What’s In Store For The Auto Industry In 2010?

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Happy New Year! I hope that everyone has had a safe and happy holiday season.

Even after the government pumped in more than $123 billion in support of the auto industry and its suppliers during the past year, 2009 still turned out to be a disastrous year with some of the lowest car sales since the 1970s. Companies have been selling their technologies and subsidiaries in an attempt to keep their heads above water and although there are some great deals to be had out there, it seems that in general, people just don’t have the money to spend. Sales increased towards the end of 2009, but this was mostly due to government incentives and a push for dealerships to get rid of their 2009 and discontinued models.

Overseas the car industry has faired a bit better. Car sales in China last year jumped almost 45% percent to 13.5 million vehicles, overtaking the U.S. market, according to analysts polled by Reuters. In Spain, December car sales were up 25 percent, the fourth consecutive monthly increase, supported by government subsidies and the French carmakers’ association said on Monday that new car sales in France surged 49 percent in December to 228,451 vehicles also supported by government incentives.

If you listen to the auto analysts you really don’t get a feel for what 2010 has in store. Some say 2010 will be a good year, while other say a bad one. So who can you believe? It seems to me that the auto industry is being backed by government incentives and subsidies and unless they want to continue pouring money into it, it could be a bleak year. I guess we will have to just wait and see.

Ford and Microsoft In ‘Sync’

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With concerns about distracted drivers causing automobile accidents, Microsoft has created Sync, a voice controlled in car system where there is no LCD screen distracting you from the road. Push a button on the steering wheel, tell the system what you want and your request is confirmed by a robotic female voice.

Sync is Ford’s voice-controlled in-car system for wireless hands-free operation of a cell phone and for playing music from a connected MP3 player. Automated calls for 911 assistance in the event of an air bag deployment are also part of the Sync package Ford has been adding features to Sync since its introduction. The latest version includes built-in GPS navigation with spoken turn-by-turn directions; traffic updates; recorded news and sports articles; and vehicle health reports.

There is no monthly fees for the first three years (Ford has not determined whether fees may be applicable after that), and drivers do not need to pay extra for a data cell phone plan. The system sends information over a voice channel of the driver’s phone.

Though the system is quite simple to use, drivers do need to learn Sync’s preset commands which means either reading the manual or waiting for prompts from the interactive voice menu. People who have tried the system say they are never 100% comfortable with only voice commands and having passengers in the vehicle make it difficult to have a conversation and follow directions at the same time. Like all new technology, Sync has it’s glitches but hopefully with more testing it can become a tool in making our roads a little safer.

Tax Credits For Batteries

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Automakers will be receiving $220 million in tax credits to help develop battery packs for hybrid and plug in hybrids vehicles. The credits, which include $100 million for battery manufacturers and $120 million for battery pack assembly, are designed to benefit Ford Motor Co., General Motors Corp. and Dow Chemical Co.

Ford plans to move production of battery packs from Mexico to southeastern Michigan and to invest up to $500 million to assemble hybrids and lithium ion batteries there. “This is huge,” said James McBride, vice president of the Michigan Economic Development Corp. “This is the rebirth of the auto industry in this state.”

Despite the recent excitement over electric cars, the National Research Council thinks that it will be a few decades before we see hybrids in “meaningful numbers”.

Chrysler to Challenge Legislation

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Complaints made to Congress from GM and Chrysler dealerships has led to a House approved $1.1 trillion spending bill. This bill will give dealerships a chance to dispute their closure depending on their past success. G.M. and Chrysler proposed their own review processes last week in an effort to keep Congress from getting involved, but their proposal was rejected.

Today, Chrysler came back challenging the decision, calling it ‘unconstitutional legislation’. Sergio Marchionne (CEO of the Fiat and Chrysler Group LLC and Chairman of the European Automobile Manufacturers Association) said that restoring large numbers of dealerships could cause havoc within Chrysler. “We are in a completely different position than G.M.” he said. G.M. has about $42 billion in cash in September, paying back $6.7 is easier than it would be for us.” Mr.. Marchionne also said G.M. was more focused on repaying the loans because the government owns 60% as opposed to 10% of Chrysler. Chrysler’s majority shareholder is the United Automobile Workers union’s retiree health care trust.

Chrysler is planning to make investments that would provide jobs and other economic benefits. Building a fuel-efficient engine with Fiat technology in the United States is one of three goals that each allow Fiat to gain an additional 5 percent of Chrysler.

Honda Mileage Over Inflated

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In March of 2007, John True of Ontario, California purchased a Honda Civic hybrid hoping that he could save a bit on fuel and do his part for the environment. He chose Honda because they had advertised their hybrid mileage as 49 miles per gallon in the city and 51 miles per gallon on highways. After about 6 000 miles of driving he found that it was almost impossible to reach this. Many other Honda hybrid owners came to the same conclusion including one by Consumer Reports. John filed a lawsuit against Honda claiming Honda had inflated the mileage. The settlement covers almost 160 000 people who owned or leased a 2003 through 2008 model Honda Civic Hybrid.

The class action has been settled, but more than half the nation’s state attorneys are objecting to the settlement. In this class action, Honda will send DVD’s to current and former Civic owners with tips on improving the fuel economy. Owners who trade in their Honda Civic Hybrid for certain Honda or Acura vehicles could get up to $1,000 rebate on some vehicles or $100 in cash if they had made a complaint previously. Others who no longer owned their hybrid would get a $500 coupon. “The coupons offered to consumers are of limited value: They are worth only a fraction of the price of the original car,” the attorneys general said in a court filing Monday. ” “Cars like the Honda Fit, Insight, Civic Hybrid and CRZ are the class of vehicle these hybrid owners would most likely buy, yet they have been excluded from the list.”

In the beginning of 2007 new Environmental Protection Agency (EPA) tests, were unveiled to better reflect real world driving. As a result, fuel economy for all vehicles fell an average of 12% in the city and 8% on highways.

Get Your Teen On the Right Track When Learning to Drive

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Here are some facts about teens and driving:

-Motor vehicle crashes are the No. 1 cause of teen death in the United States
-Six thousand teens die each year in traffic accidents.
-Teens are 10 times more likely to die in a vehicle accident than the average driver.
-a teenager is injured in a motor vehicle accident every 15 minutes.

The best way for a teenager to learn to drive, is to practice “avoidance and survivability.”

“Avoidance” means to avoid distractions when driving — talking or texting on cell phones, talking to a friend in the car, eating or paying more attention to the stereo.

“Survivability” is simple….”Buckle Up”! In many accidents involving teens, the teen has been ejected through the windshield because they were not wearing their seat belts

The standards for teens to get a drivers license is higher today than it was when we were learning to drive. Many states now require at least 30 hours behind the wheel before issuing a license. (Most veteran driving instructors suggest at least 40 hours practice). Since most schools provide only about 5-6 hours of driving training most of the responsibility is on the parent.

Here are some tips to help you help your teen become a better driver.

When you first take your teen out, start in an area where there is very little traffic. Picking a familiar area makes it easier and more comfortable for the driver and teacher. Avoid talking down to your student or loosing patience with them, the extra stress can only hurt the learning process. Give directions well in advance. As your teen becomes more comfortable behind the wheel, less instruction will be needed and you can increase the responsibilities of your teen. Eventually taking them driving at night and then in poor weather.

Teaching your teen to drive starts before your teen even starts to drive. Hopefully, by watching your driving techniques your child should have already picked up some ‘good’ habits. Ultimately, parents should make the best teachers for their kids, but if this is not possible, there are many public and private companies offering driving instruction.

Used Car Buyer’s Guide Due for a Face Lift

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The Consumer Buyer’s Guide which hasn’t been updated since 1985, requires all used car dealers to disclose warranty information in writing before the sale of any vehicle. The Buyers Guide should be displayed on the vehicle so customers can see the front and back as they look at the vehicle. Any car dealer or person selling 6 or more motor vehicles in a 12 month period is required to follow the FTC Buyers Guide Rule. This includes posting a Buyers Guide on every car, truck, trailer, ATV, jet ski, RV, semi truck, or any vehicle with a loaded gross vehicle weight rating of less than 8,500 pounds, a curb weight of less than 6,000 pounds, and frontal area of less than 46 square feet. The only exemptions to the FTC Buyers Guide rule are motorcycles, some agricultural equipment, and any State Certified Salvage dealer selling a car for junk, salvage, or parts. All States, the District of Columbia, Guam, American Samoa, Puerto Rico, and the US Virgin Islands require dealers to abide by the FTC Buyers Guide rule. Maine and Wisconsin have there own state laws and warranty disclosure documents that protect buyers during a vehicle transaction. Special Agents of the Federal Trade Commission conduct what are called “Buyers Guide Audits”. They will come to a city without notice and inspect every dealer in the area. These agents operate all over the country to make sure all dealers are complying buy the Federal Trade Commission’s Buyers Guide Rule.

The National Association of Attorneys General says it is time to protect buyers from rebuilt wrecks. The changes involve adding additional information on whether a vehicle was badly damaged in a crash or flood or bought back by the automaker as a lemon. The current emphasis on warranty information needs to be changed as well.

The National Automobile Dealers Association, however, opposes adding such information, which it said constitutes “far-reaching changes” that would “impose significant, costly, and in some cases, impossible burdens on used car dealers.” The attorneys general association said that requiring more information, included from the National Motor Vehicle Title Information System system, would cost little “and would result in an effective and efficient federal double-faceted assault on used-car fraud.” This information system requires all states, as well as insurance companies and junk yards, to report vehicles so badly damaged they were considered totaled and not worth repairing. Consumers can check vehicle identification numbers at a government Web site, but many people don’t know that such valuable information is available therefore, adding a vehicle’s history to the Buyer’s Guide would be a great help to buyers.

Think you may be driving a lemon? Call the California Lemon Law Firm of Delsack and Associates for a Free CA Lemon Law consultation. They have been helping consumers since 1987. Call and speak with an attorney now at 888-Ex-Lemon