August 11, 2010

Early U.S. Tests Find No Toyota Flaw in Electronics
The government's investigation into complaints of sudden acceleration of Toyota vehicles has found no evidence of flawed electronics in 58 of the vehicles that crashed, federal regulators said Tuesday. An examination of the crashes also found only one instance in which an accelerator pedal became trapped under a floor mat, and none in which a pedal became stuck or sprang back too slowly, according to a preliminary report to Congress. According to the New York Times, though federal officials said the investigation was continuing and they had not yet drawn conclusions, the raw findings support Toyota's contention that electronics were not at fault and that many of the reports of sudden acceleration might actually have been instances of human error. In the report to Congress, the safety agency said that in 35 of the 58 accidents, the data recorder did not indicate that the brakes had been applied - suggesting the possibility that the drivers had mistakenly floored the gas pedal instead of the brake. "Having conducted more than 4,000 on-site vehicle inspections, in no case have we found electronic throttle controls to be a cause of unintended acceleration," Toyota said in a statement. "Toyota is committed to listening more attentively to our customers and continuing to investigate unintended acceleration concerns." Click here for the latest on a government investigation into claims of sudden acceleration in some Toyota vehicles.

Hyundai Cracks Kelley Blue Book's Top 5 Most-Considered Brands
Hyundai has moved into the top five most-considered brands by new car shoppers, according to Kelley Blue Book figures released on Tuesday. Automotive News reports that Hyundai cracked the top five for the first time in Kelley Blue Book's Market Intelligence Brand Watch study for the second quarter of 2010. Ford was the most-considered brand, garnering 29 percent of total consideration by more than 3,000 new-car shoppers polled by KBB from April through mid-June. Toyota was the second most-considered brand at 22 percent, followed by Chevrolet with 21 percent, Honda with 20 percent, and Hyundai with 19 percent. Click here to check out Kelley Blue Book's press release on its Brand Watch study. James Bell, executive market analyst for Kelley Blue Book, said in a statement that the second-quarter findings show how "the deck is being reshuffled in the automotive marketplace." He went on to add that "Ford continues its upward trajectory, and Hyundai is truly on a roll. Both brands prove that when you make dramatic, exciting and affordable products that appeal to the new-car shopping masses, consumer perception begins to change and subsequently, sales will follow." Click here for more on Hyundai's catapult into position as one of the most considered car brands.

New Cars Become Slightly Less Affordable, Index Shows
If the average family did nothing but work to buy a new car - didn't buy groceries, pay the cable TV bill, or anything else - it would take 23.6 weeks to own one free and clear. The findings were released by Comerica Bank, which keeps track of auto affordability as an index. According to USA Today, in the second quarter, the average $27,950 price of a new car rose $200 from the same quarter a year ago. In the good-news column, the interest rate on the average car loan was 4.1 percent, down 0.2 percent from the previous quarter. "Affordability was flat in the second quarter as rising expenditures on the new cars were offset by lower interest rates," says Dana Johnson, chief economist for the bank. "Although the national recovery slowed in the second quarter, consumers were still willing to pay more for new vehicles." The index shows that the average family could have paid off that new car in as little as 22 weeks during last year's recession. Way back in 1997, the average was more than 30 weeks. No food. No lights. No Friday night dates. You must be saving for a new car. Click here to read the entire report at USA Today on the costs of buying - and paying off - a new car in today's economy.

VW May Add Small Car or SUV to U.S. Plant
Volkswagen may build a small car or an SUV at its new U.S. plant in Tennessee, in addition to the mid-sized sedan that goes into production there next year. According to Autoweek, Volkswagen is considering options for the plant's second product even before it has begun building its first. Tom Loafman, the company's purchasing director, said last week at the CAR Management Briefing Seminars that the plant's large Chattanooga site is in the running for a new engine plant Volkswagen hopes to build in North America. The engine plant also could go to a separate greenfield site or to VW's production complex in Puebla, Mexico, he said. Volkswagen is counting on its $1 billion Chattanooga venture to bring down the costs of its U.S. products and give it capacity to reach 800,000 VW brand sales in the United States by 2018. Last year it sold 213,454 VW brand vehicles. Volkswagen expects the new mid-sized sedan to compete more directly against high-volume family sedans such as the Honda Accord and Nissan Altima. VW's strategy calls for Chattanooga to turn out cars at a much lower cost than mid-sized Passats imported from Europe. Click here for more from Autoweek on Volkswagen's plans for its new Tennessee plant.

The 18 Easiest Cars to Bargain For
In the mood to drive something luxurious and European? Good news: It won't cost you as much as you think. "To say sticker price is misleading is a mild way to put it," says James Bell, executive market analyst for Kelley Blue Book. "The profit margin on the larger luxury vehicles will generally be much better than you'll find on a Toyota Corolla. A lot of those vehicles have that extra flexibility baked into it." Forbes has compiled its list of the vehicles that are haggling-friendly. Using information provided by Kelley Blue Book, Forbes determined which models sold for significantly less than MSRP. Where vehicles with different trim levels had differing MSRPs, the publication evaluated only the model with the biggest price cut. The vehicles with the largest difference between their selling prices and listed MSRPs made the list. Click here to see Forbes' findings. Forbes stresses that the most important thing to do before buying is to research a vehicle before you hit the dealership. "If somebody comes in and starts trying to negotiate down from MSRP, well that's the dealer's dream," Bell says. Click here to read Forbes' entire report on the easiest cars to bargain for.

Around the Web
Her and His Review: 2011 Kia Sorento EX V-6 [Women-Drivers.com]
Video: First Look at the 2011 Mazda2 [Consumer Reports Cars Blog]
"The Love Scrub" [YouTube]
2012 Honda Civic Spy Video [Edmunds Inside Line]