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Archive for the ‘Industry News’ Category

Car Shoppers Using Internet More As Market Shifts

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flickr: http://www.flickr.com/photos/rosenkrieger/2941552193/sizes/o/in/pool-35034346867@N01/Enlarge Photo


J.D. Power and Associates today released their 2008 New Autoshopper.com Study, which indicates an increasing number of shoppers turning to the internet to research vehicles as buying trends shift towards smaller, more fuel-efficient vehicles. 75 percent of buyers are using the internet in '08, versus 70 percent for 2007, they claim.

Arianne Walker, director of marketing/media research for the firm, explains that as buyers who've always preferred larger vehicles and SUVs are being forced to select smaller vehicles, they are turning to the internet to investigate a vehicle class that they are unfamiliar with. "For many," she says, "this is unknown territory."

The most popular type of Web-based information with these shoppers is consumer-generated content, most specifically vehicle ratings and reviews. Their research further showed that consumers find sites like Kelley Blue Book and Edmunds.com as the most useful for vehicle ratings and reviews, while those same consumers turned to auto manufacturer's Web sites for detailed model information and statistics. Kelley Blue Book was the most visited independent Web site, "with 44 percent of automotive Internet users visiting the site."

J.D. Power's study surveyed the self-reported shopping habits of 27,901 individuals looking for a new vehicle, and it took place from May to July 0f 2008. While these are certainly interesting - and believable - facts and figures, extrapolating a three-month study to represent a year's worth of consumer buying habits sounds like a stretch.  As new car buyers hold off on purchasing given recent economic and credit snarls, we'd be interested to see just how dramatically the numbers above have changed as a result.

So, new car shoppers out there, where do you turn for information, and who do you trust when it comes to comparisons, technical info, reviews, and statistics for your next vehicle purchase?--Colin Mathews

Cell Phone Software Reduces “Driving While Distracted”

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There is mounting pressure against using that mobile phone while driving...even if you go the safe route of handsfree, bluetooth talking. From the AP Wire, a new mobile phone technology developed by Canadian software firm Aegis Mobility was announced Monday. The software, called DriveAssist, works in concert with GPS sensors in certain mobile phones to detect whether they are moving at car speed, at which point the network will hold calls and texts until the phone becomes stationary once again.

David Teater is an employee at Aegis, and a personal tragedy led to his involvement in attempting to decrease what is known as "driving while distracted." His twelve-year-old son Joe was killed by a driver talking on a mobile phone in 2004. Teater attempted to cut back on the habit of talking while driving, but admitted he found it extremely difficult: "we've been conditioned our entire lives to answer ringing phones," he said.

Currently, California and New York ban talking (and texting, CA) without headsets, and while this would seem to be a step in the right direction to curb roadway incidents due to in-vehicle distractions, the AP story claims that it is the mental distraction of the conversation that diminishes reaction times and can lead to poor driving, not the act of punching buttons or holding a phone.

DriveAssist will operate on phones with either Windows Mobile software or Symbian software. The former can be found on "smart" phones, the latter on products from Nokia and Sony Ericsson. The cell phone's carrier would have to support Aegis functionality, and Aegis is hoping on prices of $10 to $20 per family for the service. As a bonus, insurance companies like Nationwide Mutual Insurance, which is a partner with Aegis in launching the software, will likely be offering coverage discounts of three to 10 percent.

How much do you talk while driving? Do you use a headset and/or bluetooth to keep your eyes, reflexes, and focus on the road, or are you more than adept at the one hand on the wheel, one hand cradling the phone method? If governments start embracing (or requiring) serivces like DriveAssist, would your business or your convenience be unacceptably hampered by having to stop the car to talk on the phone?--Colin Mathews

Microheat Cooked By GM Recall

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flickr: Insight Imaging: John A Ryan Photography. http://www.flickr.com/photos/insightimaging/2903942092/Enlarge Photo


Recently announcing that it would become ever-tougher on underperforming suppliers, GM has not only banished Microheat as a supplier of heated windshield washer systems for its premium vehicles, but it has allegedly withheld payments since June and wants Microheat to pay between 20 and 25 million to cover the costs of repairs to 944,000 GM vehicles recalled due to faults in Microheat's system. The August recall has led Microheat Inc. to file for bankruptcy, claims Automotive News.

In its recall notice to NHTSA, GM claimed that a short circuit on the printed circuit board could overheat the control-circuit ground wire, potentially creating a fire hazard. Dealers are correcting the problem free of charge by installing a wiring harness with an inline fuse.

Vehicles affected include the 2008 Buick Enclave, 2006-2008 Buick Lucerne, 2006-2008 Cadillac DTS, versions of the 2007-2008 Cadillac Escalade, 2007-2008 Chevrolet Avalanche, Silverado, Tahoe and Suburban, 2007-2008 GMC Acadia, Sierra, Yukon and Yukon XL, 2006-2008 Hummer H2 and 2007-2008 Saturn Outlook.

Poor planning, combined with a tough economy, can have pretty disastrous results: witness the recent early closure of GM's Moraine, Ohio SUV plant. GM is sending a clear message to its suppliers that inferior quality won't (can't, if the automaker is to survive intact in this economy) be tolerated. With rival Ford recently surpassing Toyota in certain quality measures, GM must make every effort to compete in perceived and real quality control. Hopefully, they're sending the same message to their own rank and file, who have been guilty of some pretty poor planning through the years themselves.--Colin Mathews

Tesla In Trouble?

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U.K.'s CAR reports that Tesla is rumored to be laying off 100 staffmembers due to - you guessed it - the global financial mess. Kicking it while it's down, CEO Ze'ev Drori is rumored to be leaving as well. This following Tesla's recent announcement of a proposed factory in San Jose, CA.

This marks a decided change of fortune for the all-electric startup that has garnered positive press, and recently improved both performance and range with engine and transmission updates to its fleet (0-60 in 3.9) Lotus Elise-based electric roadster. That final technical tweak was to launch Tesla's move to mass-production. There's no official word from Tesla, but surely this setback will hamper their ability to produce the kind of volume (40 per week by early 2009) they recently projected.

Tesla is brimming with talent and backed by major investors. Riding a wave of popularity and promise, individuals like PayPal founder Elon Musk are included in those providing its funding. CAR claim that Tesla has been successful in hiring "leading motor industry figures from the likes of Ford, Chrysler and Mazda."

Hopefully this will mark a temporary setback - not strike a mortal wound - to the promising maker of electric sports cars.--Colin Mathews

Mazda Hydrogen RX-8 Program Is A Go For Norway

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Oh, those Europeans. With their miserly diesels, miniscule four cylinders, and stringent air quality standards, it would seem they're a couple of decades ahead in critical efficiency/air quality measures compared to us here in the U.S. They get most of the cool, experimental technology before we do - like Mazda's first hydrogen-powered rotary vehicle outside of Japan, the RX-8 Hydrogen RE. We recently reported on this upcoming project, but at the time didn't think it would be a reality until much later.

RX-8 RE (Rotary Engine) will be introduced to Norway's roadways as a part of the Hydrogen Road of Norway project (HyNor). Mazda's participation will initially include just a single RX-8, which will be driven regularly as well as displayed at events. Beginning fiscal year '09, Mazda will add approximately 30 more RX-8 REs to the fleet that operate under commercial lease contracts. Mazda opted in to the program in 2007 by signing a "memorandum of understanding" with HyNor.

Of note, rotary engines aren't extremely efficient compared with the reciprocating mass of pistons within cylinders (2008 RX-8 fuel economy ratings: 16/22), leading us to question the use of this particular engine for a hydrogen initiative. We suppose it's more about zero emissions than it is about fuel frugality.

Ever-tighter emissions standards in Europe (which have their automakers grumbling, just like they do here, even asking for government-backed loans to help them invest in clean technology) make alternative, clean-burning technologies like hydrogen that much more pressing and prevalent.

HyNor's ultimate plan is a roadway stretching 580 kilometers (approximately 360 miles) from Oslo to Stavanger, complete with hydrogen fueling stations along the route. The project's vision is "to revolutionize transportation in Norway by encompassing buses, taxis and private cars, and varying types of transport systems, including urban, inter-city, regional and even long-distance transport."--Colin Mathews




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