Giving you some of the best deals around
Honda is normally not a big spender when it comes to incentive programs. That changed when it started its “The Really Big Thing Sales Event,” which will run until May 3rd. The deals are quite good: no money down and no security deposit required on all Honda car and truck leases. Certain vehicles will also have either 0.9 or 1.9 percent APR financing options.
Honda’s goal is to provide consumers “a favorable money factor” while making a profitable cost reduction payout. Spokesman Jon Fizsimmons stated that the automaker already has high residual values, so they are not financing the residual values of their cars.
The company is spending an estimated $204 million on the incentive program. This is lower than their Japanese competitor, Toyota, who is spending about $395 million in April. Both companies’ programs cost significantly less than American companies Ford and GM.
While it seems like Honda is recklessly spending when compared to their record, the cost is actually less than it seems. The lowering cost of money and a used car market that is better than previous years make the actual money spent up from significantly lower for the company. The program could have ill effects though, as reducing the price of a new Honda below the level of a used Honda could drive their current value down.
Technorati Tags: Honda, Honda incentive sale, Honda incentives, Honda sales
One of the meanest looking sedans around
The previous iterations of the Jaguar XJ, out of production for a year now, were built for comfort over performance. With the 2010 model, it’s clear the British company is out to make a statement with its luxury sedan. Using only the floorpan of previous models, the XJ is almost entirely new from the inside and out, and the result is noteworthy.
Jaguar previously constructed the XJ using spot welding. For the 2010 model, engineers decided to use adhesives and rivets to piece the car together. In total, 2,800 self-piercing rivets and 300 feet of bonded seams join the stamped aluminum pieces together. This combination makes the body stiffer than the previous XJ. The front subframe is also bolted directly to the chassis, allowing for a more precise suspension and sportier ride. The car also takes its steering from Jaguar’s luxury sports car, the XKR, giving the XJ spirited drivability.
The XJ also receives three new versions of Jaguar’s 5.0-liter V8. The base engine has an output of 385 horsepower and has a 0-60 mph of 5.4 seconds. The regular supercharged version ups the ante to 470 hp and a 0.5 second drop in the 0-60 mph time, to 4.9 seconds. The Supersport XJ gets a supercharged engine that boasts a 510 hp output and a 0-60 mpg time of 4.7 seconds.
While Jaguar lists the XJ’s competition as cars like the Mercedes-Benz S-class and the BMW 7-series, it might be safe to say that all the sporty additions to the car place it in the class of the Maserati Quattroporte and Porsche Panamerica.
Technorati Tags: 2010 XJ, Jaguar, Jaguar XJ, XJ
Now China-owned
China recently bought the Volvo brand from Ford Motor Co. The country’s Vice-President, Xi Jinping, spent a weekend in Sweden, where he penned a deal with Ford to purchase Volvo for $1.8B. The Chinese automaker Geely Automobile now controls the long-standing Swedish brand.
Last year, China surpassed the United States as the world’s largest car market. They have a desire to move into the U.S. and European markets, but lacked both the technology and the brand notoriety to adequately penetrate these already competitive markets. With the acquisition of Volvo, China can now gain considerable footing, since the Swedish brand is well established.
China also plans to integrate the Western brand into their home market as well. A spokesman for Geely said that while the company plans on maintaining Volvo’s current sales in Western markets, they plan on expanding the brand into a Chinese automotive presence. Part of the plan includes opening a Chinese Volvo factory, which would support the factories the company has in Sweden and Belgium.
The acquisition bodes well for China, whose recent attempt to buy Hummer from GM fell through. While $1.8B is far less than the $4.9B Ford paid for Volvo 11 years ago, spokesmen for Ford have stated that they are satisfied with the purchase and feel the price is fair. Both parties hope to complete the transaction by the third quarter this year.
Technorati Tags: China, China Volvo, Ford, volvo
One word to describe the auction winner: LUCKY
The first person to own the new Ferrari 458 Italia received his car at a charity gala on March 25th, 2010. Held in a luxurious mansion in Beverly Hills, CA, the event was held for the Haiti relief efforts of the Catholic Medical Mission Board and the William J. Clinton Foundation. The event held more than 500 bidders and was well attended by both industry people and celebrities: Marco Mattiacci, CEO of Ferrari North America; Piero Ferrari; Amedeo Ferrari, CEO of Ferrari; Patrick Dempsey; and John Mayer, who also performed for those in attendance, were among the people present.
Several notable Ferrari items were auctioned at the gala. Among the items was the suit that Ferrari driver Fernando Alonso won the season opener in Bahrain sold for $35,000. Also auctioned was a chance to be a part of Team Ferrari at F1 Montreal was sold for $21,000, a price that is so undervalued it should be criminal.
The 458 Italia was the last item to be auctioned. The car has an MSRP of $220,000, but bidding started above that at a quarter million dollars. To expect the price of a car with a 2 and a half year waiting period to be sold for anywhere close to the sticker price is simply ridiculous. Bidding quickly doubled to $500,000, but then stalled as bidders reached their maximum price. Egged on by TV host Joel McHale, the final price on the car crept up to $530,000 and was finally sold. While three 458 Italias were on display at the event, the winner will have to wait until June, when the first cars are shipped to receive his new Ferrari.
Technorati Tags: 458 Italia, Ferrari, Ferrari 458 Italia
Mercedes latest racecar, the SLS GT3
In commemoration of Mercedes-Benz’s victory in the 1952 Carrera Panamerica, AMG revealed its latest race car in Oaxaca, Mexico on March 22nd, 2010. Based on the SLS, the new SLS GT3 is the newest edition to Mercedes’ line of homologated vehicles for GT3 class racing.
Many details about this new Mercedes model are still a mystery. No one from the company has given a specific release date. The press release for the SLS GT3 states a fall date, though AMG’s Thomas Rappel said that it will be released before 2011 racing season begins. The final design of the vehicle remains in question as well. The model at Oaxaca had a full roll cage, new split front skirt, rear diffusers, and a large rear wing. There was also a hood extractor and widened fenders.
While the SLS GT3 will be based on the stock SLS drivetrain, Mercedes is withholding the final specifications until later this year. Some insiders believe that the SLS will get a V8 engine pushing about 600 horsepower. The SLS GT3 will be significantly lighter than the SLS, due to a stripped interior and carbon fiber body, but that does not mean the SLS won’t be quick by any means.
Technorati Tags: AMG, Mercedes, Mercedes-Benz, SLS GT#
Even subcompacts will benefit from new technology under federal ruling
With the federal government ruling that 2015 fleets of cars must meet a 35.5 mpg average, automakers will have to embrace new technology at a much higher level, making innovative or luxury options standard in most new vehicles. While some experts say that current gasoline-powered engines could be improved to achieve up to 20% better fuel economy, these modifications would not be enough to raise many cars’ mpg ratings.
Cars achieving fuel economy close to the new average could see things like turbochargers, variable valve timing, and dual-clutch transmissions become standard technologies. These items would boost the fuel efficiency of a conventional engine enough to help bolster the averages of certain fleets.
The new ruling may also fuel a dramatic increase in electric engine adoption in several lines of vehicles. This could range from many cars receiving stop-start electric engines, possibly turning hybrid vehicles into the dominate vehicle type, to fully electric cars. The biggest issue with electric technology is cost. While they greatly improve efficiency, they are also more costly than the small gains made to conventional engines.
A last area where new technology could be implemented because of the new federal ruling is car design itself. Instead of focusing strictly on style or aerodynamics, car designers must now also take into consideration the possible limitations of certain technologies. Weight will also become a more notable design element, though weight-cutting materials like carbon fiber come with increased production costs.
Technorati Tags: car prices, car technology, Federal ruling
Prepare to see prices increase in 2015
The latest federal rules issued for the 2015 automobile fleets are likely to drive the cost of cars up by at least $1,000, experts say. The newest ruling ups the average from 27.5 mpg for cars and 23.1 mpg for light trucks to a fleet average of 35.5 mpg. The ruling also requires automakers to implement new technology packages in every vehicle segment. This challenges automakers to see who is best at curbing costs while integrating higher costing technology.
The federal rules force automakers out of utilizing generic technology for all of their vehicles. Instead, each car category, or “footprint,” will receive their own unique technology set that will allow them to gain higher mileage while staying as close to their current price level as possible.
For the more inexpensive footprints, like subcompacts, the new rulings mean technologies like electric power steering, dual clutch transmissions, and variable valve timing will mostly likely become standard. For big pickup trucks, this means more diesel engine vehicles, which can keep up with the increased mpg standard while delivering the same payload and hauling capabilities.
Experts from both the automobile industry and environmental groups agree that the new rulings will increase the cost of vehicles. For lower priced cars, the increase will most likely be between $1,000-2,000. For trucks requiring diesel engines, this could mean an $8,000-9,000 increase.
Technorati Tags: 2015 cars, car prices, Federal ruling
American brands deserve better perception in their home market
For the first time in a decade, American automakers have topped J.D. Power and Associates 2010 Vehicle Dependability Study as the most dependable car in the U.S. market. The Cadillac DTS sedan won top honors, surpassing the Japanese cars that have claimed the title of most reliable car for years. Even more surprising is the fact that seven of the top ten cars in the study came from either General Motors or Ford Motor Co.
The VDS is conducted on cars that are three years old, ensuring significant miles have been logged in each car. This year, over 52,000 auto owners were asked to identify almost 200 problem areas in their vehicle. These areas don’t simply include breaks or mechanical problems; annoyances are also recorded by owners.
The 2010 VDS had an industry standard of 155 problems per 100 cars. This number is the lowest ever reported in any year of the study. The Cadillac DTS beat every other car in the field with only 76 problems per 100 vehicles. Porsche stole top honors as the most dependable auto brand, logging only 110 problems per 100 vehicles. This is a significant improvement over 2009’s study, where they were 11th. Ford’s luxury brand, Lincoln, came in second place. It was followed by Buick, Lexus, Mercury, Toyota, and Honda, in that order.
Technorati Tags: American car brands, Cadillac, Ford, GM
The Mustang loses one of its fathers
Donald Frey, a former senior production planning manager at Ford Motor Co., passed away on March 5th, 2010 in Evanston, Illinois from a stroke at the age of 87.
Frey worked with Hal Sperlich and Lee Iacocca at Ford to develop the Mustang, the iconic pony-car that helped usher in the age of the muscle car. Frey was in charge of the team in charge of developing an affordable, sporty car during the 1960’s. Because of Ford’s flop with the Edsel, Frey had trouble getting a standard budget for the project. With some savvy improvising, he used the platform and instrument panel from the already-established Ford Falcon to create the Mustang. Using these, he managed to create the program in only 18 months.
When the Ford Mustang debuted in April of 1964, sales expectations were modest. Managers only expected about 90,000 units in the first year. Much to everyone’s surprise, the car sold over 400,000 units in its first year alone, helping to make it one of the most popular cars from the 60’s.
Frey later succeeded Iacocca as the head of Ford Division in Ford Motorsports and helped maintain the company’s participation in both NASCAR and Le Mans. While still at Ford, he also helped develop the first Bronco.
In 1968, Frey left Ford and became the head of General Cable Co. He later became chairman and CEO at Bell & Howell, where he aided in engineering the first CD-ROM. He also served a primary role in getting the film industry to release films on tape, thus ushering in the home-entertainment era.
Technorati Tags: Donald Frey, Ford, Ford Mustang
Chrysler set to recover from bankruptcy
Chrysler recently announced that it will offer 50 closed dealerships reinstatement, reversing an earlier decision to not reinstate any dealerships. Approximately 400 dealerships applied for franchise reinstatement through arbitration, and Chrysler has decided to send letters of intent to 12.5% of them. As recently as mid-March, the company had showed signs of not reinstating any dealership seeking arbitration.
According to Chrysler, the dealerships selected to be reinstated were chosen because they “are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network.” Each of the dealerships will house all four brands currently owned by Chrysler.
Coinciding with the reinstatements, Chrysler also revealed that 36 other closed dealerships have been offered contracts and sales agreements in addition to the 50 offered reinstatement. An undisclosed amount of dealerships that have also shut there doors are currently in settlement talks with the company as well.
With a total of 86 dealerships either reinstated or on the track to be reinstated, about 11 percent of the 789 Chrysler dealerships closed in June of last year could be reopening their doors very soon. This number could easily rise if more of the unnumbered dealerships have settled deals with the company.
Technorati Tags: Chrysler, Chrysler dealerships, Chrysler reopening
