Jack Taylors

For my informational interview, I talked to Jack Taylors from Toyota of Bowie. I called him on a monday and he was happy to discuss the automotive industry. He gave me a lot of information and lengthy answers but I chose these three bullets as my take aways: 

• One really interesting trend is the number of vehicles originally sold in Canada that exist in the U.S. market. More than 2.5 million “Canadian Only” vehicles now reside in the U.S.; and not just in states bordering Canada, but all across the country. 

• While new vehicles are the focus for parts manufacturers and retailers, there’s still a strong market for older cars. There are more than 1.1 million registered vehicles from model years 1967 to 1973 on the road in the U.S. today. 

• The “green” trend is increasing it’s impact on the automotive industry. Though hybrid vehicles and alternative fueled vehicles are still a small part of the automotive industry, this segment is seeing some growth and will no doubt continue to carve out a firm niche in the market. 

I learned valuable lessons and information from conducting this interview and I was extremely surprised how people are great resources.  

Luxury Brand

In an attempt to compete in the auto industry sales, Cadillac has decided to create a new model that is focused primarily on the Urban Luxury Concept (ULC). Ordinarily, luxury buyers would focus on the size of the vehicle before making a purchase, but now the bigger cars can be "replaced by something more compact but equally luxurious." Cadillac has created a diminutive sized vehicle that offers the same luxurious aspects as some of their other models. This ULC model has "become very popular in places such as Europe and Japan." Although it doesn't look like the typical Cadillac, it shares similar features and "shares the [same] comfortable and high tech elements." Along with many great features, the ULC contains an engine that "uses electric assists to boost both performance and fuel-economy." This new model will not be "shown in the Cadillac showcase room anytime soon," until they know that it will make an impact on their buyers.

Cadillac is not the only automaker making strides to create smaller hyrbid vehicles. Companies such as BMW, Audi, Mercedes-Benz, and Lexus have all been taking steps to launch hybrid vehicles. They know that the more compact vehicles are being bought more frequently due to conservation of fuel, and don not wish to be left behind in the production process. I feel as though this is a good idea for all automakers. In order to compete you must give the buyers what they want. By adding the same if not better luxury parts, the companies will have a better chance of selling their product. As for Cadillac, even though it is mostly known for its' large and comfortable automobiles, it should consider showcasing this new product while emphasizing its' luxurious aspects. It may turn out to be a bigger sale than the company imagined.

http://www.thedetroitbureau.com/2010/11/First-look-cadillac-urban-luxury-concept/
By: Paul A. Eisenstein

GM IPO Looks Good

General Motors has announced that it will increase its initial public offering of common stock from $32 to $33 per share. This is a result of increased demand for GM stock because it has had significant profits after the 2009 bankruptcy bailout. The government’s bailout money, which has caused it to own approximately 61% of GM, will now be lessened after this generates $8.6 billion of revenue. After the IPO, the government will own only 35% of GM.

At the beginning of the month, GM claimed that it would issue 365 million shares of IPO stock. However, the strong demand from investors has increased the amount of shares offered by another 54.8 million according to the banks. The U.S. government wants to add another 84 million shares to this. Steven Rattner, the Obama administration’s leader for the bailout of the U.S. auto industry said, “Investors who have long shunned automotive stocks are giving the sector a fresh look as GM, Ford Motor Co., and Chrysler LLC deliver impressive financial results” (The Wall Street Journal). This has led SAIC Motor Corp., China’s largest auto maker, to buy approximately $500 million of GM stock.

During a continuing economic crisis, the Big Three have performed very well. All of their financial reports have amounted to astonishing numbers. This has increased their rankings as top investment choices. The Big Three have sought new production methods, have new management, and are producing innovative cars to remain competitive. These practices will continue because of GM’s obligation to pay back the funds that the government bailed them out with, and to assure that they remain in good stead. As we have seen, these automakers employ many Americans and have a huge effect on the economy.

Source: http://online.wsj.com/article/SB10001424052748703326204575616633069634188.html?mod=WSJ_auto_IndustryCollection

Social Media Stars as Ads

Auto companies used to have celebrities drive their cars around to raise publicity. Cash strapped car companies now turn to young people who have strong online presence. Toyota recently hired youngsters who have many followers on Twitter to advertise its Lexus brand. The online ads show actress Whitney Cummings interviewing those who don’t fit the typical celebrity label. The roster includes the Web editor of the Onion, an expert on social-media, and a disc jockey. From a marketing perspective, ads that show social-media stars are more effective than ads showing celebrities to get the attention of younger drivers. They conclude this because of the tendency for people to trust others who are like them. The stars quickly tweet, comment, and post their experiences with the cars online. Ford will select a hundred people with many online followers to test drive its 2012 Focus as part of its advertising campaign. BMW is also planning a similar promotion for its electric vehicle called ActiveE, which comes out in 2011.

This cheaper alternative to hiring celebrities is a hit. Ford proclaimed the strategy’s success when such videos and tweets essentially became viral hits; the YouTube videos got over seven million views, and Ford’s Fiesta was mentioned on Twitter four million times. Ford said 130,000 customers went to their website as a result and a massive 83% weren’t Ford owners. However, auto companies aren’t guaranteed that the social media stars will rate their cars positively. Guidelines set force these stars to mention if they received compensation for the review.

I think auto companies are on the ball with their approach to targeting younger drivers. I would say younger people are much more likely to pay attention to a subtle ad online than watching T.V. When you see that the user you’re subscribed to on YouTube or the person you’re following on Twitter likes something, you’re more likely to check it out. This trend is likely to continue as people are increasingly spending time on social networks. While the car companies are taking risks when they let social media stars say what they want about the cars, the danger of the marketing tactic to backfire is small. The companies know what’s on the line, so they would only let them test drive cars that are tested to be of the highest quality.

http://online.wsj.com/article/SB10001424052748704658204575610593926104822.html?mod=WSJ_auto_IndustryCollection

Don't Overlook Lexus

When it comes to advances in gas reduction for the automotive industry, the expensive brands are often overlooked. People often focus on vehicles such as the Nissan LEAF, the Toyota Hybrid Prius, the Hybrid Ford Escape, and more, while brands such as Mercedes, Porshe, and Lexus fall under the radar. Sometimes the market thinks that their high prices hinder them from truly reaching their market potential in things such as the green movement, but I disagree. They have invented new technology that will continue helping the economy progress in the green movement, and soon enough they will not be overlooked.

Most recently, Lexus came up with something called the "Artificial Intelligence Shift Control System" which can be found in their RX Hybrid 11. It is an advanced mechanism placed in the front of the car which detects when the car drives uphill or downhill and it signals when the energy shouldn't be used (like when going downhill) so it shuts off the engine.

Another indicator that Lexus is moving in the right direction is that they already meet Obama's fuel efficiency standards, which require all vehicles to get 35 mpg by 2016. Also, Lexus is made by Toyota, and they already have two electric cares due to hit the market in 2012. Therefore, improvements and innovations for Lexus are not distant.

Due to the fact that Lexus has innovations that other companies have yet to implement, that they already meet fuel efficiency standards which should be enforced by 2016, and that their makers are definitely headed in the right direction show me that they will not be overlooked in this green movement for long. Once people realize how innovative they are, they will be flooding their dealership.


Angelilli/Lexus, Brandi. "Lexus vs. the Future." Telephone interview. 10 Nov. 2010.

New leaders, but don't give up on the others.

 General motors Co. overtook Toyota Motors Co. as the more profitable automaker this year, while Ford Motors Co. held its lead as the world's top-earning manufacturer amid rising global sales for the industry. GM reported third-quarter net income of $2.16 billion today, bringing the automaker's earnings this year to $4.77 billion. That tops the $4.46 billion profit by Toyota in the nine months ended Sept. 30, according to data compiled by Bloomberg. Those numbers are understandable because after all of controversy surrounding Toyota, no consumer who wants to buy and reliable, safe car will want to purchase a Toyota.

    However Toyota is not out of luck. There is still hope for them to rise to the top of the automotive industry again. “I'm a believer in the auto cycle,” said Alan Tarver, a fund manager Frost Investment Advisors in San Antonio, Texas, which holds shares in Toyota and Volkswagen. You've been through “the bottom, and you're coming out of it. Sales units are stronger, and everyone's nudging up their production assumptions.” So for those who have stocks in Toyota should hold on to them and ride out the industry cycle. 
http://www.autonews.com/article/201010/OEM/101119981/1401

Unrealistic Car Expectations?

CEO of Daimler Company, the makers of Mercedes Benz, Smart Cars, Fuso and more, is claiming that the auto industry won't be able to keep up with the strict regulations being placed on fuel efficiency. He claims that the over-optimistic expectations are just causing car makers to give up because they can't keep up with the rules so they don't even feel the need to try anymore. The CEO, Mr. Zetsche, claims that "In 10 years' time, the overall market share of electric cars is likely to be still in the single-digit percentage range."

Mr. Zetsche did however add that in 10 years the fuel efficiency around the world will be at such a high standard that the competitiveness that is beginning to be spurred now is necessary, just a little unrealistic. Regardless, Zetsche says that Daimler is "full on track" to have a completely electric car on the market in 2012, because of their 5 diget production rate. They have already presented an electric version of their A-Class in Paris this past October.

Despite all of the problems that have become relevant in the past year about electric cars, such as battery life, old gas storage, charging stations and more, I still feel that the auto industry as a whole needs to continue working hard towards perfecting all of their problems. In the near future, the whole auto industry will be electric and if America doesn't start to comply with the Obama regulations then we will fall behind and lose money. If we attempt to reach the standards and fall a little short, as long as the companies are close the auto industry as a whole will be fine and on the right track towards becoming the strong industry that it needs to be.


http://online.wsj.com/article/SB10001424052748703848204575608230602308648.html?mod=WSJ_auto_IndustryCollection

BMW Accelerates

By 2013, BMW will have created its first hybrid supercar, in an effort to create more fuel efficient vehicles. This model will be able to accelerate to "100 kilometers per hour in 4.8 seconds while emitting 99 grams of carbon dioxide per kilometer." Strategies for boosting the car sales are already in effect. It should attract many consumers because the new sports car enables doors that open upwards, and is "powered by a three-cylinder diesel engine and two electric motors." BMW is looking to achieve high market presence with this vehicle. It is striving to become one of the leaders in hybrid and environmental technology; however, it will take a while before it can earn this title.

I feel that this is a smart choice on BMW's part. This manufacturer is well-known and well-used throughout the world; therefore, creating a hybrid vehicle will allow some of its' faithful customers to join in on this environmental conservation process. BMW will be selling a vehicle that not only will be more fuel efficient, but the style of the car will attract many customers, especially the younger crowd. It should not have any problems with trying to sell this new model, as long as it sells at a considerable price and, through marketing and advertisement strategies, promotes safety and reliability to its' customers.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20101105/ANE/101109878/1193

GM is Rolling in the Dough

General Motors has said that it earned $2 billion in the third quarter of this year. This is the third consecutive quarterly profit GM has made due to its pickup trucks and consumers paying higher prices for its vehicles. At this time last year, the company had a $1.2 billion loss immediately after being saved out of bankruptcy. GM has reported earnings per share of $1.20 compared with a loss of 73 cents a share in July 2009. This is due to the company cutting costs.

The automaker reported that it made $1.4 billion on its operations. GM has said that this year will be the first annual profit since 2004. The company has seen U.S. sales improve and fast growth in China and other markets as well. On average, the auto maker earned an average of $3,005 on each vehicles it built. This compares to Ford earning an average of $2,710 on each vehicle and Chrysler only making $593 per vehicle.

GM has seen consumer trends change in the past year. According to officials, “The trend toward buyers favoring trucks could be a troubling sign for auto makers as GM and its rivals prepare to launch a string of small cars-largely in response to stricter U.S. fuel-economy standards,” said Rebecca Lindland. The recent profits have helped GM pay back some of its bailout money and also pay for pension plans.

With new management and a better runned company, I am confident that GM will continue to do well. The company has done a lot to change itself, and it is using the bailout money wisely. It is trying to reestablish itself in the marketplace and be a major competitor overseas.

Source: http://online.wsj.com/article/SB10001424052748703805004575606200306436706.html?KEYWORDS=auto

Foreign investment, everybody's doing it

The city government of Beijing will soon become the largest private employer in Saginaw, Michigan. In a few weeks a unit of GM there will have Chinese owners. The steering equipment producer was known as Saginaw Steering Gear, and is now called Nexteer. 8,300 people work for Nexteer around the world. The Chinese investors out-bid Korean and U.S private-equity contenders. The Beijing owners are known as Pacific Century Motors. This is the first time in history where China’s investors bought such a large U.S. industrial operation. The $450 million deal includes 22 factories, 6 engineering factories, and 14 customer-support centers, located around the world. This action tests people’s attitudes towards foreign investment. A major incentive for GM to make the deal was for Nexteer to dive into the booming Chinese auto market. Some workers see this deal as a life saver in the short-term, but aren’t sure if it’s good for them in the long-run. An unknown is whether the Chinese owners acquiring over 1,000 patents will benefit or hurt the workers. Chinese investment increases the leverage the U.S. has over China to let more U.S. firms in. Alan Wolff, an attorney for Dewey and LeBoeuf, says foreign investment built the U.S. for years. He points out that the investment bolsters U.S. manufacturing, which is better for the U.S. than Chinese manufacturing.

I think this deal shows the beginning of the increasing mix of investment between the U.S. and the world. These types of investments happened before with Japanese investors, and they created manufacturing jobs for the U.S. The interest in the unit by Korean investors also show that we will most likely see Korean owned units in the U.S. soon too. I think the increased investment in the U.S. by foreign investors improves political stability for the U.S. If countries are economically interdependent with one another, they will be much less likely to be aggressive or go to war. I understand that many workers are scared of working for foreign owners. However, the U.S. has done these investments to many countries around the world. The nations that got the investments at the very least gained jobs, and many countries have grown tremendously because of the foreign investment.

http://online.wsj.com/article/SB10001424052748703957804575602943255219552.html?mod=WSJ_auto_IndustryCollection#articleTabs%3Darticle

Best Deals of the Year

Toyota brand boss Bob Carter said  the automaker will launch special leasing and purchase deals within weeks to boost flagging volume. Toyota Motor Sales U.S.A. reported October U.S. sales fell 4 percent from a year earlier. Still reeling from a series of safety recalls this year, Toyota was the only major automaker to post a sales decline last month as the overall industry advanced 13 percent. 

Toyota's U.S. sales are up 1 percent year-to-date, compared to an overall market that is up 11 percent. Carter told journalists the new Toyota Care campaign that includes routine maintenance as standard for all vehicles has improved showroom traffic.  He pledged to follow that with a series of financing and leasing incentives later this month during Toyota's annual Toyotathon sales event. “You will see an enhancement to marketing and incentives but [they] will remain consistent in the APR and lease arenas,” he said. “They will be the best deals of the year -- leasing and APR deals are moving the market.”

Carter added that some light truck incentives will be cash because that's what is typical in those segments, but most will remain leasing and finance deals to protect the brand. Toyota's lingering image problems from recalls and the aggressive discounts the automaker used earlier in the year may cut into sales in the fourth quarter, analysts said. “The recalls are still a black cloud around Toyota,” said analyst Jesse Toprak of TrueCar.com. “Other automakers are making better cars than a few years ago, so this damage to customer loyalty could be very costly for Toyota. There's a chance these losses are permanent.”


I think these incentives and deals are necessary for Carter and Toyota to take action in order to boost consumer sales and trust.  Especially with Toyota's imagine problem and recalls, consumers are now losing their customer loyalty and Toyota's sales are decreasing. Once the " best deals of the year" take place, it will be interesting to see what happens to Totyota's sales and their corporation's image. 

http://www.autonews.coms/pbcs.dll/article?AID=/20101103/RETAIL01/189009485/1448#ixzz14JlSM63N

Strap Up

The Supreme Court has been suggesting whether or not there should be regulations that "require car makers to install shoulder-and-lap seat belts in all rear seats because of cost concerns." There have been individuals who feel the need to sue car makers that install lap-only belts; however, this would affect the National Highway Traffic Safety Administration costs. Recently, there has been a Supreme Court ruling that "barred a lawsuit against American Honda Motor Co. for injuries sustained in a crash involving a 1987 Honda Accord that wasn't equipped with air bags." The ruling was prohibited, but the regulators "intended to promote a variety of passenger restraints in cars." On the seat-belt issue, regulators are encouraging the installation of shoulder-and-lap belts. Still, it is up to the manufacturers to design what is most appropriate for their vehicles.

I feel as though there should be a law that prohibits car manufacturers to install shoulder-and-lap belts in all vehicles. With there being so many automobile accidents, there needs to be a higher concern for automobile safety. This doesn't mean that it will always prevent death or injuries, however it will create a better chance for those in the vehicle. I don't think that it should be up to the auto manufacturers because this is something that concerns the lives of the individuals who purchase the automobiles.


http://online.wsj.com/article/SB10001424052748703506904575592562770384770.html?mod=WSJ_auto_IndustryCollection

When people buy a car they consider many different options; some focus on looks, some on speed, others on safety. But everyone cares about reliability. American and European brand name cars are now getting a wake up call because Asia continues to have some of the most reliable cars including Toyota and Honda Motor Co. Predictions say that their 2011 models will only strengthen their reputation.
But Ford and GMC are not just sitting back and watching Asian cars surpass them. They have been working hard to improve their reputations by sending the unreliable cars to the scrap yard and by creating new models such as GMC's 2011 Chevrolet Equinox crossover wagon and Buick LaCrosse sedan. Also, Ford's Fusion sedan is now top-ranked when it comes to family cars.
Reliability is such an important factor because the more people can trust the company's car, the more they are willing to pay for it. Just last quarter Ford earned 1.7 billion. But their work is not done yet, they are still only ranked 10th out of 27 in reliability.
David Champion, senior director of Consumer Reports auto-test operations says, "It doesn't take very long to lose a good reputation, but it takes five or 10 years to gain one." Ford and GMC are now on the right track.

I feel that in general, Ford and GMC have nothing to worry about because soon enough they will find themselves in the top rankings. They have been slowly climbing up by building trust with their consumers, and eventually they will get to where they need to be. Toyota on the other hand, may need to be worried. Last year they experienced many recalls and probably lost a lot of consumer trust. Overall, I feel that American brands will soon take the lead, but in the future the reliability list will continue to be one that fluctuates constantly.

BMW Sells Well in China

Affluent Chinese consumers have been purchasing BMW vehicles in the past year. BMW has reported that their net profit grew by $1.22 billion since last year. The auto maker increased the profit margin on its cars to 7% from being 5% in past years.

These profits have been a result of streamlined cost structures as a result of the market decreasing last year. The company has a target sales of more than 1.4 million cars this year. Sales are up by 13% compared with the same period last year. BMW has claimed, “It expects sales momentum to continue in the fourth quarter with robust growth in the double-digit percentage range” (The New York Times). This confirms how BMW expects growth to continue at a steady rate until the end of the year.

BMW has seen great improvements in the sales of their vehicles in China due to their release of the 5 Series Touring and the Mini Countryman. Soon, the new BMW X3 will be on sale, which has shown positive feedback as a result of many orders for the vehicle in dealerships. I expect BMW to perform well in the future, but this is variable because of the economy. BMW will have to focus on the growing Chinese market as the U.S. market still recovers from this recession.

Source:

http://online.wsj.com/article/SB10001424052748704462704575591660311662990.html?KEYWORDS=auto+industry

Finally some good news...Auto sales improving

A top sales analyst at Ford expects that October new-vehicle sales grew 12% for the auto industry. The annual selling rate is also expected to rise to its highest level in more than a year. 950,000 new cars and light trucks were expected to be sold this October compared with 838,052 the same time last year. This would mean the annualized sales pace for October grew to 12 million; the last time this happened was when the cash-for-clunkers program was in effect. Sales for Hyundai increased 38% from last October to 42,656. BMW sales rose 12.4% to 23,222. Volkswagen reported a sales increase of 18% to 20,084. Subaru sales also went up 25% to 22,720 cars. It’s still too early to know if this signals a needed recovery for the auto industry. While consumer spending has recently gone up, consumer confidence remains weak. This upward trend must be supported by higher consumer confidence for it to continue.

I think this is great news for the auto industry. If I’m worried about my finances and keeping my job, buying a brand new car would be out of the question. The increase in sales indicates that more people are feeling financially secure. While the economy is still in terrible shape, these numbers show that it’s getting better. Because sales have gone up for many companies, it is likely that the market is improving rather than a single company suddenly succeeding. Hopefully the auto industry can pick up some speed after seeing some positive numbers.

http://online.wsj.com/article/SB10001424052748704462704575590662948503410.html?mod=WSJ_auto_IndustryCollection

Big money for a little car

              Imagine spending 190 million dollars for a small sedan? That is what General Motors Co. plans to spend $190 million in a Michigan plant to build a small sedan for Cadillac. General Motors CEO Dan Akerson is supposed to reveal the news tomorrow at the Lansing Grand River assembly plant. The Lansing State Journal and The Detroit News reported the news today. GM officials and Lansing Mayor Virg Bernero,  the Democratic candidate for Michigan governor, announced the news together. The Cadillac ATS will be marketed below the CTS. CTS will no longer be the smallest Cadillac model. The ATS, a compact luxury coupe, is expected to go on sale as early as the 2012 model year. Speculators say Cadillac may sell coupe and wagon versions of the ATS as well. GM already builds the Cadillac STS sedan and CTS sedan, coupe and wagon at the Lansing factory. The Lansing City Council voted to offer GM about $9.8 million in tax breaks to persuade the company to build a new model at the plant, the State Journal reported. The paper said city officials expect the investment and addition of the ATS sedan to create about 600 jobs at the plant.
    It is a definite perk to investing that much money into a new model of a sadan that the plant provides 600 jobs. If it weren't for the people that are now able to support themselves from this plant, I would think it is a little extreme to waste that much money, time and energy on a model that, personally, doesn't have that much consumer appeal. Only time will tell if GM made the smart investment. 

http://www.autonews.com/apps/pbcs.dll/search?Category=SEARCH&SearchProfile=1250&exclcat=COPY;COPY01;COPY02;VIDEO;HOLD&noblankcheck=1&ProfileName=--%20Chrysler%20brand 

Consumer Reports Says Yay to Some, but Nay to Others

Surprisingly, Ford had the highest-ranked models in the family car segment with their Ford Fusion Hybrid and Ford Fusion V6 models. This vehicle beat the Toyota Camry and Honda Accord, which do not usually lose in this segment. However, Toyota led in five other segments, but scored only an average rating on their popular Prius model. This was a decline from last year. Toyota’s major recall on the brakes of the Prius caused it to score significantly lower than usual.

As the Japanese and most of the American automakers strive to the top of the charts, the European luxury brands were in a different category. BMW, Mercedes-Benz, and Audi performed very poorly. In particular, BMW had five of 11 models ranked below average.

The overall comparison ranked Scion as the best brand and Chrysler as the lowest-ranked brand. Unfortunately, Chrysler has not undated its model line to meet consumer demands and it has not improved like Ford and GM. I expect Chrysler to create even more of a financial deficit than it already has in the future and I am sure that it will run out of business within the next ten to fifteen years. Ford and GM have shown that they are taking the initiative to improve their image and their hard work is paying off. The improving ratings of these two brands has helped shift consumers eyes off of the popular German brands and redirect them to American automakers.

Source: http://online.wsj.com/article/SB10001424052702303341904575576454238670026.html?KEYWORDS=auto+industry

Fuel Efficiency Standards for Trucks

Fuel economy targets have been set for small vehicles, which inclues anything under 8,500 lbs.) for many decades. But now for the first time ever the Obama administration is attempting to set fuel-economy standards on trucks, buses and tractors. The goal they want the Industry to achieve is for all trucks to be 20% more fuel efficient by 2018.

This is such an important issue to address because although trucks over 8,500 lbs. only make up 3% of the vehicle fleet, they consume over 15% of the fuel. For example, a garbage truck takes 5 miles per gallon, while traveling on average 20,000 miles per year...thats means they consume over 3,600 gallons a year! With the implementations of these electric and hydraulic hybrids they are expected to save 1,100gallons of fuel within the first year.

Although it seems that there are only positive consequences to this change, that is not the case. Because of the new technological advances that will be needed to improve the fuel-economy, the expected cost of the improvements come out to 7.7 billion.
in order to bounce-back from this outstanding debt, they will raise the prices significantly to make sure the buyers recover the cost within the first year. The American Truck Dealers Association cautions that this plan will deter many small market buyers from purchasing trucks. But others argue that on average, a truck driver will save 74,000 over the span of a trucks life. These enormous savings should bring back and buyers that may have been in doubt.

At first a higher price tag on trucks, buses, and other heavy vehicles may make buyers question their purchase, but in the end I feel that they will realize that will save money. Before making a purchase they will speak to the sellers and they will eventually understand that they will save the money they would've normally put towards gasoline and spend half of it on the vehicle itself, and just pocket the rest. This idea to up the fuel efficiency standards is a fantastic plan to keep our overall fuel usage down.


http://online.wsj.com/article/SB10001424052702303467004575574251198447096.html?KEYWORDS=all+electric

Problem, Officer?

A study was conducted to see which car models received the most traffic tickets. Quality Planning, a company that analyzes driving statistics for insurance companies, looked through data on 2 million cars. High-performance luxury cars got a lot of tickets. This is probably because these drivers want to test out what these cars can do. Colorful SUVs and compact sporty cars with young drivers also got a lot of tickets. Overall an average of 1 moving violation was found for every 500,000 miles driven. The most ticketed model was the Mercedes SL, which received 4 times more tickets than the average model. Others on the top 10 most ticketed models list include the CLS 63 AMG sedan, the Scion tC, the Acura Integra, and the Toyota Camry Solora convertible. The least ticketed models include bland SUVs, minivans, and average looking cars. While Quality Planning doesn’t have an official conclusion, they suggested that drivers who want to drive fast often buy high-performance cars. This leads to these cars being on the receiving end of speeding tickets.

Some interesting finds in the article that were conducted in separate researches include:
• Out of town drivers who are caught speeding are more likely to pay and pay a higher fee for speeding than drivers from that town.
• Drivers caught speeding in cities with budget deficits were more likely to be handed pricier tickets.
• Young women received 33% less tickets than men, but women over 75 years old got tickets at the same rate as men.

I think it makes sense that luxury cars get more tickets than average cars. I agree that drivers who are riskier and more aggressive tend to drive high-performance cars. Another good reason these flashy cars get more tickets could be that these cars simply get more attention than the average car. A police officer sitting in his car with his radar gun sees cars speeding all the time. A car that triggers his attention is more likely to make him give chase. On the finding that young women get a third less tickets than men, I wonder if this meant women are less likely to speed or women are less likely to get a ticket when they are stopped. If it’s the latter, it would be interesting that police officers have such a bias.

http://online.wsj.com/article/SB10001424052702304510704575562313011143510.html?mod=WSJ_auto_TopRightCarousel_1

Environmental Limits

As we know, many auto makers are trying to produce better fuel efficient vehicles. This is why we have been noticing more hybrid gas-electric vehicles, as well as all-electric vehicles. Auto manufacturers have found that all-electric vehicles help cut greenhouse gases and smog, which is very beneficial to the environment. However, when it comes to hybrid gas-electric vehicles, there is not much of a difference between the two products. It's obvious that electric vehicles have lured in its customers because of "its ability to curb use of fossil fuels, which spew out pollutants including greenhouse gases." Studies have found that "charging an electric car over a 10 year span could be as much as 80% lower than driving a gasoline powered car." With this also comes and economic issue that troubles many individuals, and that is whether or not the battery packs used by plug-in hybrids will be recycled. Right now, there aren't many recycling companies that will take in such large batteries and because of this, GM Co. and Nissan Motor Co. are trying to find ways to give batteries a second life.

I feel as though no matter what the automakers try to come up with to build a more fuel efficient economy, there will always be an opportunity cost. There will be some benefits to their ideas as well as some disadvantages. Some people aren't always going to agree with the products being used because of how harmful it could be to society, such as the batteries not being recycled, but looking long-term, it's evident that using electrical vehicles are still better for out environment. The most important thing is to find ways to reduce greenhouse gases, and as long as that is taking place, there shouldn't be much disagreement with how the auto industry is working.

http://online.wsj.com/article/

Beijing demonstrating power equals halt to BYD Co.

The chinese government ordered BYD Co. to surrender land in a recent zoning dispute. They confiscated approximately 121 acres of land in Xian, a central chinese city.  This caused a slow in chinese national competition in the car battery and auto maker market. BYD was no longer able to build the car plant they were planning on building there next year. China's minestry of land and resources said that the reason for confiscating the land was because the land was illegally adjusted to industrial from agricultural. They also scolded dozens of government officials, and fired the main decision makers who were a part of planning how to build on the land. 


In addition to firing of government officials, they hit BYD with a 295 million yuan plan, which is 442,000 dollars in U.S dollars. Still, an individual close to BYD said the company, one of China's best car brands, might have to look for a different site in Xian to build a third assembly plant. Each existing plant in the city can produce 200,000 cars a year. BYD said Wednesday that its car sales in China last month fell 25% from a year earlier to 33,085 cars, even as China's overall vehicle sales rose 19%. 


I think It would be a shame that BYD, a main player in the Chinese auto industry would be out of the competition because of a mistaken use of land, and a fine. I think this was a little bit extreme of a consequence and I believe they should of approached BYD in a different manner and went into greater detail about why China's ministry of land and resources was taking the land.  I want to follow BYD in the future to see how they recover from this set back. 


http://online.wsj.com/article/SB10001424052748704763904575549793829052072.html?mod=WSJ_auto_IndustryCollection

Solar Cars in my neighborhood? Not for a while

Enough sunlight hits the earth in an hour that it could power the world for one year. In 2008 Louis Palmer drove around the world on a car that uses solar energy as power. In 24 hours he could travel up to 100 kilometers at night. However, these solar powered cars are very bulky and require plenty of sunlight to travel a decent distance. Throughout the years car makers have developed solar cars, but they have never reached the mass market because it is simply too impractical; solar panels just don’t generate enough energy. Currently a square meter of solar panels only get seventy-five percent of a kilo-watt hour per day. This would let you travel 2 miles. Despite these challenges, inventors and auto companies continue to research solar cells. Solar power could be fused with petroleum and electricity, helping shape a tribrid car. For $10,000 extra, the 2010 Toyota Prius can come with a solar roof. The Leaf hybrid car by Nissan can also be made with solar panels. When the day comes when an average car runs on solar energy, the solar panels may be on houses rather than the cars themselves. 10 square meters of solar panels on the roof of a house could power a car for 15,000 miles.

It’s unfortunate that technology isn’t advanced enough for solar panels to generate a respectable amount of energy. I do have hope that in the future that they will, and that would solve the energy crisis the world is going to face. I didn’t know that a Prius could come with solar panels, as that means the car utilizes 3 forms of energy already. I’m glad that auto companies are exploring solar energy as well as other renewable energy sources. With any luck, gas stations will become non-existent in my lifetime. I think one day almost all homes would have solar panels on the roof. It would be amazing if a house could function on its own just from generating energy from sunlight.

http://online.wsj.com/article/SB10001424052748704129204575505803617253926.html?mod=WSJ_auto_IndustryCollection

Mercedes Benz Worries About Confusion

New president and CEO of Mercedes Benz, Markus Schaefer, is growing more and more worried as the days pass. Previously, when people were going to buy cars their main concerns involved superficial wants; How big are the rims? Does it have a spoiler? Etc. But now, thanks to the growing green movement, the consumers main question should be which car is best for my unique usage? Because every driver uses their car for different purposes, some long-distance, others short-distance, and still others are somewhere in between.

Therefore the company adapted and released new cars for every different kind of user. For the country-styled folks who like to take road tips they made the Bluetec diesel engine which is used in the E-Class Sedan. For those like to stay in the city they made the all electric vehicles, because they dont need to worry about being stranded due to an an charged batter since it will be docked most of the time. Ten for the people who live in the city but still like to get away sometimes they made the S400 hybrid sedan and the ML hybrid Sports Utility vehicle to give them a taste of both worlds.

Mercedes Benz as a company is adapting well to these changes towards a more green economy, but the big question is whether or not consumers will be able to do the same. 2,424 adults entering Mercedes Benz were surveyed and asked if they would like to drive a vehicle that runs on alternative fuel. Just over 50% said yes. Out of that 50%, only 35% felt that they were educated on which kind they should buy. The thought that the public will not make the correct decisions when purchasing a vehicle is worrisome to the company because an incorrect purchase may deter them from coming back for more in the future.

But I do not think this will impose a big threat to the company, or the auto industry as a whole. I think this because for most people, any purchase over $500 will require a lot of thought and contemplation. Usually, car purchases are not impulsive, they are well thought out. They will recieve information from the dealers themselves (Schaefer is requiring more interaction between dealers and potential customers), and they are adding a lot more information to their websites and pamphlets. Therefore, I believe that the consumers will seek out information on which car is best for them, and ultimately make the right choice.

Sourcce: http://online.wsj.com/article/SB10001424052748703440004575548142995118902.html?mod=WSJ_auto_IndustryCollection

Ethanol Use is in Question

The Obama administration is exercising a demand for greater ethanol content in gasoline for newer cars. This could greatly benefit corn growers, however, it has been strongly opposed by automakers, livestock ranchers, oil refiners, and some public-health advocates. The Environmental Protection Agency is planning to announce that ethanol levels will be approximately 15% in gasoline blends of vehicles made since 2007. This is an increase over the previous 10% that gasoline blends contained.

There is strong criticism of this because many officials claim that there is not sufficient research for this change in ethanol levels. The opposition to this movement has also said, “Allowing 15% ethanol blends for some cars but not others could confuse customers at the pump”(Wall Street Journal). The EPA has said that gasoline pumps should be well labeled to reduce the possibility that drivers will use the wrong fuel in their cars. Another concern for the ethanol industry is that the 45 cent a gallon excise tax credit, which helped increase the demand for ethanol is going to expire at the end of 2010.

It seems as though this movement by the Obama administration is illogical and therefore, consumers will not respond well to this change in ethanol content. The slow economy will not urge consumers to buy new vehicles that will allow for this change in ethanol content in gasoline blends. At a time when other alternative energy resources are the main focus, ethanol is not viewed as one of them because it does not yield as much energy as other resources.

Source: http://online.wsj.com/article/SB10001424052748703440004575548883403355828.html?KEYWORDS=auto%20industry

Is it worth it?

As we consider The American University, we find that there are many students who navigate around campus in their own vehicles. The campus is fairly small and the university has supplied its students with a shuttle to transport them back and forth to the Metro station, which is supplied by the city. Now, is it really necessary that the students have vehicles? The university alone costs over $52,000 to attend yearly. If a student desires to have a car, then they have to include the cost of parking on the campus property, as well as putting gas in their vehicle. The price begins to rise quickly, especially with other expenses that the student is responsible for. Granted, many of the students come from financially stable households and have no concern over how much money they are wasting. The DC area has provided them with an accessible way to maneuver around the city, yet they still wish to drive their own vehicle.

I feel that it isn't necessary for American students to have cars. The only reason why they may need one is if they live off campus. However, if they are on campus, then they should use the resources that they have been provided with. As most of us know, being a college student comes with having responsibility for your own finances. Money gets tight, and things are becoming more and more expensive. I haven't even mentioned the cost of automobile repairs. Why not use some of the money that you would put into your vehicle to use somewhere else? Some people think that it's an easier way to get to social gatherings throughout the city, but if there is a way for students to get around that will not hinder their social life, then they need to use it to their advantage. With that said, the social status of the students of university is very high; therefore, I see no change in the amount of vehicles that will be brought to campus by the students.

The Ford Fiesta is on the Right Track

In the past, small cars were used by those who couldn't afford the perks of a big car. They didn't have any sort of styler, no airbags, and after a while the startup may have become difficult. But nowadays things are changing. Small cars are becoming more luxurious and appealing to the public. Take for example the Ford Fiesta, it may be a small car but it has a lot to offer; stability control, anti-lock brakes, automatic dimming mirrors, a voice activated sound system, almost every kind of airbag you'd ever want (including one for your knees!), and most importantly, 40 miles to the gallon. Obama's administration understads the huge problem that our gas-guzzling economy is causing our future. Because of this they are setting a goal that mist be met by 2025- most cars on the market must be 2 times more fuel efficient than those sold in 2009. In order to reach this goal they are setting mini targets in 2017. But California says Obama's plan isn't enough. They are setting their own standards separate from those of the nation stating that every year the average fuel economy of every car must boost by 3 to 6%. They understand that not every car will follow the standard, but their hope is that most will, and that will make a huge difference.

I believe that the Ford Fiesta will help the Auto industry reach this fuel efficiency goal set by California and the entire nation. although it may seem like a lot to increase by 50% or more in just 15 years, from 1975 to 1987 the fuel efficiency increased by 67%...so our nation's goals are by no means impossible. Another reason I believe that the Auto Industry will accept and abde by these changes is because the rest of the world is already doing so. Europe and China have already set standards and are reaching them, if we don't do the same then our auto industry will only cater to one nation, ultimately making it less valuable. I do not see that mistake in our future.

Toughen up

The U.S. Transportation Department on Tuesday started a more rigorous system for grading car safety, which applies to cars and light trucks starting in the current 2011 model year. The new system gives vehicles one overall safety rating, in addition to various sub ratings. This tougher crash test is making it more challenging for cars to get their " 5 star" crash rating. Which is good because too many vehicles were getting top scores on the government's previous crash tests, so regulators made the tests harder. For the first time, the tests use crash-test dummies to gauge the impact of a crash on women, not just men. The tests also simulate a crash into a pole on the driver's side.The U.S. plans to test about 55 vehicles from the 2011 model year under the new system. Of the 33 tested so far, only two achieved an overall score of five stars, BMW AG's BMW 5 Series and Hyundai Motor Co.'s Sonata. Some say that sales of the non "5 star" vehicles will severally decline, however, I think that there is only a small handful of consumers that wouldn't buy a vehicle because it wasn't 5 star. "We're just trying to make the manufacturers stretch" even more to make cars safer, said David Strickland, chief of the National Highway Traffic Safety Administration. The car industry hasn't taken a position on the new system, so it will be interesting to see how this new system plays out. "It's like in high school, when every student gets an A, you want to switch the test," said Wade Newton, a spokesman for the Alliance of Automobile Manufacturers. All in all I think this is a great decision. A "5- star" safety rating doesn't mean much if everyone is getting one. Therefore, I think this new system will save lives because it forces manufactures to make safer vehicles. 

http://online.wsj.com/article/SB10001424052748703843804575533961959252030.html?mod=WSJ_auto_IndustryCollection

GM is on Track with Obama Proposal

GM’s bailout and bankruptcy money, which lead to 61% of the company under the ownership of the U.S. government, has lead the automaker to adhere to Obama’s goals for fuel-efficient vehicles. The current Chevy Tahoe and Cadillac Escalade get an average fuel economy of 15 miles per gallon. With the redesigned models in the works, GM will increase the fuel economy of these vehicles to meet new mileage regulations. GM is working at a fast clip in order to gain greater SUV and truck sales. This is necessary in order to raise the initial public offering of stock later this year. The IPO will provide the funds for the beginning stages of reducing the government’s involvement in the company.

Obama’s administration has urged, “Smaller, more efficient engines, and wider use of electric propulsion” (Wall Street Journal). The administration has set different approaches in order to reach their goal for improving fuel economy.

The first method involves increasing fuel efficiency to 47 miles a gallon, which adds as much as $1,050 to the cost of a vehicle. This has the potential to save consumers between $4,900 and $5,200 in fuel costs over the life of a car. Another, and much more aggressive, method would propose that the fuel economy to 62 miles a gallon. By doing so, this would add between $2,800 and $3,500 to the cost of an average vehicle. However, this could save drivers between $5,700 and $7,400 over the life of the car. The government has also said that to achieve this manufacturers would have to increase their sales of gas-electric hybrids to 68% of the market and cut 26% from the weight of the average car.

I endorse this proposal by the Obama administration because it gives automakers a need to create more fuel-efficient vehicles. GM’s concern with the efficiency of their vehicles will also encourage other car companies to follow suit. It also increases the investment that manufacturers make in alternative energy solutions. I’m interested to see how the auto industry looks by 2025, and whether most Americans are either driving hybrid or electric vehicles. If so, the overall economy of the U.S. will change and we will be must less dependent on foreign oil for our energy.

Source: http://online.wsj.com/article/SB10001424052748703859204575525963701140270.html?mod=WSJ_auto_MiddleSecondHighlights

Tougher Safety Standard

There may be a lot less car ads in the future that tout their 5 star safety ratings. Many 2011 car models will have to undergo a tougher safety standard set by the U.S. Transportation Department. Cars will now receive sub ratings along with the overall rating. Crash test dummies will now also include female models. The change in rating system could cause confusion among consumers who are used to the old ratings. The stricter standard is evident from the fact that the 2011 Toyota Camry earned 3 stars overall, while the 2010 model received 5 star ratings for both front and side crashes. Advancements in safety and design has helped lead to the fewest number of traffic deaths in 2009 since 1950. Some in the auto industry worry that the new ratings would lead to a drop in sales. Some worry that consumers could decide to not buy a car because it doesn’t have a 5 star rating.

I think it makes perfect sense to keep imposing higher standards to keep innovation going. Once companies earn 5 star ratings for their cars, they would do little to improve it. Setting the bar higher means the auto industry must keep improving the quality of its cars. The complacency of companies with their models is evident from the fact that the Toyota Camry’s ratings fell so much in a year even with the new test. Consumers expect newer models to be safer and higher quality in exchange for the higher price. This new standard will ultimately help consumers by providing them with safer cars.

http://online.wsj.com/article/SB10001424052748703843804575533961959252030.html?mod=WSJ_auto_IndustryCollection

Volvos new look

Before this innovation the main problem with electric cars has been where to store that heavy bulky battery.  However Volvo is working with the imperial College of London on a three year project that will turn the electric car's body into the battery itself. The Imperial College researchers are working with a polymer resin and carbon fiber blend to make special body panels that could store enough energy to restart a hybrid car's engine, or add a small amount of range to an electric car. Emile Greenhalgh, the aeronautics engineer at Imperial College London who's leading this three-year project said, "Our lightweight carbon-fiber panels can carry a mechanical load and store energy simultaneously, and we're working toward achieving a 15% weight savings in a Volvo hybrid test car." It maybe another year until testing the new model is underway though.  Despite common thought the car's panels are not that complicated. The new car's program turns the body panels into structural ultracapacitors, which are like batteries in that they store energy, but the energy can not be stored for long it has to be released quickly. It's great for short jolts, like a hybrid accelerating.


I think this new innovation sounds like a great idea for the electric automotive industry. I thought this was a obscure concept at first and was a little skeptical about its safety. However, Volvo's role in the E.U.-funded project is providing advice on how the new technology might be incorporated into future vehicles, and offering pros and cons on cost and user-friendliness, which gave me a better understanding. Also, in regards to its safety, A number of automakers are working on ultracaps to supplement batteries in hybrid or electric vehicle applications, so you won't get shocked. The carbon fiber carrying the charge will be deeply embedded inside the panels, between insulation and other composite materials. Finally since the voltages aren't high, there's not much danger if the panels are broken up in an accident. All and all I think in a couple of years Volvo will have great success when releasing this new technology. 


http://www.forbes.com/2010/09/29/autos-batteries-hybrids-technology-volvo.html?partner=yahootix

New Competition: Mercedes vs. Chrysler

Recently we have seen a decrease in the safety margin previously separating the luxurious cars such as the Mercedes Benz, from the other, more economically friendly, cars such as Chryslers. The reason the gap between the two is decreasing at such a rapid rate is because as soon as one car finds a new innovation, the other immediately finds a way to copy them. Crash test result are now more readily available on line, and since many people have switched their buying medium from the dealership to online explorations, the few facts that are thrown at them become very important. For example, they just hear about the crash test rating fact which was a bummer for luxurious cars because they have many features that can not be listed so black and white.

I feel that regardless of their attempts to not let it affect their company, he problems that Mercedes and other expensive cars are facing about the increase of online shopping, and the increase of safety features in all of the "regular everyman's" car will greatly affect their sales. When customers compare the Chrysler and the Mercedes they will compare the safety features, the price, and other black and white facts. The fact that statistically they may look similar tricks them into believing that they are getting a great deal on the Chrysler, which at the time appears to be the better car. In the end I think this will have a huge effect on the sales of luxurious cars.

SOURCE: http://online.wsj.com/article/SB10001424052748703989304575504513438406160.html?mod=WSJ_Autos_LS_Autos_4

Selling Used Cars for Fun and Profit

The selling of used cars is one of the most profitable parts of the auto industry. Running a used-car operation can have its benefits, but it can be very difficult to manage at times. One important lesson to know when organizing a used-car business is for the dealer to know he needs "to acquire inventory that [will] turn quickly, not just [fill] up the lot." If you attain bad inventory, then it could cause the company to lose a lot of money. In order to have a vibrant operation, basic used-car sales principles need to be followed. This would include "stock wisely, pick vehicles with high-gross potential, keep a 30-day supply and wholesale units in retail stock past 60 days." This type of business can be very rewarding when operated properly. As the number of cars reatiled rises, the total amount of revenues rise, which in return makes the consumer and the dealership happy.

After reading the article, I found that it was very useful information to know, as we continue to try and recover from our down period. Many U.S. citizens are in need or a vehicle and going to used-car lots are their only option. What I wish to know is if these car lots are selling fuel efficient vehicles? If they are, are they at a reasonable price for the buyers, but if they aren't, then why aren't they? We are now living in a period where "going green" has become the motto for everything that we attempt to do or create. By these businesses selling cars such as hybrids, they may gain more customers which will, in reutrn, continue to raise the revenue which they receive. I feel as though this will really help the business, but more importantly help the people that are looking to purchase these vehicles.

http://wardsauto.com/ar/selling_used_cars_109028

The Stars are still Shining for Ford

Ford has remained above water during this current recession. In 2009, the company's profits of $2.7 billion put it ahead of GM's sales for the first time in 80 years. This success is due to Ford's CEO, Alan Mulally, who joined the company in 2006. When he took over, the company was in shambles and was in desperate need of a new image. Mulally did exactly what the automaker needed. He shifted the company into a more prosperous and successful company, just like how it was many decades ago. To do so, he urged quality, value, and customer satisfaction as the main concerns for Ford. He has also created a strategic plan for the company to help it stay on a steady path. According to Mulally, "Ford plans to streamline the number of models or "nameplates" it produces to about 25 to 30 from the 97 models it used to build." This change can help make costs lower and the production process much simpler. Fewer models in production will allow Ford to have a greater focus on the quality of their vehicles.

In addition, Ford's CEO has said that there is a great potential to improve the combustion engine, including both the petrol and diesel. Along with this, Ford is pursuing electric vehicles and hydrogen technology. According to Mulally, this is the reason why college students are, "Choosing to study engineering at the University level, adding that the changing environmental focus and technological needs, will encourage people to enter the field and provide the necessary skill set." This demand is fueling the trend for many college students to become engineers as there is a very high recruitment rate for them upon their graduation. I expect that this demand will continue as this energy crisis continues.

I can sense that Ford's CEO will continue to help the brand keep its name. The company has proven that it is dedicated to building dependable cars and is willing to maintain its steady path. I believe that Ford is blessed to have a CEO that was prepared for the future and able to guide them through one of the toughest economic disasters to note. Thier commitment to improving themselves will help reestablish their name and make them a favored automaker among consumers.

Source: http://online.wsj.com/article/SB10001424052748704654004575517523508773954.html?KEYWORDS=auto+industry

The Stars are still Shining for Ford

SAIC and GM, complicated friends

SAIC Motor Corporation, the biggest Chinese automaker, may soon buy stakes in GM once its stocks go public. This idea is causing a stir because the U.S. government, which has a 61% stake in GM from the bailout, is worried that selling its stocks to foreign investors may backfire in public anger. If the deal happens, critics could argue that the U.S. government used taxpayer money to allow foreign companies to take a hold of an American company. However, SAIC has close ties with GM. The Chinese company is partners with GM in an auto market that recently became the world’s largest. GM’s August auto sales rose 19% in China from last year amidst the slump in the U.S. and Europe sales. SAIC and GM are also trying to capitalize on the growing market in India.

I agree that the U.S. government will face some criticism that it is basically selling an American company to foreign countries. However, I think the critics should accept the fact that globalization works both ways. The U.S. bought a lot of stocks in foreign companies, and now that more countries are progressing towards first-world status, we should allow them to purchase shares of U.S. companies. The joint venture between SAIC and GM gives SAIC even more of a legitimate reason for its interest. I got a feeling it won’t be long before we see Chinese cars on the road along side American, European, Japanese, and Korean cars.

http://online.wsj.com/article/SB10001424052748703305004575503784053091088.html?mod=WSJ_auto_MiddleSecondHighlights

Friendly or Fatal?

General Motors Co. will soon be adding a new feature, due to Onstar's "upgrade to match services offered by rival Ford's Sync Music and information system." The company is attempting to add Facebook later on this month. There will also be features added to this system that will allow the driver to use voice to text, and other voice commands enabling their Facebook statuses to be updated. Onstar will be testing other technological devices to allow its users to have their text messages be read out loud. GM is using this as a way to catch up to Ford who currently has features that include "social networking, web browsing, and iPod-style thumb controls." By having this feature, GM should see an increase in their automobile sales. The price of the new feature will be free the first year, followed by a great increase in price.

Although this system "provides accidental alerts, directions, vehicle diagnostics and roadside assistance in case of an emergency," it still doesn't seem safe enough to place in vehicles. Granted, this is a really impressive device; however, it's just another distraction to the drivers and will have fatal results. Many people will enjoy this feature because they have become addicted to Facebook, which will have them give it their undivided attention while driving. The company will most likely get sued if anything happens, as a result of this feature. Yes, they are trying to make the industry more competitive, but overall, this is just a bad idea.


http://www.wric.com/Global/story.asp?S=13119561

The Progressive Automotive X Team recently held a contest where they awarded $10 million to three teams of engineers with the best cars who could run on at least 100 mile per gallon. The winner of the mainstream class is called the Vary Light Car, weighing in at 830lbs, with abilities to accommodate 4 passengers, and it runs on 102 miles per gallon.

Li-Ion Motors Corp.'s Wave II came won in the "alternative side-by-side" category. this two passenger vehicle goes from 0 to 60 in 12 seconds and hits a top speed of 80 mph. In the contest, this new and exciting battery powered car was able to reach 187 miles per gallon.

The winner of the "alternative tandem class" was the E-Tracer, which ran on a whopping 205 miles per gallon. Instead of the regular car with 4 wheels, it almost looks like a motorcycle, with two wheels but engulfed by the res of the car around them.

In the end I feel that this push towards high milage will be extremely beneficial to society, but I do not think that the winners of the Progressive Automotive X Team's contest will sell. Their designs have wheels on the outside of the car, or others only have two wheels. It is a very good attempt for a new look and feel for the automotive industry but i don't think that society is ready for it.

Source: http://online.wsj.com/article/SB10001424052748703440604575495942389170202.html?mod=WSJ_Autos_LS_Autos_4

You can't resist it. It's electric! Boogie woogie, woogie..

Within the last five years a new company has emerged from the woodworks. This company is called Tesla Motors. Tesla Motors was founded in 2003 by a group of intrepid Silicon Valley engineers who set out to prove that electric vehicles could be awesome. Tesla first emerged in 2008 with their new electric car called the The Tesla Roadster. The Telsa Roadster hit the streets in early 2008 as a car with no equal. Two years later, over 1,000 Roadsters drive emissions-free in more than 25 countries.  Forget everything you know about the automobile. The Tesla electric drivetrain offers a radically different experience. The driver, the car, and the environment connect in ways they've never connected before. 

Tesla makes the best electric cars and electric power trains in the world. Tesla technology offers the most efficient path to a sustainable energy future. No hybrids. No hydrogen. No hype. Tesla's battery packs and power trains will help lessen global dependence on petroleum-based transportation and drive down the cost of electric vehicles.. By cooperating with other car manufacturers, we hope to put more electric cars on the road. Every Tesla and EV using Tesla Technology is a step towards making increasingly affordable electric cars available to the consumer. Tesla's mission is to increase the number and variety of electric cars available to mainstream consumers. “We're catalyzing change in the industry” - Tesla. Tesla vehicles and EVs powered by Tesla are fun to drive and environmentally responsible. They are causing other companies to invest in electric cars and to make their current models more environmentally friendly to appeal to the customers. They are what every company would like to see environmentally friends yet successful and great looking cars!

How Smart are You?

Smart USA has been getting interesting feedback after it released its vehicles in America in 2007. The car company has been widely popular among Europeans for the past decade and decided it was now time to amaze American consumers. In a report by CNN they claim, “At just under 9 feet long, the Smart car is about 3 feet shorter than the Mini Cooper and 7 feet shorter than the Ford Explorer. At 1,800 pounds, it's about 4,500 pounds lighter than an empty Hummer H2” (Pawlowski 1). This car has been recognized for its interesting look, high gas mileage, and compact size. Americans are finding this car to be more suitable for the city rather than the highway. It also comes at a good time when Americans are steering away from huge, gas-guzzling vehicles and looking for energy efficient alternatives.

While Smart did not start this trend of sub-compact vehicles, it acted on the demand for smaller vehicles in the U.S. Smart USA waited to enter the American market after selling their cars in Canada because they felt that U.S. consumers were not ready for this type of vehicle. However, the current lacking economy and desire to be green has caused an increased demand for smaller, cheaper, and more fuel-efficient vehicles. Increased compact vehicle sales are telling automakers that consumers are looking for value and function, not big SUVs. This has significantly changed automakers’ manufacturing lines and the way that they market to consumers in this competitive segment. Under these economic conditions, I predict that many other similar vehicles will enter the market to help manufacturers stay above water during these tough times.

Source: http://www.cnn.com/2007/TECH/11/08/smart.car/index.html?iref=allsearch

Aptera

Aptera is a fairly new company that focuses on producing fuel efficient cars. This includes making cars that run on electricity, are aerodynamic, and have a light weight. Its current line of models, the Aptera 2 Series, starts at $25,000. The electric vehicle can be charged overnight to be at full capacity. The batteries are designed to last the average lifespan of current cars. The site claims that if you drive it 100 miles in a day, it only costs you about 50 cents. The car goes 0-60mph in under 10 seconds. Its top speed is 90mph. The car is currently only distributed in California.

Here you can see what the car looks like

http://www.aptera.com/look.php

The emergence of companies like these that mainly sell electric vehicles shows that the industry is clearly moving towards making vehicles that uses cleaner energy. The fact that an electric car is the company’s main product means the market is growing enough to allow such a focus. Being able to drive at least 100 miles a day should erase the common perception that an electric car will leave you stranded on the road out of batteries. However, these types of cars are still only sold mainly in California, so it seems unlikely that electric cars will become mainstream just yet. Now that technology has caught up to allow electric vehicles to run just as well as cars that run on gas, I think the only hurdle is the initial cost. In any case as technology advances and electric cars get cheaper, the trend for the auto industry is to produce more and more of these energy efficient vehicles.

http://www.aptera.com/

Blaming Toyota

Over the past few years, there has been much data recorded involving the Toyota Motor Corp. for blamed for accidents based on "sudden acceleration and found that the throttles were wide open and the brakes weren't engaged at the time of the crash." Many people argue that their Toyota model "surged out of control," however, it has been found that they mistakenly pushed the accelerator instead of the brakes. After the Department of Transportation did an investigation, the Toyota company was accused and blamed for their acceleration issues: its' "sticky accelerator pedals that don't return to idle and floor mats that can trap accelerators to the floor." There have been similar reports of mistakes due to acceleration found, involving Audi 5000 Sedans. This makes one wonder if it is really the Toyota corporation, or is it a human error?

Due to several accidents involving this vehicle, the maker has been sued by over 100 individuals who say the accidents were due to an electrical problem. I think that there may be a problem with the construction of this vehicle, since there have been many accidents; however, some people may have just used this as an excuse to get money for the damages to their vehicle. One may find that the ongoing production of this vehicle is unethical. Why should this model continue to produce cars when there could be a chance that it is the cause of many automobile accidents? Also, the fact that the maker is blaming the consumers for the accidents could just be them not trying to take responsibility for the inconvenient make of their vehicles.

Since the investigation continues to go on, the Toyota Motor company has "recalled more than eight million cars globally" to fix the accelerators and floor mats. This company has taken into account that they could lose a lot of money if they don't act fast and try to keep as many consumers as they can. Although there are many consumers who feel as though Toyota vehicles should no longer be brought, there are some who feel as though this make deserves another chance. I am one to agree. This corporation has been supplying many consumers globally with their vehicles, so why should it stop now? Even though there has been a decrease in the consumption of their product, I feel as though this maker will get through this period and continue to heighten its' position in the auto industry.

http://online.wsj.com/article/SB10001424052748703834604575364871534435744.html

Diesels back.

Its been a two years that Audi USA has tried to get americans to go back to using diesel by selling its fuel efficiency. One of their major efforts came during the recent Superbowl, where Audi spend nearly 3 million dollars on a funny commercial that showed their diesel powered Q7 SUV as the consumer's answer to the "green police". The tactic seems to be paying off however, Audi buyer's now choose turbocharge direct injection, or TDI, in 40 % of their Q7s and about half of their A3 compact sedans. That more than doubled Audi's diesel sale expectations.
Americans are warming up to diesel and not just because of Audi. The recent development of low-sulfur diesel fuel and exhaust systems has cut nitrous-oxide emissions to levels acceptable even to California, creating a 50-state diesel market for the first time in decades. These diesel engines now emit 30 % less green house gasses and increase milage by 40 %. Diesel also burns more effectively than gasoline and hybrids, therefor diesel generates more power.
However, Diesel does have some disadvantages. Premiums of $2,000 to $4,000 are common for cars with the diesel option. And diesel fuel prices can be unpredictable. Diesel spiked as much as $1 higher than gasoline in the summer of 2008, but the two are close to par now. 
Diesel is still a work in progress but who knows, maybe you're next car will run on diesel.


http://online.wsj.com/article/SB10001424052748703632304575451720343127244.html?mod=WSJ_auto_IndustryCollection

Corporate Values of the Big Three

I took a look at the corporate values of the three major American automotive companies: Ford, GM, and Chrysler. I checked what points they emphasized and whether there were any significant differences between the companies.

Ford

Ford emphasizes community, diversity, and environment. They show examples of community service, display a history of diversity, and have articles on environmentally friendly programs. They do not explicitly state their values, but rather show examples of their achievements.

GM

GM emphasizes environmental commitment, safety initiatives, diversity, community, partners, and education. They show clear examples of green technology, assures safety, describes how global the company is, states principles they value, and provide an interactive program designed to teach kids of all ages about the auto industry and its impact. I think this site had the most in-depth, clear information on the company’s ethics.

Chrysler

Chrysler emphasizes global diversity, environmental responsibility, green products, and green fuels. They show specific models and its standards, focus on biofuels as an energy source, and promote their electric vehicles. I think site is poorly organized because the corporate values are not listed on the main page, and the values are not all in one place. Their focus on renewable energy sources and electric vehicles were heartening.

http://www.ford.com/our-values
http://www.gm.com/corporate/responsibility/
http://www.chryslergroupllc.com/