Category Archives: news analysis

Ford Reduces Debt With Successful Conversion Offers

Posted on 24 November 2010 by Ken Zino

Ford Motor Company (NYSE: F) announced today the results of conversion offers of bonds for stock that will reduce the company’s Automotive debt by more than $1.9 billion, lowering annualized interest costs by about $180 million. “These successful conversion offers represent another significant step toward our goal of reducing our Automotive debt and improving our balance sheet,” said Lewis Booth, Ford executive vice president and chief financial officer.

However, Ford is still listed as below investment grade by the rating agencies such as Moody’s Investors Service (Ba2) and Standard & Poor’s B+. Both junk ratings raise borrowing costs and limit large funds from buying Ford bonds. Ford lost its investment grade rating in 2005. Continue reading →

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Driving Impression – Chevrolet Cruze

Posted on 15 November 2010 by Ken Zino

Chevrolet is finally replacing its aging Cobalt with the Cruze sedan, which is already on sale in more than 60 countries in Asia and Europe since 2009. The new Cruze is a design hybrid since its engineering was done at Opel in Germany and Daewoo in Korea. North American versions went into production at Lordstown, Ohio this summer. Continue reading →

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Toyota Ups 2011 Prius Pricing. Hybrid Costs More than $30,000

Posted on 3 November 2010 by Ken Zino

The Prius entered the Japanese market in 1997 as the world’s first mass-produced hybrid – negating the conventional wisdom of German and U.S. engineers and executives that the Japanese only copy and couldn’t innovate. Toyota’s complicated, but effective Hybrid Synergy Drive System was introduced in 2004 on the second-generation Prius, another technical coup.

The first-generation Prius was rated at an estimated 41 EPA combined MPG, and the second-generation model achieved a 46 MPG EPA combined rating. Using a combination of technologies, Toyota increased fuel efficiency for the new Prius to an EPA estimated 51 MPG in city driving, 48 MPG highway and a combined 50 MPG. Mileage is especially improved in cold-start conditions and at higher speeds, according to Toyota. Continue reading →

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Ford to Build a Second Engine Plant in China

Posted on 2 November 2010 by Ken Zino

Ford Motor Company and its government dictated partners are building new engine plant in China that is due to open in 2013. With the additional capacity of 400,000 units at the new facility, Ford’s joint venture, Changan Ford Mazda Automobile Ltd (CFMA) is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually.

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.    Continue reading →

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Nissan Leaf Debuts in U.S. at $32,780

Posted on 2 November 2010 by Ken Zino

Nissan North America, Inc. (NNA) says that the 2011 Nissan LEAF electric vehicle on sale in December starts at $32,780 MSRP before a $7500 federal tax credit, plus taxes, title and license fees. A Leaf lease starts at $349 per month. The pure electric vehicle requires a charging dock, which Nissan says will cost another $2200 on average, and require eight hours to fully recharge Leaf’s 48 lithium ion battery modules. 

There are also other potential subsidies for the mid-size with what is claimed to be a 100-mile range. There is $5,000 statewide tax rebate in California; a $5,000 tax credit in Georgia; a $1,500 tax credit in Oregon; and carpool-lane access in some states, including California. The charging dock and installation are eligible for a 50% federal tax credit up to $2000. Continue reading →

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EPA to Stigmatize Gas Guzzlers with a D Grade?

Posted on 1 November 2010 by Ken Zino

EPA and DOT are proposing the most radical changes to the fuel economy labels of every new vehicle in dealer showrooms since the regulation began more than 30 years ago. “New technologies such as battery electric vehicles and plug-in hybrids are entering the American market in greater numbers,” said U.S. Transportation Secretary Ray LaHood. “We need to provide consumers with labels that include fuel economy and environmental information so that buyers can make better informed decisions when purchasing new vehicles.”

EPA and DOT are actually proposing two new label designs for comment during a rule making period that will be subject to intense behind the scenes lobbying by automakers in pay to play Washington.  At stake is the stigma of a bad label on the side of a vehicle. Continue reading →

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Help Teens Cope with Dangerous Winter Roads

Posted on 1 November 2010 by Ken Zino

Now that winter is arriving in our northern latitudes, drivers will need to deal with the ice, snow, and other hazards that turn roads treacherous and contribute to the more than 1.5 million weather-related car crashes that occur each year, according to the National Research Council.  And if my experience is representative, more people than teens need to think about navigating a two-ton car or sport ute through the slop. Continue reading →

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