Category Archives: Auto Industry News

Luxury sales race will be tight as year comes to close

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Posted in Auto Industry News, BMW

The year-long battle between North America's top luxury brands has been intense, with three separate companies – Lexus, Mercedes-Benz and BMW – all having a chance at claiming the crown. Though Lexus holds the lead going into December, all three have a chance at coming out on top.

Lexus has been the top-selling brand on the continent for the past 10 years, but has seen its dominance challenged in 2010 thanks to a wave of recalls by parent company Toyota. That gave both Mercedes-Benz and BMW a chance to knock the Japanese nameplate off its throne.

Bloomberg previously reported that the battle was down to Mercedes and Lexus, but a strong showing by BMW in November has made it a three-horse race. Lexus has the lead with 201,769 vehicles shipped, while the German brands are neck-and-neck at 196,833 for BMW and 196,288 for Mercedes.

BMW improved its sales by 30 percent year-on-year in November, compared to an 8.4 percent rise for Mercedes and a 1.4 percent drop for Lexus.

Despite the recent drop-off for Lexus, BMW U.S. unit chief Jim O'Donnell told the news source that Lexus would likely walk away with the crown thanks to December incentive programs that will drive sales. Mercedes and BMW, meanwhile, have backed off of incentive programs.

"Next year, I would like to think we may have a go at them," he said.

Lexus’ GS-F to challenge high-performance luxury rivals

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Posted in Auto Industry News, Toyota

Luxury brands have done well with a slew of high-performance variants of their base vehicles, whether it's Mercedes-Benz's AMG division or BMW's "M" designation. But with the exception of the high-powered LFA Supercar, Toyota's Lexus brand has mainly stayed out of the horsepower-fueled fight.

Now the Toyota subsidiary appears to be coming out swinging. With rival Infiniti's "IPL" edition of the G37 coupe selling well and Audi recently announcing the A6, Lexus has pulled the lid off of the GS-F, a high-powered version of its GS midsize sedan, to compete with the speedsters in both Germany and Japan.

Road and Track reports that the GS-F will source a 5-liter V8 engine from the company's previous IS-F compact. That engine delivered 465 horsepower, which would put the GS-F at a competitive disadvantage with cars like the M5, which may have over 600 hp in its next version. It's possible that Toyota could choose to use a supercharger to up the numbers, but the news source cites unidentified sources in saying that the GS-F will shed a significant amount of weight in order to surpass rivals in 0-60 times with the decreased power.

No pricing has been announced, but the GS-F will likely carry a high price tag. Those interested in high-performance vehicles on a budget may want to buy a cheap used car and make some upgrades themselves.
 

Audi’s new A6 brings it in line with rest of fleet

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Posted in Audi, Auto Industry News

Those who have seen the latest Audis, like the A8, may have noticed the eye-like LED headlights or sleek grille. The German automaker has brought this design to nearly all of its new releases, but one model was curiously missing – the A6.

That's about to change, as Audi has pulled the lid off of the new A6, which several sources say looks like a smaller version of the redesigned A8. Drivers who really take the time to explore the new A6, however, will find a whole new model with plenty to love.

Audi claims that the new A6 is nearly 150 pounds lighter, thanks to a substantial amount aluminum used in the bodywork. The car will still offer the supercharged V6 from the previous iteration, which gets 300 horsepower. However, the automaker estimates that they have increased fuel economy by more than 5 mpgs on both city and highway, which would put it at a 26 combined mpg rating – if the EPA agrees. It is unknown if the inline-4 or non-supercharged V6 options available in Europe will also make their way stateside.

When the new Audi hits dealerships in 2011, it's likely that many of the older A6 models will find their way to the used car market. Those considering a luxury vehicle purchase may want to wait until that time comes and take advantage of the likely deals on used Audi A6's.
 

Infiniti M35h to get warning system

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Posted in Auto Industry News, Nissan

The new Infiniti M35h hybrid will receive a new warning system that will alert pedestrians to its approach, as some safety officials have expressed concern over their virtually silent electric motors.

Although not mandated by the National Highway Traffic Safety Administration, Nissan has elected to put a noisemaking system on the new M35h in order to keep pedestrians safe in city settings. The automaker originally developed the Approaching Vehicle Sound for Pedestrians (VSP) system for use in the all-electric Nissan Leaf.

The VSP system will work between 0 and 20 miles per hour and automatically detect when a pedestrian enters the car's path, emitting a distinctive noise. The sound cuts out once the driver brakes to under 15 miles per hour.

The Detroit Free Press notes that the new feature is as much a marketing opportunity for Infiniti and Nissan as it is a safeguard against pedestrian accidents. The new model was recently unveiled at the LA Auto Show, and the automaker is already advertising the quiet engine on both the M35h and Leaf as a selling point for the vehicles.

Drivers who are interested in purchasing a hybrid or electric vehicle might want to wait until they hit the used car market, where they'll likely be relatively more affordable than when bought new.
 

Hyundai’s new Elantra impresses at LA Auto Show

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Posted in Auto Industry News, Hyundai

Hyundai has been on a tear as of late, enjoying increased sales on the back of its new flagship Sonata, which has become a top-seller for the company. If the recent L.A. Auto Show is any indication, it doesn't look like Hyundai's hot streak will be stopping anytime soon.

The South Korean automaker unveiled a revamped version of its Elantra compact at the auto show, a compact car meant to compliment the Sonata and compete with cars like the Chevy Cruze and Ford Focus. The initial reception for the new car has been enthusiastic, with respected sources like Consumer Reports, Motor Trend and Automobile Magazine all giving early positive reviews.

One of the things that nearly all are mentioning is the car's size for its price. Though priced as a compact car at around $15,000, Hyundai says that the car actually qualifies a midsize vehicle with the EPA due to its roominess. Yet it still enjoys the benefits of small cars, with Hyundai claiming 40 miles per gallon the highway for the car.

Drivers interested in the brand may want to shop for a used Hyundai, as they'll likely be a bit more affordable once the new models roll in.

Nissan Leaf: 99 MPG, 73 miles per charge

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Posted in Auto Industry News, Nissan

The EPA ratings for the highly-anticipated Nissan Leaf have been released, with the government rating the car at 99 miles per gallon overall and 73 miles per charge.

The high ratings in both city (106 mpg) and highway (92 mpg) are big wins for Nissan, who will obviously tout the car's fuel economy when marketing it. The EPA has actually come up with a formula to convert electricity to gas ratings in determining the Leaf's efficiency, as the purely-electric vehicle has no gas tank. What the rating essentially means is that the car uses fuel at the same rate that a gas-powered vehicle rated that highly would.

Yet it's not all celebration for Nissan, as the 73 miles per charge average may be a bit disappointing, considering Nissan originally claimed that the Leaf would be able to travel 100 miles on a charge.

Nissan's North American product planning director Mark Perry defended the claim in an interview with ABC News, saying that the company has been straightforward about the numerous variables that go into mileage.

"As we've said all along, your range varies on driving conditions, temperature, terrain and we've talked about, very openly, this idea of a range of ranges," he said.

Drivers interested in an electric vehicle may wish to wait until they begin to hit the used car market, where they might be found for a discount.

Mercedes unveils CLS 63 AMG, announces partnership with Ducati

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Posted in Auto Industry News, Mercedes-Benz

It was a big day for Mercedes-Benz as the German luxury automaker showed off the 2012 CLS 63 AMG while simultaneously announcing a partnership with Italian motorcycle manufacturer Ducati.

Described as a "four-door coupe," the CLS 63 AMG is Mercedes' entry in a growing market of four-door high-performance luxury vehicles that includes the Maserati Quattroporte, Aston Martin Rapide and Porsche Panamera. The new version of the vehicle produces 518 horsepower and 516 lb-ft of torque in the standard edition.

Mercedes is also touting an AMG-developed package that boosts the performance even further, using turbochargers to squeeze out 550 horsepower, 590 lb-ft or torque and a 0-60 time of 4.3 seconds.

The automaker also announced a new partnership with Ducati. The two companies will co-sponsor events and marketing campaigns that will take advantage of both brands' emphasis on speed and performance. Ducati was on hand at the event to reveal its new Diavel, a sport bike aimed at racing enthusiasts.

"Both companies share the same values: racing as the driving passion, and high performance plus exclusivity as the central brand messages of both AMG and Ducati," Mercedes CEO Ola Kallenius told USA Today.

Those interested in a luxury vehicle may want to shop for used Mercedes at their local dealer, as the models are typically expensive when bought ne

Ford announces Focus Electric cities

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Posted in Auto Industry News, Ford

Ford is preparing for the late 2011 launch of its first all-electric passenger car, the Focus Electric. The automaker recently announced the first cities that will be receiving the vehicle as part of it's phased roll-out strategy.

The new Focus will hit dealerships in early 2011, with the electric version to follow later that year. The initial cities for the launch were chosen based on hybrid purchasing patterns, local commitment to electric vehicles, and number of residents, among other factors.

In a statement, the company named Atlanta, Houston, Austin, Boston, Chicago, Denver, Detroit, Los Angeles, San Francisco, San Diego, New York, Orlando, Phoenix, Tucson, Portland, Raleigh-Durham, Richmond, Seattle and Washington, D.C. as the starter cities.

"This is the first step in rolling out the Focus Electric," Mark Fields, Ford’s President of the Americas said in a statement. "As the country continues to build up its electric vehicle infrastructure and demand for the Focus Electric grows, Ford will continue to evaluate additional markets."

Electric vehicle enthusiasts may want to wait until a few models hit the used car market, as the cars are typically expensive at launch.

Honda Accord achieves first perfect rating under new crash test system

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Posted in Auto Industry News

The Honda Accord has become the first vehicle to achieve a perfect score under the National Highway Traffic Safety Administration's (NHTSA) tougher new rating system.

The NHTSA instituted a stricter rating scheme this year after many vehicles were awarded five stars under the old system. In addition to new tests and higher standards, the redesigned scores also give an overall rating, which the government body says allows shoppers to easily compare multiple cars for sale.

The new system saw perennial five-star cars knocked down a few pegs. The Toyota Camry, for example, was rerated as a three-star vehicle. The redesigned Hyundai Sonata was the first to achieve an overall score of five stars, but a four-star rating in the frontal crash test kept it from a perfect score.

Now Honda has the bragging rights that come with the perfect safety rating, scoring five stars in the frontal, side and rollover collision tests. The NHTSA is still working its way through the 2011 model year, with plans to rate 55 models by the year's end.

Drivers searching for used cars will likely be looking at vehicles rated under the old system, which had a higher percentage of cars achieving five-star safety ratings.

Mercedes-Benz: Avoiding stupidity

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Posted in Auto Industry News, Mercedes-Benz

Mercedes-Benz has Lexus in its sights and is close to toppling the perennial leader in terms of yearly sales, but the German luxury brand says it won't be doing anything "stupid" solely to become the top-selling luxury nameplate.

In the yearly sales estimates, Mercedes is actually outselling Lexus by approximately 1,000 vehicles. Yet Lexus has come on strong in recent months and executives believe that the competition to be the top-selling brand will come down to the wire.

When automakers are engaged in close sales races, they typically introduce a number of incentives to drive sales. Bloomberg reports that while Mercedes will definitely use this tactic, they won't be losing money on vehicles simply to outpace Lexus.

"December is a big month," Dietmar Exler, vice president of Mercedes-Benz Financial USA, told Bloomberg. "There will be some programs, but there will be nothing stupid just to be No. 1."

Buyers may see some deals on luxury cars for sale in the coming months, but they are unlikely to drop the total price of a luxury model into an affordable range for the average shopper. Those who still want to end up in a high-end vehicle may want to search the used car market for a deal instead, as there are sure to be some year-end deals there as well.