July Auto Sales Strong Despite Economic Jitters

From The LA Times
The economic news remains mixed but that hasn't slowed car buyers down this month. With another weekend to go, industry analysts say sales remain comparatively strong and it is consumers who are fueling the industry. It's not the roaring market of a decade ago, but it is healthy by post-recession standards.

Market-research firm J.D. Power & Associates estimates that retail sales of new vehicles will reach about 969,200 this month. Although that's a slight dip from June, it's still an 18 percent gain from a year earlier.

"Retail sales got off to a fast start in July, and while they've slowed down a bit as the month has progressed, through the first 16 selling days, they're still up 15.1 percent, compared to July 2011," said John Humphrey, senior vice president of global automotive operations at J.D. Power.

"The positive growth has continued to build, as July is looking strong across most vehicle segments, as well as for many of the major manufacturers."

Total vehicle sales will reach almost 1.2 million this month, July, which includes what is sold to car-rental companies, commercial customers and government agencies. That equates to a seasonally adjusted annual sales pace of about 14.1 million.

Auto-information company Kelley Blue Book is forecasting new-vehicle sales to hit a 14-million seasonally adjusted annual rate this month.

"Midsize cars remain the top-selling segment in July. The redesigned Toyota Camry has been a favorite among consumers since launching earlier this year, and we expect the redesigned 2013 Nissan Altima to add further fuel to the fire this month," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.

Midsize cars, or family sedans, look as if they will account for about 19 percent of all sales, making the category the largest segment of the industry. Compact cars were second at a little more than 13 percent, Gutierrez said.

Ford To Recall 485,000 Escape SUVs To Fix Throttles

No decision on recalling Mazda Tributes — which are identical to the Escape and built by Ford

2012 Ford Escape — Recall is focused on 2001 to 2004 models

Ford is recalling nearly 485,000 Escape SUVs to fix sticking gas pedals that can cause crashes.

The worldwide recall covers Escapes from the 2001 through 2004 model years that are powered by 3-liter V-6 engines with cruise control. It comes just over a week after U.S. safety regulators began investigating the small SUVs.

The U.S. National Highway Traffic Safety Administration has received 68 complaints about the problem, including 13 crashes, nine injuries and one death. A teenage girl died when an Escape crashed in Arizona in January.

It's the third recall in just two weeks for the Escape, which was the top-selling SUV in the U.S. last month. A week ago Ford recalled 11,500 of the all-new 2013 models with 1.6-liter engines because the fuel lines can crack and leak gasoline, causing fires. A few days before that, it recalled 10,000 2013 Escapes to fix carpet padding that could interfere with braking.

On the older Escapes, which are completely different from the 2013 models, the cruise control cables can snag on the plastic cover atop the engine and cause the gas pedals to stick, Ford said. For the problem to happen, the pedals must be pushed to or near the floor, and the cruise control cables must have been bent or moved from their original position, Ford spokeswoman Marcey Zwiebel said. Cable positions can be changed when the SUVs are serviced, she noted.

"This is not a situation where the engine would accelerate or go into a wide-open state on its own," she said.

Dealers will replace the fasteners on the engine cover, raising it so there's plenty of room for the cruise control cable. Zwiebel said it will take a few weeks to distribute the parts. In the meantime, Escape owners can take their vehicles to dealers, who will disconnect the cruise control and eliminate the risk of the problem happening, Zwiebel said.

On July 17, NHTSA announced that it was investigating complaints about sticky throttles on Escapes and Mazda Tributes. Tributes are identical vehicles built by Ford for Mazda. It was unclear whether Tributes would be recalled.

NHTSA said investigators would look into whether the sticky throttles could have been caused by repairs made as part of a 2004 recall. About 590,000 Escapes and Tributes were recalled in December of 2004 to fix an accelerator cable defect, and NHTSA documents say the repairs could have damaged the cruise control cable.

The agency said late Thursday that the Escape investigation remains open until it can review Ford's recall documents.

While Ford said it moved quickly to fix the cruise control problem, Clarence Ditlow, executive director of the Center for Auto Safety, a consumer group, accused the company of knowing about the issue since 2005, but failing to take action until the government began its investigation.

Some Ford dealers had told the company that cruise control cables were damaged during 2004 recall repairs, but Ford did not know until recently that the damage could cause throttles to stick, Zwiebel said.

The Escape has been one of Ford's most popular vehicles since it went on sale in 2000. More than 2.1 million have been sold. It was the top-selling small SUV in the country in three of the four years covered by the recall.

The latest recall affects 421,000 Escapes in the U.S. The rest are in Canada, Mexico, Europe, Asia and some smaller markets.

Recalls can often be signs of quality problems in cars, especially if there are several during the first model year. Both recalls of the 2013 Escape, which just arrived in showrooms in June, occurred in the same week earlier this month.

Ford CEO Alan Mulally told reporters that the company quickly recalled the 2013 Escape to take care of customers. "I wouldn't characterize it at all as a more fundamental issue in the quality," he said.

Two recalls in one week are unusual, but more likely a coincidence than a sign of quality problems, Ditlow said. He questions a vehicle's quality if it has three recalls in a year.

Jaguar, Land Rover On A Roll With New J.D. Power Rankings

Jaguar ranked second among all nameplates in appeal

Range Rover Evoque rated "Most Appealing" in APEAL Study

• Range Rover Evoque ranked Highest Entry Premium Crossover SUV
• Jaguar second highest scoring brand in industry-wide survey
• Jaguar XJ second in the large premium car segment

Range Rover Evoque

According to J.D. Power and Associates 2012 Automotive Performance, Execution and Layout (APEAL) Study released recently, Jaguar ranks second industry wide among nameplates in vehicle appeal and the Range Rover Evoque is most appealing in the Entry Premium Crossover SUV segment. For the second year in a row, Jaguar ranks second out of 34 brands measured in the industry - with the Jaguar XJ scoring as second highest large premium car. Land Rover placed sixth (in a tie) among 34 brands, and the new Range Rover Evoque receives the award for Most Appealing Entry Premium Crossover SUV.

"The J.D. Power and Associates APEAL study simply indicates how much your customers like their vehicles’ design, performance and features, and clearly our customers are quite smitten," says Andy Goss, President of Jaguar Land Rover North America, LLC. "Jaguar Land Rover is dedicated, as a premium automotive company, to providing the customers of both our brands with quality vehicles that deliver extraordinary performance, innovative technology, and desirable styling."

Jaguar XJ

Jaguar is the second most improved nameplate. The gain is primarily driven by the Jaguar XJ with 901 points - one of only three models in the industry to score above 900. The Jaguar brand was also the most improved, and tied for 2^nd highest in the industry, in the J.D. Power and Associates 2012 Initial Quality Study (IQS).

Land Rover placed sixth overall in the industry in a tie, showing that its lineup of luxury SUVs is well regarded by its customers. Leading the Land Rover lineup is the new Range Rover Evoque, which in its first year in the survey scored higher than all other Entry Premium Crossover SUVs. According to the survey, customers of the award-receiving Range Rover Evoque most appreciate its design and fuel economy, compared to its segment. The Range Rover Evoque combines class-leading performance with dynamic and agile handling across all terrains. This is the 102^nd global award for the Range Rover Evoque.

The J.D. Power and Associates APEAL study examines how gratifying a new vehicle is to own and drive based on owner evaluations of more than 80 vehicle attributes. The study's unique approach to measuring owner satisfaction and how much a customer likes or dislikes virtually every aspect of their new vehicle provides a powerful tool to manufacturers to influence future product development.

The 2012 APEAL study is based on responses gathered between February 2012 and May 2012 from more than 74,000 purchasers and lessees of new 2012 model-year cars and trucks who were surveyed after the first 90 days of ownership.

Toyota Recaptures Global Sales Lead From GM

Toyota bounced back from safety recalls and natural disasters, selling 4.97 million vehicles globally in the first half of the year to retake its crown as the world's top automaker from General Motors Co.

The Japanese company sold about 300,000 more cars and trucks than GM did in the first half of the year, a lead large enough that it will be difficult for GM to catch Toyota in the final six months of 2012.

GM said it sold 4.67 million vehicles during the first half. Both companies released their numbers this week.

For Toyota Motor Corp., the numbers underline a powerful rebound from a period of dismal sales, and the resilience of its brand as it gains traction in new markets such as China and Southeast Asia while clawing back lost market share in the U.S.

Both companies have said in the past that they don't care about the global sales leadership and are focusing on making profits. But the crown is a matter of corporate pride for both automakers.

GM doesn't plan to drop out of the race, though. The company's sales and market share grew in China, and Chevrolet, its largest brand, has seen record growth for seven straight quarters, spokesman Jim Cain said. GM sales should rise because 70 percent of its U.S. models will be refurbished or all-new in the next two years, said Cain.

"We are in the early days of the most aggressive rollout of new products in our history, which will help us press our advantage in the U.S. and China and grow profitably around the world," he said, declining to comment on whether the company expects to pass Toyota in the second half.

Toyota's production was hit by the earthquake and tsunami in northeastern Japan last year and then by flooding in Thailand, an important production base for the automaker. Before those disasters, its sales were dented by massive U.S. safety recalls, totaling more than 14 million vehicles since the quality control problems emerged three years ago.

But the company's factories and sales recovered faster than expected, making it very hard for GM to catch Toyota between now and the end of the year, said Jeff Schuster, senior vice president of forecasting at the LMC Automotive consulting firm in Troy, Mich.

Also, GM has a bigger presence than Toyota in Europe, where auto sales have fallen dramatically, and China, where the economy is starting to slow, Schuster said.

GM was No. 1 in world auto sales last year on strong performances in the U.S. and China, its two biggest markets. The Detroit company held the global sales crown for more than seven decades before losing it to Toyota in 2008 as GM's sales tanked while it headed toward financial ruin. In 2009, GM filed for bankruptcy protection, needing a U.S. government bailout to survive.

Volkswagen AG was in third place in the global sales race. The company said earlier this month that it sold 4.45 million vehicles in the first half. It came in second after GM in global vehicle sales last year.

GM had already trailed Toyota for the first quarter of this year at 2.28 million cars and trucks across the globe, while Toyota sold 2.49 million vehicles. Toyota has forecast that it will sell 9.58 million vehicles in 2012, up 21 percent from last year. GM has not given a full-year forecast.

Chizuko Satsukawa, auto analyst for Standard & Poor's in Tokyo, said Toyota faces intense competition not only from GM and Volkswagen but from other automakers, including Hyundai of South Korea.

Toyota is counting on its next surge of expansion in Southeast Asia, following other high-growth markets such as China, India and Brazil, she said.

"Toyota's rebound is impressive," said Satsukawa. "But what's even more important than the numbers is profitability."

Satsukawa said Toyota was at a disadvantage because of a strong yen, compared with European and South Korean makers that have the perk of a weak currency that raises earnings from exported vehicles. That makes gaining sales numbers critical for Toyota, she said.

Doing well in North America was also critical because that rich market is where many automakers, including Toyota, can hope to rake in hefty profits.

After the recall fiasco, Toyota President Akio Toyoda acknowledged that the automaker needed to go back to its roots and strengthen quality rather than pursuing rapid growth at any cost. But in recent months, he has changed his tone slightly, promising growth for Toyota, although he has stressed it will do so with good products.

Ford's Q2 profits Dragged Down by Weak European Markets

From AP

Just three years after Ford revived its American business, the company must pull off an even trickier turnaround in Europe, where mounting losses weighed down its quarterly results.

Ford's second-quarter net income fell 57 percent to $1 billion, largely because of a $404 million loss in Europe. Car sales there have tumbled to 20-year lows because shoppers are worried about the region's debt crisis and economic slowdown. Ford expects to lose more than $1 billion in Europe in 2012, double its estimate from the beginning of the year.

"This is a very serious situation," Chief Financial Officer Bob Shanks said after Ford announced earnings Wednesday. "It's going to take quite a long time for Europe to work through these issues."

Europe is vital to Ford. A quarter of the company's sales and profits come from the region, its largest market after North America. Four straight quarters of losses in Europe are taking a toll.

The company is trying to stem the losses by laying off temporary workers, slowing line speeds and shortening factory shifts. It has also cut advertising and sponsorships.

But analysts say Ford will have to go much further.

Layoffs and plant closures are inevitable, they say, although the company wouldn't give details about its restructuring plans on Wednesday.

Morgan Stanley auto analyst Adam Jonas estimates Ford is using only 63 percent of its plant capacity in the region. That means the company is paying to keep facilities open even though 40 percent of their space isn't being used. Ford wouldn't confirm that number.

Of Ford's six plants in Europe, Jonas thinks there are two likely candidates for closure: The Southampton, England, plant where 1,000 employees make the Transit commercial van, and the Genk, Belgium, plant where 4,000 employees make the Mondeo sedan and other products. Three plants in Germany likely wouldn't be touched, he said. Ford also has plants in Spain and Romania.

Jonas said the European turnaround will be slow, in part because Europe has larger, more powerful unions than the U.S. that make it more difficult to close plants. Of 220 plants in Europe, only nine have closed in the last 15 years, he says. Ford's current contract in Germany, for example, requires any reductions to be voluntary through 2016.

"If Ford wants to do something they'll have to pay a lot of money and wait a long amount of time," Jonas says.

It's unclear what a restructuring would cost or how long it would take until Ford releases details. But Shanks suggested that Ford's U.S. turnaround will be the blueprint.

"We know what to do in a tough situation," he said.

In the fall of 2006, Ford took out a $26 billion loan and used it to close six U.S. factories, lay off thousands of workers and redesign vehicles that have become big moneymakers, like the Ford Fusion and Ford Explorer. It took three years from that time for the company to start reporting consecutive quarterly profits.

That restructuring has turned Ford's North American region - which accounts for 47 percent of its sales - into an earnings powerhouse. Ford posted a $2 billion profit in the region in the second quarter thanks to higher pricing and highly anticipated new vehicles like the Ford Escape. Earnings rose 5.3 percent from a year earlier.

But losses elsewhere swamped those gains. Ford earned $1 billion, or 26 cents per share, in the quarter, down 57 percent from $2.4 billion, or 59 cents, a year earlier.

Quarterly revenue fell 6 percent to $33.3 billion.

Ford's $404 million loss in Europe compared with a profit of $176 million a year ago. Sales of cars and trucks in the region fell 15 percent. Ford also lost market share as it refused to ramp up deals to lure buyers, as many German automakers have.

Europe is struggling to contain a crisis over too much debt in some countries. Fears that Spain may need a bailout from other governments, or that Greece may leave the euro, have weighed on consumer demand in many markets in Europe, and a financial implosion could deepen what is already a mild slowdown in the region.

Shanks said industrywide auto sales have been falling in Europe for the last four years, but Ford continued to make money in the region until last year, when the declines got even more dramatic. Now the company doesn't think the European market will return to normal for at least five years.

Ford's stock price has fallen 32 percent in the past year, and hit a 52-week low earlier this week.

Ford joined a string of other multinational companies — including UPS and Xerox Corp. — in cutting its profit forecast for the full year because of weakness in Europe.

The automaker still expects a "strong" overall operating profit in 2012, but it will be lower than the $8.7 billion it made in 2011. Previously Ford had expected to make about the same amount as 2011.

If Ford's operating profit falls, it will be the first time since 2008 that Ford hasn't seen a year-over-year gain in operating profit.

Other regions also were weaker. Ford lost $66 million in Asia, where it is in the midst of a multiyear plan to increase production and introduce 10 new products. Profits also fell in South America, where it is being hurt by rising tariffs and the cost of developing and marketing several new products.

DO NOT Try This With Your Own Car!

DC and Ken Block present Gymkhana FIVE: Ultimate Urban Playground; San Francisco.

Shot on the actual streets of San Francisco, California, GYM5 features a focus on fast, raw and precise driving action. Filmed over four days, director Ben Conrad and his team are back to work on their second Gymkhana production and delivered the entire city of San Francisco as Ken Block’s personal gymkhana playground.

DC Shoes also provided fellow DC athlete and longtime Ken Block friend, Travis Pastrana, to make a cameo appearance on his dirtbike, and S.F. resident Jake Phelps of Thrasher Magazine fame also makes a cameo as Block hoons S.F. in his most incredible Gymkhana yet.

www.youtube.com/watch?v=LuDN2bCIyus&feature=player_embedded

For more information check out at www.dcshoes.com/auto

Great Fun! Billboards From GM

This is part of a series of billboards that were posted all around Detroit some time back. We thought you might enjoy them. We'll post some of the others as time goes on.

Lexus Announces Pricing for 2013 ES 350 and ES 300h

• ES 350 Priced 1.7 Percent Lower Than Previous Generation’s Manufacturer’s Suggested Retail Price

• Lowest Hybrid Premium in Lexus line-up

• ES 300h Delivers EPA-Estimated Fuel Economy Ratings of 40 MPG Combined

Lexus ES 300h

Lexus has announced the Manufacturer’s Suggested Retail Prices (MSRP) for its all-new 2013 ES 350 and first ever ES 300h which will arrive at dealerships next month.

The 2013 ES 350 luxury sedan carries a base MSRP of $36,100, reflecting a decrease of 1.7 percent versus the previous generation’s MSRP. The ES 300h luxury hybrid sedan will have a MSRP of $38,850, representing a difference of $2,750 over the ES 350, the lowest hybrid premium in the Lexus line-up. The ES 350 and ES 300 hybrid will arrive at dealerships in August. The MSRP does not include a delivery, processing and handling fee of $895.

For the first time, the Lexus ES will be available with Lexus Hybrid Drive. Featuring a 2.5-liter four-cylinder Atkinson cycle engine, the ES 300h is expected to earn EPA fuel economy ratings of approximately 40 mpg city, 39 mpg highway and 40 mpg combined. The ES 300h generates 200 total system horsepower.

The ES 350 is powered by a 3.5-liter V6 engine with Dual VVT-i that delivers 268 horsepower at 6,200 rpm and 248 lb.-ft. of peak torque at 4,700. The six-speed sequential-shift automatic Electronically Controlled Transmission with intelligence (ECT-i) provides enhanced driving performance, fuel efficiency and smooth shifts. Low friction materials further improve efficiency and help with the ES 350’s EPA-fuel economy estimates of 21 mpg city, 31 mpg highway and 24 mpg combined.

Both the ES 350 and ES 300h feature a Drive Mode selector. Normal mode provides a blend of performance and efficiency that is suited to everyday driving, while Eco mode favors fuel economy. Sport mode increases powertrain and steering responsiveness. The ES 300h adds an EV mode which allows short distance drives, at reduced speed, using only the power from the hybrid battery pack.

A stiffer chassis is achieved through lightweight, high tensile strength steel, added bracing and more body welds. Revised suspension geometry, shock absorber dampening and a quicker steering gear ratio deliver more precise handling while enhancing ride comfort.

The ES features a class-leading 10 airbags as standard equipment. The optional Blind Spot Monitor with Rear Cross Traffic Alert (RCTA) helps detect vehicles in side blind spots. The RCTA alerts the driver to rear cross traffic when backing out of a parking spot. Available Lane Departure Alert (LDA) is integrated with automatic high beam dimming technology. The available Pre-Collision System (PCS) uses sub-millimeter wave radar, designed to detect certain obstructions traveling ahead and prepare the vehicle for a potential collision.

Lexus Safety Connect®, including Enhanced Roadside Assistance, an Emergency Assistance Button (SOS), Stolen Vehicle Location services, and Automatic Collision Notification, is offered on all new Lexus vehicles with a one-year trial subscription.

The standard Lexus Premium Sound System features eight-speakers with Automatic Sound Levelizer (ASL), in-dash CD player, USB/iPod® connectivity, and an integrated SiriusXM Satellite Radio receiver with a 90-day trial subscription. The available Display Audio package adds a seven-inch screen, HD Radio™ with iTunes® tagging, Bluetooth® audio, automatic phone book transfer, a vehicle information display and a rear backup camera.

An available 15-speaker 835 watt Mark Levinson® audio system features an eight-inch display screen, DVD audio/video. Exclusive GreenEdge technology from Mark Levinson doubles the output of the amplifier, while reducing energy consumption by fifty percent.

The optional HDD Navigation System includes voice command, an integrated backup camera, an eight-inch screen, and the next generation Lexus Enform® system with App Suite. Lexus Enform provides seamless connectivity with Bing™ search, iHeartRadio, MovieTickets.com, OpenTable®, Pandora®, Yelp® and Facebook Places through compatible smart phones. Apps are updated through over-the-air downloads, so new apps and content can be added as they become available. (A one-year subscription to Lexus Enform with App Suite is included.)

New Small Block V8 for GM?

GM has confirmed that a fifth-generation, direct-injected small block V-8 in multiple displacements will be among its 2014 offerings. However, details such as specific displacement numbers, output, and fuel economy, have not been officially released. 

 
But Buffalo Business First the local business newspaper in the Buffalo, New York area, recently ran a piece on GM's investment in its Tonawanda, NY facility to add a third engine line to make a new V-8 engine. That Tonawanda would be one of the locations where the new engine would be produced was actually announced more than two years ago. The paper has published what is believed to be a photo of the fifth-generation small block, with plant manager Steve Finch standing next to the new engine.

Similarities to the current fourth-generation small block are obvious, including oval-shaped valve covers, and valve cover–mounted ignition coils. There are also prominent "lumps" on the valve covers, which it is speculated may house the new direct injectors.

BMW i8 named 2012 Concept Vehicle of the Year

BMW took the 2012 Concept Car of the Year Award with its i8 Concept Spyder, marking BMW’s fourth competition as a category finalist and the brand’s second visit to the awards podium at the eleventh annual North American Concept Vehicle of the Year Awards. 

The Concept Car category recognizes those vehicles where passenger carrying is the primary intent. 

The awards recognize those vehicles most likely to shape the future of the automobile industry. This year, more than two dozen jurors participated in a selection process that involved a total of 34 vehicles, each introduced to North America during this season’s auto shows in Los Angeles, Detroit, Chicago, Toronto, and New York.

The awards are given to the best Production Preview Vehicle, Concept Car, Concept Truck, and Most Significant Concept Vehicle of each auto show season. To be eligible for the awards, a concept vehicle must make its North American debut during the current model year’s auto show season. With the exception of those vehicles in the Production Preview category, qualified nominees must represent an advanced design and /or engineering concept, rather than being a show version of a current production model.

These awards are unique in that they are judged by a diverse panel of automotive journalists from throughout North America, and considered in the specific context of the North American market. 

“With lines that remind me of icy water in a mountain stream, the BMW i8 takes open top driving into a new realm of environmental responsibility, with the mission of the ultimate driving machine firmly embedded,” said Oregon-based juror Bill Schaffer. 

Juror Chris Poole added, “The i8 concept wraps innovative construction and powertrain technologies in a functional, eye-catching new design language that will be exclusive to the upcoming eco sub-brand it previews. It's an impressive blend of supercar style and speed with future-oriented mpg and emissions performance."

By extending the review to the whole package – design, style, materials, technology, market viability and market responsiveness – and concentrating the focus on the market that the jurors know best, the North American Concept Vehicle of the Year Awards provide truly valuable feedback to help shape the future of the automotive industry.

Flash Drive — 2012 Range Rover Sport

By Lary Coppola

Model Tested: 2012 Range Rover Sport

Engine: 5.0-Liter, 375 Horsepower, Aluminum Alloy V8

Transmission: 6-Speed, electronically controlled, with CommandShift® with Normal, Sport, and Manual shift modes. Permanent 4-Wheel Drive, 4-Wheel Electronic Traction Control (4ETC), 2-Speed electronic transfer box with electronic center differential

EPA Ratings: 13/City and 18/Highway; 15/Combined

Base Price: $60,045

As Tested: $67,695

Performance:
Outstanding at every level.
Excellent acceleration
Great handling — especially for a body-on-frame SUV
Terrific braking

Comfort:
Extremely comfortable seating
Power adjustable driver and passenger seats with memory
Dual zone climate controls
Power rear liftgate
GPS Off-Road enhanced hard drive Navigation system with driver information system and 7-inch full color touch screen
380-watt 11-speaker, Harmon Karden audio system with CD/DVD player, iPod connectivity, USB port and Bluetooth

Utility:
The Range Rover offers the ability to traverse any kind of terrain in comfort. Cargo space is more than adequate, and easy to access.

WOW Factors:
There is absolutely nowhere the Range Rover can't go. I was invited to attend the Land Rover Driving School in West Virginia several years ago and we actually drove up a flowing stream with water halfway up the doors, down a muddy hillside at about a 40 degree angle, as well as went other places you would need to file an Environmental Impact Statement to go in this state. The Range Rover handled them all with ease and finesse.

Whines:
The armrests on the captain chairs are a little clunky, and tend to stay in odd spots when you move them.

Bottom Line: The very best off-road vehicle on the planet — bar none. The Range Rover Sport will take you anywhere in total comfort and absolute luxury. It just doesn't get any better than this.

Flash Drive — 2013 Acura ILX

By Lary Coppola

Model Tested: ILX Tech

Engine: 2.0-Liter SOHC I-VTECH 4 Cylinder

 

Transmission: 5-Speed Automatic with sequential sport-shift

EPA Ratings: 24/City, 35/Highway – 28/Combined

Base Price: $31,400

As Tested: $32,295

Performance:

Decent acceleration for a 4-banger

Excellent handling

Drive By Wire Throttle

Competent braking

Nice road feel

Comfort:

Comfortable seating in front

Good leg and head room

8-Way driver’s seat

Heated front seats

Utility:

Decent sized trunk with pass-through

Flat rear floor

Auto dimming rear-view mirror

WOW Factors:

User-friendly tech package including Navi, Satellite Radio and USB audio interface

Steering wheel-mounted controls for phone and audio — unusual in this market segment

Xenon HID headlights

Whines:

With the driver’s seat extended as high as possible (a personal seating position preference), I had trouble getting in without either hitting my head on the roof or bending my neck awkwardly. Shorter people or those who don’t care about siting up high, probably won’t have this issue.

Bottom Line: This is a great new entry from Acura. Yes, it’s basically a highly tricked out Honda Civic, but it performs and handles very well, and comes with all the high-tech goodies we’ve come to expect in this market segment. Drives and handles as good as anything in this segment and better than some. Not bad — not bad at all.   

GM Offering Money-Back Guarantees on New Chevys

Chevrolet is trying to pull more customers into its dealerships this summer by offering a money-back guarantee on new cars and trucks.

The General Motors has stated that buyers can get refunds if they return their 2012 or 2013 vehicles for any reason. The guarantee lasts for up to 60 days from the date of purchase, and the offer ends Sept. 4.

Chevy Marketing Chief Chris Perry says research shows that customers like it when companies show confidence in their cars and trucks.

Customers will get the same discounted price as GM offers to employees of parts supply companies, plus any other discounts such as rebates or low-interest financing. If customers aren't satisfied with the vehicle, GM will refund the purchase price.

Returned vehicles can't have more than 4,000 miles on them and they can't be damaged.

It's not the first time an automaker has offered a money-back guarantee. GM made a similar offer in September of 2009 to boost sales as it exited bankruptcy protection. Also, when unemployment was sky-high in 2009, Hyundai Motor Corp. let customers return vehicles within the first year of ownership if they lost their jobs.

Also Tuesday, Chrysler Group LLC announced that it will bring back an offer of no payments for 90 days to help clear 2012 models from its dealer lots. The offer, which runs through August, includes the Chrysler, Jeep, Dodge, Ram and Fiat brands financed through Ally Financial. The company made the same offer to boost sales in late May.

Chevrolet could use a sales boost from the money-back guarantee. During the first half of the year, its sales grew 6.3 percent to almost 962,000 cars and trucks. But the brand is growing at less than half the rate of overall U.S. auto sales. The total U.S. auto market grew almost 15 percent from January through June.

Chevy is by far GM's most important brand. In the U.S., it accounts for more than 73 percent of the company's sales, according to Autodata Corp.

GM sales overall grew only 4.3 percent in the U.S. during the first half, pulled down by sagging sales of the Cadillac and Buick brands.

Globally, Chevy sold a record 4.76 million cars and trucks last year, and the brand had its best first quarter ever with 1.18 million sales worldwide. GM will release first-half global sales figures on Aug. 2.

Chevy also is offering no-haggle prices to clear out its 2012 models. Chevy is trying to clear out older versions of its two top-selling products, the Malibu midsize car and the Silverado pickup truck. New Malibu models are hitting showrooms en masse later this month, and new Silverados arrive next spring.

Isuzu recalls Rodeo Sport, Amigo SUVs

More than 11,000 Isuzu SUVs are being recalled because parts in the rear suspension can rust and break away from the frame.

From the Associated Press

More than 11,000 Isuzu SUVs are being recalled because parts in the rear suspension can rust and break away from the frame.

The recall affects Amigo SUVs from the 1998 to 2001 model years and Rodeo Sport SUVs sold as 2001 and 2002 models, the National Highway Traffic Safety Administration said in documents posted on its website.

Isuzu said the rear suspension link brackets can rust and become detached from the frame. The problem can hurt the vehicle's handling and cause a crash, but it was unclear if there have been any wrecks or injuries. Isuzu officials were not immediately available for comment.

The recall covers SUVs sold or registered in 21 states and Washington, D.C. Those are places where salt is used to clear the roads. Salt can cause metal to rust. Affected states include Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, West Virginia, Ohio, Indiana, Michigan, Illinois, Wisconsin, Minnesota, Iowa, Missouri and Kentucky.

Isuzu dealers will inspect the suspensions and treat them with a rust-resistant compound or install a reinforcing bracket free of charge. In rare cases when the rust is so severe that the reinforcement bracket won't work, Isuzu will buy the vehicles back based on the Kelley Blue Book private party sale price, the company said in a letter to NHTSA.

Isuzu will notify owners by mail and start the recall later this month. NHTSA acknowledged the recall in a letter to Isuzu on Friday.

Isuzu Motors Ltd., famous for developing one of the first mid-sized sport utility vehicles and an ad campaign that featured a salesman telling lies, stopped selling new pickup trucks and SUVs in North America in 2009 due to financial problems. The company remains in the U.S. with commercial vehicles, and it said at the time that it will back its products and dealers for years to come, honoring all product warranties.

Flash Drive — 2012 Toyota Prius V

By Bruce Caldwell

Model Tested: Toyota Prius V 5-Door Wagon

Engine: 1.8-liter 98 horsepower gas engine and 36-horsepower battery-powered electric motor, total system horsepower 134

Transmission: CVT automatic, front wheel drive

EPA Ratings: 44-mpg city/40-mpg highway

Base Price: $27,165

As Tested: $28,489

Performance:
Incredible fuel economy
Four driving modes including Power
Seamless transition between modes
Competent handling

Comfort:
Comfy, supportive seats; driver lumbar adjustment
Stretch-out front legroom
Sliding, reclining second row seats
Big door openings
Totally flat floor

Utility:
Fold-flat front passenger seat for long cargo
Flat floor
Back seats fold almost flat
Big hatch opening
Extra storage under floor
Ample interior storage bins

Wow Factors:
Averaged 48.3 mpg in mixed driving
High-tech, multi-system info/entertainment system compatibility/connectivity
8-year/100,000 mile warranty on hybrid-related components
Backup camera
Near cavernous cargo capacity

Whines:
Odd, central speedometer
Unusual shifter takes getting used to
Boxy styling
Leisurely acceleration

Bottom Line: Extreme efficiency precisely describes the 2012 Toyota Prius V. The spacious, affordable, ultra-economical Prius V is a master of transporting people and cargo in an ecologically friendly manner.

Flash Drive —2012 Ford Focus

By Bruce Caldwell

Model Tested: Ford Focus Titanium 4-Door Sedan

Engine: 2.0-liter DOHC I4, 160 hp, 146 lb/ft

Transmission: 6-speed automatic, front wheel drive

EPA Ratings: 27-mpg city/37-mpg highway

Base Price: $22,270

As Tested: $25,480

Performance: 

Excellent ride and handling

Peppy acceleration

Fun to drive

Impressive fuel economy

Comfort: 

Excellent front seat legroom

Ample interior storage

Tight backseat for tall passengers

Great contoured steering wheel with tilt/telescopic

Comfy, supportive seats

Excellent sound system

Utility: 

Big trunk

Flat floor

Ample power points, device inputs

Wow Factors: 

Loaded with high-tech features (MyFord Touch)

6-speed automatic

Sharp, crisp styling

Rear parking aid sensor

Rain sensitive wipers

Whines: 

Tight backseat

Large trunk speaker uses valuable cargo space

Folding rear seats don’t fold completely flat

Bottom Line: The redesigned 2012 Ford Focus represents a substantial upgrade from the previous excellent platform. It’s bigger and better with a wide array of features and options that make it seem more like an intermediate than a compact.

Government Motors: As GM shares near record low, taxpayer loss on bailout rises to $35 billion

By Ed Carson

Investors Business Daily

To quote Lando Calrissian, this deal’s getting worse all the time.

General Motors (GM) shares fell to a fresh 2012 closing low of 19.57 on Monday July 2. The stock hit 19 in mid-December, the lowest since the auto giant came public at $33 in November 2010 following its June 2009 bankruptcy.

Normally you might say, tough luck investors. But this is Government Motors. The Treasury still owns 26.5 percent of GM, or 500 million shares. Taxpayers are still out $26.4 billion in direct aid. Shares would have to hit $53 for the government to break even.

Those shares were worth about $9.8 billion as of Monday. That would leave taxpayers with a loss of $16.6 billion.

But that’s not the full tally. Obama let GM keep $45 billion in past losses to offset future profits. Those are usually wiped out or slashed, along with debts, in bankruptcy. But the administration essentially gifted $45 billion in write-offs (book value $18 billion) to GM. So when GM earned a $7.6 billion profit in 2011 (more on that below), it paid no taxes.

Include that $18 billion gift, and taxpayers’ true loss climbs to nearly $35 billion.

Of course, there’s no chance that the Obama administration will sell off its GM stake before Election Day. That would force Obama to recognize actual losses, which would remind voters that the bailout was a massive transfer from taxpayers to unions.

Union workers did make sacrifices in bankruptcy, but not nearly enough. GM only narrowed the labor cost gap vs. what Japanese automakers pay their workers. Given that Toyota(TM) still enjoys a price premium over similar GM vehicles, the U.S. auto giant needs a labor cost advantage, not near-parity. And Toyota has relatively high costs. Volkswagen(VLKAY) pays workers at its new Tennessee plant only about half what GM does.

The Volt hybrid was supposed to provide a green veneer to GM’s entire lineup, like the Prius has done for Toyota. Instead, the Volt has been a PR disaster following fires and anemic sales that led to a temporary production halt earlier this year.

GM’s market share and profits got an artificial boost in 2011 as Japan’s earthquake and Thailand’s massive floods wrecked havoc with supply chains for Toyota and other Japanese automakers. But with Toyota back on track and VW and Hyundai aggressively expanding in America, GM is rapidly losing share in 2012.

Overall U.S. auto sales were strong to start the year, but that momentum has faded along with slowing economic growth and hiring. Falling gas prices also may reduce the incentive to replace aging cars and trucks with higher-mileage vehicles. Automakers release U.S. June vehicle sales on Tuesday.

2012 VW Golf TDI — Frugal fun

By Bruce Caldwell 

Rapidly rising gas prices have placed added emphasis on alternate energy sources and small, efficient cars. Diesel fuel has had a large impact on trucks, but it can also do amazing things in small cars such as the 2012 VW Golf TDI. 

We would have expected a compact diesel sedan to be ultra utilitarian, Spartan, and boring, but the Golf TDI is the total opposite. The TDI features sport suspension, 17-inch alloy wheels, crisp styling, comfortable, supportive seats, and peppy performance. 

Walkaround: Our 2-door Golf sedan was handsome in a sensible, conservatively Teutonic way, which is a good thing. It’s compact outside and spacious inside — excellent packaging. 

Interior: We’re fans of VW interiors — they remind us of Audis, but much more affordable. Front seats were highly supportive with excellent side bolsters and lumbar levers. A thick, contoured steering wheel was a pleasure to hold. Front legroom is outstanding. Rear seat leg and headroom were fine as the passenger seat slides far forward for reasonable ingress/egress. 

Under The Hood: The 2.0-liter turbodiesel DOHC inline four-cylinder engine is the heart and soul of the Golf TDI. Horsepower is a respectable 140, but it’s the stout 236 lb-ft of torque (at a very low 1750 rpm) that makes the TDI so much fun to drive. An excellent 6-speed manual transmission mated to a very smooth shifter and clutch (plus a very welcome hill hold feature) maximizes performance/economy. The EPA rates the TDI at 30/42 mpg. A 14.5-gallon fuel tank means 400-600 miles between fill ups.

Behind The Wheel: The diesel engine was quick to start, didn’t smell, and produced minimal “diesel” noise. The most noticeable “diesel” characteristic was the prodigious torque. Ride quality was great with sporty, nimble handling, especially on twisty roads.

Whines: The center console lacked adequate storage space.

Bottom Line: Traditionally we haven’t been pro diesel engines (too noisy, smelly, costly, etc.), but the VW Golf TDI really made us rethink our position. It’s a wonderful car that we would gladly drive every day and smile broadly every time we passed a gas station. The VW Golf TDI is a quality car that’s frugal to own and operate all the while being fun to drive — you can’t ask for much more than that.

Nissan’s funky Juke... A little off center, but fun and capable

By Lary Coppola
Toyota may have started it with its odd-looking Scion XB, but if I didn’t know better, I’d swear Nissan was trying to corner the market on funk. First the boxy Cube, with its wrap-around picture window, and now the all-new 2011 Nissan Juke, which defines funk in a totally new way.

The Juke, which Nissan calls a “Sport Cross” is the smallest crossover on the market, and delivers fun and utility in an economical package.

While substantially smaller than Nissan’s compact Rogue crossover, it comes in eight model configurations: The Juke S, SV, and SL, with standard front-wheel drive and optional all-wheel drive (AWD) available on all models. The transmission choices are a manual 6-speed or continuously variable automatic (CVT).

Built on Nissan’s B-platform (same as the Versa), the Juke is aimed squarely at the urbanized, 18-34 echo-boomer male. While Nissan says it has no direct competitors, it’s expected to be cross-shopped against the Mazda 3, Mini Cooper, Toyota Matrix, Scion tC and Suzuki SX4.

Walkaround: Based on Nissan’s Qazana concept vehicle, which made the international auto show circuit last year, Nissan claims its styling cues come from active lifestyle influences such as video games, motorcycles and rally cars. I’m not exactly sure what that means, but the Juke is definitely interesting to look at. It sort of resembles a sport-utility vehicle, in that it’s definitely masculine, with a wide stance, standard 17-inch wheels, and boomerang-shaped taillights similar to those on the 370Z.

Large, bug-eye headlights sit fairly low, while the turn signals are housed in separate recessed clusters positioned higher than usual, and back at the edge of the hood. But it’s unmistakably a Nissan, boasting the signature tri-face grill and declining roofline that gives it the feel of a classic two-door coupe. The rear door handles are hidden in the blacked-out portion of the rear pillars.

The Juke is smaller than some subcompact sedans, measuring only 162.4 inches bumper to bumper — nearly two feet shorter than the Rogue, and 17 inches shorter than a Honda CR-V. It’s also six inches shorter than Nissan’s sub-compact Versa hatchback — on a shorter wheelbase.

Interior: The Juke is just as interesting inside as out. It offers command seating positions up front, with a corresponding high shift position, while the center console resembles a motorcycle gas tank, finished with high-gloss, two-tone paint.

An advanced Integrated Control system interface Nissan calls I-CON, changes color and function depending on the mode selected. In C, for climate mode, it shows interior temperature, fan speed and airflow direction. In the Drive, or D mode, it displays engine functions and driving-related info, including three different throttle, transmission and steering settings — Normal, Sport and Economy, or ECO — a feature previously found only on much more expensive vehicles.

The base version Juke S comes with manual front seats, dual front and rear drink holders, speed-sensitive door locks, a single-CD audio system with steering wheel controls and auxiliary and USB ports, and Bluetooth phone connection.

Among the many upgrades available on the SV and SL to personalize the Juke, are leather seating, heated front seats, satellite radio, premium Rockford Fosgate audio, a back-up camera, Intelligent Key push-button ignition, power moonroof, privacy glass and a navigation system with real-time traffic information.

The Juke feels much like the Versa hatchback — only different. It has a 60/40 split folding rear seat that folds down into a flat load floor boasting 35.9 cubic feet of cargo space. The switch from full passenger capacity to maximum cargo space is quick and easy.

All Juke’s are equipped with a full complement of safety-protection features including seatbelts for five, dual-threshold front-impact airbags, seat-mounted driver and front passenger side-impact airbags, roof-mounted curtain airbags for head protection and front-seat active head restraints.

Under The Hood: The Juke is powered by an all-new, 1.6-liter turbocharged aluminum four-banger with direct fuel injection. It puts a healthy 188 ponies to the pavement with 177 lb-ft. of torque. Those are pretty impressive numbers for an engine this size.

The Juke’s optional advanced torque-vectoring AWD system offers features previously reserved for more upscale vehicles. The system varies the delivery of engine power between the front and rear wheels according to traction and driving demands, but can also move power back and forth between the rear wheels, helping move the Juke more effectively through a curve. The Juke’s AWD system is only offered with the CVT.

Behind The Wheel: The Juke is blast to drive. Our lengthy test drive took us from the densely urban environment of downtown Vancouver BC — one of the densest cities on the planet — to the wilds of northern Vancouver island, with lots of winding two-land blacktops to challenge the Juke’s capabilities. It took them all in stride, with plenty of power and surprising acceleration, as well as braking capability. The AWD system’s capability to move the balance of power between the rear wheels made those challenging twisties all the more fun.

The Juke is quieter than most cars this size, and even after a long day of seat time, wasn’t as exhausting as many cars in the segment can be.

Whines: Rear visibility could stand some mild improvement.

Bottom Line: You either like the looks of the Juke or you don’t, but it’s been a hit in both Europe and Japan with its target demographic. It’s versatile, comfortable, extremely capable, powerful for this segment, and loaded with technology. With the ability to personalize it to the point of semi-serious luxury, and pricing ranging from $18,960 to $24,550 - topping out at $29,425 with every available option — including a $950, 17” gunmetal steering wheel and $280 illuminated kick plates — there’s no reason it won’t be a hit here as well.