White House: Rule backed by automakers representing 90% of vehicles sold
President Obama, flanked by the chiefs of U.S. and import-brand automakers, today proposed doubling corporate average fuel economy standards to 54.5 mpg by 2025.
The targets, if finalized next July as expected, would continue the pace at which mileage standards were raised by the Obama administration from 2012-16. The current standard requires a corporate average of 35.5 mpg by 2016, up from 27.3 mpg for 2011 models.
The latest targets represent one of the biggest hikes in fuel-efficiency goals since the government created fuel-efficiency standards in the 1970s to reduce dependence on foreign oil.
The Obama plan -- endorsed by leading auto manufacturers, California state regulators, the UAW, environmentalists and consumer advocates -- would require a 5 percent annual improvement in the fuel economy of passenger cars from 2017-25.
Mileage standards for light trucks would increase 3.5 percent a year from 2017-21, with a 5 percent yearly increase tentatively planned for the remainder of the period.
The new goals for light trucks represent a victory for Detroit automakers, which rely on a heavier mix of large pickup and SUV models for sales and profits.
The administration, bowing to the industry's requests, also agreed to a mid-course review of the standards starting in 2018 to consider their impact on manufacturers' costs, technology and sales.
The White House said the proposal was backed by automakers that account for more than 90 percent of all vehicles sold in the United States.
Ford Motor Co.'s Alan Mulally, General Motors' Dan Akerson and Chrysler Group's Sergio Marchionne were joined by UAW President Bob King at the event. Leaders from BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo also attended.
Savings
"This agreement on fuel standards represents the single most important step we've taken as a nation to reduce our dependence on foreign oil," Obama said.
"These outstanding companies are committing to do a lot more," he said. "By 2025, the average fuel economy of their vehicles will almost double to 55 mpg. This is an incredible commitment that they've made.... They wouldn't be doing it if they didn't think it was good for business and good for America."
The administration said the requirements will save U.S. households $1.7 trillion in fuel costs and result in an average fuel savings of over $8,000 per vehicle by 2025.
The proposal will cut U.S. oil consumption by 12 billion barrels. By 2025, oil consumption would be reduced by 2.2 million barrels a day - or as much as half of the oil imported daily from OPEC, the White House estimates.
The standards will also curb carbon pollution by cutting more than 6 billion metric tons of greenhouse gas over the life of the program. The White House says that is more than the amount of carbon dioxide emitted by the United States last year.
The White House, under pressure from California and environmental groups, originally proposed a fuel economy target of more than 62 mpg by 2025.
The rule "was weakened by auto-industry lobbying," Dan Becker, head of the Washington-based Safe Climate Campaign, told Bloomberg News.
A path forward
In the past, Detroit and other automakers have vigorously opposed tougher fuel economy rules, claiming consumers would not pay higher prices for the technology required to meet higher standards. They also claimed safety would be compromised.
But the 2009 government-led bailout of GM and Chrysler -- as well as the emergence and growing consumer acceptance of hybrids, electric vehicles, and other technology -- left automakers little choice but to back the plan.
"This proposed rule presents a path forward that greatly improves fuel economy while preserving customer choice and future industry growth," GM said in a statement that was largely shared by other automakers.
Ford said it supported the new rule, in principle, because it protected jobs, will provide customers with a full range of affordable vehicle choices, and benefits the environment.
"This agreement provides the regulatory certainty we need to design and build fuel-efficient vehicles during the next 14 years," Mulally said in a statement.
VW dissents
Volkswagen AG said today it would not endorse the proposal because it places an unfair burden on makers of passenger cars, while allowing special flexibility for manufacturers of heavier light trucks. Mercedes-Benz expressed similar concerns.
"The largest trucks carry almost no burden for the 2017-2020 timeframe, and are granted numerous ways to mathematically meet targets in the outlying years without significant real-world gains," VW said in a statement. "The proposal encourages manufacturers and customers to shift toward larger, less efficient vehicles, defeating the goal of reduced greenhouse gas emissions."
VW also opposes the deal because it does not encourage wider use of diesel engines, which represent more than 20 percent of the automaker's growing U.S. sales.
"If one-third of the vehicles on the road today were clean diesel, the US would save 1.4 million barrels of oil a day," VW said in a statement.
White House officials said today the proposal is designed to encourage the introduction of new alternative-fuel technologies and that diesel engines are already established in the market.
Other automakers, while backing the overall deal, also expressed reservations about portions of the plan.
"The proposed fuel economy standards for 2017-2025 are extremely challenging – especially for smaller companies and those that primarily sell passenger cars, such as Mazda – but we are committed to meeting them," Jim O'Sullivan, CEO of Mazda North American Operations, said in a statement.
Photo credit: Whitehouse.gov
California support
The California Air Resources Board's decision to back the proposed standards also played a key role in winning industry support for the deal.
In the past, California has pursued its own fuel economy regulations that were often more stringent than federal standards and largely opposed by automakers.
The Detroit News reported that the talks with automakers, California officials and the White House went past 1 a.m. today. Automakers used the last-minute discussions to seek assurances that California will abide by the results of the mid-term review that will ensure that the 2022-2025 rules can be met, the paper said.
Automakers sought the opportunity to sue if California attempts to enact its own tougher rules in case the federal government opts to lower the requirements in the final years, the News said.
It wasn't immediately clear how the issue was resolved.
Many automakers today praised the Obama administration for crafting a new deal that sets a single national standard for fuel economy improvements.
In a prepared statement, Nissan endorsed the "one national program."
Scott Becker, senior vice president of administration and finance for Nissan Americas, said the deal "supports long-term planning and technology development."
John Mendel, head of sales for American Honda, said the automaker appreciated "the state of California's decision to harmonize its regulations with federal initiatives."
Chrysler said it supported "in principle" the proposed new fuel economy rules.
"We remain committed to the goal of a single, national, and coordinated program that will reduce greenhouse gas emissions, and enhance our country's energy security," Chrysler said in a statement.
Automakers are expected to meet the new rules by adopting more light-weight materials, wider use of alternative powertrains such as gasoline and diesel-electric hybrids and batteries, and the adoption of other technology.
"There is still a great deal of uncertainty as to how the market will respond and what vehicle technologies consumers will embrace, which is why we are rolling out and testing a range of alternative fuel options," James Lentz, head of Toyota Motor Sales, said in a statement.
Credits and incentives
As part of the rules announced today, the administration said it was considering a number of incentive programs to encourage early adoption and introduction of advanced, 'game-changing' technologies.
They include incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles; incentives for advanced technology systems for large pickups, such as hybrid powertrains; and credits for technologies that reduce carbon dioxide emissions and fuel economy improvements that are not captured by the standards' test procedures.
The Environmental Protection Agency also plans to propose credits for improvements in air conditioning systems to encourage greater efficiency and use of alternative refrigerants that lower global warming.
The EPA will also weigh new credits for vehicles powered by compressed natural gas, and allow automakers to bank and trade credits, including a one-time, carry-forward of unused credits from the 2010-2016 model years through the 2021 model year, the White House said.
Friday, July 29, 2011
Wednesday, July 27, 2011
White House pushes automakers to agree to 54.5 mpg target by 2025
The latest White House proposal calls for a 5 percent annual mileage increase for cars from 2017-2025. For light trucks and SUVs, the average yearly increase would be 3.5 percent from 2017-2021. After that, the annual figure would rise by 5 percent, industry and congressional sources say.
The White House is pushing automakers to agree by tomorrow to a corporate average fuel economy target of 54.5 mpg by 2025 -- a figure 1.7 mpg less than the 56.2 mpg standard it floated earlier this month.
The easing of the White House plan stems from a concession to makers of light trucks and SUVs, and particularly larger vehicles in that segment, such as Ford's F-150 pickup, sources said.
The latest White House proposal, the most definitive of any it has put forth, calls for a 5 percent annual mileage increase for cars from 2017-2025, said industry and congressional officials who asked not to be named because their discussions with the White House are confidential.
For light trucks and SUVs, the average yearly increase would be 3.5 percent from 2017-2021. After that, the annual figure would rise by 5 percent, industry and congressional sources said.
Some lawmakers have been briefed this week by the White House on the status of its negotiations with automakers.
Within the light truck class, the average annual increase would be lower than 3.5 percent for heavier vehicles and higher than 3.5 percent for lighter vehicles, industry officials said.
Mid-course review
Under the White House proposal, the targets would be subject to a mid-course review to be completed well before 2022, they said.
That means both the 5 percent annual increase in fuel efficiency for cars and plans to ratchet up the 3.5 percent figure for trucks and SUVs would be evaluated for their impact on industry costs, technology and sales.
The administration wants to submit an agreement with automakers and California state regulators to the U.S. Office of Management and Budget for review in coming weeks, before issuing it as a proposal in September.
The final rule is to be adopted in July 2012, the White House has said.
The White House wants the industry as a whole -- particularly Ford Motor Co. and General Motors -- to agree to the latest proposal, which was made this week to individual automakers one-by-one.
The rest of the industry is leaning toward following the lead of Ford and GM, sources said.
A White House spokesman declined comment today on the new proposal, which was reported earlier by The Wall Street Journal.
Progress reported
The 2017-25 targets would build on a standard of 35.5 mpg for 2016 that was agreed to by the Obama administration, automakers and California regulators.
"Ongoing discussions are yielding progress and we appreciate the careful and constructive approach by all parties," GM spokesman Greg Martin said today. "We are hopeful there is a path forward that greatly improves vehicle fuel economy while preserving customer choice and future industry growth."
Ford declined to comment today but the automaker has issued conciliatory statements about the White House's evolving plan in recent weeks.
The California Air Resources Board, which can legally walk away from any agreement between the Obama administration and automakers, did not immediately comment today.
Environmentalists, consumer advocates and science groups have been pushing for a 2025 target of between 56 mpg and 62 mpg.
The White House is pushing automakers to agree by tomorrow to a corporate average fuel economy target of 54.5 mpg by 2025 -- a figure 1.7 mpg less than the 56.2 mpg standard it floated earlier this month.
The easing of the White House plan stems from a concession to makers of light trucks and SUVs, and particularly larger vehicles in that segment, such as Ford's F-150 pickup, sources said.
The latest White House proposal, the most definitive of any it has put forth, calls for a 5 percent annual mileage increase for cars from 2017-2025, said industry and congressional officials who asked not to be named because their discussions with the White House are confidential.
For light trucks and SUVs, the average yearly increase would be 3.5 percent from 2017-2021. After that, the annual figure would rise by 5 percent, industry and congressional sources said.
Some lawmakers have been briefed this week by the White House on the status of its negotiations with automakers.
Within the light truck class, the average annual increase would be lower than 3.5 percent for heavier vehicles and higher than 3.5 percent for lighter vehicles, industry officials said.
Mid-course review
Under the White House proposal, the targets would be subject to a mid-course review to be completed well before 2022, they said.
That means both the 5 percent annual increase in fuel efficiency for cars and plans to ratchet up the 3.5 percent figure for trucks and SUVs would be evaluated for their impact on industry costs, technology and sales.
The administration wants to submit an agreement with automakers and California state regulators to the U.S. Office of Management and Budget for review in coming weeks, before issuing it as a proposal in September.
The final rule is to be adopted in July 2012, the White House has said.
The White House wants the industry as a whole -- particularly Ford Motor Co. and General Motors -- to agree to the latest proposal, which was made this week to individual automakers one-by-one.
The rest of the industry is leaning toward following the lead of Ford and GM, sources said.
A White House spokesman declined comment today on the new proposal, which was reported earlier by The Wall Street Journal.
Progress reported
The 2017-25 targets would build on a standard of 35.5 mpg for 2016 that was agreed to by the Obama administration, automakers and California regulators.
"Ongoing discussions are yielding progress and we appreciate the careful and constructive approach by all parties," GM spokesman Greg Martin said today. "We are hopeful there is a path forward that greatly improves vehicle fuel economy while preserving customer choice and future industry growth."
Ford declined to comment today but the automaker has issued conciliatory statements about the White House's evolving plan in recent weeks.
The California Air Resources Board, which can legally walk away from any agreement between the Obama administration and automakers, did not immediately comment today.
Environmentalists, consumer advocates and science groups have been pushing for a 2025 target of between 56 mpg and 62 mpg.
Saturday, July 23, 2011
Mercedes to add fifth model at U.S. factory
Daimler AG will add a fifth Mercedes-Benz model at its U.S. assembly plant near Tuscaloosa, Ala., company sources told Automotive News Europe.
The model will be a variant of the Mercedes M-class crossover with a coupelike roofline. Production will likely start as soon as 2015, the sources said.
The new M-class body style will be positioned against the BMW X6 built in Spartanburg, S.C., and likely will be called MLC.
Mercedes is adding the M-class variant as part of a $2 billion investment in the Alabama site that was unveiled on Thursday. That project will pave the way for C-class production while providing tooling for new generations of the R class and G class as well as a redesigned M class that went into production this week.
Mercedes' coupe-like M class will rival the BMW X6, shown.
An expanded M-class lineup would fit with Mercedes' original vision for the factory before the first M class was built in Alabama 14 years ago. Executives said then the "M" designation would eventually represent a family of vehicles beyond the inaugural SUV. To date, the M's variations have been primarily engine options.
Mercedes has a precedent for charting product plans more than four years out. In 2009, the company announced its intention to build the C class in Alabama – starting in 2014.
A Mercedes spokesman declined to comment on future product plans, nor on how much Tuscaloosa's capacity and headcount will be increased in the future. Production at the plant is already close to its 160,000-unit annual capacity, and the factory employs 2,800 people.
Mercedes' internal development code for the new M-class variant is C166.
Mercedes is battling German rival BMW for the title of best-selling luxury brand in the United States, following an 11-year reign by Toyota's Lexus.
Through June, BMW sold 113,705 of its namesake vehicles in the United States. Mercedes, not counting its Sprinter commercial vans, had 110,926 sales. Lexus, hampered by the March earthquake in Japan, sold 88,010 vehicles.
Last year, BMW globally sold 46,404 units of the X6 and 102,178 of its sibling model, the X5, also built in Spartanburg.
The model will be a variant of the Mercedes M-class crossover with a coupelike roofline. Production will likely start as soon as 2015, the sources said.
The new M-class body style will be positioned against the BMW X6 built in Spartanburg, S.C., and likely will be called MLC.
Mercedes is adding the M-class variant as part of a $2 billion investment in the Alabama site that was unveiled on Thursday. That project will pave the way for C-class production while providing tooling for new generations of the R class and G class as well as a redesigned M class that went into production this week.
Mercedes' coupe-like M class will rival the BMW X6, shown.
An expanded M-class lineup would fit with Mercedes' original vision for the factory before the first M class was built in Alabama 14 years ago. Executives said then the "M" designation would eventually represent a family of vehicles beyond the inaugural SUV. To date, the M's variations have been primarily engine options.
Mercedes has a precedent for charting product plans more than four years out. In 2009, the company announced its intention to build the C class in Alabama – starting in 2014.
A Mercedes spokesman declined to comment on future product plans, nor on how much Tuscaloosa's capacity and headcount will be increased in the future. Production at the plant is already close to its 160,000-unit annual capacity, and the factory employs 2,800 people.
Mercedes' internal development code for the new M-class variant is C166.
Mercedes is battling German rival BMW for the title of best-selling luxury brand in the United States, following an 11-year reign by Toyota's Lexus.
Through June, BMW sold 113,705 of its namesake vehicles in the United States. Mercedes, not counting its Sprinter commercial vans, had 110,926 sales. Lexus, hampered by the March earthquake in Japan, sold 88,010 vehicles.
Last year, BMW globally sold 46,404 units of the X6 and 102,178 of its sibling model, the X5, also built in Spartanburg.
Thursday, July 21, 2011
This time, GM takes low-key approach to mild-hybrid technology
Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
Monday, July 18, 2011
Glitch-hunting Hyundai sweats the details
Rapid response to problems is paying off
Hyundai's best engineers were initially baffled by the reports.
Customers from Australia were complaining that the printing on interior door trim items such as window and lock controls was inexplicably smearing like wet paint.
It was 2009, and the South Korean automaker was well on its way to becoming a global powerhouse, thanks to huge strides in improving quality. Executive Vice President Shin Myeong-ki, chief of quality control, could ill afford any slip that would slow that momentum.
Tedious detective work uncovered the culprit -- and is an example of how an increasingly quality-conscious Hyundai Motor Co., fighting hard to bury memories of shoddily built cars, is sniffing out glitches one by one. There were only two cases from Down Under, but Shin ordered a full investigation.
"When the complaints came in, we were worried that it was a worldwide problem with the ink," Shin recalled in an interview at Hyundai's global headquarters here.
Engineers followed their noses: A certain perfume brand was reacting with the ink like solvent.
"But there are so many different perfumes, we had to buy boxes of different brands to test which one it was. Eventually we isolated it," says Shin, who politely declined to identify the offending fragrance. Hyundai changed the ink formula and today still tests cars for reactions to perfumes.
Sweating such details is one way Hyundai has transformed its image from a laggard in quality and reliability to an industry leader in 10 years. The work has paid off in top-tier recognition in assessments from J.D. Power and Associates, Consumer Reports and other third parties.
In 2011, Hyundai tumbled in the J.D. Power Initial Quality Study, falling to No. 11 from No. 7 in 2010 and No. 4 in 2009. The slips were attributed mostly to the launches of several new models over the past two years, including the Genesis Coupe in 2009 and the Elantra compact and Sonata sedan in 2010. But this year, Hyundai still cracked the top 10 for the first time in Power's Vehicle Dependability Study, edging Honda to rank third among nonpremium brands.
"This remains key for Hyundai's continued success as reliability/durability remains by far the most frequently mentioned factor by consumers when choosing a new vehicle," Raffi Festekjian, Power's director of automotive research, said of Hyundai's dependability study showing.
Hyundai's obsession with customer feedback highlights the growing importance of "soft quality," or customer perception of quality through touch and feel, fit and finish, and intuitive controls.
When Shin logs into e-mail each morning, the first thing he checks is a database of field complaints filed the previous day by customers and dealers worldwide.
Today's automakers generally are beyond bolts falling off or cars breaking down. The new frontier is perceived quality -- pre-empting costumer complaints or catching them before they multiply.
Failure to alert headquarters of trouble in the field is one reason Toyota Motor Corp. suffered last year's rash of recalls. The independent North American Quality Advisory Panel hired by Toyota to assess its problems zeroed in on that fact.
"Design quality issues, and drivers' complaints about them, will increasingly differentiate manufacturers in independent quality ratings," the panel warned in its May 23 report to Toyota.
"Avoiding these kinds of design problems is becoming more and more important to a vehicle's acceptability," the report said. "Avoiding such design quality problems requires monitoring systems to not only hear customers' voices but also to listen to them."
For Hyundai, that's preaching to the choir.
But it wasn't always that way. In the mid-1990s, Hyundai was nearly chased out of the United States because lackluster quality repelled customers otherwise won over by low sticker prices.
The road to redemption began in 1999, with the appointment of Chairman Chung Mong-koo.
Perception vs. reality
Chung put engineers, not businessmen, in charge. Quality task forces were set up in plants. The company focused on achieving top scores in the J.D. Power assessments.
It implemented the Motorola-pioneered Six Sigma business strategy for quality improvement. And Hyundai added more quality-control stations along assembly lines. Buffers at the end of lines provided room to adjust assembly speed and let workers fix problems.
The changes were a must for Hyundai to make good on the 100,000-mile powertrain warranty the company introduced in 1998 to lure customers and motivate its engineers.
The overhaul transformed Hyundai from a wannabe into one of the world's biggest manufacturers. Today, U.S. sales are booming, and the company has enough North American production capacity to lift 2011 sales above 600,000 units for a record.
But even Hyundai concedes its reputation for quality still trails the improvements.
"These days, many people say Hyundai's quality has improved," says Vice Chairman Shin Jong-woon, an aerospace engineer by training who oversees quality management and product planning at Hyundai and its Kia Motors Corp. affiliate. "But the perception has not quite caught up to the quality improvements."
Shin Jong-woon took over quality control at both brands in 2002, knowing he had to do something. So he began erecting a quality pyramid -- a kind of blueprint for building up the Hyundai brand.
Hyundai's best engineers were initially baffled by the reports.
Customers from Australia were complaining that the printing on interior door trim items such as window and lock controls was inexplicably smearing like wet paint.
It was 2009, and the South Korean automaker was well on its way to becoming a global powerhouse, thanks to huge strides in improving quality. Executive Vice President Shin Myeong-ki, chief of quality control, could ill afford any slip that would slow that momentum.
Tedious detective work uncovered the culprit -- and is an example of how an increasingly quality-conscious Hyundai Motor Co., fighting hard to bury memories of shoddily built cars, is sniffing out glitches one by one. There were only two cases from Down Under, but Shin ordered a full investigation.
"When the complaints came in, we were worried that it was a worldwide problem with the ink," Shin recalled in an interview at Hyundai's global headquarters here.
Engineers followed their noses: A certain perfume brand was reacting with the ink like solvent.
"But there are so many different perfumes, we had to buy boxes of different brands to test which one it was. Eventually we isolated it," says Shin, who politely declined to identify the offending fragrance. Hyundai changed the ink formula and today still tests cars for reactions to perfumes.
Sweating such details is one way Hyundai has transformed its image from a laggard in quality and reliability to an industry leader in 10 years. The work has paid off in top-tier recognition in assessments from J.D. Power and Associates, Consumer Reports and other third parties.
In 2011, Hyundai tumbled in the J.D. Power Initial Quality Study, falling to No. 11 from No. 7 in 2010 and No. 4 in 2009. The slips were attributed mostly to the launches of several new models over the past two years, including the Genesis Coupe in 2009 and the Elantra compact and Sonata sedan in 2010. But this year, Hyundai still cracked the top 10 for the first time in Power's Vehicle Dependability Study, edging Honda to rank third among nonpremium brands.
"This remains key for Hyundai's continued success as reliability/durability remains by far the most frequently mentioned factor by consumers when choosing a new vehicle," Raffi Festekjian, Power's director of automotive research, said of Hyundai's dependability study showing.
Hyundai's obsession with customer feedback highlights the growing importance of "soft quality," or customer perception of quality through touch and feel, fit and finish, and intuitive controls.
When Shin logs into e-mail each morning, the first thing he checks is a database of field complaints filed the previous day by customers and dealers worldwide.
Today's automakers generally are beyond bolts falling off or cars breaking down. The new frontier is perceived quality -- pre-empting costumer complaints or catching them before they multiply.
Failure to alert headquarters of trouble in the field is one reason Toyota Motor Corp. suffered last year's rash of recalls. The independent North American Quality Advisory Panel hired by Toyota to assess its problems zeroed in on that fact.
"Design quality issues, and drivers' complaints about them, will increasingly differentiate manufacturers in independent quality ratings," the panel warned in its May 23 report to Toyota.
"Avoiding these kinds of design problems is becoming more and more important to a vehicle's acceptability," the report said. "Avoiding such design quality problems requires monitoring systems to not only hear customers' voices but also to listen to them."
For Hyundai, that's preaching to the choir.
But it wasn't always that way. In the mid-1990s, Hyundai was nearly chased out of the United States because lackluster quality repelled customers otherwise won over by low sticker prices.
The road to redemption began in 1999, with the appointment of Chairman Chung Mong-koo.
Perception vs. reality
Chung put engineers, not businessmen, in charge. Quality task forces were set up in plants. The company focused on achieving top scores in the J.D. Power assessments.
It implemented the Motorola-pioneered Six Sigma business strategy for quality improvement. And Hyundai added more quality-control stations along assembly lines. Buffers at the end of lines provided room to adjust assembly speed and let workers fix problems.
The changes were a must for Hyundai to make good on the 100,000-mile powertrain warranty the company introduced in 1998 to lure customers and motivate its engineers.
The overhaul transformed Hyundai from a wannabe into one of the world's biggest manufacturers. Today, U.S. sales are booming, and the company has enough North American production capacity to lift 2011 sales above 600,000 units for a record.
But even Hyundai concedes its reputation for quality still trails the improvements.
"These days, many people say Hyundai's quality has improved," says Vice Chairman Shin Jong-woon, an aerospace engineer by training who oversees quality management and product planning at Hyundai and its Kia Motors Corp. affiliate. "But the perception has not quite caught up to the quality improvements."
Shin Jong-woon took over quality control at both brands in 2002, knowing he had to do something. So he began erecting a quality pyramid -- a kind of blueprint for building up the Hyundai brand.
Friday, July 15, 2011
FREE Wiring Diagrams - Automotive Electrical
Download Free Automotive Wiring Diagrams Free
www.freeautomechanic.com/wiringdiagrams.html
Need a wiring diagram for your car, truck or auto lighting or engine. We even offer Stereo wiring diagrams... The images are in ".pdf " format and require Adobe Acrobat Reader to be viewed at there highest quality. This will insure the ability to read the automotive wiring diagram with ease. Adobe Acrobat Reader is available as a free download at Adobe.com
As this is a free service it receives an overwhelming amount of requests and may take up to a week or longer for a response. Just submit a request for the wiring diagram you want (ex. "Need wiring diagram for charging system")
we will provide you with the a basic automotive wiring diagram in an email that can be viewed, saved or printed for future use . Automotive basic wiring diagrams are available free for domestic and asian vehicles. Some european wiring diagrams are available also.
Available Wiring Diagrams for Most cars and Trucks:
Air Conditioning
Anti-Lock Brakes
Anti-Theft
Body Computer
Computer Data Lines
Cruise Control
Defogger
Door Locks
Electronic Power Steering
Electronic Suspension
Engine Controls
Exterior Lights
Ground Distribution
Headlights
Horns
Instrument Cluster
Interior Lights
Memory Systems
Mirrors
Power Distribution
Power Windows
Seats
Shift Interlock
Sound Systems
Starting/Charging
Supplemental Restraints
Transmissions
Warning System
www.freeautomechanic.com/wiringdiagrams.html
Need a wiring diagram for your car, truck or auto lighting or engine. We even offer Stereo wiring diagrams... The images are in ".pdf " format and require Adobe Acrobat Reader to be viewed at there highest quality. This will insure the ability to read the automotive wiring diagram with ease. Adobe Acrobat Reader is available as a free download at Adobe.com
As this is a free service it receives an overwhelming amount of requests and may take up to a week or longer for a response. Just submit a request for the wiring diagram you want (ex. "Need wiring diagram for charging system")
we will provide you with the a basic automotive wiring diagram in an email that can be viewed, saved or printed for future use . Automotive basic wiring diagrams are available free for domestic and asian vehicles. Some european wiring diagrams are available also.
Available Wiring Diagrams for Most cars and Trucks:
Air Conditioning
Anti-Lock Brakes
Anti-Theft
Body Computer
Computer Data Lines
Cruise Control
Defogger
Door Locks
Electronic Power Steering
Electronic Suspension
Engine Controls
Exterior Lights
Ground Distribution
Headlights
Horns
Instrument Cluster
Interior Lights
Memory Systems
Mirrors
Power Distribution
Power Windows
Seats
Shift Interlock
Sound Systems
Starting/Charging
Supplemental Restraints
Transmissions
Warning System
Wednesday, July 13, 2011
VW, Ford lead in U.S. auto quality survey
Less than a month after Ford Motor Co. was pummeled in one quality survey, a second survey has ranked it the No. 2 highest-quality U.S. automaker.
The second survey, released by Strategic Vision Inc. on Tuesday, said that customers' overall feeling about their vehicles is more important than particular problems.
Volkswagen was the top-ranked car company in the survey, helped by the Golf, Jetta and Tiguan models.
Ford owners reported more problems with their vehicles than the industry average, but rated the overall quality of the vehicles highly, according to the survey. They were particularly happy with the Ford Mustang coupe and convertible, the Flex, and the F-150 and 250/350 pickup trucks.
"People think of quality in a very different sense than just counting problems," said Christopher Chaney, a Strategic Vision vice president in charge of automotive research.
A company's use of new technology or styling can also play important roles, he said.
On a statistical basis, Ford tied with American Honda and Nissan Motor Corp. for the No. 2 ranking. Still, Ford fared better in the Strategic Vision study than it did in a survey by J.D. Power and Associates last month, where it fell to 23rd place, its lowest ranking in a decade. The J.D. Power survey records difficulties faced by new car owners in the first 90 days of ownership.
Ford has recently been criticized for a clunky control system for its radios and difficult-to-use technology.
Strategic Vision survey
Strategic Vision asked car owners to rate all aspects of ownership, from the process of buying a vehicle to its performance. The 2011 survey included 37,069 buyers of 2011 model-year vehicles from September to December 2010.
Corporation Total quality score Percent reporting
Volkswagen of America 881 27
Ford Motor Co* 863 28
American Honda Motor* 862 19
Nissan Motor Corp* 862 21
INDUSTRY AVERAGE 861 24
General Motors Co** 860 27
Toyota Motor Sales 854 20
Chrysler Group 853 28
Hyundai Motor America 852 28
* Statistical tie
** Excludes Saab
The Strategic Vision survey asks car owners to rate all aspects of ownership, from the process of buying a vehicle to its performance. The 2011 survey included 37,069 buyers of 2011 vehicles from September to December 2010. This is the sixteenth year of the survey, which is paid for by manufacturers.
Surveys like the Strategic Vision survey and the J.D. Power survey that attempt to gauge consumer sentiment are key pieces of industry marketing materials and help shape consumer opinion. They also help set resale values and warranty costs.
The idea that a car owner's overall experience could trump minor problems with a vehicle rests on the premise that there are few serious problems, those problems are typically fixed immediately at the dealership, and styling details can have significant impact, according to the survey.
Besides Ford, Volkswagen of America and Hyundai Motor America have also benefited from an owner's overall experience, according to the survey.
On average, 30 percent of owners reported problems with Volkswagen's Jetta and Hyundai's Sonata, compared with 22 percent of owners reporting problems for all mid-size cars. Even so, the 2011 models of both vehicles had record sales, according to the survey. The higher incidence of problems didn't matter because Jetta and Sonata owners were happy with their overall purchase, according to the survey.
Hyundai ranked 8th -- last place -- because some of its non-Sonata models were poorly received and the period of the survey excluded some new models, Chaney said.
The second survey, released by Strategic Vision Inc. on Tuesday, said that customers' overall feeling about their vehicles is more important than particular problems.
Volkswagen was the top-ranked car company in the survey, helped by the Golf, Jetta and Tiguan models.
Ford owners reported more problems with their vehicles than the industry average, but rated the overall quality of the vehicles highly, according to the survey. They were particularly happy with the Ford Mustang coupe and convertible, the Flex, and the F-150 and 250/350 pickup trucks.
"People think of quality in a very different sense than just counting problems," said Christopher Chaney, a Strategic Vision vice president in charge of automotive research.
A company's use of new technology or styling can also play important roles, he said.
On a statistical basis, Ford tied with American Honda and Nissan Motor Corp. for the No. 2 ranking. Still, Ford fared better in the Strategic Vision study than it did in a survey by J.D. Power and Associates last month, where it fell to 23rd place, its lowest ranking in a decade. The J.D. Power survey records difficulties faced by new car owners in the first 90 days of ownership.
Ford has recently been criticized for a clunky control system for its radios and difficult-to-use technology.
Strategic Vision survey
Strategic Vision asked car owners to rate all aspects of ownership, from the process of buying a vehicle to its performance. The 2011 survey included 37,069 buyers of 2011 model-year vehicles from September to December 2010.
Corporation Total quality score Percent reporting
Volkswagen of America 881 27
Ford Motor Co* 863 28
American Honda Motor* 862 19
Nissan Motor Corp* 862 21
INDUSTRY AVERAGE 861 24
General Motors Co** 860 27
Toyota Motor Sales 854 20
Chrysler Group 853 28
Hyundai Motor America 852 28
* Statistical tie
** Excludes Saab
The Strategic Vision survey asks car owners to rate all aspects of ownership, from the process of buying a vehicle to its performance. The 2011 survey included 37,069 buyers of 2011 vehicles from September to December 2010. This is the sixteenth year of the survey, which is paid for by manufacturers.
Surveys like the Strategic Vision survey and the J.D. Power survey that attempt to gauge consumer sentiment are key pieces of industry marketing materials and help shape consumer opinion. They also help set resale values and warranty costs.
The idea that a car owner's overall experience could trump minor problems with a vehicle rests on the premise that there are few serious problems, those problems are typically fixed immediately at the dealership, and styling details can have significant impact, according to the survey.
Besides Ford, Volkswagen of America and Hyundai Motor America have also benefited from an owner's overall experience, according to the survey.
On average, 30 percent of owners reported problems with Volkswagen's Jetta and Hyundai's Sonata, compared with 22 percent of owners reporting problems for all mid-size cars. Even so, the 2011 models of both vehicles had record sales, according to the survey. The higher incidence of problems didn't matter because Jetta and Sonata owners were happy with their overall purchase, according to the survey.
Hyundai ranked 8th -- last place -- because some of its non-Sonata models were poorly received and the period of the survey excluded some new models, Chaney said.
Sunday, July 10, 2011
Toyota sees Prius beating 2010 U.S. sales as supply grows
Toyota Motor Corp., with as little as one day's worth of Prius cars on dealers' lots after the March earthquake, says sales of the hybrid will still beat 2010.
Asia's largest automaker is racing to replenish supply after the lack of inventory led to a 61 percent drop in Prius deliveries in the U.S. in June, to the lowest level since September 2004. Almost half of Prius models are sold in the U.S., where the car accounts for more than 60 percent of hybrids sold since 1999, according to data supplied by automakers.
Prius, the company's No. 3 selling car after the Corolla and Camry, is the fastest-growing Toyota nameplate this year, even with the quake-depleted inventories. Demand for efficient cars has increased this year with higher fuel prices.
General Motors Co.'s Chevrolet Cruze was June's top-selling car in the U.S., while deliveries of Ford Motor Co.'s Focus rose 41 percent.
"Dealers simply cannot get their hands on them quick enough," said Ivan Drury, an analyst for Edmunds.com, an industry pricing and data Web site. The model "is easily the poster child for inventory issues."
Prior to the quake, Toyota targeted Prius sales in 2011 that would top the car's 2007 peak of 181,221. While that level may be out of reach for now, Toyota can still exceed 2010's deliveries of 140,928, said Donald Esmond, Toyota's senior vice president for U.S. sales.
Output increasing
Production of Prius and two Lexus hybrids is rebounding faster than Toyota first estimated after the 9-magnitude quake in March. The company expects to be back at full output by September, rather than its earlier target of late 2011.
The lack of available hybrids from Toyota has held the segment to 2.1 percent of industrywide U.S. sales so far this year. Even though Prius isn't among the automaker's most profitable lines, Toyota sees it as the best opportunity to win new customers in the next few years, said Jim Lentz, president of Toyota's U.S. sales unit.
The nameplate will be expanded to include the Prius v wagon, Prius c subcompact and plug-in Prius.
"By the end of this decade, the Prius nameplate will be the No. 1 passenger car nameplate in the industry," Lentz said in a July 6 phone interview. Boosting Prius supply, along with the introduction of the wagon version and a revamped Camry sedan later this year, gives the automaker a shot at making up for some sales lost in May and June.
Toyota also wants to ease a backlog for Prius that's pushed the wait time for consumers to as long as three months in some parts of the U.S. from none at the start of the year, said Jesse Toprak, an industry analyst.
'Least-available'
"At the moment, it's the least available of any mass- produced vehicle," said Toprak, with Truecar.com, an industry pricing and data company.
U.S. demand for fuel economy is up this year as gasoline prices approach 2008's record of $4.114 a gallon. While the fuel cost an average of $3.569 per gallon on July 5, down from $3.985 on May 4, the price is up 30 percent from a year ago, according to AAA's Daily Fuel Gauge Web site.
Higher prices at the pump buoyed sales of subcompacts and small cars, with such vehicles rising 21 percent this year through June, according to Autodata Corp. That compares with an 11 percent gain for midsize cars and a 4.7 percent drop for the large sedans, Autodata said.
High appeal
Prius' fuel-economy appeal has never been higher, said Bob Carter, Toyota's group vice president for U.S. sales. Interest in the car was up 36 percent in June from a year ago, based on consumer visits to Toyota's Prius Web site, according to Edmunds.com.
"I have extremely high demand, and the outlook is continuing to improve," Carter said in a June 22 interview. Failure to ramp up supply quick enough may blunt Toyota's goal to notch its first U.S. annual sales gain since 2007.
It also risks driving some buyers to models such as Ford's hybrid Fusion sedan and Hyundai Motor Co.'s new Sonata Hybrid, said Toprak. The growing selection of highly fuel-efficient, gasoline- engine small cars also threatens to lure away potential Prius buyers, said Edmunds.com's Drury.
"Some consumers might be willing to wait, but as time goes on and awareness of the many redesigned compact cars becomes higher, Toyota could suffer," Drury said.
Sales of the Prius in the first half were 66,520, little changed from 66,039 a year ago, when recalls of Toyota and Lexus models temporarily damped demand. Prius accounted for 8.2 percent of the company's U.S. sales during the period, while Camry deliveries were 18 percent and Corolla sales were 16.8 percent.
Prius inventory
Toyota's U.S. sales in the second quarter "slowed as inventories dropped and as a result, we find ourselves at virtually the same position we were a year ago on July 1," Esmond said on a July 1 conference call.
"We won't finish the year that way." While Toyota's Tsutsumi, Japan, plant that makes Prius and its Kyushu factory that builds hybrid Lexus CT200 hatchbacks and HS250 sedans weren't damaged by the March 11 disaster, parts needed for the cars grew scarce because of damages to suppliers' operation.
The automaker prioritized production of the three gasoline- electric cars after determining they were in the highest demand, said Shiori Hashimoto, a spokeswoman for the company.
"We worked hard to find out which components were critical, conditions of the supply chain, and how the limited car parts should be delivered to which assembly lines," said Hashimoto.
Speeding production
To restore Prius production as fast as possible after the quake, Toyota began sending about 150 workers from other factories in Japan to the Tsutsumi plant in late March, said Tomotaka Yagai, a spokesman at Toyota Motor Workers' Union in Toyota City.
Hashimoto declined to confirm the figure. So far, Toyota has only confirmed the U.S. will get a shipment of 36,000 Priuses that will arrive this month, with more on the way, Carter said.
"I can't give you a specific number, but it will improve significantly," he said, without elaborating.
Billy Rinker, general sales manager at Toyota Santa Monica, said a fresh supply of the cars has been arriving since late June. The Los Angeles-area dealership claims to be the largest seller of Prius in the U.S., with average monthly sales of 100 to 150 of the hybrids, he said.
Waiting list
"We only had 30 to sell last month, but July looks like we'll be back to about 80 percent of normal," Rinker said.
He estimates the dealership will sell about 100 this month. That won't eliminate the dealership's backlog. "We're still keeping a list and taking deposits for the car," Rinker said.
With the Prius v wagon, followed in 2012 by the subcompact Prius c and plug-in Prius, Toyota expects its "Prius family" to become its top-selling line within the decade, Carter said.
"A lot of our future plans are centered around the Prius and that goes into vehicle launches next fall," he said. Toyota said July 1 a new Camry and Camry Hybrid, Scion iQ minicar and revamped Yaris subcompact will arrive this year along with the v wagon.
The company is counting on those models, together with the jump in Prius supply and rebounding inventory of all its Toyota, Lexus and Scion products, to reverse a 4 percent slide in U.S. sales through June.
"It's coming back quicker than any of us expected," said Atkinson, who spoke by phone after attending Toyota's annual dealer meeting in Las Vegas last week. "Now it's time to go out and sell like hell."
Asia's largest automaker is racing to replenish supply after the lack of inventory led to a 61 percent drop in Prius deliveries in the U.S. in June, to the lowest level since September 2004. Almost half of Prius models are sold in the U.S., where the car accounts for more than 60 percent of hybrids sold since 1999, according to data supplied by automakers.
Prius, the company's No. 3 selling car after the Corolla and Camry, is the fastest-growing Toyota nameplate this year, even with the quake-depleted inventories. Demand for efficient cars has increased this year with higher fuel prices.
General Motors Co.'s Chevrolet Cruze was June's top-selling car in the U.S., while deliveries of Ford Motor Co.'s Focus rose 41 percent.
"Dealers simply cannot get their hands on them quick enough," said Ivan Drury, an analyst for Edmunds.com, an industry pricing and data Web site. The model "is easily the poster child for inventory issues."
Prior to the quake, Toyota targeted Prius sales in 2011 that would top the car's 2007 peak of 181,221. While that level may be out of reach for now, Toyota can still exceed 2010's deliveries of 140,928, said Donald Esmond, Toyota's senior vice president for U.S. sales.
Output increasing
Production of Prius and two Lexus hybrids is rebounding faster than Toyota first estimated after the 9-magnitude quake in March. The company expects to be back at full output by September, rather than its earlier target of late 2011.
The lack of available hybrids from Toyota has held the segment to 2.1 percent of industrywide U.S. sales so far this year. Even though Prius isn't among the automaker's most profitable lines, Toyota sees it as the best opportunity to win new customers in the next few years, said Jim Lentz, president of Toyota's U.S. sales unit.
The nameplate will be expanded to include the Prius v wagon, Prius c subcompact and plug-in Prius.
"By the end of this decade, the Prius nameplate will be the No. 1 passenger car nameplate in the industry," Lentz said in a July 6 phone interview. Boosting Prius supply, along with the introduction of the wagon version and a revamped Camry sedan later this year, gives the automaker a shot at making up for some sales lost in May and June.
Toyota also wants to ease a backlog for Prius that's pushed the wait time for consumers to as long as three months in some parts of the U.S. from none at the start of the year, said Jesse Toprak, an industry analyst.
'Least-available'
"At the moment, it's the least available of any mass- produced vehicle," said Toprak, with Truecar.com, an industry pricing and data company.
U.S. demand for fuel economy is up this year as gasoline prices approach 2008's record of $4.114 a gallon. While the fuel cost an average of $3.569 per gallon on July 5, down from $3.985 on May 4, the price is up 30 percent from a year ago, according to AAA's Daily Fuel Gauge Web site.
Higher prices at the pump buoyed sales of subcompacts and small cars, with such vehicles rising 21 percent this year through June, according to Autodata Corp. That compares with an 11 percent gain for midsize cars and a 4.7 percent drop for the large sedans, Autodata said.
High appeal
Prius' fuel-economy appeal has never been higher, said Bob Carter, Toyota's group vice president for U.S. sales. Interest in the car was up 36 percent in June from a year ago, based on consumer visits to Toyota's Prius Web site, according to Edmunds.com.
"I have extremely high demand, and the outlook is continuing to improve," Carter said in a June 22 interview. Failure to ramp up supply quick enough may blunt Toyota's goal to notch its first U.S. annual sales gain since 2007.
It also risks driving some buyers to models such as Ford's hybrid Fusion sedan and Hyundai Motor Co.'s new Sonata Hybrid, said Toprak. The growing selection of highly fuel-efficient, gasoline- engine small cars also threatens to lure away potential Prius buyers, said Edmunds.com's Drury.
"Some consumers might be willing to wait, but as time goes on and awareness of the many redesigned compact cars becomes higher, Toyota could suffer," Drury said.
Sales of the Prius in the first half were 66,520, little changed from 66,039 a year ago, when recalls of Toyota and Lexus models temporarily damped demand. Prius accounted for 8.2 percent of the company's U.S. sales during the period, while Camry deliveries were 18 percent and Corolla sales were 16.8 percent.
Prius inventory
Toyota's U.S. sales in the second quarter "slowed as inventories dropped and as a result, we find ourselves at virtually the same position we were a year ago on July 1," Esmond said on a July 1 conference call.
"We won't finish the year that way." While Toyota's Tsutsumi, Japan, plant that makes Prius and its Kyushu factory that builds hybrid Lexus CT200 hatchbacks and HS250 sedans weren't damaged by the March 11 disaster, parts needed for the cars grew scarce because of damages to suppliers' operation.
The automaker prioritized production of the three gasoline- electric cars after determining they were in the highest demand, said Shiori Hashimoto, a spokeswoman for the company.
"We worked hard to find out which components were critical, conditions of the supply chain, and how the limited car parts should be delivered to which assembly lines," said Hashimoto.
Speeding production
To restore Prius production as fast as possible after the quake, Toyota began sending about 150 workers from other factories in Japan to the Tsutsumi plant in late March, said Tomotaka Yagai, a spokesman at Toyota Motor Workers' Union in Toyota City.
Hashimoto declined to confirm the figure. So far, Toyota has only confirmed the U.S. will get a shipment of 36,000 Priuses that will arrive this month, with more on the way, Carter said.
"I can't give you a specific number, but it will improve significantly," he said, without elaborating.
Billy Rinker, general sales manager at Toyota Santa Monica, said a fresh supply of the cars has been arriving since late June. The Los Angeles-area dealership claims to be the largest seller of Prius in the U.S., with average monthly sales of 100 to 150 of the hybrids, he said.
Waiting list
"We only had 30 to sell last month, but July looks like we'll be back to about 80 percent of normal," Rinker said.
He estimates the dealership will sell about 100 this month. That won't eliminate the dealership's backlog. "We're still keeping a list and taking deposits for the car," Rinker said.
With the Prius v wagon, followed in 2012 by the subcompact Prius c and plug-in Prius, Toyota expects its "Prius family" to become its top-selling line within the decade, Carter said.
"A lot of our future plans are centered around the Prius and that goes into vehicle launches next fall," he said. Toyota said July 1 a new Camry and Camry Hybrid, Scion iQ minicar and revamped Yaris subcompact will arrive this year along with the v wagon.
The company is counting on those models, together with the jump in Prius supply and rebounding inventory of all its Toyota, Lexus and Scion products, to reverse a 4 percent slide in U.S. sales through June.
"It's coming back quicker than any of us expected," said Atkinson, who spoke by phone after attending Toyota's annual dealer meeting in Las Vegas last week. "Now it's time to go out and sell like hell."
Friday, July 8, 2011
GM to test offering insurance for 1 year to buyers in Northwest
General Motors -- testing a new sales promotion -- is offering Oregonians and Washingtonians a new incentive to buy or lease a GM vehicle.
Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.
The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.
GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.
The offer includes 2010, 2011 and 2012 models, GM said.
GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.
If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.
The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.
Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.
The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.
Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.
MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.
“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”
Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.
The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.
GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.
The offer includes 2010, 2011 and 2012 models, GM said.
GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.
If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.
The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.
Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.
The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.
Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.
MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.
“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”
Thursday, July 7, 2011
the motor is very hot, but isn't, chugging, no power. Hard to start
I would like to thank all that have responded in regards to the catalytic converter.
Last year, with the same symptoms, we punched holes in the converter. Alot of stuff blew out and was fine~after fixing the broken spark plug and cracked coil pack. The muffler shop plugged the holes when had the tailpipe fixed. We thought maybe it was just plugging up again, so we put the holes back in it. But alas, we still have the same problems.
I checked for broken plugs~none. I did find a bad vac line and taped it up for the time being. Now, I would like to see if the second coil is cracked, but cannot figure how to get it off. I took the one bolt out that I could see and it won't come off. I took the bolt out for the other pack, figuring it was holding second one on. Nothing. How to I get that thing off? We replaced the one marked 2 & 3. Now I would like to get 1 & 4 off to check it.
I incorrectly stated the year of my truck in my first message. It is a 1994, 4 cyl, automatic, S-10. My mechanic brother passed away, so I now have no one that can do the back yard stuff. Frustrating.
It acts like a vac line has come off, but they are all on now. Acts like the motor is very hot, but isn't, chugging, no power. Hard to start. We can be driving fine, then starts the no power and chugging. Last year, we would just pull over and shut it off for a few minutes and it would be fine to get home. I drove it two blocks this morning after fixing the one vac line. Was fine until I got half way around. I just came straight back home. It is fine at idle.
How do I get the coil pack off?
Last year, with the same symptoms, we punched holes in the converter. Alot of stuff blew out and was fine~after fixing the broken spark plug and cracked coil pack. The muffler shop plugged the holes when had the tailpipe fixed. We thought maybe it was just plugging up again, so we put the holes back in it. But alas, we still have the same problems.
I checked for broken plugs~none. I did find a bad vac line and taped it up for the time being. Now, I would like to see if the second coil is cracked, but cannot figure how to get it off. I took the one bolt out that I could see and it won't come off. I took the bolt out for the other pack, figuring it was holding second one on. Nothing. How to I get that thing off? We replaced the one marked 2 & 3. Now I would like to get 1 & 4 off to check it.
I incorrectly stated the year of my truck in my first message. It is a 1994, 4 cyl, automatic, S-10. My mechanic brother passed away, so I now have no one that can do the back yard stuff. Frustrating.
It acts like a vac line has come off, but they are all on now. Acts like the motor is very hot, but isn't, chugging, no power. Hard to start. We can be driving fine, then starts the no power and chugging. Last year, we would just pull over and shut it off for a few minutes and it would be fine to get home. I drove it two blocks this morning after fixing the one vac line. Was fine until I got half way around. I just came straight back home. It is fine at idle.
How do I get the coil pack off?
Tuesday, July 5, 2011
56-mpg plan isn't written in stone
Automakers say feds seem open to changes
Automakers say the Obama administration appears not to be wedded to the 56.2-mpg target for 2025 it floated last week and may be open to other refinements.
The manufacturers are pushing for a single national program while expressing concern in private talks with the White House that the standard may be too tough.
They are arguing that no decisions should be made until new forecasts of manufacturers' technology, costs and sales become available.
Environmental advocates who had been calling for a 62-mpg standard expressed support last week for a target of 56.2 mpg, or annual increases of 5 percent after the 2016 model year.
An administration study last fall found that the technology required to meet 5 percent yearly mpg increases would increase the cost of the average 2025-model vehicle by up to $2,600 and produce fuel savings of up to $7,000 over the life of the vehicle.
The Detroit 3 also are proposing that annual mpg increases be low in the early part of the nine-year period until advanced technology can be developed, and that periodic reviews be held.
This snapshot of the ongoing multiparty negotiations comes from industry officials who asked not to be identified. A rule for the 2017-25 model years is scheduled to be proposed in September and made final next July.
Automakers that met with California Gov. Jerry Brown said they got the impression that the state -- which has been an adversary in the past -- would not pose major obstacles to an agreement.
Some manufacturers' public comments also convey cautious optimism that their goal of a single nationwide program can be met.
"Ford believes that the meetings have been productive," a spokeswoman said. "We support increasing fuel economy requirements with one national program that is data-driven."
Automakers have been meeting with the administration and California regulators to build on the 2016-model standard of 35.5 mpg. They have considered 2025 standards of 47 to 62 mpg.
Automakers say the Obama administration appears not to be wedded to the 56.2-mpg target for 2025 it floated last week and may be open to other refinements.
The manufacturers are pushing for a single national program while expressing concern in private talks with the White House that the standard may be too tough.
They are arguing that no decisions should be made until new forecasts of manufacturers' technology, costs and sales become available.
Environmental advocates who had been calling for a 62-mpg standard expressed support last week for a target of 56.2 mpg, or annual increases of 5 percent after the 2016 model year.
An administration study last fall found that the technology required to meet 5 percent yearly mpg increases would increase the cost of the average 2025-model vehicle by up to $2,600 and produce fuel savings of up to $7,000 over the life of the vehicle.
The Detroit 3 also are proposing that annual mpg increases be low in the early part of the nine-year period until advanced technology can be developed, and that periodic reviews be held.
This snapshot of the ongoing multiparty negotiations comes from industry officials who asked not to be identified. A rule for the 2017-25 model years is scheduled to be proposed in September and made final next July.
Automakers that met with California Gov. Jerry Brown said they got the impression that the state -- which has been an adversary in the past -- would not pose major obstacles to an agreement.
Some manufacturers' public comments also convey cautious optimism that their goal of a single nationwide program can be met.
"Ford believes that the meetings have been productive," a spokeswoman said. "We support increasing fuel economy requirements with one national program that is data-driven."
Automakers have been meeting with the administration and California regulators to build on the 2016-model standard of 35.5 mpg. They have considered 2025 standards of 47 to 62 mpg.
Friday, July 1, 2011
GM takes low-key approach to mild-hybrid technology
Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
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