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Profit-Taking Pulls Oil Back From $103

NEW YORK -- Oil futures retreated from a new overnight record above $103 as the dollar gained strength and Turkish forces withdrew from northern Iraq, removing two of the reasons underpinning crude's dramatic 19 percent rise from earlier this month, according to the Associated Press.

But many analysts believe the declines may be temporary, and that oil is poised to rise above $103.76 a barrel. That's the price many believe to be oil's all-time high on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.

Posted by Peter C. T. Elsworth  at 12:52 PM to Crude oil market | Permalink | Comments 0

Backseat Driver: Detroit should bring its small cars and vans over from Europe

Europe is awash with small, fuel efficient cars and vans, many of which are powered by clean diesel engines – it’s even an option for the Ford Focus. Many carry American brand names and it’s about time Detroit shared the wealth with us over here.

Ford has a fabulous range of vehicles. Its Transit Connect, which is a funky little cargo van built in Turkey, was a big hit at the Chicago Auto Show, and it is expected to import its Fiesta model in the near future, although in sedan mode only.

Ford currently offers its Focus brand in only two models in the U.S. – the 2-door coupe and 4-door sedan. In Europe it continues to market its highly successful 5-door hatchback. And it has also introduced its New Ford Focus, a makeover that includes a nifty station wagon/hatchback.

General Motors, which operates in Europe under the Opel (Germany) and Vauxhall (Britain) brand names, also designs and builds a wide range of vehicles around the world. It is bringing over its Astra and Vectra models through its Saturn division, but why it does not bring over its successful Corsa subcompact beats me.

Chrysler markets its Dodge Caliber in Europe, but offers a turbo-diesel version, and its Dodge Sprinter van might be a candidate to come to these shores.

While gasoline prices in the United States remain well below European levels, with crude oil recently rolling over the $100 a barrel mark and gas prices possibly reaching $4 a gallon in the spring, the appetite for small, fuel efficient cars can only increase.

Posted by Peter C. T. Elsworth  at 12:31 PM to commentary | Permalink | Comments 0

Less Can Cost More, Says Consumer Reports

Sometimes a bargain isn’t. A car that may look inexpensive, up front, just might wind up costing you more in the long-run, warns Consumer Reports magazine, in its Annual April Auto Issue, reports thecarconnection.com

Once you add in factors like maintenance, fuel costs, insurance, interest and depreciation, the actual cost of ownership can be significantly different than what many car buyers would expect. The magazine notes that with its $17,500 sticker price, a Mitsubishi Lancer is a whopping $5,000 less than the smaller Mini Cooper — at least when you first drive it home. But over the typical, five-year ownership cycle, the equation looks quite a bit different. When you add in repairs and other factors, the Mitsubishi actually will cost about $3,000 more, Consumer Reports calculates.

Toyotas score quite well, according to the magazine. While the Highlander SUV is $3,000 more, initially, than a comparable Ford Explorer, the Japanese SUV will save an owner $6,500 over the long-run. And lower fuel costs are one of the main reasons why the Prius hybrid will save an owner $2,000, after five years, versus a Chevrolet Cobalt, even though the sticker price of the Chevy is $7,500 less.

But one big surprise comes from the luxury side of the Toyota line-up. Its Lexus brand has relatively high maintenance costs, so over that same, five-year cycle, an ES350 will rack up a full $2,300 more in repair costs than a Lincoln MKZ.

Posted by Peter C. T. Elsworth  at 11:44 AM to Sales | Permalink | Comments 0

The Best And Worst Certified Used Cars

Think about a used car and you might think junky, dirty and old. But another market is catching the attention of savvy buyers who want updated rides without paying new-car prices, according to forbes.com.

These certified used or certified "pre-owned" (CPO) vehicles have been inspected and refurbished by the manufacturer and are backed by extended warranties. The certified used car market isn't one that automakers can afford to ignore.

According to a recent J.D. Power and Associates study, sales of certified used cars have increased 46% since 2000. Auto experts estimate that 1.6 million certified used cars are sold annually, a number equivalent to 10% of new vehicle sales.

This rapid growth started when the segment emerged in the 1990s. Luxury automakers like Mercedes-Benz, BMW and Lexus, looking for ways to unload vehicles coming off lease programs, introduced the certified pre-owned programs as a way to attract the discerning buyer who wanted a luxury car but didn't want to shell out the big bucks.

Other luxury and non-luxury automakers who found themselves in similar situations began offering their versions of these programs.

Posted by Peter C. T. Elsworth  at 11:31 AM to Sales | Permalink | Comments 0

Consumer Reports: Honda again tops; Ford and GM improve

YONKERS, NY — Overall, the best cars sold in the U.S. are still made by Honda, according to the Automaker Report Cards published in Consumer Reports’ Annual Auto Issue on sale March 4. Honda also led the pack last year, the first time the country’s largest expert, independent, non-profit consumer product testing organization issued such information.

With an overall score of 78 out of 100 points, Honda was followed closely by Toyota (75) and Subaru (72). BMW, Mazda, Nissan, and Volkswagen tied at 71, after rounding. Only Honda and Subaru have earned the distinction of having all of the models tested make Consumer Reports’ Recommended list.

Honda is also the only automaker whose entire model lineup is currently recommended. Full details and rankings are available in the article “Who makes the best cars?” in the magazine and for online subscribers at www.ConsumerReports.org.

Honda earned the top score because it builds cars that are well-rounded, have excellent reliability and perform very well. But not all of Honda’s models lead their class. The new CR-V SUV can’t quite match the top-ranked Toyota RAV4. The Accord was edged out by the Nissan Altima, and the Honda Odyssey minivan scored slightly lower than the Toyota Sienna.

The overall score for each automaker is based on the average overall scores of its vehicles in Consumer Reports’ road tests and its average predicted-reliability score from Consumer Reports’ Annual Car Reliability Survey. Manufacturers received a report card only if five or more of its vehicles were tested.

Posted by Peter C. T. Elsworth  at 3:07 PM to Honda | Permalink | Comments 0

Ford Flex price tagged at $29,000

It’s one of the more highly anticipated crossovers of 2008 — and now, Ford’s Flex crossover apparently has a base price assigned to it, according to thecarconnection.com.

Automotive News reports that Ford will charge $28,995, including destination, for the base 2009 Ford Flex when it goes on sale in the summer. The weekly news reader says it got its information from a dealer printout.

According to the info, the Flex will be offered in three trim levels and in front- or all-wheel drive. The most expensive Flex Limited will top the pricing ladder at $37,255.

Posted by Peter C. T. Elsworth  at 9:27 AM to Ford | Permalink | Comments 0

Ford recalls 470,000 Mustangs to update air bag software

DETROIT — Ford Motor (F) said Wednesday it is recalling 470,000 Ford Mustangs from the 2005-2008 model years to recalibrate how forcefully the air bag deploys on the front passenger side of the car, according to the Associated Press.

Internal testing showed the air bag could injure a small, unbelted passenger, said Ford spokesman Wesley Sherwood. The recall was posted on the website of the National Highway Traffic Safety Administration.

Sherwood said the fix would address "a very rare scenario," and there were no reports of injuries or accidents tied to the recall.

Posted by Peter C. T. Elsworth  at 9:23 AM to Ford | Permalink | Comments 0

Backseat Driver: Love for first car is supreme

Love at first sight. A 1955 Citroen Deux Chevaux (2CV)

After I graduated high school in England in 1968, I went to study in France for a year. And I fell in love … with the Citroen Deux Chevaux.

Described variously as “a tin can on springs,” or the “tin snail,” the small car was an iconic feature of post-WWII France along with Gauloise cigarettes and Bridget Bardot.

My first car was a 1955 model that I bought from a Dutch student whose family had a summer house outside St. Tropez. It had a dipstick in the gas tank and window wipers that were geared to the motor and supplemented by a hand knob when the car was stationary.

It was rudimentary and romantic – as are all things at the age of 18 – and I have an affection for the 2CV that I will take to my grave.

And it seems I am not alone. A recent survey of 2,000 people carried out by the British International Auto Show found that most remembered their first car better than they remembered their first kiss, first love or 18th birthday!

Certainly, a number of the stories I write are about people who have restored their old car or their father’s/grandfather’s car, or a car that is the same model as their first car. Others just have a car they dote on, or love their work in a car-related business.

That’s why I often say to people that while I may be the auto writer here at The Providence Journal, what I really write are love stories.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:56 AM to commentary | Permalink | Comments 0

Nissan GT-R Waiting Game About to End

Hardly a model year goes by without the debut of at least one new car that sets off a frenzied run on dealers’ showrooms, according to The New York Times.

In the last decade, introductions for vehicles as disparate as the Volkswagen New Beetle, Chrysler PT Cruiser, Mini Cooper and Ford GT each resulted in months-long waiting lists, accompanied by gigabytes of Internet speculation.

So far in 2008 that must-have car seems to be the Nissan GT-R, a 480-horsepower sports coupe with all-wheel drive and a full-time cheering section. It will be available in the United States in June, starting around $70,000. Nissan plans to import 2,500 GT-Rs this year and about 1,500 annually in the future.

Typically, the cars that set off these stampedes carry names steeped in history or, at the least, a design that gestures to a beloved icon of the past. Why, then, is a car whose predecessors Nissan has never sold in the United States proving such a phenomenon?

The 2009 GT-R may be the first car whose reputation was forged primarily in the virtual world, at least in the minds of young American enthusiasts. The GT-R is a mainstay of leading video games, notably the Gran Turismo series that Sony PlayStation fans devote hours to, and was a featured star of a promotion that linked the introduction of the actual GT-R at the 2007 Tokyo auto show with the release of a special prologue edition of Gran Turismo 5.

Posted by Peter C. T. Elsworth  at 10:29 AM to Nissan | Permalink | Comments 0

Gas Prices Soar, Posing a Threat to Family Budget

Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring, according to The New York Times.

The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

“The effect of high oil prices today could be the difference between having a recession and not having a recession,” said Kenneth S. Rogoff, a Harvard economist.

The depth of the nation’s economic problems became clearer Tuesday with the release of figures showing that prices at the producer level rose 1 percent in January from December, driven in large measure by energy costs.

Compared with a year ago, prices were up 7.4 percent, the worst producer price inflation in the United States since 1981.

Posted by Peter C. T. Elsworth  at 10:10 AM to Gas prices | Permalink | Comments 0

Oil Briefly Tops $102 a Barrel

VIENNA, Austria -- Oil prices briefly rose to a new intraday high above $102 a barrel Wednesday as a slide in the U.S. dollar prompted investors to pump more money into energy futures as a hedge against inflation, according to the Associated Press.

Light, sweet crude for April delivery on the New York Mercantile Exchange spiked as high as $102.08 a barrel in electronic trading before slipping back. It was up 13 cents at $100.99 a barrel by afternoon in Europe.

Posted by Peter C. T. Elsworth  at 10:08 AM to Crude oil market | Permalink | Comments 0

Ford Is Pushing Buyouts to Workers

WOODHAVEN, Mich. — Ford is applying the hard sell these days — piling on incentives, doling out marketing DVDs and brochures, and making offers it hopes are too good to pass up, according to The New York Times.

But Ford’s big new push is not to sell cars. Instead, it is trying to sign up thousands of workers to take buyouts, partly by convincing them that their brightest future lies outside the company that long offered middle-class wages for blue-collar jobs.

So, Ford is pitching a buffet of buyout packages that are easily among the richest ever offered to factory workers, including one-time cash payments of $140,000 or college tuition plans for an entire family.

The automaker is also putting on job fairs in its plants and mailing each of its 54,000 hourly workers a feature-length DVD, titled “Connecting With Your Future,” that extols the promise of new careers beyond the assembly line.

Posted by Peter C. T. Elsworth  at 1:33 PM to Ford | Permalink | Comments 0

Nissan Murano Gets Top Rating in SUV Crash Tests

AP photo / Insurance Institute for Highway Safety

DETROIT -- The 2009 Nissan Murano was the best performer in new crash tests of midsize sport utility vehicles, while the Hummer H3 had one of the poorest showings, according to results released Tuesday by the Insurance Institute for Highway Safety, according to the Associated Press.

The institute, which is funded by the insurance industry, said the redesigned Murano was the only vehicle among the nine tested to get the highest rating in front, side and rear crash tests.

It praised Nissan Motor Co. for making electronic stability control standard on the 2009 Murano. The system, which helps prevent swerving, was an option on previous models.

Posted by Peter C. T. Elsworth  at 1:32 PM to Safety | Permalink | Comments 0

Tata to announce purchase of Jaguar and Land Rover next week.

Tata Motors will announce its purchase of Jaguar Land Rover on March 5 or 6, according to Automotive News.

The dates have been agreed between Tata and Ford, which is selling the two luxury brands, following talks with trade union leaders last week.

Roger Maddison, national officer of Unite, the largest union in the UK auto industry, told Automotive News Europe Tata had agreed to meet guarantees sought by workers' leaders.
He said, " Everything seems fine as far as we are concerned; it's just the lawyers working on it now."

Union leaders spoke with Ford and Tata to resolve final details before the drawing up of a memorandum of understanding for the sale.

In earlier talks with the two companies, unions had been seeking assurances that Tata would continue to source engines, stampings and other

Posted by Peter C. T. Elsworth  at 3:04 PM to Ford , India | Permalink | Comments 0

Gasoline, diesel prices leap toward records

The price of diesel fuel hit a record Friday — and gasoline prices are leaping so fast they could set records this week, according to USA Today.

Rocketing retail fuel prices are the result of the week's $100-a-barrel crude oil prices and tight supplies as refineries switch to producing costlier summer-blend, clean-air gasoline that's required by federal regulations.

The nationwide average price for diesel Friday was a record $3.541 per gallon, according to data collected daily at more than 85,000 fuel stations by the Oil Price Information Service (OPIS) and published by travel organization AAA.

The average for regular-grade gasoline Friday was $3.115, up 2.9 cents overnight and 6.2 cents in two days.

Posted by Peter C. T. Elsworth  at 9:59 AM to Gas prices | Permalink | Comments 0

Johnston makes deal with auto dealers

JOHNSTON — The town has headed off a potential legal battle with two local auto dealers who had hoped to avoid paying property taxes on their Hartford Avenue buildings over the next 10 years, according to The Providence Journal.

After filing legal claims last year, the dealerships have agreed to forego the litigation and the town has agreed to permit the tax breaks over a five-year period, a town lawyer said yesterday.

Both Chris S. Hurd, of Hurd Hummer, and Michael Grieco Sr., of Metro Honda, had negotiated 10-year tax treaties with the administration of Mayor William R. Macera and the Town Council.

Posted by Peter C. T. Elsworth  at 1:07 PM to Local dealerships | Permalink | Comments 0

Back Seat Driver: GM’s Lutz wipes his shoes

I would like to give GM Vice Chairman Bob Lutz the benefit of doubt, but it’s hard to tally his apparent belief that global warming is a "total crock of s***" with that company’s efforts to create alternative fuel vehicles.

Lutz made the comment to reporters last month and yesterday said his beliefs are irrelevant to GM’s program to develop vehicles powered by ethanol-gas blends, and hybrid and fuel cell technology.

“It amazes me sometimes what kinds of things seem to “catch on” out there,” Lutz wrote on GM’s FastLane blog yesterday.

“An offhand comment I made recently about the concept of global warming seems to have a lot of people heated, and it’s spreading through the Internet like ragweed. But I think that the people making big deal out of it are missing the real point. My beliefs are mine and I have a right to them, just as you have a right to yours.”

Maybe. But it sure does not help GM’s reputation, especially after reporting whopping losses and losing its place as the biggest auto company to Toyota.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:08 AM to commentary | Permalink | Comments 0

Gas Prices Jump, but May Not Stay High

NEW YORK -- Gas prices jumped Friday to their highest level since June, a possible preview of what many analysts believe will be a record spike in pump prices this spring, according to the Associated Press.

But the current price surge could be short-lived. While gas prices have risen sharply in recent days in response to oil's dramatic climb to a new record above $101 a barrel, gasoline supplies have quietly grown to their highest level in 14 years.

At the pump, gas prices rose 2.9 cents overnight to a national average of $3.115 a gallon, according to AAA and the Oil Price Information Service.

Posted by Peter C. T. Elsworth  at 10:39 AM to Gas prices | Permalink | Comments 0

Ghosn Says US Auto Market in Recession

SEOUL, South Korea -- The head of Nissan said even if the United States is not in recession, its auto industry is, according to the Associated Press.

"We are very lucid on the situation of the industry that there is a recession in the United States, at least in the car market," CEO Carlos Ghosn told reporters, saying automakers face rising costs for iron ore, precious metals, aluminum and other materials.

Ghosn, who is also president and CEO of Renault SA of France, expressed optimism that the market will improve. Renault owns 44 percent of Nissan.

The American auto market "will not stay in recession for a long time," he said.

Posted by Peter C. T. Elsworth  at 10:31 AM to Auto industry | Permalink | Comments 0

Back Seat Driver: Hummer is looking for a job

You know when you go to the zoo and check out groups of animals – parakeets, for example – there’s always one with a bald head? Animals (and that includes us) seem to bond by picking on the weakest in the group.

So it’s ironic that of all the vehicles on the road today, the one with the bald head is that bad boy, General Motor’s Hummer.

As sentiment has moved from SUVs toward smaller vehicles in recent years due to concern about rising fuel prices and the environment, Hummer’s reputation as the embodiment of gas guzzling macho has grown.

Even though the newer, smaller versions of the Hummer – the H2 and H3 – are about as fuel efficient as any other big SUV, its mean demeanor gets it the raspberries.

So GM is trying a new marketing strategy, according to USA Today, to present the Hummer as a working vehicle rather than a suburban tank. One GM executive complained that no one criticizes a bulldozer for being a gas guzzler.

Well, no. But the problem with the Hummer, unlike the Jeep, is that it has yet to make the transition from its military heritage. The H2 and H3 may be smaller than the original H1 let alone the Army’s HUMVEE, but they still look aggressive.

The Jeep transformed itself into an iconic recreational vehicle while the Land Rover, which was originally based on the Jeep, is known as both a working vehicle and suburban status symbol.

Now the Hummer, with its limited appeal to the laid-back recreational market and a mixed reputation as a status symbol, is looking for a job.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:15 AM to commentary | Permalink | Comments 0

Oil Pushes Past $101 on Fed View

NEW YORK -- Oil futures rallied again Wednesday, pushing briefly past $101 a barrel after the Federal Reserve lowered its forecast for economic growth this year, convincing energy investors that the central bank will slash interest rates further, according to the Associated Press.

At the pump, meanwhile, gas prices rose another 2 cents overnight.

The Fed said damage from the housing slump and problems in the credit markets will slow economic growth to between 1.3 percent and 2 percent this year, down from a previous forecast for GDP growth of between 1.8 percent and 2.5 percent.

The contract for March delivery of light sweet crude rose 73 cents to settle at a record $100.74 on the New York Mercantile Exchange after earlier rising as high as $101.32, a new trading record. On Tuesday, the contract jumped $4.51 a barrel

Posted by Peter C. T. Elsworth  at 5:26 PM to Crude oil market | Permalink | Comments 0

Triumph Is Pick of Online Voters

Gavin Rhodes was surprised that his black 1959 Triumph TR3A won the Collectible Car of the Year contest on nytimes.com.

At a time when American muscle cars have become treasured icons and Italian sports cars are, well, Italian sports cars, Mr. Rhodes, 33, didn’t think his froggish little roadster stood a chance.

“I was up against a Ferrari,” he said, adding that the contest “really represented the whole spectrum of classic cars. Some people use them every day. Other people have several million-dollar cars that are trucked around from show to show. I was amazed.”

A total of 558 cars were entered in the contest, and 4,500 votes were cast by readers of nytimes.com for the 30 finalists, which had been chosen by the staff of the Automobiles section in November. As winner, Mr. Rhodes will receive $5,000 and a trophy; the other finalists will receive a prize package valued at $50 and passes to the New York International Auto Show in March.

The outcome of the competition revealed an automotive counterculture of sorts: the enduring affection for classic British sports cars, warts and all.

Posted by Peter C. T. Elsworth  at 1:18 PM to Collecting | Permalink | Comments 1

Gasoline prices back above $3 a gallon

Gasoline prices rose back above $3 a gallon Monday for the first time in nearly a month as crude oil prices have risen on demand worries, according to USA Today.

The national average price of regular gasoline rose to $3.014 a gallon Monday, according to AAA, after topping $3 over the weekend. That is almost a penny lower than a month ago but about 76 cents higher than a year ago.

For most of February, the average hovered just below $3; the lowest average price was $2.953 a gallon Feb. 11.

Posted by Peter C. T. Elsworth  at 1:13 PM to Gas prices | Permalink | Comments 0

Back Seat Driver: Jitters sends oil prices up again

Crude oil prices have edged up almost $10 a barrel over the last week, prompted by a number of factors. They are now hovering north of $95 a barrel.

Last week it was threats from Venezuelan Supremo Hugo Chavez to cut off supplies of oil to the United States. Today it's reports that the Organization of Petroleum Exporting Countries, which produces about 40 percent of the world's oil, is mulling a production cut.

The mercurial Chavez has since relented on his threat which was to a large extent hollow due to the limited market for Venezuelan oil.

That nation may be the fourth largest supplier of crude oil to the U.S. (about 1.2 million barrels a day last year) after Canada, Saudi Arabia and Mexico, but its oil is heavy, sulfur-rich muck which has to treated by specialized refineries mostly on the U.S. Gulf Coast. Indeed, the market for over half of Venezuela's exported crude IS the United States.

Now OPEC is making noises about possible cuts in production. The organization’s power may be a fraction of what it was in the 1970s and early 1980s, but it still carries a punch. Back then, it literally ruled the global crude oil market, actually setting prices for the then dominant crude – Saudi Arabian Light.

Those days are gone, supplanted by the spot market and the futures exchanges in London and New York, but OPEC retains enough internal discipline to maintain a strong influence on the market.

Since it came into its own in 1973, OPEC has traditionally straddled the line between getting as much for its oil without setting off dire economic consequences in the industrialized economies. It continues that tightrope act, seeking to balance its production (and therefore prices) with the health of the global economy.

The organization recently intimated that it would cut production if global supplies continued to grow. And that fit in with reports that see the U.S. economy sputtering and going into recession - if we aren't there already. Certainly, a slowdown in economic activity would lead to reduced oil demand around the world.

But only last week U.S. industrial production in Januaryt was reported to have risen in line with expectations.

In short, there are fewer signs than usual of what the future brings. Certainly the lack of any clear outcome from, or plan to engage, Islamic terrorism – the war in Iraq (pace Bush’s surge) and the growing unrest in Afghanistan and Pakistan – makes these very jittery times.

That jitteriness is shown in the quick, neurotic price moves following any reports regarding the supply and price of crude oil, the lifeblood of the industrial world.

In short, reality is anyone's guess right now - and that's the problem!

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 10:20 AM to Crude oil market , commentary | Permalink | Comments 0

Land-Locked Swiss Invent Underwater Car

GENEVA -- A Swiss design company has invented a car that runs on land and underwater, according to the Associated Press.

It's called the "sQuba," and conjures up memories of James Bond's amphibious Lotus Esprit from "The Spy Who Loved Me."

The concept car - which unlike Bond's is not armed - was developed by Swiss designer Rinspeed Inc. and is set to make a splash at the Geneva Auto Show next month.

The sQuba can plow through the water at a depth of 30 feet and has electrical motors to turn the underwater screw. For safety reasons, car has an open top, meaning that the two passengers have to wear wetsuits

Posted by Peter C. T. Elsworth  at 4:09 PM to Fun | Permalink | Comments 0

Nascar’s Screech and Slam? It’s All Aerodynamics

To prepare the drivers for the “Car of Tomorrow” being introduced at the 50th running of the Daytona 500 this Sunday — billed with characteristic stock car understatement as “the Most Anticipated Event in Racing History” — the racing teams’ engineers have spent the winter testing their versions of the new car in wind tunnels and running huge computer simulations called C.F.D.’s (for computational fluid dynamics).

To understand what is happening on the track and in the garage here at Daytona, you need either a crash course in aerodynamics or the guidance of Dr. Leslie-Pelecky and her new book, “The Physics of Nascar," according to The New York Times.

Posted by Peter C. T. Elsworth  at 10:43 AM to Racing | Permalink | Comments 0

Repo lots overflow with reclaimed cars

So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing, according to USA Today.

Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, said Thomas Webb, chief economist for a unit of Atlanta-based Manheim, one of the largest wholesale auto auction services.

This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, he said. The increase comes atop a 10% rise in repos last year.

Posted by Peter C. T. Elsworth  at 10:24 AM to Sales | Permalink | Comments 0

Back Seat Driver: Seven-year car loans smell of huckterism

One of my father’s favorite expressions was ‘Nothing in this world is free.’

Wise words that reflect proverbial wisdom going back centuries. And words we love to forget.

Take the recent development of automakers offering car loans spread over seven years or longer. Yes, the payments are lower but as James Healey points out in USA Today, vehicles lose half their value in three years and trading one in at that time on a seven-year loan means significant debt is still outstanding.

That means people will either hold off on buying new cars or take on more debt.

Option 1 is not good for future sales and Option 2 just adds more debt onto consumers already saddled with high levels of credit card and mortgage debt.

I mean, help me out here. Are we not in the middle of a financial meltdown due in large part to “sub-prime mortgages” going belly up? Those are the house loans made to folks who were not eligible to take on the financial responsibility they signed up for.

But they did not buy the mortgages in a vacuum. They were sold the mortgages by people who in many cases knew the loans could go bad. Indeed, many of the loans were structured to take advantage of ill-informed people who signed up for low initial payments only to be hit be massive increases a few years down the road.

There is another word for this type of seling: hucksterism. And huckstering is a fine American tradition. Indeed, some of the funniest passages in “Huckleberry Finn” describe the shenanigans of two hilarious hucksters – the duke and the king - who try to take advantage of country folk by pretending to be European royalty.

And it seems to me that with seven-year car loans we have yet another example of hucksterism - in this case, of presenting debt as affordable and pain free.

So long as you don’t look at it too closely and the implications down the road.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:46 AM to commentary | Permalink | Comments 0

GM's strides not enough

Despite a historic new labor agreement, a garage full of new products and $9 billion in cost-cutting over the last two years, General Motors' release of its worst-ever annual financial results Tuesday shows that its North America division is still struggling to post the profits that Wall Street expects, according to The Detroit Free Press.

GM Chief Financial Officer Fritz Henderson acknowledged "there are still a number of near-term challenges," but overall he seemed positive about the progress GM has been making.

Posted by Peter C. T. Elsworth  at 11:43 AM to GM | Permalink | Comments 0

Back Seat Driver: Tough times for auto industry

No doubt about it, these are very tough times for the auto industry.

Especially the domestics.

Take General Motors which today announced a loss of $722 million for the fourth quarter – but that was peanuts compared to the $39 billion loss it reported in the third quarter for unused tax credits. It also announced a buyout program to all its 74,000 workers.

For the year, the company reported a loss of $38.7 billion and does not see making any serious money until 2010.

Meanwhile, newly private Chrysler is in the midst of a massive restructuring that includes buying out workers, consolidating its dealerships and cutting the number of its models.

Ford is also buying out workers and consolidating the number of its dealerships as well as negotiating the sale of its Jaguar and Land Rover brands to Tata Motors of India. And it is reported to be interested in selling its Volvo brand.

All this against a backdrop of January sales that stunk – 15.8 million vehicles versus 16.3 million last January. Indeed, out of the six largest auto makers, only GM had higher sales (up 2.6 percent), according to Automotive News.

All the rest were down; Chrysler -12.1 percent, Ford -3.9 percent, Honda -2.3 percent, Nissan -7.3 percent and Toyota – 2.3 percent.

Automakers are hoping the recent cuts in interest rates and the tax rebates from the economic stimulus package will come to the rescue. Let’s hope they do.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 6:05 PM to Auto industry | Permalink | Comments 0

High-Tech Invitations Take Your Mind Off Road

Motorists have always engaged in risky behavior, whether it is eating a sandwich, arguing with a spouse, applying makeup or studying a map while speeding down the interstate.

But safety experts say the influx of electronics is turning cars into sometimes chaotic — and distracting — moving family rooms, according to The New York Times.

Talking on cellphones and typing text messages while driving has already led to bans in many states. But now auto companies, likening their latest models to living rooms on the road, are turning cars into cocoons of communication systems and high-tech entertainment.

Posted by Peter C. T. Elsworth  at 2:58 PM to Safety | Permalink | Comments 0

Thieves targeting catalytic converters in Rhode Island

Catalytic converter thefts, once unheard of, are happening with regularity across Rhode Island, and the nation, according to The Providence Journal.

Platinum and other precious metals coat the composite materials inside catalytic converters, which make gases such as carbon monoxide and nitrogen oxide less harmful. The devices are a required exhaust-system component for the majority of SUVs, trucks and automobiles on the road.

With metal prices spiking this winter, some scrap yards will buy a converter for as much as $150. And victims can pay as much as $1,000 in parts and labor to replace the device.

Posted by Peter C. T. Elsworth  at 1:25 PM to crime | Permalink | Comments 0

Gas prices in Rhode Island on the decline

For the first time since November, the average price of gasoline in Rhode Island has dipped below $3 a gallon. But the reprieve may be temporary with oil prices rising the past few days and the annual spring run-up just around the corner, according to The Providence Journal.

The average price of regular, self-serve gasoline was $2.999 a gallon yesterday, down 4 cents from last week, according to a survey of local dealers by the state’s Office of Energy Resources.

The average price has fallen 16 cents from its most recent peak of $3.159 a gallon on Jan. 7.

Home-heating oil rose 2 cents a gallon to $3.329 a gallon, according to the Office of Energy Resources, 10 cents below the all-time high of $3.429 a gallon, also on Jan. 7.

Posted by Peter C. T. Elsworth  at 9:58 AM to Gas prices | Permalink | Comments 0

Video: The Tata Nano from India

Check out this Associated Press video of the world's cheapest car, the Tata Nano from India.

Posted by Peter C. T. Elsworth  at 2:02 PM to India | Permalink | Comments 0

Back Seat Driver: "Goldfinger" is a showcase for 1960s cars

Hey, guess what I watched this weekend? That old chestnut James Bond movie “Goldfinger” which I first saw in 1965 (when I was 15) and which is a great movie if you are interested in cars from that era.

Of course, everyone is familiar with the silver Aston Martin DB5, armed to the teeth and the most famous of Bond cars. Equally famous is the yellow and black 1937 Rolls Royce Phantom III Sedance de Ville which Goldfinger has fabricated in gold and then driven to Switzerland to have melted down.

But how about the white 1965 Ford Mustang convertible which gets in a driving duel with Bond in his DB5 on alpine roads with hairpin turns? It was Mustang’s debut on the silver screen. Or the white 1964 Ford Thunderbird which CIA agent Felix Leiter and his partner drive around?

Watching the Bond movies now, as I have occasionally with my 14-year old stepson Pat, they seem more quaint than cutting edge, more comic book than real.

But to an adolescent then (and now), it was mesmerizing.

The success of the Bond movies, especially the first three – “Dr. No,” “From Russia With Love,” and “Goldfinger” were partly due to the inimitable Sean Connery who, as a Scot from the wrong side of the railroad tracks is the only Bond who seems to have been able to give and take a beating, and partly due to the exotic locales – Jamaica, Istanbul (where Bond has figs and yoghurt for breakfast, foods no one had heard of back in the 1960s), Venice, Miami Beach, Switzerland and Kentucky.

Other gorgeous vehicles in Goldfinger include a red 1964 Ford Country Squire station wagon and a 1964 Lincoln Continental convertible sedan.

Then there is the Lincoln Continental sedan that Oddjob uses to drive a mobster to “the airport.” Instead he shoots him and delivers the body and car to a scrap yard which proceeds to crush the car into a cube. The cube is then deposited onto the flatbed of a green 1964 Ford Ranchero – which in real life would have been crushed by the load!

And in the background all through the movie, all sorts of cars and trucks so remote from today they might as well be horse-drawn carriages.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:21 AM to commentary | Permalink | Comments 0

Tasca makes it to second round of NHRA Winternationals

POMONA, Calif., – It may not have been a race win for Bob Tasca III and the Motorcraft/Quick Lane Tire & Auto Center Shelby Mustang team on Sunday, but qualifying for the race and advancing to the second round of the NHRA Winternationals was a victory for the entire team, according to a news statement from Tasca.

“It’s a huge win for us,” said Tasca of his first NHRA Nitro Funny Car weekend. “To qualify at the Winternationals and to win in the first round and go out there and make a strong pass in the second round is just awesome.”

Tasca faced Ashley Force in the second round of competition and put together a 4.955 second, 310.63 mph run, but reached the finish line just .082 of a second behind Force.

“Our second run was just a little bit too conservative for what we thought the race track would hold, but it was awesome to race against such a great competitor like Ashley Force.”

Tasca was the No. 14 qualifier for the race, which put him alongside fellow rookie, Melanie Troxel, in the first round. The 2008 Rookie-of-the-Year contender earned his spot in the second round after posting a 5.235 second, 225.97 mph winning run against Troxel.

“That was exciting,” said Tasca after his first round win. “To qualify for Pomona and to win the first round is just amazing. We spun the tires up at the top end and I didn’t see her, so I pedaled it and it we made it through. This is just so incredible for our team and for Motorcraft and Quick Lane.”

Tasca’s rise into the nitro ranks after running in the Top Alcohol Funny Car class has been a quick one, having earned his license just over a week ago.

“To come here after only starting this program in November and to struggle the way that we did in Phoenix, is just such a credit to my team. There were a lot of question marks on our team and I’m sure a lot of people probably didn’t give us too much of a chance.

"I’m just real proud of the whole program and my two crew chiefs Mike [Kloeber] and Chris [Cunningham] and all the guys that work 15 hours a day to get this thing to go up and down that track. It’s quite an accomplishment for our team.”

“It takes the top 10 drivers to run for the championship, and that’s our goal’ said Tasca. “With these guys behind me, anything is possible.”

Tasca returns to the site where he earned his nitro license as the NHRA POWERade Drag Racing Series heads to Firebird International Raceway Feb. 22-24 for round two of the 2008 season.

Posted by Peter C. T. Elsworth  at 10:38 AM to Racing | Permalink | Comments 0

Back Seat Driver: Biofuels may ADD to global warming

Say it ain’t so!

Granola crunchy biofuels may actually add to global warming, according to The New York Times.
Boy, the bloom is fast coming off the biofuel rose.

Just a year or so ago, biodiesel and ethanol were all the rage; the fuels that were going to save us from both petroleum dependency on the Middle East and global warming.

Well, biodiesel remains the fuel of choice for the Professor Crackpots in their garages. Indeed, production is so low compared to petro-diesel that it barely appears on the radar screen.

Meanwhile, the ethanol “fuel of the future” miracle is looking less credible by the day. It is about 20 percent less efficient as a fuel than gasoline. And it is corrosive and can clog up engines if allowed to sit and absorb water, as it has a propensity to do.

In addition, federal subsidy programs have resulted in excess demand for corn, driving prices up, while limited outlets for ethanol has resulted in a glut, driving prices down.

Now comes the news that the destruction of natural ecosystems, such as forests and savannahs, to make way for corn production is adding to global warming.

Citing the journal Science, the NYT says the destruction of the ecosystems not only releases greenhouse gases when they are burned, but deprives the planet of natural sponges to absorb carbon dioxide.

The news is unlikely to deter production of corn and ethanol, however, as there is too much money at stake. And so we have to swallow an unexpected setback on the road to energy independence and relative climate stability.

Posted by Peter C. T. Elsworth  at 3:12 PM to Environment , commentary | Permalink | Comments 0

Back Seat Driver: Chrysler to cut models, dealerships

Chrysler is changing faster than you can say Mitt Romney.

The company, which was taken private by Cerberus Capital Management last year, says it plans to cut its range of models by as much as half and reduce the number of its dealerships by much as a third, according to the Detroit Free Press.

All this comes under a recently announced Project Genesis, as in beginning. Project Genesis replaces Project Alpha, as in beginning, which called for dealers to sell its Chrysler, Dodge and Jeep brands under one roof.

Those initiatives follow the elimination of 12,000 jobs announced in November, following the elimination of 13,000 jobs announced last February.

The company also dropped four models in November, including the Chrysler Crossfire and Dodge Magnum.

While Romney’s presidential candidacy partly foundered on shattered credibility as he flipped former moderate positions to suit conservative voters, the moves by Chrysler are an aggressive effort to get on the same playing field with Asian manufacturers.

Analysts have argued, for example, that over half of domestic dealerships, which sell an average of 600 vehicles a year, need to be closed in order to compete with import dealerships, which average more than 1,200 sales.

Hopefully Chrysler’s changes will have the opposite effect from the reaction to Romney’s shifts and increase its credibility with the consumer.

Posted by Peter C. T. Elsworth  at 12:16 PM to Chrysler , commentary | Permalink | Comments 0

Web site doesn't mince words on 10 worst vehicles

Check out The Dallas Morning News' Terry Box find re the 10 worst cars as ranked by thetruthaboutcars.com.

Posted by Peter C. T. Elsworth  at 3:17 PM to commentary | Permalink | Comments 0

Back Seat Driver: Bad news from nation's biggest auto retailer

Folks, I hate to be the bearer of bad news, but when AutoNation, the nation's biggest auto retailer, reports its earnings in the fourth quarter were down 31 percent, there is no point in burying our heads in the sand.

According to the Associated Press, the company said its results were pulled down by lower sales in California and Florida which account for a staggering 20 percent of industrywide new vehicle sales. The slowdown in the housing market in those states has rippled down to a slowdown in pickup sales.

AutoNation CEO Mike Jackson said he expects U.S.sales to fall to about 15.5 million vehicles this year. That's down from 16.2 million last year - which was down 2.5 percent from 2006. Goldman Sachs has forecast sales of 15 million units.

At the same time, Jackson said the recent 1.25 percentage point cut in interest rates - the Fed cut the bellwether federal funds rate by 0.75 percentage points on Jan. 22 and and a further 0.50 percentage points on Jan. 30 - to three percent, combined with the proposed economic stimulus package bode well for sales later this year.

Sure hope so. In the meantime, these are tough times for the auto industry - and everyone else.

Posted by Peter C. T. Elsworth  at 12:25 PM to commentary | Permalink | Comments 0

Back Seat Driver: See start of Oscar movie with oil roots

If you are remotely connected to the auto industry or just a gearhead fascinated with all things automotive, I can heartily recommend the Oscar nominated movie "There Will Be Blood" - but only for its start.

The beginning traces the rise of "Oilman" Daniel Plainview, played by Daniel Day Lewis, at the very birth of the oil industry. Plainview is a wildcatter, drilling for oil near the California coast and working out schemes to pipe it to the coast and down to Los Angeles.

The wild landscapes are not only beautiful but are complimented by an extraordinary musical score by British composer Jonny Greenwood that supplies a haunting sense of agitation and impending drama.

As I said, for these scenes alone, I really recommend the movie for an almost breathless sense of what it was like to seek a fortune by digging wells and pulling oil out by the bucket.

Unfortunately, the movie gets bogged down as Plainview and his rising fortunes become intertwined with religion - another great American theme - in the form of a fanatical young fundamentalist minister. Plainview becomes ever more malevolent and the movie ends up as a weird parody of "Citizen Kane" but without Rosebud: in other words, pointless.

PS See "Juno."

Posted by Peter C. T. Elsworth  at 9:35 AM to commentary | Permalink | Comments 0

Massachusetts drivers have many options if hands-free cellphone bill becomes law

If the Massachusetts House gets its way, Bay State drivers can hang onto their steering wheels or their cellphones - but not both, according to the Boston Globe.

Last month, the lower house passed legislation that would ban drivers from text messaging while on the road and require them to use hands-free technology while making voice calls.

Drivers have plenty of hands-free options. Millions of phones have jacks for a headset; wired headsets can be had for $10 or less. Millions of other phones feature Bluetooth, a short-range radio networking technology. Bluetooth phones work with wireless headsets that sell for $25 and up.

Posted by Peter C. T. Elsworth  at 12:06 PM to Safety | Permalink | Comments 0

Notice Nagging Problems? Here Are Solutions

Clutch problems on 2007 Nissan 350Zs and moaning Acuras are among this month’s roundup of technical service bulletins, according to The New York Times.

The bulletins, known as T.S.B.’s, from alldatapro.com offer automakers’ solutions to some recurring problems with various models.

The bulletins are not recalls; they are information provided by manufacturers to dealers’ service departments and other mechanics. Unless otherwise noted, the manufacturers do not offer payment assistance for these repairs beyond the normal warranty.

Posted by Peter C. T. Elsworth  at 11:35 AM to Auto industry | Permalink | Comments 0

BMWs beat each other to death on rough Atlantic crossing

SOME customers waiting patiently for a new BMW have received unhappy news: 122 were totaled during a rough North Atlantic crossing that damaged 430 of the vehicles, according to The New York Times.

The Courage, a car carrier headed to New Jersey from a North Sea port in Germany, rolled in heavy winter seas on Jan. 2, breaking BMWs from their lashings and sending them pinballing around a cargo hold. The ship docked in Newark on Jan. 11.

“Once one car broke loose, it all started going downhill,” said Tom Plucinsky, a BMW spokesman. “They just beat each other to death.”

Posted by Peter C. T. Elsworth  at 11:33 AM to BMW | Permalink | Comments 0

Chevrolet Impala: Prestige for Everyman

One fine winter day 50 years ago, my father pulled into our driveway with a new Chevrolet, a ’58 Bel Air Impala Sport Coupe in Panama Yellow, according to The New York Times' Jerry Garrett.

At the time, the Impala was not yet a separate model in Chevy’s line, just a nameplate that designated its status as the top trim level for the popular Bel Air coupes and convertibles.

But Dad did not buy this car to signal his upward mobility or to be part of some Chevrolet plan to nudge buyers upmarket. No, he was smitten by the car’s handsome details — and the 283-cubic-inch Ram-Jet fuel-injected V-8 under the hood.

Posted by Peter C. T. Elsworth  at 11:25 AM to Collecting | Permalink | Comments 0

Chevy Traverse pegged a top seller

Chevrolet will introduce a model at the Chicago Auto Show today that promises to become the best-selling member of General Motors Corp.'s acclaimed family of crossovers, according to the Detroit Free Press.

The Chevrolet Traverse seats seven or eight people and shares its major mechanical systems with the Buick Enclave, GMC Acadia and Saturn Outlook. While those three models come from a plant in Lansing, GM will use its entire Spring Hill, Tenn., assembly plant to build the Traverse.

Posted by Peter C. T. Elsworth  at 11:24 AM to GM | Permalink | Comments 0

Chicago show: Dodge debuts limited-edition Challenger

The Chicago auto show has a reputation as a truck show, and it won't give much ground on that this year. General Motors, especially, is rolling out an intriguing array of trucks not seen at the Detroit show last month — or anywhere else, according to USA Today.
Other automakers have a variety of models top show, including sleek coupes and updated sedans.

Check them on USA Today's site - but tell me this is not a beautiful beast:

2008 Dodge Challenger SRT8: Not just any ol' Hemi, but a chuffing big 6.1-liter Hemi makes the midsize Challenger retro-muscle car into an SRT8 — Dodge's designation for the highest-performance models. Expect it in April, boasting 425 horsepower, 420 lbs.-ft. of torque, mated to a five-speed automatic and shamelessly asking for premium fuel, as muscle cars did when gasoline was 40 cents a gallon. Should be good for 13 mpg in town, 18 on the highway, Dodge says.

Posted by Peter C. T. Elsworth  at 10:21 AM to Shows | Permalink | Comments 0

Pros and cons of a Honda Civic vs a Lamborghini Gallardo

TO finish first, race-team crew chiefs remind their impatient young drivers, you must first finish. This is another way of saying that a tortoise could have better odds against a hare than a bettor might otherwise presume, according to The New York Times' Jerry Garrett.

Recently, I pitted the most fuel-efficient new compact car sold in the United States against one of the thirstiest gas guzzlers on American roads. I wanted to see just how much difference there really was — not in the mileage, which anyone can learn by simply reading the window sticker — but in dollars and cents under typical driving conditions.

My decidedly unscientific test consisted of taking a Honda Civic Hybrid on a 300-mile trek, followed by a drive over the same route in a Lamborghini Gallardo Superleggera, an Italian exotic with three fewer seats but nearly five times the horsepower.

Posted by Peter C. T. Elsworth  at 9:42 AM to Alternative fuels , Environment , Fuel economy | Permalink | Comments 0

Gasoline price top concern for consumers: survey

NEW YORK - Despite a flailing U.S. economy and a national housing crisis, gasoline prices are the leading factor in changing American consumer spending, according to a survey by the National Association of Convenience Stores, according to Reuters.

Forty-five percent of U.S. consumers said soaring gasoline prices have effected their spending more than rising energy and food costs, the flagging economy or the national mortgage and lending crisis, the survey found.

The survey, released on Monday, was of 1,215 Americans on behalf of the National Association of Convenience Stores (NACS).

On average the tipping point for the average consumer to cut back on gasoline use is $3.71 a gallon, according to the survey.

Posted by Peter C. T. Elsworth  at 9:34 AM to Gas prices | Permalink | Comments 0

Toyota Profit Rises 7.5 Percent on Year

TOKYO -- Toyota's profit for the October-December quarter rose 7.5 percent from the previous year as booming sales in China, Africa and South America offset declining U.S. sales and a stronger yen, according to the Associated Press.

The Japanese automaker - in a neck-and-neck race against General Motors Corp. for the top spot in global vehicle sales - sold 2.281 million vehicles in the fiscal third quarter, up 5.8 percent from the same period a year ago, it said Tuesday.

Posted by Peter C. T. Elsworth  at 9:23 AM to Toyota | Permalink | Comments 0

Oil Drops Below $89 on Recession Fears

VIENNA, Austria -- Oil prices slumped Tuesday, dragged down by persistent concerns about the U.S. economy and global stock market declines, according to the Associated Press.

Energy investors often view stocks as a proxy for economic growth, and in some recent sessions, movements in the oil market have closely followed that of global equities.

Light, sweet crude for March delivery on the New York Mercantile Exchange lost $1.41 to $88.61 a barrel in electronic trading by aftenoon in Europe.

Posted by Peter C. T. Elsworth  at 9:20 AM to Crude oil market | Permalink | Comments 0

Chrysler Temporarily Closing 4 Plants

DETROIT -- Chrysler LLC plans temporarily to close four assembly plants and to shut down one shift at another due to the bankruptcy filing of one of its plastic parts suppliers, the automaker said Monday, according to the Associated Press.

About 10,500 Chrysler employees will be affected by the plant closures and shift shutdown, spokesman Kevin Frazier said.

Chrysler said the plants are in Sterling Heights; Newark, Del.; Toledo, Ohio, and the Belvidere plant in Rockford, Ill.

Posted by Peter C. T. Elsworth  at 4:18 PM to Chrysler | Permalink | Comments 0

The Morgan Plus 8 is a classic

In the contemporary landscape of architecture, someone like Richard Sammons doesn’t get lionized by the fledgling and impressionable (and constantly blogging) designerati. That might be because his firm, Fairfax & Sammons, which he owns with his wife, Anne Fairfax, specializes in traditional architecture.

So it doesn’t require a giant leap of the imagination to see how Mr. Sammons could be taken by the classic allure of a Morgan Plus 8, according to The New York Times.

Although he bought his car new in 2003, the elegant little roadster looks like something one would have found bumbling across the British lowlands 60 years ago, perhaps with a picnic basket in the trunk.

Posted by Peter C. T. Elsworth  at 12:27 PM to Collecting | Permalink | Comments 0

Chicago auto show: Trucks, trucks and more trucks

The Chicago auto show has a reputation as a truck show, and it won't give much ground on that this year. General Motors, especially, is rolling out an intriguing array of trucks not seen at the Detroit show last month — or anywhere else, according to USA Today.

Other automakers have a variety of models top show, including sleek coupes and updated sedans. Dodge is unveiling the production version of the Challenger at the show.

Posted by Peter C. T. Elsworth  at 12:16 PM to GM , Shows | Permalink | Comments 0

Automakers Take Shine to Dull Finishes

DETROIT -- You can get a matte finish on your photos or your cell phone, so why not on your car? Dull was the new shiny at last month's North American Auto Show in Detroit, where at least eight cars from General Motors Corp., Volkswagen AG's Lamborghini and Audi divisions, and others sported a gleam-free matte finish, according to the Associated Press.

Matte finish has been appearing on show cars for several years, usually as an accent color to highlight a specific feature such as fender flares. But the all-over matte finish, a trend that began with customizers, is going mainstream. Karen Surcina, color technology and marketing manager of Dupont Automotive, said buyers should expect to see matte finishes on specialty or limited-run vehicles in the next two or three years.

Posted by Peter C. T. Elsworth  at 12:09 PM to Design | Permalink | Comments 0

GM Unveils Hybrid Pickups

DETROIT -- General Motors Corp. will introduce a new hybrid full-size pickup and a concept hybrid truck this week at the Chicago Auto Show, betting that pickup drivers have been itching to jump on the hybrid bandwagon, according to the Associated Press.

GM says the 2009 GMC Sierra hybrid gets a 25 percent improvement in fuel economy without compromising performance, while its GMC Denali XT concept - a low-slung, muscular utility vehicle - gets 50 percent better fuel economy than a comparable small pickup.

The Sierra is the next large GM vehicle to get the company's new two-mode hybrid system, which has also been introduced on the Chevrolet Tahoe and GMC Yukon sport utility vehicles and the Chevrolet Silverado pickup. The SUVs are expected to go on sale early this year, while the Silverado and Sierra are scheduled to hit the market at the end of 2008.

Posted by Peter C. T. Elsworth  at 11:51 AM to Alternative fuels , GM | Permalink | Comments 0

Bob Tasca III earns Nitro Funny Car license

PHOENIX, Ariz. – Bob Tasca III and the Tasca Racing team completed the final step needed for entrance into the NHRA Nitro Funny Car class with a 4.96 second, 317 mph run during testing at Firebird International Raceway on Jan. 31, according to a news statement.

The run qualified Tasca’s NHRA license to be upgraded from Top Alcohol to Nitro Funny Car status.

“It has been a long test session,” said Tasca, driver of the Motorcraft/Quick Lane Tire & Auto Center Shelby Mustang. “A new car, new team and a tough track to deal with, but we did it. It was a big difference in acceleration compared to my Top Alcohol car. To run over 317 mph in under five seconds – it was incredible. We made great progress on our tune-up and the guys got up to speed on servicing the car. Pomona, here we come.”

Tasca will start his run for Rookie-of-the-Year honors in the Nitro Funny Car class next week with the NHRA season-opening Winternationals in Pomona, Calif.

Posted by Peter C. T. Elsworth  at 3:24 PM to Racing | Permalink | Comments 0

Ford '07 retail share drops: Toyota, Honda record gains; GM stable; Chrysler down

Automakers report their U.S. sales for January today amid a continuing economic slowdown. But new information about last year's showroom sales already reveals who has momentum in the struggling market, according to the Detroit Free Press.

Ford was the biggest loser in U.S. retail sales last year, dropping nearly a full percentage point of retail market share, according to the latest retail sales estimates provided exclusively to the Free Press by the Power Information Network.

In all, Ford's share dropped from 15.1% in 2006 to 14.2% last year, a decline that represents about half the production for an assembly factory.

Meanwhile, Toyota and Honda picked up most of Ford's decline in the U.S. market. And General Motors has stabilized its retail share, with about 22% of the U.S. market.

Posted by Peter C. T. Elsworth  at 10:18 AM to Chrysler , Ford , GM , Honda , Toyota | Permalink | Comments 0

UAW Local fights Chrysler

UAW Local 412 leaders claim Chrysler LLC broke their new labor agreement when it laid off 119 workers Thursday. The union leaders vowed to fight the move, making it the first union local to go public with a labor disagreement since new contracts were signed last fall with the Detroit automakers, according to the Detroit Free Press.

More than 100 UAW members rallied at the local's Warren headquarters over the lunch hour Thursday, just hours after being told by the company that those salaried designers would be laid off indefinitely.

Posted by Peter C. T. Elsworth  at 10:16 AM to Chrysler , Unions | Permalink | Comments 0

OPEC: No Boost in Oil Output

VIENNA, Austria -- Shrugging off calls to pump more oil, OPEC ministers said Friday that output levels will not be increased out of fear that a softening global economy will translate into weakened demand, according to the Associated Press.

Any decision by the Organization of Petroleum Exporting Countries to produce more would have acted as a shot in the arm for countries struggling with weak growth, the fallout from the U.S. subprime crisis and negative economic factors.

"In view of the current situation, coupled with the projected economic slowdown, the conference decided that current production is sufficient to meet ... demand for the first quarter of the year," an OPEC statement read.

Posted by Peter C. T. Elsworth  at 10:13 AM to Crude oil market | Permalink | Comments 0

Oil Prices Extend Decline

Oil prices were slightly lower Friday but showed little reaction to news that OPEC would maintain current output levels, as worries of a possible U.S. recession weighed on crude futures, according to the Associated Press.

Claims for unemployment benefits in the United States jumped by 69,000 last week, the Labor Department said, more than three times what economists expected.

Light, sweet crude for March delivery lost 39 cents to $91.36 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

Posted by Peter C. T. Elsworth  at 10:08 AM to Crude oil market | Permalink | Comments 0