Crummy Economy Leads to Lower Gas Prices

If you're tired of hearing about how bad the economy is, we feel for you. We'd avoid all the downer economy stories if we could, but here's one that's impacting how we drive and how much gas will cost: In January, U.S. drivers bought 1% fewer gallons of gas than they did in 2007. That's the second consecutive month when there's been a decline in gas usage. Why is that a big deal? Gas use has risen an average of 1.6% every week for the past 10 years.

Experts point to the down economy as the reason for the reduction and conclude that lower demand will lead to less severe spikes in gas prices this spring and summer. Of course, we'd throw in the fact that half the country has been covered in snow for the past month or so as another reason people stayed off the roads and away from gas pumps. Whatever the reason, a more reasonable price hike when the weather turns nice sounds good to us. Let's hope people can afford to take their summer vacations by then.

High Prices Cut Gasoline Demand; Prices Could Drop (USA Today)

1 Million Evenflo Infant Car Seats Recalled

A million Evenflo Discovery infant car seats were the subject of a voluntary recall by the company this week after testing showed the seats could break loose from their base in a collision. Testing conducted by the National Highway Traffic Safety Administration discovered the problem, which affects models numbered 390, 391, 534 and 552 that were manufactured between April 2005 and January 29, 2008.

The company will provide owners with a free dual-hook fastener that will fix the problem and keep the seat attached to its base. The company said there have been no reports of serious injuries or deaths due to the faulty seats. Owners should call Evenflo at 800-356-2229.

Testing finds Evenflo car seat risk; recall set (Chicago Tribune)

Georgia Emissions Tests, Toyota Prius Don't Mix

A poor 2004 Toyota Prius owner in Atlanta had a heck of a time getting his low-emission car to pass Georgia’s own emissions test. The computer running the test needs the car’s engine to run at idle to calculate a passing or failing grade for pollutants. Well, the Prius, being a hybrid, simply shuts the engine off, so there is no idle — that’s one of the reasons mileage numbers are so high for the Prius.

But Toyota’s ingenuity did nothing to alleviate the man’s pain at the station. The Prius failed the test three times, and it took days to get the issue resolved. Comment below on the irony of a state test to help improve air quality not being able to handle one of the cleanest machines on the road.

Earth-Friendly Prius Struggling to Overcome GA Emissions Glitch (Atlanta Journal Constitution via Consumerist)

Gas Hits $5 a Gallon in California

One TV station in California is reporting a gas station in Gorda, Calif., south of Big Sur, is charging $5 for a gallon of gasoline. The sudden jump in gas prices — California’s usually the highest in the country and is averaging $3.37 as a state — is closely related to a rise in oil prices, which are nearing $100 a barrel. However, over the past few months the price of oil has steadily risen and gas prices have remained relatively flat. A few big oil companies posted large, billion-dollar profits last quarter, yet said one problem was that they didn’t raise gas prices quickly enough to counter higher oil costs.

California Gas Prices Reach $5 In Some Areas (KSBW via Jalopnik)

$3 Gas: Just in Time for the Holidays

It was nice while it lasted, but our three-month, sub-$3-a-gallon gasoline vacation ended Monday when the national average went back above that costly line. Today the number is up to $3.024 nationally, with California topping all states at $3.287 a gallon.

The reason for rising prices is tied directly to skyrocketing oil prices, now above $90 a barrel. During the summer, when gas prices were high, sales of fuel-efficient cars also rose. We’ll have to see if that trend continues during winter months.

Oh, and which is the lucky state with the cheapest gas? New Jersey at $2.816.

Gas Price Tops $3 Again, a First for November (USA Today)

Don't Call it a Recall: Toyota to Fix 600,000 Siennas

We’re not sure how Toyota can send a mailing to owners of Sienna minivans made between 2004 and 2006 to fix faulty front doors and not call it a recall, but that’s what they’re doing. Complaints about the doors malfunctioning — swinging freely instead of stopping at a certain threshold — have circulated on the internet for some time.

Now Toyota is offering to repair any Sienna up to 5 years old that has fewer than 100,000 miles on it. This includes Siennas that were bought used or are past their warranty period. Toyota will also reimburse owners who paid out of pocket to have the doors repaired.

The Milwaukee Journal Sentinel does a thorough job explaining the problems of real-life owners as well as Toyota’s work to fix the problem. They even interviewed Cars.com senior editor Joe Wiesenfelder. We’d like to see the problem considered a legitimate recall, and would also stress that Toyota is taking steps to give aid to customers.

Toyota to Cover Defect (Milwaukee Journal Sentinel)

Toyota Recalls 55,000 Floormats, Yes, Floormats

This has got to be the easiest-to-fix recall notice we can remember, even though the problems caused can be severe. Toyota is recalling 55,000 all-weather floormats because they can stick underneath the gas pedal, causing unwanted acceleration. It seems that complaints arose about the unintended acceleration in 2007 Lexus ES 350 sedans, but we’ve also heard similar complaints regarding the Toyota Prius.

The National Highway Traffic Safety Administration is highlighting the recall because of the number of reported accidents — eight in the Lexus ES 350 alone. So what’s the problem? The all-weather mats are made of rubber, and if they aren’t properly clipped into place they can slide below the pedals and become stuck when the gas pedal is pressed. One owner reported reaching speeds in excess of 100 mph due to the problem. There were also incidents of owners and dealers “installing” the all-weather mats over the standard floor mats instead of replacing one with the other.

In total, 30,500 mats for the 2007 Lexus ES 350 and 24,500 mats for 2007 and 2008 Toyota Camrys will be recalled in November, with replacements given free of charge. There’s no word on other Toyota and Lexus models included in the recall. NHTSA suggests owners check to make sure their current mats are secured properly and are not resting on top of the standard mats.

Toyota Recalls 55,000 Floor Mats (The Detroit News)

Car Sluggish? Maybe It's Your Weight

In an eye-opening piece, USA Today reports that the average American is too heavy to fit in his own car — at least with passengers. The average weight for men in 2004 was 190 pounds — we’re guessing that’s a number that has not regressed in the past two years — while most cars can barely tackle a load of 200-pound passengers, according to their maximum load capacity, printed on a decal inside the front door of most vehicles.

The Mazda MX-5 Miata, Chevrolet Corvette and Honda S2000 sports cars don't rate higher than 400 pounds maximum. Not only does that include passenger weight, but also any cargo, like luggage. Even more surprising are numbers for large vehicles like the Dodge Magnum and Mazda CX-7, which come in nearly identical to much smaller ones like the Honda Civic and Scion xB at around 850 pounds.

The ratings stem from a government formula that isn’t divulged, but one automaker tries to avert fears by saying there are unpublished safety margins built in. Regardless, you should know what your vehicle’s weight limit is and drive the vehicle accordingly, including monitoring the tire pressure for different-sized loads. We'd like to see more realistic numbers put in place, otherwise it seems like the automakers are just covering their own — hopefully not too heavy — backsides with these low ratings. 

When researching a car, you can find this weight limit in the specification section either on manufacturer websites or on Cars.com.

Car Weight Limits Are a Big, Fat Problem (USA Today)

Dodge Apologizes for Fictional Dog Electrocution

We weren’t going to blog about a YouTube video that broke on the internet this morning that showed a Dodge Nitro shooting electric jolts at a dog, killing it and eventually leaving a burning and charred body. We’ve seen too many of these videos that later turned out not to be official to run with it, even with the recent events involving NFL quarterback Michael Vick.

We’re still not going to point to the video, but Chrysler has acknowledged the viral ad was created through one of its marketing centers in the Netherlands. Chrysler is trying to get the video pulled from YouTube and has apologized for its content. There have been similar ads by other automakers in Europe, including fictionalized killings of cats and birds. Chrysler’s full statement is below. 

Thule Recalls Bicycle Racks That Can Cause Amputation

Thule, a popular producer of bicycle racks, has recalled a number of its most popular models for a defect that can cause “severe personal injury, including lacerations and/or amputations,” according to a company press release. That warning sounded serious enough for us to post a full list of recalled products. They are:

Hitching Post Pro (934, 934XT, 935, 935XT, 936, 936XT, 937, 937XT, 951, 951XT), Expressway (995, 995XT, 996, 996XT) and Trailblazer (998, 998XT) models sold between January 2003 and June 2007.

The recall involves the company sending owners a repair kit to prevent pinching on the rack’s adjustable parts. We don’t know about you, but when we read the word “amputation,” we’re ready to chuck said product in the garbage, just in case.

For more information, see the full recall announcement here.

It's Baaaack: $3 Gas Has Returned

Today, the national average for a gallon of regular gasoline has hit $3.00 on the dot, according to AAA. The main reason our summer of relative gas peace has been disrupted is problems at the refinery level. A major refinery in Kansas has been shut down after a flood, and gas prices in the Midwest have shot up in one day. USA Today says “as much as 20 cents in one day,” but one of our editors saw regular gas prices jump from $3.03 Monday to $3.45 this morning.

Analysts say the national price will go above $3 later this week.

Refinery Woes Shoot Gas Prices Up (USA Today)

Gas Aids Debunked

The Federal Trade Commission published a report in September 2006 stating that consumers should be wary of products that are alleged to improve fuel economy. None of the 93 products tested by the EPA actually improved gas mileage. The FTC lists both mechanical devices and liquid additives. Testing took place at the Ann Arbor, Mich., labs of the EPA over 30 years. Ten of the devices did show small improvements in fuel economy, but not what was advertised. Four of those 10 increased emissions.

For a full list of disproved devices and additives, view the full PDF from the FTC here.

Drivers, Beware So-Called Gas Aid Gadgets (The Detroit News)

Cities Testing Wireless Tech for Parking Meters

How would you like a parking meter that tells you when you’re running out of time? Well, of course, most do that if you’re standing there, but how about one that will call you to let you know? How about a parking meter that creates little WiFi hotspots?

Well, in Vancouver, British Columbia, and Niagara Falls, N.Y., city officials are testing the PhotoViolationMeter, from the Photo Violation Technologies Corporation, natch. The plan behind these new, smarter meters is to let consumers have a way to not only find out they’re running out of time, but to also make a wireless payment, so they can avoid that hefty parking ticket ($50 here in Chicago). Of course, that’s not why cities have parking meters: Officials are secretly (or not-so-secretly) hoping you’ll forget to feed the meter and feed their coffers instead (see: Denver Boot).

The flip side of the nifty wireless meters is that cities can get handheld devices from the fine folks at Photo Violation Tech that will take digital photos of your meter transgressions, making fine collection easier for city officials. If you did forget to feed the meter, you can pay your fine wirelessly right at the meter.

Source: PhotoViolation.com

License Plate Hunter Aids Police

Police departments across the country are using an electronic camera system called the Mobile Plate Hunter to help locate stolen vehicles, cars used in crimes and the cars of drivers with suspended or revoked licenses. The system uses two infrared cameras to scan license plates and, at a clip of 15 to 25 per second, determine if the plates match any in a police database. 

One department claims it’s finding 40 flagged plates a day using the $22,000 system, versus “just a few” per day before. There are objections from civil rights groups about the tracking capability of the systems, but 220 police departments are already using it nationwide. Hopefully Hollywood and Beverly Hills police will camp a couple of these to look out for any probation-marked celebrities.   

Police Scan Cars Using High-Tech Cameras (Newsday)

Don't Put a Seat Cover on That New Honda Accord

Cars.com’s new question and answer site/wiki, Ask.cars.com, has brought in hundreds of questions since it launched last week, and a few have been enlightening even for us. As we researched one such question about side airbags and their compatibility with seat covers, we learned that the two should not be mixed.

Not only did we answer a reader’s question about his 2007 Honda Accord with seat-mounted side-impact airbags, but we’re now sounding a warning to any owner of a car with side airbags to not use traditional seat covers because they can obstruct deployment.

Do seat covers obstruct side airbags? (Ask.cars.com)

Gas Prices Begin Retreat

It was easy to predict for some, but many had to wait and see the price of gasoline fall before believing it might not hit $4 this summer. Today, gas prices fell to $3.197 from a record high of $3.227 on May 24. Analysts are saying this is the beginning of a decline, but there could be another spike around the July 4 holiday.

It’s not all gasoline and roses though — gas prices are still more than 30 cents higher than they were at the same time last year. A number of problems with U.S. refineries led to the recent spike, and if they come back online — and there are no other unforeseen issues — gas prices could continue to decline.

Gas Prices: 'We're on the Verge of Real Relief' (USAToday) 

New Toyota Tundra Running Into Engine Failures

In some of the first 2007 Toyota Tundra pickups that rolled off the assembly line, optional V-8 engines are failing due to faulty camshafts. The company says the problem should only impact a limited number of the redesigned full-size pickups, but hasn’t yet figured out what that number is. The company sold 37,000 of the new Tundras with the powerful 5.7-liter V-8 in its first three months on the market.

The company is replacing the entire engine of any truck affected by the problem, which stems from a part built by an outside supplier. So far, 20 trucks have reported the engine failures, and Toyota is actively tracking down the vehicles at risk. When we get more information about the investigation, we’ll post it here.

Toyota Fixing Engine Failures in New Tundra truck (USAToday)

Related
2007 Toyota Tundra Expert Review (Cars.com)
Cars.comparison: Full-Size Trucks (Cars.com)
Toyota Tundra Gets Top Frontal Crash Test Rating (KickingTires)
Revisiting the 2007 Toyota Tundra (KickingTires)
Toyota Offering $1,500 Rebate on All-New Tundra (KickingTires)
More Toyota Tundra News (KickingTires)

Nissan Says Phones Can Erase Your Key

If you own a 2007 Nissan Altima or Infiniti G35, we have a suggestion: Keep your key fob in one pocket and your cell phone in the other.

According to the Associated Press, Nissan is getting complaints that cell phones are erasing its “intelligent keys” – you know, the ones you don't actually have to put in the ignition – because some phones can alter the fobs' electronic code if the two touch while a call is being made or received.

"When this happens, the I-Key will not start the vehicle and cannot be reprogrammed," Nissan’s statement said.

Ouch. Wrong number, indeed.

Nissan says it’s working on the problem and will give customers new keys sometime this fall. For now, the company recommends keeping your cell phone and your fob “at least 1 inch apart at all times.” Just like when you were dating in junior high.

Brent Adams, vice president and general manager at Action Nissan in Nashville, told AP that the problem involves only a "certain type of phone and this particular service," which he declined to specify. He described the number of complaints as "minute."

Nissan: Cell Phones Can Alter the I-Key (L.A. Times)

A Record We Don't Want: Gas Prices at an All-Time High

Today, the average price for a gallon of regular unleaded hit $3.19 nationally — $3.196, precisely, so basically $3.20. This is the highest price of gasoline in the U.S. ever, if you don’t adjust for inflation. That adjusted number was set in 1981 at $3.223. But hey, we’ve got seven days until Memorial Day and it shouldn’t be too hard to top that figure. Let’s just hope this is the early spike some analysts were expecting for the summer and that by the July 4th holiday things will have settled down. We can hope, can’t we?

There have also been a few stories of people traveling less this year on Memorial Day, but some states like Michigan and Illinois are expecting record travel. Are any of you scaling back your travel plans because of the pain at the pump? 

Gasoline Prices at the Pump Set Record at $3.196 a Gallon (USAToday.com)

Could it Be? Cheaper Gas in 2007?

According to the Energy Information Administration, gas prices nationwide will peak earlier and be roughly 11 cents lower this year than in 2006; they're predicted to top out at about $2.87 in May, compared with $2.98 in July of last year. The average price this summer is expected to be $2.81, versus $2.84 last year. These prices are about 7 cents higher than the current average price of unleaded, which has risen for 10 consecutive weeks.

The news isn't exactly something to jump for joy over, but CNNMoney puts things in even greater perspective: Compared with 1980's post-oil-embargo highs, we’re still spending less on a gallon of gas now — counting inflation — than we were then.

[Cheaper Gas Seen in 2007, CNNMoney]

Washington Takes on Katrina Cars

One side effect of Hurricane Katrina has been the resale of flood-damaged cars billed as problem-free. Cars that have been in a flood, even if they look good, are by and large lemons in the truest sense of the word. Now, Congress is looking at a bill that would make it harder for unsuspecting shoppers to end up with a Katrina vehicle.

Called the Passenger Vehicle Loss Disclosure Act, the bill would red-flag any vehicle that was totaled or flood-damaged. The red flag would spell out clearly to buyers what they were about to purchase by tagging the car’s VIN instead of its state-by-state title ID.

One interesting quote in the story below comes from Senator Trent Lott, whose car was totaled by Katrina. "But it looked fantastic. Just to look at it, you wouldn't think there was a thing in the world wrong with it.”

[Bill Would Make 'Katrina Cars' Harder To Resell, NBC5.com]

Honda to Extend Warranties on 6 Million Cars

A class-action lawsuit has forced Honda to extend warranties and pay off lease fees due to faulty odometers for 6 million Hondas and Acuras. The voluntary industry standard is 4% accuracy for accumulated mileage. The government does not regulate odometers.

Honda says its odometers were within 3.75% accuracy but the company decided to settle the lawsuit because “the customer expectation is that it would be based on zero. We weren't. So we decided to settle the suit," according to Honda spokesman Chris Martin.

Vehicles affected were bought from April 13, 2002 to November 7, 2006. Purchased cars will get extended warranties while leased vehicles will receive added mileage to the terms of the lease, or those charged for overages on past lease deals will be reimbursed.

Honda says all 2007 models — excluding the Honda Fit — have received adjusted odometers with almost no variation in mileage.

[Honda Says Odometers on 6M Cars Click Off Mileage at Too-quick Pace, USA Today]

Gas Prices To Fall Further

The average price of gas across the country is $2.23 a gallon, and according to AAA it was down more than four cents over the holiday weekend. Other energy analysts say that price could fall another 10 cents or more in the coming weeks. That’s a big drop, but not as significant as the fall in oil prices. Unfortunately, these same analysts say gas prices probably won’t drop much more than the dime’s worth we’re going to see in the short term, because of the spring and summer driving seasons.

Update: Gas prices nationally are down again today 1/17 to $2.21.

[Prices at Pump Likely to Fall More, USAToday]

Palm Beach Gets its Own Car Show

Those in Palm Beach County, Florida, won’t have to schlep the 70 or so miles to Miami to get their car show fix anymore. The same group that puts together the South Florida International Auto Show in Miami every fall will add a winter show at the new Palm Beach County Convention Center this December.

While we don’t expect to see any major unveilings by automakers — the show will happen in very close proximity to major industry events in Los Angeles in late November and Detroit in early January — it will still be a large consumer-oriented show taking up 100,000 square feet of floor space. That’s still a fraction of the size of major shows like Chicago’s, which measures more than a million square feet. The winter timeframe is undoubtedly set to take advantage of seasonal residents, even though the area does have enough full-time residents to warrant a show separate from Miami.

Ford Flex-Fuel Glitches Burning Up Nebraska Owners

Ford’s flexible-fuel Taurus sedan is causing an uproar in Nebraska. Flex-fuel vehicles are supposed to work on either regular unleaded gas or blends of up to 85% ethanol, called E85. Now, owners, fleet managers and even Nebraska state officials are complaining the Taurus isn’t living up to its billing. Even on 10% ethanol blends, called gasohol, the Taurus has had problems starting. Ford has sent dealers instructions on how to fix the problem, but many owners have had to pay out of pocket for the repairs — the Taurus is no longer in production.

State officials are worried the mechanical problems will reflect negatively on E85 itself at a time when corn-producing states like Nebraska — ethanol is mainly refined from corn — are doing everything they can to promote the alternative fuel. We’ve tested many flex-fuel vehicles, and besides using a different pump they’ve run almost identically to gasoline-burning engines, with no added mechanical issues. Of course, that doesn’t make Nebraska Taurus owners feel any better, and they want Ford to buy them back.

[Complaints: Ford Taurus Doesn't Work Well on E85, USA Today]

Toyota Takes On Camry Glitch

Automotive News reports Toyota has tackled a problem with the 2007 Camry's accelerator software. In four-cylinder Camrys, the software allegedly learns the driver's style, and those drivers with a frugal right foot get less response over time. Sudden demands for power – like a quick shift into the passing lane – can confuse the system and leave drivers with less power than they need.

Toyota has issued service bulletins for software upgrades for Camrys on the road; those built since early October have been upgraded, Automotive News reports.

[Camry Engine Glitch Gets Fix, Automotive News – subscription required]

Lotus Offers Elise to Rental Fleet

If Hertz can't satisfy your need for speed with a Mustang GT-H, try your luck at Enterprise. Lotus announced plans today to distribute 50 Elise roadsters to select Enterprise Rent-A-Car locations in Las Vegas, Los Angeles, San Diego San Francisco and south Florida. The Elise is a far cry from Enterprise's mainstream fare, which includes such eminent nameplates as the Dodge Neon, Pontiac G6 and – if you spring for the Luxury group – Lincoln Town Car.

There's no word yet on how much it will cost to rent an Elise, but we think it will be substantially more than the $65 or so Enterprise charges to rent a Town Car for a day at Miami International Airport.  An early report says Hertz charges $129 per day to rent a Mustang GT-H in San Francisco. Enterprise will charge $199 per day in Los Angeles to rent the Elise, a substantial hike over the $70 or so for a weekday Town Car rental in L.A.

It takes a certain kind of vacationer to appreciate the two-seat Elise's bone-jarring ride and racetrack handling – not to mention justify the rental to the wife and kids. But there’s an easy fix for that: Plop down another $70, and they can follow behind in the Town Car.

[Source: Lotus]

Audi's Plan: Premium Image, Higher Prices

Audi wants to raise its prices and overall image to better compete with other German luxury brands, like BMW and Mercedes-Benz, the automaker announced yesterday. Right now, Audi's cars offer a slim bargain compared to similar Bimmers and Benzes. Excluding destination charges, here's how some of them compare:

• 2007 Audi A4 2.0T: $28,240 / 2007 BMW 328i: $32,400 / 2007 Mercedes-Benz C230: $29,650
• 2007 Audi A6 3.2: $41,950 / 2007 BMW 525i: $43,500 / 2007 Mercedes-Benz E350: $50,550
  
• 2007 Audi A8 4.2: $68,900 / 2007 BMW 750i: $75,000 / 2007 Mercedes-Benz S550: $85,400

Audi of America's executive vice president said the automaker wants to close the gap within five years, according to Reuters. But he said price increases will come with additional content and new designs. Audi is also looking to close the gap with promotional events that tie the brand to luxury partners like Bang & Olufsen and Ducati.

It bears mention that the base A4 and A6 are front-wheel drive, something performance enthusiasts often scorn. Models with Audi's Quattro all-wheel drive cost about $2,500 more. BMW and Mercedes competitors offer standard rear-wheel drive.

If Audi does close the competitive price gap, leave a note below on additional things – from engines to interiors – you'd like to see.

[VW's Audi Looks to Close U.S. Pricing Gap, Reuters]

Potentially Damaged Mazdas Won't Be Sold as New

In July, a freighter carrying brand-new Mazda vehicles to the U.S. and Canada was caught in rough seas and listed significantly, damaging many of the 4,700 vehicles on board. Now the ship has come to port, and while some of the cars it was carrying could be salvageable, Mazda said today it will not sell them as new.

Mazda said about 50% of the vehicles on board were Mazda3 compact sedans and hatchbacks, while 25% were the new CX-7 SUV. There was no description of the other 25%, but we'd guess a mix of other Japanese-produced Mazdas, like the MX-5 Miata. Salvaged models could be sold as used cars.

This means that if you were thinking of buying a new Mazda and saw the sinking ship on the news, don't worry. Your new car wasn't on the boat.

[Mazdas on Damaged Ship Won't Be Sold for Full Price, Detroit Free Press]

Dodge Ram 1500 and Durango Recalled

Roughly 145,000 2006 Dodge Ram 1500 pickups will be recalled to replace passenger airbags and airbag computer systems. Some of the trucks will also have front passenger seat belts replaced because they don’t allow certain child restraint systems to be properly installed. Dodge says the recall is being implemented because the current airbag system isn’t compatible with a limited number of rear-facing child seats in certain conditions. 

Dodge Durangos from the 2001 - 03 model years are also being recalled because of potential fires when a drink spills on wiring between the seats. About 35,000 of the SUVs are affected. There is no word on any customer complaints about either recall.

[Chrysler to Recall More Than 180,000 Vehicles, Reuters]

Happy Labor Day! Gas Prices Still Falling

We can’t remember a Labor Day weekend when gas prices fell. Some reports are even saying road trips will be up this year specifically because of gas prices. But who really takes that spontaneous of a holiday trip?

Whatever your planning methods or holiday schedule, a national average gas price of $2.79 — according to AAA — is a good thing. Many people thought the sky was falling last month when prices were well above $3 a gallon. Now there’s word we could be nearer $2 by Thanksgiving, according to some analysts. We’re going to live firmly in the now and keep an eye either way.

[Cheaper Gas May Juice Labor Day Travel, USA Today]

GM Bringing Labor Day Bonus Cash

Personally, we take Labor Day off. We fire up the grill, throw on some ribs, and kick back and watch a ball game on TV. But in the car business, this is a major work holiday. There are countless local sales with extended hours at dealerships, and the auto manufacturers are joining the party. GM today announced it would offer between $500 and $1,500 on 2006 and 2007 models through Sept. 5. This cash-back offer is on top of current incentives.

The sale breaks down like this: $500 bonus cash on cars, $1,000 on pickups and car-based SUVS, and $1,500 on truck-based SUVs.

The Pontiac Solstice; Saturn Sky, Aura and Vue Green Line; Chevrolet Corvette; 2007 GMC Yukon and Yukon XL Denali; Hummer H1; and 2007 Cadillac Escalade are all excluded from the sale.

Ford, Chrysler and Nissan have already announced similar holiday sales events.   

[GM Offers $500 - $1,500 in Bonus Cash on '06, '07 Models, Detroit Free Press]

California Bans Smoking in Cars with Kids

Yesterday, California’s state Senate passed a new bill that makes smoking in a vehicle with children in it against the law. Lawbreakers will be fined $100 per incident. The bill places any child that is required to ride in a safety seat as the benchmark for an infraction. That age could rise from the 6 to 8 years depending on a separate bill waiting to be signed by Gov. Arnold Schwarzenegger. California already has some of the nation's strictest rules and regulations of any state regarding motor vehicles and we don’t really have a problem with this one.

[Senate Votes to Ban Smoking in Cars Carrying Young Kids, Mercury News]

Mazda Recalls RX-8

Owners of all 2004, 2005 and some 2006 Mazda RX-8s need to pay attention. Actually, if you own one of these sports cars you’ve probably already made a trip to the shop following a recall, so you’re prepared. Now the company is voluntarily recalling the RX-8 over its award-winning rotary engine.

Some RX-8 engines can leak oil, causing severe damage. Owners can bring their RX-8s in for a vacuum test. If it doesn’t pass, the entire engine will be replaced. Yes, you heard us, the entire engine will be replaced.

Most engines that fail are in hot weather climates, but every owner should go in for the test. Mazda is also going to check the battery and starter on the RX-8 because they often fail in cold weather.

Ford Offers 0% Financing for Everyone

Ford is looking to clear out its 2006 stock by offering 0% financing for 72 months to almost everyone, even those with sub-prime credit ratings. Usually when you see a 0% financing offer the small print excludes anyone with poor credit. Now Ford is opening its arms to everyone, but only through Sept. 4. The program includes all Ford, Lincoln and Mercury vehicles, including the Ford F-Series pickup. Only the Ford GT supercar is excluded from the sale.

Some pundits will point to Mitsubishi offering a similar deal a few years ago and note how it led to hard financial times for the automaker after many buyers defaulted on their loans. For such a limited sale, the impact on Ford should be far less harmful than was Mitsubishi’s long-term program. It seems like Ford is simply saying, “Take a risk on us and we’ll take a risk on you.” We’ll see how it pans out.

[Ford to Offer Zero-percent Financing, MarketWatch]

Ford Closing Dealerships: What it Means to You

Last week we heard about Ford’s plans to close Ford, Mercury and Lincoln dealerships in 18 metropolitan areas as part of its Way Forward restructuring plan. Given the automaker’s current financial straits, it makes sense to trim its 4,300 dealers — especially since many stores came at a time when Ford sold many more vehicles than it does today.

The looming question: What happens to Ford owners — and potential buyers — when their local dealer gets canned?

Survey Says Mileage Most Important To Car Shoppers

Consumer Reports just released a new survey that says 27% of car shoppers rank mileage as their No. 1 priority when considering a new car. Reliability is a close second place with 25%. This study explains why every car commercial you see these days screams mileage more than pricing, no matter how it stacks up against the competition.

The other surprising tidbit is that only 5% of those surveyed considered incentives to be most important when car shopping. Many say they would time their purchase with a new round of incentives. None of the news in the survey should be that surprising to anyone that reads this blog.

Our list of the most fuel efficient cars is still here. And, if you’re wondering, gas prices are retreating. Today’s national average according to AAA is $2.92, down from the summer's high of $3.04 on August 8.   

Car Black Boxes to be Revealed

More than half of new 2005 cars had one. GM and Ford put them in almost all their vehicles. They're black boxes similar to those found in airplanes, and they record a variety of data involved in a crash, including speed, acceleration, airbag deployment and more.

Today, the government said automakers will have to disclose to buyers that the car they’re buying has a black box; privacy advocates have been requesting this disclosure. Automakers are also being told to make the data recorders stronger. The government and automakers hope the data the boxes collect will lead to safety innovations and even safer roads. For some reason the new rules don't require every automaker to put a black box in all new vehicles.

[Automakers Will be Required to Disclose Vehicle Black Boxes to Customers, USA Today]

Gear-Shift Safety System Standard by 2010

Today 19 automakers reached a deal with the U.S. government to make brake interlock systems standard in all new vehicles by 2010. Many of us are all too familiar with horror stories on the local news of a child accidentally shifting a car out of park, causing injury and sometimes death. This system — already in use in many cars today — requires the brake pedal to be pressed before the car can be shifted. A National Highway Traffic Safety Administration official said there have been 40 accidents and seven fatalities since 2000 that could have been prevented if the system were in place.

[Automakers to Put Gear-Shift Safety System in New Cars, Los Angeles Times]

New Safety Issues With Toyota Tundra and Sienna

Yesterday Toyota scored some impressive safety scores with its new Camry and RAV4. Today, there is news that recent Tundra pickups and Sienna minivans could be recalled for a second time.

The National Highway Traffic Safety Administration has upgraded a current investigation. We’re not sure what “upgrade” means, but it doesn’t sound good. More than 200,000 Tundras from 2003 and 2004 are being investigated for suspension issues along with 2004 and 2005 Siennas, which have rear liftgates that can inadvertently close on owners.

This latest flub — in a series of quality flubs — is making the world’s No. 2, and in July America’s No. 2, automaker look pretty bad. In Japan the company had to apologize to the goverment and promise more stringent quality control for the shame an investigation there brought to the company.

Some industry insiders point to Toyota's rapid expansion as one reason quality may be suffering. But the competition is certainly not fault-free. Ford is still dealing with the largest recall in history, announced last week.

[Safety Officials Step Up Toyota Tundra Probe, Detroit Free Press]

High-Powered Models Stolen Most

CCC Information Services released its list of the most-stolen vehicles in 2005. It’s an odd list because some of the usual suspects — like the Toyota Camry and Honda Accord — didn’t break the top 10. In fact, topping the list is the BMW M-Series roadster, a performance vehicle. High-powered sedans like the Mercury Marauder, Audi S4 and Jaguar XJR also made the list. We wonder if joyriding has impacted the most-stolen list this year.

Otherwise, the rest of the top 10 — yes, all six remaining spots — go to late-model Acura Integras. Some things never change.

The Top 10:

1. 2001 BMW M-Series roadster
2. 1998 Acura Integra
3. 2004 Mercury Marauder
4. 1999 Acura Integra
5. 1995 Acura Integra
6. 2002 Audi S4
7. 1996 Acura Integra
8. 1997 Acura Integra
9. 2001 Acura Integra
10. 2000 Jaguar XJR

[Top 10 Stolen Cars in 2005, Star-Telegram]

832,000 Jeep Liberty SUVs Recalled

832,000 2002-2006 Jeep Liberty SUVs have been recalled to address a possible loss of steering. That includes virtually every Liberty ever produced. The problem arises from a ball joint that could wear down faster than it should, ultimately failing completely and forcing the front end to drop onto the front tires. This would obviously cause a loss of steering control and has accounted for three injuries and 111 other customer complaints to Chrysler. This is the second major recall for the Jeep Liberty’s suspension.

A recall notice will be sent out in September, but if you own a Liberty you should contact your dealership to schedule an appointment as soon as possible. There will be no charge for service and parts due to the recall.

[Jeep Recalls 2002-2006 Liberty SUV, Washington Post]