General Motors has announced that it will lend dealers cash to cover their government clunker rebates for 30 days while the NHTSA figures out how to wind down the program. “We want to do all we can to provide customers with timely new vehicle deliveries and dealers the liquidity they need to run their businesses,” says Mark LaNeve in a company press release. “This will continue the sales momentum of our new fuel-efficient vehicles such as the Chevrolet Cobalt, Equinox and Buick Enclave.” Or, it could mean dealers will end up owing GM instead of the government owing them.
Hi, do things fall off credit report after so many years?
Due to your knowledge I was hoping you may be able to shed some light on the subject. Would you consider giving me a couple pointers?
Sajeev replies:
This website prides itself on keeping the manufacturers honest on their business practices, so why not turn the spotlight on our personal finances? That said, my credit is quite good: I “credit” (get it?) my parents for warning me at an early age.
Would you believe that two-thirds of all car dealers are still waiting for their first clunker check? Could you imagine that only three percent of all clunker deals have been been blessed by NHTSA? Automotive News [sub] has the survey for you! The only problem is that AN admits the poll was unscientific. Plus, it was an onlinepoll. Still, the headline looks good beneath a headline in which NADA admonishes that dealers are “at risk” in making further clunker deals. And NADA’s internal surveys show that all the clunker money is already gone, reinforcing the apocalyptic tone of the AN survey.
For $1,595, Ford will sell you a Blind Spot Information System (BLIS) which uses radar to detect vehicles approaching your “blind spot.” But, as Christopher Jensen points out at the New York Times, blind spots don’t have to exist in the first place. Summarizing an SAE paper on blind spot safety, he explains how to get rid of the pesky things.
“The driver leans his head against the driver’s window and sets the mirror so that the side of the vehicle is just visible. Then, the driver leans to the middle of the vehicle (between the front seats) and does the same thing with the passenger-side mirror.”
Ford will be offering four-cylinder Ecoboost engines in a vast array of its forthcoming models, reports Motor Trend. The 2.0 EcoBoost will likely see base-model duty in vehicles ranging from the Edge and Mustang to the unibody 2011 Explorer, while replacing the V6 option in the Fusion and Escape. And though the EcoBoost two-liter looks good on paper (275 hp, 280 lb·ft), its projected ubiquity raises an interesting question: how important are engines in product differentiation? If GM’s blurring of the platform-sharing/brand-engineering lines hurts its brands, does the same hold true for Ford’s engine-sharing? Though modern engine control units theoretically allow Ford to customize engine characteristics (torque curve, power, efficiency) for each application, we’re not hearing anything about any such plans in the EcoBoost PR material. Could Ford’s engine uniformity hurt its appeal?
We are proud to be the inaugural City to unveil the first of seven Floralscapes along one of our busiest highways. The commute for Angelenos will now be brightened by floral murals that embody the City’s progressive approach to solving environmental issues by merging beautification, sustainable design and reducing our carbon footprint. From the construction workers to the business team, this public-private partnership with Toyota and Greenroad Media has spurred local job creation across the board.
Los Angeles Mayor Antonio R. Villaraigosa in a press release (via PRNewswire) about Toyota’s L.A. “Harmony Floralscape” Prius promotion.
The Word Health Organization has come out with its 2009 Global Status Report On Road Safety (PDF), which reveals that traffic-related injury is the leading cause of death for 15-29 year olds the world over. Road traffic is the second leading cause of death for 5-14 year olds, and the third leading cause for 30-44 year olds. After age 45, it drops to the 8th most common cause of death thanks to an increase in driving ability and other death risks. The study also finds that though high-income nations have far more vehicle registrations per capita than low- and middle-income nations their road traffic death rate is disproportionately low. Even more interesting is the lack of relationship between higher income levels and a higher proportion of non-driver (or so-called “vulnerable road users”) deaths. One might assume that more cars and more safety equipment keeps high-income-nation drivers safer than pedestrians, but it just isn’t so.
Allpar reports that Chrysler is dropping its lifetime warranty offer in favor of a five year, 100k-mile powertrain warranty (in addition to the standard three year, 36k mile bumper-to-bumper warranty). Unlike the lifetime offer, the new warranty will be transferable. Will it be enough to rescue ChryCo’s plummeting resale values? It couldn’t hurt, although the lifetime offer also helped Chrysler sell a deal (and who buys a Chrysler for the car?). Another change is that SRT vehicles now qualify for the new warranty. All of which is a bit strange considering that under the lifetime deal, Chrysler actually reduced its warranty cost projections.
Jalopnik reports that, rather than crying “perception gap” to negative tweets about Buick’s quick-n-dirty Saturn Vue rebadge, GM has killed plans for the plugin crossover. GM spokesfolk say “the overwhelmingly negative response to this vehicle coming out of this event” caused GM to pull the plug. Which is funny because a good hard look at their bloated 2012 CUV lineup would have told them that killing the “Vuick” was a good idea, too. So now GM has a plug-in CUV developed with nowhere to put it. And the Twitterati have another reason to believe they are somehow relevant. In other words, all’s right with the world. Hit the jump for GM’s official word via spokesman Tom Stephens.
With $1.7 billion already claimed by consumers, the NHTSA is preparing a wind-down of the CARS rebate program, reports Automotive News [sub]. Based on dealer sales and “other surveys, the NHTSA “can make a pretty good judgment call” about when to end the program, reckons Transportation Secretary Ray LaHood. “I know dealers are frustrated, but they’re going to get paid.” LaHood said the program’s high rejection rate is due to the huge demand and dealers’ “failure to fill out claims correctly.” Dealers, meanwhile, are far more likely to blame the rampant delays and rejections on the NHTSA’s “failure to have their shit together.” Either way, it sounds like just about everyone is ready to be done with Cash for Clunkers.
No, we’re not talking about becoming the official web site for Michael Vick. This one involves two stronger dealers in a financial wrestling match. Yesterday afternoon there was a rarely used camper conversion van at the Carmax sale. The model year was 1993. It was a Chevy Van (of 1970s singing fame) with a mini fridge, plastic toilet, furnace and all the hookups you would need to go camping. A very nice package with only 43,000 original miles. The prior owner had been in the military and kept it all in tip-top shape. But then THEY arrived . . .
TTAC commenter bumpy ii has compiled another spreadsheet (XLS format) of monthly sales goodness for your data diving pleasure. This time it’s ten years worth of monthly Hyundai sales by nameplate. See how the Elantra/Sonata combo has carved out a giant chunk of the midsized sedan market. Check out the rise and fall of the Tiburon. Puzzle at why Hyundai ever wasted its effort on the Azera. It’s data-tastic!
Christian von Koenigsegg speaks to Automotorsport Sweden about the future of his new acquisition. Managing Director Jan-Åke Jonsson’s interview can be found here.
Does anyone know that New GM is in the process of retiring about 25% or more of their executives with a fairly ‘normal’ retirement package? This means these execs who were at the healm leading into bankruptcy will be be getting almost a full retirement program including 90% of their earned SERP/ERP and half year’s salary in life insurance. This compares to all current retirees who lost 70% of their SERP and all of their life insurance except for $10k when GM came out of bankruptcy. The arrogance of the ‘new company’ that hasn’t made any money and is using public funds to continue in business is what we would have expected from the old company. Since this company is now owned by the government, can’t someone get at look at these numbers and see what the American taxpayer will be paying these people for the rest of their lives? I am a retiree and am grateful that we kept our retirement program at all. I am just shocked that the next retirees are not going to get similar cuts to their package.
Recent Comments