Archives for January 2014

University of Michigan: American Car Ownership Falls

Photo courtesy of Fiat Chrysler Automobiles N.V.

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 driver The 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.

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Chicago Auto Show Debut: 2015 Lincoln Navigator

Chicago Auto Show Debut: 2015 Lincoln Navigator

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.

2. 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

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.

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Autonomous Driving: Ford Collaborates with MIT, Stanford

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.

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.

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2015 Lincoln Navigator photos courtesy of the Lincoln Motor Company.

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.

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Toyota, Ford Products Pace 2013 US Auto Sales

Photos courtesy of the Ford Motor Company.

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 Insight Said 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.

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