Showing posts with label trends. Show all posts
Showing posts with label trends. Show all posts

Tuesday, December 23, 2008

Year 2008 and Automotive Industry

Its festive season and the countdown has begun for the new year. Another seven days to go for year 2009. How was this year for automotive components and parts industry? Find out the latest innovations in the auto industry, new cars, interesting Automotive Industry in Year 2008facts about the auto trade shows, all the latest happenings this year. From industry news to new launches, you can find various interesting information here.

Year 2008 had in its disguise a number of incidents. On one hand this year the US Big Three automakers suffered from major loss and on the other it was a year for hybrid cars. The upcoming posts will cover different interesting automotive industry news. Keep tuned in to find out the hot n happenings of automotive industry.

Friday, November 28, 2008

LA Auto Show 2008 : Jetta TDI is 'Green Car of the Year '

Now this is news, as this is the first time a diesel powered car is honored as 'Green car of the year'. Volkswagen Jetta TDI has been given this award at the Los Angeles Auto Show 2008. A jury that comprises of automotive and environmental experts chose Jetta TDI as the best 'Green car'. The other cars that were also in the race in this automotive trade event for this award included - BMW 335d, Ford Fusion Hybrid, Saturn Vue 2 Mode Hybrid and Smart fortwo.

The different features/ advantages of Jetta TDI are:

  • This car is in compliance with emission regulations in all 50 states.
  • The fuel efficient car has plush interiors and elegant design.
  • It has a turbocharged direct injection (TDI) engine with a capacity of s 2.0-liter.
  • The engine of Volkswagen Jetta TDI car gives an output 140 horsepower.
  • The torque production is of 236 lb-ft.
  • This car is also value-priced, with a base MSRP of $21,990.
  • The added utility that is given with this car is this car is also available as a SportWagen.
Addressing the press, Stefan Jacoby, CEO, Volkswagen Group of America said, “It is a tremendous honor to have our Jetta TDI awarded Green Car of the Year. We believe our Jetta TDI’s truly offer a no compromise alternative fuel driving experience that provides our customer the best of both worlds—excellent fuel efficiency combined with a dynamic driving experience. With more than 8,000 units already sold since its mid-August market introduction, it’s clear that a Volkswagen clean diesel is what the people want.”

Saturday, November 1, 2008

Transmission of Your Vehicle – Is It Working Properly?

Its been long since you bought a car but till date never got a chance to check that box underneath your car. Oh yes, you guessed it right – its the transmission system that I am talking about. Every time you take your car for servicing and maintenance, you poke in so much money without even knowing the reason why. Often the repair center tells you that its the transmission or gearbox that's the culprit.

Now next time, you get the feel that your gear, clutch or any other automotive transmission system's part is not functioning in the right manner, then perform a check yourself. Here is how you can do it.

Check The Level of Fluid – Always ensure that fluid level is correct. Automakers suggest that one should check transmission fluid at least twice a year. If not done, low fluid level might damage the your car's transmission or automotive transmission parts and consequently can fall on you disguised as a costly repair.

Losing Fluid Often Means A Leakage – Now that you have checked the level of fluid, you might encounter the problem that is - your car might be losing fluid frequently. This is an alarm for you as well as your car. Your transmission system needs immediate attention and troubleshooting. Mind it – Immediate!

Leaking Transmission? – The alarm continues. Discover the possible transmission problems. Leaking automotive transmission needs to be fixed as soon as possible. Leakage should be checked at these places - at filler tube base, at drain hole underneath transmission, between transmission and engine, at selector shaft and radiator. You can also check fluid leaking in speed sensor mounting point.

Checking the Filter – Did you ever change the filter of your car's transmission. If not then, its better to do it now. Filters are an essential auto part in any automobile. Make sure the filter is of good quality.

Perform these checks on your automobile this weekend and ensure that your transmission is working properly. In case of any kind transmission problem, get it rebuilt. So just give your darling vehicle a healthy body. If you love them, you may also try out these tips to increase the lifeline of your dear vehicle. So, this weekend, spend some time on auto transmission check n repair.

Thursday, October 30, 2008

Steering Wheel – Is Yours Luxurious and Comfortable?

Ever thought while you were buying a car – whether the steering wheel of your dream car is ideal for driving. Well, when I said 'ideal', I meant whether the steering system is comfortable as well as luxurious. Steering wheel which is an integral part of automotive suspension and steering parts is operated as well as controlled by the person on the driver's seat.

Hence, it is very essential that you ensure that your car has ideal steering wheel. The cover of steering wheel is vital for comfortable driving. There are huge number of options available in the auto industry. Here are some of the tips to keep in mind while choosing your covers for steering wheel.

Genuine Leather - Make sure that whichever steering wheel you choose has genuine leather as cover material. The right kind of leather will ensure that cover lasts for a longer time. Manufacturers have also come up with environment friendly material for steering wheel.

Non Slip Steering Wheel Hold – Try a hand on the steering wheel and ensure that it is non slip and provides a strong hold or grip to the hands.

Luxurious Feel - An important factor that must be noticed is the luxurious feel and look of the steering. If you don't choose luxurious ones, you are about to mar the look of the plush interiors of your car.

Right Feel For Your Hand – The steering wheel cover should give the right feel to your hand and provide proper protection from hot and cold extremes.

Fit – Size is a vital factor while choosing the covers of steering wheel. Check that the cover fits your steering wheel (mostly 6-bolt steering wheel hub adaptor)

Easy to Install – Installation always is to be considered a priority. These covers should be easy to install. Though the covers should be easy to install, it is advised to be done by professionals always.

Evolving from simple vehicle control components to ones with different features, steering wheels have become styling centerpieces of a number of vehicle interiors. Apart from the tips mentioned above, following are some of the features that are in demand for steering wheel cover.

  • Perforation designs

  • Non-ozone depleting urethane foam

  • Color versatility

  • Hand-sewn construction

  • Variety of leather wrap stitch patterns

  • Full range of surface textures

  • Embossed grains

Try out these latest designs and just add a splash of colors to any steering wheel. You will definitely feel that driving is a more enjoyable experience then. Happy Driving!

Saturday, October 25, 2008

Automotive Springs and Titanium

The smooth functioning of springs depends upon the material used and its attributes. For automotive springs to yield better results and have longer working life, they need to be durable enough to withstand the pressure. Titanium is the ideal engineering alloy at present that has a number of features required for high production volume automobiles.

Till date, steel was considered the best material for auto springs, but titanium alloy is definitely better. Titanium alloy springs do not need as many turns as required by the springs made of steel. This alloy's density is around half of the steel and therefore less material is used to make a titanium spring. Though there is a major difference in density, there is no difference in ability to perform the same task.

The other benefits that these titanium made car springs have are the strength, density, and modulus for almost any weight- or space-sensitive application. These springs have the same manufacturing processes (cold spring winding, cold setting or blocking and shot peening) like that of steel springs. The shear modulus of titanium is low that minimize the need of turns of the springs. Weight is another essential factor that gives these springs an edge over the steel ones. Titanium automotive springs are around 60-70% lighter in weight than the steel springs.

Titanium's inherent attribute of corrosion resistance also makes this alloy ideal for being used in automobile spring. No protective coating is required for titanium springs which is very essential in steel springs. With so many attributes of titanium, the only disadvantage is that of its high cost.

Thursday, October 16, 2008

Advantages Of Podcars – There Are A Number Of Them

Podcars will definitely bring a new revolution in the auto industry through their advanced technology. These personal rapid transits would make commuting within a city easier and definitely faster. This isn't the only benefit of a podcar, there are many. Listed below are the different advantages of Podcar – Your 'Personal Rapid Transit'.

1. Rapid Transit - Its the most obvious and common advantage of these podcar. You can travel a longer distance in a short distance.

2. Its Your Personal Car – Since its small and can accommodate just around 10 people, these future cars serve as your personal car that will take you to your desired destination.

3. Privacy – Definitely An Important USP – Being small, this car would be able to accommodate just your family & friends, thus giving privacy to you. You can now easily get away with those strangers on public transit who stared at you everyday.

4. Fossil Fuel – Electric operated, these cars on elevated guideways would reduce the usage and wastage of fossil fuels.

5. Eco-friendly – Unlike most of other automobiles, the podcars do not pollute the environment. Since it uses clean energy – electricity, it does not cause any harm to the environment.

6. No Frequents Stops – As said earlier, since its your 'personal' rapid transit, these podcars would only stop at desired stops. Being automated, this transit would not stop often thus minimizing wastage of time.

7. Reducing Traffic Congestion – Now, that would be of great relief for anybody on the road. As these cars would run on elevated guideways and not on roads, there would be less traffic congestion.

These are some of the benefits. If your see on the positive side, there are many more. But, there are two sides of every coin. This post covered one side and the next post would focus on the other side that is 'The Disadvantages Of Podcars'. Till then, you have a great time.

Here Comes Podcar – Your Personal Rapid Transit

It's small in size, automated/ computer-guided car and it can take you to the desired destination in few minutes. This is the vehicle of future – Podcars.

Personal rapid transit – Podcars are being defined as private, on-demand non-stop travel system. Electricity is the fuel for these cars that would definitely minimize the use of fossil fuels. This is one of the major advantages of podcars but has stunned the automobile industry that might face risks of being greatly affected when such cars become a common sight in cities.

With accommodation capacity between 2 to 10 persons, these cars would take you wherever you want to go. Sounds convenient! Isn't it? Podcars would run on an elevated guideways thus minimizing congestion on the road.

The concept of podcars is gaining momentum. These podcars are definitely becoming a debatable issue in the news of automotive industry. Now, as every new technology has something good and bad to offer, this one has them too. I'll be covering the benefits of these podcars in the forthcoming posts. Till then, be optimistic to get a ride soon in the podcars that might be coming soon to your city.

Monday, October 6, 2008

Paris Motor Show: Greenery Through Cars!

Well, as I said in the previous post that 'Go small & green' is the most in thing in the Paris Motor Show, 2008 or rather I should say this is the latest concept of the automakers, this motor show is unveiling a number of cars that advertises this concept. To me it seems to be that these green concept cars are mere promotion gimmicks or just ways to pacify the demand for lower emission vehicles (not to forget, obviously with lower fuel consumption levels.)

Popularizing the word 'greenery' that forms a part of almost every news from automotive industry, these cars are replies to issues on increasing global warming. In order to compete in the market and build up their image of being environment- conscious, almost all major automobile players are unveiling 'their eco- friendly cars'.

While Renault comes up with Zero Emission i.e. ZE cars, Fiat is introducing this year its Pur 02 – that's a car which would run only on thin air. Besides these, there are dozens of such cars being launched this season. Some of the top promises or special features of these green cars are : stylish models with neon glass, acid-green windows for better insulation thereby saving energy, minimum carbon dioxide emission, fuel efficiency, modified gearboxes, enhanced aerodynamics, 1.2-litre petrol engine and more.

Looks like the auto industry is soon to be packed with these cars that are ready to make the world green. Will it make some difference to the environment? The question arises - 'Is the grass greener on the other side of the fence?'

Tuesday, September 16, 2008

Used Cars: Honda Reigns Supreme In Japan

Amidst speculations of how the Wall Street could weigh on the automotive industry sales and GM's request for the government's support on battery development, the car maker Honda has come out on top in satisfying used-vehicle owners in its home ground Japan.

The findings came to light with the release of a J.D. Power study. The study measured used-vehicle owner satisfaction with the dealership sales and delivery process based on four factors that contribute to overall satisfaction: contract and delivery; sales personnel; vehicle purchased; and facility and display.

The following chart shows the results with the points garnered by different manufacturers.
The researchers also spotted that regardless of the vehicle’s model year, customer satisfaction with manufacturer warranties was consistently higher than satisfaction with automotive dealer warranties. For instance, those who purchased a 2002 model-year vehicle or older with a manufacturer warranty, satisfaction scores were 31 points higher, on average, than among customers who received a dealer warranty.

Additionally, customer expectations about the duration of warranty coverage varied according to the cost of the warranty. Of the customers who said that they would like a free warranty included with their used-vehicle purchase, 41 percent said one year's coverage was acceptable. And of the customers who were ready to pay for warranty, 27% wanted coverage for three years, while 24 percent for five years.

The following factors contributed to overall satisfaction of customers.
The study is important because new-vehicle sales have decreased in Japan, consequently, vehicle manufacturers are focusing their efforts on used-vehicle business in order to remain profitable.

Also, as the study has shown, warranties are an important factor affecting customer satisfaction, which in turn affects recommendations and repurchase intentions. So there's a need for dealers to review their current warranty programs and bring them at par with customer needs. Further, the non-authorized used-vehicle dealerships who don't have partnerships with vehicle manufacturers need to ensure that their warranties match manufacturer warranties.

Honda seems to be in the limelight for good showing in different areas, including its concept Honda Insight which is to show up at the upcoming Paris Motor Show.

Thursday, September 11, 2008

Auto Industry: 7 Emerging Trends

The automotive industry is operating in an acute transition mode, thanks to the economic, technological, political,.etc influences. And while car manufacturers administer their own tweaks to their products, OEM's and auto part manufacturers would have to deal with their own set of challenges to adapt.

Several, emerging trends in the automotive engineering are evident as highlighted at PR Web.

1. Turbocharging will be popular again:

As a consequence of skyrocketing fuel prices smaller engines that generate more power would need to be built. Turbocharging already prevails in Europe, it would be in the US too by as early as 2010.

2. Internal combustion engine will evolve.

While the internal combustion engine stays, it will take on newer avatars owing to alternative fuel technologies used to drive the engines. For instance, plug-in vehicles, battery- powered cars and fuel cells powered automobiles. At the same time requiring, that the engines are ever more efficient.

3. Emergence of Biofuels

Biofeuls are likely to become popular in many parts of the world. For OEMs this means that they must rely on fail-safe materials due to a lack of standards for biodiesel. In Brazil use of biofuels has already achieved independence from petroleum fuel sources.

4. Consolidation of automotive fluids within assembly plants

Systems and processes for assembly plants meant to achieve less complex inventory management of fluids would be needed. And that this trend has already led to consolidation efforts that rely on multiple-use fluids.

5. Continuing vehicle electrification

Today as a result of advancements in electronics, most advanced electronic items can be added within the confines of 14-volt electrical systems. Consequently, most automobiles can be steered or braked electronically without voltage architecture beyond 14 volts. More systems will come under the electrical system reach.

6. The need to manufacture environment friendly refrigerants

A 2011 EU standard aims to eliminate the use of R-134a, the A/C system refrigerant currently used worldwide. The following are three options for OEMs based on their location:

7. Emergence of Round-the-Globe Engineering

Major OEMs are setting up development centers around the globe. While Asian OEMs prefer satellite centers that take principal direction from a larger parent center, the North American model seems to allow these centers a given specific platform (and powertrain) development responsibility. And this necessitates local sourcing as well as local engineering and materials decision-making.

And BTW, see if you can afford to miss the 2008 Paris Motor Show.

Friday, August 29, 2008

Happy Auto Insurance Customers = Increased Renewal Rates!

Auto insurance is an integral supporting component of the auto industry. To have happy and content auto insurance customers with high commitment levels is perhaps the best way to grow an auto insurance business and rise above competition. This is so because satisfied customers make more recommendations, are more likely to renew their policies, and at the same time are much less sensitive to pricing offers from competitors to win them away from you.

The findings have come to light from the National Auto Insurance StudySM by JD Power. The study set out to measure customer satisfaction with auto insurance companies across five factors. In order of importance, they are: interaction, policy offerings, billing and payment, price and claims.

The Results:

Switching Insurers

The study finds that 59 percent of customers with high commitment report they would not switch their auto insurer for any price, compared with only 9 percent of low-commitment customers who say the same.

Insurance Renewal

Auto insurers with highly satisfied customers have a renewal rate that is 9 percentage points higher, on average, than insurers whose customers report low levels of satisfaction.

Policy renewals are also much more likely among customers with high commitment levels, as 90 percent report they “definitely will” renew their auto insurance policy, compared with only 14 percent of low-commitment customers who indicate that they “definitely will” renew.

Recommendations to friends and family

Customers with low commitment levels are also much less likely to provide recommendations to friends and family (9%) compared with highly committed customers (81%). Additionally, the average number of recommendations made by customers with low commitment (1.4) is notably lower than the number of recommendations made by high-commitment customers (7.7).

The Companies' Interaction With Customers

While all factors of the auto insurance experience are important, insurers can make the greatest impact on satisfaction by focusing on and increasing customer interactions.

The experts opined that proactive, outbound communications significantly improve the customer experience. And the more engaged auto insurers are, the more satisfied customers become. Proactive measures could include resolving issues on the first contact, offering annual policy reviews, providing online access to policy information and increasing customer awareness of policy discounts, and would enhance the overall experience.

Why delighting customers is important?

First, Retaining customers is critical because in the auto insurance industry even one-percent shift in total market share can amount to a $1.6 billion dollar shift in premiums.

Second, there's intense competition in the marketplace and the consistent improvement by carriers over time signal that insurance companies has shown that simply satisfying customers isn't enough to remain competitive. Since customer expectations evolve continuously companies need to keep on improving to stay abreast with customer expectations.

The following are the top 10 companies with the best Customer Satisfaction Index scores:

Over the years the overall satisfaction across the auto insurance industry has increased. It is up from 781 points on a 1,000-point scale in 2007 to 787 in 2008. Additionally, satisfaction has increased steadily during the past five years, improving by 25 points since 2004. In 2008, eight of the 27 profiled insurance carriers demonstrate significant year-over-year-improvements in customer satisfaction.

Another, related study conducted by the Insurance Research Council (IRC), found that auto claims higher for lighter vehicles than heavier. The auto industry has recently seen a surge in demand for lighter automobiles due to the increasing gas prices. And now this study finds that the auto injury claim costs appear to be on the rise too. Reportedly, the auto injury claims are about 14.3 percent higher for passengers commuting by lighter-weight vehicles than for the heavier ones. In fact, experts also believe that that higher average claim costs associated with lighter vehicles have the potential to offset, to some extent, whatever beneficial effects might occur from less driving.
On the whole the automotive insurance market is quite competitive, and insurance companies would need to be innovative and proactive to remain competitive.

Meanwhile, if you'd like to thrill yourself in November this year, then the LA Auto Show 2008 is the exhibition to visit.

Wednesday, August 20, 2008

UK & German Consumers Covet Hybrids!

Consumers in Germany and the United Kingdom have expressed strong interest in alternative powertrain options, such as hybrid-electric and clean diesel automobile engine technologies, according to recent study conducted by JD Power

The study was meant to measure consumer familiarity, interest and purchase intent for 13 emerging automotive technologies in Germany and the United Kingdom before as well as after an estimated market value was revealed.

The study found that before the average market price was revealed, interest in hybrid-electric technology ranked sixth and clean diesel ranked 12th among consumers in Germany. Additionally, prior to price introduction, interest in hybrid-electric technology ranked fifth and clean diesel technology ranked sixth among consumers in the United Kingdom.

However, once the average price was revealed, interest in alternative-powertrain technologies increased among consumers in both markets. In Germany, hybrid-electric technology ranked second and clean diesel ranked fifth among consumers. In the UK, clean diesel technology received the highest interest among consumers after the market price is revealed while hybrid-electric technology ranks third.

Apparently, of the 13 features examined in the study, alternative powertrain technologies and especially the clean diesel technology turned out to be the favorite among consumers in Germany and the UK in comparison to the US.

The differences in preference are attributed to tendency of consumers in European markets to purchase smaller vehicles, which are also better suited to hybrid-electric technology. Furthermore, Diesel automobile engines too have a stronger appeal and presence in Europe than in the United States.

During the study, when the respondents were quizzed before the average market price was revealed three features namely, portable navigation devices, built-in navigations systems and active cornering headlight systems (a vehicle-sensing feature used to enhance night driving) invited the highest interest among consumers in both Germany and the UK. At the same time UK's favorite were portable navigation devices, while the German folks were attracted more towards cornering headlight systems.

Another interesting find came after the market price was revealed to consumers. After which consumers in both Germany and the United Kingdom seemed to be much less interested in satellite radio compared with consumers in the US.

Age Wise Preferences

In Germany, consumers ages 38 years or older were more willing to pay the market prices for HD radio, navigation systems, collision mitigation systems, clean diesel technology and active cornering headlight systems, compared with consumers ages 16 to 37. Conversely, consumers ages 38 years or older in the United Kingdom were typically less willing to pay market prices for emerging technologies in general compared with younger consumers.

Gender Wise Preferences

Among consumers in both Germany and the United Kingdom, males expressed higher levels of awareness for the 13 emerging technologies included in the study, compared with females. In both markets, one of the largest gaps in awareness between males and females seemed to exist when considering awareness of premium surround sound.

Hybrids, of late have garnered a lot of interest, and the real or perceived disadvantages of hybrids seem to be waning away at a much faster rate. Perhaps skyrocketing gas prices have had a big contribution to the fast changing perceptions. Nevertheless, the auto part manufactures and automakers now know for sure what consumers want?

Friday, August 8, 2008

Study: Vehicle Quality Dictates Customer Satisfaction!

Automobile manufacturers can benefit from repeat purchases and word of mouth recommendations for their products, if the long-term dependability rates for their products are high.

So will we see auto makers highlighting dependability as a selling point during the upcoming automotive trade events?

Deterioration in vehicle quality during the first three years of ownership strongly affects overall customer satisfaction as well as customer willingness to recommend their vehicle model, found a recent study by JD Power.

How Quality Affects Satisfaction?

This study measured problems experienced by original owners of 3-year-old (2005 model year) vehicles and found that on average, customers report experiencing 75 percent more problems in the third year of ownership than during the first 90 days.

The models with the largest increase in problem levels resulted in the highest declines in customer satisfaction as well as the probability of the owners recommending their vehicle models.

On the contrary, those models that averaged less than 35 percent problem growth fared a lot better in overall satisfaction during the three-year period. However, none of the models studied, reported lesser problems by the third year.

Where The Auto Makers Have Failed?

Although, car manufacturers aren't completely indifferent to the problems of car owners, and have indeed addressed quite a few issues, the following problems have remained unattended during the three year period, since the study began in 2005, up to now.

These problems include:
  1. Excessive wind noise
  2. Noisy brakes
  3. Vehicle pulling to the left or right
  4. Issues with the instrument panel/dashboard
  5. Excessive window fogging
In fact all of these problems are the five of the top 10 problems reported industry-wide in the 2008 Vehicle Dependability Study, and that they were among the top 10 most frequently reported problems in the 2005 Initial Quality Study too.

I know how irritating noisy braking systems can be, automakers need to act fast and do something about these. Perhaps an extra attention to these issues before a vehicle launch would result in happy consumers, and consequently, increased customer satisfaction.

Why Car makers Still Deserve Kudos?
  • The results also show that long-term vehicle quality has gone up by 5 percent industry-wide in 2008.

  • Compared with 2007, there's been an overall decrease of 10 problems per 100 vehicles.

  • Between 2007 and 2008, over 60 percent of the 38 nameplates studied showed improvements.
And out of the 19 segments studied, the midsize premium MAV segment improved the most with 36 percent. Next in line were the compact car and midsize car segments, both of which combined, accounted for over 50 percent overall industry improvement.

With the highest improvements reported in the small car segment, it's good news for consumers because these are also the segments which have become the 'hot cakes,' in the wake of skyrocketing gas prices and a wobbly economic scenario.

Vehicle Dependability Scorecard

For the 14th time in a row, Lexus ranked highest in vehicle dependability, improving by 25 problems per 100 vehicles since 2007 to achieve a score of 120 PP100.

The following graph shows the first 23 brands by rank.

The figure below shows the top three models for each of the car segments.
The chart below shows the top three models for each of the Truck/Multi-Activity Segments (MAV).


So while car makers fix their products, you might want to take a peek into the hunting ground for car buyers these days.

Friday, July 11, 2008

11 Exclusive Disadvantages Of Hybrid Cars!

A recent study by NADAguides revealed that only a handful of Hybrid Cars at present make sound financial sense, and only for some of those considering to buy the automobiles due to rising gas prices.


The advantages and disadvantages of hybrids have been debated for long. The following are 11 opinions against the hybrids, which have been echoed from time to time. While some might be genuine, others could be dated and some just bad publicity. Once, you've skimmed through them, you might want express yourself by writing comments.

  1. Price: Hybrid cars are known to cost higher, about $2,000 to $5,000 more than autos running on petrol or diesel automobile engines. Large battery packs and technology used is usually blamed for higher cost for these vehicles.
  • Costly Registration: Some states in the US charge more as fees towards registration, adding on to the initial high charges.

  • Costly Insurance: Since insuring costlier autos is expensive, the same applies to insuring a hybrid that’s costlier than its gas operated counterpart. Apparently, you don’t get any special offers on insurance if you buy a hybrid, if at all you get the insurance.
  1. New Technology: While the manufacturers rigorously test the autos before they are brought out in the market, the relatively new invention of a hybrid might come up with a type of problem that’s not been conceived or discovered yet. Further, in such an event it could take some time before a solution is formulated.
  1. Safety: Here’s another concern that’s high on potential users’ minds and this is something that most humans that inhabit the planet wouldn’t want to compromise upon. The following are the key points of “terror!”
  • High Electric Charge: Most of these cars make use of huge packs of automobile batteries and there’s an enormous amount of charge within them. In case of an accident, all that potential electrical energy can cause further injuries to the occupants, if not electrocute them. Further, cutting out electricity connections is one of the foremost priorities of the emergency rescue workers during vehicular extrication, with more electric batteries than ever to deal with, the danger looms large and rescue efforts could be stymied. Finally, the charge reaching any leaking fuel or an automatic deployment of airbags unnecessarily poses an additional threat.

  • A Bit Too Light: Since these new age babies are lighter, they are prone be damaged more during stormy conditions if not literally be blown off the ground during high winds. Furthermore, lighter weight means lesser mass and thus these vehicles aren’t quite compatible with the weight of conventional cars, hence the forces generated during a collision might impact them more or they might spin like a top.
  • Dangerous to Pedestrians: Recently, many eyebrows were raised at the US senate about the danger posed to blind individuals navigating the road by super quiet cars. Consequently, the senate preliminarily approved a bill to study how to deal with hybrid vehicles that are a bit too quiet for blind persons.
  1. Maintenance: Apart from the initial cost of purchase sometimes maintaining the machinery to becomes somewhat challenging.
  • Break Down: In the event that your car breaks down the relative exclusivity of the cars technology could be somewhat troublesome for you to get a quick fix. The cars being newer your local mechanic or others like them might not be prepared or have the skill set, or the automotive tools to repair it. Moreover, the replacement of complex and exclusive components might burn a bigger hole in your pocket.

  • Batteries: Sometimes, the batteries of the car need to be recharged at least once in 15 days. In case you need to be away from your home and your car, you might need to think twice before leaving your car to “rot” behind you, or you might have to make an arrangement for someone to take care of it. Further, batteries are a costly piece of equipment and with the hybrids they usually need to be replaced every 150,000 to 200,000 miles.
  1. Performance: Other concerns relate to these cars not possessing the same abilities as their conventional counterparts, these cars seem to be falling short of perfectly matching the performance of the gas cars.
  • Slow Acceleration: The new age autos for now are a bit slow to accelerate when compared to their conventional counterparts. Hence, it might just take a bit of adjustment on the owner’s part about the envy they might feel of the conventional cars and their users. Or perhaps as more R&D goes into making these autos match up to the gas only cars, they could indeed be at par in reality albeit after sometime.

  • Less Towing Capacity: For those users who’re interested in the towing capacity of these cars may again find it somewhat lower in comparison to gas cars. A solution would be to purchase a hybrid SUV that inherently has more power, but the towing consideration by itself hardly makes sense to go ahead with such a purchase.

  • Less Mileage: Surprisingly, lower fuel costs is what the unique selling proposition of these cars, and they are indeed more fuel-efficient than the gas cars. The problem reportedly crops up on freeways and highways where the fuel mileage compared to gas cars is either at par or worse than the gas cars. Some even opine that owing to a large number of battery packs these cars become heavy, thus affecting fuel economy negatively. Intriguing!

  • Cold Whether: Batteries have a hard time performing in cold weather, sometimes they are half as efficient compared to warm whether conditions. Consequently, the automobiles powered by batteries too would have a hard time performing in the cold.
  1. Environmental Pollution: Claimed to be environment friendly, they aren't 100% environment friendly, they do comprise a gasoline engine which does behave the same as that the usual gas cars, so they seem to be only relatively better.
  • Manufacture: The eco-friendliness of these cars has been questioned on account of the manufacturing process. It has been estimated that to manufacture a hybrid leads to more energy consumption and environmental pollution compared to manufacturing a normal gas car.
  • Ecological Hazard: In case a hybrid is involved in a mishap and lands up in a pond, a lake, or a canal the leakage of the battery constituents might lead to an ecological hazard, similar to the one like an “oil slick,” albeit on a smaller scale.
  1. Ugly styling: Many people have questioned the styling of these vehicles and also that there are just a handful of models around to choose from. Sometimes, potential buyers have found the existing models too “ugly,” to be bought.
  • Less Space Inside: Due to the requirement to house voluminous battery packs some of the models have to compromise on the space that’s left inside, apparently too much room has to be allocated to secure the batteries.
  1. Resale Value: The resale value of the vehicle raises another question mark on their cost effectiveness. The warranty of the battery usually runs out of time after a drive of 80,000 to 100,000 miles. Now, given an automobile with a technology that’s still maturing and with warranty not available for expensive battery replacements, the trouble of repair, maintenance and spare parts, a used hybrid doesn’t offer a good value proposition.
  1. Need To Learn New Driving Habits: The driving habits needed to reap the benefits from a hybrid car somewhat vary from the gas driven ones. For instance, and for these cars stopping and restarting the engine in effect consumes more power, so you’d need to be habituated in case you aren’t. Driving slow is the key and drivers should maintain constant speeds. Other driving advice specific to a hybrid might put pressure on the buyers to necessarily learn the new tricks.

  2. Difficult To Purchase: Purchasing a hybrid could make it tough for you due to a couple of reasons. First, you need to educate yourself of the technicalities about the various types and technologies used by different manufacturers, not all hybrids are created equal. Second, a manufacturer is less likely to give you a neutral account about the vehicle’s merits and demerits, as they would be more interested in selling than telling. Third, getting first hand experiences and authentic reviews could be difficult as well.

  1. It Takes Too Long To Reap the Benefits: It’s claimed that the cost savings on fuel in the long run would offset the initial costs incurred, but apparently this long run is a couple of years not days or months. The latest study by NADAguides showed that a driver in Los Angeles (highest gas price location), will break-even about 18 percent faster than a driver in Houston (highest gas price location). Further the distances to be covered by driver in the study range from 18,292 to 67,685 miles to just break-even. So you could be in for a wait of about a year, or less or even more based on your travel metrics.
I'm sure, there's a whole lot more to consider before making a purchase decision that really makes a difference. Perhaps there's much more than moving ahead with purchase simply because gas prices are moving north.

Saturday, July 5, 2008

AutoTrend: Automobile Buyers' Hunting Ground

Despite the present tough times for the auto industry, automobiles are still selling, albeit a bit less. As consumers continue to search for cars, with an increased focus on fuel economy than power, auto marketers would need to keep a tab on the sources of information car buyers seek so that the buyers remain accessible to them.

A recent J.D. Power report highlights the hotspots car buyers frequent in search for information for making a purchase and more. Following are some of the insights from the study.

An Exodus to Online Television

  • “A majority of new-vehicle buyers—68 percent—report going online to find information on television shows”
  • “The reach of online television show content among new-vehicle buyers has increased by 22 percent since 2007.”
  • “Television show content is among the top three types of online information consumed by new-vehicle buyers, along with travel-related information (including maps, driving directions and weather reports) and news (including finance and business-related content).”
  • “Television network sites are issuing online broadcasts of archived television shows, which exposes viewers to pre- and post-roll advertising placements.”

Migration based on Car Buyer Segment

Premium Brand Vehicles

  • “Buyers of premium-brand vehicles tend to seek online television show content with the greatest frequency, and are 8 percent more likely to look up information about television shows online, compared with the average new-vehicle buyer.”
  • Furthermore, “Premium-brand vehicle buyers tend to be frequent users of digital video recorders (DVR), and of the 49 percent of buyers who have DVRs, the vast majority of them—97 percent—tend to skip commercials when they watch recorded TV programming.” Advertisers don't need to sulk at this because, the buyers' “propensity to view television content online provides an ideal alternative way to expose advertising messages to this audience.”

Other Vehicle Segments

  • 79 percent of midsize premium utility vehicle buyers view this type of online content.
  • 76 percent of compact premium crossover utility vehicles (CUV) buyers view this type of online content.
  • 75 percent of midsize premium CUV buyers typically view this type of online content.
  • And “The biggest increase in consumption of online TV content is among buyers of midsize premium conventional vehicles, a rise of 41 percent since 2007.”

Visits Based on Age

  • Generation Y new-vehicle buyers (those born between the years of 1977 and 2002) have always viewed online television content. “While 81 percent of Generation Y buyers visit Web sites regarding television shows...”
  • But now other generations too access the content as much as them. “80 percent of Generation X buyers and 73 percent of Baby Boomer buyers are also seeking this content, demonstrating that this medium is an effective way to reach new -vehicle buyers in various generational demographic groups.”

Why is the Trend Important?

  • Experts estimate that less than 15 million new vehicles will be sold in 2008, which makes it a about a million less than 2007, when 16.1 million were sold.
  • Tracking the trends is important, “As new-vehicle sales shrink, understanding which advertising mediums will provide the best balance of audience reach and composition is absolutely critical.”

  • Also because as an increasing number of new-vehicle buyers seek information regarding television shows on the Web, advertisers would benefit by zeroing in on these sources.

Moreover, the study also found, "that new-vehicle buyers most frequently visit the following Web sites when searching for television content: CNN.com (with 30% reach among new-vehicle buyers); MSNBC (24%); ESPN (23%); and FOXNews.com (21%). Among television network Web sites, ABC is visited most frequently by online users (with 16% reach among new-vehicle buyers), followed closely by CBS and NBC (each with 13%)."

Aside from online television networks study, the Internet as a whole should be an important resource for automotive marketers. The following figure presents the 10 most popular automotive websites. I came across this one at marketing charts, they've got many more interesting marketing graphics.


Friday, June 27, 2008

Top 10 Auto Thieves’ Favorite Vehicles!

Motor vehicle theft plagues all parts of the world and despite many efforts to curtail it, it still remains quite a pain for both the victims sometimes as well as law enforcement agencies. However many countries show a declining trend in motor vehicle thefts. Further, the thieves seem to have a greater affinity for some automobiles.

Often referred to as grand theft auto by police departments, the act of stealing motor vehicles has many motivations. And range from chopping and selling automotive parts to resale of vehicles and even for joyriding. In the year 2003 there were 1,261,226 cases of auto thefts in the U.S. which further decreased to 1,237,114 in 2004 showing a decline of 1.91%. The following are the thieves’ favorite cars in the USA based on 2004 data.

#1: Honda Civic: Introduced in July 1972 as a two-door coupe, the Honda Civic is the second-longest continuously running nameplate from a Japanese manufacturer. Now five generations old, it has won quite a few accolades throughout its history. Some of them include Road Test magazine’s 1974 Car of the Year; Motor Trend's Import Car of the Year; Car and Driver magazine's annual Ten Best; North American Car of the Year and the North American International Auto Show (NAIAS) Car of the Year.

#2: Toyota Camry: Now over 6 generations old the Toyota Camry is a mid-size car assembled by Toyota. Launched in the year 1980 it’s manufactured at several places around the world, viz. Tsutsumi, Japan; Georgetown, Kentucky; Altona, Victoria, Australia and Guangzhou, China. In the year 2007 the National Highway Traffic Safety Administration (NHTSA) conferred a five-star safety rating for frontal crashes for both driver and passenger to the car (whether a thief or not!). You might want to take a peek into an innovation in air bag safety that recently came about.

#3: Honda Accord: The car made its debut in the year 1976 as a compact hatchback and later grew up in to an intermediate vehicle. Now 8 generations old, the vehicle has received several awards such as the Consumer Search's Best Family Car, Motor Trend's Import Car of the Year, Car of the Year Japan, etc. The car has also been featuring at the European Touring Car scene since 1995. Perhaps, it high value plus the “race-ability” is what makes it attractive for a steal and run operation! Off course, they can split apart its various automotive accessories and the engine and sell it to make money.

#4: The Dodge Caravan: The Dodge Caravan and Dodge Grand Caravan are minivans manufactured by Chrysler. The sister models of the product were the Chrysler Town and Country, and the Plymouth Voyager that later became the Chrysler Voyager. Being produced since the year 1984, the automobile is now in its fifth generation.

#5: Chevrolet Full Size C/K 1500 Pickup: This full-size pickup truck line from Chevrolet continued production from 1960 until 1998. The light-duty pickup truck was replaced with the GMC Sierra in 1988 and the Chevrolet Silverado in 1999.

#6: Ford F150 Series: The whole of F-Series from Ford Motor Company has been quite popular and has sold for over 5 decades. With the first ones produced in 1948, the most popular variant of the F-Series full-size pickup trucks is the F-150. It has been an immensely popular vehicle in the United States for 23 years in addition to being one of the best selling trucks for 31 years.

#7: Dodge Ram Pickup: The Ram is yet another full-size pickup truck from Chrysler LLC's Dodge brand. The Ram's head hood ornament was used by the company way back in 1933 to symbolize toughness of these trucks. The symbol was however dropped in the 1950s only to be brought up again 1981.

#8: Acura Integra: First produced in the year 1985, the Honda Integra, was sold as Acura in North America and as a Honda in other parts of the world. Sold both as a sedan and hatchback, the vehicle is a sporty front-wheel drive. Its position vis-a-vis other cars in the Honda lineup, the Integra was falls in the middle, just about the smaller cars like the Honda City, the Honda Civic and the Honda Logo.

#9: The Toyota Pickup: The Toyota Hilux and Toyota Tacoma are both compact pickup trucks built and marketed by the company. The Hilux name was adopted in 1969, until it was renamed the Tacoma in 1995.

#10: Nissan Sentra: This compact car from Nissan, competes with other compact models such as the Toyota Corolla, Ford Focus, Chevrolet Cobalt, Mitsubishi Lancer, VW Jetta, and Honda Civic in the United States. The Nissan Sentra was brought out for the 1982 model year as the US export name for the vehicle Nissan Sunny.

So now you know which are the most popular makes amongst the thieves’ must have lists. However, it’s encouraging to know, as it appears, that the thieves with the passage of time are finding it quite difficult to steal in the USA, see below for the trend.

The Interpol data on auto thefts further clarifies which automobiles are the hottest amongst the ‘stealy folks.’ Look below for the percentage of vehicles and their owners who are victimized across the globe.

The Interpol data pertains to the year 2007 that shows 4.2 million incidents of stealing across 149 countries. However, the hopeful part is that over 37,000 motor vehicles have been discovered.

In the UK, the fall in vehicle-related theft has been to the tune of 10 percent between 2002/03 and 2003/04. The trend is evident from the following illustration.

On the other hand the whole of Europe witnessed and estimated 450,000 stealing incidents in 2004. In Canada, motor vehicle thievery accounted for 171,017 missing vehicles in 2003. And in Australia, barring Queensland there were 8718 reported incidents of motor vehicle theft in 2007.

On the whole, the law enforcement agencies seem to be winning the battle against the perpetrators of auto theft, but it’s still a long way to go before auto theft is almost eliminated.