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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

Honda Not Giving Us Fits, but CR-Z Hybrids Instead

Since it has gotten such lousy reviews on the new Insight, Honda apparently hopes the new CR-Z Hybrid will do better, even as it uses basically the same powertrain. The difference is that this car, like the beloved CRX before it, will appeal to the sporty set. Judging by the many positive comments on the Autoweek story, a lot of them will be tempted. Sign up for email info from Honda here.

The CR-Z Hybrid will go on sale in Japan in February 2010 and should be in the U.S. by the middle of next year. Honda seems ready to commit to an across-the-board hybrid lineup, as Toyota has. Whether that will work in this country is anybody’s guess. The Insight was the top-selling car in Japan this year (until the new Prius took over the crown), and Honda has new, better, two-engine powertrains under development for its larger models.

Let us not forget, however, that Japan has government incentives to go hybrid, as well as higher gas prices. Hybrids are going to be niche vehicles here unless either or both of those conditions change.

Honda also announced that the Fit Hybrid will become available in Japan before the end of the year; there are no plans to bring it here. This news may not send thrills and chills up your spines, CR-Z fans, though the Fit will cost lots less and may well sell better. But, my God, it’s ugly.

If the CR-Z Hybrid were in the $20,000 range, as predicted, would you buy one? What would tempt you?

—jgoods

Aston Martin to Rebadge the Toyota iQ

Aston Martin's Cygnet concept, based on the Toyota iQ

Apparently, a lot of people think the Toyota iQ is a good idea.

Our original post on the minuscule Toyota questioned whether or not the car made sense for the United States, especially with gas prices well below the $4-per-gallon mark.

I remain skeptical, even though a lot of great comments made valid arguments. If one thing can change my mind, though, it’s Aston Martin.

Toyota iQ

The elite car maker is taking the tiny iQ and giving it a new super-luxo skin, complete with a new grill, headlights, trademark side vents, leather interior, and an all-new name: the Cygnet. Go ahead and laugh if you want - I did when I heard Rolls-Royce was decking out a set of MINI Coopers - but Aston Martin’s reworking of the iQ looks like it’s going to work.

At first, the Cygnet will be offered only to existing Aston Martin customers at a price of about $33,000. Only time will tell if they’ll make them available to the public. The iQ, though, should make it to the U.S. as a Scion in late 2010, as a 2011 model.

I still think the iQ and Cygnet are just too small for the United States, but this comment from reader Jerry Zabin and others like it are pretty convincing:

I just returned from Berlin and I saw the Toyota IQ up close. LOVE IT!!! If this car becomes available in the U.S., I am a definite buyer! Gas prices continue to rise and this car would fit the bill. With US carmakers in peril, it is no wonder…the day of the gas guzzler has passed! In Berlin, gas is nearly $5.25/gallon and you rarely see large cars on the road. Let’s get with it America….conservation is no longer optional, it is necessary. The Toyota IQ fits the bill!

If you’re like me, you’ll take Aston Martin’s endorsement of the iQ to heart. Maybe there’s something to this small-car thing after all.

Will a $33,000 rebadged Toyota hurt Aston Martin’s credibility?

-tgriffith

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

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

The idea being pushed by T. Boone Pickens is fairly simple to understand, ...

Are natural gas vehicles the answer?

Have you heard of the Pickens Plan yet?

Keep an eye on a YouTube near you, because it’s exploding there.

The idea being pushed by T. Boone Pickens is fairly simple to understand, and I’ll simplify it even more here: To reduce our use of foreign oil, we take our domestic natural gas production and divert it to powering our automobiles. We use wind energy to make up for the loss of natural gas on our national energy grid.

This plan wouldn’t free us from importing foreign oil, but Pickens argues it would bridge the gap until hydrogen or electric powered cars are a feasible option.

As good as this plan sounds, it seems like there’s a fundamental problem with it. It’s the same problem that’s keeping hydrogen from becoming mainstream: places to fill up. See many natural gas stations on your last road trip?

The logistics and infrastructure required to add natural gas filling stations is only slightly less intimidating than building hydrogen filling stations. At least there are already vehicles, mostly in the public transportation domain, that are running on compressed natural gas. Honda even has a CNG car in the Civic GX, but the car doesn’t deliver any better MPG numbers than a standard Civic LX.

I admire Pickens’ drive to create sustainable, domestic fuel for our cars. But this plan is only somewhat plausible in the coming years, when we need a solution that is feasible today.

And so far, nothing I see beats plain old conservation in the form of lighter, more fuel efficient gas and diesel cars while we wait for the next generation of clean auto fuel, whether that be CNG, hydrogen, electricity or something else entirely.

What do you think: Is Pickens a genius or a nut job?

-tgriffith

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