Archive for

Toyota Recalls 1 Million Vehicles In U.S. To Fix Faulty Airbags, Wipers

2004 Toyota Corolla

Toyota announced today that it will conduct two separate safety recalls involving a total of approximately 1.02 million vehicles in the United States for problems with potentially defective airbags and windshield wipers. Worldwide, the two recalls affect a total of nearly 1.3 million vehicles.

2004 Toyota Matrix Std

Airbag recall

The first recall is the largest, affecting some 752,000 Toyota Corolla and Corolla Matrix small cars from the 2003 and 2004 model years.

Toyota said that the airbag modules for the supplemental restraint system in certain Corolla and Corolla Matrix vehicles may have circuits susceptible to internal shorting. A short could create an abnormal flow of current, increase heat and damage the chips. The potential result is that the front airbags and/or front seat belt pretensioners could deploy without warning.

According to a Toyota spokesman’s statement to the Associated Press that was reported in The Detroit News and other media outlets, there have been 18 injuries in the U.S. related to the airbag issue, along with two crashes.

2012 Lexus IS

Wiper recall

The second recall involves 2006 through 2012 model year Lexus IS luxury sedans. The problem here is defective windshield wipers that may become inoperable. In the U.S., the safety recall involves 270,000 Lexus IS sedans.

Here, the issue is that the front wiper arm may not be sufficiently tight. Heavy snow that builds up on the windshield could restrict wiper movement to the extent that one or both wipers could become inoperative.

According to Toyota, there have been no reported injuries or accidents involving the defective wipers.

What Toyota will do

Owners of 2003 and 2004 Toyota Corolla and Corolla Matrix small cars and 2006 through 2012 Lexus IS luxury sedans involved in the safety recalls will receive letters via first-class mail “in the near future.”  They will be instructed to take their vehicles to any authorized Toyota or Lexus dealer for repairs, which will be performed at no charge.

In the meantime, owners of vehicles involved in the safety recalls with any questions or concerns may contact Toyota at 1-800-331-4331 and Lexus at 1-800-255-3987. Information is also available at www.toyota.com/recall and www.lexus.com/recall.


This story originally appeared at The Car Connection

Ford Stock Price Falls: Is It The Apple Of Cars?

If you're the sort of person who enjoys similes, you could spend a lot of time comparing today's car companies to Apple.

Like Apple, for example, General Motors came back from the brink of ruin to become a leader in the industry once more. Toyota followed the same path in the wake of 2010's high-profile recall fiasco and 2011's earthquake and tsunami that devastated Japan. 

You could also draw parallels between Apple and Tesla, thanks to the latter's innovative, beautiful, high-tech products. Heck, Tesla even pilfered Apple's ranks to sell its vehicles: George Blankenship, who designed Tesla's controversial showrooms, was also the driving force behind  Apple's monstrously successful chain of shops. And surely there are some linkages to be made between Tesla's polymath proprietor, Elon Musk, and Apple's famous co-founder Steve Jobs (though as we've discussed, Jobs himself would've been a lousy fit for the auto industry).

But at the moment, we're most intrigued by the similarities between Apple and Ford. Despite stellar sales and strong profits, the stock prices of both companies are tumbling.

Exhibit A: Apple [NASDAQ:AAPL]

Because Apple is bigger than Ford, its fall has been far harder and more visible. After peaking above $702 in September, the company's stock price has plummeted, finishing yesterday around $458.

In the grand scheme of things, that's still pretty good -- until 2004, Apple stock had never crossed the $10 mark. But for the past several years, analysts and investors alike have been charmed by Apple's super-hot product lineup and its accordingly super-hot balance sheets. Then in September, the luster wore off a bit. Apple released the somewhat underwhelming iPhone 5 and an operating system with several well-publicized problems (namely, Apple Maps). The iPad Mini that debuted at the same time began cannibalizing sales of its more profitable big brother, and for the first time ever, someone was giving Apple a run for its money in the smartphone market: Samsung.

All of which is to say that Apple is still a-okay, but no company or product stays at the top of the charts forever. (Remember IBM? Atari? Enron? Polariod? Blockbuster?) Apple was bound to slip sometime. Even though it's still flying high -- and some would say that it's due for another surge -- investors are disappointed to see that it's not the invincible company they once thought it to be.

Exhibit B: Ford [NYSE:F]

Ford's stumble is harder to explain.

True, Ford has hit a few rough spots over the past few years. It's still struggling to get back on top of the initial quality rankings due to problems with its Sync and MyFord Touch infotainment systems. The 2013 Fusion has already seen two recalls, and the 2013 Escape has been subjected to four. Ford is also facing considerable public scrutiny (and at least one lawsuit) over its fuel economy claims for the Fusion Hybrid and C-Max Hybrid. 

But of the Detroit automakers, Ford is the golden child, the one that managed to avoid the bankruptcy fate that befell its rivals at Chrysler and General Motors. In the wake of the Great Recession, it narrowed its focus with the widely lauded "One Ford" plan. And it's turned out some great-looking cars, including the 2012 Ford Focus and the aforementioned 2013 Escape and 2013 Fusion. Of all the automakers doing business in America, Ford continues to generate the most positive buzz.

So, why isn't its stock doing better?

After flirting with penny-stock status in November 2008, Ford's stock price soared over 1300% to reach $18.65 in January 2011. Since then, it's drifted slowly downward. Yesterday, it opened at $13.78 as Ford announced sales figures for 2012.

As it turns out, the company saw whopping pre-tax profits of $8 billion, net income of $5.7 billion, and fourth-quarter pre-tax profits of $1.7 billion -- the highest in over a decade. In a separate release, Ford announced that its share of the hybrid market jumped roughly nine points, while Toyota fell eight.

However, Ford's balance sheets weren't quite as bright as they were at the close of 2011, and the automaker predicted continued trouble ahead in Europe and South America.

At the end of the day, Ford's stock closed down 77 cents, at $13.01.

Our take

Markets are not rational. Stock prices are driven, in part, by analysts more concerned with short-term losses than long-term profits. Apple and Ford both suffer from heightened expectations because of their recent can-do-no-wrong reputations. Any crack in their armor is likely to cue the Cassandras.

We are not accountants. We are not lawyers. And we are certainly not financial advisors. But from where we sit, the minor setbacks facing Apple and Ford don't do anything to diminish their prospects down the road.


====
Visit our redesigned used cars section today -- over 2 million live classified listings for sale:  Used TrucksUsed SUVsUsed ToyotasUsed Fords and more.


This story originally appeared at The Car Connection

AAA Study: Drivers Who Use Cell Phones Probably Have Other Bad Habits

Since we were little, we've been told not to judge books by their covers. But AAA would like to remind us of another tried-and-truism: where there's smoke, there's fire. 

That's the gist of a new survey conducted by the AAA Foundation for Traffic Safety. That survey -- the 2012 Traffic Safety Culture Index -- fielded responses from 3,896 U.S. residents, all of whom were 16 or older. The survey was available in English and Spanish, and the Foundation insists that "the sample is representative of all U.S. households reachable by telephone or by regular mail".

In a nutshell, the survey reveals that folks who use their cell phones while driving are significantly more likely than their peers to engage in other bad driving habits.

It also proves that human beings are highly irrational creatures: while a whopping 89% of those surveyed agreed that other drivers using cell phones posed a threat to their safety, an also-whopping 69% reported chatting on a cell phone themselves while driving within the past 30 days. 

But here's where things get interesting: those drivers who used their cell phones "fairly often" or "regularly" within the previous month were also guilty of other bad driving habits. Notably:

Conversely, those who said that they hadn't used a cell phone were much safer drivers:

Why does it matter?

It goes without saying that distracted driving is very dangerous -- particularly sending texts and emails. According to the National Highway Traffic Safety Administration, "Text messaging creates a crash risk 23 times worse than driving while not distracted".

This is borne out in fatality statistics. The number of deaths caused by distracted driving is on the rise -- in fact, it's one of the few trouble spots on America's otherwise impressive traffic-safety report card. In all, 3,331 traffic deaths were attributed to distracted driving in 2011, which represents an increase of 1.9% over 2010. AAA hopes that the 11 states without texting bans on the books will consider such measures this year.

We don't believe that passing laws alone will do the trick. However, the AAA study seems to indicate that the more drivers understand the problem of distracted driving, the more likely they are to adopt other safe-driving habits. So, making drivers more aware of the dangers of distracted driving could, in theory, make them safer drivers overall.


This story originally appeared at The Car Connection

Saab’s New Owners Set Goal:120,000 Vehicles A Year By 2016

The rumors about Saab's death have been greatly exaggerated -- at least, that's what the brand's new owners say. According to Bloomberg news, Saab's long-quiet assembly lines will return to action this summer, and the company hopes to meet some pretty lofty production goals within three years.

A recap

A full recounting of the Saab saga is more suited for a tell-all bestseller, not a blog post. But if you haven't been following along at home, the major plot points are:

Latest developments

Bloomberg received a copy of a letter recently sent by NEVS to Saab's parts suppliers. In that letter, NEVS details a few of the company's goals for Saab, including:

Some analysts are dubious about Saab's prospects in the electric-car market -- and rightly so. NEVS' goal of 120,000 is just shy of Saab's production peak of 133,000, reached in 2006. It's also significantly more than the 107,200 fully electric vehicles assembled by all automakers around the globe in 2012.

According to Bloomberg, the key to NEVS' hopes and dreams for Saab lays in China. The country has an aggressive plan for electric-vehicle adoption, including boosting sales of alt-fuel vehicles to 500,000 units by 2015 (from fewer than 13,000 in 2012) and by adding 400,000 recharging stations within 20 major metropolitan areas by 2015. If China sticks to its plan, electric Saabs could be well positioned for success.

Also boosting Saab's chances for success: a $307 million infusion of cash, courtesy of the city of Qingdao, which it's providing in exchange for a 22% stake in NEVS.

Other factors could also lend a hand -- for example, if Saab relies more heavily on extended-range electric cars than on fully electric vehicles. That, combined with looming advances in battery technology, could also help overcome consumer's range anxiety.

We'll reserve judgement on Saab's prospects for now, but we'll keep you posted as NEVS releases further details about its plans. 

[via John Voelcker]


This story originally appeared at The Car Connection

Honda Recalls 748,000 Pilot SUVs, Odyssey Minivans For Airbag Defect

2012 Honda Pilot

Honda is conducting a voluntary safety recall of  748,000 Pilot SUVs and Odyssey minivans in the U.S. for a potential airbag defect.

The Japanese automaker issued a statement last week announcing its plans to recall certain 2009 through 2013 Honda Pilot and 2011 through 2013 Honda Odyssey vehicles. This week, a notice on the National Highway Traffic Safety Administration (NHTSA) website provided further details. The vehicles subject to this safety recall were built from March 13, 2012 through December 31, 2012.

2012 Honda Odyssey

The problem

At issue are some rivets that may be missing from the airbag cover that attaches to the airbag module. In documentation (PDF) submitted to the NHTSA, Honda said that during assembly, it is possible that not all six rivets affixing the cover were installed. The possible consequence, according to Honda: “The absence of one or more of the rivets could alter the performance of the driver’s airbag during deployment, potentially increasing the risk of injury during a crash.”

The problem was discovered by a worker who noticed a missing rivet during the assembly process. Honda began an investigation which culminated in the decision to begin a recall.

Honda said that it has not received any warranty reports or claims from customers for this issue, nor have there been any claims alleging injury or death related to this concern.

What Honda will do

Honda will notify owners, advising them to take their vehicles to a Honda dealer. The dealer will inspect and replace, if necessary, the driver’s side airbag module. The service will be performed free of charge. The Honda safety recall campaign, identified as S75, is expected to begin on or about February 16, 2013.

In the meantime, owners of 2009 through 2013 Honda Pilot and 2011 through 2013 Honda Odyssey vehicles with any questions or concerns may contact Honda at 1-800-999-1009.

Alternatively, owners of vehicles involved in the campaign may contact NHTSA’s Vehicle Safety Hotline at 1-888-327-4236 or go to http://www.safercar.gov.  Reference the NHTSA campaign ID No. 13V016000.

This is the second recall of Honda Pilot and Odyssey vehicles in two months. In December, Honda recalled some 807,000 Pilot and Odyssey vehicles in the U.S. for a potential rollaway problem.

====

Visit our redesigned used cars section today -- over 2 million live classified listings for sale:  Used TrucksUsed SUVsUsed ToyotasUsed Fords and more. 

 

 

 

 


This story originally appeared at The Car Connection

Why Isn’t The Dodge Dart Selling?

When the all-new Dodge Dart debuted at last year's Detroit Auto Show, the media was excited. It marked the revival of a once-loved nameplate and the first major collaboration between Chrysler and its new Italian owners (since the Dart is based on a Fiat platform). And for a reasonably priced compact sedan, the 2013 Dart offered a range of options to please driving enthusiasts.

The reception from the general public, however, has been more muted -- so much so that, according to AutoNews, Chrysler executives have taken pains to explain the Dart's underwhelming sales.

The problem has been brewing for a while. In fact, we drew attention to it last summer, when fewer than 1,000 Darts sold over the course of two months. Things picked up in the fall, and the Dart finished 2012 with 25,303 units sold. But although the needle is moving in the right direction, Chrysler clearly believed that the Dart would be performing better by now.

A major stumble came as the first wave of Dodge Darts rolled out to greet the public, fitted with manual transmissions. While the number of shoppers interested in stick-shifters seems to be growing, it still accounts for a tiny percentage of the buying public. Those first manual-only models turned off automatic fans and prevented more than a few consumers from taking the Dart for a spin.

In fairness, the automatics arrived a few weeks later, but by then, buzz about the Dart had begun to wane. It was by no means old hat, but it wasn't brand spanking new, either.

Also causing trouble: the Dart's optional dual-clutch transmission, which, by CEO Sergio Marchionne's own admission, was too European for U.S. drivers. Speaking at last week's Detroit Auto Show, Marchionne took much of the blame for trying to force Americans to use a transmission they didn't like. Speaking to CNN, he said, "I take full ownership for the fact that it wasn't the launch that I wanted."

Sales may perk up when the Dart receives Chrysler/Fiat's new nine-speed automatic transmission, which will soon debut on the successor to the Jeep Liberty. There's no word, however, on precisely when that gearbox will be available for the Dart. Speaking to Wards Auto, Marchionne said, "If it were up to me, you would have gotten it last night.

Reid Bigland, head of the Dodge brand, says that he's not too concerned about the Dart's sluggish sales figures, because he has a number of "levers" he can pull to boost volume. One of those levers is undoubtedly the launch of the Dodge Dart GT, slated to arrive in the second quarter of 2013. That could help regain the attention of performance fans, which could, in turn, generate new excitement about the Dart.

Will that be enough? Only time will tell. The Dart has a lot going for it, including a strong parent company with booming sales and a CEO whose aggressive approach to reinventing Chrysler has been successful, by and large.

On the other hand, as a compact sedan, the Dart has entered one of the toughest segments in the auto market. It's got to eat away at territory long-since claimed by the likes of the Ford Focus, the Honda Civic, and the Toyota Corolla. True, it would be unwise for Chrysler to avoid the segment altogether, but it's a very big gamble. We'll keep you posted.


This story originally appeared at The Car Connection

Ford Likes Turbocharging In Trucks, GM Dodges It: Which Is Better?

The Ford Atlas concept from the Detroit Auto Show, which gives a first glimpse of the all-new, next-generation versions of the F-150 pickup, has a lot of tech and design ideas packed into it. But truck shoppers often need to think about horsepower, torque, payloads, and pulling power first and foremost. So perhaps just as noteworthy is what Ford pointed to under the hood: a next-generation turbocharged 'EcoBoost' engine.

Ford Motor Co. [NYSE: F] has sold about 43 percent of its current light-duty pickups with the EcoBoost V-6, which made its debut for 2011, and it says that its 3.5-liter EcoBoost F-150 sales alone were greater than some rival full-size truck models' entire lineup. And the majority of F-150 models are now ordered with a V-6.

EcoBoost a success in trucks

2013 Ford F-150 LimitedAccording to Ford, the gamble has paid off; the EcoBoost engine has been very successful, with take rates much higher than even the automaker had anticipated. And it all but confirms that Ford will continue to use the ‘EcoBoost’ moniker into its next-generation trucks.

On the other hand, General Motors [NYSE: GM] has no immediate plans to downsize its pickup engines or introduce a turbo. Instead, it's completely re-engineered the V-6 and V-8 engines that go into its latest, heavily revised 2014 Chevrolet Silverado and 2014 GMC Sierra pickups. While all three of those engines are expected to post higher horsepower, torque, and fuel economy numbers, they're the same size as their predecessors (4.3 liters for the V-6; 5.0 and 6.2 liters for the V-8). And in each of these, GM is turning to cylinder deactivation technology (along with direct injection and variable valve timing) to make its traditional-sized engines more efficient.

(more...)

The Beast: President Barack Obama’s High-Tech Super-Limo

Last year the world snickered at the sight of the Presidential limousine high-centered on a Dublin driveway. But it pays to remember that we were laughing at the foreign stand-in to what may be the world's most high-tech mobile fortress.

The exact specifications of President Obama's limousine, also known as "The Beast," are a matter of national security, and therefore kept secret, but some of the car's key specs have been made public, and there are even more guessed at or postulated. Built by GM and nominally a Cadillac, the vehicle is actually based on the industrial-duty GMC TopKick truck platform. Thanks to its massive size and heft, The Beast drinks fuel at a rapid rate, scoring just 8 mpg.

Bullet-proof is just the beginning
It's known that the limo is heavily armored, with 8-inch thick doors, for example. The superstructure is made of titanium, ceramic, steel, and aluminum. It has its own oxygen supply, an advanced fire-fighting system, night-vision cameras, tear gas cannons, Kevlar-reinforced run-flat tires, and steel wheels that work even without a tire.

On top of all that, the limo also contains a supply of the President's blood for emergencies, an unspecified number of pump-action shotguns for defense, and the ability to lock down the cabin like a nearly-impenetrable panic room. The Beast is sealed to the environment, mitigating or eliminating the threat of biological attack.

Advanced communications
As you might imagine, all the armor-plating and environmental seclusion means almost no sound enters the cabin. To hear sounds outside the vehicle, it's equipped with microphones on the outside and speakers inside.

Further communications equipment enables The Beast's occupants to converse with several of the specialized vehicles that are part of the 45-vehicle motorcade that travels with the President in the U.S., or the handful of vehicles that accompany on trips outside the U.S. Full command and control communications are possible through relay to the White House Communications Agency Roadrunner vehicle, which transmits encrypted duplex radio and video through military satellites.

Speculated features
Unverified features of The Beast include the ability to fire infrared smoke grenades as a sort of chaff to screen the vehicle from attack by rocket propelled grenade or missile. Up front, the driver is thought to have a special video system to enable driving even in blackout or whiteout visibility conditions (smoke, complete darkness, weather, etc.). If you're having a hard time visualizing how all of this fits together, the U.K.'s Daily Mail has an excellent graphic representation here.

In all, it's a formidable vehicle--truly deserving of its nickname. And with all that we know about its defensive features, it seems unlikely it's not also equipped with rather significant offensive abilities as well--that is, beyond the complement of Secret Service agents inside, guarding it, and the vehicles following along.

Makes a person think twice about laughing at The Beast, or its similarly-able predecessor, when it gets stuck, doesn't it?

Some other fun facts about the history of Presidential Cadillac limos (via USA Today):


This story originally appeared at The Car Connection

2013 Detroit Auto Show Highlights

2014 Chevrolet CorvetteThere's every reason to have hope for the auto industry in 2013 if this year's Detroit Auto Show is any indication. While no one theme shone through, the general atmosphere was one of getting back to business as usual--usual, that is, before the economic collapse that threatened to topple the industry five years ago.

Giving credibility to the notion of a comeback, the 2013 U.S. forecast for total vehicle sales is nudging the 15.3 million unit mark,  the industry's highest since reaching the cliff in 2008, and an increase of nearly 50 percent from the low-water mark of 2009. Lending further credence is the auto sector's emergence as America's retail sales leader, topping all other industries by at least two percent on growth of almost eight percent in 2012.

There were even examples of excess in evidence in the new-model unveilings at and around the 2013 Detroit Auto Show, with classics like an on-stage rock act at the off-site, invite-only debut of the 2014 Chevrolet Corvette Stingray, the single breakout model of the show.

In years past, high-profile acts would grace stages and shake hands with CEOs, but in the past five years of right-sizing and rationalizing, the practice has fallen into disuse, an acknowledgement of the need for fiscal responsibility--or at least the appearance of it.

More mainstream brands held traditional press conferences and unveiled new products that showed the way forward for design, efficiency, and performance for their brands. Unlike recent years, however, there was far less emphasis on bringing products to market for the express purpose of gas mileage efforts.

Instead, improvements in fuel economy and the technologies that enable those improvements were integrated into otherwise mass-market vehicles, from the Nissan Resonance concept previewing the next Murano to the Cadillac ELR, which builds on the Chevrolet Volt's technological foundation to yield an elegantly styled luxury coupe with serious green credibility.

Electrification, as seen in the ELR and also in the new 2014 Infiniti Q50 Hybrid and even the Acura NSX concept, was also much more integrated and mainstream, rather than being the standalone feature to justify the construction of cars with few other redeeming traits. Electrification, or at least partial electrification, is reaching maturity, it seems.

The luxury market continues to drive progress, the segment seeing increasing sales throughout the 2012 calendar year. New models and concepts in Detroit point toward a continuation of luxury's role in bringing the industry back to where it once stood.

Taken separately, none of these developments define the atmosphere of the first important auto show of 2013, but together, they speak of an industry that is repaired and recovering, ready to forge forward in the new economy and the new environmentally-aware consumer market.


This story originally appeared at The Car Connection

Lance Armstrong’s Love Of Subaru & Nissan: Just More Lies?

Advertising is hard work.

You have to sift through mountains of research to identify your target audience. You have to refine your brand to convince that audience to buy your product.

And if you rely on a celebrity to hawk your wares, you have to lie in bed wondering if you'll wake up to find his/her face splashed across TMZ, linked to a jaw-dropping scandal.

It happens all the time. Hertz dumped O.J. Simpson in 1992, when rumors of his domestic abuse first surfaced. Michael Phelps lost a slew of endorsement deals in 2009 when the media uncovered photos of him huffing on a bong. (Though Mazda didn't seem to mind.) That same year, Tiger Woods was transformed into advertising kryptonite when his extramarital affairs became headline fodder. And Aflac kicked Gilbert Gottfried to the curb after he posted some insensitive tweets in the wake of the earthquake and tsunami that devastated Japan in March 2011.

Which brings us to Lance Armstrong.

Armstrong was recently a pitchman for the Nissan Leaf, and before that, he shilled for Subaru. Now that America's top cyclist has had a tête-à-tête with Oprah Winfrey and finally confessed what was surely one of the worst kept secrets in history, what are we to think? 

Debating Lance Armstrong "the person" is difficult, since few of us actually know him. Suffice it to say that the public's opinion of him hasn't always been positive, thanks to questionable moves like Armstrong dumping likable songstress Cheryl Crow around the time she publicly disclosed her struggle with breast cancer. Reaction to his chat with the Big O hasn't helped the guy's favorability ratings.

What effect does this have on his past work? Probably none at all.

Armstrong crafted his brand around health, fitness, and environmental responsibility -- a do-gooder image that helped balance some of the media's unflattering revelations about his personal life. Subaru and the Nissan Leaf were great fits for the Armstrong brand, and since both companies ended their relationship with him some time ago, the ads stand as a snapshot of happier, more innocent times.

As for Armstrong's future work, though, the prognosis isn't so good. True, he'll have an easier time rehabilitating his image than, say, O.J. Simpson. However, the volume and vehemence of Armstrong's lies about doping won't be easy for the public to forget.

But while the public may not forget his misdeeds, they may be willing to forgive them. In this era of Facebook, Twitter, cell phone cams, and reality television, the once-sharp boundary between public and private has all but disappeared. Private transgressions that would've been unforgivable 20 years ago (e.g. sex tapes, wild nights on the town, crude jokes) are now shrugged off. We know that what happens in Vegas no longer stays in Vegas: everyone has skeletons in her closet, and chances are, you can find them on YouTube.

Bottom line: the public has become jaded, which, in the long run, isn't such a bad thing for celebs. Sure, we know that what Armstrong did was wrong, but we also know that he's human, and -- like us -- imperfect. If anything can salvage his reputation going forward, that can.

[via New York Times, h/t John Voelcker]

====
Visit our redesigned used cars section today -- over 2 million live classified listings for sale:  Used TrucksUsed SUVsUsed ToyotasUsed Fords and more. 


This story originally appeared at The Car Connection