Can America Once Again Lead the Automotive Industry?

Looking at the American automotive industry in recent years, it’s hard to believe that we once lead the world in mass producing quality automobiles. After last year’s near collapse, American auto manufactures are struggling to regain a foothold and many plant workers are still left jobless. However change could be around the corner.

This Tuesday Fisker announced it will purchase a closed GM assembly plant in Delaware, with plans to begin producing plug-in hybrid electric cars by 2012. The luxury automaker expects to create or support 5,000 new jobs, producing up to 100,000 vehicles per year.

CEO Henrik Fisker described the production of hybrid electric vehicles as “the most dramatic change in the car industry ever.” He is optimistic that America can once again become “a leader in advanced vehicle technology.”

Fisker will use the Wilmington Delaware plant to build vehicles under Project NINA. Aiming to prove electric cars can be equal to or better than today’s gasoline powered models. If consumers embrace these new vehicles other automakers are sure to follow. With gasoline prices on the rise and increased environmental awareness we can only expect they will.

Chrysler Dealers Face Foreclosure as Financiers Bicker

Despite the sunny outlook for Chrysler, at least 40 Chrysler, Jeep, and Dodge dealerships face foreclosure due to a continued conflict between Chrysler Financial and GMAC. According to the Detroit Free Press  GMAC is expected to take over wholesale financing operations from Chrysler Financial. This transition could be the end for many dealerships across the country.

In the past Chrysler Financial accepted the value of the dealerships inventory as collateral for loans. Now GMAC is telling dealers this isn’t enough. Many of these dealerships are looking to draw on their mortgages, however Chrysler Financial (the holder of some of their mortgages) refuses to relinquish its stake in these properties.

The dealerships are unable to turn to commercial banks for assistance either. According to Dick Huvaere, a dealer from Richmond, Michigan, "today, there's not a bank on the planet that will loan a dime to any Chrysler or GM dealer."

A Chrysler spokesperson said they are not concerned that critical dealerships are in danger. They suggest consolidation of Chrysler, Dodge and Jeep sales into one dealership. Chrysler dealer’s prior optimism regarding the company turn-around has now been smothered by worries of foreclosure.

Auto Theft Hits 20 Year Low

If you purchase a car today it is likely to be equipped with multiple anti-theft systems including an ignition immobilizer and GPS tracking technology. These features and aggressive law enforcement initiatives make it harder than ever to be a car thief. The FBI recently reported that vehicle theft hit a 20 year low in 2008.

Despite the drop in theft rates it is still wise to take precautions. If you live in a high crime area, and your car is not already equipped, an alarm system would be good investment. There are a few commonsense steps you can take:

• Always park in a well-lighted/high traffic area.
• Always lock your car.
• Never leave the keys in your car.
• Never leave your car running unattended.
• Never leave valuables in plain view.

Remember, in most cases car thieves will chose the easiest car to steal. Do you have any special tricks or tips you use to protect your car?

Must Read News for Toyota Owners

In September Toyota announced it will be recalling 3.8 million vehicles. The floor mats of multiple Toyota and Lexus models may slip causing the accelerator to stick. Toyota has recommended owners remove floor mats on the driver side to prevent this problem.

Now Toyota faces yet another embarrassing recall...

The NHTSA is investigating frame corrosion on 2000 and 2010 Tundra trucks. Toyota faced similar problems with their Tacoma model last year, recalling about 750,000 trucks. The company has offered no explanation why they did not recall Tundra models at that time.

Toyota has long been heralded as a safe and reliable car brand. Has expansion overtaxed designers and engineers leading to these problems? Or is this just example of Toyota taking action to fix design flaws, as every car manufacture should? I like to think the latter.

Have these recent recalls changed your opinion of Toyota?

L.A. Auto Show - Green Car of the Year Finalists

Yesterday, the L.A. Auto Show announced the finalists for Green Car of the Year. This year’s picks are excellent examples of the the wide range of prices, styles, and technologies car manufactures are offering.

Audi A3 TDI 
Clean and stylish, the A3 TDI sports a clean burning diesel engine that gets up to 30 mpg and energy saving extras.

Honda Insight
Not only is the Honda Insight efficient, but it’s ECON Assist system will teach you how to drive more efficiently.

Mercury Milan Hybrid
America’s most fuel-efficient mid-size sedan with EPA estimated mpg 41 city/36 hwy, the Milan Hybrid runs on electric mode up to 47 miles per hour.

Toyota Prius
The 3rd generation Prius offers some of the best fuel efficiency on the market, up to 51 mpg.

Volkswagen Golf TDI
Not only is the Volkswagen Golf TDI affordable, but it’s estimated annual fuel cost is just $1,140!

The award will be announced December 3rd, 2009.

In Memory of Erik Schuetz

The BuyingAdvice Team wanted to take a moment to recognize our former staff member Erik Schultz (1976 - 2009), who passed in February 2009. Erik was a blog writer on BuyingAdvice web site since 2006.

Erik's dedication and perseverance shone through in everything he did. His commitment to his work and to his friends will be greatly missed. He is survived by his wife, Lisette.

In honor of Erik's memory, isoTree planted a tree of remembrance at El Silencio Lodge in Costa Rica.