Archive for December, 2009
Feds Pump $3.8 Billion More Into GMAC
Posted on 31. Dec, 2009 by admin.
The U.S. Treasury Department invested another $3.8 billion in the financial company GMAC, bringing its total commitment to $17.2 billion. This raises Treasury’s ownership stake to 56.3% (up from 35.4%), making taxpayers the majority stakeholder in the company.
This also brings the government’s total investment in the domestic auto industry to $85 billion of bailout money from the TARP fund.
GMAC is the primary lender to Chrysler and GM, so if the government wants to protect its investment in those two companies, the health of GMAC is more or less essential. Much of the money will be used to shore up the mortgage unit, ResCap, which has lost a good deal of money in the housing crash. GMAC lost $5.3 billion in the first nine months of this year.
With the investment, Treasury now has the right to appoint four of the nine directors to the GMAC board.
Cash Infusion Makes U.S. Majority Owner of GMAC (Detroit News)
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IRS Lowers Business Mileage Deduction
Posted on 31. Dec, 2009 by admin.
When taxpayers scramble to finish their returns this April 15, they will see a 9% cut in the business mileage deduction from 55 cents per mile to 50 cents per mile.
The Internal Revenue Service also announced that those who moved for work or counted travel as a medical expense will see a reduction from 24 cents per mile to 16.5 cents.
The reductions could have a noticeable impact on those who rack up a hefty number of miles as a business expense. This includes things like delivering pizzas, attending meetings, driving to the post office and anything else where traveling by car is a part of your job.
But before you go muttering darkly about the IRS, keep in mind that the feds bumped up the mileage deduction in 2008 because of the sharp rise in gas prices.
IRS to Reduce Mileage Deduction for 2010: Will You Owe More? (WalletPop.com)
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Borrego Dropped for ’10 but Loaded With Incentives
Posted on 31. Dec, 2009 by admin.
Kia will drop the Borrego for the 2010 model year after only a brief stint on the scene beginning in late 2008, according to The Car Connection.
Introduced just as the auto industry began its longest winter in the wilderness (which actually began in the summer with a gas price spike and continued into fall’s financial crisis), the Borrego has had a rough go.
Kia moved only 9,510 units through November, less than half of what it expected in 2009 sales. It’s unclear if the Borrego will find life again after 2010, but the good news for consumers is that the ’09 model comes with incentives practically spilling from the trunk.
This includes $3,000 cash back on all trim levels, $1,500 for trading in a competitor’s vehicle (Buick Enclave, Pontiac Aztek, the Jeep Wrangler Unlimited and other SUVs all qualify), $1,500 for owner loyalty, $400 for recent college grads and $500 for military service, just to name the most relevant.
Kia Drops 2010 Borrego From Lineup, Fate TBD (The Car Connection via Autoblog)
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Should Mechanics Have a ‘Right to Repair?’
Posted on 31. Dec, 2009 by admin.
As automotive technology advances and becomes more specialized, some independent mechanics feel as if automakers are trying to monopolize repair services at their dealerships. This has led to congressional action in the form of the Right to Repair Act.
The bill would require automakers to provide all information required to diagnose and service vehicles, making crucial tools and data available to independents instead of only dealership shops.
Independent mechanics argue that they can’t make a living when they have to spend thousands of dollars constantly to gain access to the tools and online manuals needed to make repairs. If you need a $1,000 tool to reset a tire pressure light, something must be wrong, they say.
New vehicles are often fitted with computer systems that control just about everything, and independent mechanics need software codes and complicated diagrams of electrical wires just to make simple repairs. The Automotive Aftermarket Industry Association, whose members include Jiffy Lube and AutoZone, released a study in March that said the more expensive remedies used by dealerships cost consumers $11.7 billion in additional costs annually.
Automakers counter that they spend the millions of dollars upfront in research and development and shouldn’t have to give away intellectual property so that independents can gain access to patented information and build parts for less.
The bill, introduced by Rep. Edolphus Towns (D-N.Y.) and joined by 51 co-sponsors, has been sent to the House Committee on Energy and Commerce, though it remains uncertain if the committee will pass it on to the full House.
Mechanics Worry Dealer Shops Creating Repair Monopoly on High-Tech Vehicles (Associated Press)
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Distraction.gov Aims to Keep Drivers Focused
Posted on 30. Dec, 2009 by admin.
The U.S. Department of Transportation on Monday unveiled its new website aimed at making drivers more aware of the dangers of distracted driving.
Distraction.gov collects facts and statistics about what constitutes a distraction while driving and how dangerous it can be.
The website will be paired with an advertising campaign to raise awareness of the problem, beginning with an ad from the National Highway Traffic Safety Administration named “Calling Plan.” The advertisement shows drivers talking on cell phones and urges people to heed “the common sense not to talk or text while you drive.”
Nearly 6,000 people were killed last year in accidents involving distracted drivers, while more than half a million were injured, the NHTSA says. It also says that on any given day of 2009, up to 800,000 people were driving while talking or texting on a cell phone.
This modest move by the DOT follows President Barack Obama’s ban on using cell phones in vehicles for federal employees. In addition, on Jan. 1 three new states will join the list of those that ban texting behind the wheel: New Hampshire, Illinois and Oregon.
Obama Administration Unveils New Effort to Combat Distracted Driving (Detroit News)
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Which Will Sell More Pickups In 2009? Chrysler or Toyota?
Posted on 30. Dec, 2009 by admin.
At the end of 2009, the first and second spots for overall pickup truck sales are virtually locked up. GM is set to take the top spot, with 441,472 midsize and full-size trucks (Cadillac Escalade EXT, Chevy Avalanche, Chevy Colorado, Chevy Silverado, GMC Canyon, GMC Sierra, Hummer H3T) sold through November, and Ford is expected to grab the runner-up position, with 416,658 units (Ford F-Series, Ford Ranger, Lincoln Mark LT) sold year-to-date.
But the race for the third spot is once again looking like a dead heat. Last year, for the first time, Chrysler gave up the No. 3 spot to Toyota for overall truck sales, marking the first time an import manufacturer had occupied this position.
This year, Chrysler is leading Toyota. Combined sales of the Dakota and Ram pickups sit at 175,326 units sold through November. Toyota is running just a few thousand units behind, at 172,842 units sold of its Tundra and Tacoma rigs.
Which will sell more pickups in 2009? Chrysler or Toyota? Check back in a few days to find out. It's going to be close!
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2010 Honda CR-V Video
Posted on 30. Dec, 2009 by admin.
Coming with a mild refresh for the 2010 model year, the Honda CR-V is definitely a vehicle you’ll want to check out if you’re shopping in the affordable crossover segment, according to Cars.com reviewer Bill Jackson. The CR-V has a few drawbacks, though, the biggest of which may be its ability to pass at highway speeds. Check out Jackson’s full review to find out how this and a few other nitpicks may affect your purchasing decision.
2010|Honda|CR-V
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Ford Sync to Offer iTunes Song Tagging
Posted on 30. Dec, 2009 by admin.
This might fall under the category of driver distraction, but I almost don’t care simply because it would be useful so frequently. How often have you been driving along and heard a song on the radio that you want to own?
Beginning next year, certain Ford models will include tagging technology that will allow drivers or passengers to note a song they hear on HD Radio and download it later to an iPhone or iPod.
Ford will be the first automaker to offer the tagging technology as a factory-installed option—part of its updated Sync package—although the feature is currently available on some aftermarket HD radio receivers. The system will be able to tag up to 100 songs at a time, and then when the iPod or iPhone connects to iTunes, customers can buy the song.
Ford has not yet said whether HD Radio and iTunes tagging will come standard or as an option in the larger Sync package.
New Ford Models to Offer Factory-Installed iTunes Tagging Technology (Detroit News)
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Reader Review of the Week: 2010 Toyota Tacoma
Posted on 30. Dec, 2009 by admin.
An anonymous reviewer from Austin, Texas, truly loves his 2010 Toyota Tacoma pickup truck. However, loving a vehicle doesn’t mean that it’s flawless. This reader reviewer sees three areas where Toyota still has some work to do on this small pickup. Read his full review for the details, then write a review of your own vehicle by clicking here.
“I can list many positive things about this 2010 Toyota Tacoma 4×4 Short Bed, Double Cab small truck, and Toyota deserves praise for a job well done. However, I do have constructive criticisms.
“First of all, a rough first gear. When coasting or accelerating through a neighborhood turn, the transmission can't decide to downshift or upshift. It's a rough, indecisive transition. The techs at the dealership say it's a known issue and only on the Tacomas. Hopefully, they'll debug the logic controller soon.
“Finally, the deck rail system is annoying. It inhibits adding typical accessories (headache rack, toolbox, bike rack) without having to pay a ridiculous premium or have something custom built.
“To date, there are minimal accessories for the deck rail. Tie-downs are $50ish per pair, and I have to wrestle with fastening them. I broke one on the third day of ownership just trying to move it. If they have a deck rail system, then they should provide adequate accessories for it. I've only found tie-downs.”
2010|Toyota|Tacoma
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My Favorite Cars of the Year
Posted on 30. Dec, 2009 by admin.
Everyone is doing year-end lists, which kind of get tiresome to me. But since I have some time to kill before the work-year ends, I thought I’d reflect on all the new cars I tested this year and which ones stood out.
I had 27 new cars for a full-week test. A few I had for extended tests of just a few days. The other full-time reviewers actually test more than that, believe it or not.
I did drive dozens of others in short-term bursts of an hour or more, but I figured for this list I’d just tackle the ones I lived with day to day.
First Car of 2009: 2010 Ford Fusion
I picked up a brand-new four-cylinder 2010 Ford Fusion in Detroit and drove it back to Chicago in pretty horrible weather after the 2009 Detroit auto show last January. The car set the standard for the year. It seems every automaker is upping its game, including Ford.
Biggest Surprise: 2010 Lincoln MKT
Somehow I fell in love with the big, black, hearselike Lincoln MKT. Maybe it was the design, maybe it was the twin-turbo engine, but I just loved this three-row crossover. If I could afford one for a family hauler, I’d buy it on the spot.
Biggest Disappointment: 2009 VW Tiguan
I liked the turbocharged 2.0-liter four-cylinder, the manual transmission and the looks of the Tiguan, but the small backseat and tiny cargo area were unforgivable for a vehicle to compete in this crowded class. Plus, at $24,000 it wasn’t even that affordable in the completely stripped-down version I had. A higher level trim is shown above.
Car I May Buy Tomorrow: 2010 Subaru Outback
Seriously, I may trade in my ’08 Outback for a 2010 before the end of 2009. The new one is much bigger so it’ll better fit our bulky child safety seats for our two kids under 2. Plus, it rides a lot smoother and quieter than ours. The other reviewers didn’t like the continuously variable automatic transmission, but I don’t think it’s make or break for me or my wife. Does anyone buying an Outback four-cylinder care about a thrill-less transmission? Oh, and it costs about the same as a Tiguan.
Car I Wouldn’t Spend $90,000 On: 2009 Porsche Cayenne GTS
Our test car came to just over $90,000. I wouldn’t spend half that on the Cayenne GTS, though. While I thought the seats were quite awesome, the ride was so rough it hurt my molars. Not even the Nissan Z rode that rough. Plus, it didn’t handle that great and didn’t seem all that fast. I’d take the Cadillac CTS-V I tested in a heartbeat, or a Dodge Challenger SRT8 and take the extra $30,000 to $40,000 left over and buy a Chevy Tahoe for Home Depot runs.
Looking at my list as a whole, I can’t really think of one car on it that was just plain awful or that I’d tell someone not to buy. I might recommend others over them, but I wouldn’t say an absolute no if anyone were considering a purchase. Besides the Cayenne, that is.
Here’s the full list of what I drove in 2009 in somewhat chronological order:
2010 Ford Fusion, 2009 Nissan Frontier, 2009 VW Tiguan, 2009 Ford Focus Coupe, 2009 Toyota Yaris, 2009 Toyota Venza, 2009 BMW 535xi Wagon, 2009 Dodge Challenger SRT8, 2009 Nissan 370Z coupe, 2009 Cadillac CTS-V, 2010 Chevy Equinox, 2009 VW CC, 2010 Subaru Legacy, 2010 Kia Forte sedan, 2009 Hyundai Accent, 2010 Toyota Prius, 2010 Honda Insight, 2010 Nissan 370Z Roadster, 2009 Porsche Cayenne GTS, 2010 Lincoln MKT, 2010 Kia Forte Koup, 2010 Lexus RX 450h, 2010 Mazda6, 2010 Subaru Outback, 2010 Acura RDX, 2010 Acura TSX, 2010 Kia Sorento
