Autoblog Trends

STUDY: Despite insurance breaks, hybrids driven more, cost more to fix, and get more tickets

Chris Shunk — Thu, 16 Jul 2009 19:29:00 EST

Filed under: Maintenance, Trends, Hybrid, Lifestyle

2010 Honda Insight EX - Click above for high-res image gallery

Conventional wisdom is that hybrid vehicles reduce our dependence on foreign oil and emit fewer environment hurting CO2 emissions. When comparing a hybrid to a conventional gasoline-powered model on a mile-by-mile basis, there's some logic to this argument provided the pricing disparity between the two models isn't too broad. However, a new study by Quality Planning shows that hybrid owners drive much more than non-hybrid owners, potentially negating the benefits of the added battery pack and electric motor.

Quality Planning studied nearly 360,000 vehicles throughout 2007 and 2008 to analyze driving habits, and some of the study's findings are pretty surprising. According to the survey, hybrid and non-hybrid drivers have statistically similar commutes, but hybrid owners drive their vehicles 25% more (2,000 miles) in non-commuting scenarios.

Dr. Raj Bhat, president of Quality Planning, thinks part of the reason for these findings has something to do with the fact that high mileage drivers are typically more interested in hybrids than infrequent drivers.

"What we don't know is whether owning a hybrid vehicle encourages people to drive more miles each day or take more pleasure trips. High-mileage drivers appear to be attracted to these vehicles, so insurers should take steps to verify the intended use of hybrids and validate actual miles driven wherever possible."

The study also shows that hybrid owners are significantly more likely to receive traffic tickets. According to the survey, Toyota Prius owners received .38 tickets per 100,000 miles driven, versus a non-hybrid average of .23 tickets per 100,000 miles. That's a 65% differential. One possible explanation for the ticket disparity has to do with where hybrid owners live. Quality Planning found that hybrid owners are more likely to live in an urban setting, where tickets are more frequently issued.

If you really want a hybrid and you don't want to hear any more bad news, you should stop reading. QP also found that repair costs are significantly higher for hybrid owners. The Ford Escape Hybrid, for example, costs 31% more to repair than the gasoline-only model, while repairing the Toyota Highlander Hybrid will reportedly add 45% more cost. A recent report by IntelliChoice that found that, in the long-term, hybrids and diesels are actually cheaper than gasoline-only vehicles.

The text below illustrates how much on a per dollar basis hybrid repair costs for collision and comprehensive coverage versus one dollar for a non-hybrid. The disparity is shrinking every year, but according to QP, hybrids still cost more to fix. Hit the jump to view the Quality Planning press release.

Collision Comprehensive
Coverage Coverage
2006 Hybrid Models $1.16 $1.75
2007 Hybrid Models $1.09 $1.35
2008 Hybrid Models $1.13 $1.17

Gallery: Review: 2010 Honda Insight EX

[Source: Quality Planning via Marketwire]

Continue reading STUDY: Despite insurance breaks, hybrids driven more, cost more to fix, and get more tickets

STUDY: Despite insurance breaks, hybrids driven more, cost more to fix, and get more tickets originally appeared on Autoblog on Thu, 16 Jul 2009 19:29:00 EST. Please see our terms for use of feeds.

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Sales Watch: Honda Accord sales creeping up on Toyota Camry?

Chris Shunk — Thu, 16 Jul 2009 14:02:00 EST

Filed under: Car Buying, Trends, Sedan, Honda, Toyota

While the Honda Accord dominated the 1990s, it has been virtually all Toyota Camry in the new century. Yet a look back at the first six months of 2009 shows that the newer, larger Accord is continuing to gain ground on its chief rival. Camry sales have so far remained top in its segment, with 150,242 sales in the first half of the year. The Accord isn't far behind, though, as it has amassed 131,143 sales through June; only 19,199 behind Camry.

Wards Auto reports that the Accord's gains have been consistent over the past three years, as the sales gap went from 94,004 in 2006 to 80,877 in 2007 and 63,828 in 2008. With sales deeply depressed so far in 2009, though, the numbers can be a bit deceiving. Still, the Camry has seen a 37.4% drop in sales, as compared to 36.3% for the Accord.

Toyota told Wards that one reason for the Accord's improved sales verses the Camry are increasing incentives on the full-size Honda. According to Edmunds, the Accord's April incentives increased four-fold verses the automaker's April, 2008 numbers. Even more interesting is the fact that cash on the hood has increased since April, hitting $2,183 in June. The Camry, on the other hand, had $1,538 on the hood last month; down over $400 compared to May.

[Source: Wards Automotive]

Sales Watch: Honda Accord sales creeping up on Toyota Camry? originally appeared on Autoblog on Thu, 16 Jul 2009 14:02:00 EST. Please see our terms for use of feeds.

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STUDY: More Americans planning to keep their cars longer... are you? [w/POLL]

Chris Shunk — Thu, 16 Jul 2009 12:57:00 EST

Filed under: Car Buying, Trends

Automakers looking for a relatively quick turnaround in the auto market probably aren't going to like a new survey from AutoPacific. The annual survey of over 32,000 consumers gauges public interest in new car buying, and the 2009 survey shows that a lot fewer people are looking for a new car these days.

Back in 2005, only 46% of those queried said they were waiting more than four years to buy a new car, and this year that number rose to 59%; a whopping 13% increase. The survey asks if car buyers are looking to buy in six months to a year, one to two years, two to three years, three to four years, or four or more years, and the numbers are down across the board verses last year. A paltry 1.49% of those surveyed said they were looking to buy in the next year, down 1.05% from last year, and 2.12% as compared to 2005. The number of survey participants looking to buy in the next one to two years has been cut in half to only 5.68%, which doesn't bode well for the short-term future of car sales.

These survey numbers could foreshadow more troubles for the auto industry, and AutoPacific president George Peterson sees this as a long-term issue:

"We'll not be seeing the frequent replacement pattern brought about by strong incentives and financing programs that made it easy and financially reasonable over the last decade for consumers to get into a new car frequently. This may also tell us that consumers will be putting a higher priority on vehicles with a reputation for quality and durability that meets not only their short-term needs, but also their long-term expected needs."

As bad as these numbers look, we're guessing that they're more a reflection of the state of the economy than a long-term assessment of the auto industry, although they could also have something to do with improving vehicle reliability and the increasing commonality of longer warranties. Still, AutoPacific's numbers changed drastically from 2008, meaning many that said they would buy a vehicle in a certain time frame only last year have changed their minds a year later. If the economy picks up, we suspect some will change their minds again. If the nation's financial picture remains mired in a depression, though, sales will continue to be slow. Either way, we've got the feeling that the days of 16-17 million annual new car sales in the U.S. are behind us.

Are you planning on keeping your car longer these days? Take our survey (and check out the official press release and chart) after the jump, then drop your fellow reader a line in 'Comments.'

[Source: AutoPacific | Image: George Marks/Getty]

Continue reading STUDY: More Americans planning to keep their cars longer... are you? [w/POLL]

STUDY: More Americans planning to keep their cars longer... are you? [w/POLL] originally appeared on Autoblog on Thu, 16 Jul 2009 12:57:00 EST. Please see our terms for use of feeds.

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Hyundai trumps BMW and Jaguar in J.D. Power 2009 APEAL study

Michael Harley — Thu, 16 Jul 2009 08:00:00 EST

Filed under: Trends, Marketing/Advertising, BMW, Dodge, Ford, Hyundai, Nissan, Volkswagen, Luxury

Click above for a gallery of the graphics from J.D. Power and Associates

Porsche grabs the top spot for the fifth year in a row in the J.D. Power and Associates 2009 Automotive Performance, Execution, and Layout (APEAL) Study. For this year's study, the team at JDPA gathered information from more than 80,900 purchasers and lessees of new 2009 model-year cars and questioned them on more than 90 vehicle attributes. Their studies examined "how gratifying a new vehicle is to own and drive," based on those evaluations.

While the APEAL nameplate ranking is significant (Porsche, Jaguar, and Cadillac round out the top-three), the segment winners offer more insight into what today's buyers are seeking. This year, it appears to be the newly launched models including the Volkswagen CC, Nissan Maxima, Dodge Challenger, and Ford Flex... each took top honors in their respective category. This year's biggest upset comes in the "Midsize Premium Car" segment as the all-new Hyundai Genesis (sedan) knocks the BMW 5 Series from the podium. Check out the gallery for the graphics, and read the full press release after the break.

Gallery: 2009 J.D. Power APEAL Results

[Source: JDPower.com]

Continue reading Hyundai trumps BMW and Jaguar in J.D. Power 2009 APEAL study

Hyundai trumps BMW and Jaguar in J.D. Power 2009 APEAL study originally appeared on Autoblog on Thu, 16 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

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Tall wagon/hatch segment drawing more new entries, but not many customers?

Chris Shunk — Mon, 13 Jul 2009 11:00:00 EST

Filed under: Trends, Wagon, Crossover, Hatchback, Honda, Earnings/Financials

The Chrysler Pacifica lasted all of four years before it was unceremoniously dumped from the Pentastar's lineup. The Ford Freestyle endured a name change after three model years, then lasted two more as the Taurus X before being sent out to pasture. The Cadillac SRX lasted six years as a tall wagon before being completely redone as a more traditional front-drive -based crossover for 2010. Mercedes-Benz's R-Class, essentially a lux'd out minivan without sliding doors, has been gathering moss since it rolled into U.S. dealers for 2006.

Despite the less-than-stellar sales numbers of the aforementioned vehicles, there are a surprising number of tall wagons, genre-bending tippy hatches and style-over-utility people movers on the market, and more are on the way. The most recently announced entry into the tall wagon segment is the Honda Accord Crosstour, which is destined to hit the showroom floor this Fall. As far as we can tell from spy shots, it's taller than a standard Accord and has a hatch-like boot, giving it an aerowagon or "touring" style appearance. It certainly won't hurt the Crosstour's case that it's a Honda, and any association with the Accord name is likely a good thing, but customers have proven to be very picky when it comes to the angular tall wagon format.

What passes for success these days? We think Toyota's Venza is a particularly well-done example that manages to marshall an extra dose of style with still-reasonable utility. It's roomy and almost luxurious, yet Toyota has only sold 20,000 copies through June. The Japanese automaker was hoping for 50,000 sales per year, but Toyota national large car GM Bob Zeinstra tells Automotive News that the Venza is just now starting to pickup steam at the dealerships, and one has to factor in the perilous economy when considering total sales of any new vehicle.

For its part, BMW's X6 crossover, perhaps the poster-child for this automotive platypus segment, has actually been selling well for the German automaker, albeit in significantly smaller numbers than more mainstream models.

If Honda's Crosstour succeeds where the Freestyle, Pacifica and SRX failed, the segment may have some life in it. If it doesn't pass the sales test, we're wondering if automakers will finally give up hope on a segment long on new entries, but short on success stories.

[Source: Automotive News subs req'd | Images: M. Balisky]

Tall wagon/hatch segment drawing more new entries, but not many customers? originally appeared on Autoblog on Mon, 13 Jul 2009 11:00:00 EST. Please see our terms for use of feeds.

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GM expects sales in China to grow 20% in 2009

Michael Harley — Fri, 10 Jul 2009 10:00:00 EST

Filed under: Car Buying, Trends, China, Buick, GM, Earnings/Financials

General Motors boasted in April that it would double sales in China by 2013 with the introduction of 30 new or upgraded models over the next five years.

Last month, GM forecasted that its vehicle sales in China would grow 10% this year alone and now it seems those numbers may have been a bit conservative. Kevin Wale, GM's China Group President, has just announced that the company expects vehicle sales in the region to grow by a little more than 20% in 2009.

While the rest of the global automotive industry is stuck in a rut, the emerging Chinese market seems largely unaffected by stagnant North American sales or GM's bankruptcy filing in early June. As of now, China is the company's second largest market (thanks in part to their insatiable appetite for Buicks).

[Source: Automotive News - Sub. Req.]

GM expects sales in China to grow 20% in 2009 originally appeared on Autoblog on Fri, 10 Jul 2009 10:00:00 EST. Please see our terms for use of feeds.

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REPORT: China passes U.S. in auto sales

Chris Shunk — Thu, 09 Jul 2009 16:57:00 EST

Filed under: Car Buying, Trends, China, GM

Most of the world has been knee deep in a wicked recession for quite a while, and auto sales have been hit especially hard. Here in the U.S., the numbers have been abysmal, as the first half of the year saw only 4.8 million sales through June. China, on the other hand, is running away with the overall sales lead, as the ~~emerging~~ emerged market has added 6.1 million cars and trucks to its still developing roadways. According to The Associated Press, June sales were up 36% over the same period in 2008, and they're up 17% on the year.

The big winner in the market so far this year appears to be General Motors. The struggling Detroit, MI-based automaker has seen its China sales jump by 38% this year; while its U.S. sales have tanked. Industry analysts are predicting that the overall market for passenger cars in China will be between 10 and 11 million units.

Most experts weren't expecting China to pass the U.S. in overall sales for another decade, but the crumbling American auto industry has expedited the power shift, at least for the short term. With 1.3 billion people and a healthy economy, this day was destined to come.

[Source: The Associated Press via Google]

REPORT: China passes U.S. in auto sales originally appeared on Autoblog on Thu, 09 Jul 2009 16:57:00 EST. Please see our terms for use of feeds.

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REPORT: 'Personality traits' of automobiles studied

Dan Roth — Thu, 09 Jul 2009 08:58:00 EST

Filed under: Trends, Etc., Lifestyle

Reader-submitted "Cars" Photoshops - Click above for image gallery

The styling of your vehicle makes a statement, of course. Designers spend years perfecting the craft of automotive sculpture, and are finely attuned to what types of shapes and conventions send a given message. Now, the researchers want to move in and figure out how to express what the artists already know with a scientific approach called morphometrics. The practice of shape analysis, usually used for more classical studies like medicine and biology, is useful in improving healthcare equipment or possibly aiding in the identification of unknown remains.

People inherently look for faces and patterns, and the front of a car lends itself to being anthropomorphized. Professor Dennis Slice and his colleagues at Vienna University think the information gleaned from looking deeper into what the "faces" of various cars say - meek or mild appearance, for instance - and how to zero in on just what features will send the automaker's intended message. Of course, design teams already seem to be doing a good job of telling a story with design, with or without the newfangled algorithm. Possibly harder to nail down is the answer to the question of whether styling makes drivers behave differently, the next topic Slice and his team are tackling. Hat tip to Matt.

Gallery: Pixar CARS Photochops

REPORT: 'Personality traits' of automobiles studied originally appeared on Autoblog on Thu, 09 Jul 2009 08:58:00 EST. Please see our terms for use of feeds.

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Canada pondering Cash-For-Clunkers too?

Chris Paukert — Mon, 06 Jul 2009 16:00:00 EST

Filed under: Car Buying, Trends, Government/Legal, Green, Earnings/Financials, Canada

Historically speaking, Canada has gotten the blunt end of the stick when it comes to new car pricing compared to its southern neighbors. Pricing on many vehicles versus an otherwise identical U.S. counterpart has long been comparatively inflated, and America's recently passed Cash-For-Clunkers bill has left many Canadian consumers feeling even more short-changed than normal.

But help may be on the way. The Vancouver Sun reports that Jim Prentice, Canada's environmental minister, is reviewing whether the Great White North should get a Cash-For-Clunkers scrappage incentive program of its own. According to the story, Prentice has met with "a number of auto manufacturers over the past few months" in order to discuss whether the government should issue its own $3,500 incentives to junk old vehicles and purchase new ones.

Interestingly, before a decision is made, Prentice plans to analyze whether a small, existing auto salvage trade-in program in Alberta has had any effect. That program apparently gives eligible owners a comparatively modest sum - $300 - for scrapping their 1995 or older vehicles. Instead of the cash incentive, alternative awards for the current program include up to $490 toward a new bicycle or as much as a year's worth of mass transit passes.

A decision on a Cash-For-Clunkers program for Canada will likely be handed down in the next 60 days.

[Source: The Vancouver Sun | Image: Theo Heimann/Getty]

Canada pondering Cash-For-Clunkers too? originally appeared on Autoblog on Mon, 06 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

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REPORT: China rolls out 89 new models in six months - that's one every two days

Jeremy Korzeniewski — Fri, 03 Jul 2009 16:44:00 EST

Filed under: Car Buying, Trends, China, Plants/Manufacturing

Geely GE - Click above for high-res image gallery

We've been hearing Chinese officials say for quite some time now that there are far too many automakers in the country for a healthy market in the long-term, but we didn't realize until today just how out-of-hand it may be. According to state-run Chinese news agency Xinhua, China has seen an unprecedented 89 new automobile launches so far this year.

That's surely a big number, but it doesn't really hit home until you consider that 89 vehicles in the first half of 2009 averages out to a new or heavily revised vehicle appearing in China once every two days. Of those new designs, 73 were cars, nine were SUVs, six were MPVs and - in contrast to typical American vehicle launches over the same period - only one was a crossover.

As you're surely aware, 2009 is only half over, and there are reportedly some 50 new vehicles still slated for introduction before the end of the year, equaling about 140 new models introduced in 2009. The good news, at least as far the bottom line goes, is that the new releases have translated into sales. The 4.96 million vehicles sold between January and May of this year represent a 14.29-percent increase over the same period in 2008. Still, considering the glut of new models hitting the market, one has to figure that a goodly number of those vehicles will go begging.

Gallery: Geely GE

[Source: Gasgoo]

REPORT: China rolls out 89 new models in six months - that's one every two days originally appeared on Autoblog on Fri, 03 Jul 2009 16:44:00 EST. Please see our terms for use of feeds.

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Diesel TDI model grabs 81% of VW Jetta Sportwagen sales in June

Sam Abuelsamid — Wed, 01 Jul 2009 18:39:00 EST

Filed under: Car Buying, Trends, Hybrid, Sedan, SUV, Wagon, Volkswagen, Diesel

2009 Volkswagen Jetta Sportwagen - Click above for high-res image gallery

General Motors, Ford, Chrysler, Honda and everyone else may not think there is much of a market for mainstream diesel vehicles in the United States, but Volkswagen would beg to differ. Since it launched its new generation diesels last fall in the Jetta and earlier this year in the Touareg, they have been selling like hotcakes with June being its best month yet. Last month was the best sales month to date for the Sportwagen with 1,982 sales and a whopping 81% of those were equipped with the 2.0-liter TDI four-cylinder.

Among the 8,431 Jetta sedans sold in June, 40% were diesel powered. And while the Touareg followed most other SUVs with a 41% overall decline to only 330 units in June, 29% of those had the 3.0-liter V6 TDI engine. Rabbit sales were down 69% in June, but a redesigned Golf is arriving in September, including a TDI - and if fuel prices keep climbing through the summer, it could see a huge sales spike as well.

Gallery: First Drive: 2009 VW Jetta Sportwagen

[Source: Volkswagen]

Continue reading Diesel TDI model grabs 81% of VW Jetta Sportwagen sales in June

Diesel TDI model grabs 81% of VW Jetta Sportwagen sales in June originally appeared on Autoblog on Wed, 01 Jul 2009 18:39:00 EST. Please see our terms for use of feeds.

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BREAKING: Chevrolet Camaro outsells Ford Mustang in June

Chris Paukert — Wed, 01 Jul 2009 14:42:00 EST

Filed under: Car Buying, Trends, Convertible, Coupe, Performance, Chevrolet, Ford, GM

Despite having fewer model variations on the market, pent up demand for the 2010 Chevrolet Camaro appears to have been enough to send the bad Bowtie past Ford's redone Mustang in June. Sales figures for the month are beginning to trickle in today, and General Motors says it shifted 9,320 Camaro units last month, as compared to the Blue Oval's 7,632 Mustangs.

Whether Chevrolet's victory will be sustainable over the long haul remains to be seen, but as The General has a backlog of 10,000 sold orders to fill (equating to less than a seven day supply), the streak is likely to continue for at least the next few months. Presently, GM offers just two main Camaro models, the V6 RS and the V8-powered SS, while the Ford Mustang has more bodystyles and trims than you can shake a stick at (arguably making the Camaro's achievement seemingly that much more impressive).

Sales of the third leg of 2009's pony car table, the Dodge Challenger, trail far behind, with just 1,369 units cleared last month.

As the industry heads into the dog days of summer, it looks like America's renewed pony car war is just heating up. Who will take the crown for the whole year? Sit tight, muscle fans.

Gallery: One Night Stand: 2010 Chevrolet Camaro

Gallery: First Drive: 2010 Ford Mustang GT

BREAKING: Chevrolet Camaro outsells Ford Mustang in June originally appeared on Autoblog on Wed, 01 Jul 2009 14:42:00 EST. Please see our terms for use of feeds.

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REPORT: Analysts suggest new vehicles sales could rebound to 10M pace in June

Chris Shunk — Wed, 01 Jul 2009 11:30:00 EST

Filed under: Car Buying, Trends, Earnings/Financials

June auto sales will no doubt be ugly. In all likelihood, the sixth month of the year will be the 24th month in the past 25 to see a year-over-year sales decline. June could also bring a bit of good news, though, as an Automotive News poll of nine different industry analysts shows that sales may hit an annualized rate of 10 million, up from the 9.1-9.9 levels of previous months this year.

The slight pickup in June sales verses May numbers would suggest that the market for new cars and trucks has likely bottomed out. Edmunds predicts that the automaker likely to gain much share in June is Ford, as the car research site predicts sales that its sales are down only 15.6%. The next smallest decline is predicted to be Nissan at 24.2%, and then Toyota, Honda, GM, and Chrysler are all guesstimated to be between 28-32%. The June 2009 sales figures will likely be a bit skewed for Honda, though, as the Japanese automaker had an unusually strong June 2008 because of a big-time push for fuel efficient vehicles due to $4 per gallon gas.

Deutsche Bank analyst Rod Lache has told Automotive News that the second half of the year could see even more of an upward trend due to the freshly minted Cash-for-Clunkers law. Lache says sales could hit 11 million on an annualized rate, though it's likely that most people driving junkers can't afford a new car payment along with increased insurance rates.

[Source: Automotive News subs req'd | Image: Karen Bleier/AFP/Getty]

REPORT: Analysts suggest new vehicles sales could rebound to 10M pace in June originally appeared on Autoblog on Wed, 01 Jul 2009 11:30:00 EST. Please see our terms for use of feeds.

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REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S.

Jeremy Korzeniewski — Tue, 30 Jun 2009 13:30:00 EST

Filed under: Car Buying, Trends, BMW, Lexus, Earnings/Financials

2010 BMW 5 Series Gran Turismo - Click above for high-res image gallery

Life is hard at the top, whether that precipice happens to be at the zenith of the overall sales chart or of a specific market niche, such as Lexus' position as the best-selling luxury automaker in the United States. Toyota's posh brand has held the top spot since the year 2000, with BMW perpetually trailing in second place. Could 2009 finally be the year that BMW breaks through to number one?

So far this year, Automotive News is reporting that BMW's 76,819 total sales in the States puts the German brand slightly ahead of Lexus, which has moved a total of 73,186 units thus far in '09. Both brands are down somewhat from 2008, though BMW's 30.5% decline is not quite as severe as Lexus' 37.2% fall. Neither automaker is interested in boasting of its successes in this market, though BMW will gladly accept the extra market share. Speaking to Automotive News, Jan Ehlen, a spokesman for BMW of North America, said:

This year's emphasis is on maintaining our market share and even growing our share a bit. If this results in remaining in the top spot of the premium market, that would be a nice bonus.

Gallery: 2010 BMW 5 Series Gran Turismo

[Source: Automotive News]

REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S. originally appeared on Autoblog on Tue, 30 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

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Lexus leads, Hyundai improves, while Infiniti drops in J.D. Power 2009 Initial Quality Study

Michael Harley — Mon, 22 Jun 2009 13:00:00 EST

Filed under: Trends, Etc., Plants/Manufacturing, Cadillac, Honda, Infiniti, Lexus, Porsche, Suzuki

Click above for a gallery of the graphtastic images from J.D. Power and Associates

J.D. Power and Associates has released its 2009 Initial Quality Study (IQS) and Lexus has taken the top spot away from Porsche, the initial quality leader for the past three years. The annual J.D. Power study measures IQS based on problems reported per 100 vehicles (PP100) -- a lower score means a lower rate of problem incidences and higher quality.

This year, the industry average is 108 PP100, demonstrating a steady improvement from 118 PP100 in 2008, and 125 PP100 in 2007. In addition to the marked improvement by the industry overall, many brands continued to perform well in 2009. Following Lexus and Porsche is Cadillac (which moves from 10th rank position in 2008 to third in 2009), Hyundai (jumping from 13th rank position in 2008 to 4th in 2009) and Honda (up from 7th in 2008 to 5th in 2009). Infiniti, second in last year's study, drops to 11th overall, while Suzuki posts the largest improvement in ranking, moving from 32nd place in 2008 to 9th in 2009. The complete J.D. Power press release and charts can be found after the jump and in the gallery below.

Gallery: 2009 J.D. Power IQS Results

[Source: J.D. Power and Associates]

Continue reading Lexus leads, Hyundai improves, while Infiniti drops in J.D. Power 2009 Initial Quality Study

Lexus leads, Hyundai improves, while Infiniti drops in J.D. Power 2009 Initial Quality Study originally appeared on Autoblog on Mon, 22 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

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REPORT: GM cutting executive pensions, ex-CEO Wagoner to get pinched the most

Chris Shunk — Tue, 16 Jun 2009 13:00:00 EST

Filed under: Trends, Government/Legal, GM, Earnings/Financials

With General Motors in bankruptcy, it was only a matter of time before pensions came under scrutiny. The Detroit News is reporting that GM CEO Fritz Henderson has confirmed that executive pensions beyond $100,000 per year will be cut by two-thirds. Recently defenestrated boss Rick Wagoner will likely take the biggest hit of all - he was supposed to receive $22 million over five years as part of his retirement package, but that number will reportedly drop by up to $15 million.

The move by GM mirrors closely that of Chrysler, which also took an axe to its executive retirement pay structure. Ex-CEO and one-time company savior Lee Iacocca lost his company car and may lose some or all of his monthly stipend, and he is now representing 1,200 ex-Pentastar employees protesting the move. Chrysler retirees have been lumped together with the Pentastar's other creditors, and it will be up to a judge to determine what amount they will receive in the months and years ahead.

[Source: Detroit News | Image: Bill Pugliano/Getty]

REPORT: GM cutting executive pensions, ex-CEO Wagoner to get pinched the most originally appeared on Autoblog on Tue, 16 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

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VIDEO: Vintage promo film made for Detroit's 1968 Olympic bid reveals city's precipitous decline

Chris Paukert — Mon, 15 Jun 2009 20:00:00 EST

Filed under: Detroit Auto Show, Classics, Trends, Etc., Videos

Click above to watch the video after the jump

We often think of the 1950's as being the heyday for Detroit's fortunes, but even in the early-to-mid Sixties, it remained something of a modern marvel, thanks largely to its world-leading auto industry. This archival video was apparently commissioned as part of a failed bid for the 1968 Summer Olympics (which went to Mexico City instead). Reportedly filmed in 1965, Detroit - City on the Move shows the area in full bloom - a startling contrast to the shell of an empire that remains just 44 years later.

With the harmonies of the Detroit Symphony Orchestra as a backdrop, Mayor Jerome Cavanagh takes us through footage of downtown streets bustling with some of the city's two million residents, shots of a startlingly clean and new Cobo Hall (including scenes of the Detroit Auto Show itself), the crisp campuses of the (then) Big Three, and of the city's once-mighty cultural draws. It even has footage of the late John F. Kennedy talking up its virtues as part of the Olympic bid.

Interestingly (and perhaps tellingly), this sanitized look at Detroit all but glosses over mounting troubles with blustery talks of 'rebirth,' it utterly omits mention of the hitmakers at Motown Records, and in retrospect, it fails to adequately address growing racial tensions in the city (Detroit's infamous riots would lay siege just two years later in 1967).

Admittedly, such promotional films show a city in its best light by design, but even still, there's no getting around the fact that the World's Automotive Capitol ain't what it used to be. This video, part of the Prelinger Archives, gives us a glimpse into what Detroit used to be, and perhaps more than anything, what it sought to be. It's an amazing yet sobering look into mid-Sixties America, and it's worth a look. Take a trip back in time by clicking on the jump.

[Source: Archive.org]

Continue reading VIDEO: Vintage promo film made for Detroit's 1968 Olympic bid reveals city's precipitous decline

VIDEO: Vintage promo film made for Detroit's 1968 Olympic bid reveals city's precipitous decline originally appeared on Autoblog on Mon, 15 Jun 2009 20:00:00 EST. Please see our terms for use of feeds.

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Putting It In Perspective: Largest bankruptcies in U.S. history displayed graphically

Chris Paukert — Fri, 12 Jun 2009 14:00:00 EST

Filed under: Trends, Chrysler, GM, Earnings/Financials

Click above to view Good Magazine's largest bankruptcies in U.S. history infographic

The benevolent-minded folks over at Good Magazine have commissioned infographic specialists Always With Honor to give us a little perspective on America's recent rash of bankruptcies. Using the 'sinking ship' metaphor to graphically show where the Chapter 11 filings of General Motors and Chrysler sit among the 20 biggest bankruptcies in U.S. history provides some interesting perspective on the ailments affecting America's auto industry and the economy at large.

Included in the graphic are high-profile filings like Lehman Brothers, Worldcom, and Enron, along with lesser-known companies like Calpine and General Growth Properties. Soberingly, Good notes that eight of the largest bankrutpcies in American history have come in the last two years.

Click on the image above to see the infographic in its entirety.

[Source: Good Magazine]

Putting It In Perspective: Largest bankruptcies in U.S. history displayed graphically originally appeared on Autoblog on Fri, 12 Jun 2009 14:00:00 EST. Please see our terms for use of feeds.

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Kuwaiti Oil Minister reportedly says OPEC won't increase production until prices hit $100/barrel

Sebastian Blanco — Thu, 11 Jun 2009 16:57:00 EST

Filed under: Trends, Plants/Manufacturing, Earnings/Financials, Middle East

America might get most of its oil from Canada, but the moves that OPEC makes still reverberate here. Thus, a statement by the Kuwaiti Oil Minister Sheikh Ahmed al-Abdullah al-Sabah to reporters yesterday probably won't help decrease domestic gasoline prices any time soon. OPEC's al-Sabah said that the organization will not consider increasing production until the price of a barrel of oil reaches $100.

Currently, the price is around $70 a barrel - up almost 60% this year - but way, way down compared to the highs of 2008. Oh, and when the $100 price per barrel threshold is reached, only then will OPEC "maybe" consider putting more supply into the market. The organization sees the recent rise in prices as the result of investors looking for good places to put their money, not because demand for the product is rising. Over the middle-to-long term, many expect forecasters expect prices to easily surpass $100 a barrel once again.

[Source: Bloomberg | Image: David McNew/Getty]

Kuwaiti Oil Minister reportedly says OPEC won't increase production until prices hit $100/barrel originally appeared on Autoblog on Thu, 11 Jun 2009 16:57:00 EST. Please see our terms for use of feeds.

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REPORT: Lamborghini sees no recovery until 2011

Chris Shunk — Wed, 10 Jun 2009 18:00:00 EST

Filed under: Car Buying, Trends, Supercars, Lamborghini

Lamborghini Murcielago LP670-4 SuperVeloce - Click above for high-res image gallery

After several years of record growth, Lamborghini, like most automakers, is struggling in a tough economy. Sales are down 30% so far in 2009, and the Raging Bull even laid off factory workers for seven weeks in an effort to keep down inventories. Chief Executive Stephan Winkelmann told Reuters that he expects the sales slump to continue through 2010, saying that the "crisis is very deep."

Winkelmann points out that sales are down over 40% in the US (Lamborghini's top market), and the company's waiting list has dropped from one year to six months. Lamborghini's struggles closely mirror problems with the economy at large; areas that have been hit by investment banking and real estate woes aren't in the market for Italian supercars.

Regardless of the dim forecast for the next 18 months, Winkelmann is still bullish when it comes to profits. The company cleared 60 million euros in 2008 ($84 million in US funds) and the Italian automaker expects to remain in the black even if sales take a 40% plunge. And the world renown luxury exotic automaker will have to stay solvent while vastly improving its carbon footprint. Lamborghini plans to reduce CO2 emissions coming from its vehicles by 35% in six years.

Gallery: Lamborghini Murcielago LP 670-4 SuperVeloce

[Source: Reuters]

REPORT: Lamborghini sees no recovery until 2011 originally appeared on Autoblog on Wed, 10 Jun 2009 18:00:00 EST. Please see our terms for use of feeds.

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