GM, Ford Gain From Toyota’s Woes

February 4, 2010 by 1 Comment

As I stated last week, Toyota’s woes have been exactly what Detroit needed.

According to an article released by the Associated Press, General Motors and Ford both saw double-digit sales increase for the month of January. Toyota’s sales fell 16% for the month.

Not coincidentally, January was the month that Toyota announced a massive recall of some of their most popular vehicles due to the fact the vehicle’s gas pedals could stick.

And, considering the Secretary of Transportation, Ray LaHood, stated people should, “stop driving it [their Toyota] and take it to a dealer,” it wouldn’t surprise me if February is worse for Toyota, and better for the other car makers, than January was.

(Note: LaHood later explained his comments saying he meant owners should get their cars fixed as quickly as possible, not to completely give up on their Toyota.)

As I’ve stated before, I think we’re in the midst of a giant shift back to the idea that American cars are quality cars and, at the very least, on par with their foreign counterparts. Obviously, situations like this only further that argument.

What are your thoughts?  Do you own a Toyota?  Are you now thinking of buying an American car?  Do you not care either way?  Leave your comment below!

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Toyota’s Recall is Exactly What Detroit Needs

January 28, 2010 by 5 Comments

For years, it has been a common perception – or misperception as the case may be – that Japanese cars, particularly Toyota and Honda, were of better quality than their American counterparts, Ford, General Motors, and Chrysler.

Don’t get me wrong, American cars did plenty to substantiate those perceptions, especially considering they were behind the curve when it came to moving from massive trucks and SUVs to more fuel efficient sedans, compact cars, and hybrids.

However, with the news the Toyota has recalled 2.3 million vehicles – including some of its best selling models –due to a problem that could make the vehicle’s gas pedal stick, and its announcement that the company will halt sales of all affected models for the time being, is the tide finally starting to turn in Detroit’s favor?

Over the past several years, American car makers – Ford in particular – have received praise for drastic improvements in reliability and quality. In fact, the Ford Fusion was recently named Motor Trend’s Car of the Year for 2010, which is a pretty big deal.

I think when you couple Detroit’s momentum with Toyota’s huge setback, I think we’re on the verge of viewing American cars as being at least as good as, if not better than, their foreign counter parts.

What do you think? Leave your comments below!

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Ford Wins in Detroit – More Sales Next?

January 12, 2010 by 1 Comment

So much for American cars being unable to shake their “not good enough” image!

Kicking off what it hopes will be a strong year, Ford won both the Car and Truck of the Year awards at the 2010 Detroit Auto Show. The Ford Fusion Hybrid won Car of the Year, while the Ford Transit Connect van won Truck of the Year.

I know you’re probably saying to yourself, “I’d hope a domestic car maker would win awards in the Detroit Auto Show.” 

Truth be told, despite being a domestic car guy, that thought definitely crossed my mind.  So, yes, to some degree Ford winning both awards can be taken with a grain of salt.

That being said, it’s undeniable that the American car manufacturers – especially Ford – have made considerable improvements in reliability, design and quality over the past several years.

(Please note, Daily Fuel Economy Tip does not have any affiliation with any car maker, domestic or foreign.)

Unfortunately, these improvements haven’t necessarily translated to much better sales. As was reported in USA Today of the 10 best selling vehicles in 2009, all but four were Japanese vehicles. The Ford Fusion was the only domestic sedan (read: non-truck) that made the list.

Let’s hope that for the sake of the U.S. economy – in particular, the manufacturing sector – the awards for Ford are a precursor to higher sales across the board for domestic vehicles.

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American Cars Can’t Shake Their “Not Good Enough” Image

October 14, 2009 by 2 Comments

For many years it has been widely believed that if you wanted to buy a quality car that would be reliable for years to come, you should avoid the big three American car manufacturers and buy something foreign.

While the American car makers did little to help themselves by mostly producing inferior products, over the past couple years it seems as if they have done a good job of got their act together and have started making better quality and better value vehicles.

In fact, just this past year, it was Ford, not Honda or Toyota, that scored the highest for quality and reliability.

While this is certainly good news for the American automotive industry, the bad news is all of the shoddy work of prior years makes it hard to shake the “just not good enough” image.

Here’s how nearly 500 people responded when asked: Do you believe American cars are the same quality as foreign cars?

  • 60% said “No, I think they are worse quality.”
  • 25% said “Yes, they are on par.”
  • 13% said “No, I think they are better quality.”
  • 2% said they had no opinion

[Read more…]

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Cash For Clunkers Ending. Did You Take Advantage?

September 8, 2009 by 3 Comments

According to recent data, after spending nearly $3 billion in tax payer dollars (or was it China’s money?), the Cash for Clunkers program has helped Americans buy nearly 700,000 new cars.

While that’s certainly a lot of cars, not to mention a lot of help for the ailing auto industry, it seems as if the program’s reach was pretty narrow.

In order to have been eligible for the Cash for Clunkers program, you needed to trade in a vehicle you’ve owned for over a year that got an EPA estimated combined city/highway gas mileage of 18 mpg or less, and used the $3,500 to $4,500 voucher to buy or “long-term lease” a vehicle that gets between four to 10 mpg higher for the $3,500 credit or more than ten mpg higher for the $4,500 credit.

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Did You Get a Good Deal on Your Car?

August 10, 2009 by 3 Comments

Thanks the popular and controversial Cash for Clunkers program, and in spite of “The Great Recession,” many Americans have begun to build up the courage to buy a new vehicle, especially over the past month or two.

With the auto industry suffering from the recession and eager to move cars off lots, there are many good deals to be had.  That being said, with a most new cars costing at least $15,000, it’s not as if people have been, or should go into their next car purchase without having done plenty of research.

Based on recent data, it certainly appears as if many Americans were well informed the last time they walked into a car dealership.

[Read more…]

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Cash for Clunkers – Just Another Bad Idea

August 6, 2009 by 9 Comments

The “Cash for Clunkers” program — which offers a rebate of up to $4,500 for people to trade in their gas guzzlers (the vehicle has to get below 18 MPG to qualify for the full rebate) for new, fuel efficient vehicles — has, for the most part, been hailed as a huge success.

The U.S. auto industry has seen sales soar, and environmentalists have been happy to see people trading in their Ford Explorer for a Ford Focus.

That being said, I’m here to tell you why the Cash for Clunkers program is a waste and is just perpetuating our current financial problems.

Before I get into why the Cash for Clunkers program is bad for the average consumer, let’s talk about the good intentions in which the program is rooted.  The heart of the Cash for Clunkers program aims to serve two causes:

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Stimulus Not Enough to Jump Start Car Sales

March 3, 2009 by 1 Comment

On February 17, President Obama signed a controversial and massive $787 billion economic stimulus package into law, and hailed the action as a stepping stone towards turning the economy around, as it will lower taxes, incentivize home buying and, according to the Administration, create or save millions of jobs.

Another key part of the stimulus revolves around the automotive industry: anyone who buys a new vehicle in 2009 will be allowed to deduct the sales tax paid on the vehicle from their taxable income.  In a typical scenario laid out by USA Today (see the previous link), an “average” car purchase would reduce an individual’s taxable income by roughly $700 according to a tax estimator.

Not exactly a ton, but in today’s economy, every little bit helps, right?  Well, apparently it does, just not enough to spur car buying.

[Read more…]

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A Big Three Resurgence? Don’t Hold Your Breath.

October 29, 2008 by 3 Comments

The Big 3 American car manufacturers – General Motors, Ford and Chrysler – used to be the backbone of the American economy.  They were the prototypical blue collar, middle class employers, where a hard day’s work meant putting together a great American product for a good wage and benefits.

Now, these companies are more of a running punchline than American icons.  While all three are working hard to stay afloat and adapt with the times, it appears that they’re going to face very strong headwinds in order to keep their heads above water.

While I certainly have faith that all three companies will make it through their current problems in some form or fashion, I think it’s going to take a while before they’re able to completely turn it around and become profitable businesses again.

According to a recent poll on Daily Fuel Economy Tip, I’m certainly not the only one who thinks this way.

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Who Should Pay For Fuel Efficient Car Plants – Big 3 or the Federal Government?

September 15, 2008 by 7 Comments

It’s no secret that higher gas prices have hit America pretty hard.  While higher gas prices have placed quite a financial strain on the American public, at the end of the day, the “group” that might be effected the most might not be Americans in general, rather the Big 3 American car makers – General Motors, Ford and Chrysler.

After spending years building up the infrastructure to produce profitable trucks and SUVs, higher gas prices have really hurt sales at the Big 3 American car makers.  In an effort to stop the financial bleeding, many truck and SUV plants have been shut down, costing thousands of jobs and hundreds of millions of dollars in lost sales.

These current conditions have led the senior management of these car companies to ask the Federal Government for some financial help in the form of low interest loans to help convert truck and SUV plants into facilities which produce smaller, more fuel efficient vehicles.

While this Federal intervention may seem like a good thing – after all, a healthy manufacturing sector has always been good for the American economy – according to a recent poll, Americans appear to be pretty torn over whether or not the Federal Government should help the Big 3.

[Read more…]

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