Category Archives: Auto Industry News

General Motors upgrades 5 factories to meet car demand

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Posted in Auto Industry News, Buick- DO NOT USE, Chevrolet, GMC - DO NOT USE

General Motors will spend $890 million to upgrade five of its engine and component plants to keep up with demand for the company’s most popular vehicles, including its four core brands Chevrolet, Cadillac, Buick and GMC.

About $400 million will be spent to revamp GM’s powertrain factory in Tonawanda, New York, and $235 million will be spent on the company’s St. Catharines, Ontario plant. The rest will go to engine casting and component production at factories in Defiance, Ohio; Bedford, Indiana; and Bay City, Michigan, the New York Times reports.

The new investment comes less than week after the Detroit-based company repaid a $6.7 billion U.S. loan and announced a $257 million upgrade of its assembly plants in Kansas and Michigan for the next-generation Chevrolet Malibu sedan.

GM aims to build more fuel-efficient engines in response to consumer demand and future federal mileage requirements. Its North American assembly plants work on 24-hour schedules because of spikes in sales after it emerged from bankruptcy using government bailout money. GM’s sales were up 17% though March this year compared to 2009.

Subaru expands Indiana assembly plant by 40%

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Posted in Auto Industry News, Subaru - DO NOT USE

Subaru will increase its production capacity by 40 percent in its Lafayette, Indiana, assembly plant to meet the growing demand for the newly redesigned Legacy sedan and Outback wagon.

First quarter sales of the two cars in the U.S. more than doubled from last year, with the Outback reaching 19,275 and the Legacy hitting 8,550 sales, the Automotive News has reported.

Fuji Heavy Industries, maker of the Subaru brand, said it plans to produce 140,000 vehicles in the Indiana plant, which currently churns out 100,000 cars a year.

Representatives did not say how the plant will meet the new demand, but Automotive News implied it may draw from capacity currently being used to manufacture Toyota vehicles. The plant has a separate line with a capacity of 100,000 units for the Toyota Camry.

In 2009, Subaru sold about 217,000 vehicles, and the boost in production should increase this year’s figure to at least 230,000, the news provider added.

Nissan signs deal with GE to study smart-charging technologies

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Posted in Auto Industry News, Nissan

Fueled by the increasing demand for plug-in hybrid and electric cars in the past three years, Japanese automaker Nissan and General Electric have signed a deal to make smart charging technologies a reality.

The collaboration will explore ways to integrate hybrid and electric vehicles with homes and buildings, and will later brainstorm on how these new breed of cars can affect the larger electric grid, the two companies said in a news release.

Nissan, which last week began taking orders for the all-electric Leaf sedan, said the deal is part of its vision is to realize “zero-emission mobility through a holistic approach by by working with various partners in a broad range of industries.”

A blog post by GE scientist Matt Nielsen discussed some challenges in the integration of plug-in vehicles to homes and buildings, including the need to equip homes with the appropriate wiring for car charging and low-cost metering plans from utilities. The research will be conducted at GE’s global research operations in Niskayuna, New York.

According to the New York Times, about 98 percent of the vehicles sold in the U.S. in 2009 were powered by conventional gasoline engines. But many expect this trend to change in the next few years as automakers fill their pipeline with hybrid and electric cars and motorists become more aware of environment-friendly alternatives.

Good time to refinance an auto loan

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Posted in Auto Industry News, Auto Loans & Financing News

An online aggregator of financial rate information has reported that many of this year’s auto loan refinance rates are 1 percent to 2 percent lower than they were in April of last year, depending on the length of the refinance loan.

“Refinancing an auto loan may be a good option if you need to reduce your monthly expenses in order to get your finances back on track,” said Tara Baukus Mello, an analyst at Bankrate.com.

While it is ideal not to extend the length of any loan, job loss or other similar situations could urge people to consider refinancing their loans to ease some financial burden, according to the news provider.

For example, a car purchased in April 2008 for $28,000 and financed for five years at 6.53 percent (the national average at the time) requires a monthly payment of about $550. This means the owner currently owes the bank a little less than $18,000.

Refinancing the remaining amount for four years, at the national average rate of 5.38 percent, would drop monthly dues by $133 and the owner would spend just $176 more in interest over the life of the loan, Mello said.

According to a Businessweek report, refinancing an auto loan might be a very good idea in the near future because interest rates remain at historically low levels. “Whether you have a used car loan or a bad credit personal loan, you could probably get the interest rate lowered if you go through a refinance process in the near future,” the report said.

Toyota Prius declared greenest car of the year

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Posted in Auto Industry News, Toyota

With its topnotch fuel efficiency, solar-powered ventilation system and various high tech features, Toyota‘s 50-mile-per-gallon Prius topped this year’s list of 10 greenest cars.

According to the Kelly Blue Book, the Prius remains the most fuel-efficient car in its class of hybrids, boasting 51 mpg city and 48 mpg highway. Aside from its hybrid powertrain technology, Prius was praised for its glass moonroof with a solar-powered ventilation system, voice-activated navigation and Dynamic Radar Cruise Control with Lane Keep Assist.

“To be considered for the green Top Ten, each vehicle was required to offer fuel economy and carbon dioxide emissions superior to the bulk of vehicles in its class and at the same time provide all the safety, creature comforts and driving enjoyment that would make it pleasant to own,” Kelley Blue Book said in its website.

This year’s list was largely dominated by last year’s collection, but also included two newcomers — the Volkswagen Golf TDI, one of the newest “clean diesels,” and the Chevrolet Tahoe Hybrid, which demonstrates SUV-like features that can co-exist with a hybrid powertrain.

Rounding up the top five are Honda Insight Hybrid (41 mpg), Ford Fusion Hybrid (39 mpg), Volkswagen Golf TDI (34 mpg) and MINI Cooper (32 mpg). Ranked sixth to tenth are the Ford Escape Hybrid (32 mpg), Honda Fit (31 mpg), BMW 335d (27 mpg), Toyota Highlander Hybrid (22 mpg) and Chevrolet Tahoe Hybrid (22 mpg).

The New York Times reported that Toyota will introduce a third-generation Prius in May in line with Toyota’s plan to sell a million hybrid cars in the next few years, from about 250,000 hybrids in 2008.

Survey: American cars are better than Asian, German makes

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Posted in Auto Industry News, General Auto News

More Americans believe that domestic cars are superior to their Asian and German counterparts, a survey conducted by the Associated Press and GfK Roper Public Affairs & Media showed.

Thirty-eight percent of more than a thousand respondents said they think American cars are the best-made vehicles in the world. About one-third chose Asian-made cars, while 15 percent believed German automakers offer top quality vehicles, according to the survey.

Businessweek’s “The Auto Beat” blog said that the result could boost sales of American car makers Ford, General Motors and Chrysler. “All three can capitalize on this newfound respect if they continue to build better models and if, a big if in GM’s case, they can market the cars well,” it said.

The Kelly Blue Book reported that the new figures are “pronounced variations” from earlier polls made well before Toyota‘s recall issues. In 2006, for instance, the AP-AOL poll showed that 46 percent of Americans felt Asian countries had the best in quality with just 29 percent and 17 percent for U.S. and German cars, respectively.

Shell partners with Penske for 2011 racing season

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Posted in Auto Industry News, Celebrity Auto News, Dodge - DO NOT USE

Shell Oil Company and Penske Corporation have announced a business alliance to increase their motor sports presence in the 2011 racing season, extending sponsorhsip to former champion Kurt Busch, who has driven the No. 2 Miller Lite Dodge since 2006.

As a result, rival company ExxonMobil fired back by announcing that it is also cutting ties with Penske after this season. Its withdrawal means Penske has to look for a new sponsor for Sam Hornish Jr., driver of the No. 77 Mobil 1 Dodge.

“It has been a long and successful relationship, and we wish the Penske team continued success on the track,” the ExxonMobil said in a statement as reported by the Associated Press.

Penske’s deal with Shell will make Pennzoil the primary sponsor for Busch, who will move to the No. 22 Dodge, according to the news provider.

In a new release, Penske said that Pennzoil will become the “official motor oil” of its racing season next year, including all of its entries in the NASCAR Sprint Cup, the Nationwide Series and the IZOD IndyCar Series.

Penske first partnered with Pennzoil in 1983 as part of its IndyCar teams. The partnership won the 1984 and 1988 Indianapolis 500 Mile Races. Busch also drove a Pennzoil-supported car for another team when it won the NASCAR Sprint Cup Series Championship in 2004.

Ford unveils software to liven up driving

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Posted in Auto Brands News, Auto Industry News, Ford

The U.S. car maker Ford has released a new software called SYNC AppLink, which will make possible hands-free control of certain technologies via Android and Blackberry smart phone applications.

While the software will launch on the 2011 USA Fiesta, Ford said that the software will be made available to older Ford models that run its in-car connectivity system called SYNC. Ford also plans to create a developer community to encourage the development of apps for Ford cars.

Ford said the AppLink will allow drivers and passengers to control some of the most popular apps through SYNC’s voice commands and steering wheel buttons while keeping their hands on the wheel and eyes on the road. Some of the apps that motorists will be able to control include the online radio provider Pandora and the micro-blogging site Twitter.

“The growth in smart phone mobile apps has been explosive, and Ford has worked hard to respond at the speed of the consumer electronics market,” Doug VanDagens, director of Ford’s Connected Services Organization, said in a news release.

Studies have shown that the mobile app development, which was a niche market just three years ago, will grow into a $4 billion industry by 2012. Mobile devices will become the No. 1 source for Internet access by 2015, surpassing the home computer.

Used Toyota resale values on the rise

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Posted in Auto Industry News, Toyota

Resale values of Toyota vehicles are gaining slowly after a boost in sales, as reported by the Japanese automaker earlier this month.

Consumers who currently own a Toyota have gained back “at least some of the resale value” they lost at the peak of the safety recall in February, Bankrate.com reports.

The automotive websites Edmunds.com and Kelly Blue Book have shown an uptick in resale values of used Toyota cars, in sharp contrast to their forecasts two months ago that prices would drop by as much as 10 percent.

“Values for three-year-old Toyotas are improving, though at a slower rate than the current industry average,” the news provider reported, citing Kelley Blue Book’s analysis.

Edmunds.com senior analyst Joe Spina also said that prices of used Toyota cars are “almost back to their pre-recall levels,” noting that a full rebound will not come until late summer.

Toyota has recalled more than 8 million vehicles due to safety concerns, but its March sales increased 41 percent compared with those in the month a year earlier. The rebound has largely been fuelled by subsidized leases and interest-free financing.

Cadillac offers more color options for car buyers

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Posted in Auto Industry News, Cadillac - DO NOT USE

Summer is just around the corner and it could be the perfect time of the year for people to revamp their car’s look. A California-based company has recently launched a new line of pigment specially made for Cadillacs.

JDSU, which provides color solutions for a wide range of industries including the automotive sector, has launched the “From a Different View” campaign to highlight the role of colors in brand differentiation and personal style.

Designers from Cadillac said colors impact the car-buying process as customers want colors to match their personality. Cadillac uses JDSU’s pigments, which add depth to cars by changing color when viewed from different angles.

“We have been collaborating with JDSU for nine years and in that time have created six special car colors for our Cadillac vehicles,” Chris Webb, senior creative designer at Cadillac, said in a news release. Cadillac owners have options to repaint their cars with JDSU’s chrome, tuscan bronze and thunder gray colors.

Scientists have long examined the psychology of colors. Numerous studies have pointed out the meanings each color evokes, and advertising companies have used them to come up with catchy color themes for their campaigns. So for car owners who want to change their personal branding, a new car color can usher in the change.