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Auto Trends Magazine

Car reviews, industry news, & advice.

Archives for January 2014

Fiat Chrysler Automobiles: Done Deal

January 31, 2014 by admin 2 Comments

Chrysler is the automotive manufacturer that refuses to die. Since the late 1970s, the company has experienced several near-death experiences, managing to get back on its feet with a lot of outside help.


Fiat Chrysler Automobiles


Government Loan Guarantees

In 1979, Chrysler received $1.2 billion in loan guarantees, designed to keep the automaker afloat. It also renegotiated hundreds of millions of dollars in debt, forcing its creditors to absorb those losses. Later, the company launched its K-Car line and an untold number of variants including its highly-popular Plymouth Voyager and Dodge Caravan minivans.

Although hardly out of the financial woods by the time it bought out AMC in 1987, the move enabled Chrysler to get what it really wanted: Jeep. It also began one of its most ambitious product undertakings launching an all-new Dodge Ram pickup truck, its Viper sports car, the Jeep Grand Cherokee, and its line of LH front-wheel-drive large sedans. Chryslers resurgence and improved outlook caught the attention of Daimler-Benz, the German automakers and producer of Mercedes-Benz.

Daimler Buys Chrysler

In 1998, an all-new DaimlerChryslers entity was launched, what was supposed to have been a merger of equals, but never was. The two companies never managed to make a go of it, leading to a messy divorce that was finalized in 2007; the Chrysler portion was sold to Cerberus, a private equity firm.

Cerberus wasnt able to reorder Chrysler, watching its losses mount as the economy slid, with the automaker filing for bankruptcy two years later. That led to a historic government intervention that bailed out both GM and Chrysler, and gradually folded the latter into the arms of Fiat, the Italian automotive manufacturer.

Fiat Takes Control

Since 2009, Fiat took control of Chrysler and was awarded increasing shares in the automaker as it met each required threshold. Fiats intent from the start was to acquire Chrysler and snapped up the 41.5 percent stake it did not own earlier this month, paying the UAWs trust $4.35 billion to do so.

On Jan. 29, 2014, Fiat Chrysler Automobiles N.V. (FCA) was formed, a company organized in the Netherlands, but a resident for tax purposes in the United Kingdom. Shares of Fiat stock will be exchanged one-for-one for FCA stock, with common shares listed on the New York Stock Exchange (NYSE) as well as on the Mercato Telematico Azionario (MTA) in Milan, Italy.

Fiat Chrysler Automobiles

Very little in the day to day operation of the combined automaker will likely change. Fiat and Chrysler have been working toward this day for more than five years, with Sergio Marchionne guiding the transition. What is new is the logo, a modern design that will soon be seen everywhere. It is the work of RobilantAssociati, but there is much significance in its design.

In developing the design, the branding project looked to demonstrate a transition from its past without severing its roots while also reflecting the global scope of FCAs work.

There is a geometric configuration at work in the logo too with the F, derived from a square, symbolizing concreteness and solidity. The C, derived from a circle, represents wheels and movement, and also symbolizes harmony and continuity. The A, derived from a triangle, indicates energy and a perennial state of evolution. Both Fiat and Chrysler corporate logos will give way to the new logo although both Fiat and Chrysler car brand logos are expected to remain unchanged.

Sergio Marchionne Comments

Following the vote by Fiat S.p.A.s board to approve the corporate reorganization and formation of the FCA, CEO Sergio Marchionne remarked how the two companies worked tirelessly …to transform differences into strengths and break down barriers of nationalistic or cultural resistance. Marchionne noted that the now global automaker has a mix of experience and know-how on a level with the best of our competitors.

Theyll need that to compete in a market where Toyota, Volkswagen, and General Motors are the top three manufacturers and with Hyundai-Kia, the Ford Motor Company, Renault-Nissan, and Honda competing for the same customers. Moreover, with increased consolidation and cooperation likely in the coming years, FCA will need to continue to form its own framework for success, including crafting it own partnerships.

Long-Term Business Plan

As far as the company’s long-term business strategy, the automaker will submit a business plan to the financial community by early May 2014. Fiat Chrysler Automobiles has reassured supporters that the merged entity will not reduce headcount and that it will continue to maintain operations in Turin, Italy, and in Auburn Hills, Mich., avoiding potential political controversy in both nations.

Recent News Stories

Young Car Buyers Eager to Own New

University of Michigan: American Car Ownership Falls

Chicago Auto Show Debut: 2015 Lincoln Navigator

Deloitte Report: Young Adults Want to Buy Cars

Photo courtesy of Fiat Chrysler Automobiles N.V.

Filed Under: Automotive News Tagged With: BANKRUPTCY, CHRYSLER, FIAT, FIAT CHRYSLER AUTOMOBILES, ITALY, Jeep, MERGER, SERGIO MARCHIONNE, UNITED STATES

Young Car Buyers Eager to Own New

January 30, 2014 by admin 3 Comments

Good news for car manufacturers.

For the second time within a week, a survey has revealed that young car buyers are ready to get into the new car game and buy one. Thats the findings of the J.D. Power 2014 U.S. Automotive Media and Marketing Report, based on a survey of consumers 25 years old and younger.

Young Consumers Want Cars

young driverThe J.D. Power report aligns with the findings of a report from Deloitte. Like the earlier report, J.D. Power found that consumers do want to buy new cars, essentially refuting the assertion by some that young adults are much less interested in owning a car, particularly a new one.

And it isn’t just any vehicle that young buyers want. Powerful acceleration and responsive handing is desired by 41 percent of young car buyers compared with 36 percent for the general population. They also prefer to drive on roads with hills and curves, with 22 percent expressing their interest compared with 13 percent of all car buyers.

Image is Important

One-third of these consumers want their vehicles to stand out in a crowd, compared to 20 percent for all car buyers. Further, 19 percent of car buyers say that others can tell a lot about them by the vehicle they choose. That compares with 10 percent of all car buyers.

It shouldn’t come as a surprise that young buyers want to personalize their vehicles too. A full 27 percent are inclined to go with options and accessories compared to 20 percent for all ages.

One Million Consumers

Arianne Walker, senior director, automotive media & marketing at J.D. Power noted that young consumers have expressed increased interest in these attitudes and sentiments, rising by 6 percent since 2009. These are the points that should be kept in mind by car manufacturers as buyers under the age of 25 presently account for 6 percent of new vehicle sales. Thats approximately 1 million car buyers in todays market.

That demographic has varying interests in what types of vehicles they’re interested in too. Certainly, B- and C-segment models such as the subcompact Ford Fiesta and the compact Toyota Corolla are considerations. More affluent buyers are also gravitating toward the premium and luxury brands, and would consider a Buick Regal or an Audi A3 instead. Serving up a variety of vehicles to this age group can help manufacturers win new customers.

Recent News Stories

University of Michigan: American Car Ownership Falls

Chicago Auto Show Debut: 2015 Lincoln Navigator

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

Filed Under: Automotive News Tagged With: CAR BUYERS, CONSUMERS, DELOITTE, J.D. POWER, NEW CARS, SURVEY

5 Car Dangers That Come from Cold Weather

January 29, 2014 by Doug Climenhaga 1 Comment

There’s more to winter than bigger heat bills. In the automotive world, frigid temps may lead to unique problems that don’t show up at other times of the year. Look through these five dangers that come from cold weather and make sure your car is ready to deal with the rest of the winter.

1. Dead battery: It might be an all-too-familiar winter scene: A driver puts the key in the ignition, turns it, and the engine cranks sluggishly or not at all. Maybe the headlights and dashboard lights are dim, too — it could be a dead battery. Confirm that the battery is the problem is by checking the voltage. You can use a voltmeter or a dedicated battery tester, but each requires a different set of steps for checking the battery. If you’re not calling a service for help, consult your owner’s manual and be sure you know how to jumpstart the car. Stock your trunk with an emergency kit in case a dead car battery leaves you stranded in the cold: heavy coat, gloves, blanket, flashlight, snacks and water.

flat tire2. Cracked windshield wipers: After being frozen and unfrozen a few times in the winter, your car’s windshield wipers won’t perform as they once did. If you notice that they are skipping across the windshield or leaving streaks in your line of vision, check the wiper blades. If the rubber is warped or cracked, replace the blades. Also, make sure you have enough windshield washer fluid to last your journey. There’s not much more frustrating (not to mention dangerous, for you and other drivers) than running out of washer fluid on a slushy day in a high-traffic area.

3. Radiator problems: The radiator of a car keeps the engine at the proper temperature, whether it’s sweltering hot or bitterly cold outside. Antifreeze, or coolant, absorbs engine heat and dissipates it through the radiator. A half-and-half mixture of antifreeze and water is sufficient for your car to start and run in the cold. If the engine’s cooling system isn’t properly filled, or if the coolant is too diluted, your radiator could freeze, the car won’t start and you could end up with a cracked, leaking radiator. The next time you’re at the mechanic, they can check the level of your antifreeze and may recommend a flush of the system. Old antifreeze can be full of dirt and rust, which can lead to corrosion and leaks, and eventually overheating.

4. Salt-covered car body: While road salt keeps everyone safer in icy conditions, the resultant coating of salt is bad for the body of the car. The salt sits there for days or even weeks, and over the long run, that salt can cause rust. Wash your car when the temperature allows. The good news is that with improved corrosion-resistant coatings on newer cars, it will take salt a long time to eat its way to the metal — metal (not paint) rusts. If you go to a drive-through car wash, pick one that washes the undercarriage of the vehicle, where there are more hidden spots that can rust due to salt corrosion.

5. Tires deflating: Heat causes tire pressure to rise, and cold weather causes it to drop. Do not be surprised if your low-pressure indicator light turns on after a cold snap. If your car is older than model year 2008 and it doesn’t have a tire pressure monitoring system, check the pressure with a tire gauge before driving after the first cold day of the season. The proper PSI (pounds per square inch) for your tires will be on a sticker inside the driver-side door or in the owner’s manual. Do not go by the pressure listed on the tire itself — this is the maximum allowable pressure and is likely not the same as the manufacturer-recommended PSI. Optimum tire pressure allows your car to be fuel efficient, and, most importantly in the winter, to have the best traction and stopping time.

Cold Weather Care

Watch for signs of these potential dangers before you head out for a winter drive, especially before a longer journey. Just because winter is underway doesn’t mean it’s too late to check and address any of these hazards. What other winter car problems do you frequently run into?

See Also — 5 Tips for Driving at Night

Filed Under: Special Tagged With: car battery, car maintenance, cold weather, Doug Climenhaga, ice, snow, SVI International Inc., windshield wipers

University of Michigan: American Car Ownership Falls

January 27, 2014 by admin 4 Comments

Car ownership may have finally peaked, study reveals.

Americas love affair with cars remains, but it isnt as strong as it once was. Research conducted by the University of Michigan Research Transportation Institute (UMTRI) has found that the number of US households doing without a car has fallen in each year since 2007. The study comes on the heels of earlier UMTRI research that revealed Americans own fewer light-duty vehicles, are driving them less, but also consuming less fuel.

At the Wheel.
The number of homes without a car is on the rise.

Falling Car Ownership Rates

UMTRI took a look at a trend spanning from 2005 to 2012, noting near-consistent slippage in the number of US households owning light-duty vehicles (LDVs) beginning in 2007. LDVs compose cars, minivans, sport utility vehicles, and pickup trucks. Of the 30 largest US cities, 21 saw an increase in the number of households not owning a car, including the top 13 cities.

The proportion of households without a vehicle is likely influenced by a variety of factors, said Michael Sivak, a research professor at U-M. Examples of such factors include the quality of public transportation, urban layout and walkability, availability and cost of parking, income and price of fuel.

Urban Residents and Car Ownership

New York City has long led the list with the number of households not having a vehicle, coming in at 56 percent in 2012. Seven more cities have at least a quarter of households without a vehicle including Washington, DC, at 38 percent, Philadelphia at 33 percent, and Detroit at 26 percent.

Each city is located in the congested northeast or upper midwest corridors, with the exception of San Francisco. At 31 percent, San Francisco’s rate matched Baltimore, trailed Boston’s 37 percent and was ahead of Chicago’s 28 percent.

The Cost of Car Ownership

Analysts have been looking at the cost of car ownership for many years, a factor that can also contribute to the fall in car ownership. Indeed, in 2012 Consumer Reports (CR) found that over the first five years of a median cars ownership, it costs more than $9,100 per year to own one. Cars such as a Mini Cooper averaged $5,800 per year while large SUVs cost $13,000 or more per year to own.

In its survey, CR looked at six categories of car ownership led by depreciation representing 48 percent of ownership costs followed by fuel at 24 percent. Interest on loans at 11 percent and insurance at 10 percent followed. Taxes, as well as maintenance and repairs, accounted for 4 percent each.

CR also looked at one- and eight-year owner costs to show a drop in those costs over time. However, depreciation remains the largest cost throughout, accounting for 57 percent for the first year, gradually falling to 43 percent for the eighth year.

Desiring Affordable Transportation

Americas love affair with cars has long been based on affordable transportation. With the economy struggling to find footing and with consumers seeking to contain costs, the trend toward fewer vehicles on the road seems assured. That some households are doing without a car at all usually points to urban living where car ownership is as much as a hassle as it is a significant cost.

Notably, what often isn’t included in these reports is consumers attitude towards car sharing. This is an option that allows people to use a car for as long as they need it, from just a few hours to a few days. Thus, people have access to a vehicle without the burden of car ownership and of parking as is the case for city dwellers.

Recent News Stories

Chicago Auto Show Debut: 2015 Lincoln Navigator

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

Five Top Selling Large Crossovers of 2013

Filed Under: Automotive News Tagged With: CAR OWNERSHIP, CONSUMER REPORTS, Michael Sivak, NEW CARS, RESEARCH TRANSPORTATION INSTITUTE, STUDY, SURVEY, UNIVERSITY OF MICHIGAN

Chicago Auto Show Debut: 2015 Lincoln Navigator

January 24, 2014 by admin 5 Comments

In 1997, the Lincoln Navigator was launched to the full-size luxury sport utility vehicle segment, one that spawned several competitors including the Cadillac Escalade. Like the Escalade, the Navigator is based on the company’s truck platform, a traditional body-on-frame SUV that seats as many as eight people.

2015 Lincoln Navigator

At the 2014 Chicago Auto Show: 2015 Lincoln Navigator.

2015 Lincoln Navigator

On Feb. 6, 2014, at the Chicago Auto Show, a new Navigator model will be introduced, the first major change to this vehicle since 2009. The upcoming model adopts Lincolns current design language and will be be powered by a 3.5-liter twin turbo V-6 engine, replacing the naturally-aspirated 5.4-liter V-8 that has long moved this SUV.

The newest Navigator will sit on a 207.4-inch wheelbase, down slightly from the current 208.4 inches. An extended wheelbase model also loses an inch, measuring 222.3 inches between the wheels. A redesigned exterior, a refreshed interior, upgraded technologies, and additional luxurious accoutrements will be included.

Inside, the 2015 Lincoln Navigator will be furnished with electric welcome mats as owners press the key fobs unlock button. Even so, owners will be able to gain access to the cabin without a key as the car automatically unlocks provided that the key fob is present in a purse or a pocket, for instance. Push button start replaces the current keyed ignition.

2015 Lincoln Navigator

The Navigator received an updated
connectivity/infotainment system for 2015.


See Also — Highlights of the 2019 New York International Auto Show


Update Connectivity, Infotainment System

The Navigator will also be outfitted with the latest version of SYNC with MyLincoln Touch, its driver connectivity/infotainment system. This standard-equipped system makes it possible for the driver to control a number of important commands by voice or by touch screen. Cabin temperature controls, audio system access, and phone calls can be made through this system. An 8-inch touch screen located above the center console, a 4.2-inch instrument cluster LCD display, and customary control knobs provide access points to the system.

Standard seating for eight can be changed to seven if buyers elect to replace the fold-flat bench seat with a pair of captains chairs. They can also opt to keep or lose the center console. For the third row a power operated fold-flat seat is standard.

2015 Lincoln Navigator

The new Navigator offers seating for seven or eight.

Reserve Package Amenities

The available Reserve Package also brings to the model line high-end leather across all three seating rows, as well as across the center console, on the armrests and to the transmission shifter. The instrument panel will feature hand-wrapped leather with contrast stitching and a leather glove box. Zircote wood trim, a natural-grain wood commonly found in yachts, will also be used.

Under the hood, the first six cylinder engine to ever power a Lincoln Navigator will be the sole motor offered. It is a familiar engine used in other Ford and Lincoln products, one outfitted with a pair of turbochargers, direct injection and variable valve lift technology. It will be coupled with a select-shift 6-speed automatic transmission.

Three Driving Modes

Rear-wheel drive will be standard and four-wheel drive optional. Electric power-assisted steering, a continuously controlled damping system to provide an improved ride, and three different driving modes (normal, sport, and comfort) will be offered. Hill start/descent assist is another standard feature.

“Navigator has retained some of the most loyal following in the segment for more than a decade,” said Jim Farley, executive vice president, Ford global marketing, sales and service and Lincoln. “Among Lincoln owners, more than 70 percent have been return customers – purchasing the vehicle for its power, for its beauty and for its capability, and this new Navigator gives them more on all three fronts.”

Available Fall 2014

The 2015 Lincoln Navigator will be produced in Louisville, Ky, beginning late summer and arrive in Lincoln showrooms by early fall. It will be joined by another new model, the Lincoln MKC, a compact crossover utility vehicle that goes on sale this spring.

So, why invest in a segment that is clearly declining? Navigator sales topped 40,000 units in 1999, but have been falling most years since. Indeed, Lincoln sold just 8,613 units in 2013, up 2.9 percent over 2012, but far below the sales this model attained when gas prices were hovering around one dollar a gallon.

For one, the Navigator shares its platform not only with Fords trucks, but with the Ford Expedition, an SUV with sales topping 38,000 units in 2013. For another reason, the Navigator enables Ford to breath just a little more life in its Lincoln brand, as it brings out other new or refreshed products. And with an EcoBoost engine under the hood, buyers may take a fresh look at the Navigator and its improved performance, fuel economy, and luxurious amenities, deciding to replace their aged models with something new.

Recent News Stories

Autonomous Driving: Ford Collaborates with MIT, Stanford

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

Five Top Selling Large Crossovers of 2013

2015 Lincoln Navigator photos courtesy of the Lincoln Motor Company.

Filed Under: Auto Shows Tagged With: 2015 MODELS, Chicago Auto Show, EcoBoost, Ford Expedition, Ford trucks, LINCOLN NAVIGATOR, RESERVE PACKAGE, SUV

Autonomous Driving: Ford Collaborates With MIT, Stanford

January 23, 2014 by admin 1 Comment

Moving forward with autonomous driving research.

The Ford Motor Company is working with a pair of university partners as it commits to advancing its research on autonomous driving. The Massachusetts Institute of Technology (MIT) will be handling scenario planning in an effort to forecast the actions of other vehicles and pedestrians. Stanford University researchers will help Ford learn how a vehicle might maneuver to permit its sensors to look around obstacles. Both projects are part of Fords Blueprint for Mobility initiative that looks beyond 2025 to see where autonomous driving and advanced technologies might impact transportation.

Autonomous Driving: Ford Fusion Hybrid

A team of Ford Fusion Hybrids outfitted with autonomous equipment.

Autonomous Driving Projects

Ford’s latest technology announcement follows and builds on its automated Ford Fusion Hybrid research vehicle that rolled out last month. Automated driving falls under Fords mobility blueprint, what will help the automaker determine the business models and partnerships it will need to reach its goals. The automaker anticipates that it will need to collaborate with many new partners across the public and private sectors, something it intends to begin immediately with the help of its academic partners.

Paul Mascarenas, chief technical officer and Vice President, Ford research and innovation said, “Working with university partners like MIT and Stanford enables us to address some of the longer-term challenges surrounding automated driving while exploring more near-term solutions for delivering an even safer and more efficient driving experience.”

The Ford Fusion Hybrid research vehicle is based on technologies the automaker uses today and makes available to its customers. It then added four LIght Detection And Ranging (LiDAR) sensors to produce a 3D map of the vehicles surroundings in actual time.

Autonomous Driving: Ford Fusion Hybrid

The University of Michigan and State Farm are also partnering with Ford.

MIT Partnership

Ford’s research with MIT will use advanced algorithms to determine where other vehicles and pedestrians might be in the future. It will build on existing LiDAR technology that is able to sense objects around the vehicle. The goal for Ford-MIT is to enhance the technology’s ability to map out a pathway that will safely avoid pedestrians, vehicles and other moving objects.

Stanford Partnership

Fords research with Stanford will examine how sensors might look around obstacles. The automaker builds on existing driver behavior such as when a large obstacle like a city bus blocks the drivers view. In such situations the driver might move around in the lane in a bid to get a clearer view. Working in similar fashion, Ford-Stanford are seeking ways for the sensors to mimic driver behavior and take evasive action as required. For instance, if the city bus ahead of the car suddenly braked, the autonomous vehicles sensors would scan the area to determine if it could quickly and safely make a lane change.

Autonomous Driving: LiDAR

Ford has tapped Velodyne for its LiDAR technology.


If it sounds as if the university researchers are attempting to inject some common sense into autonomous vehicle technology, youd be correct. Indeed, just as drivers have a sense for what is going around them while on the road and what actions to take, Ford and its research partners are seeking to attain similar intuitiveness with its autonomous vehicles.

Recent News Stories

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

Five Top Selling Large Crossovers of 2013

Toyota, Ford Products Pace 2013 US Auto Sales

Photos courtesy of the Ford Motor Company.

Filed Under: Automotive News Tagged With: AUTONOMOUS CAR, AUTONOMOUS DRIVING, FORD FUSION HYBRID, LIDAR, MASSACHUSETTS INSTITUTE OF TECHNOLOGY, MIT, STANFORD UNIVERSITY

Deloitte Report: Young Adults Want to Buy Cars

January 22, 2014 by admin 5 Comments

Automotive executives have enough worries to keep them awake at night. Recalls. Upgraded IIHS crash standards. Federal fuel requirements. Persnickety consumers, especially young people that seem disinterested in buying a new car.

Honda Insight.
The Honda Insight is among the hybrids that Gen Y buyers want.

Deloitte Survey and Report

A recently released Deloitte LLP report will be carefully studied by these same executives as it is those findings that should give them some much needed assurance that young adult consumers do, in fact, want to buy a new car. Moreover, the Deloitte report on global mobility found that the approximately 80 million Generation Y (Gen Y) consumers (born between 1977 and 1994) are anticipating buying or leasing one.

The Deloitte study surveyed more than 23,000 consumers in 19 countries including 2,000 people in the United States. Of the American participants, 677 fit the Gen Y profile. And it is from that profile Deloitte extrapolated its findings to reveal that about 61 percent of these consumers expect to buy or lease a car within the next three years, including 23 percent who intend to do so within the next 12 months.

Deloitte also found that young consumers aren’t necessarily willing to give up their own cars for other options including car sharing and public transportation. Just 29 percent of the respondents indicated their willingness to do so. What they do want are cars that are affordable, fuel efficient, safe, and have the latest technological amenities.

Honda InsightSaid Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader, Affordability is the mantra for Gen Y consumers who dont already own or lease a vehicle. When asked what purchasing criteria mattered most to them, a majority cited cost-related items such as the vehicles price tag, fuel efficiency and payment options.

Alternative Powertrains and Safety Features

Alternative powertrains have the attention of Gen Y buyers, with 59 percent expecting to drive a vehicle so equipped within the next five years. Hybrid electric vehicles lead the pack with 27 percent of the respondents indicating their interest in this technology. That was far ahead of plug-in hybrids (8 percent), pure electric vehicles (7 percent) and fuel cell vehicles (4 percent). To get there, 58 percent would like to see government incentives in place to support their future purchases.

Safety features are very important to young car shoppers too. Nearly three-quarters of the respondents like technology that warns them of the presence of other cars on the road (blind spot information systems, for example) and nearly two-thirds of them like the idea of being warned when they exceed the posted speed limit. More than half (56 percent) want technology that entertains them and 57 percent want to easily customize a vehicles technology after purchase.

While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road, noted Masa Hasegawa, principal, Deloitte Consulting LLP. This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle.

Toyota Prius.
Toyota’s Prius family may have special appeal for Gen Y buyers.

Positive Automotive Dealer Feedback

Deloitte also had some very good news for automotive dealers, the people that are oftentimes looked at with fear and loathing by consumers, especially more mature car buyers. Those older buyers have routinely expected that their car buying experience would be an unpleasant one, but for Gen Y consumers 41 percent have a positive attitude toward dealers. This compares to a 22 percent rating on average.

Moreover, 40 percent of Gen Y consumers have indicated that the salesperson had a major or significant impact on the the vehicle purchase compared with 27 percent of consumers from other generations. Deloitte found that young car buyers look at their purchase as a collaboration between them and the dealer. These future buyers have also praised automotive manufacturer websites, with 53 percent saying that they have had a significant or major impact on their buying decision.

Future Business Model Possibilities

Automotive manufacturers should also realize that future and yet untapped business models may help promote their businesses as well. Although most respondents indicated little interest in car sharing or car pooling, a significant number (42 percent) said they would be if it were readily available and convenient. They like the idea of sharing a car with a friend or a relative, but 57 percent expressed concern about their safety, security, and privacy when sharing a ride.

For respected and established auto brands, this could be a chance to cater to an open-minded group of buyers with trusted products and services that didnt even exist a few years ago, said Candan Erenguc, senior manager, Deloitte Consulting LLP.

So, what is the ideal car for this generation? We may already see a pair of them on the market: the Toyota Prius C and the Honda Insight, both which meet the criteria of an alternative powertrain (hybrid), low cost (under $20,000), and certain safety parameters. Still, both models would also have to include several of the pricier technological features that this generation wants and do so at a price point that is palatable. In any case, the Deloitte study provides a positive outlook on where the industry may be headed and of the consumers who will be purchasing these cars.

Recent News Stories

Polk Automotive Awards Places Ford First Again

Five Top Selling Large Crossovers of 2013

Toyota, Ford Products Pace 2013 US Auto Sales

Filed Under: Automotive News Tagged With: ALTERNATIVE POWERTRAINS, CAR BUYING, CAR SHOPPING, CONSUMERS, DELOITTE, GENERATION Y, Honda Insight, HYBRIDS, TOYOTA PRIUS C

Living Large With the Hyundai Equus Ultimate

January 21, 2014 by admin 5 Comments

The Hyundai Equus is the top-of-the-line model in this Korean brands arsenal, a true-blue full-size luxury sedan that is in the same class as the Lexus LS, Audi A8, BMW 7 Series, and the Mercedes-Benz S-Class. It retails for about $10,000 less than the Lexus and comes in at a price far below its German competitors, offering value in a segment where shoppers seem to care more about prestige and branding than for saving their money. That doesn’t mean that the Equus doesn’t hit many of the high points for the segment it does. Rather, it is a model that seeks to change perceptions about Hyundai and adds the prestige to go with it.

2014 Hyundai Equus
The flagship 2014 Hyundai Equus sedan.

The Equus proportions are in line with the largest Lexus and what the top European brands offer. Its brand name, Hyundai, has long stood for value, with quality and reliability more recent attributes. Combined, these three Hyundai hallmarks have helped the brand enjoy soaring sales even as capacity constraints and stiff competition weighs in.

2014 Hyundai Equus Ultimate

The Equus is a thoroughly wonderful sedan. That it is a Hyundai may explain why fewer than 4,000 units have been sold in each of the past two years, a sedan now in its fourth model year for US sales. In 2013, Lexus sold 10,727 LS sedans, up 28.5 percent. Mercedes-Benz sold 13,303 of its S-Class sedan, up 8.5 percent. BMW sold 10,932 units of its 7 Series, down 1.5 percent. And Audi sold 6,300 units of its A8, up 5 percent.

Meanwhile, Hyundai sold 3,578 Equus units, down 10 percent for the year. Two headwinds are working against the Equus: its Hyundai association and lack of all-wheel drive availability. Brand conscious folk wont buy the Equus because it is a Hyundai and although its rear-wheel drive layout is quite good, not offering all-wheel drive may also hold down sales.

Beyond the mind-numbing statistics, Hyundais Equus offers limo-like good looks, a quiet and comfortable interior, and the latest technological features that large luxury sedans provide. On that level the Equus matches its competitors, the beginning and ending purchase decision point for one segment of shoppers.

2014 Hyundai Equus

Powerful Engine, Smooth Transmission

Under the hood, a 429-horsepower 32-valve V-8 engine is at work, and is paired with an 8-speed automatic transmission. It is the only powertrain coupling available, but it also the only one needed. It is rated at 15 mpg in the city and 23 mpg on the highway. After 304 miles on a single tank I had to head the pump, getting an estimated 17 mpg in mostly highway driving. Chances are if the Hyundai Equus or one of its competitors is on your list, gas mileage is a low priority.

The Equus design does not follow the current Hyundai fluidic sculpture styling convention. It has a distinctive front grille, flanked by HID headlights located above fog lights set within sculpted alcoves. An air intake is found between the fog lights. This model is outfitted with power operated side mirrors with turn signal indicators, 19-inch alloy wheels, and LED tail lights. The only exterior hint that it is a Hyundai is the scripted H symbol centered between the tail lights. No use of Hyundai anywhere instead, the Equus symbol graces the front hood, the wheels and on the steering wheel.

Leather, Wood, and Refinement

Inside, the 2014 Hyundai Equus is lavishly appointed with supple leather on the seats, across the dash, and on the door panels. The headliner is of microfiber suede, and premium wood trim is in abundance. Hyundai equips the Equus with 12-way power front seats, with heating and cooling elements. The tilt and telescopic steering wheel is also heated, itself made of wood and wrapped in leather. The wheel also includes secondary control switches and dials.

2014 Hyundai Equus

A 9.2-inch display screen features a Driver Information System as well as the navigation interface. The screen is clear, easy to read, and simple to control by means of a large dial located between the front seats. That display features the rear view camera as well as a 360-degree view of the sedan. More than once it came in handy when I needed to back into a tight space.

Todays luxury sedans offer a heads-up display (HUD) and the Hyundai Equus has one of its own. You can display vehicle speed, turn-by-turn navigation, and see several warning displays including blind spot detection within plain sight. I appreciated that I could adjust the height of its appearance on the windshield, with Hyundai making it possible to adjust it up and down with ease.

Hyundai Equus: BMW Amenities, Limousine Ride

View manufacturer details and pricing

Not unexpectedly, the Hyundai Equus has its own audio system of note. If you’re going to compete with the top echelon, then your sound system must deliver. The Equus is equipped with a 598-watt, 17-speaker Lexicon surround sound audio system, one that includes a 13-channel digital amplifier, SiriusXM satellite radio, HD radio, and the accompanying iPod/USB and auxiliary input jacks. Lets just say that if you want a symphony experience or enjoy your favorite rock concert, you wont be disappointed.

Hyundais technology credentials are evident in the Equus LCD instrument cluster. Its a sharply luminous display with a 12.3-inch screen that changes screen color when you change the driving mode (i.e., normal, sport, snow). Trip information is located front and center with the odometer on the left and a speedometer on the right.

2014 Hyundai Equus

Rear seating room is for three, but consider that option carefully. For when there are two people present, the outboard seating positions ratchet up the comfort level by reclining, and can be heated and cooled. You need to drop down the center seat armrest to access these controls which also provide lumbar support, localized heating and cooling, and control of the two front seat back LCD display screens. Both rear side windows have sunshades when the Ultimate package is chosen, providing an additional level of comfort and privacy for rear-seating passengers.

Hyundai Equus or Not?

You may hear that the Hyundai Equus doesn’t have the handling or ride of its upmarket contemporaries. I wont dispute those findings. The Equus reminds me of what the Lincoln Town Car might have become had the Ford Motor Company created a new model. Equus has the price and the package that would satisfy American luxury car buyers, but improved body sculpting, a more forceful grille, and a distinct rear deck would certainly be attention grabbers. As it stands, the Equus is closer in price and style to the Lexus LS than its German competitors, a value-oriented luxury liner that represents a good first shot for Hyundai.

2014 Hyundai Equus Ultimate

  • Sticker price from $61,000
  • Price as tested: $68,920 (estimated)
  • Seats 5 occupants
  • 5.0-liter 32-valve V-8 engine
  • 429 horsepower @ 6,400 rpm
  • 376 foot-pounds of torque @ 5,000 rpm
  • 3.78 inches bore by 3.43 inches stroke
  • Engine compression ratio: 11.5-to-1
  • Eight-speed automatic transmission
  • Wheelbase: 119.9 inches
  • Length: 203.1 inches
  • Width: 74.4 inches
  • Height: 58.7
  • Passenger volume: 109.3
  • Storage volume: 16.7 cubic feet
  • Towing capacity: Not Rated
  • EPA: 15 mpg city, 23 mpg hwy.
  • Regular grade gasoline
  • Fuel tank: 20.3 gallons
  • Curb weight: From 4,616 pounds
  • Vehicle assembly: Ulsan, Korea

More Hyundai Reviews

Premium Compact: 2017 Hyundai Elantra Limited

Attainable Opulence: 2015 Hyundai Genesis

Refreshed: 2017 Hyundai Santa Fe Sport

On the Road With the All-New 2016 Hyundai Tucson

Hyundai Equus photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: New Car Reviews Tagged With: 2014 MODELS, AUDI, BMW, FLUIDIC SCULPTURE, Hyundai Equus, LEXICON, Lexus, Mercedes-Benz, rear-wheel drive

Return to Porsche By Design: Seducing Speed

January 20, 2014 by admin 1 Comment

Porsche By Design: Seducing Speed

Following my media preview of Porsche by Design: Seducing Speed at the North Carolina Museum of Art last Oct. in Raleigh, I knew that a follow-up visit was in order. Not that Im a huge Porsche fan, but with a world class car design exhibit on display just minutes from my home I knew that at least one return visit on my own was necessary.

And that visit was made with my oldest son, Thomas, a 13-year-old boy whose interest in art trumps nearly anything else in life. Then again, he is also a Lego maven and can appreciate exceptional design including iconic Porsches, something that he and hundreds of others enjoyed this past Sat. morning.

Porsche By Design: Seducing Speed

My second visit meant dealing with larger crowds, but the people in attendance were no less enthusiastic than before. Indeed, one of the enjoyable aspects of visiting any public show is the broad knowledge base of the visitors. I overhead not just one conversation where a visitor was extolling the engineering features of a particular model including the Porsche 918 hybrid concept and its 3.4-liter V-8, twin electric motors, 500 horsepower and 198 mph top speed. I soon realized how little I knew about this model and its likely impact on Porsche when it eventually comes into production.

Public shows are chatty affairs too. One woman came up to me and asked me if I knew German. Other than my habit of pronouncing Porsche with one syllable and knowing a few salutations, I struggle with the rest of them. Her concern was with the family name Piechs, what is familiar to Porsche faithful. After a few attempts on pronunciation I referred her to a nearby help desk where she was told it was pronounced as pies.

Whats in a Name

Well, on further investigation I learned that Piechs is pronounced peach. I also learned that the museum staff was referring to Porsche as Por-shuh, a common pronunciation for the iconic sports car brand and family. Its a pronunciation debate that never seems to end. Watch this commercial for the Panamera, and you’ll hear how the company pronounces it (you say to-may-toe, I say to-may-toe…). Fortunately, I write Porsche much more often than I pronounce it.

The Porsche exhibit was to end today, but it was given a two-week extension and will end on Feb. 2, 2014 instead. Thats Ground Hog Day, but it is also Super Bowl Sunday. So, after you learn if the ground hog has seen his shadow, attend church, and eat your lunch, you can have all afternoon for visiting the Porsche exhibit and still return home in plenty of time for the 6:30 pm kickoff.

For Your Picture Taking Pleasure

The NCMA expects that exhibit visitors will want to take pictures. In fact, they actively encourage it. My Canon PowerShot SX40 HS serves up decent pictures, but heavier equipment can do an even better job of capturing every square inch of the 22 classics on display. Know that you’ll be doing battle with everyone else and their smartphones too, so be prepared to jostle for space and wait patiently as people snap their pictures and move on. And speaking of snapping, you’ll find herein 28 of the 143 photos I took, a tally that doesn’t include the 100+ photos my son added with my iPhone.

Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed
Porsche by Design: Seducing Speed

Porsche by Demand: Seducing Speed photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Special Tagged With: DESIGN EXHIBIT, North Carolina Museum of Art, PIECHS, PORSCHE 918, PORSCHE BY DESIGN, Raleigh

Lexus RC F: More to Follow

January 17, 2014 by admin Leave a Comment

Fall 2014 release for RC line.

2015 Lexus RC F.
Fall 2014 debut: 2015 Lexus RC F.

Toyota introduced two sport cars at the 2014 North American International Auto Show in Detroit this week: one was the Toyota FT-1 concept, the other was the production-bound Lexus RC F. Suffice to say the concept received more buzz than the model that will be produced, perhaps for a very good reason: the FT-1 may very well become the future Toyota Supra.

Supra rumors aside, the Lexus RC F deserves its own attention and for two good reasons:

1. For the stirring introduction by Detroit son, Jeff Bracken, now Lexus Group Vice President and General Manager. Bracken told his Cobo Hall audience how the Shelby Cobra hooked him and defined his destiny. He graciously lauded the Cobra, using that tribute as a segue for introducing the RC F.

2. As much as the speech set the table for Lexus newest sports car it was the RC F itself that lit up the audience while also pointing to even better things to come. Sure, Lexus has had its share of performance models in the past including the IS F. But, Lexus has served up more hybrids than top performers, besides the brands expansive fleet of luxury vehicles.

2015 Lexus RC F

Lexus RC F Performance

The Lexus RC F is the third sporty/performance model introduced in as many months, following the introduction of the Lexus RC Coupe at the Tokyo Motor Show last month. That model features two very different powertrains: a 2.5-liter hybrid and a 3.5-liter V-6.

The RC F will be powered by a normally aspirated 5.0-liter V-8 engine, one making at least 450 horsepower and 383 foot-pounds of torque. Said Bracken about the new model, This is the fastest and most powerful V8 yet for Lexus.

And it is no ordinary V8 engine either: it utilizes both the Atkinson and Otto cycle in a bid to enhance fuel economy and increase performance. At lower speeds the Atkinson cycle is at work; when performance is needed the Otto cycle takes over. The power management tool here is an 8-speed transmission.

2015 Lexus RC F

Dynamic Engineering Features

There are a number of special features at work in the Lexus RC F that should interest fans. For one, it features an active wing, much like the one found with the LFA. The wing serves to increase downforce and improve grip over the rear 19-inch tires. Another feature is the functional vent hood, designed to decrease aerodynamic lift. And, there is also a torque vectoring differential, designed to manage traction in, through and out of corners.

Lexus gave us select highlights about the the Fs interior telling us that the instrument panel will be punctuated by a 7-inch navigation screen. It will also feature a touchpad interface, working much like your iPad or similar device. Lexus says that climate control, navigation, and media selections can be operated by a swipe of a finger.

Release and Sales Production

You’ll have to wait a bit for the Lexus RC F and the like RC 350, with both models going on sale this fall. Lexus expects to sell 1,400 RC vehicles a month once it hits its stride. And, if you like the RC F you can be assured that Lexus wont be stopping there. Bracken notes that the “…RC F is only the next addition of more Lexus performance to come.” And Lexus fans rejoiced!

Related NAIAS News

Tease us Please: Kia GT4 Stinger Concept

Sleek Cadillac ATS Coupe Takes on Germanys Best

Audi Allroad Shooting Brake Concept Debuts>Toyota FT-1 Concept to a Supra Reality?

Toyota FT1 Concept to a Supra Reality?

Photos courtesy of Toyota Motor Sales, USA, Inc.

Filed Under: Automotive News Tagged With: LEXUS RC 350, LEXUS RC F, NAIAS, SPORTS CAR, TOYOTA FT-1, V-8 ENGINE

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