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Profit-Taking Pulls Oil Back From $103

NEW YORK -- Oil futures retreated from a new overnight record above $103 as the dollar gained strength and Turkish forces withdrew from northern Iraq, removing two of the reasons underpinning crude's dramatic 19 percent rise from earlier this month, according to the Associated Press.

But many analysts believe the declines may be temporary, and that oil is poised to rise above $103.76 a barrel. That's the price many believe to be oil's all-time high on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.

Posted by Peter C. T. Elsworth  at 12:52 PM to Crude oil market | Permalink | Comments 0

Backseat Driver: Detroit should bring its small cars and vans over from Europe

Europe is awash with small, fuel efficient cars and vans, many of which are powered by clean diesel engines – it’s even an option for the Ford Focus. Many carry American brand names and it’s about time Detroit shared the wealth with us over here.

Ford has a fabulous range of vehicles. Its Transit Connect, which is a funky little cargo van built in Turkey, was a big hit at the Chicago Auto Show, and it is expected to import its Fiesta model in the near future, although in sedan mode only.

Ford currently offers its Focus brand in only two models in the U.S. – the 2-door coupe and 4-door sedan. In Europe it continues to market its highly successful 5-door hatchback. And it has also introduced its New Ford Focus, a makeover that includes a nifty station wagon/hatchback.

General Motors, which operates in Europe under the Opel (Germany) and Vauxhall (Britain) brand names, also designs and builds a wide range of vehicles around the world. It is bringing over its Astra and Vectra models through its Saturn division, but why it does not bring over its successful Corsa subcompact beats me.

Chrysler markets its Dodge Caliber in Europe, but offers a turbo-diesel version, and its Dodge Sprinter van might be a candidate to come to these shores.

While gasoline prices in the United States remain well below European levels, with crude oil recently rolling over the $100 a barrel mark and gas prices possibly reaching $4 a gallon in the spring, the appetite for small, fuel efficient cars can only increase.

Posted by Peter C. T. Elsworth  at 12:31 PM to commentary | Permalink | Comments 0

Less Can Cost More, Says Consumer Reports

Sometimes a bargain isn’t. A car that may look inexpensive, up front, just might wind up costing you more in the long-run, warns Consumer Reports magazine, in its Annual April Auto Issue, reports thecarconnection.com

Once you add in factors like maintenance, fuel costs, insurance, interest and depreciation, the actual cost of ownership can be significantly different than what many car buyers would expect. The magazine notes that with its $17,500 sticker price, a Mitsubishi Lancer is a whopping $5,000 less than the smaller Mini Cooper — at least when you first drive it home. But over the typical, five-year ownership cycle, the equation looks quite a bit different. When you add in repairs and other factors, the Mitsubishi actually will cost about $3,000 more, Consumer Reports calculates.

Toyotas score quite well, according to the magazine. While the Highlander SUV is $3,000 more, initially, than a comparable Ford Explorer, the Japanese SUV will save an owner $6,500 over the long-run. And lower fuel costs are one of the main reasons why the Prius hybrid will save an owner $2,000, after five years, versus a Chevrolet Cobalt, even though the sticker price of the Chevy is $7,500 less.

But one big surprise comes from the luxury side of the Toyota line-up. Its Lexus brand has relatively high maintenance costs, so over that same, five-year cycle, an ES350 will rack up a full $2,300 more in repair costs than a Lincoln MKZ.

Posted by Peter C. T. Elsworth  at 11:44 AM to Sales | Permalink | Comments 0

The Best And Worst Certified Used Cars

Think about a used car and you might think junky, dirty and old. But another market is catching the attention of savvy buyers who want updated rides without paying new-car prices, according to forbes.com.

These certified used or certified "pre-owned" (CPO) vehicles have been inspected and refurbished by the manufacturer and are backed by extended warranties. The certified used car market isn't one that automakers can afford to ignore.

According to a recent J.D. Power and Associates study, sales of certified used cars have increased 46% since 2000. Auto experts estimate that 1.6 million certified used cars are sold annually, a number equivalent to 10% of new vehicle sales.

This rapid growth started when the segment emerged in the 1990s. Luxury automakers like Mercedes-Benz, BMW and Lexus, looking for ways to unload vehicles coming off lease programs, introduced the certified pre-owned programs as a way to attract the discerning buyer who wanted a luxury car but didn't want to shell out the big bucks.

Other luxury and non-luxury automakers who found themselves in similar situations began offering their versions of these programs.

Posted by Peter C. T. Elsworth  at 11:31 AM to Sales | Permalink | Comments 0

Consumer Reports: Honda again tops; Ford and GM improve

YONKERS, NY — Overall, the best cars sold in the U.S. are still made by Honda, according to the Automaker Report Cards published in Consumer Reports’ Annual Auto Issue on sale March 4. Honda also led the pack last year, the first time the country’s largest expert, independent, non-profit consumer product testing organization issued such information.

With an overall score of 78 out of 100 points, Honda was followed closely by Toyota (75) and Subaru (72). BMW, Mazda, Nissan, and Volkswagen tied at 71, after rounding. Only Honda and Subaru have earned the distinction of having all of the models tested make Consumer Reports’ Recommended list.

Honda is also the only automaker whose entire model lineup is currently recommended. Full details and rankings are available in the article “Who makes the best cars?” in the magazine and for online subscribers at www.ConsumerReports.org.

Honda earned the top score because it builds cars that are well-rounded, have excellent reliability and perform very well. But not all of Honda’s models lead their class. The new CR-V SUV can’t quite match the top-ranked Toyota RAV4. The Accord was edged out by the Nissan Altima, and the Honda Odyssey minivan scored slightly lower than the Toyota Sienna.

The overall score for each automaker is based on the average overall scores of its vehicles in Consumer Reports’ road tests and its average predicted-reliability score from Consumer Reports’ Annual Car Reliability Survey. Manufacturers received a report card only if five or more of its vehicles were tested.

Posted by Peter C. T. Elsworth  at 3:07 PM to Honda | Permalink | Comments 0

Ford Flex price tagged at $29,000

It’s one of the more highly anticipated crossovers of 2008 — and now, Ford’s Flex crossover apparently has a base price assigned to it, according to thecarconnection.com.

Automotive News reports that Ford will charge $28,995, including destination, for the base 2009 Ford Flex when it goes on sale in the summer. The weekly news reader says it got its information from a dealer printout.

According to the info, the Flex will be offered in three trim levels and in front- or all-wheel drive. The most expensive Flex Limited will top the pricing ladder at $37,255.

Posted by Peter C. T. Elsworth  at 9:27 AM to Ford | Permalink | Comments 0

Ford recalls 470,000 Mustangs to update air bag software

DETROIT — Ford Motor (F) said Wednesday it is recalling 470,000 Ford Mustangs from the 2005-2008 model years to recalibrate how forcefully the air bag deploys on the front passenger side of the car, according to the Associated Press.

Internal testing showed the air bag could injure a small, unbelted passenger, said Ford spokesman Wesley Sherwood. The recall was posted on the website of the National Highway Traffic Safety Administration.

Sherwood said the fix would address "a very rare scenario," and there were no reports of injuries or accidents tied to the recall.

Posted by Peter C. T. Elsworth  at 9:23 AM to Ford | Permalink | Comments 0

Backseat Driver: Love for first car is supreme

Love at first sight. A 1955 Citroen Deux Chevaux (2CV)

After I graduated high school in England in 1968, I went to study in France for a year. And I fell in love … with the Citroen Deux Chevaux.

Described variously as “a tin can on springs,” or the “tin snail,” the small car was an iconic feature of post-WWII France along with Gauloise cigarettes and Bridget Bardot.

My first car was a 1955 model that I bought from a Dutch student whose family had a summer house outside St. Tropez. It had a dipstick in the gas tank and window wipers that were geared to the motor and supplemented by a hand knob when the car was stationary.

It was rudimentary and romantic – as are all things at the age of 18 – and I have an affection for the 2CV that I will take to my grave.

And it seems I am not alone. A recent survey of 2,000 people carried out by the British International Auto Show found that most remembered their first car better than they remembered their first kiss, first love or 18th birthday!

Certainly, a number of the stories I write are about people who have restored their old car or their father’s/grandfather’s car, or a car that is the same model as their first car. Others just have a car they dote on, or love their work in a car-related business.

That’s why I often say to people that while I may be the auto writer here at The Providence Journal, what I really write are love stories.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:56 AM to commentary | Permalink | Comments 0

Nissan GT-R Waiting Game About to End

Hardly a model year goes by without the debut of at least one new car that sets off a frenzied run on dealers’ showrooms, according to The New York Times.

In the last decade, introductions for vehicles as disparate as the Volkswagen New Beetle, Chrysler PT Cruiser, Mini Cooper and Ford GT each resulted in months-long waiting lists, accompanied by gigabytes of Internet speculation.

So far in 2008 that must-have car seems to be the Nissan GT-R, a 480-horsepower sports coupe with all-wheel drive and a full-time cheering section. It will be available in the United States in June, starting around $70,000. Nissan plans to import 2,500 GT-Rs this year and about 1,500 annually in the future.

Typically, the cars that set off these stampedes carry names steeped in history or, at the least, a design that gestures to a beloved icon of the past. Why, then, is a car whose predecessors Nissan has never sold in the United States proving such a phenomenon?

The 2009 GT-R may be the first car whose reputation was forged primarily in the virtual world, at least in the minds of young American enthusiasts. The GT-R is a mainstay of leading video games, notably the Gran Turismo series that Sony PlayStation fans devote hours to, and was a featured star of a promotion that linked the introduction of the actual GT-R at the 2007 Tokyo auto show with the release of a special prologue edition of Gran Turismo 5.

Posted by Peter C. T. Elsworth  at 10:29 AM to Nissan | Permalink | Comments 0

Gas Prices Soar, Posing a Threat to Family Budget

Gasoline prices, which for months lagged behind the big run-up in the price of oil, are suddenly rising quickly, with some experts saying they could approach $4 a gallon by spring, according to The New York Times.

The increases could not come at a worse time for the economy. With growth slowing, energy increases that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could worsen the nation’s economic woes, piling a fresh energy shock on top of the turmoil in credit and housing.

“The effect of high oil prices today could be the difference between having a recession and not having a recession,” said Kenneth S. Rogoff, a Harvard economist.

The depth of the nation’s economic problems became clearer Tuesday with the release of figures showing that prices at the producer level rose 1 percent in January from December, driven in large measure by energy costs.

Compared with a year ago, prices were up 7.4 percent, the worst producer price inflation in the United States since 1981.

Posted by Peter C. T. Elsworth  at 10:10 AM to Gas prices | Permalink | Comments 0

Oil Briefly Tops $102 a Barrel

VIENNA, Austria -- Oil prices briefly rose to a new intraday high above $102 a barrel Wednesday as a slide in the U.S. dollar prompted investors to pump more money into energy futures as a hedge against inflation, according to the Associated Press.

Light, sweet crude for April delivery on the New York Mercantile Exchange spiked as high as $102.08 a barrel in electronic trading before slipping back. It was up 13 cents at $100.99 a barrel by afternoon in Europe.

Posted by Peter C. T. Elsworth  at 10:08 AM to Crude oil market | Permalink | Comments 0

Ford Is Pushing Buyouts to Workers

WOODHAVEN, Mich. — Ford is applying the hard sell these days — piling on incentives, doling out marketing DVDs and brochures, and making offers it hopes are too good to pass up, according to The New York Times.

But Ford’s big new push is not to sell cars. Instead, it is trying to sign up thousands of workers to take buyouts, partly by convincing them that their brightest future lies outside the company that long offered middle-class wages for blue-collar jobs.

So, Ford is pitching a buffet of buyout packages that are easily among the richest ever offered to factory workers, including one-time cash payments of $140,000 or college tuition plans for an entire family.

The automaker is also putting on job fairs in its plants and mailing each of its 54,000 hourly workers a feature-length DVD, titled “Connecting With Your Future,” that extols the promise of new careers beyond the assembly line.

Posted by Peter C. T. Elsworth  at 1:33 PM to Ford | Permalink | Comments 0

Nissan Murano Gets Top Rating in SUV Crash Tests

AP photo / Insurance Institute for Highway Safety

DETROIT -- The 2009 Nissan Murano was the best performer in new crash tests of midsize sport utility vehicles, while the Hummer H3 had one of the poorest showings, according to results released Tuesday by the Insurance Institute for Highway Safety, according to the Associated Press.

The institute, which is funded by the insurance industry, said the redesigned Murano was the only vehicle among the nine tested to get the highest rating in front, side and rear crash tests.

It praised Nissan Motor Co. for making electronic stability control standard on the 2009 Murano. The system, which helps prevent swerving, was an option on previous models.

Posted by Peter C. T. Elsworth  at 1:32 PM to Safety | Permalink | Comments 0

Tata to announce purchase of Jaguar and Land Rover next week.

Tata Motors will announce its purchase of Jaguar Land Rover on March 5 or 6, according to Automotive News.

The dates have been agreed between Tata and Ford, which is selling the two luxury brands, following talks with trade union leaders last week.

Roger Maddison, national officer of Unite, the largest union in the UK auto industry, told Automotive News Europe Tata had agreed to meet guarantees sought by workers' leaders.
He said, " Everything seems fine as far as we are concerned; it's just the lawyers working on it now."

Union leaders spoke with Ford and Tata to resolve final details before the drawing up of a memorandum of understanding for the sale.

In earlier talks with the two companies, unions had been seeking assurances that Tata would continue to source engines, stampings and other

Posted by Peter C. T. Elsworth  at 3:04 PM to Ford , India | Permalink | Comments 0

Gasoline, diesel prices leap toward records

The price of diesel fuel hit a record Friday — and gasoline prices are leaping so fast they could set records this week, according to USA Today.

Rocketing retail fuel prices are the result of the week's $100-a-barrel crude oil prices and tight supplies as refineries switch to producing costlier summer-blend, clean-air gasoline that's required by federal regulations.

The nationwide average price for diesel Friday was a record $3.541 per gallon, according to data collected daily at more than 85,000 fuel stations by the Oil Price Information Service (OPIS) and published by travel organization AAA.

The average for regular-grade gasoline Friday was $3.115, up 2.9 cents overnight and 6.2 cents in two days.

Posted by Peter C. T. Elsworth  at 9:59 AM to Gas prices | Permalink | Comments 0