Hybrid sales increase, but some eco-drivers are disappointed

Paul A. Eisenstein , The Detroit Bureau – 4 days

Demand for hybrid and battery-operated cars may be increasing – the Toyota Prius accounted for 3.1 percent of the total U.S. new car market last year – but that doesn’t mean car buyers are trading in their eco-cars for another “green” model.

According to industry reports, only about one in three hybrid owners buy another gas-electric model when they trade in.

Not that demand for eco-cars has waned: Green car buying set an all-time record in 2012. Sales of the ever-popular Toyota Prius increased 49 percent year-over-year from the 2.2 percent market share in 2011.

But demand continues to lag proponents’ expectations. It appears all but certain that the Obama administration’s goal of having one million plug-ins or BEVs on the road by the end of 2014 won’t happen. Pricing and range limitations remain critical factors.

One reason appears to be the ongoing gap between the mileage that manufacturers claim and reality on the road. That has led the EPA – which oversees fuel economy testing – to revise its ratings process several times over the past decade. Further revisions are now under discussion.

The hybrid car owner falls into a specific category of buyer, Experian Automotive research has found – beyond just their eco-sensibilities.

According to Experian, the typical hybrid buyer’s loan came in at $25,807, compared to $26,691 for the average new auto loan last year. They also scored an interest rate of just 3.51 percent, compared with 4.36 percent for the average American auto buyer.

“Hybrid vehicle owners have long been perceived as environmentally-conscience consumers,” said Melinda Zabritski, Experian’s director of automotive credit. “While they may have made the vehicle purchase due to caring for the environment, our research shows that hybrid owners are economically minded as well. Hybrid owners tend to have outstanding credit histories, which also has enabled them to obtain financing at lower rates than typical consumers.”

The 10 most popular hybrids – at least those financed rather than purchased outright:

1. Toyota Prius -- 37.2 percent

2. Toyota Camry -- 8.9 percent

3. Toyota Prius V -- 8.6 percent

4. Toyota Prius C -- 8.1 percent

5. Chevrolet Volt -- 6.3 percent

6. Hyundai Sonata -- 4.8 percent

7. Lexus CT 200h -- 4.2 percent

8. Kia Optima -- 2.7 percent

9. Nissan Leaf -- 2.7 percent

10. Lexus RX 450h -- 2.3 percent

What’s significant about the 2012 Top 10 chart is that it includes two advanced battery models for the first time, the fifth place Chevrolet Volt plug-in hybrid and the battery-electric Nissan Leaf, in ninth.

Analysts expect that demand for all forms of battery-based vehicles will continue to grow in the coming years, if for no other reason than the steady increase in available products.

Most major manufacturers now offer several conventional hybrids and by the end of next year almost all plan to have plug-ins and pure battery-electric vehicles, or BEVs, in their showrooms, as well – though some may be limited to select markets, such as California.

Copyright © 2009-2013, The Detroit Bureau

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FBI agents want to increase the volume on battery cars

Paul A. Eisenstein, the Detroit Bureau

The press start in the new Ford focus electric, and you might think that nothing - not happened when you notice that the Flash of lights and gauges on the instrument panel. For many buyers, one of the great advantages of the art is how battery-based vehicles can operate almost silently.

But there are also a number of critics, in particular, the National Highway Traffic Safety Administration, who believe, there are also downsides, electric drive, especially when working in a crowded urban environment where pedestrians can hear not the vehicle coming.

Now called the NHTSA car manufacturer, amp, the noise level. The Federal Agency has proposed a new rule requiring that such vehicles at speeds below 18 miles per hour, which especially those with impaired vision, hearing noise pedestrians, enough about the normal DIN of a city street.

The pedestrian safety enhancement Act is approved two years ago by the Congress between gradually to the model year 2016. Decided to set a minimum noise level, NHTSA manufacturers give a wide berth with individual sounds come, which they feel could best fit your brand and product.

"Our proposal manufacturer would allow for design flexibility, different tones for different makes and models, and offers to recognize at the same time an opportunity for pedestrians, cyclists and visually impaired and to detect a vehicle and a decision about whether it is safe to cross the street, is", said NHTSA Administrator David Strickland.

The announcement of the new rules comes at a time when there are disturbing signs that are collisions with pedestrians on the rise after years of decline. August last year reported NHTSA pedestrian fatalities in 2010 - which last year for the full data - analyzed 4% 4.280 with an another 70,000 Americans injured rose to. That accounted for 13% of all road deaths compared with 11% between 2002 and 2007.

The proposal is expected to be about $35, to the cost of a typical battery-based vehicle $23 million annually add or. However, she gained initial praise, from the Alliance of automobile manufacturers in particular for its flexibility. While vehicles, battery-based account for a tiny fraction of the American vehicle fleet, there are concerns that plug-in the and the situation could grow to electric vehicles as the number of hybrids, worsen without warning a solution for pedestrians. NHTSA analysts estimate that a hybrid vehicle is 19% more are driven at a pedestrian as a vehicle of a conventional internal combustion engine. And there is an increase of 38%, the collisions with bicycles.

"The Alliance with national Federation of the blind and others will continue", said a spokesman, "to work towards, that the model for an international security standard." "In the coming weeks we will examine draft technical elements to ensure that the standard meets the needs of the blind and take into account the appropriate consideration of concerns regarding the overall level of the ambient noise."

NHTSA, which began in 2007 the problem studied, a common, worldwide standard works with regulators in Europe and Japan on the target.

The Agency believes the use of warning tones could the number of pedestrians and bicycle reduce collisions by about 2,800 a year.

A three year period could begin in September 2015 with the start of the model year 2016.

Some battery-vehicles such as the Nissan leaf, tones emit warning already, if in reverse order, some also the driver warning tones switched on during the regular urban ride operated.

Exactly what kind can be selected by sound makers, remains to be seen. It might be enough to back up beeping from trucks on the simulated sound of the conventional gas-powered vehicles from the noise. A few years ago, company of Brabus demonstrates European tuner multiple options on a smart fortwo electric drive. In a mode sound the mini car, it had a V8 engine, hidden speaker roar when stomped the driver on the accelerator. One more alternative sound as warbling of the flying car driven by the family space age in the TV cartoon series "The Jetsons."

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Automakers rein in incentives as sales increase

One unfortunate byproduct of strong sales in the new-car market is that automakers’ are able to rein in their incentive spending. According to Edmunds.com, incentives — including cash rebates and cut-rate financing — are at their lowest levels in nearly seven years.

New-car sales incentives averaged $2,071 in April, which is down 2.2 percent from March and 1.8 percent less than last April’s figures. “This is the clearest indication yet that consumer motivation is high and that automakers feel little pressure to rely on incentives in order to keep sales churning,” says Edmunds.com senior analyst Jessica Caldwell. “We’ll likely see incentives linger at these low levels until auto sales ease off the torrid pace we’ve seen so far in 2012.”

Still, we culled through car makers’ websites and other sources to find a robust assortment of top-dollar deals in effect through the end of May, particularly among larger cars and trucks, which we’re highlighting in the accompanying slide show. Among them is an unbelievable $100,000 direct-to-dealer rebate on the Maybach Type 57 and Type 62 ultra-luxury sedans. That’s more than 25 percent off MSRP on the $376,300 Type 57 model, which is a staggering discount in a market segment where price is rarely a consideration.

Given the cost of gasoline and other economic factors you won’t find many great deals among the smallest and most fuel-efficient models these days, which (with the exception of a few industry laggards) are selling well enough on their own. Edmunds.com says that subcompacts were discounted by only an average 2.2 percent last month, with compacts being sold at 4.5 percent below their sticker prices. By comparison, models in the large car segment boasted the deepest discounts last month, selling at an average 13.2 percent off MSRP. The full-size Chevrolet Impala sedan is being offered with as much as $5,500 in incentives depending on the model this month, which is one of the richest among all vehicles this side of the aforementioned Maybach land yachts.

As always, we’re highlighting direct-to-consumer cash rebates, discounted financing promotions and so-called marketing-support incentives, which we call additional dealer discounts. Typically favored by luxury automakers, the latter are cash allowances given to dealers to lower the prices on select models without seeming to cheapen the brand by offering cash rebates. The only catch is that a dealer may or may not automatically pass them on without some hard-nosed negotiations.

Though we aren’t documenting them here, some of the best deals out there are available to those who prefer to lease, rather than buy a car outright. Those who don’t mind making a perpetual car payment will be able to avail themselves of some sweet deals throughout 2012 because of record high resale values and ultra-low interest rates. For example, the midsize Honda Accord sedan is being offered at just $250/month for 35 months with zero due at signing. Going further upscale, a Jaguar XF luxury sedan is leasing at $599/month for 36 months, with a Land Rover Range Rover Sport luxury SUV going for $799/month for 36 months, both with $3,995 due at signing.

The fine print
Additional incentives may apply, such as those often offered to recent college graduates and members of the military and/or owners or lessees trading in same-brand or competing models. Offers may vary by region and are subject to subsequent modification or termination by the manufacturer; cited financing rates are typically open only to qualified buyers with top credit ratings and may vary based on eligibility.

And no matter how great a rebate deal you may be offered, keep in mind that the final transaction price is always open to negotiation. We expect dealer discounts on any of these vehicles will be substantial for hard-nosed hagglers. Be sure to aim for the so-called invoice price as a target, and that’s before deducting any applicable rebate or additional dealer discount.

© 2012 Forbes.com

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Ford, Toyota worldwide increase quality survey

DETROIT - Ford Motor Co ranking in a closely monitored quality survey fell just one year after topping all mass market brands such as problems with new technology of manufacturer's injured.

In a reversal of Fortune Japanese automaker Toyota Motor Corp. namesake brand, which fell last year to its lowest ranking thanks to a number of harmful callbacks, moved a corresponding rebound, according to an influential study of U.S. consumers Thursday by j.d power and Associates published.

Ford, the only U.S. automaker to avoid bankruptcy and a Government bailout brand saw his namesake film 23rd-its lowest point in a Jahrzehnt--after all mass-market brands last year in 5th place, his highest ranking ever. Toyota had a rest on 7 of 21 in the last year. 25. In 2001, the Ford was the last time lower classified.

"Ford leader, at least in the mass market who try new technology in vehicles to bring," said David Sargent, j.d power Vice President of global vehicle research. "Comes with the some of the risks that it be unforeseen problems, and that's exactly what happened."

"It gives you the parity between the different vehicles and different brands much, so if you have a major problem in a specific area, that can really set on the rankings back," he added.

Toyota Lexus luxury brand captured the top spot by 4th promoted last year. Namesake and Acura brands, Daimler AG, Mercedes-Benz, Mazda, and last year's leader, Porsche followed by Honda Motor Co Ltd.

The j.d. Power study of records exposed to difficulties in the first 90 days total cost of ownership-new car owners, was carried out between February and may of this year.

The results of the survey, the most comprehensive benchmark of new car quality, are heavily used in the auto industry marketing and are considered influential in shaping consumer perceptions. It is also as a barometer for resale values and regarded as a proxy for warranty costs.

Ford customers that is too complex or sometimes function untuchtig car manufacturers of audio and internal control systems found, said Sargent. "It is not so easy to start a car because of a computer."

Mark fields, President of the Ford of the Americas, said on Tuesday before the release of the survey, that the quality of own vehicles in his series "would be mixed reviews for the year" "improved after down from" last year.

Ford was dinged early in this year when influential magazine of consumer reports has no "recommended" rating their SUV Ford Edge and the Lincoln MKX converted due to the complexity of the MyFord touch and given the MyLincoln-touch systems.

Ford has acknowledged these problems, so software changes and make offer training Ford dealer customers. He said also Tuesday it is working to simplify the use of voice-control systems in vehicles and improvements on some of its drives.

"As we in our own internal reporting problems see, we all jump on it and quickly resolve them," said fields.

On average in the industry, U.S. consumers reported 107 problems per 100 vehicles sold, an improvement of 1.8 percent from 109 issues said in the past year j.d power.

However, said the industry average for new or heavily revised vehicles slipped 10 percent to 122 problems per 100 vehicles, j.d. power. The decline is very strong in the engine/transmission and audio/entertainment/navigation categories.

Software to improve fuel efficiency sometimes leads to engine or transmission "hesitate" when accelerating or changing gears, said j.d. power.

Meanwhile issue awards in the category audio/entertainment jumped 18 percent, as many consumers complained to free their hands or voice activation systems were not intuitive or did not always function properly.

U.S. automakers in recent years has led strongly in a bid to close the gap with the Japanese car maker, Toyota and Honda, which had established a reputation for the Elimination of the shortcomings of engineering and production.

General Motors co Cadillac luxury and GMC truck brands that were only under U.S. automakers exceed the industry average is on the ninth and tenth places. Only the top-10 brands in the survey topped the industry average.

GM Chevrolet and Buick brands on 14th and 20 32 brands measured.

Ford brand ready Lincoln 17th, while the Chrysler brands namesake, RAM, Jeep and Dodge 16, 22, 25 and 32, classified.

Copyright 2011 Thomson Reuters.

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GM Volt production to 60,000 per year to increase

DETROIT - General Motors is the plant reconfigure, the power of the Chevrolet Volt production will be extended to up to 60,000 electric cars per year.

The Detroit-area plant, which will shut down next month, can produce around 16,000 per year.

GM said electric cars short supply for the next three months because of the shutdown process four weeks will be starting in June. But by moving in new machines and overhead conveyor, the company able to increase the attachment the Volt and European counterpart, the Opel Ampera issue.

"We better be meets in the location of the enormous demand," said Landy Cristi, marketing director of the Volt in a statement on Wednesday.

The Volt runs on battery power for 35 kilometres before a combined starts engine to generate electricity. It can be charged via a home outlet. The car costs little more than $40,000 but is eligible to a tax credit of $7,500.

The Volt hit the US market late last year and slightly more than 1,700 to April have been sold. The car is now available in nine States and Washington, D.C. until the end of this year are sold throughout the country and in Europe, China and Canada Volt.

The Volt factory lies on the border between Detroit and the small town of Hamtramck between.

The company has distributors all volts, orders that the plant will produce GM this year spokeswoman Michelle bunkers said Wednesday.

The shutdown will be add equipment which 2013 medium-sized sedan Chevrolet Malibu build in the next year at the factory also GM. Stop GM the Cadillac produce two other large cars in the factory, DTS and Buick Lucerne, this year.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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Fiat, Chrysler participation can increase over 70 percent.

Italian automaker Fiat SpA to its stake in Chrysler Group LLC to more than 70 percent with a number of options, including purchase of Treasury involvement boost.

Fiat can buy the Ministry of finance participation period of 12 months the repayment of loans, which the US Government, that come from its 2009 bailout, owes Chrysler said in a filing with the U.S. Securities and Exchange Commission on Monday.

Chrysler owes about $7.5 billion in loans in the United States and Canada, and the U.S. based automaker intends to repay the loans until the end of June, the company has in the past month.

As part of the Chrysler 2009 the Treasury bailout deal gave Fiat management control and a 20-percent stake in Chrysler. Treasury officials put a series of tests and options that its stake to 51 percent increase allowed Fiat.

Fiat, a 30-percent stake has now to Chrysler to take two tests this year. After the refinancing deal jumps Fiat stake to 46 percent.

2009 Left open the possibility for Fiat agreement, over 51 per cent increase its stake in Chrysler. Monday's filing was finer details on how the Fiat could do.

Fiat also has, up to 40 percent of the quota the healthcare trust connected buy United Auto workers, known as the VEBA, which, Chrysler said in the filing.

Fiat may exercise an option to a part of that purchase of VEBA July 2012 and until end of 2016 held shares. The company can purchase up to 8 percent of VEBA shares once every six months, according to the submission.

The US Treasury has currently 8.6 percent of Chrysler, while health workers Union has joined trust with the United Auto a 59.2 percent stake.

The Government and the Union will further fall interests after Chrysler pays its Government loans set.

Analysts and bankers have said the strengthening relationship between Fiat and Chrysler which has US automobile manufacturers for potential investors would make more attractive.

As soon as Fiat majority ownership, you can most appoint Chrysler's Board of Directors and the timing can directly events, including a possible initial public offering, Chrysler, said in the filing.

Copyright 2011 Thomson Reuters.

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