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Hershey honors Dale Earnhardt Foundation

Hershey Company has debuted a series of collectible candy bars honoring racing legend Dale Earnhardt and given fans the opportunity to personally join a permanent tribute to “The Intimidator” while raising funds for the Dale Earnhardt Foundation.

By logging on to www.hersheys.com/dale, fans can upload a photo for inclusion in a picture mosaic – a replica of which will be unveiled on April 29, during Dale Earnhardt Day in Mooresville, N.C. Already, nearly 1,000 fans have posted their name, photo and/or message to the site. Fans also can make a donation to The Dale Earnhardt Foundation.

Dale Earnhardt fans have been joined by actress Carmen Electra and Dale Earnhardt Inc. drivers Mark Martin and Martin Truex Jr., who recently posted their images and messages to the site

Available in four varieties, including two Hershey’s Milk Chocolate Bar designs, one Hershey’s Milk Chocolate with Almonds Bar design and one Kit Kat Wafer Bar design, the specially moulded Collector Edition Dale Earnhardt bars feature a distinctive on-bar design.

The designs include three individual portraits spanning Earnhardt’s distinguished career and one image of the Richard Childress Racing #3 GM Goodwrench car that is most synonymous with Earnhardt’s nickname, “The Intimidator.”

The Dale Earnhardt Foundation sponsors charitable programs that focus on education, children and environment/wildlife preservation.

For more information, go to: www.thedaleearnhardtfoundation.org.

Posted by Peter C. T. Elsworth  at 3:17 PM to Racing | Permalink | Comments 0

VW looks to the past to advertise new models

Model Heidi Klum "guests" on a talk show hosted by Max, the star character of VW's new ads.

NEW YORK — Herbie the Love Bug rides again … sort of.

Volkswagen, which has a goal of tripling U.S. sales to about 1 million vehicles by 2018, is rolling out a classic Beetle as the brand's face and voice in a quirky TV, Web and print ad campaign that starts Monday in print and will be on TV starting Saturday, according to USA Today.

The campaign's star is "Max," a pristinely restored 1964 black Bug.

The stepped-up brand advertising precedes Volkswagen's introduction this year of several new vehicles, including the Tiguan crossover SUV, Routan minivan, Passat CC, clean diesel Jetta TDI and Jetta SportWagen. VW would not disclose the ad budget.

"We're reintroducing Volkswagen to the world by using a lovable icon that everyone will know and relate to," says Tim Ellis, VW's vice president of marketing. "Max will be integrated into everything we do and will be the connective tissue as we launch new vehicles."

Posted by Peter C. T. Elsworth  at 12:39 PM to VW | Permalink | Comments 0

Smoking tires take out Bob Tasca III at NHRA Spring Nationals

HOUSTON – Bob Tasca III and the Motorcraft/Quick Lane Shelby Mustang team hadn’t smoked the tires in any of the four qualifying runs for the NHRA Spring Nationals, but that is exactly what happened on Sunday to knock them out in the first round of eliminations at Houston Raceway Park, according to his publicist Alexis Kinch

“We didn’t do that all weekend; there’s no reason to do it first round,” said a frustrated Tasca. “I just don’t know. The crew chiefs will go through the data and look at it and we’ll test here on Monday. This is very disappointing because we had a very good running racecar all weekend.”

Tasca faced Tony Bartone in the first round of competition, and Bartone had issues of his own with a loss of traction on the track. Tasca pedaled his Shelby Mustang, but his 7.767 ET, 191.87 mph run wasn’t good enough to beat Bartone’s 6.327 ET, 261.88 mph pass.

“I was pedaling it and trying to get it to recover, but it just kept smoking the tires,” said Tasca. “Once it gets that upset that early, it’s hard to recover it. That’s the frustrating part about this sport. It’s so competitive and so difficult and 1,000 things have to go right and only one needs to go wrong to end your day. If Bartone had ran a 4.84 ET, I probably wouldn’t feel so bad, but he had a six second run and unfortunately, we didn’t have enough to make it to the second round.”

­­Tasca and the Motorcraft/Quick Lane Shelby Mustang team will next compete at the SummitRacing.com NHRA Nationals April 10-13 in Las Vegas for the fifth race the NHRA POWERade Drag Racing Series season.

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

Are You a Good Driver? Here’s How to Find Out

This DriveFit test measures the ability to estimate speed.

Could a video game make you a better driver? More important, could computer software prevent teenagers from making fatal mistakes or even weed out older drivers whose debilities make them crash-prone?

While no one is suggesting that games like Grand Theft Auto will help junior make safer left-hand turns, there are researchers who believe that specially designed cognitive assessment software can train neophytes and aging drivers, according to The New York Times.

Much as games like Brain Age for the Nintendo DS are intended to improve mental acuity, the cognitive software uses bouncing balls and visual memory tests to gauge driving skills.

Posted by Peter C. T. Elsworth  at 10:06 AM to Safety | Permalink | Comments 0

Making It Safer to Back Up

After years of lobbying by child safety advocates, legislation to make it safer to back up the family minivan was signed into law last month, according to The New York Times.

Named after a Long Island two-year-old who was backed over and killed by his father in 2002, the Cameron Gulbransen Kids Transportation Safety Act of 2007 mandates that the Department of Transportation establish rear visibility performance standards for cars, S.U.V.’s and minivans within about three years.

Kids and Cars, a nonprofit group that pushed for the law, estimated that about two children a week were killed by vehicles backing up. The reason is obvious: most drivers cannot see small children directly behind their vehicles.

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

High-tech gear disables car if borrower misses payment

MURRIETA, Calif. — When the light starts to flash, you had better have the cash, according to USA Today.

That's the reality for millions of subprime borrowers whose used car purchase is contingent upon having an unusual option: a little box mounted underneath the dashboard that forces them to make their payments on time.

A light on the plastic box flashes when a payment is due. If the payment isn't made and the resulting code punched in to reset the box, the vehicle won't start. The next step is a visit from the repo man.

Posted by Peter C. T. Elsworth  at 9:56 AM to Technology | Permalink | Comments 0

California Lowers Auto Emissions Rule

SACRAMENTO, Calif. -- California regulators have drastically cut the number of zero-emission vehicles required to be sold in the state by the year 2014, a decision that frustrated environmentalists but came as a relief to auto manufacturers, according to the Associated Press.
The rules adopted Thursday put the number of electric and hydrogen fuel-cell vehicles that automakers sell in California at 7,500 by 2014 - a 70 percent reduction from the 2003 target.

Posted by Peter C. T. Elsworth  at 2:55 PM to Alternative fuels | Permalink | Comments 0

Backseat Driver: Not a great week for Detroit’s Big Three

Chrysler, which has been scrambling to organize itself after being taken over by private Cerberus Management last year, lost a senior executive this week in a move that seems to reflect dissent at the top levels. The departure of engineering vice president Mike Donoughe was seen as a loss, according to thecarconnection.com.

In addition, the minivan market, which has long been Chrysler’s bread and butter, has fallen off, with sales down by double digits. All this against the backdrop of Consumer Reports’ poor ranking of Chysler in its annual automotive survey earlier this year.

Meanwhile, Ford finalized the sale of its Jaguar and Land Rover divisions to Tata Motors of India for $2.3 billion. But that included an agreement by Ford to inject $600 million into the two divisions’ pension funds, meaning Ford actually nets $1.7 billion.

This against the $2.5 billion Ford paid for Jaguar in 1989 and the $2.7 billion it paid for Land Rover in 2000, to say nothing of the billions it has spend on the marques since then, especially on Jaguar.

Finally, the five-week UAW strike at American Axle & Manufacturing might halt production on General Motors’s Chevy Cobalt and Pontiac G5 production lines in Lordstown, Ohio, according to Automotive News. The strike has already stopped GM’s light-truck production.

Silver lining? The weak dollar continues to play in Detroit’s favor by keeping prices of imports high.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 2:52 PM to commentary | Permalink | Comments 0

NYT Profile of GM's President and CEO

DETROIT — If General Motors were to design a president and chief operating officer from scratch, the new model would probably look a lot like Frederick A. Henderson, according to The New York Times.

Born in Detroit and the son of a sales manager in G.M.’s Buick division, Mr. Henderson rose through the automaker’s finance ranks and parts division to head its operations in Latin America, then Asia and Europe.

When G.M. appeared headed for bankruptcy in early 2006, he was tapped as chief financial officer, and played a major role in shaping G.M.’s North American turnaround plan and negotiating a contract with the United Automobile Workers.

Now Mr. Henderson, who is known as Fritz, is charged with accelerating G.M.’s growth around the world while steering its comeback effort at home.

Posted by Peter C. T. Elsworth  at 1:39 PM to GM | Permalink | Comments 0

Oil Above $107

VIENNA, Austria -- Oil prices rose by more than a dollar Thursday, as the bombing of a key Iraqi pipeline extended a buying spree spurred by an anemic dollar and lower U.S. fuel inventories, according to the Associated Press.

Crude prices, which already spiked by nearly $5 on Thursday, were propelled higher by the second bombing in a week in Basra, where Iraqi security forces have been clashing with Shiite militia fighters.

Posted by Peter C. T. Elsworth  at 9:46 AM to Crude oil market | Permalink | Comments 0

Backseat Driver: Consumer confidence as lowest level since 1973

Most indicators of economic activity track the present or the past – what’s the Dow at, what’s the price of oil, how many vehicles sold last month, were housing starts up or down last month?

The Conference Board’s Expectations Index looks at the future.

And the latest findings are not encouraging.

The board found consumer confidence in March at its lowest level since 1973 – back when Richard Nixon was president and the Organization of Petroleum Exporting Countries first flexed its muscle by restricting oil production, thus driving up prices.

It is hardly news that most of us are currently apprehensive about the future. What with record oil and gas prices, the economic meltdown caused by the sub-prime mortgage crisis and George Bush’s interminable war in Iraq, these are not happy times.

Unfortunately, the findings from the Conference Board’s Consumer Research Center reinforce the general sense that the American consumer is pessimistic about the future - and when people are pessimistic, they do not buy big items like cars and trucks.

That’s bad for the auto makers and this week’s Automotive News says manufacturers are cutting production, laying off workers and asking suppliers to lower prices.

And it’s bad for dealers who are caught in the middle, trying to market vehicles to wary customers against a backdrop of tighter credit.

But there is one ray of light. With manufacturers and dealers keen for sales, it’s good for those consumers who can afford to get into the market as there are plenty of discounts and bargains out there.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 4:07 PM to commentary | Permalink | Comments 0

Tasca aims on third nitro Funny Car start this weekend

HOUSTON – After bad weather cancelled Friday qualifying runs for the past two NHRA POWERade Drag Racing Series events, Bob Tasca III and the Motorcraft/Quick Lane Shelby Mustang team head to Houston this weekend with the hope of not needing their rain gear, according to Tasca's spokesperson Alexis Kinch.

“As a new team, the one thing we cherish is run data, and to lose four qualifying runs in the first three races of the year has not helped us at all,” said Tasca. “One of the most important things for us this weekend in Houston is get all four runs in. If we can do that and do well in the race on Sunday, we’ll go and test on Monday and hopefully come out with a lot of runs and data to take with us into Las Vegas.”

After getting eliminated by Jim Head in the first round of competition in Gainesville two weeks ago, Tasca looks forward to getting his car down the track and earning a qualifying spot in the top half of the field.

“We’re excited to go to Houston because we’ve really started to get a baseline on this racecar,” said Tasca. “I’ve always felt that it was going to take us five or six races for us to do that. We’re going to stay and test on Monday after Houston regardless of how we do this weekend, which is a really important part of our program. Just being able to continue to practice and refine the combination on our car is really beneficial to our team.”

In a sport that is measured by fractions of seconds, fine-tuning and setting up the car exactly right for track conditions is the main focus for the team this weekend.

“It comes down to being able to control the car through the clutch and apply the proper amount of power to the race track,” said Tasca. “These cars overpower the track, which is really the issue that we face. We have plenty of horsepower to do the job, but we just have to do a better job of managing the power to get these cars to go from point A to point B.

“Our team has a lot of confidence going into this weekend. We’ve got a good team; we’ve got great sponsors and a lot of talent in our crew chiefs. Truthfully, for me as a driver, every time down the track I’m getting more and more comfortable in the car.”

Posted by Peter C. T. Elsworth  at 10:51 AM to Racing | Permalink | Comments 0

Mack Truck dealership moving to Johnston

JOHNSTON — A Mack Truck dealership — Ballard Truck Center — has negotiated a tentative land agreement that would allow it to move into the town’s industrial park on Shun Pike, according to Mayor Joseph M. Polisena, reports The Providence Journal.

Apparently, Mack likes the idea of being neighbors with A. Duie Pyle and FedEx. The basic idea is to provide service to the two trucking companies, Polisena said.

“They feel very good about coming,” Polisena told the Town Council at a recent meeting. “It’s almost like an ice cream shop opening across the street from a playground.”

The dealership has a tentative purchase and sales agreement with the overseer of the Shun Pike industrial park, the Rhode Island Resource Recovery Corporation, Polisena said.

At present, Ballard Truck Center is operating in Worcester, Mass., and in Coventry at 80 Centre of New England Blvd.

Once it moves into the local park, Mack would sell Mack trucks, as well as parts for the big rigs. It would have a service department for repairs, Polisena said.

Posted by Peter C. T. Elsworth  at 10:42 AM to Local dealerships | Permalink | Comments 0

Ford Says 'Tata' to Jaguar, Land Rover

DETROIT -- Ford Motor Co. is selling its storied Jaguar and Land Rover brands to India's Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7 billion - roughly a third of the price it paid for the two luxury brands, according to the Associated Press.

The deal announced Wednesday will expand the Indian carmaker's reach around the globe and give Jaguar and Land Rover badly needed capital to update and expand their product lines.

The agreement had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.

Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata's statement said.

Posted by Peter C. T. Elsworth  at 10:19 AM to Ford | Permalink | Comments 0

Lundberg Survey: Gas Prices Rise 7 Cents

CAMARILLO, Calif. -- A survey says the national average price for gasoline rose 7 cents over the last two weeks, according to the Associated Press.

The average price of self-serve regular gasoline on Friday was $3.26 a gallon, mid-grade was $3.38 and premium was $3.50. That's all according to the Lundberg Survey of 7,000 stations nationwide released Sunday.

Of the cities surveyed, the cheapest price was in Newark, N.J., where a gallon of regular cost $3.03, on average. The highest average price was in San Francisco at $3.66.

Posted by Peter C. T. Elsworth  at 10:18 AM to Gas prices | Permalink | Comments 0

Backseat Driver: Mazda coming through!

Mazda is certainly displaying some oomph at the New York International Auto Show this week.

The company has won kudos for its 2008 CX-9, which Motor Trend named Sport Utility of the Year, its MazdaSpeed3, which is generally rated the best value hi-performance road car, and its Mazda 2 subcompact, which was just named World Car of the Year.

Mazda is considering bringing the Mazda 2 to the U.S. in the near future, according to thecarconnection.com

Meanwhile, Mazda is showing off its show-stopping Furai concept in New York this week. The name means "Sound of the Wind," and the influence of aerodynamic styling is evident in the lines with the front sides and rear seemingly shaped by the wind.

The car not only looks seriously fast, but is armed with a 450 horsepower rotary engine. And it sits next to a real racer, the Mazda RX-8 that won the 2008 Rolex 24 Hours at Daytona.

Posted by Peter C. T. Elsworth  at 2:26 PM to commentary | Permalink | Comments 0

VP, Saudis to Talk About Oil Security

RIYADH, Saudi Arabia (AP) -- High oil prices paining U.S. consumers is a key topic of Vice President Dick Cheney's talks Friday with Saudi King Abdullah, yet it's unclear whether Cheney will ask the Saudis to increase production to bring down prices at the pump, according to the Associated Press.

Cheney's advisers cautioned in advance of Friday's talks that oil was just one item on a long list of discussion topics which include Iran, Syria, Lebanon, protecting infrastructure against terror attacks and the vice president's visits this week to Iraq and Afghanistan.

Posted by Peter C. T. Elsworth  at 2:23 PM to Crude oil market | Permalink | Comments 0

Backseat Driver: With Lamborghinis, less is more

It was interesting to see the Lamborghinis at the New York International Auto Show last Wednesday.

That was press preview day and instead of being surrounded by ogling crowds, the Lambos and their attendant leggy models were very accessible. You could even sit in one of the two Murcielagos, for goodness sakes.

The one Gallardo remained under a wrap so tight it was impossible to see what color the car was. The Murcielagos were metallic grey.

But the fact is, they were not as exotic when exposed like that. When the show opens to the public, the entire display is fenced off with three-foot glass panels.

Inside the panels, and set six inches or so below the display floor, is a walkway for “the invited only.” Outside the panels – at last year’s show, at any rate – the crowd stands and stares, four or five deep.

And that’s as it should be. These are the ultimate dream cars, unobtainable to almost everyone and hopelessly impractical. But that’s not the point.

Lamborghini is all about image and an image is a fragile thing that is better kept at arm’s length.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:01 AM to commentary | Permalink | Comments 0

Backseat Driver: Rick, Bob et al get bonuses

You really can't make it up.

While the U.S. auto industry wallows in an economic slump, with total sales this year now predicted by J.D. Power and Associates to dip below 15 million vehicles and buyouts and cutbacks rampant, General Motors announces $3 million of cash and stock bonuses to 19 of its top executives.

That's great, and just another PR blooper from GM.

Just two months ago, vice chairman Bob Lutz, whose bonus is worth about $230,000 according to The Detroit Free Press, caused a contoversy by declaring that he thought global warming was nonsense. Both he and Chairman Rick Wagoner, whose bonus is worth about $364,000, had to explain and defend the statement.

GM has had a reputation for being out of touch for a long time. The 2008 Chevy Malibu was heralded as a ray of light, a first-class car that can compete head-on with the cars that have owned that segment for years - the Honda Accord and the Toyota Camry.

And I'm sure Lutz is sincere in his much-vaunted efforts to push the plug-in Chevy Volt and that such bonuses are quite in line with corporate compensation in this country.

But they can hardly go down well in a world where most people are interested in alternative fuel vehicles for both economic and environmental reasons, and are also concerned about their family budgets in face of ramping prices on almost everything, especially fuel.

- Peter C. T. Elsworth

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

J.D. Power lowers sales forecast to less than 15 million vehicles

NEW YORK — Despite dire predictions, auto executives say the market for new cars and light trucks is not rapidly deteriorating and may even stabilize in the second half, according to USA Today.

Several executives here for the New York auto show say they expect tax rebate checks that begin landing in May, along with interest rate cuts, to get consumers excited to buy again.

Jeff Schuster, executive director of automotive forecasting for J.D. Power and Associates, isn't buying it. On Tuesday, J.D. Power lowered its annual sales forecast to 14.95 million vehicles, down from the original view of 15.7 million.

Posted by Peter C. T. Elsworth  at 9:52 AM to Sales | Permalink | Comments 0

Notes from the New York International Auto Show

If there is a theme to the New York International Auto Show that opens tomorrow in Manhattan, it is that small is back.

Well, perhaps small and green.

Journal photographer Steve Szydlowski and I attended the press preview yesterday to get the lowdown without having to wade through the enormous crowds this show attracts.

While the auto shows in Detroit and Los Angeles tend to have more concept cars, no show beats New York for attendance, with over a million folks expected in the show’s nine day run from March 21 through March 30.

This weekend will see upward of 200,000 visitors a day, so prepare yourselves before you go!
Is it worth going? Absolutely. New York has its share of concept cars and latest models, and the sheer size of the show guarantees a lot of everything for everyone.

But back to small is beautiful. For while the concept Lincoln MKT is a standout beauty with its gleaming white interior, it represents the exception rather than the rule. Instead, the Ford Verve, a compact concept from Ford’s European design team that is displayed nearby, seems more in the spirit on the show.

Ford Verve concept

“Small has become smart once again,” said Dick Colliver, Honda American’s executive vice president in announcing the 2009 Honda Fit to the backdrop of a massive sound system and stage to an amphitheatre-like semi-circle of 400-to-500 members of the media.

2009 Honda Fit

Indeed, even Hummer has its cute(?!) concept on display, the Hummer HX which its bigger siblings could run over in a heartbeat. However, it still displays the trademark aggressive styling, with flared fenders and big tires.

Hummer HX Concept

Hummers clearly have a following, with a display cabinet offering shirts and hats and other pieces of paraphernalia. The only other cars that offer such a range of knick-knacks are the exotics like Ferrari and Lamborghini.

Ford is also debuting its neat Transit Connect vans. These cheerful working vans also come from Ford’s European division (they are made in Turkey) and can be converted for recreational use. The rear is easy to step into as the side and rear doors are set low and the van has a high roof to allow for plenty of headroom.

Volvo is showing its new XC60 SUV which it claims is the safest vehicle it had ever produced. Apart from the usual Volvo emphasis on structural strength and air bags, the XC60 is armed with proactive computer sensors that will automatically brake it before low speed collisions and initiate warnings and the safety features in high speed situations.

“The car knows before you crash,” said Volvo technician Hakan Ivarsson. “It’s a lot faster for the computer to do things to the car than the driver.”

Land Rover’s concept LRX is also small, its high haunches and upward sloping beltline echoing a design theme seen on a number of concepts, including the Saab 9-X Biohybrid concept – although the Saab’s face is a lot beefier than its profile

The tiny lithium-ion battery powered Mitsubishi i-MiEV (Mitsubishi innovative Electric Vehicle is displayed in a variety of modes, from sedan to coupe.

And speaking of tiny, Smart has its three basic models – Pure, Passion Coupe and Passion Cabriolet – on display.

Tony Pordon, Smart USA Penske Autogroup’s senior vice president, said the iconic small car has proved emormously popular, with the company hoping to deliver up to 25,000 vehicles this year. Reservations, meanwhile, are slightly ahead at 30,000.

Meanwhile, Mitsubishi is also displaying its Concept-cX compact diesel SUV. The vehicle is stylish in addition to covering a lot of bases with its size and green power plant. And is ‘compact SUV’ the wave of the future?

General Motor’s Saturn division has its Flextreme plug-in concept on display. Like Ford’s Verve, the car, which comes out of GM’s Opel division in Germany, is a flowing tear drop, with barely any differentiation of the windshield.

Saturn Flextreme

Like so many of the displays, the BMW backdrop includes a two-story 'building' with a balcony where filet mignon was being served to the invited when we cruised by. Apart from BMW’s concept CS and M3 ALMS racer, I was taken with a 1972 BMW 2002 Tii which was on loan from former ace Bobby Rahal.

The color is the only color these cars should be – Colorado Orange – and the sight of the car brought back memories of a couple of months I spent in the Canary Islands during a former life.

Memories of cars we have loved play an important role in our lives, and an adjacent display speaks directly to nostalgia for the celebrated muscle car era of the late 1960s and early 1970s.

Dodge had set aside a vast area to display three versions of its 2008 Challenger SRT8s in patriotic red, white and blue: the original SRT8, the SE and the R/T. They sit on display stands at different heights, purring like big cats in the zoo. I have sung the praises of this revival before; it really is a beautiful car, although I confess I prefer the perhaps less patriotic orange version with black stripes that was on display at the New England International Auto Show in Boston.

From Rhode Island, Mark Hurwitz is promoting the Newport Concours d'Elegance which is scheduled for the Memorial Day weekend. He has a display of four vintage cars - a 1927 Rolls Royce, a 1927 Bentley, a 1927 Dusenberg and a 1950 Buick Woody Wagon and a prototype modern Iconic roadster from Long Island.

Finally, the LeMay Auto Museum in Tacoma, Wash., is displaying a number of cars that are either part of its collection or belong to members. The museum expects to break ground on its new building this summer, part of a $100 million program that will result in the largest auto museum in the world by far.

Among the displays was a Fred Flintstone car which was given to the museum and which has proved to be a great attention getter. Steve was shooting a picture of it when this idiot got on board!

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 3:34 PM to Shows | Permalink | Comments 1

Photo: New Bentley stands out at New York auto show

Journal photo / Steve Szydlowski

A Bentley Brooklands is displayed at the 2008 New York International Auto Show. The show is running through March 30 at the Jacob Javits Convention Center in New York City, highlighting the latest trends in the auto industry.

Read more about the Auto Show ...

Posted by Pam Cotter  at 2:35 PM to Shows | Permalink | Comments 0

Oil Continues to Fall on Economy Worries

NEW YORK -- Oil prices extended their declines Thursday, sliding below $100 a barrel at times as concerns about the economy and demand for oil grew and the dollar strengthened, according to the Associated Press.

Retail gas prices, meanwhile, fell further below their recent records, while diesel rose to a new record above $4 a gallon.

Light, sweet crude for May delivery dropped $1.76 to $100.78 a barrel on the New York Mercantile Exchange Thursday after sliding as low as $98.65 earlier. It was the first dip by a front-month oil contract under $100 since March 5.

Posted by Peter C. T. Elsworth  at 12:35 PM to Crude oil market | Permalink | Comments 0

Photo: Projocars staffers at New York Auto Show

In a photo provided by the Ford Motor Co., a Transit Connect Taxi concept is shown. The automaker is expected to unveal the vehicle at the New York Auto Show today.

Projocars staff writer Peter C.T. Elsworth and photographer Steve Szydlowski are among a contingent of Rhode Islanders attending this weekend's New York International Auto Show in Manhattan.

Expect live blogs, and both in-paper and online stories and photos in the coming days.

Press previews are set today and tomorrow, and the show is open to the public Friday March 21 through Sunday March 30 from 11am to 10:30 pm (Sundays: 10am - 7pm).

Posted by Pam Cotter  at 12:19 PM to Auto industry | Permalink | Comments 0

Ford likely to announce Jaguar, Land Rover sale March 26

Two people briefed on the negotiations between Ford Motor and India’s Tata Motors say the automakers could announce an agreement for Tata to buy Jaguar and Land Rover as soon as next week, according to The Detroit Free Press.

Posted by Peter C. T. Elsworth  at 2:23 PM to Ford | Permalink | Comments 0

Oil Plummets on Economy Worries

NEW YORK -- Oil prices fell sharply Monday, pulling back at least temporarily from record levels as investors feared that the financial crisis that forced the sale of Bear Stearns Cos. is a sign of deep economic troubles, according to the Associated Press.

Crude's plunge came even as diesel prices rose to a new record above $4 a gallon, and gas prices remained high.

Light, sweet crude for April delivery fell $3.08 to $107.13 a barrel in morning trading on the New York Mercantile Exchange. Overnight, prices rose as high as $111.80 before plunging as low as $105.11 in early morning Nymex trading.

Posted by Peter C. T. Elsworth  at 12:07 PM to Crude oil market | Permalink | Comments 0

The New York Auto Show looks to 2009

Pontiac Sport Truck

This year’s New York International Auto Show has much in common with the going-nowhere Knicks: both will focus on rookies in the hope of improving next season, according to The New York Times.

With American car sales falling and some automakers predicting the numbers could be the lowest since at least 1998, the industry is looking toward 2009. Several of those ’09 models will make their debuts here this week before arriving at showrooms this year.

Show organizers expect more than one million people to attend the 108th New York show, which runs March 21-30 at the Jacob K. Javits Convention Center after press introductions starting Wednesday.

Posted by Peter C. T. Elsworth  at 9:56 AM to Shows | Permalink | Comments 0

Drivers corral high-horsepower cars at low cost

Even as gas prices rise, more automakers are breaking the price barrier on what used to be a privilege for the rich: the 300-horsepower engine, according to USA Today.

On Wednesday, Hyundai unveils the production version of its 2010 Genesis sports coupe with a 306-hp V-6 engine that the company bills as offering the maximum horsepower for the buck.

The price has not been set for its fall debut, but spokesman Miles Johnson says the Genesis four-seater will cost less than a Ford Mustang GT, which comes with a 300-hp engine, at $26,080.

Also bringing power to the people for less than 30 grand: General Motors' 361-hp Pontiac G8 GT and 303-hp Chevrolet Impala SS and Nissan's 306-hp 350Z.

Posted by Peter C. T. Elsworth  at 9:54 AM to Ford , GM , Hyundai | Permalink | Comments 0

Oil Rises to New Record As Dollar Drops

VIENNA, Austria -- Oil prices jumped to an all-time trading high of almost $112 a barrel Monday as the tumbling U.S. dollar and plunging stock markets prompted investors to seek shelter in commodities, according to the Associated Press.

Posted by Peter C. T. Elsworth  at 9:49 AM to Crude oil market | Permalink | Comments 0

Volvo Plug-In Hits the Road

Last fall Volvo showed off its ReCharge plug-in hybrid concept at the Frankfurt auto show. Now the Swedish arm of Ford says it’s going to press ahead with the plug-in program–and in fact, they’re already on the road, according to thecarconnection.com

C/Net, the car-tech gurus, reports that Volvo’s plug-in hybrid is on the road, in a test with the Swedish government. Also hooked into the program are colleagues over at GM’s Saab brand and the Swedish power company Vattenfall.

Over five years, the companies will field a fleet of 10 plug-in hybrids to evaluate their feasibility. Volvo says it’s also going to confirm which of its vehicles will go hybrid during the course of the next five years.

Posted by Peter C. T. Elsworth  at 3:48 PM to Volvo | Permalink | Comments 0

GM Recalls 200,000 Sedans Over Fire Risk

DETROIT -- General Motors Corp. is recalling 207,542 Buick Regal and Pontiac Grand Prix sedans over a risk they could catch fire, and warned their owners not to park the cars in garages until they are fixed, according to the Associated Press.

The automaker said Friday it is recalling the 1997-2003 Buick Regal GS and Grand Prix GTP models with 3.8-liter supercharged V-6 engines.

During hard braking, drops of oil can leak from the engine onto the exhaust manifold, and fires can start if the oil gets hot enough, the National Highway Traffic Safety Administration said on its Web site.

Posted by Peter C. T. Elsworth  at 3:41 PM to GM | Permalink | Comments 1

Gas, Diesel Rocket to New Records

Aloha! The price for regular unleaded in paradise nears $4 a gallon

NEW YORK -- The rally in energy prices gained momentum Friday, with retail gas prices rising further into record territory and diesel and heating oil futures setting records of their own amid concerns about strong global demand and tight supplies, according to the Associated Press.

Crude oil prices fell modestly as a downturn in the stock market and worries about the economy prompted some profit-taking. But with the Federal Reserve expected to cut interest rates again next week, analysts expect the dollar to weaken further, propelling crude to new records.

At the pump, gas prices set records for the 4th straight day, rising 1.3 cents Friday to a national average price of $3.28 a gallon, according to AAA and the Oil Price Information Service. Average prices are nearing $4 in some parts of Hawaii.

Diesel, meanwhile, rose 2.9 cents to a new record national average of $3.938 a gallon. Heating oil, a fellow distillate and close cousin of diesel, jumped to new records on the New York Mercantile Exchange.

Diesel, used by trucks, trains and ships, is used to move the vast majority of the world's goods. While the U.S. economy appears to be slowing, the global economy continues to grow.

"Demand for diesel worldwide has been incredible," said Phil Flynn, an analyst at Alaron Trading Corp., in Chicago.

April heating oil futures rose 6.43 cents to $3.1891 a gallon after earlier setting a new trading record of $3.222 a gallon.

Oil prices fell for a change Friday, following stocks lower after Bear Stearns Cos. acknowledged serious financial problems, and the Federal Reserve and JPMorgan Chase & Co. said they were working on a bailout.

Light, sweet crude for April delivery fell 39 cents to $109.94 on the Nymex Friday after rising earlier to within pennies of its latest trading record of $111, set Thursday.

Posted by Peter C. T. Elsworth  at 11:45 AM to Gas prices | Permalink | Comments 0

Photo: Nearly $4 a gallon in Maui

AP Photo
Mike Sweeney, in black truck, arrives at a gas station to fill up his truck in Kahului, Hawaii. Sweeney recently moved from Denver and was hit with the other side of living in paradise with his first visit to the gas pump. Residents on the island of Maui are paying more for a gallon of gas than anywhere else in the nation.

"After seeing the total, I won't be smiling," Sweeney said as he watched the numbers on the Chevron pump spin faster than a slot machine. The pump finally stopped at $97.20, which put 24.5 gallon to fill his Chevrolet Avalanche.

See the AP Video report

-- By the Associated Press

Posted by Pam Cotter  at 9:27 AM to Gas prices | Permalink | Comments 0

Chrysler plans summer shutdown

Chrysler LLC is telling employees worldwide to take a mandatory two-week vacation in July.

Chrysler informed employees of the plan in an e-mail sent to employees that was obtained by the Associated Press. Chrysler spokeswoman Mary Beth Heilprin confirms the e-mail was sent.

Chrysler plans a corporate-wide shutdown the weeks of July 7 and July 14. Heilprin says some employees may be asked to stay on to work on special projects.

It's common for automakers to shut down plants in July, but this also would affect salaried workers.

Chrysler says the shutdown should help it boost productivity and efficiency. Heilprin didn't have any details about why the decision was made.

Watch the AP video report

-- The Associated Press

Posted by Pam Cotter  at 3:19 PM to Auto industry | Permalink | Comments 0

VW Sets Sales Target, Considers US Plant

WOLFSBURG, Germany -- Volkswagen AG aims to sell 8 million cars a year by 2011 - almost 30 percent more than last year - and will introduce 20 more models including vans, pickups and sport utility vehicles in a bid to expand its market share in Asia, Europe and North America, according to the Associated Press.

Europe's biggest automaker by sales is also looking at building a new plant in the United States that could produce between 100,000 and 150,000 cars per year.

Posted by Peter C. T. Elsworth  at 9:57 AM to VW | Permalink | Comments 0

Oil Prices Set New Highs Above $110

Oil prices on Thursday hit a record high above $110 a barrel as investors fled the tumbling dollar that fell to new lows against the euro and a 12-year low versus the yen, according to the Associated Press.

Light, sweet crude for April delivery rose 78 cents to reach $110.70 in early afternoon European electronic trading on the New York Mercantile Exchange. On Wednesday, it had set a record trading high of $110.20 a barrel.

Posted by Peter C. T. Elsworth  at 9:39 AM to Crude oil market | Permalink | Comments 0

Backseat Driver: Has the time come?

Crude oil prices are down today - to around $107 a barrel.

Down, I guess, is relative.

The fact is oil prices, adjusted for inflation, are now at their highest level ever. And with those prices starting to permeate every other aspect of our lives, I think we are beginning to see a sea change in people’s attitudes toward transportation – from increased interest in smaller, more fuel efficient vehicles to trains and buses.

Yes, I know that some of the increase in the price of oil has been caused by speculators drawn by the weakness of the dollar. Better to put your dollars in oil than watch them fade away.

But underneath the froth and bubbles of the market place, the fundamentals are also changing. Demand from developing nations is exploding with the pace of economic growth in China and India totally unprecedented.

U.S. gas prices are now at record levels – like I need to tell you! And there are strong indications they could keep going up and through $4 a gallon in the near future. We are actually pretty close already.

With these prices, I think we may have finally reached a tipping point for the average consumer who is basically level headed. Witness the success of the Asian manufacturers who have grown to take on Detroit’s Big Three by producing core cars that are “reliable.” Nothing more, nothing less.

Now I am hearing more and more from people who say they are seriously looking into buying fuel efficient cars. And not only that.

Most of us are also concerned about global warming and want to combine our immediate concerns about family budgets with a desire “to do our bit” for the environment.

Automakers have responded by investing millions in alternative fuel systems, with the most significant gains being made by Toyota with hybrid electric-gas technology and Audi/Volkswagen and Mercedes with clean diesel technology.

That is why it makes my blood boil I hear that General Motors vice chairman Bob Lutz declare that he thinks “the concept of global warming” is nonsense. He told a bunch of journalists that back in January.

Such statements do great disservice to the engineers at GM who are working hard to produce alternative fuel technology and vehicles, most significantly lithium-ion batteries and the much-ballyhooed – by Mr. Lutz himself – electric Chevrolet Volt.

They also undermine GM’s reputation let alone reflect a point of view out of touch with the weight of scientific evidence. I find it is interesting that the most intemperate emails I receive are from people who believe, like the buffoonish Mr. Lutz, that global warming is a “crock of sh*t.”

Emotion, in their case, seems to trump, reason. But then, everyone is shouting at everyone else these days.

I believe companies are built by people who passionately believe in what they are doing. So it’s no surprise to me that GM has lost ground on the alternative vehicle front to the Asian and German manufacturers.

Toyota, obviously, leads the pack with its iconic best-selling hybrid, the Prius. Now Honda is planning to be selling 400,000 hybrids a year in three models in five years.

Indeed, the story of Toyota’s development of its Prius hybrid is lesson unto itself of what ails Detroit.

In 1993, President Clinton initiated the Partnership for the Next Generation of Vehicles to fund research by American manufacturers into fuel efficient vehicles. However, Toyota, excluded because it was a Japanese company, decided to go it alone. The result: By 1997 it was producing the first generation Prius. The third generation was introduced in 2003 and has become THE iconic alternative fuel vehicle.

The Partnership for the Next Generation of Vehicles? It ended in 2001 when all funding was cut by the Bush Administration.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 10:57 AM to commentary | Permalink | Comments 1

Sen. Fogarty submits bill seeking fuel economy ratings in ads

Sen. Paul W. Fogarty (D-Glocester, Burrillville and North Smithfield) has submitted legislation that would require auto dealers in Rhode Island to include the city and highway fuel economy ratings of new automobiles both on window stickers and in ads.

“Fuel economy is an important piece of information for the consumer. It’s just as important as the price the dealer is charging for the car, since it is going to determine how much the consumer is paying for gas for as long as he or she drives that car,” Fogarty said in a news statement.

“Fuel economy is basic information that the dealers have, and that consumers need when they’re making a decision. It should be plainly displayed on each car.”

Under the bill, dealers selling new motor vehicles would be required to disclose the city and highway fuel economy rating in all print and broadcast advertisements for the vehicle as well as on the window sticker.

“This is a consumer-protection bill,” he said. “People need to be aware of he efficiency of the car they’re considering buying. Over the years, they’ll pay thousands more if the car they buy doesn’t get the kind of mileage they were expecting.”

The bill has a hearing before the Senate Corporations Committee today at around 4:30 p.m. in Room 212 of the State House.

It is cosponsored by Sen. John J. Tassoni Jr. (D-Smithfield, North Smithfield), Sen. Daniel P. Connors (D-Cumberland, Lincoln), Sen. Hanna M. Gallo (D-Cranston) and Sen. Kevin A. Breene (R-West Greenwich, Charlestown, Exeter, Hopkinton, Richmond).

Posted by Peter C. T. Elsworth  at 10:19 AM to Fuel economy | Permalink | Comments 0

Oil and gasoline prices set new records

NEW YORK -- The cost of filling up your gas tank has hit a new record. Average prices at the pump are at a new high of almost $3.23 a gallon, according to the Associated Press.

According to AAA and the Oil Price Information Service, the average national price of a gallon of gas rose half a cent overnight to $3.2272. That is slightly higher than the previous record of $3.2265 a gallon, set last May.

Gas prices are following crude oil futures into record territory. Oil prices are surging as the falling dollar attracts investors who see crude futures as a hedge against inflation and the weak dollar.

Light, sweet crude for April delivery briefly climbed to a new record price of $109.72 a barrel on the New York Mercantile Exchange Tuesday morning.

Posted by Peter C. T. Elsworth  at 9:56 AM to Crude oil market , Gas prices | Permalink | Comments 1

Ford offers to buyback 81 stores

Ford is offering a one-time buyout to the 81 members of its dealer development program, according to Automotive News.

Most of them are minorities.

Under the terms of the offer, Ford will refund their full investment if they give up their Ford or Lincoln-Mercury dealerships, even if their current stake is worth less than their original investment, accoring to Automotive News.

The authorative industry weekly news magazine said Ford will offer an additional $100,000 to operators whose dealerships are their only source of income.

Automotive News said the dealer development program gives would-be dealers who lack adequate capital an oppportunity to acquire their own stores. Over the past two years, Ford has eliminated 340 stores overall, leaving it with 4,056 nationally.

"Ford is taking this action as part of an effort to ensure a sustainable dealer development program," Automotive News quoted Ford program director Jamy Hall in a letter Hall wrote to dealers.

It cited Ford as saying the planned closures

Posted by Peter C. T. Elsworth  at 10:47 AM to Ford | Permalink | Comments 0

Glamour and Cars? It’s Still the Swiss

Check out this solid rundown of the The Geneva Motor Show from The New York Times' Jerry Garrett:

The Bentley GTZ by Zagato

The Geneva Motor Show remains a throwback to the time when auto shows were celebrations of the industry. Glamorous women, wearing the latest fashions from Paris and Milan, still pose provocatively next to gleaming cars as waiters pass by with caviar and pricey Champagne.

During the press previews at other auto shows, most of that glamour has faded away — the Champagne fountains dried up long ago and the foie gras has been replaced by chili dogs.

That reality will return in two weeks when the whole assembly reconvenes, sans the Geneva-style flamboyance, for the New York International Auto Show.

Posted by Peter C. T. Elsworth  at 10:28 AM to Shows | Permalink | Comments 0

Gas Prices Up 9 Cents From 2 Weeks Ago

CAMARILLO, Calif. -- A survey says the national average price for gasoline rose 9 cents over the last two weeks, according to the Associated Press.

The average price of self-serve regular gasoline on Friday was $3.19 a gallon, mid-grade was $3.31 and premium was $3.42, according to the Lundberg Survey of 7,000 stations nationwide released Sunday.

Posted by Peter C. T. Elsworth  at 10:27 AM to Gas prices | Permalink | Comments 0

Oil Gyrates, but Hits New Record

NEW YORK -- Oil prices jumped to a new record above $106 Friday but extended their recent pattern of choppy trading after a weak jobs report convinced many traders that the Federal Reserve's interest rate-cutting campaign will continue, according to the Associated Press.

Employers cut 63,000 jobs in February, the biggest drop in five years, the Labor Department said Friday. Investors can react to such news in one of two ways: by selling on the prospect that the economy, and demand for oil, is cooling, or by buying on a conviction that bad economic data makes it more likely the Fed will cut rates.

Posted by Peter C. T. Elsworth  at 1:27 PM to Crude oil market | Permalink | Comments 0

Volvo Chief Sees a Plus in Shrinking Done by Ford

GENEVA — For Volvo, the Swedish maker of safe, sturdy cars, life is getting lonely, according to The New York Times.

Its aristocratic English cousins in the Ford Motor Company family, Jaguar and Land Rover, are in the final stages of being sold to Tata Motors of India, leaving Volvo as Ford’s only European luxury brand.

It does not help that Ford hemmed and hawed for months over whether to sell Volvo — BMW was a rumored buyer — before deciding in November to hold on to the 81-year-old company.

Now, however, Volvo sees a silver lining in being left behind. With Jaguar and Land Rover no longer competing for Ford’s money and attention, the Volvo chief executive, Fredrik Arp, says his company will be able to get more out of its financially stressed parent.

Posted by Peter C. T. Elsworth  at 10:02 AM to Ford , Volvo | Permalink | Comments 0

Video: Scenes from the Geneva Auto Show

AP Photo
The new Chevrolet Corvette ZR 1 is shown during the press day at the 78th Geneva International Motor Show. The show, which runs until March 16, presents more than 1,000 brands with more than 130 world and European premieres.

Car makers at the Geneva motor show are preparing for an economic slowdown as fears of a recession in the United States grow.

See scenes from the show, and the AP report.

Posted by Pam Cotter  at 12:16 PM | Permalink | Comments 0

Backseat Driver: Oil prices just keep on going

After flirting with $100 a barrel for a few weeks and then busting through a couple of weeks ago, crude oil prices now seem to be on a tear, going over $105 a barrel today.

These levels are simply incredible to anyone who spent anytime in the oil patch, as I did for the first three years of my professional life working for two leading oil industry newsletters and then helping to establish the energy desk at Reuters News Agency in New York.

We are now well beyond the all-time high of an inflation-adjusted $103.75 which was set back in 1980. The latest push is partly motivated by Wednesday's decision by the Organization of Petroleum Exporting Countries, which produces 40 percent of the world's crude oil, not to increase production.

Other factors include an unexpected reduction in U.S. crude oil inventories reported by the Energy Department and speculators drawn by the falling dollar into a commodity priced in dollars.

Whatever the causes, these rising prices bode no good for the average mug on the street like you and me.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 9:53 AM to commentary | Permalink | Comments 0

Backseat Driver: The year of dismal auto sales continues

It's hard to say whether the dismal February U.S. auto sales - down 10 perent from last year to an annualized 15.4 million - will really have an impact on Detroit's thinking, but hopefully it will.

With oil prices over $100 a barrel, gas projected to possibly hit $4 a gallon when the spring driving season starts, the collapse of the housing market - and thus collapse of pickup sales - and the credit crunch, Americans are clearly putting off big purchases for the time being.

The question is whether there has been a major change toward smaller, more fuel efficient vehicles. And if so, is Detroit ready to get on the bandwagon?

Certainly, it is interesting that Ford had solid sales increases for both its Focus and Fusion models as did Chevrolet with its Cobalt and Honda with its Civic and Fit. Meanwhile sales of light trucks - Ford's F Series, Chevrolet's Silverado and Dodge's Ram - were all down.

The problem for automakers is that trucks are much more profitable than small cars. That's partly why Detroit has ridden the truck/SUV gravy train for so long. But if market conditions are seriously changing, Detroit has to move toward smaller, more fuel efficient, alternative fuel vehicles.

The only company to report a tiny increase in sales compared with last February was Honda, up only 1 percent. All the rest were down, some dramatically. General Motor's domestic sales, for example, were off about 23 percent, Ford down 16 percent, Chrysler off 17 percent, while Toyota was down 7 percent, Nissan down 3 percent and Hyundai off 14 percent.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 10:34 AM to commentary | Permalink | Comments 0

Backseat Driver: Oil prices at ALL-TIME high

Well, it's official folks.

After bouncing through the psychological price barrier of $100 a barrel a couple of weeks ago, crude oil prices have now edged past an even more important barrier - that of around $103.75 a barrel which is the inflation-adjusted equivalent of the previous record set in early 1980.

Prices on the New York Mercantile Exchange hit $103.95 a barrel earlier today. Reasons for the hike include increased global demand, the weak dollar and Wednesday's meeting of the Organization of Petroleum Exporting Countries which sets production quotas for its member states - which produce 40 percent of the world's supply of oil.

This is hardly great news for consumers and, by extension, the economy. It seems everywhere we turn, ominous signs point toward a rocky economic climate in the near future. And while gasoline takes up a fairly small percentage of the average paycheck, it is a purchase that is made week after week after week after week.

Rising gas and diesel prices thus create their own dynamic of more money being spent for the same commodity - in short, a very real perception of inflation. And with more money being spent on fueling up the car or truck, that's not only less money for other purchases but a nagging fear that everything else dependent on oil is going to become more expensive.

And "everything else dependent on oil" basically means everything else - whether it's goods made from oil - chemicals, fertilizers, plastics - or goods and services dependent on the transportation industry.

This combined with a less than vibrant economy and the credit crunch from the sub-prime mortgage debacle, it's a fair bet that large numbers of Americans will be spending their tax rebates on the last place that President Bush et al want them to be spent - on consolidating debt rather than splurging on the next best thing.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 12:25 PM to commentary | Permalink | Comments 0