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Auto
10:48 am
Mon March 28, 2011

Founder of Automobile Magazine Dies

David E. Davis, Jr., founder of Automobile Magazine
Automobile Magazine

The founder and original editor of Automobile Magazine has died. The magazine says the man who was once called "the dean of automotive journalism" died in Ann Arbor, Michigan after complications from bladder cancer surgery.

This from Automobile Magazine Deputy Editor Joe DeMatio:

Davis founded Ann Arbor-based Automobile Magazine with Rupert Murdoch’s backing in 1985 after leaving his second stint in the editor’s chair at Car and Driver, which he moved from New York City to Ann Arbor in 1977.

Davis, who had already refashioned Car and Driver into one of the most literate and entertaining special-interest magazines in America, imagined Automobile Magazine as a celebration of the automotive good life with the rallying cry “No Boring Cars,” but the slogan could just as easily have been applied to everything else in his life:

No boring stories.

No boring meetings.

No boring road trips.

No boring wardrobes.

No boring friends.

No boring employees.

No boring food.

No boring parties.

When he was stuck with boring bosses, he suffered them most reluctantly, and in fact it was his disgust with the management team at CBS, which bought Car and Driver from Ziff-Davis Publishing in the mid-1980s, that propelled him to quit what he had considered the best job in the world, editor-in-chief of Car and Driver.

DeMatio writes that "Davis is survived by his wife, Jeannie, a.k.a. J.L.K., a.k.a. 'the woman who changed my life,' his sons Matthew (himself a well-known automotive journalist) and David III, his daughter, Peg, and his stepdaughter Eleanor, and stepsons Vincent and Tony Kuhn."

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Auto
7:00 am
Mon March 28, 2011

Plant shutdowns in Japan continue to disrupt U.S. auto industry

Ofunato, Japan: March 15th, 2011
Fox News Insider Flickr

The auto industry disruptions triggered by Japan's earthquake and tsunami are about to get worse, the Associated Press reports. From the AP:

In the weeks ahead, car buyers will have difficulty finding the model they want in certain colors, thousands of auto plant workers will likely be told to stay home, and companies such as Toyota, Honda and others will lose billions of dollars in revenue. More than two weeks since the natural disaster, inventories of crucial car supplies - from computer chips to paint pigments – are dwindling fast as Japanese factories that make them struggle to restart.

Because parts and supplies are shipped by slow-moving boats, the real drop-off has yet to be felt by factories in the U.S., Europe and Asia. That will come by the middle of April.

Michigan Radio's Tracy Samilton first reported on how the natural disasters in Japan could disrupt the U.S. auto industry on March 11th.

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Auto/Economy
7:59 am
Tue March 22, 2011

Michigan auto insurance rates among the nation's highest

Opps. A fender bender in Ann Arbor. Michiganders spend a lot for auto insurance.
Steve Carmody Michigan Radio

In one study, Michigan had the highest auto insurance rates in the nation. In another, Michigan ranked 11th in the nation.

That's according to a piece from Dawson Bell at the Detroit Free Press. Bell writes both studies cited "the state's unique mandate for unlimited coverage for personal injuries as a primary cause for high rates."

From the article:

Michigan auto insurance rates led the country -- $2,541 a year for a hypothetical 40-year-old man with a clean driving record -- in an annual survey released last week by the consumer insurance information site insure.com.

The Michigan rate jumped more than 21% from the same survey a year earlier, overtaking Louisiana, which topped the list last year.

Vermont, at $995 a year, was the cheapest place to buy auto insurance, the survey found.

Politics
8:24 am
Mon March 21, 2011

In this morning's news...

user brother o'mara Flickr

UAW leaders say battle could lie ahead in contract negotiations

After giving into concessions during the auto industry's restructuring, union leaders are saying they want some things restored. From the Detroit Free Press:

As the UAW prepares to head into labor talks this summer with the newly profitable Detroit automakers, several top union leaders say a showdown is brewing over this year's contract -- especially at Ford, which has made $9.3 billion over the past two years.

"If they don't restore everything (we) gave up, the membership is going to knock it down," said Bill Johnson, plant chairman for UAW Local 900, which represents workers at the Focus plant in Wayne. "The bonuses that were just announced are just ridiculous."

Snyder to go over local government revenue sharing plan this morning

Governor Rick Snyder will go over his plan for revenue sharing with local governments at a 9:30 a.m. press conference in Grand Rapids.

His budget calls for a $100 million cut in revenue sharing with local governments, and, according to the Detroit News "would make local governments compete for the remaining $200 million, based on their adoption of "best practices" Snyder sets out today."

The Governor is expected to go over plans for local school districts as well today. From the Detroit News:

For school districts, Snyder's budget proposed a cut of about $300 per-pupil on top of an already announced $170 per-pupil cut.

Snyder told school districts in his budget message that for fiscal year 2013 he would set aside $300 million and make it "available to eligible school districts whose employees' share of health insurance costs is comparable to that of state employees."

Details on how that works are also to be announced today.

 

Michigan men's teams out of the tournament, women play on

The University of Michigan men's basketball team lost a close one to defending national champion Duke yesterday. Tim Hardaway Jr. pulled the team close when he hit three baskets down the stretch. Michigan was 2 points away from overtime when Darius Morris' floating jump shot in the lane missed, hitting the back of the rim. Morris said he thought the shot was going in - from the Detroit Free Press:

"I thought it was down," Morris said in the locker room, breathing heavy, trying to compose himself after postgame tears. "I thought we were going to overtime."

The University of Michigan was the last Michigan men's basketball team standing in NCAA tournament, Oakland University and Michigan State University lost close games in the opening rounds.

In the women's NCAA tournament, Michigan State University advanced by beating Northern Iowa yesterday, they'll play Green Bay tomorrow night.

Auto
10:53 am
Thu March 17, 2011

Honda to recall Civics from 2011

2011 Honda Civic
Honda

The Detroit News reports that Honda will recall  2011 model year Civics for possible problems in rollover accidents. From the News:

Honda said the recall...is to inspect and replace a part that could fail to prevent fuel from leaking out of the fuel tank and into the evaporative emissions canister in a rollover.

The fuel pump module is equipped with a rollover valve but because of improper welding of the plastic case, it may break or crack, Honda said.

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Auto/Economy
9:29 am
Wed March 16, 2011

Howell manufacturing plant to stop production

Marelco Power Systems, Inc. told the Livingston County Daily Press & Argus that is will stop production at its plant in Howell.

The company makes transformers, inductors, and control systems, among other things, for the auto companies and other manufacturers.

From the Associated Press:

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Auto
2:56 pm
Thu March 3, 2011

Eight-legged creepy crawly forces Mazda recall

Cheiracanthium mildei, a.k.a. the yellow sac spider, had no comment on the Mazda recall.
wikimedia commons

Mazda is recalling around 50,000 cars after they discovered a certain kind of spider can cause problems in the cars' fuel systems.

CNNMoney.com says the yellow sac spider is the culprit.

The insect can crawl into the fuel system's vent line, weave a web, and cause a restriction that may eventually lead to a leaking fuel tank. A leaking fuel tank is not ideal.

From the recall page at the U.S. Department of Transportation:

Remedy: dealers will inspect and clean up the canister vent line, and install a spring to prevent this type of spider from entering the vent line. This service will be performed free of charge. The safety recall is expected to begin on or before March 25, 2011.

Owners may contact Mazda customer assistance center at 1-800-222-5500.

The recall is for Mazda6 vehicles manufactured from April 8, 2008, through February 8, 2010.

CNNMoney.com says no fires have been reported yet:

There have been 20 reported cases of spider infestation in the Mazda6 -- all have been in cars with 4-cylinder engines, none with V6's. No actual fires are known to have been caused by the spiders, according to Mazda's letter.

No word on what the spider might be looking for in the Mazda's vent line.

Auto
9:47 am
Thu March 3, 2011

Howell auto parts plant fire

Investigators are picking through what’s left after a fire heavily damaged an auto parts plant in Howell on Wednesday.  Dozens of firefighters from six different Livingston County communities joined forces to battle the blaze at the Magna Atreum auto parts plant.  

About 450 people work at the plant which produces dashboards, consoles and other parts for General Motors, Ford, Chrysler, Nissan and Mazda.  The cause of the fire is still under investigation. 

The full extent of the damage and how long it will take get to the facility back up and running is also still being reviewed.  No one was injured in Wednesday’s fire.

Auto/Economy
4:37 pm
Tue March 1, 2011

Consumer Reports calls Chevy Volt a "tough sell"

Consumer Reports says the Volt doesn't make sense for the price.
user mariodo creative commons

In its April auto issue, the magazine Consumer Reports calls the Chevy Volt is a "tough sell."

It's not the kind of review GM has been accustomed to after the car was released with much fanfare.

The Volt was named "Car of the Year" at the Detroit Auto Show.

The Detroit News says that harsh review from Consumer Reports questions whether the car makes "economic sense."

David Champion, the senior director of Consumer Report auto testing center said:

"When you are looking at purely dollars and cents, it doesn't really make a lot of sense. The Volt isn't particularly efficient as an electric vehicle and it's not particularly good as a gas vehicle either in terms of fuel economy. This is going to be a tough sell to the average consumer."

The car costs around $40,000, but with a government tax credit (a credit some lawmakers want to turn into a rebate) the cost comes down to around $33,500.

The criticism came from the car's range in cold weather. The Volt's electric motor range is 40 miles under normal driving conditions, but that range dropped significantly when Consumer Reports tested the car in Connecticut this winter - the range dropped to 25 to 27 miles on electric power alone.

A GM spokesman said his range was better in cold weather. Again, from the Detroit News article:

GM spokesman Greg Martin noted that it's been an extremely harsh winter — and as a Volt driver he said he's getting 29-33 miles on electric range. But he noted that in more moderate recent weather, the range jumped to 40 miles on electric range or higher.

Other criticisms of the Volt were its 5-hour charging time, and a heating system that leaves your hands and feet cold.

The magazine gave the Volt praise for its acceleration and for its "taut yet supple ride."

USA Today reports that in the April auto issue, Consumer Reports gives foreign automakers Honda and Subaru top honors with Ford positing the "largest gain" in rankings overall.

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Auto/Economy
11:56 am
Thu February 24, 2011

More big recalls for Toyota

The 2006 Lexus GS 300 is part of the latest Toyota recall
IFCAR wikimedia commons

If you own a Toyota or a Lexus, your floor mat or the floor carpet could inadvertently help you put the pedal to the metal.

Toyota has announced two recalls and has amended it's 2009 "Potential Floor Mat Interference Recall."

Altogether, more than 2 million vehicles are involved.

The company says the recalls are "voluntary," but the federal government says it requested that Toyota recall these additional vehicles after their investigation into Toyota's unintended acceleration problems.

From USA Today:

This should be the end of it, according to NHTSA administrator David Strickland. "The National Highway Traffic Safety Administration reviewed more than 400,000 pages of Toyota documents to determine whether the scope of its recalls for pedal entrapment was sufficient. As a result of the agency's review, NHTSA asked Toyota to recall these additional vehicles, and now that the company has done so, our investigation is closed."

Here are the cars involved in the recalls and amended recalls:

  • Lexus GS 300 - model year 2006 and early 2007
  • Lexus GS 350 All-Wheel Drive - model year 2006 and early 2007
  • Lexus  RX 330 - model year 2004 through 2006 and early 2007
  • Lexus RX 350 - model year 2004 through 2006 and early 2007
  • Lexus RX 400h - model year 2004 through 2006 and early 2007
  • Highlander - model year 2004 through 2006
  • Highlander HV- model year 2004 through 2006
  • 4Runners - model year 2003 through 2009
  • Lexus LX 570 - model year 2008 through 2011
  • RAV4 - model year 2006 through 2010

You can also check to see whether your car is recalled by entering your Vehicle Identification Number, or VIN on Toyota's website.

The company says Toyota and Lexus dealers will implement the new and amended recalls at no charge to the vehicle owners.

Michigan Radio's Tracy Samilton is following this story and will have an update later today.

Auto
1:13 pm
Tue February 15, 2011

Chrysler selling "Imported from Detroit" t-shirts

A sample image of the t-shirt from Chrysler's website
collection.chrysler.com

For $29.95 you can continue the buzz that started with the "Imported from Detroit" Super Bowl ad.

Chrysler is selling t-shirts with the "Imported from Detroit" logo on its Chrysler Collection website ('imported' from the USA, according to the website).

The Detroit Free Press asked a Chrysler spokesperson if the design will be on other items:

Chrysler spokeswoman Dianna Gutierrez said, “It’s too early to discuss. I don’t have any formal details to share at this time.”

The epic two-minute ad is still running on television in edited down one-minute and 30 second versions.

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Auto
7:13 am
Fri February 11, 2011

Senator Levin wants electric vehicle charging stations on Capitol Hill

Michigan's Democratic Senator Carl Levin
Jeffrey Simms Photography Flickr

Michigan Democratic Senator Carl Levin says he will introduce legislation next week in Congress to create electric vehicle charging stations on Capitol Hill.

As the Associated Press reports, "Levin says establishing the charging stations at no cost to the federal government would help encourage electric cars in the Capitol complex... Levin has said he plans to buy a Chevrolet Volt, General Motors' rechargeable electric car."

Earlier this week, Michigan's other Democratic Senator, Debbie Stabenow, said she planned to introduce legislation that would change government incentives for buying electric cars.

Currently, the incentive for buying an electric vehicle comes when you file your taxes in the form of a tax credit. Stabenow's legislation, the Charging America Forward Act, would give consumers a rebate of up to $7,500 at the time of purchase.

Michigan Radio's Tracy Samilton reported on Stabenow's plan earlier this week:

Currently, cars that qualify for the full rebate include the Chevy Volt, the Nissan Leaf, and the Tesla Roadster. Coda and Wheego also make an electric vehicle that qualifies for the credit. Ford, Fiat and Toyota plan to launch electric plug-in cars within the next year.

Stabenow’s legislation would also commit the federal government to spend two billion dollars to help companies that make advanced lithium ion batteries for vehicles. That’s on top of the two billion dollars the federal government has already spent to help the new industry. 

The Congresswoman admits the legislation is being proposed during a tough budget year, but, she said, "I think that strategic investments in innovation like battery innovation and manufacturing equals jobs – and so I’m hopeful that this will be a priority."

Michigan received the lion’s share of the last round of federal grants for advanced battery development– more than one billion dollars.  Michigan now has more advanced battery companies than any other state.

Auto/Economy
2:53 pm
Wed February 9, 2011

Big checks coming to GM workers

GM's Headquarters in downtown Detroit. GM's Akerson says he "wants compensation for hourly workers to more closely mirror that of white-collar employees and executives." - Wall Street Journal
Rich Evenhouse creative commons

Profit-sharing checks to GM's 45,000 workers are expected to break a record. The news comes as GM is tallying its profit numbers for 2010. The company will release the amount of the checks soon.

The Wall Street Journal reports:

General Motors Co. is planning to pay its hourly workers in the U.S. at least $3,000 each in profit-sharing payouts, the largest amount ever, after the company's return to profitability in 2010, people familiar with the matter said...The auto maker is trying to tow the line between fiscal prudence and expectations that it will share recent gains with workers as the company heads into labor negotiations with the United Auto Workers.

Other U.S. automakers are also sharing the wealth.

Ford Motor Company paid hourly workers more than $5,000, "more than the company was required to pay under the profit-sharing formula in its contract with the UAW," according to the Wall Street Journal.

And Chrysler gave their workers $750 despite the company's losses in 2010.

The Detroit Free Press reports that the checks are expected to be handed out in the months ahead, and the size of the checks could help the automaker in its negotiation with the United Auto Workers union. From the Freep:

The Detroit Three, which will negotiate new labor contracts with the UAW this year, may be giving higher-than-required payments to autoworkers as part of a strategy to convince the rank and file to keep labor costs flat in return for bigger profit sharing in the future, labor experts previously told the Free Press.

Auto/Economy
1:56 pm
Tue February 8, 2011

Government: No electronic throttle problems in runaway Toyotas

Some safety advocates thought software problems could have led to sudden acceleration problems in Toyotas.
Rebecca Bolwitt Flickr

After a ten-month investigation, the results are in.

From the Associated Press:

A government investigation into Toyota safety problems has found no electronic flaws to account for reports of sudden, unintentional acceleration. Transportation officials and engineers with NASA say two mechanical safety defects previously identified by the government - sticking accelerator pedals and gas pedals that can become trapped in floor mats - are the only known causes for the reports of runaway Toyotas. Both issues were the subject of large recalls by Toyota.

Transportation Secretary Ray LaHood says the department's 10-month study has concluded there is no electronic-based cause of unintended high-speed acceleration in Toyotas.

Toyota has recalled more than 12 million vehicles globally since fall 2009 for a series of safety issues. The company has denied that electronics are to blame.

Auto/Economy
2:09 pm
Mon February 7, 2011

Impressions of the Chrysler Super Bowl ad

The "Imported from Detroit" commercial stirred a lot of pride around these parts, and on Michigan Radio's Facebook page.

We posted it last night and the "likes" and comments about pride started flowing:

  • "Gave me chills and made me proud to be a born in Detroiter."
  • "This is the kind of thing we need for our area. This commercial gave me goose bumps."
  • "Great commercial! I'm proud to be from Michigan!"
  • "Chills...I almost started crying! But, I have had almost 14 beers."

Just up I-96, the profs at MSU's Department of Advertising, Public Relations, and Retailing, who release an annual ranking of Super Bowl commercials, put the Chrysler ad in third place – tied with the ads from Audi, PepsiMax, Hyundai, and Bud-Light.

First and second place went to German car-maker Volkswagen (first went to the Darth Vader ad, and second went to the VW Beetle ad).

When I asked them, "why third?"  MSU instructor and the organizer behind the MSU rankings, Bob Kolt, said the margin between 1st and 3rd was quite small, "If a few professors had changed their ranking of the commercial slightly, it could have easily been put in the top spot."

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Auto/Economy
11:57 am
Mon February 7, 2011

Stabenow: rebates for electric vehicles

The Chevy Volt's charging port.
Michigan Radio

Michigan Senator Debbie Stabenow plans to introduce legislation that would change government incentives for buying electric cars.

Right now, the incentive for the purchase of an electric car comes when you file your taxes in the form of a tax credit.

Stabenow's legislation, the Charging America Forward Act, would give consumers a rebate of up to $7,500 at the time of purchase.

The Senator says a rebate would do more to spur consumers to adopt electric vehicles. From Stabenow's statement:

"Michigan is already a leader in emerging hi-tech battery and electric car production. Other countries are acting to develop their own advanced vehicle markets because they realize the tremendous economic potential this new technology represents.  These initiatives will allow Michigan innovators to continue to out-compete the world and create new jobs here"

Naturally, GM spokesman Greg Martin says the company likes the rebate idea, saying "we are pleased to see Senator Stabenow's legislation that integrates all of the components necessary for successful acceleration of electric vehicles in the marketplace.  We look forward to working with Congress on legislation that leads to widespread adoption of electric vehicles."

The Associated Press says Stabenow also wants the incentives to go beyond just consumers:

Stabenow also wants tax credits for investments into electric vehicle recharging stations and for businesses that buy hybrid trucks. It also seeks more funding to develop the nation's advanced battery industry.

And the Detroit Free Press says this bill supports the Obama Administration's plan to get 1 million "plug-in or advanced-technology" cars on the road by 2015. The Freep says it's a goal that "can be reached only if it is supported by aggressive government incentives that also spur the development of infrastructure."

Michigan Radio's Tracy Samilton is following this story, and will have an update later today.

Auto Recall
5:49 pm
Thu February 3, 2011

Ford recalls 365,000 F-150 pickup trucks

Ford Motor Company is recalling more than 350,000 pickup trucks
Toolshed4 Flickr

Ford Motor Company is recalling nearly 365,000 F-150 pickup trucks in Canada, the U.S. and Mexico. The problem is faulty door handles that could lead to the doors flying open in a crash.

The F-150 is the best-selling vehicle in the U.S. Most of the recalled trucks were made in the 2009 and 2010 model years.

The National Highway Traffic Safety Administration says a spring in the interior door handle can break, which means the door may not latch properly. So the door could potentially fling open if the truck is hit on the side.

Ford says there have been no crashes or injuries tied to the problem. Ford is also dealing with a large and expensive recall of nearly 600-000 older model Windstar minivans. That one is for corrosion in the axles that could cause the axles to break.

Auto/Economy
2:24 pm
Thu February 3, 2011

Auto workers get bonus checks

Ford's Rouge River truck plant
Jeff Wilcox Flickr

Detroit automakers are preparing to send bonuses to workers around the region. Even some temporary workers will get a share of growing profits.
Terri Houldieson is technically a temp worker, or a "long-term supplemental employee." But she’ll still get a piece of Ford’s $6.6 billion profit from last year.

Workers like Houldieson should receive, on average, about $2,000 each compared to the $5,000 for regular employees.

"We’ve all put work in and it just shows that they respect us too. Kind of like a pat on the back," says Houldieson.

Ford employs a couple thousand long term temps and most work at assembly plants in Chicago and the Twin Cities.

Houldieson said she’ll buy some new clothes for her two boys, and maybe some expensive shoes to protect her feet during those long hours at the plant.

Auto/Economy
2:31 pm
Tue February 1, 2011

Congressman Upton: power grid not ready for electric vehicles

Is the grid ready for electirc vehicles?
user citizenofthedeep Flickr

Michigan Congressman Fred Upton met with the Kalamazoo Regional Chamber of Commerce this morning during its "Legislative Connection Series" (tickets for the event went for $25 to $50).

The Kalamazoo Gazette reported that Upton talked about the future of energy in the country.

According to the report, Upton said gas prices might hit $4 a gallon by Memorial Day because of political instability and a moratorium on new off-shore drilling.

Higher gas prices, said Upton, will lead to more people buying up plug-in hybrid electric and fully electric cars. Something Upton feels the power grid is not ready for. From the article:

"We're going to need 30 to 40 percent more electricity by the end of the next decade, and we're not prepared," said Upton, Republican of St. Joseph.

Upton said he favors the development of more nuclear power plants and is going to look into why it takes so long to build a nuclear power plant in this country.

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Auto Earnings
7:23 am
Fri January 28, 2011

Ford announces highest profit in more than a decade

Ford announced this morning that it had made its highest profit in more than a decade
Tooshed4 Flickr

Ford Motor Company announced this morning that it had its best annual performance in more than a decade. Ford earned $6.6 billion last year as sales jumped by 20 percent. Revenues rose 3 percent to almost $121 billion.


UPDATED:  11:40 a.m.  Ford CEO Alan Mulally says salaried and hourly workers will share in the good news in the form of profit-sharing checks.  Hourly workers will get average payments of $5,000.



"To be able to share the wonderful work, the wonderful success of this, with everybody's that's worked on quality, on fuel efficiency, on safety -- it's a tremendous day for all of us," says Mulally.


Ford made $7.2 billion dollars in 1999, but it sold nearly twice the number of vehicles to get that result compared to 2010.  Mulally says the company is benefiting from what he calls a "home improvement loan" of $23-billion, taken out in 2006, that financed the company's effort to slash operating costs and improve quality.



"You think about back then (1999) and now, this is a complete transformation of Ford," he says.


Mulally says the biggest challenge this year is not specifically a Ford problem.  He says the U.S. needs to exercise sound fiscal policy so the economy continues to recover.


Ford Motor Company is forecasting higher profits in 2011 than 2010. 


The company's stock dropped Friday morning, however, as investors reacted to Ford's fourth quarter results.  The company's profits were lower than expected because of costs associated with restructuring some debt.


Mulally says the company has made swift progress in paying off that "home improvement loan."  Debt was reduced 43% in 2010.


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