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.

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.

Dear GM

In amongst all the news about the automotive industry of late, it was reported that you are considering selling your patent for the 4.5-liter diesel engine. Please don’t; this could be a catastrophic mistake. Wake up! Can’t you see that this could be the basis of an overall redesign?

Such a knee-jerk reaction, brought on by our economy and gloomier forecasts, would defeat GM’s current turnaround plans. This innovative engine design showcases your engineering talent and prowess. Although currently out of production in GM models, these engines are:

• Easier to repair
• Cost less to repair
• Have increased fuel efficiency

Selling this patent would have dire effects. Remember Cadillac selling its cylinder cancellation technology back in the ‘80s. While the cylinder cancellation concept was right, a technical bug hastened the car company’s decision to jettison the technology before the bug could be worked out. Cadillac’s premature decision resulted in other manufactures making cylinder cancellation the concept of choice for engine displacement system to conserve fuel in almost every engine in the market today. With fuel economy at the top of new car buyer’s lists of must haves, followed quickly by low and easy maintenance, the reintroduction of the 4.5-liter diesel engine could be the pivot point in GMs recovery.

Come on GM, lace up those boots and run for it!

Show Us the Books

Car companies are still trying to dig themselves out of the current recession, asking for billions in support funds and promising leaner, more efficient, restructured organization. Like other companies, many hope that the car manufactures take this restructuring opportunity to weed out non-essential employees and broker better deals with the unions.

Some may argue this is painfully poor timing, while others say that this is the new way, a necessity. For years these companies have seemingly mismanaged their books, their companies, their relationships with America. While much of the backroom paper pushing and mice-type is best handled by the experts, transparency is the theme of the day. If the car companies want the American people to fund a bail-out of such staggering size, they need to put their cards on table. They need to show us who and what is being reorganized and why.

It may be ugly. It may be painful. But I say, show us the books.

Are American Cars Old Fashioned? Is that why American automakers are losing money?

With so much buzz about the failing American car industry, these are questions I often get from individuals considering (but worried) about purchasing a GM, Ford, or any other American vehicle today.
The truth is, American cars are just as technologically advanced as their foreign counterparts. Another fact is that foreign automakers are in as much trouble financially as U.S. companies. This perception that American cars are not with the times and the only auto manufacturers in the world in financial trouble is just that—-a perception. It’s a public relations issue that the auto industry needs to spend money on to get themselves out of this hole. Don’t believe me…..read on.

Toyota, who has been posting losses over the last few months, was also bailed out and even posted a recent loss of 39%. Honda also received government funding and posted a recent loss of 36%. By comparison Ford lost 42%, GM 44%, and Chrysler 39%. The difference in financial situation and losses between foreign and American cars is minimal, yet if you shared these facts with the average person on the street, they would not believe you.

When it comes to technology, the reason why Toyota is perceived as a producer of more advanced and innovative vehicles is that they were one of the first—-that’s it. As a matter of fact, American automobiles offer more technologically advanced vehicles to consumers than foreign companies do! From a technological perspective, what distinguishes American and foreign vehicles, is the type of technology they utilize —not the amount of bells and whistles they offer. They both utilize a different approach/innovation to accomplish basically the same thing. They may both use different motors that result in a more fuel efficient car, but they both offer the technology to consumers. They may both use different computer features to make functions smoother, but they both end up with the same result.

Next time you are looking for an innovative car and trying to decide between American and foreign, don’t assume foreign vehicles offer the most modern solutions and are a safer purchase given the negative media. You may actually find more choices by taking a second look at American cars.

Car companies need to reduce operational costs but they also need to invest in something even more important —an aggressive public relations campaign to remove the negative stigma consumers have about American cars. Removing the stigma in itself will help bring new customers and revenue.