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Throughout The Car Industry



Categories: Car News

Ford's Credit Rating Has Gone Up

On: Wed, Aug 4, 2010 at 10:52AM | By: Sherry Christiansen


Ford's Credit Rating Has Gone Up test 1-1

Ford Motor Company has received notice that the company’s credit rating increased by 2 levels by Standard and Poor (S&P), a division of McGraw-Hill that publishes financial research and analysis on stocks and bonds.

Ford is seen as being more profitable with a stronger customer base than it has in the past. S&P has raised Ford’s rating to a B+ from a B- due to the company’s financial picture showing “substantial” cash balances. Ford has “substantial” cash balances and likely will continue to generate free operating cash flow, the ratings firm said. The retail market has an “improved perception” of Ford's vehicles and its efforts to introduce more fuel-efficient models in the next few years, S&P said.

"The upgrade reflects our reassessment of Ford's business risk profile to weak from vulnerable, and its financial risk profile to aggressive from highly leveraged," said Standard & Poor's credit analyst Robert Schulz. “

“It's a step in the right direction,” said Kirk Ludtke, senior vice president of CRT Capital Group in Stamford, Conn. “It was largely anticipated. It will be a while before they get back to investment grade.”

Ford said it will have a positive automotive net cash position by the end of 2011, and although the company has substantial debt (partially incurred in order to allow the company to avoid bankruptcy), future cash flow looks promising. On June 30th the company had $21.9 billion in cash, and in the beginning of the second quarter, reported total cash assets at $34.3 billion.


BMW 5 Series Sales Boosts Company's Revenues While Earning Top Safety Pick

On: Wed, Aug 4, 2010 at 10:47AM | By: Sherry Christiansen


BMW  5 Series Sales Boosts Company's Revenues While Earning Top Safety Pick  test 1-1

The redesigned BMW 5 series is the first from the German automaker to receive the award for Top Safety Pick from the IIHS since rollover tests were added.

Top Safety Pick award includes recognition of vehicles that scored highest of Good on the front, side, rollover, and rear crash protection. In order to be a contender for first place in this award, a vehicle must have electronic stability control which comes standard (along with side air bags) in the 2011 BMW 5 Series.  

In the new rollover testing, that IIHS implemented recently, BMW scored a Good rating with a 4.40 score, which indicates that the new 5 Series will be able to withstand up to 4 times its weight on its roof. Not only is BMW moving up the ranks in reliability ratings for its vehicles, it seems that the company also reported the biggest profit in over 2 years as a result of increased demand for the 5 Series in the U.S. and China. 25,000 new 5 Series models have been sold by BMW just since the new 2011 Sedan has been available.


Cadillac Escalade Tops Most Stolen Vehicle List (Again)

On: Wed, Aug 4, 2010 at 9:42AM | By: Chris Weiss


Cadillac Escalade Tops Most Stolen Vehicle List (Again)  test 1-1

Popular culture is oh so quick to romanticize the high life behind rolling on chromed-out 24s in your Escalade, but it leaves out a glaring piece of the puzzle: the part about when you finish up sippin' Cris at the club and come out to find an empty parking spot where you're freshly washed Escalade was once resting. According to a new report by the Highway Data Loss Institute, Cadillac's biggest model is the most stolen vehicle on the road. In fact, the Escalade has topped the HDLI's list 6 out of the past 7 times, making it one of the more fleeting status symbols of modern times.

The HDLI's numbers are derived from the frequency of insurance theft claims and the size of payouts over the last three model years, so they don't necessarily include all cases of theft. The 2007 to 2009 Escalade was followed by the Ford F-250, Infiniti G37 and Dodge Charger with HEMI engine. Those four models averaged about 3 to 5 times more thefts than the average vehicle.

The vehicle group that experienced the most thefts according to the report is the extra large luxury SUV segment. Given that the HDLI's report takes financial losses into account, it's not surprising that large, expensive SUVs would be at the top.

Similarly, some cars made the list not so much for the fact that they were likely to get stolen but because the claims were significantly higher than average. The fifth car on the list was the Corvette Z06, which averaged a claim of $41,229--more than four times that of the Dodge Charger with Hemi.


VW Passat is Under Investigation Again for Engine Compartment Fires

On: Tue, Aug 3, 2010 at 10:41AM | By: Sherry Christiansen


 VW Passat is Under Investigation Again for Engine Compartment Fires test 1-1

In recent automotive news, Volkswagen is under investigation again (for the second time in the past 3 years) as a result of multiple reports of engines that actually caught fire secondary to ignition-coil failures in 2002 through 2003 Passat models. According to the National Highway Traffic Safety Administration (NHTSA), a new preliminary investigation has been opened by federal regulators in order to find any evidence that a formal investigation is indicated.

There are 16 reports by Passat owners stating that the vehicle hesitated or lost power when the ignition coil (which had been replaced more than once) failed, and the NHTSA reports that there may be as many as 199,000 total vehicles involved.  

One complaint stated: “While driving approximately 45 MPH, the vehicle began shaking violently and shut down in the middle of an intersection. The vehicle then skidded into an intersection and almost struck a child,” referring to a 2002 VW Passat.

“We take all of these investigations seriously, and we're working with NHTSA on this matter,” company spokesman Kerry Christopher said.

In the past an investigation of 2007-2008 Passat was conducted by federal regulators after owners lodged complaints about 78 crashes that may have been linked to the engine coil failures, over 400,000 Passats were recalled, and the investigation was closed after finding a damaged underbody heat shield that “may contact the exhaust system which can result in a vehicle fire.”  Other possible issues that were identified were leaky fuel lines or fuel tank ventilation valves that had the potential to cause fires.


 

Ford Sale of Volvo To Geely Final

On: Tue, Aug 3, 2010 at 9:52AM | By: John Welch


2011 Volvo V60 test 2

Having paid $6.5 Billion dollars for Volvo in 1999, one would think that FoMoCo would want to at least break even  . .. right? To US Automakers, getting rid of their European Luxo-Brands is breaking even. Just as GM lost its shirt on Saab, but is better without Saab, Ford is losing a truck-load of money on Volvo, yet doesn't seem to mind. Geely, coughing up $1.8 billion for Volvo, is saving $4.7 billion dollars. That certainly is a 'truck-load' of money.

“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely's ownership,” Alan Mulally, Ford CEO, said in a statement.

“At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world.”

Where did all this restraint and responsible thinking come from? Oh yeah, Boeing. It's as if Bill Ford Jr. invited Gordon Ramsey to Dearborn for an episode of "AutoMaker Nightmares." To quote Ramsey: "How can you open seven restaurants when your first restaurant is failing?!" So true with any business; Mulally is simply finishing a plan he set in motion that would create a profitable Ford without the overhead and production baggage associated with EuroBrands like Jaguar, Land Rover (both gone to Tata in 2008), Aston-Martin (the press says AM was sold to Proton, but we all know David Richards owns all of Malaysia, as well as a large portion of Wales), and now Volvo. Ford will retain Stephen Odell, former Volvo CEO, who will return to Ford as CEO of Ford of Europe. This leaves the door open for Stefan Jacoby to step in as Volvo CEO.


Jeep To Get Complete Facelift Over Coming Years

On: Mon, Aug 2, 2010 at 10:00AM | By: Chris Weiss


Jeep To Get Complete Facelift Over Coming Years  test 1-1

Beginning with the recent 2011 Jeep Grand Cherokee, Jeep's entire line will be getting new and updated models over the next three years. The new models will leverage platforms from Fiat and may include both crossover and Jeep pick-up models.

In terms of new offerings, Jeep will develop a small crossover model for a 2013 debut. That model will be built on a Fiat subcompact platform. Rumors have indicated that Jeep is considering a pick-up version of the Wrangler, but the company is still undecided as to the fate of that project. At the Easter Jeep Safari this past spring, Jeep and Mopar made some waves when they showed off the rugged Jeep NuKizer 715, a military-styled pick-up that sparked murmurs of a possible pick-up production model.

The next Jeep model up for a refresh is the Jeep Patriot. It is expected to get some minor exterior revisions in October, including a new grille. The model will be replaced by a Fiat-based model in 2013.


Obama to Announce Early Success of Auto Bailouts

On: Fri, Jul 30, 2010 at 5:12PM | By: Sherry Christiansen


Obama to Announce Early Success of Auto Bailouts test 1-1

President Barrack Obama traveled to visit Chrysler Group LLC and General Motors Company this week to attempt to sway the taxpayers into believing that the bailouts have had a positive outcome and will result in bringing a financial return. Recent polls have shown that voters are not impressed about the bailouts in general and they are currently unconvinced that the $84.8 billion rescue will result in a financial return. In fact, as many as 48% of the public polled are less in favor of the bailouts while only 17% are more supportive. 

Obama’s speeches will take place in the Detroit area GM and Chrysler plants in what he is calling “an industry revival that has saved millions of jobs," according to the Bloomberg News. In a preview of the President’s speech on ABC earlier this week President Obama stated: “We are going to get all the money back that we invested in those car companies.” The automakers’ recovery “tells a good story” about the U.S. economic recovery, he said.

According to the former head of the automotive task force (initiated by President Obama): “It appears that those of us behind it haven't succeeded in convincing people that it's worked.” According to Ronald Bloom, a recent appraisal of General Motors reveals that the company is worth about $60 billion, the same amount that it took from the taxpayers last year as a bailout.

Bloom also made comment about the number of jobs that have risen in the automotive industry since the bailout, stating, “If we hadn't have stepped in when we did, most observers believe at least a million jobs would have been lost.” All of the Detroit Three have reportedly posted a profit in the first quarter of 2010, and Ford Motor Company realized a net profit that was the highest in two years for the second quarter, a sure sign that the automotive industry is recovering. General Motors has already repaid $6.7 billion in loans and the U.S. hopes to recoup tens of billions of dollars more when the company conducts an IPO scheduled for later this year.

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President Barrack Obama traveled to visit Chrysler Group LLC and General Motors Company this week in order to attempt to sway the taxpayers into believing that the bailouts have had a positive outcome and will result in bringing a financial return. 

NHTSA Introduces More Rigorous Crash Testing

On: Fri, Jul 30, 2010 at 4:01PM | By: Chris Weiss


NHTSA Introduces More Rigorous Crash Testing  test 1-1

The National Highway Transportation Safety Administration has announced that it will begin more rigorous crash testing on 2011 vehicles. The agency plans to test 55 2011 cars and trucks under a tougher five-star rating system. The new system will include new tests and will present consumers with a single overall safety score for each vehicle for the first time. Information about vehicle safety features, like collision warning systems, will also be included as part of the new rating system.

In a press release, NHTSA Administrator David Strickland said of the changes: “For over 30 years, NHTSA’s 5-star crash testing program has been the gold standard for consumers looking to buy the safest cars on the market for their families. Now, this great program has gotten even better by making it easier to compare the safety performance of vehicles not only in terms of crash survivability, but in terms of avoiding crashes in the first place.”


Nissan Designs an Automobile That Provides Health Benefits?

On: Fri, Jul 30, 2010 at 3:18PM | By: Sherry Christiansen


The updated Nissan Rogue test 2

Nissan has recently issued a press release about a brand new concept in automotive interior features—a car that can promote comfort, as well as health and wellness for drivers and passengers.


Nissan Offers the Same 8-Year, 100,000-Mile Battery Warranty As GM

On: Fri, Jul 30, 2010 at 9:35AM | By: Chris Weiss


Nissan Offers the Same 8-Year, 100,000-Mile Battery Warranty As GM test 1-1

Last week, GM announced that it would offer an 8-year, 100,000-mile warranty on the lithium-ion batteries that power its upcoming Chevy Volt range-extending electric vehicle. Not to be outdone, Nissan this week matched GM's industry-leading battery warranty on the lithium-ion batteries in its upcoming Leaf electric vehicle. The two vehicles are set to compete for their share of the mainstream electric vehicle market beginning later this year.

Also announced this week, the Chevy Volt will cost over $7,000 more than the Nissan Leaf when it hits the market in November. The Volt will carry a base price of $41,000 while the Leaf bases at $32,780. Volt and Leaf buyers will be eligible for federal tax credits, cutting costs by as much as $7,500.

While the Volt will cost more, Chevy plans to offer a leasing option that is nearly identical to the Leaf's $349/month option. Chevy's lease agreement will cost $350/month over 36 months. Chevy will require $2,500 down, while the Nissan Leaf's 36-month lease requires $1,995.


Toyota Denies that it Will Discontinue the Sequoia

On: Fri, Jul 30, 2010 at 9:33AM | By: Sherry Christiansen


Toyota Denies that it Will Discontinue the Sequoia  test 1-1

In recent auto news, Toyota Motor Co. is denying the rumor that it will discontinue the Sequoia.The Sequoia is the largest SUV in the Toyota line-up, named after the tree that is known to grow to be one of the largest trees in the world. There are four versions of the Sequoia, each powered by the same 5.7-litre V8 engine, which puts out 381 hp. The engine is attached to a six-speed automatic gearbox driving all four wheels, not an economic fuel efficient vehicle by any means.

Rumor has it that the slow selling vehicle would be retiring soon, after the current model has expired, but Toyota has responded to those innuendos with a strong rebuttal, stating: 

“Toyota denies any reports of the discontinuation of the Sequoia. For obvious competitive reasons, Toyota does not discuss future product plans. Sequoia continues to be a profitable, high-quality vehicle for Toyota and several years remain in the life of the current generation. Our focus remains on building our vehicles, including the Sequoia, with the highest possible quality.”

There are four versions of the Sequoia, each powered by the same 5.7-litre V8 engine, which puts out 381 hp. The engine is attached to a six-speed automatic gearbox driving all four wheels, not an economic fuel efficient vehicle by any means.