Category Archives: Auto Industry News

EPA approves 15 percent ethanol mixture

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Posted in Auto Industry News

The Environmental Protection Agency (EPA) is expected to announce a new approval for the use of corn-based ethanol in a variety of used car models.

According to The Associated Press, the EPA has reached a consensus on the approval of 15 percent ethanol fuel mixtures for use in used vehicles made between 2001 and 2006. Previously, only solutions that contained 10 percent ethanol were okayed for use in those vehicles.

Proponents of ethanol-based fuel argue that it is an attractive alternative to traditional gasoline, which would theoretically reduce U.S. dependence on foreign oil. Many gas stations have begun offering ethanol-based fuels for use. Cars with engines that are designed to accept E85, also known as "flex fuel," have the option of using fuels with higher concentrations of ethanol.

However, the use of ethanol is not without its critics. As ethanol is derived mainly from corn, some in the agricultural industry argue that diverting the resources to fuel will drive up the cost of food. Ethanol is also not safe for use in smaller engines, such as those found on motorcycles, lawnmowers or boats.

Congress has previously stipulated that gasoline refiners must blend in a total of 36 billion gallons of biofuel into auto fuel by 2022, a goal that many believe is only achievable with the higher concentration blends.

Chevy unveils new Sonic

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Posted in Auto Industry News, Chevrolet

Compact cars are all the rage in a more economically-conscious auto market, and models like the Ford Fiesta and Honda Fit have sold well for their respective companies. But GM's small car offering, the Aveo, was often left in the dust, prompting the automaker to give the car a makeover.

GM debuted that makeover at the recent North American International Auto Show in Detroit, showing off the new Chevy Sonic, an updated, hipper version of the Aveo that looks set to go up against Ford's Fiesta for the title of coolest small car when it debuts in the 2012 model year.

The Sonic debuted in a bright orange, attention-grabbing paint scheme, and GM execs were quick to point out that the backseat has more room than the Fiesta. The new Sonic packs some punch under the hood, with drivers able to choose between the base 1.8-liter four-cylinder or the turbocharged 1.4-liter variant.

All signs pointed to the Sonic being a bigger part of GM's plans as well. The company showed off a concept version of the car called the Z-Spec, a tuner car with outfitted with funky rims and a racing stripe. The company will also be using the Sonic's platform to build the new luxury Buick Verano. 

Ford execs: Lincoln to receive new identity

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Posted in Auto Industry News, Lincoln

While Ford has engineered a massive turnaround for its core brand throughout 2010, its luxury Lincoln marquee has lagged behind for the most part.

If Ford executives have their way, however, that won't be true for long. At the North American International Auto Show in Detroit, Derrick Kuzak, Ford's global vice president of product development, outlined the big changes that Ford has for the struggling luxury line.

"The strategy isn't just new products, but full differentiation from the Ford brand in not only design, but in technology," he said.

Until now, Lincoln products have been slightly upgraded versions of existing Ford vehicles. But the new outlook for the brand is to develop models that will be based off of Ford platforms, but vastly different in all other areas. Examples include significant performance upgrades, entirely new sheet metal, high-end technology on the interior and in some cases, unique engines.

According to USA Today, Ford CEO Alan Mulally further told a group of reporters that the naming conventions for Lincoln vehicles were also under consideration, and that the automaker may move away from the "MK" style seen on recent vehicles.

Toyota expanding Prius offerings

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Posted in Auto Industry News, Toyota

The Prius has been the top selling hybrid of the last decade, and whether an eco-conscious buyer is shopping for a new or used car, it's likely near the top of the list. So it should come as no surprise that Toyota is looking to parlay its successful model into an entire range of offerings.

At the recent North American International Auto Show in Detroit, Michigan, the Japanese automaker announced the new "Prius family" consisting of the existing Prius and three brand new models, one of which is still in the concept stage. The company hopes that the varied offerings will appeal to a broader customer base than the existing sedan Prius can.

First up is the new Prius v, which the company says stands for "versatile." This hybrid wagon is designed to compete with crossovers, SUVs and vehicles aimed at families.

Going in the opposite direction in terms of size is the Prius c, the compact Prius. Although still just a concept, Toyota hopes that this version of the Prius will be able to take on smaller hybrids, like the Honda Fit, and provide an affordable option for eco-conscious consumers.

Finally, the company also unveiled the new Prius Plug-in, which is expected to go toe-to-toe with the Chevrolet Volt, Nissan Leaf and other EVs rumored to be in the works by other automakers.

The Prius can be a bit expensive, so drivers looking for a hybrid option now may want to check out the used car market for some slightly more affordable options.
 

Volt, Explorer, named Car and Truck of the Year

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Posted in Auto Industry News, Chevrolet

The North American International Auto Show will see the debut of a number of new cars, but all eyes were on the awards podium as two of the most important honors of the year were announced.

The North American Car and Truck of the Year Awards are significant bragging points for automakers, as the results are tabulated by the votes of 50 automotive journalists from a number of publications, rather than one source. The finalists have been known for awhile, with the Chevy Volt, its electric nemesis the Nissan Leaf and the Hyundai Sonata competing for the title. In the end, the much-hyped Chevy Volt was the winner, a significant victory for the once-beleaguered General Motors.

Meanwhile, another domestic automaker took home Truck of the Year when the Ford Explorer beat out Chrysler's Dodge Durango and Jeep Grand Cherokee for the honor.

While the Explorer is a somewhat traditional pick for the automotive press, the Volt and Leaf were two unconventional choices to say the least. Not only were the models the first electric vehicles to be given the honor, but the Volt and Leaf have a tiny number of sales compared to more established vehicles. The Associated Press reported that the Volt had moved just 350 units in December, while the Leaf sold only 10 models – though the numbers are expected to rise as the cars are rolled out nationwide. 

Ford to debut stop-start technology

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Posted in Auto Industry News, Ford

American automaker Ford has largely shifted to a small-car strategy as of late, focusing marketing efforts on cars like the Fusion and Fiesta while modifying classics like the F-150 and Mustang to offer more fuel efficient rides. The company seems to be furthering that aim by announcing that it hopes to have "stop-start" technology available on all cars for sale by 2012.

The feature is a simple and cost-effective way to decrease the fuel consumption of any vehicle, and is already available on Ford's European models along with the American Ford Escape and Fusion hybrids. By detecting when a vehicle is fully stopped, the feature shuts off the engine in order to reduce the fuel wasted while a vehicle is idling. When the driver presses the accelerator, the engine automatically starts up again with no noticeable lag or delay – similar to a "sleep mode" for an automobile.

With commuters typically forced to come to a stop in heavy traffic and city dwellers dealing with numerous red lights, Ford claims that the technology can increase fuel economy by anywhere between four and 10 percent. The EPA has not yet included stop-start testing in their official fuel efficiency ratings, so the MPGs for any Ford cars that use technology likely won't see a bump for a few more years.

CarMax announces used car upswing

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Posted in Auto Industry News

CarMax, a national chain that owns and operates a number of used car dealerships across the country, has reported a noticeable uptick in used car sales for the third quarter, allowing the chain to increase profits beyond investor's expectations.

Profit for the company rose by 10 percent year-on-year to $82.4 million, up from $74.6 million in the third quarter of 2009, according to The Associated Press. The strong postings for the company were largely attributed to a high demand for used cars.

Actual revenue for the company was actually up 23 percent, with all dealerships under the CarMax banner moving more than $2.12 billion worth of used autos. According to the company, it makes about $2,103 in profit every time a car is sold.

"We've seen a nice trend here over the last few quarters of increased traffic and increased sales," CEO Tom Folliard said in a conference call with investors. "This quarter's results showed sustained strength in many of our key areas."

While dealerships may have the widest variety of used cars for sale, shoppers may want to keep in mind that they may be able to find even better deals on cars by visiting an auto auction or buying through a private seller.

Hyundai: Not so fast on Volt, Leaf

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Posted in Auto Industry News, Hyundai

After the three finalists for the North American Car of the Year were announced, many publications automatically assumed that one of the two new electric vehicles – either the Chevrolet Volt or Nissan Leaf – would walk away with the trophy. But Hyundai, the maker of the third finalist, the 2011 Sonata, is pointing out that its vehicle shouldn't be counted out just yet.

In a statement released to USA Today's "Drive On" blog, Hyundai spokesman Jim Trainor lightly chastised the blog and other websites for essentially predicting victory for the new Volt, by talking up the Sonata's features while denigrating the two competitors' slow sales.

"You'll never have to worry about 'range anxiety' in a Sonata," he said. "And it must be worth something that customers have already taken delivery of almost 200,000 Sonatas – this while at least one other finalist is talking about their first two deliveries. The positive environmental impact of 200,000 high-fuel-efficiency Sonatas far outweighs that of a niche car that will sell around 10,000 units – about half of what we do each month."

Trainor also pointed out that the Sonata comes in three different versions, including the base, turbo and hybrid options.

Drivers interested in any of these models may want to wait until the vehicles hit the used car market, as they might be able to get a great deal on a Car of the Year candidate. 

Ford plans U.S. version of Euro minivan

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Posted in Auto Industry News, Ford

Ford has announced that it will return to the minivan market for the first time in four years, with plans to debut an American version of its previous European-only C-Max compact van.

With minivan sales dropping off, Ford made the decision in 2006 to discontinue the flailing Freestar model in America. Meanwhile, Europe got a small minivan known as the C-Max that was based off of the successful Focus platform.

Now, the success of small cars like the Focus and Fiesta coupled with an expected boom in the minivan market is causing Ford to bring the C-Max stateside. Ford product development chief Derrick Kuzack told Bloomberg that the automaker purposefully avoided making the car look like a "box on wheels," instead opting for the exterior styling featured on the company's more recent successes. Although smaller than competitors, the C-Max still features seating for seven and a focus on cargo space.

According to J.D. Power and Associates, minivan sales are expected to increase by 52 percent in 2012. That makes the arrival of the C-Max in late 2011 optimal for capitalizing on the rising number of families in the market for a vehicle.

Drivers who are interested in the company's earlier van models may be able to find used Ford Freestars or Windstars are their local dealer.

Automakers betting on electric future

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Posted in Auto Industry News, Chevrolet

While Chevrolet and Nissan will be first out of the gate with their new Volt and Leaf electric vehicles (EV), drivers shouldn't expect the electric segment to remain a two-horse race for very long. In fact, nearly every major automaker has unveiled plans for a fully-electric or plug-in hybrid by the end of 2012.

Yet it remains to be seen if the American public will be waiting with open arms. A recent survey by Kelley Blue Book revealed that only 7 percent of Americans would consider purchasing an EV, citing issues like range, availability of charging stations, and price.

Several automakers have recently made a move to work on the price of the electric battery packs that every EV must contain. Current technology means that the packs cost $700-$800 per kilowatt hour. But a breakthrough by electric automaker Tesla in adapting lithium-ion laptop batteries for use in vehicles means that the price could soon be reduced to $200 per kilowatt hour.

With the battery packs one of the costliest additions that cause electric vehicles' prices to skyrocket, that's good news for green drivers. However, those who want to truly save on a car may want to wait until some of the models hit the used car market, where they'll likely be available at a discount.