Automotive News
News for November 6, 2008.The Center for Automotive Research published a study yesterday which says that if GM, Ford and Chrysler were to go out of business it would eliminate nearly 3 million jobs from the American economy. CAR says the U.S. government would lose $60 billion in the first year alone, and $156 billion within three years, and it recommends that Washington seriously consider helping the automakers survive.
News for November 10, 2008.
When it comes to cash, General Motors is on its last legs. In the third quarter GM doubled its cash burn rate, and may have tripled that burn rate when sales fell 45% last month in the American market. GM will likely hit the bare minimum levels of cash it needs to run the company before this year is out. And if it can’t pay its bills, that means bankruptcy is right around the corner.
News for November 12, 2008.
The bailout for the Big 3 has grown to $75 billion. Even though most news reports refer to a $25 billion package, there are actually three packages that are being discussed. The first is a $25 billion package to help General Motors, Ford and Chrysler retool their plants for more fuel-efficient vehicles. The second $25 billion is a bridge loan to get them through the current economic downturn. And the third $25 billion is to pay for health care costs for retirees, and is something the UAW is really pushing for. Put it all together and the bailout now comes to $75 billion.
And as it approaches a desperate situation, the Detroit Free Press reports that GM will have to cut an additional 3,500 salaried employees in the next couple of months. Only 6 years ago GM had 46,000 salaried employees, but this new round of cuts will take that down to only 25,000.
News for November 14, 2008.
The bailout mess for the auto industry just gets messier. The Wall Street Journal reports that it’s going to be hard to get a bailout bill out of this lame-duck session of Congress. Republican opposition to the bailout is stiffening, and some Democrats are arguing that it’s better to wait until Barack Obama is sworn in as President, rather than risk losing a vote right now.
WWJ reports that in Europe there are rumblings of filing a complaint to the World Trade Organization claiming that the bailout of the Big 3 is illegal. And the Financial Times in the UK reports that the three largest credit insurance companies in Europe have yanked their coverage for automotive suppliers who do business with GM, and Ford. This is credit insurance that covers suppliers in case one of the car companies was to go out of business. The cut-off primarily affects suppliers operations in Europe.
Autoblog Reports that Ferrari, Rolls-Royce and Land Rover are following Porsche and pulling out of the North American International Auto Show in Detroit. This is probably because of the global economic slowdown and the fact that they don’t have any big product news to announce. This move shows that even the most prestigious car brands are hurting right now.
Nissan announced it will introduce an ultra-low precious metal catalyst on the new Cube. The catalyst uses half the precious metals compared with conventional catalysts which chops the price dramatically. The technology was developed under the Renault-Nissan Alliance, and will be used in future Renault vehicles as well as diesel engines.
News for November 17, 2008.
It’s going to be a nail biter in Congress for the American car companies this week. Will they get the bailout money or not? Democrats are telling President Bush they want the auto industry to get some of the $700 billion earmarked for the financial industry. Bush says, “No way.” He’s telling the Democrats to give the automakers the $25 billion that Congress already earmarked to re-tool plants to make green cars. The Democrats say, “No way.” That’s where it’s stuck and probably nothing will happen in this lame-duck session of Congress.
Meanwhile, the AFP reports General Motors sold its three percent holding in Suzuki for about $230 million. Both companies say they’ll continue to work together.
And in Europe, the German government is considering giving GM’s subsidiary Opel some sort of financial aid, as well as aid to other German automakers and suppliers. Unlike in the United States, there doesn’t seem to be nearly as much controversy over helping out the auto industry.
Of course, the German auto industry is in much better shape. Volkswagen reports that sales are up almost 3 percent for the year, thanks to the so-called BRIC countries, Brazil, Russia, India and China. But VW isn’t immune to the global downturn. Sales fell five percent in October. Even so, it’s still impressive that they still expect to be up for all of 2008.
In Japan, Mazda just released a refreshed version of the Demio. Known as the Mazda2 in other markets, it gets a new interior with a glossy black center panel and matching materials for the seat cover centers and door trim. Silver garnish is added to the shift knob, parking brake and inner door handles. The Demio costs between $12,000 and $16,000 and is on sale now in Japan.
Toyota is about to come out with its all-new cross-over called the Venza. The five-door people hauler goes up against the Nissan Murano and Ford Edge. It offers a four-cylinder engine or an optional V6, and front- or all-wheel-drive. The Venza will start reaching Toyota dealers early next month
News for November 18, 2008.
As the Big 3 CEOs and the president of the UAW testify in Washington on why they need a bailout, the European Union is drafting a plan to do the same for automakers on the Continent. The Wall Street Journal reports that they could get loans or subsidies. The CEO of Daimler, Dieter Zetsche warned that 300,000 jobs are at risk in the German auto industry.
On the heels of GM’s announcement yesterday that it was selling its stake in Suzuki, Ford is going to cut its holdings in Mazda in half. Ford’s share will now be just over 13 percent, down from 34.4 percent. Under Japanese law Ford used to have controlling interest in Mazda, now it will not. But by selling its share, Ford will get $540 million in badly needed cash.
Ford will reveal its redesigned 2010 Mustang at the LA Auto Show later today. The all-new ponycar features more aggressive styling and a brand new interior, though the major mechanical parts basically carryover. The biggest news though is on the interior. The design and execution are top-notch. The whole dashboard is made of soft materials, not hard plastic like the current car, and all the aluminum trim is real. It gets some other nice touches like an optional dual-zone climate control, Ford’s capless fuel filler and better aerodynamics.
News for November 19, 2008.
Bailout money for the auto industry doesn’t look good, but that shouldn’t surprise anyone. This is a lame-duck session in Congress, one where many members who lost in the last election are only back in Washington this week to pack up their belongings and empty out their offices.
Along with everything else, demand for steel is plummeting, and the price is crashing. Over the last two years prices of steel and iron ore more than doubled. But the Wall Street Journal reports that steelmakers are now suspending contracts with their raw material suppliers. Other metal prices, including aluminum, copper, and nickel are also plummeting, which will provide some relief to automakers and suppliers.
One problem facing the Detroit automakers is that they can’t charge as much for their cars than competing brands. In a report from the Wall Street Journal, the typical Ford Focus and Chevy Cobalt sell for three to four thousand dollars less than the average Honda Civic. When you add the numbers up, Honda earns $3 billion more per year selling the Civic than Ford makes from the Focus.
November 20, 2008. And now, the news.
The bailout effort for the Big Three in DC is kaput…..for the time being. Democratic Senator Harry Reid, the majority leader, said he didn’t have the votes to provide the automakers with any money and he’s calling the whole thing off.
So what’s next? Now Detroit will have to wait for Barack Obama to be sworn in as president in January. He has stated strongly, on the record, that he is in favor of saving the Big Three and the UAW.
Hyundai announced it plans to meet the Corporate Average Fuel Economy regulations of 35 MPG by 2015. That’s five years ahead of the deadline. Hyundai will introduce a hybrid version of the Sonata in 2010, offer more fuel-efficient versions of the Accent and Elantra next year; and introduce a new CUV powered by a turbocharged gasoline direct-injection, 4-cylinder engine. By the way, Ford also said it will come in ahead of schedule on CAFE.
Pakistan’s auto industry is suffering along with all other automakers. Yes, Pakistan does have an auto industry. WardsAuto.com reports that there are 8 car companies in Pakistan and 1,600 suppliers. The country makes 160,000 vehicles a year and the major players include Suzuki, Toyota and Honda. Jeez, they’ve got to deal with the Taliban, Al-Qaeda, missile strikes and a 42% drop in car sales. Boy, and we think we’ve got it bad.
source: http://www.autolinedetroit.tv/
Other news
Mechanics Seek The Keys To Servicing All
Cars
By Scott Goldstein NJBIZ.com
10/28/2008
All mechanics would be able to service any car under a
first-of-its-kind bill, passed yesterday by the New Jersey state
Assembly, that’s being pushed aggressively by business and
consumer advocates.
The Motor Vehicle Owners’ Right to Repair Act, A-803, would give
motorists the ability to obtain the manufacturer’s “codes”
necessary to diagnose, service and repair their vehicles —
eliminating the need for a trip to a dealership for maintenance
and repairs.
“As cars have become more technologically advanced,
manufacturers have been able to gain an unfair advantage by
forcing owners to rely on dealerships for even the most routine
maintenance,” said Assemblyman Reed Gusciora (D-Mercer), a
sponsor of the bill. “It is time to break the monopoly
dealerships and manufacturers have held on car maintenance for
too long.”
If enacted, New Jersey would be the first state in the country
to have such a law.
Under the measure, motor vehicle manufacturers would be required
to provide owners, car repair shops and the state Division of
Consumer Affairs access to the information and computer codes
necessary to service a vehicle. Exemptions would be granted in
cases where disclosure of the codes would reveal proprietary
information.
Dealers or manufacturers violating the law would be punished by
fines of up to $10,000 for a first offense, and up to $20,000
for subsequent offenses. The measure passed 49 to 22, with eight
abstentions. It now goes to the Senate for consideration.
Be wary of ‘fuel-saving’ devices for
your car
By JONATHAN WELSH
The Wall Street Journal
High gas prices have produced a bountiful supply of one kind
of product: fuel-saving gadgets for your car.
These devices, which cost anywhere from $35 to $300, are pitched
as simple ways to improve fuel economy. While not all of the
devices are new, $4-a-gallon gasoline has increased consumer
interest and inspired new ad campaigns — often evoking hybrid
vehicles and alternative fuels.
A kit called Water4Gas, for example, has instructions for
converting your car into a “water hybrid” that uses “the atomic
power of hydrogen” for less than $150. The Magnetizer offers to
save fuel by rearranging the ions in your fuel line. The maker
of the Fuel Saver 7000 says the $170 device boosts fuel economy
by treating gasoline to a “three-stage” vaporization process.
One familiar type of fuel saver looks like a fan or turbine made
of sheet metal or plastic and ranges from $35 to $65. Installed
in a vehicle’s air-intake such products, with names like
Turbonator, Spiral Max or CycloneFuelSaver, are supposed to
improve fuel combustion inside engines by causing incoming air
to swirl.
Another type of device works on the fuel to make it burn more
efficiently. Some systems inject air, water or other vapors or
liquids into the fuel mixture before it enters the engine or
infuse fuel with tiny amounts of platinum. Others use heaters to
expand the fuel or employ magnets attached to the fuel line to
modify the fuel.
But auto-industry officials and federal energy experts say most
fuel-saving add-ons don’t work. The Environmental Protection
Agency and Federal Trade Commission have tested products that
claim to boost fuel economy and found they generally don’t
improve vehicles’ efficiency — and they sometimes actually harm
performance and increase emissions. The dozens of products
tested include some air-swirling gadgets, magnetic devices and
liquid-injection systems, though not specifically the FuelSaver
7000, Water4Gas, Magnetizer, Turbonator, Spiral Max or Cyclone.
And drivers, beware: In some cases, installing certain devices
can void cars’ factory warranties.
Biofuels May Hinder Antiglobal-Warming
Efforts
The idea behind switching energy usage from fossil-based fuel
like gas to ethanol is that it is better for the environment.
Much of the push to create alternative energy companies has been
based on this premise and it has also helped the American farmer
get more for crops like corn.
Now it appears that ethanol may not be so "green." According to
The Wall Street Journal "a study published in the latest issue
of Science finds that corn-based ethanol, a type of biofuel
pushed heavily in the U.S., will nearly double the output of
greenhouse-gas emissions." A second study appears to support
those findings. Part of the CO2 increase created by biofuels is
due to changing land from forest to farmland. The process causes
large amounts of greenhouse-gas emissions to be sent into the
atmosphere.
The news is hardly good for the hundreds of biofuel companies
that have been created around the drive for "green" fuel, and it
may not be good for farmers who are getting higher yield from
the crops they plant to create alternative energy.
Friday, February 01, 2008 MEDFORD, Wis. (AP) —
Frank Oresnik is on the verge of making history driving his old standby — the pickup truck he says is about to pass the
1 million mile mark.
Oresnik took the 1991 Chevrolet Silverado to the Oil Ex-Change Quick Lube in Medford on Thursday for what he expects will be its last oil change and tuneup before hitting the magic number.
He said the truck is 1,200 miles from a million, and once he hits the mark he will retire the vehicle.
"I feel almost like the longtime NFL player as he goes into his last training camp knowing this is the end," Oresnik said.
He credits proper maintenance and a good measure of luck for allowing the truck to rack up so many miles. He said he's had more than 300 oil changes and tuneups at the Medford business, going in every 3,000 miles.
The truck has had four radiators, three gas tanks, five transmissions and six water pumps, but the engine has never been overhauled, Oresnik said.
He bought the Silverado in June 1996 after the original owner put 41,000 miles on it. Oresnik uses the vehicle to deliver seafood in three states, putting on about 85,000 miles a year.
Copyright © 2008 The Associated Press. All rights reserved.
These vehicles are built to last, and
their owners have a few tips for you
THE ASSOCIATED PRESS
Friday, October 5, 2007
Maybe you or someone you know has an old junk heap of a car with
150,000 miles on it. Maybe you think that's a lot.
It's not. read
more
What's in your Glove Box?
Americans no longer use the glove box to store gloves, which
is what the space was originally designed for when it was first
introduced in the 1920s, and 72 percent of people do not know
how the compartment originally got its name.
While drivers need to be more mindful about storing their
vehicle title in the glove box, they are on the right track when
it comes to storing other essentials. The survey took a peek at
what people are storing in today's glove box:
The results revealed that nearly half of Americans are storing
something they shouldn't - the vehicle title. Forty-four percent
of Americans are unintentionally sending an invitation to car
thieves by storing their vehicle title in their glove box. If a
vehicle title gets in the wrong hands, a thief would be able to
change the name on the title, sell the vehicle or legally put
the keys in his or her pocket.
"Vehicle titles should never be kept in the glove box but
rather in a safe place at home or in the office," said Mike
Accavitti, director for Dodge Brand and SRT Marketing and
Communication. "Dodge wants to inform consumers on what should
be stored in the glove box and how they can optimize utilization
of the space to enhance their lifestyle."
While drivers need to be more mindful about storing their
vehicle title in the glove box, they are on the right track when
it comes to storing other essentials. The survey took a peek at
what people are storing in today's glove box:
94 percent store proof of insurance.
92 percent store vehicle registration.
71 percent store tissue and napkins.
63 percent store maps.
53 percent store a flashlight.
47 percent store their sunglasses.
44 percent store the vehicle title.
38 percent store a first-aid kit.
Biodegradable Motor Oil?
TAMPA, FL (April29, 2007) — Nano Chemical Systems Holdings Inc.
has developed NANOIL, a nano-enhanced motor oil designed for
today's vehicles that the company says can perform as well as
today's fossil and synthetic oils. Nano says its product is
non-toxic and 100 percent biodegradable, thus eliminating the
current disposal issues with present commercially available
lubricants.
"We can not overstate the environmental impact of ‘green’ motor
oil that, if sufficiently biodegradable, can reduce or eliminate
the need for disposal of crank case oil as a toxic waste and
eliminate that ugly black line down the center of the freeway
lanes where commercial vehicle traffic is concentrated," says
Alex Edwards, Nano's CEO and president.
10 automotive features that are on their
way to history
By Bill Jackson, Cars.Com | May 13,
2007
You probably remember them -- maybe fondly, maybe not. The
eight-track player. Manual windows. Locks you actually had to
lift. As cars get more technically advanced, many features we
once knew are heading to the dustbin of history.
After reviewing Cars.com's data banks and scouring through
automaker press kits, we've come up with a list of once-common
features now on the way out.
These can still be found in entry-level vehicles, but as soon as
you step up from the least-expensive vehicle in an automaker's
lineup, they disappear. Holding a button to raise a window is
easier -- and probably safer -- when you're pulling away from a
tollbooth or drive-through window.
Cassette-tape decks: Yes, you can still find them. Many European carmakers still insist on them, and some people have stuff on tape they can't transfer to a CD for whatever reason. But, really, the car world today is one of CDs and MP3s.
Keys/mechanical locks: We're a nation of fobs these days. Press the button, unlock the driver's door. Press it again, unlock all the doors. If you're really high-end, you don't even know what a key is because of your fob that talks to the car and unlocks the door as you approach. A start button rids you of the trouble of putting a key in the ignition and turning it.
Center-rear lap-only seat belts: This one is a marked improvement as far as safety is concerned. Most cars now provide the person sitting in the most uncomfortable seat in the car the same three-point belt the other passengers enjoy. Sure, you could find a car that still offers a lap-only seat belt back there, but why would you want to?
Cars priced less than $13,000: Yes, everything is getting more expensive; that's just how the world works. If you want all the latest safety features and amenities, it's going to cost you. It may appear many automakers offer cars for less than $13,000, but it's usually just one stripped-down model.
3-speed automatic transmissions: Three on the tree means nothing to kids now, and it's not because carmakers have moved the gearshift from the steering column. Three-speed transmissions are at least one speed too slow for nearly all of today's cars. If the current trend toward five- and six-speed transmissions continues, we'll soon be saying the same thing about four-speed models.
True compact pickup trucks: Not only are things getting more expensive, they're getting bigger as well. Just as houses are McMansions and drivers are increasingly -- ahem -- husky, the small pickup of ages past is expanding to what could legitimately be called midsize.
Six-passenger, rear-wheel-drive, body-on-frame cars: This used
to be the way all cars were made: You built a frame, attached
the engine and transmission, slapped on the body and off you
went. There was a front bench to carry Mom, Dad, and one child,
and a rear bench for Grandma, Grandpa, and the other child. No
more. Only the Ford Crown Victoria, Mercury Grand Marquis, and
Lincoln Town Car meet all these criteria now. Front bench seats
in particular are going the way of the dodo; Buick joins Ford
and Lincoln as one of the few automakers to put them in their
cars. Larger SUVs and trucks are the best bet if you really want
a front bench.
© Copyright 2007 The New York Times Company
