INDUSTRY NEWS AND UPDATES
News You Can Use
Toyota Recall and Shut Down
January 27, 2010
Toyota announced it would recall approximately 2.3 million vehicles to correct sticking accelerator pedals on specific Toyota Division models.
Toyota has investigated isolated reports of sticking accelerator pedal mechanisms in certain vehicles without the presence of floor mats. There is
a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly
to the idle position.
Toyota’s accelerator pedal recall and suspension of sales is confined to the following Toyota Division vehicles:
- 2009-2010 RAV4
- 2009-2010 Corolla
- 2009-2010 Matrix
- 2005-2010 Avalon
- Certain 2007-2010 Camry
- 2010 Highlander
- 2007-2010 Tundra
- 2008-2010 Sequoia
No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, which will remain for sale.
Due to the sales suspension, Toyota is expected to stop producing vehicles on the following production lines for the week of February 1 to assess and coordinate activities. The North America vehicle production facilities affected are:
- Toyota Motor Manufacturing, Canada (Corolla, Matrix, and RAV4)
- Toyota Motor Manufacturing, Indiana (Sequoia and Highlander)
- Toyota Motor Manufacturing, Kentucky – Line 1 (Camry and Avalon)
- Subaru of Indiana Automotive, Inc. (Camry)
- Toyota Motor Manufacturing, Texas (Tundra)
No other North American Toyota vehicle production facilities are affected by the decision to stop production.
The sticking accelerator pedal recall is separate from the on-going recall of Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.
This is the most up to date information available your Account Manager will keep you informed as more information becomes available. You may also wish to visit the Toyota web site at www.toyota.com.
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Chinese Firm to Produce Saab Models
December 13, 2009
Even as other potential buyers circle Saab, Beijing Automotive Industry Holding has struck a tentative agreement for the right to produce several of the beleaguered Swedish manufacturer?s models, Nelson D. Schwartz of The New York Times reported Sunday.
If completed, people close to the negotiations said Sunday, the agreement would allow Beijing Automotive to produce older versions of the Saab 9-3 and 9-5 in China, but not prevent a separate deal for the entire company, a unit of General Motors.
The fate of Saab?s 3,500 workers in Trollhattan, Sweden, was uncertain after the unexpected collapse last month of a deal between G.M. and the high-end automaker Koenigsegg for Saab. For more information click here.
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US Sales Rise For Ford; GM, Chrysler, Nissan Fall
September 1,2009
Ford Motor Co. said August U.S. sales rose, while General Motors Co., Chrysler Group LLC and Nissan Motor Co. posted declines as the government?s ?cash for clunkers? rebates lured shoppers to showrooms.For more information click here.
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GM Exits Bankruptcy Protection
July 10, 2009
An amazingly quick emergence of the new GM. Out of bankruptcy protection, leaner than ever, and looking to focus on their customers... For more information click here.
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GM Cancels Sedan Hybrids
June 11, 2009
GM has announced yet another change with the cancellation of the Chevy Malibu Hybrid and the Saturn Aura Hybrid. They anticipate a more efficient hybrid product for 2010. For more information click here.
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GM Plant Shutdowns
April 27, 2009
Further attempts to restructure the struggling automaker have plants extending their usual closing time from two weeks to up to nine weeks. For all the details click here.
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Nissan Green Program 2010
March 2, 2009
Under the Nissan Green Program 2010, Nissan Motor Co. Ltd. is working on a range of eco friendly products including a next-generation fuel-cell stack.
From Automotive Fleet
NISSAN STARTS VEHICLE TESTING ON NEW FUEL CELL TECHNOLOGY
TOKYO, Japan --- Nissan Motor Co. Ltd. announced it has started testing a vehicle with a next-generation fuel-cell stack. Announced in August, the new fuel cell unit is 25 percent smaller than the previous model and provides 1.4 times the power output, 130Kw against 90kw before. With half the amount of platinum in its electrodes and a more durable catalyzer, it will also last longer and be less expensive to build, Nissan said. Working toward commercial introduction of the fuel-cell stack, Nissan began onboard testing in late 2008, and in February this year started cold-weather testing at its Hokkaido Proving Ground. The next-generation fuel-cell stack is part of a range of eco-friendly technologies that Nissan is pursuing under Nissan Green Program 2010, a plan focused on developing new technologies, products and services leading to reductions in CO2 emissions, cleaner emissions, and expanded recycling of resources.
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Ford Motor 4th Quarter Loss
January 29, 2009
Despite another loss, this one totaling $5.9 billion, Ford states that it does not anticipate needing an emergency government loan. For the full story from CNNMoney.com click here
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Detroit Auto Show
January 13, 2009
With the instability that is rampant in the automotive industry, it is hard to imagine the annual Detroit AutoShow will be met with the usual fanfare. So far, the 2009 show has been met with a variety of responses. To read what
is being said, please click here
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Factory Closings
December 18, 2008
General Motors Corp., Ford Motor Co. and Chrysler LLC have all announced factory closings, approximately 59 in all, that will take place over the next month. The U.S. auto manufacturers
are facing the worst sales in 26 years. For more information on these updates, please click here
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2010 Ford Fusion
October 30, 2008
Production of the 2010 Ford Fusion is scheduled to begin on 12/20/08. There are some pretty significant changes from the 2009 model. The most notable are the introduction of the Flexible Fuel (FFV) V6 and the Fusion Hybrid. Pricing and specifications are not yet available for the 2010 Ford Fusion.
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2009 Model Year Build Out Schedule
October 30, 2008
The 2009 Model year build out schedule is available
here.
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Oil Prices Continue Fall Despite OPEC's Efforts
October 26, 2008
Source: AUTOMOTIVE FLEET
VIENNA, Austria - After an emergency meeting in Vienna, OPEC announced plans to cut production by 1.5 million barrels a day in an effort to buoy crude oil prices, the Los Angeles Times reported. The price of light, sweet crude has plunged by more than 50 percent since oil's record high above $147 a barrel in July.
But OPEC's plans have thus far failed to reverse the trend. On Friday, crude oil for December delivery dropped $3.69 to a 16-month low of $64.15 a barrel. Analysts said that worries about a deepening global economic slump have trumped all other factors.
"On a day when the Dow was off this much, this lack of a reaction to OPEC does not surprise me," James DiGeorgia, editor of investment newsletter Gold and Energy Adviser, told the Times on Friday. "Virtually, all of the speculators have either sold out this market or they are betting their shirts on the downside trend."
But some analysts believe OPEC missed an opportunity by how they framed the production cut.
"They could have said that they were concerned about a global recession and that they would make sure there would be enough cheap oil available to help spur an economic resurgence and rally the stock market," Phil Flynn, senior market analyst for Alaron Trading Corp., told the L.A. Times. "Instead, they shot themselves in the foot. All they did was add to the panic."
On Friday, the Dow Jones industrial average nosedived more than 500 points before recovering a little to end the day with a loss of 312.30 points, or 3.6 percent, to 8,378.95.
Orginal Article
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Increase in the Optional Standard Mileage Rates
June 24, 2008
Source: AUTOMOTIVE FLEET
WASHINGTON ? The Internal Revenue Service announced Monday an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Mileage Rate Changes
Rates 7/1 through 12/31/08
Purpose
Business 58.5 (previous was 50.5)
Medical/Moving 27 (previous was 19)
Charitable 14 (same)
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GM given strike warnings at 5 plants
April 5, 2008
Source: BY KATIE MERX ? FREE PRESS BUSINESS WRITER
General Motors Corp. faces the possibility of strikes at five plants in Michigan, Ohio and Texas as early as April 13 if the automaker is unable to reach local contract agreements at those UAW locals within 10 days.
"The UAW has notified GM that they intend on issuing a five-day strike notice in five days at our Arlington, Texas; Parma, Ohio; Warren Transmission; Lansing Delta Township and Flint Assembly plants," GM spokesman Dan Flores said. "We remain committed to continuing to bargain in good faith toward reaching a tentative local labor agreement as soon as possible."
The notices, called five-before-five letters, mean that those five plants could go on strike as early as 10 days from the issue of their letters, the first of which went out Thursday.
The threat could further slow vehicle production at GM, where a shortage of parts from striking supplier American Axle & Manufacturing Holdings has affected operations at 30 facilities, including full shutdowns at 10 assembly, engine and transmission plants.
It was unclear specifically what issues in local negotiations caused the unions to issue the strike notices.
Dan Smith, the shop chairman at Local 1005 in Parma, Ohio, posted a notice on the union local Web site Friday morning that said the strike notification letters were issued because the union committee had reached an impasse in local contract negotiations with plant management. He did not specify what that impasse was.
"We're not going to discuss the issues," Flores said. "We're committed to resolving the issues at the bargaining table."
Calls to a spokesman at UAW headquarters in Detroit were not returned.
GM and many of its UAW locals continue to negotiate local contracts. Under the UAW system, the national union bargains for pay and economic benefits while union locals hammer out work rules.
But the matter of which jobs would be classified as lower-paying, so-called noncore positions is not the sticking point in local negotiations, according to GM.
Jim Robinson, an electrician in Arlington, said workers at his plant believed the strike threat was issued to demonstrate support for American Axle workers and was unpopular. Following the issuance of temporary layoff notices in Arlington on Friday, he believes a strike there is unlikely right away. GM distributed notices to Arlington workers on Friday saying that they would be laid off for three weeks beginning April 14, Robinson said.
"When people heard about that five-day letter they were mad," Robinson said. "But I doubt we will go out now, if we're going on a layoff. That wouldn't make any sense."
Contact KATIE MERX at 313-222-8762 or kmerx@freepress.com.
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UNC Honored for Reduced Fuel Use
February 21, 2008
Source: Automotive Fleet
CHARLOTTE, N.C. --- The University of North Carolina in Charlotte received the Centralina Clean Fuels Coalition's annual Clean Cities award for its fuel-reduction program and its move toward alternative-fuel vehicles.
The Clean Cities award honors organizations that demonstrate excellence in using clean transportation and fuel, the Charlotte Observer reported. In 2005, UNCC began replacing its gas-powered golf carts with electric vehicles. The university has invested in 56 electric vehicles to perform on-campus functions like parking lot management and grounds keeping. UNCC projects the new fleet will reduce the university's petroleum consumption by 6,500 gallons, saving $6,400 in annual fuel costs.
The award was presented at the Centralina Council of Governments Board of Delegates meeting on Feb. 13.
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Illinois EPA Begins License Plate Renewal Enforcement
Illinois EPA Begins License Plate Renewal Enforcement for Vehicle Emissions Inspection Program
SPRINGFIELD --- Illinois Environmental Protection Agency (Illinois EPA) Director Doug Scott has announced a change in the enforcement process for vehicles which are currently subject to the vehicle emissions testing program in Northeastern Illinois and Metro-East St. Louis.
Beginning this week, the Illinois EPA will send new, yellow-colored test notices to owners of vehicles subject to testing with January 2008 or later license plate expiration dates. The notices will explain that vehicles must now comply with emissions test requirements before the vehicle?s license plate can be renewed. Previously, motorists whose vehicles were not in compliance with vehicle inspection requirements could have their drivers? licenses and vehicle registrations suspended.
?This is one of the many improvements being made in the vehicle emissions testing program,? said Director Scott. ?The goal of the program is to reduce harmful emissions from vehicles to improve air quality and public health.?
The Illinois EPA mails test notices approximately four months before license plate expiration. Pink warning notices will no longer be sent. This will be the only notice sent by the Illinois EPA.
The Secretary of State will send license plate renewal notices approximately 45 days in advance of license plate expiration. This notice will remind motorists of the need to comply with vehicle emissions inspection requirements.
Motorists may have their vehicle tested as soon as they receive the test notice and are encouraged to test as soon as possible. If the vehicle is rejected or fails the inspection, this will provide ample time to repair the vehicle and have it re-inspected before the vehicle?s license plate expires.
For the majority of motorists who keep their vehicle inspections current, these changes to the emissions inspection law passed by the General Assembly in 2006 will have little impact. Motorists with questions about the program can call 847-758-3400 or 217-785-7449 or visit www.epa.state.il.us/air/vim.
Copyright © 2008 State of Illinois Show Orginal Press Release
Illinois Toll scofflaw revenue falls
Toll scofflaw revenue falls
Drop followed agency lapse in sending notices
By Richard Wronski | Tribune staff reporter
Copyright © 2007,Chicago Tribune
October 5, 2007
The amount of money the Illinois Tollway collected from toll scofflaws dropped dramatically -- to $11.6 million in 2006 from $26.7 million in 2005 -- after the agency stopped sending notices to violators, according to a state report released Thursday.
But the tollway resumed sending notices to drivers who fail to pay tolls and fines two months ago and expects to collect all the money it is owed, officials said.
"We expect to press the violations and pursue the violators to the fullest extent," said Michael King, spokesman for the Illinois Toll Highway Authority.
The lapse in sending violation notices -- from mid-2006 to August -- was one of the tollway authority's several shortcomings that Illinois Auditor General William Holland cited in his annual report on the agency's operations and finances.
The tollway stopped mailing violation notices to the registered owners of vehicles in order to switch to a new contractor. Electronic Transaction Consultants of Texas was awarded a $78 million contract in 2005 to consolidate I-PASS customer service and revamp the toll and violations collection systems.
Since August, more than 8,000 notices to the biggest toll scofflaws, including many who have racked up hundreds of violations, have been mailed. Some of these scofflaws owe tens of thousands of dollars in tolls and fines, King said.
The tollway believes scofflaws account for between 3 percent and 8 percent of the system's 2 million users each day.
The tollway says it depends on tolls, not violations, to run the 274-mile system. It anticipates that $10 million a year in violation revenue will decrease, King said.
"In a perfect world, we'll get less money and fewer people will have violations," he said. "Our goal is to educate people, not penalize those who make honest mistakes, and convince violators it doesn't pay to cheat the tollway."
The auditor general's report said the tollway stopped sending violations in July 2006. This was two months earlier than what the tollway acknowledged in a Tribune article in August. King attributed the discrepancy to the changeover to Electronic Transaction Consultants.
As of Thursday, King said the agency is sending 1,000 toll violation notices a day. The tollway follows several steps to recover tolls and violations, he said.
Drivers with at least three violations receive a letter giving them 21 days to pay the tolls plus a $20 penalty per violation, the opportunity to resolve the problem with I-PASS customer service, or the option to contest the violations by requesting a hearing.
Those who don't respond to the first letter or don't resolve the violations and have five or more offenses receive another letter giving them 14 days to pay the toll plus each violation. If they don't comply, their account will be forwarded to the secretary of state for the suspension of their registration and driver's license.
If there is no response, the fine is increased to $70 per violation. If there is no response in 21 days, the state will suspend the license. Accounts that reach this stage are sent to a collection agency.
The tollway said it has also completed installation of a system to identify improper use of I-PASS transponders on all main line open-road tolling lanes, another shortcoming the auditor general cited.
The audit faulted the tollway for insufficient controls over its financial reporting and accounting, including writing off an unsubstantiated $6 million balance. The authority's practices and procedures for recording and maintaining capital assets also need improvement, the report said.
The auditor general said, however, that the tollway was following its recommendations to correct the shortcomings. King said the tollway's "antiquated" financial reporting system is being upgraded.
By Richard Wronski | Tribune staff reporter
Copyright © 2007,Chicago Tribune Orginal Article
Ford: Hydrogen Cars Close to Production
July 12, 2007
Source: Business Fleet
Ford has the ability to bring internal combustion hydrogen technology to market in cars within five years, according to John Lapetz, the company's program manager, the Associated Press reports.
But that's only if fuel storage limitations can be solved, public fear of hydrogen can be allayed, filling stations set up, and gas prices stay high.
That time frame is reasonable, Gurpreet Singh, team leader for engine and emission control technologies with the U.S. Department of Energy, says.
The Energy Department also says hydrogen can be used as safely as other common fuels if handled properly, and hydrogen-powered vehicles have near zero emissions and get up to 13 percent better fuel economy than their gasoline counterparts.
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Smaller Cars Increase Safety
July 05, 2007
Source: Business Fleet
Consumers are purchasing smaller cars and crash protection has been growing, along with the size of the small cars themselves, MSNBC reports.
Today, small cars feature an array of impressive technologies and thoughtful design touches aimed at maximizing their safety, including front and side airbags. High-strength steel withstands blows with less intrusion into the cabin, and electronic driver aids such as antilock brakes and electronic stability control help reduce crashes.
Additionally, today?s small cars are much bigger and heavier than those of the past. Consider that a 1984 Honda Civic hatchback weighed 1,830 pounds. The lightest version of today?s hot-selling version of the Civic tips the scales at 2,628 pounds, and the Si version weighs 2,945 pounds, more than half a ton heavier than the 1984 model.
According to MSNBC, small cars used to fare poorly in laboratory crash tests and produced grossly higher fatality rates in real-world driving. While many don?t mind the thought of giving up some surplus cargo space or towing capacity that went unused in large cars, they balk at the idea of trading away safety for fuel economy.
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What Is Right Foot Fuel Economy?
June 28, 2007
Source: Business Fleet
Smith System, specializing in professional driver training, recently announced The Driver's Log -- a new educational series that ties the results of driver training to the real-world management issues of both truck and car fleets, the company reports.
Driver's Log 1.0 describes the fuel savings generated by driving less aggressively.
Entitled Right Foot Fuel Economy, this first-in-the-series article details how a systematic approach to driver training can not only reduce accidents but also has the potential to generate significant fuel savings. An example of a fuel savings calculator is included to give the reader an idea on how to evaluate the potential to save fuel.
Drivers who take the Smith 5 Keys training course learn to pace traffic flow to keep their cars or trucks in motion rather than constantly starting and stopping with "the traffic pack" in city driving. The result is a combination of safer driving, less wear and tear on the power train and fuel savings.
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V-6 Engines to Run on 3 Cylinders
June 25, 2007
Source: Business Fleet
With higher government fuel-economy requirements looming and gasoline prices soaring in the United States, the new family of Chrysler Group V-6 engines will have the ability to drop to three cylinders when less power is needed.
This would raise the company's V-6 fuel economy by 6 to 8 percent. The company also plans to expand its new two-mode hybrid powertrain beyond the Chrysler Aspen hybrid and the Dodge Durango hybrid. Both debut next year.
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N.J. Cracks Down on Cell Phone Drivers
June 25, 2007
Source: Business Fleet
The Assembly and Senate of New Jersey recently voted to create a stricter ban on the use of hand-held cell phones while driving last, holding that it creates distractions and poses a safety hazard.
In 2004, New Jersey allowed police to ticket drivers using cell phones, but only if they had been pulled over for another traffic violation.
Under the new law, police could stop a car anytime they see the driver chatting or texting at the wheel. Violators would face a $100 fine for sending a text message and a $250 fine for using a hand-held phone.
If passed, the law would put New Jersey on the same footing as California, Connecticut, New York, and Washington, D.C., which have made similar bans.
A recent Nationwide Insurance Survey estimates that 73 percent of drivers use cellular phones and 20 percent send text messages while driving.
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Civilian Drivers Patrol Highways
June 21, 2007
Source: Business Fleet
In what USA Today terms ?highway snitch programs,? police are increasingly relying on civilians to report reckless drivers to local law enforcement.
Missouri, the District of Columbia and at least 25 other states already have systems in place where drivers can report irresponsible road behavior online, by phone, or by mail. If reports come over the phone, police typically send an officer to investigate. If reports come online or by mail, police verify the license information and send the motorist a letter warning of the dangers of aggressive driving.
The police departments generally appreciate the extra eyes on the road. But others have doubts about the programs? effectiveness, which has never been scientifically evaluated. Some traffic experts worry people will use the system to make false accusations or escape culpability themselves, USA Today reports.
The National Highway Traffic Safety Administration estimates highway accidents cost over $40 billion in damages every year in addition to causing thousands of deaths.
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Nissan Will Offer Titan Diesel
June 18, 2007
Source: Business Fleet
Nissan Motor Co. is preparing to produce a diesel-powered version of its Titan full-sized pickup truck by 2009 for the United States, reports Reuters, sourcing Nikkan Kogyo Shimbun, Japan's industrial newspaper.
The engines will be built by International Truck and Engine Corp., a Navistar division, the Nikkan Kogyo said. International supplies diesel engines to Ford's Super Duty pickups.
Nissan is due to launch a diesel version of its Maxima sedan in the United States in 2010 with engines produced by Renault.
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Alternate Fuel Adoption Will Be Slow, Study Says
June 07, 2007
Source: Business Fleet
An MIT study has concluded that competitively priced alternative-fuel vehicles may not swiftly capture a large share of the auto market even if it?s three-times more fuel-efficient than a traditional car, according to the Boston Globe.
Consumers won?t consider buying alternative-fuel vehicles until a critical mass of them is on the road, the study suggested, and energy companies won?t build alternative-fuel filling stations until they?re certain about future demand.
MIT researchers studying market and consumer behavior at the Sloan School of Management call the situation a Catch 22, according to the MIT News Office.
According to the Boston Globe however, the report also said that if policy incentives to switch to alternative-fuel vehicles are kept in place long enough, adoption will reach a level at which the market will begin to grow on its own
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