Category Archives: Auto Industry News

DOT unveils tougher safety system

The Department of Transportation has unveiled a stricter safety testing system that will lower the amount of stars received for some popular vehicles.

The new system is said to be a lot tougher on vehicles and highlight a greater disparity between the models. Many vehicles in the past were easily able to achieve five and four stars under the old system.

Chief among the changes is a new overall score that weighs various factors into one number. While the test still differentiates for front and side-impact rating, it also takes into account some new features. Dummies representing the average size of women will now be incorporated, as will a test where the vehicle strikes a tall object like a pole or a tree.

"We are raising the bar on safety," said Transportation Secretary Ray LaHood.

In an initial analysis of some new models, some vehicles came out looking better than ever. The BMW 5 Series and Hyundai Sonata were the only two vehicles who got a five-star rating in the first batch of 34 vehicles. The Toyota Camry, a previous five-star winner, was rerated down to a three-star car, while the Nissan Versa, previously at four stars, walked away with just two.

Travelers should consider safety features when searching for a car, but they can still get a great value by searching for some of the safer vehicles on the used car market. 

Ford posts big gains in September

Monthly sales totals are rolling in, and the big news is at Ford, where the company posted a whopping 46.3 percent sales increase over September 2009.

Nearly all models posted upticks in sales, but the Focus and Fusion both performed above average. Ford also posted an unexpected 61 percent spike in the SUV department and said its new Transit Connect van, mainly bought by businesses, has been a hot seller.

"The key to our success in the U.S. market is the relentless cadence of new vehicle, powertrain and technology introductions," said Ken Czubay, VP of marketing, sales and service for the company.

Automakers are expected to post big numbers in September because of the aftereffects of the "Cash for Clunkers" program in 2009. While the government-sponsored initiative boosted numbers for August of 2009, it hurt sales in September because many automakers didn't have the supply left to meet demand.

Despite this, Ford has still posted the biggest increase so far out of the major auto brands.

Drivers on the market for a vehicle may want to search for a late-model used Ford, as the company has produced a major turnaround in recent months 

Chevy looking to global market

With four new models set to debut at the Paris Auto Show, only one of which is headed to the U.S., Chevy is looking to increase its presence worldwide rather than simply focus on the American market.

Chevy will pull the lid off several new models in Paris: the Orlando minivan, Captiva small SUV, Cruze hatchback and Aveo compact sedan. Of these, only the Aveo is expected to make its way to the states.

The current Aveo is a popular budget vehicle that is available as both a hatchback and sedan. While the new Aveo will continue that trend, it offers a sportier powertrain designed to compete against recent compact "hot hatches" like the Ford Fiesta.

The car is representative of a general shift in the auto industry toward producing smaller vehicles that will be profitable around the world. While small cars were previously only favored in Europe, the recession has meant that many Americans are going smaller in an effort to increase fuel economy.

The debut of new models means older Chevys will likely make their way to the used car market. Patient drivers can often get great deals on cars as compared to the prices from just months earlier. Drivers can likely find a used Chevy Aveo for less than $8,000, a number that could drop even further when the new model makes its official debut later this year. 

BMW to recall vehicles for brakes issue

German automaker BMW is recalling nearly 200,000 new and used cars due to an issue with the braking system that could cause leakage.

The automaker said that over time, a leak could develop in the power braking system that would reduce the effectiveness of it. Mechanical braking would still be possible.

The models range from 2002 to 2010 and all of the cars feature V8 or V12 engines. The models include the Alpina B7 from 07-08, the 745i/Li, 750i/Li and 760 i/Li from 02-08, the 645i and 650i from 04-10 and the 545i and 550i from 04-10.

The BMW-owned Rolls Royce Phantom from 2003 onwards is the final car being recalled. This $400,000 automobile is notable for its inclusion as luxury cars of this caliber usually aren't involved in recalls. The new Rolls Royce Ghost, however, is unaffected by the problem.

BMW will notify owners in the coming weeks and ask them to take the car into the dealer, where technicians will install a replacement part.

Drivers in the market for a used BMW should keep an eye out for these vehicles and get an assurance from their dealer that the fix has been taken care of before moving ahead with the purchase.
 

Ford Fiesta approaches 1 million sales

Ford has announced that its Fiesta model, which debuted this year, is already approaching the 1 million vehicle sales mark worldwide, far exceeding the company's expectations.

The company revealed that response to the new car has been strong in every market where it is sold, including China, Europe, Thailand, Australia, South Africa and the U.S. The company also said that many drivers were choosing to purchase higher trim levels and packages rather than simply sticking with the base model.

"We worked together to design and build a great small car for the world – with leading quality, safety, fuel economy, smart design and value – and nearly a million customers have responded," said Ford CEO Alan Mulally.

The success is a ringing endorsement for Ford's new global B-platform, which it says will hopefully be on 1.6 million vehicles sold in 2014. The company says it will take what it learned from the Fiesta's launch and apply it to the upcoming Ford Focus, which will run on its new C-platform.

Drivers may want to wait for the Fiesta to hit the used car market, where they'll be able to find it for much less than its current new price.
 

New Camaro convertible to be priced at $30,000

Chevy has yet to officially debut its upcoming Camaro convertible, but has already announced that the vehicle will retail for around $30,000 – about $2,000 more than its chief rival, the Mustang.

The Camaro and Mustang have a rivalry that goes back decades, but it's been renewed in recent years. When Chevy revived the Camaro in 2009, it began to trounce the Mustang in sales figures. That extended into 2010 until Ford introduced the new 2011 Mustang with an engine that produces comparable power and better fuel economy at a cheaper price. Although the Camaro still leads sales totals for the year by a slim margin, the Mustang has won in recent months thanks to the new vehicle.

The Mustang already has a convertible option available that is priced close to $28,000 new. The Camaro's early price point suggests that Chevy thinks the Camaro can continue to compete with the Mustang even at a higher price.

Once the Camaro convertible hits the market, other Camaros might take a small hit in value. If drivers desire a pony car, they may want to search the used car market to find a deal on the Camaro or Mustang.  

Nissan plans massive shakeup

Over the next few months, Japanese automaker Nissan plans to introduce several big changes to its lineup of vehicles. As older models are replaced by new ones, drivers can expect previous vehicles to hit the used car lot at a discount.

Nissan's new ad campaign promises "innovation for all," and the company is putting its money where its mouth is by unveiling several brand-new or redesigned models before the end of the year.

The most visible of these will obviously be the highly-anticipated Leaf, which will be one of the first all-electric vehicles to go into mass production. The Leaf will be available in several markets in December before slowly rolling out nationwide in 2011. Demand is already high for the vehicle with the company already surpassing its sales totals. It's due to go head to head with the Chevy Volt, but the Leaf holds a key advantage (or possibly a disadvantage) over the Volt in that it only contains an electric motor compared to the Volt's electric-gas hybrid engine.

Another model sure to turn heads is the new Murano CrossCabriolet, which the company is touting as the first convertible crossover. Early impressions have been polarizing, with some loving the bold choice to offer a convertible on an SUV-like vehicle and others liking the idea less. Nissan itself has admitted that it doesn't expect the car to sell well compared to the regular Murano, but hopes that the design will call attention to its new marketing strategy as an innovator.

The brand-new Juke crossover is another new car that may benefit from Nissan's aggressive styling. Unlike other cars in the compact crossover class, the Juke achieves a coupe-like design by using sharp angles to immediately catch the eye. The vehicle is powered by a newly-designed 1.6-liter direct-injection turbo engine that produces 188 horsepower and 177 lb-ft of torque.

The last new model is the redesigned Quest minivan, and while this design won't turn heads like the new Murano or Juke, it got the attention of some insiders simply for being a minivan. As other automakers move away from this segment and parents move toward crossovers and SUVs, Nissan is banking on the dwindling minivan market to fall in love with the redesigned Quest. Previous versions of the van weren't as popular as competitors' models, so Nissan is hoping the new model will lure buyers back.

With so many new models set to debut before the end of the year and even more slated for 2011, buyers who are in the market for a car may want to hold off and wait for a used Nissan, as many of the older models will likely be able to be found at a discount compared to their current price.

Hyundai to recall 2011 Sonata over steering issue

Hyundai is set to recall 139,500 of its new 2011 Sonatas after the National Highway Traffic Safety Administration (NHTSA) found a flaw in the steering system.

The regulatory body found that the wheel could, in some cases, detach from the steering column – not a small issue. Should it do so, the driver could lose control of the vehicle completely.

Hyundai has had eight reports of steering failures, but none led to any accidents or injuries. The NHTSA began investigating the issue in August. The recall will affect all vehicles built between December of 2009 and September of 2010, which is the majority of the 2011 Sonatas currently on the road.

The newly redesigned Sonata has received some strong reviews, but this latest news could put a stumbling block in the way of Hyundai's recent momentum, as it has gained on sales leaders like Toyota and Honda over the past few months. The car has been a hit for the company lately, nearly doubling its sales in August to 21,399, according to the Associated Press.

Drivers looking at the Sonata may want to go with a used Hyundai for the time being, as the vehicles are not known to have the problem. Or, they may want to wait until the 2011 model hits the used market, where it may be available for a reduced price due to the negative publicity associated with such a recall. 

Nissan reveals luxury EV

Nissan will already have a good lead in the electric vehicle (EV) market if its upcoming car, the Leaf, lives up to expectations. But now the company has revealed its plans for an Infiniti luxury model using EV technology in the form of a new sketch that has been released online.

Although the new Infiniti does not yet have a name, Nissan has already settled on the design of the vehicle, which isn't slated to hit dealerships until 2013. The sketch shows a coupe design with an elongated front end and wide, sloped windows, giving the car a sleek and futuristic look.

"This future EV will play a major part of Infiniti's 'eco performance' strategy that will see a greater focus on hybrid and EV technology," said Infiniti Vice President Ben Poore. "We are committed to applying the world's best technologies to reduce emissions without sacrificing driving excitement or engagement."

The car will seat five and is expected to include zero emissions technology similar to the Leaf.

Infiniti will also reveal the 2012 M35h, an upcoming gas-electric hybrid, at the upcoming Los Angeles Auto Show. The gas engine will produce 302 horsepower, although drivers can opt to run solely on electric energy at speeds of up to 50 miles per hour.
 

Used car chain CarMax sees profits rise

CarMax, which operates more than 100 used car dealerships across the country, has announced that its second quarter saw a five percent rise in profits.

The company's overall revenue jumped 13 percent on the back of an 11 percent increase in used car sales. Overall, revenue rose to $2.34 billion dollars, which beat many analyst's expectations, according to Reuters. The company revealed that the positive results were a quarterly record.

While manufacturers like Toyota and Ford saw second quarter numbers slip a bit compared to the clunker-inflated sales of the same period in 2009, CarMax was able to post a profit, suggesting that more Americans may be considering used cars over new ones.

"We are especially pleased with the strength of our comparable store used unit sales where, despite our toughest comparison in recent quarters, we still delivered positive comps," CEO Tom Folliard told investors.

As more consumers look to buy used cars, drivers considering an upgrade may wish to do the same, so as not to miss out on some of the great deals being offered.