Small gets big in U.S.

Various news items from Automotive News point a rosier picture for Japanese manufacturers vs. the American Big Three, as a pronounced move away from large vehicles towards smaller more eco-friendly ones continues in the U.S.

• Toyota and Honda are better positioned than Ford, GM and Chrysler to adjust production towards smaller cars.
• The full-size pickup segment has virtually collapsed (from 2.5 million units in 2005 to an estimated 1.5 million this year), catching Ford and Chrysler at the worst possible moment as they are about to launch redesigned models.
• GM’s Hummer line is close to being sold off or possibly disappearing.
• GM is considering lightening its big Chevrolet Tahoe and GMC Yukon models by moving to a different platform. "The future of other big SUVs such as the Chevrolet Suburban and Cadillac Escalade is unclear".
• Toyota is making a big move with its Prius hybrid, and may soon begin production in the U.S.

Tags: automotive, auto industry, automotive industry, alternative energy, renewable energy, sustainable energy, electric cars, hybrids, GM, General Motors, Toyota, Honda, Hummer, Prius

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2008 highest quality trucks and multi-activity vehicles

J.D. Power’s 2008 Initial Quality Study is out, and these are the top trucks and MAVs (multi-activity vehicles) in each segment:

Compact MAVs

1. Honda CR-V
2. Chrysler PT Cruiser
3. Ford Escape

Midsize MAVs

1. Dodge Durango
2. Hyundai Santa Fe
3. Toyota Highlander

Large MAVs

1. Toyota Sequoia
2. Chevrolet Tahoe
3. GMC Yukon

Midsize premium MAVs

1. Lexus RX
2. Lexus GX 470
3. Porsche Cayenne

Large premium MAVs

1. Lincoln Navigator
2. Infiniti QX56
3. Cadillac Escalade

Large pickups

1. Chevrolet Silverado LD
2. Toyota Tundra
3. Chevrolet Avalanche

Midsize pickups

1. Dodge Dakota
2. Ford Ranger
3. Toyota Tacoma

Vans

1. Ford E-Series
2. Nissan Quest
3. Chevrolet Express

Tags: J.D. Power, Dodge Durango, Dodge, Hyundai Santa Fe, Hyundai, Toyota Highlander, Toyota, Toyota Sequoia, Chevrolet Tahoe, Chevrolet, GM, General Motors, GMC Yukon, Lexus, Lexus RX, Lexus GX 470, Porsche, Porsche Cayenne, Lincoln Navigator, Infiniti, Infiniti QX56, Cadillac, Cadillac EscaladeChevrolet Silverado, Toyota Tundra, Chevrolet Avalanche Dodge Dakota, Ford, Ford Ranger Toyota Tacoma Vans Ford E-Series Nissan Quest Chevrolet Express, automotive, auto industry, automotive industry

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Honda Clarity zero-emissions

Honda’s FCX Clarity is a zero-emission, hydrogen fuel cell car (their first) that runs on hydrogen and electricity, and emits only water. It is two times more efficient than a gas-electric hybrid and three times more efficient than a standard gasoline car, says Honda.

The first units have just been produced and are destined for the U.S. Honda plans to lease a few dozen units in 2008 and reach 200 within in 2009, at a monthly cost of $600 (that includes maintenance and collision coverage).

Hollywood stars Jamie Lee Curtis and Christopher Guest are among the first Clarity customers.

Honda knows the biggest obstacle for the Clarity (and similar models) is the lack of hydrogen fuel stations, so they are winnowing down the 50,000 applications they’ve received to buyers living near existing hydrogen fuel stations in the Californian cities of  Torrance, Santa Monica and Irvine.

Tags: Honda, Honda Clarity, Honda FCX Clarity, Clarity, automotive, auto industry, automotive industry, alternative energy, renewable energy, sustainable energy, hybrids, hydrogen fuel cell cars

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2008 highest quality midsize and large cars

J.D. Power’s 2008 Initial Quality Study is out, and these are the top cars in the midsize and large segments:

Midsize cars

1. Chevrolet Malibu
2. Mitsubishi Galant
3. Ford Fusion

Large cars

1. Pontiac Grand Prix Sedan
2. Mercury Sable
3. Mercury Grand Marquis

Tags: J.D. Power, Chevtolet, GM, Chevrolet Malibu, Mitsubishi, Mitsubishi Galant, Ford, Ford Fusion, Pontiac, Pontiac Grand Prix, Mercury Sable, Mercury Grand Marquis, Mercury, automotive, auto industry, automotive industry

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2008 highest quality premium cars

J.D. Power’s 2008 Initial Quality Study is out, and these are the top cars in premium segment:

Entry premium cars

1. Infiniti EX-Series
2. Infiniti G-Series
3. Acura TSX and Volvo S40

Midsize premium cars

1. Infiniti M-Series and Mercedes-Benz E-Class
2. Audi A6
3. Lexus ES 350

Large premium cars

1. Lexus LS
2. Mercedes-Benz S-Class
3. Cadillac DTS

Tags: J.D. Power, Infiniti, Infiniti EX-Series, Infiniti G-Series, Acura TSX, Volvo S40, Volvo, Acura, Infiniti M-Series, Mercedes-Benz, Mercedes-Benz E-Class, Audi, Audi A6, Lexus, Lexus ES 350, Lexus LS, Mercedes-Benz S-Class, Cadillac, Cadillac DTS, automotive, auto industry, automotive industry

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2008 highest quality compact cars

J.D. Power’s 2008 Initial Quality Study is out, and these are the top cars in the sub-compact and compact segments:

Sub-compact cars

1. Honda Fit
2. Kia Rio
3. Hyundai Accent

Compact cars

1. Honda Civic
2. Toyota Prius
3. Hyundai Elantra Sedan

Compact sporty car

1. Mazda Mx-5 Miata
2. Subaru Impreza
3. Pontiac Solstice

Compact premium sporty car

1. Mercedes-Benz CLK-Class
2. Porsche Cayman
3. Volvo C70

Tags: J.D. Power, Honda Fit, Kia Rio, Hyundai Accent, Honda Civic, Toyota Prius, Hyundai Elantra, Mazda Mx-5 Miata, Subaru Impreza, Pontiac Solstice, Mercedes-Benz CLK-Class, Porsche Cayman, Volvo C70, automotive, auto industry, automotive industry

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2008 highest quality brands

J.D. Power’s 2008 Initial Quality Study is out, and this is their full quality ranking by brand, measured in problems per 100 vehicles or PP100. The industry average was 118 which is an improvement over last year.

1. Porsche, 87 PP100
2. Infiniti, 98
3. Lexus, 99
4. Mercedes-Benz , 104
5. Toyota, 104 (TIED)
6. Mercury, 109
7. Honda, 110
8. Ford, 112
9. Jaguar, 112 (TIED)
10. Audi, 113
11. Cadillac, 113 (TIED)
12. Chevrolet, 113 (TIED)
13. Hyundai, 114
14. Pontiac, 114 (TIED)
15. Lincoln, 115
16. Buick, 118
17. Acura, 119
18. Kia, 119 (TIED)
19. Nissan, 124
20. Volvo, 124 (TIED)
21. BMW, 126
22. GM, 127
23. Mazda, 127  (TIED)
24. Volkswagen, 128
25. Hummer, 132
26. Subaru, 133
27. Scion, 138
28. Dodge, 141
29. Chrysler, 142
30. Mitsubishi, 149
31. Saab, 149  (TIED)
32. Suzuki, 152
33. Saturn, 157
34. Land Rover, 161
35. Mini, 163
36. Jeep, 167

Special kudos to Toyota for being the highest ranked mass-market auto manufacturer.

Tags: J.D. Power, Porsche, Infiniti, Lexus, Mercedes-Benz, Toyota, automotive, auto industry, automotive industry, car quality

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US economy dire signals

Rough news for the U.S. economy and auto sales forecast according to billionaire investor Wilbur Ross, Jr. who himself comes from the industry. During his keynote speech at a recent Wards event he listed a number of negative issues he sees right now:

Lower car sales

After dropping by 400,000 units in 2006 and in 2007, sales will go down by more than 1 million units this year. The mix will move toward small cars and away from pickups and SUVs.

Market saturation

"The U.S. car market is the most highly saturated in the world, with practically one car for every actual driver. It is essentially a replacement market. Fewer people are replacing their vehicles as they lose their jobs, retire early or cope with stagnant wages and pay cuts."

Lower income

"U.S. median per-capita income has stalled at $61,000 for the last five years, putting middle America under severe economic pressure. People have been borrowing to support a higher standard of living, but that trend, ironically, has had disastrous consequences as consumers have defaulted on loans, sparking the credit crunch. We actually had a recent year when our nation spent more than we earned, so we had dis-saving for the first time since the Great Depression.

The housing crisis

Last year was the first time since the Depression when housing prices fell nationwide (14.1% in the last 12 months). There has been a $138 billion decline in consumer spending.

Car loans

Car loans also are getting more expensive. Financing has gone from an average of 57 months to 64 months in 5 years. Some manufacturers are considering 80 months.

Higher gas prices

Consumers must brace themselves to pay $4.75 per gallon in the near future. Goldman Sachs forecasts that oil will reach $200 per barrel.

Conclusions

• The American consumer is tapped out and burned out
• Consumer confidence is at a 28-year low: 81% of Americans polled believe there is a recession.
• 2009 may be even more challenging
• Though a change in energy-conscious behavior would have a huge impact, he doesn’t see Americans doing so any time soon.

Tags: U.S. economy, recession, auto industry

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Most productive auto plants in U.S.

Who has the most productive auto manufacturing plants in the U.S.?

According to the 2007 Harbour Report, among multi-plant manufacturers that honor goes to Toyota and Chrysler. Both scored 30.37 hours to fully assemble a vehicle. Chrysler improved 7.7 percent while Toyota actually fell 1.5 percent.

Closely following the leaders by less than 3.5 hours are Honda, General Motors, Nissan and Ford. These four have been persistently closing the productivity gap over the past five years.

It’s worth noting from the Harbour Report press release that:

"Toyota fabricates and assembles a greater percentage of its vehicle parts with its own employees, while the Detroit Three purchase many modules and subassemblies from suppliers, thus saving labor. Toyota also has retained nearly all its employees even in plants that experienced lower production."

The most productive single plant in North America?

Chrysler’s Toledo Supplier Park which takes just 13.57 labor hours to build a Jeep.

You can read more here…

Tags: Harbour Report, Toyota, Chrysler, Nissan, GM, General Motors, Honda, Ford, automotive, auto industry, automotive industry

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Animation meets street art

Watch this amazing animated movie called Muto, by the Argentine artist known as Blu…

Tags: Blu, Muto, animation, street art

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