Category Archives: Auto Industry News

New compact luxury SUV in the works for Lincoln

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Posted in Auto Industry News, Lincoln

After ending the Mercury brand, Ford is currently in the process of reviving the Lincoln luxury line, and plans to take aim at one of the best-selling market segments by introducing a compact luxury SUV.

The unnamed Lincoln model is said to be smaller than the company's MKX and designed to compete with the top-selling Lexus RX, according to the Detroit Free Press.

"Our commitment to Lincoln is to reinvent it," Ford VP of Marketing Ken Czubay told the news source. "We will have seven major new products or redesigns over the next two years."

The new model is set to be built at the company's Louisville production facility, which currently makes the Ford Escape and Explorer. The new Lincoln is expected to eventually take the slot of the Explorer, which will cease production on December 13th.

Lincoln has struggled lately despite Ford's renewed vigor for the brand. In fact, Mercury, which Ford chose to axe in favor of Lincoln, has actually outsold the brand thus far this year.

Drivers in the market for a luxury vehicle may want to check a used car dealership, as they might be able to get the typically-expensive models at an affordable price. 

Mercedes details “Magic Sky” on next SLK

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Posted in Auto Industry News, Mercedes-Benz

Mercedes-Benz has released a few early pictures of its upcoming 2012 SLK, but perhaps even more intriguing is a new feature that might change the way drivers think about convertibles.

The company released several new pictures of the car, although it was covered in a casing so that the public cannot yet see the final design. The company, did however, spill the beans on a new feature on the car that its dubbing "Magic Sky Control."

The new SLK will continue to use a retractable hardtop like previous iterations, but the new model will come with a glass pane option that will give the entire roof a see-through finish.

Many drivers might assume that this could lead to an extremely hot car on summer days. That's where "Magic Sky" comes in. The new glass pane consists of magnetic particles that are suspended in fluid. With sky control off, these particles filter out light, ensuring that the inside of the car remains cool – up to 50 degrees cooler, according to the company. But when the control is turned on, the particles shift, allowing light through and creating the illusion that the top is actually down.

Drivers looking for a luxury car may want to shop the pre-owned market, where a used Mercedes can be found for substantially less than its original sticker price. 

Government calling shots in GM IPO

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Posted in Auto Industry News, Chevrolet

General Motors is currently gearing up for its initial public offering (IPO) in the wake of a multi-billion dollar government bailout.

A recent Reuters report has revealed that the U.S. Treasury Department, which currently owns the majority of GM, is calling the majority of the shots in the new IPO. The Obama administration has a vested interest in the company reeling in a lot of money through its offering.

If analysts value the company highly, it could go a long way toward paying back the $43 billion that it owes American taxpayers. In fact, if analysts are particularly keen on GM stock, American taxpayers could actually end up making money off of the bailout.

It's ultimately up to the federal government and other investors including the Canadian government and United Auto Workers union, how much stock they want to sell. Even if the government doesn't make all the money back in the bailout, they'll likely want to sell their remaining shares before the next presidential election.

The IPO will cap a significant turnaround for General Motors. The automaker has introduced a number of new models, and brands like Chevrolet have risen on consumer satisfaction surveys.

Drivers interested in a Chevy or any other vehicle may want to shop the used car market, where they can find deals on cars. 

Toyota to debut new Prius in Detroit

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Posted in Auto Industry News, Toyota

Toyota is planning to unveil a new version of its best-selling Prius hybrid at the Detroit Auto Show in January.

The Japanese automaker has been tight-lipped about details thus far, but previous reports indicate that Toyota is actually planning two new versions of the Prius – one larger than the current model and the other smaller.

"It will be an all-new model with more comfort, better styling and more versatility," Don Esmond, senior vice president of Toyota Motor Sales told the Detroit Free Press. The news source speculated that the "more comfort" description could mean that the larger model will debut at the auto show rather than the smaller one.

Toyota has committed to green technology in recent months, with plans to unveil a number of models over the next few years. The company will debut a plug-in Prius hybrid next year. It's also working on an electric version of its RAV4 crossover.

The company has been working with luxury electric automaker Tesla Motors to develop its hybrid technology. Toyota recently invested $50 million in the small automaker to solidify their partnership.

Drivers interested in purchasing a car may want to consider a used Toyota, as the pre-owned models are less pricy than their newer counterparts. 

Toyota asks judge to dismiss lawsuits

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Posted in Auto Industry News, Toyota

In the latest twist in the Toyota unintended acceleration case, the automaker has asked the federal court to throw out the hundreds of lawsuits it is currently facing, calling them baseless.

The company was forced to recall millions of used Toyotas after it was found that a problem with floor mats could jam a pedal and cause the car to unexpectedly accelerate. Many have speculated that the issue might actually lie with the electronic systems in the car, but Toyota has denied this accusation repeatedly.

The plaintiffs in the class action lawsuit claim that they are filing on behalf of all Toyota owners who have an electric system in their vehicle. The automaker recently stated that this "defies common sense."

"Toyota is confident that its cars provide safe, reliable transportation and that the plaintiffs have no credible claims of loss or defect," said Cari K. Dawson, an attorney for Toyota, in a company statement.

Recent documents in court allege that Toyota knew about the acceleration issue well in advance of the recall and purchased vehicles back from complaining consumers. Those consumers then supposedly signed a non-disclosure agreement that stated they could not talk about the malfunctions.

Nissan planning several electric vehicles

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Posted in Auto Industry News, Nissan

Nissan is going all-in on electric vehicles.

The Japanese automaker has already gained a lot of attention for its Leaf, which will be the one of the first mass-produced fully-electric cars for sale. The company recently announced that it has plans for three more electric vehicles after the Leaf, including a smaller Infiniti model, commercial van and a micro urban car.

"We don't want EVs to be a niche product," said Corporate Vice President Hideaki Watanabe.

The company also unveiled a concept that it stressed was certainly not yet ready for production, but raised a few eyebrows. The "Nissan New Mobility CONCEPT" is a go-kart inspired vehicle that can hit 47 miles per hour and travel 62 miles on a single charge. The company is currently studying uses for the car, like amusement parks and certain cities.

Drivers interested in electric vehicles may want to wait until a few hit the used car market, as the novelty of the technology will likely make them quite expensive for a few years.

BMW recalling vehicles for fuel pump issue

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Posted in Auto Industry News, BMW

BMW has announced that it will recall more than 150,000 vehicles due to two separate issues related to fuel pumps.

The first notice affects 130,000 used BMWs from the 2007 to 2010 model years. The luxury automaker says that the high-pressure fuel pumps in twin-turbo inline six-cylinder engines could possibly fail, affecting engine performance. The issue could cause the engine warning light to come on or the engine to possibly go into "safe mode," accompanied by a loud tone and malfunction light.

Models in the recall include the 2007-2010 335i; 2008–2010 135i, 535i and X6 xDrive35i; and 2009–2010 Z4 Roadster sDrive35i. Of these vehicle, BMW estimates 40,000 will need entirely new fuel pumps while the rest will just need updates to the vehicle's software.

In a separate move, BMW says there is also a issue with the fuel pump in approximately 20,000 X5 SUVs from 2008. This low-pressure fuel pump is actually a separate part with a different issue than the high-pressure pumps included in the first recall.

Drivers interested in a BMW may want to shop the used car market in order to save money on the luxury vehicle.

Honda expects profits to rise

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Posted in Auto Industry News

Honda has revised its initial forecast for the year after surging second quarter profits boosted by significant tax breaks on green vehicles.

The Japanese automaker is currently in a neck-and-neck race with Nissan for the title of Japan's number 2 automaker. Nissan has yet to report its quarterly results, but they'll have to be great to close the gap on Honda, which recently reported that its profit more than doubled compared to the same period last year, taking in earnings of approximately $1.68 billion.

Tax breaks by the Japanese and U.S. governments helped the automaker move more green vehicles. Honda makes a number of hybrids in the U.S., with plans for electric vehicles in the near future. The Insight hybrid was a top seller for the company, along with perennial favorites like the Accord and Civic.

The results were so good that the company has revised its initial projection for the year, now believing it will take in $6.2 billion in total profit rather than $5.6 billion. If the company hits that total, it will be an 86 percent increase over the previous year's total.

Drivers interested in hybrid vehicles may want to wait until they are widely available on the used car market, as the technology is still rather expensive.

Lawsuit brings further allegations against Toyota

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Posted in Auto Industry News, Toyota

Since news broke of the unintended acceleration issues in their vehicles, Toyota has recalled more than 10 million vehicles. While the flaws have certainly done damage to the company's reputation, the hundreds of lawsuits filed in the wake of the scandal may pose more trouble for the automaker.

The recall affected both new and used Toyotas. The various lawsuits were recently combined into one case, which is currently being heard in California.

The Associated Press reports that documents filed in the lawsuit allege that Toyota had prior knowledge of the issues, but made no effort to correct them. Instead, the company supposedly bought back vehicles from any drivers who complained about the issue. In exchange, the company compelled those owners to sign a confidentiality agreement that prevented them from ever discussing the issue in public.

If the allegations are true, they would like cause more damage to Toyota's reputation, which it is working to rebuild. The automaker has yet to comment on the documents.

Drivers considering buying a used Toyota should ensure that the models they are considering have had the proper maintenance in the wake of the recalls. 

Microsoft develops new auto software

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Posted in Auto Industry News, Ford

In-car technology has become increasingly popular, with software like Ford's Sync allowing drivers to download apps and integrate multiple devices. Microsoft recently unveiled its new auto software that will be used in both Sync and upcoming Nissan vehicles.

Microsoft debuted the new technology at SAE Convergence, a conference dedicated to both the tech and auto industries.

The first iteration of the software, known as Windows Embedded Automotive, was used in the Ford Sync system in 2007. Since then, other automakers including Hyundai and Fiat have licensed the technology for their in-car software.

The software giant claims that the new version allows automakers to use a more advanced graphics display, including 3-D visuals. The company has also vastly improved the speech-recognition technology, adding support for features like responding to text messages via voice commands.

It will take some years for the latest version to debut in actual cars, as the vehicles typically take 18 to 24 months to develop. Microsoft has announced that the Nissan Leaf will be the next vehicle to use the software, although it won't be the latest version that Microsoft used at the show.

In the meantime, drivers might want to try out Sync or a similar technology in their next car. Buying a used Ford equipped with Sync could be a good way for shoppers to save money off the big price tags put on these features when bought new.