Top models of the American car revival

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Posted in Ford, How To

With all three Detroit automakers on the verge of bankruptcy, the American car market needed an injection of innovation – and government assistance – to stay afloat. But with Ford avoiding a bailout, General Motors prepping to go public again and Chrysler now under the control of Fiat, it appears the fortunes of American-made vehicles are slowly turning around.

MSN Autos recently looked at some of the models that have helped the brands reinvent themselves in the past few years. For drivers interested in purchasing a vehicle, buying American can be an important consideration. Given the latest lineups of cars for sale offered by the Detroit Three, these buyers finally have some attractive options that can compete with foreign models.

Most agree that Ford's turnaround has been the most impressive. The automaker was the only one of the American companies to avoid a government bailout, shifting its focus to smaller and more fuel-efficient vehicles. That said, new editions of classics like the Mustang and F-150 have ensured that the brand's legacy has safely transitioned to the modern era.

The news source highlighted the Ford Fiesta and Fusion as two models representative of the culture shift in Detroit. Rather than focus on big engines, the Fiesta subcompact and Fusion hybrid are the types of cars previously favored by Europe and Japan. Yet with each boasting more than 40 miles per gallon and stylish looks, the models have become winners at home as well.

General Motors has also been successful in its comeback, with its upcoming IPO beginning the process of ending control by the U.S. Treasury Department. The upcoming Chevy Volt will be one of the first electric vehicles in the country and was recently named Motor Trend's Car of the Year.

Yet the Volt isn't the only news at GM. The Cadillac brand has undergone a renaissance as well and looks to be challenging luxury automakers with the new CTS Coupe. GM has also partially reinvented the Buick nameplate with new models like the Enclave, LaCrosse and Regal Turbo that has led to a 60 percent sales increase for the brand, according to the news source.

Chrysler is often considered to be lagging behind its two rivals, and in many respects that's true. But hope is not lost for this classic brand, which is now under the control of the Italian automaker Fiat. The Jeep Grand Cherokee underwent a successful redesign this year, while the Ram brand has continued to sell well-made pickup trucks.

The Chrysler brand itself hasn't had many things to cheer about, but the 300, introduced in 2005, has been a success for the brand. This version of the 300 inspired the Dodge Charger and Challenger reboots as well. With a new 300 equipped with the powerful Pentastar V6 engine slated for showrooms in 2011, Chrysler will hope to duplicate that success, and with several other new models planned over the next year, including a redesigned Sebring dubbed the 200, it appears Chrysler is on the right track.

These acclaimed models may be a bit pricey now, so drivers interested in buying American may want to wait until they hit the used car market to take advantage of savings. 

Chevy Volt wins two Car of the Year awards

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Posted in Chevrolet, General Auto News

The much-hyped and debated Chevrolet Volt has picked up two Car of the Year awards from separate publications.

Both Motor Trend and Automobile Magazine named the Volt the Car of the Year among 2011 models. The first all-electric vehicle from General Motors has already received considerable praise – and criticism – ahead of its release later this year. It has already been named to the shortlist for several Car of the Year awards from various publications, but several other sources have also alleged that the car doesn't actually drive off electric power at all times as GM claims it does.

Still, Motor Trend praised the vehicle for the new technology that allows it to automatically shift between pure EV and hybrid modes depending on which is most efficient.

Automobile Magazine associate editor Eric Tingwall said that the Volt was "genuinely an all-new car, in the most simplistic sense as well as in the greater notion that the Volt is unlike any vehicle we have ever driven."

The Volt is still in the running for the North American Car of the Year, which compiles opinions from a variety of automotive journalists. Other nominees include the Ford Fiesta, Nissan Juke and Hyundai Sonata.

Buyers interested in electric vehicle technology may want to wait until they hit the used car market, as the initial models are expected to be priced at more than $30,000 dollars.
 

Ford announces Focus Electric cities

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Posted in Auto Industry News, Ford

Ford is preparing for the late 2011 launch of its first all-electric passenger car, the Focus Electric. The automaker recently announced the first cities that will be receiving the vehicle as part of it's phased roll-out strategy.

The new Focus will hit dealerships in early 2011, with the electric version to follow later that year. The initial cities for the launch were chosen based on hybrid purchasing patterns, local commitment to electric vehicles, and number of residents, among other factors.

In a statement, the company named Atlanta, Houston, Austin, Boston, Chicago, Denver, Detroit, Los Angeles, San Francisco, San Diego, New York, Orlando, Phoenix, Tucson, Portland, Raleigh-Durham, Richmond, Seattle and Washington, D.C. as the starter cities.

"This is the first step in rolling out the Focus Electric," Mark Fields, Ford’s President of the Americas said in a statement. "As the country continues to build up its electric vehicle infrastructure and demand for the Focus Electric grows, Ford will continue to evaluate additional markets."

Electric vehicle enthusiasts may want to wait until a few models hit the used car market, as the cars are typically expensive at launch.

Ford, Nissan among top three in taxi design contest

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Posted in General Auto News, Nissan

New York City's fleet of used Ford Crown Victorias functioning as taxicabs is set to be phased out once Ford ceases production of the iconic car, so the city is holding a contest to standardize the taxi used across the city.

City hall recently unveiled the finalists in the contest and all three are van-like in design. Ford, Nissan and Turkish automotive company Karsan each submitted proposals that are roomier than the traditional sedans currently used by drivers, instead looking more like London's taxis.

Ford submitted a version of its Transit Connect van, which is also available as a commercial vehicle. Nissan's entry is a modified NV200, a van that is sold in Japan and Europe. Karsan, largely unknown in the U.S., designed a van that is similar to the other automakers but features more expansive windows.

"Each is promising, but none is perfect," Mayor Michael Bloomberg said of the designs. "We are not obliged to go with anything if it does not meet our needs."

The winner will be announced in early 2011, with city officials saying it will be four years before the entire city makes the switch. The Bloomberg administration is currently soliciting input from citizens as well as attempting to negotiate its own list of features with the automakers. 

Which models come with low insurance premiums?

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Posted in How To, Hyundai

For drivers considering a new or used vehicle purchase, price is an important consideration. However, many drivers fail to factor in what a vehicle could potentially cost them in terms of insurance prices. Anyone who has purchased a sports car will likely testify to the fact that coverage is typically more expensive for higher priced vehicles.

InsWeb, a company that provides insurance quotes from a variety of sources, recently released its list of the most and least expensive models to insure for the 2010 model year. The company compared actual quotes provided to customers over a nine-month period between January and September of 2010. The list was limited to vehicles under $80,000, with the conceit that high-end luxury vehicles or supercars would be among the priciest vehicles to insure.

Yet the rates quoted to drivers don't always correspond to the price of the vehicle. This is often a starting point – a pricier vehicle contains more expensive equipment to be replaced – but it is by no means reflective of the final figure. In fact, "loss history" plays a much greater role in determining insurance premiums.

Loss history is essentially the rate of accidents and damage suffered by a model throughout its history. While this reflects the model, the type of driver also comes into play. Muscle cars like the Ford Mustang or Chevy Camaro can be expensive, but so can top-of-the-line pickup trucks, SUVs and minivans. The difference is that the Mustang is much more likely to be driven by an aggressive driver who likes to go fast, leading to a higher accident rate.

The most expensive vehicle to insure was the Acura ZDX, according to the company. That model was closely followed by the Audi TT, Audi A5, Cadillac Escalade and Chevy Corvette. Other popular models making the high-priced insurance list include the BMW Z4, Mitsubishi Lancer, Nissan 370z and the afoermentioned Mustang and Camaro.

On the other hand, the Kia Sedona minivan was named the least expensive car, with the Mazda5, Ford Escape, Hyundai Santa Fe and Mercury Mariner rounding out the top 5. The Ford Explorer, Toyota Tacoma and Honda Element were among the other models cited for their cheap insurance rates.

"It's no coincidence that the majority of the most expensive vehicles to insure are performance vehicles," said Brad Cooper, Senior Vice President of Operations at InsWeb. "It’s very possible that the types of drivers that purchase these vehicles are more aggressive by nature, which could lead to a higher likelihood of claims on these vehicles. On the other end of the spectrum, most of the vehicles on the least expensive to insure list are minivans, wagons and small SUVs. Those vehicle types are often preferred by individuals with families—perhaps the least likely drivers to engage in risky driving behavior."

Buyers interested in purchasing a vehicle should consider the affect that their purchase could have on their insurance. Those interested in a high-performance car should probably not call off their purchase, but may want to shop the used car market in order to get the best deal and save money. 

Honda Accord achieves first perfect rating under new crash test system

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Posted in Auto Industry News

The Honda Accord has become the first vehicle to achieve a perfect score under the National Highway Traffic Safety Administration's (NHTSA) tougher new rating system.

The NHTSA instituted a stricter rating scheme this year after many vehicles were awarded five stars under the old system. In addition to new tests and higher standards, the redesigned scores also give an overall rating, which the government body says allows shoppers to easily compare multiple cars for sale.

The new system saw perennial five-star cars knocked down a few pegs. The Toyota Camry, for example, was rerated as a three-star vehicle. The redesigned Hyundai Sonata was the first to achieve an overall score of five stars, but a four-star rating in the frontal crash test kept it from a perfect score.

Now Honda has the bragging rights that come with the perfect safety rating, scoring five stars in the frontal, side and rollover collision tests. The NHTSA is still working its way through the 2011 model year, with plans to rate 55 models by the year's end.

Drivers searching for used cars will likely be looking at vehicles rated under the old system, which had a higher percentage of cars achieving five-star safety ratings.

German luxury brands going after green market

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Posted in How To, Mercedes-Benz

The German luxury trio of Mercedes-Benz, BMW and Audi are all locked in a close battle for the title of the world's most popular automaker. According to sales figures from the first half of 2010, BMW is currently in first place, although its lead over its two rivals is marginal. At under 2,000 vehicles, Mercedes' lead over third-place Audi is even slimmer, although that number may have grown in recent months thanks to strong sales for Mercedes in the U.S.

Regardless, all three German luxury brands are racing for the top spot. To accomplish this, they're going after smaller market segments. According to the Automotive News, the next segment that the brands are looking to cater to is the "green," or environmentally conscious, car owner.

Mercedes recently announced that it will debut a four-cylinder engine on its top-of-the-line S-Class model. The S250 CDI is expected to be available on several models in early 2011. Four-cylinders are uncommon options for luxury vehicles, with drivers typically wanting the performance of a six- or eight-cylinder. Yet Mercedes says that thanks to turbocharging technology, the engine delivers the torque of a six-cylinder with the low emissions and fuel consumption of smaller engines.

"Green luxury is feasible," said Verena Mueller, a Mercedes spokeswoman. "We expect to attract environmentally conscious customers who are seeking the lowest possible CO2 emissions. Besides private customers, that could of course also be fleet buyers."

The news source reports that Audi will counter with a new version of its A8 sedan that will likely see the automaker couple the four-cylinder with an electric motor for the A8 hybrid, which is expected in 2012.

BMW is also going the electric route, but is unlikely to make the move to a four-cylinder anytime soon. BMW is said to be developing a hybrid supercar based off of its Vision Efficient Dynamics concept.

"I like selling 7-series cars with six- and eight- cylinders," BMW CEO Norbert Reithofer told the news source at the Paris Motor Show. "What we need to offer with these cars in the future is electrification."

Smaller engines and electric vehicles might save drivers at the pump, but luxury cars outfitted with the latest in engine technology will likely be expensive for many buyers. Drivers interested in saving money on their vehicle purchase may want to shop for a used Mercedes, BMW or Audi. 

EPA updates fuel economy ratings for 2011 models

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Posted in How To, Toyota

The EPA has updated its fuel economy ratings for the 2011 model year, with the Toyota Prius retaining its title as fuel economy king despite challenges from several other worthy models.

The Prius topped the list of models with 51 city/48 highway miles per gallon. Yet for drivers looking to go green and save at the pump, the Prius is far from the only option, as most major manufacturers now offer a variety of cars for sale with high fuel efficiency ratings.

At second place on the list, for example, was Ford's trio of hybrids: the Fusion, Lincoln MKZ and Mercury Milan. All three of these vehicles have varying features and styling, but each comes with a 41/36 fuel efficiency rating that should keep drivers' wallets a little heavier every time they head to the pump. Ford's 29/40 Fiesta also won the subcompact category, barely edging Toyota's 29/36 Yaris.

Honda also posted a strong showing, with the automaker's Civic and Insight hybrids each achieving 40/43 for fuel economy. The CR-Z crossover was considered the most efficient two-seater at 35/39 in the automatic version and 31/37 for the manual.

Large sedans aren't typically thought of as being particularly efficient, but the top two entries on the list may change skeptic's minds. The Hyundai Sonata leads the class with a rating of 24/35, while Honda shows up again with the Accord at 23/34.

Although the Prius was king again this year, it's likely to be the last win for the popular hybrid. This year's list didn't take into account the Nissan Leaf and Chevy Volt, upcoming electric vehicles that are said to best the hybrid's efficiency ratings.

The agency also released its list of the least fuel-efficient vehicles in various classes. Unsurprisingly, luxury vehicles like the Aston Martin DB9 and Rolls Royce Phantom topped the list, along with the Bugatti Veyron supercar, which gets just 8 miles per gallon in the city.

Hybrids may save drivers money at the pump, but the fuel efficiency often comes at a premium on the dealer's lot. Buyers who wish to save on a hybrid may want to shop for one on the used car market, where they can often find deals compared to new vehicle showrooms.

Mercedes-Benz: Avoiding stupidity

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Posted in Auto Industry News, Mercedes-Benz

Mercedes-Benz has Lexus in its sights and is close to toppling the perennial leader in terms of yearly sales, but the German luxury brand says it won't be doing anything "stupid" solely to become the top-selling luxury nameplate.

In the yearly sales estimates, Mercedes is actually outselling Lexus by approximately 1,000 vehicles. Yet Lexus has come on strong in recent months and executives believe that the competition to be the top-selling brand will come down to the wire.

When automakers are engaged in close sales races, they typically introduce a number of incentives to drive sales. Bloomberg reports that while Mercedes will definitely use this tactic, they won't be losing money on vehicles simply to outpace Lexus.

"December is a big month," Dietmar Exler, vice president of Mercedes-Benz Financial USA, told Bloomberg. "There will be some programs, but there will be nothing stupid just to be No. 1."

Buyers may see some deals on luxury cars for sale in the coming months, but they are unlikely to drop the total price of a luxury model into an affordable range for the average shopper. Those who still want to end up in a high-end vehicle may want to search the used car market for a deal instead, as there are sure to be some year-end deals there as well. 

New compact luxury SUV in the works for Lincoln

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Posted in Auto Industry News, Lincoln

After ending the Mercury brand, Ford is currently in the process of reviving the Lincoln luxury line, and plans to take aim at one of the best-selling market segments by introducing a compact luxury SUV.

The unnamed Lincoln model is said to be smaller than the company's MKX and designed to compete with the top-selling Lexus RX, according to the Detroit Free Press.

"Our commitment to Lincoln is to reinvent it," Ford VP of Marketing Ken Czubay told the news source. "We will have seven major new products or redesigns over the next two years."

The new model is set to be built at the company's Louisville production facility, which currently makes the Ford Escape and Explorer. The new Lincoln is expected to eventually take the slot of the Explorer, which will cease production on December 13th.

Lincoln has struggled lately despite Ford's renewed vigor for the brand. In fact, Mercury, which Ford chose to axe in favor of Lincoln, has actually outsold the brand thus far this year.

Drivers in the market for a luxury vehicle may want to check a used car dealership, as they might be able to get the typically-expensive models at an affordable price.