Toyota recalls 1.7 million cars globally, including 245,000 Lexus sedans in U.S.
Hans Greimel
Automotive News
January 26, 2011 - 5:00 am EST
TOKYO -- Toyota Motor Corp., struggling to restore its reputation for top quality, today recalled nearly 1.7 million vehicles globally for a variety of fuel system related problems, including 245,000 Lexus IS and Lexus GS sedans in the United States.
The North American vehicles are being called back to inspect for possibly faulty installation of fuel pressure sensors. In cases where the sensor is not fastened tightly enough, fuel can leak between the gasket that connects the sensor to the fuel delivery pipes, Toyota said.
Lexus dealers in the United States will inspect vehicles for fuel leaks. If none is found, they will tighten the sensor. If leaks are confirmed, the gasket will be replaced and the sensor tightened.
The move affects the following vehicles in the United States: 2006-2007 model year Lexus GS300/350; 2006-early 2009 Lexus IS250; and 2006-early 2008 Lexus IS350.
Today's actions bring the total number of Toyota recalls since fall of 2009 to 18 million vehicles.
“After Toyota's recalls last year, the company is more sensitive to recall issues and conducting them as early as possible,” Satoru Takada, a Tokyo-based analyst at TIW Inc., told Bloomberg.
The move covering the fuel-pressure sensor covers 354,524 vehicles worldwide, including the Toyota Crown and Mark X sedans in Japan.
Also today, Toyota conducted a global recall targeting faulty fuel pipes and fuel check valves. That action affects 1.34 million vehicles, but none in North America.
Toyota said there have been no accidents related to any of the recall-related problems.
About 1.2 million of the vehicles in the second recall were sold in Japan, including the RAV4 SUV and the Voxy and Noah minivans. About 135,000 vehicles are in Europe, mostly the Avensis sedan and wagon manufactured at Toyota's plant in Britain.
A design flaw in those vehicles means that fuel pipes may develop cracks and leak. Some of the vehicles also have faulty check valves meant to prevent the reverse flow of fuel.
PRESS RELEASE: Toyota Announces Voluntary Recall of Certain 2006-2007 Lexus GS 300/350, 2006-2009 IS 250 and 2006-2008 IS 350 Vehicles to Inspect the Fuel Pressure Sensor Installation Click here for Customer FAQ for Lexus IS and GS Fuel Pressure Sensor Re
Toyota Motor Corporation announces separate recall involving certain vehicles not sold in North America
TORRANCE, Calif., January 26, 2011 – Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary Safety Recall involving approximately 245,000 2006 through 2007 Lexus GS300/350, 2006 through early 2009 Lexus IS250, and 2006 through early 2008 Lexus IS350 vehicles sold in the U.S. to inspect the fuel pressure sensor installation.
Due to insufficient tightening of the fuel pressure sensor connected to certain engine fuel delivery pipes (those with Nickel Phosphorus plating), there is a possibility that the pressure sensor could loosen over time. If loosening occurs, fuel could leak past a gasket used in the connection between the sensor and the delivery pipe and through the threaded portion of the sensor.
Lexus dealers will inspect the vehicle for fuel leakage and if no leakage is found, will tighten the fuel pressure sensor with the proper torque. If a fuel leak is confirmed, the gasket between the sensor and the delivery pipe will be replaced and the sensor will be tightened with the proper torque. The inspection and possible gasket replacement will be conducted at no charge to the vehicle owner.
Owners of the involved vehicles will receive a safety recall notification by first class mail once the parts that may be needed have been obtained. Lexus will also post this information on its website. Detailed information about this recall is available through Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987 or at www.lexus.com/recall.
Toyota Motor Corporation (TMC) today announced a separate recall involving 1.3 million vehicles worldwide to remedy a different condition on a different fuel delivery pipe and a high pressure fuel pump check valve. TMC's recall announcement does not involve vehicles sold in North America.
Wednesday, January 26, 2011
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.
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
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 ESTDETROIT -- 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.
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.”
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.”
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.
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 Walker
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.
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.
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.
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.
Wednesday, August 4, 2010
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.
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.
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)
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.
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.
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.
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