Autoblog

The team over at SEMA, you know them as the group that supplies the automotive industry with aftermarket performance and cosmetic accessories, have asked more than 1,000 automotive enthusiasts how they intend to spend their federal tax rebate checks. Of course, we know what SEMA wants the answer to be...

Interestingly enough, most surveyed (21%) said they would use the money to pay down credit cards. Another large chunk (20%) said they'd bank the cash for now. Of those who said they'd spend the money on specialty automotive equipment, most intend to buy wheels, exhaust kits, cold air intakes, and engine performance accessories. From survey results, SEMA was able to determine most enthusiasts have altered, and delayed, buying specialty equipment due to the high cost of fuel. In fact, some of the hottest aftermarket performance parts right now are specifically designed to enhance fuel economy. We think you just found an excuse for that new CAI. Check out the press release after the jump.

[Source: SEMA]

If you ever wanted to put an Ford F-150 in your driveway, this summer may be the best time to make your move. As the new 2009 F-150 nears production, Ford is increasing its plant's output of the 2008 F-150 to ensure enough supply remains during July and August when plant production will be transitioning to the all-new model. The last time Ford took such measures was back in 2003, when it sold the F-150 "Heritage" alongside its replacement. Things have changed, however, as there are now only two plants producing the F-150 (compared to four in 2003), and the economy isn't nearly as strong.

There is a fair amount of risk involved during a model change-over for a vehicle with such high sales and production numbers (Ford sold about 414,000 F-150s in 2007). On one hand, Ford needs to keep dealers from drying out during the production slow-down. On the other, the last thing dealers need is a surplus of 2008 models just as the 2009 models arrive. It is a delicate balancing game between supply and demand.

With production ramping, supplies are already up. As of March 1st, Ford had an inventory of 200,000 F-series pickups (a 96-day supply). Last year at this time, it had 176,200. Inventory isn't the only thing on the rise. In a move that will benefit consumers, financial incentives are skyrocketing. Compared to this time last year, incentives are up by $733 to a whopping $4,514 per truck. Nothing sounds sweeter to consumers than high inventory levels combined with substantial incentives -- if you are in the market for a new F-150, this is music to your ears.

[Source: Automotive News, subs. req'd, Photo by Tim Boyle/Getty]

After a controversial two-year run, the Canadian government has announced their ecoAUTO rebate program will be ended next year. The ecoAUTO plan offered a $1000 to $2000 CDN rebate to owners of new cars that consumed gas at a rate less than 6.5 l/100 km. Although the ambitious plan sounded like an excellent way to reward drivers of frugal transportation, the mathematical line in the sand snuffed those whose vehicles were still very efficient, yet just under the threshold.

One of the most vocal protests came from Honda. Unfortunately for them, their Canadian-market Fit was "unfit" for the rebate, yet the competing Toyota Yaris was approved. It didn't take long for the Japanese automaker to call out the Ottawa government in protest. Honda took their message public, and even offered their own version of the rebate to match the government's offer.

To mend the wounds of this green-rebate-gone-awry, the Canadian government has pledged $250 million to the auto industry for the development and research of environmentally-friendly technologies.

[Source: Autoblog Green]

It looks like Chrysler is going to give car shoppers a holiday gift as incentive to signing on the dotted line. After a rough year that saw the automaker break away from its Daimler overlords, Chrysler wants to end 2007 on a high note. To that end it will be offering rebates on virtually every vehicle in the lineup during December. Though there's no word on specific amounts, according to The Wall Street Journal the campaign will begin with a series of ads on Nov. 20 and cover Jeep, Dodge and Chrysler vehicles. The biggest discounts will likely be offered on the four models about to be discontinued: the Chrysler Pacifica, PT Cruiser convertible, Crossfire, and the Dodge Magnum. If any of those has been on your short list, it looks like a great time to get one.

[Source: Automotive News, sub. req.]

Autoblog regulars will remember the ongoing feud between Honda Canada and the Canadian government. The conflict centers around Ottawa's new budget that contains the ecoAuto program, which offers between $1,000 and $2,500 rebates on certain fuel efficient vehicles and up to a $4,000 penalty on gas guzzlers. The Honda Fit, which is very popular in Canada, missed the cutoff for being eligible for a rebate because it consumes 6.6L of fuel every 100 kilometers, just one tenth of a liter more than the federal criteria for the rebate. The Civic misses the mark, however, by one-third to a half liter every 100 kilometers.

Honda threw a fit at what it saw as a federal endorsement of fuel economy over safety, as well as the unfair advantage it gave to competitors like the Toyota Yaris, which did qualify for the rebate but performed less well in crash tests. Honda even went so far as to offer its own $1,000 rebate on the Fit in protest.

In the meantime, Honda engineers have been going over the Fit to eek out a few more miles per gallon, and they've done it on the Fit equipped with a manual transmission. While confirming that they did not reduce the vehicles weight by deleting safety options to achieve the fuel savings, Honda was mum on exactly how it was achieved except to say "internal tinkering" was involved.

Unfortunately, it doesn't look they'll be able to perform the same miracle with the Fit that's equipped with an automatic, though in Canada the manual Fit sells more anyway. The Civic, which is less fuel-efficient than either Fit, has pretty much no hope of ever meeting the governments criteria for the rebate.

Thanks for the tip, Steve!

[Source: The Star]

Few vehicles have received more negative press in such a short period of time as the 2007 Toyota Tundra. Plant cost overruns, four star crash ratings, camshaft issues, and a series of rebates have shown that the mighty Toyota is fallible after all. Well, it seems the bad news just keeps-a-coming, as vastly improved May sales weren't enough to stop even more rebates.

Now if you want to get your hands on a new Tundra, depending on the model, you can get up to $3,500 off the sticker or zero-percent financing for up to five years, or $500 off the down payment on a three-year lease. There is no more competitive segment in the automotive world than full-size pickups, and we're seeing evidence pile up that the Tundra just isn't up to the challenge. While the Tundra's new engine is second to none, the rest of the truck has a way to go.

[Source: AOL Money]

Thanks for the tip, Voss!

Honda's Canadian subsidiary is facing an interesting choice: fuel economy at the expense of safety.

New federal regulations recently passed in Canada award a $1000 rebate for cars that fall below a fuel consumption threshold, set at 6.5 liters per 100 kilometers in that wacky metric system. While the competing Toyota Yaris tests at 6.3l/100km, Honda's smallest offering, the Fit, sits just on the line at 6.5.

Honda figures the differential is created by the host of safety features – including more air bags and anti-lock brakes – which it includes with the Fit which do not come standard on the Yaris. Strip the safety features out, however, and Honda is confident the extra weight saved would bring the Fit below the limit and qualify for the federal rebate.

The question is surely not unique, as carmakers face similar issues in different markets around the globe. But it casts light onto the whole question of safety versus economy, even before cost considerations come into the picture. For your dime, and for your planet, is it worth sacrificing your safety?

[Source: Windsor Star via Vancouver Sun]

At first we thought it had to be a mistake. General Motors is already paying customers to take the 2008 Buick Enclave off their hands? It's not even on dealer lots yet, but Automotive News reports Buick is offering $1,000 "Conquest Bonus Cash" and 4.9% financing available on the $32k+ CUV.

Though the "Conquest Cash" is intended to draw non-GM-driving customers away from the competition, no matter the name, rebates on brand new vehicles are obvious admissions of overpricing that only enforce car shoppers' addiction to cash-back offers. If the Enclave performs as well and is as reliable as it is gorgeous, it shouldn't need any incentives.

On the other hand, a drop-dead body and cash back could be irresistable to all but the most diehard import buyer.

[Source: Automotive News (Sub. Req.)]

The Canadian government's new proposed budget includes both a $2,000 incentive for buying fuel efficient vehicles like hybrids and a $4,000 tax for purchasing less efficient models like SUVs. Unfortunately, the Detroit News article doesn't specify how the budget determines what vehicles qualify for the fuel efficiency rebate and which get dinged with the heavy tax.

What affect the Canadian government's new budget will have on car buying habits in the country is unclear, as Canadians don't buy many SUVs to begin with – only around 15,000 in 2006. At the same time, the environmentally-inspired incentive/tax combo may serve to irritate the very automakers that are deciding which plants they can afford to idle or shut down completely, many of which are located in Ontario.

The plan also has plenty of loopholes that can be used to get around the tax. For instance, it doesn't apply to used vehicles, so Canadians can freely buy year-old HUMMERs for significantly less than a new one. There's always the option of driving south to purchase a car in the States, as well, though we're not clear what mess of paperwork that would create to own and operate it back in Canada.

You can read all the details about Canada's new budget and how it affects the auto industry here.

[Source: The Detroit News]

Toyota has apparently instituted a nationwide cash-back deal for the base model Toyota Tundra pickup that will send $1,500 back into the pockets of potential owners. According to the Wall Street Journal, the rebate will last the entire month of March. KickingTires is reporting that Southeast dealers in Alabama, Georgia, Florida, North Carolina and South Carolina are offering the full $1,500 rebate, while other dealers around the country will offer from between $250 to $1,000 cash back.

Though many will use this news as ammo against Toyota and its effort to crack into the full-size truck market, it's not that big of a deal considering the rebate is focused on what is likely the least popular model in the Tundra lineup, the base model. Also, Ford was forced to offer a rebate on its much hyped Edge CUV shortly after it was launched for the same reason. In the same breath, we have the urge to tell Toyota "told ya so!" Clearly, it's proving more difficult than Toyota realized to nab new truck buyers. The automaker even revealed to the Journal that it was concerned it will not reach its goal of selling 200,000 units in the Tundra's initial year of availability. We've got two words for Toyota if it wants to boost sales of the Tundra: "Tough Box"!

[Source: Wall Street Journal (sub. req'd) via KickingTires]