The imports will be less... the imports will be less.. Your import trade will have less value in 3 to 5 years.

It always amazes me when I hear consumers discussing vehicle values and they impress upon everyone that they know what they are talking about, as if in depth research and studying took place.

I recently took in a conversation about the same 'ol story that import values are better than domestic vehicles and that there friend is better off purchasing an import. Maybe now!, on some models, but what about when they want to trade there vehicle in 3 to 5 years. You see, blanket statements and comments without knowledge and understanding benefit no one, particularly when the person giving the advice has no idea or insight into what they are talking about, yet want to provide everyone around them with there advice and opinions.

This discussion led me to the understanding that in three to five years the trade in values for hundreds of thousands of vehicles will not be what they are now. GM, Ford and Chrysler have cut back production, Toyota, Honda, Nissan and other imports have increased production, in addition Toyota, Nissan, Hyundai, Kia and others have been selling vehicles to the rental car industry at record paces, while the domestics have cut back. Ah Ha, do you see where this is going, it doesn't take a rocket science degree to understand that there will be a supply and demand issue (economics 101) in the next few years and the domestics will rise again, almost like an NBA team (can you say Celtics) going into the tank, trim the roster add a couple of key players (vehicles) and win a championship.

Most people in the auto industry know that domestic quality is on par with the imports and in some cases far exceed there import competitors, yet the domestic manufacturers still do a poor job of communicating that fact. This perceived gap will decrease as more people have defected to the import players and they discover what is widely known throughout the industry, that the import you just purchased, has just as many or more recalls, quality issues, technical service bulletins issued because of minor problems and so on than the domestic competition.

Its coming, it will take a couple of years, but numbers don't lie, as a friend of mine always says, you do the math, the used vehicle value of imports in the coming years will plummet like a falling star. The domestic used vehicle values will once again rise up like a phoenix and shock everyone, except me, because I did the math, right here right now June 20, 2008.

Now I don't think for a second that someone at Toyota, Honda or Nissan has not at least considered what is taking place in the U.S. retail auto industry, yet sometimes everyone gets so focused on winning or being number one that they lose sight that sometimes your gains are temporary. The manufacturer in the best position in my opinion remains Honda, they don't get too caught up in being number one (in terms of numbers, quality yes) and there business model has been designed to have measured increases in market share. If they (import manufacturer) don't understand what is taking place here in the good 'ol USA, the import trade ins will be less... the import trade ins will be less! So the next thing that happens is deep, deep, deep discounting to move product off of dealer showrooms, value perception's start to change and buyers shift back to what is hot again. I think I see a Ford or Chevy in your future...

Some advice, take advantage of some of the crazy offers that the domestics have in play, 0% APR, the huge rebates etc... provided of course it makes since for you and your pocket book, you don't have to be afraid, you will be glad that you did, especially when you still have to pay full price or more for a import, you do the math.

Enjoy Today!
Kevin Kimbrough
That Car Guy

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The Hybrids are coming... The Hybrids are coming...

Future hybrids could be worth waiting for
Chevy Volt highlights road map as automakers plan more fuel-efficient cars
The next major development in the hybrid space is expected in 2010, when GM’s Chevy Volt, a plug-in hybrid electric vehicle, is expected to go into production. The vehicle can charge off a common household outlet.

Time was when hybrid gas-electric vehicles appealed only to the greenest car consumers more concerned about saving the environment than saving on gasoline bills. Gas prices hitting $4 a gallon have changed all that.

Now there’s an out-and-out stampede to buy hybrid vehicles, as drivers downscale from large SUVs to smaller, more fuel-efficient cars. Popular models like the Honda Civic Hybrid are in short supply, and dealers are reporting waiting lists.

Toyota, maker of the popular Prius, is struggling to keep up with booming demand. The Japanese automaker said this week it’s unable to make enough batteries to supply demand for the hybrids, and the crunch on battery production is likely to remain a problem for the rest of the year.

It’s clear that for many consumers hybrids have gone from an eco-friendly fad to a virtual necessity. Now the issue for many drivers is whether they should jump on the hybrid bandwagon now or wait for some of the new hybrid models expected to arrive in showrooms over the next few years.

One issue is that, even though gas prices are at record levels, hybrids are priced at a significant premium over similar, conventional models. Depending on how much you drive, it could take years to make up the extra cost with savings at the pump. (See our “Hybrid payback” interactive above for information on the payback of some of the most popular hybrids currently available.)

“A lot people are freaked out by high gas prices right now, and they’re making panicked decisions that impact their finances, so it’s probably not the best time to get into a hybrid car,” said Phil Reed, consumer advice editor at automobile information Web site Edmunds.com.

“We are still in a plateau in terms of hybrid development and there’s nothing very new out there, and what’s available right now is high-priced,” Reed said. “The entire automotive industry is reshaping itself, so if you have a car that you can keep for a few more years it might be a good time to relax and wait for some of the good things that are about to come out."

The next major development in the hybrid space is expected in 2010, when GM’s Chevy Volt, a plug-in hybrid electric vehicle, is expected to go into production, says Aaron Bragman, an automotive analyst at consultancy Global Insight.

The Volt, which can be recharged from a home electrical outlet, is expected to go on sale in early 2011 and may be worth waiting for, said Bragman.

“It represents a big change in what vehicles are,” he said.

The Volt, he noted, is designed to remain primarily in electric mode in first 40 miles of driving.

“Considering that most Americans have a 20 mile commute it’s feasible that you’d never use your gas engine,” Bragman said.

Toyota plans to introduce a plug-in hybrid in Japan, the United States and Europe by 2010, although it will target leasing customers first. The new vehicle will use next-generation lithium-ion batteries that are seen as key to jump-starting the hybrid market. They are currently used in laptops and produce more power than the nickel-metal hydride batteries used in existing hybrids.
Future hybrids could be worth waiting for

Toyota is expected to upgrade the Prius sedan for 2009, and Japanese rivals Honda and Nissan also are stepping up their hybrid programs. Nissan is expected to launch a new hybrid by 2010, while Honda plans a lineup of new hybrids by 2015, including a redesigned Civic hybrid, a hybrid version of the Fit subcompact and a hybrid based on the sporty CR-Z. Honda also plans to challenge the dominance of the Toyota Prius with a dedicated hybrid model due for release next year.

The slate of hybrid offerings from U.S. automakers looks less full. Updated versions of existing hybrids are expected, and Ford is due to offer hybrid versions of the 2009 Fusion and Mercury Milan sedans, Bragman said.

“There’s not a whole lot coming for Ford and Chrysler on the hybrid front, but Ford does have some small, fuel-efficient European cars that could sell well over here,” said Edmunds.com’s Reed. “Chrysler really hasn’t charted a new course in this area, and in terms of fuel efficiency seems to not have a clue about what to do other than offer gas cards.”

GM’s hybrid plans are more extensive. The Chevy Malibu, the Saturn Aura and Vue Green Line use the automaker’s “mild” hybrid technology, the BAS, or belt alternator starter system, which is less complex than most other hybrids on the market. Unlike more intricate hybrids like the Toyota Prius these cars’ electric motors cannot drive the wheels on their own, but they but still save significantly on gas.

“These systems are considerably less expensive than the Japanese hybrid systems,” Bragman said. “GM is thinking of adding the system to just about any car globally.”

If you’re dead set on buying a hybrid right now there’s a deal to be had on GM’s Chevy Tahoe Hybrid and the hybrid GMC Yukon hybrid — the industry’s first big hybrid sport utility vehicles, noted Bragman.

With sales of SUVs tumbling, GM is offering cash incentives of as much as $4,000 on the hybrid Tahoes and Yukons, which before the incentives were offered sold for about $50,000, about $20,000 more than the conventional versions — a premium that put off many customers.

“These vehicles are remarkable, but the problem is the stigma” associated with large SUVs, Bragman said. “People don’t want to be viewed so conspicuously in a big SUV.”

*Reprint courtesy Roland Jones, MSNBC

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2009 Ford Flex Debut at The New York Auto Show...

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Ford Flex Press Release...

FORD FLEX’S DESIGN HELPS CUT DRY CLEANING BILLS


The world's first trouser and dress-friendly vehicle.

DEARBORN, Mich., May 28, 2008 – The 2009 Ford Flex adds another industry-first claim to growing list of why buys: It’s the world’s first trouser- and dress-friendly vehicle.
Good news for everyone but dry cleaners, the Flex team engineered into Ford’s newest crossover a concealed rocker panel, the structural component at the bottom of the door aperture.
“The Flex design is so clean and efficient that we’ve been able to reduce the step-in area,” said Rich Gresens, Flex chief designer. “The clever design minimizes your clothes’ exposure to the elements. There’s no sill area where dirt usually collects.”
Ford designers stretched the width of the Flex to wrap around the sill, bringing the step-in area inboard for much easier access for passengers. In combination with the hidden rocker, the Flex door was designed to wrap under the sill, effectively sealing out the elements.
“Utilizing the hidden rocker to create a customer benefit is a great example of what Flex is all about,” said Gresens. “We approached the Flex design with one idea in mind: create a vehicle that appeals to customers wanting an exciting alternative people mover. Hidden rockers, refrigerators and tailored leather interiors are just a few examples of how we deliver.”
With some dry cleaners charging as much as $10 to launder a pair of slacks, the practical Flex design has an immediate and tangible benefit.Flex, which combines a unique “box-on-box” design with class-leading package, offers other “firsts” as well, including:
The latest generation of Ford's hugely successful SYNC system, which allows for voice activation of in-car technology as well as allowing for hand-free operation of mobile phones and MP3 players.
SIRIUS Travel Link™, which gives customers the opportunity to download real time information on items like fuel prices, theater listings, weather reports and even sports scores.
A compressor-driven refrigerator/freezer, which works some 30 percent faster than home fridge/freezers.
Multi-panel Vista Roof, which gives each individual in the vehicle their own panel of light.
A reverse camera system that comes up with a rear-view image on the 8-inch screen when reverse gear is selected.
Ford’s new Easy Fuel™ capless refueling system, which allows for clean and simple refueling with no fuel cap.
Flex arrives in dealer showrooms this summer with a base MSRP of $28,995, including destination and delivery.
About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 244,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo, Mazda, and until completion of their sale, Jaguar and Land Rover. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.

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I knew it would happen... 516 miles in a Fuel Cell... Oh What A Feeling! Toyota does it again...

Toyota just announced that they have just developed a new fuel cell hybrid [a car powered by hydrogen and electricity] that will have a maximum cruising range of 830 kilometers or 516 miles. That is a major leap from the manufacturers previous fuel cell model which had a range of 205 miles [330 kilometers] a leap that will surely get attention from skeptics and of course other manufacturers who are eagerly trying to play ball in this area

At this distance, this kind of advancement in technology makes sense for the masses. I am sure that other automobile manufacturers are keeping a close eye on this major development. It far outpaces any advancement that I have seen from any auto manufacturer.

The technology has received the approval of the Japanese government last Tuesday (6/3/08) should be available for leasing according to Toyota Motor Corporation spokesperson Kayo Doi. The FCHV-adv model as it has been tagged should be the front runner in the current fuel cell hybrid race. Quite a few details are still forthcoming, including pricing and other details including overseas exports

Besides a tremendous advantage over gasoline engines and less reliance on crude oil, fuel cell vehicles do not produce any pollution. Fuel cells run on a chemical process when hydrogen stored in a tank and oxygen combine to create water. Water is the emission, WATER, the technology is about as good as it gets in the effort to gain better fuel economy for motor vehicles.

The FCHV-adv is produced with an electric motor and will work as a hybrid by switching between the electric motor and the hydrogen powered fuel cell. In comparison the Toyota Prius switches between an electric motor and a standard gasoline engine.

The fuel economy of the Toyota FCHV-adv was greatly improved with advances in braking technology and some other changes, however some of the most dramatic advances came with major improvement in cold weather starts, the new technology allows the engine to run and start in temperatures as low as 22 degrees Fahrenheit [minus -30 Celsius].

As gasoline prices are rising around the world because of crude oil demand the Major Automobile Manufacturers are seeing consumers interest in alternative fuels increasing. Other Major Automobile Manufacturers are pushing to get there new hybrid and fuel cell technologies into consumers hands. Later this month Honda Motor Company is launching it's new and improved fuel cell vehicle for lease in California. The new Honda will be available in California as it comes off the Honda Motor Co. assembly line later this month and arrives later this year.

Enjoy Today!

Kevin Kimbrough

That Car Guy

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