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Category Archives: news analysis
EPA Finalizes E15 Gasohol Pump Labels as Automakers Again Protest Adding More Ethanol to Gasoline. Lawsuits Pending
The ethanol tariff is comprised of a 54 cent Most Favored Nation duty and a 2.5% ad valorem tax. Critics say the ethanol tariff makes our nation more dependent on foreign oil by increasing the price of imported ethanol. Iowa State University estimates that a one-year extension of the ethanol subsidy and tariff would lead to only 427 additional direct domestic jobs at a cost of almost $6 billion, or roughly $14 million of taxpayer money per job.
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Posted in alternative fuels, auto news, economy, energy, environment, news analysis, transportation
Tagged alternative fuels, auto informed, auto news, autoinformed, autoinformed.com, automotive news, budget deficit., e15, ethanol, ethanol subsidy and tariff repeal act, gasohol, Ken Zino, pump labeling, taxpayer subsidies, zino
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Toyota Recalls 80,000 Highlander Hybrid and RX 400h Vehicles
Toyota Motor Sales, USA (TMS) today said that it will recall about 45,500 Highlander Hybrid and 36,700 Lexus RX 400h vehicles sold in the U.S in what appears to be the first recalls for its hybrid drive system.
In a filing with the National Highway Traffic Safety Administration (NHTSA), the Japanese company said that the so called Intelligent Power Module (IPM) located inside the Hybrid System Inverter contains a control board with defective transistors. Transistors on the control boards in some of 2006-2007 model year Highlander Hybrid and Lexus RX 400h SUVs were inadequately soldered and could be damaged from heat caused by a large current flow during high-load driving. Continue reading
Posted in auto news, customer satisfaction, electric vehicles, news analysis, quality, recalls, safety
Tagged auto informed, auto news, auto recalls, autoinformed, autoinformed.com, automotive news, highlander hybrid recall, hybrid recall, Ken Zino, lexus rx 400h recall, recall, safety recall, toyota recall, zino
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Kia Loses $40 Million for Death Caused by Defective Seatbelt
At the trial evidence was introduced by the law firm Cunningham Bounds that said in 2002, the National Highway Traffic Safety Administration inquired about the buckle problem, and in late December 2002 Kia issued a safety defect recall, but only for model years 1995 through 1998 vehicles.
Kia in response to the verdict said, “We maintain that the evidence at trial clearly demonstrated that the vehicle’s occupants were not wearing seat belts at the time of the accident. We will petition the court to set aside the verdict and if necessary, file an appeal with the Alabama Supreme Court.” Continue reading
Nissan Announces Ambitious Global Growth Plan
Things are going to get better during the next five years for Nissan Motor Company, the Yokohama based automaker announced this morning. In unveiling what is an ambitious six year business plan, Japan’s number two automaker said that it will deliver on average an all-new vehicle every six weeks for six years. As a result, the company’s global portfolio will have 66 vehicles and will cover 92% of all markets and segments, Nissan claimed. Continue reading
Toyota Outlines Legal Woes in SEC Filing and Says Amounts Accrued for Defense, Thus Far, Will Not Have a Material Effect
However, Toyota also said that it cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued. This means that the resolution of the lawsuits could have an adverse effect on Toyota’s financial position, results of operations and cash flows.
Ford Motor Company’s attempt to improve its credit rating was recently impeded when a class action suit previously considered by Ford as not material resulted in a $2 billion judgement against it. Continue reading
Quality Drops Drastically as Automakers Introduce New Models
After a four year run of improving quality, the trend has reversed itself as the initial quality of 2011 new vehicle launches has declined considerably in the latest study. Overall initial quality improved to an average of 107 problems per 100 vehicles (PP100) in 2011 from 109 PP100 in 2010. However, launch models – vehicles that are all-new or have had major redesigns – saw ratings drop by 10% to an average of 122 PP100 in 2011 from 111 PP100 in 2010. Continue reading
Nissan Says Sales up Profits down for 2011 from Earthquake
Nissan Motor Company today said in a statement that it thinks full-year profits will fall 15% and net income may decline to ¥270 billion (~$3.4 billion) for 12 months ending 31 March 2012. That’s down from ¥319.2 billion compared to the 2010 fiscal year. The financial results were based on foreign exchange rate assumptions of ¥80.:$1 and ¥115:1€. Continue reading
Americans Flying More, Driving Less as High Gasoline Prices Cut Auto Travel during the (Non) Independence Day Weekend
Travelers with household incomes of $50,000 or less is expected to decrease from 41% to 33%, while travelers with household incomes of more than $100,000 are expected to increase to 35% from 26%. Continue reading
Toyota North American Production Back to 100% in September
All of the Detroit Three automakers – GM, Ford and Chrysler – clearly outsold the Japanese Big Three – Toyota, Nissan and Honda – in May as a result of the marketplace chaos. The largest Japanese automaker Toyota – also the most dependent on imports to the U.S. – saw decreases of 33% across its brands to 108,387 vehicles compared to a year ago. Continue reading
Ford Breaks Ground on Second Engine Plant in China
China is now by far the world’s largest auto market, and Chinese industrial policy in effect requires that all profits earned there are reinvested in the country and its local partners. The U.S. remains alone among industrialized nations – with elected or totalitarian governments – without any such job and investment protecting policy. The $500 million (RMB 3.4 billion) investment will be funded entirely by CFMA and will be located in Chongqing’s so called New North Zone. Continue reading
With BMW EV Due, Study Says Range Anxiety Not an Issue
One of the observations about the 80 to 100 mile range – that it’s acceptable – challenges conventional wisdom. This will be tested further when the all-electric BMW Active E becomes available in some U.S. markets beginning in late 2011. A two-year lease will be $499 a month with a $2,250 down payment. A series production BMW I3 follows in 2013. Continue reading
Posted in alternative fuels, auto news, customer satisfaction, electric vehicles, marketing, news analysis
Tagged active e, auto informed, auto news, autoinformed, autoinformed.com, automotive news, bevs, bmw ev, bmw ev study, electric vehicles, EVs, i3, Ken Zino, mini e, u.c. davis plug-in hybrid & electric vehicle research center
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Volkswagen – Stalking Toyota – Sets Record for Car Sales
Volkswagen wants to be the world’s largest automaker by 2018, which would require it to overtake Toyota and General Motors, the number one and number two global sales leaders respectively in 2010. VW brand deliveries in North America, 194,600 vehicles (162,600; +19.7%) in the first five months, were characterized as “very encouraging.”
Nonetheless VW remains a minor player in what remains a major global market. As part of the world dominance plan, Volkswagen Group said it will sell 800,000 VW models annually in the United States by 2018 – 1,000,000 with Bentley and Audi included. In the U.S., all VW Group brands delivered 360,300 units during 2010, corresponding to growth of 20.9% – a long way short of the goal. Continue reading
$10,000 Increase per Auto Under Fuel Economy Proposal?
Some of the proposed changes to increase fuel economy and decrease greenhouse gases starting in 2017 could cost new car buyers from $3,700 to more than $9,000 per vehicle if they are adopted, and that’s before another $1,500 or so is added for additional safety equipment.
The new fuel economy mandates under consideration by the government are based on reducing emissions ranging from 3% to 6% per year, the same as increasing fuel mileage equivalent amounts. The highest increase, 6% per year, will raise the Corporate Average Fuel Economy (CAFE) from 35.5 mpg in 2016 to 62 mpg in 2025. Continue reading
Posted in alternative fuels, auto news, economy, electric vehicles, environment, news analysis
Tagged auto informed, autoinformed, autoinformed.com, cafe, car, center for automotive research, co2, economy, fuel economy regulations, ghg, job losses, Ken Zino, regulations hurting jobs, sean mcalinden, unemployment
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Honda Motor Predicts $2.4 Billion Profit Drop from Earthquake
This represents a 63.5% decline for Japan’s third largest automaker compared to the previous year, the result of production disruptions caused by the Japan earthquake and tsunami, rebuilding costs, as well as a strong Yen at an unprecedented ¥80:$1. Continue reading
Posted in auto news, economy, financial results, news analysis, results, sales
Tagged auto informed, auto news, autoinformed, autoinformed.com, automotive news, economy, financial results, japan, japan auto industry, japan earthquake, Ken Zino, news analysis, sales and tagged 2012 honda forecast, tmc profits, toyota forecast, yen value
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India to be Third Largest Auto Market behind China and U.S.
India will become the world’s third largest light vehicle market by the end of the decade behind China and the U.S., according to a new study. However, India won’t be as profitable as the other two. That prediction comes after India eclipsed France, the United Kingdom and Italy to become the sixth-largest global auto market in the world last year. Continue reading
