It seems August is also in the same path of June and July in new car sales. The statistics shows the report on new car sales in August, which is supposed to be released on September 2nd will be worse than the previous months. Gas has gone back from its record height of $4.11 in June, but high gas prices have obviously left a bad impression on consumers' mind. Studies shows, August will see a 14.4 percent slop in new car sales. In July sales drop off by 13.2 percent, and is well under the overall market – which is down 10.5 percent through July. It seems Chrysler and GM are August's biggest losers. Chrysler's sales declined 34 percent and General Motors is just behind with a sales decline of 27.5 percent. GM can withstand with its early retirement offers to U.S employees. Honda and Nissan are expected to post slight gains. Unluckily for the whole auto industry, the U.S. market isn't anticipated to recover until late 2009. Complete August sales results will be released on September 2nd.Things will be more clear after that.
General Motors is planning to cut several billion from the expense side of the accounting book in the coming years. It means additional job cuts are ultimately going to happen. However, this time GM is omitting its hourly workers from the trimming and is in its place focusing on salaried workers. According to the Detroit Free Press, GM has extended early retirement packages to 9,000 employees. That is approximately 30 percent of GM's U.S. workforce. In all, GM hopes to cut its U.S. and Canadian workforce by 15 percent, or approximately 4,900 employees. However, GM has not yet offered early retirement options to their Canadian workers. GM hasn't provided details on the retirement packages till now. But they said the cuts were a direct result of the dramatic shift away from profitable trucks and SUVs to smaller offerings. U.S. workers will have 45 days (plus a 7-day grace period) to consider the offer.
The unpleasant-smelling, steaming air that escapes from a car's tail-pipe could help us to use less gas. Researchers are trying to meet a challenge from the U.S. Department of Energy. The department challenged the researchers to improve fuel economy 10% by converting wasted exhaust heat into energy that can help power the vehicle. General Motors is close to reach the goal. Their research into thermo-electrics (the science of using temperature differences to create electricity) couldn't have come at a better time, as high gas prices speed up efforts to make vehicles as efficient as possible. GM researcher, Jihui Yang, said a metal-plated mechanism that surrounds an exhaust pipe, could increase fuel economy in a Chevrolet Suburban by about 5% (a 1-mile-per-gallon improvement!!! That would be even greater in a smaller vehicle. By reaching the goal of a 10% improvement would save more than 100 million gallons of fuel per year in GM vehicles (I mean in U.S. alone).
Jewlie Moyers, who works for R&B Auto in Fontana, is happy that she is saving hundreds of dollars a month on gas. Moyers, 33, of Grand Terrace, has her eight-cylinder Toyota Sequoia Limited SUV on consignment at R&B Auto and bought a Scion. Jewlie Moyers said people are taking huge losses on their SUVs when trading them in or selling them. "We're seeing people that can't afford the gas and basically, we're priced to get rid of all the SUVs on the lot," Moyers said. "It used to be the bigger, the better. Now, based on the auction, SUVs are going for $10,000 less than they should be. "I've seen $50,000 (Cadillac) Escalades sell for $12,000 at auction. I have my SUV on consignment and bought a Scion," she said.
Ford Motor Co. said that it has started production of its new subcompact Fiesta at a plant in Germany. The vehicle is the first product to come out of Ford's new global development process, which aims to produce global models that are tailored to regional tastes but have the same underpinnings. It's slated to go on sale in stages between now and 2010, starting in Europe. The Cologne Stamping and Assembly plant is the first Ford assembly facility to build the new car, with production at Ford's Valencia assembly plant in Spain set begin in January. Asian production is scheduled to begin later this year in China and Thailand, Ford said. Ford's Cuautitlan assembly plant in Mexico, which previously made F-Series trucks, is being retooled to build hatchback and sedan models of the Fiesta for the North American market beginning in 2010. The Fiesta is one of six new models Ford plans to bring to North America from Europe in the coming years, as part of efforts to cut costs and boost its North American car lineup. Last month, Ford announced plans to retool two U.S. truck factories in Michigan and Kentucky to make global vehicles off the European Focus platform. The automaker said it expects to manufacture 148,000 Fiestas in the Cologne facility this year. When at full capacity, the plant is expected to produce 1,900 Fiesta and Fusion vehicle per day, Ford said. Since it was first launched in 1976, Ford said it has sold more than 12 million Fiestas.
It is a report came in German magazine AutoBild that Porsche CEO Wendelin Wiedeking has finally ensured that a diesel powered Cayenne will certainly appear in 2009. Before Porsche believes that a diesel powered vehicle would be out of character for the brand and denied that would build such a vehicle. This is of course a false dispute that the Cayenne itself is out of character. The spy photos of Cayennes being fueled at diesel pumps in northern Sweden was seen by many people. The Cayenne diesel gets the same 3.0L TDI diesel V6 that's going into the VW Touareg and Audi Q7. The 240 hp V6 is expected to capitulate 24.5 mpg (US). The hybrid Cayenne will come next year using a lithium ion battery in the place of metal hydride battery.
Japan's No.3 automaker Nissan Motor Co said that it has developed an accelerator pedal that can push back on the driver's foot when it senses more pressure and poor fuel efficiency. They said, from next year they would install the "ECO pedal” in their cars, which can be switched on or off by the driver. But they haven’t specified which models would be outfitted with the new technology. Researches showed that the system, which comes with real-time fuel utilization levels displayed in the instrument panel, could get better fuel efficiency by 5-10 percent depending on driving conditions. Nissan is taking an effective approach to reduce carbon dioxide emissions, comprising improvements in vehicle technologies, driving behavior and traffic conditions. Last year, it promised to furnish all new cars with the fuel expenditure indicator. That will indicate the optimal level for fuel-efficient driving by displaying a green, flashing or amber light.
Ford Motor Company's North American operations head said on last Wednesday that they are going to make "unprecedented" investments in new engines. Executive Vice President Mark Fields told reporters that they are investing more than they have ever invested. He added that they are seeing a move from big engines to small ones. Last month, Ford told it was bringing 6 small-car models to North America from its European unit. They are planning to double their output of gasoline-electric hybrid vehicles to 50,000 annually. At the same time, a top executive in Ford said that the company met its goal of cutting 15% of its North American salaried costs by Aug. 1. But they wouldn't say how many salaried people will leave the company.
The first mass-production of Audi's hybrid model Q7 SUV was supposed to start in early 2009. But in April, Audi officials told that program has been well canceled. Audi had been working with VW and Porsche on the development, whose Touareg and Cayenne share their platforms with the Q7. Audi’s R&D Boss Michael Dick has ensured that development of hybrids with nickel metal hydride (NiMH) batteries put on hold. In that place, the company will concentrate on lithium battery hybrids which is expected to introduce with the Q5 in 2010. Audi was not satisfied with the poor cold weather performance and limited capacity of NiMH batteries. The vehicle loses a significant amount of performance if the batteries are low. Audi engineers want to make sure that the performance is stable. They don't want the customers to give less acceleration than expected due to a cold or flat battery. VW and Porsche are going on with their nickel metal hydride battery hybrid plans.
These days the used Prius demand is HUGE! People find that the Prius is the nation's best-selling hybrid car. As the gas prices went up, dealers ran out of new model stock. Buyers paid an average of $27,945 in June for a 2008 Prius with an average 8,000 miles on it. That is about $1,300 more than the average transaction price for a new one. Even used 2007 models with an average of 22,000 miles sold for only $276 less than direct factory price. The demand for fuel-efficient automobiles is so high that the customer is ready to buy used ones at a higher amount. Dramatic changes are happening now in the auto industry. July sales results show that the sales were down in double-digits when compared to 2007. The demand for small cars and hybrid cars are strong, big vehicles and SUVs are down. Toyota is planning to start making Prius at a new plant in Mississippi by 2010. But if the demand goes like this, used Prius prices could beat new prices for the buyers who are not willing to wait 2-3 months. Even Toyota dealers run out of stock and sell used ones at the price of a new one. Toyota has increased the Prius price by $400 in May and they are planning to increase the sticker price on the Prius by $500 or 2.2% - from $22,000 to $28,445 for 2009.
The national economy and high gas prices have a real influence on American households. It is very important, now more than ever, for car buyers to check the complete cost comparison when choosing a model. Consumer Reports analysis shows that on a new car, depreciation is 46 percent over a 5 year period. Depreciation is greatest in the first years. If you are really aiming at saving money as well as fuel, you can consider used cars as a good option. Used vehicles have already gone through the initial stages of rapid depreciation. By focusing on a nearly-new model (2-3 years old), you can find a vehicle that offers similar performance, safety, fuel economy, and the consistency of a new car. Most of the time, there will be a transferable warranty coverage remaining.
Lower processing cost, sales tax, and insurance make used cars purchase more affordable. Selecting a used car means you can get a better-equipped model within your budget. If fuel economy is more your focus, then consider these careful choices. Select the most fuel-efficient models available in your price range. Next, find a dealership that offers CERTIFIED used cars that have been inspected and are ready for the road.
There are numerous used cars that have outstanding fuel economy. Most of them are reasonable and reliable such as Chevrolet , Honda ,Toyota, Scion, Dodge, Nissan, Saturn and many more. Remember these things, any hybrid car will be difficult to find and sometimes the value may change depending on the demand. It would be great if you would take the time to visit our green car dealership in Fontana, Southern California or call us at 909-829-1140 ask for Krista or Robb, they can help you out with any questions you might have.
