Category Archives: Auto Industry News

Chevy unveils new Camaro ZL1

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Posted in Auto Industry News, Chevrolet

The pony car war between the Ford Mustang and Chevrolet Camaro just got a performance boost.

Chevy pulled the lid off its new Camaro ZL1 at the Chicago Auto Show today, revealing a 550-horsepower monster designed to go toe-to-toe with the various special editions of the Mustang that Ford has been rolling out in recent years. The automaker claims that the new ZL1 is the fastest Chevy ever built, powered by a supercharged 6.2-liter V8 engine and equipped with a "track-ready" suspension and brakes

"Camaro ZL1 is about high-tech performance and design, and is a type of car no one has ever brought to this segment previously," said Rick Scheidt, vice president of Chevrolet marketing in a news release. "It's the most technically advanced Camaro ever, so we've chosen a name from the most elite and exclusive Camaro in history."

For those who only came onto the pony car scene recently, the ZL1 moniker refers to limited edition engine offered in some versions of the 1969 Camaro. The Wall Street Journal calls the ZL1 the "Holy Grail" of Camaro engines.

While the sleek and powerful ZL1 certainly wowed the audience, it's unknown when the limited edition car will eventually hit showrooms – or how much it will set drivers back.

Study: More car shoppers using internet research

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Posted in Auto Industry News

A new study by Polk and AutoTrader.com has revealed just how big a role the internet is playing in the car buying process.

The survey, dubbed the Automotive Buyer Influence Study, polled more than 4,000 U.S. consumers who had recently purchased a new or used vehicle. The purpose of the study was to get an idea of what the primary factors were in influencing purchases.

Unsurprisingly, information found on the internet was ahead of other sources by a large margin. Roughly 70 percent of buyers said that they used the internet at some point during their search for a vehicle, and 58 percent cited it as the most important factor. In total, car buyers spent an average of 18 to 19 hours shopping online before making their final decision, which makes up 60 percent of the total time spent on buying a car. The most helpful aspects of internet research included comparison tools and pricing guides.

Traditional media did not fare as well, with TV, print and radio advertising affecting a much fewer amount of consumers. Less than half said that a referral from a family member or friend was helpful in their purchase.

Drivers who do their research online but don't feel like hopping from dealership to dealership may want to check out New Jersey State Auto Auction, which offers a vast selection of makes and models in addition to low prices.
 

Automakers dominate Super Bowl advertising buzz

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Posted in Auto Industry News

The Super Bowl is over, and the Green Bay Packers are world champions. But who won the real battle – the one for consumers' attention?

According to Hulu AdZone, which allows viewers to watch and rate all of the commercials shown during the big game this year, the auto industry came out on top with a few well-crafted TV spots. The highest-rated commercial on the site, with 95 percent of the voters giving it a "thumbs up," was Volkswagen's "Star Wars" ad, featuring a miniature Darth Vader attempting to use the force on various household objects. Volkswagen's other spot, which announced a new version of the Beetle through the use of an animated insect, garnered third place.

Another commercial that had everybody talking was Chrysler teaming up with Eminem for the new Chrysler 200. This ad struck a serious tone, highlighting the troubles of Detroit over a two-minute-long montage while offering up the 200 as a source of inspiration that the city could be proud of. It placed in the top ten according to Hulu, garnering a 78 percent rating.

Still, not every manufacturer hit a home run. The bottom ten saw two ads from Hyundai, one from Cadillac, and another from Mini Cooper. All four of these ads couldn't crack a 40 percent approval rating on the site.

Ford ups production but slashes dealers

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Posted in Auto Industry News, Lincoln

Ford has announced that it will be upping its production totals for the first three months of 2011 as it seeks to meet the rising demand for automobiles during the first few months of the year. However, the company is also looking to decrease its dealer network in major cities.

At the recent National Automobile Dealers Association (NADA) convention in San Francisco, Ford announced that it would be increasing production by 13 percent over the next three months, bringing the total number of shippable units up to 555,000. There was more good news for dealers, as Ford announced that more than 80 percent of its dealers were profitable again, a drastic turnaround from the depths of the recession.

However, it wasn't all good news. In order to revive its flailing Lincoln luxury brand, the automaker said that it would be looking to trim nearly 100 Lincoln dealerships in major metropolitan areas, bringing the total number down from 434 to 325. Ford claims that competing dealers in the same area are cannibalizing sales and reducing profits for each other.

"If we don't get the throughput in the major metro markets right-sized, then the transformation of Lincoln is going…to need a different plan," Ford marketing chief Jim Farley told Reuters. "This transformation is going to hinge on several things working including the (dealer) network."

Auto sales rise 17 percent in January

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Posted in Auto Industry News

Major automakers have announced their January results, and the signs were good overall for the industry, as total auto sales rose 17 percent on average.

Early estimates put the total for 2011 at 12.6 million vehicles. The bump in sales meant that January 2011 is currently tied with December 2010 as the best-selling vehicle month since the federal government's "Cash for Clunkers" program ramped up sales temporarily.

Sales of larger vehicles like pickup trucks and SUVs led the charge, with that particular segment rising 28 percent overall.

"We’re off to a good start for 2011," auto analyst Jesse Toprak told the New York Times. "Gas prices rose quite a bit in the last few months, but that hasn’t deterred people from buying larger vehicles."

Among the domestics, Chrysler and GM both rose 23 percent, while Ford saw a 13 percent bump. Hyundai continued its strong showing with a 22 percent increase, while Toyota rose 17 percent, Honda was up 13 percent and Nissan 15 percent. All automakers except for Mazda posted higher sales than January 2010.

Drivers who are thinking about purchasing a new vehicle may want to shop the used car market first. New Jersey State Auto Auction offers drivers a wide selection with prices well below Kelley Blue Book values. 

Final sales tally shakes up global order

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Posted in Auto Industry News, Toyota

The final sales figures for 2010 are in, and there's been quite a shakeup in the rankings of automakers by global sales.

Toyota was able to retain its title as the world's largest automaker, despite a significant challenge from General Motors. In a year marred by recalls, Toyota saw its global sales lead dwindle, but still managed to sell 8.42 million vehicles, edging out GM's total of 8.39 million cars sold worldwide. Volkswagen was a distant third with 7.14 million vehicles sold.

Hyundai and its Kia brand had a fantastic year, as the two nameplates combined to sell 5.74 million vehicles, making it the fourth-largest automaker in the world. That was enough to push it past Ford by about 400,000 vehicles.

The biggest story, however, might just be Nissan, as the Japanese brand's alliance with French automaker Renault is paying dividends. Nissan surpassed Honda as Japan's second-largest automaker for the first time in decades, with strong showings in India, Russia and China. Although Nissan and Renault totaled their vehicles separately, a combined tally for the companies would make it the third-largest automaker in the world, unseating Volkswagen.

As the auto industry begins booming again and manufacturers start introducing new models, it's a great time to shop for a vehicle. Those searching for a car may want to check out New Jersey State Auto Auction, which boasts a massive selection and rock-bottom prices.
 

Mercedes to introduce front-wheel drive vehicles

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Posted in Auto Industry News, Mercedes-Benz

Mercedes-Benz has announced plans to introduce a new lineup of front-wheel drive vehicles to the U.S., with plans for two and possibly even a third model over the next three years.

Automotive News reports that the automaker has concrete plans for at least two U.S. models sporting the new "Mercedes Front-wheel-drive Architecture" or MFA.

"We will introduce the next generation of our MFA family to the U.S.," Mercedes' global sales and marketing boss, Joachim Schmidt, told the news source.

A coupe and an SUV are already confirmed to be making an appearance stateside. The SUV is planned for 2014 and will go head-to-head with the similar BMW X1, reports the news source. Meanwhile, the coupe, dubbed the "baby CLS" by Mercedes insiders, will arrive in 2013.

In addition, Mercedes is currently deciding on whether or not a third vehicle will see production. If it does, it would likely be in the form of a convertible or a "shooting brake," a rare compact wagon design with a squared off back.

Europe will also get two new hatchbacks, with Mercedes leaving the door open for a possible U.S. debut if they prove popular enough.

Drivers considering the purchase of a used Mercedes or any other vehicle may want to head to New Jersey State Auto Auction, where they can find vehicles for well below their Kelley Blue Book value.
 

New safety system allows cars to “talk” to each other

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Posted in Auto Industry News, Ford

A new safety system has the potential to prevent a majority of car accidents, according to a preliminary report by the National Highway Traffic Safety Administration.

Ford demonstrated the new technology for federal officials and media members on Tuesday, though it is not the only automaker to be working on the technology. The idea behind the system is to essentially allow cars to "talk" to each other using GPS and WiFi signals. The signals, sent out ten times every second, broadcast the location of a vehicle in relation to others.

That means that when another person runs a red light or is approaching a car at a high rate of speed, the driver can be alerted via a series of automated beeps. According to the National Highway Traffic Safety Administration, these vehicle-to-vehicle systems could help in 80 percent of crashes that do not involve drunk drivers.

The main drawback to the new system is that it only works if both vehicles are equipped with the sensors, meaning used cars are out of luck. Federal officials are scheduled to meet in 2013 in order to discuss the feasibility of making it a requirement for all new vehicles to have the systems in place. 

IIHS names Top Safety Picks

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Posted in Auto Industry News, Hyundai

The Insurance Institute of Highway Safety (IIHS) has revealed its Top Safety Picks for 2011, and 66 vehicles have earned the honor.

This year's tests featured a new variable that focused on roof strength, as the increasing number of rollover crashes have made the consideration more important in determining overall safety.

"We added the roof-strength requirement after our research confirmed the importance of roof strength when it comes to the seriousness of injuries to persons involved in rollover crashes," said Russ Rader, IIHS vice president of communications. "Federal studies on fatality and injury data showed that vehicles with stronger roofs resulted in the occupants having a much lower rate of serious injuries."

The big winners were Hyundai/Kia and Volkswagen/Audi, each of which walked away with nine total vehicles designated as a top pick. Subaru also earned some bragging rights, as every model it entered was named as a top pick.

Some of the individual models chosen by the IIHS included the Audi A4, Hyundai Sonata, Ford Explorer and the Toyota Sienna, which was the only minivan selected.

Drivers considering purchasing a used car can check out some of the Top Safety Picks from years past in order to ensure that their car of choice will protect them in an accident. 

Automakers gearing up for the big game

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Posted in Auto Industry News, Mercedes-Benz

Now that the world knows that the Pittsburgh Steelers and Green Bay Packers will be vying for the Super Bowl this year, the only thing left to determine is "who's running commercials?"

Year-in and year-out companies like Anheuseur-Busch, Coca-Cola and Disney are sure bets, but the industry that may get the most airtime this year is automotive, according to the New York Times. Reflecting the recent rise in sales, nine brands have reportedly bought airtime for the big game, up from just six in 2010. And that doesn't even count car-related companies like Bridgestone and CarMax.

Two of those brands are already making their presence felt. Mercedes-Benz is planning its first TV spot ever at the Super Bowl in celebration of the company's 125th anniversary. They're leading up to the big game by giving away cars via a social media contest designed to encourage people to watch their sixty-second spot in the fourth quarter.

Meanwhile, Hyundai's budget brand Kia is looking to capitalize off of last year's successful spot, which featured a crew full of stuffed animals taking the Kia Sorento for a joyride. Kia's VP of marketing, Michael Sprague, told the news source that the commercial helped the Sorento become the top-selling vehicle for every month in 2010.