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.
Monday, June 22, 2009
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.
Monday, June 1, 2009
General Motors files for bankruptcy protection
From Associated Press:
NEW YORK – General Motors has filed for bankruptcy protection as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
The fallen icon of American industrial might filed its Chapter 11 petition in New York on Monday. It marks the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.
GM's reorganization plan will rely on up to $30 billion of additional financial assistance from the Treasury Department. That's on top of the $19.4 billion in taxpayer money GM already has received in the form of low-interest loans.
NEW YORK – General Motors has filed for bankruptcy protection as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
The fallen icon of American industrial might filed its Chapter 11 petition in New York on Monday. It marks the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.
GM's reorganization plan will rely on up to $30 billion of additional financial assistance from the Treasury Department. That's on top of the $19.4 billion in taxpayer money GM already has received in the form of low-interest loans.
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