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Interest in Ford and GM Rises, Chrysler Falls

2008_ford_fusion Believe it or not, according to a new Consumer Reports survey, 81 percent of respondents looking to buy a new car are likely to consider a domestic brand.

Yeah, that news came as a surprise to me, too, considering the negative press the domestics have received over the last year.

Looks like a little patriotism goes a long way, because less than 50 percent of folks will consider an Asian or European brand.

Sounds good for the domestics so far, doesn’t it? Well, not if you’re Chrysler. While interest in Ford increased 17 percent from last year and interest in GM increased by 6 percentage points, interest in Chrysler was down 28 percent among all respondents.

While those numbers appear good at first glance for Ford and GM, the survey says only 9 percent of the people interviewed are likely to buy a new car in the next year. Ouch.

Looks like a recovery of the new-car market won’t happen anytime soon, especially for Chrysler. Let’s hope Fiat can turn those numbers around with some desirable cars!

DealFinder can help you find a great used-car deal

On the other hand, among people considering a car purchase, 61 percent are looking specifically to buy used. That seems like a smarter choice for a lot of people in times like these.

If you are one of those 61 percent, or just curious about used-car prices, check out a cool new tool called DealFinder that allows you to search for cars for sale in your area and even tells you if the price is great, fair, or too high compared with national averages. Even if you’re not looking to buy, it’s neat to see what car prices are doing in your area. You can even list a car for sale there for free.

Would you consider buying a domestic new car? If you’re looking for used, search through DealFinder and let us know what you find!

-tgriffith

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Who Should Have the Right to Repair Your Car?

right_to_repair My Lexus dealer wanted at least $1,100 to perform the 30,000-mile service on my wife’s 2004 RX 330.

I say “at least” because the service guy said the price could creep all the way up to $1,800. I nearly spit the contents of the “free” can of Coke they gave me right out my nose. I also took the keys back and tore out of the dealership.

Later that week I found a shop that checked and topped off the fluids and replaced the engine oil, oil filter, air filter, cabin air filter, and wiper blades for $130.

Sure, I didn’t get “genuine Lexus replacement parts” but I’m just fine going with Fram if it saves me a thousand dang dollars. I’m sure there are other benefits of returning to the dealer for service, but I won’t even try to justify spending a grand on them (though the Coke there is exceptionally good for some reason).

I mention this because I think auto manufacturers should make the same service technology they provide to their dealerships available to all independent shops. That way people like me could feel confident we’d get the same service for our cars when we didn’t choose to bring them back to the dealer.

Car buyers get screwed enough when buying a car from the dealer - we shouldn’t continue the pattern every time we need our cabin air filter changed.

Keeping repair costs fair is the goal of the Right to Repair Act, which is

bipartisan legislation that would require automakers to provide the same service information and tools to independent auto and maintenance shops, as well as to consumers, that the automaker dealership service centers receive.

That just makes sense, don’t you think? The more advanced our vehicles become, the easier it is for manufacturers and dealers to monopolize the service of our cars. That’s not a path I want to go down.

I’d rather support a local small business while saving money on maintaining my car than fork over thousands of dollars to a corporate dealership chain. Even if it means giving up my free can of Coke.

Assuming you’d receive the same service, would you rather take your car to an independent repair shop, a dealer, or do the maintenance yourself?

-tgriffith

Tesla Model S Video Introduction

As our regular readers already know, we’re big fans of Tesla Motors and its plan to build long-range plug-in electric cars with performance that matches or exceeds that of most sports cars. So we’re naturally very excited about Tesla’s anticipated Model S sedan, due for release as a 2011 model.

The Model S will extend Tesla’s thinking into a vehicle that can accommodate four adults at a much lower price point than that of Tesla’s currently available Roadster. You can get a better sense of the Model S through the video below, which features Chief Designer Franz von Holzhausen and Tesla Chairman, Product Architect, and CEO Elon Musk.

What do you think: Will a relatively affordable, high-performance, pure-electric sedan serve as a game-changer for the auto business, at least here in America? Do you think Tesla’s Model S will be that game-changer?

-Steve Halloran

New leader for GM, new hope for bankruptcy?

Fritz Henderson, behind the wheel at GM

It’s been a long time since I’ve sat down and been able to say these words:

The CEO of GM seems smart.

Fritz Henderson took over the job from ousted Rick Wagoner on March 29 and is already conceding that bankruptcy protection may be the best solution for restructuring GM.

HOORAY for the Fritz!

With the Obama administration announcing their willingness to stand behind GM warranties and being strict on the terms for lending GM more money, it’s a pretty solid bet that General Motors is still going to be around after the dust clears from the storm of bankruptcy.

While the car industry will be changed once GM picks itself up again, we are a society that will always buy new items. Cars and trucks are definitely on that list, and a structured reorganization in bankruptcy court should help the company become more lean and adapt to changing demands.

I’ve been in Southern California for the better part of the last two weeks, and I’ve seen more car dealers than I can remember. Everything from Mazda to Maserati, Hummer to Honda. On top of the new car dealers, I’ve seen used car lots on nearly every block. They’re like Starbucks where I live in Washington State. My point? Over-saturation.

After a GM (and Chrysler?) bankruptcy, new car dealerhips will be trimmed down, while the used car salesmen will probably be sitting pretty as more people buy used.

It’s a refreshing change to hear from a CEO of GM who is open to all options instead of being so obstinate as to ignore the facts of the company’s situation.

I believe a bankruptcy will bring great things to a new GM. What about you: Do you even care whether or not GM goes into bankruptcy?

-tgriffith

Volt Contenders

Volt production vehicle--maybe

Auto task force members came to Detroit to drive the Volt mule earlier this week. According to today’s Washington Post, they found it promising but no panacea for GM’s ills. There has been so much hoopla over the car that the whole plug-in hybrid concept, I think, may have been oversold.

Volt is going to be big, heavy, expensive and, according to a Carnegie Mellon study, simply uncompetitive at the $40,000 it’s supposed to cost. GM is betting too much on this car, putting out to pasture a really good competitive small diesel they have been developing and sidetracking other power source developments.

There are quite a few contenders out there, and more are coming. We learned this week that a Norwegian firm has revived its Think City car, an all-electric EV, for possible production and sale in the U.S. The company has years of experience in EVs and was formerly owned by Ford.

The car looks good and, apparently, drives well. The video will give you details.

2010 Honda Insight

And let’s not forget: the Insight is coming. At half the presumed cost of the Volt, you could buy two of these babies and the operating cost per mile would still be less. Insight goes on sale in April. Smaller than the Prius, it will cost less, handle better and look (we think) better.

Another development announced this week may give a future boost to the hybrid concept. MIT scientists have

created a new technique that gives lithium-ion batteries a 100 fold increase in power density. These new batteries when moved from lab to factory could allow charging at 100 times the speed and release of 100 times the power of batteries in use today.

This rapid-charge technique would benefit hybrid vehicles rather more than EVs, according to battery experts. Unless GM can get its costs down, it looks more than ever like an uphill road for the Volt.

Will the Volt drag GM down or prop it up? Let us have your thoughts.

—jgoods

The Mysterious Case of 81 Missing Cars and 3 Dealer Employees

missing-cars When a car dealer employee arrives to work after a day off and finds an empty lot, her first reaction might be serious regret for not working on a very busy sales day.

These days, though, it’s more likely the lot was cleared out by thieves than by paying customers.

Such is the case at Nebraska dealer Legacy Auto Sales, who woke up earlier this week to find 81 Fords and Toyotas missing, worth an estimated $2.5 million. Also missing were the dealer’s owner, general manager, and controller.

Hmm…doesn’t take much to put two and two together and make the connection here.

Looks like the auto freefall has translated into a lack of sales commission at this dealership, and when people start losing money, they start getting desperate. The more desperation sets in, the better the idea sounds of loading up 81 cars and trucks, hauling them out of state, and selling them at auction.

But it doesn’t take much to trace new cars, especially when they are sold under the VIN number. You’d think the owner of a dealership would know that better than anyone.

Police say that all three of the missing employees have been found and at least one of them arrested.

This case is a sad testament to the tough times we’re in and the depths people will sink to as they try to deal with it all. Oh, and if you bought a new Ford or Toyota this week in Utah, better check that VIN!

Can you believe a dealer owner would do something like this?

-tgriffith

Do you own one of the worst cars money can buy?

Though you wouldn’t know it by reading the news every day, now really is a great time to buy a new car. Buyers can find screaming deals around every corner, but I want to pass on a warning that some of those deals may be too good to be true.

U.S. News & World Report has issued its list of worst cars for the money, so if you’re determined to snag the deal of the century on a new car, don’t be fooled by these:

pontiac-g5

Guess how many G5s Pontiac sold in January nationwide: 10,000? 2,000? No, think lower. Like 767. Seems most of America already knows that the G5’s comfort, performance, and quality seriously lags behind the competition’s.

I’m a big Suzuki fan, but I still understand why the XL-7 made this list. Seriously, with a 5-year cost of ownership at $47,000, it’s hard to justify purchasing one unless you can get yourself a good half off of sticker. And good luck with that.

Turns out the only thing this Jeep commands is a 50- to 60-percent depreciation rate over 5 years. Who wants to take bets that this awkward monstrosity won’t survive past 2010?

I was disappointed to see the Titan on this list, but given that its fuel mileage doesn’t compete with other full-size trucks’ and it costs a good $5K more, the value factor just isn’t there.

When you’re competing with the likes of Infiniti, Lexus, BMW, and Cadillac, you sure as heck better bring your best. The S60 isn’t Volvo’s best… but let’s see what the 2010 version brings before making a final judgment.

We may get some hate mail for this one, but hey, we didn’t make the list, we’re just telling you about it. The Eclipse definitely has its fans, but its performance doesn’t stack up against other sports cars’.

Do you agree with this list? What do you think are the worst car values out there?

-tgriffith

Coming face to face with a car that hops

car-hopping Cars don’t do a lot of hopping where I live.

So when I was on my way to the mall the other day in my CR-V, the lowrider next to me might as well have been any other car on the road. Until the car rose up to my height, the driver nodded at me and then sunk his car right back down again.

Oh sure, I’ve seen movies with lowriders all rigged up with hydraulic systems, bouncing and gyrating to the beat of rap music.

Seeing it happen three blocks from my local mall caused a serious double-take, though, which was probably the point of the young man driving. Whatever his reasons are for customizing his car like that, it got me thinking about cars that hop and spurred a YouTube search when I got home.

Holy smokes, car hopping is pretty serious business! Videos like this are all over YouTube:

While this kind of customization is not something I’d do to a ’65 Impala, I sure respect the technology and engineering behind all those hydraulics. Seriously, how are axles and ball joints not snapping with every bounce these cars take? That’s the question I was asking myself when I found this video. Ouch!

While I’d rather customize an old Impala into a supercharged muscle car, you won’t hear any smack from me on turning one into a hydraulic masterpiece.

If you had a ’65 Impala, would you rather restore it to its original form, create a hot rod out of it, or customize it with hydraulics?

-tgriffith

Insight Hopes to Eat Prius’s Lunch; Fusion Waits in Line, Drooling

Last year Toyota sold 158,884 copies of the Prius; it hopes to sell 187,000 in 2010. Honda hopes to build 200,000 of its new Insights, half of which will be available in the U.S. beginning in April. Both companies are setting the table for a power lunch, since the cars are aiming at virtually the same market.

2010 Prius

2010 Insight

However, the Insight is cheaper (at around $20K, some 20% less than Prius), a little sportier, maybe a little better looking, with not quite as good mileage (41 mpg combined vs. the Prius’s 46). Except for its Civic Hybrid powertrain, the Insight is basically a Honda Fit with a new Prius-like body.

And everybody loves it, not least because it’s challenging Toyota’s long dominance in hybrids. But remember, Honda landed on these shores with the first hybrid, the smaller version of the Insight that a lot of people also treasured.

The iconic Prius enters its third generation with more power, better mileage, better acceleration, and a host of features, extras, and improvements over the earlier version. It’s larger and has some new styling touches. The press swarmed all over it at Detroit, reviews have been uniformly excellent, and its selling points of quality and tech leadership remain viable.

2010 Fusion Hybrid

Ford’s new competitor, the Fusion Hybrid, also wants a place at the table. This is a midsize car, not a compact, that gets 41 mpg city/36 highway). That certainly gets it within shooting distance of its rivals and brings another target into view, the Camry Hybrid. The car can do 47 mph on the electric motor only, faster than the competition, giving it better performance and economy in that range. Batteries are 20% more effective than those used in the Escape. And its price will be somewhere in the $27K—Prius’s range.

Wouldn’t it be a gas if Ford, with no bailout money, could take at least a piece of the hybrid pie next year?

Do you think Ford can build a successful hybrid? What will it take?

—jgoods

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