Automotive News reported on Tuesday that federal regulators have launched a probe to investigate a possible fuel tank issue with 1993 to 2004 Jeep Grand Cherokees. The National Highway Traffic Safety Administration is attempting to determine if more than a dozen post-crash fires involving the vehicles are the result of faulty placement of the SUV’s fuel cell. Any problem has the potential to impact more than three million cars currently on the road.
Preliminary information released on Tuesday by the NHTSA suggested that at least 13 deaths in 10 separate crashes were “most likely associated with the alleged defect” in the Grand Cherokees. However, the NHTSA stopped short of blaming the fuel cell’s placement for the fires, stating that the accidents and fires did not necessarily “establish a defect trend” and that a review of early warning data did not find the subject vehicles to be over-represented for post-crash fires.”
The nonprofit Center for Auto Safety petitioned the NHTSA to investigate the fuel tanks in the Grand Cherokee, which they say are improperly positioned to absorb an impact and are known to tear off during crashes. Jeep’s parent company Chrysler Group said it is cooperating with the NHTSA investigation but remained confident that “that a study which considered all factors in all collisions — including rear collisions with fire — would show that the 1993-2004 Jeep Grand Cherokees perform as well as or better than other vehicles in their class.”
The pre-order numbers for the new all-electric Nissan Volt suggest that the next-generation vehicle is exciting people who aren’t normally Nissan buyers. Automotive News reports that Nissan has received more than 14,000 reservations from individual customers for the Leaf, and that 90 percent of these orders were so-called “conquest” orders from people who weren’t already Nissan owners.
Of course, that might not translate to 14,000 sales for the car. In order to “reserve” their Leaf, people simply needed to pay a $99 fee and register online. The fee is refundable for any reason, including if the charging station can’t be installed in a person’s home or if they simply decide that they don’t want it. Part of the challenge that Nissan will face when the car launches in select markets in December is making sure that customers who paid their $99 decide to go through with a sale.
Nissan also stated that a key element of the advertising campaign for the Leaf will revolve around the car’s lack of an exhaust pipe - highlight how environmentally friendly the car is.
AutomotiveNews.com reports that Honda is trying to push the limits of what a hybrid vehicle can be. The company’s new CR-Z is a sporty two-seater on August 24 for less than $20,000, creating a potentially attractive option for new car buyers looking for a fun and sporty hybrid alternative without breaking the bank.
Honda has been able to keep the costs down on the CR-Z by integrating the engine and the bulk of the Integrated Motor Assist system from its Insight hybrid hatchback. The car is available with either a six-speed manual or continuously variable automatic transmission option.
The performance has been enhanced with several featured. Honda made the car as light as possible by reducing weight in various areas, including the 16-inch wheels and forged aluminum front suspension parts. Drivers can also toggle between a “sport” and “eco” mode to increase power or fuel efficiency.
The Ford Mercury might be a thing of the past. Bloomberg is reporting that Ford Motor Co. is instituting a plan to shut down the Mercury product line. According to two anonymous sources with familiarity with the discussions, plans to shutter the entry-level luxury car line will be presented by Ford’s top executives to its Board of Directors in July.
The line has been in decline for several years as it has been particularly hard hit by the economic downturn. Sales of Mercury cars have plummeted 74 percent since 2000. Ford recently discontinued the Mercury Sable product line and will also stop production before next year on the Mercury Mountaineer SUV and Grand Marquis lines, leaving the company with just the Mercury Milan and Mercury Mariner SUV next year.
According to John Wolkonowicz, an auto analyst with IHS Global Insight, Mercury had become a “forgotten brand” within Ford, particularly after the company decided to stop giving Mercury exclusive components and technology. This eventually made them too similar to the lower-priced Ford models and ultimately ignored by car buyers.
When the Nissan Leaf debuts in America this year, its MSRP will be comparatively less than the same model selling in Japan in Europe. Automotive News says that Nissan officials are explaining this by stating that differences in local taxes and additional incentives will make up the difference in cost within the U.S. market.
Trisha Jung, chief marketing manager for Nissan’s U.S. electric vehicle sales, said that analysts who are suggesting that the Nissan Leaf is priced to low “don’t have all the information” such as the long-term impact of incentives received to build the electric car at its plant in Symrna, Tennessee.
“We are the first affordable, mass-market electric vehicle,” Jung said. “We’re pricing appropriately to ensure that.”
However, analysts like John Kluza, a battery analyst at Lux Research, claim that the estimated MSRP in the U.S. market of $32,780 is too low when considering the costs of the battery pack, electronic components and production.
“It seems the goal was to price Leaf to get sales volume even if there’s some initial loss,” Kluza said. “In the first year or so, perhaps they’ll take a hit of $2,000 on each car, maybe more. Over time, as battery production scales up, that price will start to look more appropriate.”
AM General might be the last company that you would think would be involved in building eco-friendly cars. After all, they are the company that produces the Hummer, the massive, gas-guzzling SUVs that have become punch lines for cars that are anything but green. However, that perception might be changing as Automotive News reports that the South Bend, Ind. based company will be starting production on a new line of commercial electric vehicles.
Specifically, AM General will be responsible for the final assembly of Ford’s Transit Connect commercial vans, which will launch next spring. The announcement was made on Tuesday by Azure Dynamic, the company charged with producing the electric driving system.
Despite the seeming incongruity of the company that produces Hummers making electric vehicles, an AM General spokesperson pointed out that this isn’t the company’s first foray into the space. AM General produced 350 electric Jeeps for the U.S. Postal Service in 1975 and developed prototype Humvees for military use that ran on compressed gas.
AutoWeek reports that Chrysler’s Fiat-based compact cars could be coming to America sooner than anticipated. During a conference call on Monday, Chrysler Group CEO Sergio Marchionne said that the cars could potentially be on the market as early as the fourth quarter of 2011. Previous predictions had placed the cars as not being available in the United States until early 2012.
“We’ve run extensive clinics on the first vehicles. We’re 98 percent there on styling,” he said. “My expectation today is we’ll be able to get this car into the market Q4 2011. We continue to work pretty aggressively on timing.”
The Fiat-based cars would help Chrysler become competitive in an area of weakness for it in the American car market: the compact sedan. Marchionne also said that Chrysler Group is planning on addressing one of its other pressing needs before the launch of the Fiat-based compact. According to him, by the end of 2010 Chrysler plans to come out with new versions of its Chrysler Sebring and Dodge Avenger lines.
“We have carried out significant surgery on the architecture of those cars and made significant improvements of the interiors,” he said.
Prop. 17 is set to appear on the June 8 ballot, promises annual savings of up to $250 for in auto insurance California drivers who maintain continuous insurance coverage, even if they change carriers. Sounds appealing, doesn’t it? But there’s a catch.
Prop. 17, according to the official summary prepared by the state Attorney General’s Office, also “will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage.”
Backers say letting drivers carry discounts from carrier to carrier would aid most drivers. Foes say the measure would make rates unaffordable for many new drivers.
Opponents also contend that the initiative would make rates unaffordable for many new drivers and those with tarnished records, boosting the number of uninsured cars on the road and thereby raising safety risks and eventually premiums for everyone.
The proponents of Proposition 17 contend that passage would benefit more than 80% of California drivers because it would allow them to enjoy their continuous-coverage discounts — as much as $250 a year for some drivers — even if they switch carriers to take advantage of lower prices elsewhere.
In short, there will be winners and losers if Prop. 17 passes. Those that want cheap insurance will still save money but many more will pay more for car insurance.
The days of the Saab brand might be over soon, as BusinessWeek reports that General Motors is considering closing down the brand and selling several major pieces to the Chinese automaker Beijing Automotive Industry Holding.
The move comes a week after General Motors saw a potential deal to sell Saab to a joint partnership of the Koenigsegg Group and Beijing Auto fall through after the Koenigsegg Group withdrew their interest. However, Beijing Auto still appears to be interested in several parts of Saab, including assets such as production machinery, and appears to be looking complete a deal sooner rather than later.
Anonymous sources told BusinessWeek that both Merbanco and Renco Group have approached GM about purchasing the Swedish-based Saab. GM has recently rejected an attempt by Beijing Auto to buy its Opel brand and shelved the Saturn brand after a deal with the Penske Automotive Group fell through.
In another PR nightmare for Toyota, Consumer Reports has issued a rare “Don’t Buy” rating to its Lexus GX 460 model because of handling problems that make the luxury SUV vulnerable to overturn. According to USA Today, Toyota is currently working on testing to attempt to fix the problem and will provide loaner vehicles in the interim to any current Lexus GX 460 owner who is concerned about the safety of the car.
According to Consumer Reports, the newly-designed rear end of the Lexus GX 460 is far too loose, causing it to slide too easily when a driver lifts off the gas while cornering. The magazines says that testing showed that the problem is so severe that the rear wheels can easily slide over a curb during tight cornering at fast speeds, causing the car to flip.
The “Don’t Buy” rating is the harshest ranking that Consumer Reports can give a product. The last time it was applied to a vehicle was in 2001.
Automotive News reported on Tuesday that federal regulators have launched a probe to investigate a possible fuel tank issue with 1993 to 2004 Jeep Grand Cherokees. The National Highway Traffic Safety Administration is attempting to determine if more than a dozen post-crash fires involving the vehicles are the result of faulty placement of the SUV’s fuel cell. Any problem has the potential to impact more than three million cars currently on the road.
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