September 2007
Toyota Doubles Range of Fuel-Cell Vehicle
By John O'Dell September 28, 2007Toyota Motor Corp. has shown reporters in Japan a hydrogen fuel-cell vehicle that has more than twice the range of its present FC model -- thanks to more onboard fuel storage. The increase, to 780 kilometers— (484 miles) from 330 kilometers (—205 miles) came after Toyota engineers installed new, larger hydrogen fuel tanks on two of the current FC vehicles. The new tanks hold fuel that's pumped in at a higher pressure —for more density—than before. They hold 6 kilograms -- about 13 pounds -- of hydrogen... more
Gas Tax Hike, Mortgage Deduction Cut To Be Proposed in Greenhouse Gas Reduction Plan
By John O'Dell September 28, 2007Congressman John Dingell says he intends to introduce a bill that would reduce or eliminate some mortgage deductions and raise the federal tax on gasoline by 50 cents a gallon as part of an effort to help reduce greenhouse gas emissions. But before he puts the legislation into the hopper, the Michigan Democrat, chairman of the House Energy and Commerce Committee, wants to hear from the people who would be most affected. That's you and me. more
September Car Sales Soft, But Some Automakers Weather It
By Michelle Krebs September 27, 2007New vehicle sales in September are expected to be 1.29 million units (retail and fleet), a 4.5 percent decrease from September 2006, according to Edmunds.comâs forecast. "This month, the automakers with the most momentum are faring well even given the constraints of the marketplace," observed Jesse Toprak, executive director of industry analysis for Edmunds.com. "Especially in a soft market like this, compelling new products and effective marketing campaigns are the keys to success." Honda, which just launched the Accord accompanied by a significant advertising campaign, is the only one of the six major automakers predicted to show a sales increase, more
BMW Outlines Strategy; Hints at New Models and Possible Fourth Brand
By Michelle Krebs September 27, 2007BMW CEO Norbert Reithofer held a highly anticipated press conference in Munich Thursday to outline the German luxury makerâs strategic plan for the future. That plan includes global sales increases, substantial spending cuts, aggressive financial targets, U.S. production increases, more alliances, and the possible establishment of a fourth brand. more
CAFE Fines No Deterent To Some Luxury Brands
By John O'Dell September 27, 2007BMW and Mercedes-Benz are neck and neck in paying fines for violating U.S. fuel economy standards. Each of the German luxury carmakers has paid more than $200 million in fines since 1983. There’s CAFE, the corporate average fuel economy requirement that most major automakers try to meet each year, and then there are CAFE fines. CAFE works at least a little—the National Academy of Sciences found that it cut oil consumption in 2002 by 2.8 million barrels a day and suggests that overall savings can be measured in billions of barrels. But the fines, which have not been raised more
Hybrid Tax Credits Starting to Fade
By John O'Dell September 26, 2007The federal tax credits that helped pump up hybrid car sales for Toyota and Honda are winding down. The program, established in the federal Energy Policy Act of 2005, rewards success by disappearing in several stages after a carmaker sells 60,000 hybrids. Toyota’s Prius hit that mark last year, and Honda’s Civic hybrid crossed the threshold last month. Buyers of the 2007 Civic hybrid can still receive a $2,100 credit on cars purchased through December 31... more
Chevrolet Volt: Where Will It Be Built?
By Michelle Krebs September 26, 2007Now that General Motors has said it is proceeding with production of the Chevrolet Volt, the question is where will it be built? That question may have been answered by negotiators for GM and the United Auto Workers union as they hammered out a new four-year contract overnight. The UAW gave GM the union-managed health-care fund the automaker wanted, in exchange for GM's commitment to build some future models in U.S. plants by UAW workers. Among those future vehicles was believed to be the Volt. No word yet on which plant won the prize. more
Nissan's Thompson Out; Ex-Ford's Poore In
By Michelle Krebs September 26, 2007Nissanâs Jan Thompson, one of the auto industryâs top female marketing executives, has resigned, under pressure. Ex-Ford marketer Ben Poore will replace her. Thompson, well known in the automotive marketing community having worked at Nissan, Mazda and ad agencies handling other major automotive accounts, had been head of both Nissan and Infiniti advertising and marketing. Her resignation comes as no surprise. Nor is Poore's departure from Ford a shocker. more
GM, UAW Strike a Deal
By Michelle Krebs September 26, 2007By Michelle Krebs and Joe Szczesny The United Auto Workers (UAW) union announced in the wee hours of the morning that a tentative contract, which includes a union-managed health-care trust fund, had been reached with General Motors. The agreement ends a strike that started Monday and puts GM's 73,000 U.S. workers back to work job beginning late Wednesday. Both sides say the accord should help narrow the yawning gap in labor costs between GM and Asian rivals building cars in the United States. The key to the tentative agreement is the transfer of a substantial chunk of GM's legacy costs more
U.S. Fuel Economy Unchanged, Buyers Still Like Trucks
By John O'Dell September 30, 2007EPA fuel economy ratings for individual models are posted on price stickers America’s passenger vehicle fleet, still top-heavy with light trucks and large sport utility vehicles, turned in an average fuel economy of 20.2 miles per gallon for 2007 models, unimproved from 2006, according to a new report by the federal Environmental Protection Agency. That the numbers didn’t change despite soaring fuel prices and a nationwide push for greater fuel economy to help reduce our dependence on imported oil reflects both the slow pace at which automakers can adopt improved technologies and the reluctance of U.S. car buyers to give more