Category Archives: Auto Industry News

Car-friendly apps from iPhone and Blackberry makers

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Posted in Auto Industry News, General Auto News

Mobile device makers Apple and Research in Motion are gearing up with new software updates to make their smartphones more driver-friendly.

Apple announced last week that its new OS 4, which will be released this summer, will allow iPhone models to run multiple applications while RIM forged a deal with QNX Software Systems.

According to the The New York Times’ blog “Wheels,” Apple’s update includes a feature called “iPod Out,” which will allow developers to integrate iPhone apps with car stereo and navigation systems. This means, drivers can simultaneously listen to music while using their iPhone’s GPS system.

For RIM, maker of the popular Blackberry phones, the deal with QNX may lead to various innovations. QNX develops software for the infotainment and telematics systems of more than 200 different car models, and RIM will surely benefit from QNX’s deep automotive knowledge. A Blackberry phone that doubles as a remote starter or remote lock is not a far-fetched idea with this new partnership.

While the two companies have loyal customer bases eager to try their new offerings, it remains to be seen whether car manufacturers will buy the idea.

Report: Economy improving, unemployment numbers falling

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Posted in Auto Industry News, Auto Loans & Financing News, General Auto News

The economy took another step in the right direction on Thursday, with the U.S. Labor Department reporting that the number of people applying for unemployment benefits fell by 5,000, to a seasonally adjusted 457,000 in the week ending March 13, according to Market Watch. The news coming out of Washington marks the third consecutive week that unemployment claims have dropped.

Additionally, the report said that labor market and consumer pricing indicate that the U.S. economy is experiencing moderate growth, and that inflation has been successfully contained. In fact, core inflation has only risen 1.3 percent – the lowest figure since 2004, Reuters reports.

Meanwhile, after months of anticipation, President Obama signed into law a $17.6 billion dollar jobs bill earlier this week, giving hope to those who have yet to find employment after last year’s recession.

“A consensus is forming that, partly because of the necessary – and often unpopular – measures we took over the past year, our economy is growing again and we may soon be adding jobs instead of losing them,” said Obama.

“The jobs bill I’m signing today is intended to help accelerate this process,” he added.

American automakers score well in new reliability survery

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Posted in Auto Industry News, Ford, General Auto News, Toyota

On the heels of a few troubling months, the U.S. automotive industry received some terrific news this week. On Thursday, J.D. Power and Associates unveiled their 2010 Vehicle Dependability Survey, which found that Ford, Buick and Cadillac all decreased the number of problems with their vehicles.

The annual survey, which rates 3-year old cars based on how many problems they average per 100 vehicles, found that 25 of 36 vehicle brands manufactured in 2007 showed improved long-term durability compared to the previous year, the Daily Finance reports.

Among the top 10 most reliable 2007 brands are Ford, Mercury, Honda, Toyota and Lincoln. In fact, all three Ford divisions finished in the top eight in the survey.

“These results, along with other consumer-driven indicators, show that we are making solid progress on our promise to deliver high initial quality, long-term durability and overall customer satisfaction,” said Bennie Fowler, group vice president for global quality at Ford.

Toyota also had an extremely strong showing, with the Prius and Corolla finishing first and second in the compact car segment. The Sequoia and the Tundra also earned high marks in the multi-activity and large pickup categories.

With the economy improving, GM to begin paying back government bailout loan

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Posted in Auto Industry News, General Auto News

As the nation continues to slowly recover from the economic recession, it seems that the auto industry is beginning to show signs of life. Late last week, General Motors CEO Ed Whitacre announced that the automaker should be in a position to repay roughly $8 billion in debt to the U.S. government by June 2010.

Furthermore, Whitacre indicated that the government would be able to sell all of its equity in GM for a profit, according to Automotive News. Currently, U.S. taxpayers own 61 percent of General Motors stock.

“For the first time in over a decade, General Motors has a healthy, clean balance sheet,” said Whitacre. “We are not being crushed under mountains of debt. We have a cost structure that works.”

Meanwhile, GM’s new CEO has completely reorganized the company’s sales and marketing teams, a decision that he believes has contributed to the U.S. car manufacturer’s 20 percent market share.

With the economy improving and unemployment rates stabilizing, new and used car sales are expected to significantly trump last year’s numbers.

U.S. economy shows signs of rebounding

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Posted in Auto Industry News, Auto Loans & Financing News

After a rather trying 2009, it seems the U.S. economy has begun to pick up steam. Two separate reports by offices of the Federal Reserve have indicated that the economy has experienced moderate improvement over the last few months.

On Wednesday, the Federal Reserve released the latest Beige Book, which is a nationwide survey of economic conditions based on information collected from the Fed’s 12 regional bank districts.

Officials with the New York region – which includes New York, New Jersey and parts of Connecticut – said the local economy flashed further signs of improved strength and that many manufacturers are planning to increase capital spending and employment in the coming months, according to the Associated Press.

The report also indicated that the majority of retailers reported sales ahead of expectations, although the recent snow storms did hinder business in some areas.

Meanwhile, Richard Fisher, president of the Federal Reserve Bank of Dallas, said on Tuesday during an interview with PBS that the entire U.S. economy was “not robust but improving,” according to the Wall Street Journal.

Longtime GM executive to retire in May

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Posted in Auto Industry News, General Auto News

General Motors vice chairman Bob Lutz, a longtime executive who had a hand in developing some of the company’s most popular vehicles, announced on Wednesday that he will retire from the automaker effective May 1.

Lutz, 78, had actually planned on retiring at the end of last year, but agreed in July to remain head of sales and marketing operations. He was one of the few members of upper management to be kept on after the company filed for bankruptcy protection last year, according to The New York Times.

“The influence Bob Lutz has had on GM’s commitment to design, build and sell the world’s best vehicles will last for years to come,” said Ed Whitacre, General Motors CEO.

“I, along with many other men and women at GM and throughout the industry, have greatly benefited from his passion, wisdom and guidance,” he added.
Lutz, a former marine pilot, championed many of GM’s most influential vehicles, including the Chevy Volt, Saturn Aura and the Chevy Silverado pickup.

The news of Lutz’ retirement comes only a day after the American automaker announced that it will shakeup its executive ranks and reassign some managers to separate sales and marketing responsibilities.

GM to phase out Hummer after sale falls through

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Posted in Auto Industry News

General Motors said on Wednesday that it will begin to wind down its Hummer brand after the company failed to complete a deal with China’s Sichuan Tengzhong Heavy Industrial Machines.

The proposed deal fell through after the Chinese company failed to secure government approval of the sale, Auto Week reports. GM has agreed to accept other bids for Hummer while it phases out the brand, although industry experts doubt that any deal will be reached.

“We have … considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith, GM’s vice president of corporate planning and alliances.

“GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner,” he added.

The American automaker has announced that it will honor all warranties and will provide spare parts for owners of new and used Hummer models.

Meanwhile, General Motors finalized the sale of Saab to Spyker Cars on Tuesday and is currently phasing out its Saturn and Pontiac brands.

Toyota’s president testifies in front of Congress, apologizes for safety recalls

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Posted in Auto Industry News, Toyota

On Wednesday, at a U.S. congressional hearing concerning automobile safety, Toyota Motor Company president Akio Toyoda apologized for the Japanese car makers’ numerous recalls, stating that his company’s rapid growth had “confused” the priority that it places on safety, according to the Los Angeles Times.

“Quite frankly, I fear the pace at which we have grown may have been too quick,” said Toyoda, who testified in front of Congress for more than three hours. “I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced.”

Toyota’s president also said he believes that there are no problems with the electronics in his vehicles and that no cover-up was attempted to veil the automaker’s safety issues.

Meanwhile, on Thursday, New York State Attorney General Andrew Cuomo announced that Toyota has agreed to cover the cost of at-home pickup of vehicles that were involved in the recalls. In addition, the Japanese automaker will reportedly reimburse customers for supplemental expenses such as taxis or car rentals, the New York Times reports.

Honda, Subaru and Toyota ranked top three all-around automakers

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Posted in Auto Industry News, Honda - DO NOT USE, Subaru - DO NOT USE, Toyota

On Monday, in their annual spring auto issue, Consumer Reports ranked Honda and Subaru the two best all-around automakers. Surprisingly, in spite of their numerous recalls, the non-profit magazine ranked Toyota as the third best car manufacturer, the same designation that they received last year.

David Champion, senior director of Consumer Reports’ Auto Test Center, said that Toyota remained among the top three automakers because they continue to assemble quality vehicles, according to The New York Times.

“I think once they get through all the recalls, you’ll see that they are a very, very reliable manufacturer,” Champion stated.

Meanwhile, the Big 3 American auto companies fared no better than they did in 2009. While Ford ranked 11th among all car manufacturers, General Motors and Chrysler finished in the last two positions.

However, in the individual categories, the Chevrolet Traverse won the best family SUV and the Silverado pickup was recognized as the best truck.

The 2010 Consumer Reports rankings were based on the performance, reliability, utility and comfort of each brand.

Auto financing now available to consumers with poor credit

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Posted in Auto Industry News, Auto Loans & Financing News

As the dust continues to settle from the economic crisis, the automotive financing climate has begun to make its recovery. Toward the end of last year, lenders began offering more loans to car buyers, even those with average of below-average credit histories, Auto News reports.

Many industry experts believe that the lenders are approving more loan applications because credit markets have opened up substantially, which has improved lenders’ liquidity.

Late last year, GMAC, the principal lender for General Motors and Chrysler, received nearly $1 billion after selling auto loan securities, money that they have used to write new loans.

Tony Boutelle, CEO of Credit Union Direct Lending, told Auto Week that lenders are now willing to consider prospective car buyers who have had a foreclosure but still have steady income.

“In the past, if you have a foreclosure on your credit report, forget about buying a car for seven years,” he said. But now, lenders “are loosening up to at least make offers to those individuals.”

If you have good credit or bad credit, New Jersey State Auto Auction has the financing resources to get you approved.