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This Week In Petroleum

May. 24, 2010

This Week In Petroleum

Why Gas Prices Are Going Up
Released on May 19, 2010(Next Release on May 26, 2010)

Deepwater Horizon Oil Spill

On April 20, 2010, an explosion and fire occurred on the offshore drilling rig Deepwater Horizon, which had been drilling an exploratory well in approximately 5,000 feet of water in the Gulf of Mexico, 52 miles southeast of Venice, Louisiana. The platform subsequently sank with 11 crewmembers presumed dead, and an uncompleted well leaking oil into the Gulf of Mexico.

While both public attention and current activities are now appropriately focused on efforts to contain the leak and to mitigate the resulting environmental damage, readers of this publication might also be wondering about potential effects on energy markets. The Gulf region is a very important energy center, with the offshore Gulf of Mexico providing about 30 percent of the total crude oil and 13 percent of the total natural gas produced in the United States. Gulf Coast refiners represent about half of total U.S. refining capacity, and are reliant on tanker shipments for a majority of their crude supply, and both tanker and barge shipments for moving significant volumes of petroleum products.

However, actual energy production and shipments have not been significantly impacted by the oil leak to date. Currently, only a fraction of 1 percent of offshore production has been shut in. EIAâs most recent Short-Term Energy Outlook, released on May 11, 2010, assumes no significant disruptions to energy supply resulting from the spill. Relatively high on-shore crude oil and product stocks, as well as the availability of the Strategic Petroleum Reserve, can be expected to buffer the impact of any short-term crude oil supply disruptions, should they occur.

Some energy impacts could yet be seen. Immediate concerns largely relate to the hazards presented by the oil slick. Where the oil is most concentrated, shipping, production, or drilling operations could be curtailed due to air quality (noxious fumes from the oil) or fire hazard. Ships transiting fouled water must be inspected to avoid further spread of the oil before entering the Mississippi or other inland waterways. Should any closures of shipping lanes or ports ultimately be required, shipping could have to be rerouted. The Coast Guard is monitoring this closely. EIA will continue to follow the spill and its impacts, and will post updates to the Gulf of Mexico Fact Sheet accessed from the EIA home page.

The actual and potential impacts of the Deepwater Horizon oil spill can be contrasted to those of a hurricane making landfall, a type of disaster that has affected the Gulf region on several occasions in recent years. Unlike the present oil spill, recent Gulf of Mexico hurricanes have often had a significant short-term impact on the energy industry.

Ahead of a storm, all oil and gas rigs in the potential hurricane path are typically shut down for safety reasons, and their personnel evacuated. Refineries and pipelines are also often shut down ahead of storms, as they can sustain damage both from strong winds and high water. Orderly precautionary shutdowns are desirable, since emergency closures can be damaging to equipment. Such shutdowns and restarts entail operational downtime directly caused by the impending storm, whether or not actual damage occurs.

After a storm passes, operators send assessment crews to inspect rigs, refineries, and other facilities, repair any damage, and commence restart procedures. Resumption of normal operations may be hampered by storm impacts on supporting infrastructure, such as electric power outages and damage to port facilities. For all of these reasons, hurricanes making landfall on the Gulf Coast often result in significant temporary supply interruptions and, sometimes, longer outages while damages are repaired.

U.S. Average Gasoline and Diesel Fuel Prices DropThe U.S. average price for regular gasoline dipped to $2.86 per gallon, over four cents lower than last week but $0.56 above last year at this time. Prices fell in all regions of the country with the largest drop taking place in the Midwest and the smallest occurring in the Rocky Mountains. The East Coast average went down about four cents to $2.86 per gallon and the price in the Midwest fell nearly seven cents to $2.80 per gallon. The Gulf Coast price declined to $2.76 per gallon, a drop of nearly three cents. In the Rocky Mountains, the price went down over a penny to $2.90 per gallon. The average on the West Coast fell almost three cents to $3.07 per gallon as the California price fell two cents to $3.12 per gallon.

The national average price for diesel fuel dropped three cents to $3.09 per gallon, $0.86 higher than a year ago. Prices fell in all regions of the country; the largest drop took place on the Gulf Coast while the smallest change occurred in the Rocky Mountains. The price on the East Coast slipped three cents to $3.11 per gallon. The average in the Midwest fell three and a half cents to $3.07 per gallon. Dropping about a nickel, the average on the Gulf Coast fell to $3.04 per gallon. In the Rocky Mountains, the average dipped a penny to $3.16 per gallon. On the West Coast and in California, the averages dropped three cents to $3.20 per gallon and $3.24 per gallon, respectively.

Propane Inventories Post Modest BuildTotal U.S. inventories of propane experienced a modest build of 0.6 million barrels last week to end at 39.5 million barrels in total. The Midwest region added 1.3 million barrels of inventory, while the East Coast region negated the rise with a decline of 1.3 million barrels of propane stocks. The Gulf Coast region added 0.6 million barrels and the Rocky Mountain/West Coast region was up slightly. Propylene non-fuel use inventories decreased their share of total propane/propylene stocks from 7.8 percent to 7.6 percent.

Satellites to issue speeding tickets from space

Apr. 23, 2010

Great Britain Is Testing SpeedSpikeUK drivers had better stay under that speed limit, because the traffic authorities are watching... from outer space. According to The Telegraph, an American company called PIPS Technology has developed a system that uses two cameras on the ground and one mounted on a satellite in orbit to catch speeders.
The system - called "SpeedSpike"
Figures your average speed between two points, captures an image of your license plate and reports you if you're going faster than the law allows. Oh, and if you're hoping Great Britain's notoriously gray weather will save you, you're out of luck; the system works even when it's cloudy or dark.SpeedSpike will be tested in two places: the London borough of Southwark, and along the A374 between Torpoint and Anthony in Cornwall. If the trial is successful, the tech may be used to enforce speed limits near schools, to reduce the need for speed bumps, and for "main road enforcement for traffic reduction."

Reading a Tire Sidewall

Mar. 15, 2010

Tire Facts

QuestionWhat do the sidewall markings on my tire mean?
AnswerThe sidewall markings on a tire provide descriptive information about the tire's design.
Step by step let's interpret the sidewall markings on the tire image example below by reading clockwise from P215/65R16, which is located on the lower left-hand corner of the tire illustration:



* P -
Passenger vehicle tire
* 215 -
This number specifies the width in millimeters (i.e. 215 mm)
* 65 -
This number is the Aspect Ratio, the ratio of sidewall height to width
* R -
Radial
* 16 -
This number designates the tire's diameter in inches (i.e. 16")
* 89 -
This number indicates the tire's load-carrying capacity, known as the Load Index; as the number for the load index increases so does the load-carrying capacity (All passenger car tires in the US are also marked with their actual load limit in pounds)
* H -
This letter denotes the Speed Rating, the maximum tire speed under controlled test conditions ("H" in this example is one of several types of speed ratings)
* Treadwear -
Wear rate of the tire determined by field testing following a government specified course
* Traction -
How well the tire stops on wet roads in government tests, graded using the letters AA, A, B, or C with AA being the highest in performance
* Temperature -
The tire's resistance to the heat generated by running at a high speed in government tests, which is also graded using A, B, or C with A being the best
* psi (pounds per square inch) -
The maximum cold inflation rating for the tire
* DOT (Department of Transportation) -
This symbol indicates the tire meets or exceeds United States DOT safety standards; the letters and numbers following the DOT symbol provide information about the tire manufacturer, tire size, and the date it was manufactured
For information on tire size and pressure specific to your vehicle please refer to Tires in the index of your owner's manual for the appropriate page numbers. Additional tire information is also available at the Uniform Tire Quality Grading section of the DOT website.

Pain at the Pump Returning as Gas Prices Head for $3

Mar. 05, 2010

Car Care Council Tips Can Help Save Money at Pump
Bethesda, MD,January 11, 2010 Consumers chronic pain at the pump is returning with gas prices 67 percent higher than a year ago and probably heading back toward $3 a gallon soon. To help alleviate the pain, the Car Care Council offers some simple and inexpensive vehicle maintenance tips.
You can't control the price of gas, but you can control how much gas you burn by performing proper maintenance and how you drive. Performing simple and inexpensive maintenance can save as much as $1,200 per year in gas costs,said Rich White, executive director, Car Care Council.
The Car Care Council offers these gas-saving maintenance tips:
Keep your car properly tuned to improve gas mileage by an average of 4 percent.
Keep tires properly inflated and improve gas mileage by 3 percent.
Replace dirty or clogged air filters and improve gas mileage by as much as 10 percent.
Replace dirty spark plugs, which can reduce mileage by two miles per gallon.
Change oil regularly and gain another mile per gallon.
Driving behavior also impacts fuel efficiency. The council offers these gas saving driving tips:
Observe the speed limit. Gas mileage decreases rapidly above 60 mph.
Avoid excessive idling. Idling gets zero miles per gallon. Warming up the vehicle for one or two minutes is sufficient.
Avoid quick starts and stops. Aggressive driving can lower gas mileage by 33 percent on the highway and 5 percent in the city.
Consolidate trips. Several short trips taken from a cold start can use twice as much gas as one longer multi-purpose trip.
Don't haul unneeded items in the trunk. An extra 100 pounds in the trunk reduces fuel economy by 1 to 2 percent.

NISSAN ISSUES VOLUNTARY RECALLS ON SELECTED VEHICLES

Mar. 03, 2010

NISSAN ISSUES VOLUNTARY RECALLS ON SELECTED VEHICLES
FRANKLIN, Tenn. - Nissan North America (NNA) today announced recalls to inspect and, if necessary, repair brake pedal pins and fuel-gauge components on certain trucks and minivans. No accidents or injuries have been reported with these issues."At Nissan, we're committed to the safety and satisfaction of our customers. We regret any inconveniences that our customers may experience as we take these precautions," said Kevin Martin, vice president of Total Customer Satisfaction for NNA.These recall campaigns involve a total of 539,864 vehicles, a majority of which are in the United States.
REASON FOR THE RECALLS
There have been three reported instances of brake pedal pins partially disengaging, causing a loss of normal braking ability, and Nissan has determined that a manufacturing error on the part of the supplier is at the root of this issue. All vehicles currently on sale are free of this problem.Unrelated to the brake-pin issue, vehicles at higher mileage levels may have fuel gauges which incorrectly indicate the amount of fuel in the tank. This may result in the vehicle running out of fuel while the gauge reads greater than empty. All vehicles currently on sale are free of this problem.
VEHICLES INVOLVED
Models and numbers of vehicles with potentially affected brake pedal pins are:*2008 through 2010 model year Nissan Titan, Armada, Quest and Infiniti QX56*178,916 in the U.S., 25,869 outside the U.S. (see box for locations)Models and numbers of vehicles with potential fuel gauges inaccuracies are:*2005 through 2008 model year Nissan Titan, Armada and Infiniti QX56*Nissan Frontier, Pathfinder and Xterra produced between January and March 2006 and between October 2007 and January 2008*418,865 in the U.S., 53,253 outside the U.S. (see box for locations)
WHAT OWNERS OF POTENTIALLY AFFECTED VEHICLES SHOULD DO
Beginning in March, owners of potentially affected vehicles in the brake pedal pin recall are being notified to bring their vehicles to a Nissan or Infiniti dealership for a quick, simple, visual inspection and, if necessary, repair. Also beginning in March, owners of potentially affected vehicles under the recalls for fuel gauge inaccuracies will be notified as to when they should bring their vehicles to their dealers for repair. Until their fuel gauge senders are repaired, customers with potentially affected vehicles are encouraged to maintain a fuel level of at least a half-tank.Customers with questions are encouraged to contact Consumer Affairs at 1-800-NISSAN1 (1-800-647-7261) for Nissan vehicles, or 1-800-662-6200 for Infiniti vehicles. Customers may also contact their respective authorized Nissan or Infiniti dealers.Contact:Scott StevensNissan Americasscott.stevens@nissan-usa.com 615-725-5025www.nissan-zeroemission.com

Drivers Beware! The Peril of Potholes Are Upon Us

Feb. 25, 2010

February 25, 2010 - Drivers Beware! The Peril of Potholes Are Upon Us

Bethesda, MD, February 25, 2010 As the ravages of winter subside and temperatures rise, there is probably a pothole out there with your name on it, cautions the Car Care Council. Record cold temperatures, snow and rainfall in many parts of the country have created the perfect storm for the motorists' dreaded perils of potholes period.
Drivers know immediately when they hit a pothole. The heart-stopping, teeth-jarring noise is hard to mistake. However, it is not always immediately clear if hitting the pothole caused damage to the vehicle, and to what extent.
Hitting a pothole can damage tires, wheels, steering and suspension, wheel alignment and more. The Car Care Council recommends that motorists who experience any of the following warning signs after hitting a pothole should have a professional technician at their local repair shop inspect the vehicle.
Loss of control, swaying when making routine turns, bottoming-out on city streets or bouncing excessively on rough roads. These are indicators that the steering and suspension may have been damaged. The steering and suspension are key safety-related systems. Together, they largely determine your car is ride and handling. Key components are shocks and/or struts, the steering knuckle, ball joints, the steering rack/box, bearings, seals and hub units and tie rod ends.
Pulling in one direction, instead of maintaining a straight path, and uneven tire wear. These symptoms mean there is an alignment problem. Proper wheel alignment is important for the lifespan of tires and helps ensure safe handling.
Low tire pressure, bulges or blisters on the sidewalls, or dents in the rim. These problems will be visible and should be checked out as soon as possible as tires are the critical connection between your car and the road in all sorts of driving conditions.

Toyota's Lentz to say electronics not to blame for acceleration problems

Feb. 23, 2010

Toyota's Lentz to say electronics not to blame for acceleration problems
WASHINGTON -- Toyota Motor Sales U.S.A. President James Lentz plans to stick to his guns and tell skeptical lawmakers today that the company's unwanted acceleration problems do not stem from electronic defects, a copy of his testimony shows.Lentz's reiteration of Toyota's longstanding position suggests that top company executives were unmoved by sharp criticism of that stance yesterday by House Energy and Commerce Committee Chairman Henry Waxman."We are confident that no problems exist with the electronic throttle control system in our vehicles," Lentz says in 2 1/2 pages of written testimony prepared for delivery to the House panel. "We have designed our electronic throttle control system with multiple fail-safe mechanisms to shut off or reduce engine power in the event of a system failure."His testimony adds that the company's "extensive testing of this system" has "never found a malfunction that caused unintended acceleration."An advanced copy of Lentz's testimony was provided by Toyota.Waxman, D-Calif., wrote a letter to Lentz yesterday saying a preliminary review of Toyota documents suggested that the company "consistently dismissed the possibility" of electronic failures as a cause of unintended acceleration.The company failed to conduct a systematic electronics investigation even after federal regulators sent Toyota a chart in 2004 showing five times as many vehicle speed complaints in Camrys with electronic throttle controls, the letter said."Our preliminary assessment is that Toyota resisted the possibility that electronic defects could cause safety concerns," said Waxman's letter, co-signed by Bart Stupak, D-Mich., chairman of the committee's oversight panel.In addition, Waxman said an interim study of electronic interference this month by the Exponent consulting firm hired by Toyota's lawyers was "of little value" because of its lack of scientific rigor.Finally, the letter accused Lentz of making "misleading public statements" about the adequacy of recent recalls aimed at addressing unwanted acceleration.Lentz said in television interviews this month that Toyota's speed-control problems could be traced directly to floor-mat entrapment of the accelerator and to sticky gas pedals.Yet Toyota officials had privately told committee staff last month that it was unlikely that sticky pedals would cause unintended acceleration, Waxman's letter said.Also due to testify at today's 11 a.m. EST hearing is U.S. Secretary of TransportationRead more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100223/OEM/100229960/1147#ixzz0gMsJpVpD

THE TOYOTA RECALL CRISIS

Feb. 22, 2010

THE TOYOTA RECALL CRISIS
Toyota disputes link between electronic throttle systems, acceleration claimsLOS ANGELES -- Toyota Motor Corp. launched a media offensive today that attempted to debunk the possibility that its electronic throttle control could be a root cause for unintended acceleration claims."There is no evidence, nor any sign, that electronic throttle control systems have been involved," said Toyota spokesman John Hanson.In a 90-minute conference call, Toyota engineers displayed internal videos that showed how Toyota "fail-safe" systems would not allow a vehicle to accelerate on its own.The automaker also showed documents of how its internal electromagnetic interference testing exceeds U.S. and European regulatory minimums. Some claimants have stated that certain radio frequencies made their Toyotas accelerate out of control without warning.Paul Williamsen, manager with the automaker's University of Toyota training center, said that once any of many hard-coded central processing units within the car register a fault involving the throttle sensor or throttle pedal, it will return the engine speed to idle or shut off the engine altogether."We have the highest-order of redundancy and error checking of any system," Williamsen said of the electronic throttle control system. "Our fail-safes work in four milliseconds. We're talking inches of vehicle travel, not vehicle lengths."Williamsen said that on-board diagnosis systems will register trouble codes that should help illuminate throttle problems. However, in the case of unintended acceleration claims, the diagnosis system cannot determine if the fault lay with the car, or perhaps with a driver who mistook the gas pedal for the brake."It is apparent there were some instances of misapplication" of the gas pedal, Hanson said. "We are investigating what the other options might be."However, an ABC News report quoted Southern Illinois University professor Dave Gilbert as saying he had found a flaw in Toyotas that prevents the vehicle from registering a fault and activating its fail-safe system.Toyota did not directly comment on the ABC report. The automaker has maintained that unintended acceleration in its vehicles is tied to sticky gas pedals or floor mats interfering with the pedals' movement. Both issues have been addressed by recalls.You can reach Mark Rechtin at mrechtin@crain.com.Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100222/RETAIL05/100229962/1290#ixzz0gMu6R2U7

Saturn owners get $2,000 incentive to stick with GM

Feb. 16, 2010

Saturn owners get $2,000 incentive to stick with GM

    Automotive News -- February 13, 2010 - 1:30 pm ET
DETROIT -- In an effort to keep Saturn owners in the GM family, General Motors Co. is offering up to $2,000 in incentives toward the purchase of a vehicle from one of its four surviving U.S. brands.The deal began Feb. 2 and runs through March 31 on certain 2009-10 Buick, GMC, Chevrolet and Cadillac models. The $2,000 comes in addition to any existing incentives.To qualify, Saturn owners must have bought or leased their vehicle at least six months ago. Customers aren't required to trade in their vehicle, according to a copy of an e-mail sent to customers.GM spokesman John M. McDonald declined to comment.GM broke bonds with some of its least committed customers in deciding to shut down the brand after an attempted sale to Penske Automotive Group fell through in September.In terms of building corporate loyalty, Saturn lagged behind Buick, Chevrolet and Cadillac from 2001 through 2008, according to a December report by R.L. Polk & Co.The pace of defections increased last year as Saturn's future became murkier, said Polk, which tracks automakers' ability to retain customers.For the specific incentives on the select GM makes and models, see stayinthefamily.com.
Contact Automotive News

Picture Of Toyota's Flawed Gas Pedal

Feb. 11, 2010
Business > Image >
January 29, 2010

Copyright 2009 The New York Times Company

Honda airbag recall

Feb. 10, 2010

Statement by American Honda Motor Co., Inc., Regarding Expansion of Driver's Airbag Inflator Recall
February 09 2010
Honda has expanded a previously announced recall of certain 2001 and 2002 model-year vehicles to replace the driver's airbag inflator in an additional 378,758 vehicles in the U.S. The driver's airbag inflators in these vehicles may deploy with too much pressure, which can cause the inflator casing to rupture and could result in injury or fatality.
In total, Honda is aware of 12 incidents related to this issue as of February 2010. While Honda was aware of two additional events when the decision to first expand the recall was made in July 2009, we are not aware of any new events that have occurred after July 2009. However, we have concluded that we cannot be completely certain that the driver's airbag inflator in the vehicles being added to this recall at this time will perform as designed. Therefore, we have decided to add certain 2001 and 2002 Accord, Civic, Odyssey, CR-V, and selected 2002 Acura TL vehicles to this recall.*
Honda is announcing this recall expansion to encourage all owners of these vehicles to take their vehicle to an authorized dealer as soon as they receive notification from Honda that their vehicle is affected. Notification to customers will start within this month.
As with nearly all Honda and Acura safety recalls, Honda originally brought this matter to the attention of NHTSA and has kept NHTSA apprised of our decision to include additional vehicles in the expanded recall.
When Honda identifies concerns of this nature, nothing is more important to the company than fulfilling our obligation and responsibility to alert our customers. To this end, as with the July 2009 recall expansion, in addition to contacting customers by mail, owners of these vehicles will be able to determine if their vehicle requires repair by going on-line or calling. Honda owners can go to http://owners.honda.com/recalls or call (800) 999-1009; Acura owners can go to http://owners.acura.com/recalls or call (800) 382-2238. When owners of these vehicles receive written notification of this recall from Honda, they should contact their authorized Honda or Acura dealer to schedule an appointment for repair. Honda will also follow the mailed notifications with telephone contact to each customer.
BACKGROUND:
As background, sixteen months ago Honda announced to NHTSA a plan to conduct a recall on fewer than 4,000 model year 2001 Accord and Civic vehicles to replace the driver's airbag inflator, based on our analysis of four instances attributed to the cause of airbag deployments that resulted in rupture of the driver's airbag inflator.
After the original recall in November, 2008, two additional incidents were reported, including one fatality from a vehicle not included in that recall. Our ongoing analysis led us to recognize the potential for additional vehicles to exhibit this symptom, and in July, 2009 Honda expanded that recall to include approximately 440,000 model year 2001 and 2002 Accord, Civic and certain 2002 Acura TL vehicles. To date, Honda is aware of a total of twelve incidents.
If the driver's airbag deploys in an affected vehicle, the driver's airbag inflator could produce excessive internal pressure which may cause the airbag inflator casing to rupture, resulting in metal fragments passing through the airbag cushion material and possibly causing injury or fatality to vehicle occupants.
There were two types manufacturing machines used in pressing the inflator propellant. One propellant manufacturing process allowed us to verify that all of the propellant was within specification, but we cannot validate the other process to our satisfaction at this time. We have decided to recall all inflator assemblies that were not confirmed by 100-percent automatic inspection during production because we cannot be absolutely certain they will all perform as designed, even though recent testing of units from this production process performed correctly.
* We are also adding one (1) Honda Pilot and one (1) Acura CL vehicle, each produced in late 2002, to this recall.

Toyota to dealers: Parts to fix pedals on way

Feb. 01, 2010
Auto giant has recalled 4.2 million vehicles but technicians need training.Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end of this week as the automaker apologized to customers and tried to bring an end to a recall that has affected 4.2 million vehicles worldwide.The company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open around the clock to fix the 2.3 million cars and trucks affected by the recall in the U.S.Technical bulletins on how to install the new parts should arrive at dealers by midweek, the company told dealers in an e-mail. It was not clear exactly when repairs would start, although dealers have said they'll begin as soon as possible.

Advice For Buying A Used Car

Feb. 01, 2010

Buying a used car
Used car or new? What car is right for me? Where to look for used cars, what to look for when buying a used car? There are many questions you may have when it comes to used car buying process. In this article I will answer to some of these questions and hopefully, make the used car buying process easier for you. There are many essential facts you should consider before buying your next car so you won't regret your decision for a moment afterwards.
New or used car?
By purchasing a used car, you can save a lot of money. A new car depreciates quickly in the first few years and after 3 years, it is worth only about 60-70% of the original price. In fact, as soon as you leave the dealership, your new vehicle is suddenly worth $1000-$2000 less. When purchasing a new car you basically are paying for its fresh "new" aroma and warranty. Yet, buying a new car does not always mean the buyer will get perfection. A new car may come with problems associated with poor design or manufacturing defects that may have been already repaired during the warranty coverage period if it's a used car. The same is true for all kinds of recalls and service campaigns. Another advantage of buying a used car is that you could buy a loaded model with all the bells and whistles that you might not be able to afford had you bought a new car.
However, buying a used car is still a bit of a gamble - there is no guarantee that the car is accident-free, has real mileage, and was properly maintained. There may be some hidden problems like a worn out automatic transmission, or engine problems that may not have been obvious when you test-drove the car. So, next you must ask yourself: Will I save money when buying a used car? How do I eliminate the risk of potential problems and is this actually possible to do? Read on to find out more information.
Taking a risk out of used car buying process
FirstBe prepared. Do as much research as you can. Read reviews, consumer reports, ask colleagues and friends, compare options, gather gas consumption data on the make and model you're interested in. Examine reliability ratings. Try to determine maintenance costs and upkeep, etc. Your goal should be to narrow your search to one or two models. Why? Because if you just enter a dealership without knowing what you want, chances are more likely than not that you won't be happy with your purchase. Later you may find out that it's simply not exactly what you wanted or what you can afford. Someone I know bought a used BMW wagon for quite a reasonable price. When he went for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to $1000! Finally, he sold his BMW and bought a used Camry that proved less expensive to maintain.Another purpose to narrow your choice down to only one or two models is because when you test-drive a few different cars of the same model, it will be much easier for you to compare their condition and pick the best one. Recognizing a transmission problem during your test drive would be easier to do if you were to try a few vehicles of the same model instead of becoming confused by testing out different models.
SecondWithout a doubt, you should check a car's history records. This will help you to eliminate half of the vehicles from your list with potential problems. Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers, heavily abused vehicles (e.g., ex-rentals), those with outstanding liens, etc., can be eliminated after simply checking the history record of the vehicle. In fact, it is not even a good idea to look into a car until you check its history.To learn further How To check a car's history click on this link: How to check a car history by the VIN number.
ThirdDon't buy based on what you've been told because it may not always be the truth. Check out the car yourself very carefully. Ask a knowledgeable person who knows about cars to help you.Check my Illustrated used car checklist to learn what to look for in a used car.As a final step, bring the car to the mechanic you trust for an inspection. A word of caution, NEVER give a deposit or sign a contract before the car is inspected.
Fourth Be extremely careful when doing the paperwork. For example, if you buy from a private owner, make sure there are no registered liens against the vehicle and that the person who signs the Bill of Sale is the actual owner of the car. Check with the Vehicle Registration Authorities to make sure the car has not been stolen.
If buying from a dealer, read the warranty policy and all the papers including the fine print very carefully. If it's a "Certified" used car, you'd be wise to check exactly what items were checked off and approved because sometimes the car might have a history of an accident in the past, come with a poorly maintained engine and still be Certifiable. Do not rely on a salesperson's verbal promises. Whatever is promised, get it in details in writing. Find out if the remaining original warranty will be transferred into your name. Different manufacturers have different warranty policies. For questions about vehicle registration, change of ownership, legal aspects, etc., contact your local Vehicle Registration authorities found in my link page.
Car value and price
Don't look for cheapest car. When it comes to used cars, "best deal" doesn't mean the cheapest one. Your goal is to look for a car in good condition for reasonable price. If you choosing between relatively cheap car that might have an accident in the past or was poorly maintained, needs some repair, etc. and more expensive one that is in excellent condition, I'd without a doubt choose the more expensive one. You will simply save on repairs and will have less troubles driving it. Don't think they sell it cheap because they don't know the price or they simply want to clear their inventory. If they sell it cheap, definitely there is something wrong with it. Remember, proper price for a certain used vehicle is not the one indicated in blue or black book - they give you just an average price. The actual vehicle value big time depends on a car condition. Two cars may only look the same. One may have been maintained so poorly and the engine won't last long after you buy it. Previous owner of another vehicle may have been religious about maintenance, was using only synthetic oil, has done the rustproof and so on. Without a doubt, I'd rather pay $2000 more for this second car just to have peace of mind driving it.So, how to determine how much you will have to pay for a certain model?Just to show you as an example, I search Ontario used cars for sale website Autotrader.ca for a three years old Honda Accord. The search result gives me more than 200 vehicles with the price ranging from 12,000 to 22,000 CAD. To be realistic, I know that for 12,000 I will not be able to buy something really good. 22,000 CAD seems to me too high. But there are quite a few cars for 17,000 - 18,000 price range - this looks more realistic to me. I also know that most new car dealers will be able to give me a discount from 1,000 to 3,000 CAD if I use proper negotiation strategy (read below). So, in our case with three years old Honda Accord, I'd probably will be able to get the one in a good condition for 15,000 - 16,000 CAD depending on mileage, options, etc. You can use the same strategy everywhere; whether is Miami Florida or Winnipeg Canada.Check my page Used cars for sale on the Internet to find appropriate website for your area
"How to buy a used car"
Decide how much you can afford
Set yourself a firm limit of how much money you want and can afford to pay for a car. The process of buying a used car can be time-consuming and stressful and it might be difficult to resist the urge to buy more expensive vehicle, especially when higher total price is hidden under "low" monthly payments. Often dealers could try to push you into buying more expensive vehicle to increase their commission. In fact, this is very common situation when people rush into buying a car or a truck only to realize later that they cannot afford paying for it. Thousands of people are searching the Internet for an answer to "How to get out of a car deal?" You want to buy something that you can afford, something that will not put excessive financial strain on your family budget, so you need to set yourself a firm limit. Check more money-saving tips at How to save money on a car
What type of used car will fit into my price range?
Let's take a look at some prices:$10,000-$18,000 - This is the average minimum amount of money one would need to spend on a 'decent' car 3 to 4 years old. This would be a typical car (not a luxury car) sold from a new car dealership. They usually have, what would I recommend as a perfect choice, traded in one-owner certified vehicles that were sold new and serviced at the same dealership. Sometimes you may find such a car from a private owner. Usually such a car may last for another few years relatively trouble-free if properly maintained.
For $5000-$9000 you may be able to find a 6 to 9 year old used car with relatively high mileage which still might be in good shape. However, it may take a lot more time to find a good condition used car in this price range. Typically, independent used car dealers sell cars within this price range.
For $1000-$2000 you may be able to buy something that can serve as simple transportation to get from point A to point B. More than likely it may be a car with high mileage sold by a private owner. Dealers usually do not spend time selling cars or trucks in this price range. However, be prepared to spend much more money to keep such vehicle running.To learn more about what kind of vehicle you can afford for your hard earned money, try to search the Car Sales websites where you can enter the maximum amount of money you intend on spending. Click to: Used cars for sale on the Internet.Don't forget that aside from the sticker price you may need to pay extra for taxes, registration and there may be other charges to consider.
Choosing the right car
I can tell you, you won't get a good deal if you just browse from dealer to dealer without knowing what kind of car you are looking for. The first step - You need to decide what exactly you want. Do you need simple transportation to drive to work and back? If so, a small Sedan would suit this purpose. Do you want a car to be very economical? If so, you would want to select a car with a small engine. Don't expect to find a V6 or V8 engine or 4WD truck if you are looking for something really affordable. Are icy roads common in your area? If this is the case, then you need a car with ABS. If you want to use your car to tow a trailer, then you will have to consider a car with more powerful engine. Once you've decided on what type of car is best suited for you or your family members, and you know what you want, check out the market, see what models are available, and see what fits into the price you can afford. Following this you will be able to narrow your search to just a few models. Then compare the reliability rating and read more reviews. Don't forget to check insurance rates, get the quote before buying a car. Follow this link for more tips: How to choose the right car for you.
Cost of insurance
The cost of insurance varies a lot depending on the make, year and model of the car, driver's experience and many other factors. I definitely recommend to get insurance quotes before buying a car.
Follow these links for auto insurance quotes:
For US:GEICO according to their website, GEICO is the fourth-largest private passenger auto insurer in the United States. You can get an insurance quote online.Insurance.com - online insurance quotes from multiple providers.21st Century Insurance Company - online quote. For Canada:TD InsuranceRBC InsurancePC Financial InsuranceVisit this page for more information about Auto insurance
What mileage is OK for a used car
In general, I would not recommend purchasing a car with a very high mileage, for example, 250,000 km (155,000 miles) and higher would be considered very high. However, "low mileage" does not necessarily mean it's going to be a "good car". Be aware of cars that may have undergone restoration after a serious accident or cars that haven't been property maintained, or cars that may have had their odometer rolled back - nowadays they can easily 'fix' even electronic odometers. Again, checking a car history records will certainly help to avoid those lemons with "fixed" odometer.When considering the 'mileage' count, it simply means that when choosing a car whether it has 60,000 or 80,000, it is not as important as the fact that it was well maintained and accident-free.
How old is not "too old"?
I would not recommend buying an old car even at "bargain" price; no matter how many new parts you put into it, it will be still an old car that will need more and more repair later. Simply scratch out from your list anything older than ten - twelve years. Perfect choice will be three - five years old car because the price is greatly reduced and you will still have few trouble-free years.One important detail: 2000 is a model year, not the production year. The car produced in august 1999 may carry 2000 model year as well as the one produced in July of 2000. This is related to all cars and model years. To know exactly, look for the first registration date in the car history report.
Where to look for a car?
You may have already searched the Internet for a used car. The Internet is an effective tool you can use to find out what is on the market in terms of availability, production year and price. It will give you the most up-to-date information compared with automotive magazines. Follow this link to check List of Cars for sale websites.
Who sells used cars?
New Car Dealers, Used Car Dealers and Private Owners will have used cars or "re-sale" cars. Personally, I would suggest that the best buy for you would be to purchase a car that has been very well maintained (preferably at a dealership) and has never gone through an accident or other major problems. Most likely you'll be able to find such a car sold privately by the original owner or at a new car dealership where it was traded in. The price for a used vehicle is usually higher at a new car dealership. However, paying a higher price may provide you with all the service records for the car. Most likely, the previous owner may have taken the car specifically to the dealership because he/she felt it was maintained very well, instead of taking it somewhere else to be traded in. You're more likely to find a well maintained car through a dealership because previous owners have taken care of their car very well because they value it, and the dealership is more than likely to be particularly about the condition the car is in to ensure it has a high quality.Now let's discuss other places to buy a used car. Independent used car dealers will offer used cars at a less expensive cost but more often than not, you'll find a cheaper car but it will have been less maintained. A word of advice: try to avoid dealing with curbsiders. Here's what happened to someone who contacted me and then went on his own to buy from a curbsider: A person contacted me and in an effort to save on taxes, arranged the deal as a private sale. Later the buyer checked the history and found the car was written off in a different State in the USA due to an accident and the mileage was noted to be a lot higher than the curbsider stated to him. After repeated attempts this person cannot even locate this "dealer".On to the private owner... Quite often you can find a good car for a reasonable price from a private individual, and usually they will be more flexible in terms of price but keep in mind that they do not offer any warranties.
Making phone calls
It may be a good idea to take the time to make phone calls and enquire to confirm all vehicle information that is important to you: mileage, color, transmission, Air conditioning, ABS or for any other options that may be in your interest. You may find a car to suit your purpose but it may not have all the essentials you really need. For example, you may find a car without air conditioning (A/C) but it will meet your needs in all other aspects. Similarly, you may find a car that is a two-door but you have a family of four and it would be much more suitable if your purchase was a four-door.Who is the Owner? How long has she/he owned this car, and how many owners were there before of this same car?Answers like: 'This is a friend of mine's car', or 'I bought it a couple of months ago' may indicate something suspicious. You need to deal with the actual vehicle owners and he/she has to sign the bill of sale. If one sells the car after just a few months, this may indicate that this car has a problem or the seller is in the 'curbsider' business.Did the car have any accidents, major repairs done? Where has it been serviced and are there any records available for you to review?Don't expect the seller to provide you with complete information. He/she may be unaware about previous accidents or other problems. Refer to the vehicle history report and the result of mechanical inspection. I wouldn't recommend buying a car after an accident or after a major repair, e.g., a re-built engine or transmission.Is the car drivable now? Does it have any problems or concerns that need to be solved? The car may not have valid license plates or insurance or have some mechanical problem at the time you are conducting your search. Therefore you won't be able to test-drive it.Here is the short list of questions to ask:- When did you buy the car? How many previous owners? Current mileage?- Any previous accidents? Major repairs? Any repair needed now?- What's the mechanical condition? Any concerns?- General condition of the car? Interior? Exterior?- Any rust? Scratches? Any other damages?- Where the car has been serviced? Are the service records available?- What is the reason for selling the car?- Any liens?
Negotiating the deal
Often when you use a proper negotiation technique you can get a reasonable discount. Here are a few proven tips:1. Start negotiating from the beginning. Try to get a discount from the very first time you phone about the car. If they ask for $15,000, ask them if it's worth to come if the $14,000 is your bottom line, considering that you are the real buyer. Usually they won't say "No", which means that when you come, you can start negotiating down from $14,000, not from $15,0002. Negotiate the total price. Dealers always like to add some additional fees on the top of the sticker price. Ask to calculate a total price "on the road" and use it for a negotiation.3. Make a lower offer. Don't be afraid to make a lower offer. If they are asking $15,000, offer $13,000. If the salesperson believes you will really buy a car, he/she will go down in price, and maybe you will then get the car for $13,800 or thereabouts.4. Be ready to leave if you feel any pressure or if you have any hesitations about the car - there are so many other cars available. You don't have to decide immediately. Do not give a deposit or sign anything until you are absolutely satisfied with the car and conditions.5. Nothing works better than competition. Let's say you have two cars on your list that you're interested in. Show it to the salesperson and say you will buy a car from whomever gives you the better price. For example, if one of the salespersons offers you a $500 discount, phone to another dealer on your list and ask them if they can match it.6. Whatever is promised by a dealer, ask to confirm in writing. Negotiate all the details of the deal. If the dealer promises to install new tires, make sure you agree on what kind of tires - cheapest available or of a well known brand like Michelin or Goodyear. If there is some kind of warranty that comes with the car, make sure you understand all terms and condition. If the dealer promises to show you all service records, make sure you check them before paying for a car.
Legal aspects of buying a car
Many questions may come up when buying a used car such as how to transfer the ownership, how to write a bill of sales, how to register the car from another state or province, what papers are required to register the vehicle, the owner's and buyer's responsibilities, etc. Because each province or state may have different laws and requirements for the sales transaction of the car, it is best to call your local vehicle registration office or Department of Motor Vehicles, or legal authorities. You can find respective website following the link: Vehicle Registration Authorities Websites for Canada and the USA.
Buying an extended warranty
All new cars come with original warranty provided by a car manufacturer. This original warranty covers most of the vehicle components for a certain period - most commonly, three years or 36,000 miles. After the original warranty expires, you will have to pay for all repairs out of your pocket. This is when an extended warranty may be helpful. An extended warranty is basically a service contract between the car owner and the warranty company. According to this contract, the warranty company will pay for the repairs covered by the contract for a specific period of time. It's something like health insurance for your car. With an extended warranty you are protecting yourself from unexpected repair costs.For instance, you bought a used car that is out of original warranty and the transmission fails. If you don't have an extended warranty you will have to pay out of from your pocket, transmission repair may cost you more than a couple thousand dollars. If you have a good extended warranty, it would cover most of the repair costs - in some cases you would only have to pay a diagnostic fee, or a deductible, depending on the type of warranty you have.However, not all cars are qualified for an extended warranty and not everything is covered. Items like belts, brakes, tires and other wearable parts are usually not covered. Also, you still have to maintain your car properly and keep all the receipts.Learn more about Extended warranty for your car
Do's and Don'ts when buying a Used Car
Do Check a used car history report This does not give you a 100% warranty that the car is OK, but may save you some money if it will show you some bad records, for example, if the car was written off after an accident or has had an odometer rolled back.Do ask someone knowledgeable to inspect the car for you; it may save you a lot of money.Don't buy a car after a serious accident - especially following a frontal collision. You wouldn't believe how many possible problems may arise later as a result of an accident.Don't buy a car as soon as you see it. Take your time, test drive the car as long as you can. For example, some problems may only be caught when the engine is cold while other problems may only be discovered when cruising at highway speeds, etc.Don't base your decision on what you have been told. "One Owner, highway driven" in fact, may be an ex-rental, heavily abused vehicle.Don't buy a car if you have reservations or hesitate for one reason or another... if you don't have a good 'gut' feeling about it. If the engine seems too noisy or works as if it is in rough shape and sounds heavy, the transmission shifts harshly, some works needs to be done, something seems to be wrong with the papers, etc. - move on.Don't buy a car if it needs some "minor" repairs. Often this results in spending big bucks for repairs that never seem to end.Don't buy a flooded car; it may look good and still be drivable but later a flooded car may develop many expensive to fix problems: corrosion, electrical, electronics, wheel bearings, transmission, etc.Don't be rude to a salesperson at the dealership. Regardless of the many stereotypes we share, many salespersons are genuinely nice people. Be persistent but not rude; treat them well and they will be willing to help you...

America's Most Stolen Cars

Jan. 31, 2010

America's Most Stolen Cars
Small cars that can be chopped into parts and sold for use by street racers dominated the list of the most-stolen autos in the U.S. last year, but high-priced cars and expensive sport-utility vehicles also ranked high, according to a report released Tuesday.
TOP 25 MOST-STOLEN VEHICLES
The list is based on a comparison of loss claims to the total number of registered vehicles.
1. 2001 BMW M-Series Roadster
2. 1998 Acura Integra

3. 2004 Mercury Marauder

4. 1999 Acura Integra
5. 1995 Acura Integra
6. 2002 Audi S4
7. 1996 Acura Integra

8. 1997 Acura Integra
9. 2001 Acura Ingegra
10. 2000 Jaguar XJR
11. 1994 Acura Integra
12. 2005 Suzuki Aerio
13. 2004 Suzuki Aerio
14. 1998 Land Rover Range Rover

15. 1998 Jaguar XJR
16. 2003 Mercury Marauder

17. 2000 Acura Integra
18. 2002 Cadillac Escalade
19. 2000 Audi A8
20. 2000 Audi S4
21. 1993 Mercedes-Benz 600

22. 1995 Land Rover Range Rover
23. 2005 Cadillac Escalade
24. 2000 Honda Civic
25. 2001 Audi S4

Leading the way was the 2001 BMW M-Series Roadster, which was stolen at a rate of one for every 200 on the road, according to the Chicago-based CCC Information Services, an industry group that tracks theft and vehicle damage.
Has your car been stolen?
Six of the top 10 most-stolen cars were models of the Acura Integra, which has a powerful engine that easily can be swapped into a lighter Honda Civic, making it a quick street racer, said Jeanene O'Brien, who analyzes the data for CCC.
The Acura models in the top 10 are from the mid-to-late 1990s through 2001. O'Brien said the 2004 and 2005 Suzuki Aerio, another small car with a powerful engine, appeared in the No. 11 and 12 slots almost from nowhere."That's where you see the whole tuner illegal street racing thing coming out," she said. "We saw a big spike in it last year. There's been further movement this year."
Such thefts are mainly in coastal states where illegal street racing is more popular, O'Brien said. The resale value of the parts is often far more than the value of the car as a whole, she said.Thieves are grinding serial numbers off the Acura's double-overhead-cam engines and dropping them into Hondas, said Lou Koven, a detective with the Los Angeles Police Department's commercial auto theft division.
The racers run their cars hard until the parts fail, then steal Acuras for replacement parts, Koven said."They're easy to steal, they're plentiful, and it's a lot cheaper than going out and buying the parts," he said.
Most parts don't have serial numbers and can't be traced, he said.The Integra was replaced by the RSX in the 2002 model year, but that model doesn't show up in the top 25.Acura realized the theft problem and built more deterrent systems into the RSX, said Mike Spencer, an Acura spokesman. The RSX will not start without the key, which has a computer chip in it that the ignition system must recognize, Spencer said.
In Los Angeles, there's a huge market for older-model Honda and Toyota parts because the vehicles are reliable and stay on the road for many years, Koven said.To compile its list, CCC first gathers data on vehicles that are stolen but not recovered, or are stripped to the point of being a total loss. Then it compares that list to vehicle registration data and calculates a percentage.
As a result, many niche models make the list because they are popular with thieves.For example, although the 2001 BMW M-Series Roadster topped the list, only 5,000 of those models were registered nationwide.
Other limited-edition, high-performance specialty models such as the 2002 Audi S4 and the 2004 Mercury Marauder also made the top 10, as did the 2000 Jaguar XJR luxury car.Despite high gas prices, several high-end luxury sport-utility vehicles also made it into the top 25, O'Brien said. The car-market segments with the most stolen vehicles were the full-sized SUV and the heavy-duty station wagon, she said.
Koven said many older-model big SUVs don't have computer chips in the keys to prevent theft, so they are easy to steal. Such vehicles often are taken so thieves can rip out and resell their expensive wheels and tires or video systems, he said. They also are sold intact by changing the vehicle identification numbers.A Cadillac Escalade's wheels and tires alone are worth $10,000, and even the 2002 model, which ranked No. 18 on the list, still sells for around $48,000, O'Brien said.
CCC, which provides software and information services to insurers and repair shops, compiles its report with loss claims from more than 350 property and casualty insurers in North America.

Frequently Asked Questions For Sticking Accelerator Pedal Recall and Suspension of Sales

Jan. 28, 2010
Which models are affected by the recall/stop sale?Toyota's accelerator pedal recall and suspension of sales is confined to the following Toyota Division vehicles: * 2009-2010 RAV4, * 2009-2010 Corolla, * 2009-2010 Matrix, * 2005-2010 Avalon, * Certain 2007-2010 Camry * 2010 Highlander except hybrid models, * 2007-2010 Tundra, * 2008-2010 SequoiaNo Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser, Highlander hybrids and select Camry models, including all Camry hybrids, which will remain for sale. What is the condition that has prompted Toyota to take this action?In rare instances, there is a possibility that certain accelerator pedal mechanisms may, mechanically stick in a partially depressed position or return slowly to the idle position. What is the likelihood that my vehicle will experience this condition?The condition is rare and does not occur suddenly. It can occur when the pedal mechanism becomes worn and, in certain conditions, the accelerator pedal may become harder to depress, slower to return or, in the worst case, stuck in a partially depressed position. Are you continuing to investigate other models?Toyota is confident that all models that contain the potentially sticking pedals have been identified. Why has Toyota stopped selling the affected vehicles? Until Toyota has finalized an appropriate remedy to address the potential for sticking accelerator pedals, a sales suspension is necessary. How long will this stop sale be in effect?New cars covered by this recall will not be delivered until a remedy is finalized and then implemented. When do you expect to have a remedy?We're making every effort to remedy this situation for our customers as quickly as possible. What options are you exploring for a remedy?We are reviewing a number of different options, and we hope to announce a remedy soon. What should I do if I believe my vehicle is affected by this condition, i.e. I have noticed that my accelerator pedal is hard to depress, slow to return or is unsmooth during operation. What should I do?The vehicle should be driven to the nearest safe location, the engine shut off and a Toyota dealer contacted for assistance. What if you experience a sticking accelerator pedal while driving?Each circumstance may vary, and drivers must use their best judgment, but Toyota recommends taking one of the following actions: * If you need to stop immediately, the vehicle can be controlled by stepping on the brake pedal with both feet using firm and steady pressure. Do not pump the brake pedal as it will deplete the vacuum utilized for the power brake assist.* Shift the transmission gear selector to the Neutral (N) position and use the brakes to make a controlled stop at the side of the road and turn off the engine.* If unable to put the vehicle in Neutral, turn the engine OFF. This will not cause loss of steering or braking control, but the power assist to these systems will be lost.* If the vehicle is equipped with an Engine Start/Stop button, firmly and steadily push the button for at least three seconds to turn off the engine. Do NOT tap the Engine Start/Stop button. * If the vehicle is equipped with a conventional key-ignition, turn the ignition key to the ACC position to turn off the engine. Do NOT remove the key from the ignition as this will lock the steering wheel. If I am an owner of one of the affected vehicles, what action do I need to take?Toyota is working quickly to prepare a correction remedy and will issue owner notifications in the future. No action is required at this time unless you feel you are experiencing this condition. If you are experiencing this condition, immediately contact your nearest Toyota Dealer for assistance. Toyota stated that this did not affect new/low mileage vehicles, has the situation changed?The law requires that the entire universe of new vehicles identified in our recall notice must be included in the stop sale. Why are you stopping production at your factories?Production is being stopped temporarily at five North American production facilities to assess and coordinate activities related to the recall announced on January 21. What should I do if I still have questions or concerns?If you still have questions or concerns that have not been addressed here, please contact the Toyota Customer Experience Center at 1-800-331-4331. The Toyota Customer Experience Center hours are:Mon - Fri, 5:00 am - 6:00 pm PSTSat, 7:00 am - 4:00 pm PST

The Saab-Spyker Deal Explained

Jan. 27, 2010

The Saab-Spyker Deal Explained
AMSTERDAM - General Motors Co. said Tuesday it has reached an agreement to sell its struggling Saab Automobile arm to the small Dutch luxury carmaker Spyker Cars NV.
GM has not specified terms of the deal, but a Wall Street Journal report citing anonymous sources says the sale price is roughly $74 million, and GM will retain preferred shares in Saab worth $326 million.
As part of the deal, the Swedish government will guarantee a euro400 million ($566 million) loan from the European Investment Bank to Spyker, the Journal reported.
The deal would be a coup for Spyker and a lifeline for Saab, which has around 3,500 employees in Sweden.
The sale of Saab is "great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM," said John Smith, a vice president at the company.
It's been a long wait and lots of nail biting for Saab employees and Saab enthusiasts around the world, but GM and Spyker have reached a preliminary agreement on a Saab sale. The deal includes amongst other things the rights to the Saab brand of course, the Trollhattan production facilities (which was important to Spyker - more on that in a bit), the rights to produce and sell the existing 9-3's, the new 9-5 and 9-4x models. Former Saab CEO Jan-Ake Jonsson, who was let go when the liqudation of Saab started, will be reinstated as CEO. He, and Spykers CEO Victor Muller have been named the heroes of this deal - Jonsson for his endurance and stamina "He didn't walk out the back-door as liquidation started - instead he started nightly negotiations, writes Aftonbladet.se in a tribute to Jonssons' role. And Spyker's Muller's charm and persistence have also been mentioned as a crucial part in securing Saab from GM.
THE FINANCING
Financing for the Spyker/Saab deal is not entirely known, but Victor Muller have allegedly contributed with private funds to secure the deal. But when di.se asks him, he gets secretive. It's mostly financed through loans, he says, but he refuses to specify sources saying "it's about my own shareholder structure."What is clear is that he buys out the Russian black horse Viktor Antonov, which was a demand from both GM and the Swedish Government. Antonov will own nothinh in the new company, Muller says. But Muller himself will hold a 38% stake in the company. And Abu-Dabi based Mubadala will own 22,4%. The rest of Saab's capital structure will consist of investment funds, each holding less then 5% of Saab's equity. All this according to Muller himself, through di.se
THE DEAL
Under the terms of the deal, the following will take place.1. Spyker Cars NV in Zeewolde, The Netherlands buys all Saab Automobile AB's shares from GM's subsidiary Saab Automobile Investment AB for US$ 74 million.2. At Spyker's general meeting later this spring, the Spyker NV*s name will change to Saab Spyker Automobiles NV. Saab will become a Subsidiary of SSA.3. GM stops Saab's liquidation and Jan Ake Jonsson and the rest of Saab's management is reinstated.4. Payment to GM will happen in two stages: 50 million upon final contract signing, by Feb.15, and then 24 million by July 15 2010.5. The contract between GM and Spyker are dependent on the 400m EURO EIB loan. The Swedish government has said they will guarantee the loan, but the EU commission must approve the guarantee, and the EI Bank must grant the loan.6. GM will partner in the new Saab Spyker for 7 years, by getting interest bearing preference shares worth USD 326 million (with a 1% voting rights). This is in practice a loan from GM to Spyker that is due Dec 31 2016.7. Victor Muller will, through his privately owned company Tenaci Capital BV, resolve Vladimir Antonov from the deal. Antonov's presence was an issue to GM and Sweden's Gov't.
SPYKER'S PLANS
Spyker's plan for Saab includes production and sales of the existing 9-3 models, the new 9-5 and the new 9-4x ASAP, hopefully during April. Muller also wants to produce Spyker cars at the Trollhattan facilties. Today, Spyker are collaborating with Lotus, paying millions per year for development resources. With Saab Spyker these costs can be kept in-house. In an interview with AutoMotor&Sport.se, Muller also says Saab will not release a 1,2,3,4,5,6,7,8-series like Audi/BMW/Mercedes, but will instead concentrate on a few models. But he REALLY thinks the Saab Aero X is a model deserving to become reality. "At Spyker cars we know how to produce exclusive cars in small series, so..." he teases AMS
Jan Ake Jonsson says in an interview with di.se that he reckons Saab will be profitable in 2012, which is when they will have finished the plan's largest investments. Saab must sell 100,000 cars to be profitable, he says. Saab has consistently sold 100.000 cars, regardless of economic changes. "We'll use this estimate even though we have quite a new model program, so these figures could even be a conservative estimate," he tells di.se.
Will this work, though? What's the difference between this and the Saab-Koenigsegg Deal? The Opel-Magna deal? The Saturn-Penske deal? The Hummer-Tenzhong deal? Time will tell, but for the first time in a long, long time, Saab at least has a future to look forward to.

Toyota Files Voluntary Safety Recall

Jan. 22, 2010
Toyota Motor Corp. built its reputation in the U.S. as a maker of safe and dependable vehicles, but the quality of the Japanese automaker's fleet continues to be tarnished by serious safety recalls.Toyota said Thursday it is recalling 2.3 million vehicles in the U.S. to fix accelerator pedals with mechanical problems that could cause them to become stuck. The announcement comes just months after it recalled 4.2 million vehicles due to gas pedals that could become trapped under floor mats, causing sudden acceleration. That problem was the cause of several crashes, including some fatalities.Toyota said Thursday's recall is due to potential problems with the gas pedal mechanism that can cause the accelerator to become stuck - regardless of whether the vehicle contains a floor mat. Toyota said in certain rare cases, the gas pedal mechanism wears down, causing the accelerator to become harder to press, slower to return or, in some cases, stuck.In a letter to federal safety officials dated Thursday, Toyota said the problem appeared to be related to the potential build-up of condensation on sliding surfaces in the accelerator system that helps drivers push down or release the gas pedal.Toyota spokesman John Hanson said the automaker does not yet have a solution to the latest problem but is working to develop one. Toyota will soon be contacting owners directly about the recall, he said.The recall affects the 2009-2010 RAV4, the 2009-2010 Corolla, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2007-2010 Camry, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010 Sequoia. Of these, the Avalon, Camry and Tundra models - encompassing about 1.7 million vehicles - also were included in the previous gas pedal recall. Their accelerator pedals could be at risk both of becoming trapped under floor mats and becoming stuck due to mechanical problems.Hanson said the company is unaware of any accidents or injuries due to the gas pedal problems associated with Thursday's recall, but could not rule it out for sure. He said the recall "came together very quickly."He added that all of the vehicles involved in the latest recall contain a gas pedal system that comes from a single supplier. He declined, however, to identify the supplier or say whether Toyota would continue doing business with the supplier."Responsibility for this in the end is ours," he said.The National Highway Traffic Safety Administration said in a statement that the problem is "a serious safety issue and we are pleased Toyota is taking immediate action to address it."Toyota said drivers in the recalled vehicles whose gas pedals become stuck should firmly apply their brakes, drive the car to a safe location, shut off the engine and contact the nearest Toyota dealer. Drivers who experience the problem should not pump their brakes, Toyota said.Toyota's last recall, announced in November, was blamed for several crashes, including an accident involving a Lexus that accelerated to more than 120 mph before crashing in San Diego, killing four people. It was the sixth-largest recall ever in the U.S.

Why Buy Winter Tires?

Jan. 01, 2010

What Are Winter Tires?
Also known as snow tires, winter tires provide enhanced traction in some of the most severe winter weather conditions. Today's winter tires help provide enhanced traction on ice, slush, snow when the temperature drops below 45 degrees. Plus, most winter tires feature specialized tread compounds and advanced tread designs that helps provide superior traction.
Winter Tire Fact:
Four winter tires should always be installed for equal traction. Installing only two winter tires can upset the balance of traction and handling of your vehicle.
Should I Get Winter Tires?
Even if you have traction control or a four-wheel drive car, truck or SUV, you should consider winter tires if you encounter snow or ice on a seasonal basis. Four-wheel drive vehicles can provide a false sense of security in winter conditions. Your vehicle's starting, stopping and turning abilities ultimately come down to the amount of traction your tires can provide on snow-covered or icy road surfaces.
Another reason you might want to consider purchasing winter tires is if the temperature in your area regularly drops below 45 degrees. Winter tires feature a specialized tread compound that remains soft for enhanced traction in cold conditions. So check to make sure your tires are up to the job in winter.
The Sign Of Confidence
The Mountain Snowflake Symbol located on the sidewall of a tire
indicates that the tire meets specific winter traction performance
requirements. This symbol is reserved for winter tires that are best
suited for severe winter driving conditions.
Winter Driving Tips
Whether you drive with or without winter tires, the following tips can help make your winter travels a little less stressful.
Try to avoid unplowed roads where you can get stuck. Plan your route on well-maintained main roads.

Allow a greater distance for stopping just in case you encounter an icy patch of road.

Take turns with extra caution. Slow your speed and avoid using your brakes too abruptly.

Beware of inexperienced drivers or other cars sliding that may hit you. Use extra caution when approaching slippery intersections.

Allow more time to reach your destination. Driving in snow often takes longer and may unnecessarily test your patience.

Prepare your car for driving in cold winter conditions. Make sure your battery is strong enough for cold starts, your wiper fluid is full and keep at least a half tank of gas in your car to help prevent the fuel lines from freezing.
Check the air pressure of your tires regularly. Cold temperatures can actually decrease the air pressure in your tires.

GM Plans Pontiac Fire Sale

Dec. 29, 2009
General Motors Co. is offering its dealers hefty incentives to move thousands of leftover vehicles from its discontinued Saturn and Pontiac brands. The unusual tactic could inflate the car maker's December sales and cut the cost to car buyers by as much as 46% off the sticker price.In what is equivalent to a year-end fire sale, GM sent letters to dealers Dec. 23 saying it would pay them $7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers.

Nissan Turning Over a New Leaf

Nov. 17, 2009
Soon after Carlos Ghosn took over as chief executive officer of Nissan Motor Corp., he took a gamble by building a factory in Mississippi to produce big pickup trucks and sport utility vehicles. Now, a decade later, he's steering in the opposite direction, ramping up production of small electric cars.Nissan CEO Carlos Ghosn and the auto maker's new vehicle, the Leaf.Mr. Ghosn appeared in Washington on Monday, along with FedEx Corp. Chairman Fred Smith and other CEOs banded together as the Electrification Coalition, to call on the government to adopt policies that would help put millions of all-electric or partially electric vehicles on the roads. By 2040, 75% of the driving done in the U.S. should be done using electric power instead of petroleum combustion, the group said.Mr. Ghosn, chief executive of both Nissan and its French alliance partner, Renault SA, says in an interview the companies will launch four electric vehicles globally, with three of them coming to the U.S., including the Nissan Leaf compact, a light commercial vehicle suitable for use by companies such as FedEx, and eventually an electric car to be marketed under the Infiniti luxury brand."Our forecast is that sales of electric vehicles will be 10% of the total market... by 2020," he says.