Japanese earthquake leading to widespread shortages

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Posted in Ford

The Japanese earthquake has had widespread effects on the automotive industry, even causing some American manufacturers to stop production due to a lack of parts.

Prices on some popular Japan-only models, like the Toyota Prius, have spiked in recent weeks. Meanwhile, automakers have told dealers and shoppers not to panic and remain optimistic about resuming production. However, several analysts told The Associated Press that the effects of the quake were just beginning.

"This is the biggest impact ever in the history of the automobile industry," Koji Endo, managing director at Advanced Research Japan, told the news source.

The problem isn't so much the major factories – those are almost all back online. It is the parts manufacturers that supply everyone from Toyota to GM are still in question. Some have yet to be contacted. Without key parts, production can't continue.

According to the news source, prices will likely spike over the next few weeks as dealers face an inventory shortage. Dealers may also end up running low on certain trim levels or colors. For example, Ford has put the brakes on black versions of its Expedition, Navigator and F-150 models, taking no further orders on those.

The lack of supply could mean some high prices for vehicles over the next few months. Those who were considering purchasing a new or used car may want to head over to New Jersey State Auto Auction before prices skyrocket. 

AAA’s TripTik app reveals nearby gas savings

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Posted in General Auto News

AAA has announced the release of a new app designed to help drivers take advantage of low fuel prices, as the program reveals the closest gas stations and displays their pricing information.

The company's new TripTik Mobile app is aimed at consumers looking to save every penny possible as some gas prices skyrocket to more than $4 per gallon. Users with an iPhone will be able to download the app for free and use its GPS-integrated capabilities to locate nearby gas stations. The pricing information effectively allows consumers to comparison shop without stopping to check the signs at every station. Additional features allow users to sort by fuel grade and distance.

Also included in the app is support for nearby hotels and restaurants. The program will identify local points of interest and use AAA's nationwide "Diamond Ratings" system to display info about each place.

AAA has released two previous mobile apps in the past – one which showed locations that accepted the AAA discount card and another that integrated with the company's roadside assistance program. Unlike those apps, however, TripTik users don't need to be a AAA member to take advantage.

The new program should help drivers save some money at the pump, but if they want to really save on automotive costs, they may want to make their next purchase at New Jersey State Auto Auction.

Japanese automakers recovering from earthquake effects

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Posted in Auto Industry News, Toyota

After the devastation of the March 11th earthquake forced many automakers to suspend production, speculation has run rampant over what the effects would be on the auto industry. Some analysts believe that the disaster will amount to nothing more than a minor hiccup, while others predicted some major shortages for popular models.

Several of the big-name Japanese automakers recently provided updates on their production schedules in the wake of the disaster. Toyota has announced that it will resume production on the Prius and two Lexus hybrid models based on the same platform, somewhat quelling fears of a shortage on the popular hybrid. The automaker predicts that some U.S. plants may have to shut down temporarily, however, as getting parts to the factories may be difficult.

Nissan, meanwhile, is telling its dealers to expect normal, routine service from the company. The automaker is taking orders for May as normal and doesn't anticipate any delays in the delivery of models. The company also says that most dealers have a healthy stock of Nissan and Infiniti vehicles already.

Honda is continuing to suspend production at its two major auto production plants through April 3rd, when it will reassess the situation.

Drivers in the market for a Toyota, Nissan, Honda or any other vehicle may want to shop at New Jersey State Auto Auction, which offers various models from all of these brands at affordable prices.

Edmunds predicts Ford could overtake GM in March

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Posted in Auto Industry News, Ford

The official sales total for March aren't actually in yet, but analysts are predicting Ford will end up the big winner when all is said and done.

General Motors has long been the king of U.S. auto sales, and its crosstown rival Ford has only been able to surpass GM once since 1998. The big moment for Ford came in February 2010, when both GM and Toyota, which occupied the top two spots for many years, were left reeling by a government bailout and recalls, respectively. Ford only held the title for a month before GM regained its footing.

Now, Edmunds.com reports that Ford may once again end up in the top spot. The company believes that GM's recent scaling back of incentives offered in January and February will allow Ford to slip by.

"GM seems to have pulled back on incentives in March and could suffer a sales hangover through the next few months, given that the company’s earlier offers have been quite generous and may have pulled ahead future sales," said Edmunds.com Senior Analyst Jessica Caldwell.

The website estimates that Ford's sales will grow by approximately 34 percent compared to February, while GM's will remain nearly even.

Drivers interested in a Ford or any other vehicle may want to visit New Jersey State Auto Auction, which offers a wide range of cars for sale at affordable prices.
 

Nissan Murano mixes convertible with crossover

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Posted in General Auto News, Nissan

Some of the more popular models that luxury automakers offer include convertibles and crossovers. Yet Nissan is perhaps the first company to ask "why not both?"

The upcoming Nissan Murano CrossCabriolet, set to debut next month, continues the Japanese automaker's recent trend of thinking outside the box. Whether it's the fully-electric Leaf, boxy Cube or unorthodox Juke, it's safe to say Nissan's recent efforts haven't been lacking in the "bold" department.

Yet the new Murano takes the cake. Upon first glance it might appear to be another luxury crossover, designed to compete with the Lexus RX and BMW 3 Series – and it is. But it's also a convertible, featuring a drop top normally reserved for sporty two-seaters.

"We continue to challenge what people think about what they drive and why they drive what they do," Mike Drongowski, Nissan senior manager of product planning, told Automotive News. "It might not be a typical choice for a product, but it's consistent with who we are as a brand and our history of innovation."

It remains to be seen if the strategy will pay off for Nissan, but the company is pricing the model at $47,300 – so it clearly feels drivers will be willing to shell out for this one.

Drivers interested in a new or used Nissan may want to check out New Jersey State Auto Auction, which offers a wide variety of models from the manufacturer and other brands.

Audi to utilize T-Mobile for new wireless system

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Posted in Audi, Auto Industry News

Audi will be partnering with T-Mobile for its new in-car wireless system, Connect, a feature that will be debuting with the A7 sedan in April.

Connect allows drivers to access a broad range of web-based services via a wireless network, which is where T-Mobile comes in. Much like a smartphone, drivers will be able to select a monthly data plan upon purchase of the car, although the luxury automaker will also offer a free six-month trial.

"The launch of Audi Connect is part of a foundational strategy to help Audi lead with first-to-market, cutting-edge connected services," said Johan de Nysschen, President of Audi of America. "We're looking forward to a productive relationship with T-Mobile USA as we give motorists and passengers the ability to access the most current information and enhance their enjoyment of their Audi vehicle."

AT&T's recent acquisition of T-Mobile for approximately $39 billion is not expected to affect the agreement between the two companies.

The new system will surely send drivers flocking to the new A7 sedan, but buyers should keep in mind that the older versions of the model are excellent cars as well. Those looking to score a deal on a used Audi may want to head to New Jersey State Auto Auction, which offers a wide range of new and used cars for sale at low prices.
 

Mercedes to open driving school in U.S.

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Posted in General Auto News, Mercedes-Benz

Mercedes-Benz has announced plans to open a new driving school in the U.S., citing high accident rates among teen drivers as its primary concern.

The automaker previously launched a driving education program for the U.K. in 2009, which was by all accounts successful. Mercedes claims that drivers enrolled in their school passed their driving test on the first try at nearly double the rate of those who did not.

Now, the company is looking to bring the program to the U.S., with the aim of decreasing the rate of teen accidents and thus increasing auto safety. The company believes 90 percent of accidents are due to human error, and points to studies that say teen drivers are four times as likely to die in an accident than adults.

"Despite the dramatic changes in vehicles, highways, and the driving environment over the past 60 years, driver education remains relatively unchanged in the U.S.," said Alexander Hobbach, Senior Manager, Daimler AG. "The skills required to simply get a license do not fully prepare young drivers to meet the demands of the road. Mercedes-Benz recognizes this issue and as a result is creating an educational program for the U.S. that is based on the best teaching methods and tools available."

Drivers interested in a Mercedes or any other vehicle may want to check out New Jersey State Auto Auction, which offers a variety of new and used cars for sale at affordable prices.

What the GM-Ally split means for borrowers

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Posted in Auto Loans & Financing News, Chevrolet

General Motors' recent announcement that it will be selling more than $1 billion dollars worth of preferred stock in Ally Financial is the latest development in a tangled web of mergers and acquisitions that has left the auto lending industry quite different from what it was years ago. This can be a bit confusing for borrowers, so its worth sorting out where all the loans are coming from.

The first step to understand is that automakers frequently use what is known as "captive lending arms." These are essentially subsidiary companies that solely focus on auto financing rather than the production and sale of vehicles. Perhaps the largest and most famous of these was GMAC, which handled all of the in-house loans for GM customers. Many automakers can actually make more money off of loans than they can selling vehicles, and for this reason its highly desirable for an automaker to own a lending company.

GMAC was sold to a group of investors in 2006, but GM retained a share of the company and they continued to work closely in the lending business. After the economic collapse took its toll on the automotive industry, both companies accepted bailouts from the federal government. GM was able to bounce back from this disaster more quickly than GMAC, which later rebranded itself as Ally Financial.

With the credit market thawing and more automakers beginning to offer car loans to drivers with subprime credit histories, GM was in need of a captive lender again. Some analysts thought that the company would look to reacquire Ally, but instead the automaker acquired independent lender AmeriCredit in a deal valued at $3.5 billion. This left the company's partnership with Ally somewhat in jeopardy, as the financier continued to provide loans at GM dealerships nationwide.

The most recent news is that GM is selling off all of its preferred stock options in Ally, and appears to be fully supporting AmeriCredit as the new lender of choice. GM still owns approximately 10 percent of Ally through common stock, so it's unlikely that their partnership is completely over. The use of AmeriCredit is somewhat preferable for borrowers with bad credit scores, as the company has historically been more open to subprime lending than Ally has.

Despite the split, Ally will likely continue to be a major force in the auto lending market. The company recently reported its fourth-straight quarterly profit, and appears to be looking to launch an initial public offering and pay back the government later this year.

Of course, borrowers should research all options when looking to acquire an auto loan. Banks, credit unions and dealerships may all offer terms that are preferable to the loans from the major automakers.
 

Chevy Colorado will come to U.S.

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Posted in Auto Industry News, Chevrolet

Chevrolet has unveiled its new compact Colorado pickup truck ahead of its official debut at the Bangkok International Auto Show later this week, confirming that the model will be coming to the U.S. in the process.

The compact pickup truck, once a viable market segment, is all but dead in the U.S., as American buyers tend to prefer trucks that are large and in charge. However, after Ford announced that it will be making the Ranger for foreign markets only, Chevrolet appears primed to step into the vacuum and snatch up any consumers who still prefer the smaller trucks.

"There's a market for compact pickups in America," said Haykel Ammari, general manager of a Chevy dealership just outside Boston. "It may not be the biggest segment in the country, but there are drivers out there who need the versatility of a truck but don't need the fuel costs of a full-size model."

International demand for the models remains strong, which perhaps explains Chevrolet's decision to debut the truck in Thailand rather than the U.S. A version of the GMC Canyon based on the same platform of the Colorado is also rumored to be in the works, although it hasn't been confirmed yet for U.S. shores.

Drivers interested in a new or used Chevrolet Colorado may want to visit New Jersey State Auto Auction, where they can find a great deal on the truck and many other models.
 

Earthquake leading to high prices on Prius, Fit

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Posted in Auto Industry News, Toyota

The fallout from the Japanese earthquake and subsequent tsunami is still unfolding, but it already appears that the quake will have major effects on the auto industry in America.

Despite many of Honda, Toyota and Nissan's Japanese factories operating at limited capacity, it's unknown when the country's shipping will be straightened out, nor whether maller parts suppliers will be able to rebuild. For the time being, many are predicting a small shortage on some popular models exclusively manufactured in Japan, such as the Toyota Prius and Honda Fit.

That means that many buyers are accelerating their purchase timelines and making offers on vehicles now, leading to a spike in prices. These cars were already in high demand thanks to the recent increase in fuel costs, but the situation in Japan is complicating matters by leading to dealer shortages and high prices on the remaining models.

Fortunately, those considering these models could be in luck – if they have a trade-in. Brian Allan, general manager at Galpin dealerships in Los Angeles, told USA Today that many dealers are looking for used cars right now since the recession cut down on the number of trade-in vehicles, which means higher prices for trades can take some of the sting out of the price increases.

Drivers who are interested in smaller, fuel-efficient vehicles will have a decision to make: act soon before prices really skyrocket or hold off until the hubbub dies down. Either way, they might want to consider shopping at New Jersey State Auto Auction for deals on any type of vehicle.