Thursday, September 30, 2010

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

Wednesday, September 29, 2010

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

Tuesday, September 28, 2010

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

Thursday, September 23, 2010

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

Wednesday, September 22, 2010

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/

Thursday, September 16, 2010

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

Wednesday, September 15, 2010

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/

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

Chevrolet was planing on releasing its newest model, The volt, in 2011. It will be their first car that is mostly electric, not to be confused with a hybrid. A hybrid uses both electric power and gasoline at the same time, but the Volt is different. It uses them at separate times.
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

In order to better help the "less affluent but growing [Chinese] market," the Nissan Motor Co. is preparing to start a China-only brand. This new brand named Qichen, pronounced "chee chen," will begin production starting in 2012, with Nissan's joint venture Dongfeng Motor Group Co. The aim is to supply low income earning individuals, "in China's inland markets," with affordable cars. The development of the model will begin with Chinese engineers and designers because they cost less than the Japanese workers. Also, to save money, "global auto makers, such as Honda Motor Co., have transferred older existing technology" to their Chinese partners. Hopefully, by the end of the year, the Chinese will reach their goal of selling 600,000 vehicles.

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

About 34.4 million Americans were expected to take road trips this past Labor Day Weekend. AAA expected the number of people taking trips to increase by nearly 10% over last year. An estimated 9 out of 10 travelers were driving to their destination. More than 12,000 highway projects are taking place due to the federal stimulus program. States were doing what they can to reduce traffic congestion by moving around construction times, but delays were expected in many areas.

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

Nissan is introducing the all-new 2011 Leaf; it’s just like any regular 5-seat, 5-door car. It has a 0-60 acceleration of 10 seconds, a top speed of 90 mph, Bluetooth, a navigation system, and many other features common to cars currently on the market. Except for one factor; it is electrically powered. This will be the first completely electrically run car the world’s market has ever seen.
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.

     It's a bird! It's a plane! No, It's the new Maserati GranTurismo Convertible! Maserati's newly designed convertible has a otherworldly allure. This new car has the curves of a women while maintaining the rigidness of a man.
     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

Today, the nation's annual highway death toll averages 100 fatalities a day. The nation finds that the two biggest highway-safety issues are runaway Toyotas and distracted driving. However, the Congress and the media find that texting while driving is one of the main causes of the fatalities. This has presented itself with many arguments against the government because they seem to not be "moving fast enough to require better crash-prevention technology from auto makers."

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

In the current U.S. auto industry, overall sales have fallen in August 2010 by 21% compared to the same month last year. This is mainly due to the “Cash for Clunkers” program that was instituted during the heat of the recession. Auto manufacturers have noted that slower sales are a result of uncertainty in the economy, high unemployment, weak home prices, and an unsteady stock market. These factors will be key determinants in the future of this industry as the year progresses. Primarily, only individuals who have owned their cars for a long time and are due for a new car are interesting in purchasing a vehicle.
Foreign automakers have created an impact in the auto industry, but are becoming less dominating forces as Toyota struggles to maintain its image. Overall sales of Toyota vehicles have fallen 34% as some of its most popular models plunged. The growing concern over the health of American carmakers has forced GM, Ford, and Chrysler to reconsider the quality and image of their vehicles. An increased concern in the American auto industry has made car buyers reconsider buying a domestic car instead of an import.

Source:
Bennett, J., & Ramsey, M. (2010, September 1). U.S. Car Sales Plunged in August.
The Wall Street Journal. Retrieved from http://www.wsj.com

Will your car get an A or a D?

How is the idea of going back to school and getting grades again? That may sound like a good idea, but soon your car may be the one getting the grades. If the new rules proposed by the Obama administration go in effect, any car you buy will have a grade based on the fuel efficiency and environmental impact of the car. As will be awarded to electric cars and plug-in hybrids, Bs will go to mid-size vehicles and compacts, and Cs will go to gas guzzlers like pick-up trucks and sports cars. The proposed stickers would include information like mpg ratings, carbon dioxide emission levels, and annual fuel costs. The rules will undergo public commenting to see what the public thinks of the labels.

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