Category Archives: Automotive News

Auto Shortage Problems Worsen

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Disruption in the auto industry because of the earthquake and tsunami in Japan last month have been minimal so far, but the continued aftershocks and impending nuclear meltdown causing roaming power shortages is starting to take it’s toll. Shortages of vehicles built in Japan are starting to be noticed around the world, and the lack of parts is making it difficult for other auto manufacturers to run their assembly lines. Auto analysts predict that Japans auto industry may not hit it’s full manufacturing potential until late this summer. This uncertainly has suppliers, automakers and dealers scrambling.

Car buyers are already having difficulty finding models they want in certain colors, and auto plant workers are expecting they will soon be told to stay home. The complexity of the auto supply chain shows just how vulnerable the industry can be. With over 3,000 parts going into a single car or truck, one missing part means the vehicle cannot be built. Customers not only notice auto shortages, but rising prices, especially on fuel efficient hybrids as gas prices rise.

IHS Automotive predicts that one-third of daily global automotive production will be cut because of supply chain disruptions. That means about 5 million vehicles worldwide won’t be built, out of the 72 million vehicles planned for production in 2011. In the U.S., some car manufacturers are considering shifting part manufacturing operations to local companies, but stringent safety requirements and exacting high tech specifications will limit a company’s flexibility. For now car executives are allocating certain parts to build the more popular and profitable vehicles.

No More State Cars For California Lawmakers

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Scheduled to take effect in December, California lawmakers will no longer be provided with a state purchased car, but instead will be given a monthly transportation allowance of $300 a month. According to the California Citizens Compensation Commission, the group responsible for setting state officials’ salaries and benefits, this change will cut the lawmakers’ transportation costs in half, saving the state of California over $2.3 million over the next five years.

The salary for California legislators is one of the highest in the nation even after salaries and benefits were cut in 2009. The panel decided not to cut lawmakers’ salaries again but said it may revisit the issue if Governor Jerry Brown cuts paychecks for other state workers to help reduce the budget deficit.

Senate leader Darrell Steinberg (D-Sacramento) said the move makes it harder for lawmakers to travel to and in their districts to connect with constituents. He feels the arguments for cutting legislative salaries and benefits have gone from being balanced, rational and a reflection of our economic times to simply trying to make a political point.

California Automobile Rental Recall Bill

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California lawmakers are one step closer to passing a bill that will force automobile rental companies to immediately pull recalled vehicles from their fleet until the problem has been fixed. Carol Houck has been fighting for this bill since 2004 when her two daughters died in a rented PT Cruiser accident caused by a recall. Assemblyman Bill Monning, who presented the bill said, “Consumers need to know that when they rent these cars, that the cars are safe. Auto dealers can’t sell or lease cars that have been recalled, and this bill would close the loophole that allows rental car companies to continue doing so.”

Rental company representatives argue that 90 percent of vehicles are repaired withing 30 days of receiving a recall notice, making the bill unnecessary. They feel that the bill targets their industry unfairly and ignores other vehicle fleets, like taxi, limousine and shuttle bus services, private companies and governments.

Traffic Fatalities Down But Education Still Needed

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According to the U.S. Department of Transportation (DOT) statistics, traffic fatalities for 2010 have hit an all time low despite the increase in amount of miles driven by Americans. This three percent drop from 2009 reflects a steady declining trend since the middle of the last decade. The greatest drop in fatalities occurred in Washington State, Oregon, Idaho, Montana and Alaska, where they fell by 12 percent, with Arizona, California and Hawaii having a decline of almost 11 percent.

Transportation officials say that the 2009 statistics may have been affected by the downturn of the economy, and that more unemployed youth results in less higher risk drivers on the road. The 2010 statistics, however, show that even though there is an increase in traffic on the roads, fatalities continue to decline. This decrease can be attributed to increased seat belt use, changes in vehicle safety systems, and campaigns addressing drunk driving and distracted drivers. According to U.S. Secretary of Transportation, Ray LaHood, “Even though we have had good results for this year, they are not good enough. Our goal is to reduce deaths to zero if that is at all possible.” The next step is to reduce fatalities by educating drivers of the latest threats on the road. Distractions while driving, such as talking on the phone and texting have proven to be deadly and can be avoided by educating drivers..

Part Shortages Slowing Down Auto Production

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As automobile manufacturers and part suppliers continue to experience delays in reopening factories in Japan after last weeks earthquake and tsunami, part shortages are starting to slow automobile production world wide. Toyota, Lexus, Honda, and Mazda have extended shutdowns in most of their Japanese factories, and the ones that have been reopened are not working at full capacity. According to analysts, auto makers will feel the worst of the shortages by early may and as many as five million vehicles will end up not being built because of it. It is estimated that about 13% of the world’s automotive production is out of commission.

The components most affected include semi-conductors, integrated circuits, sensors and LCD displays, but it won’t be long before shortages will also be seen in resins and synthetic rubber, power train parts, specialty materials such as silicon and certain types of glass and metals. General Motors announced that they will be suspending production of the Chevrolet Colorado and GMC Canyon pickup trucks in their Louisiana factory and plants near Buffalo, New York that makes engines for those trucks. Other automobile manufacturers, are expected to suspend building in some of their U.S. factories as parts continue to become more scarce.

Easier Credit Boosts Auto Sales

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easier auto loans boosts car salesThe headlines in the news would suggest the automobile industry is back. Sales of new automobiles rose about eleven percent in 2010, and the first two month of 2011 are off to an even stronger start. Some say it is due to an improvement in the economy while others say that the increase in gas prices have prompted consumers to purchase more efficient automobiles. Whatever it is, those who are in the market for a new automobile will find it financially easier as well.

The increase of credit in almost every aspect of the economy is an important sign that the American economy is returning to health. Wall street loan packaging has allowed automakers to open up their wallets and start to give consumers loans more aggressively. Even car buyers with bad credit histories are getting financing, some without having to make a down payment. While nobody is suggesting that we are back to the days of the housing boom, the increase in credit is a sign that the American economy is gaining some health from the times where auto makers looked to the government for aid.

Toyo And Nitto Brand Tires Recalled

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recall out of spec rubber for tiresToyo Tire Holdings of America has announced a safety recall for Toyo and Nitto brand tires produced using out of spec rubber. The tires were manufactured at the Toyo Tire & Rubber Co. plant in Sendai, Japan during a two week period in September of last year, and distributed to retailers across the United Stated. Because of the out of spec rubber, sections of the tread may become detached potentially causing loss of vehicle control. The recall will be issued to almost 5,000 tires but only about 600 tires are suspect of having the problem. The tires being recalled are:

  • Toyo Versado CUV
  • Toyo Versado LX II
  • Toyo Open Country A/T
  • Toyo Tourevo LS II
  • Nitto Terra Grapplertires

The tires can be identified by the “Made in Japan” stamp and the numbers “3810” or “3910” at the end of the Department of Transportation (DOT) serial number, both located on the tire sidewall. Tires with the “Made in U.S.A” stamp on the sidewall are not being recalled.

A Consumer Relations staff is available at Toyo Tires and Nitto to answer questions such as how to identify and replace recalled tires. Consumers should call the hotline for the tire brand that they own: Toyo Tire U.S.A. Corp.: 800-442-8696 or Nitto Tire U.S.A. Inc.: 888-529-8200 . Consumers can also visit the web site of the tire brand that they own: www.toyotires.com or www.nittotire.com.

U.S. Automobile Sales Strong In November

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You don’t hear much good news coming out of the auto industry lately, but November auto sales are reported to have hit a promising turning point as consumers bought more cars and trucks. Novembers new vehicle sales have been the highest in two years, with the exception of a brief period in 2009 when government rebates encouraged consumers to purchase vehicles that they couldn’t afford. The 17% surge is giving automakers confidence that the industry is on track for a strong year end finish.

Ford, General Motors, Chrysler, Nissan, Hyundai have all reported double-digit increases. Hyundai had the biggest increase, up 45 percent from the same month last year, and Toyota, which has been hurt by a string of safety recalls, had a 3% sales drop.

Industry analysts suggest the solid November sales numbers show that consumers who have kept their jobs through the economic downturn are now feeling confident enough to spend money and replace older vehicles. Incentives on lease deals and rebates also helped push up sales.