TOYOTA’S TROUBLES

Toyota anticipates they will spend approximately $440 million on a possible accelerator pedal recall, which has been reported to have cause deaths and serious injuries here in the United States.

Over 3.8 million vehicles are estimated to be recalled, for a faulty floor mat that can dislodge from the holding clip if equipped or not and suddenly becomes stuck between the accelerator pedal and the floor causing the vehicle to rev out of control.

This is Toyota’s claim and quick fix and it is not settling with many industry experts. Who believe there are other factors that can lead to such unfortunate occurrences even the National Highway Traffic Safety Administration have found other problems on a Lexus ES 350 that was responsible for killing four people in the California.

Although pedal height to floor clearance maybe possible for some of these reported issues there are other areas needs to be explored intensively like the Pedal assembly design which are now cable-less a flyby wire system, loose components, faulty wiring Throttle Body Unit and any accompanying  sensors, monitoring computer command PID’s data signal, and a possible reprogramming of the PCM. A percentage remain that driver error could be a possibility.

To duplicate this intermittent concern can be tedious and time consuming, however for all the lives and money that could be save it is worth every investment, not to mention Toyota’s reputation

For anyone who has ever had a personal computer problem well there is no difference in the automobile.

In today’s sophisticated technologically advance automobile having upwards of thirty  individual modules that control system, like Brake, Steering, Climate Control, lighting, Anti-Theft, Suspension, Seats, Doors, Electronics Controls, Navigation System, Parking, Tire Pressure, to name a few, delivering their information over a network  can at times lead to mishap.

Imagine a classroom full of students all attempting to speak with their teacher at once, and for that teacher to intake, process, and command each student concern simultaneously in repetitive fashion throughout the day, at some point their bound to be an error.

The action taken to correct this problem by the PCM may not be favorable and this is where a glitch can happen. An uncharacteristic response becomes noticeable

Thousands of data are monitored and processed within milliseconds in response to drivers input and command, oftentimes an overload of information can cause an erratic performance where reprogramming the PCM sometimes fixes the problem.

PREMIUM PRICES

Since late spring of 2008, used car prices have been steadily raising based on a number of reasons that contributed toward these factors.

The recession, Job loss, and insecurity have caused buyers to hold off purchasing new vehicles, rental fleets have been holding on to their cars longer, and leaseholders are purchasing their vehicle after their lease term ends, and to make matters worse the CARS program that deplete inventory of almost 700.000 vehicles.

 It has been decades since used cars are in such short supply of almost 4 million units. Dealers are beginning to scramble for used vehicle by any means, even scanning used car classified for vehicle on sale, by private sellers and are trying to make a deal, in order to fill up their empty lots.

When you consider that, dealers could make more profit selling a used car verses new, you begin to understand why they have decide to pull out the conventional way of doing business, even offering you more on your trade-in, some dealers will even buy your vehicle if you don’t buy one from them that is how desperate they have gotten.

Right now it is a seller’s market, sellers could get premium for their used vehicle but do not let greed get in the way

Many sellers are looking at the blue book value and taking it as gospel, almost everyone I have asked this question about selling their car for blue book value said they would want the amount suggested and more, without taking into consideration, condition of vehicle, and various options that can offset the price significantly.

Be realistic ask yourself if you would pay that amount for a used vehicle, set a fair price I don’t mean give it away but again a fair price, and I guarantee your vehicle will be sold in a short time. I have not seen a properly priced vehicle remain on the market longer than average.

If you decide to sell to a dealer, keep in mind that they use the black book and not the blue book and would not pay you premium, but if you negotiate a price between both books and closer to your asking price for a profit then the deal maybe to your advantage.   

Take into consideration, how long have you being trying to sell your vehicle. How much does it cost you each week that the vehicle remain on the market and make a practical decision.

GM Good or Bad Deal

GM today started their new advertisement campaign-telling consumers they can return their new vehicle within 60 days of purchase,

Although this may seem like a lucrative deal, the fine print of the disclaimer is yet to be seen, the trick could be in the details. Is this another three card Monty game or the consumer stand a chance to gain. “Follow the ball”

Here is how the program works

Starting September 14 thru November, the vehicles that are covered are the Chevrolet, Buick, GMC and Cadillac 2009 and 2010 models. In addition, you have 60 days to drive the vehicle, racking up no more than 4000 miles, and do not include lease vehicles 

Reuters reported under condition of an anonymous source that GM would cut U.S. dealers discount by a half percentage point in order to facilitate the campaign. Dealers are already beginning to cry foul, every since they got wind of the program, not all dealers are in agreement, however they all hope it is successful.

If this is such a great deal, why offer when supply is limited. Due to the lack of inventory because of the previous CARS, program that dried up dealership lots if buyers cannot get the car, they want, the quality is not to their expectation, and based on the percentage of returns negative publicity may kick up like a raging storm and hence, image may be ruined for a long time to come.

In the waters of survival, a drowning man will grasp at a straw; this is a very gutsy move by the new GM, Lutz, and the advertising crew, start counting the days.

GM, if you stand behind your product set a solid reasonable price, and says to consumers, THIS IS THE BEST QUALITY FOR YOUR MONEY GURANTEED. The consumers will be your best judge.

Good Luck in you endeavors. YOU NEED IT.

Dealers Cry / Non-Payment

As the frenzy continues many a dealers are feeling the effect of a slow government payout system that already has surpassed the ten days time limit after a claim has been filed in order to be paid in the CARS program.

Dealers are outrage venom is spewing they are searching for answers and someone to hold accountable for the snail pace delivery of government cash in their account. Only a small percentage of dealers have gotten some payment thus creating this fire storm

I have spoken to a few dealers concerning this issue and the cry is the same, it is larger than reported   and has started to resonate. One quote I will remember for a while is from David Wilson representing his dealer group, he said

“OUR GROUP HAS DELIVERED 936 “CLUNKER” DEALS THRU YESTERDAY 8/9/09. WE HAVE SUBMITTED 450, 3 HAVE BEEN APPROVED AND WE HAVE BEEN PAID ON NONE……THE GOVERNMENT NOWS OWES US ABOUT $4,000,000. HOPE THIS WORKS OUT.”

 I certainly feel the crunch for the many dealers not being paid in the cash for clunkers program; however let us look on the bright side.

It is the government that is backing these vouchers and thus payment is more than guaranteed, can you imagine what will happen if dealers are not paid, the economy  would start to decline and the PR would not be pretty for the government administration.

Another bright side is, if the government did not offer such programs would we have sold as many vehicles. The bottom line is all dealers will be paid. When? nobody knows and that is the scariest part; treat this as filing your taxes and waiting for the return.

Many a dealers embrace this clunker program, but is the payment due to them that is driving everyone nuts, bills are piling up and employees needs to get paid

On the dull side the trusted dealer representative NADA either drop the ball on this one, sold out the dealers, do not understand the program themselves, or simply do not give a flying feather.

NADA should also be held accountable they should be more vigilant and vocal; the individual dealers should never have to be making the loudest roar. Come on NADA the dealers have done their job now do yours. Get them paid NOW.

Free Webinar: Consumer Benefits and Scams The Come With Auto Industry Collapse

Free Webinar!

Tuesday June 2, 2009

12 – 1pm Eastern

Details about the auto industry collapse dominates the news but, as a practical consumer or business person, what does this mean for you and how can you benefit? What are the opportunities and scams every consumer needs to be aware of?

Brenton Grant, President of Automotive Consultant Service 8 (www.acs8.com), will be hosting a FREE webinar for anyone looking for answers. During this session we will discuss:

* Dealership closings and purchasing opportunities
* Factory warranties and options–is your vehicle still protected?
* Financing issues and the tricks the pros won’t tell you
* The truth about auto parts availability after bankruptcy (and preventing price gouging)
* Repair scams — red flags every car owner should be aware of
* When to repair and when to buy
* Is this the time to add/modify a fleet?

This event is FREE. Webinar link and call-in details will be sent after registration. For more information about this event, please email info@ewisecommunications.com or call 404.644.2779.

2008 Worst Car Year Ever –But light at the end of the tunnel?

High gas prices, the mortgage crises, the financial market meltdown, and a recession the size of which we haven’t seen in decades created a perfect storm of epic proportions for the auto industry in 2008. Sales slides were steep running from a third to half of what they were a year ago. Chrysler and GM have of course taken incredible hits. Even Nissan, Honda and Toyota sales stagnated with Toyota announcing it’s first ever reported loss as a publicly traded company.

News this week that the economy could stage a recovery later this year, and stronger than expected sales for Ford and Toyota point to a pinprick of light at the end of the tunnel. First quarter sales in the US were certainly boosted by zero percent financing. And with gas prices half of what they were this time last year, a economic recovery in the auto industry could be just around the corner too.

In the News — Thank You!

Hi there, here at ACS8 we like to focus on our clients over anything else. However, we’ve enjoyed attention from a recent press release that we sent out. Here is the link to the press release on REUTERS and just a couple of outlets that picked it up. Thank you to all!

GM Making Initial Steps to Reinvent Brand, Company

GM’s Vice President of Sales and Marketing Mark LaNeve told Car & Drive in an recent interview that GM has the market research which shows that consumers have four main concerns that they want addressed before they will consider buying a new car: “the solidity of the car’s warranty, its safety, the buyer’s own ability to make new car payments, and worries that new cars lose their value quickly.”   GM feels that its current 5-year/100,000 mile warranties reassure consumers, and OnStar gives it a tremendous advantage in safety features over its competitors.

To address the last two concerns, the automaker has developed the Total Confidence program.  This program is additional reassurance to auto buys, because it take over car payments on behalf of the buyer for nine months if the buyer loses their job. “Nine months, all our studies show, is plenty of time to find a new job and resume making the payments,” LaNeve tells C&D.  Buyers worried about their new cars losing their value, can take heart as the program includes an “equity protection clause.  Under the Total Confidence program, buyers can trade in their new car on another GM vehicle, and GM will cover the difference between what a buyer owes on a vehicle and what it is worth, up to $5,000.”

It’s this kind of messaging and goodwill that American car buyers need to see coming from Detriot.  Images of automaker CEOs asking for hand outs have been burned into the American psyche.  But programs like GMs Total Confidence program offer a valuable and needed counterpoint.

1Q09 GM sales slump – Ford and Toyota make gains – Ever Wonder Why?

First quarter auto sales data shows that while GM sales continued to slump, Ford and Toyota made significant gains. Keep in mind that Ford accepted NO bailout moneys and Toyota is Japanese owned. Could it be that American car buyers are steering clear based on principled, ethical reasons – not supporting a company asking for a hand out? Or could it be concern of more practically matters, such as future availability of parts and dealership for repairs, or issues of warranties?

And what happens with GM and Chrysler? There is much talk of them being “smaller, leaner” companies. But could such significantly smaller companies continue to complete with a much larger Ford and Toyota who are already picking over the bones of these all but busted companies? Only time will tell for sure, but remember – American’s love an underdog, not a loser.

Auto Industry Soap Opera – All My Makes and Models? Search for Tomorrow’s Bailout? The Broke and the Bloated?

This week, GM announced that it would be closing 2600 dealerships by 2010 in an effort to shore up the profitably of top performing locations. The Hummer, Saab and Saturn lines are on the chopping block to be sold or shuttered. The once proud Pontiac line has been scrapped.

The daily soap opera continues. This week’s news from GM reads like a sweeps week death of a soap opera heroine. The dramatic scene, the last gasp. But are American auto buyers rolling their eyes instead of dabbing at the corners? With so much up in the air for GM, is there any sympathy left?

GM sales continue to stagnate. While the Total Confidence plan is a step in the right direction, it is hard to restore confidence in a company that is being forced to sell off its brands as if forcing its children to leave. Who wants to buy a car from a brand that may or may not be around in the next six months?

Will the car companies by able to weather the storm? Will they will make it to tomorrow? Will American car buyers care?

Stay tuned, dear reader, for the next episode of Guiding Headlight!