"Tweeting to Sell Cars"

As the Automotive Industry becomes increasingly competitive automobile companies are becoming more and more creative with marketing and advertising strategies.  With social-netoworking becoming a necessity in this day and age, auto companies have seized the opportunity to use social-networking as a  way to advertise their product.  This new strategy is much cheaper than the regular television ads and it focuses on attracting followers.

Toyota Motor Co. is now using individuals that have numerous followers on twitter, facebook, and other forms of social media to advertise their products. "If we have people that are active in social media, then they can bring followers with them," said Dave Nordstrom, vice President of Marketing.  


Social networking is the way of the future that can be used for a variety  of uses. I believe that the automotive industry is taking social networking to a new level by having advertising included in social networking. However, I believe that if this is to get out of control, advertising in social networking will overwhelm individuals and they will treat it as "spam".


http://online.wsj.com/article/SB10001424052748704658204575610593926104822.html
Patrick Mehlert 

Gm makes a recovery

GM is on a fast paced recovery from their complete collapse from a couple years ago. They sold 478 million shares yesterday at 33 dollars a share. They have been paying back the government for bailing them out of bankruptcy and now are on the verge of becoming a powerful company again. The steps they have made in the past years have saved their company and are putting them on top of the competition.

I am proud of GM making such a huge recovery. It went into a huge slump but it didnt give up and with some help from the government which they are paying back now they got back on top. I think that as GM gets more ownership back from the government they will start producing better products and then start creating more profits. I think that it is an upward latter from here for GM and I excited to see what happens from her on out.

http://online.wsj.com/article/SB10001424052748704648604575620833385520438.html?mod=WSJ_business_LeadStoryCollection

"'Black Ops' Jeep Imitates Videogame"

Recently in the video game world there is a great deal of hype about the new Call of Duty: Black Ops game.  Like the games before 'Black Ops' fans have camped outside video game stores waiting for the release of the game, which released Wednesday at 12:00am.

How is this related at all to the automotive industry?

For the first time in the automotive industry's history a car company will have its own car in the video game.  The Jeep Wrangler, built by Chrylser, will be a vehicle in the video game.  Chrysler has now produced between 2500 and 3000 of the limited edition Jeep Wrangler Call of Duty: Black Ops model.  This is the first time that a brand name vehicle will be in a video game other than certain racing games.

This event may have a great effect on the marketing strategies of automobile companies.  Companies are becoming more and more creative in advertising and marketing specific models. We have seen in the past brand name cars in Hollywood movies, but now video games is a new level. It astonishes me how people in marketing come up with these ideas after there have already been so many different marketing strategies.

http://online.wsj.com/article/SB10001424052748703665904575600730385399558.html?mod=WSJ_auto_IndustryCollection

Patrick Mehlert

Ford See Profits Rise

Recently customers have been buying more Ford cars. Ford has reported that in the month of October their sale have gone up 12% since last year. This is the highest rate for new car sales in over a year for Ford. Buying domestic cars not only helps the company but it also helps all of the american who are working for the company. This is could one of the incentive to buying a Ford, to help your fellow americans. Ford has also offered a multitude of mid-size compact cars that have been selling in large quantities. People are becoming more environmentally aware and are doing what they can to help the planet as well as save money and ford offers multiple cars that fits those qualities.

I think that it is a good thing that Ford sales have gone up because it shows that people are starting to spend money and this will stimulate the economy. It also shows that Americans have confidence in the cars that Ford is offering which will keep the trend going. The more cars sell, then the more people will believe that it is a legitimate car that is worth spending money on. This also helps make other companies produce better products because they are facing tougher competition.

http://online.wsj.com/article/SB10001424052748704462704575590662948503410.html?mod=WSJ_auto_IndustryCollection

"Fuel-Economy Rules Raise Bar for Engine Makers"

Last Monday the Obama administration disclosed the nation's first fuel-economy rules for trucks and buses.  These rules are to be established in 2014 which will require engine manufacturers to start heavy research and development on fuel efficiency and pollution controls.  Starting in 2018 these engines will be required to reduce fuel usage and carbon-dioxide emissions by 20%.

A major player in the auto industry for engines is Cummins Inc. They believe that they will be able to achieve the goal of meeting the rules by budgeting research and development spending at 4% of sales.  In addition to their own budgeting, the US Department of Energy provided Cummins with $54million to help pay for the research and development.  However, Cummins faces the new challenge from car companies building their own engines rather than buying from Cummins. This creates competition within this specific group of the industry.

This article is very important as it covers how the US is now responding to the need of a more fuel-efficient  auto industry. In addition it also includes how companies use certain business tactics to benefit more. This is illustrated in the truck manufacture's, Paccar and Navistar, strategy to build their own fuel-efficient engines rather than buying from Cummins.  To me this is article is very important as it shows the US is now taking important steps to creating a cleaner environment and how the Auto industry responds to it.

http://online.wsj.com/article/SB10001424052702303891804575576570268041664.html

Patrick Mehlert

"GM Pouring Ad Money Into Chevy Brand"

Recently GM has been putting a lot of effort into its marketing campaign for Chevrolet Motors.  In this past GM has had weak marketing strategies when it comes to Chevy, however, now GM is ready to make a change.  The new marketing strategy of Chevy is trying to use the theme of American identity to appeal to the customer.  To illustrate the struggles that the Chevy's marketing has encountered, one can look at the how Chevy has fired and replaced three marketing chiefs in that last two years. In addition Chevy has let go of its ties with Campbell -Ewald, a marketing firm. This was a huge step as the two companies ended their 91 year relationship.  To start, the new marketing chief, Joel Ewanick, has claimed that GM is now spending 70% of its ad budget on Chevy and will increase its total spending by 3% to 5%.

This event has a huge effect on the marketing aspect of the Automotive Industry.  From this, Chevy will be having a huge impact in the near future.  Chevy will hopefully benefit greatly from GM's actions.  This marketing campaign will further enhance the competition among car companies.  More money will be poured into marketing campaigns throughout the Automotive Industry.

As a student I now understand how important and delicate marketing is in the Automotive Industry.  It is what can make or break a company.  The company relies on its marketing to appeal to the consumer, and therefore result in sales.  If GM is willing to spend $2.2 billion on ads, then you know that marketing is a very influential part of its company.

http://online.wsj.com/article/SB10001424052702304173704575578073119960604.html?mod=WSJ_auto_IndustryCollection

Patrick Mehlert

There are many different types of segmentation within the automotive industry. The market is segmented into different groups. Some of these groups include: luxury cars, trucks, environment friendly cars, affordable cars, family cars, and even vintage cars. The different segments represent the different areas that companies think they can have the most sales. Ferrari looks to dominate the luxury vehicles by offering one of the nicest and fastest cars available. They don't advertise to many different groups. While Toyota would go after more people in the "green" segment with their prius. Ford looked to try and dominate the midsize sedan segment with their Ford Focus. They were competing with the Toyota Camry, so far the camry is doing much better in the midsize sedan segment.

The segmentation within the automotive industry helps divide up the market so that different types of cars can be advertised and sold to specific people. This reflects how the industry works because it shows the different aspects of every company. It shows how they create cars for different people. They group people into segments and then create vehicles that they think will be popular.

http://www.msnbc.msn.com/id/19636744/

Retail Segmentation

The retail sector of the automotive industry is divided into 3 general categories:

- Auto dealers

-Service Stations

-Aftermarket

They each account for 48.1%, 27.9%, and 24% of the global retail sector, respectively.

While each segment is separate, they are still interconnected. Autodealers thrive on the large profit margins of service, just as service stations do. Aftermarket product sales thrive when consumers cannot find the options they look for in a vehicle or when base models have very few features. Aftermarket products offer a cheap alternative to buying factory options, or offer discerning car owners the ability to customize.

Competition in the auto industry is always increasing, and added value for any vehicle gives a competitive edge to manufacturers. If auto makers continue to add value, such as reliability, low maintenance, and bonus features, I think there could be a significant decrease in the aftermarket segment as well as the service sector (which includes auto dealerships' service departments). While auto sales may increase or stay the same, the fat profit margins that dealerships experience from service may thin out. Electric vehicles, still in the early stages of development, may present a new opportunity for dealerships and service stations as the need for service will become less, such as charging stations and battery-swaps.

Additionally for the aftermarket sector, there is always something that drivers can't get from an assembly line vehical, but as base models increase in added-value, I think auto dealers may steal a portion of the market away from the aftermarket retail segment.

Sources:

Ibis Auto Industry Report

http://web.ebscohost.com/ehost/detail?vid=14&hid=15&sid=81b64854-fbf7-4aa8-aaba-b265256c2c36%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=49736455

Nissan Getting Smart

Penske Automotive Group Inc., “a large chain of car dealerships”, made a deal with Nissan Motor Co. agreeing “to sell a Nissan-made small car in the U.S. under the Smart brand.” Penske already sells Daimler AG’s two-passenger Smart ForTwo. Hoping to boost Smart sales, Penske is looking forward to adding this Nissan-made car. Smart is distributed only by Penske. This new Smart model is to be sold only in the U.S. and is expected to go on sale in the fourth quarter of 2011.

Nissan’s four-door model will expand Smart’s brand because Daimler’s Smart is a two-door. It will be designed and engineered by Smart and Nissan.

Chairman Roger Penske states "We are proud to be a partner with both Daimler and Nissan, two companies focused on bringing high-quality, fuel efficient products to the U.S. market.”

When gas prices hiked to four dollars a gallon, Smart sales increased. However, since gas prices have fallen, Smart sales did the same. Because of the current lower gas prices, and therefore a changed market, it is a bright idea to grow the Smart brand. Smart will benefit from expanding their vehicle lineup to attract a wider range of people.

Nissan’s new Smart car will be a gasoline-powered hatchback sold by Smart USA and will be larger than the Smart ForTwo. Nissan is a company focused on bringing high-quality, fuel-efficient vehicles to the U.S. market. The U.S. market will react positively to Nissan’s new car’s seating capacity. Its increased seating capacity, compared to the Smart ForTwo, allows Smart to meet the needs of more consumers, especially American customers. Since Smart is suffering now, it is wise for Nissan to build a new four-door version to boost its sales. Penske will benefit from its deal with Nissan. I expect this new vehicle to sell well in the U.S.

Irene Kalis

http://online.wsj.com/article/SB10001424052748703735804575535663717483060.html

What's the word for production in 2010?

Capacity utilization rates for automotive assembly plants are good indicators as to how the industry is performing. Since 2005, the plants' rates have been on a steady decline. From 2003-2005, capacity utilization lingered around 80%. By January of 2009, rates were at 25.6%. Rates fell due in large part to massive inventories after the recession which killed further production.

But now, as consumer demand for new cars beings to slowly come back, production rates are also increasing. By the end of the year, production rates should rise 45%, which should hopefully put capacity utilization rates back at 2007-pre-recession levels of around 70%. In January of this year, the CU rate was 57.5%. While this is a drastic improvement from earlier years, so much wasted capacity means significantly less profits versus running at near-full capacity.

How will automakers make up for a decrease in capacity utilization? There are many answers to this. I think automakers will really start capitalizing on what people want, rather than what they want. U.S. auto companies have been focusing on the production of large gas guzzlers due to the production methods they already have in place, and they need to make a shift to compact, fuel efficient, hybrid, and electric vehicles, which they have begun to do (yet not on a large scale). In the midsts of rising prices of fuel, steel, and everyday living, U.S. automakers meed to make the switch to a new market of small cars to contend with foreign manufacturers. This would mean not only more profits but also maximizing efficiency and squeezing all the profit they can from their existing capital.

Capacity utilization rates for 2010 (which we will know by the end of the year) will hopefully be back to pre-recession levels, due in part to adaptive efforts of US automakers. But if manufacturers employ some innovative and effective strategies to deliver cars people really want, they might be able to maximize their production. Automakers are currently wasting their resources, and until they respond to global demand, it will be hard to operate at capacity.

Source: IBISWORLD Industry Report

"GM's Volt Not Always All-Electric"

General Motors has recently found itself in an unwanted predicament, as it is now being accused of lying about its new automobile.  GM's new automobile, the Chevrolet  Volt, has been advertised as an "all electrically-driven vehicle". However this is not true as the Chevrolet Volt contains a gasoline engine that aids some functions of the car. GM hid the fact that the gasoline engine is connected to the drive train, making it more appealing to the public.

GM's defense in this accusation is that they did not want to share this information about the Volt because they feared that other car manufacturers would steal the idea, so they waited for patent approvals.  This is unfortunate because it an "all-electric car" would have been an amazing innovation to the Automotive Industry. It would have opened many opportunities for the future of the industry.

This is an ethical issue in the Automotive Industry because GM was allowed to falsely advertise.  This created a positive reception from the public, which was looking forward to this product.  Should GM be punished for a inaccurate advertisements and marketing strategies?

Patrick Mehlert

http://online.wsj.com/article/SB10001424052748703440004575548461540233810.html?mod=WSJ_auto_IndustryCollection

Mercedes Provides Different Options

The look on cars has usually been "a car for every purse and purpose" but mercedes is now changing their look to "for different purposes, different cars." They are offering all different types of cars for specific jobs. All of these cars are offered with new bio fuel or some form of fuel efficiency. Mercedes is really looking to "go green" and help the environment but also offer cars to people that are looking to save money on the every rise gas prices. Also in the near future they are going to be releasing 200 hydrogen powered cars to specific buyers. These cars will be very expensive but for the people willing to buy them they will have the top of the line automotive product.

I really like what mercedes is doing. They are creating different types of cars for different jobs. They have bigger cars for towing and longer distance and then they have smaller cars that are better for city dwellers and shorter trips. They are all reasonably expensive but they are very fuel efficient and they have good intentions for the planet.

http://online.wsj.com/article/SB10001424052748703440004575548142995118902.html?mod=WSJ_auto_IndustryCollection

Toyota announced today that they plan on offering more electric cars, hybrids, plug in hybrids, and fuel cell vehicles in order to boost car sales for the US. Toyota also will offer a 25,000-mile, two-year free maintenance deal in the U.S. on all Toyota and Scion-brand models. Toyota had an increase in sales to 1.3 million units (1.1 percent) from January to September of 2010, compared to 20 percent for Hyundai Motor Co. and 21 percent for Ford Motor Co. Toyota also recently invested around $1Billion on a plant in Mississippi to produce Corolla compacts. Toyota said they are using local engineers and designers to make products. Toyota is aiming for 2 million sales by 2013.

I think that it’s a great idea for Toyota to use American engineers and designers. This promotes nationalism and the fact that Toyota is trying to raise the economy in America. Toyota is trying to produce more hybrid cars and plug in hybrids in order to gain back buyers after their huge recall of the number one vehicle, the corolla. I wonder if using American engineers will draw Americans to buy their cars.

DAVID KABAKOW

http://www.businessweek.com/news/2010-10-06/toyota-says-more-hybrids-electric-cars-on-the-way.html

Toyota in America

Toyota announced today that they plan on offering more electric cars, hybrids, plug in hybrids, and fuel cell vehicles in order to boost car sales for the US. Toyota also will offer a 25,000-mile, two-year free maintenance deal in the U.S. on all Toyota and Scion-brand models. Toyota had an increase in sales to 1.3 million units (1.1 percent) from January to September of 2010, compared to 20 percent for Hyundai Motor Co. and 21 percent for Ford Motor Co. Toyota also recently invested around $1Billion on a plant in Mississippi to produce Corolla compacts. Toyota said they are using local engineers and designers to make products. Toyota is aiming for 2 million sales by 2013.

I think that it’s a great idea for Toyota to use American engineers and designers. This promotes nationalism and the fact that Toyota is trying to raise the economy in America. Toyota is trying to produce more hybrid cars and plug in hybrids in order to gain back buyers after their huge recall of the number one vehicle, the corolla. I wonder if using American engineers will draw Americans to buy their cars.

DAVID KABAKOW

http://www.businessweek.com/news/2010-10-06/toyota-says-more-hybrids-electric-cars-on-the-way.html

Increasing Affordability

"In 1973, the average US citizen needed 17.5 weeks of annual family income to buy an average-priced car, a figure that rose to 22.6 weeks by 1995. By 2009, however, the figure had fallen to 19.6 weeks. Standard & Poor’s estimates that this figure will rise in 2010, as the economy improves."

Since the 70's, prices for cars have been increasing, but pay rates have not. Due to a low demand for cars and increased costs of living during the 2008 recession, demand for cars went down, and automakers suffered

Due to increased unemployment and fear of future job loss, consumers are now more frugal than ever. They are also looking for cars that will last. This makes for cutthroat competition between automakers. Also, in times of economic instability, union workers are pushing harder and harder for job security and benefits, which cut into the thin profit margins of auto makers.

I think these factors combined will produce some great cars in the future. In the past we have seen small manufactures emerge with ground-breaking technologies, but I think the ever increasing competition will spur massive development of very high tech vehicles. This is out of necessity, for if automakers do not forge ahead and create innovative products to gain the upper hand, they will lose market share and be sucked up by highly competitive landscape. If automakers cannot offer consumers a cool new product to lure them away from their customers, their competitor's lower selling price will simply be the bottom line when consumers make their choice.

Source: NetAdvantage- Auto Industry

Future of the Automotive Industry

The future of the automotive industry lies within the smaller cars. Most companies are starting to expand their markets into other counties and they are introducing smaller cars. The future lies within the compact cars because the global market calls for more fuel efficient cars so that people can save money on gas. Most people are looking to "go green" and help the planet and their walets at the same time.

I think that the future of the automotive industry is looking very positive. With expansion into new countries and the new hybrid technology there will be tons of revenue pouring into the industry. The demand for new fuel efficient cars is very high and most of the car companies are taking advantage of it. The future will only bring more of that.

Ford Fiesta Represents Future

The new Ford Fiesta is out to impress with its 37 mpg on the highway. This $19,000, small car has style. Ford’s 2011 Fiesta embodies the future of American automobiles. American automakers are pushing to make cars more fuel efficient, especially since the Obama administration is anticipated to implement fuel efficiently rules on automakers for the years 2017 to 2025.

California is aggressively trying to make cars “two to three times more fuel efficient by 2025 than they were in 2009.” This state “wants automakers to boost their fleets’ average fuel economy by 3% to 6% a year from the 35.5 miles per gallon target already set for 2016.” California’s goal would help America prepare for a 50 to 60 mpg average fuel economy objective by 2025. This would strongly encourage all car makers’ car to average a 60 mpg intake.

Technology plays a huge role in meeting this goal. Another factor that would allow this to happen is if more people would chose cars like the new Fiesta. Automakers are bond to create cars similar to the Fiesta in order to compete. The Fiesta already has many competitors in the U.S., such as the Honda Fit, Scion xD and Hyundai Accent.

The U.S. is behind Europe and China “in demanding advanced petroleum-saving technology”.  In order to be tough competitors, U.S. automakers need to let go of their fuel inefficient cars because if they continue, they will be making cars that do not appeal to foreign countries. The U.S. also needs to be on top of new technology in fuel efficiency and advertise their fuel efficient cars affectively. A way America stands a chance is to quickly realize they need to embrace compact and strictly fuel efficient cars.

If the Fiesta is a success, it will encourage and give confidence to U.S. auto manufacturers and the public to give technologically advances, fuel efficient, small cars a chance. 

Irene Kalis

“Why We Could Be Driving Fiestas”

By Joseph B. White

The Wall Street Journal

"New Crash Tests Curb High Scores"

From 1990 to 2010, automobile manufactures have conquered the Government's crash-safety test.  Around 99 car models in the 2010 model year received 5 stars in both side and front crash tests.  The US Transportation Department believes that those results were to easily earned, so the new tests will be more rigorous and difficult.  David Strickland, chief of National Highway Traffic Safety Administration, said "Were just trying to make the manufactures stretch," referring to the safety aspect when producing the cars.  The new test will include crash dummies that will replicate and female body, and look into if the car has accident prevention technology, etc.  As of right now only 33 cars have received a 5 star rating, compared to the 99 cars in 2010.

This is a very informative issue discussed in this article. Not only does it tell of the government's actions and concerns in the Automotive Industry, but it also shows how car companies will not be able to advertise as efficiently. In previous advertisements for some cars, the car company can advertise the 5 star safety rating, however that is now not true for cars such as the Ford Taurus and the Toyota Camry.  This issue show how the government and industry interact and deal with the demands of both groups.

Patrick Mehlert

http://online.wsj.com/article/SB10001424052748703843804575533961959252030.html?mod=WSJ_auto_LeadStoryCollection

Volkswagen Wants to Be Number One

VW wants to dominate the automotive industry with its strong brands by 2018. To demonstrate their confidence in their products, VW AG put on a marvelous exhibit featuring their newest goods from all their brands. Martin Winterkorn, VW's board chairman, announced to the display’s attendees that VW’s brands will help VW meet their goal to become the world's largest automaker in 2018.  With their new strategy, this German company desires to sell ten million vehicles yearly internationally.

Winterkorn believes VW’s strong brands will gain VW a top status. Winterkorn has high hopes for VW as he declared, “Volkswagen has sold 5 million vehicles globally so far this year and plans to introduce 70 new models globally in the upcoming year.”

Their multiple brand approach hopes to gain a sales increase by approximately 60 percent. This auto giant wants to be ahead of Toyota. Toyota's advantage over VW is their powerful position in the U.S. market. VW brands are not as well regarded as Toyota’s. VW’s new strategy will help it be a better competitor against other major automakers. For VW to rise above their underdog position, they need to increase their production in the U.S. I think the auto industry has to keep an eye out for VW. This auto maker has been doing well so far this year and has good management, making them tough competition.

Irene Kalis

http://www.autoobserver.com/2010/09/how-vw-plans-to-rule-the-industry-brands.html#more

Leaders in the Automotive Industry

One of the biggest players in the automotive recently has been president Obama. He has highly invested in the American based car companies, thinking that it will stimulate the economy. One specific action that he took to help the automotive industry was signing the Cash for Clunkers bill. This bill helped the automotive massively. It made thousands of americans drop their old cars and go buy new ones. This all started because Obama signed off on the bill.

I think that Obama has taken huge initiatives to help our economy and especially the automotive industry. He bailed out GMC when they filed for bankruptcy because he knows how many jobs the huge companies create for americans. Jobs range from the actual workers who work at the factories to the corporate managers. The automotive industry is crucial to the american economy and our president realizes that.

Problems for Hyundai?

Hyundai recently recalled 139,500 2011 Sonatas. Hyundai claimed that the steering mechanism may not have been properly tighten, which could cause a loss of control for drivers.

Hyundai cars are a good value for the consumer; they are dependable, efficient, long lasting, and receive high safety and satisfaction ratings. But I think this problem could present a problem for Hyundai considering the recent recall and media scandal with Toyota, and may change the image of the company. When Toyota suffered from reports of defective cars, Hyundai capitalized on it's mistakes and came out ahead as the leading competitor.

Although Hyundai has issued the recall upfront, the Sonata is Hyundai's most highly rated and popular vehicle, and with a recall issued, I think buyers may become hesitant towards Hyundai when car shopping , especially when considering the safety of their families.

The 2011 Hyundai Sonata is a new design, and a new direction for Hyundai, away from their more modest looking body designs. I think this recall puts them on a bad first step into the future. Hopefully they will not be remembered for this mishap, seeing that they did take all measures to prevent potential problems by issuing an immediate recall, yet it is still a setback, especially in a time when consumers may still be hesitant.

Article:

http://blogs.wsj.com/drivers-seat/2010/09/27/hyundai-recalls-as-many-as-139500-new-sonata-sedans/?KEYWORDS=hyundai+recall

"Influence in the Auto Industry"

In different regions around the world there are different preferences for automobiles.  In general, the top automobile companies in the Global Automotive Industry  are Toyota Motor Corporation, General Motors Company, Volkswagen Group, Ford Motor Company, and Hyundai Kia Automotive Group.  These auto makers have a global reputation and the top motor vehicle manufacturing companies.

Among these companies there is great competition, especially because in regards to these companies there is little variation in product.  The automobiles produced by these companies are generally affordable and efficient.  They usually try to appeal to the same customer and manufacture in a specific manner is influenced by today's latest trends.


Patrick Mehlert

Aptera Motors Offers "Wingless Flight" to Drivers

Since the company's founding in 2005, Aptera Motors has been developing high-efficiency road vehicles. The name Aptera means "wingless flight" in Greek, and the company truly lives up to its name with their development of vehicles such as the "2 Series", whose advanced aerodynamics and carbon-construction allow it to get over an estimated 300 miles per gallon. The California based company has been developing various high-efficiency vehicles since 2005 and has already begun accepting pre-orders from in-state residents. The Aptera 2 Series will be a two-seat, three-wheeled passenger vehicle. It is planned to be available in both all-electric and hybrid configurations, at prices ranging from mid-twenty to mid-forty thousand dollars. It features optional roof-mounted solar panels, always-on climate control, and keyless ignition and entry. An in-car touch screen computer serves as entertainment, navigation, and communication system as well, making it just as accommodating as any conventional vehicle. Early crash and crush tests that have been performed on the vehicle also indicate that it is just as safe as conventional vehicles, however this has yet to be confirmed in government safety tests.

With the introduction of the "2 Series" and the announcement of its estimated fuel economy, Aptera now has the most fuel-efficient vehicle currently being developed. It will be available for purchase within a matter of years, and could quite possibly change the face of the automotive industry. More and more automakers are jumping aboard the alternative-vehicle bandwagon and are developing more fuel-efficient and environmentally friendly vehicles. They certainly have some catching up to do, as Aptera's 300 mile per gallon vehicle is one that an ever more scrutinizing market will welcome happily.

Morgan Duff
http://www.aptera.com/

Miles Ahead of Gas

Electric vehicles are becoming more prominent in both the consumer and commercial markets. Consumers want "greener" cars and low gas prices, while commercial fleets look to minimize maintenance costs and fuel costs, as well.

MILES, a smaller manufacturer of electric vehicles, is an emerging company of the electric market. It currently produces two low-speed models, targeted towards different institutions as well as well as the the city-dwelling consumer. A company such as MILES is important for promoting change as companies look to make their fleets more efficient. Since the practical electric car is still out of the hands of the everyday consumer due to low competition and brand new technologies, an expansion of the commercial market allows for R&D to take place at the expense of larger companies who are willing to indirectly fund these startup electric automobile companies.

As MILES continues to expand, their features will only become better, and their pricing more and more affordable (their price is already around $20,000 for a base vehicle). A company like MILES holds a pretty promising future for itself, especially as the demand for these efficient cars continues to rise

Source:

www.milesev.com

Tesla offers cool and environment friendly car

In the past 5 years Telsa has started to put cars on the streets. The Telsa is a high powered fully electric car that is very cool. It is quite expensive though. That is about the only thing that is negative about the car. It is a very attractive looking car that requires absolutely no gas.

This car is more of a luxury car so it has been affecting the luxury car industry. The appeal is that it is a faster sports car and requires no gas. It takes away from the companies like Porche and BMW. This player has offered a new perspective on sports cars. It allows people to have a cool car yet be environmentally friendly. So they can retain two different images at once.

The Tesla as been fairly popular for only being out for 4 years. It is still on the rise, with the rising gas prices I think that it is safe to say that we will be seeing a lot more teslas on the road in the upcoming years.

How Popular is Zipcar?

For the past few years ZipCar has created a name for itself.  Although it has been around since 2000, just recently in the ZipCar has increased its popularity.  ZipCar allows its members to rent from a wide variety of automobiles and pay for their service by the hour or day.  

ZipCar is gaining popularity from the numerous benefits it provides its customers.  Members can choose between any car in the ZipCar fleet.   This allows the members to choose a specific car for a specific reason, for example a large pick-up truck for an individual needs a car for moving.  In addition, ZipCar has been proven to be environmentally friendly, by taking around 15-20 cars off the road and less driving by the its members.

In 2007, ZipCar merged with its competitor Flexcar, to become the world's largest car sharing service.  It has spread across Europe, buying out European car-sharing companies, and has put its name on the global spectrum. As of right now various car-sharing companies are losing out to ZipCar, as ZipCar is either buying out the competition or just acquiring more customers. 

ZipCar is an example of how a company can rise through the ranks of its market in a short period of time.  In ten years ZipCar became the largest car-sharing company in the world.  I think that by the right advertising and options it provides to its members, ZipCar blew away the competition.  Now Automobile Companies are trying to be part of ZipCar's fleet of cars because they know that its a profitable investment.

Patrick Mehlert

http://www.zipcar.com/

http://www.commuterpage.com/carshare.htm

Karma... It Can Be a Good Thing!

Fisker Automotive was founded in the summer of 2007 by Henrik Fisker. Fisker, the chief executive of Fisker, is a well-known designer in the automotive industry. He designed the luxurious Aston Martin DB9, V8 Vantage and the BMW Z8 roadster. He is an eco-friendly minded automaker. 

On April 23, Fisker Automotive received $528.7 million from an Energy Department loan. Now that Fisker has essential capital from the government, they want to produce its Karma by the end of this year. Fisker Automotive challenges other car companies with its new high-performance hybrid, the Karma. Its dazzling Karma is an $87,900 plug-in hybrid car. In the field of electric cars, the Karma appears to be a threat to Tesla, Nissan, and GM. Fisker’s Karma is promising because it’s a slick-looking car and consumers are willing to change their style of vehicle in order to be environmentally sensitive. 

Appealing to people wanting a high-performance car, “Fisker Automotive promises its big sedan, the Karma, will rip from 0 to 60 in under 6 seconds and have a top speed over 125 mph thanks to a plug-in hybrid technology it calls Q Drive.” At “about the size of a Mercedes S-Class”, the Karma will impress those who want an environmentally friendly or/and high performance vehicle. 

Consumers will have to keep an eye out for this car because “Fisker Automotive says its super-luxe Karma plug-in hybrid gets better fuel economy than the Toyota Prius, the reigning EPA MPG champ, and emits less carbon dioxide to boot.” 

This innovative car projects a positive image because it will help bring more jobs to American workers while having a more positive impact on the environment.

Irene Kalis

http://www.popularmechanics.com/cars/news/4291426

http://wheels.blogs.nytimes.com/2010/05/04/fisker-karma-ready-to-roll/

http://www.wired.com/autopia/tag/fisker-karma/#ixzz10J1ThebZ

Cutting Corners on 2011 VW Jetta SEL

Volkswagen restyled Jetta to obey new safety standards and to triple U.S. sales by 2018.  Volkswagen's redesigned Jetta is going to be on sale next month.

The VW of America biggest obstacle to increasing U.S. sales was the cost. The existing Jetta costs a $17,735. The 2011 VW Jetta SEL costs just $15,995. This new model is $1,740 less than the retiring model. This cost cutting is affects the engine of the new model. The new model is going to have an “antique” as an engine. VW was trying to sell more of a car for less money but really it’s selling less of a car for less money.

The styling of the car has also suffered as a result of VW’s cutting corners moneywise. Their car is now criticized for its odd appearance.

There is little improvement to the car in the new version. The new model is 2.9 inches longer and has more legroom than the outgoing model.

As a result of the VW of America wanting to significantly increase its sales by 2018 by saving money on the Jetta, it is hurting themselves in the end. With a less slick exterior and interior, VW will not appeal to consumers even for the cheaper price. I do not see VW meeting their goal in tripling their sales by 2018. In their process of cutting corners, they will not be a good competitor against the Honda Civic and Toyota Corolla. VW displays unethical behavior by cutting corners on such essential equipment in their vehicle. VW is just more concerned about earning money than the actual performance of their car.
Will their cutting corners cost a life?

Irene Kalis

http://online.wsj.com/article/SB10001424052748704644404575481663295463730.html

US Government Wary of Foreign Investors in GM

The US Treasury is concerned with the amount of overseas investors it should allow to buy large stakes in GM through its initial public offering this fall. Currently the Treasury owns a 61% share in the company, and although GM would like to eliminate it's US stake to stop dissuading potential customers, the issue is very complicated as US taxpayers contributed nearly $50 billion to fund GM's bankruptcy reorganization last year. The Treasury would like to hold off on selling its share so the government might break even or possibly make a profit on its investment, but that would probably involve selling smaller stakes of the company over a long period of time. Political fallout could result from a massive sale of one of the country's most prominent companies, but most would agree that it would be best to sell GM off to foreign investors including the company itself. The sale of our governments stake will most likely happen gradually although it might be in our best monetary interest to sell it off completely this upcoming november.


It is important to understand why the government would act against a potentially profitable deal. This act of holding out on selling its share would show that the government wants to support for GM and appear as if they still believe in the possibility of future success for the struggling company. GM's success is as important to many American citizens faith as it is to the nation's economy, and the idea of foreign investors owning a major share of the company is a frightening one. Many citizens believe that selling GM is like selling a part of our nation's culture, while at the same time many others believe that it is within our best interest to unload the company while others are still interested in taking it on. Either way, it would certainly have a big impact on the US car market as it would leave Ford as the only prominent US owned and manufactured automaker left. It will certainly be interesting to see how Ford's sales will be affected by this event and what direction they will take in the future.

Morgan Duff
http://online.wsj.com/article/SB10001424052748704206804575467992376504722.html?mod=WSJ_auto_MiddleSecondHighlights

"Ferrari Recalls New 458 Italia After Some Catch Fire"

Ferrari has recently recalled its new 2010 458 Italia after there have been incidents involving the automobile catching fire.  Ferrari is taking care of this issue with full consideration as it has recalled the vehicle.  This is a another example in the automotive industry of business ethics, in which automobile companies have dealt with their vehicle problems by recalling automobiles.

In Ferrari's case, they had to recall their 458 Italia model due to problems with the engine heat shields.  In addition to the recall the manufacturers have replaced the current engine shields with a more efficient engine shield that uses rivets instead of glue. Ferrari will most certainly take this issue very seriously as the automobile costs around $230,000.

Ferrari is known for providing their customers with the best sports car in the industry.  As a major sports car company and a key player in the automotive industry Ferrari will do anything to keep its reputation at a high. 

http://blogs.wsj.com/drivers-seat/2010/09/06/ferrari-recalls-new-458-italia-after-some-catch-fire/?KEYWORDS=recalls

Patrick Mehlert

Toyota, cares more about morals than money

In July Toyota faced some major problems with their most valuable production, the prius. There had been many cases of unintended acceleration and in some cases some serious injuries. They faced a moral decision. Do they not say anything and keep selling the earth friendly vehicle and keep all the profits or do they do the right thing and recall the car and suffer major damage to their profits, and their future?

Toyota made the right decision and decided to recall the car. This did not come easily though. The cars sales dropped 26% over the past year. This could also be because of the cash for clunkers program that the government installed last year, but they still suffered heavily either way. They had to make a decision that would cost them a lot of money but it was morally the right one to make. Toyota does value doing the right thing and helping people. That is why they have such a big push to help the environment.

The repercussions were dramatic but in the end it was the right thing to do. We do look at toyota in a different way because of the quality of their product. But we do know that Toyota cares about us because they stick to their morals even when the consequences are extreme.

Goals for Tesla

For this week I looked up some of the company values and goals for Tesla, a Silicon Valley based manufacturer of electric cars.

Their mission is the increase the quantity and variety of electric vehicles available to the public. They do not produce or intend to produce hybrids or hydrogen powered vehicles; They are committed solely to electric power.


They employ very innovative technologies, and have designed the most dense battery pack of it's kind available on the market. They pride themselves in being innovative, and adapting to customer demands, as they are a small company and are able to do this. 


While the prices for their vehicles are currently high,(base price is $108,000 for the roadster) Tesla hopes in increase the amount of vehicles in the market, which should eventually come through competitors, in turn lowering the price of production. They are still a small company, so Tesla's prices will remain high for some time.


To account for much of the high price is also the luxury factor. Tesla prides themselves on not only producing an efficient vehicle (88 percent compared to around 20 percent for internal combustion), but also a comfortable one, centered around the demands of the driver. This includes a comfortable ride many of the driver comforts found in any vehicle in the same price range


Tesla is a small and innovative company that has the ability to adapt. They are challenging the status quo and doing what no other company has done before, which is produce a financially successful, all electric vehicle. They started up in 2003, and went public in June of 2010. They've shown that "electric can be awesome"and still sensible, and hopefully their goals and future success will encourage other companies to introduce more models and expand the market.

New Bentley, New Technology

Released yesterday, is the new, lighter 2011 Bentley Continental GT. This 143lb lighter, brand new car is equipped with 6.0-liter twin-turbo W12 engine, hitting 567 hp. The new, thinner yet more comfortable cabin seats have a near heating and cooling technology as well as new, leather lined cup holders. But, what is the best upgrade of all? The interior technology. The new GT boasts an eight-inch touch screen interface with 30GB of memory, and an incredible navigation system with Google Maps. How fast does it go? The newly turbo charged GT goes from 0-60mph in 4.4 seconds and 0-100 in 10.2. It’s max speed is 198mph which is 4 mph less then the 2010. The price hasn't been publicized but is expected to be higher than the previous model.

I wonder whether consumers are going to buy this car without thought, or are they going to take a step back, because of the economic market, and question if the car is really worth it. Are they going to wait until Mercedes Benz, BMW and Lexus come out with their new car for the season?

David Kabakow

http://blogs.forbes.com/hannahelliott/2010/09/07/bentley-unveils-new-continental-gt-coupe/ 

GM's OnStar verses Ford’s Sync

The battle is on between General Motors Co.’s (GM) OnStar and Ford Motor Co.’s Sync. The following year, GM's OnStar will pose tough competition against Ford’s Sync because OnStar may provide free services. OnStar will rival Ford's Sync, which is a “music and information system.”

 GM’s in-car system is “a subscription service that provides accident alerts, directions and vehicle diagnostics.” The improved, upgraded OnStar system will threaten Sync livelihood because it will connect cars to online social networking websites like Facebook and will have a voice-to-text system. OnStar may also link a consumer’s Smartphone to “entertainment and information services” for free. With the significant rise of the use of Smartphones, the auto industry needs to cater to those that have them. OnStar’s new system will attract the tech-savvy, young generation and people in the professional world.

The computer-generation will be keen on the ability to access social networks sites and music on OnStar. This competition between GM and Ford will encourage all manufactures to provide technology to please customers by providing the ability to access music, GPS and internet social networks. The availability of these technologies will play a key role in determining which device a consumer will purchase. Will systems, like OnStar’s updated version, be a must-have in new cars for future generations? Will having social networking sites available to access be too much of a distraction?

Article: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100908/OEM06/100909917/1182#comments

Irene Kalis

A recent study at the University of Michigan projects that in the next 25 years the average US gas car will 74 miles per gallon. This will not only have major impacts on the environment but the automotive industry in general. It is estimated that that the average car would emit 47 tons less carbon dioxide than the average car in 2005. This is not only a great way to help the environment but it will stimulate the car industry also. It will cause masses of people to purchase a new environmentally friendly car. This will not only help the US economy by creating more jobs for the US car companies but it will help the environment.

This is important to the industry because its going to cause serious shifts, people are going to have to sell their old cars and purchase new ones. Once they create these cars then people are going to have to sell or get rid of their old ones and buy the new and improved models. This will help the industry because everyone will want a new car that will save them money on gas. I wonder if it is a good time to invest in these companies now so we can make as much profit as possible over the next 25 years. 

http://wheels.blogs.nytimes.com/2010/09/03/gas-cars-could-get-74-m-p-g-by-2035-a-researcher-says/?scp=1&sq=us%20cars&st=cse

Billy Knutsen

"Ford Is Driven to Cut Debt"

Since 2005, Ford Motor Company has been trying to pull its way out of debt.  Currently, Ford has $27.3 billion in automotive debt, however Ford's Chairman William C. Ford Jr. has promised to get rid of the debt completely and quickly.  After making around 40,000 firings and shutting down around twelve plants to deal with the low demand for automobiles, the company is beginning to hire again to try to rebuild.  In addition to shutting down facilities and the firings, Ford has sold off  numerous of its following brands, such as Land Rover, Jaguar, and Volvo.  Now Ford is focusing on a single the Lincoln brand to try to build off its success and its own.
Ford's actions are important to the automotive industry as it is now relying on the success of only two automotive companies, itself and Ford.  By letting go of its other company's, this business move allows Ford to get out of debt.  As a business student this interests me because it illustrates how a company gets out of debt and why they choose specific actions.

Proposed Regulation in the Auto Industry

A new proposal by the Obama administration call for attaching a letter grade to each new car for sale, based on annual fuel costs and emissions. The intention is relatively clear; provide an incentive for consumers to buy a fuel efficient car and hopefully move from gas to electric. But the idea of assigning letter grades to cars seems a bit ridiculous, considering that fuel economy and vehicle price are already the most important figures to a consumer when purchasing a vehicle. Still, no one can feel very good driving home from the dealership with a big "D-" attached to their car.

If a consumer needs an F-250 diesel pickup truck, they won't expect to see a rating of B+, and thus will not be affected by the rating system. The same idea goes for the purchaser of a new Toyota Corolla, for example, which gets excellent gas mileage at a low vehicle cost (they will expect to see a high grade)  . For these reasons, I feel that it is unnecessary to bring in another government rating system such as the one being proposed (with the intention of dissuading consumers from buying heavy-pollutiong vehicles). Virtually all auto makers have greatly increased fuel efficiency, introduced hybrids, or have made plans to do so. People already demand cleaner vehicles. While I don't think the proposal can do significant harm, I think it's still unnecessary given current demand; competition in the industry alone will make the switch from gas to electric over time. I think the government needs to step back on this one.

Jack Lambrecht

http://online.wsj.com/article/SB10001424052748703369704575461602043868916.html

Vehicle Market in China Growing

Although not quite at the pace of last years sales, major global automakers such as GM, Toyota, and Ford have reported moderate sales increases for the month of August. GM reported that their sales were up 19% from August of 2009, while Toyota reported a 16% increase and Ford 24%. In a month notorious for slow sales in the automotive market around the world, these moderate increases can be viewed as a success for each company. These sales may be due to government offered discounts and incentives, but the important trend to notice is the newly expanding automotive markets countries such as China.

 A senior Ford executive told the Wall Street Journal that he expects 70% of the companies global growth this decade to come from the Asian-Pacific region including markets such as China and India. Newly emerging markets such as China and India are arriving at an opportune time as the critical markets of the US and UK are struggling. Globalization is having a major effect on the auto industry because these new foreign markets help major US based makers to survive in a tough economy. The industry will continue to grow as long as new markets begin to develop and a demand for automobiles exists.

Morgan Duff


http://online.wsj.com/article/SB10001424052748703431604575467272785951934.html?mod=WSJ_auto_IndustryCollection

“Ford Uses Wi-Fi to Customize Cars”

Ford Motor Co. is installing software via Wi-Fi in cars on their assembly line. This software is sent wirelessly into the Edge and Lincoln MKX. This software will provide drivers plentiful customization options. Drivers can tailor their cars to their liking wirelessly without costing the automotive manufacturers money on different parts for the car. This technology enables automakers to provide customization for their buyers without having to pay or having to put together uniquely designed vehicles.

This innovation will attract busy, working people because it offers “Wi-Fi “hotspots” in the cars so passengers using laptops or other devices can tap into the Internet while on the road.” Because their installation procedure is wireless, it reduces labor expenses and does not slow the assembly-line rate. Ford’s new technology will revolutionize the auto industry. Ford is the leading carmaker to offer Wi-Fi hotspots in their vehicles. General Motors Co., Chrysler Group LLC and  Volkswagen AG are planning on following Ford’s lead. The auto industry is moving forward to update their vehicles with more technology-friendly systems. Ford’s technology will spark competition between the leading carmakers. These carmakers will compete to create the most convenient and technology-advanced vehicle.

Options of customization range from “power-seat preferences to how quickly the transmission shifts gears”. This advance feature benefits both consumers and automakers. Just like how Smartphones have weaved themselves into the daily lives of many Americans and have become an important business tool, Ford’s invention may become the new Smartphone. Though this new technology presents itself to be a positive enhancement, will it prove to cause more problems? Will this high-tech new device cause a spike in the amount of car thefts and distract drivers?

Article: http://online.wsj.com/article/SB10001424052748704504204575445642013867472.html

Irene Kalis