AUTOMOTIVE NEWS

How to Fix a Broken Rivian Vehicle

November 12, 2020 by admin Leave a Comment

American automotive and technology company Rivian is working diligently to bring its first vehicles to the market, with the production of its battery-electric R1T pickups and R1S SUVs beginning early next year. By June 2021, the first models should be in the customer’s hands, which will then reveal just how capable these models are.

No Dealerships

As with any vehicle launch, Rivian will spend several months producing launch models and testing the same before customers see one. This effort allows the company to identify potential problems and make repairs and adjustments to the build process. The goal is, of course, to supply flawless execution of the entire manufacturing regimen, to eliminate problems, and ensure customer satisfaction.

Inasmuch as any manufacturer attempts to get things right, problems occur after the fact. We’ve seen automakers bogged down with recalls, large and small, as well as service bulletins to handle problems that don’t warrant massive intervention. These issues are typically resolved at the dealership level, specifically through service departments tasked with handling maintenance and repairs.

On-Site and Local Repairs

However, Rivian does not have dealerships as the company will sell its electric vehicles directly to consumers, businesses, and other interested parties. Instead, we have learned that Rivian has a unique process in the works, one that’ll enable customers to seek out repairs nearby, including very locally.

In an interview with Automotive News, Rivian’s president CJ Scaringe said that the company will have a fully operational service network in place to handle repairs. Specifically, the network will comprise 41 service centers scattered across the United States. Customers will then have the option to bring their R1S or R1T to these centers for assistance.

But service centers are not the be-all and end-all, especially for customers who find themselves stranded or hundreds of miles between centers. Thus, the Rivian strategy also includes scheduled mobile service at homes or businesses. With this latter option, maintenance crews are dispatched to where they are needed, handling repairs that over-the-air updates cannot manage.

Amazon’s Stake and Order

The R1S and R1T are not the only electric vehicles Rivian will build at its Normal, Illinois, manufacturing plant. A third model, which is a delivery van, will launch in 2021 next year. Its primary customer is Amazon, one of several important Rivian stakeholders. Indeed, in September 2019, Amazon invested $700 million in Rivian and ordered 100,000 vehicles with deliveries through 2024.

Likely, Rivian will establish direct repair centers with Amazon to handle its needs. Or, it may routinely dispatch repair vehicles to Amazon facilities. Regardless, electric vehicles have so few running parts compared to models powered by an internal combustion engine, that such repairs should be few and accomplished quickly.

Three Editions

Besides detailing its maintenance and repair strategy, Rivian announced that its SUV and pickup truck will each be available in three editions, with a fourth likely following. The R1T Launch Edition ($75,000) and the R1S Launch Edition ($77,500) roll out in June and August, respectively. Canadian customers will have access to both vehicles beginning the following November.

The Launch Editions come with a 300-plus mile range and the Adventure Package. That package features a reinforced underbody shield and an on-board air compressor. For the truck, the package includes a power tonneau cover and a Gear Guard remote monitoring system. Inside, the two models include heated and cooled perforated vegan leather seats, natural-grained ash wood trim, and the Rivian Elevation 360-degree audio system with removable Bluetooth.

Besides the Launch and Adventure Package editions, an Explore Package rolls out in 2022. This one costs $67,500 (R1T) and $70,000 (R1S), with a lower level of content than the other trims. Yet, the same 300-mile range is standard.

Rivian promises an even lower-cost version of both models down the road, with a battery range of about 250 miles. Further, a longer-range R1S model is planned in both five- and seven-passenger seating capacities.

Mid-Engine Marvel: C8 Corvette Debuts

July 19, 2019 by admin 2 Comments

The all-new Corvette on stage in California Thursday night.

Fifty years after NASA launched its first moonshot, GM follows with one of its own. An all-new Chevrolet Corvette was unveiled last night, the first mid-engine version of this super Chevy. An old military aircraft hangar in Tustin, California, served as the venue for the eighth-generation (C8) Corvette’s debut, with NASA astronauts, company workers and officials, and media in attendance.

New Ground for a Standard Bearer

The 2020 Chevrolet Corvette not only breaks new ground, but it underscores GM’s investment in cutting-edge technologies, including those that will help the company transition to autonomous vehicles. Not surprisingly, the new Corvette keeps one important tradition alive: it will once again be powered by a naturally aspirated 6.2-liter V8 engine, a rarity in a segment where boosting with superchargers and turbochargers represents the standard.

The engine, though, is new (dubbed LS2) and designed specifically for the Corvette. With the available Z51 package, it has an output of 495 horsepower and 470 foot-pounds of torque, and works with a Tremec-supplied 8-speed dual-clutch transmission. This is the first time in decades a Corvette debuts without a manual transmission. We do not know whether one will be offered in the future.

How fast will the Corvette Stingray go? GM says it has an estimated 0-60 mph time of under 3 seconds, placing it in lofty company. Models such as the Porsche 911 GT3 RS, Ferrari F12tdf, and even the current Chevrolet Corvette Z06 all slip just under the 3-second threshold. Remember, this speed number applies to the base model — GM made no mention of the other models which are certain to follow.

Key aspects of this model include large side air intakes for engine cooling and aerodynamic performance. You’ll also note the door, hood and hatch releases are hidden.

C8 Corvette Dissection

GM’s hour-long news conference followed a half-hour primer of all things Corvette. Much information about the C8 Corvette was shared, although a few things were not mentioned. Among the highlights are the following:

1. Price and ordering details. GM threw open the order books for the 2020 Corvette, allowing shoppers to “request a reserve” of the new model. Production begins late this year at the company’s Bowling Green, Kentucky, manufacturing plant, with the first deliveries taking place in early 2020. Although pricing details weren’t delineated, the automaker stunned everyone by mentioning the starting price will begin under $60,000. That price point will play a big role in keeping the Corvette attainable for enthusiasts.

2. Slightly larger and heavier than the outgoing model. GM employs many weight-saving measures with the all-new Corvette, including greater use of aluminum, carbon fiber, composite materials, fiberglass, and steel. However, the C8 gains a half-inch between the wheels and is nearly 5.5 inches longer overall. It is slightly heavier too, weighing 3,366 pounds to the current 3,298 pounds of the C7. The cabin is a bit larger too with an extra inch of seat play possible.

3. Rear-wheel drive only. Rumors that the new Corvette would feature all-wheel drive, at least as an option, apparently was just that…a rumor. Power is routed to the rear wheels in the traditional Corvette way. But the debut involved the Corvette Stingray only with no mention of other models certain to follow. A twin-turbo V8 has long been touted as a possible option, likely to power a future ZR1 model. We also know that some type of electrified variant is in the works. If a hybrid Corvette does appear, there’s always a possibility some power could be routed to the front wheels, making it an all-wheel-drive model. One more point: for the first time the Corvette will be manufactured with available right-hand drive, expanding the Corvette’s range to such countries as Japan and the United Kingdom.

Take note of the placement of the quad-tip exhaust pipes.

4. A state-of-the-art suspension system. A sports car is nothing without cutting-edge steering and handling. The 2020 Corvette will showcase several improvements, including coil-over dampers, an upgraded electric steering system, and electric-powered brakes. An important feature is an automatic suspension lift for the front end — this system raises the car’s front end by two inches, helping the Corvette avoid pavement scraping. Importantly, the system can be programmed to store as many as 1,000 locations tracked by GPS. This means if you’re accessing a steep driveway known for scraping the front end, the car will automatically lift as you make your approach thanks to your pre-set.

5. An all-new interior. We’ve seen Corvette interiors improve over the years. Early on, Corvette cabins were relatively disappointing, not rising to the level of a premium sports car. For 2020, Chevrolet promises to deliver improvements, including real metal inlays, cut-and-sewn leather, steel speaker grilles, and available carbon-fiber trim. Customers will have a choice of six interior color themes (along with a dozen exterior colors). A long row of buttons on the center console will control most interior functions. Three types of seat choices, digital displays, and a 14-speaker Bose audio system are among this model’s features.

6. Stellar storage space at the ready. With the engine sitting in the middle, much interior space is now free. Indeed, the cockpit is placed 16.5 inches forward over the C7 Corvette. In front and again the back, there is a pair of trunks, offering a total of 12.6 cubic feet of storage space. GM says the C8 Corvette can hold two sets of golf clubs or several pieces of luggage.

Multiple color choices, two stitching options, and three available seat designs
accompany the all-new Corvette Stingray.

The Future is Here

Zora Arkus-Duntov, known as the “father of the Corvette,” long had a mid-engine Corvette in mind. Indeed, several prototypes were built, but Arkus-Duntov never saw a production version. He died in 1996.

We’ve now gotten our first glimpse of the new Corvette, one that takes this iconic sports car in a fresh direction, even as demand for such models falls. The C8 Corvette represents GM’s moonshot, what the automaker hopes mirror the “right stuff” that propelled NASA to lunar greatness.

See Also — So Long, Farewell to the C7 Corvette

Photos copyright GM Corp. Special thanks to Automotive News, which supplied inspiration for many of the details outlined herein.

May Sales Tumble, But the End is Not Near

June 2, 2016 by admin Leave a Comment

Sales setback is temporary with some surprises thrown in.

US auto sales fell by 6.1 percent last month, but the end is hardly near. Instead, the industry counted two fewer selling days for May, accounting for much of the loss for the month.

2015 Ford F-150

Ford F-150 sales rose in by 9 percent in May.

US Manufacturers: Only FCA Rises

As expected, Fiat Chrysler sales rose by 1.1 percent, largely on the strength of its Chrysler Town & Country and Dodge Grand Caravan minivan models. Jeep was another positive spot and was the only Fiat Chrysler brand other than Alfa Romeo to post gains for the month.

Some manufacturers such as GM posted larger losses than expected. GM sales fell by 18 percent, while Ford’s drop of 6.1 percent matched the industry’s average. GM blamed much of its decline to a reduction in fleet sales.

Had Ford maintained its sales from last month, it would have topped GM. Instead, it closed the gap to about 5,700 units, while remaining ahead of Toyota. The bright spot for Ford was once again its line of F-Series trucks. In May, Ford sold 67,412 units, up 9 percent for the month.

Hyundai Records a Strong May

Every major manufacturer outside of FCA posted losses last month, but there was a noticeable exception from the Hyundai-Kia Automotive Group — Hyundai sales rose by a robust 11.6 percent; Kia sales edged up by 0.8 percent.

“Our refreshed CUV lineup continues to exhibit strength in this market,” said Derrick Hatami, vice president of national sales for Hyundai Motor America.

2016 Subaru Forester

Forester and Outback sales continue to pace Subaru.

As for the Big 3 Japanese manufacturers, Toyota sales fell by 9.6 percent, Nissan dipped by 1 percent, and Honda sales were off by 4.8 percent. But there were some bright spots here too — Scion sales rose by 38.6 percent as Toyota continues to wind down its youth brand. Infiniti sales were also up, climbing by 3.4 percent.

BMW Group sales fell by 8.7 percent, Daimler was off by 1.9 percent, while Audi sales rose by 1.6 percent. Volkswagen Group sales fell by 9.5 percent, dragged down by Volkswagen’s 17.2 percent plunge.

Jaguar Propels JLR

Jaguar, with two new products to offer, enjoyed a 79.7 percent increase for the month. Meanwhile, Land Rover sales fell by 8 percent. Thus, JLR sales rose by 8 percent based on Jaguar’s strong month.

“We are very pleased that through five months of the year, we have increased our business for both Jaguar and Land Rover brands,” said Joe Eberhardt, President and CEO, Jaguar Land Rover, North America, LLC. “The Land Rover brand continues its momentum from a record setting 2015, and Jaguar has taken off with the expansion of the Jaguar brand into two dynamic new segments with the Jaguar XE and F-PACE which are now on sale.”

Subaru Breaks a Record…Again

While FCA now has 74 consecutive months of month-over-month gains to its credit, Subaru is not too far behind with a 54-month streak of its own in place. Last month, Subaru had its best May ever, with sales topping 50,000 units. Its Forester and Outback models helped this niche automaker realize a 1.1 percent gain for the month.

And not to be overlooked is Volvo. The Swedish automaker is enjoying a strong rebound this year, largely based on its all-new XC90 crossover utility vehicle. Volvo sales rose by 10.2 percent in May.

“Our refreshed CUV lineup continues to exhibit strength in this market,” said Derrick Hatami, vice president of national sales for Hyundai Motor America.

Crossover sales, including this Santa Fe, lifted Hyundai sales.

“With 10 percent growth for May while the overall industry is down, and now eleven months of double digit sales growth, it is a true testament to the transformation of Volvo in the US,” said Lex Kerssemakers, President and CEO, Volvo Car USA.

Mazda sales fell by 4.3 percent, Mitsubishi sales were off by 5.7 percent, and Tesla sales rose an estimated 55.3 percent according to Autodata Corp.

SAAR Still Strong

Despite the sales drop, the all-important SAAR remains strong. SAAR or the Seasonally Adjusted Annual Rate takes into account fluctuations, such as a sales calendar with two fewer selling days. For May, the SAAR remains above 17 million units.

Sales data per Automotive News and the car manufacturers.

Photos copyright Auto Trends Magazine.

Oft-Dismissed Minivans Propel Fiat Chrysler Sales

May 31, 2016 by admin 2 Comments

FCA’s sales streak should continue with minivans providing an unlikely contribution.

Car manufacturers track sales carefully, using monthly statistics to measure progress. Any month-over-month change falling outside of expected parameters can result in a change in strategy, including short-term production output, what incentives are offered to consumers, and a host of behind-the-scenes adjustments.

Yes, automakers often place outsized importance on sales changes, especially in the ultra-competitive and highly profitable US consumer market. Manufacturers aren’t always patient when it comes to short-range developments.

Jeep, Ram Propel FCA

Fiat Chrysler is riding a 73-month streak of year-over-year sales increases, the longest in the industry. After sales bottomed out during the last recession and just as Fiat gained control of Chrysler, the automaker has been nearly unstoppable. Credit the Jeep brand and Ram trucks with much of that continued good fortune, but when sales are tallied this month, a trio of oft-dismissed minivans may hold the key to FCA’s continued expansion.

The Chrysler Corporation launched the modern minivan movement in 1983 with the introduction of the Dodge Caravan and Plymouth Voyager. From the onset, Chrysler has dominated the segment, typically accounting for at least 50 percent of the industry’s sales. But minivans have long since peaked as customers flocked to more versatile crossover utility vehicles.

Since last fall, FCA has been in transition concerning its minivan products. The automaker invested upwards of $2.6 billion to develop a new model, the Chrysler Pacifica, while also continuing production of the Dodge Grand Caravan. The Chrysler Town & Country is officially canceled, but before shutting down production FCA pushed out thousands of models, flooding dealer inventories with the same.

Chrysler Pacifica Production Begins

Chrysler Pacifica production began on Feb. 29 and just 487 copies were sold in April. May will be this model’s first full month and sales should prove robust.

At the same time, Chrysler Town & Country and Dodge Grand Caravan sales continue with year-to-date sales up 64 and 104 percent respectively through April 2016.

Strong Incentive on Three Minivan Models

Propelling sales for both models are strong incentives. As of publication, Town & Country incentives include a $3,500 cash allowance or 1.9 percent financing for up to 84 months plus an additional $500 back. Grand Caravan incentives also come in at $3,500 along with 0 percent financing for 60 months plus a $1,500 cash allowance. Additional incentives should bring in deeper cuts, especially for remaining 2015 inventory.

Lease deals are also available, depending on the trim level selected. Typically, you’ll pay $289 to $299 per month for 36 months, with $2,999 down. However, CarsDirect.com explains that the Dodge lease on Grand Caravan SE isn’t especially attractive, considering its low MSRP.

Despite being a new model, financing and lease deals on the Chrysler Pacifica are in place. Right now, Chrysler is offering a $2,000 cash credit on the Pacifica. Or, buyers can choose 0 percent financing for 36 months and receive $1,500 cash back. If leasing is your preference, a Pacifica LX can be had for $269 per month with $1,999 due at signing.

Well-Stocked Inventory and May 2016 Sales

Last week, Automotive News noted that as of the beginning of May, 22,170 Town & Countrys and 29,247 Grand Caravans were unsold, representing a two-month inventory. Add in thousands of Pacificas and FCA’s dominance in the minivan segment will continue.

The timing of the Pacifica’s release coincides with curtailing Chrysler 200 and Dodge Dart sedan sales. Jeep and Ram sales should continue to bolster the automaker for May; together FCA is looking at a 74th consecutive month of year-over-year sales increases and should do so despite two fewer selling days this year.

Right Now: Lease a Used Car

April 25, 2016 by admin 4 Comments

Leasing deals on new cars can extend to used cars too.

Soaring new car prices mean sticker shock is a common occurrence for car shoppers. One way to lessen the blow is to lease a vehicle. Indeed, Experian Automotive found that 28.9 percent of all new vehicle models were leased in the fourth quarter of 2015. That’s up nearly 10 points in just over five years.

Leasing lowers the average monthly payment, one of the most important concerns for new car shoppers. Instead of paying $493 on average for a new car, lessees pay $411 per month for theirs. That’s $82 per month or $984 per year saved, or nearly $3,000 across the average 36-month lease term.

Used Car Leasing

Used car shoppers are also looking at ways to reduce their costs. Although representing a relatively small segment of the market, used car leasing is available. Leasing a used car provides the usual advantages of leasing — low monthly payments and an easy way to return the car and walk away.

An emerging trend in the industry is leases on certified preowned vehicles (CPOs). CPOs are popular with consumers as these models have passed dealer inspection, are backed by the manufacturer, and include the balance of the warranty, and sometimes include some type of an extended warranty. CPOs cost consumers more, but that’s a trade-off many are willing to accept.

This year, returning leases will increase by 20 percent over last year and will continue to rise for at least the next two years. That presents a problem for dealers as bloated inventories are harder to move. To combat the trend, some manufacturers, including Toyota and BMW as well as Ally Financial, are pushing used and certified leasing in anticipation of an increase in lease returns reports Automotive News.

Toyota’s arrangement covers Toyota, Scion, and Lexus brand vehicles. CPO Toyota and Scion used car leasing will be limited to vehicles no older than three model years and 65,000 miles. Lexus CPO leave vehicles will extend out to four years, but be limited to 60,000 miles.

New v. Used Sales

Of course, any CPO used vehicle program could do something no manufacturer wants — siphon new vehicle sales. Likewise, dealers are being instructed to avoid being as aggressive in pushing used vehicle leasing as they are in selling new. Extra incentives and higher profit margins on new cars also help.

Industry experts are looking favorably on used car leasing, seeing it as a win for customers and dealers alike.

“Certified lease programs are not only inevitable as a result of all the leases coming back into the market, but they can be beneficial as well,” said Scot Hall, Executive Vice President of Swapalease.com. “Drivers today want more flexibility in their lease programs, and a certified lease structure adds more opportunity for an expedited turnaround of inventory beyond just three years of age on a vehicle.”

Consumer Leasing Considerations

Consumers should always keep in mind a few things about any used car. For one, services problems are about twice as high on a three-year old car than on a one-year old model explains Consumer Reports. Also, the anticipated value of a used vehicle at the end of the lease term will impact your rate.

You might do better pursuing vehicles that hold value, including luxury vehicles, sports cars, and SUVs. That’s why Lexus and BMW are aggressively pushing CPO leases, but they’re not the only ones.

As with any used vehicle, obtain a history report. It also doesn’t hurt to have it inspected by a mechanic who can place the vehicle on a lift and give you his assessment. Use that feedback to negotiate your price — the lower the final cost, the lower your monthly lease payments.

See Also — How to Lease a Demo Car

Photos copyright Auto Trends Magazine.

New Products May Bolster Ram Brand

November 5, 2015 by admin Leave a Comment

Where is Fiat Chrysler Automobile taking the Ram brand? A large SUV is under consideration, what could bring sales and big profits to this truck-based marque.

Ever since Fiat Chrysler Automobiles separated Ram from Dodge to form a distinct brand, enthusiasts have wondered if additional products might eventually join the model line. Well, those products have come in the form of two Fiat-supplied products — the ProMaster Van and the Promaster City — a pair of commercial vehicles accounting for fewer than 1 in 10 Ram models.

The 1500 as well as the 2500/3500 series pickup trucks has essentially been the Ram brand, but other models are under consideration. This past August Auto Trends explored the possibility of a midsize Jeep pickup, one that might also yield a Ram variant, to replace the previous Dodge/Ram Dakota.

Jeep hasn’t committed to re-entering the expanding segment, but as Ford seriously considers returning with an all-new Ranger, the possibility of new models from Fiat Chrysler shouldn’t be quickly dismissed.

A Big Ram SUV?

Last week, Automotive News shared the news that a large SUV based on the Ram 1500 line is a possibility. That model, if built, would compete against the Chevrolet Suburban and Ford Expedition, SUVs derived from each manufacturer’s pickup truck line.

Fiat Chrysler President and CEO Sergio Marchionne sees a segment ripe for the participation and believes that his company has “…a reasonable chance of getting at least part of that market.”

He also believes fuel prices will remain low for the foreseeable future, although it would take several years to ready such a model for the market. Anything can happen in the interim.

Readying a New Ram 1500

The current generation Ram 1500 arrived on the market in 2010 and received an update in 2013. It will receive yet another refresh before the next generation model arrives in 2019. The delay comes as Fiat Chrysler pours money into resurrecting Alfa Romeo. It will also permit time for an expected aluminum-bodied truck to make its debut.

Likely, the big Ram SUV would follow the new pickup trucks by a year, a customary delay that Ford and Chevrolet usually follow with their own models. That means the new model is still four years away and a lot can happen between now and then.

Making Money With Big SUVs

Larger vehicles, including SUVs have some of the highest profit lines in the business. The last time Chrysler fielded such a model was in the two-door Dodge Ramcharger, a full-size SUV built from 1974 to 1994. The Ramcharger was based on Dodge’s earlier D Series line. But, when the all-new Dodge Ram rolled out, it was retired.

Also, instead of continuing with the Ramcharger, Chrysler concentrated on building the Jeep Grand Cherokee and the Dodge Durango, two distinctly different midsize SUVs. Continuing with the Ramcharger would have also adversely affected the manufacturer’s corporate average fuel economy (CAFE) ratings — the company has long been top heavy with less fuel efficient models.

A Three-Row Jeep Grand Wagoneer

Bringing a new SUV to the Ram line would come just as the automaker readies another product, the three-row Jeep Grand Wagoneer. Unlike a potential body-on-frame Ram SUV, the Grand Wagoneer will be of unibody construction. FCA intends to have it compete with the likes of Land Rover, by taking a more upscale approach to the market.

Likely, FCA is looking at other products to expand the Ram line. Beyond a large or midsize SUV, the lower end of the market might also yield a product. However, fuel prices, FCA profitability and market factors can impact these plans, pushing some products back while perhaps bringing a few others to the forefront.

Ford Sale Unusual For Good Economic Times

October 30, 2015 by admin 1 Comment

Year-end new car sales will soon be underway. Ford may have found a better idea as its discounting starts early and goes deep.

The Ford brand is about to launch a major sale, one that begins on Nov. 2 and extends through Jan. 4, 2016, the last date counted for 2015 calendar year sales. Holding sales is nothing new, especially at this time of the year. What is unusual is that Ford will be setting prices at levels not seen since the last recession.

2015 Ford Edge.

Friends & Neighbors Pricing Event

Automotive News acquired a copy of a 20-page guide Ford recently distributed to its dealers. The guide, marked confidential, details a “Friends & Neighbors Pricing Event,” which will allow dealers to sell cars at prices within $200 of dealer invoice. The no-haggle pricing initiative should deliver extra savings to customers, especially for people who typically aren’t especially thorough with their research. Further, the discounting can be combined with other incentives — customers should be able to save at least 10 percent off the sticker price of any new vehicle.

Ford’s year-end sale comes as the automaker battles to retain market share. Over the past year, Ford has gradually recovered sales lost as the company transitioned from a steel-bodied F-150 pickup truck to an aluminum-bodied one. The brand has also suffered losses in key segments as competition heats up. For example, sales for the Fusion midsize sedan and the compact Focus are down this year.

Through September, Ford sales are up 4.5 percent (4.6 percent with Lincoln) year to date or slightly below the 5 percent rise for the entire market. Among the largest manufacturers, Fiat Chrysler and Nissan are performing above the market’s pace, while GM, Toyota and Honda follow Ford in coming in below the market average.

Ford Fiesta ST

Hot hatch: Ford Fiesta ST.

How Will Competitors Respond?

The good news for consumers is that additional savings can be had when shopping for a Ford vehicle. Even better will be the responses other manufacturers are certain to provide, by offering incentives of their own. Consumers may find that they have additional leverage, especially if competitors are forced to match Ford’s discounting to close a sale.

One Ford incentive that will go away are interest-free new car loans. Although such loans have been used by dealers to entice customers, they won’t be offered for the duration of the pricing event. This means consumers should carefully shop for a loan with their bank or credit union and have that financing arranged before negotiating the price of a new car.

Ford Mustang

America’s Pony Car: Ford Mustang.

Know the Value of Your Used Car

Shoppers may also find that their trade-ins may not fetch the amount they want — visiting sites such as NADAGuides.com, Edmunds.com, and Kelley Blue Book will tell you what your car is worth along with both the private party and dealer values. Nevertheless, you can often get more for your used car by selling it separately or at least keeping it separate from your new car deal.

Ford shoppers may also find that used vehicles, including those labeled certified pre-owned (CPO) may offer improved discounts too, especially if those vehicles languish on dealer lots and as new car inventories shrink. Typically, CPO incentives are set by the manufacturer and involve a discount, low-rate financing, sometimes both. Regardless of the incentives offered, consumers should negotiate the best deal possible.

Record Ford Motor Company Profits

As with any major sale, manufacturers risk putting to the side profits at the expense of increasing market share. However, the Ford Motor Company reported a record third-quarter pre-tax profit as its income rose by 129 percent, just the sort of good news it needs as it rolls out one of its biggest sales events in seven years.

Ford F-150

The aluminum-bodied Ford F-150.

Recent News

Honda Brings Clarity to its Fuel Cell Plans

Crumbling Chevrolet Sonic Sales Leads to Layoffs

Should I Repair or Replace My Car?

Photos copyright Auto Trends Magazine.

Two More Years of Strong Auto Sales?

October 15, 2015 by admin 1 Comment

Auto sales continue to rise globally with the US market experiencing strong gains. The year-over-year streak may continue until 2018 when economic headwinds contribute to the first decline since 2009.

US auto sales are the strongest we have seen since before the last recession with domestic manufacturing plants operating at full capacity. Sales in September increased by more than 16 percent, translating to a selling rate topping 18 million units annually.

Ever since reaching bottom in 2009, the domestic market has been on a rebound. Indeed, Fiat Chrysler is currently enjoying a 68-month streak of year-over-year sales increases, Subaru is gaining market share at the expense of its rivals, and Audi continues to claim a larger slice of the luxury market and has a 57-month sales streak of its own.

IHS Automotive: Auto Sales Pull Back

The good news may continue for a while, but a pull back is coming. That’s the opinion of market research company IHS Automotive, whose forecast sees auto sales inching up over the next two calendar years before beginning to pull back over rising interest rates and other market factors.

US auto sales forecast On Tuesday, IHS Automotive released a report, “Global Economic and Automotive Outlook,” offering a fall update of the global automotive market, including the status of the US automotive market. Presented by Charles Chesbrough, Senior Principal Economist — IHS Automotive, the report (opens to a .pdf) concluded that consumer buying desire remains high, while the strong labor market improves their ability to purchase a new car.

Annual Forecast Adjustment

The favorable conditions currently at play also include stronger consumer confidence, consistent job creation, slight increases in wages, low gas prices, and the widespread availability of high tech products. Further, manufacturers are benefitting from a lower cost of materials and have been responding with numerous new products and updates. Credit availability is excellent and low loan interest rates are making purchasing a new car possible for a larger group of consumers.

The continued upswing of the auto industry has prompted IHS Automotive to adjust its earlier forecast. The research firm now sees US auto sales finishing at 17.3 million units this year, up from 16.5 million in 2014. Further, IHS estimates that the market will support 17.8 million units in 2016 and peak at 18.2 million units in 2017 before pulling back in 2018.

The Coming Blow Back

Headwinds are on the way and that translates into an industry downturn beginning in 2018. By then, tighter credit will begin to restrict consumer access to the market with auto sales drifting downward to 17 million units sold annually by 2022 reports Automotive News. Notably, the anticipated decline does not factor in the typical sales plunge that usually follows peak auto sales, with Chesbrough leaning toward a more modest pull back.

Chesbrough also noted the industry is in a much better position these days with production capacity and demand ideally aligned. In addition, improved labor contracts along with incentive discipline are benefitting the industry. In times past the industry used various schemes to spike traffic, only to see sales fall and profits with it once the programs were ended.

China Sets the Pace

The IHS study examined global markets with China remaining by far the largest market for new cars. Indeed, China overtook the US as the top market for new cars in the last recession, reaching 23.5 million units sold in 2014.

China’s annual auto sales should reach 30 million units by 2020 with 32.2 million sales forecast by 2022. China alone will account for nearly half of the world’s incremental growth through 2020.

India is another market in the midst of a healthy growth cycle, while Brazil and Russia continue to experience losses, a trend that won’t end before 2017. Japan and the Eurozone are enjoying a modest uptick in gross domestic product (GDP), but at a pace slower than the current 2.6 percent global average.

See Also — Flagging Fiat Sales: No Easy Answers

Lower Fuel Prices Will Have No Effect on Big Three Innovation

December 9, 2014 by admin 1 Comment

GM, Ford and Chrysler Embrace Fuel Saving Innovation.

Fuel prices are continuing to fall, dropping below $2.50 per gallon for regular grade gasoline in some areas. That’s just the kind of move that has some shoppers looking at larger and less efficient vehicles, perhaps advancing certain auto trends not yet foreseen. The drop in fuel prices, expected to last for several years, won’t stop car manufacturers from innovating, however. Instead, there are a number of changes underfoot that will continue even if gas prices continue to trend downward.

Updated Engines for Chrysler

Ram 1500 innovation.

This small diesel powers select Ram 1500 models.

Of all the major manufacturers, the Chrysler Group has the heaviest exposure to larger vehicles. That’s good for profits, but it is bad in helping the company reach mandated corporate average fuel economy (CAFE) ratings. The problem becomes magnified in each succeeding year up to 2025, when manufacturers must find a way to produce and sell passenger vehicles averaging 54.5 miles per gallon.

Chrysler needs to move away from V-8 engines or at least offer powerful, smaller engines that can step in as well. At present it has a pair of V-6 engines that are likely to play a much larger role in helping Chrysler reach its goals. Specifically, Pentastar family engines displacing at 3.2 and 3.6 liters will receive important innovations.

Those upgrades will bring in a host of technologies such as turbocharging and direct injection notes AllPar.com. Ford makes use of these technologies in its EcoBoost engines, enabling it to provide smaller and more efficient engines with no loss in overall power. Currently, both Pentastar engines are naturally aspirated; making new technologies available will mean supplementing its current V-8 line of HEMI engines. Eventually, those larger engines might be dropped as the CAFE mandates are raised.

Continuously Variable Transmission for Ford

CVT innovation.

Toyota pairs its 1.8-liter engine with a CVT.

Just as Toyota added a continuously variable transmission (CVT) to the Corolla line beginning in 2014 and has enjoyed a nice boost in fuel economy, Ford may do likewise with some of its own models reports Automotive News. Much attention has been directed Ford’s way with the upcoming release of 9- and 10-speed transmissions. Those transmissions, however, will be paired with its larger engines.

A CVT could find its way in such cars as the Ford Focus and Fiesta. Certain versions of those models already get at least 40 mpg on the highway and a CVT could advance those numbers. CVT technology has been used by Nissan for more than 20 years, but other automakers have had mixed results, in part because of consumer hesitancy.

For instance, CVTs don’t use gear points as do standard automatic transmissions and cause a rubber band effect when pressing on the accelerator that returns a pulling sensation. Engines tend to sound louder and the resultant transmission lag annoys some people. Toyota has found a way to limit that sensation and that could be something Ford has figured out too.

GM Does Diesels

As gas prices fall, diesel prices drop too. Still, diesel fuel now carries a mark up of about 20 percent even as such engines are 30 to 35 percent more fuel efficient than comparable gas engines.

Chevrolet Cruze innovation

GM continues to use diesels in smaller vehicles including Cruze.

GM has long been committed to diesels with its heavy-duty pickup trucks. It also offers a diesel variant for the Chevrolet Cruze. Come 2015 and you will see an expanded diesel application in its midsize pickup trucks — Chevrolet Colorado and GMC Canyon. But it may not stop there.

Indeed, ever since the Ram 1500 received a 3.0-liter six cylinder diesel option, competing automakers have been studying doing likewise. GM, along with its Isuzu partner, jointly manage DMAX — a company that produces the 6.6-liter turbo diesel V-8 engine found in heavy-duty Chevrolet and GMC pickup trucks. A 2.8-liter turbo diesel four will power the midsize trucks; a 2.5-liter turbo diesel four is available in other markets, such as in Thailand.

What GM needs is a V-6 diesel motor and it once has access to one when it shared ownership of VM Motori with Fiat. In Oct. 2013, Fiat acquired GM’s 50 percent share in the company, effectively shutting GM out of the market. Still, GM likely has a V-6 turbo diesel on its drawing board, perhaps based on the smaller fours and measuring about 3.8 liters. Expect GM to green light production if diesel demand increases, but perhaps not until fuel prices are raised across the board again.

Big Three Innovation

Although engines and transmissions will play a significant role in improving fuel economy, further innovations will come through vehicle lightweighting. We’re seeing some of that right now in the aluminum-bodied 2015 Ford F-150. Ford’s competitors — domestic and foreign — are responding by choosing high-strength, but lighter weight steel, carbon fiber and are pursuing other fuel saving initiatives. These efforts will continue even as uel prices are sinking, what is likely to prove a temporary pull back as automakers prepare for much higher CAFE standards.

No Fooling: Mitsubishi Lancer Evo is Toast

April 1, 2014 by admin Leave a Comment

Mitsubishi Lancer Evo: another one bites the dust.

Yesterday, Automotive News reported that the Mitsubishi Lancer Evolution (Evo) will be discontinued following the end of its product cycle this year, effectively removing the slim chance that this Japanese automaker had in making a go of it in the United States. It probably is just as well too: Auto Trends placed Mitsubishi on its death watch list some time ago, the latest in a string of smaller Japanese manufacturers that have departed or will soon leave the ultra-competitive US market.

Like Suzuki, Mitsubishi will survive globally, relying on growing Asian sales to bolster its business. But, killing off its most desired model (at least for American buyers) speaks volumes about its commitment stateside.

Mitsubishi Lancer Evo

What sets the Evo apart from the every day Lancer is, well, nearly everything. Its $34,995 starting price is double that of the standard Lancer, representing a performance model that competes with the Subaru WRX STI. The Evo is outfitted with all-wheel drive, active yaw control, and has an active center differential, a combination that provides superior steering and handling for this front-wheel drive compact sedan.

Under the hood is a 291-horsepower turbocharged four cylinder engine paired with a dual-clutch sport shift transmission. Recaro bucket seats up front and special exterior touches all around demonstrate that this is no ordinary Lancer. Well, say good-bye to the extraordinary!

Philippines Manufacturing Plant

The Evo news came on the very same day that Mitsubishi announced that it had purchased Fords mothballed plant in Laguna, the Philippines, what will replace an aging factory in Rizal reports Reuters. Production is set to begin in Jan. with 50,000 annually and capacity to push to 100,000 units.

Mitsubishi is second behind only Toyota in Filipino sales volume, one of several markets fueling its estimated 1.11 million annual global sales. Mitsubishi believes that its sales will rise by 29 percent over the next three years as a fleet of new truck- and car-based utility vehicles, and vans hit the market. The automaker has also tapped the Renault-Nissan alliance for joint projects to yield several other new models.

An early Mitsubishi-supplied Plymouth Champ.

Thin US Sales and Profits

In the US, sales continue to tumble with Mitsubishi selling fewer than 50,000 units in 2013. For the first two months of the year, sales are up 1.2 percent in a flat market. Still, the product mix relies heavily on small vehicles and the thinner profit lines that come with it.

Mitsubishi Motors North America was launched in 1981, but its cars were sold stateside for a number of years by the Chrysler Corporation. Indeed, Chrysler began importing its first Mitsubishi model for 1971, under the Dodge Colt moniker. A Plymouth Champ model later joined the line up, replaced a decade later by the Plymouth Colt.

Other earlier Mitsubishi-turned-Chrysler products have included the Dodge Challenger and Plymouth Sapporo, and the Dodge D50 compact pickup truck. That Challenger model had nothing to do with the original nameplate, considered an interloper by performance Dodge Challenger devotees. The Mitsubishi Lancer Evo itself arrived in 1992, with no Chrysler counterpart offered.

Mitsubishi and DaimlerChrysler

Chrysler continued to sell Mitsubishi products into the 1990s. By 2000, the new DaimlerChrysler entity formed an alliance with Mitsubishi that ended in 2005, following a defect scandal that soured the relationship. That move presaged the Daimler-Chrysler divorce a few years later.

Mitsubishi hasn’t announced (yet) that it is pulling out of the US market. Whether it does so this year or next really does not matter. Car shoppers always vote with their wallets and are choosing competing models from Honda, Volkswagen, Kia, Ford, Toyota, Hyundai, Chevrolet, Nissan, and others instead. Small-time Mitsubishi simply cannot survive in the worlds toughest consumer market, something Suzuki, Isuzu and Daihatsu had figured out as well.

Plymouth Champ photo courtesy of dave_7 by way of Wikipedia.