Enterprise to obtain fleet of rental Leafs

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Posted in Auto Industry News, Nissan

Enterprise and Nissan have struck a deal that will see the Japanese automaker sell 500 of its upcoming Leaf electric vehicle to the rental car company.

According to the Associated Press, Enterprise will initially make the car available to drivers in eight cities: Seattle, Los Angeles, San Diego, Phoenix, Tucson, Knoxville, Nashville and Portland. The car will be available for rent in January, but Enterprise will begin installing charging stations in November.

The Leaf is one of the first electric vehicles to be mass produced. Nissan says that the vehicle will get 100 miles on a full charge of its electric motor. However, the car requires more charging after 100 miles, meaning that drivers could be stranded if they don’t plan carefully. Still, the car should be perfect as an emissions-free rental for those simply driving around a city while on a business trip or vacation.

Enterprise has not yet announced the cost to rent a leaf. The company currently charges a premium for customers who wish to rent a hybrid.

Rental cars are one way in which vehicles eventually find their way to the used car market. Often, these rental cars are kept in top shape and given dealer certification. Buyers interested in purchasing a Leaf may want to wait until the used Nissans begin finding their ways to dealerships and auto auctions.

New York cabbies prefer used Ford Crown Vics

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Posted in Ford, General Auto News

A new initiative to replace New York City’s 13,400 taxis with a more fuel-efficient and greener option is being met with some resistance by the taxi drivers who navigate the cars through the city’s busy streets every day.

Although the New York Taxi and Limousine Commission has kicked off its “Taxi of Tomorrow” competition in an effort to find cleaner vehicles, many drivers say they will be sad to see their used Ford Crown Victorias go. The commission hopes to replace the varied models among the NY used cars that cabbies drive with one clean, standard model by 2014, according to USA Today.

Yet Ford has decided to discontinue the Crown Vic, so taxi companies will need to find a new option. The Taxi of Tomorrow competition was launched in order to find a satisfactory alternative. Still, many drivers have nostalgia for the vehicles they have driven for years.

Jana Stroe says she has been driving used Ford Crown Vics for 20 years. “The car is good the way it is,” she told the news source. “We don’t want the hybrid. Hybrids have so many problems. We take a lot of customers from the small cars.”

Many drivers echoed her views, saying that when given the choice between the two, many customers will gravitate toward a roomier vehicle like the Crown Vic over a more compact car. Some drivers even report earning extra money behind the wheel of a Crown Vic.

Whatever the city ends up deciding upon as its new model, tourists can rest assured: the cars will still be painted that famous shade of yellow.

Toyota pulling used Avalons off the road

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Posted in Auto Industry News, Toyota

Toyota has announced that it will recall 373,000 used Toyota Avalons off the road, citing a problem with the steering system.

The Japanese automaker says that a component in Avalons sold from 2000-2004 can crack when the vehicle is turned hard to the right. This piece can then become lodged and cause the wheel to lock up, increasing the risk of a crash, according to the Los Angeles Times. The problem has resulted in six incidents that have caused three crashes in the U.S., none of which injured drivers or passengers.

The company will also recall its 2003-2007 Lexus LX 470 SUVs for a steering problem unrelated to that of the Avalons. These recalls bring the total number of vehicles recalled by the company in the last year to 9 million. After the major debacle with unintended acceleration, some automotive analysts believe the Japanese automaker is playing it safe.

“If one of their vehicles so much as hiccups or coughs, they now do a big recall,” Rebecca Lindland of IHS Automotive told the news source, “and it is very expensive.”

Those who own used Toyota Avalons will be able to take the car to the dealer to get a fix, which the company estimates will take about two hours.

Mercedes set to surpass Lexus as America’s favorite luxury vehicle

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Posted in Auto Industry News, BMW, Lexus - DO NOT USE, Mercedes-Benz

Although Lexus, the luxury division of Japanese automaker Toyota, has enjoyed ten years of domination in the U.S. luxury market, a wave of recalls and an increase in quality from Mercedes-Benz means there may be a new king of the luxury market by the end of the year.

Bloomberg reports that Lexus may lose its crown when all is said and done in 2010, as the continued bad press from the recalls by Lexus and Toyota have dissuaded discerning drivers from making purchases with Lexus. Instead, drivers are turning to German luxury automakers like Mercedes, BMW and Audi, for their luxury car needs.

Mercedes very nearly took the title of top seller during the first half of 2010, shipping less than 500 vehicles fewer than its Japanese rival. While the luxury industry in general is booming after the recession depressed 2009, Lexus’ recovery has been marred by quality concerns. The Japanese automaker posted a 19 percent increase in U.S. deliveries during the first half, but Mercedes grew 25 percent to close the gap.

According to Edmunds, Lexus’ 2.1 percent market share may fall to 1.98 percent by the end of the year, which would be enough to allow both Mercedes-Benz and BMW to surpass the brand as America’s favorite luxury vehicles.

Those shopping on a budget don’t need to price themselves out of a luxury vehicle. By shopping for used cars, driver can easily get a used Mercedes or BMW for a fraction of their sticker price.

http://www.bloomberg.com/news/2010-07-22/lexus-recalls-risk-ceding-brand-s-decade-long-u-s-dominance-to-mercedes.html

Ford undertakes social media blitz to launch Explorer

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Posted in Auto Industry News, Ford

Ford‘s redesign of its popular Explorer SUV model bucks the usual trend in a number of ways. For starters, the automaker has redesigned the vehicle to provide an emphasis on fuel economy and practicality rather than off-roading and towing capabilities. But the other reason the new Explorer is turning heads is its unorthodox marketing campaign.

Rather than unveil the new car at an auto show, Ford has instead decided to harness the power of the internet in order to coordinate a massive campaign across social media. The automaker has hosted live chats and videos across its YouTube, Facebook and Twitter pages for a number of days to drum up excitement for the new vehicle, according to the Detroit Free Press.

It all culminated with live events in nine cities, where the new model was unveiled in a variety of ways. In Oshkosh, Wisconsin, it was flown in by helicopter. In Chicago, it burst through a faux-wood wall.

“It was a very unorthodox and unusual launch,” Rebecca Lindland, automotive analyst for IHS Automotive, told the news source. “We are going to see this more and more because of the impact of social media.”

The Explorer is a classic model, and was the best-selling midsize SUV in America between 1995-2004, according to the news source. That figure means that there will be plenty of used Ford Explorers in a variety of options available on the used car market, should car buyers have nostalgia for the previous designs.

http://www.freep.com/article/20100727/BUSINESS01/7270323/2011-Explorer-to-keep-Ford-on-track

Battle of the electric cars

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Posted in Auto Industry News, Chevrolet, Nissan

Both GM and Nissan have plans to introduce electric cars by the end of the year, but its unclear which approach car buyers will ultimately favor.

While the Chevy Volt and Nissan Leaf are usually mentioned in the same breath, both cars actually have radically different philosophies when it comes to driving.

The Volt is an electric hybrid, with both a 40-mile range electric motor and traditional gas engine. After the motor’s 40 mile limit has been reached, the gas engine kicks in, ensuring that drivers can continue as long as they have gas.

The Leaf, on the other hand, can actually claim to be a purely electric vehicle, and one of the first to be mass marketed. It’s also about $7,000 cheaper than the Volt and offers the attractive possibility of never touching a gas pump again. In addition, its battery pack squeezes out 100 miles of power when fully charged. However, once the charge is gone, that’s it – it needs to be plugged in before it can go again – and charging takes much longer than filling a tank of gas, essentially meaning drivers will be stranded after 100 miles with no charge.

So how should car buyers decide? The best way might be to wait until both cars hit the used car market. By then, consumers will know all the pros and cons and will be able to purchase a used Nissan Leaf or Chevy Volt at a reduced price.

Nissan to recall Cubes

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Posted in Nissan

Nissan is set to recall its Cube compact SUV, after tests by the National Highway Traffic Safety Administration (NHTSA) found that more than the allowable amount of fuel could spill in a rear-end collision.

According to the Associated Press, the recall affects 46,000 units of the model, including all of the vehicles sold thus far in North America. Though the car has been around in Japan for years, it just recently debuted in the U.S. last year.

Nissan says that the car did not spill any fuel during the company’s own testing, but has issued a voluntary recall. Drivers who take their car back to the dealer will have a special cap installed in order to prevent excessive fuel leakage.

The Cube, immediately recognizable due to its eye-catching design, has been a popular car for the company on its home turf of Japan. With a wrap-around back window and cubelike design, the car definitely exudes a modern Japanese look.

Those who want a Cube but are looking to avoid the potential fuel problems might want to look at used Nissan Versas, a similar car that is not known to suffer from the issues.

Ford posts big second quarter earnings

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Posted in Ford

It’s a good day for Ford, as the company has posted second-quarter profits of $2.6 billion, surpassing Wall Street analysts’ expectations and increasing 13 percent year on year. Ford’s redesigned lineup of cars for sale was reportedly a factor in the large earnings.

The company attributed the rise in profits to vehicle sales, especially of popular models like the Fusion, F-150, Taurus and Fiesta. The company generated revenue of $31.3 billion in global sales during the second quarter.

Ford CEO Alan Mulally, the architect behind the company’s turnaround, said that 2010 has been a “terrific year,” but said he believes 2011 will be even better. When the company’s first and second quarter results are put together, it shows it was the best first half for Ford in more than a decade.

Ford’s new fleet includes some models that are priced a touch higher than their previous incarnations. In addition, Ford customers opted for features, like the voice-activation system Sync, that drove up the cost of the cars. Edmunds reported that customers spent $30,309 on average on Ford vehicles in June.

Car buyers who may not want to pay that much may want to search for some late-model used Fords on the pre-owned market. With models like the Explorer SUV and Focus compact slated to get a redesign later this year, there may be an influx of the 2010 models.

AutoNation posts growth on back of used car sales

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Posted in Auto Industry News

AutoNation, one of the largest chains of auto dealerships in the U.S., reported a strong uptick in sales during the second quarter, signalling that consumer confidence may be returning to the auto industry.

The growth came on the back of a 28 percent surge in used car revenue, along with a 20 percent increase in new car sales. Combined, the result was a 25 percent increase in revenue derived from sales and a 20 percent overall revenue growth compared with the previous year. According to analysts polled by Reuters, the results were beyond expectations.

“We delivered strong double-digit growth in the second quarter, which was driven by both new and used vehicle unit sales and revenue. We continue to expect full year industry new vehicle unit sales to be in the range of 11.5 million new units,” said CEO Mark Jackson. “We continue to see a solid automotive recovery going forward.”

AutoNation purchases dealerships and runs them under their own brand, which gives them the largest amount of cars for sale in the country, according to the company. For example, AutoNation recently announced the acquisition of the Toyota Mall in Atlanta, the city’s largest new and used Toyota dealer.

The company said that domestic brands strongly contributed to the growth, especially Ford and Chevrolet.

GM purchases financing arm

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Posted in Auto Loans & Financing News

General Motors has spent $3.5 billion to purchase AmeriCredit, a subprime lender that specializes in providing financing for late-model used cars. The move restores a financial services arm to the automaker, who split from its in-house lender, GMAC, in 2006.

According to CNN, the deal is expected to greatly improve GM’s ability to move its wide variety of cars for sale. An in-house lender allows GM greater financial flexibility in offering financing and auto loans on its vehicles. It also gives those shopping for used cars another option in finding the money to do so.

GMAC, now known as Ally Financial, was GM’s in-house lender for a number of years, but GM sold its stake in the company in 2006. Both companies were later bailed out by the federal government. GMAC, which also offers mortgages, is trying to improve its lending business by only offering loans to consumers with near-perfect credit. While GMAC currently provides loans for GM customers, GM wanted a lender who would be able to offer loans to buyers with poor credit as well.

Some analysts have speculated that GM’s lack of a financial arm, which can be quite profitable, is one of the reasons it is lagging behind rivals like Toyota and Ford in recovering from the downturn.