BMW has experimented with four-cylinder models in the U.S. before with limited success. At the time, Americans didn't buy the idea of a luxury-branded car with such a small engine. BMW bailed on the idea along with most other luxury brands with a few exceptions. Now a Bloomberg report says that BMW is reconsidering four-cylinders for the U.S. This time, however, it's not by choice. The impending fuel economy rules are forcing the automaker's hand as it must raise its corporate average from roughly 26.5mpg to 35.5mph by 2016.  Will American buyers respond any differently this time around? Bloomberg: BMW May Use 4-Cylinder Engines To Meet U.S. Fuel Economy Rules Here is the original post: BMW May Use 4-Cly. Engines To Meet U.S. Fuel Economy Rules Original post:  BMW May Use 4-Cly. Engines To Meet U.S. Fuel Economy Rules

General Motors quickly emerged from its May 31st Chapter 11 filing this morning, benefiting from the Chrysler bankruptcy process before them and Auto Task Force drive to get the corporate giant back on its feet. The transition from old to new GM should be rather seamless for consumers, at least initially. GM has culled four divisions from its portfolio and down the road it plans to significantly reduce its dealer body by not renewing franchise agreements. These 1,100 dealerships, representing about 18 percent of GM’s total dealers, will have until October 2010 to sell their remaining cars. The product line up will drop from 48 to 34 nameplates in the process. This Q&A addresses some common questions, and we will continue to provide additional insights and advice as General Motors and Chrysler both begin their new chapters. For more information, go to our Auto Crisis page . Also, learn how bankruptcy works . Who owns the new GM? Earning the nickname “ Government Motors ,” the American tax payers are the majority owner for the new company. GM ownership breaks down to: The United States government—a 60.8 percent stake A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent The governments of Canada and the province of Ontario—11.7 percent Bondholders of the old GM—10 percent. What brands and models are available? The new GM will include Buick, Cadillac, Chevrolet, and GMC brands. GM has stripped itself of Pontiac , Hummer , Saab , and Saturn . The latter three divisions are being sold to other companies, so those brands are expected to continue to be available in the United States. Future GM models include the Buick LaCrosse ; Cadillac CTS coupe, CTS Sport Wagon and SRX ; Chevrolet Cruze , Orlando , Spark , and Volt ; and GMC Terrain . Will I be able to get parts and service for my GM car? GM dealers will continue to provide service, as before. Hummer, Saab, and Saturn dealers will be supported until they are sold off, enabling them to continue without interruption. In emergency situations, most of these vehicles can be serviced at any GM dealer. Perhaps the greatest consumer impact will be the significant reduction in dealerships, making car maintenance less convenient. Keep in mind that you don't...

New GPS devices continue to hit the market during the summer travel season, providing more premium-level features in basic units and increasingly user-friendly designs. We have been testing GPS units as they become available, buying them at retail stores, then putting them through an exhaustive set of laboratory and real-world evaluations. Our latest test batch includes several Garmin units and a Nextar. (See our GPS buying advice and ratings .) Last month, we completed testing several new Magellan navigators and added them to our sortable ratings. Known for mid-pack performance, Magellan impressed with devices like the RoadMate 1220 and RoadMate 1440 providing a generous features roster, enhanced graphics, and notably improved ease of use. Now, we can see how they fare against the latest-generation Garmin navigators. Latest GPS test Garmin Nuvi 1200 — True to Garmin form, the new 1200 and 1300 series devices provide very good navigation abilities with an easy-to-use interface. As an entry-level navigator, the Nuvi 1200 stands out because of the ability to pronounce proper street names, however it lacks some higher-end features such as reality view and lane assistance. Garmin Nuvi 1260T — Building on the Nuvi 1200, the Nuvi 1260T includes some uplevel features such as Bluetooth hands-free calling and an included traffic receiver with free lifetime service. Garmin Nuvi 1300 — With a 4.4-inch screen, the 1300 series is a variation of the 1200, enlarging the display and therefore making it easier to enter information. Garmin Nuvi 1350 / Nuvi 1350T — This widescreen model has the ability to pronounce proper street names, however it lacks some higher-end features such as reality view and lane assistance. Garmin Nuvi 1390T — The Nuvi 1390T includes some high-end features such as Bluetooth hands-free calling, an included traffic receiver with free lifetime service, as well as lane assistance and reality view. This model is approaching the premium devices offered by Garmin, but it lacks some of their multimedia features and the quick release mount. Nextar 43LT — This Nextar combines a GPS navigator with multimedia capabilities and available extras such as games and 3D buildings.   Down the road Looking ahead, our testers anticipate testing new Garmin,...

July is historically a peak travel time in the United States, as gas prices surge in response to the demand, but indications show that prices may have already cooled off this summer. A number of factors contributed to some anxiety over fuel costs this season and brought back memories of the sticker shock from last summer. Drivers saw prices increase by more than a $1 a gallon so far in 2009 and almost 60 cents from early May. This was due to an increase in demand while supply was low and an initial boost in consumer confidence. (See our blog “ Why gas prices are going up? ”). However, the past two weeks prices have seen a decrease after an eight-week climb. Crude oil prices have dropped to about half of what they were last summer when they reached over $130 a barrel. A reduction in demand coupled with an increase in supply and production have helped to push prices back down a little earlier than expected. Plus, the economy and recession has forced many to change travel plans and stay closer to home. AAA expected July 4th travel to be down almost two percent from last year. The Energy Information Administration (EIA) said in its latest, weekly report that “it appears that the summer market may be near, if not past, its peak.” And looking at the trends from past years, as illustrated in the embedded EIA graph, it is easy to see that prices historically dip after the July 4th weekend. Unless there is a major hurricane or storm that affects refineries or an unexpected economic change, the June 22nd price of $2.69 a gallon could be the highest we’ll see for sometime. And that’s good news for people who still have road trips and other driving adventures planned for the rest of the summer. — Liza Barth More here: Gas prices: Are they past their peak?

In this tight economic market, businesses are doing just about anything to drum up sales including slashing prices, providing incentives, coupons, and free shipping. Some companies are getting even more creative and maybe a bit mysterious. A colleague’s wife recently received a letter in the mail with no return address and inside was a fake newspaper ad for a three-day sale at a Nissan dealership. Attached to the ad was a yellow Post-It note that said "Glynis, check this out!" signed "J." The sale was pretty intriguing in that they were advertising $29 down and monthly payments as low as $129 a month for a used car from a variety of manufacturers. It was dubbed the "National Automotive ‘Insider’ Sales Event". On the back of the full-page ad was a list of mutual funds, resembling the financial pages from a major newspaper. We never found out where the ad came from and if it had any merit, but the tactic raised a red flag. Selling it any way possible This type of marketing is not new. In the mid-90’s, Consumer Reports magazine published an item in its Selling It section, which poked fun at deceitful and obtuse advertising, titled "Mystery mail." The piece discussed an example of a bogus article promoting an anti-aging formula. After looking into the ad with the Better Business Bureau, we found the parent company had a history of failing to deliver products and refunds. Plus, the dietary supplement they were selling was available over-the-counter for one-tenth of the price. These deceptive advertising techniques seem to especially pop-up in a down market when people are looking for deals and businesses are desperate to move inventory. The auto industry is particularly prone to creative, even misleading tactics, with dealers desperate for business from a reluctant, cash-strapped consumer base. It’s important to be especially wary of scams and false claims, especially with the upcoming CARS "cash for clunkers" program that will introduce new complexities into the buying process for eligible customers. If you have questions about an advertising claim, it’s best to check with the Better Business Bureau before you shell out any cash. And certainly hesitate to pursue anonymous solicitations. Remember a long-held...

Magellan seems to be on the rise. The GPS-maker has seen its portable navigation devices (PNDs) perform better in our ratings lately , with recent products showing notable improvement in our tests over the previous mediocre models. And key rival Navigon has left the U.S. market . Now, a new, large-screen model joins the product range, the Maestro 4700. Priced at $300, the Maestro 4700 has a 4.7-inch screen and premium features, such as Bluetooth hands-free connectivity, lane assist, spoken street names, and voice command. It also boasts some of the latest elements seen in competitors’ devices, such as historic traffic data for intelligent routing, parked-car finder, pedestrian mode, and 3D landmarks. Other features of note include the AAA TourBook guide with information on hotels, restaurants, and attractions. Six million points of interest can be accessed by search and also by exit, so travelers can see what is coming up at the next turnoff. Maps include Canada, Puerto Rico, and the United States. The Magellan navigators added to our GPS ratings last month, including the RoadMate 1220 and Roadmate 1440, had abundant features, improved graphics, and better ease of use than prior models we had experienced. We will see if the promising Maestro 4700 continues the trend, once we run it through our extensive test regimen . — Jeff Bartlett F or more information on portable automotive GPS navigation systems , see our Ratings and buying advice and watch our video guide . Discuss GPS devices in the forums . See the rest here: Sneak peek: Magellan Maestro 4700 GPS

Several manufacturers are now marketing electric motorcycles, but they remain a rare enough sight that riding one can draw a certain amount of attention. While riding one of the newest electrics, a Zero S, in the neighborhood surrounding our Yonkers, N.Y., offices, people engaged in sidewalk conversations stopped and stared mid-sentence as I whirred past. I know this because I could hear them talking, even going by at 30 mph. The Zero is that quiet. It even drew attention from the local police, who pulled me over just to ask questions about the battery-powered bike. So, what is it? Santa Cruz, California-based Zero has been making an off-road motorcycle since 2008, but the Zero S is their first street bike. Like the competing Brammo, the Zero S is lightweight at 225 pounds, nimble, and easy to ride. (Read: “ Brammo electric motorcycles coming to Best Buy .”) There is no clutch or gears to shift; you just twist the throttle and go. Disc brakes front and rear provide smooth, sure stops. With performance roughly comparable to a small, 250cc gasoline-powered motorcycle , the Zero S is targeted at commuters and urban dwellers who don’t need a lot of cruising range or high-speed capability.  Company officials say the Zero S has about a 45-60 mile range, depending on how hard and fast it is ridden. Top speed is about 60 mph, and the lithium-ion batteries recharge in roughly four hours using any household 110-volt outlet. Rather than using a traditional dealer network, Zero plans to sell their bikes direct to customers through the company Web site. This, they say, will help keep the price down. At $9,950, the Zero S is still expensive, and it is about 2-3 times the cost of comparable gasoline-powered models. But it’s also about $2,000 less than the competing Brammo, and the company says state and Federal tax credits could shave another $1,000-$3,000 off the price, depending on where you live. Most of the cost is in the batteries, but CEO Gene Banman is confident his bikes have a future and that battery costs will come down. Banman says he’s seen a 25 percent drop in the last 12 months, and that he expects to be able to reach price parity with gasoline-powered motorcycles in about five years. That could make electric motorcycles a viable option for some,...

Officially, the federal CARS (Car Allowance Rebate System) rebate system kicked off yesterday. But don’t drag your clunker down to your local dealership just yet. According to the government’s official CARS Web site , the program won’t be up and running until around July 23, 30 days after President Obama signed the “Cash for Clunkers” act into law. That’s because mechanisms for dealers to sign up for the program and to be reimbursed the rebate money may take a few weeks to implement. So, it may take a little bit longer before you can take advantage of the program. The CARS program will provide rebates of $3,500 or $4,500 to new-car buyers who trade in vehicles that get lower mileage for scrap. For more details see our earlier post. That hasn’t stopped some Web sites from springing up to lure consumers to register and give their names to dealerships as sales leads. For the record, cars.gov is the only official cash-for-clunkers Web site. There will be no need for consumers to register for the program, and rebates will come directly from dealers, not in the form of physical vouchers. — Eric Evarts The rest is here: Cash for Clunkers not ready yet

As if buying a lemon isn’t bad enough, Chrysler is now demanding that some customers who settle lemon-law claims forfeit any future legal claims against the company. That’s the conclusion of several consumer lawyers who have clients with lemon-law claims against the new Chrysler Corp., run by Italian automaker Fiat. Consumers who take cash settlements for lemon vehicles in lieu of selling the vehicles back to Chrysler are being asked to sign a release that indemnifies Chrysler and its dealerships “from all known and unknown claims, damages, costs, attorneys fees, expenses, loss of services, personal injuries, and property damage.” Chrysler spokesman Michael Palese says the release is “a very standard waiver that is signed all the time.” However, according to attorneys whose clients have been asked to sign the waiver, the clause implies that even if a current Chrysler owner who suffers a future accident caused by a defect in the car will have no recourse to Chrysler, according to Norman Taylor, Principal at Norman Taylor and Associates in Glendale, Calif. Palese denies the form prevents consumers who sign it from taking future legal action against Chrysler. “It doesn’t prevent the signer from taking future action,” he says. “Whoever is reading that is reading the newspaper and is absolutely tripped by the debate about product liability in bankruptcy,” he says. Taylor says it isn’t clear whether future legal action would be forbidden until a court has a chance to review such a case, but it could be. In addition, the release asks consumers to certify that their car “is not a lemon, and does not qualify as a lemon under the Magnuson-Moss Warranty Act,” the federal law that establishes consumers’ right to lemon-law protection. That means when consumers do resell or trade in the car, the title may not be branded as a lemon, according to Clarence Ditlow, Executive Director of the Center for Auto Safety , who is also on the board of Consumers Union, publisher of Consumer Reports. The lemons they bought go right back on the car lot to be sold to some other unsuspecting customer, he says. “When they [the consumer] keep the car, it’s important for us to declare the car is not a lemon. If we took it [the car] back, it would not reenter the...

General Motors has released details of its model lineup for 2010. As might be expected from a company in bankruptcy, the number of model launches is modest, though significant. There are six new vehicles: the Buick LaCrosse , Cadillac SRX and CTS SportWagon , Chevrolet Camaro and Equinox , and the GMC Terrain , plus a special-edition Corvette, the Grand Sport. But the bigger news may be what isn’t included in the plan; GM won’t be building the mild-hybrid versions of the Chevrolet Malibu, Saturn Aura or Saturn Vue, according to an AutoBlog report . (Since the company has announced it is selling Saturn, eliminating Saturn hybrids is not surprising.) GM spokesman Brian Corbett confirms, “Production of 2010 model year Malibu hybrids is suspended due to high inventories of ’09 models for the remainder of the calendar year.” After that he says, the company will reassess whether to continue building Malibu hybrids. Production of the Saturn hybrids is also suspended for now pending final arrangements with Penske Automotive Group, the company buying Saturn . Since GM is phasing out Pontiac , the laudable G8 sedan is also history (along with a number of other Pontiac models we won’t miss). The lone Pontiac listed for 2010 is the CR-recommended Toyota Matrix twin Vibe. Beyond the new models, General Motors has new technology coming to improve fuel economy, including: Adding cylinder cutoff technology to the 6.2-liter V8 engine used in the Cadillac Escalade. Adding variable valve timing all 5.3-liter V8 and 6.2 liter V8s. (Flex-fuel capability will also be expanded to almost all the company’s V8s.) Making a single-speed transfer case standard on Tahoe, Yukon, Avalanche, and Suburban SUVs which means they become full-time four wheel drive. (A two-speed transfer case will still be optional.) Expanding the range of special XFE fuel economy trim lines to its large and small pickups. Safety technology will also be expanded, with side and side-curtain airbags standard on Chevrolet Colorado and GMC Canyon pickups, a rearview camera available on the Chevy HHR, and lane departure warnings and blind zone alerts available on the Cadillac DTS. USB ports for connecting portable music players will become more commonplace, as will XM Traffic alerts and advanced OnStar 8.2....

Best Buy may not be a store most people associate with motorcycles. It certainly isn't the place most riders would think of when it’s time to pick up a new bike and hit the highway. But the electronics retailer is exactly where you can expect to find electric motorcycles soon. At first blush, the people behind motorcycle maker Brammo could be dismissed as nutso for even thinking of hooking up with a big-box store as the primary outlet for their electric cycles. Keep in mind, the Brammo guys are people who know motorcycles, ride motorcycles, and know other people who do. And the Brammo Enertia is a real motorcycle, a full-size bike capable of highway speeds. But the folks at Best Buy bought into the idea too, so much so that they are an investor. And as odd as it might seem at first to find a $12,000 electric motorcycle tucked in amongst the flat-screen TVs and laptop computers, the relationship does make a certain amount of sense. As Brammo CEO Craig Bramscher explained at a recent New York City media event, the idea of working with an electronics store came out of what he calls an epiphany that occurred during development, when a group of people involved were standing around looking at a disassembled Enertia. The assorted parts, they reasoned, had every bit as much to do with electronics as they did mechanics. Indeed, the Enertia has few moving parts and lots things like batteries, capacitors, controllers, and gizmos. Bramscher even describes the power cord as looking like the ones powering Hewlett-Packard computers in offices across America. Brakes and tires are about all there is to maintain, as long as the motor and batteries hold out. And if they don't, bring on Best Buy’s Geek Squad. Company officials point out that many Best Buy stores still have two- bay garages from the days when the company did a brisk business installing aftermarket audio systems. Since that business has all but dried up, that space is available. Charged to be wild While our test ride was limited to a quick trip around the block on the streets of Manhattan, we came away favorably impressed. Acceleration is quick and smooth, and disc brakes are powerful and easy to modulate. The 285-pound Enertia feels and looks solidly put together, and it is light and agile, absorbing New...

“Didn’t we test two of these already?” asked my colleague Eric Evarts. Yep. This is the third Lincoln MKZ/Zephyr that we’ve tested in five model years. (We tested a 2006 Zephyr and a 2007 MKZ.) Although we consider the name change to be a step back—Zephyr and Aviator were pretty good names, rather than a bunch letters that follow some obtuse branding scheme—Ford otherwise keeps on making substantial improvements. The MKZ’s platform-mate, the Ford Fusion / Mercury Milan , was thoroughly freshened for 2010, so the Lincoln follows suit. (Follow the links for ratings and reviews.) It had already received a strong 3.5-liter V6 mated to a six-speed automatic back with the 2007 name change, and it finally got stability control (a big omission in this class) for 2009. For 2010 it gets a new fascia, making it hard to tell apart from our MKS that sits across the parking lot. More important changes include better noise isolation and a revised interior that looks less like a throwback to the days of the Ford Fairmont. (I wish they had also moved the center-mounted stop light to the trunk lid, like they did on the 2010 Fusion/Milan, to improve rear visibility over the high rear deck.) Our modestly equipped front-wheel drive MKZ has the Technology Package (basically HID headlights) and a power moon roof. It rings in at $37,160. I have to admit, this poses something of a head-scratcher, especially if you compare it to the Fusion. The Fusion SEL we’re testing lacks the MKZ’s 3.5-liter V6 and the dual full-power and ventilated front seats. And the Lincoln is somewhat quieter and more posh inside. But our nicely-equipped Fusion drives well, like the Lincoln. The 3.0-liter V6 works well. (You could get the 3.5-liter in the Fusion Sport, if desired.) Our Fusion has blind-zone detection and a backup camera, options Lincoln doesn’t let you buy without the added cost of a navigation system. (You’d think the “Technology” package would include those technologies.) Finally, the Ford is nearly $9,000 less than the Lincoln. It’s hard to see the added $9K of value in the MKZ. Perhaps even more troubling: There are a lot of excellent cars in this class for the same price or less, including the Acura TL and Infiniti G37 . Indeed, even the larger, plusher, and faster...

In tests of seven small and subcompact cars, the Insurance Institute for Highway Safety ( IIHS ) has found that none of the bumpers performed well in the equivalent of minor fender benders. In the four tests performed on each vehicle – full-width front and rear, and front and rear corner impacts – the worst-performing Kia Rio hatchback sustained $9,340 in total damage. Our tested Rio stickered for $14,110, so the damage amounts to more than two thirds of the car’s original MSRP. Damage to the Rio would cost more than a used Rio would be worth and to repair than most midsized cars and minivans the IIHS has tested. In addition to the Rio, the Institute tested the Chevrolet Aveo , Honda Fit , Hyundai Accent, Mini Cooper , Smart ForTwo, and Toyota Yaris . (Click links for road test videos.) IIHS rates cars on a scale of Good, Acceptable, Marginal, and Poor. Of the seven cars, none rated Good, and only the Smart rated Acceptable due in part to its pliable plastic parts. The Chevrolet Aveo received a Marginal rating, and all the rest rated Poor. The IIHS introduced a new rating system for its bumper tests. The full-width front and rear tests are run at 6 mph (more than twice the federal standard which dictates 2.5 mph impact with no damage) and the corner tests at 3 mph. The test results are weighted according to how frequently those types of accidents actually occur, and the Institute calculates an average repair cost based on the weighting. To receive a Good rating, the average must be below $500, which is the cost of the deductible on most insurance policies. The cutoff for an Acceptable rating is $1,000, about the cost of replacing the bumper cover, reinforcement bar and paint on most cars, IIHS says. Any cost beyond that involves replacing lights, grilles, or engine cooling parts, for example, and warrants a Poor rating. Vehicles that are unable or unsafe to drive after one of the tests cannot receive better than a Marginal rating. The IIHS’s bumper tests have no bearing on occupant protection or crash safety, only the cost of repairing damage from minor impacts such as what could happen in a parking lot. The costs of such repairs can have a big impact on insurance premiums. Consumers buy small cars to save money, says IIHS spokesman Russ Rader. But these...

Electric cars are no replacement for conventional cars, despite what you might have read. That’s the conclusion of Bill Reinert, Toyota’s manager of advanced technology planning. In an interview at a New York City conference on sustainable development, Reinert said the company would produce an electric version of it’s tiny Scion iQ . He added that the company is looking at new business models for electric cars, and it won’t be focused on suburban use. Electric cars may make the most sense to operate in the city, where vehicles usually drive at low speeds and for short distances. However, a real challenge for city use is that most urban dwellings don’t have dedicated parking with access to a plug. So plug-in cars that work on the expectation that consumers will charge them every night at home won’t work. So, Toyota says it is looking at “new business models,” such as car sharing, leasing batteries or cars, and fleet sales for its EVs. Some will be sold to traditional consumers as well, he says. Toyota announced that it will sell 500 plug-in Priuses, powered by lithium-ion batteries along with a gasoline engine, in 2012. More than half those sales will be to individual consumers, while 150 will go to government and corporate fleets. In the end, Toyota predicts that perhaps 20 percent of vehicles will be electric by 2020. — Eric Evarts Excerpt from:  Toyota: Electrics coming, but won’t replace gas cars

A few months ago, as part of the economic stimulus package, the IRS announced tax breaks for car buyers. This measures allows state and local sales tax to be deductible from federal income tax. However, that only included states with sales tax. Now the IRS has amended the provision to include breaks for those states without sales tax. They include Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon. Car buyers from these states can now qualify for a special deduction of other fees or taxes imposed by the state or local government. To qualify for the deduction, a vehicle must be purchased between Feb. 16, 2009 and Jan. 1, 2010 and has a purchase price limit of $49,500. Buyers must have a modified adjusted gross income of less than $135,000 if filing individually or $260,000 if filing jointly. But the deduction is phased out for individual filers with income between $125,000 and $135,000, and for joint filers with incomes between $250,000 and $260,000. Taxpayers can only claim this special deduction on their 2009 returns. For more information on the tax breaks and economic stimulus package, see the IRS Web site . For tips and advice on buying a new car, see our buying guide . For help in choosing the best vehicle for your needs, the interactive New Car Selector can help you quickly sort and filter models down to the attributes that matter most to you. — Liza Barth   Originally posted here:  Tax breaks for new car buyers in more states