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Cash For Clunkers Good Business For The Repo Man

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Cash for Clunkers seemed like a good idea at the time. The influx of new car buyers gave the auto companies a glimmer of hope for the upcoming 2010 auto sales year and a chance to get rid of their stagnate stock. Unfortunately, it also gave people who could not afford a new car the chance to buy a new car. One week into the program all the funding had been spent which prompted Congress to authorize an extra two billion dollars on top of the original one billion.

Consumers who purchased a vehicle under the government’s Cash For Clunkers program are now struggling to make the loan payments, with some cars getting repossessed. Those who used the clunkers program had a repo rate over double those who didn’t use the government incentives. Almost 1 in 5 clunkers program participants who took part in a survey this month said they regret buying a new vehicle under the program. Faced with a new monthly payments many of the clunkers program users admit they didn’t think past the new car smell.

Brake Failure Recall For Chrysler

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During a routine quality inspection, automaker Chrysler, noticed that some vehicles had an improperly formed brake booster push rod retaining clip or no clip at all. Even though there have been no accidents or consumer complaints related to the problem, Chrysler feels there is potential for the push rod to separate from the brake pedal assembly resulting in loss of brakes. As a result, they will be recalling 2010 models of the Chrysler Sebring, Dodge Avenger, Dodge Nitro, Jeep Commander, Jeep Grand Cherokee, Jeep Liberty and 2009 and 2010 models of the Dodge Ram pickup. Owners will be notified this month if their vehicles are affected, and Chrysler will replace the faulty or missing clips free of charge.

Honda Ridgeline Recalled For Electrical Fire Under Dash

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After six reported fires under the dash board of the 2006-2007 Honda Ridgeline and an investigation by the National Highway Traffic Safety Administration (NHTSA), it was determined that there was no defect with the H.V.A.C. fan motor connector.

Honda decided to investigate the problem by themselves, based on consumer complaints, and found that if the electrical harness was kicked by accident, it could short circuit and start a fire. Honda concluded that a short circuit would probably “self-extinguish,” but that a fire was possible, and it decided to recall.

The recall will affect 2006-2007 Ridgeline vehicles manufactured between January 17, 2005 and June 7, 2006. If you own one of these, your local Honda dealer will inspect the wiring, replace it if necessary, and fit a protective cover for the wiring, free of charge.

Auto Industry Aids Haiti Victims

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Even with all the turmoil and uncertainty in today’s auto industry, auto makers and a large financial institution banded together in an effort to send funds to the earthquake relief efforts in Haiti.

GM gave $100,000 and provided direct online access to the red cross so its employees could make personal contributions as well. “As one of the world’s largest car companies, doing our part to contribute aid to Haiti is not about business but our obligation to our fellow man,” explained GM chairman and chief executive officer Ed Whitacre. “There is remarkable compassion among GM employees, and I know that same spirit will make a difference in helping the Haiti relief effort.”

Toyota Motor North America Inc. is donating $500,000 to the American Red Cross, Save the Children and Doctors Without Borders. “Save the Children and Doctors Without Borders have been working in Haiti for a long time”, says Michael Rouse, vice president of philanthropy and community affairs at Toyota Motor Sales U.S.A. Inc.

In addition, Toyota North America, Toyota Motor Sales, Toyota Financial Services and Toyota Motor Engineering & Manufacturing North America will match employee contributions and provide four-wheel-drive Tundras and Tacomas to the Red Cross.

Nissan donated $30,000 in cash to the Red Cross and plans to provide more than $100,000 for the Haitian earthquake relief effort. The automaker will match the first $25,000 in employee donations, for a combined contribution of up to $50,000. They will also give $52,000 to Habitat for Humanity International to construct 13 houses in Haiti as rebuilding programs get under way.

Ford’s Ford Fund & Community Services said it will match all individual employee contributions up to $50,000, which will be donated to the American Red Cross. It also is working with Behrmann Motors, a Ford dealership in Port-au-Prince, Haiti, to identify critical needs on the ground.

Eaton, an engine parts supplier, pledged $100,000 to the Red Cross fund. Eaton also will match employees’ donations to the United Way Worldwide Disaster Fund that supports long-term recovery efforts such as financial and health-related challenges.

Bank of America executives donated $1 million with half of that sum going to the American Red Cross. The remaining $500,000 will go toward the long-term recovery efforts to restore basic medical services and fund the rebuilding of homes, schools and other structures critical to the affected communities. Bank of America also plans to match donations made by its employees.

California The First To See The Volt

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General Motors Co. Vice Chairman Bob Lutz announced that when their Chevrolet Volt rolls off the assembly line, California will be the firsts market to see them in the show rooms. GM will provide 100 Volts and 500 charging stations for California utility companies in early 2011 for road testing. California was chosen as the first “test site”, because of it’s tax credit offerings, and infrastructure to accommodate electric cars.

The volt will be designed to comply with all overseas regulations in the hope of making it an international car. “This is uncharted territory for us,” Lutz said, but we expect to sell between 100,000 to 150,000 plug-in hybrids each year.

Ford Shines At The Detroit Auto Show

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Based on the Detroit Auto Show, the automobile industry may be undergoing a huge transformation. There are dozens of hybrid vehicles and countless pure battery-powered cars. The market for energy alternative cars remains weak, but if strict emissions standards are imposed, demands could soar.

Ford Motor Company had a very strong showing, winning North American Car of the Year and North American Truck of the Year Awards. The car award went to the Ford Fusion Hybrid and in the truck category, Ford’s Transit Connect van. This is the sixth win in the truck category for Ford, the most of any automaker.

The awards recognize the vehicles that are “benchmarks” in their category based on factors including innovation, design, safety, handling, driver satisfaction and value for the dollar. Vehicles must be new or “substantially changed” to be considered.

Some other memorable displays are: General Motors with their new Chevy Volt, Mercedes B Class pure hydrogen fuel cell car, Audis A8 which won the eyes on design and Chrysler’s Gem which has sold more than 40,000 since 1999 and reportedly owns about 70 percent of the electric vehicle market.

Saab-To Sell Or Not To Sell!

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As General Motors Co. continues to close down the Saab division of their company, starting with replacing their entire board, they are still putting pressure on bidders to make better offers.

This comes after negotiations between G.M. and the high-end Swedish automaker Koenigsegg failed. Beijing Automotive was one of Koenigsegg’s backers in the earlier Saab procurement plan, potentially contributing $200 million to $300 million toward the deal. Saab’s engineering expertise has always been admired by the Chinese automaker. Saab did come to an agreement with Beijing Automotive Industry Holdings to sell the rights to powertrain and tooling technology for some of their older models. Saab will also help Beijing Auto build its own car brands, using the Saab technology.

GM executives said on Monday that none of the bids received are meeting the financial requirement for a deal and said they were moving ahead with plans to close Saab. Saab spokes woman Gunilla Gustavs added today: “There is still the possibility that the negotiations on the bids will result in a decision to sell Saab in its entirety.” Luxembourg based investment firm Genii Capital and Dutch luxury carmaker Spyker Cars and a group of Swedish investors are expected to make better offers for Saab.

Desktop On The Dashboard

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Even after all the talk about distracted drivers and products developed to make less distractions, Intel and Google are hoping to bring your desktop to the dashboard. At the recent Consumer Electronics Show in Las Vegas, they displayed 10 inch screens above the gearshift displaying high definition videos, 3-D maps and web pages. These “infotainment systems” will hit the market this year and are likely to become standard equipment in a wide range of auto’s before long. They prevent drivers from watching video and using some other functions while the car is moving, but they can still pull up content as varied as restaurant reviews and the covers of music albums with the tap of a finger.

Nicholas A. Ashford, a professor of technology and policy at the Massachusetts Institute of Technology says “This is irresponsible at best and pernicious at worst. Unfortunately and sadly, it is a continuation of the pursuit of profit over safety — for both drivers and pedestrians.” The technology and car companies say that safety remains a priority.