Category Archives: Auto Industry News

Audi helps charge Volkswagen profits

By
Posted in Audi, Auto Industry News

Volkswagen isn't performing up to past standards, but the company's Audi luxury brand is keeping profits high for the German automaker.

Despite being significantly smaller than the main Volkswagen brand, Audi accounted for nearly half of the company's total profits in the first nine months of 2010, with $3.1 billion of a total $6.6 billion. That's a significant turnaround from just $1.6 billion in 2009. The luxury automaker is currently on track for its best year ever in the U.S., on pace to break the 100,000 sales mark for the first time.

"All indications continue to point toward 2010 winding up as the best year Audi has ever enjoyed in the U.S. market," said Audi U.S. President Johan de Nysschen.

Unfortunately, the automaker got disappointing news this week when a Consumer Reports survey listed many cars in the fleet as having "below average" reliability. Audi had previously been enjoying a big year for awards, with the Audi S4 winning Esquire's Car of the Year award.

The next launch for the company is the A8, a redesign of the company's flagship sedan that's due in November.

Drivers may want to wait until they can buy a used Audi, as they'll be significantly more affordable a few years from now.

Battery company demonstrates 375-mile range on Audi

By
Posted in Audi, Auto Industry News

One of the caveats holding electric cars back from widespread adoption is the range limits that batteries impose. If the claims of a German battery company are to be believed, those problems could soon be a thing of the past.

DBM Energy recently held a road test for reporters to see if their batteries, which are primarily used in forklifts, could be adopted for road vehicles. The company modified a used Audi A2 for use in the test.

The results were somewhat jaw-dropping. Over 7 hours, the Audi A2 was able to travel 375 miles averaging 55 miles per hour. Perhaps even more shockingly, the battery only required a 6-minute charge. At the end of the ride, the CEO of the company, Mirko Hannemann, offered to charge the batteries of reporters' cell phones with the remaining juice.

At this point skeptics might assume that these batteries were highly expensive and years away from adoption. Yet DBM claims that it can manufacture the batteries for cheaper than the lithium ion solutions being used by cars like the Nissan Leaf and Chevy Volt.

If the company eventually does achieve a breakthrough, it could change the future of electric cars. Those interested in green technology may want to hold off on a new car purchase until the range is improved, instead buying a more affordable used car for the time being. 

Honda preps electric vehicle for LA debut

By
Posted in Auto Industry News

GM and Nissan may have been the first out of the gate with their electric vehicles, the Chevy Volt and Nissan Leaf, but other automakers are planning to launch their own electric vehicles in the near future.

Honda recently announced that it will debut an electric vehicle concept car at the upcoming Los Angeles Auto Show, taking place from November 19th to November 28th. The company has publicly stated that it believes electric vehicles are a stopover technology on the way toward hydrogen-powered vehicles, but has also said it plans to put out an EV by 2012. Whether this concept will eventually become that model or if this is a separate project entirely is unknown.

The Japanese automaker will also be bringing a new gas-electric powertrain for hybrid vehicles. The system is expected to be used for larger hybrids, but Honda spokespeople were tight-lipped on details.

LA Auto Show organizers told AutoWeek that the show is currently slated to have close to 20 global first-time reveals. It will be the first time that Honda will debut a car at the show.

Drivers interested in a green vehicle may want to search the used car market for a hybrid, as they'll be able to save on the lot as well as at the pump.
 

Nissan to recall 2.14 million vehicles

By
Posted in Auto Industry News, Nissan

Japanese automaker Nissan is recalling more than 2.14 million vehicles worldwide due to an issue that could lead to engine failure and stalling.

The notice affects used Nissans, mainly SUVs, from 2003 through 2006. The 762,000 vehicles recalled in North America include Pathfinders and Xterras from '03-'06, Armadas, Titans and Infiniti Q56s from '04-'06 and Frontiers from '05-'06.

The issue centers around the electric relay, which supplies power to the engine control module when the car is started. Over time, this relay can build up a silicon vapor. If that vapor becomes oxidized, the engine can stall and fail.

Drivers who bring their vehicle in as part of the recall, the third-largest ever for Nissan, will have a new electric relay installed. The process takes about half-an-hour.

Nissan says that no accidents, injuries or fatalities have been reported due to the problem. The flaw also applies to 835,000 cars in Japan and 354,000 in Europe.

If a driver is considering buying a used Nissan or any other used car, they should ensure that the dealer has made the necessary repairs to the vehicle. 

Toyota recalling over 1 million vehicles

By
Posted in Auto Industry News, Toyota

The maintenance issues continue for Toyota, which announced today that it will recall 1.53 million vehicles worldwide. Although the company claims to be employing new safety checks and focusing on restoring the brand's reputation for reliability, the automaker has continued to issue massive recalls this year for multiple vehicles.

The latest recall includes 740,000 used cars in the U.S., and doesn't affect any of the brand's new vehicles. The models in question include Avalons made between 2005 and 2006, Toyota Highlanders and Lexus RX330s from 2004 to 2006 and Lexus GS 300s, IS 250s and IS 350s from 2006.

Toyota says that the brake fluid used during maintenance can cause a small crack in the vehicle's master cylinder, leading to a "gradual decline" in stopping power. The issue will cause the brake warning light to come on. The automaker called the recall "voluntary," but the National Highway Traffic Safety Administration has pressured automakers to issue recalls for even minor problems in recent months.

The recall also includes nearly 600,000 vehicles overseas, mainly in Europe and Japan. Those vehicles have an additional problem with the electrical wiring related to the fuel pumps, which could potentially cause an engine stall.

Toyota has recalled over 10 million vehicles in the past year. 

Automakers use new oils to boost performance

By
Posted in Auto Industry News

With the worldwide push to go green, automakers across the globe have been wracking their brains trying to discover a new way to bolster vehicle performance while also improving fuel efficiency. To this end, a number of automakers have begun utilizing new engine oil in their automobile both to add more MPG to the cars and provide better protection from engine wear.

General Motors has introduced a new oil graded as Dexos 1 that it claims will help protect an engine from damages that could potentially void a powertrain warranty, while their Detroit rivals Chrysler and Ford Motors have enacted similar plots by utilizing SN and GF-5 graded oils respectively.

"GF-5 and Dexos1 oils have a more robust formulation that should give you better contributions to fuel economy, cleanliness and fuel emissions," Mark Ferner, the manager of the lubricants technology group at Shell, told AutoWeek.

Of course, switching to new oils can also help improve the performance of used cars as well, and can be an important part of maintenance for vehicles that have spent more time on the road.

New Hyundai Equus priced at $58,000

By
Posted in Auto Industry News, Hyundai

Hyundai is typically known as a manufacturer specializing in low-priced vehicles, but it appears that the company is taking a new direction as of late as it expands into the luxury market and leaves the more affordable options to its Kia sub-brand.

A prime example of that new strategy is the recently-announced price for the company's next luxury vehicle, the 2011 Equus. The new Equus will start at $58,000, with an "Ultimate" edition priced at $64,500. That's a full $25,000 more than the company's previous luxury offering, the $33,000 Genesis.

"We're confident that smart luxury buyers will discover that Equus competes well with similar flagship products from Mercedes-Benz, BMW, Audi and Lexus," said John Krafcik, Hyundai Motor America president and CEO.

Hyundai is offering a number of bells and whistles with the car, including an Apple iPad pre-loaded with the full owners manual for all buyers. The company is also offering valet service for vehicle maintenance, meaning the dealership will send a representative to pick up the car and provide drivers with a replacement Equus or Genesis while it is being serviced. In addition, the car is backed by a 5-year, 60,000-mile warranty.

Buyers looking at luxury vehicles may want to consider the Equus, but might want to wait until the model hits the used car market and can be found at a discount.

Mercedes to recall C- and E-Class for power steering issues

By
Posted in Auto Industry News, Mercedes-Benz

Mercedes-Benz is recalling approximately 85,000 of its 2010 and 2011 C- and E-Class models in the U.S. due to an issue with power steering fluid.

According to an update on the National Highway Traffic Safety Administration's website, the recall affects newer models of the vehicles, specifically from 2010 and 2011. The E-Class coupe and cabriolet are also included.

Mercedes says that a loss of power steering fluid could make the vehicles difficult to control in a situation where maximum steering assist is required, such as maneuvering a parking lot. The automaker will make a minor adjustment that should fix the problem for owners.

According to USA Today, a number of vehicles have had issues with power steering lately. BMW ordered recalls of its Z4 and Mini Cooper, GM struggled with steering on its Cobalt and Pontiac G5, Toyota had trouble with the Corolla and most recently, Hyundai has recalled its new Sonata.

The news source speculated that the switch from mechanical power steering to electronic power steering (EPS) may be a factor in the issues. EPS offers a slight advantage in fuel efficiency, making it a popular choice for newer vehicles.

Analyst Jesse Toprak of TrueCar told the news provider that "we have an overwhelming number of steering cases this year." The NHTSA has reported an uptick in EPS-related problems, but it's unclear if the flaw is with the systems or because they are simply more common.

Drivers may wish to avoid newer models with the issue and stick to used cars until the trouble is sorted out. 

Paris’ next used cars

By
Posted in Auto Industry News, Ford

The Paris Auto Show is officially over, and automotive journalists are debating over which automakers had the strongest showings and most interesting designs. While these cars aren't slated to hit the market for a few years, their introduction will likely affect the price of the cars they're set to replace in the near future.

As a new model comes in, the old one is shipped out, and a gap in a generation can affect a used car price substantially. For example, the Ford Mustang, which was popular for much of this decade, will now fetch a lower price on the used car market since Ford has introduced a brand-new redesign for the vehicle. While the new models that the major automakers unveiled are sure to delight car fans, it's important to keep in mind that the best value can usually be found by shopping one generation earlier.

The unofficial theme of this year's show was small, eco-friendly vehicles as demonstrated by the debut of high-profile compact models from several major brands. Ford's redesigned 2012 Focus turned some heads, as the company announced its marketing strategy would take a page out of the book of the highly-successful Fiesta, which launched earlier this year. That means buyers can expect plenty of trim levels and customization options, in addition to a hatchback style and great fuel economy. The new debut could also mean some low prices on existing Focuses, so used car buyers should keep their eyes peeled for any deals.

Chevy responded with a similar small car in the upcoming 2012 Aveo. This compact will be available in both sedan or hatchback forms, and the press speculates that the high-performance RS version, previously seen as a concept, will make its debut shortly after the regular model. Drivers can expect plenty of creature comforts like a high-end audio system with Bluetooth and MP3 integration, but buyers should keep in mind that Chevy currently sells an Aveo, meaning they might be able to get many of those features for a cheaper price now.

Finally, what would an auto show be without concept cars? Although not officially slated for production, Nissan unveiled a high-tech concept in its Townpod concept. This vehicle continues the small car trend by being based off of Nissan's Leaf platform, but takes it to the next level with a sleek design and futuristic interior featuring a dual display touchscreen. 

BMW, Mercedes plan smaller offerings

By
Posted in Auto Industry News, BMW

The trend in the automobile industry as of late has been toward smaller cars, with crossovers replacing the full-size SUV and hatchbacks like the Ford Fiesta selling like hotcakes. Now, two luxury manufacturers are getting in on the game by announcing plans to introduce several vehicles that will be smaller than any of their current offerings.

BMW is planning to introduce a new family of subcompacts that will feature front-wheel drive. BMW director of sales and marketing Ian Robertson told the Automotive News that there will be several variants, but all will feature a four-cylinder engine. Early plans indicate that the new class will be dubbed "UKL."

"It will be a relatively big segment because we have several body styles," he told the news source.

Meanwhile, BMW's chief competitor Mercedes-Benz is also looking to expand into that market. The company will introduce a number of new designs based on its B-Class platform, including a coupe and compact SUV. However, the company's new European hatchback, based on its smaller A-Class platform, will not reach U.S. shores.

As smaller cars begin to dominate the showrooms, fans of larger vehicles can likely find deals on the used car market.