Category Archives: Auto Industry News

Earthquake leading to high prices on Prius, Fit

The fallout from the Japanese earthquake and subsequent tsunami is still unfolding, but it already appears that the quake will have major effects on the auto industry in America.

Despite many of Honda, Toyota and Nissan's Japanese factories operating at limited capacity, it's unknown when the country's shipping will be straightened out, nor whether maller parts suppliers will be able to rebuild. For the time being, many are predicting a small shortage on some popular models exclusively manufactured in Japan, such as the Toyota Prius and Honda Fit.

That means that many buyers are accelerating their purchase timelines and making offers on vehicles now, leading to a spike in prices. These cars were already in high demand thanks to the recent increase in fuel costs, but the situation in Japan is complicating matters by leading to dealer shortages and high prices on the remaining models.

Fortunately, those considering these models could be in luck – if they have a trade-in. Brian Allan, general manager at Galpin dealerships in Los Angeles, told USA Today that many dealers are looking for used cars right now since the recession cut down on the number of trade-in vehicles, which means higher prices for trades can take some of the sting out of the price increases.

Drivers who are interested in smaller, fuel-efficient vehicles will have a decision to make: act soon before prices really skyrocket or hold off until the hubbub dies down. Either way, they might want to consider shopping at New Jersey State Auto Auction for deals on any type of vehicle. 

Japanese suppliers affected by earthquake could slow U.S. auto production

General Motors has announced that it will be temporarily halting production at its Shreveport, Louisiana, factory due to a parts shortage caused by the recent earthquake in Japan.

When the earthquake and tsunami hit, many auto industry analysts predicted that the quake could have dire effects for Toyota, Nissan and Honda, as the three automakers all source parts from various suppliers in Japan. The current status of those suppliers, especially the ones located in the areas badly affected by the blast, is currently unknown.

Yet many didn't predict that the effects could have far-reaching consequences for the industry as a whole. General Motors actually sources many of its parts from Japan, and with the country practically crippled in the wake of the disaster, GM was forced to shut down production at the Louisiana plant, which produces the GMC Canyon and Chevrolet Colorado pickup trucks.

GM isn't likely to be the only company affected. It's also believed that Ford sources a variety of parts from Japan, and the automaker has said it is monitoring the situation closely. Honda, Nissan and Toyota could be forced to slow or halt production at U.S.-based plants as well.

It's unknown how much this will affect production totals for the year, but it's not unreasonable to assume that some popular models may fall victim to a shortage. Drivers interested in making a purchase should head to New Jersey State Auto Auction before the problems become widespread and prices begin to spike.

Lincoln tops JD Power dependability study as industry gains overall

JD Power has released the result of its annual dependability survey, and in a somewhat surprising turn of events, Ford's luxury Lincoln brand ended up on top.

Lincoln has never topped the survey over the 21 years its been run, but the marquee was able to edge past Lexus. JD Power reported that Lincoln owners tallied an average of 101 maintenance problems per 100 3-year-old vehicles, while Lexus had an average of 109.

Jaguar and Porsche grabbed third and fourth place, respectively. Toyota was rated as the most dependable non-luxury brand, with an average of 122 problems per 100 vehicles.

Overall, the industry turned in its best year ever for the survey, with automakers averaging 151 problems for every 100 vehicles. That was down from recent totals of 155 in 2010 and 167 in 2009.

"Automakers, as a whole, have made significant improvements in reducing traditional problems" the past several years, claims David Sargent, vice president of auto research for JD Power.

Still, while the industry is doing well, some companies were not up to par. The Chrysler group fared particularly poorly, with Ram trucks at 173 problems and Dodge, Chrysler and Jeep all over 200.

Those looking for a dependable vehicle at an affordable price may want to check out New Jersey State Auto Auction, which offers a variety of cars for sale at affordable prices. 

Japanese automakers assess earthquake damage

The massive earthquake that struck Japan on Friday has forced the country's major automakers to suspend all production at their manufacturing plants indefinitely, as the companies take stock of the damage caused by the natural disaster.

Japan was rocked by an 9.0-magnitude earthquake, which also triggered a subsequent tsunami. Many of the factories for Toyota, Honda and Nissan are located in the central part of the main island, which only suffered minor damage from the earthquake and avoided the tsunami completely. However, the Tohoku region, just north of Tokyo, was hit particularly bad, and the three companies suffered damage to more than a dozen plants in the area.

In addition, the status of the part suppliers used by the companies is unknown at this time.

"Our first priority on Friday was, are our people OK?" Nissan communications and marketing director Simon Sproule told the Detroit News. "What's uncertain now is the extent of the damage to suppliers, particularly small suppliers in remote areas. That's what we're looking at now."

All three automakers have released statements that reveal they are still trying to determine the extent of the damage. In terms of vehicles sold in the U.S., most are made at plants located within North America. However, some select models, like the Scion xD and xB, Acura RL, Honda CR-Z and Toyota Yaris are made exclusively in Japan and are imported. There is currently no timetable for when production will resume.

Ford regains top spot on Kelley’s “most considered” list

The latest data from Kelley Blue Book's quarterly "most considered" study has revealed that Ford is currently on the highest percentage of buyer's shopping lists when in the market for a new vehicle.

Kelley Blue Book runs a poll every quarter in which they ask new car buyers for a list of brands they're currently considering, with the title of "most considered" being highly coveted among automakers. Ford took first place by a wide margin, appearing on 29 percent of the lists. Chevrolet and Toyota were tied for second with 22 percent apiece.

Toyota dominated the list for many years, but the economic downturn coupled with the recall scandal meant that Ford usurped the top spot for the period between the fourth quarter of 2009 and the second quarter of 2010. The Japanese automaker regained the lead in the third quarter, but the most recent data shows that Ford was once again on top.

"Ford's revamped product offering, strong business strategy and clever marketing have helped to lead it back to a position of prominence in the minds of new-car shoppers," said Jack Nerad, executive market analyst for Kelley.

Drivers in the market for a Ford or any other vehicle may want to consider New Jersey State Auto Auction, which offers a wide range of cars for sale at well below their Kelley Blue Book value.

Mazda recall weaves a tangled web

Arachnophobes beware: Mazda is recalling 52,000 Mazda6 sedans for problem related to the eight-legged crawlers.

Apparently, a certain species of spider, the yellow sac, is attracted to the evaporative canister vent line. The problem is that these creatures will infest the vent and begin to spin webs, which will in turn block the necessary vapor from traveling through the line, possibly leading to leaks or stalling in the engine. Mazda plans to insert a spring into the vent to prevent spiders from nesting in there.

It's certainly a first to recall a car for a spider problem, but the Mazda6 isn't the only vehicle suffering from the issue. Honda issued a technical service bulletin (TSB) in 2009 for the same problem in 2008-2009 Accords. The TSB is a step down from a full recall because the issue won't effect vehicle performance in the Accord – although it may cause the "check engine" light to come on.

Hyundai similarly issued a TSB for the same vent line, saying that problems with it could be caused by debris or possibly spiders. Again, the Hyundai vehicles don't appear to have any serious ramifications like the Mazdas do.

Drivers who shop at New Jersey State Auto Auction will be able to choose from a wide range of vehicles, which is a good thing – because arachnophobes will probably want to steer clear of these vehicles. 

Car buyers responding to fuel price increases

The whims of car buyers can change frequently, but one of the biggest influences in purchasing decisions is the current state of fuel prices.

When fuel prices were down throughout 2010, many automakers reported sales gains for SUVs and pickup trucks. However, now that the average price for a gallon of gas is back up to $3.50, shoppers are increasingly looking to hybrids and compacts, USA Today reports.

A recent survey by AutoTrader found that 53 percent of respondents indicated that they were considering switching to a more fuel-efficient vehicle as a direct result of rising prices. A similar poll by Kelley Blue Book found that four out of five consumers were influenced by gas prices in February, which was an 11 percent increase over January.

Those trends are showing up in sales figures as well. As compared to February 2010, Toyota's Prius hybrid saw a 70 percent increase in sales last month, according to AutoData. The Honda Civic and Ford Fusion hybrids similarly saw increases of 54 and 12 percent, respectively.

Drivers looking to save money on their next vehicle may want to consider New Jersey State Auto Auction. The company offers a wide range of a fuel-efficient cars for sale at affordable prices. 

Honda, Chrysler and Toyota announce recalls

Three major automakers have issued recall notices for some popular used car models, with nearly 75,000 vehicles recalled in total.

Honda recalled the most vehicles, with the company putting out a notice for more than 35,000 Civic Hybrids in the 2006 and 2007 model years. The company says that there may be a problem with the cars' voltage converter, which provides power to the motor. Should the converter fail, the engine could possibly stall. Honda claims that seven people have contacted the automaker with reports of stalling, while 82 warranty claims were made with regard to the converter.

Toyota will also be recalling vehicles, specifically FJ Cruisers, Sequoias, Tacomas, Tundras and Land Cruisers made between 2008 and 2010. Approximately 22,000 of these vehicles may have an issue with the tire pressure monitoring system, which may fail to notify a driver when their tires are running low on air.

Finally, Chrysler has announced that it will be recalling nearly 20,000 Jeep Wranglers from the 2010 and 2011 model years, with the issue being attributed to the fasteners on the axle. The company revealed that the fasteners may become loose, which could potentially cause a loss of control in the vehicle.

Drivers in the market for a new or used vehicle should consider New Jersey State Auto Auction, which offers a wide range of vehicles at affordable prices.

Mercedes shows off C-Class Coupe

Mercedes-Benz has pulled the lid off of its new C-Class Coupe, a model that is sure to go head-to-head with BMW's similar 3-Series offering.

The C-Class is somewhat of a replacement for the company's CLK Coupe, which was discontinued in 2009. However, the new version is both smaller and less expensive than the previous model. According to AutoBlog, the coupe shares many similarities with the C-Class Sedan, with the key difference being the shape and size – the roofline on the coupe is 1.5 inches lower than the sedan, giving it a noticeably sleeker and more aerodynamic look.

Drivers will have a choice between a 201-horsepower four-cylinder or 304-horsepower V6, the same two engines offered on the sedan version. Mercedes is claiming a zero-to-sixty time of less than six seconds for the V6 version of the coupe.

Those who want true power may want to hold out a bit, however, as the C63 AMG version of the coupe is expected to be unveiled later this year and provide a serious upgrade in performance.

Drivers interested in a Mercedes-Benz or any other vehicle may want to shop New Jersey State Auto Auction, which offers a wide range of new and used cars for sale at affordable prices.
 

Cadillac surprises, but BMW still on top in February

BMW had the best month among luxury automakers in terms of pure sales figures, but the real surprise was Cadillac, which was able to leapfrog both Lexus and Mercedes-Benz for the second-highest total in February.

Cadillac sold nearly 16,000 cars in February as its sales rose 70 percent from February 2010. BMW was still able to outsell the brand buy about 700 cars, with an 8.7 year-on-year increase. Mercedes came in third for the month with a 4 percent increase, while Lexus' sales remained even and kept it in fourth.

Although the massive sales spike was certainly welcome news for the Detroit automaker, analysts are hesitating before jumping on the General Motors bandwagon.

"GM offered aggressive incentives to employees and friends in February," Jesse Toprak of TrueCar told Bloomberg. "That helped GM and clearly helped Cadillac." Cadillac's incentives in February averaged out to nearly $5,000 per vehicle.

Drivers interested in a luxury car or any other vehicle may want to visit New Jersey State Auto Auction. High-end vehicles are typically pricey when bought new, so browsing through a wide range of used cars for sale can help buyers find the perfect car at a more affordable price.