ARI Push

http://www.autosafety.org

http://www.nhtsa.dot.gov

http://www.crownvicmuscle.com

Sourced From: Detroit News, February 21, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8489

2) Family Of NY State Trooper Killed In Crown Vic Fire Sues Ford For $250M

Situation

Family files suit against Ford and others following death of NY State Trooper last year

Trooper Robert Ambrose killed when a Jeep hit trooper's Ford Crown Victoria while he was parked on roadside to write a report

Impact triggered fire; flames prevented rescuers from reaching Ambrose who died of smoke inhalation

Two others also died from the accident

Suit is for $250M in punitive damages, $11 for pain and suffering

Significant Points

Family also sued mother of Jeep driver, driver of Nissan that collided w/ Jeep seconds earlier and leasing companies that owned both vehicles

Also plan to sue New York state and Thruway Authority, which owned trooper's car

Police say Jeep was traveling at high rate of speed and it's alleged that driver was drunk

Ambrose is 13th officer since 1983 to die in Crown Vic fire following rear-end collision

NHTSA says vehicle exceeds fed standards for fuel safety, but Ford has agreed to pay for upgrades

Family's attorney says Crown Vic's fuel tank can be pushed into axle and punctured

Web Source

http://www.detnews.com/2003/autosinsider/0302/17/autos-85513.htm

Sourced From: Associated Press via Detroit News, February 15, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8551

3) Detroit No Longer Looks To Fleet To Prop Up Market; Lease Penetration At All Time Low

Situation

Fleet as percentage of total Big 3 US deliveries had typical seasonal up-tick in 4thQ

Trend has been flat for several years for all 3 companies

GM remained least dependent on fleet in 4thQ, 18% of deliveries, Ford most dependent, 25%

Lease penetration rates below historical levels, low rate financing motivated consumers to buy

Chrysler has highest lease mix among Big 3 at 17% of retail sales in 4thQ; GM is lowest at 7%

GM lease penetration rates fallen faster than the industry; led industry w/ low rate programs

Significant Points

Detroit no longer using fleet to prop up market as it did in early 1990s

Burned by collapsing residuals as rental companies returned cars

Trading one addictive drug for another

Incentive-driven retail sales hurting residuals in this cycle

Web Source

http://askmerrill.ml.com/research_headlines/1,2278,,00.html?q=GM

http://www.ml.com

http://www.chrysler.com.

Sourced From: Merrill Lynch, February 21, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8493

4) Overconfident SUV Drivers Learn Lessons on Ice

Situation

SUV drivers often lulled into false sense of security when driving in slippery conditions

Towing, law enforcement officials say SUVs often first to get into trouble during bad weather

Significant Points

Officials say drivers often think they can drive in any condition w/ 4-wheel-drive and not have accident

4-wheel-drive does offer improved acceleration on slippery roads

Also, many drivers think vehicle will perform better in all situations

SUVs also heavier, more difficult to stop, have higher center of gravity

Critics say manufacturer ads often reinforce overconfidence

Web Source

http://www.nytimes.com/2003/02/14/automobiles/14AUTO.html?tntemail0

http://www.saferoads.org

http://www.nhtsa.dot.gov

http://www.aaa.com

Sourced From: The New York Times, February 14, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8474

5) EPA Favors Inferior Diesel Emissions Technology Over Promising Selective Catalytic Reduction

Situation

Selective catalytic reduction (SCR) is promising technology to meet MY07 diesel engine emissions regulations

SCR injects water-based ammonia (urea) into fuel mixing chamber producing exhaust from which catalytic converters remove NOx

Urea tanks must be filled separately when refueling

SCR currently in use for stationary engines and most likely to be adopted in Europe

SCR avoids some problems associated w/ other solutions including lower fuel economy

Significant Points

SCR technology offers best solution for NOx and particulate reduction combined w/ low-sulfur diesel fuel

US EPA quietly discouraging SCR approach to meeting new standards in favor of competing tech NOx absorbers

EPA fears truckers would skip filling urea tanks to save money and lose emissions benefits

EPA can't forbid use of tech that achieves standards

Web Source

http://www.ttnews.com/lmt/

http://www.epa.gov

http://www.worldbank.org/html/fpd/em/power/EA/mitigatn/aqnoscr.stm

Sourced From: Light & Medium Truck, February 2003, page 12

http://www.automotivedigest.com/view_art.asp?articlesID=8487

6) Energy Needed to Extract Hydrogen For Fuel Cells Is Major Challenge

Situation

Fuel cells combine hydrogen w/ oxygen to produce electricity and heat

Fuel cells emit only water vapor

European Commission unveiled grand $2B 'hydrogen vision' in late ‘02

Bush recently proposed own $1.2B hydrogen plan followed by Democratic Congressional hydrogen initiative

Significant Points

Hydrogen must be extracted from compound substances before it can be used by fuel-cells to create electricity

Common sources would be hydrocarbon (fossil fuels) or water—energy required for either extraction

Europe emphasizing renewable energy to power hydrogen extraction through electrolysis of water

US favoring hydrocarbon-powered extraction w/ carbon dioxide capturing to produce net emissions saving over internal combustion vehicle engines

Web Source

http://www.economist.com/research/articlesBySubject/displayStory.cfm?story_id=1576453&subjectID=348990&emailauth=%2527%2528%2520%252A0%2521%253CMJ%2523PX%2520%250A

http://www.economist.com/background/displayBackground.cfm?story_id=1576453

http://www.eere.energy.gov/hydrogenandfuelcells/

Sourced From: The Economist, February 13, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8505

7) Major Energy Conversion Problems Cast Doubts On Hydrogen-Fueled Car

Situation

Bush announced $1.7B FreedomCAR and Fuel Initiative to make hydrogen-powered fuel cell cars viable by 2020

Hydrogen fuel cells produce no pollution or greenhouse gases

Significant Points

Pollution free hydrogen use, oil independence not possible when plan to extract hydrogen from fossil fuels

Alternatively stripping hydrogen from water requires massive electrical currents--most electricity generated by burning fossil fuels

Takes almost as much energy to separate, prepare, and store hydrogen from water, as generated by hydrogen fuel

Tailpipe pollution in urban areas simply reallocated to rural areas where hydrogen extracted/electricity generated

Web Source

http://evworld.com/databases/storybuilder.cfm?storyid=494&subcookie=1

http://www.phoenixproject.net/hydrogen.pdf

http://www.netl.doe.gov/publications/proceedings/00/h2_00/stiegel.pdf

http://www.ch2bc.org/General%20Atomics/NuclearH2-27June02.pdf

http://europa.eu.int/comm/research/energy/nn/nn_rt_hy3_en.htm

http://www.uscar.org/Media/2002issue2/hydrogen.htm

Sourced From: EV World, February 15,2003

http://www.automotivedigest.com/view_art.asp?articlesID=8531

8) More Rear Wheel Drives Coming For Ford, GM

Situation

Ford 427 concept sprung at auto shows, using new Mustang platform, could spark enlarged rear-drive lineup

2005 Mustang's platform derived from one now on Lincoln LS, Jaguar S-Type, Thunderbird

Mustang to be relocated to Flat Rock, MI plant shared w/ Mazda6, capacity 300K units a year

Joining rear-drive resurgence, GM works w/ Holden/Australia subsidiary, maker of Monaro due in 2004

Monaro coupe would be 1st of new rear-drive family, timed for Chevrolet, Pontiac in 2006

Significant Points

Tilt towards front-drive cars finally righting itself at Big-3

Dodge joining trend, w/ Magnum V-8 due in 2004

Rear-drive sedan return could return Chevy to taxi and police market, now dominated by Ford Crown Vic

Web Source

http://www.autonews.com/article.cms?articleld=42562

http://www.autonews.com/article.cms?articleld=42567

Sourced from: Automotive News, February 17, 2003, Pages 6, 3

http://www.automotivedigest.com/view_art.asp?articlesID=8512

9) Starter Interrupt Systems Gaining Favor W/ Buy-Here, Pay-Here Dealers

Situation

Success stories, favorable court decisions breathe life into ignition switch industry

Useful to buy-here, pay-here dealers for cutting collection staff, default rates

Starter interrupt systems require customer to call for code after each payment

PayTeck system also includes computer that tells customer when payment is due

Some devices come w/ anti-theft systems; devices will never shut down while vehicle is in motion

Other devices use cellular technology, but might not work in all areas

Significant Points

Starter-interrupt companies stress devices will save dealers money, help customers repair credit, save money on insurance

But many dealers fear lost sales if cars are equipped w/ such devices

Passtime is adding GPS technology to its list of services to help track repos

Industry recently got favorable court ruling in suit that complained devices were dangerous

Acceptance of starter-interrupt technology will truly arrive when finance companies start using them

W/ huge portfolios, most finance companies find the devices too cumbersome

Web Source

http://autoremarketing.com/ar/newsmag/story.html?id=1280

http://www.passtimesecurity.com

http://www.payteck.cc

Sourced From: Auto Remarketing, February 1, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8513

10) Experts Disagree On Projected SUV Residual Values

Situation

Experts differ on SUV demand, future residual value

Demand remains high and constant, but prices, profitability hurt by incentive and mass production

Kelly Blue Book publishes lists of cars best expected to hold value over next 5 years

Already has list for 2003 models

Black Book projects residuals for leasing companies but says too early to comment on new models

Automotive Lease Guide often considered industry's residual trendsetter; will release list in August

Significant Points

KBB editor Charlie Vogelheim already forecasting drop in value for large SUVs

Black Book editor Ricky Beggs says depreciation rate 2000 SUVs is 15% compared to 18% for cars

Views new crossover utility vehicle (CUV) as segment w/in market, not competition for SUV

Raj Sundaram of ALG says CUVs are stealing SUV share, SUV incentives hurt prices and there is oversupply of SUVs

Predicts CUVs will appeal to larger audience

Experts also split over luxury cars; some say end of luxury tax will spur sales while others say there is a weakening of the wealth effect

Web Source

http://autoremarketing.com/ar/newsmag/story.html?id=1281

http://www.kbb.com

http://www.blackbookusa.com

http://www.alg.com

Sourced From: Auto Remarketing, February 1, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8475

11) Used Truck Glut Lets Buyers Be More Selective

Situation

Team Vehicle Sales president says used truck buyers more selective, demanding

Jim Guice says just a few years ago used truck buyer was not as specific

In demand: Automatic transmissions, low mileage - 100-150K, 24-ft box w/ liftgate.

Recent sales of leased trucks contributed to glut of medium cab-over trucks

Guice says market can absorb 8000-10,000 units but market is probably 30% over capacity now

Significant Points

South, southwest are strongest markets w/ Phoenix, Las Vegas most notable

Mid-Atlantic much slower, especially Washington DC, Baltimore

Smaller, regional dealers especially hurt by slow economy

Web Source

http://www.teamtruck.com

Sourced From: Light & Medium Truck, February 2003, page 12-13

http://www.automotivedigest.com/view_art.asp?articlesID=8516

12) Inspectors Using Sophisticated Paint Gauge To Spot Unseen Body Repair

Situation

AutoVIN's 140 field inspectors now have paint-thickness gauge as standard tool

Elcometer 311 tool can detect where paint is too thick to be original coat, indicating hidden body repair

Paint should be 3.6 to 6 thousandths of an inch thick

Sudden reading of 12 thousandths or higher is cause for concern

Most dealers don't really inspect vehicle for damage, but just want the car to look good

Significant Points

AutoVIN says arbitration is down since Elcometer gauges have been in use

Gauge could be useful for online auctions: cars come w/ chart showing thickness for dealer review

Gauge is easy to use w/ minimal need for instruction manual

Roughly size of adult hand; results guaranteed to half-thousandth of an inch

Web Source

http://autoremarketing.com/ar/newsmag/story.html?id=1273

http://www.elcometer.com

http://www.autovin.com

Sourced From: Auto Remarketing, February 01, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8514

13) Saab, Cadillac Recognized For Lowest Lease Rates

Situation

IntelliChoice says Saab and Cadillac offers consumers most attractive lease rates

Significant Points

IntelliChoice GoldStar Lease Award recognizes automaker leases w/ lowest rate

Leases must be within lowest 25% of all evaluated leases

And at least 2 points lower than average bank loan rate, which was 5.99%

Saab winners include 9-3 Linear, 9-3 SE and 9-5 Linear sedan

Cadillac's winners include Seville STS, DeVille and Seville SLS

Web Source

http://autoremarketing.com/ar/news/story.html?id=1363

http://www.intellichoice.com

http://www.saab.com

http://www.cadillac.com

Sourced From: Automotive Remarketing, February 19, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8519

14) California Dealers Urged To Post Chemical Warnings To Prevent Legal Attacks

Situation

Dealers warned they may be targeted for class-action lawsuit over chemical warning notices

California dealers assn says Citizens for Responsible Business may sue dealers over Prop 65

17-year-old law requires businesses to post warning if anyone can be exposed to dangerous chemicals

Violations can lead to civil penalties of $2,500 per day for each violation

Attorney says thousands of businesses targeted over this issue, and rarely put up fight due to costs

Says dealers should post warnings to avoid trouble

Significant Points

Dealer associations urging members to post 4x4-inch warning notice on every vehicle and throughout dealership to guard against legal attack

Dealers can contact IADAC for info on proper wording and display of Prop 65 notice

Franchised dealers are meeting w/ citizens' group to determine whether dealers are violating law

Citizens' group had served notice to 1,470 dealers last Nov they were violating law by not posting notices on individual vehicles

Franchised dealers counsel not sure if independent dealers were notified

State official says one issue has merit: dealers not posting notices to employees

Web Source

http://www.usedcarnews.com/

http://www.iadac.org

http://www.cmcda.com

http://www.oehha.ca.gov/prop65.html

Sourced From: Used Car News, February 17, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8524

15) Ohio Governor Proposes 300% Jump In Auto Fees

Situation

Ohio Governor Robert Taft proposing auto title fee increase to help reduce $900M budget shortfall

Ohio currently charges $5 to change vehicle title

Under proposal, fee would increase to $20

Fee used to be $1 but increased in early '90s to $5 to help pay for upgrade of titling system

Officials say increase will go into state's general fund

Significant Points

Ohio has no title reassignments, so new title must be issued w/ every transaction

Law does give consumers important vehicle history, costs can add up quickly

Wholesaler of 100 cars a month says $15 increase will cost him $18,000 a year

Web Source

http://www.usedcarnews.com/

http://www.adao.org

Sourced From: Used Car News, February 17, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8527

16) Texas Dealers Watch Lawmakers After Court Kills 'Yankee Tax'

Situation

Texas legislature in session and facing $100M budget shortfall following court ruling

Court said $225 'Yankee Tax' on out-of-state vehicles unconstitutional

Auto dealers worried lawmakers will make up deficit w/ another vehicle tax or fee

Under old law, dealers paid $225 to register vehicles purchased at non-Texas auction

Individuals moving to Texas and bringing their vehicles also required to pay fee

Significant Points

Federal court said fee was "an unconstitutional restraint on interstate commerce"

Money from Yankee Tax was earmarked for pollution-abatement program

Texas could lose fed funds if it goes in default of clean air requirements

Dealers concerned since lawmakers passed Yankee Tax without committee hearing as session neared closing

Similar proposals passed in CA and FL but also ruled unconstitutional

Web Source

http://www.usedcarnews.com/

http://www.niada.com

Sourced From: Used Car News, February 17, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8555

17) GM Slashes Buick Fleet Output To Add Capacity For Pontiac Grand Prix

Situation

Buick will take sales hit as GM slashes fleet sales of Regal, Century in April

GM needs production capacity for Pontiac Grand Prix

50,000 Regals and Centurys sold to fleet last year, about one-quarter of sales of 204,493

2004 Grand Prix will be first car on GM’s updated W architecture

Significant Points

Buick dealers ordering extra vehicles to cover when plant slows down for conversion

Availability of models to dealers should not be affected

Getting rid of fleet sales will help Buick prepare to sell redesigned Regal, expected for 2005

Century expected to be dropped at that time, less expensive Regal will serve that segment

Web Source

http://www.autonews.com/article.cms?articleId=42534

http://www.buick.com

http://www.pontiac.com

Sourced from: Automotive News, February 17, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8535

18) SUVs Ride To The Rescue In East Coast Blizzards

Situation

Hospital calls to bring in medics, patients in blizzards boost for SUVs

East Coast hospitals rebutted SUV critics w/ pleas for SUVs in Feb snowstorms

About 74 Hummers, Land Rovers, 4WD trucks pitched in during DC, MD, VA whiteout weekend

Chemotherapy, dialysis patients among those brought in and taken home

Significant Points

Gas consumption, or lack thereof, no concern when mercy transport needed

What would Jesus drive? Palestine of His day had no 20-inch snowfalls, but desert terrain still invited use of 4WD to avoid getting stuck

For do-gooding purpose, Audi Quattro, Subaru, new Toyota Sienna, Dodge Caravan w/ 4WD might work well in either cold or warm climates

Web Source

http://www.nytimes.com/2003/02/21/automobiles/21SUV.html?tntemail0

Sourced From: The New York Times, February 21, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8543

19) Big-3 Denounce SUV/Truck CAFE Proposal; GM Says Change Will Cost $1B, 105K Jobs

Situation

Big-3 denounce NHTSA proposal to raise fuel economy standards on truck trio

SUVs, minivans, pickups face boost to 22.2 mpg (from 20.7 mpg) average by 2007

100-page+ submission by GM especially caustic

Honda, Toyota more optimistic CAFE average could be met

Cost of compliance put at $1B+ by GM, with 105K jobs lost, vehicle prices up $275

Japanese also fear US consumers might balk at paying higher prices for economy engines

Significant Points

Big-3 response departure from past assertions 3 fuel economy steps were coming from Detroit

Toyota more supportive of NHTSA stand, saying it has "applied more fuel efficient technologies" than "most other" automakers

Ford paper asks NHTSA not to lump truck trio in w/ cars for CAFE purposes -- change demanded by enviros

In another warning, GM tells NHTSA CAFE boost would undercut SUV safety initiative

Chrysler Group, long opponent of hybrid or fuel cell engines, reaffirms stand

US automakers, rarely if ever known for endorsing ANY safety, economy or emissions change, yet have always managed to raise prices, profits on such new technology

Web Source

http://online.wsj.com/article/0,,SB1045618160890814663,00.html

http://www.ita.doc.gov/td/auto/cafe.html

http://www.daimlerchrysler.com

Sourced From: The Wall Street Journal, February 19, 2003

http://www.automotivedigest.com/view_art.asp?articlesID=8545

20) Ford To Launch New F-150 W/ $3K Incentive, Eyes 1M Annual Sales

Situation

Ford currently offering $3K incentive on F-150 full-size pickup

F-150 has been redesigned for summer '03 release

Ford anticipating escalated competition from Toyota, Nissan, traditional rival GM

Toyota building new, bigger truck at new factory in Texas in '06, hoping to more than double its share of US large-pickup segment to 10%

Nissan new large pickup Titan even bigger than Detroit models to release later this year

Significant Points

GM outsold Ford by 41K trucks last year, increased discounts this year

Ford considering dealer incentives, lease program or low APR w/ new F-150 to grow market share

Ford aiming at 1M annual sales figure for F-150

Nissan Titan has more power and safety features

Current Toyota Tundra release in extended cab version w/ 100K sales goal

Web Source

http://online.wsj.com/article/0,,SB1045522780141291183,00.html

http://www.nissanmotors.com

http://www.toyota.com

Sourced From: The Wall Street Journal, February 18, 2003