Category Archives: Auto Industry News

Mustang helps Ford post sales increase

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Posted in Auto Industry News, Ford

Strong sales of Ford‘s mustang and other models have helped the automaker post a rise in July sales as compared to 2009.

Ford is reporting a 3.1 percent rise in auto sales for the month of July. Ford’s main brand was up 8.1 percent while its luxury Lincoln line bounced back 16.3 percent. The company’s Volvo brand, which it recently sold to China’s Geely, was down 33 percent. The soon-to-be phased out Mercury brand dragged the numbers down with a 31 percent loss. Overall, Ford has proven to be one of the brands heading in the right direction as the recession recedes, with an increase of 24 percent total as compared to the first seven months of 2009.

Though the automaker struggled through 2009, July’s numbers were slightly inflated by the government’s Cash for Clunkers program.

Ford’s new Mustang, introduced this year, posted a 12 percent increase in sales. In addition, its redesigned Taurus doubled sales over the model’s previous iteration.

One of the reasons to buy a used Ford Mustang is that the car may end up appreciating if drivers keep it in good condition. There are a slew of auto enthusiasts who specifically value Mustangs, so investing in one is never a bad purchase.

Year-end clearouts driving auto sales

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Posted in Auto Industry News

As dealers begin to ship out the 2010 models in order to make way for the redesigned 2011 ones, many buyers are taking advantage of the cheap cars for sale and driving up auto deliveries, according to a new report.

Analysts surveyed by Bloomberg believe that July will be the best month for auto sales since August of 2009, when the Cash For Clunkers program heavily contributed to a spike in new and used car sales. On average, those polled predicted 11.9 million deliveries for the month of July, a 5.3 increase over the previous year. Full results are expected to be announced this week.

And according to TrueCar.com, the industry is helping by offering its largest discounts in years. This year’s closeout prices are 3.8 percent cheaper than 2009, meaning it’s a great time to buy a car.

Cars like the new 2011 Ford Explorer are expected to make the 2010 models fly off the lots. Many of these models then make their way into the hands of used car dealers, where they can be found for even cheaper than the new car prices, even at a discount.

Honda reports record profit

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Posted in Auto Industry News, Honda - DO NOT USE

Honda is reporting that it recorded a record-setting $3.2 billion in profits for the second quarter of 2010, causing it to raise its financial outlook for the entire year.

The $3.2 billion net income was 36 times greater than 2009’s total of $86 million in profit. In general, Honda is in good shape, posting 5 quarters in a row of growth. The automaker’s continued success has caused it to revise its total outlook for the 2010 financial year to $5.2 billion, eclipsing the predicted value of $4.6 billion posited by an average of analysts surveyed by Reuters.

While all auto companies struggled during the recession, Honda was able to avoid losses, largely because its fleet of smaller vehicles continued to perform well. The company is currently the second-largest Japanese automaker, still trailing its beleaguered rival Toyota and neck-and-neck with third-place Nissan.

As the country comes out of the economic recovery, carmakers are beginning to increase prices again. Drivers who are considering a purchase may want to opt for a used Honda over a new one in order to save some green.

Market possibly shifting toward SUVs again

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Posted in Auto Industry News, General Auto News

New data is suggesting that the SUV might not be as dead as many think, as the segment’s growth outpaced that of smaller cars for the first half of 2010.

According to trends analyzed by Autodata and reported by USA Today, SUV sales actually increased at a faster rate than that of more compact and fuel-efficient compact cars. The data shows that SUV sales grew at a rate of 19 percent as compared to the auto industry’s overall rate of 17 percent and compact cars’ 14 percent growth.

While compact cars still outsold SUVs by a tidy margin – 974,000 to 121,000 – the data indicates that many may be ready to get back into an SUV.

The news source pointed to several potential reasons for the possible shift, citing a recovering economy, lowered fuel prices and the addition of fuel-efficient crossovers to the SUV fleet.

SUV fans may be able to find deals on classic SUV models, like used Ford Explorers, by visiting their local auto auction, as many have opted to trade the vehicles in in favor of crossovers.

Revised crash safety standards to be tougher on vehicles

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Posted in Auto Industry News

The National Highway Traffic Safety Administration has announced that it will begin testing vehicles in September using more stringent safety requirements, quite possibly leading many 5-star rated vehicles to drop in acclaim.

The new tests and restrictions, which have been planned for a number of years, are designed to streamline the safety rating process. Rather than different star ratings for different tests, vehicles will now be assigned one rating on a five star scale. When the measures were initially announced a few years ago, the NHTSA said that many five and four star vehicles may actually drop to 2 stars, thanks to the more accurate and harsher system.

“This new testing program significantly raises the safety bar for all vehicle manufacturers,” said Transportation Secretary Ray LaHood.

The group hopes that the new requirements will encourage automakers to make safer vehicles. The NHTSA has ordered numerous recalls lately for seemingly minor issues, after being given new authority and oversight in the wake of the Toyota unintended acceleration scandal.

Those who plan on buying a used car should always have the car checked out by a mechanic to ensure that it is up to safety standards.

Enterprise to obtain fleet of rental Leafs

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Posted in Auto Industry News, Nissan

Enterprise and Nissan have struck a deal that will see the Japanese automaker sell 500 of its upcoming Leaf electric vehicle to the rental car company.

According to the Associated Press, Enterprise will initially make the car available to drivers in eight cities: Seattle, Los Angeles, San Diego, Phoenix, Tucson, Knoxville, Nashville and Portland. The car will be available for rent in January, but Enterprise will begin installing charging stations in November.

The Leaf is one of the first electric vehicles to be mass produced. Nissan says that the vehicle will get 100 miles on a full charge of its electric motor. However, the car requires more charging after 100 miles, meaning that drivers could be stranded if they don’t plan carefully. Still, the car should be perfect as an emissions-free rental for those simply driving around a city while on a business trip or vacation.

Enterprise has not yet announced the cost to rent a leaf. The company currently charges a premium for customers who wish to rent a hybrid.

Rental cars are one way in which vehicles eventually find their way to the used car market. Often, these rental cars are kept in top shape and given dealer certification. Buyers interested in purchasing a Leaf may want to wait until the used Nissans begin finding their ways to dealerships and auto auctions.

Toyota pulling used Avalons off the road

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Posted in Auto Industry News, Toyota

Toyota has announced that it will recall 373,000 used Toyota Avalons off the road, citing a problem with the steering system.

The Japanese automaker says that a component in Avalons sold from 2000-2004 can crack when the vehicle is turned hard to the right. This piece can then become lodged and cause the wheel to lock up, increasing the risk of a crash, according to the Los Angeles Times. The problem has resulted in six incidents that have caused three crashes in the U.S., none of which injured drivers or passengers.

The company will also recall its 2003-2007 Lexus LX 470 SUVs for a steering problem unrelated to that of the Avalons. These recalls bring the total number of vehicles recalled by the company in the last year to 9 million. After the major debacle with unintended acceleration, some automotive analysts believe the Japanese automaker is playing it safe.

“If one of their vehicles so much as hiccups or coughs, they now do a big recall,” Rebecca Lindland of IHS Automotive told the news source, “and it is very expensive.”

Those who own used Toyota Avalons will be able to take the car to the dealer to get a fix, which the company estimates will take about two hours.

Mercedes set to surpass Lexus as America’s favorite luxury vehicle

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Posted in Auto Industry News, BMW, Lexus - DO NOT USE, Mercedes-Benz

Although Lexus, the luxury division of Japanese automaker Toyota, has enjoyed ten years of domination in the U.S. luxury market, a wave of recalls and an increase in quality from Mercedes-Benz means there may be a new king of the luxury market by the end of the year.

Bloomberg reports that Lexus may lose its crown when all is said and done in 2010, as the continued bad press from the recalls by Lexus and Toyota have dissuaded discerning drivers from making purchases with Lexus. Instead, drivers are turning to German luxury automakers like Mercedes, BMW and Audi, for their luxury car needs.

Mercedes very nearly took the title of top seller during the first half of 2010, shipping less than 500 vehicles fewer than its Japanese rival. While the luxury industry in general is booming after the recession depressed 2009, Lexus’ recovery has been marred by quality concerns. The Japanese automaker posted a 19 percent increase in U.S. deliveries during the first half, but Mercedes grew 25 percent to close the gap.

According to Edmunds, Lexus’ 2.1 percent market share may fall to 1.98 percent by the end of the year, which would be enough to allow both Mercedes-Benz and BMW to surpass the brand as America’s favorite luxury vehicles.

Those shopping on a budget don’t need to price themselves out of a luxury vehicle. By shopping for used cars, driver can easily get a used Mercedes or BMW for a fraction of their sticker price.

http://www.bloomberg.com/news/2010-07-22/lexus-recalls-risk-ceding-brand-s-decade-long-u-s-dominance-to-mercedes.html

Ford undertakes social media blitz to launch Explorer

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Posted in Auto Industry News, Ford

Ford‘s redesign of its popular Explorer SUV model bucks the usual trend in a number of ways. For starters, the automaker has redesigned the vehicle to provide an emphasis on fuel economy and practicality rather than off-roading and towing capabilities. But the other reason the new Explorer is turning heads is its unorthodox marketing campaign.

Rather than unveil the new car at an auto show, Ford has instead decided to harness the power of the internet in order to coordinate a massive campaign across social media. The automaker has hosted live chats and videos across its YouTube, Facebook and Twitter pages for a number of days to drum up excitement for the new vehicle, according to the Detroit Free Press.

It all culminated with live events in nine cities, where the new model was unveiled in a variety of ways. In Oshkosh, Wisconsin, it was flown in by helicopter. In Chicago, it burst through a faux-wood wall.

“It was a very unorthodox and unusual launch,” Rebecca Lindland, automotive analyst for IHS Automotive, told the news source. “We are going to see this more and more because of the impact of social media.”

The Explorer is a classic model, and was the best-selling midsize SUV in America between 1995-2004, according to the news source. That figure means that there will be plenty of used Ford Explorers in a variety of options available on the used car market, should car buyers have nostalgia for the previous designs.

http://www.freep.com/article/20100727/BUSINESS01/7270323/2011-Explorer-to-keep-Ford-on-track

Battle of the electric cars

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Posted in Auto Industry News, Chevrolet, Nissan

Both GM and Nissan have plans to introduce electric cars by the end of the year, but its unclear which approach car buyers will ultimately favor.

While the Chevy Volt and Nissan Leaf are usually mentioned in the same breath, both cars actually have radically different philosophies when it comes to driving.

The Volt is an electric hybrid, with both a 40-mile range electric motor and traditional gas engine. After the motor’s 40 mile limit has been reached, the gas engine kicks in, ensuring that drivers can continue as long as they have gas.

The Leaf, on the other hand, can actually claim to be a purely electric vehicle, and one of the first to be mass marketed. It’s also about $7,000 cheaper than the Volt and offers the attractive possibility of never touching a gas pump again. In addition, its battery pack squeezes out 100 miles of power when fully charged. However, once the charge is gone, that’s it – it needs to be plugged in before it can go again – and charging takes much longer than filling a tank of gas, essentially meaning drivers will be stranded after 100 miles with no charge.

So how should car buyers decide? The best way might be to wait until both cars hit the used car market. By then, consumers will know all the pros and cons and will be able to purchase a used Nissan Leaf or Chevy Volt at a reduced price.