Another reason to dislike GM? Not that long ago, but before the gas price boom of 2008, GM’s Bob Lutz stated that GM could have used a fraction of one year’s marketing budget to produce a Toyota Prius competitor. Instead, GM invested that money into ads promoting its latest round of gas guzzlers as Toyota went onto sell more than 1,000,000 Prius hybrids and counting. Today, GM’s largest shareholder is the government, via the US taxpayer, and the government has vowed to put $50 billion more into the new GM beyond the many billions it put into GM to save the automaker from bankruptcy. Hopefully, this time, GM is smarter about the way it spends money. But, if the new GM is like the new GMAC, also known as Ally Bank, I think it might be time for liquidation. The new Ally Bank commercials portray Ally Bank as this fair, new bank, unlike all the other banks that screwed over customers and then needed massive bailout money. Unfortunately, however, Ally Bank is GMAC, the same financial unit of GM that received some $20 billion from the US government to keep the doors open. This is the kind of of company – the kind of ethics – that the government is going to invest, ultimately, almost $100 billion into? Read more: Will the new GM be as pathetic as the new GMAC?

Will consumers buy expensive coal powered plug-in vehicles? The Government Accounting Agency (GAO) has completed its research on the benefits of plug-in vehicles, availability and challenges of incorporating plug-in vehicles into the federal fleet according to GreenCarCongress . While the report found that plug-in vehicles offer much potential, it also found lots of problems. For instance America must either embrace nuclear or wide scale renewable power projects in order for plug-ins to reach their potential. Of course, each of these paths offers its own set of extensive problems, such as costs, public approval, etc. Moreover, significant cuts in battery costs, coupled with much higher gas prices, and a more robust auto demand, for instance, will be required to create enough demand for plug-ins to keep the technology moving forward. Ultimately, the GAO report suggests that wide scale plug-in adoption, even at the Federal level, is going to be a complex process. More than anything, at least in my opinion, the report seems to imply that wide scale plug-in adoption might be much further into the future then many of us would like to believe. Certainly, US automakers need to continue, even increase, their plug-in efforts, but isn’t it becoming more and more obvious that US automakers need to completely reconsider their short-to-midterm auto production plans? For example, can the US auto industry continue to move forward without a direct competitor – in terms of cost and technology – to the Toyota Prius ? Go here to see the original:  Plug-in vehicle success still far off in the future?

Was the dual mode Vue hybrid a contender? GM has been talking about a big increase in it’s hybrid vehicle portfolio for a number of years now. Today, GM reiterated those plans of 14 new hybrid vehicles by 2012. Since that statement, MotorTrend has tried to guess GM’s future hybrid line up. Sadly, outside of the Chevy Volt , not much looks that impressive. Hopefully, 14 different models, some rebadged, will collectively help GM move some hybrids and provide some scalability for these technologies. Ultimately, however, there are still some key questions. First, can an updated BAS System with lithium really make GM’s mild hybrids that much more compelling? Second, will the dual mode hybrid powertrain ever be cost-effective, especially in smaller SUVs and crossovers that might not need all the functionality that the dual mode hybrid powertrain provides? Regardless, I’d prefer just one or two new hybrid models, each capable of selling at least 50,000 units per year, instead of 7 more that each sell 10,000 units, or less, per year. Thus, I’m hoping, possibly beyond hope, that GM has at least one hybrid wild card up its sleeve. Read the original post:  2012: GM’s hybrid offensive begins?

Gaining ground in Europe? Hybrid cars probably won’t become major players in Europe until they are offered in diesel versions. Nonetheless, three hybrids are up for the 2010 Car of the Year in Europe. The new third generation Toyota Prius , Lexus RX450h , and Honda Insight were all given a nod in Europe this year. Excerpt from:  3 Hybrids up for European Car of the Year

Can protectionism save US auto jobs? For a few years Toyota has been toying around with the idea of a US plant to manufacture its red hot Toyota Prius . Unfortunately, the current recession crushed any such plan for the short term. Would it be wise for the US government to help bring such a plant to the US, or should the government only protect US companies, or only just UAW workers? Likewise, Nissan is now planning a US plant for electric vehicle and electric vehicle battery development, with a significant eye on US government help. Should they get it? Are incentives for transplants to bring more manufacturing jobs to the US a good or bad idea? See the original post: Incentives for a Toyota Prius plant in the US?

Following the launch of the first hybrid car in the country, Toyota Motor Philippines (TMP) Corp. is now seeking incentives from the government to enable it to cut the price of the environment-friendly vehicle. TMP president Hiroshi Ito said the Toyota Prius was heavily taxed, so incentives could really help bring down the price from the current P2.2 million. “We’re still discussing with the government. This vehicle is not under the incentives program. If there are incentives, then the price can go down,” he told reporters on the sidelines of the Prius launch Friday evening. He explained that more than 30 percent of the car’s price, or around P600,000, was composed of three layers of taxes: import duty, excise tax and value-added tax. But with or without incentives, he said TMP was targeting to sell 100 units of the Prius this year. So far, 30 units of the Prius were already in-country, he said. TMP had yet to start commercial selling of the hybrid vehicle. The Toyota Prius runs on either or both gasoline and electricity via the company’s Hybrid Synergy Drive technology. It has been selling in more than 40 countries worldwide, its biggest markets being the United States and Japan. This third-generation Prius will be marketed in more than 80 countries worldwide to promote the use of hybrid vehicle technology. In an earlier interview, TMP vice chair Alfred Ty said that in many of its markets, Prius buyers were treated to a host of incentives, including tax reductions, subsidies and even parking priorities, to stimulate the use of environment-friendly vehicles. He said TMP could use similar incentives. Meanwhile, Ito said TMP expected overall vehicle sales for the year to be about the same as in 2008, or 45,915 units. The company closed 2008 with a market share of 36.9 percent. As of end-May, TMP continued to hold the top spot in the local auto industry with sales reaching 17,080 units for a 34.9-percent share of the market. http://horisly.blogspot.com/atom.xml The rest is here: Toyota Prius Seeks Tax Incentives in Philippines

Not everyone can survive owning an smaller economy car, but can’t afford something high-end. Nor can they use an impractical sports car for the everyday slog. That doesn’t mean that this increasing group suffer by driving something drab. So here are some cars that are priced right for their markets and offer some enjoyment of driving to the owner. 2010 Ford Fusion and Lincoln MKZ The Fusion and MKZ brand new for 2010 to better compete with the offerings from Honda, Toyota, and Chevrolet for the Ford while the Lincoln goes after Infiniti, Lexus and Cadillac. The Fusion is priced to compete and even undercut its rivals, with a base price of under $20,000. Most other competitors a few thousand more. The MKZ is a bit more expensive, with $34,600 buying you leather, wood and chrome accents on the exterior. Both cars are all-new this year, riding on the new Mazda6 platform again. The Fusion retains the three-bar front grill to keep in line with the previous-gen car, but now has a more pronounced front-end and Terminator-like headlights. The rear gets more styling cues in the bumper and trunk lid while the LED taillights dip in one corner to give the rear more of an appeal. On the other hand, the MKZ gets a bit more radical treatment to it’s front end. Essentially a shrunken copy of the upcoming MK-T, the new look follows the radical design path Lincoln seems to be applying. I applaud them for that. It may not be to everyone’s taste, but it’s an edgy, yet sophisticated application of the new look. The sides and rear of the car are a carryover design, and unfortunately do not reflect the new styling. Inside, there are flat, but comfortable buckets up front in the Fusion. The gauges are terrific with big numbering lighted by a soft blue glow. The center stack, however, suffers from a growing problem of over-buttoning, in which the entire center stack is awash in many small buttons. There is a good quality feel, which is following Ford’s rapid improvement in material quality. In the MKZ, there is that much more upscale feel to it. There is a sublte touch of wood, the cleaner layout of the center stack and the optional Bridge of Weir leather upholstery greatly differentiate the Lincoln from the less expensive Fusion. I drove the Fusion...

Japanese incentives for ecological gadgets are helping lift electronics sales, according to ministry and industry data, in what may be an early sign of some recovery in a recession-battered economy. Under a government stimulus package, that kicked in May 15, people who buy energy-efficient flat-panel TVs, refrigerators and air conditioners accumulate “eco-points,” which the government promises will convert to discounts or trade-ins for products that have yet to be announced. Despite the mystery of what the perks may be, the Ministry of Economy, Trade and Industry said electronics sales were up 50 percent during the week after the “eco-point” system started, compared to the same period last year. Last week they were up 30 percent from a year earlier, the ministry said. Gfk Marketing Services Japan, a private sector researcher that monitors sales data at about 4,500 electronics stores nationwide, found sales of flat-panel TVs were up 60 percent in the May 18-24 week from a year earlier. Sales of refrigerators were up 9 percent for that week, Gfk said Monday. Green gadget incentives are part of a larger government package meant to wrest the world’s second largest economy from its worst recession in postwar history. Japan has also made gas-electric hybrid vehicles tax-free and reduced taxes on other ecological vehicles. Sales of both the Prius hybrid from Toyota Motor Corp. and the Insight hybrid from Honda Motor Co. are booming in Japan. Orders for the Prius nationwide have topped 110,000, although Toyota had targeted selling just 10,000 Prius cars a month. Honda’s Insight was Japan’s top-selling car in April, the first time a hybrid clinched that spot. A separate cash-for-clunkers incentive of up to 250,000 yen ($2,500) for trading in a vehicle 13 years or older won legislative approval Friday, and will take effect in coming weeks. http://horisly.blogspot.com/atom.xml Here is the original post: Japan’s May Incentives Boost Hybrid Vehicles Sales

Toyota Motor Corp., Japan’s largest automaker, led a 19 percent drop in the country’s vehicle sales last month, as falling wages and rising unemployment discouraged customers from visiting showrooms. Sales of cars, trucks and buses, excluding minicars, fell to 178,503 vehicles, the Japan Automobile Dealers Association said in a statement today. Toyota sold 80,503 units excluding Lexus brand cars, down 24 percent. Honda Motor Co., the country’s second-largest automaker, posted a 4.5 percent gain, and No. 3 Nissan Motor Co. sold 9.1 percent fewer units. Japan, the world’s second-largest economy, is struggling to spur spending among consumers as wages fell for an 11th straight month and the jobless rate reached a five-year high in April. Still, the pace of decline in auto sales slowed last month from 32 percent in March and 29 percent in April, as government tax incentives helped boost sales of Toyota Prius and Honda Insight gasoline-electric hybrid cars. “More and more people are opting for hybrids to save money given the current economic condition,” said Ichiro Takamatsu, chief investment officer at Alphex Investments Co. in Tokyo. Rising oil prices this year will “further spur demand for cars with better fuel economy.” Toyota has received more than 80,000 orders for the revamped Prius, it said on May 8. Honda’s Insight has attracted 35,000 orders, it said on May 21. Nissan said on May 19 that orders for 14 fuel-efficient models such as the Cube and Tiida rose about 30 percent in last month. Unemployment Sales of minicars, powered by engines no larger than 0.66- liters, declined 18 percent to 113,540 units last month, the Japan Mini Vehicles Association said in a separate statement. Daihatsu Motor Co., Japan’s largest minicar maker, sold 41,168 units in May, down 16 percent. Suzuki Motor Corp.’s sales fell 12 percent to 39,649 units. Combined with minicars, industrywide sales dropped for the 10th straight month, falling 19 percent to 292,043 vehicles. Minicars represent about 40 percent of the Japanese market. Japan’s unemployment climbed to 5 percent in April, the government said last week. Household spending fell 1.3 percent in April, the 14th straight decline. Outlays by consumers make up more than half of the economy. Prime Minister...

Given the turmoil in the automotive industry, you wouldn’t think it’s a favorable time to buy a car, but industry experts say declining sales, production cutbacks and manufacturer incentives might make it a good time after all. “The next 45 to 60 days are the big closeout days, not in the fall,” said Alan Rice, executive manager of Colonial Cadillac in Norfolk, Va. “That’s when you’re going to have your best selection as well.” The cause: the historic slump in auto sales in the face of the economic recession, which has slowed the production of new vehicles. At the current sales rate, U.S. sales would come in at just more than 9 million for 2009, according to Automotive News. Compare that to 2007, when Americans bought 16.2 million new cars and trucks. The falloff in demand has led automakers from Asia to Europe to slash output. And with cars and trucks piling up on dealer lots, manufacturers are boosting their incentives. “Manufacturers have put a lot of cash on the hood to move the metal,” said Frederick Miller, president and chief operating officer of Hall Automotive. “New-car incentives are high, factories are closed and supplies of some models are dwindling.” Although buyers may have their choice of most models now that might not be the case by the fall, the time of year many look for bargains. And with factories closed, Miller said that automakers might not be able to replenish the pipeline quickly. “By July, we’re going to have a small amount of vehicles,” he said. “It’s going to be picked over by the end of summer.” Everyone agrees this scenario could change if Congress passes a “Cash for Clunkers” bill, which would offer car buyers additional cash incentives to buy a new car. While that would stimulate demand for new cars in the short term, it could exacerbate shortages later this year. Even so, there’s a wild card: Chrysler LLC. With Chrysler closing a quarter of its dealers nationwide, the market could become flooded with new Chrysler, Dodge and Jeep cars and trucks selling below cost as shuttered dealers try to dump their new vehicles at auction to raise cash. “There’s going to be a sell-off,” said Miller, who runs a Chrysler, Dodge and Jeep franchise in Virginia Beach. “That could be the Wild West show.”...

As the clock ticks down to an expected GM bankruptcy filing on Monday, the pieces for a potentially smooth restructuring process are falling into place. Monday, we will cover the announcements from GM and President Obama here, as well as at twitter.com/CReporter . The President is expected to address the nation at about 11:55, with GM hosting a press conference at 12:15.  On Saturday, a majority of GM bondholders, holding a little more than 50 percent of GM’s debt, agreed to a plan to exchange their debt for an ownership stake in the company, according to the New York Times . The bondholders will initially get 10 percent, but will eventually be able to increase the stake to 25 percent. This is expected to streamline the bankruptcy process, with expectations that GM could emerge within about 60 to 90 days. (See: “ GM counts down to ‘B Day’ ” and “ Concerned about GM’s bankruptcy? ”) Meanwhile, across the Atlantic, an agreement was reached for GM to sell a majority stake of its European operations, including the German Opel and British Vauxhall brands, to a group led by the Canadian auto-parts manufacturer, Magna International. With this plan in place, Opel is expected to be placed under a trust, which will shield it from the U.S. auto bailout and, again, help make the restructuring process go more smoothly. According to Canada’s Globe and Mail , Magna will become Canada’s first major automaker since 1918 and has said that it wants to build Opel cars in Canada. While many Americans aren’t familiar with Opel, its cars have begun to trickle into our market in recent years as GM has been using them to develop new Saturn models. The current Saturn Astra and Vue , for example, are rebadged versions of the Opel Astra and Antara, respectively. (These links go to the model overview pages with ratings, road tests, and more, available to online subscribers.) How have they done? In our tests, we found the Astra agile to drive with good steering and a composed ride, but its acceleration is lackluster and fuel economy is so-so for its size. The Astra scored midpack in our hatchbacks ratings, but is not recommended because we don’t yet have reliability data on it.   While the Opel-based Vue is a big improvement over the previous version,...

There was some encouraging news for the UK’s hard-pressed car industry yesterday when the Government confirmed that 35,000 cars have been ordered as a result of its car scrappage scheme. The numbers equate to one scrappage scheme order in every five new car orders since the scheme – which offers a £2,000 subsidy for people trading in vehicles 10 years or older for new models – went live earlier this month. Business Secretary Lord Mandelson was present as Prime Minister Gordon Brown welcomed six new car buyers who had benefited from the scheme to Downing Street. Mr Brown said: “I am determined to do everything I can to see Britain through the downturn quickly and build a stronger Britain for the future. That is why I am delighted that over 35,000 people have already taken up the Government’s offer of help to buy a new car when they scrap their old one. “This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars.” The scheme, with £300m from Government and matched funding from manufacturers, is designed to provide immediate support in the short-term for the car industry and its supply train in the wake of falling sales. The £2,000 grant, made up of £1,000 from Government and the same from vehicle manufacturers, will run until March next year. Chief executive of the Wales Automotive Forum, Tim Williams, said the scheme was starting to have an impact on sales, but a full recovery was still some way off. In the past 10 months the automotive component industry has haemorrhaged some 4,500 jobs in Wales. In 2007 the sector employed 25,000, but now has just more than 20,000. However, the majority of job losses have been among temporary staff. Mr Williams said: “The large companies bring in temporary workers for given contracts or when there is a upturn in demand. However, unfortunately, they are the first to be hit in a downturn, but we have also lost core workers in Wales as well.” The automotive components sector is dominated by the big international firms such as Ford, which employs 2,000 at its engine plant in Bridgend and the Toyota plant at Deeside which employs 700. In total there are 40 international firms in Wales, which employ the bulk of the current workforce with 16,000. Some...

Toyota’s three-generation Prius hybrid has made a booming 110,000 orders in Japan, turning out to be a rare bright spot in the gloomy auto market. The third-generation Prius officially rolled out in Japan just two weeks ago. But dealers are already flooded with orders, including some placed weeks in advance, according to the dealership. Toyota Motor Corp., the world’s biggest automaker, said two weeks ago that it received 80,000 advance orders, and has not updated that number. But the Toyota Tokyo Corolla dealer said Saturday that nationwide orders at Toyota dealerships in Japan, including those of rivals, have soared to 110,000. Dealers tally their customer orders differently from the way manufacturers do. But any way you slice it, the Prius is a hit. Toyota has set its monthly sales target for Japan at 10,000 new Prius cars — a figure that should make it the top-selling car in the country. As the orders stack up, the company looks on track to meet or even surpass its goal and take that crown — an astonishing accomplishment for a hybrid, although the Prius is fighting competition from another new hybrid, Honda Motor Co.’s Insight. Hybrids are in demand partly because the Japanese government began offering tax exemptions for the cars to encourage their sales earlier this year. Parliament gave consumers added incentive Friday when it approved a cash-back rebate for trading in cars 13 years or older for greener cars. Hybrids also promise savings on gas. In Japan, where frequent stop-and-go traffic lowers the fuel efficiency of gas-engine cars but actually raises it in hybrids, the Prius is promising nearly 90 miles per gallon (38 kilometers per liter). In heavy traffic, hybrids rely on their electric motors and thus burn no gas. The overall Japanese auto market has been languishing for years, with vehicle sales falling to their lowest level in more than three decades last year. Demand has worsened since the U.S. financial crisis sent this nation into a recession. Toyota, which also makes Lexus luxury models and the Camry sedan, has said it is increasing Prius production to meet demand. But it is still expecting a 550 billion yen ($5.7 billion) loss for the fiscal year through March 2010, its second straight year in the red, because of the global...

GM has announced that it will hold a press conference on Monday, June 1, in New York City. While the company has not specified what will be discussed, many industry analysts believe it will announce that it is filing for Chapter 11 bankruptcy . (The U.S. Bankruptcy Court in New York is handling Chrysler’s bankruptcy .) Even while using a similar streamlined approach as that being used with Chrysler, the federal government has reportedly said that GM would need at least 60 to 90 days to emerge from bankruptcy. (Read: " GM counts down to B Day .") In the meantime, a lot of car buyers and owners are unclear about how this will affect them. To help answer these questions, we’ve created a special Auto Crisis hub that looks at the common consumer concerns we’re hearing, from warranty and service questions to what you can do if your local dealer closes its doors . The latter concern is becoming ever more relevant to current GM owners since, according to Automotive News , GM has also said that on Monday it will begin notifying hundreds of dealerships (beyond the approximately 1,100 it has already notified ) that the company will not extend their franchise agreements beyond October 2010. This is another step in GM’s plan to reduce its dealerships from about 6,000 to about 3,600. The next few days promise landmark events in the auto industry, so follow the latest happenings both in our Cars blog and in our Auto Crisis hub . We’re also interested in hearing what your main concerns are with Chrysler’s and GM’s restructuring efforts. Leave a comment below. — Rik Paul Read the original post:  Concerned about GM’s bankruptcy?

California’s EPA waiver no longer needed In the last 24 hours I’ve noticed quite a bit of news regarding how US automakers are now on board with President Obama’s plans to increase fuel economy and reduce CO2 tailpipe emissions. While they claim its about unified standards, I think its all about the money. Not so long ago, many from the US auto industry claimed that such requirements were impossible to meet. Funny how bankruptcy and dependency on tax-payer money changed that opinion. Today, automakers need every dollar they can get out of the government. Maybe we should push them even harder? Anyway, better late than never I guess. More here:  Automakers all on board with new CAFE requirements