Auto Knight

GM And UAW Reach Agreement

The UAW has agreed to concessions demanded by General Motors. The deal was similar in some ways to a recent agreement with Ford Motor Company.

Terms of GM’s $13.4-billion federal loan require the automaker to push the union to accept half the money owed to the fund in company stock instead of cash. The automaker must also restructure its debt with bondholders.

The labor concessions were needed by GM in order to keep US Treasury Loans.

GM has been to the public trough multiple times recently, and expects to go back again soon. They say they need an additional $2 billion by month’s end to avoid bankruptcy.

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Honda Insight Base Price To Be $19,800

The base price of the new Honda Insight will come in just under $20,000 at $19,800.

The model is aimed directly at the popular Toyota Prius. With a competitive price and advanced fuel efficiency, Honda Motor Co. thinks they may have created a “Prius killer.”

The Prius carries a base sticker price of $22,000. It looks as if Honda has decided to look for the value-oriented shoppers who are obviously concerned with both gas prices and total cost of ownership.

The Honda Insight is also $4,000 less than the popular Honda Civic. Honda plans on making hybrids an attractive alternative to even its own popular car lines. With several new lines coming in the hybrid lineups, this could be the year the hybrid vehicle comes of age.

The 2010 Toyota Prius will offer 50mpg combined gas mileage and will be available on US car lots in June.

The war of hybrids is on in earnest.

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Toyota Prius Mileage Revised

Toyota Motor Corp has revised mileage claims for the 2010 Toyota Prius. The company now says that the 2010 Toyota Prius is capable of 50mpg highway driving and 49mpg in the city. This was an upwards revision of 1mpg.

The company has not yet announced pricing for the car. These mileage figures are also preliminary. But this does make the Prius the number one most fuel efficient car on the market.

This year, the Prius, which is the best selling hybrid electric vehicle on earth is going to experience competition from the Honda Insight and the Ford Fusion hybrid, which boast similar fuel efficiency and features.

In the midst of a global recession, fuel efficiency has become a major demand of savvy auto consumers worldwide.

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GM And Canadian Auto Workers Avert Strike

General Motors (NYSE:GM) and The Canadian Auto Workers have reached a tentative settlement.

The labor union said they’ll announce details of the new accord at a press conference scheduled for Noon Eastern Standard Time in Toronto.

The CAW represents approximately 10,000 workers who will vote on the agreement Tuesday and Wednesday of this week.

As part of the new deal, the CAW vowed to help GM cut costs that it needs to as part of an arrangement with the government.

GM stock is currently selling for $1.45 a share on concerns that the company won’t be able to continue as a “going concern.” The company has already received billions of dollars in government funds and is currently seeking more.

GM has announced a decline in sales, cuts to production, and massive layoffs as part of a restructuring they’re attempting to “stay alive.”

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Toyota Venza AWD Reviewed

A new review takes a look at the Toyota Venza AWD. The 2009 Toyota Venza AWD V-6 is a cross between a full-sized sedan and an SUV.

2009 Toyota Venza AWD V6

CNN found the car to be constructed in a “high quality” fashion and enjoyed the spacious interior.

In particular, we like the quick view feature that automatically displays point of interest data for the next few exits as you drive along. For example, if you’re speeding down the highway and your low fuel warning pops up, you can quickly tell if there’s a gas station at that next exit without having to do a POI search. When you consider that Toyota’s system won’t let you search when the vehicle is in motion, the quick view is doubly convenient.

There were a few issues they didn’t care for when it came to driving the Toyota Venza AWD V6.

“The suspension doesn’t communicate anything to the driver and the steering feels squirrelly and overboosted at speed. No iPod or USB connection options available.”

Edmunds.com also reviewed the Venza, which retails for just under $26,000.

They felt the design of the car was something really unique.

“The 2009 Toyota Venza has a certain “what is it?” nature to it. This five-passenger vehicle is clearly not a wagon, but it’s not a crossover SUV, either. However, as with the RAV4, Highlander and Lexus RX before it, Toyota has a knack for creating desirable new types of vehicles before the public realizes they actually want them. That’s called being a trendsetter. Of course, only time will tell if the Venza turns out to be the latest trend in family transportation, but it certainly seems like a strong contender.”

Of course ultimately it’s for the buyer to decide whether a new trend has been established or not. If enough of them vote with their dollars, the new style will be imitated and be around for years.

Edmonds also enjoyed the drive of the car.

“Unlike the Camry, however, this crossover wagon gives the impression of being robust, with a more solid feel over bumps. The electric power steering also provides a bit more feedback than its sedan cousin, but it still feels pretty disconnected from the front wheels.”

What makes the Venza different from other offerings from Toyota is the size and handling. Fully outfitted, a new Venza will cost $29,250.

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General Motors Future Uncertain

General Motors is in big trouble and facing an uncertain future. The company has had a big problem selling vehicles and has amassed a mountain of debt in the process. After announcing a $30.9 billion loss last week, many experts are beginning to wonder if the beleaguered car company can survive.

“The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors for Deloitte & Touche wrote in the annual report.

General Motors has already received cash from the US government and have currently petitioned for $13 billion more dollars. But without a rebound in demand for new cars and without the improved health of the auto loan industry, it looks unlikely that they can be restored to profitability.

Right now more questions than answers exist concerning GM’s future.

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Ford Cleveland Engine Plant Number One To Restart

Ford Cleveland Engine Plant One, which has been idling since 2007, will be re-opened as part of a plan to build new energy efficient engines. 250 workers will be needed in the plant, which will build the new “EcoBooster” engine.

This is good news for Brook Park, Ohio, which hasn’t had much to celebrate about in recent years.

The plant is a big part of Ford’s future, because the EcoBoost is thought to be the company’s new flagship engine. In the beginning stages of production in the next few years, the engine will only be used in a few models. This means a big boost in jobs won’t occur until the engine is mass produced.

The EcoBoost is a fuel injected V6 engine that offers real environmental advantages over predecessors. Although the plant won’t offer full employment any time soon, it’s still a boon for some.

“Anytime you get new work in this economy is good news,” UAW Local 1250 President Mike Gammella said.

By 2010 or 2011, if demands grows for the engines as expected, the Ford Cleveland Engine Plant Number One will likely employ more shifts.

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Ohio Considers Mileage Tax Using ‘Big Brother’ Technology

High gasoline prices and more fuel efficient automobiles have negatively affected tax revenues in Ohio, so now the Buckeye State is considering a new tax on Ohio drivers.

The proposed tax would be based on mileage.

The ‘reporting’ tool would be a big brother GPS placed in every car. This GPS would not only record total miles a car has traveled, but also when and where the car was driven.

Since many Ohio drivers have adjusted their driving habits downward in reaction to recent $4.00 a gallon gas prices and other economic factors, the current federal and state taxes of .46 cents per gallon of gasoline isn’t netting as much revenue as it once did, hence the idea for this new “big brother” taxation plan.

The mileage tax plan would replace the current per gallon tax – with the added benefit of being able to invade a civilian’s privacy by tracking their every movement.

This erosion of privacy is as disturbing as the pothole ridden roads that Ohio residents are forced to drive on year in and year out.

Needless to say, this proposal has been highly criticized by many Ohioans. However, Ohio Governor Strickland is said to support raising the current gas tax over a mileage based taxation.

Common sense says that people that drive more will end up paying more as they need to fill-up or top-off more than someone that does discretionary driving.

Shouldn’t that be enough to keep Ohio’s roadways in disrepair?

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Daimler Loses $1.9 Billion

Add Daimler to the list of auto companies who are down in sales and profit. Daimler said it lost $1.9 billion in the final quarter of 2008. They lost substantial amounts of money due to lower sales volume of their flagship Mercedes-Benz line, as well as a huge chunk of cash on their stake in Chrysler.

Total unit sales in the quarter were down 17% at 480,055, including a 22% decline for Mercedes Benz cars, where U.S. and Japanese sales suffered the most.

Daimler has been affected by the same factors as their rivals. A worldwide credit crisis has caused a bottoming out of auto sales as consumers are unable to acquire the bank loans necessary for most of them to buy cars.

As a result of the losses, Daimler announced a 70% reduction in their dividend to .60 Euros per share.

The company also forecast a deep drop in sales for 2009.

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GM Eyes Rebound According To Rick Wagoner

You could hardly blame GM Ceo Rick Wagoner for being downbeat these days, what with all the bad economic news and all. Surprisingly, Wagoner isn’t feeling blue. Instead he says GM has seen the worst of it and he expects a rebound.

Wagoner spoke with USA Today. Despite his embattled status as CEO of GM during the worst time in their 200 year history, he expects an imminent improvement.

Wagoner looks at the sunny side of things

“We just need to get the storm over, and we’re about ready to go,” he said.

One of the biggest problems facing General Motors in the past few years is car buyers aren’t interested in buying a car from a failing manufacturer. After all, what good is a warranty if the company isn’t around to honor it? Add in the fact that many consumers are having a tougher time getting credit than at any point in the past, and you can understand a bit why the company has had such poor sales.

With share prices at $2.74 a share, there are plenty of people who doubt GM’s eventual success. Even Wagoner admits it’s tough being him these days.

He described a recent run in with a customer at the Detroit airport.

“Normally, when people chase me around and say, ‘Are you Rick Wagoner?’ I say, ‘No,’ and run the other way,” Wagoner said. “But I had to stick around and get my baggage.”

Luckily for him, the lady confronting him was a happy customer who recently bought a GMAC Arcadia SUV and really loved it.

“It was terrific,” Wagoner says. “Having been through what we’ve been through in the last year, I think I’d like to be here when things get turned around.”

In order to continue on the sunny side of the street, GM will need to see more credit flowing through the system and they’ll have to shake the image that they’re literally knocking on death’s door. If customers believe the company will be around, and they’re building good cars, they stand a chance.

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