Thinking of trading your gas-guzzling SUV in for something smaller, a bit more fuel efficient? You are not alone. The rocketing cost of gasoline, and diesel fuel, is having a ripple effect on the SUV market. With consumers trading in their behemoths by the thousands in exchange for more frugal transportation, dealers are stuck with a surplus of unwanted sport-utes sitting on their lots with values dissolving.

Diesel-burning trucks aren't immune either. As diesel fuel costs hovering about fifty cents per-gallon above gasoline, some of the bigger oil-burning SUVs and trucks are losing measurable resale by the day. Overall, according to CNW Marketing Research, used SUV sales were down 14% in March alone. With any surplus, come big discounts. It may be a ghastly time to fill a 30-gallon tank on an SUV, but it is the perfect time to negotiate with a dealer for that seven-passenger family truckster you've been fancying. No need to hurry -- there will be an even better selection tomorrow.

Thanks to Jim for the tip!

[Source: U.S. News and World Report]

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According to NPD Group analyst David Portalatin, consumers cite "product performance" as their justification for buying one particular brand over another. It's all due to very effective branding and marketing, cites Portalatin. (We'd have to agree, as we've yet to meet anyone who can discern a difference between a tank of Chevron or Costco fuel from the driver's seat.) Now that the massive oil mergers are behind them, the petroleum giants are focusing on selling "quality" to differentiate themselves from the discount fuel stations. As consumers continue to blindly drive towards big brand gasoline, their efforts are apparently working -- regardless of cost. Let's just hope Starbucks doesn't catch wind of this trend and try a new source of revenue...

[Source Advertising Age, Photo by David McNew, Getty Images]

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Whether you call it "premium," "super unleaded," or even "high test," it all means the same thing -- the most expensive gasoline at the pump. In a somewhat counterproductive trend, the skyrocketing cost of fuel is forcing automobile manufacturers to use smaller and more powerful engines, often with forced-induction. Unfortunately, these engines require higher octane... the distinguishing feature of premium fuel.

Kelley Blue Book has been following the trend and according to their analysis, there were 166 vehicle models that required premium fuel in 2002. This year, that number is up to 282. While some automakers only require premium for their highest performing models, companies like BMW call for premium fuel across their model range.

While there is no advantage to running premium fuel in an engine that doesn't call for it, you should run the higher octane fuel in a powerplant designed for it (if in doubt, check the owner's manual, or the inside of the fuel filler door). While nearly every late-model high-performance engine on the road can handle a slightly lower octane rating without damage, don't skimp when filling up as your fuel economy and horsepower will suffer (yes, it will likely negate any savings at the pump).

[Source: USA Today]

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It's hard to imagine, but Fiat is rumored to be developing an even smaller car than the 500 and Panda. The new model would be a low-cost vehicle targeted at markets in South America, Russia, India and China.

Depending on how the Italian automaker determines a budget automobile would reflect on the company's other products, the vehicle could be marketed under the Fiat nameplate, or possibly under a different one altogether. If the company decides it will wear the Fiat badge, it could revive the Uno nameplate and effectively replace the Palio (pictured above), which currently serves as Fiat's "world car", with production in Brazil, India, Turkey, South Africa, North Korea and China, in hatchback, sedan, wagon and pickup body-styles. Fiat's close relations with Tata, makers of the Nano, could come into play, but one way or another, nobody does small cars like Fiat, so the competition had better take note.

[Source: paultan.org]

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Continue reading VW Rabbit is the new top-researched car on Gaywheels.com

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Mercedes jump-started a new trend of four-door coupes with the CLS. But after several years of having the niche market to itself, the German automaker is bracing for an onslaught of competition, from above and from below. While the Porsche Panamera and Aston Martin Rapide attempt to take the four-door coupe formula even farther upmarket, Volkswagen has launched its assault by undercutting the CLS with the new CC (until now known as the Passat CC). If the reports are to be believed, it's the latter that Daimler sees as the bigger threat, and the automaker is preparing to launch its own counter-assault with what's being dubbed as the CLE.

Like the CLS is based on the E-Class, the CLE would be based on the C-Class. But instead of coming in under the C-Class like the recently facelifted but still ageing CLC, the CLE would likely slot in between the C and E. Most of the mechanics would probably also carry over from the C-Class sedan, and the prospect of a swoopier version of the C63 AMG makes us hope the project comes to fruition.

[Source: paultan.org]

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Detroit's Big 3 American automakers account for roughly half of new car sales in the United States. So how do you explain that they hold almost two-thirds of all the new car dealerships in the country between them? The automakers themselves recognize the problem, and have been closing dealerships faster than you can say "foreign competition".

The Automotive News Dealer Census shows that, as of the start of this year, GM, Ford and Chrysler had 14,199 dealerships across the United States, 621 fewer than at the start of last year. The closures reflect a growing trend of reduction in the number of dealerships and franchises. Today U.S. carmakers have nearly 5,000 domestic dealerships fewer than they did in 1980. The closings began in earnest five years ago when the Big 3 closed 256 outlets in 2003. Of the 513 dealerships that closed last year in the United States, 484 were for American automakers. While GM continues to lead with the most outlets in the country, it closed 238 dealerships and 227 franchises itself last year. Ford closed 214, while Chrysler closed 164. Both GM and Chrysler are also campaigning for its dealerships to consolidate between brands: The General is aiming to combine Pontiac, Buick and GMC into single dealerships, with luxury dealerships focusing on Cadillac, Saab and HUMMER, while Chrysler LLC is undertaking Project Genesis to consolidate Chrysler, Dodge and Jeep franchises into single outlets.

[Source: Automotive News - subs. req'd, Photos by Justin Sullivan and Roberto Schmidt/Getty]

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Gallery: Porsche Design White Collection

Continue reading Blanc Slate: Porsche Design White Collection

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Click above for a high resolution gallery Shelby's personal '69 GT500

Continue reading Classic Detroit iron outpaces Dow Jones and the S&P 500

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In a sign that the high cost of gasoline has finally struck a central nerve, car shoppers today are reportedly more concerned about fuel economy than they are about the brand of vehicle when shopping for a new car. In addition, consumers want more government control over fuel economy. This startling news, and a reversal of consumer trends two years ago, is the result of a new AAA survey which studied consumers' attitudes towards fuel prices.

It appears that consumers were getting used to the cyclic fluctuations of gas prices. Prices shot up based on market conditions, supply and demand, and season increases. However, they always seemed to drop back to more palatable levels... at least they used to. Today, according to leading economists, consumers are finally catching-on to the idea that $4 a gallon gas might be the norm. This reality-check of fuel costs will lead to downsizing, and a focus on vehicle efficiency. Have we finally found the Achilles heel of the SUV?

[Source: The Detroit News, photo by Justin Sullivan/Getty]

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Continue reading Kelley Blue Book hands out 2008 Brand Image Awards

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Click above to view more pictures of the 2008 Honda CBR1000RR

Motorcycle design has been evolving over the years to the point that sportbikes of old look almost nothing like what's currently on showroom floors today. Full fairings add an aerodynamic look to the modern sportbike, although the basic mechanicals underneath remain the same. What's most interesting, though, are front end and headlight designs, which are what often differentiates one bike from another and gives a bike its character. It turns out that this unique look is sometimes designed to make people think of the bike as human. For instance, Honda's latest CBR1000RR has headlights designed to look like eyes with an abbreviated "nose" in between. By establishing a human connection, other drivers are more likely to notice the motorcycle, which is definitely a boon for safety, and it also gives the rider a connection to the machine making him or her feel that it is an extension of themselves.

Some motorcycles are purposely styled to look aggressive or mean, intimidating the rider and reminding them that their lives are on the line. It's not often that we think of motorcycle styling as a safety measure, but it's something we can appreciate. Still, there is a part of us that appreciates the elemental mechanical look of classic bikes that much of the industry has lost today. Fortunately, choices abound on the market, so there is surely a bike out there that will appeal to each individual rider.

Gallery: 2008 Honda CBR1000RR

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It seems like forever ago when rumors started about a merger between Sirius and XM satellite radio. The rumors were made slightly more official when the two companies announced the "merger of equals" last year. Where have we heard that before? Nobody expected this $4.2 billion transaction to be a sprint, as there are laws with tall hurdles designed to govern this type of business deal, but this conjunction has creeped like an overloaded Tercel up a steep grade.

For more than a year we've been sitting around watching these two companies as they worked on securing shareholder approval (accomplished in November) and the endorsement of regulators (um, not yet). Now we're getting word from Sirius CEO Mel Karmazin that there may be an end in sight. During a talk at the Bear Stearns 21st Annual Media Conference, Karmazin said he "took heart" in recent FCC comments that mentioned that the body aims to rule by the end of March. "The fact that it has lingered this long, it has been interpreted... as good news," Karmazin said. Gary Parsons, Chairman of XM Satellite Radio, added that he was also confident the Department of Justice and the FCC were moving forward "...in a timely manner."

With satellite radio in need of some more customers, let's hope they can quickly put this merger in the books and focus on more important issues like signal reception and more varied content.

[Source: Automotive News, subs. req'd]

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After Porsche moved to increase its ownership in Volkswagen to 51 percent last week, an overzealous German magazine took it one step further over the weekend by reporting that Porsche was going for an even larger piece of the pie... a whopping 75 percent. Porsche pulled in the reigns and quickly released a statement today denying the action, pointing out that such a move, "...overlooks the realities in VW's shareholder structure." For now, there is apparently no truth to the published reports that Porsche is going to continue gobbling up Volkswagen.

Maybe so, but analysts have pointed out in the past that the most economically advantageous position for Porsche is if it can get its hands on Volkwagen's multiple sources of income through a so-called "domination and profit transfer" agreement. Such an agreement usually requires owning - what do you know? - a 75 percent stake in a company. Interesting.

The enthusiast-oriented Porsche has said it needed ownership in Volkswagen to prevent the automaker from falling into unfriendly hands (roughly 30% of the parts used in Porsches come from VW, so it's just protecting its component parts sugar daddy). Meanwhile, Lower Saxony, the second biggest shareholder of VW at some 20% with some serious veto power, has the power to block any maneuver that jeopardizes the 82,000 VW jobs in its state. Stay tuned, this isn't the end of it.

[Source: International Herald Tribune]

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