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Hyundai Elantra Under Federal Scrutiny

May 15th, 2012

On Monday the U.S. National Highway Traffic Safety Administration post on its web site that they are now investigating a report that the side curtain air bag of a Hyundai Elantra cut a car owners ear in half when it deployed.

This is not good and definitely not the way a safety device is supposed to work. Side curtain air bags are a relatively new automobile safety device, but are appearing more and more often in new vehicles. Like the front air bag system, the side curtain air bag is built to deploy at the first hint of a side impact crash. This air bag helps further cushion passengers from the force of an impact and is supposed to offer added protection.

Unfortunately, not every human being is built the same way, so although the automobile manufacturers design these system for average humans, anyone outside that “average” zone can actually be injured by the very safety device intended to protect them from injury. That is why passenger side front cushion air bags should be turned off a small child is placed in the front seat.

That is not to say that is the problem with the Hyundai Elantra. At this point it remains unclear exactly what happened or how it happened. Hence the investigation by the U.S. National Highway Traffic Safety Administration. They will attempt to recreate the conditions of the crash to determine the cause of the passenger’s injury and try to figure out exactly how it was caused; whether or not the side cushion air bag caused the injury.

No recall of the Hyundai Elantra has been issued at this point and it is possible that no recall of the vehicles will be required. It all depends on what exactly the results of the NHTSA test determine. Until then Hyundai Elantra owners should be made aware of the possibility of a problem and perhaps wear ear muffs.

Tags: Hyundai Elantra
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Best Cars For College Grads

May 10th, 2012

So you or someone you love has just graduated college and are ready to enter the real world. The first you probably want to do is get yourself a new car. After four (or more) years of frozen pizzas and Ramen noodles you deserve it. But choosing the right car is a tricky business, unless you received your degree in consumerism. (ok, we’re not sure ‘consumerism’ is even a real thing, but you get the point.)

Anyway, fortunately for you a new report comes out every year with a list of the top 10 cars for college grads and 2012 is no exception. The latest one comes from Total Car Score and features that offer the highest standards in “Safety, fuel efficiency, comfort and performance are all criteria used in finding the best car for the money, in what is usually the graduate’s first new car purchase.”

College students usually need a new car after knocking around in their old clunker. A new car for graduation is also a way of rewarding a new graduate, or for them to reward themselves, for a job well done (or at least making it to graduation.) But when you consider that a new car purchase is the second most expensive a person usually makes in their lives, right after buying a home, you need to make certain you find a car that is worth the money you will pay for it. There are safety standards to consider, accessories; special features and mileage, performance and overall manufacture of the vehicle all make a big difference when it comes to what vehicle makes a good buy for a recent grad.

Here is the complete list from Total Car Score:

        Make       Model        TCS   Manufacturer's Suggested Price
        Volkswagen Golf         83.86 $17,995 - $24,695
        Volkswagen GTI          82.23 $23,695 - $30,535
        Ford       Focus        82.01 $16,500 - $22,700
        Mazda      3            81.10 $15,200 - $23,400
        Chevy      Cruze        79.99 $16,720 - $23,110
        Mazda      Mazdaspeed 3 79.13 $24,000 - $24,000
        Hyundai    Elantra      78.97 $15,995 - $20,445
        Scion      xB           78.23 $16,300 - $18,110
        Volkswagen Jetta        77.5  $16,495 - $25,545
        Kia        Forte        77.28 $15,200 - $19,600

Tags: new cars
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Get A New Car Loan Now

May 2nd, 2012

If you have been patiently waiting for the right time to buy a new car, now is that time.

After a few years of harder-to-get-than-normal new automobile financing, banks are finally beginning to loosen up their terms and start lending to average buyers again. Following the start of the Great Recession in 2008, banks immediately went into self-preservation mode and began limiting the number of new vehicle loans they were providing. Prior to that just about anyone could qualify for a new car loan regardless of their ability to repay. Suddenly, as banks faced disastrous economic times, it became more difficult than ever for someone to get a new car loan. In fact, for a few years, it seemed only people who didn’t need a car loan would qualify for a new car loan.

But, times change and what goes down tends to go back up (at least as far as the economy is concerned.) These days if you have less than stellar credit you can still get financing for a new car loan. It is going to require that you have the ability to repay the loan, but it isn’t going to rely solely on your credit score any longer. And you should have the ability to repay any loan you get anyway, so that shouldn’t have ever been a consideration.

This spur in the financing market is going to add steam to the growing automobile manufacturing market, which has already seen a strong resurgence in the past 12 months.

Some questions the federal governments decision to offers billions of dollars in bailout money to the automobile industry, but just a few scant years later, as the economy rebounds and the industry begins posting stronger than average growth, it seems that might have a good decision after all.

For buyers it means they have any even better chance of getting that new car they have been dreaming than they have in a long time.

Tags: auto financing
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Who Wants A Self-Driving Car? Lots Of People!

April 26th, 2012

A new study conducted by J.D. Power & Associates shows that 20 percent of all drivers are interested in buying one of the proposed self-driving cars being touted by Google, Cal-Tech and an assortment of other tech companies.

Between public interest and the natural forward momentum of technology in general it looks like self-driving cars are coming sooner or later.

Right now Cadillac is experimenting with some autonomous driving features, meaning that self-driving cars are coming one way or another. Either fully self-driving or just partially.

The benefits of self-driving cars are obvious. These cars would have a host of safety features including lasers, radar, motion sensors and GPS navigation devices which would let it know what was going on around it at all times; where it is and where it is going; and help it avoid heavily congested areas. Because these cars are computer controlled they won’t get tired, won’t suffer from distractions and won’t get drunk before hitting the road. In the meantime, self-driving cars allows their passengers to do just about anything as they cruise along. It also frees up seniors, children and others who might not ordinarily be able to drive themselves.

Detractors say that autonomous cars take all the fun out of driving and pose a possible risk from hackers, computer malfunction and other technological problems. It might not be a big deal when your laptop crashes, but if your self-driving car crashes, people can get hurt.

There is no time table for when self-driving cars will become available to the private sector but some commercial industries are already developing self-driving delivery systems and at least two states, California and Nevada have already written laws which allow self-driving cars on their roadways.

As more and more manufacturers begin to adopt autonomous driving features into their vehicles, the age of the self-driving car will get closer and closer. In the meantime, everyone is responsible for getting themselves from point A to point B, safely.

Tags: self-driving cars
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Lamborghini Aventador Burns During Test Drive

April 19th, 2012

If you have to watch a Lamborghini Aventador burn to a charred black husk, it is better to do so outside the vehicle, from a safe distance.

This Lamborghini Aventador was on a test drive from the dealership when a fire started mysteriously in the left rear wheel well.

This is the first reported fire of a Lamborghini Aventador, and hopefully the last we’ll see in some time. The driver, a venture capitalist on a test drive, escaped without injury and later actually posed for a picture beside the charred remains of his potential new car.

It is still unclear what caused the fire, but police are investigating. Lamborghini is also conducting its own investigation to determine if the fire was related to the way it was being driven or something unforeseen.

What is also unclear is whether or not the venture capitalist who was driving reconsidered his decision to buy a Lamborghini.

Tags: Lamborghini Aventador
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Auto Industry Floods Federal Coffers

April 13th, 2012

How important is the American automobile industry to the federal government? About $135 billion worth of important.

A few years ago when two of the Big 3 automobile manufacturers, Chrysler and General Motors were teetering on the brink of bankruptcy (Ford had been and remains fully solvent) the federal government stepped in with billions of dollars in federal subsidies. Some questioned the logic of such a move saying that if these companies could not figure out how to run their businesses effectively they deserved to go under. The federal bailout, they said, served no purpose other than to help Big Business.

Here we are a few short years later and besides the hundreds of thousands of jobs which were saved by the federal bailout, we’re also seeing some big numbers in terms of tax dollars paid by these same companies. A study by the Ann Arbor-based Center for Automotive Research, commissioned by the Alliance of Automobile Manufacturers, showed that the automobile industry accounts for a full $135 billion federal and state tax revenue. That’s a full 13 percent of all state tax revenue generated.

When you take into account automobile sales and service; ancillary industries which provide parts, labor, fuel and other things that go along with owning and operating a car, you see that the automobile industry pumps more than $700 billion into the U.S. economy every year. With that in mind it seems clear that saving the American automobile industry was not just about saving ‘big business’ but also a self-serving move by the federal government. Not only would unemployment have sky-rocketed, and the federal government lost out on more than one hundred billion dollars in tax revenue, but the U.S. economy as a whole would have taken a nearly $1 trillion hit.

Put into that context, it makes the bailout plan seem like a much more logical move than simply “saving Big Business.”

Tags: tax revenues
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Chinese Automobile Market Turning A Corner

April 6th, 2012

Analysts are saying that fears the Chinese automobile market was slowing down, or perhaps even stagnating, have been misplaced. In fact, they say, manufacturing is up and buying is back on track.

These days, as China goes, so goes the global economy. Part of the recovery experienced by the Big 3 American automobile manufacturers was due in no small part to the strength of the Chinese market. Each month China needs to build a city the size of Philadelphia in order to accommodate the number of people moving from isolated rural areas to their thriving metro districts. With a population of more than one billion people, China is the market everyone wants a piece of. Their burgeoning middle class is growing faster than just about anyone predicted. They have consistently posted double digit growth, year after year, even during the Great Recession.

Last quarter automobile sales in China began to show signs of slowing. This caused analysts to decry the immediate backward motion of the strengthening automobile manufacturing industry. Although there was only a slight decline in the Chinese auto market, it was enough. Before the dust settled, before the final results were in, some analysts were proclaiming a second Global Great Recession.

What a difference six months can make.

Just this week a study conducted by the China Federation of Logistics and Purchasing and the National Bureau of Statistics’ Service Survey Center said that March orders in Chinese automobile manufacturing had begun to rebound, buoyed in part by a 60 percent increase in the Purchasing Managers Index. This is a sure sign that the Chinese automobile market is rebounding. This strength in the national automobile sector will translate into increased sales for imports as well, assuming of course that outside manufacturers can meet with the expectations of the growing Chinese middle class. They can do this by designing smaller, safer cars with a much higher fuel economy rating than what is expected in the West.

If they can do this they will surely reap the benefits of Chinese buying populace eager for that new car smell.

Tags: China
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Ford Bets Billion On Mexico Manufacturing

March 31st, 2012

Looking to bolster its fleet of popular, mid-sized, economical Fusion brand Ford is investing 1.3 billion in a new automobile assembly plant in Hermosillo, Sonora.

The new Fusion is the next generation, mid-sized automobile Ford is banking on. They have had great success with their current model of Fusion and there is great hope their new generation will prove even more popular.

Unlike General Motors and Chrysler, Ford has focused quite effectively on mid-sized, fuel efficient vehicles, loaded with lots of high-tech features like GPS, Sirius satellite radio system and a wealth of other features designed to make their new models as comfortable as possible.

With gas prices now above $4 a gallon in most areas across the United States, smaller cars, especially mid-sized models are continuing to gain market share while larger models, SUV’s and trucks are seeing their market share decrease.

The new Ford Hermosillo assembly plant will also build the Lincoln MKZ, another of their popular mid-sized automobiles which offers comfort and fuel economy in exchange for size. Both these cars will be the first to be built on Ford’s new global midsize platform. They will also be the first offered with a choice of three engines: gasoline, hybrid, and plug-in hybrid, further proving Ford seems focused on dominating the market when it comes to buyers interested in fuel economy over grandiosity.

This latest $1.3 billion investment in Mexico by Ford comes after an earlier $3 billion in the country. This emphasis on automobile investment in Mexico is pushing the country closer to fourth place when it comes to automobile manufacturing. The Mexican Automobile Industry Association said Mexico posted a record for auto production in 2011, producing 2.56 million cars and light trucks. This set an auto export record at 2.14 million, which is likely to be shattered this year.

Ford has already produced more than 1 million automobiles in Mexico, and the new plant, which will ultimately employ 1,000 people, is likely to double that number. That means more jobs for Mexican workers, and more popular cars for Ford to sell.

Tags: mid-sized automobiles
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Auto Manufacturers Oppose Recall Fine Increase

March 22nd, 2012

As part of the 100 billion highway safety bill just approved by the U.S. Senate automobile manufacturers would face fines of up to $250 million for not properly recalling vehicles they find faulty and/or a danger to consumers.

Under current law, the same infractions could cost an automobile manufacturer just $17 million.

Needless to say, the Big 3 U.S. automakers are teaming up with automobile manufacturers in Japan and Europe to protest against the new measure saying it would put undue stress on their business model and possibly put them out of business.

This seems a little far fetched, especially when you consider they don’t have to pay the fines if they simply do their best to protect the consumer rather than try to sweep a known problem under the rug and hope it doesn’t kill anyone.

Unfortunately, the automobile industry has a long history of doing just that sort of thing: hoping that, in the long run, a fault vehicle won’t cost them as money in liability as the cost of a full recall would. That is why the federal government felt it necessary to increase their risks through legislation, rather than cross its fingers and hope the auto industry would suddenly develop a conscience. Without the threat of serious fines it is likely that the auto industry will continue to turn a blind eye to the hazards they impose on drivers when a known fault is left unfixed. By levying a serious fine, more than ten times what the current fine is, the federal government is trying to send a message to the auto industry that business as usual is just not acceptable any longer.

The new legislation would also require manufacturers to post labels in reminding backseat riders to fasten their seat belt. Needless to say, manufacturers want that stipulation removed as well.

While lobbyists for the auto industry work to get provisions made for their clients, proponents of consumer protection will be working hard to convince legislators that the changes need to say.

Hopefully, the consumer will win in the long run.

Tags: auto recall
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Senate Passes Massive Highway Safety Bill

March 16th, 2012

In the midst of an election season now is the perfect time for legislators in both parties to put aside their differences and pass legislation which benefits all Americans in the hopes that memory will sustain them in the forthcoming polls.

This might be what prompted the Senate to approve a massive $109 billion transportation bill which will lead to improvements in vehicle and traffic safety and help fund highway infrastructure projects around the country. The Senate bill still needs to receive House approval before reaching the president’s desk, but Republican opposition to the bill has been fading in recent weeks.

If no new transportation bill is approved by the end of March, the federal government will need to approve emergency extensions to continue receiving diesel and gasoline tax revenue which adds up to about $110 million per day. This loss of revenue, even for a short time, would likely lead to a partial federal government shut down and many workers sent home without pay.

If the bill receive final approval from the House as is expected it will reduce about 2/3 of all federal transportation programs to eliminate duplication. Bicycle, pedestrian, safe routes to schools and rails-to-trails programs, which had been targeted for elimination by Republicans, were eventually preserved by Democrats, but will now have to compete with other programs for money as part of a legislative compromise.

The new bill will also extend a $240 a month tax break for transit commuters who incur expenses as part of their travel for work. That measure was expected to expire at the end of 2011, but the new bill continues the measure for the next two years without interruption.

The new bill is also being lauded for increasing vehicle and driving safety by increasing significantly the amount of federal oversight on long-distance and tour bus industries. It will require seat belts on buses, stronger roofs, anti-ejection windows and even roll-over crash avoidance systems installed in all buses. When you consider that the American tour bus industry moves about the same number of people as who use the airlines, close to 3/4 of a billion people every year, the impact will be far reaching.

Image: Adam Hickmott / FreeDigitalPhotos.net

Tags: auto safety
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