By U.S. News & World Report
Next time you see a Subaru Impreza WRX in your review mirror, get out of its way. Speed up. Slow down. Pull over to the side of the road and let it pass. Whatever it takes - just get away from it. If you don't, you may regret it.
Edmunds Straightline Blog explains, "Every couple years, the Insurance Institute for Highway Safety (IIHS), the non-profit testing and research agency supported by auto insurance companies, releases its model-by-model insurance loss rate scores. And it just so happens that among 2005-2007 models, the Subaru Impreza WRX had the highest loss rate among all types of coverage."
That means insurers paid out more to repair WRXs than any other model of car. Insurers paid out more claims to repair cars hit by WRXs than those hit by anything else. WRX owners even claimed more non-crash-related damage than owners of any other car.
The Wall Street Journal notes, "Auto insurance costs aren't the first thing most shoppers think about when they evaluate a new car to buy. But it's an important cost to consider." For example, the Journal notes, a car shopper who buys "a big car that gets 20 miles to the gallon, instead of a small car that sips fuel at the rate of 30 miles to the gallon...could pay about $625 a year more for fuel." But if that small car is a WRX, the owner could quickly erase those savings with insurance payments.
The Journal obtained quotes from Allstate Insurance Corp, and assuming a Washington, D.C. address and a good driving record, found that the WRX could cost nearly $600 more per year to insure than a comparable Ford Taurus.
Your own perfect driving record won't necessarily help you avoid those charges. The Journal explains, "Even if you have a spotless record of safe, accident-free driving in a Subaru WRX, you are also paying for the damage racked up by the other WRX drivers who aren't as careful as you are with this high-performance, turbo-charged machine."
That may ultimately be the problem with the WRX - it's not the car, it's the people who drive it. After all, Edmunds Straightline notes, the WRX offers a lot of horsepower for a low price. "Build a performance car and price it low enough for younger drivers to afford, and then, the insurance companies step into to ruin the fun," they comment.
It's actually possible, IIHS data show, to buy a powerful sports car that's relatively easy to insure. The Corvette Convertible, for instance, makes the list of the ten best insurance risks. Even some relatively affordable sports cars, like the Mazda MX-5 Miata, crack the top ten.
The Ten Worst Vehicles to Insure, according to IIHS data:
1. Subaru Impreza WRX
2. Scion tC
3. Hyundai Tiburon
4. Mercedes CLS class 4dr
5. Suzuki Forenza
6. Honda Civic Si
7. Dodge Charger
8. Nissan 350z
9. Chevrolet Cobalt
10. Suzuki Reno
The Ten Best Vehicles to Insure:
1. Buick Rendezvous
2. Pontiac Solstice
3. Buick Terraza
4. Honda Odyssey
5. Mazda MX-5 Miata
6. Subaru Outback
7. Ford Five Hundred
8. Volvo V70
9. Chrysler Town & Country
10.Chevrolet Corvette Convertible
Sunday, September 27, 2009
Tuesday, August 25, 2009
10 most expensive cars to own and drive
From BankRate.com:
By Russ Heaps
Here is a list of the 10 most expensive-to-own new vehicles, according to Edmunds.com. Four are from Mercedes-Benz and all but one are European imports. When you consider that the cars on our least-expensive-to-own list cost $0.39 per mile or less to own, the idea of paying $3 to $4 a mile is staggering.
In addition to the average market transaction price and financing rates, the estimates of what it truly costs to own these cars include factors such as fuel, insurance, repairs, maintenance and depreciation. The end result is a ballpark figure for the total cost over the first five years of ownership, as well as the cost per mile based on driving 15,000 miles per year.
All estimates come courtesy of Edmunds.com which features a "True Cost to Own" calculator.
1. Mercedes-Benz SL65 AMG Black Series
Starting price: $301,750
5-year total: $364,471
Cost per mile: $4.86
What pushes the Black Series up the price ladder from the SL65 AMG is the wide use of carbon-fiber body parts and some under-the-hood enhancements. Its 670-horsepower, 6-liter twin-turbo V-12 slingshots this two-seater to 60 miles per hour in less than four seconds. It's also loaded to the gills with high-tech standard equipment.
2. Mercedes-Benz S65 AMG
Starting price: $202,825
5-year total: $244,363
Cost per mile: $3.26
Capable of reaching 60 miles per hour from a standstill in just over four seconds, the S65 AMG combines opulent interior appointments with outrageously aggressive performance. It uses the same 6-liter twin-turbo V-12 found in other high-end Mercedes models but in this application it develops 604 horsepower.
3. Mercedes-Benz CL65 AMG
Starting price: $205,575
5-year total: $230,771
Cost per mile: $3.08
A strikingly handsome coupe, the CL65 AMG is more than a pretty face. Its 604-horsepower, 6-liter twin-turbo V-12 is capable of going from zero to 60 in just over four seconds. Standard gear includes a rearview camera and nighttime vision assist.
4. Audi R8
Starting price: $126,400
5-year total: $159,753
Cost per mile: $2.13
If your goal is to get noticed, there is no surer way to do it than behind the wheel of Audi's R8. Sleek, fast and decadent, the R8 uses a mid-mounted 420-horsepower 4.2-liter V-8 to turn all four wheels. It can dash from zero to 60 in just over four seconds. Sure it's expensive, but it is arguably the most accessible exotic on the market.
5. Porsche 911 Convertible Turbo
Starting price: $141,650
5-year total: $159,393
Cost per mile: $2.13
With an extra-cost options list as long as your arm, this two-seat drop-top offers an array of customizing choices. A 480-horsepower, 3.6-liter twin-turbo flat six-cylinder engine funnels output to all four wheels through a six-speed manual transmission. It gets to 60 miles per hour in less than four seconds.
6. Audi A8 L W12
Starting price: $122,625
5-year total: $153,588
Cost per mile: $2.05
The "L" in its name refers to this luxury sedan's stretched wheelbase, while the "W12" indicates it packs the potent 450-horsepower, 6-liter, W-12 engine under its hood. Fewer than six ticks of the clock are needed for the A8 L W12 to reach 60 miles per hour. Among its standard features are massaging front seats and four-zone automatic climate control.
7. Chevrolet Corvette ZR1
Starting price: $106,620
5-year total: $146,096
Cost per mile: $1.95
The Zeus of 'Vettes, the ZR1 is a supercar by any measure. Motivating it to a zero to 60 time of just over three seconds is a 638-horsepower supercharged 6.2-liter, V-8. Although it doesn't possess the amount of high-end bric-a-brac many of the other entries on this list do, pound for pound and dollar for dollar it may just be the best sports car in the world.
8. Porsche Cayenne Turbo S
Starting price: $125,775
5-year total: $138,613
Cost per mile: $1.85
The only SUV on this list, the Cayenne Turbo S packs Porsche performance into an off-road-capable all-wheel-drive uber package. Turning all four wheels is a 550-horsepower, 4.8-liter, twin-turbo V-8. Reaching 60 miles per hour from a stop takes a hair less than five seconds. A 14-speaker surround-sound audio system and a hard-drive-based navigation system are standard.
9. BMW M6 Convertible
Starting price: $111,725
5-year total: $138,186
Cost per mile: $1.84
The high-performance version of the 6 Series, the M6 is fitted with a 500-horsepower 5-liter, V-10, providing this soft-top with zero to 60 sprints of less than five seconds. A 13-speaker Harman Kardon surround-sound audio system and adaptive xenon headlights are standard.
10. Mercedes-Benz CLS63 AMG
Starting price: $99,775
5-year total: $137,749
Cost per mile: $1.84
No sedan better captures the sleek flow of a coupe's styling than the Mercedes-Benz CLS. In its hopped-up guise as the CLS63 AMG, it complements its drop-dead curb appeal with an asphalt-chomping 507-horsepower, 6.2-liter, V-8 engine. Reaching 60 miles per hour requires just a bit more than four seconds with a top speed of more than 180 miles per hour.
By Russ Heaps
Here is a list of the 10 most expensive-to-own new vehicles, according to Edmunds.com. Four are from Mercedes-Benz and all but one are European imports. When you consider that the cars on our least-expensive-to-own list cost $0.39 per mile or less to own, the idea of paying $3 to $4 a mile is staggering.
In addition to the average market transaction price and financing rates, the estimates of what it truly costs to own these cars include factors such as fuel, insurance, repairs, maintenance and depreciation. The end result is a ballpark figure for the total cost over the first five years of ownership, as well as the cost per mile based on driving 15,000 miles per year.
All estimates come courtesy of Edmunds.com which features a "True Cost to Own" calculator.
1. Mercedes-Benz SL65 AMG Black Series
Starting price: $301,750
5-year total: $364,471
Cost per mile: $4.86
What pushes the Black Series up the price ladder from the SL65 AMG is the wide use of carbon-fiber body parts and some under-the-hood enhancements. Its 670-horsepower, 6-liter twin-turbo V-12 slingshots this two-seater to 60 miles per hour in less than four seconds. It's also loaded to the gills with high-tech standard equipment.
2. Mercedes-Benz S65 AMG
Starting price: $202,825
5-year total: $244,363
Cost per mile: $3.26
Capable of reaching 60 miles per hour from a standstill in just over four seconds, the S65 AMG combines opulent interior appointments with outrageously aggressive performance. It uses the same 6-liter twin-turbo V-12 found in other high-end Mercedes models but in this application it develops 604 horsepower.
3. Mercedes-Benz CL65 AMG
Starting price: $205,575
5-year total: $230,771
Cost per mile: $3.08
A strikingly handsome coupe, the CL65 AMG is more than a pretty face. Its 604-horsepower, 6-liter twin-turbo V-12 is capable of going from zero to 60 in just over four seconds. Standard gear includes a rearview camera and nighttime vision assist.
4. Audi R8
Starting price: $126,400
5-year total: $159,753
Cost per mile: $2.13
If your goal is to get noticed, there is no surer way to do it than behind the wheel of Audi's R8. Sleek, fast and decadent, the R8 uses a mid-mounted 420-horsepower 4.2-liter V-8 to turn all four wheels. It can dash from zero to 60 in just over four seconds. Sure it's expensive, but it is arguably the most accessible exotic on the market.
5. Porsche 911 Convertible Turbo
Starting price: $141,650
5-year total: $159,393
Cost per mile: $2.13
With an extra-cost options list as long as your arm, this two-seat drop-top offers an array of customizing choices. A 480-horsepower, 3.6-liter twin-turbo flat six-cylinder engine funnels output to all four wheels through a six-speed manual transmission. It gets to 60 miles per hour in less than four seconds.
6. Audi A8 L W12
Starting price: $122,625
5-year total: $153,588
Cost per mile: $2.05
The "L" in its name refers to this luxury sedan's stretched wheelbase, while the "W12" indicates it packs the potent 450-horsepower, 6-liter, W-12 engine under its hood. Fewer than six ticks of the clock are needed for the A8 L W12 to reach 60 miles per hour. Among its standard features are massaging front seats and four-zone automatic climate control.
7. Chevrolet Corvette ZR1
Starting price: $106,620
5-year total: $146,096
Cost per mile: $1.95
The Zeus of 'Vettes, the ZR1 is a supercar by any measure. Motivating it to a zero to 60 time of just over three seconds is a 638-horsepower supercharged 6.2-liter, V-8. Although it doesn't possess the amount of high-end bric-a-brac many of the other entries on this list do, pound for pound and dollar for dollar it may just be the best sports car in the world.
8. Porsche Cayenne Turbo S
Starting price: $125,775
5-year total: $138,613
Cost per mile: $1.85
The only SUV on this list, the Cayenne Turbo S packs Porsche performance into an off-road-capable all-wheel-drive uber package. Turning all four wheels is a 550-horsepower, 4.8-liter, twin-turbo V-8. Reaching 60 miles per hour from a stop takes a hair less than five seconds. A 14-speaker surround-sound audio system and a hard-drive-based navigation system are standard.
9. BMW M6 Convertible
Starting price: $111,725
5-year total: $138,186
Cost per mile: $1.84
The high-performance version of the 6 Series, the M6 is fitted with a 500-horsepower 5-liter, V-10, providing this soft-top with zero to 60 sprints of less than five seconds. A 13-speaker Harman Kardon surround-sound audio system and adaptive xenon headlights are standard.
10. Mercedes-Benz CLS63 AMG
Starting price: $99,775
5-year total: $137,749
Cost per mile: $1.84
No sedan better captures the sleek flow of a coupe's styling than the Mercedes-Benz CLS. In its hopped-up guise as the CLS63 AMG, it complements its drop-dead curb appeal with an asphalt-chomping 507-horsepower, 6.2-liter, V-8 engine. Reaching 60 miles per hour requires just a bit more than four seconds with a top speed of more than 180 miles per hour.
10 Cheapest Cars to Own
From BankRate.com:
By Russ Heaps
Tuesday, August 18, 2009
You've read it on Bankrate.com and heard it elsewhere: A well-informed consumer will get a better deal when buying a vehicle.
Research is the key. Every additional piece of information you have increases the likelihood that you will negotiate a fair price, lock in the best financing available and drive away in a car or truck you can afford. The emphasis here is on "afford." Affordability involves much more than down payment and monthly installments. It encompasses other costs such as insurance, fuel, maintenance, repairs and depreciation. You must factor these costs into your annual vehicle-ownership budget as well as into that magical dollar amount you feel you can afford monthly.
All of these factors, of course, may vary depending on the way you use and maintain your car.
Edmunds.com, a leading automotive Web site, features an interactive tool it calls its True Cost to Own calculator, which computes an estimated total five-year cost and the cost per mile based on driving 15,000 miles per year.
Here are the 10 cars that top Edmunds' current list of the most frugal cars to own and operate:
Hyundai Accent GS:
Starting price: $10,690
5-year total cost: $25,958
Cost per mile: 35 cents
As basic transportation, the Accent GS three-door isn't so basic. Its 110-horsepower, 1.6-liter four-cylinder engine delivers decent fuel economy with an EPA estimated 27 mpg in the city and 33 mpg on the highway. The interior is relatively roomy and comes with power accessories and air conditioning.
Nissan Versa Base
Starting price: $10,710
5-year total cost: $27,196
Cost per mile: 36 cents
Nissan Versa: A sedan for the frugal, Versa's stingy fuel consumption earns it an EPA rating of 26 mpg in the city and 34 mpg on the highway. A five-speed manual transmission ushers the 1.6-liter four-cylinder engine's 107 horsepower to the front wheels. Its relatively roomy back seat is a major attraction in this segment; otherwise, its cabin is devoid of frills.
Chevrolet Aveo5 LS
Starting price: $12,685
5-year total cost: $28,360
Cost per mile: 38 cents
Chevrolet Aveo5 LS: Chevy beefed up the Aveo's 1.6-liter four-cylinder for 2009 and it now produces 107 horsepower. EPA estimated fuel economy is a very respectable 25 mpg in the city and 34 mpg on the highway. Among its short list of standard features is a four-speaker audio system with an auxiliary input jack.
Suzuki SX4 Sedan
Starting price: $13,994
5-year total cost: $28,965
Cost per mile: 39 cents
Suzuki SX4 Sedan: A number of trim levels let consumers increase content in smallish dollar increments. In its base form, though, the SX4 offers full-power accessories and a tilt steering wheel. EPA fuel economy estimates are 23 mpg in the city and 31 mpg on the highway earned by a 143-horsepower, 2-liter four-cylinder engine.
Pontiac G3
Starting price: $15,055
5-year total cost: $29,049
Cost per mile: 39 cents
Pontiac G3: Compared to the first four entries on this list, the G3 is positively loaded with standard equipment. Air conditioning, a six-speaker audio system with CD player and auxiliary input jack, and a tilt steering wheel are all standard. A 106-horsepower, 1.6-liter four-cylinder engine mated with a five-speed manual transmission earns it an EPA rating of 27 mpg city/34 mpg highway.
Mazda3 iSport
Starting price: $15,360
5-year total cost: $29,271
Cost per mile: 39 cents
Mazda3 iSport: Six airbags, anti-lock brakes and a four-speaker audio system with CD player and auxiliary audio jack are all standard in this sedan. A 148-horsepower, 2-liter four-cylinder engine collaborates with a five-speed manual transmission to earn EPA estimates of 22 mpg city and 30 mpg highway.
Honda Fit
Starting price: $15,460
5-year total cost: $29,420
Cost per mile: 39 cents
Honda Fit: Nicely appointed, even the base Fit has air conditioning, full-power accessories and a four-speaker audio system with CD player and auxiliary input jack. Its performance is on par with this group and is provided by a 117-horsepower, 1.5-liter four-cylinder engine. Its fuel economy is among the best with EPA estimates of 27 mpg city/33 mpg highway.
Pontiac Vibe
Starting price: $16,735
5-year total cost: $29,512
Cost per mile: 39 cents
Pontiac Vibe: Fraternal twin to the Toyota Matrix, the Vibe in its base form is fairly Spartan. It does come with a four-speaker audio system with CD player and auxiliary input jack, and a tilt/telescoping steering wheel. Power arrives via a 132-horsepower, 1.8-liter four-cylinder engine. Fuel economy is acceptable, with an EPA rating of 26 mpg city and 28 mpg highway.
Toyota Yaris
Starting price: $12,955
5-year total cost: $29,595
Cost per mile: 39 cents
Toyota Yaris: You have to step up a trim level to get an audio system, but the base Yaris three-door hatchback does have air conditioning and a tilt steering column. Its power comes from a 106-horsepower, 1.5-liter four-cylinder engine. With an EPA rating of 29 mpg city and 36 mpg highway, its outstanding fuel economy earned it a spot on our list of top 10 fuel misers.
Nissan Sentra
Starting price: $16,070
5-year total cost: $29,623
Cost per mile: 39 cents
Nissan Sentra: With the most standard equipment of any entry on this list, the Sentra sedan comes with air conditioning, a four-speaker audio system with CD player and auxiliary input jack, and power windows and locks. Its 2-liter four-cylinder engine generates 140 horsepower. Its EPA rating is 25 mpg city and 33 mpg highway.
By Russ Heaps
Tuesday, August 18, 2009
You've read it on Bankrate.com and heard it elsewhere: A well-informed consumer will get a better deal when buying a vehicle.
Research is the key. Every additional piece of information you have increases the likelihood that you will negotiate a fair price, lock in the best financing available and drive away in a car or truck you can afford. The emphasis here is on "afford." Affordability involves much more than down payment and monthly installments. It encompasses other costs such as insurance, fuel, maintenance, repairs and depreciation. You must factor these costs into your annual vehicle-ownership budget as well as into that magical dollar amount you feel you can afford monthly.
All of these factors, of course, may vary depending on the way you use and maintain your car.
Edmunds.com, a leading automotive Web site, features an interactive tool it calls its True Cost to Own calculator, which computes an estimated total five-year cost and the cost per mile based on driving 15,000 miles per year.
Here are the 10 cars that top Edmunds' current list of the most frugal cars to own and operate:
Hyundai Accent GS:
Starting price: $10,690
5-year total cost: $25,958
Cost per mile: 35 cents
As basic transportation, the Accent GS three-door isn't so basic. Its 110-horsepower, 1.6-liter four-cylinder engine delivers decent fuel economy with an EPA estimated 27 mpg in the city and 33 mpg on the highway. The interior is relatively roomy and comes with power accessories and air conditioning.
Nissan Versa Base
Starting price: $10,710
5-year total cost: $27,196
Cost per mile: 36 cents
Nissan Versa: A sedan for the frugal, Versa's stingy fuel consumption earns it an EPA rating of 26 mpg in the city and 34 mpg on the highway. A five-speed manual transmission ushers the 1.6-liter four-cylinder engine's 107 horsepower to the front wheels. Its relatively roomy back seat is a major attraction in this segment; otherwise, its cabin is devoid of frills.
Chevrolet Aveo5 LS
Starting price: $12,685
5-year total cost: $28,360
Cost per mile: 38 cents
Chevrolet Aveo5 LS: Chevy beefed up the Aveo's 1.6-liter four-cylinder for 2009 and it now produces 107 horsepower. EPA estimated fuel economy is a very respectable 25 mpg in the city and 34 mpg on the highway. Among its short list of standard features is a four-speaker audio system with an auxiliary input jack.
Suzuki SX4 Sedan
Starting price: $13,994
5-year total cost: $28,965
Cost per mile: 39 cents
Suzuki SX4 Sedan: A number of trim levels let consumers increase content in smallish dollar increments. In its base form, though, the SX4 offers full-power accessories and a tilt steering wheel. EPA fuel economy estimates are 23 mpg in the city and 31 mpg on the highway earned by a 143-horsepower, 2-liter four-cylinder engine.
Pontiac G3
Starting price: $15,055
5-year total cost: $29,049
Cost per mile: 39 cents
Pontiac G3: Compared to the first four entries on this list, the G3 is positively loaded with standard equipment. Air conditioning, a six-speaker audio system with CD player and auxiliary input jack, and a tilt steering wheel are all standard. A 106-horsepower, 1.6-liter four-cylinder engine mated with a five-speed manual transmission earns it an EPA rating of 27 mpg city/34 mpg highway.
Mazda3 iSport
Starting price: $15,360
5-year total cost: $29,271
Cost per mile: 39 cents
Mazda3 iSport: Six airbags, anti-lock brakes and a four-speaker audio system with CD player and auxiliary audio jack are all standard in this sedan. A 148-horsepower, 2-liter four-cylinder engine collaborates with a five-speed manual transmission to earn EPA estimates of 22 mpg city and 30 mpg highway.
Honda Fit
Starting price: $15,460
5-year total cost: $29,420
Cost per mile: 39 cents
Honda Fit: Nicely appointed, even the base Fit has air conditioning, full-power accessories and a four-speaker audio system with CD player and auxiliary input jack. Its performance is on par with this group and is provided by a 117-horsepower, 1.5-liter four-cylinder engine. Its fuel economy is among the best with EPA estimates of 27 mpg city/33 mpg highway.
Pontiac Vibe
Starting price: $16,735
5-year total cost: $29,512
Cost per mile: 39 cents
Pontiac Vibe: Fraternal twin to the Toyota Matrix, the Vibe in its base form is fairly Spartan. It does come with a four-speaker audio system with CD player and auxiliary input jack, and a tilt/telescoping steering wheel. Power arrives via a 132-horsepower, 1.8-liter four-cylinder engine. Fuel economy is acceptable, with an EPA rating of 26 mpg city and 28 mpg highway.
Toyota Yaris
Starting price: $12,955
5-year total cost: $29,595
Cost per mile: 39 cents
Toyota Yaris: You have to step up a trim level to get an audio system, but the base Yaris three-door hatchback does have air conditioning and a tilt steering column. Its power comes from a 106-horsepower, 1.5-liter four-cylinder engine. With an EPA rating of 29 mpg city and 36 mpg highway, its outstanding fuel economy earned it a spot on our list of top 10 fuel misers.
Nissan Sentra
Starting price: $16,070
5-year total cost: $29,623
Cost per mile: 39 cents
Nissan Sentra: With the most standard equipment of any entry on this list, the Sentra sedan comes with air conditioning, a four-speaker audio system with CD player and auxiliary input jack, and power windows and locks. Its 2-liter four-cylinder engine generates 140 horsepower. Its EPA rating is 25 mpg city and 33 mpg highway.
Saturday, August 8, 2009
Best Car Deals: August 2009
From U.S. News and World Report
By Sean Tucker
The U.S. government has poured a shot of rocket fuel into a depressed car industry. With the help of the federal Cash for Clunkers rebate program, Americans have begun buying cars again, at a pace not seen since late 2007.
The Car Allowance Rebate System, the impulse behind the surge, offers buyers a credit of up to $4,500 toward the purchase of a new, more fuel-efficient car when they turn in an older gas-guzzler.
Automakers have tailored their incentives around the CARS program this month. Most are offering additional rebates on top of the government's contribution, making for nearly unprecedented low prices on some models.
It's working. It may even be working too well. Some dealerships are running low on popular cars.
Chrysler, for instance, offered to match the government's rebate on almost every model it makes with its "Double Ca$h For Your Old Car" promotion when the program started, but had to restrict that offer to just a few models after one week because its supply of the most fuel-efficient models dwindled quickly once CARS launched. Volkswagen has nearly run out of its most fuel-efficient car, the diesel-powered Jetta TDI. Some Toyota dealers are having trouble locating another Prius to sell.
Still, great deals are available. And, with or without promotions, the fundamentals of car shopping still apply this month. Take good care of your credit rating, negotiate respectfully with a dealer who is trying to survive a troubled market, and apply any cash-back rebates to the down payment to knock down what you owe before you even drive away. If you keep those principles in mind, you'll be able to negotiate a good deal even if you can't take advantage of government funds.
...
The Best Deals we found this month are listed below:
2009 Hyundai Elantra
Up to $2,000 cash back plus $1.49/gallon gas for a year
Our 2009 Best Small Car for the Money isn't really a small car. The Elantra is so roomy that the EPA classifies it as midsize. Yet it's sold for a small car price, and gets small car gas mileage, with an EPA combined fuel economy rating of 27 mpg. This month, it's available with a $2,000 rebate ($1,500 for the Elantra Touring wagon edition), plus Hyundai's unique pricelock program, which caps the price of gas at $1.49 per gallon for the first year you own the car - refunding you the difference if you pay more. It's no wonder the Elantra has been one of the 10 fastest-selling vehicles under the Cash for Clunkers rebate program.
Note: The Elantra's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $14,120 - $17,820
Invoice: $13,735 - $17,090
MPG: 24 City / 33 Hwy
2009 BMW 335D
$4,500 "eco credit" plus up to $5,400 in government rebates
The BMW 3-Series is widely considered the benchmark sport sedan. Other cars are judged on how close they come to matching this car. Because of that reputation, the German automaker generally doesn't discount the 3-Series much. However, a diesel-powered option introduced for 2009 hasn't been selling well. There's no good reason for that - the 335D offers more off-the-line torque than any other 3- Series model, and is the most fuel-efficient. Perhaps Americans simply aren't sold on the benefits of diesel. So the company has tacked a rare incentive onto the diesel 3 -- a $4,500 "eco credit." The car also qualifies for a $900 tax incentive for fuel-efficient diesel-powered cars. That's $5,400 off the price of the best Upscale Midsize Sedan on the market. If you have clunker that qualifies for the full $4,500 voucher, the discount climbs to nearly $10,000 - an unprecedented markdown.
Note: The 335D's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $33,600 - $50,700
Invoice:$30,910 - $46,645
MPG: 23 City / 36 Hwy
2009 Ford Taurus
0% APR financing for 60 months or up to $3,500 cash back
The arrival of the exciting 2010 Ford Taurus has left thousands of 2009 Taurus models sitting on dealership lots gathering dust. On the outside, the '09 Taurus is certainly not the equal of the muscular new bull...but look deeper, and you'll quickly see that it's a solid and affordable choice for those who need a full-size car. One of the most fuel-efficient large cars, the Taurus is also a "Top Safety Pick" from the Insurance Institute for Highway Safety. This is a great month to buy one. It's available at a significant discount before you even start negotiating, and dealers are anxious to negotiate...they want to move this Taurus off the lot so they can replace it with the 2010 model that is earning all the good press.
Note: The Taurus' combined EPA-estimated gas mileage of front-wheel-drive Tauruses is greater than 22 mpg, so those cars are eligible for the Cash for Clunkers rebate. All-wheel-drive models are not.
MSRP:$25,170 - $32,520
Invoice:$23,103 - $29,718
MPG:18 City / 28 Hwy
2009 Ford Escape
0% financing for 60 months or up to $2,500 cash back
Americans have figured out that the 2009 Ford Escape is a great deal. It's been one of the ten fastest-selling vehicles under the Cash for Clunkers rebate program. The reasons are easy to see. An Insurance Institute for Highway Safety "Top Safety Pick," the Escape is a smooth driver and one of the more fuel-efficient SUVs. It's also high-tech, available with Ford's unique SYNC infotainment system, which allows drivers to control Bluetooth devices inside the car with voice commands. This month, it's available with no interest for five years, or $2,500 cash back.
Note: The Escape's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP:$20,435 - $27,670
Invoice:$19,245 - $25,625
MPG:20 City / 28 Hwy
2009 Volkswagen Touareg TDI
0% APR financing for 60 months
The Volkswagen Touareg is one of the sharpest-looking SUVS on the road, and boasts an upscale cabin that wouldn't be out of place in a Mercedes-Benz or a Lexus. Its roomy interior includes a long list of standard features, including one of the more impressive stereos in the class. And unlike most sporty- looking SUVs, this one holds its own off-road. The diesel-powered TDI edition even meets Cash for Clunkers requirements. This month, it's available interest-free for five years, keeping payments reasonable.
Note: The Touareg TDI's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate. Other Touareg models do not qualify.
MSRP: $39,300 - $48,900
Invoice: $36,203 - $44,997
MPG: 14 City / 20 Hwy
2009 Mazda CX-9
0% APR financing for 36 months plus $1,500 cash back
The Mazda CX-9 has many of the virtues of a large SUV, but few of the vices. As buyers of big sport ‘utes expect, the CX-9 can comfortably seat seven and haul a lot of cargo. But, somewhat unexpectedly, it's easy to drive - even a bit sporty. It's also among the most fuel-efficient large SUVs, and, in most configurations, carries an MSRP low enough to qualify for the Cash for Clunkers rebate program.
Note: The combined EPA-estimated gas mileage of two-wheel-drive CX-9s is greater than 18 mpg, so they are eligible for the Cash for Clunkers rebate, though four-wheel-drive versions do not qualify.
MSRP: $29,820 - $35,205
Invoice: $27,600 - $32,567
MPG: 16 City / 22 Hwy
2009 Dodge Ram
Up to $5,500 cash back or 0% APR financing for 60 months plus $2,000 cash back
The 2009 Dodge Ram is one of the smoothest-driving trucks ever built. Dodge designed the Ram with a unique coil-over suspension, giving it the sharpest handling on any full-size pickup. It also offers comfortable seating, a high-tech cabin, and innovative Rambox storage containers over the fenders, which can even be plugged and used as coolers - making you, hands down, the hero of the tailgate party. This month, it's available with up to $5,500 in rebates, or a combined rebate and interest-free financing offer.
Note: The Ram is available in many configurations, but most have a combined fuel economy greater than 15 mpg, so many are eligible for the Cash for Clunkers rebate.
MSRP: $21,520 - $43,490
Invoice: $19,390 - $38,769
MPG: 14 City / 19 Hwy
2009 Porsche 911
1.9% APR financing for 36 months
Porsche is in trouble, for reasons that have nothing to do with its extraordinary cars. The company overreached last year in a failed attempt to buy Volkswagen, and now faces a mountain of debt. Industry analysts widely expect Porsche to sell itself to VW in order to save its hide. But Porsche's moment of crisis is a moment of opportunity for car buyers. After all, the crisis was caused by overreaching management - the cars are still the stuff of legend. Porsche vehicles are almost never discounted. There is no need to mark them down because there is never a shortage of people dreaming of a Porsche. But this month, the company has tendered a rare financing offer on virtually all of its vehicles. While 1.9% APR is nothing revolutionary, it's unheard of from Porsche...and here it is, offered on the iconic 911, with its four-second zero-to-sixty time and legendary razor-sharp handling. The offer lasts until the end of September.
Note: The Cash for Clunkers rebate does not apply to cars in this price range.
MSRP: $76,300 - $103,900
Invoice: $68,490 - $93,330
MPG: 18 City / 26 Hwy
By Sean Tucker
The U.S. government has poured a shot of rocket fuel into a depressed car industry. With the help of the federal Cash for Clunkers rebate program, Americans have begun buying cars again, at a pace not seen since late 2007.
The Car Allowance Rebate System, the impulse behind the surge, offers buyers a credit of up to $4,500 toward the purchase of a new, more fuel-efficient car when they turn in an older gas-guzzler.
Automakers have tailored their incentives around the CARS program this month. Most are offering additional rebates on top of the government's contribution, making for nearly unprecedented low prices on some models.
It's working. It may even be working too well. Some dealerships are running low on popular cars.
Chrysler, for instance, offered to match the government's rebate on almost every model it makes with its "Double Ca$h For Your Old Car" promotion when the program started, but had to restrict that offer to just a few models after one week because its supply of the most fuel-efficient models dwindled quickly once CARS launched. Volkswagen has nearly run out of its most fuel-efficient car, the diesel-powered Jetta TDI. Some Toyota dealers are having trouble locating another Prius to sell.
Still, great deals are available. And, with or without promotions, the fundamentals of car shopping still apply this month. Take good care of your credit rating, negotiate respectfully with a dealer who is trying to survive a troubled market, and apply any cash-back rebates to the down payment to knock down what you owe before you even drive away. If you keep those principles in mind, you'll be able to negotiate a good deal even if you can't take advantage of government funds.
...
The Best Deals we found this month are listed below:
2009 Hyundai Elantra
Up to $2,000 cash back plus $1.49/gallon gas for a year
Our 2009 Best Small Car for the Money isn't really a small car. The Elantra is so roomy that the EPA classifies it as midsize. Yet it's sold for a small car price, and gets small car gas mileage, with an EPA combined fuel economy rating of 27 mpg. This month, it's available with a $2,000 rebate ($1,500 for the Elantra Touring wagon edition), plus Hyundai's unique pricelock program, which caps the price of gas at $1.49 per gallon for the first year you own the car - refunding you the difference if you pay more. It's no wonder the Elantra has been one of the 10 fastest-selling vehicles under the Cash for Clunkers rebate program.
Note: The Elantra's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $14,120 - $17,820
Invoice: $13,735 - $17,090
MPG: 24 City / 33 Hwy
2009 BMW 335D
$4,500 "eco credit" plus up to $5,400 in government rebates
The BMW 3-Series is widely considered the benchmark sport sedan. Other cars are judged on how close they come to matching this car. Because of that reputation, the German automaker generally doesn't discount the 3-Series much. However, a diesel-powered option introduced for 2009 hasn't been selling well. There's no good reason for that - the 335D offers more off-the-line torque than any other 3- Series model, and is the most fuel-efficient. Perhaps Americans simply aren't sold on the benefits of diesel. So the company has tacked a rare incentive onto the diesel 3 -- a $4,500 "eco credit." The car also qualifies for a $900 tax incentive for fuel-efficient diesel-powered cars. That's $5,400 off the price of the best Upscale Midsize Sedan on the market. If you have clunker that qualifies for the full $4,500 voucher, the discount climbs to nearly $10,000 - an unprecedented markdown.
Note: The 335D's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $33,600 - $50,700
Invoice:$30,910 - $46,645
MPG: 23 City / 36 Hwy
2009 Ford Taurus
0% APR financing for 60 months or up to $3,500 cash back
The arrival of the exciting 2010 Ford Taurus has left thousands of 2009 Taurus models sitting on dealership lots gathering dust. On the outside, the '09 Taurus is certainly not the equal of the muscular new bull...but look deeper, and you'll quickly see that it's a solid and affordable choice for those who need a full-size car. One of the most fuel-efficient large cars, the Taurus is also a "Top Safety Pick" from the Insurance Institute for Highway Safety. This is a great month to buy one. It's available at a significant discount before you even start negotiating, and dealers are anxious to negotiate...they want to move this Taurus off the lot so they can replace it with the 2010 model that is earning all the good press.
Note: The Taurus' combined EPA-estimated gas mileage of front-wheel-drive Tauruses is greater than 22 mpg, so those cars are eligible for the Cash for Clunkers rebate. All-wheel-drive models are not.
MSRP:$25,170 - $32,520
Invoice:$23,103 - $29,718
MPG:18 City / 28 Hwy
2009 Ford Escape
0% financing for 60 months or up to $2,500 cash back
Americans have figured out that the 2009 Ford Escape is a great deal. It's been one of the ten fastest-selling vehicles under the Cash for Clunkers rebate program. The reasons are easy to see. An Insurance Institute for Highway Safety "Top Safety Pick," the Escape is a smooth driver and one of the more fuel-efficient SUVs. It's also high-tech, available with Ford's unique SYNC infotainment system, which allows drivers to control Bluetooth devices inside the car with voice commands. This month, it's available with no interest for five years, or $2,500 cash back.
Note: The Escape's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP:$20,435 - $27,670
Invoice:$19,245 - $25,625
MPG:20 City / 28 Hwy
2009 Volkswagen Touareg TDI
0% APR financing for 60 months
The Volkswagen Touareg is one of the sharpest-looking SUVS on the road, and boasts an upscale cabin that wouldn't be out of place in a Mercedes-Benz or a Lexus. Its roomy interior includes a long list of standard features, including one of the more impressive stereos in the class. And unlike most sporty- looking SUVs, this one holds its own off-road. The diesel-powered TDI edition even meets Cash for Clunkers requirements. This month, it's available interest-free for five years, keeping payments reasonable.
Note: The Touareg TDI's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate. Other Touareg models do not qualify.
MSRP: $39,300 - $48,900
Invoice: $36,203 - $44,997
MPG: 14 City / 20 Hwy
2009 Mazda CX-9
0% APR financing for 36 months plus $1,500 cash back
The Mazda CX-9 has many of the virtues of a large SUV, but few of the vices. As buyers of big sport ‘utes expect, the CX-9 can comfortably seat seven and haul a lot of cargo. But, somewhat unexpectedly, it's easy to drive - even a bit sporty. It's also among the most fuel-efficient large SUVs, and, in most configurations, carries an MSRP low enough to qualify for the Cash for Clunkers rebate program.
Note: The combined EPA-estimated gas mileage of two-wheel-drive CX-9s is greater than 18 mpg, so they are eligible for the Cash for Clunkers rebate, though four-wheel-drive versions do not qualify.
MSRP: $29,820 - $35,205
Invoice: $27,600 - $32,567
MPG: 16 City / 22 Hwy
2009 Dodge Ram
Up to $5,500 cash back or 0% APR financing for 60 months plus $2,000 cash back
The 2009 Dodge Ram is one of the smoothest-driving trucks ever built. Dodge designed the Ram with a unique coil-over suspension, giving it the sharpest handling on any full-size pickup. It also offers comfortable seating, a high-tech cabin, and innovative Rambox storage containers over the fenders, which can even be plugged and used as coolers - making you, hands down, the hero of the tailgate party. This month, it's available with up to $5,500 in rebates, or a combined rebate and interest-free financing offer.
Note: The Ram is available in many configurations, but most have a combined fuel economy greater than 15 mpg, so many are eligible for the Cash for Clunkers rebate.
MSRP: $21,520 - $43,490
Invoice: $19,390 - $38,769
MPG: 14 City / 19 Hwy
2009 Porsche 911
1.9% APR financing for 36 months
Porsche is in trouble, for reasons that have nothing to do with its extraordinary cars. The company overreached last year in a failed attempt to buy Volkswagen, and now faces a mountain of debt. Industry analysts widely expect Porsche to sell itself to VW in order to save its hide. But Porsche's moment of crisis is a moment of opportunity for car buyers. After all, the crisis was caused by overreaching management - the cars are still the stuff of legend. Porsche vehicles are almost never discounted. There is no need to mark them down because there is never a shortage of people dreaming of a Porsche. But this month, the company has tendered a rare financing offer on virtually all of its vehicles. While 1.9% APR is nothing revolutionary, it's unheard of from Porsche...and here it is, offered on the iconic 911, with its four-second zero-to-sixty time and legendary razor-sharp handling. The offer lasts until the end of September.
Note: The Cash for Clunkers rebate does not apply to cars in this price range.
MSRP: $76,300 - $103,900
Invoice: $68,490 - $93,330
MPG: 18 City / 26 Hwy
Doing the ‘Clunker’ Calculus
In the New York Times:
The “cash for clunkers” program helped increase July auto sales to the highest level this year.
By MATTHEW L. WALD
Published: August 7, 2009
THE “cash for clunkers” program will be back in full swing this weekend after President Obama signed a program extension on Friday. The $2 billion infusion should help dealers sell thousands of cars to customers who can reap a bounty of $3,500 to $4,500 for trading in an old vehicle.
The short-term effect will be obvious, but the program’s longer-term value — either as a method of stimulating the economy or saving energy — is less clear. Economists say that most buyers simply moved up the timing of their purchase, and that the projected gasoline savings are exaggerated because many of the trade-ins were seldom used.
The program’s first $1 billion was considered money well spent, at least by the new car industry, because it lured a quarter-million buyers into dealerships; the vehicles they purchased would go about 60 percent farther on a gallon of gasoline than the ones they turned in.
But measuring the stimulative effect of the program would require employing scientific methods like those used in drug trials, where some participants are given a placebo instead of the drug being tested. The problem, according to market experts, is that nearly everyone who bought new cars would have done so at some point anyway.
So what will sales be like in the coming months, now that many consumers have moved up their plans to buy a new vehicle? There were extra sales in July and the same will be true in August. And the number of sales under the program will be measured precisely — the Transportation Department said 245,384 vehicles had been sold by Friday morning, with rebates totaling $1.03 billion.
But the Transportation Department will not be able to measure how many shoppers would have purchased a car this fall — when the 2010 models go on sale — or in the winter or spring.
Likewise the fuel savings will be hard to calculate. Here is a possible best case: The average clunker traveled 12,000 miles a year at 16 miles a gallon, consuming 750 gallons. It was replaced with a new vehicle — probably a car, although the “clunkers” offered by the public were often pickups or S.U.V.’s — that can travel the same 12,000 miles on 480 gallons, a savings of 270 gallons.
Multiply by 245,000, the number of vehicles purchased using the first $1 billion of incentives, and the country burns 66.2 million fewer gallons of gasoline a year, or about 1.6 million barrels. At the rate America burns oil, that is about a two-hour supply.
Here is a possible worst case: The clunker was a pickup or S.U.V. driven only a few thousand miles a year because the family had other vehicles. When the cost of fuel went up, the gas-guzzling clunker was relegated to the back of the driveway.
Now the family has traded the clunker for a new fuel-efficient sedan, which will be driven 12,000 miles a year. The miles it displaces are not the ones that would have been traveled in the old S.U.V., but by another sedan that is still on the road. That, in turn, reduces the mileage improvement and gasoline savings achieved.
In multicar households — which is to say, in most American households — the newest car often gets driven the most miles, and the oldest one the least. So, some researchers rightly ask, how fuel-efficient is the car the family still owns but which will now be parked more often?
“There’s no real way to calculate it without making a bunch of assumptions,” said Lee Schipper, a researcher at the University of California, Berkeley, and at Stanford.
Others acknowledge the problem. “The cash for clunkers program helps the economy a lot and improves oil security a little,” said Jason S. Grumet, president of the Bipartisan Policy Center and an old hand at energy and pollution policy. He formerly headed a multistate clean air agency, and served on President Obama’s transition team.
“The fuel-saving benefits pale in comparison to President Obama’s significant strengthening of mileage standards earlier this year,” Mr. Grumet said, “but every little bit helps.”
He was referring to the national fuel economy standard signed into law in May that will be phased in beginning with the 2012 model year. By 2016, cars will have to average 39 miles a gallon.
That raises more questions. Seven years from now, when cars have to average 39 miles a gallon, what will we think of a government program that enticed hundreds of thousands of consumers to buy vehicles that got 30 miles a gallon (and that in 2016 will be middle-aged)? Had the program not existed, some of those buyers might have waited until 2012, when the new mileage rules begin to be phased in.
But in the end, “cash for clunkers” may help undo a previous government program: for years, small businesses got a tax break for buying S.U.V.’s, but only if they were the very largest — at least 6,000 pounds.
The “cash for clunkers” program helped increase July auto sales to the highest level this year.
By MATTHEW L. WALD
Published: August 7, 2009
THE “cash for clunkers” program will be back in full swing this weekend after President Obama signed a program extension on Friday. The $2 billion infusion should help dealers sell thousands of cars to customers who can reap a bounty of $3,500 to $4,500 for trading in an old vehicle.
The short-term effect will be obvious, but the program’s longer-term value — either as a method of stimulating the economy or saving energy — is less clear. Economists say that most buyers simply moved up the timing of their purchase, and that the projected gasoline savings are exaggerated because many of the trade-ins were seldom used.
The program’s first $1 billion was considered money well spent, at least by the new car industry, because it lured a quarter-million buyers into dealerships; the vehicles they purchased would go about 60 percent farther on a gallon of gasoline than the ones they turned in.
But measuring the stimulative effect of the program would require employing scientific methods like those used in drug trials, where some participants are given a placebo instead of the drug being tested. The problem, according to market experts, is that nearly everyone who bought new cars would have done so at some point anyway.
So what will sales be like in the coming months, now that many consumers have moved up their plans to buy a new vehicle? There were extra sales in July and the same will be true in August. And the number of sales under the program will be measured precisely — the Transportation Department said 245,384 vehicles had been sold by Friday morning, with rebates totaling $1.03 billion.
But the Transportation Department will not be able to measure how many shoppers would have purchased a car this fall — when the 2010 models go on sale — or in the winter or spring.
Likewise the fuel savings will be hard to calculate. Here is a possible best case: The average clunker traveled 12,000 miles a year at 16 miles a gallon, consuming 750 gallons. It was replaced with a new vehicle — probably a car, although the “clunkers” offered by the public were often pickups or S.U.V.’s — that can travel the same 12,000 miles on 480 gallons, a savings of 270 gallons.
Multiply by 245,000, the number of vehicles purchased using the first $1 billion of incentives, and the country burns 66.2 million fewer gallons of gasoline a year, or about 1.6 million barrels. At the rate America burns oil, that is about a two-hour supply.
Here is a possible worst case: The clunker was a pickup or S.U.V. driven only a few thousand miles a year because the family had other vehicles. When the cost of fuel went up, the gas-guzzling clunker was relegated to the back of the driveway.
Now the family has traded the clunker for a new fuel-efficient sedan, which will be driven 12,000 miles a year. The miles it displaces are not the ones that would have been traveled in the old S.U.V., but by another sedan that is still on the road. That, in turn, reduces the mileage improvement and gasoline savings achieved.
In multicar households — which is to say, in most American households — the newest car often gets driven the most miles, and the oldest one the least. So, some researchers rightly ask, how fuel-efficient is the car the family still owns but which will now be parked more often?
“There’s no real way to calculate it without making a bunch of assumptions,” said Lee Schipper, a researcher at the University of California, Berkeley, and at Stanford.
Others acknowledge the problem. “The cash for clunkers program helps the economy a lot and improves oil security a little,” said Jason S. Grumet, president of the Bipartisan Policy Center and an old hand at energy and pollution policy. He formerly headed a multistate clean air agency, and served on President Obama’s transition team.
“The fuel-saving benefits pale in comparison to President Obama’s significant strengthening of mileage standards earlier this year,” Mr. Grumet said, “but every little bit helps.”
He was referring to the national fuel economy standard signed into law in May that will be phased in beginning with the 2012 model year. By 2016, cars will have to average 39 miles a gallon.
That raises more questions. Seven years from now, when cars have to average 39 miles a gallon, what will we think of a government program that enticed hundreds of thousands of consumers to buy vehicles that got 30 miles a gallon (and that in 2016 will be middle-aged)? Had the program not existed, some of those buyers might have waited until 2012, when the new mileage rules begin to be phased in.
But in the end, “cash for clunkers” may help undo a previous government program: for years, small businesses got a tax break for buying S.U.V.’s, but only if they were the very largest — at least 6,000 pounds.
Thursday, August 6, 2009
Cars Hurt Most by the Recession
From U.S. News and World Report:
By Rick Newman, U.S. News
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
By Rick Newman, U.S. News
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
Reviewers Hurl Criticism at 2010 Honda Insight
From Hybridcars.com
By Hybridcars.com
What’s the biggest obstacle to mainstream adoption of greener cars? Cost. The new generation of super fuel-efficient high-tech vehicles—including hybrids, clean diesels and electric cars—carry a higher price tag compared to their conventional counterparts. That’s why Honda designed its latest hybrid, the 2010 Honda Insight, with affordability as the main goal. With a base MSRP of $19,800, Honda achieved its objective. The Honda Insight’s marketing tag line is, “The Hybrid for Everyone.”
When the Insight was introduced in early 2009, the automotive press gushed with praise. Reviewers claimed that the Honda Insight is more compelling and fun to drive than the quintessential gas-electric car, the Toyota Prius, which is bigger, faster, and uses a more sophisticated third-generation of hybrid technology. Dan Neil, Los Angeles Times auto writer, described the Insight as “impeccably constructed, well planned and honeyed with high-tech surfaces and materials. Nothing feels cheap or compromised." Road and Track’s Dennis Simanaitis wrote, “The Insight will make a significant contribution to sustainable mobility.” Edmunds.com reviewers said, “Given its impressive talents and attractive price, it's hard to fault the 2010 Honda Insight.”
But in the past few weeks, a number of critics have found it quite easy to find faults with the Insight— harshly criticizing the car for the very traits that have allowed Honda to keep down the price.
1. The Honda Insight doesn’t feel solid.
David Champion, senior director of the Consumer Reports auto test center, said, “The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based.”
2. The Honda Insight is underpowered.
Scott Burgess of the Detroit News, wrote, “The Insight can feel underpowered at times, especially on the highway...There are paddle shifters mounted on the steering wheel, which can help a driver improve the car's pickup but can also make the engine scream like a toddler.”
3. The Honda Insight’s engine is buzzy.
UK reviewer, Jeremy Clarkson, wrote, “The Honda’s petrol engine is a much-shaved, built-for-economy, low-friction 1.3 that, at full chat, makes a noise worse than someone else’s crying baby on an airliner. It’s worse than the sound of your parachute failing to open.
4. The Honda Insight is too small.
Edward Loh of Motor Trend explained, “While the Prius qualifies as a midsize car, the 2009 Insight is a compact: shorter by 2.7 inches overall and 5.9 inches between the wheels. The Insight is also 1.2 inches narrower, with a roof height 2.5 inches lower, which is why Honda tells you its Prius-fighter is the more similarly sized Civic Hybrid.” Dan Edmunds of Edmunds.com, wrote, “Those approaching 6 feet in height will feel the roof and wish for more legroom [in the backseat]. The Insight's 100.4-inch wheelbase needs an additional inch or two. This, above all, reminds us that the Insight is indeed a compact car.”
Did early praise leave the Honda Insight open to hatchet jobs by contrary reviewers seeking dramatic headlines? Did the initial euphoria about an affordable hybrid wear off? Or did it just take time for the press to narrow in on the Insight’s shortcomings?
In the end, the look and feel of a car is subjective. Consumers shopping for a fuel-efficient hybrid will have to get behind the wheel and pass their own judgment on the feeling of solidity, the sound from the engine, and the ability of a compact car to provide enough space to meet their needs. Meanwhile, the hard numbers speak for themselves: $20,000, a long list of cutting-edge features, seating for five, and average city-highway mileage of 41 mpg.
By Hybridcars.com
What’s the biggest obstacle to mainstream adoption of greener cars? Cost. The new generation of super fuel-efficient high-tech vehicles—including hybrids, clean diesels and electric cars—carry a higher price tag compared to their conventional counterparts. That’s why Honda designed its latest hybrid, the 2010 Honda Insight, with affordability as the main goal. With a base MSRP of $19,800, Honda achieved its objective. The Honda Insight’s marketing tag line is, “The Hybrid for Everyone.”
When the Insight was introduced in early 2009, the automotive press gushed with praise. Reviewers claimed that the Honda Insight is more compelling and fun to drive than the quintessential gas-electric car, the Toyota Prius, which is bigger, faster, and uses a more sophisticated third-generation of hybrid technology. Dan Neil, Los Angeles Times auto writer, described the Insight as “impeccably constructed, well planned and honeyed with high-tech surfaces and materials. Nothing feels cheap or compromised." Road and Track’s Dennis Simanaitis wrote, “The Insight will make a significant contribution to sustainable mobility.” Edmunds.com reviewers said, “Given its impressive talents and attractive price, it's hard to fault the 2010 Honda Insight.”
But in the past few weeks, a number of critics have found it quite easy to find faults with the Insight— harshly criticizing the car for the very traits that have allowed Honda to keep down the price.
1. The Honda Insight doesn’t feel solid.
David Champion, senior director of the Consumer Reports auto test center, said, “The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based.”
2. The Honda Insight is underpowered.
Scott Burgess of the Detroit News, wrote, “The Insight can feel underpowered at times, especially on the highway...There are paddle shifters mounted on the steering wheel, which can help a driver improve the car's pickup but can also make the engine scream like a toddler.”
3. The Honda Insight’s engine is buzzy.
UK reviewer, Jeremy Clarkson, wrote, “The Honda’s petrol engine is a much-shaved, built-for-economy, low-friction 1.3 that, at full chat, makes a noise worse than someone else’s crying baby on an airliner. It’s worse than the sound of your parachute failing to open.
4. The Honda Insight is too small.
Edward Loh of Motor Trend explained, “While the Prius qualifies as a midsize car, the 2009 Insight is a compact: shorter by 2.7 inches overall and 5.9 inches between the wheels. The Insight is also 1.2 inches narrower, with a roof height 2.5 inches lower, which is why Honda tells you its Prius-fighter is the more similarly sized Civic Hybrid.” Dan Edmunds of Edmunds.com, wrote, “Those approaching 6 feet in height will feel the roof and wish for more legroom [in the backseat]. The Insight's 100.4-inch wheelbase needs an additional inch or two. This, above all, reminds us that the Insight is indeed a compact car.”
Did early praise leave the Honda Insight open to hatchet jobs by contrary reviewers seeking dramatic headlines? Did the initial euphoria about an affordable hybrid wear off? Or did it just take time for the press to narrow in on the Insight’s shortcomings?
In the end, the look and feel of a car is subjective. Consumers shopping for a fuel-efficient hybrid will have to get behind the wheel and pass their own judgment on the feeling of solidity, the sound from the engine, and the ability of a compact car to provide enough space to meet their needs. Meanwhile, the hard numbers speak for themselves: $20,000, a long list of cutting-edge features, seating for five, and average city-highway mileage of 41 mpg.
America's Best-Loved Cars
From CNNmoney.com
In J.D. Power's latest survey, new vehicle owners rate just how much they love their cars and trucks. The results include some pretty big surprises.
print
By Peter Valdes-Dapena, CNNMoney.com senior writer
J.D. Power's latest car owner satisfaction survey includes some good news for Chrysler Group and Hyundai.
Chrysler hasn't done well in these sorts of surveys in recent years, but this time the new Dodge Challenger beat out its competitors as the most-favored mid-size sporty car. (Also worth noting: The Dodge brand, overall, earned above average scores in this survey after posting the largest one-year improvement of any car brand.) And Hyundai, not known as a luxury brand beat out higher-priced mid-sized luxury cars from BMW and Jaguar.
The market research company surveyed 80,000 new car buyers after 90 days of ownership asking them to rate as many 90 different features of their vehicles as well as their overall satisfaction. The J.D. Power APEAL survey -- it stands for Automotive Performance, Execution and Layout -- provides a measure of just how much new car buyers like their cars and why. Here’s a look at how the competition shook out.
Sub-compact Car: Smart ForTwo
2nd place: Scion xD
3rd place: Honda Fit
The ForTwo's main selling point is its tiny size and its tiny fuel costs. About as long as most mid-size cars are wide, the ForTwo is a breeze to park on congested city streets.
The tiny two-seater beat out roomier cars like the Scion xD and Honda Fit. While it may not be the most practical choice for a lot of people, the ForTwo delivers what its buyers are looking for, said David Sargent, vice president for automotive research at J.D. Power.
Compact Car: Mini Cooper
2nd place: Volkswagen Jetta
3rd place: Mitsubishi Lancer
J.D. Power's APEAL tends to favor cars with a strong emotional attraction. Cars like the Mini Cooper certainly apply.
The Mini's quirky retro design carries over into an interior that features a speedometer the size of a pie mounted between the seats. Engineers at parent company BMW also gave the Mini ultra-responsive handling to match the eye-catching design.
"Owners really do find it fun to drive," said J.D. Power's David Sargent.
Compact Sporty Car: Volkswagen GTI
The GTI was the only car to score above average in this category. It's basically a sport-tuned, performance version of the Volkswagen Golf economy car. VW pits it against Japanese compacts like the Honda Civic Si.
Besides driving enjoyment, the GTI scored very well for interior quality. That's always a strong point for VW.
Compact Luxury Sport: Mercedes-Benz SLK-class
2nd place: Nissan Z
The sleek little SLK, with its folding hard top, borrows its arrow-nosed look from Mercedes' far more expensive SL cars. Besides the design, the SLK offers its buyers a fun drive and nice little comforts like an optional "air scarf" that blows warm air around occupants' heads to make top-down driving on cold days more tolerable.
Among owners, the SLK scored particularly well for its high-quality feel.
Entry Luxury: Volkswagen CC
2nd place: Cadillac CTS
3rd place: Audi A4/5
With the CC, Volkswagen takes the Passat up a couple of notches. Besides its dramatic swooping body lines, the interior also gets high-contrast two-tone treatment.
An optional 280-horsepower engine and 6-speed transmission add a dose of power to the car's responsive driving character.
Despite its low-slung roof design, owners really love the roomy interior of the CC. It also scored well for storage space and fuel economy.
Mid-size Sport: Dodge Challenger
2009 Dodge Challenger
2009 Dodge Challenger
A big win for the Chrysler Group, the Challenger beat the long-time favorite Ford Mustang as well as the Mitsubishi Eclipse in this category. In fact, it was the only car in its category to score above average.
The Challenger scored well for its interior as well for its performance. The fact that the Challenger is an all-new model also helps, said J.D. Power's David Sargent. New models, particularly ones that attract a lot of attention, tend to do well in this survey.
At the time this survey was done, the Chevrolet Camaro had not yet been released, so we'll have to wait until next year to see if the Challenger can hold on to its title.
Mid-size Luxury: Hyundai Genesis
2nd place: Jaguar XF
3rd place: BMW 5-series
You can almost hear the champagne corks popping at Hyundai headquarters. The economy-minded brand's move into the luxury segment beat entries from Jaguar and BMW in this survey.
The Genesis scored very well for its features, roominess and comfort, but the car's low price, relative to its rivals, was probably a factor.
"People feel that they're getting a pretty good deal here," said David Sargent of J.D. Power.
Large Luxury: Mercedes-Benz S-class
2nd place: Lexus LS
Mercedes-Benz has this category locked up. The S-class has won here each of the past three years.
"This is one vehicle that really hit the mark," said J.D. Power's David Sargent.
The S-class offers a long list of optional features, including massaging seats in the front and back, infra-red night-vision cameras and cruise control that automatically maintains a following distance at any speed. Of course, there's also the car's refined and powerful performance.
Mid-size Car: Volkswagen Passat
2nd place: Mazda6
3rd place: Honda Accord
It's hard to find a Volkswagen car that didn't top its category in this survey. Two versions of this car, the other being the CC, outscored competitors.
As always for VW, interior quality and fuel economy were high points.
Large Car: Nissan Maxima
2nd place: Pontiac G8
3rd place: Toyota Avalon
The redesigned Maxima scored big points for its interior. Owners also love the audio systems, seating and visibility.
Click here to see all of America's best-loved cars at CNNMoney.com
In J.D. Power's latest survey, new vehicle owners rate just how much they love their cars and trucks. The results include some pretty big surprises.
By Peter Valdes-Dapena, CNNMoney.com senior writer
J.D. Power's latest car owner satisfaction survey includes some good news for Chrysler Group and Hyundai.
Chrysler hasn't done well in these sorts of surveys in recent years, but this time the new Dodge Challenger beat out its competitors as the most-favored mid-size sporty car. (Also worth noting: The Dodge brand, overall, earned above average scores in this survey after posting the largest one-year improvement of any car brand.) And Hyundai, not known as a luxury brand beat out higher-priced mid-sized luxury cars from BMW and Jaguar.
The market research company surveyed 80,000 new car buyers after 90 days of ownership asking them to rate as many 90 different features of their vehicles as well as their overall satisfaction. The J.D. Power APEAL survey -- it stands for Automotive Performance, Execution and Layout -- provides a measure of just how much new car buyers like their cars and why. Here’s a look at how the competition shook out.
Sub-compact Car: Smart ForTwo
2nd place: Scion xD
3rd place: Honda Fit
The ForTwo's main selling point is its tiny size and its tiny fuel costs. About as long as most mid-size cars are wide, the ForTwo is a breeze to park on congested city streets.
The tiny two-seater beat out roomier cars like the Scion xD and Honda Fit. While it may not be the most practical choice for a lot of people, the ForTwo delivers what its buyers are looking for, said David Sargent, vice president for automotive research at J.D. Power.
Compact Car: Mini Cooper
2nd place: Volkswagen Jetta
3rd place: Mitsubishi Lancer
J.D. Power's APEAL tends to favor cars with a strong emotional attraction. Cars like the Mini Cooper certainly apply.
The Mini's quirky retro design carries over into an interior that features a speedometer the size of a pie mounted between the seats. Engineers at parent company BMW also gave the Mini ultra-responsive handling to match the eye-catching design.
"Owners really do find it fun to drive," said J.D. Power's David Sargent.
Compact Sporty Car: Volkswagen GTI
The GTI was the only car to score above average in this category. It's basically a sport-tuned, performance version of the Volkswagen Golf economy car. VW pits it against Japanese compacts like the Honda Civic Si.
Besides driving enjoyment, the GTI scored very well for interior quality. That's always a strong point for VW.
Compact Luxury Sport: Mercedes-Benz SLK-class
2nd place: Nissan Z
The sleek little SLK, with its folding hard top, borrows its arrow-nosed look from Mercedes' far more expensive SL cars. Besides the design, the SLK offers its buyers a fun drive and nice little comforts like an optional "air scarf" that blows warm air around occupants' heads to make top-down driving on cold days more tolerable.
Among owners, the SLK scored particularly well for its high-quality feel.
Entry Luxury: Volkswagen CC
2nd place: Cadillac CTS
3rd place: Audi A4/5
With the CC, Volkswagen takes the Passat up a couple of notches. Besides its dramatic swooping body lines, the interior also gets high-contrast two-tone treatment.
An optional 280-horsepower engine and 6-speed transmission add a dose of power to the car's responsive driving character.
Despite its low-slung roof design, owners really love the roomy interior of the CC. It also scored well for storage space and fuel economy.
Mid-size Sport: Dodge Challenger
2009 Dodge Challenger
2009 Dodge Challenger
A big win for the Chrysler Group, the Challenger beat the long-time favorite Ford Mustang as well as the Mitsubishi Eclipse in this category. In fact, it was the only car in its category to score above average.
The Challenger scored well for its interior as well for its performance. The fact that the Challenger is an all-new model also helps, said J.D. Power's David Sargent. New models, particularly ones that attract a lot of attention, tend to do well in this survey.
At the time this survey was done, the Chevrolet Camaro had not yet been released, so we'll have to wait until next year to see if the Challenger can hold on to its title.
Mid-size Luxury: Hyundai Genesis
2nd place: Jaguar XF
3rd place: BMW 5-series
You can almost hear the champagne corks popping at Hyundai headquarters. The economy-minded brand's move into the luxury segment beat entries from Jaguar and BMW in this survey.
The Genesis scored very well for its features, roominess and comfort, but the car's low price, relative to its rivals, was probably a factor.
"People feel that they're getting a pretty good deal here," said David Sargent of J.D. Power.
Large Luxury: Mercedes-Benz S-class
2nd place: Lexus LS
Mercedes-Benz has this category locked up. The S-class has won here each of the past three years.
"This is one vehicle that really hit the mark," said J.D. Power's David Sargent.
The S-class offers a long list of optional features, including massaging seats in the front and back, infra-red night-vision cameras and cruise control that automatically maintains a following distance at any speed. Of course, there's also the car's refined and powerful performance.
Mid-size Car: Volkswagen Passat
2nd place: Mazda6
3rd place: Honda Accord
It's hard to find a Volkswagen car that didn't top its category in this survey. Two versions of this car, the other being the CC, outscored competitors.
As always for VW, interior quality and fuel economy were high points.
Large Car: Nissan Maxima
2nd place: Pontiac G8
3rd place: Toyota Avalon
The redesigned Maxima scored big points for its interior. Owners also love the audio systems, seating and visibility.
Click here to see all of America's best-loved cars at CNNMoney.com
Friday, July 31, 2009
House Votes for $2 Billion Fund to Extend ‘Clunker’ Plan
From The New York Times:
By MATTHEW L. WALD
Published: July 31, 2009
WASHINGTON — The House of Representatives voted to provide an emergency $2 billion for the “cash for clunkers” program on Friday, and the White House declared the program very much alive, even though new-car shoppers appear to have already snapped up all the $1 billion that Congress originally appropriated for it.
The House shoved other business out of the way on its last day before the August recess to rush through a measure to address the cash shortage of the car program. The vote was 316 to 109, with significant support from Republicans as well as Democrats.
The Senate, which will be in session next week, will take up the program then. A spirited debate is likely, as some senators are expected to use the opportunity to push for tougher fuel-efficiency requirements. If the Senate does not go along with the House’s version, the House might have to return to work on a compromise.
The sudden legislative action was prompted by the overwhelming response to the program, formally known as the Car Allowance Rebate System, which its backers say has helped not only car-buyers but the struggling American automobile industry.
Earlier Friday, Robert Gibbs, the chief White House spokesman, offered assurances that the administration was looking for ways to continue the popular new program, which offers $3,500 to $4,500 for people who trade in an old car for a new one with higher fuel economy.
“If you were planning on going to buy a car this weekend using this program, the program continues to run,” he said. “If you meet the requirements of the program, the certificates will be honored.”
Mr. Gibbs declined to say how long the program could continue without an infusion of funds.
“We feel confident that we’ll have a solution that people can agree on moving forward, and that the program continues,” he said.
The $2 billion infusion approved by the House would come from money already set aside for an Energy Department’s loan guarantee program and give it to the rebate program.
“Consumers have spoken with their wallets,” Representative David R. Obey, Democrat of Wisconsin of chairman of the House Appropriations Committee, said in urging quick passage.
The panel’s ranking Republican, Jerry Lewis of California, complained that Democrats, who have a 256-to-178 majority in the House, were rushing the measure through with too little thought, let alone debate — “shoveling another $2 billion out the door,” in his words.
But in the end, there was enough support from Republican in states that rely on the auto industry to speed the measure along.
Before the House vote, Senator Carl Levin, Democrat of Michigan, said it was not clear how long funds for the program would last, “so people should go to their car dealers now if they want to take advantage of the program.
Representative Steve Israel, Democrat of New York, predicted that $2 billion would be enough until Congress returns in September. But he added, “there’s going to be a lot of confusion among consumers. We need to wrap this up today.”
The program has proved a boon to the battered auto industry as it struggles to regain its footing, drawing crowds of customers to some showrooms as dealers aggressively promoted the rebates in ads over the last week.
Representatives of the nation’s car dealers said Thursday that they had been told by the Transportation Department to stop offering the rebates because the funds had been quickly exhausted.
But a White House official then said the program had not been suspended, creating confusion about its status.
There was wide support for an additional appropriation for “cash for clunkers,” with members of the Michigan delegation in the forefront. But support was not unanimous and some members of Congress thought the requirements should be tightened.
Senators Dianne Feinstein, a California Democrat, and Susan Collins, a Maine Republican, said in a joint statement that “we will insist that any extension of the program requires that the minimum fuel economy improvement for newly purchased vehicles be at least two miles per gallon higher than it is under the enacted Clunkers program.” For cars, the current minimum improvement is five miles a gallon. And, they said, to help low-income car owners take part, they would include vouchers for fuel-efficient used vehicles.
But Representative Ed Markey of Massachusetts, one of the authors of the original bill, called for a simple extension. He declared Thursday night, “Cash for Clunkers may have run out of cash, but America’s consumers haven’t run out of clunkers.” He said it should be extended to cover 1 million vehicles, about four times the number covered so far.
Helene Cooper contributed reporting from Washington, and Micheline Maynard from Detroit.
By MATTHEW L. WALD
Published: July 31, 2009
WASHINGTON — The House of Representatives voted to provide an emergency $2 billion for the “cash for clunkers” program on Friday, and the White House declared the program very much alive, even though new-car shoppers appear to have already snapped up all the $1 billion that Congress originally appropriated for it.
The House shoved other business out of the way on its last day before the August recess to rush through a measure to address the cash shortage of the car program. The vote was 316 to 109, with significant support from Republicans as well as Democrats.
The Senate, which will be in session next week, will take up the program then. A spirited debate is likely, as some senators are expected to use the opportunity to push for tougher fuel-efficiency requirements. If the Senate does not go along with the House’s version, the House might have to return to work on a compromise.
The sudden legislative action was prompted by the overwhelming response to the program, formally known as the Car Allowance Rebate System, which its backers say has helped not only car-buyers but the struggling American automobile industry.
Earlier Friday, Robert Gibbs, the chief White House spokesman, offered assurances that the administration was looking for ways to continue the popular new program, which offers $3,500 to $4,500 for people who trade in an old car for a new one with higher fuel economy.
“If you were planning on going to buy a car this weekend using this program, the program continues to run,” he said. “If you meet the requirements of the program, the certificates will be honored.”
Mr. Gibbs declined to say how long the program could continue without an infusion of funds.
“We feel confident that we’ll have a solution that people can agree on moving forward, and that the program continues,” he said.
The $2 billion infusion approved by the House would come from money already set aside for an Energy Department’s loan guarantee program and give it to the rebate program.
“Consumers have spoken with their wallets,” Representative David R. Obey, Democrat of Wisconsin of chairman of the House Appropriations Committee, said in urging quick passage.
The panel’s ranking Republican, Jerry Lewis of California, complained that Democrats, who have a 256-to-178 majority in the House, were rushing the measure through with too little thought, let alone debate — “shoveling another $2 billion out the door,” in his words.
But in the end, there was enough support from Republican in states that rely on the auto industry to speed the measure along.
Before the House vote, Senator Carl Levin, Democrat of Michigan, said it was not clear how long funds for the program would last, “so people should go to their car dealers now if they want to take advantage of the program.
Representative Steve Israel, Democrat of New York, predicted that $2 billion would be enough until Congress returns in September. But he added, “there’s going to be a lot of confusion among consumers. We need to wrap this up today.”
The program has proved a boon to the battered auto industry as it struggles to regain its footing, drawing crowds of customers to some showrooms as dealers aggressively promoted the rebates in ads over the last week.
Representatives of the nation’s car dealers said Thursday that they had been told by the Transportation Department to stop offering the rebates because the funds had been quickly exhausted.
But a White House official then said the program had not been suspended, creating confusion about its status.
There was wide support for an additional appropriation for “cash for clunkers,” with members of the Michigan delegation in the forefront. But support was not unanimous and some members of Congress thought the requirements should be tightened.
Senators Dianne Feinstein, a California Democrat, and Susan Collins, a Maine Republican, said in a joint statement that “we will insist that any extension of the program requires that the minimum fuel economy improvement for newly purchased vehicles be at least two miles per gallon higher than it is under the enacted Clunkers program.” For cars, the current minimum improvement is five miles a gallon. And, they said, to help low-income car owners take part, they would include vouchers for fuel-efficient used vehicles.
But Representative Ed Markey of Massachusetts, one of the authors of the original bill, called for a simple extension. He declared Thursday night, “Cash for Clunkers may have run out of cash, but America’s consumers haven’t run out of clunkers.” He said it should be extended to cover 1 million vehicles, about four times the number covered so far.
Helene Cooper contributed reporting from Washington, and Micheline Maynard from Detroit.
Thursday, July 30, 2009
6 New Cars Worth Waiting For
From U.S. News and World Report
By Hamooda Shami
With the economy showing signs of life and plenty of great car deals to be had, many people may be more eager than ever to purchase a new car. A major added incentive has even appeared in the form of the federal government's Cash for Clunkers program, which offers up to a $4,500 rebate when you trade in your old car. It's quite the deal, but if you don't qualify and are still inclined to drop some cash on a new vehicle, here's a suggestion.
Wait. It may be tempting to head to the dealer today and walk out of there with a set of keys. But in this case, patience definitely has its rewards.
The automotive industry has witnessed the perfect storm over the last two years. Drastic drops in sales, unpredictable rises in gas prices, a punch-drunk economy trying to get its legs -- all of this has culminated in auto manufacturers being forced to make major modifications. Stagnant brands have been downsized and eliminated, while automakers have moved their focus from behemoth SUVS to small, fuel-efficient cars.
However, the time it takes for a car designed from scratch to make it into production is significant. Cars that have been in the works for the last year or two will only be rolling out on dealer lots starting next year and into 2011 and 2012. What that means is, eventually, the fallout from the automotive crisis will result in a whole slate of efficient, innovative cars making it to the market in true lemonade-out-of-lemons fashion. We've put together a list of our favorites. Start putting money aside now and you won't be sorry later.
Chevrolet Volt
Projected Release Date: Late 2010
When you're discussing anticipated autos, it would be poor form not to begin with the Chevrolet Volt. One of the most talked-about cars in the industry, it will be the first Extended-Range Electric Vehicle (E-REV) in mass production. The Volt is an electric car that employs a gasoline engine in order to expand its range. Price estimates place the Volt at around $40,000.
Ford Fiesta
Projected Release Date: Early 2010
Ford is taking a throwback approach to fuel efficiency with the nifty Fiesta. Instead of going with hybrid technology or a newfangled electric powertrain, the Ford Fiesta will simply be a small, lightweight car. In addition to being a lot cheaper to produce than its alternative-fuel contemporaries, it will match and surpass most of them in fuel economy. Pricing is unknown, but many expect it to be in the neighborhood of a lower-end Ford Focus.
Nissan EV-02
Projected Release Date: 2012
Gas-sipping cars are nice, but cars that don't use any gas at all are even better. Nissan hopes to be among the first to bring an affordable electric vehicle to production with its EV-02. Nissan has already made an EV mule available to the press (in the form of a Nissan Cube outfitted with components of the EV technology) for testing purposes. CNET says the "drivetrain was whisper quiet" and they were "quite impressed with the linear acceleration exhibited by the EV-02, and its willingness to move " Many details are yet to be revealed, such as the exterior, price and eventual name but for green drivers on a budget, the Nissan EV is an interesting proposition.
Chevrolet Spark
Projected Release Date: 2011
The second Chevy on our list, the Spark is the domestic answer to the Smart ForTwo. Where it has a leg up on the ForTwo is that it will be for four -- as in four passengers, and four doors for easy access. With a motorcycle-style instrument panel and a painfully cute exterior, the Spark is bound to have a large fan base. Pricing has not yet been announced -- though speculation is that it will be priced along the lines of the budget Chevy Aveo.
Chrysler Town & Country EV
Projected Release Date: Late 2010
Last fall, Chrysler shocked the industry when it unveiled a lineup of electric vehicles that are in development. While the Dodge Circuit has garnered the most attention for its mind-numbing performance and flashy styling, the Town & Country EV is innovative in its practicality. Most of the electric cars that are going to hit the streets are either sports coupes or miniature econo-boxes. The idea of an electric minivan that can transport the family while producing zero emissions sets the Town & Country EV apart from everything else in the works. Pricing information has not been released.
Scion iQ
Projected Release Date: Late 2010/Early 2011
The iQ is Toyota's attempt to take on the Smart ForTwo and the aforementioned Chevrolet Spark. To be released under their "alternative" brand, Scion, the iQ will feature a 3+1 seating arrangement (two in the front, one in the back) -- just don't expect to fit a full-sized adult in the rear seat. The price of the iQ hasn't been released as of yet, but expect it to be somewhere close to the $14,650 MSRP of the Scion xD.
By Hamooda Shami
With the economy showing signs of life and plenty of great car deals to be had, many people may be more eager than ever to purchase a new car. A major added incentive has even appeared in the form of the federal government's Cash for Clunkers program, which offers up to a $4,500 rebate when you trade in your old car. It's quite the deal, but if you don't qualify and are still inclined to drop some cash on a new vehicle, here's a suggestion.
Wait. It may be tempting to head to the dealer today and walk out of there with a set of keys. But in this case, patience definitely has its rewards.
The automotive industry has witnessed the perfect storm over the last two years. Drastic drops in sales, unpredictable rises in gas prices, a punch-drunk economy trying to get its legs -- all of this has culminated in auto manufacturers being forced to make major modifications. Stagnant brands have been downsized and eliminated, while automakers have moved their focus from behemoth SUVS to small, fuel-efficient cars.
However, the time it takes for a car designed from scratch to make it into production is significant. Cars that have been in the works for the last year or two will only be rolling out on dealer lots starting next year and into 2011 and 2012. What that means is, eventually, the fallout from the automotive crisis will result in a whole slate of efficient, innovative cars making it to the market in true lemonade-out-of-lemons fashion. We've put together a list of our favorites. Start putting money aside now and you won't be sorry later.
Chevrolet Volt
Projected Release Date: Late 2010
When you're discussing anticipated autos, it would be poor form not to begin with the Chevrolet Volt. One of the most talked-about cars in the industry, it will be the first Extended-Range Electric Vehicle (E-REV) in mass production. The Volt is an electric car that employs a gasoline engine in order to expand its range. Price estimates place the Volt at around $40,000.
Ford Fiesta
Projected Release Date: Early 2010
Ford is taking a throwback approach to fuel efficiency with the nifty Fiesta. Instead of going with hybrid technology or a newfangled electric powertrain, the Ford Fiesta will simply be a small, lightweight car. In addition to being a lot cheaper to produce than its alternative-fuel contemporaries, it will match and surpass most of them in fuel economy. Pricing is unknown, but many expect it to be in the neighborhood of a lower-end Ford Focus.
Nissan EV-02
Projected Release Date: 2012
Gas-sipping cars are nice, but cars that don't use any gas at all are even better. Nissan hopes to be among the first to bring an affordable electric vehicle to production with its EV-02. Nissan has already made an EV mule available to the press (in the form of a Nissan Cube outfitted with components of the EV technology) for testing purposes. CNET says the "drivetrain was whisper quiet" and they were "quite impressed with the linear acceleration exhibited by the EV-02, and its willingness to move " Many details are yet to be revealed, such as the exterior, price and eventual name but for green drivers on a budget, the Nissan EV is an interesting proposition.
Chevrolet Spark
Projected Release Date: 2011
The second Chevy on our list, the Spark is the domestic answer to the Smart ForTwo. Where it has a leg up on the ForTwo is that it will be for four -- as in four passengers, and four doors for easy access. With a motorcycle-style instrument panel and a painfully cute exterior, the Spark is bound to have a large fan base. Pricing has not yet been announced -- though speculation is that it will be priced along the lines of the budget Chevy Aveo.
Chrysler Town & Country EV
Projected Release Date: Late 2010
Last fall, Chrysler shocked the industry when it unveiled a lineup of electric vehicles that are in development. While the Dodge Circuit has garnered the most attention for its mind-numbing performance and flashy styling, the Town & Country EV is innovative in its practicality. Most of the electric cars that are going to hit the streets are either sports coupes or miniature econo-boxes. The idea of an electric minivan that can transport the family while producing zero emissions sets the Town & Country EV apart from everything else in the works. Pricing information has not been released.
Scion iQ
Projected Release Date: Late 2010/Early 2011
The iQ is Toyota's attempt to take on the Smart ForTwo and the aforementioned Chevrolet Spark. To be released under their "alternative" brand, Scion, the iQ will feature a 3+1 seating arrangement (two in the front, one in the back) -- just don't expect to fit a full-sized adult in the rear seat. The price of the iQ hasn't been released as of yet, but expect it to be somewhere close to the $14,650 MSRP of the Scion xD.
Thursday, July 16, 2009
Cars Hurt Most by the Recession
From U.S. News and World Report
By Rick Newman
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
By Rick Newman
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
Monday, July 13, 2009
America's Most Overpriced Cars
From Forbes:
By Hannah Elliott
These days, car buyers have the upper hand when they walk into the showroom. They have access to dealer invoice prices and day supply data on the Internet--not to mention a recession that has spurred lowest-ever financing deals and unprecedented cash-back incentives.
But that doesn't mean every vehicle is a bargain; plenty are still overpriced. Right now, according to Vincentric, a firm that tracks vehicle ownership costs for the auto industry, several cars on sale now have market values far below their manufacturer's suggested retail price.
The Jeep Liberty, for example, has a true market value 20.9% lower than its MSRP; the Dodge Ram 2500 is worth 26% less; and the Chevrolet Trailblazer is worth 16.4% less than its MSRP.
Those three models, in particular, tell the story of the most overpriced autos currently on the market: Our entire list is comprised of vehicles manufactured by Detroit's Big Three. No foreign brands make the list, as those automakers' cars tend to be priced fairly when considering supply and demand as well as their high rankings on consumer-satisfaction surveys.
Behind the Numbers
To find America's most overpriced vehicles, we first looked at market price figures supplied by Vincentric. These are updated each month to reflect marketplace inventory, demand, rebates and incentives, and to represent the price that a buyer typically pays. We ruled out any vehicles where the gap between market price and MSRP was less than 10%--a natural breaking point in the data that left a list of about 150 overpriced vehicles to pare down.
We then used two pieces of customer-satisfaction information to better determine whether certain vehicles meet the expectations their brands promise--essentially, whether they justify their sticker price.
We used J.D. Power's 2008 Automotive Performance, Execution and Layout (APEAL) survey results, and ruled out vehicles that won their segments or scored better than two-and-a-half stars out of five: Any vehicle that scores less than 50% is likely not delivering on the thousands a consumer must shell out to buy it.
The list was further shortened by Consumer Reports' Owner Satisfaction results, data from a survey that asks owners--considering a wide range of factors, including price--whether they would buy a particular car again. Vehicles that scored less than 50 (on a scale of 100) made our list. We then ranked the remaining 15 vehicles by the amount overpriced (the difference between market price and MSRP).
The three most overpriced cars are the Dodge Ram pickup (worth 26% less than its MSRP), Mercury Grand Marquis (worth 21.4% less) and Jeep Liberty (worth 20.9% less).
Close the Gap
When it comes to the price of a car, the most important factor to consider is market value vs. MSRP, says Dave Freed, a managing partner for Vincentric. Even big cash rebates or 0% financing won't ensure you're getting the best deal on the lot, he says, and Vincentric's true-value information should give you a sense of how tough a negotiator you can be.
After that, research the top factors that cause a price to balloon out of proportion: availability, depreciation and gas prices. These points, in particular, are why American-made models comprise our entire list. Fleet sales and overproduction by GM and Chrysler has led to a dilution of resale value--and to dealers' lots overflowing with identical models. The Dodge Nitro is one of the worst offenders of this, according to Ward's, an automotive data and analysis firm.
Some cars tend to be overpriced partly because of their weakened brand image, which can lead to poor resale value. Vehicles that have this problem include the $17,430 GMC Canyon pickup truck, which has a resale value of 11.9% less than its MSRP; as well as GMC Envoy, with a resale value of 16.1% less than its MSRP.
"Where you might pay a higher price for a Honda Civic, you get it back at the end because it has a high resale value," says David Zoia, the editorial director for Ward's.
Lack of Luxury
While luxury vehicles cost thousands more than their non-luxury counterparts, none made our list. They all invariably receive extremely high satisfaction rates and APEAL scores. A Mercedes-Benz CL550 may cost a lot ($107,900 to be exact), and the E-Class costs a more reasonable $48,000, but the people who drive these cars think they're worth the price. It doesn't hurt that Mercedes keeps a tight rein on production levels too--you won't see a CL550 at your local Enterprise office anytime soon.
The $29,270 Mercury Grand Marquis sedan, however, is one to watch. Its market value is 21.4% lower than its MSRP, and it received low APEAL (2) and satisfaction (43) scores as well. So someone with her heart set on this vehicle shouldn't--in theory--pay more than roughly $23,000.
The Grand Marquis is the victim of a general move in the market away from larger, heavier sedans, says James Clark, general manager of Automotive Lease Guide, a California company that compiles automotive residual values. Those cars get worse gas mileage and cost more to insure, meaning they cost more to own in the long run. Similarly, U.S. consumers' move away from trucks and SUVs--also prominent on our list--has driven down those vehicles' true market values as well.
"It's a shift that we've experienced this past year due to the high gas prices we had last summer," says Clark. "With trucks and SUVs, a lot of those are showing up at the top of the list in terms of the highest cost to own."
America's Five Most Overpriced Cars
1. Dodge Ram 2500
2. Mercury Grand Marquis
3. Jeep Liberty
4. Dodge Nitro
5. Dodge Durango
By Hannah Elliott
These days, car buyers have the upper hand when they walk into the showroom. They have access to dealer invoice prices and day supply data on the Internet--not to mention a recession that has spurred lowest-ever financing deals and unprecedented cash-back incentives.
But that doesn't mean every vehicle is a bargain; plenty are still overpriced. Right now, according to Vincentric, a firm that tracks vehicle ownership costs for the auto industry, several cars on sale now have market values far below their manufacturer's suggested retail price.
The Jeep Liberty, for example, has a true market value 20.9% lower than its MSRP; the Dodge Ram 2500 is worth 26% less; and the Chevrolet Trailblazer is worth 16.4% less than its MSRP.
Those three models, in particular, tell the story of the most overpriced autos currently on the market: Our entire list is comprised of vehicles manufactured by Detroit's Big Three. No foreign brands make the list, as those automakers' cars tend to be priced fairly when considering supply and demand as well as their high rankings on consumer-satisfaction surveys.
Behind the Numbers
To find America's most overpriced vehicles, we first looked at market price figures supplied by Vincentric. These are updated each month to reflect marketplace inventory, demand, rebates and incentives, and to represent the price that a buyer typically pays. We ruled out any vehicles where the gap between market price and MSRP was less than 10%--a natural breaking point in the data that left a list of about 150 overpriced vehicles to pare down.
We then used two pieces of customer-satisfaction information to better determine whether certain vehicles meet the expectations their brands promise--essentially, whether they justify their sticker price.
We used J.D. Power's 2008 Automotive Performance, Execution and Layout (APEAL) survey results, and ruled out vehicles that won their segments or scored better than two-and-a-half stars out of five: Any vehicle that scores less than 50% is likely not delivering on the thousands a consumer must shell out to buy it.
The list was further shortened by Consumer Reports' Owner Satisfaction results, data from a survey that asks owners--considering a wide range of factors, including price--whether they would buy a particular car again. Vehicles that scored less than 50 (on a scale of 100) made our list. We then ranked the remaining 15 vehicles by the amount overpriced (the difference between market price and MSRP).
The three most overpriced cars are the Dodge Ram pickup (worth 26% less than its MSRP), Mercury Grand Marquis (worth 21.4% less) and Jeep Liberty (worth 20.9% less).
Close the Gap
When it comes to the price of a car, the most important factor to consider is market value vs. MSRP, says Dave Freed, a managing partner for Vincentric. Even big cash rebates or 0% financing won't ensure you're getting the best deal on the lot, he says, and Vincentric's true-value information should give you a sense of how tough a negotiator you can be.
After that, research the top factors that cause a price to balloon out of proportion: availability, depreciation and gas prices. These points, in particular, are why American-made models comprise our entire list. Fleet sales and overproduction by GM and Chrysler has led to a dilution of resale value--and to dealers' lots overflowing with identical models. The Dodge Nitro is one of the worst offenders of this, according to Ward's, an automotive data and analysis firm.
Some cars tend to be overpriced partly because of their weakened brand image, which can lead to poor resale value. Vehicles that have this problem include the $17,430 GMC Canyon pickup truck, which has a resale value of 11.9% less than its MSRP; as well as GMC Envoy, with a resale value of 16.1% less than its MSRP.
"Where you might pay a higher price for a Honda Civic, you get it back at the end because it has a high resale value," says David Zoia, the editorial director for Ward's.
Lack of Luxury
While luxury vehicles cost thousands more than their non-luxury counterparts, none made our list. They all invariably receive extremely high satisfaction rates and APEAL scores. A Mercedes-Benz CL550 may cost a lot ($107,900 to be exact), and the E-Class costs a more reasonable $48,000, but the people who drive these cars think they're worth the price. It doesn't hurt that Mercedes keeps a tight rein on production levels too--you won't see a CL550 at your local Enterprise office anytime soon.
The $29,270 Mercury Grand Marquis sedan, however, is one to watch. Its market value is 21.4% lower than its MSRP, and it received low APEAL (2) and satisfaction (43) scores as well. So someone with her heart set on this vehicle shouldn't--in theory--pay more than roughly $23,000.
The Grand Marquis is the victim of a general move in the market away from larger, heavier sedans, says James Clark, general manager of Automotive Lease Guide, a California company that compiles automotive residual values. Those cars get worse gas mileage and cost more to insure, meaning they cost more to own in the long run. Similarly, U.S. consumers' move away from trucks and SUVs--also prominent on our list--has driven down those vehicles' true market values as well.
"It's a shift that we've experienced this past year due to the high gas prices we had last summer," says Clark. "With trucks and SUVs, a lot of those are showing up at the top of the list in terms of the highest cost to own."
America's Five Most Overpriced Cars
1. Dodge Ram 2500
2. Mercury Grand Marquis
3. Jeep Liberty
4. Dodge Nitro
5. Dodge Durango
Sunday, July 5, 2009
Blazing a new trail for a muscle car
Appeared in Daily Report, Monday, July 06, 2009
Blazing a new trail for a muscle car
The 2009 Dodge challenger picks up where its '70s predecessor left off, but adds a few modern tweaks
By Karl W. Ritzler, Special to the Daily Report
2009 Dodge Challenger:
Buy this car if: You want a trip back down memory lane with up-to-date technology.
Not for you if: Muscle cars are a turn off.
Look at me factor: In red, it looks like an invitation for a ticket.
Competitors: Chevrolet Camaro, Ford Mustang
What others are saying:
“The 2009 Dodge Challenger lunges off the corners and swallows the straights, its sustained thrust complemented by long riffs of resonant mechanical music.”—Edmunds.com
“While it's here, we'll enjoy the Challenger as a successful exercise in retro styling and Hemi muscle.”—Car & Driver
“What a fun, fun, hot car. It drives as fun as it looks, and that's pretty damn impressive.”—Automobile Magazine
The inferno red 2009 Dodge Challenger is a good ol' boy magnet.
From the thumbs up outside a McDonald's to a lively discussion outside a Wal-Mart about the Challenger's Hemi engine and what she'll do on the highway, guys gravitated to the car that's a faithful successor to the '70s muscle car.
Not everyone knew what they were looking at, though. Both a mom at a mall parking lot and a knowledgeable car guy both thought it was a Ford Mustang at first glance.
Right era, wrong car.
The Challenger in the new-for-2009 R/T (road and track) trim with the 5.7-liter, 370-horsepower Hemi V-8 under the hood evokes the pure muscle of earlier Challengers that toed the line with muscular Mustangs and uncaged Camaros.
Dodge's timing is nearly perfect, with the revived Camaro due out soon and the Mustang seeing its own revival. The Big 3 of Detroit's muscle car era are at it again. It's almost enough to make you forget about the nasty realities of expensive gas and automakers' bankruptcy.
The Challenger also comes in a new, wimpy 250-horsepower V-6, if you are worried about the price of gas. If not, the holdover SRT8 from '08 is still available with its 6.1-liter, 425-hp V-8.
Tune the satellite radio—a distinct upgrade from earlier times—to the '70s music channel, and the picture is complete, right down to the rumble of that luscious Hemi.
Not everything is out of the '70s, however. Start with the Challenger's profile. Below the beltline, it has the look any guy would want—what he had in the '70s. The front is that classic bandit look, with the “mask” wrapping around the headlights and grille. An air dam and fog lights reinforce the aggressive look.
The taillights are full width, topping the dual exhausts and tucked beneath a spoiler that looks like it really belongs there.
The greenhouse, however, is 21st century. It has the low look of contemporary Mopar products, giving the car an overall sleekness that one-ups its predecessor. The driver does pay a price, however, with reduced visibility.
The Challenger is built on the same platform at the Chrysler 300 and Charger sedans, but the wheelbase is four inches shorter than the Charger.
Dodge wants to make sure everyone knows there's a Hemi under the hood with bold lettering along the scoop line. Switch on the ignition, and it's a nostalgic trip back to the muscle car era. And the rumble from the exhaust rekindles the memory of 50-cent-a-gallon gas.
Stomping on the accelerator is satisfying, especially if you're next to an unsuspecting BMW. Handling is pure muscle—crisp and sure and powerful. Straight-line power is plentiful, if not race-track fast. Dodge claims zero-to-60 times of less than 6 seconds with the Hemi-equipped Challenger. But unlike its ancestor, the new Challenger is much better able to handle tight turns.
The engine is matched to a five-speed automatic transmission, but a six-speed manual is available.
Challenger buyers aren't necessarily worried about fuel economy. It's OK at 16 mpg city and 25 mpg highway, definitely on the low side for what the EPA considers a compact car.
Inside, the sport bucket seats are supportive. The black plastic and cloth and touches of chrome have been described as bland. There's no Euro, techy feel to the inside of the Challenger. Besides not being overpowered by gizmos and gadgets, the climate and audio controls are clearly marked and easy to use. Even the steering wheel stalks are uncluttered.
Don't plan on taking the gang for a ride in the Challenger, though. There's room in back only for a child car seat or a duffle bag for the gym. The trunk, however, is enormous. The 60/40 split back seat folds down for even more room, up to a maximum of 16.2 cubic feet.
Standard equipment on the R/T package includes side curtain front and rear air bags, stability and traction control, antilock brakes, air conditioning, tachometer, AM/FM/CD/MP3 audio, 18-inch aluminum wheels, performance tires and halogen headlights.
The R/T has a base price of $29,320, plus $675 destination charge. The test vehicle had only one option, satellite radio, at $195. But with the difficulties faced by the auto industry and Chrysler in particular, look for a deal.
Karl W. Ritzler is a freelance contributor to the Daily Report.
Blazing a new trail for a muscle car
The 2009 Dodge challenger picks up where its '70s predecessor left off, but adds a few modern tweaks
By Karl W. Ritzler, Special to the Daily Report
2009 Dodge Challenger:
Buy this car if: You want a trip back down memory lane with up-to-date technology.
Not for you if: Muscle cars are a turn off.
Look at me factor: In red, it looks like an invitation for a ticket.
Competitors: Chevrolet Camaro, Ford Mustang
What others are saying:
“The 2009 Dodge Challenger lunges off the corners and swallows the straights, its sustained thrust complemented by long riffs of resonant mechanical music.”—Edmunds.com
“While it's here, we'll enjoy the Challenger as a successful exercise in retro styling and Hemi muscle.”—Car & Driver
“What a fun, fun, hot car. It drives as fun as it looks, and that's pretty damn impressive.”—Automobile Magazine
The inferno red 2009 Dodge Challenger is a good ol' boy magnet.
From the thumbs up outside a McDonald's to a lively discussion outside a Wal-Mart about the Challenger's Hemi engine and what she'll do on the highway, guys gravitated to the car that's a faithful successor to the '70s muscle car.
Not everyone knew what they were looking at, though. Both a mom at a mall parking lot and a knowledgeable car guy both thought it was a Ford Mustang at first glance.
Right era, wrong car.
The Challenger in the new-for-2009 R/T (road and track) trim with the 5.7-liter, 370-horsepower Hemi V-8 under the hood evokes the pure muscle of earlier Challengers that toed the line with muscular Mustangs and uncaged Camaros.
Dodge's timing is nearly perfect, with the revived Camaro due out soon and the Mustang seeing its own revival. The Big 3 of Detroit's muscle car era are at it again. It's almost enough to make you forget about the nasty realities of expensive gas and automakers' bankruptcy.
The Challenger also comes in a new, wimpy 250-horsepower V-6, if you are worried about the price of gas. If not, the holdover SRT8 from '08 is still available with its 6.1-liter, 425-hp V-8.
Tune the satellite radio—a distinct upgrade from earlier times—to the '70s music channel, and the picture is complete, right down to the rumble of that luscious Hemi.
Not everything is out of the '70s, however. Start with the Challenger's profile. Below the beltline, it has the look any guy would want—what he had in the '70s. The front is that classic bandit look, with the “mask” wrapping around the headlights and grille. An air dam and fog lights reinforce the aggressive look.
The taillights are full width, topping the dual exhausts and tucked beneath a spoiler that looks like it really belongs there.
The greenhouse, however, is 21st century. It has the low look of contemporary Mopar products, giving the car an overall sleekness that one-ups its predecessor. The driver does pay a price, however, with reduced visibility.
The Challenger is built on the same platform at the Chrysler 300 and Charger sedans, but the wheelbase is four inches shorter than the Charger.
Dodge wants to make sure everyone knows there's a Hemi under the hood with bold lettering along the scoop line. Switch on the ignition, and it's a nostalgic trip back to the muscle car era. And the rumble from the exhaust rekindles the memory of 50-cent-a-gallon gas.
Stomping on the accelerator is satisfying, especially if you're next to an unsuspecting BMW. Handling is pure muscle—crisp and sure and powerful. Straight-line power is plentiful, if not race-track fast. Dodge claims zero-to-60 times of less than 6 seconds with the Hemi-equipped Challenger. But unlike its ancestor, the new Challenger is much better able to handle tight turns.
The engine is matched to a five-speed automatic transmission, but a six-speed manual is available.
Challenger buyers aren't necessarily worried about fuel economy. It's OK at 16 mpg city and 25 mpg highway, definitely on the low side for what the EPA considers a compact car.
Inside, the sport bucket seats are supportive. The black plastic and cloth and touches of chrome have been described as bland. There's no Euro, techy feel to the inside of the Challenger. Besides not being overpowered by gizmos and gadgets, the climate and audio controls are clearly marked and easy to use. Even the steering wheel stalks are uncluttered.
Don't plan on taking the gang for a ride in the Challenger, though. There's room in back only for a child car seat or a duffle bag for the gym. The trunk, however, is enormous. The 60/40 split back seat folds down for even more room, up to a maximum of 16.2 cubic feet.
Standard equipment on the R/T package includes side curtain front and rear air bags, stability and traction control, antilock brakes, air conditioning, tachometer, AM/FM/CD/MP3 audio, 18-inch aluminum wheels, performance tires and halogen headlights.
The R/T has a base price of $29,320, plus $675 destination charge. The test vehicle had only one option, satellite radio, at $195. But with the difficulties faced by the auto industry and Chrysler in particular, look for a deal.
Karl W. Ritzler is a freelance contributor to the Daily Report.
Monday, June 22, 2009
Study: Detroit lifts quality but Toyota still king
From The Associated Press:
By DAN STRUMPF, AP Auto Writer
NEW YORK – Ford, General Motors and Chrysler have made strides in new vehicle quality over the last year, but they still lag behind their foreign competitors, according to a closely watched study released Monday by J.D. Power and Associates.
The initial quality of 2009 model year vehicles sold by the Detroit Three improved by an average of 10 percent from last year, the marketing and consulting company said. Industrywide, scores improved an average of 8 percent.
"The Detroit automakers are keeping their focus on designing and building high-quality vehicles, which is a precondition for long-term success," said David Sargent, vice president of automotive research at J.D. Power, in a statement.
Lexus, Toyota Motor Corp.'s luxury line, was the top brand in J.D. Power's initial quality study, an annual survey of vehicle owners that measures mechanical and design problems in the first 90 days of ownership.
Porsche was the No. 2 brand, followed by GM's Cadillac, then Hyundai and Honda.
Toyota, which supplanted General Motors Corp. as the world's largest automaker last year, also swept 10 vehicle segment awards. Its assembly facility in Higashi-Fuji, Japan, that builds the Lexus SC 430 and the Toyota Corolla took the J.D. Power's top plant award.
The worst-performing brand was Mini, with owners reporting 165 problems per 100 vehicles. Though Chrysler's scores improved year over year, it had no brands above the industry average. It tied for one segment award, with its PT Cruiser Wagon sharing the top award in the compact activity vehicle segment with Honda's CR-V. Chrysler, however, is discontinuing the car.
Cadillac and Chevrolet were GM's only two brands whose 2009 models performed above average. The four brands GM is purging under Chapter 11 bankruptcy protection — Pontiac, Saturn, Hummer and Saab — were the company's worst rated. The Chevrolet TrailBlazer and GMC Yukon SUVs were rated best in their segments.
Jamie Hresko, GM's vice president for global quality, said the automaker has worked hard to improve vehicle quality over the last five years. Chevrolet and Cadillac account for 70 percent of GM's volume, he said, and top marks for those segments are an indication the effort is paying off.
"Is it where we need to be? No," Hresko said. "To have our core brands — Cadillac and Chevrolet — be on par with Toyota, we have reached a level of quality that will allow us to change perceptions."
Ford Motor Co., the only major U.S. automaker that has not filed for bankruptcy protection or accepted government aid, also saw scores improve for three of its four brands: Ford, Mercury and Volvo. But its Lincoln brand's score fell, and only Ford and Mercury performed above the industry average.
The average industry score improved to 108 problems per 100 vehicles, down from 118 in 2008.
J.D. Power credited the improvement to several well-received new models that were launched in 2009. It said vehicles like Hyundai's Genesis, Kia's Borrego, Toyota's Venza and Volkswagen's CC performed better than their segment averages. Several redesigned 2009 models also scored well, J.D. Power said.
The scores come during a tumultuous time for the auto industry, with sales at their worst level in decades and taxpayers stuck funding the restructuring of GM and Chrysler Group LLC to the tune of billions of dollars. Although the two automakers have been pummeled by the economic crisis, many analysts have complained that a shortage of high-quality small car offerings has hobbled their performance in the down market.
GM has several new, small vehicles on the way that industry analysts say should help it better compete with established offerings from Toyota, Honda and other foreign competitors. It plans to start building the subcompact Chevrolet Cruze next year and says it will get about 40 miles per gallon. It also plans to sell the Chevrolet Spark minicar in the U.S. in 2011.
The road may be tougher for Chrysler. Cars like the sporty 500 made by its new owner, Italy's Fiat Group SpA, won't make it to the U.S. until late next year. The Auburn Hills, Mich., company plans to roll out new versions of its popular Jeep Grand Cherokee SUV and Chrysler 300 large sedan by the end of next year, along with a rechargeable electric vehicle, but these plans likely have been delayed by the bankruptcy process.
J.D. Power's rankings were based on questionnaires from 80,900 people who bought or leased new 2009 vehicles between February and May. The questionnaires ask 228 questions on issues from handling, braking and engine trouble, to seat comfort and stereo systems.
The rankings are closely watched by automakers and consumers, and are frequently used in advertising. However, some critics question whether they show any real statistical difference between automakers. Mini's ranking, for example, equates to 1.65 problems per vehicle. Top-performer Lexus had 84 problems per 100 vehicles, or 0.84 per vehicle. So on average, less than one problem per vehicle separates the best brand from the worst.
By DAN STRUMPF, AP Auto Writer
NEW YORK – Ford, General Motors and Chrysler have made strides in new vehicle quality over the last year, but they still lag behind their foreign competitors, according to a closely watched study released Monday by J.D. Power and Associates.
The initial quality of 2009 model year vehicles sold by the Detroit Three improved by an average of 10 percent from last year, the marketing and consulting company said. Industrywide, scores improved an average of 8 percent.
"The Detroit automakers are keeping their focus on designing and building high-quality vehicles, which is a precondition for long-term success," said David Sargent, vice president of automotive research at J.D. Power, in a statement.
Lexus, Toyota Motor Corp.'s luxury line, was the top brand in J.D. Power's initial quality study, an annual survey of vehicle owners that measures mechanical and design problems in the first 90 days of ownership.
Porsche was the No. 2 brand, followed by GM's Cadillac, then Hyundai and Honda.
Toyota, which supplanted General Motors Corp. as the world's largest automaker last year, also swept 10 vehicle segment awards. Its assembly facility in Higashi-Fuji, Japan, that builds the Lexus SC 430 and the Toyota Corolla took the J.D. Power's top plant award.
The worst-performing brand was Mini, with owners reporting 165 problems per 100 vehicles. Though Chrysler's scores improved year over year, it had no brands above the industry average. It tied for one segment award, with its PT Cruiser Wagon sharing the top award in the compact activity vehicle segment with Honda's CR-V. Chrysler, however, is discontinuing the car.
Cadillac and Chevrolet were GM's only two brands whose 2009 models performed above average. The four brands GM is purging under Chapter 11 bankruptcy protection — Pontiac, Saturn, Hummer and Saab — were the company's worst rated. The Chevrolet TrailBlazer and GMC Yukon SUVs were rated best in their segments.
Jamie Hresko, GM's vice president for global quality, said the automaker has worked hard to improve vehicle quality over the last five years. Chevrolet and Cadillac account for 70 percent of GM's volume, he said, and top marks for those segments are an indication the effort is paying off.
"Is it where we need to be? No," Hresko said. "To have our core brands — Cadillac and Chevrolet — be on par with Toyota, we have reached a level of quality that will allow us to change perceptions."
Ford Motor Co., the only major U.S. automaker that has not filed for bankruptcy protection or accepted government aid, also saw scores improve for three of its four brands: Ford, Mercury and Volvo. But its Lincoln brand's score fell, and only Ford and Mercury performed above the industry average.
The average industry score improved to 108 problems per 100 vehicles, down from 118 in 2008.
J.D. Power credited the improvement to several well-received new models that were launched in 2009. It said vehicles like Hyundai's Genesis, Kia's Borrego, Toyota's Venza and Volkswagen's CC performed better than their segment averages. Several redesigned 2009 models also scored well, J.D. Power said.
The scores come during a tumultuous time for the auto industry, with sales at their worst level in decades and taxpayers stuck funding the restructuring of GM and Chrysler Group LLC to the tune of billions of dollars. Although the two automakers have been pummeled by the economic crisis, many analysts have complained that a shortage of high-quality small car offerings has hobbled their performance in the down market.
GM has several new, small vehicles on the way that industry analysts say should help it better compete with established offerings from Toyota, Honda and other foreign competitors. It plans to start building the subcompact Chevrolet Cruze next year and says it will get about 40 miles per gallon. It also plans to sell the Chevrolet Spark minicar in the U.S. in 2011.
The road may be tougher for Chrysler. Cars like the sporty 500 made by its new owner, Italy's Fiat Group SpA, won't make it to the U.S. until late next year. The Auburn Hills, Mich., company plans to roll out new versions of its popular Jeep Grand Cherokee SUV and Chrysler 300 large sedan by the end of next year, along with a rechargeable electric vehicle, but these plans likely have been delayed by the bankruptcy process.
J.D. Power's rankings were based on questionnaires from 80,900 people who bought or leased new 2009 vehicles between February and May. The questionnaires ask 228 questions on issues from handling, braking and engine trouble, to seat comfort and stereo systems.
The rankings are closely watched by automakers and consumers, and are frequently used in advertising. However, some critics question whether they show any real statistical difference between automakers. Mini's ranking, for example, equates to 1.65 problems per vehicle. Top-performer Lexus had 84 problems per 100 vehicles, or 0.84 per vehicle. So on average, less than one problem per vehicle separates the best brand from the worst.
Saturday, June 20, 2009
Used Car Lemons and Lemonade
From US News & World Report:
By Jada A. Graves
Knowing where to place your bets with a used car can be tricky. The horror stories are all too common -- the pieced-together parts, the unexplained and unexpected sounds and smells, the bodies in the trunk ...
Okay. Maybe the last one isn't quite as common.
But buying used doesn't have to be such a gamble if you do your research. There's a wealth of online information available that can make it easier to avoid a lemon. With the federal government's vehicle defect notices and J.D. Power and Associates' reliability data the most common mechanical issues are all easy to trace. In addition, U.S. News' used car listings make the search easier for the best used car options in your area.
But we've already done at that research to help you narrow down your choices. Check out our list of the best and worst used cars. Remember, while this list is a good start, all used cars are different. Before buying, make sure you give any used car -- even one on our best list -- a thorough inspection.
Worst Used Cars:
GMC Canyon
The GMC Canyon successfully balances an imposing stance on the highway while providing coddling comfort in the cab. Reviewers also praise the 2009 model's new V8 engine for helping the Canyon effectively compete with meatier trucks in its segment. But Consumer Reports cites the Canyon's troubled reliability history as the reason it makes their Worst Used Cars list. According to Consumer Guide, Canyons from 2004 through 2008 are "underpowered for anything other than daily commuting," with pronounced road noise and a tiresome ride depending on the trim. Consumer Guide says some commonly reported problems for these model years include electrical wiring problems with the OnStar system and weak exhaust valve springs that could cause the engine to misfire.
Chrysler Sebring
As Chrysler dealerships close across the country, you can expect unbelievable prices on both new and used models of the Sebring sedan or convertible. It's just too bad that shaky reliability, poor cabin quality and disappointing performance lead most reviewers to say the Sebring was never a great buy to begin with. Consumer Reports chose the Sebring convertible as one of the Worst Used Cars based on reliability data from vehicles from 1999 through 2008. Meanwhile, CarComplaints.com shows many Sebring owners have reported problems with the engine, air conditioning and heating systems and airbags on both the 2001 and 2002 Sebrings.
Ford Explorer
The current generation of the Ford Explorer ranks mid-pack among affordable midsize SUVs, and is praised for its off-roading capabilities and a spacious cabin. But according to CarComplaints.com, car owners have recounted problems with the third generation of the Explorer -- made from 2002 to 2005 -- for cracked window panels and faulty transmissions. Consumer Guide also recounts this generation of Explorer has commonly had problems with coolant and oil leaks, rattling timing belts and ticking valves in the 4.6-liter engines.
Dodge Intrepid
The Intrepid was a Consumer Guide Best Buy or Recommended Pick almost every year of its 1998 to 2004 run. Reviewers liked the sedan's passenger and cargo room and praised the nimble handling, especially for the car's size. But a large number of Intrepid owners have reported engine troubles with the 2000 model, and the federal government previously recalled Intrepids for faulty airbags and seatbelts. Consumer Guide notes the Intrepid's most commonly reported mechanical problems include electrical problems with the cabin lights and headlights, plus an engine tapping noise when driving a V6 Intrepid.
Pontiac Aztek
The Aztek's brief four-year run in Pontiac's lineup is a testament to this midsize crossover SUV's unpopularity. We could fudge it and say that disdain for the SUV had to do with its low gas mileage or lacking cabin quality, but truly, critics say the biggest problem with the Aztek was its ungainly dimensions. According to Britain's Daily Telegraph, the Aztek's obtuse shape was "proof that Americans do ugly better than anyone else." On our side of the Atlantic, Consumer Reports lists the Aztek on its Worst Used Cars and TIME Magazine dinged the 2001 model as one of its "Worst Cars of All Time." According to TIME's writers, "This car could not have been more instantly hated it if had a Swastika tattoo on its forehead. ... a bulky, plastic-clad mess. ... The Aztek violates one of the principal rules of car design: We like cars that look like us." But if you can get around the Aztek's unconventional look, reviewers admit the SUV is a competent performer with stable handling and minimal road noise.
Best Used Cars:
2009 Honda Civic
2009 Honda Civic
Honda Civic
There's a reason the Civic shows up on many auto experts "Best" lists: When it comes to outstanding quality, safety and dependability, there are few better cars. Cars.com notes the Civic is one the most popular used cars sold from July to September of 2008, while Consumer Reports chose it as the best used car in the small car class because its "reliable, economical and fun to drive." CarsComplaints.com finds that some Civic owners have had transmission problems with the 2001 and 2002 models, but the current generation Civic, first sold in 2006, has a strong reliability record and few federal government defect notices.
Subaru Impreza
If you're looking for a distinctive design or thrills on the road, the Impreza probably isn't your first choice. But critics say the car is a safe choice, literally and figuratively. Writers praise the Impreza's secure dynamics with standard all-wheel drive, and highlight the safety features and strong safety scores from the federal government and insurance industry. J.D. Power and Associates lists the 2006 Subie Impreza as a top pick in its 2009 Vehicle Dependability Survey. Although Cars.com reports the 2009 Impreza has one of the best resale values (which means finding one that's used and cheap could be a challenge), Edmunds suggests an Impreza made between 1998 and 2001 as one of the best used cars for those on a tighter budget. "We found high-mileage (150,000-plus) 2.5RS models starting at around $4,500 on Auto Trader," they report. There's an even better deal in U.S. News' used car listings: a 1999 Impreza with 98,746 miles for only $3,995.
Toyota Prius
With every model year the Prius seems to make advancements in fuel efficiency. But even an older model Toyota Prius offers outstanding gas mileage. In 2001, the first year the car was available in the United States, the EPA gave it a combined rating of 41 mpg. Cars.com notes the 2009 Prius has one of the strongest resale values, and J.D. Power and Associates lists the 2006 model as the most dependable car in the compact category in its 2009 Vehicle Dependability Survey.
Ford Mustang
Car writers say nothing looks, drives or feels like a Ford Mustang, whether you buy one new or used. More importantly, buying used rather than new will help you get that retro-cool vibe the current Mustang is known for. According to Edmunds, any Mustang made between 1986 and 2004 is perfect "if you prefer a V8 rumble to drown out the rattles from your cheap ride's aging interior," and you should be able to find one from that time period for less than $5,000. Cars.com reports the Mustang is one of the top-10 most popular used cars based on reports from dealers and private sellers.
Mazda MX-5 Miata
It's sexy and affordable. It corners on a dime, and with an impressive reliability record, it's built to last. While it's not as powerful as some affordable sports cars, numerous automotive experts say the Mazda MX-5 Miata's nimble handling is great no matter what model year you choose. Edmunds notes, "this little roadster proves that the right sports car formula has real staying power," and notes that first generation Miata's made between 1990 and 1997 "are readily available for well under $5 grand." Not only that, but J.D. Power and Associates chose the 2006 Miata as the most reliable compact sports car in its 2009 Vehicle Dependability Survey, and Consumer Reports selected the Miata as its Best Used Sports Car.
By Jada A. Graves
Knowing where to place your bets with a used car can be tricky. The horror stories are all too common -- the pieced-together parts, the unexplained and unexpected sounds and smells, the bodies in the trunk ...
Okay. Maybe the last one isn't quite as common.
But buying used doesn't have to be such a gamble if you do your research. There's a wealth of online information available that can make it easier to avoid a lemon. With the federal government's vehicle defect notices and J.D. Power and Associates' reliability data the most common mechanical issues are all easy to trace. In addition, U.S. News' used car listings make the search easier for the best used car options in your area.
But we've already done at that research to help you narrow down your choices. Check out our list of the best and worst used cars. Remember, while this list is a good start, all used cars are different. Before buying, make sure you give any used car -- even one on our best list -- a thorough inspection.
Worst Used Cars:
GMC Canyon
The GMC Canyon successfully balances an imposing stance on the highway while providing coddling comfort in the cab. Reviewers also praise the 2009 model's new V8 engine for helping the Canyon effectively compete with meatier trucks in its segment. But Consumer Reports cites the Canyon's troubled reliability history as the reason it makes their Worst Used Cars list. According to Consumer Guide, Canyons from 2004 through 2008 are "underpowered for anything other than daily commuting," with pronounced road noise and a tiresome ride depending on the trim. Consumer Guide says some commonly reported problems for these model years include electrical wiring problems with the OnStar system and weak exhaust valve springs that could cause the engine to misfire.
Chrysler Sebring
As Chrysler dealerships close across the country, you can expect unbelievable prices on both new and used models of the Sebring sedan or convertible. It's just too bad that shaky reliability, poor cabin quality and disappointing performance lead most reviewers to say the Sebring was never a great buy to begin with. Consumer Reports chose the Sebring convertible as one of the Worst Used Cars based on reliability data from vehicles from 1999 through 2008. Meanwhile, CarComplaints.com shows many Sebring owners have reported problems with the engine, air conditioning and heating systems and airbags on both the 2001 and 2002 Sebrings.
Ford Explorer
The current generation of the Ford Explorer ranks mid-pack among affordable midsize SUVs, and is praised for its off-roading capabilities and a spacious cabin. But according to CarComplaints.com, car owners have recounted problems with the third generation of the Explorer -- made from 2002 to 2005 -- for cracked window panels and faulty transmissions. Consumer Guide also recounts this generation of Explorer has commonly had problems with coolant and oil leaks, rattling timing belts and ticking valves in the 4.6-liter engines.
Dodge Intrepid
The Intrepid was a Consumer Guide Best Buy or Recommended Pick almost every year of its 1998 to 2004 run. Reviewers liked the sedan's passenger and cargo room and praised the nimble handling, especially for the car's size. But a large number of Intrepid owners have reported engine troubles with the 2000 model, and the federal government previously recalled Intrepids for faulty airbags and seatbelts. Consumer Guide notes the Intrepid's most commonly reported mechanical problems include electrical problems with the cabin lights and headlights, plus an engine tapping noise when driving a V6 Intrepid.
Pontiac Aztek
The Aztek's brief four-year run in Pontiac's lineup is a testament to this midsize crossover SUV's unpopularity. We could fudge it and say that disdain for the SUV had to do with its low gas mileage or lacking cabin quality, but truly, critics say the biggest problem with the Aztek was its ungainly dimensions. According to Britain's Daily Telegraph, the Aztek's obtuse shape was "proof that Americans do ugly better than anyone else." On our side of the Atlantic, Consumer Reports lists the Aztek on its Worst Used Cars and TIME Magazine dinged the 2001 model as one of its "Worst Cars of All Time." According to TIME's writers, "This car could not have been more instantly hated it if had a Swastika tattoo on its forehead. ... a bulky, plastic-clad mess. ... The Aztek violates one of the principal rules of car design: We like cars that look like us." But if you can get around the Aztek's unconventional look, reviewers admit the SUV is a competent performer with stable handling and minimal road noise.
Best Used Cars:
2009 Honda Civic
2009 Honda Civic
Honda Civic
There's a reason the Civic shows up on many auto experts "Best" lists: When it comes to outstanding quality, safety and dependability, there are few better cars. Cars.com notes the Civic is one the most popular used cars sold from July to September of 2008, while Consumer Reports chose it as the best used car in the small car class because its "reliable, economical and fun to drive." CarsComplaints.com finds that some Civic owners have had transmission problems with the 2001 and 2002 models, but the current generation Civic, first sold in 2006, has a strong reliability record and few federal government defect notices.
Subaru Impreza
If you're looking for a distinctive design or thrills on the road, the Impreza probably isn't your first choice. But critics say the car is a safe choice, literally and figuratively. Writers praise the Impreza's secure dynamics with standard all-wheel drive, and highlight the safety features and strong safety scores from the federal government and insurance industry. J.D. Power and Associates lists the 2006 Subie Impreza as a top pick in its 2009 Vehicle Dependability Survey. Although Cars.com reports the 2009 Impreza has one of the best resale values (which means finding one that's used and cheap could be a challenge), Edmunds suggests an Impreza made between 1998 and 2001 as one of the best used cars for those on a tighter budget. "We found high-mileage (150,000-plus) 2.5RS models starting at around $4,500 on Auto Trader," they report. There's an even better deal in U.S. News' used car listings: a 1999 Impreza with 98,746 miles for only $3,995.
Toyota Prius
With every model year the Prius seems to make advancements in fuel efficiency. But even an older model Toyota Prius offers outstanding gas mileage. In 2001, the first year the car was available in the United States, the EPA gave it a combined rating of 41 mpg. Cars.com notes the 2009 Prius has one of the strongest resale values, and J.D. Power and Associates lists the 2006 model as the most dependable car in the compact category in its 2009 Vehicle Dependability Survey.
Ford Mustang
Car writers say nothing looks, drives or feels like a Ford Mustang, whether you buy one new or used. More importantly, buying used rather than new will help you get that retro-cool vibe the current Mustang is known for. According to Edmunds, any Mustang made between 1986 and 2004 is perfect "if you prefer a V8 rumble to drown out the rattles from your cheap ride's aging interior," and you should be able to find one from that time period for less than $5,000. Cars.com reports the Mustang is one of the top-10 most popular used cars based on reports from dealers and private sellers.
Mazda MX-5 Miata
It's sexy and affordable. It corners on a dime, and with an impressive reliability record, it's built to last. While it's not as powerful as some affordable sports cars, numerous automotive experts say the Mazda MX-5 Miata's nimble handling is great no matter what model year you choose. Edmunds notes, "this little roadster proves that the right sports car formula has real staying power," and notes that first generation Miata's made between 1990 and 1997 "are readily available for well under $5 grand." Not only that, but J.D. Power and Associates chose the 2006 Miata as the most reliable compact sports car in its 2009 Vehicle Dependability Survey, and Consumer Reports selected the Miata as its Best Used Sports Car.
Tuesday, June 9, 2009
High court won't block Chrysler sale
From The Associated Press:
By MARK SHERMAN, Associated Press Writer
WASHINGTON – The Supreme Court on Tuesday cleared the way for Chrysler LLC's sale to Fiat, turning down a last-ditch appeal by opponents that included consumer groups and three Indiana pension plans.
The court rejected a plea to block the sale of most of Chrysler's assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court's intervention could have scuttled the sale.
A federal appeals court in New York had earlier approved the sale, but gave opponents until Monday afternoon to try to get the Supreme Court to intervene.
Justice Ruth Bader Ginsburg ordered a temporary delay just before a 4 p.m. deadline on Monday. A little more than 24 hours later, the court freed the automakers to complete their deal.
The opponents include a trio of Indiana pension plans, consumer groups and individuals with product-related lawsuits.
The court issued a brief, unsigned opinion explaining its action. To obtain a delay, or stay, someone must show that at least four of the nine justices find that the issue raised is serious enough to warrant hearing a full appeal and that a majority of the court will conclude the lower court decision was wrong.
"The applicants have not carried that burden," the court said.
Indiana Treasurer Richard Mourdock expressed disappointment with the decision and said options seem limited for opponents of the sale. "Obviously the supreme court of the land is the supreme court of the land," Mourdock said. "The United States government has, I continue to believe, acted egregiously by taking away the traditional rights held by secured creditors."
The White House issued a statement applauding the decision: "The Chrysler-Fiat alliance can now go forward, allowing Chrysler to re-emerge as a competitive and viable automaker."
The challenge was filed by the Indiana pension funds and other investors who claimed the sale unfairly favored Chrysler's unsecured stakeholders ahead of secured debtholders like themselves.
Chrysler has been working to complete the sale of its assets to Fiat before a June 15 deadline, a key element in its restructuring plans.
Early Tuesday, the pension plans seized on comments from Fiat officials that they would not walk away from the deal even if June 15 were to pass without completing the sale. The plans tried to persuade the justices that there was no reason to rush to meet that deadline.
But Chrysler, Fiat and the Obama administration stressed in response that Chrysler was losing $100 million a day and that the deal automatically terminates in less than a week, with no guarantee that a new agreement would be reached.
The court did not consider the merits of the opponents' arguments, only whether to hear their full-blown appeal.
Also on Tuesday, Chrysler returned to bankruptcy court to get approval to terminate 789 dealer franchises.
More than 25 attorneys representing hundreds of dealers from across the country opposed Chrysler's request, arguing that little would be gained by ending the franchises. The company said the move was a necessary part of its plan to cut costs and quickly emerge from Chapter 11 bankruptcy.
Many of the dealers were selling the last cars on their lots and preparing to shut their doors for good at the end of the day, while others planned to sell used cars or other brands after severing ties with Chrysler.
By MARK SHERMAN, Associated Press Writer
WASHINGTON – The Supreme Court on Tuesday cleared the way for Chrysler LLC's sale to Fiat, turning down a last-ditch appeal by opponents that included consumer groups and three Indiana pension plans.
The court rejected a plea to block the sale of most of Chrysler's assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court's intervention could have scuttled the sale.
A federal appeals court in New York had earlier approved the sale, but gave opponents until Monday afternoon to try to get the Supreme Court to intervene.
Justice Ruth Bader Ginsburg ordered a temporary delay just before a 4 p.m. deadline on Monday. A little more than 24 hours later, the court freed the automakers to complete their deal.
The opponents include a trio of Indiana pension plans, consumer groups and individuals with product-related lawsuits.
The court issued a brief, unsigned opinion explaining its action. To obtain a delay, or stay, someone must show that at least four of the nine justices find that the issue raised is serious enough to warrant hearing a full appeal and that a majority of the court will conclude the lower court decision was wrong.
"The applicants have not carried that burden," the court said.
Indiana Treasurer Richard Mourdock expressed disappointment with the decision and said options seem limited for opponents of the sale. "Obviously the supreme court of the land is the supreme court of the land," Mourdock said. "The United States government has, I continue to believe, acted egregiously by taking away the traditional rights held by secured creditors."
The White House issued a statement applauding the decision: "The Chrysler-Fiat alliance can now go forward, allowing Chrysler to re-emerge as a competitive and viable automaker."
The challenge was filed by the Indiana pension funds and other investors who claimed the sale unfairly favored Chrysler's unsecured stakeholders ahead of secured debtholders like themselves.
Chrysler has been working to complete the sale of its assets to Fiat before a June 15 deadline, a key element in its restructuring plans.
Early Tuesday, the pension plans seized on comments from Fiat officials that they would not walk away from the deal even if June 15 were to pass without completing the sale. The plans tried to persuade the justices that there was no reason to rush to meet that deadline.
But Chrysler, Fiat and the Obama administration stressed in response that Chrysler was losing $100 million a day and that the deal automatically terminates in less than a week, with no guarantee that a new agreement would be reached.
The court did not consider the merits of the opponents' arguments, only whether to hear their full-blown appeal.
Also on Tuesday, Chrysler returned to bankruptcy court to get approval to terminate 789 dealer franchises.
More than 25 attorneys representing hundreds of dealers from across the country opposed Chrysler's request, arguing that little would be gained by ending the franchises. The company said the move was a necessary part of its plan to cut costs and quickly emerge from Chapter 11 bankruptcy.
Many of the dealers were selling the last cars on their lots and preparing to shut their doors for good at the end of the day, while others planned to sell used cars or other brands after severing ties with Chrysler.
Friday, June 5, 2009
GM to sell Saturn brand to Penske dealership chain
From the Associated Press:
By Dan Strumpf and Tom Krisher, AP Auto Writers
NEW YORK (AP) -- General Motors Corp. has a tentative deal to sell its Saturn brand to former race car driver and dealership group owner Roger Penske, both companies said Friday.
Penske has signed a memorandum of understanding that would give his dealership chain, Penske Automotive Group, Saturn's 350 dealerships, the companies said. Penske said that he expects to offer all the dealers new franchise agreements and will retain all 13,000 Saturn employees for the immediate term.
"I would expect that the model that we're putting together, the distribution model, will be profitable day one," Penske said in an interview with The Associated Press. "We'll have less costs. We'll not be in the manufacturing side."
Neither Penske nor GM would say how much Penske is paying for the brand. Penske said he expects the deal to close in the third quarter.
Penske Automotive Group also distributes Daimler AG's Smart subcompacts in the U.S., but Smart has its own dealership network and Saturn dealers will continue to exclusively distribute Saturn vehicles, Penske said.
Initially, GM will continue to produce on a contract basis the Saturn Aura sedan as well as the Vue and Outlook SUVs, the companies said. But Penske said he is in talks with manufacturers around the world about building Saturn cars in the future.
"We will be selling as many GM cars -- a many GM-produced cars -- under the Saturn brand as possible," Penske told reporters in a conference call Friday.
GM had announced plans earlier this year to sell the Saturn brand. The car maker launched Saturn in 1990 with the tagline "a different kind of car company." GM's hope was that Saturn would attract younger buyers with smaller, hipper cars to better compete with Japanese imports. It built a new plant in Spring Hill, Tenn., devoted to Saturn production.
The factory had more flexible work rules than traditional GM plants for the employees who built the cars.
Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money for GM. The factory stopped making Saturns in 2007 and currently builds only the Chevrolet Traverse.
As GM focused more on high-profit pickup trucks and sport utility vehicles, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturn's new models more appealing. But after a good year in 2007, sales dropped 22 percent last year as the U.S. car market withered.
Today, Saturn production is scattered at plants across the U.S. The Aura is built at GM's factory at Kansas City, Kansas. The Outlook is built in Lansing, Mich., while the Vue is built in Ramos Arizpe, Mexico.
The Saturn Sky roadster is built in Wilmington, Del., but that plant is scheduled to close in July and the model will be discontinued. The Saturn Astra was imported from GM's plant in Antwerp, Belgium, and was discontinued last year.
Penske Automotive will take over the separate Saturn parts factory in Spring Hill, which will continue to make Saturn components.
Penske Automotive owns the second-largest U.S. automobile retail chain by sales and consistently scores high in customer satisfaction surveys. the company also has race teams in the IndyCar, NASCAR and Grand-Am series. Penske received wide acclaim for heading Detroit's successful effort to host the 2006 Super Bowl.
Carl F. Galeana, who owns two Saturn dealerships north of Detroit, said Friday he was thrilled that Penske would be the Saturn buyer.
"Roger Penske is an icon in the business world," Galeana said. "I've worked with him personally. Nobody works harder than Roger Penske."
Galeana said the fact that Penske is interested in Saturn means the brand has value.
"It allows Saturn to get back to its original roots, which is to be an independent car company," he said.
GM, which filed for bankruptcy court protection on Monday, has said it plans to shed its Saturn, Hummer, Pontiac and Saab brands. Earlier this week, GM said it found a buyer for Hummer in China's Sichuan Tengzhong Heavy Industrial Machinery Co.
However, any such deal would require Chinese Commerce Ministry approval, and reports in state-run newspapers Friday said Sichuan Tengzhong had not yet obtained such an approval.
Tom Krisher reported from Detroit.
By Dan Strumpf and Tom Krisher, AP Auto Writers
NEW YORK (AP) -- General Motors Corp. has a tentative deal to sell its Saturn brand to former race car driver and dealership group owner Roger Penske, both companies said Friday.
Penske has signed a memorandum of understanding that would give his dealership chain, Penske Automotive Group, Saturn's 350 dealerships, the companies said. Penske said that he expects to offer all the dealers new franchise agreements and will retain all 13,000 Saturn employees for the immediate term.
"I would expect that the model that we're putting together, the distribution model, will be profitable day one," Penske said in an interview with The Associated Press. "We'll have less costs. We'll not be in the manufacturing side."
Neither Penske nor GM would say how much Penske is paying for the brand. Penske said he expects the deal to close in the third quarter.
Penske Automotive Group also distributes Daimler AG's Smart subcompacts in the U.S., but Smart has its own dealership network and Saturn dealers will continue to exclusively distribute Saturn vehicles, Penske said.
Initially, GM will continue to produce on a contract basis the Saturn Aura sedan as well as the Vue and Outlook SUVs, the companies said. But Penske said he is in talks with manufacturers around the world about building Saturn cars in the future.
"We will be selling as many GM cars -- a many GM-produced cars -- under the Saturn brand as possible," Penske told reporters in a conference call Friday.
GM had announced plans earlier this year to sell the Saturn brand. The car maker launched Saturn in 1990 with the tagline "a different kind of car company." GM's hope was that Saturn would attract younger buyers with smaller, hipper cars to better compete with Japanese imports. It built a new plant in Spring Hill, Tenn., devoted to Saturn production.
The factory had more flexible work rules than traditional GM plants for the employees who built the cars.
Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money for GM. The factory stopped making Saturns in 2007 and currently builds only the Chevrolet Traverse.
As GM focused more on high-profit pickup trucks and sport utility vehicles, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturn's new models more appealing. But after a good year in 2007, sales dropped 22 percent last year as the U.S. car market withered.
Today, Saturn production is scattered at plants across the U.S. The Aura is built at GM's factory at Kansas City, Kansas. The Outlook is built in Lansing, Mich., while the Vue is built in Ramos Arizpe, Mexico.
The Saturn Sky roadster is built in Wilmington, Del., but that plant is scheduled to close in July and the model will be discontinued. The Saturn Astra was imported from GM's plant in Antwerp, Belgium, and was discontinued last year.
Penske Automotive will take over the separate Saturn parts factory in Spring Hill, which will continue to make Saturn components.
Penske Automotive owns the second-largest U.S. automobile retail chain by sales and consistently scores high in customer satisfaction surveys. the company also has race teams in the IndyCar, NASCAR and Grand-Am series. Penske received wide acclaim for heading Detroit's successful effort to host the 2006 Super Bowl.
Carl F. Galeana, who owns two Saturn dealerships north of Detroit, said Friday he was thrilled that Penske would be the Saturn buyer.
"Roger Penske is an icon in the business world," Galeana said. "I've worked with him personally. Nobody works harder than Roger Penske."
Galeana said the fact that Penske is interested in Saturn means the brand has value.
"It allows Saturn to get back to its original roots, which is to be an independent car company," he said.
GM, which filed for bankruptcy court protection on Monday, has said it plans to shed its Saturn, Hummer, Pontiac and Saab brands. Earlier this week, GM said it found a buyer for Hummer in China's Sichuan Tengzhong Heavy Industrial Machinery Co.
However, any such deal would require Chinese Commerce Ministry approval, and reports in state-run newspapers Friday said Sichuan Tengzhong had not yet obtained such an approval.
Tom Krisher reported from Detroit.
Wednesday, June 3, 2009
Chinese buyer will expand Hummer lineup, keep dealers, CEO says
From Automotive News:
By Jamie LaReau
The Chinese manufacturer planning to buy General Motors' Hummer will expand the brand's lineup -- including alternative powertrains -- and retain its U.S. dealers, Hummer CEO Jim Taylor said today.
By Jamie LaReau
The Chinese manufacturer planning to buy General Motors' Hummer will expand the brand's lineup -- including alternative powertrains -- and retain its U.S. dealers, Hummer CEO Jim Taylor said today.
Bike for the Jetson set
Appeared in Daily Report, Tuesday, May 26, 2009:
Lawyer motorcycle enthusiast adds a space-age Monotracer to his collection
By Karl W. Ritzler, Special to the Daily Report
There's both a practical side and a strong dash of fantasy to Shinji Morokuma's newest motorcycle, a space-age ride that looks more like a wingless airplane than a bike.
The director of the Georgia Supreme Court's Commission on Dispute Resolution is a self-admitted motorcycle nut. He'd love to drive a bike to work every day, but bugs, rain and heat can make a mess of his suit and tie.
The solution? An enclosed motorcycle. For Morokuma, it's a Monotracer, the only one of its kind in the United States and one of just five in the world.
“I intend to ride it to work most days,” he said.
That's the practical side. Most people don't spend as much as $80,000 on a motorcycle, let alone one that George Jetson might ride.
“It's a way for me to have an exotic vehicle at a relatively cheap entry fee,” compared with a Ferrari, for example, said Morokuma. “It's a fantasy. … I'm looking forward to seeing the faces of valets when I pull up” at a fancy restaurant.
The company's goal is to build a sporty vehicle that combines the fuel efficiency and touring style of a motorcycle while offering an enclosure that makes it usable every day, all year, like a sports car. “In short, it's the ideal vehicle for year-round fun and efficient daily commuting,” the company says in its brochure.
Morokuma's motorcycle is heavier than conventional bikes, and more top-heavy, so it has pop-down stabilizer wheels. Two passengers can ride inside, sitting upright. And unlike other motorcycles, the Monotracer has foot controls for the clutch and brakes.
It gets 50 to 60 miles per gallon—“a good vehicle for times when fuel prices are high,” said Morokuma.
The Monotracer isn't Morokuma's first unusual motorcycle. Several years ago, he purchased an exclusive Alligator Motorcycle built by auto racing legend Dan Gurney. That purchase, Morokuma said, helped him recover from the death of his wife from cancer.
“It was a talisman for my sanity,” he had said.
The Monotracer “goes back to the same feeling,” he said. “When an opportunity arises, when something is within reach, take the opportunity to pursue your interests and fulfill your fantasy. It was a crazy decision, but the opportunity to have a unique driving experience was too tempting.”
Morokuma's interest in the Monotracer dates to the 1990s, when he saw a futuristic movie in which police officers rode enclosed motorcycles.
“I thought they were riding movie props,” he said. “But I found out they were real motorcycles.”
The vehicles were Ecomobiles, predecessors to the Monotracer built by the same company, Peraves AG of Winterthur, Switzerland.
Morokuma said he entertained the fantasy of owning one and followed them on-and-off in motorcycle publications and blogs. About two years ago, the blogs were abuzz with Peraves' new vehicle, the Monotracer.
“I thought it looked better,” Morokuma said, and he put down a deposit with a special introductory discount. He took delivery two weeks ago.
In the meantime, Morokuma made two trips to Brno, Czech Republic, for on-track and on-road training—first on Ecomobiles and later on the Monotracer.
Recently, Arnold Wagner, the chief executive officer of Peraves, accompanied Morokuma's Monotracer when it was delivered. He came along to give Morokuma a refresher course on his new bike, as well as to clear the vehicle through customs and settle all the paperwork and emissions certifications. That included a trip to a Georgia State Patrol office, where officers verified the VIN number was properly displayed and gave the bike a thorough look over.
“People are curious about the vehicle and were willing to help us,” Morokuma said.
Getting insurance was a little easier. After explaining what his new vehicle was, Morokuma was able to include it on the policy with the rest of his vehicles.
Peraves switched to the Monotracer after a fire damaged Ecomobile body molds in 2005. It had built about 100 Ecomobiles.
Many of the mechanical components are similar to the Ecomobile, Wagner said. The engines are from BMW. Steering is motorcycle handlebars. The body, however is all new. “I'm coming from aircraft design,” said Wagner. “The old model looks like the fuselage of an airplane,” including a tail fin.
The new body, largely designed by a Czech industrial design student as his final project, is sleeker. It's made from layers of epoxy resin and carbon weave cloth, the same as in a glider cockpit, and molded into shape. That process limits production to about 120 Monotracers a year. However, Wagner said, he is in discussions with major motorcycle manufacturers for a mass-production version.
Wagner said the Monotracer is priced from about $50,000 to about $80,000 fully loaded. That will include features unusual for motorcycles, such as a trunk, air conditioning, GPS units, antilock brakes, three-point seat belts and cruise control.
The stabilizer wheels are needed to keep the bike, which can weigh up to 1,670 pounds, upright when stopped. The wheels pop up and down with a toggle switch. The bike can travel up to about 60 mph with the stabilizer wheels lowered. Wheels up and on a track, it's capable of 170 mph, and it can go from zero to 62 mph in about 4.8 seconds.
Morokuma said the stabilizers are one reason it takes some getting used to. “You have to be close to straight up and down to raise the wheels. … You have to get going on four wheels, then raise them,” he said.
“We drove two-and-a-half hours on the freeway, and it was very comfortable,” Morokuma said. And helmets weren't necessary because most states say you don't need them in enclosed motorcycles.
“People look at this and say, 'This is crazy,'” Wagner said, then pointed to a passing SUV with only the driver inside and commented, “This is crazy.”
Karl W. Ritzler is a freelance contributor to the Daily Report.
Lawyer motorcycle enthusiast adds a space-age Monotracer to his collection
By Karl W. Ritzler, Special to the Daily Report
There's both a practical side and a strong dash of fantasy to Shinji Morokuma's newest motorcycle, a space-age ride that looks more like a wingless airplane than a bike.
The director of the Georgia Supreme Court's Commission on Dispute Resolution is a self-admitted motorcycle nut. He'd love to drive a bike to work every day, but bugs, rain and heat can make a mess of his suit and tie.
The solution? An enclosed motorcycle. For Morokuma, it's a Monotracer, the only one of its kind in the United States and one of just five in the world.
“I intend to ride it to work most days,” he said.
That's the practical side. Most people don't spend as much as $80,000 on a motorcycle, let alone one that George Jetson might ride.
“It's a way for me to have an exotic vehicle at a relatively cheap entry fee,” compared with a Ferrari, for example, said Morokuma. “It's a fantasy. … I'm looking forward to seeing the faces of valets when I pull up” at a fancy restaurant.
The company's goal is to build a sporty vehicle that combines the fuel efficiency and touring style of a motorcycle while offering an enclosure that makes it usable every day, all year, like a sports car. “In short, it's the ideal vehicle for year-round fun and efficient daily commuting,” the company says in its brochure.
Morokuma's motorcycle is heavier than conventional bikes, and more top-heavy, so it has pop-down stabilizer wheels. Two passengers can ride inside, sitting upright. And unlike other motorcycles, the Monotracer has foot controls for the clutch and brakes.
It gets 50 to 60 miles per gallon—“a good vehicle for times when fuel prices are high,” said Morokuma.
The Monotracer isn't Morokuma's first unusual motorcycle. Several years ago, he purchased an exclusive Alligator Motorcycle built by auto racing legend Dan Gurney. That purchase, Morokuma said, helped him recover from the death of his wife from cancer.
“It was a talisman for my sanity,” he had said.
The Monotracer “goes back to the same feeling,” he said. “When an opportunity arises, when something is within reach, take the opportunity to pursue your interests and fulfill your fantasy. It was a crazy decision, but the opportunity to have a unique driving experience was too tempting.”
Morokuma's interest in the Monotracer dates to the 1990s, when he saw a futuristic movie in which police officers rode enclosed motorcycles.
“I thought they were riding movie props,” he said. “But I found out they were real motorcycles.”
The vehicles were Ecomobiles, predecessors to the Monotracer built by the same company, Peraves AG of Winterthur, Switzerland.
Morokuma said he entertained the fantasy of owning one and followed them on-and-off in motorcycle publications and blogs. About two years ago, the blogs were abuzz with Peraves' new vehicle, the Monotracer.
“I thought it looked better,” Morokuma said, and he put down a deposit with a special introductory discount. He took delivery two weeks ago.
In the meantime, Morokuma made two trips to Brno, Czech Republic, for on-track and on-road training—first on Ecomobiles and later on the Monotracer.
Recently, Arnold Wagner, the chief executive officer of Peraves, accompanied Morokuma's Monotracer when it was delivered. He came along to give Morokuma a refresher course on his new bike, as well as to clear the vehicle through customs and settle all the paperwork and emissions certifications. That included a trip to a Georgia State Patrol office, where officers verified the VIN number was properly displayed and gave the bike a thorough look over.
“People are curious about the vehicle and were willing to help us,” Morokuma said.
Getting insurance was a little easier. After explaining what his new vehicle was, Morokuma was able to include it on the policy with the rest of his vehicles.
Peraves switched to the Monotracer after a fire damaged Ecomobile body molds in 2005. It had built about 100 Ecomobiles.
Many of the mechanical components are similar to the Ecomobile, Wagner said. The engines are from BMW. Steering is motorcycle handlebars. The body, however is all new. “I'm coming from aircraft design,” said Wagner. “The old model looks like the fuselage of an airplane,” including a tail fin.
The new body, largely designed by a Czech industrial design student as his final project, is sleeker. It's made from layers of epoxy resin and carbon weave cloth, the same as in a glider cockpit, and molded into shape. That process limits production to about 120 Monotracers a year. However, Wagner said, he is in discussions with major motorcycle manufacturers for a mass-production version.
Wagner said the Monotracer is priced from about $50,000 to about $80,000 fully loaded. That will include features unusual for motorcycles, such as a trunk, air conditioning, GPS units, antilock brakes, three-point seat belts and cruise control.
The stabilizer wheels are needed to keep the bike, which can weigh up to 1,670 pounds, upright when stopped. The wheels pop up and down with a toggle switch. The bike can travel up to about 60 mph with the stabilizer wheels lowered. Wheels up and on a track, it's capable of 170 mph, and it can go from zero to 62 mph in about 4.8 seconds.
Morokuma said the stabilizers are one reason it takes some getting used to. “You have to be close to straight up and down to raise the wheels. … You have to get going on four wheels, then raise them,” he said.
“We drove two-and-a-half hours on the freeway, and it was very comfortable,” Morokuma said. And helmets weren't necessary because most states say you don't need them in enclosed motorcycles.
“People look at this and say, 'This is crazy,'” Wagner said, then pointed to a passing SUV with only the driver inside and commented, “This is crazy.”
Karl W. Ritzler is a freelance contributor to the Daily Report.
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