Category Archives: General Auto News

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

By
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.

Florida woman arrested for driving while shaving – her bikini line

By
Posted in Ford, General Auto News

In a criminal case taken right from a movie script, a Florida woman was arrested last week after crashing her car into another vehicle while shaving her bikini line in traffic.

According to the Florida Highway Patrol, 37-year-old Meghan Barnes was on her way to Key West to visit her boyfriend when she decided to shave her pubic region. While driving approximately 45 miles per hour through Cudjoe Key last Tuesday, Barnes handed the steering wheel over to her ex-husband – who was riding in the passenger seat – so she could finish the job.

Unfortunately, the plan fell apart when an SUV slowed down in front of Barnes’ Ford Thunderbird and she crashed into the back of it, causing minor injuries to the occupants of the other vehicle.

“If I wasn’t there, I wouldn’t have believed it,” arresting officer Gary Dunick told the local newspaper, The Citizen.

The police report indicates that Barnes and her ex-husband drove for another half-mile after the accident and switched seats to make it look like he was driving. She was charged with driving with a revoked license, reckless driving, leaving the scene of an accident with injuries and driving without valid insurance. Police also told the Citizen that Barnes had been arrested for a DUI the day before and had her car impounded.

Longtime GM executive to retire in May

By
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.

Auto website offers $1 million prize for the cause of Toyota’s accelerator problems

By
Posted in General Auto News

With the congressional hearings concerning Toyota‘s safety recalls now completed, an automotive website has issued a challenge to car junkies and auto mechanics everywhere: Decipher the cause of the Japanese automaker’s unintended acceleration problem and win $1 million.

On Tuesday, Edmunds.com identified unintended acceleration as a chronic issue that has been “festering” for 20 years. They believe that the error may not necessarily be related to the recent recalls.

According to officials with the website, the $1 million cash prize will go to a person who can “demonstrate in a controlled environment a repeatable factor that will cause an unmodified new vehicle to accelerate suddenly and unexpectedly.”

Edmunds is hoping to attract the brightest minds in the automotive world to help figure out what is really causing sudden unexpected acceleration in brand-new vehicles.

Meanwhile, the auto website also blasted the National Highway Traffic Safety Administration for not accomplishing what Edmunds hopes to.

“Many incidents are not fully addressed by recalls,” said the website. “NHTSA is responding to the challenge with more of what they have already done: additional investigations. Isn’t it time to try a different approach?”

Edmunds is currently drafting rules for the prize, and will announce them later this month.

Toyota’s customer loyalty ratings slip

By
Posted in General Auto News, Toyota

Toyota Motor Corporation’s recent safety recalls have apparently taken their toll on their customer base. A recent survey by Consumer Reports found that 60 percent of current Toyota owners said they would most likely remain loyal to the brand when the time comes to purchase a new car, down 10 percentage points from a December 2009 study.

Due to the slippage, Toyota has fallen behind Honda and now sits at second on the customer loyalty rating list.

“The intense publicity surrounding Toyota’s recent recalls seems to be having a pronounced effect on the company’s image among its current customers,” said officials with Consumer Reports, quoted by Auto Week.

However, even with the decline, Toyota remains significant percentage points ahead of Chevrolet and Ford in terms of customer loyalty.

Approximately 50 percent of current Ford and Chevy owners said they would most likely stay with their respective brands.

The most recent survey was conducted before the U.S. Congressional committee hearing last week. Approximately 6.5 million Toyota vehicles have been recalled in the U.S alone over the last six months due to safety concerns.

NYC ranked 20th best U.S. city for auto repair

By
Posted in Ford, General Auto News

Owners of used cars in New York have reason to celebrate; repair shops in your home city generally provide customers with fair quotes for auto repair. In a recent study by AutoMD.com, titled Advocacy for Repair Shop Fairness, researchers ranked New York City as the 20th best large U.S. city for auto repair.

To conduct the research, AutoMD.com had mystery shoppers stop by over 600 maintenance shops in the 50 largest U.S. cities and request a quote on a typical auto repair job – a front brake pad replacement for a 2004 Ford Focus. The top 50 list was calculated based on each city’s average repair affordability, price disparity between shops in the same city and general shop integrity.

New York City ranked 16th in repair affordability, 32nd in price disparity and 19th in shop integrity.

“Doing your research is critical to getting a fair shake at the repair shop,” said AutoMD President Shane Evangelist. “Fortunately, car owners now have access to online tools so they can compare local repair shops, establish a local market repair invoice price and make sure that they get a fair deal.”

Overall, Memphis topped AutoMD’s list, while Chicago was ranked dead last.

Volkswagen Touareg and Suzuki SX4: Two of the best winter cars of the road today

By
Posted in General Auto News, Suzuki - DO NOT USE, Volkswagen - DO NOT USE

The recent snowstorms that have hammered the east coast are a nagging reminder that winter is still very much upon us. However, consumers in the market for a used car in New York or New Jersey should know that winter driving doesn’t need to be a bore.

The folks at AutoWeek.com recently unveiled their Top 10 Best Snow Cars list, reminding us all that with the right equipment, winter traveling can still be a safe, yet exciting adventure.

One of the cars at the top of that list is the Volkswagen Touareg TDI, the German automaker’s first entry into the sports utility vehicle segment.

The Volkswagen Touareg offers a unique mix of luxury, exceptional road performance and remarkable off-road capability. The 2006 model received a 3.6-liter FSI V6 engine, replacing the 3.2-liter V6 that came standard in the previous year, according to MSN Autos.

Those looking to do some off-road driving in winter conditions may want to check out the Touareg TDI, which is powered by a 5.0-liter V10 twin-turbocharged diesel engine that is capable of delivering 310 horsepower and 533 pound-feet of torque.

All Touaregs are equipped with an all-wheel-drive system that is designed for severe road conditions. Anti-lock brakes and an anti-skid system both come standard on each 2006 model. Also, each seating row includes front and curtain side airbags.

The 2006 Touareg possesses a strong physiology, say Edmunds.com. “Not strong in the old-fashioned, live-axles-at-either-end, give-me-your-worst sense, but strong as in carefully engineered using today’s technology to take on such conditions as rush-hour traffic in the city, steep off-road trails in the mountains and everything in between in an unflappable manner.”

For those car buyers that are looking for a smaller, less expensive used car that can handle the winter roads, the Suzuki SX4 might be the right vehicle for you.

The 2007 Suzuki SX4 replaced the previous year’s larger and more costly Aerio SX. It is equipped with a four-cylinder engine capable of producing 143 horsepower and 136 pound-feet of torque, making it one of the more powerful subcompacts in its class.

“For those on a tight budget, Suzuki happily points out that the SX4 is the least expensive new car you can buy with all-wheel drive,” said Edmunds in 2007. It also has plenty of interior room, a long powertrain warranty and available stability control.

GM donates 30 GMC trucks to Haitian relief effort

By
Posted in Auto Industry News, General Auto News

Last week, the General Motors Foundation announced that it has donated 30 GMC trucks to the Haitian relief effort in the aftermath of the January 12 earthquake that ravaged the island nation.

The U.S. auto giant is also contributing $100,000 cash and an additional $250,000 that was raised through the auction of a limited-edition Chevrolet Corvette at the 39th annual Barrett-Jackson Collector Car Auction. All donations have been presented to the American Red Cross.

The first two GMC trucks to be donated arrived in Miami in time for the Super Bowl and were present at the NFL Little Haiti Outreach Event held at the Sant La Haitian Neighborhood Center.

“Immediate needs in Haiti include basic supplies and reliable transportation that can handle rugged and mountainous terrain,” said GM Foundation Chairman John Montford.

“We believe the donation of 30 GMC trucks can have an immediate and beneficial impact on relief efforts in Haiti,” he added.

Meanwhile, the Penske Corporation recently announced that they have donated more than $1 million worth of diesel-fueled flatbed trucks to the Clinton Bush Haiti Fund for delivering food and lifesaving supplies to the people of the Caribbean nation.

Toyota issues recall on several 2010 hybrid models

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

On Tuesday, Toyota Motor Corporation announced a global recall of more than 430,000 hybrid vehicles to fix problems with several anti-lock braking systems. The current safety campaign, which includes the extremely popular 2010 Prius model as well as the 2010 Lexus HS, is the latest of a series of international recalls totaling 8.1 million vehicles since October 2009.

The most recent recall comes just a day before the first government hearing regarding Toyota and the National Highway Traffic Safety Administration’s handling of safety concerns raised by U.S. officials over the last few years.

“Let me assure everyone that we will redouble our commitment to quality as a lifeline of our company,” said Toyota president Akio Toyoda. “I apologize for causing trouble and concern for many customers over the quality and safety of Toyota vehicles.”

Dealers will fix the defect by upgrading each vehicle’s software to accelerate the transition from regenerative to antilock braking, according to Auto Week. Toyota has announced that the software upgrade has already been introduced in new cars last month, meaning the popular hybrid Prius will continue to be manufactured and sold.

Student crashes car into high-school, cruises down hallway

By
Posted in General Auto News, Subaru - DO NOT USE

On Friday evening, Seattle police arrested a 17-year-old boy after he intentionally drove his parents 2002 Subaru Outback right through the doors of his high-school.

The teen, whose identity has been withheld due to his age, drove the vehicle through the entrance of Shorecrest High School, cruised for about 75 yards down a hallway and eventually crashed into a vacant security office. Two school employees who were still on campus witnessed the bizarre incident and reported the crime to police.

Local authorities found the suspect on school property approximately 90 minutes after the episode took place. No injuries were reported.

After being arrested and interviewed, the boy was taken to Harborview Medical Center “for a mental evaluation,” according to Sergeant John Urquhart, spokesman for the King County Sheriff’s Office.

“He did not appear to be under the influence of drugs or alcohol,” added Urquhart, quoted by the Seattle Times.

Shoreline Schools spokesman Craig Degginger confirmed that class will go on as planned this week, despite what has been referred to by students as a strange “annoyance.”