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Sunday, April 04, 2010

Lexus surges in March, passes Mercedes in '10 U.S. luxury race

Lexus -- the leading luxury-auto brand in the United States for the past decade -- used a 42 percent gain in March to inch ahead of rival Mercedes-Benz after the first quarter.

Lexus sold 20,219 vehicles last month and 49,523 for the year's first three months. Mercedes reported sales of 20,023 cars and SUVs for March, a 28 percent increase from a year earlier, and 49,229 for the quarter. The Mercedes tallies exclude Sprinter vans formerly sold by Dodge -- 1,337 of them in the first quarter.

Mercedes, helped by its revamped E-class sedan, had moved ahead of Lexus and BMW through 2010's first two months. The BMW brand posted a 3 percent increase in March to 18,060 and finished the quarter at 46,323.

Industrywide sales rose 24 percent in March, to push the market 16 percent ahead of a depressed 2009 after the first three months.

“The luxury market is doing pretty well,” said Jessica Caldwell, a senior analyst at Edmunds.com, a provider of industry data. “We assumed when times were tough that luxury sales would fall. It has held its share of the market.”

Toyota Motor Corp.'s Lexus benefited from a tripling of sales of its redesigned GX mid-size SUV, as well as increases of 31 percent for the RX SUV and 29 percent for the IS car.

At Mercedes, sales of the E class more than doubled while the C class, its highest-volume model, rose 20 percent.

Not holding back

Mercedes expects more increases from the E class as it adds a convertible version in May and a diesel E-350 in October, said Ernst Lieb, CEO of the brand's U.S. unit.

“We're not holding back,” he said. “We have newer products than some of our competitors. We're going after whatever we can get.”

BMW intends to pass Lexus for the No. 1 rank in the United States by 2012 on the strength of new models, Jim O'Donnell, president of the North American unit, said Wednesday.

In March, BMW spent an average of $4,797 a vehicle on incentives, compared with $3,527 for Mercedes and $1,778 for Lexus, according to Edmunds.com.

“BMW has a lot of good lease deals,” Caldwell said. “They're trying to hold onto the market.” The brand's U.S. share has fallen a tenth of a point to 1.8 percent this year. Sales have risen 8 percent.

Rest of the pack

Among the March results for other luxury brands:

• General Motor Co.'s Cadillac reported a 42 percent increase to 11,639 as sales of the redesigned SRX crossover SUV surged more than sixfold. Cadillac spent a per-vehicle average of $4,307 on incentives, third among luxury brands behind BMW and Ford Motor Co.'s Lincoln, according to Edmunds.com.

• Honda Motor Co.'s Acura brand gained 30 percent to 11,722 cars and SUVs.

• Lincoln sales rose 19 percent to 8,693.

• Nissan Motor Co.'s Infiniti sold 9,942 vehicles, a 37 percent increase from a year earlier and the brand's best month since August 2008.

• Volkswagen AG's Audi sold 8,589 vehicles, up 34 percent.

• Tata Motors Ltd.'s Land Rover increased 21 percent to 2,726 vehicles, while Jaguar dropped 16 percent to 983.

Saturday, April 03, 2010

More vehicles being scrapped than purchased, R.L. Polk says



More Americans ditched older cars than bought new ones during a 15-month period ending last September, according to a report released this week by R.L. Polk & Co.

Polk found that more than 14.8 million cars and light trucks were scrapped in the U.S., compared with new vehicle registrations of just more than 13.6 million.

The tally, taken between July 1, 2008, and Sept. 30, 2009, includes thousands of cars demolished during last year's cash-for-clunkers program.

Scrapping statistics are viewed in the industry as a bellwether for future gains in vehicle sales. The higher the rate of scrapping, the more likely that the demand for new and used vehicles will rise -- especially if the economy is improving.

This is the first time Polk's analysis covered a 15-month period, in large part to accommodate the clunkers program. Cash for clunkers gave consumers up to $4,500 in rebates on a new vehicle if the trade-in and new purchase met certain requirements. The program ran from July 27 through Aug. 25, 2009, and was funded with $3 billion in taxpayer funds.

Polk did not compile figures from comparable 15-month periods, but the research company said light-vehicle scrap rates have increased in the past five years.

Higher scrap rates

As of October 2009, the scrap rate was 6.1 percent of the total U.S. light-vehicle fleet, compared with 4.3 percent in July 2005.

Polk, which tracks the ability of automakers to retain customers, expects current trends for scrappage and vehicle ownership to continue for at least another year. The assessment assumes a general upward trend for vehicle scrappage rates as high volumes of older vehicles continue to retire from the U.S. fleet, according to the report.

The average age for all light vehicles during the 15-month period is 10.2 years, a trend supported by Polk's research that consumers are keeping cars and trucks longer. As of September 2009, the average length of ownership for a new or used vehicle was 49.9 months, up from 45 months at the same point a year earlier.

The economy, limited financing and leasing options, extended warranty offers and improved vehicle quality support the longevity trend, according to Polk. The company said this could provide increased business for various segments of the industry.

“As vehicles age and consumers continue to hold onto them longer, there are significant opportunities for repair services and parts demand for the aftermarket as vehicles are falling out of warranty as they age,” Mark Seng, Polk vice president of sales and client services, said in a statement.

Thursday, April 01, 2010

Ford, Toyota soar as incentives fuel 24% industry gain

General Motors Co. posted a 21 percent increase in March U.S. sales while Toyota Motor Corp. and Ford Motor Co. rose more than 40 percent as higher incentives industrywide helped lure buyers to showrooms.

Ford, which advanced for the sixth straight month, was outsold by Toyota and GM in March after leading the industry in February. Toyota's 41 percent gain was aided by richer incentives aimed at luring buyers after its recall crisis.

"Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand,” said Jessica Caldwell, director of industry analysis at Edmunds.com. “April will be a good indicator of real consumer demand."

Overall U.S. sales rose 24 percent from the depressed levels of March 2009, when automakers were battling the weakest demand in almost three decades. The seasonally adjusted annual sales rate of 11.7 million was the year's highest and the second strongest since August, when the U.S. cash-for-clunkers campaign lifted demand

Chrysler Group fell 8 percent after posting its first monthly gain in more than two years in February. Chrysler, No. 5 in U.S. sales through February, was outsold for the second time this year by Nissan North America, which soared 43 percent.

The Hyundai brand's 15 percent increase was below analysts' forecasts of a gain of more than 30 percent.

American Honda was up 22 percent, in line with predictions. Subaru, the only automaker to post U.S. sales gains in each of the past two years, rose 46 percent.

Last month's SAAR was below the 12 million average forecast of eight analysts compiled by Bloomberg. Still, it was the fifth straight gain from a year earlier. The March 2009 pace was 9.3 million, according to Automotive News data.

Incentive discrepancy

For the first time on record, GM's per-unit incentives were below the industry average, said Susan Docherty, vice president of U.S. marketing. GM spiffs totaled $2,800 per vehicle, down nearly $2,000 from March 2009, she said. The industry averaged $2,910.

GM incentives ranked fourth highest, behind Ford Motor, Chrysler and “an import competitor,” she said.

GM, Ford and other automakers use J.D. Power and Associates data to measure incentives, Docherty said.

But Edmunds.com's incentive measure puts GM first among all automakers with $3,519 spent per vehicle last month. That compares with an industry average of $2,742, the consumer auto site says.

Both Edmunds.com and J.D. Power measure customer cash, interest and lease incentives, along with cash to dealers for specific vehicles. But J.D. Power also includes cash that automakers give dealers for meeting sales volume objectives.

Still, that shouldn't make J.D. Power's per-vehicle numbers lower for GM, said Edmunds.com's Caldwell.

“We've been doing the same thing for years, and it's weird that we're coming to a point where all of the sudden we're showing a huge discrepancy,” she said.

GM retained Chevrolet, Cadillac, Buick and GMC brands as part of its government-backed restructuring, and is selling or closing Saab, Hummer, Saturn and Pontiac, whose sales plummeted 88 percent in March. GM released results for the four remaining lines, which each posted gains of more than 40 percent, almost an hour before the complete tally.

“They haven't increased consideration for the remaining brands,” said Jim Hall, principal of the consulting firm 2953 Analytics Inc. in suburban Detroit. “Killing brands does not increase the consideration for the brands you're continuing. Obviously, they have to do that.”

Industry sales that failed to match analysts' estimates underscored the market's contraction in the recession. Annual U.S. deliveries averaged 16.8 million last decade through 2007. The 2008 total was 13.2 million, and 2009's tally of 10.4 million was the lowest in 27 years.

Automakers were buoyed in March by rising consumer confidence and spring weather after February blizzards in the Northeast. The Conference Board's confidence index rose to 52.5 from 46.4 a month earlier as gloom over job prospects began to lift.

On March 2, Toyota began offering incentives such as subsidized leases after the automaker recalled more than 8 million vehicles globally to fix defects linked to unintended acceleration and to adjust brakes.

Competitors responded with their own discounts while avoiding the spending levels the industry rang up in March 2009 as GM and Chrysler added incentives ahead of their bankruptcy filings. Incentives are down 14 percent from a year earlier, according to Edmunds.com.

Tuesday, March 30, 2010

Chrysler shifts tone on dealers

Automaker offers reinstatement to 50 stores, signals settlement talks with more

Finally, some movement at Chrysler.

After nearly a year of taking a hard line with rejected dealerships, Chrysler Group changed course last week and offered to reinstate 50 stores.

The company also said it will enter settlement talks with an unspecified number of rejected dealerships and disclosed that 36 already have been reinstated nationwide.

One thing hasn't changed, though. Chrysler still favors dealerships that sell all four of its brands: Chrysler, Dodge, Jeep and the recently added Ram truck brand. All 50 offers of reinstatement are to stores selling all those brands.

But despite the actions by Chrysler, problems remain.

Dealer lawyers say Chrysler hasn't budged in its approach to arbitration -- for example, demanding that arbitrating dealers sign confidentiality agreements blocking them from sharing Chrysler information with other dealers.

One dealer who received a call from a Chrysler official saying a letter of intent for reinstatement was coming said he was taking a wait-and-see attitude.

"We're looking at it with guarded optimism," said the dealer, who declined to be identified. He remains skeptical because Chrysler had given no previous indication it had any interest in bringing back any rejected dealerships.

A company spokesperson said Chrysler would continue to explore "mutually beneficial options outside arbitration" to settle with dealers who have filed for arbitration.

By offering to reinstate the 50, Chrysler reduced its arbitration caseload to 337, said a company spokesperson.

Ed Tonkin, chairman of the National Automobile Dealers Association, called Chrysler's intention to reinstate 50 dealerships "a move in the right direction." This, coupled with previous contracts awarded to 36 other closed dealerships, brings the total to 86 dealerships that could be reinstated.

In U.S. Bankruptcy Court last year, Chrysler canceled 789 dealerships.

"NADA views this as a good-faith effort and hopes that this carries forward in Chrysler's continuing settlement and arbitration discussions with the other terminated dealers," Tonkin said.

Delays?

Eric Chase, an attorney representing four rejected Chrysler dealers, said the reinstatements do not change his opinion that the automaker won't give in easily on the remaining dealerships seeking arbitration. He said Chrysler has been "obstructive" at every phase of the arbitration process.

Chrysler's demand for a signed confidentiality pledge before it will agree to provide documents in discovery is prompting complaints from dealer lawyers accustomed to comparing notes on strategy.

The company also still is resisting dealers' efforts to find out the specific criteria used in terminating their stores -- information that Chrysler was required under law to provide in January, dealer lawyers said.

"Chrysler continues to resist and contest each and every step in arbitration," said Rob Byerts, a Tallahassee, Fla., lawyer whose firm represents 13 closed Chrysler dealerships. "It appears to be for no good reason other than delay."

Delays benefit Chrysler because if arbitrations aren't completed before the June 14 deadline set by Congress, the dealers lose their cases, said Mike Charapp, a McLean, Va., lawyer.

Chrysler's nine-page "Confidentiality Agreement and Order" -- a copy of which Automotive News obtained -- has touched off wrangling in dozens of arbitrations, seven dealer lawyers said.

Chrysler defended the confidentiality agreement.

"This is a standard request in litigation dealing with sensitive financial and competitive data," the company said in an e-mail last week.

It added that the new law setting up arbitration states that "discovery shall be limited to request for documents specific to the covered dealership."

Dealer lawyers disagreed, saying the standard approach in arbitration is to consider each particular document rather than the documents as a whole.

If a document deals with trade secrets or confidential business information, then it is addressed with the arbitrator, they said. But dealership performance documents rarely raise such sensitive issues.

Hearings in April

Meanwhile, the June 14 deadline looms over proceedings, although arbitrators have the discretion to extend them another month.

A total of 115 hearing dates, scheduled from April 21 into early June, had been set as of last week, said India Johnson, senior vice president of the American Arbitration Association, which is administering the cases.

Hundreds more have yet to be scheduled. The exact figure is a shifting number, as General Motors Co. and perhaps Chrysler move to reinstate dealerships.

A total of 1,550 GM and Chrysler arbitration claims have been filed, but GM has said it is reinstating 661 rejected dealerships and is willing to discuss possible settlement with as many as 499 more.

Johnson has little concern about the arbitrations meeting the congressional deadline. Said Johnson: "We have a lot of other arbitrators that we could throw at these cases."

Monday, March 29, 2010

2000 Ford Windstar temperature control problem


When I move the temperature control nob all the way over to cold there is a clicking noise that comes from inside the temperature control panel. The clicking stops if I move it just a little bit toward warmer. Does anyone know what might be the problem?

Response:
1) Something blocking the Vent Door and striking the Fan Cage. Probably dropped down thru the Defroster on the dash. If you pull out the Blower Motor you can probably remove the item

2) This is a sign of a worn out Blend Door Actuator. This is quite common. Have it replaced and the noise should go away.

Friday, March 26, 2010

Toyota creates team for U.S. quality and recalls

Toyota's North America production and engineering company said today it has formed a Quality Task Force to help restore Toyota's quality reputation.

A key part of it: asserting U.S. consumer interests on future safety recall issues.

The U.S. group will be headed up by Steve St. Angelo, executive vice president of Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky.

Dino Triantafyllos, vice president of quality in Erlanger, has been given the task of improving how Toyota manages product safety issues.

The move is part of Toyota Motor Corp. CEO Akio Toyoda's efforts to regroup in the wake of a massive global product recall and U.S. Congressional hearings into Toyota safety problems.

Toyota's handling of consumer concerns was a hot issue during government hearings on the recalls this month. Congressmen, as well as litigants now involved in several consumer lawsuits against Toyota, have claimed that Toyota knew of U.S. problems with unintended acceleration in some models long before taking action to correct them.

Triantafyllos has been tasked with speeding up safety-related discussions through Toyota in North America, improving the way Toyota addresses them and playing a “key role in decision-making with regard to recalls,” according to a statement released today by Toyota in Erlanger.

Handling complaints

During this month's Congressional hearings, Toyota was chided for the way North American safety complaints were handled. Senior Toyota officials acknowledged that all recall decisions were made in Japan and that U.S. executives had no authority to order recalls.

“The aim of our new quality task force is to assure that all of us in North America listen and respond to the voice of the customer,” Triantafyllos said in the statement. “My primary responsibility is to assure that we utilize all of the data at our disposal and that we promptly decide the appropriate action.”

St. Angelo met today with presidents from all of Toyota's North American vehicle and parts operations at Toyota's Georgetown, Ky., assembly plant, where he holds the additional title of president.

He will fly this weekend to Japan, where on March 30 Akio Toyoda will convene a newly created Special Committee for Global Quality. St. Angelo has been tapped to represent all North American quality improvements for the committee, which reports directly to Toyoda.

Toyoda's mandate

“The new organization will open the lines of communication globally and enable us to respond faster here in North America to any concerns about our vehicles,” St. Angelo said in the statement.

“In keeping with Akio Toyoda's mandate, North America will have greater autonomy and play a critical role in decision making on recalls and other safety issues.”

The company's Erlanger task force also will work with former U.S. Transportation Secretary Rodney Slater. Slater was asked this month to lead a separate and independent North American Quality Advisory Panel to advise St. Angelo and the Kentucky group on improvements. Slater and Toyota will appoint other members to the outside panel.

Thursday, March 25, 2010

1998 Olds Silhouette abs light / brake lights act funny when abs light on

I found part numbers for a connecter and plug but can't find where to buy them.I will change them myself.


#12533714 (socket) 12101854 (connecter)

Where can I buy them?
 
Response:
1) go to www.gmpartsdirect. com and you should be able to type the part number in and maybe find it
2) goto http://www.oehq.com/

3) The REASON the light comes on is to let you know there IS a Problem.
4) Have you had the brakes checked? That is what you should do 1st. If you have and you know for sure the problem is this connection you should start by calling some of the parts stores if they can't help you try the
dealer.

Tuesday, March 23, 2010

Chrysler to launch electric Fiat 500 minicar

Fiat 500 Electric minicar

Chrysler Group said today that it plans to build an electric version of the Fiat 500 minicar for sale in the United States beginning in 2012.

Chrysler said the electric 500 will use an "advanced" lithium ion battery pack but did not give any technical specifications of the car, which will be sold as a Fiat model.

The company said the car's pricing will be announced closer to launch and will be competitive with similar electric vehicles in the market.

At the Detroit auto show in January, where a concept of an electric Fiat 500 was unveiled, Fiat and Chrysler CEO Sergio Marchionne said the concept would sell for about $32,000 if it went on the market, of which $16,000 covered the cost of the batteries.

Chrysler did not announce a production target for the 500EV. Marchionne said in November that Chrysler plans to produce about 56,000 electric vehicles annually by 2014.

Chrysler said all powertrain engineering and vehicle development for the 500EV will take place at the company headquarters in Auburn Hills, Michigan.

Chrysler is the vehicle electrification center of competence for both Chrysler Group and Fiat Group.

Scott Kunselman, Chrysler's senior vice president of engineering, said the alliance with Fiat presented opportunities to merge Chrysler engineering knowledge with new platforms from Fiat.

“The Fiat 500EV is an outstanding example of our efforts: the Fiat 500 is a small, lightweight platform perfect for integrating electric-vehicle technology,” Kunselman said in a statement.

Chrysler will launch U.S. sales of the Fiat 500 powered by a 1.4-liter gasoline engine in December. The car will be built in Mexico for the North American market. In Europe, Fiat revived the 500, an iconic car of the post-war years, in 2007.

Fiat S.p.A., which owns 20 percent of Chrysler, said, “We are currently evaluating the commercial potential of this electric car for Europe.”

Fiat's rivals in Europe, Peugeot and Citroen, will begin selling electric cars in European markets by the end of the year. Renault will follow in 2011 and Volkswagen in 2013.

Sunday, March 21, 2010

'96 Tahoe DRL

My '96 Tahoe Daytime Running Lights quit. The indicator lamp on the dash is on and goes out when I press the parking brake and comes back on when I release it.


The headlight work and the manual says the DRL uses the headlights at a reduced level.
I checked the fuse to the DRL relay and it's OK. Can't find the relay though. The manual shows the fuses and relays for other things but not the DRL relay.

Anyone have a suggestion ?

Response:

Pushing on the parking brake is supposed to shut off the DRL, so you don't have to sit with your lights on when you are parked with the motor running as in winter (heat) or summer (a/c). I've had the DRL go out on my '99 Savana only to return later. I'm usually unaware if they're working or not because it's daytime and I'm not a big fan of DRL except on motorcycles where I believe they're necessary.

Saturday, March 20, 2010

March Car Sales rise as U.S. industry turns to incentive 'drugs'

Auto sales gained strength in early March as automakers offered big incentives and melting February snows made it easier for buyers to reach showrooms.

Edmunds.com Inc. forecasts a seasonally adjusted annualized sales rate of 13.2 million for the month. Except for a 13.7 million spike in August 2009 during cash for clunkers, that would be the highest monthly SAAR since August 2008.

J.D. Power and Associates predicts a 12.1 million SAAR in March, with 1,092,000 vehicles sold. That would be 27 percent higher than March 2009.

“The industry has been recharged by incentive offers from Toyota and other automakers,” said Edmunds.com analyst Jessica Caldwell. “There’s a lot of money in the marketplace right now, and people are responding.”

Edmunds.com projects industry spending on spiffs this month will approach $3,000 per vehicle. That’s close to the industry’s record of $3,165 set in March 2009.

When that record was set, manufacturers were reeling from a February that included the lowest SAAR in decades and record high U.S. inventory levels.

What about Toyota?

“There is some risk that the incentives offered by Toyota could spark an incentive war,” Power’s forecaster Jeff Schuster warned. “While that may lead to a temporary increase in sales momentum, it could also potentially slow the pace of long-term recovery.”

Schuster is keeping his 2010 full-year forecast unchanged at 11.7 million units, with retail sales accounting for 9.6 million of that. U.S. sales totaled 10.4 million in 2009 after topping 16 million annually this decade through 2007.

A key question is how long Toyota will continue its high incentives.

Analyst Himanshu Patel of J.P. Morgan Securities thinks most other manufacturers “will feel the need to match Toyota aggressively,” without speculating how long the higher spiffs would last.

Addiction continues

George Magliano, director of North American auto research for IHS Global Insight, says the industry “is back on drugs” until the general U.S. economy starts a general recovery, which he considers unlikely before the second half of the year.

Patel noted that March sales are helped by better weather. Heavy snow in much of country slowed retail traffic in February.

Edmunds.com CEO Jeremy Anwyl thinks the sales flurry will begin to moderate later this month.

“We shouldn’t view this as a sign that the economy is recovering. This sales bounce is driven by incentives,” he said. “Take away the incentives and the sales will slow dramatically.”