Category: Studies & Reports

By on October 15, 2015

 

Nearly 30 percent of buyers who purchase a Honda CR-V, Toyota RAV4 or Prius car will keep that car for more than 10 years, according to data from iSeeCars.com.

Data from 400,000 car purchases was analyzed for the poll, according to the study group. The industry average for owners keeping their cars 10 years or longer was 13.5 percent.

Of those top 15 vehicles whose buyers keep them longer than a decade, nine of them were Toyotas; 5 were made by Honda. The Honda CR-V was tops at 28.6 percent of buyers who kept that car for 10 years or more.

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By on October 14, 2015

Matthias_Müller_2015-03-12_002

German magazine Der Spiegel reported Wednesday that at least 30 Volkswagen insiders and managers had knowledge of the illegal “defeat device” and there may be more.

The claim would somewhat refute to what Volkswagen of America chief Michael Horn testified in front of a congressional subcommittee last week when he told representatives that “a couple of software engineers” at Volkswagen in Germany were responsible for the the scandal that has cost the company billions of dollars.

Volkswagen hired U.S. firm Jones Day to conduct an external investigation while the company inquires internally how engineers installed software on 11 million diesel cars that would cheat emissions tests.

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By on October 13, 2015

2013-volvo-v40. Photo courtesy Volvo

Automotive News Europe reported that Volvo will offer a new compact crossover, based on a new architecture, in 2018 that will likely be called the XC40.

The crossover will be built in Ghent, Belgium and possibly in China, using the same platform being developed for compact cars in Europe.

The crossover will get Volvo power plants that include a hybrid variant. It would also likely get some sort of semi-autonomous driving feature as the Swedish automaker further develops its technology.

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By on October 12, 2015

 

A study commissioned by Bloomberg, conducted by Stout Risius Ross, revealed that Volkswagen’s rate of injury or fatal crashes reported by the automaker was significantly lower than 11 other automakers and nine times less than the industry average.

“The data demonstrates that even on a fleet-adjusted basis, the number of reported incidents by Volkswagen is significantly below what one would expect based on those reported by other automakers,” Neil Steinkamp, a Stout Risius managing director, told Bloomberg. “They are also significantly below the reporting of automakers that have already been cited for non-compliance.”

The report calls into question whether Volkswagen has been accurately reporting crashes, as required by law. Volkswagen didn’t comment on the report. Read More >

By on October 8, 2015

 

Bloomberg reported (via Automotive News) Thursday that a proposed contract brokered Wednesday night between the United Auto Workers and Fiat Chrysler Automobiles would raise Tier 2 workers’ pay to $29 per hour, up from $25 per hour, after an eight-year, “grow-in” period.

The separation between the two classifications of union employees — veteran Tier 1 and more recently hired Tier 2 — was a major point of contention for the workers, who voted down the proposed contract last week by a margin of nearly 2-to-1.

Roughly 40 percent of FCA’s union employees are Tier 2 workers, a much higher proportion than General Motors and Ford. On average, those employees are paid $9 to $12 less per hour less than workers hired before the recession. The proposed contract, according to the report, would not eliminate the tiered system, but instead bring closer the two pay scales. The contract also wouldn’t cap the number of Tier 2 workers hired by the automaker.

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By on October 5, 2015

 

image from volkswagen

Interbrand’s annual survey of Top 100 Brands lists Toyota as the most valuable car company (No. 6) with BMW and Mercedes-Benz the next most-valuable brands at Nos. 11 and 12, respectively. Volkswagen’s brand declined 9 percent, according to the survey, down to No. 35.

Mini entered the list for the first time at No. 98. Nissan was among the list’s significant gainers, gaining 19 percent and moving up to No. 49 on the list.

Apple was listed No. 1, ahead of Google and Coca-Cola. Apple’s brand value was estimated by the survey at $170 million.

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By on September 28, 2015

 

United Auto Workers at Fiat Chrysler Automobiles’ Jefferson North Assembly Plant and its Kokomo Transmission Plant voted down a contract proposal over the weekend, marking the latest and perhaps the most significant defeat to the union’s proposal, the Detroit Free Press reported.

According to reports, 66 percent of the workers, who build Jeep Grand Cherokees and Dodge Durangos at the Jefferson facility, vetoed the contract.

The contract faces an uncertain future with the rest of UAW workers at FCA, and while overall passage is mathematically possible, the growing rate of rejection doesn’t look particularly promising.

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By on September 25, 2015

 

Justin Hyde at Yahoo Autos has fine, fine reporting that U.S. taxpayers paid more than $20 million in incentives for Volkswagen diesel models under the “Cash for Clunkers” program.

According to the report, 4,599 VW Jetta and Jetta Sportwagen diesel cars qualified for the maximum $4,500 incentive under the program. Those cars were equipped with a 2-liter turbocharged diesel engine that the Environmental Protection Agency said used an illegal defeat device to cheat emissions.

The Yahoo report follows a report by the L.A. Times that shows that more than $51 million was paid to Volkswagen by the U.S. for now-bogus “green” claims. Read More >

By on September 24, 2015

 

Officials from the Environmental Protection Agency said this week that they’ll change regulations to hopefully catch carmakers who cheat on emissions tests in the future.

EPA Administrator Gina McCarthy told reporters at a Wall Street Journal forum Tuesday that the agency would be “upping its game” to stop automakers like Volkswagen from creating two dramatically different emissions cycles for its cars — a cleaner “testing mode” and a dirtier real-world mode. The agency said it would also crack down on automakers who lie about real-world fuel economy.

“Writing regulations takes time,” EPA’s director of the Office of Transportation and Air Quality Chris Grundler told the Detroit News. “When you are working in the rapidly changing environment that we’re in right now, we want to make sure that we are agile enough and flexible enough to change with those times.”

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By on September 24, 2015

2015-Audi-A3-TDI-Sportback-5

Only hours after Friday’s announcement that the Environmental Protection Agency notified Volkswagen that its cars were illegally polluting, David Fiol, a personal injury attorney in San Francisco, had filed a class-action lawsuit through a Seattle law firm in federal court.

He wasn’t alone either. Reuters reported that at least 25 class-action lawsuits were filed within hours of the EPA’s announcement as lawyers line up to take the lead on what could be one of the largest lawsuits against an automaker in history. Being the lead firm could be lucrative for the lead attorneys: A $2.65 billion 2006 judgement against AOL Time Warner on behalf of shareholders netted the lead firm’s owners $70 million in fees.

And according to the report, law firms don’t have to look far for clients. Many attorneys are VW TDI owners — a clear downside for having an highly educated customer base.

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By on September 22, 2015

 

Speaking at an event in suburban Detroit, National Highway Traffic Safety Administration chief Mark Rosekind said Volkswagen’s admission that they lied about emissions in their diesel cars erodes confidence in automakers.

“They tell you one thing, you question it,” Rosekind said to reporters, according to Automotive News. “You just have to question every assumption when information is provided.”

Recent scandals including VW, hackable cars and airbag defects erode consumer confidence and that more must be done by automakers before cars go on sale, he said.

“Accountability in leadership is literally at the top of the list, and we’ve just got to be out front, acting, talking and doing everything we can to demonstrate that it should be in their genes,” Rosekind said, according to Automotive News.

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By on September 19, 2015

 

Mitsubishi is planning to end operations at its Normal, Illinois plant and notify workers at the end of September of their plans to close the facility after failing to find a buyer for the plant, Reuters (via Automotive News) reported.

It’s unclear what may happen to the 900 hourly workers who make Mitsubishi Outlanders if a buyer for the plant isn’t found by November. According to the report, last year the plant churned out nearly 70,000 crossovers.

Mitsubishi and the United Auto Workers union this month were negotiating a contract for the workers that would extend to the original closing date for the plant, which was slated for next spring.

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By on September 1, 2015

 

Chicago wants $300 million from the company it hired to photograph, ticket and follow drivers after it was revealed that executives bribed city officials for the contract, the Chicago Tribune is reporting.

Executives for Redflex paid over $2 million to city officials through a bag man for the $124 million contract from the city, which started in 2003. City officials are suing for roughly triple that amount, including penalties.

Redflex has been accused of handing out thousands of unnecessary tickets to motorists, including 13,000 in Chicago alone, according to the Tribune.  Read More >

By on August 31, 2015

 

Self-driving cars could usher in a new form of terrorism, an investment analyst writes (via SlashDot).

Alex Rubalcava, who is an investment advisor in California, says that autonomous cars would be “the greatest force multiplier to emerge in decades for criminals and terrorists.

“A future Timothy McVeigh will not need to drive a truck full of fertilizer to the place he intends to detonate it. A burner email account, a prepaid debit card purchased with cash, and an account, tied to that burner email, with an AV car service will get him a long way to being able to place explosives near crowds, without ever being there himself.”

Criminals in Denver have already used burners, pre-paid cards and fake names to rent Car2go cars for drive-by shootings.

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By on August 26, 2015

 

Sick of recalls and rising costs, Americans are buying cars now, more than ever, and apparently they don’t like it, the Associated Press is reporting.

An annual survey of 4,300 new car owners revealed that overall satisfaction with new cars is at its lowest point since 2004. Most of that is due to repeated recalls, according to the American Consumer Satisfaction Index. Overall, consumer satisfaction dipped 3.7 percent, to 79 out of 100 points.

“While it is true that all cars are now much better than they were 10 to 20 years ago, it is alarming that so many of them have quality problems,” Claes Fornell, ACSI Chairman and founder, said in a statement. “The number of recalls is at an all-time high. This should not happen with modern manufacturing technology and has negative consequences for driver safety, costs and customer satisfaction.” Read More >

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