February 5, 2010

Toyota Resumes Sales of Recalled Models
According to the LA Times, Toyota dealers resumed selling vehicles Thursday that were pulled from the sales lot to address sudden-acceleration problems. Toyota stopped sales of eight models - including its top-selling Camry and Corolla - on Jan. 26, saying the gas pedals could get stuck and cause runaway acceleration. The automaker also shut down production of the vehicles for a week while it examined how to fix the problem, which it attributed to wear on the pedal system. "We now have more than enough parts at dealers to take care of the flow of repairs. Dealers may sell a new car if the repair is made," said Mike Michels, a Toyota spokesman. "There is no single point in time when the stop sale would be lifted. It will be car by car." Automotive News also reported on Friday that Toyota is considering a recall of its 2010 Prius model in the U.S. to address complaints about slipping brakes. The problem reportedly occurs in the third-generation Prius, which went on sale in the United States, Japan and Europe last year. Transportation agencies in the United States and Japan have been compiling dozens of complaints that the car's brakes give way under certain conditions. Click here for more on Toyota's plans to resume sales of recalled models. Click here for more on what Toyota is doing to address brake issues on its current Prius model. 

Don't Count Out Toyota, Ever!
MSN's Lawrence Ulrich writes that a little perspective would help to balance out the near-hysteria caused by Toyota's recalls to address concerns over unintended acceleration. Yes, the company's recall of 6.5 million cars - 2.3 million for sticky accelerator pedals and another 4.2 million for pedal-grabbing floor mats - is the automaker's nastiest black eye in memory. Worse, unintended acceleration is the ultimate headline-grabber, one of the scariest scenarios for any driver. The specter of a runaway car worries people far more than, say, the engine sludge build-up that affected some Toyotas in recent years. But while Toyota's top executives have acknowledged that it needs to refocus on quality, the recall won't necessarily ding Toyota's sterling reputation in the long term. As long as the public decides that Toyota is responding quickly and transparently to these recalls, rather than foot-dragging or evading responsibility, Ulrich says he can't envision any long-term exodus from the brand. Toyota sales dipped 16 percent in January, but that's partially due to Toyota halting sales to address the recall. When Toyota gets its best-selling models back on the market, those sales should balance out. Click here for more from Lawrence Ulrich on why Americans shouldn't count Toyota out of the game yet.

Heading to NADA's National Convention? Attend AIADA's 40th Annual Meeting & Luncheon
If you're a dealer heading to NADA's national convention in Orlando next week, join fellow dealers and industry leaders as AIADA celebrates 40 years and looks to the challenges of tomorrow at its Annual Meeting and Luncheon, February 15, 2010. Registration for this can't miss event won't be available much longer. John Krafcik, President and CEO of Hyundai Motor America, will present the keynote address, and the AIADA board of directors will announce the recipient of the 2010 Dave Mungenast Lifetime Achievement Award. Finally, the gavel will be passed from current AIADA Chairman Russ Darrow of Wisconsin to the 2010 Chairman-Elect Rick DeSilva of New Jersey. Don't miss the chance to connect with fellow dealers and industry insiders to build on the success of yesterday and confront the challenges of today and tomorrow. Don't wait. Register today by clicking here or by calling 1-800-GO-AIADA.

Honda Opens New Solar Hydrogen Station in California
When it comes time to refuel Honda's FCX Clarity fuel-cell car with hydrogen, the company is letting the sun shine in. According to the New York Times Wheels Blog, last week, Honda announced that it had begun operating a "next generation" solar hydrogen refueling station, using Honda's own solar cells, at its Torrance research and development headquarters. The new solar station is small enough to fit into a Clarity owner's garage, and that's its intended home. "We've eliminated the compressor, which was the largest and most expensive component," said a Honda spokesman, Chris Naughton. "The station pulls in solar energy during the day and then the customer can slow-fill with hydrogen over an eight-hour period at night." Honda claims that its smaller station is the world's most compact, as well as the first home unit without a compressor. Click here for a photo of the station. The station uses 48 panels of thin-film Honda-developed cells to produce six kilowatts of electricity. It's designed to complement the network of public stations that California has endeavored to create as part of its "Hydrogen Highway," but which in practice is developing slowly. Click here for more on Honda's new solar hydrogen station.

Test Drive: MazdaSpeed3 is a Buggy that Begs to Zoom
James R. Healey at USA Today writes that the MazdaSpeed3 is a blazing buggy that's agreeable and accommodating in the daily schlep. It's big enough in back for a couple of kids. It's hatchback-handy and spacious enough for the cargo you're likely to haul. And it's not very expensive. Click here for a photo. The Speed3 is based on the latest remake of the basic Mazda3, a compact sedan that's been grown from the same seeds that bloomed into the well-regarded European-market Ford Focus, a U.S.-market version of which isn't due until next year. According to Healey, the Speed3 is here now, and it is the best high-performance bargain out there. Click here for photos of the Speed3, accompanied by Healey's commentary. For a tick less than $24,000 (or not quite $26,000, all-in) you get a turbocharged four-cylinder tuned precisely for American driving conditions, with the power of a big V-6 or small V-8, the firm-feeling gearbox of a no-bull driver's car, and an easy-going clutch tying them together. You get supportive seats that keep you in place when the fat tires and stiff suspension carry you through corners with speed and confidence. Click here for Healey's full review of the MazdaSpeed3.

Nissan May Produce Second Sub-$10,000 Car
Nissan plans to offer its second-generation Versa sedan with a base price of about $10,000 and may offer a second model under $10,000 in the future. According to Automotive News, the redesigned Versa will debut in two years. It is being developed on Nissan's next-generation V platform and will be assembled in Mexico. The V platform is Nissan's highest-volume global platform. If sales of the second-generation Versa go well, Nissan executives say they may develop an additional vehicle under $10,000, not including freight, for the United States. While sales of the base Versa sedan are small - Nissan sold about 1,800 Versas last year at the base price of $9,990, plus $720 shipping - the automaker says developing a redesigned Versa sedan with a base price under $10,000 creates the discipline to develop a profitable, low-priced U.S. model. And Nissan says a low-priced Versa draws buyers to the showroom. Nissan says 15 percent of Sentra buyers originally came into dealerships looking for the Versa. The Versa is Nissan's lowest-priced car. Power windows, power door locks, a radio, and air conditioning are optional. Click here for more on Nissan's plans to bring a redesigned Nissan Versa to American dealerships.