August 31, 2010

Auto Sales Stickers May Add Guzzle Grade
Federal regulators on Monday proposed awarding new cars and trucks letter grades on fuel efficiency in a move that could deter consumers from buying gas guzzlers. According to The Detroit News, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) recommended an overall grade for fuel efficiency and greenhouse gas emissions as part of a sweeping revision of vehicle window stickers for the 2012 model year. The grading scale would be A+ through D. Click here to see what one of the new labels could look like. "We think a new label is absolutely necessary to help consumers make the right decision for their wallet and for the environment," said Gina McCarthy, an assistant EPA administrator. The grading system was among a host of changes and additions to window stickers recommended by the agencies. They included adding comparison information on fuel economy, and new measures of carbon dioxide and smog-related emissions. The agencies also proposed adding an equivalent gas mileage rating that would allow consumers to compare all-electric, hybrid, diesel, and compressed natural gas vehicles with conventional gasoline-powered vehicles. Click here to read more on proposed changes to consumer sales stickers on new vehicles.

The End of End-of-Summer Auto Deals
For years, Americans shopping for cars were treated to all sorts of deals and incentives, especially at the end of summer. However, MSNBC reports that those days are over. Deals are becoming scarce because automakers, newly lean and profitable, are holding the line on those profit-eating promotions. In July, they offered $1,000 less in incentives per car than a year earlier, according to Edmunds.com. And with no one expecting the government to offer a repeat of the Cash for Clunkers program, get ready for fewer discounts on your next car. "This may be as good as it gets, and get used to it," says Jeff Schuster, the executive director of forecasting for J.D. Power and Associates. Click here for a video on this year's car deals. As a result of decreased incentives, U.S. auto sales are at a standstill, with potential buyers waiting for more deals but automakers resisting. The industry expects this to be the worst August in 18 years, with sales barely over 1 million cars and trucks. Check back with FirstUp on Thursday when AIADA releases its Market Watch sales report covering U.S. international nameplate sales for the month of August. Schuster says eventually cars will wear out and people will have to buy, regardless of the incentives. But in the meantime, he says, "it takes a while to get off the drug." Click here for more on the lack of car-buying incentives and how it is impacting dealers' bottom line.

Volvo to Challenge BMW, Mercedes, Audi with V60 Wagon
Volvo plans to challenge BMW AG, Audi, and Mercedes-Benz with its new V60 station wagon in Europe. According to Automotive News, Volvo forecasts annual sales of 50,000 of the V60, which goes on sale later this year. Click here for a photo. The V60 and recently introduced S60 sedan are key to Volvo's efforts to boost sales in its European market and reach profitability under China's Zhejiang Geely Holding Group Co., which four weeks ago bought the carmaker from Ford Motor Co. Volvo is targeting sales of 400,000 cars worldwide this year, up from 334,800 in 2009. The V60, which started production today at the Torslanda plant near Volvo's Gothenburg, Sweden, headquarters, features a sloping rear windscreen that gives it a sportier look compared to the carmaker's V70 and V50 station wagons. Volvo will use the model to challenge BMW's 3 Series Touring, the Audi A4 Avant, and the Mercedes-Benz C class. Sales of the V60 should approach those of the XC60 crossover, Volvo's most popular model globally and in Europe. Volvo's seven-month sales of the XC60 totaled 48,000 globally, including 30,000 in Europe, spokesman Per-Ake Froberg said. The V60 has a world debut at the Paris auto show on September 30. Click here for more on Volvo's debut of its V60 station wagon.

Mazda Sky-G and Sky-D Engines Mean Fuel Economy Gains
Around the world, automakers are grappling with the changes necessary to meet escalating fuel-economy regulations. To this end, Mazda is launching a new family of four-cylinder engines called Sky-G (gasoline) and Sky-D (diesel). Car and Driver drove both in prototypes of the next-gen Mazda 6. The 2.0-liter version of the Sky-G will launch next year in the U.S., likely as part of a midcycle face lift of the Mazda 6. Starting from the ground up, Mazda has impressively leapfrogged its previous gas engine. They did it by increasing the compression ratio - in this case, to a staggering 14:1 from 11:1 in the current 2.0-liter (the U.S. version is 10:1). Further improvements include the addition of direct injection and a reduction of heat loss. Premium, 91-octane fuel is required for the Sky's 163 hp at 6000 rpm and 155 lb-ft at 4000. However, Mazda is proud of its exceptionally wide torque band for enhanced real-world drivability. Perhaps the best thing in all of this, though, is that Mazda's impressive engineering work proves that the internal-combustion engine still has plenty of legs in our ever-more-regulated world. Click here for photos of Mazda's new Sky-G and Sky-D engines. To read Car and Driver's review on their fuel economy and performance, click here.

For 2011, BMW builds a Better 5 Series at a Lower Price
According to James R. Healey at USA Today, there's a simple summary for the wholly redesigned ("all-new" in breathless auto industry parlance) BMW 2011 5 Series sedan: bigger, looks better, priced less, and gets better mileage. The options list on the tester he drove ran to $15,700, bringing the total price to $66,175. The 535i manual was hospitable in traffic because the engine delivered plenty of power at low revs, unlike some turbo engines, and because the clutch action was smooth and easy to master. It had a good steering feel with strong on-center positioning so he didn't have to constantly steer just to go straight. It also possessed prompt and effective brakes. The new vehicle has a smoother silhouette than its predecessor, which is the sort of change that pleases most eyes. The 535i has a starting price that BMW says is $1,650 less than last year's 535i. The 550i V-8 version is $900 less than last year's. BMW interiors typically are extraordinary in their grace and harmony, and there was no change for 2011. Seats were exemplary, surfaces inviting, and materials high-class. Click here for a photo gallery to see what the BMW 5 Series is all about. To read Healey's assessment of the good and bad of BMW's newly redesigned 5 Series, click here.

What are the Benefits of Outsourcing your Loaner Fleet?
Auto dealerships in the United States own and operate an estimated 110,000 loaner cars. At a time when cost cutting is essential for survival and dealerships are challenged to do more with less, outsourcing loaner fleets makes good sense - and dollars. Join AIADA and our Affinity Partner, Enterprise Rent-A-Car, on Wednesday, September 15 at 1:00 p.m. EDT for a FREE 30-minute webinar: The Benefits of Outsourcing Loaner Fleets. This webinar will demonstrate how providing rental cars as service loaners can help dealers cut costs, improve efficiency, and enhance customer service. Host Jon Faris, Corporate Rental Manager at Enterprise, brings 18 years of experience in loaner fleets for auto dealerships. He'll show you real-world examples of dealerships that have increased profits by adopting an outsourcing model and sharpening their focus on their core business. See for yourself how outsourcing your loaner fleet can not only improve your customers' perception of you but also yield increased repair order sales. Register Now!

Around the Web
Video: Mitsubishi i-MiEV [Kicking Tires]
2011 Hyundai Santa Fe to be Built on Kia's Georgia Production Line [TheCarConnection]
On the Track with the Ferrari 599XX [Edmunds Inside Line]
Speed Here and You'll be Fined Up to $1,000 [AOL Autos]