Category Archives: General Auto News

Last minute recalls for 2010

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Posted in Ford, General Auto News

In a year that has seen more than 19 million recalls, the highest total since 2004, it makes perfect sense that the last day of the year would have several automakers throwing in some last minute safety notices.

Ford issued a minor recall this morning for issues with the new 2011 models of the Ford Edge, Ford F-150 and Lincoln MKX. Turns out that particular versions of these models have an issue with the body control module, which affects the car's electrical system. If these models were to short circuit, the entire electrical system could potentially overheat and cause a fire, according to the company. The recall is pretty small, with less than 15,000 vehicles affected, but the consequences could be disastrous.

Meanwhile, Chrysler's problems affect nearly 150,000 new and used vehicles in total, although they're not quite as serious. A problem with the rear axle on the Ram 1500 requires an extra 20 ounces of lube to be added, which drivers can do either on their own or for free at the dealer. On the Ram 4500 and 5500, a side ball stud on the tie rod could possibly fracture, requiring a replacement to be installed. Finally, the 2009 Dodge Journey has a problem with door-mounted wiring that could ultimately lead to the disabling of the side-impact sensor. That means side-curtain airbags may not deploy in a crash, increasing the risk of injury.

Honda dealing with recalls, hackers

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Posted in General Auto News

Honda has announced that it will be recalling a large number of new and late-model used Honda Accords and Pilots due to an issue with the suspension system.

Rather than a flaw in the design of the vehicle, the problem stems from a piece of critical machinery at the Japanese automaker's Alabama manufacturing plant. A machine that was supposed to tighten the bolts on the vehicle's suspension may have been calibrated incorrectly, leading to the possibility that the pieces connecting the suspension to the front axle could come loose. The flaw was caught by workers at the plant.

The recall notice applies to 10,800 Accords and Pilots manufactured at the plant since 2010. Affected owners have already been notified.

In a separate incident, the company also sent out a notice to nearly 2.2 million customers who had registered with the company on their website. A group of hackers were apparently able to steal a list of email addresses and passwords from the company, along with vehicle identification numbers (VINs). Although sensitive information like social security numbers were not obtained, users who use the same password for every website could potentially be exposed to further attacks. 

J.D. Power spotlights brand retention

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Posted in Ford, General Auto News

Over the years, the automotive industry has learned that car customers can have a wide variety of different reasons for choosing which new or used vehicle that they'll be driving home. Some drivers only stick to used cars, while others are fiercely loyal to a particular brand. Many always buy a pickup, while some stick with American automakers. Beyond these trends there are a wide variety of reasons that drivers choose a car, whether it's resale value, safety, styling or performance.

In an effort to better understand the habits of these consumers, J.D. Power and Associates releases a Customer Retention Study every year that examines what factors a buyer finds appealing about particular brands. Building brand loyalty is one way that automakers ensure repeated sales, so the survey seeks to highlight strengths across an automaker's lineups as well as any weaknesses that they may wish to correct.

What's tricky is that shoppers' preferences can change from year to year. For example, the 2009 edition of the survey highlighted preferences that were highly tied to the tough economy at the time, such as resale value. This year, with the economy steadily improving, drivers flip-flopped in what they wanted out of their vehicle. Drivers citing resale value dropped a full ten percentage points, while "fun to drive" saw a nine-point upswing.

"Now that economic and market conditions have improved somewhat, vehicle owners are increasingly citing emotional, rather than practical, reasons for staying with their vehicle brand or switching to a different one," said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. "In light of this, developing new models with attractive styling and that are perceived as fun to drive is increasingly critical for automakers in order to retain and conquest customers as the market continues to recover."

At the top of the list are two automakers with differing approaches to customer appeal. Ford and Honda both achieved a retention rate of 62 percent, meaning those drivers chose to purchase a vehicle from the automaker again. Ford respondents widely replied that their car was fun to drive or had eye-catching styling, while proponents of Honda cited safety and high resale value.

Just behind those brands was a three-way tie between Hyundai, Toyota and Lexus, at 60 percent retention. Also of interest was Hyundai's up-and-coming Kia brand, which was able to boost its retention by a whopping 21 points in 2010, up to 58 percent.

The survey also noticed a slight shift from imports to domestics. In 2009, 10 percent of drivers made the switch from an import to an American-made brand, but 2010 saw 14 percent of drivers change brands.

Drivers who are loyal to a particular brand might be rewarded for trading their car in for a model of the same type. Many dealers offer loyalty bonuses that can amount to significant discounts. And even if an automaker's new models begin to get away from the reasons a driver chose that brand in the first place, they should keep in mind that they can likely find the features they prefer on used autos.

Finalists announced for North American Car of the Year

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Posted in General Auto News, Hyundai

Every year, a group of automotive journalists select the 2011 North American Car of the Year, an award given to the vehicle that jurors feel exemplifies the best that the car industry has to offer. To be eligible for consideration, a car must be either entirely new or "substantially changed" in the eyes of the 49 journalists who vote on the award.

While the official winner has yet to be announced, the Automotive Press Association has revealed that the field has been narrowed down to three models in both the car and truck categories.

It appears the press favors green initiatives, as the Nissan Leaf and Chevrolet Volt make up two of the three finalists. These two vehicles are the first electric autos to hit the mass market, something that will certainly work in their favor in the voting process. However, the cars are far from identical. The Leaf is fully electric, never requiring gas, but pays for it with a limited range. The Volt uses a gas generator to power an electric motor, extending its range but also technically making it a series hybrid.

The third finalist is the redesigned Hyundai Sonata. The jurors have already indicated their respect for the changes Hyundai has made to its brand, as the Genesis was the 2009 Car of the Year – the only win in history for the South Korean automaker. All three of the Sonata's versions – the base model, hybrid and 2.0T turbo – are considered in the voting.

Cars weren't the only models competing for an award. The same group also names the North American Truck of the Year. Historically, Ford has dominated the category, with seven wins for the automaker over the history of the award. Last year, the automaker won for the Ford Transit Connect, in addition to the Ford Fusion Hybrid winning the 2010 Car of the Year.

This year, the new Ford Explorer goes up against two redesigned offerings from Chrysler: the Jeep Grand Cherokee and Dodge Durango. The Grand Cherokee has actually won the award once, back in 1999. It's worth noting that all three vehicles were once wildly popular during the nation's SUV craze, but have since been redesigned to be more fuel efficient and eco-friendly.

Drivers in the market for a vehicle don't need to pay new car prices in order to own a Car or Truck of the Year. By searching the used car market, they can likely find deals on acclaimed models from years past.
 

Volt delivered to first customer

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Posted in Chevrolet, General Auto News

The Chevrolet Volt has reached its first official customer – a retired airline pilot from New Jersey.

Jeffrey Kaffee of Parsippany, N.J. returned home from vacation early to pick up his Chevy Volt at his local dealership. The Parsippany Daily Record reports that Kaffee paid about $42,000 for the vehicle before the $7,500 federal tax credit.

Kaffee has a history with green vehicles, as he traded a used Toyota Prius to help lower the cost of the purchase.

Chevrolet announced that Kaffee is the first of nearly 360 customers who will receive their Volt this week. The first areas to receive the new vehicles are California, Texas, Washington D.C. and New York City. The cars are being delivered from a manufacturing plant in Detroit.

The Volt recently took home the Car of the Year awards from two major publications – Motor Trend and Automobile magazine. The series hybrid can travel for 35 miles on electricity only before switching to gas mode.

The main rival to the Volt, Nissan's Leaf, appears to have beaten GM out of the starting gate. The company announced last week that it had delivered the first Leaf to a customer in California.

Drivers who want to make the switch to a greener vehicle should consider selling or trading their current car. They may also want to wait until the models hit the used car market.
 

What are the most considered luxury brands?

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Posted in BMW, General Auto News

Every quarter, Kelley Blue Book, the company behind the popular used car pricing guide, surveys thousands of shoppers in the market for a new vehicle about what brands they are considering. This "most considered" list is used as a barometer for determining which brands are first and foremost in shoppers' minds.

This type of information is especially important in the luxury segment, which has heated up as of late as three brands – BMW, Mercedes-Benz and Lexus – all compete to be the brand with the most sales for 2010 in North America. The results were largely in line with recent sales figures. BMW placed first, which might be an explanation for its recent surge in sales. It was followed closely by Lexus, Audi, Acura and Mercedes-Benz. The company pointed out that while Mercedes was fifth overall, it held the top rank in a number of a factors
that drivers cited as important, such as prestige, family friendliness, safety and interior design.

The rankings got shaken up a little bit when the group turned its attention to the luxury crossover/SUV market, a quickly growing segment. Lexus held onto the top spot in this category, followed by Acura, Cadillac, Lincoln and BMW. This suggests that the domestic luxury brands aren't appealing to buyers in the market for a coupe or sedan, but still make their way onto buyers' shopping lists for larger vehicles.
 

Toyota regains top spot on “most considered” list

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Posted in General Auto News, Toyota

When shopping for a new or used car, one of the major factors for buyers to consider is the brand of car that they will be purchasing. Each automaker has perceived strengths and weaknesses, which often translate into their position on buyer's shopping list.

Every quarter, Kelley Blue Book polls a variety of shoppers in the market for a vehicle about which brands they are considering for their next purchase.

In previous years, Toyota's grip on the top spot has been iron-clad, with the Japanese automaker opening up a big lead over its rivals. Yet a recall scandal in 2010 caused Ford to slip past Toyota into the top spot.

According to the latest survey, Toyota is back on top once again, with 25 percent of buyers considering the brand, compared to 24 for Ford. Honda was close at 23 percent, with Chevrolet, Nissan and Hyundai rounding out the top six.

"The latest Brand Watch data from Kelley Blue Book Market Intelligence indicates that Toyota is slowly recovering from its public-perception crisis and regaining a position of prominence in the minds of new-car shoppers," said James Bell, executive market analyst for Kelley Blue Book. "However, whether Toyota will ascend as high as it was before the recall crisis remains yet to be seen. Hot competition from the likes of Ford, Honda, Chevrolet, Nissan and Hyundai could make it very hard for Toyota to keep a strong lead moving forward." 

Famous cars tear up Germany’s Nurburgring track

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Posted in General Auto News

The Nurburgring track in Germany is one of the most famous race tracks in the world, and some of the most famous vehicles in existence have tried their best to set world-records on the course.

MSN Autos recently detailed some of the most legendary runs made at Nurburgring in an effort to prove which car could claim the title of fastest in the world.

The most recent record-holder is the Pagani Zonda R, which broke the Ferrari 599XX's time by nearly 11 seconds in June of 2010. Clocking in at 6:47.5 seconds, the Zonda set a new standard for racing at Nurburgring.

Yet a Zonda isn't what anyone would describe as "street-legal." It's a race car built for those purposes only. While the Radical SR8 can be lumped in the same category, the car can technically be used on the road in some European countries, depending on the laws. Normally, outfitting a car for street legality means that the time will suffer, but the SR8 came in at just half-a-second behind the Zonda at 6:48.

Still, no driver is gonna find an SR8 lying around at their local used car dealer. More common automakers use the track as well, and quite frequently. In the past 3 years, the title for the world's fastest production sedan has bounced through numerous automakers. Cadillac's CTS-V set the bar pretty high with its 7:59 time in 2008, but it was bested by the new Porsche Panamera Turbo's 7:56 in 2009. Surprisingly, both were taken down by the Subaru Impreza WRX STI, which was able to edge the Porsche by just a second.

Nurburgring might be designed for high-horsepower machines, but that doesn't mean it's not used for a bit of fun as well. Mercedes-Benz' Mini brand debuted their Mini E at the track, posting a pretty respectable time of 9:51 purely on electric power.

Finally, perhaps one of the funniest moments at Nurburgring came on the British television show "Top Gear." Host Jeremy Clarkson was given a Jaguar S-Type to tool around with on the track, but was ridiculed after he posted a disappointing time of 10 minutes. That caused professional driver Sabine Schmitz to boast that she could beat his time – in a Ford Transit Van. Surprisingly, the model known more as a delivery truck was able to come pretty close, finishing just 8 seconds behind Clarkson's S-Type time.

With the exception of the Transit, all of these vehicles will fetch a pretty penny at a dealership – if they're available at all. Those who are looking for a performance vehicle, however, might be able to find a good deal on the used car market.
 

Tips for the negotiation process

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Posted in General Auto News, How To

Buying a new or used car can be a complex process with a lot of moving parts. If drivers aren't careful, they can quickly find themselves paying much more than they initially bargained for.

Fortunately, there are some easy tips that buyers can keep in mind to help make the negotiation process a bit easier on themselves. Despite the public perception, most car dealers aren't looking to swindle their customers. It would be naive of shoppers to think, however, that salesmen and dealers won't be attempting to maximize their profits.

MSN Autos recently spoke to several consumer advocates about some tips that could help buyers save a bit off of their next purchase. With these in mind, shoppers can help themselves negotiate the best possible deal.

As a starting point, Jeff Bartlett of Consumer Reports told the news source that it's helpful for shoppers to think of the process as a series of steps. Keeping these steps separate is key to understanding everything that's going on and avoiding potential pitfalls.

"They're looking at making money off you in stages," he said. "So it's important for customers to keep the stages separate and not lose track of what's going on."

For many buyers, one of those stages will be a trade-in. Swapping a used car for a new one can be a powerful tool that can work in the buyer's favor, but many dealers will use the trade-in value to distract from the actual purchase. They might make a generous offer on the car only to recoup the money by inflating the new car price, or vice-versa. The best strategy is for buyers to simply avoid mentioning the trade until the final price is locked in. Negotiate them as two separate transactions to make things easier.

Locking the final price of the car in can also help on the lending front. Buyers seeking a loan will have a whole other set of factors to worry about, including monthly payments and interest rates. So it's a lot easier to think in these terms once the actual price is known. Dealers make most of their profits off of financing, so those who plan on paying cash may not want to advertise it right away. That will tip salesmen off to the fact that they'll have to be very rigid with their pricing, since they won't be recouping any expenses through financing.

Finally, the news source reports that one of the more common mistakes that buyers make is simply not comparison shopping. Drivers may get locked into a specific model or settle for one of the cars for sale on the lot. It's important to test drive a number of different models and shop around for the best price. Shoppers shouldn't be afraid to quote a price from one dealer to another – this is a great way to drive down the cost of a vehicle.

Buyers who are really looking to save should keep in mind that new car lots aren't the only places to find vehicles. Often, better prices can be had on lightly used cars at their local dealer or auto auction.
 

DOT considering camera rule

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Posted in General Auto News

A proposed rule by the Department of Transportation (DOT) could mandate rear-facing cameras in all new vehicles built after 2014.

CBS News reports that the DOT is mulling over the proposal, which was prompted by a 2007 piece of legislation in Congress known as the Cameron Gulbransen Kids Transportation Safety Act. Gulbransen was a two-year old child who was killed when his father backed over him while pulling out of the driveway, unable to see him because of a lack of visibility.

The National Highway Traffic Safety Administration estimates an average of 18,000 injuries and 292 fatalities every year that could be prevented with the new technology.

"There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle," Transportation Secretary Ray LaHood said in a statement. "The changes we are proposing today will help drivers see into those blind zones directly behind vehicles to make sure it is safe to back up."

Rear-facing cameras are a recent technology and can be a bit expensive when equipped in a brand-new vehicle. Those who want to save a bit of cash may want to search for a late-model used vehicle that includes the feature.