Category Archives: news analysis

Ford, Lincoln Change Touch Screens after Quality Ratings Dive

While Ford keeps claiming its customers want electronic features such as MyFord Touch, saying 56% of them rate the technology as an “important” part of the buying decision, its quality and customer satisfaction ratings by users as measured from independent sources have plummeted during the three years since introduction. Continue reading

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Volt Production Halted. Workers Laid Off for Five Weeks

The announcement of the setback to employees came Thursday after GM released February sales results that showed 1,023 Volts were sold in the U.S. GM has sold 1,626 Volts so far this year. Earlier in the day, a Chevrolet sales executive claimed that Volt sales would pick up now that it is approved for California HOV lanes and tax credits as a plug-in hybrid. Continue reading

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Only Nissan of Japanese Big Three Grows with Overall Auto Market in February. Toyota and Honda Lag Industry Slightly

Nissan North America reported record February U.S. sales of 106,731 units versus 92,370 units a year earlier, making for an increase of 15.5% over last February’s record total. Toyota Motor Sales moved 159,423 vehicles in February for a 12.4% increase in volume. American Honda reported February 2012 monthly new-vehicle sales of 110,157, an increase of almost 13%.

Since the overall light vehicle sales market grew by 16%, only Nissan actually kept pace with the slow recovery in auto sales that saw the best February since 2008, although Nissan also has the highest incentives in the group. Economic indicators – from consumer confidence to the stock and job markets, are showing the best results in four years. This is good news for automakers since sales are off to their strongest start industry-wide since 2008 at a strong seasonally adjusted annual selling rate or SAAR of 13.3 million light vehicles.

The difference among the Japanese Big Three was more pronounced in the higher-margin luxury segment. As usual, Lexus easily led the way with almost 17,000 luxury cars and trucks, followed by Acura at 11,000 and Infiniti at 9,000 vehicles. Continue reading

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GM Buys 7% of PSA Peugeot Citroën to Share Parts, Vehicles

PSA already has partnerships with Ford on diesel engines, and Toyota, BMW, and Mitsubishi on components and engines. A previous GM venture started in Europe with Fiat in 2000 failed in 2005 when GM spent $2 billion to buy its way out of a put option in the deal that allowed Fiat to sell its automotive company to GM for market value. Globally, alliances have had mixed results at automakers. Continue reading

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Fisker Automotive Makes Tom LaSorda CEO

Nevertheless, the future of Fisker is not clear. In 2010, the U.S. Energy Department awarded Fisker $529 million in loans as part of an effort to help development of so-called advanced-technology vehicles. Part of the loan was for redeveloping a closed General Motors plant in Wilmington, Delaware – home state of vice president Joe Biden – to build a small electric car, code named Nina – that has yet to appear. Fisker said that about one-third of the total loan amount – $190 million – has been drawn, mostly for Karma design and development. Continue reading

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GM Annual Report Says No Dividend is Planned for Common

Even though GM common stock traded as high as $39.48 a share – arguably irrational exuberance by small investors after what now appears to be a high IPO price of $33 in November of 2010 – the financial condition of the GM is not strong enough to distribute money to common shareholders. This affirmation comes even though GM posted a record $9.1 billion profits in 2011. Continue reading

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Toyota Prius Plug-In Gets California and Federal Subsidies

Prius Plug-in is Toyota’s first application using a lithium-ion battery pack, which it claims increases its overall fuel economy and has charging times of only 2.5 to 3 hours using a standard 120-volt outlet or 1.5 hours using 240v, which would cost at least $1,000 for a home installation.

The largest Japanese automaker, and hybrid technology leader, resisted using lithium ion batteries for years. However, political and marketing pressure, as well as government regulations favoring the controversial technology, has forced Toyota to embrace the plug-in concept, which is years or more from practical use unless you use the new “green math” to justify its steep price. Continue reading

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Ex HP Exec to Head GM’s Global Information Technology

The latest senior executive change follows the appointment last week of insider Jon Lauckner, 54, as vice president and chief technology officer. Both appointments are crucial to GM’s ongoing recovery. Less obvious to automotive media, though, is the importance of IT in a global corporation of GM’s size and complexity. Continue reading

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Chevrolet Volt EVs on Way to California. Volts now Qualify For HOV Lanes and a $1,500 State Taxpayer Subsidy

Chevrolet Volts with a ‘Low Emissions Package,’ which is standard for California Volts, began shipping from the General Motors Detroit-Hamtramck plant this week and will begin arriving at the more than 140 Chevrolet dealerships in California before the end of … Continue reading

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Porsche Recalls Cayenne SUVs for Headlights Falling Out

Porsche is recalling more than 20,000 four-door Cayenne SUV models in the U.S. because the headlights can become loose and possibly fall out. Globally 100,000 Cayenne SUVs are affected. Letters are now being sent to owners of the affected vehicles, Porsche said in a required filing with the National Highway Traffic Safety Administration. The repair takes approximately 45 minutes. Continue reading

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Another Two Honda Recalls for Fires and Tailgate Struts

Honda is experiencing something similar to Toyota’s well publicized quality meltdown. During the past year or so, Honda has issued more than 26 public statements about various safety defects and recalls in the U.S. The question remains will NHTSA fine Honda, absent the high profile, highly critical Congressional hearings that Toyota and NHTSA endured, or the egregious behavior of BMW that NHTSA just called out? Last week NHTSA fined BMW of North America and its German parent company $3 million for not reporting safety defects promptly. It was the second highest fine in history after Toyota paid almost $50 million in 2010 for not disclosing safety defects promptly. Continue reading

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PSA Peugeot Citroën in Alliance Talks with GM

Neither General Motors nor PSA have officially confirmed the talks, other than to say that discussions with other automakers routinely occur. Last week Peugeot posted weak results as Group operating income declined to €1,315 million from €1,796 million in 2010. GM has been losing money at Opel for more than a decade – $700 million in 2011 alone. Continue reading

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UAW to Demonstrate During Romney Speech at Ford Field

GM’s latest financial results added fuel to a raging fire as the elite political ruling class continues a contentious debate about the proper roll of government in the flagging U.S. economy in general, with the $80 billion auto bailout one of the focal points. One wag suggested that Democrats should run on “Bin Laden is Dead, GM is Alive,” a tough argument for Republicans and their ‘do nothing’ Congress to refute in the view of critics and what appear to be many pragmatic voters. Continue reading

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Camaro, Corvette Auto Transmissions Faster than Manuals

The latest evidence against manual shifting comes from Chevrolet whose paddle shifter automatic transmissions on Camaro and Corvette models in 2012 have a new software algorithm that improves tap response time ~60% compared to the previous system. As a result, the 2012 Camaro ZL1’s six-speed automatic transmission has a 0-60 time of 3.9 seconds – a tenth of a second faster than GM’s official manual transmission time. Continue reading

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U.S. Vehicle Ownership Now at a Record 71 Months

The average length of vehicle ownership that were purchased as new has risen to a record 71.4 months, or nearly six years, according to the latest Polk registration data. Consumers who purchased used vehicles held them nearly 49.9 months. Combined, new and used vehicle owners are holding on to their vehicles for an average 57 months. Continue reading

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