CAC Auto

Russia Set to Invest in Cleaning Up Car Pollution Again

The United States government made headlines with their Cash for Clunkers program that was part of a vision of taking older model vehicles off the road by providing an incentive for consumers to opt for more fuel efficient and less polluting vehicles in order to help keep the air quality higher in the US. Other countries have emulated this plan and one of the largest is the nation of Russia which has already done one run of a similar program intended to help better the air quality in the country and also improve fuel efficiency on the road to help Russia preserve its petro based natural resources. Now, the nation’s government has announced that they will spend the equivalent of $330 million, 10 billion rubles, to run a second leg of the program to subsidize the program to get ‘clunker’ cars and trucks off of Russian road ways. The trade in project is a big one for Russian Prime Minister Vladimir Putin, who expects it to be a major success for his country.

He announced only days ago that the government signed an order to assign the money for the program through Viktor Khristenko, the Trade and Industry Minister of Russia. The program grants 50,000 rubles for those who want to trade Russian made cars that are 10 years or older, and has definitely helped the local auto industry recover from some rough times, according to experts in the nation. Over 200,000 vehicles will be scrapped under this plan which is the same number that were processed in the first leg of the program.

Ford Now Able to Pay Back Company Chairman

Things have begun to look very good indeed for the Detroit, Michigan based car maker Ford Motor Company. Only a few days ago, the top auto maker in the United States announced that they are going to be able to pay their own executive chairman for the first time since 2005. William Clay Ford Jr., the chairman in question, has not been paid since then because Ford has not had a profitable year since that time. As the great grandson of the founder of Ford Motor Company, Henry Ford himself, Ford Jr. will be able to receive a little over $4 million in cash in 2010, as well as stock options that he has which are worth a total of just under $12 million. These new details have come courtesy of a filing that the company gave to the Securities and Exchange Commission.

That figure, posted half a decade after Ford’s great grandson was first unable to be paid, also show compensation that he earned since 2008. Ford Jr. agreed to defer that money until the company was able to return to profitability in its auto making operations and he voluntarily went without pay in the years 2006 and 2007 in order to help his company achieve that goal. The compensation committee for Ford Motor decided that now is the time to give Mr. Ford what he is owed because the company is in such sound financial shape said Mark Truby, the spokesman for the auto maker. In order to arrive at this decision, the group took a look at the most recent profits the company has earned, in addition to the outlook for 2010 and 2011 alike. They came to the conclusion that the growth of Ford Motor Company will be able to be sustained without any problems. This is great news for those who own stock in the company and it may help raise the value of used cars bearing the Ford mark, as well.

In response to the news, Ford Jr. notified his employees that he very much appreciated their efforts to get the company back to a profitable state via email and let them know that he would be paid, in the interest of doing business in a fair and open way.

This is ironic news for some, considering that in 2005, Ford Motor was considered to be in the worst shape of all the big three Detroit car makers, but after 5 straight quarters of profitability, few critics will argue with the company’s decision.

Whitney Automotive Group Bought Out

It was recently announced by US Auto Parts, a provider of after market auto parts and accessories for vehicles which operates on the web, that the company has acquired Whitney Automotive Group for a total purchase price of just under $28 million. In the deal, US Auto Parts will take on payables and other trade related debts that total $11 million, and the deal is said to be closing some time in August 2010. Experts say that this will be a major boon for the 95 year old Whitney Automotive Group which was best known for the JC Whitney brand. The company has made a name for itself by distributing after market auto parts that are aimed at the Do It Yourself niche customers in the accessories market. The company owns a varied collection of web sites that cater to truck styling, car parts, motor bikes and of course its flagship business JC Whitney. All told, the web sites have managed to bring in more than 3 million visitors each month and the deal is expected to bring a lot of name recognized brands to US Auto Parts while offering their customers many more options to help them expand their work in selling auto parts over the web. The expanded customer reach, say analysts, should go a long way in helping US Auto Parts really establish dominance in their markets of choice.

Chief Executive Officer for US Auto Parts, Shane Evangelist, has cited the acquisition as a major move that will build his company’s power to better serve its core customer base, as well.

Chrysler Upgrading Michigan Plant

Recent reports have stated that automaker Chrysler Group is planning to invest $43 million in new tooling and other equipment it needs to expand its operations in the United States city of Kokomo, Indiana. Through the expansion, nearly 400 new jobs will be created and of those, 379 will be for laid off employees at the plant while 20 will be for new management positions. My increasing the capabilities of the Group’s Kokomo Transmission plant and Kokomo Casting facility, Chrysler hopes to adjust them so that they can support the production of the new World Engine and raise the process quality of the 62TE transmission program. According to the senior vice president and head of manufacturing at Chrysler, Scott Garberding, the plan is a robust one that was first laid out in November of 2009 and designed to help the Kokomo facilities play a stronger role in achieving Chrysler’s current goals.

Keeping their plant on the bleeding edge of hi tech innovations has been a recent Chrysler commitment, say experts in the auto industry, and the Kokomo facility upgrades bear that out. Kokomo’s city government has responded to the news by offering a tax abatement program to help make the local economic boom easier to pull off. After nearly a $1 billion invested by Chrysler Group for the power train operations over the past 3 years, the company has been a major player in the local economy. This comes after Chrysler has already invested a full $179 million in the Global Engine Manufacturing Alliance plant it maintains in Dundee, Michigan which produces the 16 valve 1.4 liter Fully Integrated Robotized Engine, a landmark product for the automaker.

Grand Cherokee From Jeep Now Costs Less

The recent bankruptcy experienced by United States auto maker Chrysler Group proved to be a significant set back, but it appears that the company is set to come back with a new model of their popular Jeep line. The new 2011 Jeep Grand Cherokee will be offered at a lower price than previous models, with the Jeep Grand Cherokee Laredo 4×4 having a manufacturer’s suggested retail price (MSRP) of $32,995 which puts it around $500 lower in price than the current model which it was designed to replace. The Laredo 4×2 will come at a price tag that is a full $2,000 less than the 4×4 model. In the auto industry show rooms this June, consumers will be treated to the new Grand Cherokee models and this will be a big moment for the company after being restructured under Fiat. According to recent press releases, Chrysler has big plans for a variety of new models that will be hitting the market in the future.

The new Grand Cherokee models will feature a totally redesigned style of body just for 2011 and a 290 horse power 3.6 liter Pentastar V6 engine. With the new engine comes 11 per cent fuel economy and an average of 23 miles per gallon which is the equivalent of over 500 miles driven on a single tank of gas. Those that want to opt for a Hemi can get a 5.7 liter V8 with 360 horse power if they choose. Besides the Laredo there will also be the Limited at $39,995 and the Overland, the luxury model of the line, offered at $42,995 for those who want more.

BMW Looking to Change the Way Americans Order Cars

As one of the primary makers of luxury end cars in the world, the German based Bayerische Motoren Werke AG company, also known as BMW, is planning to invigorate its attempt to persuade consumers in the United States to spring for its custom ordered cars. So far, Americans have shown an unwillingness to order cars which require a significant amount of time to be built in the factories after they have been developed. As the world’s biggest maker of high end vehicles, BMW is seeking to change this preference for instant purchasing and guide consumers on the path to creating their ultimate dream vehicle by using its X3 SUV to encourage the new process of customization. By bringing car dealers on board to help them entice customers with options such an adapter for the iPod that runs around $185 and a panoramic moon roof for $1,350.

The built to order segment of the auto making industry is expected to expand in coming years, according to some experts, as consumer advocates continue to push for greater control by customers over the products they buy. By helping reduce costly expenses to maintain inventory, manufacturers also stand to gain and avoid having to discount in order to sell vehicles that are experiencing a lower level of demand. By using the pre order programs, Toyota’s Lexus models that are designed to customer specifications now compose a full 2 percent of the company’s orders. If US consumers come to expect this level of custom design in their cars it could filter down to the economy models and thus signal a massive change for an industry essentially built upon mass production of similar products.

Chrysler Mini Vans Rising in Popularity

Recent stats revealed by the Auburn Hills based Chrysler Group show that the companies sales are up 25 percent from 2009, showing the auto maker has managed to sell almost twice as many passenger cars and keep mini van sales extremely strong throughout the course of the year. According to the company’s lead sales executive and Ram truck brand head Fred Diaz, the competitive pricing of the vehicles has lead the way for these results along with the fact that consumers have shown a strong desire to purchase Chrysler products. This has helped the car maker lower spending on incentives designed to entice consumers and focus more on improving its own sales. Industry analysts have shown that Chrysler ended up spending around $1,000 less on each vehicle it sold in comparison with the previous year, doling out only $3,374 per vehicle in items like rebates, leases that were discounted and low rate financing options.

With sales of just over 95,700 vehicles this month in 2010 versus a little under 76,600 for the same month in 2009, the stats prove that the cars are making up for 32 percent of the sales this year in comparison with only 20 percent in 2009. Experts suggest that the negotiations the company had to do with President Barak Obama’s auto industry task force regarding the federally backed bankruptcy case may have set them behind in the marketing efforts to the public. While February had proved to be a good year for the company, April has turned out to be an extremely strong rise that is the first of its kind since they emerged from the bankruptcy in June of 2009.

US Rekindling Love Affair with American Cars

For decades now, car buyers in the United States have been less than enthused by their native auto makers, widely choosing alternatives from Asian auto makers and leaving the US car manufacturing business struggling to wage a long war to catch up. It appears that these days may be coming to an end as Americans have returned to their roots in the nation where the first mass produced automobile was developed and popularized by innovator Henry Ford. According to a recent poll by the Associated Press and GfK, the percentage of US drivers who feel that American companies are building better cars than their Asian rivals is stands at 38% with 33% of those polled saying that they prefer Asian made cars. According to the poll providers, the analysts with the AP feel that the change in opinion is most likely largely due to the fact that Toyota’s formerly spotless reputation has been damaged recently while public perception of auto maker Ford has shot up.

The March 2010 poll took place not long after Toyota found itself in a hellish situation that meant it needed to recall nearly 10 million vehicles not just in the US, but many other nations around the world. The reason for the recall was based on accusations that Toyota was being slow to respond to safety issues with its vehicles. Ford still endures plenty of challenge from Toyota and many other manufacturers, but the fact that it is no longer contending with strong competition from GM and Chrysler has given it a definite edge of Honda, Nissan and other car makers.

New Hall of Fame for Nascar

In a major victory for auto sports fans, one of the fast growing of all pro sports in the United States, the Nascar Hall of Fame has opened up in the US state of Charlotte, North Carolina. The city has long served as the unofficial capitol of the sport so it comes as no surprise to both fans and local residents that such a facility would be established there. Thousands came to the opening ceremony to pay tribute to a sport that as a very illustrious past and quite an uncertain future. The event even faced rain which didn’t lower crowd support for the $195 million building. The CEO of Nascar, Brian France, let people know that the 150,000 square foot museum would be the ‘best hall of fame in the world’. The opening ceremonies inducted two of the initial five members of the hall were Richard Petty and Junior Johnson.

Petty wowed the crowd in a replica of his red and Petty blue ‘74 STP Dodge Charger, No. 43 while Johnson came in a black 1940 Ford which was meant to show off the historic roots of Nascar that tie back to liquor bootleggers that held the first races as a way to determine whose vehicle was fastest. While the sport was officially formed in Daytona Beach, Florida in 1947, Charlotte remains the primary center of the racing scene. After the two first members of the hall will come Dale Earnhardt Sr, Bill Frances Sr. and others. The museum itself will play home to several interactive simulations that allow visitors to try their hand at different Nascar related activities such as changing a tire in the time honored pit stop tradition.

University Students Design and Compete with Race Cars

Around the world, students often take place in various events building small model cars while at the grade school level, but at Michigan State University, college students are building the real thing. The event has attracted students who may have thought previously that engineering was not for them, however once they got the thrill of working on an actual vehicle that could race things began to change in terms of their perspective. The students are working on race cars that they show off for the North American International Auto Show that is held each year at the Cobo Center in Detroit, Michigan. The students belong to an organization known as the Michigan State University Formula Society of Automotive Engineers. They divide into teams and then design, construct and test their cares in a number of amateur level open wheel races that take place each year. The organization is entirely run by students and educators on campus approve of it due to the fact that it builds student confidence and also encourages more to take up the math and science oriented professions such as engineering that are often over looked by younger incoming students in a university setting.