General Motors Entices Car Shoppers with Free Maintenance Program

Photo Courtesy of General Motors

General Motors announced a free maintenance program for certain 2014 Chevrolet, Buick and GMC vehicles. Free routine maintenance will be covered for up to two years or 24,000 miles, whichever comes first.
Car shoppers who lease or buy a 2014 vehicle will be eligible for free oil and filter changes, tire rotation and a 27-point vehicle inspection at any Chevy, Buick or GMC dealership. General Motors explains, “Some alternative-fuel vehicles do not include oil changes, and some performance vehicles do not include tire rotations when that service is not recommended. The program covers up to four service visits in the 24-month period, and is fully transferrable to subsequent owners.”
GM Spokesman Jim Cain told The Detroit News that this program also covers 2014 vehicles that were purchased or leased in May, like the 2014 Chevrolet Impala. The Detroit News reports that GM will be launching 20 major refreshed or new models in 2013, and GM hopes this new program will help it retain customers.
Some of GM’s new vehicles for 2014 include the Chevrolet Corvette and Silverado, GMC Sierra and Buick LaCrosse.
Alec Gutierrez, senior market analyst at Kelley Blue Book, tells The Detroit News, “With the new maintenance program, GM now can sway buyers on the fence from a competitor that doesn’t offer a comparable program, and could attract additional buyers who are shopping based on price.”
Motor Trend says that Chevrolet, GMC and Buick aren’t the first non-luxury brands to offer free maintenance. Volkswagen and Toyota offers their own versions, as well. Volkswagen’s free maintenance program is for three years or 36,000 miles on 2009-2013 VW vehicles. Toyota’s program includes two years or 25,000 miles of maintenance.

Read more »

Chrysler Recalling 430,000 Jeeps

Chrysler Group announced two separate Jeep recalls affecting three models yesterday. These recalls are not related to our story from earlier in the week about Chrysler’s refusal to comply with a National Highway Traffic Safety Administration recall request for 2.7 million 1993-2004 Grand Cherokee and 2002-2007 Liberty models.

2012 Jeep Patriot / Photo courtesy of Chrysler Group

The first recall affects 254,396 Compass and Patriot models from the 2010-2012 model years built between May 6, 2008 and July 20, 2012. According to the NHTSA, there may be a glitch with the vehicles’ computers, wherein the side curtain air bags or seatbelt pre-tensioners may not work, increasing risk of injury in an accident.
Chrysler will correct the software to fix the computer glitch. The number for this recall is 101.
The second recall affects 180,131 2012-2013 Wrangler models with the 3.6-liter V6 engine and an automatic transmission built between Jan. 23, 2011 and Feb. 23, 2013. Due to unintentional contact between the power steering line and transmission oil cooler, a hole may form that could result in the loss of transmission fluid. This could lead to a loss of transmission function, increasing the risk of an accident.

2013 Jeep Wrangler / Photo courtesy of Chrysler Group

To fix the problem, Chrysler will replace the power steering return tube assembly. The recall campaign number is N28.
In two separate media releases, Chrysler says that there have been no accidents or injuries reported related to either the Patriot/Compass or the Wrangler recall. Both recalls are expected to begin in July. Owners of affected vehicles may contact Chrysler at 1-800-247-9753 or NHTSA at 1-888-327-4236 for more information.

Read more »

Will the Redesigned 2014 Toyota Corolla Bring Happiness?

2014 Toyota Corolla/Photo Courtesy of Toyota

This evening, Toyota revealed the all-new 2014 Toyota Corolla. Leading up to tonight, Toyota has been using social media to show off different parts of the redesigned Corolla.
In the beginning, Tatsuo Hasegawa, the Corolla’s first chief engineer, said the mission was “to develop a car that brings happiness and well-being to people around the world.” Now, according to a Toyota press release, the Corolla has been around for 47 years with almost 40 million sales in more than 150 countries.
Jessica Caldwell, senior analyst for Edmunds.com, says, "You can't underestimate Corolla's importance to Toyota's success. Its legions of buyers continue to grow Toyota awareness and Corolla is a strong gateway into the brand. Toyota has had a successful formula with the Corolla, but the vehicle does need some improvement in order to capture the more discerning compact car buyer in this competitive environment."
Data from Edmunds show that the Corolla, thus far, is the best-selling compact car in the United States. Edmunds chalks this up to dedicated customers. Of all trade-ins for a new Corolla in May, 35 percent were older Corollas.

2014 Toyota Corolla/Photo Courtesy of Toyota

The 2014 Toyota Corolla has four trims: L, LE, S and a new LE Eco trim. According to Toyota, all Corollas will have LED headlights, a 60/40 split fold-down rear seat, full power accessories, air conditioning, Bluetooth connectivity, cloth upholstery and eight air bags. Other features on higher grades or optional packages include a smart key with push-button start, SofTex seating materials, heated front seats, a navigation system and Entune apps. Features available on specific trims and prices will be released closer to when the Corolla goes on sale in the fall.

2014 Toyota Corolla's Interior/Photo Courtesy of Toyota

Toyota expects the Corolla’s highway fuel economy for the LE Eco, a new trim that focuses on fuel economy, to surpass 40 mpg. It comes with a continuously variable transmission (CVT) and a 1.8-liter four-cylinder engine with Valvematic technology. Toyota notes that this will be the first vehicle in North America to have this technology, which will improve fuel economy and increase the engine’s productivity to 140 horsepower. Low-rolling resistance tires or available aerodynamic alloy wheels are also available on the LE Eco. For car shoppers who want to cut down on maintenance cost, low-rolling resistance tires have been proven not to last as long as standard tires.
Another 1.8-liter four-cylinder engine is standard on the L, LE and S trims and produces up to 132 horsepower, according to the Toyota press release. The L model comes with an automatic transmission or a manual transmission. The manual transmission is available in the S. The CVT mentioned in the LE Eco grade is available in the LE and S trims.
The CVT can be changed from Normal mode to ECO and SPORT modes in the LE Eco and S trims. The ECO mode in the LE Eco will control the air conditioning along with some driving changes to get better fuel economy. Toyota says that the SPORT mode in the S trim is supposed to “deliver a more dynamic driving experience with software tuning that alters shift points, creating transmission behavior during acceleration that enhances the sporty character of the S-grade.” Paddle shifters on the steering wheel are standard on the S trim with the CVT. The shifter in the S can also be used to manually shift in the M mode.
The 2013 Toyota Corolla is ranked near the bottom of our affordable small car rankings going up against vehicles like the Mazda3, Hyundai Elantra and Subaru Impreza. After reviewers test it, we'll see if it makes them happy enough to give it better reviews.

Read more »

Studies Say Car Buyers Want to Stay Connected

Photo Courtesy of Infiniti

Two new studies by Cisco and J.D. Power and Associates show what car buyers want from their next vehicle.
J.D. Power and Associates’ 2013 U.S. Automotive Emerging Technologies Study received responses from 16,758 vehicle owners, which show that car owners are interested in applications for phone pairing, wireless internet, better voice recognition and other features that would improve vehicle infotainment systems. Of those listed above, J.D. Power and Associates noticed that vehicle owners tended to be more interested and willing to purchase features like a fuel economy indicator and active shutter grille vents. Active shutter grille vents close at higher speeds to help maximize fuel economy. This technology has been available on a few vehicles from domestic automakers, including the 2013 Chevrolet Cruze Eco, Ford Focus SFE and Dodge Dart Aero.
“Vehicle owners are continually aware of rising fuel costs and the need for better fuel economy,” says Mike VanNieuwkuyk, executive director of global automotive at J.D. Power and Associates. He adds that car shoppers have become more tech-savvy, and that they’re interested in new technology that helps them save money on fuel.
While there is some interest in autonomous driving, the J.D. Power study finds that vehicle owners are more interested in semi-autonomous functions like emergency braking and steering and automatic park assist. Smartphone integration is also important. The study shows that 82 percent of car owners with smartphones were attracted to vehicles that allow them to pair their phones with a vehicle's infotainment system.
The Cisco Customer Experience Report is a global study that gathers research from more than 1,500 consumers in 10 countries. The report shows 65 percent of respondents would share personal information, like height, weight and what type of entertainment they enjoy, if it meant they could customize their vehicle and driving experience. In addition, 60 percent of those surveyed said they would be willing to provide “biometric information such as fingerprints and DNA samples in return for personalized security or car security.” Cisco says that 83 percent of those surveyed said they research the vehicles they’re considering online, while 17 percent go straight to a dealership.
Cisco says that consumers want to see technology that enhances safety, as well as improvements that save time and money. The survey shows that 52 percent want to track gas prices with in-car tech features. Additionally, 46 percent of respondents said they’d like to be able to track insurance prices, while tracking roadside assistance availability and recall information was important to 35 and 32 percent, respectively.
The Detroit News reports that in-vehicle technology is an “essential selling feature for an automobile,” and that automakers will spend $240 billion on vehicle technology by 2020. “Some of the drivers are government safety mandates for things like improved electronic stability control.”

Read more »

Chrysler Denies NHTSA's Request to Recall 2.7 Million Jeep Vehicles

2002 Jeep Liberty/Photo courtesy of Getty Images

When the National Highway Traffic Safety Administration requests a recall, automakers usually comply. However, Chrysler Group is refusing NHTSA’s request for the automaker to recall 2.7 million 1993-04 Jeep Grand Cherokee and 2002-07 Jeep Liberty SUVs. USA Today writes, “NHTSA says the rear-mounted gas tanks in those vehicles are too vulnerable to leaking and catching fire in a rear-end crash.”
Chrysler says that the vehicles in question are safe, and that the automaker has been working with NHTSA to resolve this issue since 2010. “We believe NHTSA’s initial conclusions are based on an incomplete analysis of the underlying data, and we are committed to continue working with the Agency to resolve this disagreement,” Chrysler writes in a press release.
The Detroit Free Press reports that while most car companies honor NHTSA’s recall requests, “a federal judge could ultimately force Chrysler to comply or side with the automaker.”
"Chrysler must feel like it has a compelling reason to take such a bold stand,” says Michelle Krebs, senior analyst at Edmunds. “Since Toyota was publicly humiliated for dragging its feet on recalls just a few years ago, automakers have been quick to recall vehicles at NHTSA's request.” Edmunds reports that NHTSA noted 15 fatalities and 41 injuries supposedly caused by rear-end collisions in Jeep vehicles after extending its investigation last June.
NHTSA’s investigation was spurred by the Center for Auto Safety, which claims that the 1993-04 Grand Cherokee is four times more likely to catch fire in a crash than competing SUVs.
Chrysler says that the Grand Cherokee and Liberty “met and exceeded all applicable requirements of the Federal Motor Vehicle Safety Standards,” and that the risk of a fire in a rear-end collision is less than once for every million years of operation. The automaker claims that the risk is similar to the chance of crash-related fires in competing SUVs built around the same time.
Owners with questions or concerns can call Chrysler customer care at (800) 334-9200.

Read more »

Auto Sales Strong in May

May sales numbers show a robust month of new car sales. While that's good news for car companies, new car transaction prices were also high, which means consumers are paying more for new cars.

The 2014 Cadillac ATS. Cadillac posted the largest sales gain in the industry for May. (Photo courtesy Cadillac)

According to data from Automotive News (subscription required), total automotive sales for May increased 8 percent compared with May 2012. So far in 2013, car sales are up 7 percent compared with the same period last year.
Cadillac and Porsche saw the biggest sales gains, with 40 and 38 percent increases compared with May of 2012, respectively. Cadillac says the sales gain are the brand's biggest increase since 1976 and makes the Cadillac the fastest growing automotive brand in the country. Infiniti, Mitsubishi and Mini posted the biggest sales decreases of mainstream brands. Infiniti sales were down 25 percent compared with May 2012. Mitsubishi sales were down 15 percent and Mini sales were down 3 percent.
Of American automakers, Ford (including Lincoln) had a 14 percent sales increase compared with May of 2012. Chrysler, including its Jeep, Dodge, and Ram brands posted an 11 percent sales increase. General Motors had a 3 percent increase compared with May 2012.
In a press release, Kelley Blue Book says that May new-car transaction prices rose along with car sales. Compared with April, KBB says that transaction prices are up 0.5 percent. That works out to consumers paying an average of $152 more on each new car.
As the increase in transaction prices show, strong car sales aren't always great news for consumers.  As demand increases, car companies don't need to discount their products. If you want the best deal on a new car, it may pay to wait until car sales slow down. If you can't wait, brands with weak sales are likely to have the best discounts. For example, Honda Motor Company sales, which include the Honda and Acura brands, only saw a five percent increase in sales compared with May 2012. KBB reports that their transaction prices in May were actually 0.4 percent lower than they were in April as dealers dropped prices to try to spur sales.

Read more »

Hybrid and Electric Vehicle Owners Could Pay Additional Taxes

Photo Courtesy of Nissan

If you live in a state that charges gasoline tax and you drive an electric or hybrid vehicle, you may have to start paying extra fees. ABC News reports that North Carolina, along with some other states, is considering legislation that would charge fees to electric and hybrid car drivers. Many states depend on a gas tax to fund road maintenance. With more fuel-efficient cars and electric vehicles on the road, state governments who charge this tax aren’t receiving as much money and are looking at other fees to make up the shortfall.
In an editorial arguing against the new fees, USA Today says, “As of the beginning this year, state gas taxes ranged from a high of 50.6 cents a gallon in New York to a low of 8 cents in Alaska. Most states have plenty of room to bump up their taxes without resorting to more intrusive alternatives.”
North Carolina State Senator Bill Rabon, R-Brunswick, supports the annual fee proposal that would charge $100 for electric vehicle owners and $50 for hybrid vehicle owners. He tells Wilmington, North Carolina’s Star News, “We earn our revenue (for state) transportation from three sources: fees, highway use tax, or the 3 percent tax on automobile purchases, and the motor fuels tax, also known as gas tax.” He adds, “[The gas tax] is about 55 percent of our revenue.”
CNN writes that Washington state passed a bill in 2012 to charge electric car owners a $100 annual tax. Plug-in hybrids and any electric vehicle that isn’t able to travel over 35 mph are exempt from this tax.
USA Today says Virginia has already removed its previous 7.5 cent gas tax and replaced it with a wholesale fuel tax of 3.5%, an increase in state sales tax, a hotel tax and $64 annual surcharge on hybrid vehicles. USA Today adds, “The sales and hotel taxes force many people who don’t drive on Virginia roads to subsidize those who do. And the hybrid fee punishes people who act in the nation’s interest by purchasing more fuel-efficient vehicles.”
New Jersey is considering alternatives to their current gas tax. The proposed bill reads, “Every passenger vehicle registered and title in [New Jersey] shall be subject to a vehicle miles traveled fee in an amount equal to 0.83906 cents per mile.” The bill is supported by State Senator Jim Whelan, D-Atlantic City.
Automakers are trying to meet CAFE standards of 54.5 mpg for cars and light-duty trucks by 2025, so drivers can expect to see more state governments that have depended on gas tax propose new ways to get money for their transportation expenses. According to CNN, Arizona, Michigan, Oregon and Texas should be coming out with their own proposals soon.

Read more »