of trouble in the field is one reason Toyota Motor Corp. suffered last year's rash of recalls. The independent North American Quality Advisory Panel hired by Toyota to assess its problems zeroed in on that fact.
"Design quality issues, and drivers' complaints about them, will increasingly differentiate manufacturers in independent quality ratings," the panel warned in its May 23 report to Toyota.
"Avoiding these kinds of design problems is becoming more and more important to a vehicle's acceptability," the report said. "Avoiding such design quality problems requires monitoring systems to not only hear customers' voices but also to listen to them."
For Hyundai, that's preaching to the choir.
But it wasn't always that way. In the mid-1990s, Hyundai was nearly chased out of the United States because lackluster quality repelled customers otherwise won over by low sticker prices.
The road to redemption began in 1999, with the appointment of Chairman Chung Mong-koo.
Perception vs. reality
Chung put engineers, not businessmen, in charge. Quality task forces were set up in plants. The company focused on achieving top scores in the J.D. Power assessments.
It implemented the Motorola-pioneered Six Sigma business strategy for quality improvement. And Hyundai added more quality-control stations along assembly lines. Buffers at the end of lines provided room to adjust assembly speed and let workers fix problems.
The changes were a must for Hyundai to make good on the 100,000-mile powertrain warranty the company introduced in 1998 to lure customers and motivate its engineers.
The overhaul transformed Hyundai from a wannabe into one of the world's biggest manufacturers. Today, U.S. sales are booming, and the company has enough North American production capacity to lift 2011 sales above 600,000 units for a record.
But even Hyundai concedes its reputation for quality still trails the improvements.
"These days, many people say Hyundai's quality has improved," says Vice Chairman Shin Jong-woon, an aerospace engineer by training who oversees quality management and product planning at Hyundai and its Kia Motors Corp. affiliate. "But the perception has not quite caught up to the quality improvements."
Shin Jong-woon took over quality control at both brands in 2002, knowing he had to do something. So he began erecting a quality pyramid -- a kind of blueprint for building up the Hyundai brand.
Hyundai's best engineers were initially baffled by the reports.
Customers from Australia were complaining that the printing on interior door trim items such as window and lock controls was inexplicably smearing like wet paint.
It was 2009, and the South Korean automaker was well on its way to becoming a global powerhouse, thanks to huge strides in improving quality. Executive Vice President Shin Myeong-ki, chief of quality control, could ill afford any slip that would slow that momentum.
Tedious detective work uncovered the culprit -- and is an example of how an increasingly quality-conscious Hyundai Motor Co., fighting hard to bury memories of shoddily built cars, is sniffing out glitches one by one. There were only two cases from Down Under, but Shin ordered a full investigation.
"When the complaints came in, we were worried that it was a worldwide problem with the ink," Shin recalled in an interview at Hyundai's global headquarters here.
Engineers followed their noses: A certain perfume brand was reacting with the ink like solvent.
"But there are so many different perfumes, we had to buy boxes of different brands to test which one it was. Eventually we isolated it," says Shin, who politely declined to identify the offending fragrance. Hyundai changed the ink formula and today still tests cars for reactions to perfumes.
Sweating such details is one way Hyundai has transformed its image from a laggard in quality and reliability to an industry leader in 10 years. The work has paid off in top-tier recognition in assessments from J.D. Power and Associates, Consumer Reports and other third parties.
In 2011, Hyundai tumbled in the J.D. Power Initial Quality Study, falling to No. 11 from No. 7 in 2010 and No. 4 in 2009. The slips were attributed mostly to the launches of several new models over the past two years, including the Genesis Coupe in 2009 and the Elantra compact and Sonata sedan in 2010. But this year, Hyundai still cracked the top 10 for the first time in Power's Vehicle Dependability Study, edging Honda to rank third among nonpremium brands.
"This remains key for Hyundai's continued success as reliability/durability remains by far the most frequently mentioned factor by consumers when choosing a new vehicle," Raffi Festekjian, Power's director of automotive research, said of Hyundai's dependability study showing.
Hyundai's obsession with customer feedback highlights the growing importance of "soft quality," or customer perception of quality through touch and feel, fit and finish, and intuitive controls.
When Shin logs into e-mail each morning, the first thing he checks is a database of field complaints filed the previous day by customers and dealers worldwide.
Today's automakers generally are beyond bolts falling off or cars breaking down. The new frontier is perceived quality -- pre-empting costumer complaints or catching them before they multiply.
Failure to alert headquarters of trouble in the field is one reason Toyota Motor Corp. suffered last year's rash of recalls. The independent North American Quality Advisory Panel hired by Toyota to assess its problems zeroed in on that fact.
"Design quality issues, and drivers' complaints about them, will increasingly differentiate manufacturers in independent quality ratings," the panel warned in its May 23 report to Toyota.
"Avoiding these kinds of design problems is becoming more and more important to a vehicle's acceptability," the report said. "Avoiding such design quality problems requires monitoring systems to not only hear customers' voices but also to listen to them."
For Hyundai, that's preaching to the choir.
But it wasn't always that way. In the mid-1990s, Hyundai was nearly chased out of the United States because lackluster quality repelled customers otherwise won over by low sticker prices.
The road to redemption began in 1999, with the appointment of Chairman Chung Mong-koo.
Perception vs. reality
Chung put engineers, not businessmen, in charge. Quality task forces were set up in plants. The company focused on achieving top scores in the J.D. Power assessments.
It implemented the Motorola-pioneered Six Sigma business strategy for quality improvement. And Hyundai added more quality-control stations along assembly lines. Buffers at the end of lines provided room to adjust assembly speed and let workers fix problems.
The changes were a must for Hyundai to make good on the 100,000-mile powertrain warranty the company introduced in 1998 to lure customers and motivate its engineers.
The overhaul transformed Hyundai from a wannabe into one of the world's biggest manufacturers. Today, U.S. sales are booming, and the company has enough North American production capacity to lift 2011 sales above 600,000 units for a record.
But even Hyundai concedes its reputation for quality still trails the improvements.
"These days, many people say Hyundai's quality has improved," says Vice Chairman Shin Jong-woon, an aerospace engineer by training who oversees quality management and product planning at Hyundai and its Kia Motors Corp. affiliate. "But the perception has not quite caught up to the quality improvements."
Shin Jong-woon took over quality control at both brands in 2002, knowing he had to do something. So he began erecting a quality pyramid -- a kind of blueprint for building up the Hyundai brand.
Friday, July 08, 2011
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.”
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.”
Tuesday, July 05, 2011
56-mpg plan isn't written in stone
Automakers say feds seem open to changes
Automakers say the Obama administration appears not to be wedded to the 56.2-mpg target for 2025 it floated last week and may be open to other refinements.
The manufacturers are pushing for a single national program while expressing concern in private talks with the White House that the standard may be too tough.
They are arguing that no decisions should be made until new forecasts of manufacturers' technology, costs and sales become available.
Environmental advocates who had been calling for a 62-mpg standard expressed support last week for a target of 56.2 mpg, or annual increases of 5 percent after the 2016 model year.
An administration study last fall found that the technology required to meet 5 percent yearly mpg increases would increase the cost of the average 2025-model vehicle by up to $2,600 and produce fuel savings of up to $7,000 over the life of the vehicle.
The Detroit 3 also are proposing that annual mpg increases be low in the early part of the nine-year period until advanced technology can be developed, and that periodic reviews be held.
This snapshot of the ongoing multiparty negotiations comes from industry officials who asked not to be identified. A rule for the 2017-25 model years is scheduled to be proposed in September and made final next July.
Automakers that met with California Gov. Jerry Brown said they got the impression that the state -- which has been an adversary in the past -- would not pose major obstacles to an agreement.
Some manufacturers' public comments also convey cautious optimism that their goal of a single nationwide program can be met.
"Ford believes that the meetings have been productive," a spokeswoman said. "We support increasing fuel economy requirements with one national program that is data-driven."
Automakers have been meeting with the administration and California regulators to build on the 2016-model standard of 35.5 mpg. They have considered 2025 standards of 47 to 62 mpg.
Automakers say the Obama administration appears not to be wedded to the 56.2-mpg target for 2025 it floated last week and may be open to other refinements.
The manufacturers are pushing for a single national program while expressing concern in private talks with the White House that the standard may be too tough.
They are arguing that no decisions should be made until new forecasts of manufacturers' technology, costs and sales become available.
Environmental advocates who had been calling for a 62-mpg standard expressed support last week for a target of 56.2 mpg, or annual increases of 5 percent after the 2016 model year.
An administration study last fall found that the technology required to meet 5 percent yearly mpg increases would increase the cost of the average 2025-model vehicle by up to $2,600 and produce fuel savings of up to $7,000 over the life of the vehicle.
The Detroit 3 also are proposing that annual mpg increases be low in the early part of the nine-year period until advanced technology can be developed, and that periodic reviews be held.
This snapshot of the ongoing multiparty negotiations comes from industry officials who asked not to be identified. A rule for the 2017-25 model years is scheduled to be proposed in September and made final next July.
Automakers that met with California Gov. Jerry Brown said they got the impression that the state -- which has been an adversary in the past -- would not pose major obstacles to an agreement.
Some manufacturers' public comments also convey cautious optimism that their goal of a single nationwide program can be met.
"Ford believes that the meetings have been productive," a spokeswoman said. "We support increasing fuel economy requirements with one national program that is data-driven."
Automakers have been meeting with the administration and California regulators to build on the 2016-model standard of 35.5 mpg. They have considered 2025 standards of 47 to 62 mpg.
Friday, July 01, 2011
GM takes low-key approach to mild-hybrid technology
Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
Wednesday, June 29, 2011
Toyota Camry tops Cars.com American-made index for 3rd straight year
For the third straight year, the Toyota Camry mid-sized sedan tops the 10 vehicles in Cars.com's annual American-Made Index.
The index ranks U.S.-assembled vehicles based on the percentage of their parts made in the United States and the number of vehicles sold to domestic consumers. At least 75 percent of the parts in every vehicle on the list were made in the United States.
"The Camry remains an incredibly popular vehicle, and higher total sales require a higher number of U.S. factory workers and a larger number of U.S. suppliers -- all of which contribute to Toyota's ranking," Cars.com's editor-in-chief, Patrick Olsen, said in a statement.
Most Camrys are assembled at Toyota's Georgetown, Ky., plant, which employs 6,429 people.
About 25 percent of Camrys are made at Subaru's plant in Lafayette, Ind., Toyota spokesman Jim Wiseman said. Toyota contracts with Subaru to make the vehicles, Wiseman said.
Through May 31, Toyota sold 125,218 domestically made Camrys in the United States and about 80 percent of the parts in the Camry are made domestically, Olsen said.
Wiseman said today that the company was committed to using locally made parts.
"Part of Toyota's guiding principles is to support the communities where we're based," Wiseman said. "The best way we can do that is by using locally made parts."
While it's advantageous for foreign automakers to use U.S.-made parts, Olsen said the Detroit 3 use fewer locally made parts to cut costs and better compete globally.
"They've lessened their domestic parts content but strengthened their bottom line," Olsen said in a telephone interview.
Two other Toyota vehicles cracked the top 10: the Sienna minivan at No. 6 and the Tundra full-sized pickup at No. 9 . With three vehicles in the rankings, Toyota tied General Motors for the most vehicles in the top 10.
GM's Chevrolet Malibu mid-sized sedan ranked third, up from fifth last year. The Chevrolet Traverse crossover was No. 8 and the GMC Acadia crossover rounded out the list at No. 10. Neither the Traverse nor the Acadia was on the list last year.
For the second straight year, the Honda Accord claimed the second spot in the rankings. The Accord is built at the automaker's Marysville, Ohio, plant and 120,035 American made units were sold in the first five months of 2011.
Honda's Odyssey minivan also made the list, coming in at No. 5.
The Chicago-made Ford Explorer made its debut on this year's list at No. 4 and is the only Ford Motor Co. vehicle to make the rankings. According to Olsen, 85 percent of the Explorer's parts are made in the United States.
The Jeep Wrangler, ranked No. 7, is the only Chrysler vehicle on the list.
The index ranks U.S.-assembled vehicles based on the percentage of their parts made in the United States and the number of vehicles sold to domestic consumers. At least 75 percent of the parts in every vehicle on the list were made in the United States.
"The Camry remains an incredibly popular vehicle, and higher total sales require a higher number of U.S. factory workers and a larger number of U.S. suppliers -- all of which contribute to Toyota's ranking," Cars.com's editor-in-chief, Patrick Olsen, said in a statement.
Most Camrys are assembled at Toyota's Georgetown, Ky., plant, which employs 6,429 people.
About 25 percent of Camrys are made at Subaru's plant in Lafayette, Ind., Toyota spokesman Jim Wiseman said. Toyota contracts with Subaru to make the vehicles, Wiseman said.
Through May 31, Toyota sold 125,218 domestically made Camrys in the United States and about 80 percent of the parts in the Camry are made domestically, Olsen said.
Wiseman said today that the company was committed to using locally made parts.
"Part of Toyota's guiding principles is to support the communities where we're based," Wiseman said. "The best way we can do that is by using locally made parts."
While it's advantageous for foreign automakers to use U.S.-made parts, Olsen said the Detroit 3 use fewer locally made parts to cut costs and better compete globally.
"They've lessened their domestic parts content but strengthened their bottom line," Olsen said in a telephone interview.
Two other Toyota vehicles cracked the top 10: the Sienna minivan at No. 6 and the Tundra full-sized pickup at No. 9 . With three vehicles in the rankings, Toyota tied General Motors for the most vehicles in the top 10.
GM's Chevrolet Malibu mid-sized sedan ranked third, up from fifth last year. The Chevrolet Traverse crossover was No. 8 and the GMC Acadia crossover rounded out the list at No. 10. Neither the Traverse nor the Acadia was on the list last year.
For the second straight year, the Honda Accord claimed the second spot in the rankings. The Accord is built at the automaker's Marysville, Ohio, plant and 120,035 American made units were sold in the first five months of 2011.
Honda's Odyssey minivan also made the list, coming in at No. 5.
The Chicago-made Ford Explorer made its debut on this year's list at No. 4 and is the only Ford Motor Co. vehicle to make the rankings. According to Olsen, 85 percent of the Explorer's parts are made in the United States.
The Jeep Wrangler, ranked No. 7, is the only Chrysler vehicle on the list.
Monday, June 27, 2011
The scramble for scarce tires
Automakers pay more as supply tightens
North American automakers are struggling with a nagging shortage of tires, caused in part by tire plant closings and rising demand for low-volume specialty tires.
Automakers are paying much higher prices -- double-digit percentage increases from a year ago -- as tire makers gain pricing power.
"We have been bombarded from every side for additional tires, and we can't keep up," said David O'Donnell, Continental Tire's vice president of original equipment in the Americas. "We are at maximum capacity, and all shifts are maxed out."
The shortage doesn't appear to have significantly crimped production plans, though automakers are scrambling to secure supplies. Earlier this year, Dan Knott, Chrysler Group's senior vice president of purchasing and supplier quality, said the company was short of premium tires for some nameplates.
"The tire shortage will not clear up over the next year," Knott predicted. "It's going to take awhile."
Automakers pay as little as $75 per tire for low-end models to as much as $300 or more for high-performance tires.
To meet demand, Continental will expand plants in Illinois and Brazil and will build a factory somewhere in North America. But this will take time. The new lines in Illinois and Brazil won't hit full production until 2013, O'Donnell said.
Continental is investing $224 million to expand its plant in Mount Vernon, Ill., plus $210 million to expand its plant in Camacari, Brazil.
Other tire makers also are maxed out. Michelin is running its North American plants at full capacity, although it has met some requests for more tires, Vice President Rob Murray said in a recent interview.
The shortages come at a time when demand is rising. According to a forecast by consulting firm IHS Automotive, automakers in the United States and Canada will buy 62 million tires for new vehicles this year.
That's up from 55 million tires in 2010. By 2016, North American demand for original equipment tires will rise to 79 million units, IHS estimates.
Fewer tire factories
Bruce Harrison, IHS Automotive's director of North American consulting, says the shortage won't be solved any time soon.
"There are a lot more tire sizes in the marketplace now, and it doesn't look like that trend is slowing," Harrison said. Producing extra tire sizes and low-volume specialty lines reduce a standard tire plant's capacity.
To make things worse, tire makers had been cutting back on North American production capacity before the recession. In 2006 and 2007 alone, four U.S. tire plants were closed, according to The New York Times.
Plant closures eliminated about 71 million units of U.S. capacity, John Baratta, president of replacement tire sales for the United States and Canada at Bridgestone Americas Tire Operations, said in a June article in Automotive News' sister publication Tire Business.
Meanwhile, tire manufacturers were opening factories in China that flooded the U.S. market with cheap tires. But in September 2009 the Obama administration slapped a three-year tariff on imported Chinese tires.
The tax started at 35 percent of a tire's value declining to 30 percent and 25 percent in the second and third years. The import tax expires in September 2012.
Tire prices have "moved up very sharply" since 2009, said Saul Ludwig, an auto analyst at Northcoast Research, an equity research firm in Cleveland. Increases in the cost of rubber and other materials used in tire manufacturing, including steel, have tightened supplies and driven costs higher.
Soaring costs
Since 2005, the combined prices of natural and synthetic rubber, carbon black, steel cord, fabric and other materials have risen nearly every year, with jumps of 56 percent in 2010, and 47 percent in 2009, Bridgestone's Baratta said.
Continental, Michelin North America Inc., Goodyear Tire & Rubber Co. and other major tire makers have raised prices several times in the past few years to offset rising raw-materials costs.
Automakers and tire companies don't disclose original-equipment prices. But rising prices for replacement tires suggest what's going on in the original-equipment market.
For example, Michelin said the company has raised prices three times over the past year on car and light-truck replacement tires: an 8.5 percent increase on May 1; a November 2010 increase that the company wouldn't quantify; and a 6 percent increase last June.
Despite the headaches, automakers appear to be muddling through. During an interview last week, Tony Brown, Ford's group vice president of global purchasing, said Ford's vehicle production plans this year will not be affected by tight supplies of tires or other components.
"We have enough tires," Brown said. "We will deliver the production plan, with the tires to support those plans."
North American automakers are struggling with a nagging shortage of tires, caused in part by tire plant closings and rising demand for low-volume specialty tires.
Automakers are paying much higher prices -- double-digit percentage increases from a year ago -- as tire makers gain pricing power.
"We have been bombarded from every side for additional tires, and we can't keep up," said David O'Donnell, Continental Tire's vice president of original equipment in the Americas. "We are at maximum capacity, and all shifts are maxed out."
The shortage doesn't appear to have significantly crimped production plans, though automakers are scrambling to secure supplies. Earlier this year, Dan Knott, Chrysler Group's senior vice president of purchasing and supplier quality, said the company was short of premium tires for some nameplates.
"The tire shortage will not clear up over the next year," Knott predicted. "It's going to take awhile."
Automakers pay as little as $75 per tire for low-end models to as much as $300 or more for high-performance tires.
To meet demand, Continental will expand plants in Illinois and Brazil and will build a factory somewhere in North America. But this will take time. The new lines in Illinois and Brazil won't hit full production until 2013, O'Donnell said.
Continental is investing $224 million to expand its plant in Mount Vernon, Ill., plus $210 million to expand its plant in Camacari, Brazil.
Other tire makers also are maxed out. Michelin is running its North American plants at full capacity, although it has met some requests for more tires, Vice President Rob Murray said in a recent interview.
The shortages come at a time when demand is rising. According to a forecast by consulting firm IHS Automotive, automakers in the United States and Canada will buy 62 million tires for new vehicles this year.
That's up from 55 million tires in 2010. By 2016, North American demand for original equipment tires will rise to 79 million units, IHS estimates.
Fewer tire factories
Bruce Harrison, IHS Automotive's director of North American consulting, says the shortage won't be solved any time soon.
"There are a lot more tire sizes in the marketplace now, and it doesn't look like that trend is slowing," Harrison said. Producing extra tire sizes and low-volume specialty lines reduce a standard tire plant's capacity.
To make things worse, tire makers had been cutting back on North American production capacity before the recession. In 2006 and 2007 alone, four U.S. tire plants were closed, according to The New York Times.
Plant closures eliminated about 71 million units of U.S. capacity, John Baratta, president of replacement tire sales for the United States and Canada at Bridgestone Americas Tire Operations, said in a June article in Automotive News' sister publication Tire Business.
Meanwhile, tire manufacturers were opening factories in China that flooded the U.S. market with cheap tires. But in September 2009 the Obama administration slapped a three-year tariff on imported Chinese tires.
The tax started at 35 percent of a tire's value declining to 30 percent and 25 percent in the second and third years. The import tax expires in September 2012.
Tire prices have "moved up very sharply" since 2009, said Saul Ludwig, an auto analyst at Northcoast Research, an equity research firm in Cleveland. Increases in the cost of rubber and other materials used in tire manufacturing, including steel, have tightened supplies and driven costs higher.
Soaring costs
Since 2005, the combined prices of natural and synthetic rubber, carbon black, steel cord, fabric and other materials have risen nearly every year, with jumps of 56 percent in 2010, and 47 percent in 2009, Bridgestone's Baratta said.
Continental, Michelin North America Inc., Goodyear Tire & Rubber Co. and other major tire makers have raised prices several times in the past few years to offset rising raw-materials costs.
Automakers and tire companies don't disclose original-equipment prices. But rising prices for replacement tires suggest what's going on in the original-equipment market.
For example, Michelin said the company has raised prices three times over the past year on car and light-truck replacement tires: an 8.5 percent increase on May 1; a November 2010 increase that the company wouldn't quantify; and a 6 percent increase last June.
Despite the headaches, automakers appear to be muddling through. During an interview last week, Tony Brown, Ford's group vice president of global purchasing, said Ford's vehicle production plans this year will not be affected by tight supplies of tires or other components.
"We have enough tires," Brown said. "We will deliver the production plan, with the tires to support those plans."
Sunday, June 26, 2011
Chrysler prepares to build Dodge small car
Chrysler Group LLC said it plans to begin test production in the second half of this year of the small car that will trigger U.S. government requirements to increase Fiat S.p.A.'s ownership stake.
Tooling for the small Dodge brand car will be installed at Chrysler's Belvidere, Ill., assembly plant in August, said Fred Goedtel, head of Chrysler's vehicle assembly operations.
"We'll start pilots in the fall" and official production begins "sometime" in the first quarter, he said.
Design work on the car, which is the vehicle Chrysler expects will trigger the final government ownership milestone, is done, said Ralph Gilles, head of Chrysler design.
"The company is really focused on it," he said of the vehicle.
Fiat is moving fast to consolidate control over Chrysler.
The Italian automaker is buying the U.S. Treasury Department's final stake in the U.S. automaker that was acquired as part of Chrysler's 2009 bankruptcy reorganization.
That purchase will raise Fiat's stake to 52 percent. Chrysler must test and commit to building a vehicle in the U.S. that achieves 40 mpg for Fiat to gain another 5 percent stake.
Its deal with the U.S. and Canada allowed Fiat to gain as much as 35 percent in Chrysler without paying cash in exchange for giving management experience and technology to Chrysler.
Fiat was also required to achieve various performance milestones.
The 40 mpg vehicle is the final such milestone. Fiat also exercised an option to purchase 16 percent of the company after Chrysler repaid the U.S. and Canadian government loans in May.
Sergio Marchionne, chief executive officer of both automakers, has said he expects Fiat will get its final 5 percent tied to the 40 mpg car by year's end.
The small Dodge car is based on Fiat's Alfa Romeo Giulietta, Marchionne has said. Gilles said the new Dodge model's name was decided earlier this week.
But he declined to provide the name.
Tooling for the small Dodge brand car will be installed at Chrysler's Belvidere, Ill., assembly plant in August, said Fred Goedtel, head of Chrysler's vehicle assembly operations.
"We'll start pilots in the fall" and official production begins "sometime" in the first quarter, he said.
Design work on the car, which is the vehicle Chrysler expects will trigger the final government ownership milestone, is done, said Ralph Gilles, head of Chrysler design.
"The company is really focused on it," he said of the vehicle.
Fiat is moving fast to consolidate control over Chrysler.
The Italian automaker is buying the U.S. Treasury Department's final stake in the U.S. automaker that was acquired as part of Chrysler's 2009 bankruptcy reorganization.
That purchase will raise Fiat's stake to 52 percent. Chrysler must test and commit to building a vehicle in the U.S. that achieves 40 mpg for Fiat to gain another 5 percent stake.
Its deal with the U.S. and Canada allowed Fiat to gain as much as 35 percent in Chrysler without paying cash in exchange for giving management experience and technology to Chrysler.
Fiat was also required to achieve various performance milestones.
The 40 mpg vehicle is the final such milestone. Fiat also exercised an option to purchase 16 percent of the company after Chrysler repaid the U.S. and Canadian government loans in May.
Sergio Marchionne, chief executive officer of both automakers, has said he expects Fiat will get its final 5 percent tied to the 40 mpg car by year's end.
The small Dodge car is based on Fiat's Alfa Romeo Giulietta, Marchionne has said. Gilles said the new Dodge model's name was decided earlier this week.
But he declined to provide the name.
Car, truck demand rebounding in June after May dip
U.S. sales of cars and light trucks are rebounding in June after falling for the first time in nine months in May, analysts said.
June increases projected by three research firms range from 8 percent to 14 percent. May's sales dropped 4 percent from a year earlier as consumers confronted rising gasoline prices, reduced incentives, and vehicle shortages caused by the March earthquake in Japan.
June's seasonally adjusted annual sales rate will be in the 12 million range when automakers' results are announced on July 1, according to the forecasts.
The SAAR had been above that mark for seven straight months before consumers scaled back purchases in May.
"There has been some easing of negative variables in June, as the inventory shortage has not been as severe as expected, and gas prices have dropped noticeably from higher levels in April and May," Jeff Schuster, executive director of global forecasting at J.D. Power and Associates, said in a statement today.
"Provided that the economy decides to cooperate, the automotive summer slowdown will only be a speed bump, and a return of a measurable recovery pace is still expected in the second half of 2011."
Overall, light vehicle demand is forecast to rise 8 percent this month from June 2010 to 1.1 million units, or at an annualized rate of 12 million, J.D. Power said.
Trucks, small cars pace gains
Retail sales of new vehicles are projected to come in at 884,800 units in June, which represents a seasonally adjusted annualized rate of 9.9 million units, J.D. Power said.
That's an improvement from May's 9.3-million-unit rate.
Large pickup and compact car demand are driving the increase in June sales.
J.D. Power said big pickup trucks represent 10.6 percent of retail sales month-to-date — the highest level since February.
Compact cars comprise 17.6 percent of retail sales this month, up from 17.2 percent in May.
May sales dropped to a seasonally adjusted annual rate of 11.78 million units - the lowest level since August 2010 – after topping 13 million units for three straight months.
U.S. light vehicle sales are up 14 percent through May, to 5.28 million units.
May dip
On Thursday, TrueCar.com estimated June new light vehicle sales, including fleet, will climb 13.5 percent to 1.12 million units from a year ago.
June retail sales are forecast to rise 2.1 percent from a year earlier, TrueCar said.
"Uncertainty in the economy as well as high gas prices and shortages in small car inventory contributed to the limited gains in sales in June." TrueCar analyst Jesse Toprak said in a statement. "May appeared to be the low point in vehicle sales this year and we don't expect sales to go below 11.9 million SAAR level."
Edmunds.com estimates June sales of 1.09 million new vehicles, up 11.2 percent.
Low supplies of small, fuel-efficient models and price increases have prompted consumers to delay purchases, Edmunds said.
"As prices and inventory return closer to normal levels by September, many of those lost sales can be made up by the end of this year when consumers return to the market," Edmunds.com chief economist Lacey Plache said in a statement.
Lower outlook
While some of the external pressures on new car and truck demand have lessened in recent weeks, some analysts and automakers have grown more cautious about the industry's outlook.
The Federal Reserve, citing slow job growth, fuel prices and the weak housing market, this week lowered its forecast for U.S. economic growth for the remainder of the year.
J.D. Power has reduced its forecast for 2011 retail sales to 10.5 million units from 10.6 million units. And the company's forecast for total sales, including fleets, has been revised to 12.9 million units from 13 million units.
"Conditions for light-vehicle sales are improving, but the automotive market remains fluid and susceptible to a slower economic recovery or external shock," John Humphrey, senior vice president of automotive operations at J.D. Power, said in a statement. "This risk is driving a more cautious approach to the market outlook for the remainder of 2011 and into 2012."
June increases projected by three research firms range from 8 percent to 14 percent. May's sales dropped 4 percent from a year earlier as consumers confronted rising gasoline prices, reduced incentives, and vehicle shortages caused by the March earthquake in Japan.
June's seasonally adjusted annual sales rate will be in the 12 million range when automakers' results are announced on July 1, according to the forecasts.
The SAAR had been above that mark for seven straight months before consumers scaled back purchases in May.
"There has been some easing of negative variables in June, as the inventory shortage has not been as severe as expected, and gas prices have dropped noticeably from higher levels in April and May," Jeff Schuster, executive director of global forecasting at J.D. Power and Associates, said in a statement today.
"Provided that the economy decides to cooperate, the automotive summer slowdown will only be a speed bump, and a return of a measurable recovery pace is still expected in the second half of 2011."
Overall, light vehicle demand is forecast to rise 8 percent this month from June 2010 to 1.1 million units, or at an annualized rate of 12 million, J.D. Power said.
Trucks, small cars pace gains
Retail sales of new vehicles are projected to come in at 884,800 units in June, which represents a seasonally adjusted annualized rate of 9.9 million units, J.D. Power said.
That's an improvement from May's 9.3-million-unit rate.
Large pickup and compact car demand are driving the increase in June sales.
J.D. Power said big pickup trucks represent 10.6 percent of retail sales month-to-date — the highest level since February.
Compact cars comprise 17.6 percent of retail sales this month, up from 17.2 percent in May.
May sales dropped to a seasonally adjusted annual rate of 11.78 million units - the lowest level since August 2010 – after topping 13 million units for three straight months.
U.S. light vehicle sales are up 14 percent through May, to 5.28 million units.
May dip
On Thursday, TrueCar.com estimated June new light vehicle sales, including fleet, will climb 13.5 percent to 1.12 million units from a year ago.
June retail sales are forecast to rise 2.1 percent from a year earlier, TrueCar said.
"Uncertainty in the economy as well as high gas prices and shortages in small car inventory contributed to the limited gains in sales in June." TrueCar analyst Jesse Toprak said in a statement. "May appeared to be the low point in vehicle sales this year and we don't expect sales to go below 11.9 million SAAR level."
Edmunds.com estimates June sales of 1.09 million new vehicles, up 11.2 percent.
Low supplies of small, fuel-efficient models and price increases have prompted consumers to delay purchases, Edmunds said.
"As prices and inventory return closer to normal levels by September, many of those lost sales can be made up by the end of this year when consumers return to the market," Edmunds.com chief economist Lacey Plache said in a statement.
Lower outlook
While some of the external pressures on new car and truck demand have lessened in recent weeks, some analysts and automakers have grown more cautious about the industry's outlook.
The Federal Reserve, citing slow job growth, fuel prices and the weak housing market, this week lowered its forecast for U.S. economic growth for the remainder of the year.
J.D. Power has reduced its forecast for 2011 retail sales to 10.5 million units from 10.6 million units. And the company's forecast for total sales, including fleets, has been revised to 12.9 million units from 13 million units.
"Conditions for light-vehicle sales are improving, but the automotive market remains fluid and susceptible to a slower economic recovery or external shock," John Humphrey, senior vice president of automotive operations at J.D. Power, said in a statement. "This risk is driving a more cautious approach to the market outlook for the remainder of 2011 and into 2012."
Tuesday, June 21, 2011
Ford plans hybrid-only models
Ford, like Toyota, aims to create a family of hybrid-only vehicles. But Ford and its dealers have to decide who will sell them.
Ford Motor Co. plans to offer the C-Max vehicles in hybrid-only versions, with no gasoline-powered version. The two vehicles -- the C-Max hybrid five-seat hatchback and the C-Max Energi plug-in hybrid -- will join the Transit Connect Electric commercial van, Focus electric and an unidentified fifth vehicle that will arrive in 2012.
Ford now sells hybrid versions of the Ford Fusion and Escape and the Lincoln MKZ.
Speaking last week about the C-Max models, Jim Farley, Ford's global marketing chief, said, "I am convinced that customers will appreciate that Ford now offers a dedicated body style for electric vehicle choices."
He announced that Ford had cancelled plans to sell the European-engineered seven-seat gasoline-powered C-Max in the United States.
The C-Max plan appears to mimic Toyota Motor Corp.'s plan for a family of Prius hybrid vehicles. The Toyota Prius and Honda Insight are the only hybrids that are not derivatives of gasoline-powered models.
Ford plans to triple North American production of electric vehicles and hybrids to more than 100,000 units by 2013.
While all Ford brand dealers are expected to sell the C-Max hatchback hybrid, dealers can choose not to sell the C-Max Energi. They will have to decide by the end of this summer whether to commit to investing in service-department training and meeting other requirements to get the Energi.
Both vehicles will go on sale in 2012, but Farley would not say whether they will go on sale nationwide or whether Ford will launch them in a few markets, as was true for the Chevrolet Volt plug-in hybrid and the Nissan Leaf electric car.
"Dealers will have to do different things, in terms of financing, arranging for the installation of the plug-in at the customer's house" and handling service, Farley said.
Best Buy will install the charging stations, he said.
Ford Motor Co. plans to offer the C-Max vehicles in hybrid-only versions, with no gasoline-powered version. The two vehicles -- the C-Max hybrid five-seat hatchback and the C-Max Energi plug-in hybrid -- will join the Transit Connect Electric commercial van, Focus electric and an unidentified fifth vehicle that will arrive in 2012.
Ford now sells hybrid versions of the Ford Fusion and Escape and the Lincoln MKZ.
Speaking last week about the C-Max models, Jim Farley, Ford's global marketing chief, said, "I am convinced that customers will appreciate that Ford now offers a dedicated body style for electric vehicle choices."
He announced that Ford had cancelled plans to sell the European-engineered seven-seat gasoline-powered C-Max in the United States.
The C-Max plan appears to mimic Toyota Motor Corp.'s plan for a family of Prius hybrid vehicles. The Toyota Prius and Honda Insight are the only hybrids that are not derivatives of gasoline-powered models.
Ford plans to triple North American production of electric vehicles and hybrids to more than 100,000 units by 2013.
While all Ford brand dealers are expected to sell the C-Max hatchback hybrid, dealers can choose not to sell the C-Max Energi. They will have to decide by the end of this summer whether to commit to investing in service-department training and meeting other requirements to get the Energi.
Both vehicles will go on sale in 2012, but Farley would not say whether they will go on sale nationwide or whether Ford will launch them in a few markets, as was true for the Chevrolet Volt plug-in hybrid and the Nissan Leaf electric car.
"Dealers will have to do different things, in terms of financing, arranging for the installation of the plug-in at the customer's house" and handling service, Farley said.
Best Buy will install the charging stations, he said.
Sunday, June 12, 2011
2005 Chevy Trail Blazer blows cold out top and bottom but not the dash
I have a 2005 Chevy TrailBlazer and ever since I replaced the battery The Air Conditioning Will not blow out the dash. The A/C blows out the top and floor but not the dash no matter what I set it on. I have checked all the fuses and don't have a clue what is going on here? Any help would be appreciated.
Response:
This is a common issue with the Trailblazer. You can disconnect the battery for two minutes and then reconnect it. Turn the key to "ON" and without touching the control knobs for 2 minutes the Mode Actuator should recalibrate itself. If you can not achieve dash function after that, you are looking at replacing the "Mode Door Actuator". Part is around $70.00 at the dealer. Should take any shop about an hour to hour and a half at the most.
Response:
This is a common issue with the Trailblazer. You can disconnect the battery for two minutes and then reconnect it. Turn the key to "ON" and without touching the control knobs for 2 minutes the Mode Actuator should recalibrate itself. If you can not achieve dash function after that, you are looking at replacing the "Mode Door Actuator". Part is around $70.00 at the dealer. Should take any shop about an hour to hour and a half at the most.
Thursday, June 09, 2011
Ford C-Max minivan to be offered only as a hybrid
Automaker will triple electrified vehicle production to 100,000 a year
Ford says the upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.
Ford Motor Co., in a move to compete with hybrid and electric vehicles produced by Toyota, GM, and Nissan, said today that its upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.
And Ford has cancelled plans to offer a version of the C-Max with a four-cylinder gasoline engine.
Ford said it has been able to reduce the cost of hybrid technology, which will make the vehicle more attractive to buyers. Ford announced this year that a plug-in hybrid C-Max Energi also is planned.
Today's move will put the C-Max in competition with Toyota Motor Corp.'s Prius hybrid, General Motors' Chevrolet Volt plug-in hybrid and Nissan Motor Co.'s all-electric Leaf.
The C-Max is a five-passenger minivan based on the Ford Focus platform.
Ford executives, during an event today in Sterling Heights, Mich., said they plan to triple North American production of electric vehicles and hybrids to more than 100,000 models by 2013 as they work to make a quarter of their vehicles run at least partly on electricity.
Ford is investing $135 million and adding 220 jobs at three Michigan plants to produce five "electrified" models. Besides the C-Max and C-Max Energi, the automaker is building an electric version of its Transit Connect van and will start making a battery-powered Focus compact this year. Ford has not yet announced the fifth vehicle.
Automakers are developing models powered at least partly by electricity as U.S. fuel-economy standards rise. The company said it currently sells about 35,000 electrified vehicles a year, which includes the Fusion Hybrid and Escape Hybrid.
Jim Farley, Ford's group vice president of marketing, sales and service, said in a statement: "Whether people want a hybrid, a plug-in hybrid or full battery electric vehicle, we have a family of vehicles for them to consider, providing a range of options to best meet their needs and support their driving habits and lifestyles."
Cost down
Ford said this year that it expects the cost of hybrid systems it begins offering next year will be 30 percent less expensive than the system that was introduced on the 2010 Ford Fusion.
Ford said it will be able to keep C-Max prices down because much of the hybrid system has been designed and engineered by Ford. The company also will assemble the system.
For example, an upcoming hybrid transmission was designed and engineered by Ford and will be assembled beginning in the first quarter of 2012 in a suburban Detroit Ford plant.
The hybrid transmission in its 2011 Ford Fusion and 2011 Escape and the 2011 Lincoln MKZ are supplied by Japan's Aisin Seiki Co.
The new Ford transmission will be used globally and sourced from Michigan.
Hybrid loyalty rates 'very high'
In an April nterview, Sherif Marakby, Ford's director of electrification programs and engineering, said, "When we first launched a hybrid six years ago, many customers were concerned" about the battery. Customers asked: "'How long would the battery last?' 'How much does it cost to replace it?'" he said.
But batteries have proven to be long-lasting, Marakby said. It's now imperative to lower the cost of its hybrid system, he said, so Ford can cut hybrid prices and boost sales.
"We're seeing that the loyalty rate on hybrids is very high," he said in April. "We just need people to get used to the technology, bring the cost down and the price down for consumers, and we believe it's only going to go up in terms of sales volume."
Ford has been cutting costs by bringing many technologies in-house, such as the hybrid transmission, Marakby said in April.
"By developing the hybrid system's design in-house and sourcing individual components to suppliers, Ford can use less people and less time to get the job done in an efficient manner," he said.
Additionally, Ford has developed in-house a battery system that will be manufactured at a suburban Detroit Ford plant next year.
Marakby's goal is to cut the cost of the next-generation Ford hybrid system another 30 percent.
Ford says the upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.
Ford Motor Co., in a move to compete with hybrid and electric vehicles produced by Toyota, GM, and Nissan, said today that its upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.
And Ford has cancelled plans to offer a version of the C-Max with a four-cylinder gasoline engine.
Ford said it has been able to reduce the cost of hybrid technology, which will make the vehicle more attractive to buyers. Ford announced this year that a plug-in hybrid C-Max Energi also is planned.
Today's move will put the C-Max in competition with Toyota Motor Corp.'s Prius hybrid, General Motors' Chevrolet Volt plug-in hybrid and Nissan Motor Co.'s all-electric Leaf.
The C-Max is a five-passenger minivan based on the Ford Focus platform.
Ford executives, during an event today in Sterling Heights, Mich., said they plan to triple North American production of electric vehicles and hybrids to more than 100,000 models by 2013 as they work to make a quarter of their vehicles run at least partly on electricity.
Ford is investing $135 million and adding 220 jobs at three Michigan plants to produce five "electrified" models. Besides the C-Max and C-Max Energi, the automaker is building an electric version of its Transit Connect van and will start making a battery-powered Focus compact this year. Ford has not yet announced the fifth vehicle.
Automakers are developing models powered at least partly by electricity as U.S. fuel-economy standards rise. The company said it currently sells about 35,000 electrified vehicles a year, which includes the Fusion Hybrid and Escape Hybrid.
Jim Farley, Ford's group vice president of marketing, sales and service, said in a statement: "Whether people want a hybrid, a plug-in hybrid or full battery electric vehicle, we have a family of vehicles for them to consider, providing a range of options to best meet their needs and support their driving habits and lifestyles."
Cost down
Ford said this year that it expects the cost of hybrid systems it begins offering next year will be 30 percent less expensive than the system that was introduced on the 2010 Ford Fusion.
Ford said it will be able to keep C-Max prices down because much of the hybrid system has been designed and engineered by Ford. The company also will assemble the system.
For example, an upcoming hybrid transmission was designed and engineered by Ford and will be assembled beginning in the first quarter of 2012 in a suburban Detroit Ford plant.
The hybrid transmission in its 2011 Ford Fusion and 2011 Escape and the 2011 Lincoln MKZ are supplied by Japan's Aisin Seiki Co.
The new Ford transmission will be used globally and sourced from Michigan.
Hybrid loyalty rates 'very high'
In an April nterview, Sherif Marakby, Ford's director of electrification programs and engineering, said, "When we first launched a hybrid six years ago, many customers were concerned" about the battery. Customers asked: "'How long would the battery last?' 'How much does it cost to replace it?'" he said.
But batteries have proven to be long-lasting, Marakby said. It's now imperative to lower the cost of its hybrid system, he said, so Ford can cut hybrid prices and boost sales.
"We're seeing that the loyalty rate on hybrids is very high," he said in April. "We just need people to get used to the technology, bring the cost down and the price down for consumers, and we believe it's only going to go up in terms of sales volume."
Ford has been cutting costs by bringing many technologies in-house, such as the hybrid transmission, Marakby said in April.
"By developing the hybrid system's design in-house and sourcing individual components to suppliers, Ford can use less people and less time to get the job done in an efficient manner," he said.
Additionally, Ford has developed in-house a battery system that will be manufactured at a suburban Detroit Ford plant next year.
Marakby's goal is to cut the cost of the next-generation Ford hybrid system another 30 percent.
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