Autoblog

We knew the auto industry was in bad shape and it didn't take long to extend its poisoned-tipped tentacles into the world's automotive juggernaut. In August came news that the Japanese automaker had cut its sales forecast for 2008 from 10.4 million vehicles to 9.7 million. A Japanese newspaper, though, says it expects Toyota to only sell 8.3 million for the year. If true, it would be the company's first year over year sales decline in a decade.

The Nikkei Daily (subscription required) doesn't back up its prediction with any sources, but we'll know how close to the truth they get come in January when Toyota announces official sales numbers.

[Source: Nikkei Daily via The Associated Press via Yahoo News]

Vehicle owners behind in their payments and faced with mounting debts have begun taking matches to their cars and trucks in an effort to stop their payments and collect the insurance settlements. Unfortunately, in most cases the attempts backfire (pun intended). According to police, when delinquencies on auto loans rise, owner-involved arson jumps as well. Between 2004 and 2007, "potential owner give-ups" (most of which involve torched vehicles) nearly doubled nationally. Distinguishing between an actual theft-and-burn and an owner-induced arson is the job of investigators who often find such cases easy to crack.

For example, recently a pair of Chrysler Pacificas were burned and it just so happens that that particular model was only reported stolen 98 times across the nation this year – the so-called "theft" raised more than a few eyebrows at headquarters. In another case, a Yukon owner claimed his truck was stolen and burned overnight. Police knew that the thief likely had the keys (Yukons are especially difficult to hot-wire) so their focus was immediately turned towards the owner who had conveniently left "two cans of gasoline" in the back. In yet another case, the late-paying owners had significantly lowered their deductible just days before the reported theft.

Over their heads in debt, fraudulent owners choose arson because the burned-out vehicle shells are often found immediately by authorities, and the insurance companies settle and disburse payments quickly. That is, assuming they haven't fallen behind on their insurance bills as well! Thanks for the tip, Ben!

[Source: Washington Post, photo by Maryland State Fire Marshall]

Simply put, the U.S. economy is in the crapper. Stocks are yoyoing and our mortgages are a fraction of what they were even a year ago. For all that's fiscally wrong here in the States, there is one pleasant side effect: the price of a barrel of oil is dropping faster than Kimbo Slice against a two bit hack. Oil dropped 6% in trading on Monday, bringing down the price of a barrel of crude to $87.81. Black Gold has been on a downward trajectory since July 11, when it peaked at $147 per barrel. Since then, demand has weakened both in the U.S. and China, with demand slacking so badly that the Communist government hasn't purchased any oil in two months, and it's even selling some of its stockpiles.

While demand for oil is down to where it was eight months ago, OPEC is watching with a wary eye. The oil consortium, which on several occasions has increased oil production over the past year, is likely to slash production when it meets again in December. In the short term, industry experts are predicting that gas prices will drop below the $3 mark by November 1, which will make for one piece of good news in an otherwise lousy news cycle.

[Source: Reuters]

Even for utilitarian transport, the Colt is a fine looking vehicle – Mitsu's new grille is a one-size-fits-all beautifier, and there are some nice details around the car. The dip in the headlights isn't original, but it's executed with a flavor of its own. Inside it's plastic city and several bolts of cloth, but again, while there's nothing exactly special about it, there's nothing that would make you go "Ugh." The Colt Ralliart edition (above), however, is a treat. The details outside don't change much save for a wheel finish and a larger tailpipe, but the massively bolstered leather seats completely remake the interior. Check out the press release on the new Colts after the jump, and the galleries below: one of live shots, the other a massive folder of press shots that even includes some vintage Colt rally action.

Kia's will have at least two new tricks at the Paris Motor Show, one of them being the Kia Soul. The other will be a Kia cee'd gas-electric hybrid. Already available in coupe, 5-door hatch, and sportwagon variants, a hybrid addition based on the five-door would be a perfect addition to the line. So far, the only details we have is that the c'ee hybrid isn't planned for sale until 2010, when it will join a train of new hybrids from other makers. Kia apparently decided that is when they'll be able to sell enough of them to make a profit. But we will get the complete scoop on it at next week's Paris Motor Show, so you won't have to wait that long.

[Source: Kia World]

Click above for high-res gallery of the Kia Forte

The Kia Forte has been caught out again, this time in more press photos and the official Korean-market brochure. The 2009 Spectra replacement is a looker... even if it borrows some of those looks from other vehicles. Regardless, those shapely front fenders, strong shoulder line that terminates into the A-pillar and concave space right above the sills are definitely elements not usually found in the economy car class. The car will probably come to the U.S. with a slight price bump over the $13,000 Spectra, but there'll be more power, space, and fuel economy to go with it. Check out the gallery of hi-res photos below, and if you read Korean and see anything newsworthy in the brochure feel free to let us know in the comments.


[Source: Carscoop]

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]

Consumers prefer cup holders and heated seats over fuel efficiency, according to CNW Marketing Research. That's right, we all talk about how we want our vehicles to be environmentally friendly and easy on gas, but when it comes down to it, what we really want are things to hold our coffee and keep our derrières warm. On the plus side, General Motors is saying fuel economy is becoming more of a priority to shoppers – it points out that four years ago it wasn't even in the top ten (studies by GM list fuel economy behind styling and value). So, what is it going to take to wake up consumers and make fuel efficiency a priority? Most experts feel that a significant hike in the cost of gas will be the kick that sets us straight. Just don't take away the cup holders.

[Source: Forbes via AutoblogGreen]

The economy appears to be swooning, and before we land softly (or crash hard), company's have begun to circle their wagons and reduce unnecessary spending. This often translates directly into reducing advertising budgets. It's tough for an automaker to skimp on engineering and we've all seen what happens when beancounters design an interior. Advertising, however, is low-hanging budgetary fruit. Hyundai's concern over the U.S. economy is a motivating factor in the automaker's move to reconsider its pricey Super Bowl advertising.

Hyundai announced in October that it would be burning $5.4 million dollars for a mere minute of TV air time, committing to two spots during the February 3rd broadcast. Now, Hyundai's Chris Hosford tells Automotive News that they're looking at the strategy and asking themselves if that's the best use of their ad budget for the first quarter. Superbowl spots are usually expensive to produce, too, as the commercials stand a chance of garnering more banter on February 4th than the actual game does if they're interesting. Hugely expensive airtime and humongous charges from their agency all for just a minute of TV? Yeah, we'd be taking a second look, too.

That brings the total number of automakers advertising during the Super Bowl down to three: Chevy, Audi and Toyota. Oh yeah, we'll be watching.

[Source: AutoNews - sub req]

Detroit's sharp intake of breath over the very real possibility of increased federal fuel economy standards apparently doesn't include Chrysler's voice. CEO Robert Nardelli has told The Car Connection that rather than waste lots of time and energy opposing the likely increase to a 35 mpg fleet average, Chrysler will put its head down and get it done. Attaining the goal will not be without pain, however. Cuts will be made, and the books are still in the red.

There is hope, though, if Chrysler and parent Cerberus Capital can stick it out. A new contract with the UAW eases some of the automaker's financial burden, allowing that money to be plowed into development of more fuel efficient vehicles. There's a new two-mode hybrid system, co-developed with Daimler, GM, and BMW, which should help lift the fleet average without Chrysler abandoning their bread and butter moneymakers. With a lineup heavy in less-frugal vehicles like SUVs, trucks, and minivans, Chrysler's acknowledged the holes in their product mix and will set about plugging product into the voids. First up is the new Journey, the company's first crossover vehicle. The CUV segment is red-hot right now, so having a model to sell is a plus. Having a good model that will continue to sell well is an even bigger plus. At this point, Chrysler's facing an uphill climb.

[Source: TCC]