Category Archives: news analysis

Bye Bye American Dream – One in Four Could Not Pay for a Major Auto Repair in Latest AAA Economic Survey

One in four American drivers could not pay for a car repair of $2000 if faced with one today, according to the results of a survey released today by AAA. The survey also said one in eight would be unable to pay for a repair bill of $1000 – easily reached with overly complex vehicles on the road. Continue reading

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Japanese Sales: Toyota, Honda Down. Nissan up Slightly in July

There were varying results for Japanese sales in the U.S. sales race in July with Toyota and Honda posting double digit declines while Nissan increased sales from July of 2010. Overall, the total U.S. light vehicle market grew less than 1% from what was a weak July of 2010 as the economy languishes and unemployment remains above 9%. Continue reading

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Ford Recalls More than 1 Million F-Series Trucks for Fuel Tank Fires. Reverses No Risk Stance after NHTSA Digs Deeper

Ford Motor Company is recalling more that 1 million F-Series pickup trucks and corresponding Lincoln versions built during model years 1997 through 2004 because of fuel tank fires. The Ford recalls result from the automaker’s latest corrosion problem caused by … Continue reading

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Toyota Posts FY Q1 Loss from Earthquake and Strong Yen

Toyota Motor Corporation (TMC) in Japan today said that operating income decreased from ¥211.6 billion to a loss of ¥108.0 billion, while income before income taxes was a loss of ¥80.5 billion yen. This was Toyota’s first quarterly loss in two years as Net income decreased from ¥190.4 billion yen to ¥1.1 billion. Operating income decreased by ¥319.6 billion yen. Continue reading

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July Used Car Sales Boom. Have Automakers Priced New Vehicles – Now with an Average $30,000 Price – Too High?

The latest research shows that sales of used cars and light trucks in the U.S. grew strongly – up more than 13% for the month of July. About 4.5 million previously owned vehicles changed hands. That’s the best July since 2005… Continue reading

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President Obama Unveils 54.5 MPG Fuel Economy Regulation for 2017-25. Will it Alter Vehicle Choices and Increase Costs?

In a thirteen minute speech in Washington this morning, President Obama revealed his proposal for doubling the fuel economy of vehicles sold in the U.S. by 2025. This proposal, which will apply to cars and light trucks sold during model years 2017 to 2025, establishes a global warming pollution standard of 163 grams of CO2 per mile per new vehicle by 2025—the equivalent of 54.5 mpg if all the improvements are met through actual increases in fuel-efficiency. Continue reading

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Revised Fiat Management Structure Subsumes Chrysler. Fiat Executives Dominate Newly Formed Group Executive Council

Both the management of Fiat Automobiles and Chrysler will be merged on September 1 under a plan that creates a Group Executive Council dominated by Fiat executives. Continue reading

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Small Business Firms Decline Again in the United States

These are businesses without paid employees but nonetheless are firms paying income taxes needed to balance the budget. Real estate agents, beauticians and construction contractors are examples of non-employer businesses. Overall, U.S. non-employer businesses generated approximately $837.8 billion in receipts during 2009. Continue reading

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If Vehicles are So Appealing Why Aren’t they Selling?

The J.D. Power survey – financed by automakers – begs the question: if the new cars and trucks are so bloody enticing why is the U.S. auto market stuck in the doldrums? Continue reading

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Ford Motor Q2 Profit Drops 8% to $2.4 Billion on $4.2 Billion Revenue Increase. Ford Credit, all Regions Except N.A. Decline

Ford’s second quarter net income was affected by so called “unfavorable special items” of $272 million – $177 million more than a year ago. The special items include personnel reduction actions as Ford continues to retrench. The closing of Mercury and other dealer-related actions in North America, as well as pension settlements in Belgium also negatively affected the results. Continue reading

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Chrysler Group Q2 Revenues up $3.2 B but Profit Down

By Chrysler’s accounting, Chrysler said it would have reported a $181 million profit in the second quarter, but took a $551 million one-time charge to repay loans from the U.S. Treasury Department and the Canadian government. Continue reading

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Resale Value of Smaller Vehicles Goes Up with Gas Prices

As fuel prices rise so does the trade-in value of smaller vehicles. Most of this is common sense, but it is backed by historical data. The consultancy ALG has modeled the effect of a 1$ per gallon change in regular gas price on 36-month resale/residual values. Continue reading

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Passenger Car Sales Down in EU Again as Economy Struggles

However some winners are emerging. Volkswagen Group remains the powerhouse in Europe with 23% share year-to-date of the EU and European Free Trade Areas. BMW group also posted strong double digit gains, as did Nissan, although both are on relatively small basis. The same could be said for Hyundai and Kia, which now have combines sales of more than 345,000 units year-to-date, compared to Volvo’s 138,000. Continue reading

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Tax Cuts, Deregulation Led to Jobs Crisis AFL-CIO Forum Claims. More of Same Means Fewer Consumers

Since two-thirds of the economy of the United States is based on consumer spending, no wonder corporations are reluctant to hire. There is just too much uncertainty in the economy, too much uncertainty in Washington. We could be heading for another recession while politicians dicker. Continue reading

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California High Occupancy Vehicle Lanes Closed to Hybrids. CNG, Electric Vehicles Now Picked as Winners by Government

Thus ends another episode of the California government using its power to pick vehicle winners instead of allowing market forces to operate. However, as the hybrid favoritism fades in memory, new auto winners are being picked for single driver HOV access from now until 2015. Continue reading

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