Thursday, September 30, 2010
Volvos new look
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
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
Wednesday, September 29, 2010
Selling Used Cars for Fun and Profit
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
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
Tuesday, September 28, 2010
SAIC and GM, complicated friends
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
Thursday, September 23, 2010
Friendly or Fatal?
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
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
Wednesday, September 22, 2010
You can't resist it. It's electric! Boogie woogie, woogie..
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
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/
Thursday, September 16, 2010
Blaming Toyota
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
Wednesday, September 15, 2010
Diesels back.
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
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/
Toyota Stirs up Chaos
The most recent auto scandal to note would be the crisis with Toyota. Complaints have been filed my customers with issues that there has been sudden acceleration of vehicles, issues with brakes, and steering problems. This has created uncertainty as to whether or not Toyota is maintaining its image for building reliable cars. Concern has also stemmed from Toyota’s corporate response stating that these problems are due to driver error. In fact, this was a fallacy and there were in fact mechanical errors with the vehicles that Toyota was manufacturing. Toyota’s denial of these issues demonstrates that they did not take full responsibility for the safety of their products.
Consumers were weary of buying Toyota vehicles because of the response given by Toyota when this issue became public. To retain as many clients at possible, Toyota had major advertisement campaigns showing customers’ loyalty to their products and their commitment to producing cars with care. While this has become a quite famous example of a company acting unethically, consumers have accepted the fact that Toyota admitted to the mistake after serious consequences and is now doing everything in its power to deliver customer satisfaction.
Toyota is dedicated, “To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.” I believe that the rough patches that Toyota has experienced lately will ultimately not alter future sales of their cars because they have had a historically strong reputation for building dependable vehicles. I am sure that they will remain successful and respected in America and they will continue to be one of the best top selling brands of automobiles in the U.S.
Chevy Volt Misconceptions
Chevy owners claim that it can run up to 40 miles on battery power alone, then it will begin to use the reserve gas tank. In theory, this sounds like a great idea. But those who have every owned a lawnmower, or a motorcycle for example, know that there are flaws in this strategy. Anyone who has owned any sort of seasonal gas-powered equipment knows that after a certain amount of time, the gasoline (if unused) will no longer work.
This initially presented a huge problem for Chevrolet. But after time they figured out a way to fix it; they wired the car in such a way that once it starts to sense that the gas is getting old, it will begin to use it instead of the electricity in order to rid the tank of the unusable gas. Then it will force the driver to fill up their tank again with newer gas. Initially you can override the car's attempt to use the old gas, but by the third try the Volt will take over and eliminate the "bad" gasoline out of the tank whether you allow it to or not.
This brand new car for Chevy seems like a great idea, and that it should sell great amounts upon release, but there is a huge problem; Nissan is also releasing a brand new fully electrical model into the market, but it can run up to 90 miles solely on electricity instead of just 40 like the Volt. it will be difficult to see which car will sell better because some may want the back up tank of gasoline since it is what they are used to, while others may feel that the fully electric 90 mile range of the Leaf will be more beneficial. Time can only tell what the consumers will want.
Source: http://wsj.com/drivers-seat/2010/09/15/chevy-volt-electric-car-what-if-the-gas-gets-stale/?mod=rss_WSJBlog&mod=WSJ_Autos_Driversseat
Thursday, September 9, 2010
China At a Glance
After reading the article, I found it to be interesting, yet thoughtful that the auto industry in China is willing to create an automobile, primarily for those who make an annual salary of $7000. It shows that they really care about their people and are willing to make adjustments to better their lifestyle. It's a good way to help bring a nation together when they are going through difficult times.
Hopefully, the Chinese market will be able to achieve their goal and sell more cars by the end of this year, as they begin the process of constructing the new vehicle. Many other nations should take notice of what China is doing because it could be beneficial to other countries as well. I think that by 2014 the global economy will be able to see how well the Chinese are doing, and decide to help their citizens in a similar, if not the same, way.
http://online.wsj.com/article/SB10001424052748704362404575479441663502752.html?mod=WSJ_auto_IndustryCollection
Wednesday, September 8, 2010
What Labor Day can tell the auto industry
All this might have been bad for travelers, but this is a glimmer of hope and chance for the auto industry. If Americans are driving more, that means they have more disposable income that they could potentially use to buy cars. The article also mentions that many new luxury cars have navigation systems with traffic feeds. Think of all the times you were stuck in traffic and how agonizing it was. Time spent waiting in the car is time you could have spent relaxing or earning some money. Navigation systems are becoming more prevalent, so if traffic feeds were attached to this and sold to every day cars, there is a lot of money to be made. Car companies can use all this summer traffic congestion as a selling point for traffic feeds that could save drivers countless hours.
http://online.wsj.com/article/SB10001424052748704421104575463521832020654.html?mod=WSJ_auto_TopRightCarousel_1
Saving the American Name
In a recent survey, several brands of cars built by Ford and General Motors have had the top vehicle satisfaction. Ford’s Lincoln-Mercury was at the top with 89% customer satisfaction, while GM’s Buick was directly behind taking second place with an 88% satisfaction rate. BMW, Cadillac, and Mercedes-Benz were tied for third. These results differ greatly from five years ago when U.S. automakers were gathered at the bottom of the vehicle satisfaction survey.
To remain at the top, Ford will eliminate the Mercury line by the end of 2010 due to its declining sales. Lincolns will still be sold and accounted for most of the Lincoln and Mercury brands’ ranking.
On the other hand, Chrysler did not perform as well. The Jeep brand finished last out of 19 ranked brands and Dodge was second to last. Overall, Chrysler vehicles finished 15th in this survey.
Collectively, it looks as though U.S. automakers are trying to revitalize their image and become known for quality and durability once again. After the government bailout of GM, the company has been progressively performing better. This trend is most likely going to continue and help the auto industry.
Source : http://online.wsj.com/article/SB10001424052748704554104575435371215706004.html?KEYWORDS=auto
Nissan Leaf Changing the Auto Market Forever
Although on the outside it may seem just like any other car, many things differ when one compares a gas-powered car to an electrically powered vehicle. To begin with, the brakes use a regenerative breaking system, which prevent jolts or bumps in the ride. Furthermore, the steering is serviceably directional, allowing soft turns. Also, the engine makes virtually no sound. It is so quite that Nissan had to create noise for when the car is in motion as a safety precaution for pedestrians nearby. Ultimately the Leaf just provides a smoother ride; when a test driver was asked for his feelings towards the overall experience, he claimed that even a Ferrari pales in comparison. So one might ask, what is the downfall to the Leaf, which appears to be the perfect vehicle?
Many people are concerned about the look of the car; it has ridiculous headlights, a hatchback, and an overall frumpy look. But besides the superficial downfalls, the biggest problem is the known as “range anxiety.” People seem to stress out excessively about whether they will have enough battery power to make it to where they need to go.
Granted its flaws, I still believe that the Nissan Leaf will be a huge selling success. People will get over their “range anxiety,” because after the test driver traveled 80 miles in one day, the car still had over 20% battery life left. I also think the market will be able to looked past a less than perfect exterior because once they do purchasing the Leaf will lessen our imported oil dependency, diminish air pollution, and the drivers will ultimately get to experience a superior drive.
A Beautiful Stranger.
Maserati is hoping that in 2011 after the release of the GranTurismo Convertible sales will rebound back to normal, after a 43 percent drop from 2008. Part of the reason sales had dropped so much could be contributed to the poor reputation the company is getting. Maserati seems to show up to the worse parties in the worse hands, and the brand is bring shown in shows like "Entourage" and "The Real Housewives of New Jersey". Maserati is also known for the car Mel Gibson drives away in after he gets into a drunken argument or the car Lindsey Lohan drives when she flashes the world. These product appearance are making the general public think of Maserati as a narcissistic, gum- smacking, dysfunctional car. No one wants to be associated with those numskulls who poorly represent Maserati.
Despite all of the bad reputations, Maserati is recalibrating their brand positioning and sales are on the rebound. They are trying to make Maserati the "Prada pumps of european luxury cars" not the "cheap clear heels you buy at the airport" . After the release of the GranTurismo Convertible overall sales will be back to normal, if not higher. The GranTurismo has a 4.7-liter, 433 horsepower V8 and six speed ZF transmission with paddle shifters. The GranTurismo Convertible comes in 8 different colors and retracts in less than 30 seconds. Each of the eight color options gives the GranTurismo a completely different personality, the white brings out the feminine side while the gray brings out a sinister one. This is also the longest car, 192.2 inches, with the most rear leg room, 30.1 inches. Finally, the biggest selling point about this car is it's "sport" button. Press that button and it increases its performance and turns the exhaust into a straight-pipe exhaust which is insanely loud and brassy. All in all this car is a great luxury buy for a mere 139,700 dollars! Buy your lucky lottery ticket today and this could be you'r new ride.
Source: Neil, Dan. "A Shapely Visitor From Planet Maserati." The Wall Street Journal 4 Sept. 2010. 8 Sept. 2010: W6
Monday, September 6, 2010
Reduction in Highway Fatalities
Although laws are being passed from people using mobile devices, there is no "significant reduction in accidents." One would think with the amount of crashdeaths and injuries occurring yearly that the citizens would take it into their own account to drive safely. Car crashes are currently the number one cause of "accidental deaths" in the U.S. One of the problems is thought to be because of human error. It's important that Congress and the Transportation Department focus more on the potential problems that could arise with the vehicles.
As of right now, safety is the number one priority of the Department of Transportation. They are doing everything possible to help reduce the death toll. However, we as U.S. citizens need to abide by the laws in order to make this possible.
http://online.wsj.com/article/SB10001424052748703447004575449623292625684.html?mod=WSJ_article_MoreIn_AutoIndustryNews
Thursday, September 2, 2010
Auto Sales on a Downward Spiral
Will your car get an A or a D?
Environmental groups are mostly positive about the idea, while opponents argue that government may be crossing the line by approving some vehicles and not others. Others argue the labels would be ineffective because most drivers already know which cars get more mileage than others. They suggest that a labeling system that compares fuel efficiency between the same car classes may be more effective. Environmental groups are concerned that these labels do not include emission information from coal plants that will indirectly power electric cars.
If these new rules go in effect, consumers are likely to demand more fuel efficient cars. The idea ingrained in buyers that As are good and Ds are bad should persuade them to buy the higher graded car. This should speed up the process in the auto industry of producing more fuel efficient cars. Competition to produce and sell more electric vehicles should steadily rise in order to accommodate the demand for graded A cars. Companies that succeed in producing the most environmentally friendly cars should become the auto industry leaders in the future.
http://online.wsj.com/article/SB10001424052748703369704575461602043868916.html?mod=WSJ_auto_IndustryCollection