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Category: Auto

Gas Prices Fall Slightly as Fourth of July Approaches

The AAA's Fuel Gauge Report indicates that gas prices have fallen about five cents in the past week. Today's national average price is $2.639. Last week the national average was $2.690. Gas prices may have peaked for the summer and will now slowly fall. The Los Angeles Times reports the national average is $2.642 a gallon.
Nationally, the average price was $2.642 a gallon, down 4.9 cents over the previous week.

At this time last year, the average cost per gallon was $4.573 in California and $4.095 nationally.

"They go up like a rocket and come down like they are on a parachute," said mechanic Lloyd Haines as he filled up on $2.85-a-gallon gas at a Chevron station on his way to work Monday morning.
Gas prices may also not have climbed as much as previously expected because summer driving is expected to be down slightly for the Fourth of July holiday.

Posted on June 29, 2009
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Porsche Design Launches Panamera Luggage Collection

Porsche Design Luggage


AutoEvolution reports that Porsche Design has created some luggage to fit with the Gran Turismo. The baggage in the Panamera collection was designed to fit perfectly into the Gran Turismo's luggage compartment.
The 'AluFrame' trolleys were designed to perfectly fit into the luggage compartment of the Gran Turismo, as well as of all the other Porsche models.

The hard shell luggage pieces are made from a combination of aluminium and polycarbonate, which offers a light and stable structure. There are three models in various sizes, which are available in the original Porsche exterior colors, so that they match your car.

The series is manufactured in Germany and features a safety lock system incorporated into the aluminium frame and adjustable dividers with an inner compartment for better convenience when packing. The 'AluFrame' M and XL sizes are equipped with an aluminium handle integrated into the case, for better handling. Moreover, all the trolleys carry the Porsche signature.
The Panamera collection also includes luggage, watches, clothing and lifestyle accessories to match the luxury sedan.

(via Born Rich)

Posted on June 29, 2009
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GM to Assume Liability For Future Product Liability Claims

General Motors has agreed to shoulder defect liability for product liability of their cars, even after the company emerges from bankruptcy. All claims against the company must be adjudicated in a bankruptcy proceeding, which had all the states' attorneys general worried about GM car owners' rights. Under the settlement, GM will assume legal responsibility for injuries suffered by consumers who are injured by a product defect in GM cars.
The concession means consumers who are injured in car accidents after GM emerges from bankruptcy protection will be able to bring product-liability claims against the government-owned auto maker. Under GM's original bankruptcy plan, the auto maker planned to leave such liabilities behind after selling its "good" assets to a new GM owned by the government. That meant future car-accident victims who believe that faulty manufacturing by the old GM caused their injuries would be unable to sue the new GM. Instead, they would have been treated as unsecured creditors, fighting over the remains of GM's old bankruptcy estate.

GM's agreement to take responsibility for future product-liability claims, outlined in a court filing late Friday, represents a partial victory for more than a dozen state attorneys general and several consumer-advocacy groups. They had objected to GM's original plan to shed these liabilities, arguing it would rob future car-accident victims of their legal rights because they would have no way of knowing they might be entitled to claims.

GM advisers, members of President Barack Obama's auto task force and the attorneys general negotiated for several days to address concerns about product-liability claims, among other issues. The talks heated up Friday ahead of GM's Tuesday court date, when it will ask a judge to approve the auto maker's plan to create a new GM by selling its desirable assets to the government.
The move is considered a legal victory for consumers. Chrysler, which just emerged from bankruptcy, is not responsible for those types of claims in the future. The assumption of liability only applies to future claims made against the new GM. Current claimants will be treated as unsecured creditors and are likely to get little or nothing.

Posted on June 28, 2009
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Cash for Clunkers Bill May Not Help Automakers

Now that President Obama signed the Cash for Clunkers bill, automakers are hoping for a rise in car sales. But experts warn that limitations written into the bill may keep the law from having as big an impact as it has in other countries that adopted a similar law. For one thing, the amount of money allocated to the vouchers is much smaller than in Germany. Also, the program only runs through November 1. If the program runs out of money before then ($1 billion has been allocated, which is enough for 250,000 consumers to use), it stops.
In Europe, where nearly a dozen European countries have clunker programs, the details vary. But generally, the programs require only that the vehicle being turned in is old. In Germany, eligible cars have to be at least nine years old, and the subsidy covers the purchase of any new car, regardless of its size or fuel efficiency. The American program, by contrast, is far more complicated. To qualify, consumers must turn in a vehicle that is no more than 25 years old and has a combined city and highway fuel economy rating of no more than 18 miles per gallon, as calculated by the Environmental Protection Agency. The E.P.A. lists vehicles' ratings at the Web site FuelEconomy.gov.

The old vehicle must be drivable, and it must have been insured by and registered to the same person for at least the last year, preventing shoppers from buying an old car and flipping it to get a discount on a new vehicle. The credit cannot be applied toward a used vehicle or toward new vehicles that cost more than $45,000.

To get the full $4,500 credit, consumers must buy either a new truck or sport utility vehicle that is rated at least five miles per gallon higher than the scrapped vehicle or a passenger car that is rated at least 10 miles per gallon higher than the scrapped vehicle. Because the old vehicle will be destroyed, the credit is given instead of the regular trade-in value — not in addition to it — though some dealers might compensate customers for the vehicle’s scrap value. The rules mean that the owner of a 2003 Chevrolet Trailblazer, which qualifies because it gets about 16 miles per gallon, would get nearly $2,000 less under the program than by making a normal trade-in. Conversely, a 1992 Honda Civic, which is worth only a few hundred dollars, does not qualify because its gas mileage is too high.

"It has to be worth not very much and it also has to get very poor E.P.A. fuel economy," said Jack R. Nerad, the executive editorial director and market analyst for Kelley Blue Book. "It's a fairly narrow profile. You're talking about people who are probably economically challenged to begin with and they have to be able to qualify for a new car purchase in the midst of a deep recession. Those are some difficult parameters."
You can find out more about the program at cars.gov.

Posted on June 27, 2009
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Porsche Sales Plunge 28%

Porsche Building SidePorsche's sales have plunged during the recession. The BBC reports that sales have dropped for Porsche by over 25% in the last nine months compared to a year earlier.
Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.

On a financial basis, its sales fell 15% to 4.6bn euros ($6.4bn; £3.9bn).

The figures do not include those of Volkswagen (VW), in which Porsche increased its stake to 51% in January.
The article says Porsche's Boxster and Cayman models fell the most - they dropped a combined 47%. The article also says the Qatar government is interested in Porsche if they need an investor. Qatar wants to purchase a 25% stake in Porsche.

Photo: Porsche

Posted on June 21, 2009
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GM Sells Saab to Koenigsegg

SaabGM is selling Saab to Koenigsegg, a Swedish luxury sports car maker. The L.A. Times says Koenigsegg is a small company with just 45 employees. Saab has 3,400 employees.
Saab's new owner, Koenigsegg, founded in 1994 by Christian von Koenigsegg, makes the CCXR, a $1.2-million car that produces 1,018 horsepower, as well as the CCX, which has topped 240 mph. Together, the carmaker and its founder will control nearly two-thirds of Saab, with the rest held by Norwegian and U.S. investors.

The purchase is something of a David and Golaith story: Koenigsegg has just 45 employees, compared with 3,400 at Saab, and Von Koenigsegg, at 37 years old, has no experience running an international manufacturing, marking and distribution business.

A price was not disclosed, although GM said the acquisition would be bolstered by $600 million in financing from the European Investment Bank, backed by the government of Sweden. GM said it would provide additional support to help Koenigsegg take over Saab and complete work on vehicles in development.
This is the third major brand GM is selling following its bankruptcy filing. GM has also sold Hummer to a Chinese machinery company and they sold Saturn to the Penske Automotive Group.

You can read more about the Saab sale here, here, here, here, here, here, here and here.

Posted on June 17, 2009
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Homer Simpson Can Be Your Co-Pilot On TomTom Portable Navigation Devices

Tom Tom Homer Simpson


Homer Simpson can help you navigate on TomTom's portable navigation devices. TomTom has joined forces with Locutio Voice Technologies and Fox Licensing to bring the original voice of Homer Simpson to all TomTom devices via download. TomTom users can go to tomtom.com/simpsons and download the voice for $12.95.

In addition to voicing the navigation, Homer will also add his own words of wisdom for TomTom drivers like, "Take the third right." and "We might find an ice cream truck! Mmm...ice cream."

"Celebrity voice downloads are one of the many features TomTom offers to our customers to personalize their driving experience," said Jocelyn Vigreux, president of TomTom Inc. "With Homer Simpson’s voice helping them to navigate their trip, TomTom customers will not only travel safely and with less stress, but will also be highly entertained along the way."

It seems a bit ridiculous to us but some people might want Homer as a co-pilot.

Posted on June 17, 2009
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Study Finds New York, Dallas, Detroit Have Most Road Rage

New York unseated Miami as the least courteous city, according to the fourth annual AutoVantage Road Rage Survey. The Big Apple moved up from its No. 3 ranking last year to claim the distinction. Rounding out the five worst cities for road rage are Dallas/Fort Worth, Detroit, Atlanta and Minneapolis/St. Paul. The survey also named a new city as the most courteous. Portland, Oregon, took the top spot, moving up from No. 2 last year. It was followed by Cleveland, Baltimore, Sacramento and Pittsburgh.
  1. New York
  2. Dallas/Fort Worth
  3. Detroit
  4. Atlanta
  5. Minneapolis/St. Paul
Most Courteous Cities (Least Road Rage)
  1. Portland, Ore.
  2. Cleveland
  3. Baltimore
  4. Sacramento
  5. Pittsburgh
The results from the 2008 and 2007 AutoVantage Road Rage Surveys can be found here.

Posted on June 16, 2009
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House Passes Cash for Clunkers Bill

The House passed by a wide margin the "Cash for Clunkers" bill which offers vouchers up to $4500 to consumers who trade in their old, gas-guzzling cars for more fuel-efficient models. The dealers then make sure that the old cars are destroyed and not put back on the road.
President Barack Obama has encouraged Congress to approve consumer incentives for new car purchases as part of the government's work to restructure General Motors and Chrysler. The House approved the bill 298-119. Supporters pushed for the measure to stimulate car sales and increase the fleet of fuel-efficient vehicles on the nation's highways. The auto industry has sought the incentives after months of poor auto sales. In May, overall sales were 34 percent lower than a year ago.

*****

Under the House bill, dealers participating in the program would receive an electronic government voucher for the trade-in to apply to the purchase or lease of a qualifying vehicle. The old vehicle would be disposed of rather than resold. Car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.

Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
Senator Diane Feinstein (D-California) opposes the bill because she says the mileage upgrade requirements aren't strict enough and the bill does not allow vouchers for people to buy used, fuel-efficient cars. But most of the senate supports the provisions of the bill and President Obama is expected to sign it after the House and Senate versions of the bill are merged into one bill.

Posted on June 13, 2009
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Gas Prices Keep Climbing, Highest Prices in Midwest

The New York Times reports that gas prices have climbed 41 days straight to a new national average of $2.62. The AAA's Fuel Gauge Report has the national average at $2.62 - about $1.4 less than this time last year. Gas is highest right now in the Midwest where there are refinery problems.
Gas prices have risen 41 days in a row, to a national average of almost $2.62 a gallon. That is a sharp increase from the low of $1.62 a gallon that prevailed at the end of last year.

Refinery problems are producing especially high prices in the Midwest, a region that was already reeling from the economic crisis. Michigan, the state with the highest unemployment rate, at 12.9 percent, is now paying the highest gasoline prices, averaging $2.93 a gallon.

The national jump in prices, far larger than the normal seasonal increase, is pulling billions of dollars from the pockets of drivers. It threatens to curtail a modest recovery in consumer spending on items like apparel and electronics.

After increasing 62 percent since December, the price of gasoline is actually lagging behind the increase in the price of oil, which has doubled in the same period, to more than $68 in recent days.
Part of the increase is because of the seasonal spike that happens every time summer approaches and more drivers head off on long trips. Prices should start coming back down by the end of the summer. However, the high price of oil is not good for the economy. If it stays high or climbs higher than gas prices could return to the high $3 and $4 prices we saw over the past few years. This would certainly dampen consumer spending and cause inflation in prices for food and consumer goods.

Posted on June 9, 2009
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Four States Require Smile Free Driver's License Photos

USA Today reports that Arkansas, Indiana, Nevada and Virginia have all passed laws requiring people not to smile in driver's license photos. The reason states are doing this is because smiles mess with special facial recognition software that is being used by state DMVs to check for identity theft.
The serious poses are urged by DMVs that have installed high-tech software that compares a new license photo with others that have already been shot. When a new photo seems to match an existing one, the software sends alarms that someone may be trying to assume another driver's identity.

But there's a wrinkle in the technology: a person's grin. Face-recognition software can fail to match two photos of the same person if facial expressions differ in each photo, says Carnegie Mellon University robotics professor Takeo Kanade.

Dull expressions "make the comparison process more accurate," says Karen Chappell, deputy commissioner of the Virginia DMV, whose no-smile policy took effect in March.
The expressionless photo rules are likely to spread to additional states as use of the technology spreads to other states. USA Today says some states believe its technology can match faces even if people smile.
A total of 31 states do computerized matching of driver's license photos and three others are considering it, says the American Association of Motor Vehicle Administrators. Most say their software matches faces regardless of expressions. "People can smile here in Pennsylvania," state Transportation Department spokesman Craig Yetter says.


Posted on June 6, 2009
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Penske Automotive Group to Buy Saturn From GM

Saturn LogoCNN/Money reports that the Penske Automotive Group, owned by former race car driver Roger Penske, is going to buy Saturn from GM.
The deal gives Penske the rights to the 19-year old brand including its five different models. GM would continue production of only the three highest-selling models: the Aura sedan, and the Vue and Outlook cross-over SUVs, for the next two years. The Saturn Sky and Astra models will be discontinued.

Penske, which has no Saturn dealerships in its network, will act only as a distributor for Saturn cars and parts to the brand's dealer network. Like almost all car dealerships in the U.S., Saturn dealerships are independently owned businesses.

Penske has no plans to open any Saturn dealerships, said Anthony Pordon, senior vice president at Penske Automotive.
CNN and the WSJ say the deal will save 13,000 jobs at Saturn and its approximately 350 dealers nationwide.

A press release about the deal has been posted here on Penske's website.

Posted on June 5, 2009
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Porsche Partners With NYC Street Artists For Porsche 911 Hoods

Painted Porsche Hood


Porsche Cars North America has partnered with five New York City street artists for custom painted Porsche 911 hoods. The pieces are part of "Whole In The Wall: 1970-Now," a group show of 150 mostly contemporary works by 19 U.S., European and South American "street artists."

All five works (spray paint on metal, 52" x 53" inches), are being sold for the benefit of CITYarts, a charity dedicated to engaging city children in constructive public art projects. One hundred percent of the proceeds of all five works will be paid to CITYarts. Prices for the hoods range from $10,000 to $14,000. These works are presented courtesy of the artists and Helenbeck Gallery, the presenter of "Whole In The Wall." Sales inquiries regarding the works can be directed to: info@helenbeckgallery.com.

Posted on June 2, 2009
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GM Selling Hummer Brand to Chinese Machinery Company

HummerGM, which recently filed bankruptcy and was removed from the Dow Jones Industrial Average, plans to sell its Hummer brand to a Chinese machinery company named Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. The Detroit News says the Hummer's headquarters will remain based in the United States.
"We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.," Tengzhong CEO Yang Yi said in a prepared statement.

The Hummer headquarters and operations will remain in the U.S., and executives plan to expand the dealer network globally --including new and underserved Chinese markets.

"With Tengzhong's investment and strong support, we will be able to make our visions a reality," Hummer CEO James Taylor said in a prepared statement.
The L.A. Times says Tengzhong looks to expand the Hummer business both in the U.S. and internationally. They also plan to invest in developing more fuel-efficient Hummers.
Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company that makes road, construction and energy industry equipment. It said it was looking to grow Hummer both in the U.S. and overseas markets, particularly China.

Hummer "is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business," Yang Yi, chief executive of Tengzhong, said in a statement.

He said Tengzhong plans to invest in research and development to produce Hummer-branded products such as more fuel-efficient vehicles for the U.S. market.
There are a few more stories on GM selling Hummer here, here, here, here, here, here, here, here, here, here and here.

Posted on June 2, 2009
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Will Americans Drop the New Car Habit?

With Chrysler in bankruptcy, GM heading for bankruptcy and the unemployment numbers at a high level, automaker are worried that Americans are about to break their new car habit.
In recent years Americans appeared to be hooked on it and took advantage of home equity loans, easy credit and cheap short-term lease deals to send new-car sales to levels of more than 17 million a year. Now the market has collapsed by 46 percent to below 10 million, as people are making do with the cars they have, leaving the industry to debate — and worry — about what the new normal will be once the recession ends.

Some say the downturn is temporary and that sales will spring back in a few years. Others believe Americans will rethink whether they need so many cars, particularly new ones. The answer will be important to the Obama administration as it prepares to put G.M. into bankruptcy on Monday. After the company emerges from bankruptcy, the federal government will own about 70 percent of it, in return for $50 billion in taxpayer aid. G.M. has already received about $20 billion in federal help.

The Treasury Department’s advisers, who initially expected auto sales to pick up late next year, now foresee no jump in demand this year or in 2010. And even five years out, they expect annual sales to be about 15 million, still well below the peaks of this decade.

*****

Donald Grimes, an economist at the University of Michigan, is forecasting the lowest sales for the driving-age population this year since 1970. From 1970 to 2001, there were 0.76 vehicles sold per driver in the United States. Now that figure has dropped to 0.4 vehicles per driver, and he does not see much of a rebound in coming years. The swift decline has spooked the industry. "I don't think there has ever been a period in our history like this," Josephine Cooper, Toyota’s group vice president for government and industry affairs, said of her company, which lost $7.1 billion in the first three months of the year. "It is very, very sobering."
It's hard to say what consumers will do when the economy turns around. But many city dwellers have decided that owning car is just too expensive and are using more public transportation. That is not an option in much of the southern United States and in the suburbs of California. Other than a few buses, public transportation is not available in much of the suburbs. And it's hard to take three kids to soccer practice, ballet classes and cub scouts on public transport. It's clear that for the next few years, people are going to be keeping their cars longer and avoiding new car debt.

Posted on May 30, 2009
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