Auto Insider Daily

September Auto Sales Drop to 1993 Levels

2008-10-02T23:02:00.000-07:00

September was the first month since February 1993 to have auto sales below a million units. A slow economy and constant bad financial news brought down sales 26.6% compared with last September. Every auto maker was affected. Toyota saw sales drop 32.3%. GM had sales drop 15.6%. They were help by Employee Pricing Sale. The credit crisis is affecting dealerships and consumers. The dealers use credit to finance their inventories and many consumers are being denied loans or have to put up bigger down payments.

Source USA Today

Chrysler to Sell Electric Cars in 2010

2008-09-23T22:52:00.000-07:00

Chrysler revealed three electric vehicles today. They say one of them will go on sale in 2010. All use advanced lithium ion batteries. The Dodge EV is an all electric two seat sports car. It is being co-developed with Lotus and is based on a Lotus model. The range on a full charge should be 150 to 200 miles and it should hit 60 MPH in under 5 seconds. The Chrysler EV is a Town & Country. The Jeep EV is a four door Wrangler. They are both electric vehicles with a gasoline engine to expand their range.

Chrysler ENVI site

Source Edmunds Inside Line

Chevy Volt Shown at GM 100 Anniversary

2008-09-16T23:01:00.000-07:00

General Motors brought out the production version of the Chevy Volt. The production version is more sleek and aerodynamic than the concept version. After several hours of charging at home electrical outlet, it will be able to drive for 40 miles on electricity only. The electrical motor will produce about 150 horsepower. GM expects the car will use less electricity than a refrigerator over a year of use. It will cost about 2 cents a mile to drive the Volt using electricity. When the engine turns on to recharge the batteries, it will cost 12 cents a mile to drive. The Chevy Volt will go on sale in 2010.

Source CNN Money

Hummer Dealer Closes to Sell Smart Cars

2008-09-10T23:40:00.000-07:00

The only Las Vegas Hummer dealer is closing. It is also one of the largest Hummer dealers in the country. This is the eight Hummer dealer to close this year. The owner, Dan Towbin, will be opening a Smart dealership soon. Hummer’s sales are down 47% this year due to high gas prices.

Source The Wall Street Journal

Production Chevy Volt Photos Leaked

2008-09-09T22:41:00.000-07:00

Pictures of the production version of the Chevy Volt where accidentally leaked by GM. The production car is much smoother and contoured than the concept to allow better aerodynamics. The electric car with a range extending engine will be officially unveiled for GM’s 100th anniversary on September 16th. The Chevy Volt can be recharged by a wall outlet and can go 40 miles on a full charge. When the batteries are low a gasoline engine starts up to recharge the batteries. The Chevy Volt will go on sale in late 2010.

Source MSNBC

Honda Insight Concept Hybrid

2008-09-04T22:48:00.000-07:00

The Honda Insight Concept will debut at the 2008 Paris International Auto Show. It shares many styling cues with the FCX Clarity fuel cell vehicle. The 2009 Insight will be a direct competitor to the Toyota Prius. Honda’s latest hybrid will go on sale in the spring of 2009 and will be the lowest priced hybrid on the market. It will be a five door, five passenger hatchback. Honda is planning production of 200,000 units a year with 100,000 going to North America.

Source CNN Money

Small Car Prices Rise with Demand

2008-09-03T22:42:00.000-07:00

Increased demand in small cars will drive up prices over the next few years. Automakers are adding new features to small cars to increase prices and to regain profits that they once earned on trucks. Many people will not want to sacrifice their navigation systems and leather seats as they move to smaller cars. In the next four years, small car prices will go from the high teens to the mid $20,000. Honda’s redesigned Fit has a high end trim that costs $19,430. Ford also added a premium Focus model that is priced from $18,665 to $23,214. Average selling prices are already rising. The Focus’s average selling price is up 4.4% from a year ago and the Toyota Yaris is up 3.6%.

Source USA Today

Ford Truck Plant Converting to Build Cars

2008-08-27T22:39:00.000-07:00

Ford is spending $75 million to convert a truck plant to build small cars. The Wayne Michigan plan currently makes the Ford Expedition and Lincoln Navigator. Sales of the Expedition are down 39% this year and the Navigator is down 28%. Car production will begin in the plant in 2010. The plant will build the Ford Focus or another small car. When the conversion at the plant is completed, it will be a flexible production facility able to produce various vehicles on the same production line.

Source USA Today

GM Unveils 2011 Chevy Cruze

2008-08-26T19:18:00.000-07:00

The Chevy Cruze will replace the Cobalt small car. It will be a premium small car looking to attract buyers as they downsize due to high gas prices. The Cruze was designed from the start to be sold around the world. Sales will start in Europe next year. Sales start in the U.S. in 2010. The engine for the U.S. will be a 1.4 liter turbocharged four cylinder which could get up to 40 mpg on the highway.

Source CNN Money

U.S. Lacks Hybrid Battery Know How

2008-08-19T22:12:00.000-07:00

The next way we are going to be dependent on foreign countries are advanced batteries. As U.S. car manufactures develop electric cars, they have to rely on Asian companies for advanced rechargeable batteries. Those companies have two decades of experience manufacturing batteries for consumer electronics. Batteries are need for hybrids, electric plug ins, and fuel cell cars. The market for batteries will reach $10 billion by 2015. Advanced batteries where developed in the United States, but it has been Japan and Korea who have lead in manufacturing them. We cannot allow a foreign dependence on oil to be replaced with a foreign dependence on batteries.

Source The Seattle Times

New Honda Hybrid Will Be Priced Less Than Prius

2008-08-13T22:42:00.000-07:00

The new Honda hybrid will be priced lower than the Toyota Prius’ base price of $21,500. The car will be a five door and will only come with a hybrid powertrain. Sales will begin in April 2009. The car has not been named yet. Honda wants the new hybrid to be affordable to a larger segment of buyers.

Source MSNBC

Exhaust Heat Will Save Fuel

2008-08-12T18:20:00.000-07:00

General Motors and a BMW supplier are close to converting heat from the car’s exhaust into electricity. The electricity will reduce the amount of time the alternator runs and improve fuel efficiency. The U.S. Department of Energy is partly funding the research and their goal is to improve fuel economy by 10 percent. These thermoelectric generators could be in production in three years. Today’s engines lose 40 percent of their energy in exhaust heat. Any heat energy that is captured will improve overall efficiency.

Source The Associated Press

Allow Euro Cars to Be Sold Here

2008-08-06T22:14:00.000-07:00

John McElroy, from Autoline Detroit, has an excellent idea to bring more fuel efficient cars into the U.S. market fast. We should allow automakers to sell any car that meets the European emissions and safety standards in the U.S. The U.S. and European standards are very close but it can take years to modify a car designed to meet one standard to meet the other. This relaxing of standards should only be temporary, say 5 years, and the manufactures should be forced to build the vehicles in the U.S. This would cut years off the time it is going to take to get more fuel efficient vehicles and will also cut our oil consumption.

Source Autoblog

Auto Leasing Getting More Difficult

2008-07-30T20:47:00.000-07:00

The auto leasing business is facing huge loses due to high gas prices reducing the values of SUVs and trucks. Last week, Chrysler Financial announced it will totally abandon lease financing. This forces Chrysler, Jeep and Dodge dealers to find other banks to finance their leases. GMAC will no longer offer leasing incentives on automobiles sold in Canada. Ford Motor Credit is decreasing the residuals in its leases to make them less attractive and to reduce their financial risk. Values for used light trucks have dropped by 30 percent over the last year. With a lease, the consumer pays the amount of expected depreciation over the lease term (typically 3 to 4 years). The lease company incurs a loss when the forecasted residual value is less than the vehicle value at lease end.

Source MSNBC

Saturn Vue Plug-In Development Progressing

2008-07-24T17:01:00.001-07:00

The Saturn Vue Plug-In Hybrid is approved for production and development is progressing. Eleven of the Vue plug-Ins are being tested with lithium-ion batteries. Later in 2008, sales of the 2009 Vue Two-mode Hybrid will begin. The Two-mode hybrid system is based on the system currently available on the Chevy Tahoe and GMC Yukon. The Plug-In version will be available in a few years.

Source GM FastLane Blog

Electric Mini in 2009

2008-07-23T16:31:00.000-07:00

BMW’s Mini brand will have electric cars on U.S. roads by the summer of 2009. Mini is still deciding whether to lease or sell the cars and where they will be sold. No estimate on how far the electric car will go on a charge. Mini is having a phenomenal year with U.S. sales up 34% due to high gas prices.

Source CNN Money

One Benefit of High Gas Prices, Auto Deaths Decline

2008-07-15T22:41:00.000-07:00

A new study shows that deceased driving, due to high gas prices, can reduce auto deaths by a third. The biggest benefit is decreased driving by high risk teenage drivers. The study, by Michael Morrisey of the University of Alabama and David Grabowski of Harvard Medical School, showed every 10% increase in gasoline prices reduced auto deaths by 2.3%. With gas now at $4 a gallon, Morrisey expects a drop of 1,000 deaths a month.

Source USA Today

Solar Panels Will Be Available on Next Gen Prius

2008-07-08T23:41:00.000-07:00

High end models of the next generation Toyota Prius Hybrid will have solar panels on the roof. The amount of electricity produced by the panels will be small and will only be enough to assist in powering the air conditioning system. The third generation Prius is expected next year.

Source MSNBC

55 MPH Speed Limit Making a Comeback

2008-07-07T17:07:00.000-07:00

With gasoline at an all time high, lawmakers are looking to bring back the 55 MPH speed limit. Senator John Warner wants the Energy Deportment to study what speeds cars are most fuel efficient and how much fuel would be saved. In 1974, a 55 MPH speed limit was imposed by Congress in reaction to the Arab oil embargo. It was repealed when gas dropped near $1 a gallon back in 1995. The lower speeds save fuel and reduce highway fatalities.

Source WCBS

BMW Opposes New Fuel Economy Rules

2008-07-02T18:36:00.000-07:00

BMW submitted a comment of opposition to the NHTSA over the 2011 Corporate Average Fuel Economy (CAFE) standards. The new standard calculates the fuel economy a vehicle needs to get based on the size of the vehicle. So a small car will need to get better fuel economy that a large pickup. BMW currently sells high performance luxury vehicles. Safety and luxury features add weight. Their entire lineup is rear or all wheel drive and the smallest engine is a six cylinder. BMW claims that the 2011 standards will encourage auto makers to increase the size of their vehicles to minimize the efficiency increases they need to make. This CAFE issue will be a mute point if gasoline stays above $4.00 because then it will be consumers not regulation forcing higher efficiency.

Source Automobile

Euro Ford Focus Stateside in 2010

2008-06-24T06:49:00.000-07:00

Ford will begin building the European version of the Focus in North America in late 2010. The four and five door versions will be sold in the U.S. The Euro Focus is on a more premium platform than the U.S. Focus. The Focus currently sold in The States is an update of the previous model. This move is a reaction to $4 gasoline. In 2010, Ford will also build and sell the Fiesta in North America. The Ford Fiesta is a smaller car than the Focus.

Source AutoWeek

Toyota Developing 2 New Hybrids

2008-06-17T19:13:00.000-07:00

Toyota will bring to market two new hybrid only models. They will be shown at the Detroit Auto Show. One will be badged a Toyota and the other a Lexus. The next generation Prius will also be ready in 2009. Toyota will begin sales of a plug in hybrid with lithium-ion batteries in 2010.

Source AutoWeek

Top Tips to Save Gas

2008-06-10T19:18:00.001-07:00

Go easy on the accelerator and brakes. Driving like there is an egg between your foot and the gas pedal is the best way to improve your fuel economy.
Do not accelerate much at high speeds. The engine has to work much harder when you are going more than 55 mph.
Use the correct motor oil. Consult the owner’s manual for the proper viscosity for your car.
Clean out your trunk and back seat. Any extra weight will hurt your gas mileage.
Buy a Scan Gauge. It displays your fuel usage and other information from your car’s computer.
Improve your car’s aerodynamics. Removing your roof rack could increase your mileage 2% to 3%.
Check your engine air filter. If it is dirty, your engine will work harder and use more fuel.
Get your wheels aligned. Your car will roll easier.
Keep your tires properly inflated. Under inflated tires can drastically reduce your fuel economy.
Keep your engine maintained. A regular tune up will ensure your engine is running efficiently.

Source Forbes

Cars Sales Top Trucks in May

2008-06-04T18:21:00.000-07:00

The Ford F-series lost its number one sales position for the first time since 1992. It was passed by four cars – the Honda Civic, Toyota Camry, Toyota Corolla, and Honda Accord. This is a sign of consumers reacting to $4 gasoline. Ford and GM have both been adjusting to the changes. GM is closing four plants to cut pickup and SUV production. General Motors is also developing smaller cars and an electric car called the Chevy Volt. Ford will begin sales of the subcompact Fiesta in a few years.

Source USA Today

$4 Gas is a Good Thing!

2008-05-30T17:09:00.000-07:00

Thomas Friedman points out in his op-ed column, that expensive gasoline is the only thing that motivates people to conserve. He points out the things a truth telling Presidential candidate would tell Americans. First thing is there are no quick fixes for gas prices. Rising global demand and poor energy policy in the United States are pushing up oil prices. The way to end our oil problems is to ensure high gas prices. The government should place a price floor on gasoline of $4. If the market price is higher than $4, then nothing needs to be done, but if the market price drops below $4 the gas tax should be raised to make the price $4. There should be tax rebates to offset this gas tax for the middle class and the bottom tax brackets. Gasoline at 4 dollars is the magic point where Americans drive less and buy smaller vehicles. When gas prices drop, as they did in the 1980s and 1990s, Americans buy larger and larger vehicles because they can afford to. The problem comes when gas prices rise and people can no longer afford the fuel for their large inefficient vehicles. The guarantee of $4 gas would cause consumers to avoid gas guzzlers because they would know the price of fuel would not drop. Car companies would need to make more fuel efficient vehicles to meet consumers’ expectations.

Source The New York Times