Japanese Demand for the Prius Continues

For the sixth months straight the Toyota Prius has been the #1 selling car in Japan. Like the U.S. Cash for Clunkers program, Japan has been offering tax breaks and government subsidies for the purchase of environmentally friendly vehicles. This increase in demand has boosted Toyota’s profits after three consecutive losing quarters.

With numerous green vehicles on the market, what is it that makes the Toyota Prius so enticing to Japanese car buyers?

• Efficiency - The Toyota Prius gets up to 51 mpg. Gas prices in Japan may be at a 4 year low, but they still average over $4.00 USD a gallon.

• Pricing - Fighting to compete with the Honda Insight, Toyota has lowered Prius prices in Japan to around $19,000. Slightly less than the still affordable U.S. starting price of $22,400.

• Reliability - Long known for dependability, Toyota scored the highest in vehicle satisfaction for reliability in recent AutoPacific and IntelliChoice studies.

• Safety - The IIHS awarded the 2009 Prius top scores of “Good” on all tests.

As hybrid interest in the U.S. continues to heat up, it will be interesting to see if American car buyers follow suit. Do you have a favorite hybrid? If so why?

An Industry 1st, Ford Unveils Inflatable Seat Belts

In a press release yesterday, Ford announced the 2011 Ford Explorer will be equipped with back seat belt-mounted air bags. According to Ford, they are the first carmaker to mass produce this safety feature. The inflatable belts are designed to protect children and the elderly who are at a higher risk for head and neck injuries.

The seat belt is designed to inflate on impact within 40 milliseconds using cold compressed gas. Standard air bags use a heat-generating chemical reaction to inflate at a rapid rate, which would have been dangerous as the air bag is held tight against the occupant's body. Instead the belt air bags inflate slowly (if you can call 40 milliseconds slow) and only reach surrounding temperatures.

Ford chose the Explore due to its popularity with families, but aims to include the feature in additional models in the future. This advancement is likely to increase Ford’s hold on industry safety ratings. Currently the automaker has more 5-star U.S government and IIHS safety ratings than any other competitor.

Why the New Taurus is Key to Ford’s Success

Ford Motor Company has taken full advantage of it’s fumbling competitors over the summer, reporting a third quarter profit of $997 million according the New York Times. Ford’s profit gains were due in large part to its new Ford Taurus sedan which increased sales 141% over last year. What is it about the new Taurus that has attracted car buyers interest?

Of course we could attribute it to the lack of competition, but that would be cutting the new Taurus short. In fact, the Taurus is a sedan built for American drivers. Big and comfortable it bridges the gap between the traditional family sedan and luxury cars. It offers a quiet, smooth drive with a powerful V-6 engine.

Ford designers created a more assertive stance for the new Taurus, toughening up the traditional family car design. The interior, though simple, is spacious and well crafted, with thoughtful extras to improve driver and passenger comfort. The list of new tech features for the Taurus is so long I won’t begin to list them here, but be sure they’ll have you feeling like you’re driving an intelligent automobile.

The Ford Taurus is an excellent example of Ford’s understanding of what American drivers want. On top of it all, a starting MSRP around $25,000 makes it easy to see why smart buyers are choosing the Taurus.

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.

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.

Company Car Etiquette

Company car etiquette is an important part of general business etiquette. Just like attire and punctuality reflect your work ethic, so does the use or abuse of the company car.

There are several aspects of company car etiquette that should be observed, depending on the company's specific policies and procedures:

1. Signing out the vehicle: As a courtesy, ensure that there are no other employees with a more urgent need for the vehicle during the time period you want to use the vehicle. Sign out the vehicle according to company policy.
2. Driving habits: Driving safely and courteously is important, especially if the company name or logo is on the vehicle. When driving the company car, it's time to put aside any bad habits that you have when you drive your own vehicle. Observe speed limits and don't succumb to angry horn honking.
3. Car cleanliness and upkeep: Many cars inadvertently become trashcans throughout the course of the day. When you're done using the car, make sure to remove your garbage and personal items. It's also considerate to turn down the radio and make sure that there is still a decent amount of gas in the car.
4. Record keeping: Some companies like to keep records of the mileage used, destinations, and whether the vehicle was refueled. Ensure that your part of the record keeping is completed in a timely, accurate and legible manner.
5. Personal use: A company vehicle should generally not be used for personal use, unless you have been given permission to do so. If you do use it for personal use, you may need to contribute to costs such as taxes, gas and maintenance.

New Fuel Economy Standards for 2011

The US administration has announced updated automobile fuel economy standards for new vehicles starting with 2011 models. The goal is to reduce gasoline emissions and consumption.

President Obama's administration had a March 31st deadline for setting the standard, giving the automotive industry about eighteen months to prepare its 2011 models to meet the new requirements.

Cars and light trucks will need to meet a U.S. fuel economy average of 27.3 miles per gallon for 2011 models, a 2 mpg increase from the previous year's requirements. The change isn't as aggressive as the 27.8 mpg target that President Bush had proposed in 2008.

New car fuel economy already averaged 31.3 mpg by 2007, according to the NHTSA.
The Environmental Protection Agency is considering a waiver that would allow California and other states to set their own auto emissions rules.

The change will cost auto manufacturers approximately $1.46 billion in fuel saving technologies. It will also save approximately 887 million gallons of fuel over the life of 2011 models and cut carbon emissions by approximately 8.3 million tons.

Perhaps these new standards will give a new popularity to the small cars and hybrid cars that haven't been doing very well in the market lately.

AutoNation’s New Incentive Program

In an effort to solve the consumer confidence problem, many new car dealers have been introducing incentive programs to help ease the minds of potential car buyers who may have been putting off a purchase because of worries about job security.

AutoNation, the largest dealership chain in the country, has announced a new incentive program called Payment Protection that will cover up to six months of car payments on new or used vehicles for consumers who lose their jobs. The worker must have been involuntarily let go from the job.

The program will cover the payments as the buyer searches for a new job. They will reimburse customers for loan or lease payments of up to $500 a month for up to six months.

In order to qualify, customers must have owned the vehicle for at least 90 days before losing their job, and be unemployed for at least 30 days. The offer is good for the first year that a customer owns their vehicle. The program is only for consumers, not business buyers.

The program, similar to one already being offered by Hyundai , costs nothing for the buyer. It has been launched at 33 South Florida dealerships so far and may be launched nationwide. AutoNation operates 239 dealerships nationally.

Adaptive Cruise Control

Adaptive Cruise Control (ACC) is an expansion of existing cruise control technology. It's sometimes called active cruise control or intelligent cruise control.

When activated by the driver, regular cruise control maintains vehicle speed through a link in the vehicle's powertrain. In addition to maintaining the vehicle's pre-set speed, adaptive cruise control will also automatically adjust the speed in order to maintain a safe distance between other vehicles in the same lane.

When the driver activates the ACC system, it begins to scan for other vehicles within a distance of nearly 500 feet in front of the vehicle. When the system senses a vehicle, it calculates the distance and relative speed and the onboard computer then automatically sends a message to apply the brakes to maintain a pre-programmed distance behind the vehicle. When traffic has cleared, the system will accelerate the car back to the previously set speed. Just like traditional cruise control, the adaptive cruise control system is disabled as soon as the driver applies the brakes.

The potential benefits of ACC include a reduction in accident rates, a reduction in driver fatigue and an increase in fuel efficiency.
Most car manufacturers offer models that include ACC or have it as an available option.