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Friday, December 31, 2010

Kia to Introduce Two New Models Within Six Months




Ryan Beene


Automotive News
December 20, 2010 - 12:01 am EST

MIAMI -- Kia plans to replace its slow-selling Amanti sedan this year -- close on the heels of the similarly sized, redesigned Optima sedan now being rolled out. But the exact timing of the launch is undecided.

The Amanti replacement, tentatively called the Cadenza, had been expected in April. Kia officials now say only that that car will be launched in the first half of 2011.

Bringing out the two sedans in rapid succession could create a problem, although U.S. executives say the vehicles are aimed at different customers.

The base Optima LX and midgrade Optima EX sedans have begun arriving at dealerships, and the Optima Hybrid will debut in the first quarter as the first hybrid in Kia's lineup.

The Kia Cadenza, which replaces the Amanti, is aimed at sedans such as the Toyota Avalon and Buick LaCrosse.

The Cadenza, already on sale in South Korea as the K-7, is longer and wider than the Amanti and is expected to be powered by a 3.5-liter V-6 engine. The Amanti name will disappear.

Potentially, the Optima and Cadenza "could have some overlap," Orth Hedrick, director of product planning for Kia Motors America, said here at the Optima Turbo launch. "But in our mind, they're aimed at two different buyers."

Hedrick said the Optima is targeted at mainstream buyers of mid-sized sedans, while the Cadenza will go after a different group. He declined to specify the company's plans for the Cadenza, but its look and dimensions would place it in a category similar to the Toyota Avalon and Buick LaCrosse.

At 196 inches, the Cadenza is less than five inches longer than the Optima. It sits on a 112-inch wheelbase, compared with the Optima's 110 inches.

Meanwhile, Kia is also scheduled to launch a redesigned Rio subcompact next fall and give its Soul small crossover a slight freshening next summer.

"This is absolutely the fastest product cadence that I've personally been involved with, and it just keeps coming," said Hedrick, formerly a product planner at Nissan North America and Toyota Motor Sales U.S.A.

Kia, which has launched six new or redesigned products since early 2009, has increased its market share for three straight years. It also recently spent about $1 billion on a plant in West Point, Ga., where it is hiring 1,000 employees.

So company executives say they were perplexed when the financial blog Wall Street 24/7 recently named Kia as one of 12 brands that will disappear in 2011, along with the likes of Blockbuster, Merrill Lynch and Moody's.

The blog argued that Kia sells "low rent" vehicles. Michael Sprague, vice president of marketing for Kia Motors America, called the notion "ridiculous."

Said Sprague: "Most logical people look at these kinds of lists and ignore them."

Thursday, December 30, 2010

CHRYSLER AND FORD RECALL VEHICLES

Automotive News

December 30, 2010 - 2:01 pm EST


CHRYSLER RECALL

DETROIT (Reuters) -- Chrysler Group LLC recalled more than 144,000 vehicles in three separate filings with federal regulators posted today.

In the largest of the three recalls reported to U.S. regulators, Chrysler said 65,180 Dodge Journey vehicles for the model year 2009 could have faulty wires within the front door wire harness.

Should those wires break, it could interrupt the circuits for the side impact sensors and de-activate the side airbag, Chrysler said in a notice to the U.S. National Highway Traffic Safety Administration.

Chrysler also recalled 56,611 Ram 1500 trucks for the model year 2011 because the rear axle bearing could seize, increasing the risk of a crash.

Additionally, the automaker recalled 22,274 model year 2008 to 2011 Dodge Ram 4500 and 5500 vehicles because the left ball stud could weaken and hurt the driver's ability to steer the truck.

FORD RECALL

Automotive News
December 30, 2010 - 10:00 am EST

UPDATED: 12/30/10 12:36 pm ET

DETROIT (Reuters) -- Ford Motor Co. is recalling about 20,000 new vehicles in North America, mainly its heavy duty pickup trucks, due to the chance that an electrical short could cause a fire, Ford and U.S. federal regulators said today.

Ford will inform owners of its F-series pickups, small sports utility vehicles Edge and Lincoln MKX of the potential problem by Jan. 10, according to a filing with the U.S. National Highway Traffic Safety Administration.

About 15,000 of the affected vehicles were sold in the United States, and most of the rest in Canada, said Wes Sherwood, Ford spokesman.

Sherwood said the automaker is not aware of any injuries, crashes or fires resulting from the issue.

In a six-day period, a supplier not identified by Ford made body control modules that may produce an electrical short, Ford told NHTSA in a filing.

Sherwood said the suspect vehicles were built between late October and mid-November.

"If an electrical short develops, an overheating condition may occur which can result in an unattended vehicle fire," the NHTSA filing said.

Of the nearly 20,000 vehicles affected, 13,200 are Super Duty F-Series trucks, which are the F-250, the F-350 and the F-450 models.

Some 476 F-150 pickup trucks were affected. That model is the biggest selling vehicle in North America.

About 6,200 Edge and MKX models are affected, Sherwood said. Edge and MKX are also known as crossover vehicles, because they are built on a car platform rather than a truck platform as are larger SUVs.

Ford will pay for repairs performed at Ford dealerships. Sherwood said the repair time is relatively short, but he did not specify how long each repair will take or how much they will cost the automaker.

Wednesday, December 22, 2010

Insurance Institute Top Safety Picks

(Adapted from The Associated Press, Ken Thomas, December 22, 2010) 

WASHINGTON (AP) -- South Korean automaker Kia was one of the vehicles to lead the insurance industry's annual list of the safest new vehicles, used by safety-minded consumers looking to buy a new car.


The Insurance Institute for Highway Safety recognized 66 vehicles on Wednesday with its "top safety pick award" for the 2011 model year, the most-ever awarded by the Virginia-based group. The number was more than double the 27 vehicles selected last year.

Hyundai Motor Corp. and its affiliate Kia Motors Corp., and Volkswagen AG and its Audi brand received the most awards with nine, followed by eight awards apiece by General Motors Co., Ford Motor Co. and Toyota Motor Corp. The awards, used in advertising to attract car buyers, bolster Hyundai and Volkswagen as they attempt to build a larger foothold in the United States.

Kia was recognized for the Optima midsize car, the Forte and Soul small cars, and the Sorento and Sportage SUVs.

GM's winners include the Chevrolet Malibu, Cruze and Equinox; Cadillac CTS and SRX; Buick LaCrosse and Regal and GMC Terrain. Chris Perry, vice president of Chevrolet marketing, said the award would build on "the already strong global safety reputation of the Cruze."

The vehicles were chosen for protection in front, side and rear crash tests. To qualify for the award, the insurance industry group also requires the vehicles to have anti-rollover electronic stability control, or ESC, and receive top scores in roof strength tests.

Institute president Adrian Lund credited automakers for "quickly rising to meet the more-challenging criteria for `Top Safety Pick.'" He said several automakers have requested tests for new models coming out early next year and Lund predicted more winners would be added

Monday, December 20, 2010

New Sierra HD Concept














All Terrain concept hints at GMC Sierra HD's brawny future

Mike Colias

Automotive News
December 17, 2010 - 7:14 am EST


DETROIT -- GMC is showing off an off-road, heavy-duty pickup concept that hints at bold, muscular styling for the next-generation Sierra HD.

The GMC Sierra All-Terrain HD concept, underpinned by the 2011 Sierra 2500 HD's re-engineered four-wheel-drive chassis, sports a wider track, brawny grille and an extra 3 inches of ground clearance. It was unveiled yesterday at a media preview for next month's Detroit auto show.

The concept was given the same 6.6-liter Duramax diesel engine mated to an Allison 1000 six-speed transmission used in the Sierra HD. A restyle of the Sierra HD is expected in 2014 or 2015.

“You certainly could take it as a hint” of where the next-generation Sierra HD is headed, GMC design manager Carl Zipfel said.

While the massive 35-inch tires, mounted on 20-inch aluminum wheels, and Fox off-road shocks likely would be for “more of a niche or special edition” vehicle, Zipfel said many of the styling features could stick in Sierra restyle.

An all-terrain GMC pickup would compete with the Ford F-150 SVT Raptor and the Ram Power Wagon. It also would offer General Motors Co. an off-road vehicle to replace Hummer.

“It's [for] that premium customer who demands towing and hauling capability and off-road capability in one package,” Zipfel said.

Flared fenders and a streamlined front bumper fully expose the tires and allow for more ground clearance -- 21.1 inches. A beefed-up, forced-induction hood feeds more air to the engine.

The crew cab truck's 5-feet-8-inch bed, taken from GMC's light duty lineup, is nearly a foot shorter that the Sierra HD for better off-road handling. It includes a pair of lighted storage compartments on the sides of the bed.

Motorized, illuminated assist steps for both the cab and cargo bed offer easier access and maximize ground clearance.

GMC didn't say if or when it would green light the pickup.

Lisa Hutchinson, GMC product marketing director, said in a statement: “Although it is strictly a concept, it is a pretty realistic one.”

Tuesday, December 14, 2010

Toyota Reputation Takes a Hit - GMC and Kia Rise

Toyota reputation drops among U.S. new-car buyers, J.D. Power says


Laurén Abdel-Razzaq

Automotive News
December 14, 2010 - 4:37 pm EST

UPDATED: 12/14/10 6:41 pm ET

DETROIT -- An increasing number of new-car shoppers are staying away from Toyota showrooms because of the company's quality and safety problems, according to a study by J.D. Power and Associates.

The market research firm's 2010 Avoider Study, which was released today, found that 19 percent of new-vehicle shoppers surveyed said they avoided Toyota because of “bad reputation of manufacturer” -- a startling increase of 17 percentage points from a year ago.

Fifteen percent of respondents cited a “bad experience with this manufacturer,” up 12 percentage points from 2009. And 15 percent said they were “concerned about the future of this vehicle brand,” up 11 points from 2009.

Respondents could cite several reasons why they did include a brand in their search.

“In terms of reliability perception, Toyota has always done well in the past,” said J.D. Power and Associates analyst Kerri Wise. “A couple of areas where Toyota really took a hit were in terms of bad reputation of the manufacturer and bad experience with the manufacturer.”

.........................................................................................................................................................
U.S., Koreans make strides

U.S. and Korean car brands have been the most successful at improving customer perceptions of reliability this year, according to the new J.D. Power study, which measures which brands and models customers choose not to consider when shopping for a new vehicle.

Among the most improved brands in terms of consumer perception of reliability this year are Ford, GMC, Hyundai, Kia and Ram. Audi, Scion and Smart also made significant strides among consumers. Each of these brands reduced customer avoidance by four or five percentage points from last year.

Wise said people who have never had firsthand experience with Toyota are more likely to have a poor perception of the company, while people who have owned or own a Toyota are likely to continue considering the automaker.

In an odd twist, only 16 percent of buyers said they avoided Toyota because they “didn't want a foreign/import vehicle,” a reduction of 16 points from 2009, when 32 percent of the buyers avoided Toyota for that reason.

Perceptions slow to change

Wise said one-fifth of customers surveyed avoided a vehicle because of reliability concerns, and these perceptions are slow to change.

“It can take three to five years to change perception and this is after brands have improved in their actual reliability,” said Wise.

The brands that have higher perceived reliability are doing a few things well. They are improving the reliability of their vehicles, using word-of-mouth references and hitting the right notes with their marketing messages, the researcher said.

Exterior styling is the most frequently cited reason for avoiding a model -- 35 percent of new-vehicle owners said it was important to them. The next most important reasons are the cost of the model (23 percent), doubts about reliability (20 percent), dislike of the interior styling (19 percent) and a unfavorable perception of a manufacturer's reputation (16 percent). Some brands produced scores above 100 percent because respondents were allowed to cite more than one factor.

Maintenance costs

For shoppers looking at premium models, concerns over maintenance costs was also an important factor, even though many of these brands come with free maintenance as part of the purchase price.

Some redesigned car models that came out in the past year were much more successful compared to the models they replaced. They include the Cadillac SRX, the Ford Taurus and the Kia Sorento, the study found. They also outshine other vehicles in their respective segments.

Wise said this indicates certain automakers have been successful in changing customer perceptions.

“While most redesigned models have higher consideration than the previous-generation models, some models are far surpassing their predecessors, and in the process, are attracting many additional customers to the brand,” she said.

J.D. Power and Associates surveyed 25,000 owners who registered a new vehicle in May 2010. The firm conducted the survey between August and October. This is the eighth consecutive year the Avoider study has been conducted.

Friday, December 10, 2010

Honda Tops in Customer Loyalty - mKia Coming on Strong

Ford, Honda tops in U.S. customer retention; Kia rising fast



Brand loyalty survey finds that 'fun' is becoming more important

Laurén Abdel-Razzaq

Automotive News
December 9, 2010 - 3:42 pm EST

Ford and Honda have vaulted past Mercedes-Benz to tie for the highest customer retention rate among automotive brands in the United States this year, according to a new study.

The two mass-market brands retained 62 percent of buyers this year, J.D. Power and Associates said in its annual Customer Retention Study released today.

Ford rose five spots from 56 percent in 2009 while Honda increased one spot from 64 percent last year. Mercedes fell five spots, from 66 percent in 2009 to 59 percent in 2010, J.D. Power said.

The firm said Ford's higher retention rate was driven mostly by the Edge, F-Series and Fusion models. Honda's retention was driven by the Accord, CR-V and Pilot, the firm said.

“Ford, specifically, (is) producing products that have vehicle appeal, that have good styling and are fun to drive,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “For Honda, it's still more about resale value.”

Kia Motors had the largest increase in brand loyalty from last year, jumping by 21 percentage points to a 58 percent retention rate.

Overall, the average customer retention rate for the industry remained at 48 percent, even though some brands shifted in the rankings. Of the 32 brands ranked by the study, 16 improved their retention rates from last year, 14 declined and four did not change.

Fun to drive

A growing number of new-vehicle buyers consider a fun driving experience when it comes to being loyal to a certain brand, J.D. Power said.

According to the study, the desire for a fun driving experience as a reason for brand loyalty has increased in importance by 8 percentage points -- to 55 percent of respondents. In contrast, sticking with one automaker because of resale value has become less important, decreasing 11 percentage points to 45 percent.

“Last year we saw that resale value was important, consumers were a little bit more tight with their money, so that led to people staying with their brand” Festekjiansaid.. “Now we're seeing a shift in people who are interested in going back to some of the fundamentals of styling.”

Power said the top reason for remaining loyal to a brand this year was “seating arrangements,” chosen by 70 percent of the respondents -- unchanged from last year. Other top reasons were look/style, 65 percent; safety, 64 percent; deal incentive, 59 percent; and quality, 59 percent. Those results changed little from last year.

J.D. Power and Associates looked at more than 123,600 responses from new-vehicle buyers and lessees, of which more than 81,000 were replacing a vehicle they had purchased new. Power conducted the study between February and May and again between August and October. This is the eighth year J.D. Power and Associates has conducted this study.

Conquest rates

Besides customer retention, the study also looked at the rate at which auto brands capture customers from their competitors -- what J.D. Power and Associates calls “conquesting.”

Domestic brands have made strides during the past two years in grabbing customers from import brands. This year, 14 percent of domestic brand buyers previously owned an import, compared with 10 percent in 2008.

Despite the fun-to-drive factor, look and styling remain the top reasons consumers will stick with one brand, Festekjian said.

Although it is difficult to predict future trends, Festekjian said, right now customers are looking at a combination of factors in determining whether to stick with one auto brand. Brands that have good quality, good appeal and can bring people into showrooms are still important, he said.

“Consumers are shifting now to where they want it all,” Festekjian said. “They want the vehicles to be fun to drive and maybe aren't thinking of it so much as a vehicle to get me from point A to point B.”

Automotive News

Automotive News

Wednesday, November 10, 2010

Honda Accord Wins Top Safety Award

Honda Accord assigned highest rating in revised U.S. crash tests


Automotive News
November 10, 2010 - 3:29 pm EST

WASHINGTON (Bloomberg) -- Honda Motor Co.'s Accord received the best possible safety rating among 2011 model-year passenger cars tested for crashes under new U.S. evaluation standards, edging ahead of Toyota Motor Corp. and Hyundai Motor Co. sedans.

The mid-size Accord, Honda's top-selling U.S. model, got an overall five-star rating, according to results posted on the U.S. National Highway Traffic Safety Administration's website.

Of 40 models tested so far, six rated five stars overall. The Accord is the first to get five stars in each of three crash categories tested by NHTSA.

Transportation Secretary Ray LaHood said last month that the ratings are aimed at boosting overall safety and ensuring the results more accurately reflect the crashworthiness of new cars and light trucks. Changes include the use of female crash- test dummies for the first time, along with male versions, to collect data about injuries to the chest, head, neck and legs.

The 2011 Accord sedan received five stars on side and frontal crashes and rollovers, according to NHTSA.

Hyundai's Sonata, with an overall five-star rating, scored the top score on side-crashes and rollovers and four stars in frontal crashes, NHTSA said last month. Toyota's Camry, the best-selling U.S. passenger car, rated three stars overall, earning three stars for side and frontal crashes and four stars for rollovers.

The agency continues to test 2011 model-year cars and trucks and is adding the results as they are complete. The results are available at www.safercar.gov.

Monday, November 8, 2010

Walker Recognized by Better Business Bureau

The Better Business Bureau Serving Central Louisiana will recognize Walker Automotive and 11 other Central Louisiana companies at the Annual Better Business Bureau Torch Award Luncheon on Friday, November 12, 2010.


Businesses are evaluated for their commitment to customer service through exceptional standards for ethical business practices. The awards committee looks at how the company benefits customers, employees and the community.

Walker's Mission Statements exemplifies its commitment to customer service.  Employees understand that Walker is committed to creating a culture of quality and service and that the primary goal is to exceed all customer expectations.  Walker is committed to honesty, integrity, quality and excellence. 

Walker was founded in 1919 as Alexandria Auto Company, Inc. by Foster Walker Sr.  After returning from World War I, Foster Walker Sr. began selling Durant, Reo and Star automobiles from a gas station in Downtown Alexandria.  That business eventually became Walker Oldsmobile Company and is now run by Foster Walker III.  Ninety years after its inception the dealership has expanded from its meager origins to three locations, 8 manufacturers, three service departments and a collision center.  Over the last 9 decades, Walker has won numerous national and factory awards for all aspects of its business and offers new and pre-owned vehicles ranging from quality entry level models to German luxury vehicles.  

Wednesday, November 3, 2010

New Legislation for 2011

As 2010 closes and a New Year dawns attention inevitably focuses on changes that will have to be made for the New Year that will impact business. Congress routinely makes laws and then sets implementation dates for the first day of the New Year. So it is around this time that businesses begin the adaptation process for any new legal or regulatory changes that are looming.


For 2011, the car business (and other financial institutions) will need to comply with two new significant regulatory changes that will affect how information is distributed to consumers that finance vehicles, repairs or parts. If you have purchased a vehicle lately, you realize that there is a mountain of accompanying paperwork associated with the purchase. Be assured that in most cases it is not the dealer requiring all of the paperwork. Dealers are mandated by a maze of federal and state laws and other federal and state regulations. When the ball drops on 2011 you can expect just a little more paperwork courtesy of two new federal regulations requiring compliance from car dealers who offer credit sales to customers.

Most consumers’ car purchases are made with credit. Before a bank will lend money, they will determine creditworthiness based on the customer’s credit score. The credit score, or FICO, is a three-digit number designed to gauge creditworthiness. Lenders use this number to determine if an individual is worthy of receiving credit and, if so, at what interest rate. The score ranges from 300 to 850 and is calculated using a complicated formula consisting of private information including income, credit history, debt and other factors. The credit report contains the consumer’s name, address, social security number, employment information and other personal and private information. Usually, a consumer with a lower credit score and higher risk rating will get a higher interest rate and other less favorable credit terms. The score is basically a rating of default risk attributed to a customer. A high score means low risk of default and a low score means high risk of default.

One new rule, “The Risk Based Pricing Rule”, requires any company that uses a credit score in connection with accepting or denying credit to deliver notice to a consumer whose credit application has been approved (but generally on less favorable terms) to the existence of negative information in the credit report. Basically, the report will alert consumers to negative information in their credit report that may have affected the terms of the credit. Those terms could be affected by increasing the interest rate charged, limiting the length of the loan, or requiring additional money down before accepting the credit application. The purpose of the regulation is to improve the accuracy of credit reports by giving consumers the information contained in the report and thus an opportunity to correct errors. More detailed information can be obtained at www.ftc.gov.

The second rule that will be implemented is the “Privacy Rule”. While this rule has been in place for a number of years, the notice forms have now been standardized to allow consumers an easier way to determine how companies use their personal information. It has taken the Federal Trade Commission nine years to promulgate rules for this action since implementing it in 2001. Basically, the rule requires lenders to alert their consumers how personal information such as social security numbers, addresses and other non-public information is shared with outside companies and related organizations. The new notice is easier to read and is formatted in such a way that consumers can easily determine how their information is treated. Some sections allow consumers to “opt-out” of any sharing and the new report will alert the consumer to that option. More information on this rule can also be found at www.ftc.gov/privacy.

Both rules favor the consumer and make the financial process more transparent. Consumers will now be armed with more information about their credit score and, in turn, be able to correct inaccuracies. Additionally, consumers will be able to make more informed decisions about the control of their personal information after an initial transaction. While both rules are consumer friendly, they will make the financial process just a little longer through no fault of your dealer.

Friday, October 1, 2010

BMW to Recall 198,000 Autos in U.S. for Brake Defects

Neil Rowland - Automotive News Online October 1, 2010

WASHINGTON -- BMW of North America is recalling 198,000 vehicles to fix leaks that can develop in their power-braking system in the second safety setback for the company this week.
The company said in a statement today that the recall will include BMW 5 Series, 6 Series and 7 Series vehicles powered by V8 and V12 engines in 2002-2010 models. Also covered will be Rolls-Royce Phantom vehicles from the 2003-2010 model years.

The leaks can reduce the effectiveness of the power brakes, though no accidents or injuries have been reported, the statement said. Mechanical braking is still available to slow and stop the affected vehicles.

The BMW North America recall announced today is one of its biggest ever, company spokesman David Buchko said.

BMW's announcement follows by days a disclosure by federal regulators that they have opened an investigation of as many as 80,000 BMW 2004 and 2005 Mini Cooper models for possible loss of power-steering control.

The National Highway Traffic Safety Administration disclosed Tuesday that it has received 54 complaints and “a confidential number of field reports.”

“When the power steering assist stops working it requires increased force to steer the vehicle,” NHTSA's statement on its Web site said.

The complaints indicated that the power-steering problems may be related to a power steering pump failure, the agency said.

Tuesday, August 17, 2010

General Motors Recalls Crossovers

WASHINGTON -- General Motors Co. said today it is recalling 243,000 crossover vehicles over concerns their second-row safety belts could be defective. GM said the recall covers 243,403 vehicles -- the 2009-2010 Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook -- "to inspect second-row safety belts for damage that in rare cases could make an occupant think the belt is properly latched when it isn't." Some vehicles may have a condition where the second-row seat side trim shield restricts the upward rotation of the seat belt buckle when the seat back is returned to a seating position after being folded flat, GM said. "Because of the potential for a false-latch condition, we want customers to return their vehicles to have the recall repair performed as soon as possible," said Jeff Boyer, GM executive director of safety. Owners will begin receiving letters this month to schedule appointments with dealership service departments. Read more from The Detroit News.

Monday, August 16, 2010

Mzda Recall

MONTEREY, Calif. -- Mazda Motor Co. is recalling more than 200,000 Mazda3 and Mazda5 vehicles from the 2007-2009 model years because of faulty power-assist steering pumps and pipes. Mazda alerted the National Highway Traffic Safety Administration of the recall on Thursday, Robert Davis, Mazda's senior vice president of product development and quality, told Automotive News. The recall comes after NHTSA opened an investigation in June into power steering failures in the Mazda3 from the 2007-2009 model years. NHTSA received 33 complaints of power-assist steering failures in Mazda3 vehicles from the 2007-2009 model years, and loss of steering control was reported as the cause of three crashes, according to NHTSA investigation documents. Vehicles that experience a power steering failure “will require more physical effort to steer, but at no time is the vehicle undrivable,” Mazda said on its Web site. It also posted a video explaining what drivers should do if the problem happens. Owners of the vehicles can go to dealerships to replace the power steering pump and pipes connecting it to the steering rack. Read more from Automotive News.

Thursday, July 29, 2010

Financial Literacy and Interest Rates

A recent article in an automotive trade magazine preached the benefits of teaching financial literacy to younger members of society. The purpose, of course, is to enable the a younger population to handle the financial stresses that they will encounter as they get older. Quite simply, most adolescents (and many adults) have no clear idea how to balance a checkbook, develop a good credit rating, or successfully manage credit. One of the areas that many customers question is why the interest rate on a particular vehicle loan is at a certain level. Expectations of low interest rates are often quashed when customers learn how financial institution personnel and computers determine interest rate levels.

Many variables affect the interest rate a particular lender is willing give to a customer. The first and foremost consideration is the customer’s credit or “beacon” score. Credit score has been a subject of many of my previous articles and without rehashing all of the particulars, customers applying for credit need to be aware of their true credit score. A credit score is determined by multiple factors but most importantly the timeliness with which bills are paid. Pay them late and your score goes down. Don’t pay them at all and the score plummets. Pay them on time while carrying a lot of credit and the score remains marginal.

The only place to receive your true credit score is from one of the scoring agencies like Transunion or Equifax. Sites like “freecreditreport.com” use their own scoring system and often inflate scores and mislead customers to sell one of their products. Accordingly, the best thing to do is to start by getting your correct information from a reputable source.

When buying a car, the decision to buy new or used often affects the interest rate. While a customer may save money on the price of a pre-owned vehicle, interest rates are usually higher because the rates are not supported by the manufacturer’s “captive” finance companies. The only exception is with manufacturer’s “certified pre-owned” programs. These vehicles are often supported by special interest rates from the manufacturers as an incentive to attract brand loyalty. The goal is to get a buyer in the seat of one of their products and the attractant is the special interest rate and warranty coverage attached to the make and model of vehicle. To qualify for these rates, customers must possess a better than average credit score. A lower credit score usually translates into a higher interest rate.

Multiple other factors affect may affect your the interest rate. Banks and lenders like to see customers put money down on the purchase. The days of “zero down” are not gone, but are slowly becoming extinct. Down payments are attractive because the purchaser has a little of their own money in the game as a sort of “good faith” in the purchase. When a customer advances money in the form of a down payment, the chances of an early default on the loan are reduced. This makes the customer a better credit risk, and, in turn a better candidate for a lower rate.

Credit score alone is not determinative of the rate that a bank or lender will offer. Many customers have good credit scores because of consistent payment history. However, a closer look at the credit bureau will reveal the customer is barely hanging on. In some circumstances only minimum payments are made to lenders and the debt to income ratio is high. The debt to income ratio can be defined as a calculation that analyzes how much of an individual's monthly income is used for payment of debt. A lot of debt with a lot of income still makes the ratio high and the customer becomes more of a credit risk resulting in a higher interest rate. Additionally, the length a credit file has been established has a bearing on the interest rate. A person with good credit but minimal credit history will probably have a higher interest rate. This occurs because the lender cannot make an accurate assessment of risk based on the limited credit information in the file.

I was able to write down about twenty-five other factors that were considerations for interest rate levels before writing this article. Of course, most of this is determined from an algorithm in a computer database that crunches the individual factors and then returns a proposed loan amount and interest rate. Human credit analysts still assist and make individual determinations. Because of space limitations, I cannot include them all but other considerations should be noted. Some other factors that the computers and the analysts consider will be:

• Accounts being individual or joint;
• Total monthly and household income;
• Current employment status and length of time with an employer;
• Educational level;
• The length or term of the loan;
• Previous car credit and length of car credit;
• Ownership or rental of residence;
• Length of time the credit file has been established.

All of the items that are determinative of your interest rate may also affect your credit score. Educating yourself and being financially literate will assist you in paying down debt and raising your credit score. Then the next time you apply for a car loan you can be one of the people who falls into the category of “a well qualified buyer” that is always refered to in the hastily spoken disclaimer at the end of the advertisement. For more information on this and other topics visit my blog at www.walkerwill.blogspot.com.

Another Toyota Recall

From Today's Wall Street Journal

Toyota Motor Corp. is recalling 412,000 passenger cars, mostly the Avalon model, in the U.S. for steering problems in which three accidents have been reported, the auto maker said Thursday. The 373,000 Avalons being recalled range from the 2000 model year through to 2004 and have improper casting of the steering lock bar—a component for the steering system—causing cracks to develop on the surface. In some cases, the crack can cause the lock bar to break, potentially leading to a crash if the steering wheel locks, the world's No. 1 auto maker by car sales said. The latest recall comes on top of some 8.5 million vehicles that have been recalled around the world by Toyota since October for a spate of problems, including faulty floor mats, defective gas pedals and braking software glitches.

Thursday, July 15, 2010

More Toyota Trouble

Toyota to fix over 735,000 cars outside recall



Wed, Jul 14 2010

* 2001-2003 RAV4 models may experience uneven shifting
* 2009-2010 Matrix, Corolla models may have steering issue
* Technical service bulletin issued for Matrix, Corolla
* Matrix, Corolla, and RAV4 issues did not lead to recalls (Recasts to include technical service campaign for 500,000 Matrix and Corolla issues; adds Toyota confirmation, comment)

By Bernie Woodall and Soyoung Kim

DETROIT, July 14 (Reuters) - Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) said on Wednesday it will extend warranties on about 235,500 RAV4 vehicles and address steering complaints on as many as 500,000 late model Matrix and Corollas in the United States.
Toyota is taking the action to repair vehicles outside the channel for recalls tracked by U.S. regulators because it does not consider the reported problems to be safety issues.

Drivers of 2001 to 2003 model year RAV4s equipped with automatic transaxles may experience a "harsh shift" or have a dashboard light turn on indicating a malfunction, Toyota said in a notice to U.S. dealers.

Meanwhile, drivers of about a half million U.S. Matrix and Corolla vehicles from model years 2009 and 2010 may experience steering drift, the company said.

U.S. Toyota dealers will fix the steering for owners who complain, said Toyota spokesman Brian Lyons. He said the matter was not a safety issue but one of customer satisfaction.

In February, when the U.S. National Highway Traffic Safety Administration had opened a preliminary investigation into complaints over steering issues on the Corolla and Matrix.

At the time, NHTSA had received 168 consumer complaints about the steering issue linked to eight crashes and 11 injuries.

Toyota has said Corollas made in Japan and Europe had different parts for steering than the affected models sold in North America.

Lyons did not provide an estimate of how much the repairs would cost Toyota.

The automaker estimated that fixing the steering would take about four hours representing a labor bill of about $350 per fix based on average dealer costs.

RAV4 SHIFTING ISSUES

Meanwhile, owners of RAV4s covered by the extended warranty will be sent a letter this month advising them to bring their vehicle to a dealer to be examined if they have experienced a problem with shifting.

Toyota will pay for repairs and extend warranties of the affected RAV4s, the note sent to dealers said.

The notice of the vehicle repair campaign was sent to Toyota's U.S. dealers on Monday. A copy of the Toyota "Customer Support Program" was obtained by Reuters.

Major automakers often extend warranty terms or notify dealers that they will pay for repairs that they judge to be unrelated to the kinds of safety issues covered by recalls.

Toyota's RAV4 warranty campaign comes after a series of high-profile recalls that have damaged the automaker's reputation for quality. More than 10 million Toyota and Lexus models have been recalled since last fall worldwide.

Toyota said that solder in one of the circuits on the RAV4's engine control module is at risk for peeling over time.

In most cases, dealers would be able to fix any vehicle problems by replacing the engine control module, an onboard computer, Toyota said.

In some cases, dealers will also have to replace the automatic transaxle on affected RAV4s, Toyota said.

Hundreds of U.S. consumer complaints have been filed with the National Highway Traffic Safety Administration about transmission-related problems with the RAV4.

In some cases, drivers have complained of repair bills of several thousand dollars or sluggish acceleration that put them in dangerous situations.

One driver of a 2002 RAV4 told U.S. regulators that in March 2007 he was involved in a minor accident after the "automatic transmission went crazy and (the) car started lunging forward and then not going when it should."

"We have not felt safe enough to even keep the car on the road," the consumer told NHTSA.

No other Toyota, Lexus or Scion models are impacted by the issue, Toyota said in its notice to dealers.

RAV4 owners who have already paid for repairs can apply to be reimbursed, Toyota said. New repairs must be made at Toyota dealerships. (Reporting by Bernie Woodall and Soyoung Kim; Editing by Leslie Gevirtz and Richard Chang)

Wednesday, June 16, 2010

The New LaCrosse

LaCrosse: The Buick we finally would rather have
USA Today Drive On Blog
June 15, 2010
By Chris Woodyard

A big comfortable sedan with ample power and nimble handling, a blow-away great interior and a price tag that seems about $8,000 less than you'd expect to pay.

That's the Buick LaCrosse, which Drive On finally took for a spin even though it's been out for months. Why haven't we paid much attention before? Because it's a Buick.

LaCrosse seems impressive because it comes from a brand that makes you think of your father, or your father's father. But it is getting discovered. LaCrosse sales were up 212% last month from a year ago on the strength of the new model. For Buick executives, the challenge is just to get potential customers in the car.

"The product is the great proof point," says Roger McCormick, Buick's chief marketing guy, adding, "once people spend time in the car."

One victory: the percentage of customers coming to the brand are arriving from trade-ins from other brands, including imports he says. It's used to be 22%; now it's closer to 50%.

Though the starting price of a LaCrosse is around $26,000, McCormick says the average price of the LaCrosse leaving showrooms is around $32,000, an increase over the model it replaces. The one that Drive On tested was $37,280, and it had about every modern convenience and gee-whiz feature that you could pack into a car.

Buick is about to shift its marketing focus to the smaller Regal, but if you really want to see what's going to happen to this brand, keep your eyes on LaCrosse.

Friday, June 4, 2010

Chrysler is Now Recalling Cars for Pedal Issues

From Automotive News Online Today.

Chrysler recalls more than 25,000 vehicles with CTS pedals


Automotive News
June 4, 2010 - 2:46 pm EST


DETROIT (Reuters) -- Chrysler Group is recalling more than 25,000 Dodge Caliber and Jeep Compass vehicles to address the risk that accelerator pedals could become stuck and cause unintended acceleration, the automaker said today.

The recall comes five weeks after U.S. safety regulators opened an investigation into potentially sticky accelerator pedals in Chrysler vehicles, based on five consumer complaints.

Chrysler said in a filing with the National Highway Traffic Safety Administration that some of its 2007 model-year Caliber and Compass vehicles, manufactured between March and May of 2006, might have been equipped with faulty accelerator pedals.

CTS Corp. made the pedals involved in the recall. Elkhart, Ind.-based CTS is also the supplier of pedals involved in Toyota Motor Corp.'s January recall of more than 2 million vehicles.

Chrysler said the accelerator pedal for the Caliber and Compass vehicles is a "completely different" design and manufactured with different tooling than the pedals involved in Toyota's recall.

Chrysler also said its recalled vehicles are equipped with a brake override system, which allows the engine controller to reduce power and stop the car when both the brake and the accelerator are depressed.

Monday, May 31, 2010

Regal Wins High Praise from Wall Street Journal

An article form the Wall Street Journal.

SEAT MAY 29, 2010 Confession: The Regal's a Pretty Great Car

Love the bailout or hate it, GM has a success in its Europe-derived Buick sedan; an automotive Zelig

By DAN NEIL

It gives me no joy to write this. I know it will upset a lot of readers, and that's never pleasant. So I might as well come right out and say it: The new Buick Regal is a really nice car.

If you regard the federal government's taking a majority stake in General Motors in 2009 as an unforgivable overreach by the Socialist in Chief Obama, a political payoff to the United Auto Workers, a fleecing of the taxpayer, etc., nothing would conform to that narrative better than a ugly, spastic Buick Regal. After all, the government can't do anything right, can it?

Unfortunately for you—and fortunately for the rest of us, who want the company to succeed and in so succeeding make taxpayers whole on their investment—the post-bankruptcy, fed-owned GM is gaining altitude. The company posted a healthy Q1 profit; global sales are rebounding; GM is a fraction of its former, overgrown self; the board and most of the executive management has been replaced; the UAW has been given a pretty good haircut; the electric Chevy Volt is on track to be released on time, as promised. Hundreds of thousands of auto-industry jobs were preserved in the past year. If GM had gone into liquidation—remember, there was no financing available for a conventional Chapter 11 bankruptcy—GM's collapse would have acted like a black hole, further destabilizing the economy and obliterating the value of car companies and suppliers around it.

I'm not saying it was pretty. So little of summer '09 was. And I'm not predicting that taxpayers will absolutely break even. I am saying the alternative would have been far worse.

Why, Martha, can't this guy keep politics out of car reviews? Because car building, and car buying, is inherently political. I've received dozens of purple-faced emails in the past year declaring "I'll never by another GM because of [circle one] a) the bailout, b) Obama, c) the UAW...." That's perfectly legitimate. Consumers vote with their dollars, and as much as we'd like the universe of commerce to operate outside the gravity of ideology, it doesn't.

So while I understand this is a season of deep discontent with big-G government, with respect I invite you to consider the possibility that Government Motors will actually build some fine cars.

The Regal has been a kind of automotive Zelig, everywhere you look in the GM bailout. Development of this global, midsize, front-drive platform (Epsilon II) was begun at GM's Opel operations in Russelsheim, Germany, in 2004. It was intended to be the next-generation Saturn Aura for North America but when the money-losing Saturn division went away in the reorganization plan of 2009, GM quickly rebadged the car—known as the Opel Insignia in Europe—as a Buick. It's also built and sold as a Buick in China, where it's been a huge success (Buick's ascendance in the Chinese market is the main reason GM kept the division and dumped, say, Pontiac).

Meanwhile, as GM was lurching toward bankruptcy in the spring 2009, it put Opel up for sale, which would have been a monstrous mistake, given the division's role in global product development. But by November, the board of the new GM—made up mostly of Obama Administration appointees—wisely decided to hang on to Opel.

All of which led to the Opel Insignia/Buick Regal's arriving on our shores this month. How is it? Well, it's kind of terrific. Thick-shouldered, wide, with a graceful canopy (and a Hofmeister kink positively stolen from BMW) and about as nice a front end as can be managed with Buick's fussy waterfall grille, the Regal's look is competent and substantial, with the kind of sporty visual amplitude you'd expect of a Autobahn-bred car. I really like the hockey-stick-shaped accent line in the fuselage. This car nicely bottles pride of ownership.

The base model, the CXL, is powered by a direct-injection, 2.4-liter, 182-hp four cylinder and six-speed automatic with manual-shift mode. Amenities include heated leather seats, OnStar and Bluetooth. Price: $26,995. For $2,500 more ($29,495) Buick will throw in its 2.0-liter, 220-hp turbocharged Ecotec four cylinder, 19-inch wheels and what GM calls Interactive Drive Control, which includes Sport and Touring modes for suspension, throttle response, steering, etc. The highway fuel economy for the nonturbo is 30 mpg, while the turbo returns 29 mpg.


The Buick Regal is a nut-and-bolt clone of the Opel Insignia, which was Europe's Car of the Year in 2009. A half-foot shorter than the LaCrosse (also Insignia-based) the Regal feels like it should be pounding around the Périphérique instead of muddling through California freeway traffic. Taut and torquey, with bankable style and features, the Buick hands it to its intended competitor, the Acura TSX.

The Benefits of Bailout

Prebankruptcy GM's list of problems was long and stubborn. High pension and health-insurance liabilities, a vastly overgrown, insupportable corporate structure, and then the crisis in auto sales, which plunged them below their inflated break-even sales volume. But its biggest problem, many would argue, was a self-inflicted wound called product. The company is still a long way from healthy, but only the most ideologically driven naysayer could drive the Regal and conclude the company's products aren't coming back.

Buick execs have confirmed a yet-hotter edition of the car, the Regal GS—dredging up the old Gran Sport name—will hit the market next year. That car will have a high-output turbo engine (255 hp), six-speed manual transmission, all-wheel drive, limited-slip differential, knotty Brembo brakes, the whole smash.

I spent most of a day this week thumping a well-equipped turbo model (about $35,000) through the hills east of San Diego and came away deeply impressed, if not quite panting with desire. For starters, the interior is excellent, easily the equal of the Hyundai Sonata or Acura TSX, which bracket the Buick in price. The Regal's central console, with flush-faced, soft-touch buttons arranged in intuitive geometry, is impeccable. Between the seats of my tester was a multifunction rotary control, a la BMW's iDrive, that worked beautifully. The seats are comfortable, supportive and well contoured. The sight lines are right. The wind management and soundproofing have been sweated over, to good effect.

And, best of all, the car handles like a European sport sedan. Think, not BMW, but perhaps Peugeot or Renault. With the adaptive suspension switched to Sport mode, the Regal's ride is firm but compliant, with a nice evenness while cornering. Lift off the throttle, hit the brakes and take a big chop and the wheel and the car turns in confidently. Pitch and body roll is well modulated. The 19-inch tires serve up loads of lateral grip. This is actually a pretty amusing car to abuse.

My only complaint—and, I gather, it was a common one—was that the speed-sensitive steering felt a little spooky. The steering had a deep self-centering inclination and tended to waver a bit as steering angles increased. It didn't really inspire a lot of go-fast confidence. Buick's engineering staff promised the steering calibration would be tweaked to correct.

Also, deep under the hood, there was a little bit of off-throttle chuff, a rather rude sound caused by back pressure in the turbo. Again, the Buick lab-coats said they were on it.

It's no secret that Buick is chasing younger buyers (voters?) and—the product guys having delivered—it's now up to the marketing guys to reach the very elusive, brand-agnostic Gen Y. I've got no insight on that question. But I do think that Regal is the just sort of product people hoped GM would produce post-bankruptcy. And here it is. Bit by bit, GM is pulling itself together. Politics aside, that's good for all of us.

Thursday, May 27, 2010

Summer Gas Savings Tips

SUMMER GAS SAVINGS TIPS

BY: Lawrence S. Searcy, Jr.

The summer driving season is upon us and so are the related costs associated with taking the family across the country for vacation. One way to save a little money along the way is to insure that your vehicle is getting the best mileage possible under prevailing conditions. While the savings on a particular trip may not be tremendous, the savings could substantial over time.

Fortunately, most modern vehicles take some of the guesswork out of the variables that affect gas mileage. For instance, on-board vehicle computers automatically compute tire pressure in all four tires making a physical pressure reading unnecessary. Additionally, the computers calculate instant gas mileage as the vehicle is being driven so no complicated math of gallons divided by miles driven is necessary. While the following tips may not make you rich, they will put a little extra change in your pocket in a time when gas prices are on the rise. These suggestions will result in small but significant fuel savings.

1. Make Sure the Engine is Properly Tuned

A properly tuned engine can account for as much as a 4.1 percent increase in gas mileage according to government studies. The most common tuning problem is a faulty oxygen sensor. Gasoline engines work by creating a combustible spark caused by the ignition of the gas in the cylinder. A proper amount of oxygen is required for the spark. The oxygen sensor in the vehicle regulates the amount of gas and oxygen necessary for optimal performance and reduction in pollution. If the Oxygen sensor is malfunctioning it can decrease efficiency by up to forty percent. If the check engine light or oxygen sensor light illuminates, take the vehicle to the dealer for repair and you might just see a significant increase in miles per gallon.

2. Keep Tires Properly Inflated

Underinflated tires create unnecessary friction between the vehicle and the road, which reduces efficiency. Because the underinflated tires have more tire area contacting the road, friction is increased and the engine has to work harder to get the vehicle in motion. It is the same as when you were a kid and the tires on a bicycle were a little flat. The bike was harder to pedal and more energy was required to get the bike in motion. The vehicle’s onboard computer will alert the driver of significant pressure reduction and also give an accurate reading of tire pressure for each tire. If the vehicle does not have this function, use a manual pressure gage to check inflation. The proper inflation will be listed on the inside door jamb of the vehicle and in the owners manual. Properly inflating tires can improve miles per gallon by up to 3.3 percent

3. Use a Clean Air Filter and Change Oil as Recommended

An engine requires the proper amount of oxygen and gasoline to mix together to create a combustible spark for the engine to work properly. One of the items that regulate the oxygen/fuel mix is the air filter. If the filter is dirty, less oxygen will get into the system and the vehicle will run poorly and use more gas than necessary. A clogged air filter will reduce fuel economy by as much as 22 cents per gallon according to the Department of Energy. Likewise, motor oil should be changed as directed by the vehicle manufacturer. The proper viscosity should be used in conjunction with regular oil and filter changes. Like the air filter, dirty oil can reduce the efficiency of fuel consumption. Changing both the air filter and the oil will save a few cents per gallon.

In all, simple maintenance can add up over the long summer driving season. While the amount saved will not necessarily pay for the admission to Disney, it might pay for a snack or two while you are in the park. For more information on driving and maintenance tips visit www.walkerwill.blogspot.com.

Tuesday, May 25, 2010

Toyota Suspends Sales of Lexus Vehicles

From Automotive News this Afternoon....Problems at the troubled automaker continue to mount.

Toyota suspends sales of some Lexus LS sedans after recall


Automotive News
May 25, 2010 - 12:01 am EST

WASHINGTON (Reuters) -- Toyota Motor Corp. said it had temporarily suspended sales of certain Lexus LS sedans following a steering-related recall.

The decision announced on Monday marks the third time in recent months that Toyota has told dealers to stop selling vehicles in the wake of a recall.

The voluntary recall of about 3,800 late model 2009 and some 2010 model year LS 460 and LS600h vehicles in the United States was finalized on Friday.

In certain scenarios, Toyota said the steering wheel in recalled models may not return to a centered position after a tight turn.

Toyota recalled up to 11,500 vehicles worldwide to correct the problem.

Sales are expected to resume gradually in mid-June, beginning with models that arrive in showrooms with the required fix.

Existing inventory and vehicles already on the road will require a computer system changeout that will be completed as dealers receive parts.

Monday, May 17, 2010

E-Class Wins Top Safety Pick

The redesigned 2010 Mercedes-Benz E-Class luxury vehicle earned the 2010 Top Safety Pick awards from the Insurance Institute For Highway Safety. The Top Safety Pick award recognizes vehicles that earn a "good" rating -- the highest available -- for front, side, rollover, and rear crash protection. The award is only given to vehicles that also have electronic stability control, which comes standard on the E-Class. Design changes and improvements to the front and rear doors for better protection on side-impact crashes enabled the E-Class to capture this years rating. This is the first time the E class has earned the Institute's top safety designation. For more information contact Walker Mercedes at http://www.walkerautomotive.com/ or 318-445-6421.

Monday, May 10, 2010

Walker Automotive Voted "Best of Cenla" For 2010

The votes have been cast and Walker Automotive has again won top honors from The Cenla Focus Best of Cenla Readers Choice Awards.  The awards are given annually by the Cenla Focus Community Journal and recognize "excellence in our community for great service...outstanding leadership...and much more."  The awards are given based on the number of ballots received by the Focus each year. Thank you to all of the voters this year who selected Walker Automotive as best automotive dealership.

Friday, May 7, 2010

E-Mail Fraud and Phishing

BMW Email Fraud Warning

Earlier this week I received an email from BMW North America's Legal News and Information department warning of an email scam that I thought should be passed on to the general public.  Apparently a series of emails are being sent to email recipients claiming to be from the "BMW Security Department" or the "BMW Lottery Department" located in Great Britain or the Netherlands.  The email look official with BMW logos or trademarks and tell the recipient that they have won a prize.  While the email may look authentic, BMW is warning that the emails are a scam.

BMW has been investigating the emails for more than a year and have determined that the majority are originating in Nigeria.  For more information, the general public can access the bmwusa.com consumer website at www.bmwusa.com/standard,content/contactus/fraudwarning.aspx.

Tuesday, May 4, 2010

Infinity Recall

FROM AUTOMOTIVE NEWS ONLINE MAY 4, 2010
Nissan recalls 134,000 Infiniti G35s for airbag fix

Automotive News
May 4, 2010 - 8:00 am EST

(Reuters) -- Nissan Motor Co. recalled Infiniti G35 sedans and coupes because of faulty airbags that may not deploy during a crash, U.S. regulators said.

The National Highway Traffic Safety Administration said as many as 134,215 G35 sedans from model years 2005-2006 and G35 coupes from model years 2005-2007 are subject to the recall.

The recall is for vehicles sold both in and outside of the United States, a Nissan official said.

Nissan has yet to inform federal officials how the problem will be fixed, the agency said. Nissan informed U.S. safety regulators of the potential problem two weeks ago, NHTSA reports show.

NHTSA said a wire harness for the airbags may wear down to the point that it could interrupt a signal to deploy the airbags in the event of a crash.

The report mentioned no crashes or injuries related to the problem.

Monday, May 3, 2010

Dodge Investigating Sticky Gas Pedal

The following is a story first published by Automotive News.  The pedal involved in the Dodge vehicle is made by the same compnay that supplied pedals to Toyota.

Dodge Caliber being probed for sticky pedal issue, U.S. says


Neil Roland

Automotive News
May 3, 2010 - 10:00 am EST

UPDATED: 5/3/10 1:20 p.m. ET

WASHINGTON -- Chrysler Group's 2007 Dodge Caliber cars are under federal investigation for unintended acceleration caused by a sticky pedal -- the same type of problem that led to a large Toyota recall this year.

The National Highway Traffic Safety Administration said it is investigating as many as 161,000 Calibers for an accelerator pedal that “can stick or bind and not return to the idle position when it is released.”

The safety agency has received five customer complaints but no reports of deaths, injuries or crashes.

Chrysler's own investigation has narrowed the population of suspect vehicles to 10,000 that were made during five weeks in March and April 2006, a company spokesman said.

Supplier issue?

The problem appears to be a mechanical one caused by parts made by CTS Corp., of Elkhart, Ind., Chrysler spokesman Nick Cappa said.

A NHTSA official said the automaker had been cooperative.

"The manufacturer is responsible for the performance of the car, and that's who we're investigating,” a NHTSA official said. “Chrysler has been cooperative.”

CTS also was blamed by Toyota Motor Corp. for its sticky gas pedals, which led to a January recall of 2.1 million vehicles.

The supplier denied the Toyota charge, noting that the automaker has recalled millions of other vehicles for unintended acceleration that were not equipped with CTS pedals.

CTS did not immediately respond today to a request for comment.

Electronic defects probed

In the wake of Toyota's worldwide recall of 9 million vehicles for unintended acceleration, NHTSA has been investigating the possible role played by electronic defects in triggering speed control problems across the auto industry.

Toyota's problems have been far more extensive -- and far more severe, with reports of dozens of deaths and injuries -- than the possible defects under investigation at Chrysler.

Chrysler said today that the sticky-pedal problem “is mechanical in nature and not a design or electronic issue.”

Cappa said Chrysler was able to narrow the problem population to 10,000 vehicles after being alerted to customer complaints by NHTSA on April 23 and then comparing complaints to warranty data.

On April 29, NHTSA opened a preliminary evaluation, the first stage of a formal investigation, the agency said on its Web site. This review can lead to an engineering analysis and, ultimately, a recall.

Four of the five complainants reported that they had found bushings -- bearings made of brass to allow the pedal to pivot -- on the driver's side floor, NHTSA said.

Without the bushings, the pedal arm “can become misaligned” and be prevented from returning to the idle position, the agency said.

Dodge vs. Toyota

The CTS pedals used in the Dodge Calibers are different from those used in the recalled Toyotas, a NHTSA official said.

Chrysler said that since 2003, the Caliber has been equipped with a brake override system that reduces power when both the brake and the gas pedal are depressed.

Most Toyota vehicles have not had a brake override system, which would be mandated under legislation to be discussed at a congressional committee hearing Thursday.

But some consumer complaints to NHTSA raise questions about the effectiveness of the Chrysler brake override system.

One complainant reported that while traveling at 65 mph, the Dodge Caliber accelerated suddenly to over 90 mph, a report on NHTSA's site said. Neither the brakes nor emergency brake could stop the car. It slowed only when the car was put in neutral, the driver said.

Another complainant said that while driving his Caliber at 15 mph, it “abnormally accelerated” to 75 mph. The driver reached over and lifted the pedal with his hand, he said.

One complainant expressed frustration with Chrysler's response to his reports and appealed to NHTSA to investigate.

“I am not getting any satisfaction from Chrysler; they continue to blow me off,” he said. “Please respond; no one else does.”

Friday, April 30, 2010

Acura Recalls TSX Models

Honda recalls 167,255 Acura TSX cars in the U.S.

Automotive News
April 30, 2010 - 9:01 am EST

DETROIT (Reuters) -- Honda Motor Co. today said it would recall 167,255 Acura TSX sedans sold in the U.S. market to address the risk that power steering fluid could leak and cause an under-the-hood fire.

The recall, covering 2004-2008 model year Acura TSX vehicles with 2.4-liter inline four-cylinder engines, comes after one fire was reported due to leaking fluid.

Honda and U.S. safety regulators said that over time power steering hoses may crack and leak.

U.S. safety regulators in a statement issued today said power steering fluid "leaking onto a hot exhaust pipe will generate smoke and a burning smell, and could potentially result in an under hood fire."

Honda will notify U.S. Acura TSX owners and its dealers will repair the Acuras for free, beginning on May 28, said the National Highway Traffic Safety Administration in a report.

The repair, Honda said, involves installation of a new power steering hose, O-ring gasket and fluid.

Honda officials in Canada said that cars in Canada were not subject to the recall.

Thursday, April 29, 2010

Walker Automotive Blog Recognized in National Magazine

The May 2010 edition of Auto Dealer Monthly magazine has recognized Walker Automotive's Blog as one of the "Great Dealer Blogs."  In an article about internet marketing techniques, the magazine singled out several automobile dealers across the country for their social media effectiveness.  For instance, dealers were recognized as having great fan pages on Facebook, or for the number of followers on Twitter.  When it came to blogs, Walker's blog at http://walkerwill.blogspot.com was named in the top six blogs in the country.  Congratulations to all of the employees of Walker Automotive who contribute to the blog on a regular basis. For more information about products, services, parts or accessories offered at Walker automotive visit the web site at www.walkerautomotive.com

Wednesday, April 28, 2010

Another Toyota Recall

Toyota to recall Sequoia SUVs to repair stability control units


Automotive News
April 28, 2010 - 11:41 am EST

UPDATED: 4/28/10 4:51 p.m. ET

WASHINGTON (Bloomberg) -- Toyota Motor Corp., which recalled Lexus GX sport-utility vehicles this month because stability controls failed to engage fast enough, is recalling Sequoia SUVs to adjust a control system that drivers say is too aggressive.

Toyota, the world's largest carmaker, told the National Highway Traffic Safety Administration today 50,000 of the 2003 Sequoias are covered in the recall. The agency has been investigating the defect since 2008. About half those vehicles had the control unit adjusted after a technical service bulletin was sent to dealers, said John Hanson, a Toyota spokesman.

“We have customer complaints dating back to 2003” that vehicle stability control “kicked in at times it shouldn't have, maybe too early,” said Hanson, based at Toyota's U.S. sales unit in Torrance, Calif.

Toyota has recalled more than 8 million vehicles worldwide in the past year for defects that may cause unintended acceleration in its cars and trucks. The company on April 19 said it would recall the Lexus GX 460 SUV after Consumer Reports magazine rated it a “safety risk” because the model can roll over in certain driving conditions.

“Toyota is cooperating with NHTSA's request to issue a safety recall of the 2003 Sequoia,” said Julia Piscitelli, an agency spokeswoman. “NHTSA has been investigating electronic stability control malfunctions which have turned up 163 safety- related failure incidents” reported to the agency or Toyota.

The VSC system can help control a loss of traction in turns as a result of front or rear tire slippage during cornering. In vehicles without the upgrade, the VSC system could, in limited situations, activate at low speed (approximately 9 mph) for a few seconds after acceleration from a stopped position and, as a result, the vehicle may not accelerate as quickly as the driver expects. There have been no reported injuries or accidents as a result of this condition.

Toyota instituted a running production change during the 2003 model year and published a Technical Service Bulletin to address this issue when it was first identified in fall 2003. Since that time, Toyota has been responding to individual owner concerns by replacing the Skid Control Engine Control Unit (ECU) in Sequoias impacted by this condition. Of the approximately 50,000 vehicles included in this recall, approximately half have already been serviced under warranty.

Starting in late May, Toyota will begin mailing letters to all 2003 Model-Year Sequoia owners included in this recall, including owners of vehicles that have been previously serviced. If a customer has previously paid to replace the Skid Control ECU for this specific condition prior to receiving a letter, the customer should mail a copy of their repair order, to the following address for reimbursement consideration: Toyota Motor Sales, U.S.A., Inc., Toyota Customer Experience, WC 10, 19001 South Western Avenue, Torrance, CA 90509.

Detailed information and answers to questions are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331.

Friday, April 23, 2010

Honda Has Best Used Cars According to Consumer Reports

Many people are aware that a new car depreciates the minute it is driven off of the lot. In fact, the average new car loses almost half of its value in the first three years of ownership. For many purchasers, the choice is to buy a quality pre-owned vehicle to avoid taking the hit on depreciation. The problem, though, is finding one that is considered reliable. There are many tools to help consumers find the most reliable used vehicle but the authority on the matter is probably Consumer Reports.


Each year Consumer Report Magazine ranks the most reliable models. Each winner in a category indicates that owners of those vehicles have experienced relatively few problems over time with the winning make and model. This year, Honda models dominated the winners circle. Toyota suffered several losses on the list because of their continued troubles with recalled models. In all, Honda won the top spot in six out of the nine categories. Here is how the list shaped up:

Category: Small Cars
Winner: Honda Civic

Consumer Reports says: “The Civic is reliable, economical, and fun to drive. In 2003 the Hybrid model arrived, and 2006 brought standard antilock brakes and curtain air bags. But electronic stability control is available only on later high-end models. The Honda Fit hatchback is smaller than the Civic. “

Category: Family Cars
Winner: Honda Accord

Consumer Reports says: “The Accord is a very reliable choice and is enjoyable to drive. It's a quiet, agile car that received a standard antilock brake system with the 2003 redesign. In 2006 the V6 models received standard ESC, which was added to all models with the 2008 redesign.”

Category: Small SUV
Winner: Honda CR-V

Consumer Reports says “The comfortable, carlike CR-V has a smooth, spirited four-cylinder engine and gets good fuel economy. Look for models from 2005 on, when ESC and curtain air bags became standard. Reliability has been better than average each year.”

Category: Large SUV
Winner: Honda Pilot

Consumer Reports says: “The Pilot is a roomy, refined, and fuel-efficient SUV. It has flexible seating for eight passengers, and crash-test results are impressive.”

Category: Minivans
Winner: Honda Odyssey

Consumer Reports says: “The Odyssey is a spacious and comfortable minivan that has always had a good ride and handling. A 2005 redesign improved interior flexibility. Look for models built after 2003.”

Category: Pickup Trucks
Winner: Honda Ridgeline

Consumer Reports says: “The Ridgeline combines the handling of a car with the utility of a pickup truck. The cabin is easy to access, and the engine is smooth and responsive.”

Contact Walker Honda at http://www.walkerhonda.com/ or 318-445-6677 for information on a new or pre-owned Honda.

Monday, April 19, 2010

Further Toyota Recalls

Toyota to recall 870,000 Sienna minivans for rusty spare-tire cables

Automotive News
April 16, 2010 - 5:53 pm EST

UPDATED: 4/16/2010 7:45 p.m. ET

(Reuters) -- Toyota Motor Corp said it would recall 870,000 Sienna minivans sold in the United States and Canada since the 1998 model year because of a risk that the spare tire could drop onto the road.

The recalls cover minivans sold in 20 cold-weather U.S. states and Canada due to potential corrosion from long-term exposure to road salt that could in the worst case cause the spare tire to separate from the vehicle, Toyota said.

All told, the recalls cover some 600,000 two-wheel-drive Sienna minivans from the 1998 to 2010 model years sold or registered in the United States and 270,000 of the same vehicles in Canada.

Friday's action pushes the number of Toyota vehicles recalled since late last year to more than 9.3 million. Most address the risk of unintended acceleration tied to faulty gas pedals and floor mats that can interfere with pedals. The Prius and other hybrids have also been recalled for brake problems.

On Tuesday, Toyota halted sales of its Lexus GX 460 SUV after Consumer Reports said its handling in certain curves posed a "safety risk."

The automaker has not yet decided whether it would have to recall the GX 460, but has said its engineers duplicated the results of Consumer Reports' tests.

For the Sienna recall, Toyota said prolonged exposure to high use of road salt could cause excessive corrosion in the cable. Owners will receive a letter urging them to bring their minivans to a dealership for inspection while Toyota develops a remedy.

The recall covers vehicles sold or registered in the District of Columbia as well as Connecticut, Delaware, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Vermont, Wisconsin and West Virginia.

Owners in other states also can choose to have their vehicles inspected, Toyota said.

Tuesday, April 13, 2010

Toyota Halts Sales of Lexus

Toyota temporarily halts sales of Lexus GX 460


Automotive News
April 13, 2010 - 6:56 pm EST

Toyota has temporarily halted sales of its Lexus GX 460 after a safety warning was issued by Consumer Reports magazine.

The magazine said the 7-passenger SUV was at risk for a roll over accident during certain types of turns. The Japanese automaker said it would suspend sales until it had conducted its own testing.

On its Web site, the automaker said, "for any customer who has purchased a 2010 GX 460 and is concerned about driving their vehicle, we will provide a loaner car until a remedy is available."

Lexus Deemed Unsafe By Cnsumer Reports

Toyota's Lexus GX SUV called ‘safety risk'


Bloomberg News
Automotive News
April 13, 2010 - 7:12 am EST

LOS ANGELES (Bloomberg) -- Toyota Motor Corp.'s new Lexus GX SUV was labeled a “safety risk” by a magazine, complicating efforts by the world's largest automaker to repair its image after record recalls.

The 2010 GX 460 received the designation because of handling in emergency driving tests, Consumer Reports said today in a statement. The magazine, published by Yonkers, New York-based Consumers Union, said it hadn't deemed any vehicle a potential safety risk since 2001.

The GX's rear end “slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control” at a Connecticut test track, the magazine said. “In real-world driving, that situation could lead to a rollover accident, which could cause serious injury or death.”

Toyota's recalls of more than 8 million vehicles worldwide for defects linked to unintended acceleration and brakes have hurt its reputation and led to U.S. congressional hearings and a rebuke by Transportation Secretary Ray LaHood. The U.S. assessed a $16.4 million penalty against Toyota for delaying its recall of sticky accelerator pedals and said there may be more fines.

“We're concerned with the results of Consumer Reports testing on the Lexus GX 460 and their suggested buyer recommendation,” Bill Kwong, a Lexus spokesman, said in an e-mail. While the model meets or exceeds U.S. safety rules, Toyota will try to duplicate the test results, Kwong said.

The company “appreciates Consumer Reports bringing it to our attention,” he said.

The GX has a starting price of about $52,000, according to Lexus's Web site. The Japan-based company has its U.S. sales headquarters in Torrance, California.

Consumer Reports checked the initial findings in the “lift-off oversteer” test of the GX by repeating it on a second vehicle, said Douglas Love, a spokesman for the magazine. The publication said it shared the results with the U.S. National Highway Traffic Safety Administration.

The magazine said it is unaware of reports of accidents resulting from what it found in the GX tests.

Friday, April 9, 2010

GMC Announces Prices of HD Trucks

By: Chrissie Thompson, Automotive News online April 9, 2010

DETROIT -- General Motors Co.'s 2011 heavy-duty pickups will start at $28,960, including delivery, undercutting the Ford Super Duty's starting price by $35.


Both automakers are releasing re-engineered heavy-duty pickups this year. The Super Duty goes on sale this month, while the heavy-duty GMC Sierra and Chevrolet Silverado will arrive at dealerships in June.

The GM pickup prices, released today, underscore the truck battle brewing between the automakers. As the economy improves, automakers are also hoping new home construction will show signs of a recovery to boost new truck sales, as builders invest in pickups to carry supplies.

The automakers' truck battle starts with optional diesel engines. Upgrading to a diesel on the Sierra and Silverado costs $8,395, while Ford's diesel engine costs $7,835. The GM diesels offer 397 hp and 765 pounds-feet of torque, while the Super Duty gives 735 pounds-feet and 390 hp. Neither automaker has released fuel-economy ratings, but Ford has promised “class-leading” fuel efficiency for its diesel.

The Sierra and Silverado can pull up to 20,000 pounds and carry 6,335 pounds, GM says.

GM increased the base-model price of heavy duties from the 2010 models by $500, while Ford upped its starting price $600.

Monday, April 5, 2010

U.S. Fidelis Files for Bankruptcy

Several months ago I wrote an article in the Cenla Focus about the automobile warranty companies that advertise on television on on satellite radio. Essentially, the article warned customers about these aftermarket companies that are not supported by the local franchised dealer network. Many of the companies had failing Better Business Bureau grades and others were being investigated by certain state's attorneys general.


Well, the shoe has dropped on at least one of the companies that I warned against. U.S. Fidelis, based in St. Louis, filed for bankruptcy protection in March citing more than $25 million in debt. The company is supposed to be issuing refunds to customers for cancelled contracts and claims that all warranty obligations are insured. In news articles published in Automotive News in March, reports show that the two brothers who owned U.S. Fidelis borrowed more than $49 million from the company to spend on themselves and their families.

When shopping for a vehicle or related products remember to shop locally and with people you know.

Monday, March 29, 2010

GM Recalls Vans

GM recalls 5,000 vans for potential engine fires



Sales halted; owners advised to stop driving until fix is found


Chrissie Thompson


Automotive News
March 27, 2010 - 10:51 am EST

DETROIT -- General Motors Co. is recalling about 5,000 heavy-duty vans and stopping production and sales because of alternators that could cause engine fires.

The recall, announced just before midnight Friday, affects some 2010 Chevrolet Express and GMC Savana 2500, 3500 and 4500 Series built in February or March. Light-duty versions use a different alternator.

GM says that until it has a fix for the alternators, customers should stop driving the vans; park them outside, away from buildings or other vehicles; and disconnect both battery cables if possible.

Few of the vans are owned by retail customers.

“It's in the teens,” GM spokesman Alan Adler said. “We're calling the customers we know who have them.”

About 1,300 of the vans are in fleets, and GM's stop-sale order prevents people from renting them. Many vans are still on dealer lots or are awaiting export.

GM builds the vans in Wentzville, Mo., where 60 percent of the production is typically devoted to heavy-duty models.

Thursday, March 25, 2010

Honda Gets Aggressive With Pricing

Honda enters price war with Toyota



The automaker moves to preserve its market share amid aggressive sales incentives offered by its rival.

By Jerry Hirsch - LA Times

March 25, 2010

The auto price war is escalating with American Honda Motor Co. offering its biggest lease deal ever, a move analysts said was designed to offset aggressive sales incentives by rival Toyota Motor Corp.

What's unusual about this price war is that it is being fought the hardest by Japanese automakers, which historically have resisted using large incentives to sell vehicles.

Toyota fired the first volley when it announced a variety of discount financing and special lease deals this month in a move to regain market share in the U.S. after a series of embarrassing recalls.

"There is an irony in the fact that you have a price war launched by Toyota, which has never been reactionary before," said James Bell, an analyst with auto information company Kelley Blue Book. "They are playing the game other brands previously had to play to keep up with Toyota."

American automakers, by comparison, are showing restraint, if for no other reason that they don't have a lot of cash to burn on incentives, said Aaron Bragman, auto industry analyst at IHS Global Insight.

The discounting comes in the wake of a turbulent period of plunging sales for the automakers and bankruptcy restructurings for General Motors Co. and Chrysler Group last year. The industry has been working to wean itself from stimulating sales with large profit-trimming incentives.

"Any type of price competition hurts everybody's profits," said Shelly Lombard of Gimme Credit, a corporate credit research firm.

But moves by manufacturers to close factories and reduce expenses last year should make the companies less vulnerable to the current round of incentives because they have learned to make money on a lower sales volume, she said.

Honda has to act because it has the most shoppers who also consider buying Toyota vehicles and faces the "most competitive pressure," Lombard said. GM also is vulnerable because it has been supplanted by Ford Motor Co. as the biggest auto seller nationally and is still working to gain sales momentum after its bankruptcy reorganization. Ford, which "is on a roll," would be less vulnerable because it has fewer cross shoppers with Toyota, Lombard said.

Honda is offering lease promotions across all of its models -- the first time the automaker has had such a large incentive program. These include no down payment or security deposit, no money due for a month and waiving of any fees when the agreement is signed, spokesman Kurt Antonius said. The program runs until May 3, about a month longer than the current Toyota promotion.

"It just shows how slow the car business is," Antonius said.

Analysts said Honda had lost the most sales to Toyota.

"Honda needed to match [Toyota] to maintain its market share," Bell of Kelley Blue Book said.

Through mid-March, the Toyota incentives had allowed the company to build back market share lost to a continued recall and controversies over unintended acceleration in its vehicles, according to TrueCar.com, an auto pricing information company. Sales were running at about 15.5% of the market, the slice it held at this time last year.

Prior to offering its own incentives, Honda saw its share drop this month almost a full percentage point to 9.4%, TrueCar.com said.

Toyota's incentives may haunt it in future months, Bell said. The company has seen sales soar as bargain hunters and loyal customers stream into showrooms to take advantage of the deals, he said. But once that traffic runs out, Toyota faces the daunting task of selling to "people who are not loyal or who are skeptical of the brand," Bell said.

Thursday, March 18, 2010

Parts Availability for recalled Honda Models

Earlier this week Honda issued a recall for 2007-2008 Honda Odyssey minivans and Element SUVs.  The recall has to do with extended travel of the brake pedal.  In essence the pedal can feel mushy.  Parts should become available for the fix by mid-April 2010.  For specific information on certain models or to determine if a vehicle is affected, contact Walker Honda at 318-445-6677.  Honda is mailing all customers later this week. 

TOYOTA CONSIDERS ADDITIONAL RECALLS

Toyota Motor Corp. has told U.S. safety regulators it is considering how to fix nearly 1.2 million Corolla and Matrix models that risk stalling because of flaws in an electronic system.


In a letter to the National Highway Traffic Safety Administration, Toyota said it wanted to meet U.S. officials to discuss an early-stage investigation of the stalling problem.

"Toyota does not believe that the alleged defect creates an unreasonable risk to motor vehicle safety," Toyota's regulatory affairs manager Chris Santucci said in the letter, which was dated March 2 and available on the NHTSA Web site on Wednesday.

The discussion of the engine stalling problem comes at a time when Toyota's safety record is under intense scrutiny. The automaker has recalled some 8.5 million vehicles globally this year, mostly for accelerator-related problems.

U.S. safety regulators and members of three congressional panels have criticized the Japanese automaker for moving too slowly to address consumer complaints of unintended acceleration and other safety concerns.

NHTSA opened a preliminary evaluation of Corolla stalling complaints in November.

Engine control module issues

The agency said then that it had received 26 complaints of engines stalling in Toyota Corolla and Matrix models because of failures in the engine control modules.

U.S. safety regulators said drivers reported the stalls happened "randomly" and some had occurred in highway driving or when drivers were passing through intersections.

Toyota said it did not believe drivers would have any "prior warning" that the engine was about to stall because of a glitch with the engine's electronic control unit, or ECU.

But Santucci said Toyota had concluded it would be better for the engine to stall than "become damaged or dangerous," putting it at risk of "catastrophic failures" or "fire."

"Toyota would like to meet with the agency to discuss this issue," Santucci said in the letter.

Toyota said it believed the ECU could malfunction because of a crack in soldered joints in the unit or because of an electrical short. Both conditions could cause the engine to shut down without warning or fail to start, it said.

The stalling problem affects 1.19 million Corolla and Matrix models from the 2005, 2006 and 2007 model years, Toyota said.

GM checking Vibes

The Matrix is sister vehicles with General Motors Co.'s Pontiac Vibe. The automakers built the Vibe at their former joint-venture NUMMI plant in Fremont, Calif. The Vibe also was part of Toyota's floor mat and accelerator pedal recalls that included the Matrix, which is built at Toyota's plant in Cambridge, Ontario.

GM spokesman Alan Adler said GM is assessing the engine-stalling situation.