Tag Archives: auto industry

Automobile Quality Drops For 2011 Models

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According to this years J.D. Power & Associates annual U.S. automobile quality study, 2011 model year automobiles have ten percent more problems than last years models. While the overall quality of vehicles has improved, consumer complaints seemed to focus on significantly redesigned cars and trucks. The Ford Motor Co. took the biggest hit, falling to 23rd from 5th place just a year ago. Most complaints, however, were about the on board MYFord Touch infotainment system offered on the 2011 Edge and Explorer crossovers. According to Dave Sargent, vice president of vehicle research at J.D. Power, Ford would have been one of the top contenders in reliability if it wasn’t for MyFord Touch. “They made the decision to be a leader in this area, leaving them in a vulnerable position.”

The top of the list was controlled by luxury automakers and foreign brands, Japanese vehicles moved up ahead this year but played it safe by not introducing too many new models to its already established line up. Lexus lead the pack with Honda close on it’s heels receiving seven segment awards. Toyota saw an impressive increase in reliability after being plagued by problematic recalls of previous years.

The top 10 most reliable auto manufacturers, based on the least number of problems reported in the first three months of operation were:

  • Lexus
  • Honda
  • Acura
  • Mercedes-Benz
  • Mazda
  • Porsche
  • Toyota
  • Infiniti
  • Cadillac
  • GMC

Ford Sync Technology Expands

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Ford has announced that they will be expanding their Sync AppLink software program to an additional ten models for the 2012 new vehicle line up, as well as significantly increasing their development team for the Sync over the next four years. Ford’s Sync infotainment system, first introduced on the 2011 Fiesta, has become popular amongst drivers who demand communication and internet mobility hands free through their smartphones. According to Doug VanDagens, director of Ford’s Connected Services Solutions, the number of apps for the Sync has grown over 150% in the last six months and developers have shown much interest in working with Ford to develop their apps to work with Sync. It is important to develop the Sync system to keep up with the demands of the customer while allowing for easy upgrades in app development.

The Sync AppLink will be available in the 2012 Ford Fusion, Fusion hybrid, Fiesta, F-150, F-150 SVT Raptor, Super Duty, Expedition, E-Series, Shelby GT500 and Mustang. Ford also said it will expand the availability of rear seat inflatable seat belts to three additional vehicles beginning next summer. They will now be made available on the 2012 Ford Flex as well as the Lincoln MKT and MKZ.

Children And Automobile Safety

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Auto safety group, KidsAndCars.org, are petitioning General Motors and the National Highway Traffic Safety Administration to recall vehicles built before 2001, to have internal trunk release mechanisms installed. This comes after two boys died last week after locking themselves in the trunk of a 2000 Chevrolet Malibu. The incident, according to the safety group, is “eerily similar” to a case two years ago where a boy and his sister died in the trunk of the same model vehicle.

Kids And Cars first started as the Trunk Releases Urgently Needed Coalition (TRUNC), a group that focused on getting trunk release mechanisms installed in vehicles, but since then have broadened their area of concern to general safety of children. The group was the main push behind the federal regulation for glow in the dark trunk release handles inside of all vehicles built in 2002 and newer, and are currently pushing to have mandatory back up cameras installed in all new vehicles. KidsAndCars.org was the first and only organization to not only recognize the dangers, but also to begin collecting data and bring national attention to these incidents.

Car Makers Reject California Emission Proposal

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California regulators are pushing a mandate that could have zero emission vehicles making up 5.5% of new car sales by 2018, increasing to 14% by 2025. The proposal is being rejected by auto makers who feel the plan is the first step into establishing new national fuel efficiency standards that could end up costing them $5,000 for every vehicle that does not meet the standard. According to the Association of Global Automakers (AGA) the requirement of electric vehicles would interfere with auto makers ability to meet the new fuel economy and emissions standards being proposed by the Obama administration. They feel that auto makers will be forced into building vehicles that are not in demand, into an infrastructure that can not meet their refueling needs. It is expected the plan would hit smaller auto companies the worst, because they have fewer resources and development advances for electric vehicles.

Buying A Car Made Easier With An App

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Car shoppers no longer have be at the mercy of a dealership sales person when shopping for a new vehicle. In the age of online resources and smart phones the resourceful consumer has a arsenal of information to help negotiate the best deal. Car research companies like Ebay Motors, Cars.com, Kelley’s Blue Book and Edmunds have free smart phone applications that allow drivers to check car prices and ratings while giving direction for nearby dealers. The app provides true market values, the Manufacturer’s Suggested Retail Price (MSRP), and helps the savvy consumer navigate the car buying process. Online calculators can help shoppers determine the type of car they can afford and how much a vehicle will cost whether paying cash, taking a loan or leasing the vehicle. Some of the apps offer a true cost to own feature which calculates how much car a buyer can afford, including taxes, interest, insurance, gas, and maintenance over the next five years. While not all apps may have information on used cars, providers say used car buyers will be offered that service very soon.

A Good Time To Get Rid Of Your Used Car

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Shortages in supply and increases in demand have made that fuel efficient used car sitting in your driveway a good investment. Car dealers looking to get their hands on well maintained used cars, especially fuel efficient ones, are willing to pay good money for it. The earthquake and tsunami in Japan continue to affect the supply of compact and hybrid cars, low car sales in 2008-2009, and automobile owners keeping their cars longer have also contributed to the lack of inventory. While the Toyota Prius seems to be the most sought after used car, a 2008 Honda Civic Lx price has increased by $2,000 since January, a 2010 Chevrolet Aveo Ls, by over $3,000, and a 2008 Ford Focus is worth about two thirds of its original sticker price .

WSJ’s Joe White explains in the above video how your can get the best deal when selling your used car.

Chevy Volt Tax Incentives Not Guaranteed

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With the price of fuel on a steady rise, consumers have turned to environmentally friendly hybrid and electric vehicles. The demand for these vehicles is leading to shortages throughout the United States and have resulted in dealership markups, some over $20,000 above the suggested retail price. Government incentives allow a $7,500 tax credit on these vehicles, but consumers may be surprised to find that some Chevrolet Volts found on dealership lots are being sold as “used” and no longer qualify..

A report in the National Legal and Policy Center (NLPC), say that some Chevrolet dealers are selling hybrid cars to other dealerships who are claiming the tax credits for themselves. Mark Modica, and investigator for the watchdog group, claimed that one Chicago Chevrolet dealer was selling a used Volt with only 10 miles on it. GM spokesman, Robert Peterson, says that while they do not encourage these transactions between dealerships, there is nothing GM or regulators can do about it. He does not believe that these transactions are done for the sole purpose of claiming the government tax credit, but are dealerships who are ineligible to sell the new Volts, trying to get these cars for their showrooms. He encourages dealers’ to have patience as the Chevy Volt rolls out nationwide. GM expects to produce only about 10,000 Volts this year, but hopes to increase production to 45,000 in 2012.

Tesla Releases 5.3 Million Additional Shares

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Tesla Motors Inc. has announced that they will be releasing another 5.3 million shares in a secondary public stock offering of $28.76 per share. These shares will be in addition to a private sale of 1.4 million to Elon Musk, CEO and co-founder of Tesla, plus an additional 637,475 shares to Blackstar Investco LLC, an affiliate of Daimler AG. The company hopes to raise about $211 million which will go towards developing their new SUV like vehicle, the Model X.

In June of 2010 when Tesla first went public, the sale was a big success. The stocks were estimated to sell at about $15 a share but ended going up to as high as $19. Just two days after the release, the stock shot up to almost double the first offering. Despite the huge success, the Tesla IPO soon lost it’s momentum.

Tesla is not expected to make a profit for another two years. They currently sell just one vehicle, the Roadster, a sporty electric car popular with the rich and famous. The first public stock offering has allowed them to develop a more affordable model, the Model S, which will be released to the public next year. The company is currently developing battery packs and chargers for Daimler and Toyota, and have been working with Toyota to develop an electric version to the RAV 4. Tesla shares currently remain steady around $27.00.