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July, 2005 Archives | Homepage
Incentives Overpowering High July Gas Prices
Big incentives are driving July vehicle sales despite the high price for gasoline. Gasoline is still at 2.28 nationwide according to AAA's Fuel Gauge Report -- just a few cents off its July 14th peak of $2.32. J.D. Power and Associates Chief Economist Bob Schnorbus says incentives are keeping auto sales strong:
"Gasoline prices are not killing the market, just putting a bit of a drag on it," Schnorbus said. "The sales surge we saw in June and July was caused by incentives overpowering high gasoline prices."
Schnorbus noted that the increase in incentives in June and July created a sales jump similar to what the industry experienced in 2004 when automakers boosted incentives.
"The incentives are different and it's slightly earlier than last year, but it has created a similar boost in sales," Schnorbus said. "Once the 2005 models are gone, sales will return to a more temperate pace."
J.D. Power also says that the employee discount programs have even boosted sales of the gas guzzling full-size SUVs.
One vehicle segment that had been struggling in a flourishing market is full-size SUVs, but Schnorbus noted that it has received a large boost from the employee programs. Still, full-size SUV sales are down 12 percent on a year-to-date basis and the segment’s market share has slipped to 3.57 percent from 4.14 percent in 2004. In addition, premium luxury SUV sales are down 7.92 percent compared to a year ago, while the other SUV segments—entry, midsize and entry luxury—are all experiencing year-over-year sales growth.
"The SUV market is not going to disappear as a result of high gasoline prices," Schnorbus said. “In fact, it will grow over the five-year forecast horizon."
Posted on July 30, 2005
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Website Shows Photos of Strange Vehicles
The Strange Vehicles website contains pictures of strange vehicles likes this photograph of a bizarre Japanese custom van. The site also includes photographs of amazing trucks and strange vanity license plates.
Posted on July 28, 2005
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Edmunds Names Most Wanted Vehicles for 2005
Edmunds.com's editors have selected their Most Wanted Vehicles for 2005. The editors voted for their 26 favorite models in multiple vehicle classes. They also named the "Most Significant Vehicle of the Year" which went to Chrysler's 300 sedan.
Chrysler took a chance when it decided on such a radical design for the 300 and the results speak for themselves. Along with an award like Most Significant of the Year, the 300 will also serve to garner the respect of car buyers who always yearned for something a little different but couldn't justify something exotic to fulfill their wishes. The 300 not only gives them something to aspire to, it gave fans of the American sedan something to be proud of — a most significant feat indeed.
Runners up in the "Most Significant Vehicle" category include the
Ford Mustang, Subaru Legacy and Lotus Elise.
Posted on July 26, 2005
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ZAP Plans to Sell 15,000 Smart Cars in U.S.
ZAP plans to sell 15,000 of its tiny Smart Cars in the U.S. MSNBC.com reports that ZAP's CEO Steve Schneider thinks the timing is right to introduct the Smart Car to Americans.
The thinking is, with gasoline prices hitting record highs and traffic in the nation’s major cities becoming increasingly congested, Americans are likely to buy fewer gas-guzzling SUVs and trucks and gravitate toward smaller, more efficient vehicles like the Smart Car - a mere 8 feet, 2 inches long and just over 5 feet tall - according to ZAP's CEO Steve Schneider.
"The market timing for what we are doing couldn't be better," Schneider said. "Fuel prices are at all time highs, and social responsibility about global warming is something that's more in the mainstream and not a left-wing thing," he added. "And there's the issue of our dependency on foreign oil too - all this makes our business plan very timely."
The tiny fuel-efficient Smart Cars get about 50 miles to the gallon so if gas prices stay high Zap might be on to something. Schneider told MSNBC.com that they have already recorded $2 billion in U.S. orders. More about the Smart Cars can be found here.
Posted on July 25, 2005
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Company Develops Text-Message Taxi Sharing System
A company in the UK called Crane Dragon has developed a system for sharing taxi's hailed by text messages called. The system, called Texxi, collates requests for point-to-point travel from a dispersed set of travellers via SMS. Passengers text-message by cellphone their destination postcode to the system. The system then aggregates other passengers wanting to go to the same area and confirms details of the taxi driver's name and badge number to the passengers. Passengers can the share the vehicle at a discounted fare. Passengers are instructed to go to pre-determined pickup points to meet the driver who will have received a text confirming each passenger's booking reference. Texxi is referred to by thte company as a demand-responsive transit brokerage (DRT Brokerage) system. Their slogan is "Texxi, the taxi you text."
(Via Engadget, Green Car Congress, Textually.org)
Posted on July 22, 2005
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1999 Acura Integra Tops 2004 Most Stolen Vehicle List
The 1999 Acura Integra has topped the list 2004's most frequently stolen vehicle. The list was created by CCC Information Services Inc., an insurance company which processes more than 1 million automotive claims-related transactions each day. AOL News has an Associated Press report on CCC's list of most stolen vehicles.
One out of every 200 registered 1999 Acura Integras was stolen last year, said Chicago-based CCC Information Services Inc., an insurance industry tracker of theft and vehicle damage. The list compares loss claims to the total number of registered vehicles.
The 2002 BMW M Roadster was No. 2 on the list and the 1998 Acura Integra was third. Other vehicles in the top 10 include the 1991 GMC V2500, the 2002 Audi S4 and the 2004 Mercury Marauder.
2004 Most Stolen Vehicles
1. 1999 Acura Integra
2. 2002 BMW M Roadster
3. 1998 Acura Integra
4. 1991 GMC V2500
5. 2002 Audi S4
6. 1996 Acura Integra
7. 1995 Acura Integra
8. 2004 Mercury Marauder
9. 1997 Acura Integra
10. 1992 Mercedes-Benz 600
11. 2001 Acura Integra
12. 1989 Chevrolet R25
13. 1993 Cadillac Fleetwood
14. 1994 Acura Integra
15. 1996 Lexus GS
16. 2000 Acura Integra
17. 1999 Mercedes-Benz CL
18. 1996 Lexus SC
19. 2004 Cadillac Escalade
20. 1996 BMW 750
21. 1998 Land Rover Range
22. 1994 Audi Cabriolet
23. 2001 BMW M Roadster
24. 2003 Cadillac Escalade
25. 2000 Honda Civic
Posted on July 20, 2005
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Survey: 15% of Americans Eat Lunch in the Car
A new national survey has found that 15% of Americans eat lunch in their cars. This was more than the percentage of people that eat lunch in restaurants -- which was 14%. The study also found 35% of poll respondents indicated that needing to eat lunch while doing something else, like driving or working, is a challenge to eating a healthy meal. If you have seen the lines at the fast food drive-thrus and you have noticed the people around you eating in their cars (sometimes while driving) then this survey is probably not a big surprise to you.
Posted on July 19, 2005
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July Discounts Bring Buyers
The Detroit News reports that the heavy discounting by Ford, GM and Crysler has worked and new buyers are helping to clear out 2005 inventory. The Detroit News article says that July sales are 50% above last year's sale.
Detroit's latest marketing gambit -- employee discount prices for all -- is proving to be more than a one-month wonder, drawing heavy showroom traffic so far in July after propelling GM to a record June, according to dealers and analysts.
While there's no shortage of concern that today's sales party will mean tomorrow's hangover, dealers are elated that customers continue to snap up end-of-model-year cars and trucks that otherwise might have gathered dust.
Some Big Three dealers are reporting July sales are up as much as 50 percent from a year ago.
The only possible downside to the heavy sales activity is that some analysts are concerned the auto giants may be borrowing sales from later in the year. There is a concern that sales will drop against once the discounts end on August, 1st.
Posted on July 18, 2005
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Distracted Drivers are Dangerous
A study by the Insurance Institute for Highway Safety has found that distracted drivers bring an extra risk to driving. Cell phones were an expected part of the problem. MSNBC.com reports that the study found that cell phone users, even with hands-free devices, were four times more likely to be involved in serious accidents. However, the study found that distraction itself can lead to accidents and there are many ways to create distractions with all the gadgets and digital controls available for vehicles today.
"It's really the mental, the cognitive distraction from thinking about something else other than the driving task," says Ann McCartt with the institute.
In a lot of cars today, that's all too easy. As car makers cram more technology into vehicles - from DVD players and navigation systems to MP3 players - the question is: How do you keep your eyes on the road ahead when you're constantly looking at the dashboard?
The MSNBC.com article says that manufacturers now have a name for all those new devices in vehicles -- human-machine interface and the designers claim they aim for a distraction rate of less than 2 seconds at a time. One example is the new steering wheels being designed with more and more buttons. Will too many buttons confuse drivers and increase distraction?
While much has been made of cell phone use in cars, researchers have yet to determine how much other devices impact driving.
"Drivers are engaged in distracting behaviors of one kind or another a lot of the time," says McCartt. "The key is: Are those distracting behaviors going to lead to a crash?"
For now, industry researchers and car makers agree that multitasking drivers multiply their risk every time they hit the road.
Posted on July 16, 2005
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Maybach, Rolls Royce and Bentley Top Luxury Car Study
The Auto Channel reports that a study called the The Luxury Automotive Brand Status Index (LBSI), conducted by the Luxury Institute, has found that millionaires give Maybach, Rolls Royce and Bentley vehicles the highest marks. The LBSI rated 10 brands including: Aston Martin, Bentley, BMW, Ferrari, Lamborghini, Maserati, Maybach, Mercedes, Porsche, and Rolls Royce.
"Maybach's ability to earn first or second place on all of the four pillars of a luxury brand allowed it to break through despite its relatively low awareness and newness," said Milton Pedraza, CEO of the Luxury Institute. "It is clearly an impressive win for Mercedes Benz, which launched the automobile in the hopes of capturing a solid share of the ultra luxury car segment. Still, the resilience of Rolls Royce and Bentley, given the onslaught of models from new competitors such as Maybach, and from traditional competitors such as Ferrari, Maserati, and Aston Martin, is a testament to their ability to adapt while maintaining their heritage and brand identity."
Posted on July 14, 2005
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Three States Feel the Need for Speed
Three states have raised there speed limits within the past two months. Texas has bumped up its maximum allowed speed to 80mph on rural interstates. Drivers in Indiana can now legally reach speeds of 70mph in cities with populations under 50,000 people. And Iowa's speed limit was also raised to 70mph for rural highways. Pistonheads.com reports on the news:
In Texas, the limit went up to 80mph on rural interstates, in Iowa it rises to 70mph, again on rural roads, while in May, the limit in Indiana went from 65mph to 70mph in areas with less than 50,000 population -- one supposes you aren't supposed to count them first. Lorries go faster too -- their limit went up to 65mph.
Via (Autoblog.com, Jalopnik)
Posted on July 13, 2005
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Smart Meters Enforce Parking Regulations
The days of parking in a spot that still has
a few minutes left on the meter may be
gone. The Wall Street Journal reports that new technologies are making illegal parking more difficult
if not impossible to do. One type of smart meter
automatically resets the amount of time left
to zero after a vehicle leaves the parking spot.
Another smart meter notifies the authorities if
a driver has kept their vehicle in a parking
place over the allowed amount of time.
In Pacific Grove, Calif., parking meters know when a car
pulls out of the spot and quickly reset to zero --
eliminating drivers' little joy of parking for free on
someone else's quarters.
In Montreal, when cars stay past their time limit, meters
send real-time alerts to an enforcement officer's hand-held
device, reducing the number of people needed to monitor
parking spaces -- not to mention drivers' chances of
getting away with violations. Meanwhile, in Aspen, Colo.,
wireless "in-car" meters may eliminate the need for curbside
parking meters altogether: They dangle from the rear-view
mirror inside the car, ticking off prepaid time.
(Via Missing Link)
Posted on July 12, 2005
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Gas Prices Hit Record
MSNBC.com reports that the average national gas price has jumped to $2.33 a gallon according to the U.S. Energy Information Administration. That beats the prior record of $2.28 set in April, 2005.
In the weekly EIA survey, the West Coast had the most expensive regular unleaded gasoline, with the price up 6.8 cents at $2.48 a gallon. San Francisco was at the top of the agency’s survey of cities, with the price of gasoline up 5.6 cents at $2.58.
The Gulf Coast states, where many refineries are located, had the cheapest fuel, with the price up 11.8 cents at $2.24 per gallon. Among major cities, Houston had the lowest pump price, with fuel up 9.4 cents at $2.19.
The AAA, which tracks gas prices on its Fuel Gauge Report, currently lists national gas prices at $2.29. This is also a record for this index.
Posted on July 11, 2005
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$100 a Barrel Oil by Winter?
Just when you thought you paid enough at the pump Texan oil analyst Matt Simmons warns that oil could reach $100 a barrel by this winter. The Guardian has a new article discussing the potential oil crisis.
After crude surged through $60 a barrel last week, nervous investors were pinning their hopes on a build-up in US oil-stocks to depress prices in the coming months.
But Simmons believes surging demand will keep prices bubbling well above $50. "We could be at $100 by this winter. We have the biggest risk we have ever had of demand exceeding supply. We are now just about to face up to the biggest crisis we have ever had," he said.
Surging demand and a diminishing oil supply in Saudi Arabia are two of the reason's for Simmons' grim outlook. While the U.S. has not seen such high oil prices since the 1970s they are a daily occurence for people living in Brazil. However, Brazil has found a unique way to deal with the problem using ethanol according to this Seattle Times article.
Like tens of thousands of her fellow citizens, she is running her zippy red Fiat on pure ethanol extracted from Brazilian sugar cane. On a recent morning in Brazil's largest city, the clear liquid was selling for less than half the price of gasoline, a sweet deal for the 26-year-old lawyer.
"You save money and you don't pollute as much," said Rossini, who paid about $18 to fill her nearly empty tank. "And it's a good thing that the product is made here."
Posted on July 8, 2005
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Parked Cars Can Get Dangerously Hot Even on Cool Days
KCRA reports on new research that indicates that parked cars can bet dangerously overheated even on days with highs in the 70s.
"There are cases of children dying on days as cool as 70 degrees Fahrenheit," lead researcher Dr. Catherine McLaren said in a news release.
Researchers measured the temperature rise inside a parked car on sunny days with highs ranging from 72 to 96 degrees Fahrenheit. Their results, published in the July issue of the journal Pediatrics, showed that a car's interior can heat up by an average of 40 degrees within an hour, regardless of outside temperature. And 80 percent of the temperature rise occurred within the first half-hour.
The article also said that running the air conditioner before turning off the car or cracking the window had an insignificant effect on keeping the car cool. So the bottom line is that you need to take your kids with you and not leave them in a car that could overheat.
Posted on July 7, 2005
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Let Big Brother Apply the Brakes
The Sunday Times reports on a new plan to monitor traffic in England raises major Big Brother fears. The plan includes satellites that will monitor traffic and literally apply the brakes to vehicles that are driving too quickly. Vehicles will have a "speed spy" devices implanted in the vehicle so that the brakes can be applied from an overhead satellite and computer system.
The satellite-based system will monitor the speed limit and apply the brakes or cut out the accelerator if the driver tries to exceed it. A government-funded trial has concluded that the scheme promotes safer driving.
Drivers in London could be among the first to have the "speed spy" devices fitted. They would be offered a discount on the congestion charge if they use the system.
This is one system that had better be hack-proof.
Posted on July 6, 2005
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Rising Gas Prices Will Boost Hybrid Sales
EcommerceTimes.com reports that a new study by J.D. Power says that rising gas prices will boost sales of Hybrid vehicles. The increasing cost at the pump has been motivating consumers to try alternatives and J.D. Power forecasts the growth in hybrid sales to continue.
J.D. Power projects that hybrids, which accounted for just 0.5 percent of the U.S. market last year, will increase to 3.5 percent by 2012 -- totaling 650,000 vehicles. Diesels are expected to grow from a 3.4 percent market share in 2004 to 7.5 percent or 1.37 million.
Americans bought 16.9 million new vehicles last year, and Power is projecting the market at more than 18 million in 2012.
Gas prices are climbing again so if the study is correct hybrid sales should continue to climb.
Posted on July 5, 2005
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Lexus Tops J.D. Power's Dependability Study
J.D. Power and Associates has released its annual survey of vehicle
dependability based on questionnaires sent to owners of 2002 model year vehicles. The list ranks vehicle brands by the problems their owners reported per 100 vehicles. The study measures problems experienced by original owners of 3-year-old (2002 model-year) vehicles. For consumers, the VDS offers
insight into the reliability and dependability of brands and specific models as they approach the end of a typical warranty period. The 2005 Vehicle Dependability Study is based on responses from 50,635 original
owners of 2002 model-year cars and light trucks.
Lexus dominated the 2005 Vehicle Dependability Study (VDS). Lexus was the top nameplate for the 11th consecutive year and improved 14 percent over its
2004 VDS score. The Lexus LS 430 premium luxury sedan recored the
fewest problems per 100 vehicles (PP100) of any car in the study. The Lexus LS 430 earned a score of 90 PP100 making it the first model in VDS history
to receive fewer than 100 PP100. In the entry luxury SUV category, the RX 300 luxury utility vehicle was the top-performing model in its segment. The LS 430 received the premium luxury car segment award, and Lexus also received awards for its RX 300 (entry luxury SUV) and LX 470 (premium luxury SUV) models.
Porsche made the largest percentage improvement in its VDS score, while Hyundai had the largest reduction in problems reported by owners. Porsche, which ranked second among nameplates, improved 38 percent compared to 2004 —- a 91 PP100 improvement. Although still hovering below the industry average, Hyundai recorded a dramatic 115 PP100 improvement (31%).
General Motors models earned eight segment awards and Ford Motor Company models received five segments awards -— a record for both GM and Ford in VDS. Toyota Motor Corporation models received four awards.
Chevrolet captured the most segment awards, with the Prizm (compact car), Malibu (entry midsize car), S-10 Pickup (midsize pickup) and Silverado HD (heavy-duty full-size pickup) each earning an award in their respective segments. Ford received three segment awards, for the Thunderbird (entry luxury car), Windstar (midsize van) and E-Series (full-size van).
The nameplates faring the worst in the study were the Kia, Land Rover and MINI. The Kia, with a 397 PP100, received the worst ranking.
Overall, the automotive industry recorded an impressive 12 percent improvement in long-term vehicle quality, according to the J.D. Power and Associates 2005 VDS study. At the industry level, manufacturers have made a considerable leap in quality, with improvements across all categories. The industry average improved 32 problems per 100 vehicles (PP100) compared to 2004. The categories showing the most significant improvements in 2005 included ride, handling and braking; engine; and interior.
Posted on July 1, 2005
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