NHTSA Taking on Cyber Security Threats Posed by “Connected Cars”

Posted on May 15, 2013 by D. Williams

The National Highway Traffic Safety Administration has proposed creating a new division to deal with cybersecurity risks that have arisen from the development of “connected cars.”

Testifying before the Senate Commerce Committee today, NHTSA head David Strickland said, “These interconnected electronics systems are creating opportunities to improve vehicle safety and reliability, but are also creating new and different safety and cybersecurity risks.”  He added, “We don’t want to be behind the eight ball.”

The new division will be charged with identifying risks that arise from systems that allow vehicles to communicate online and with other vehicles.

During the Senate hearing, a number of lawmakers, including the Committee’s chairman Jay Rockefeller (D-WV), expressed concerns about the possibility of a range of cyber security risks. Rockefeller posed the question, “As our cars become more connected — to the Internet, to wireless networks, with each other, and with our infrastructure — are they at risk of catastrophic cyber-attacks?”

According to Strickland, the fact that would-be hackers currently have to have physical access to an automobile in order to manipulate it electronics serves as a deterrent, but the trend is toward technologies that allow for remote access.  ”If there is a chance of it happening, we have to address it,” said Strickland.

The agency’s proactive approach to dealing with cyber threats may well be the result of lessons learned during Toyota’s multiple safety recalls dealing with unintended acceleration in 2010.

The average luxury automobile uses onboard computers with upwards of 100 million lines of code to control everything from braking and acceleration to climate control and entertainment.  According to University of Wisconsin industrial and systems engineering Professor John D. Lee, who also testified before the Senate Committee, electronics and software account for approximately 40 percent of some vehicle’s cost.

Strickland admitted that the NHTSA faces an uphill battle.  Speaking with reporters after the Senate Committee hearing, Strickland said, “Cyber security is hard. Even the best systems in the world can be compromised, as we have seen.”

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Consumers Open to More Advanced Automotive Technologies

Posted on May 15, 2013 by D. Williams

According to a new study by Cisco Systems, automakers are behind the curve when it comes to offering consumers the automotive technology they want.

One surprising revelation to come from the survey is the fact that consumers are far more comfortable with the idea of vehicles that drive themselves than is generally thought. About 60 percent of survey participants said they would consider purchasing a self-driving vehicle, however, only 48 percent said they were comfortable with the idea of their children being transported in one.

The study also found that consumers are highly skeptical of information they find on dealership and automaker Web sites.  Only about 25 percent of respondents said they trust factory and dealership Web sites to provide them with accurate information.

When it comes to shopping for new vehicles, about 50 percent of the survey participants said they have a higher degree of trust in information found on third-party sites, including Edmunds.com and KBB.com.

The results of the survey will no doubt be of concern to dealers who often spend a disproportional amount of their marketing dollars online.

Nearly 50 percent of participants in the survey said they would prefer shopping for, and even purchasing their next new vehicle through a third-party online site, or even a mall kiosk, than at a dealership. Although such kiosks are available in some areas, many states prohibit them because they violate franchise laws.

Approximately 75 percent of survey respondents said they are would not be opposed to automotive technologies that share information about their individual driving habits if it would help lower their maintenance costs and insurance premiums. About 66 percent said personal information including their height, weight and entertainment preferences, and 60 percent said they would go so far as to provide fingerprints and even DNA samples if doing so would result in improved vehicle safety and security.

The Cisco Customer Experience Report surveyed more than 1,500 consumers in 10 countries and focused on vehicle buying and driving preferences.

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Asian Automakers Dominate WardsAuto’s Annual List of 10 Best New Vehicle Interiors

Posted on May 14, 2013 by D. Williams

WardsAuto’s 2013 list of the 10 Best New Vehicle Interiors included an unprecedented number of Asian automakers as well as General Motors and Chrysler Group LLC’s Ram truck division.

WardsAuto’s executive editor Tom Murphy said the absence of German automakers was largely due to the fact that so few new German autos were introduced last year.

More surprising is the fact that Ford Motor Company failed to make the cut. Among the Ford vehicles eligible for inclusion were the highly successful Fusion mid-size sedan, the Escape compact crossover and the Lincoln MKZ mid-size, entry-level sedan. According to Murphy, “Some of Ford’s fit and finish problems were pretty severe.”

The ten winning vehicles were culled from 46 all-new and significantly upgraded sedans, SUVs, crossovers and light trucks over a three month period beginning last February. WardsAuto editors assessed the interiors on a number of factors including comfort, safety, quality of construction, fit and finish, and ergonomics, in real-world driving conditions.

World Editor-in-Chief Drew Winter said, “It wasn’t uncommon all that long ago for auto makers to view interiors as the best place to take cost out of a vehicle. They eventually figured out that’s a big mistake, because people spend a lot more time looking at the inside of their car than the outside.”

He went on to say, “This year’s batch of winners really drives home the point that interiors are a vital part of the battle for consumers’ hearts and minds.”

This year’s winners included the Acura RDX compact luxury SUV, the Hyundai Santa Fe Sport mid-size SUV, the Cadillac XTS luxury sedan, the Chevrolet Spark mini car, the Kia Forte compact sedan, the Lexus GS 450h luxury hybrid sedan, the Mazda6 full size sedan, the Nissan Pathfinder crossover, and the Toyota Avalon full-size sedan.

The Ram 1500 Laramie Longhorn was the only light truck to make the list, and WardsAuto hailed its interior as “incredibly stylish.”

With a sticker price of just $15,795, the inclusion of the Chevrolet Spark in the Top-10 list may seem somewhat surprising, but Murphy said, “The Chevrolet Spark is geared toward young buyers, but its design appealed to all ages, and it had a lot of nice features for a low price,”

This year’s winners will be profiled in the May issue of WardsAuto World magazine and on WardsAuto.com beginning on April 29.

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Infinity’s Aggressive Plan to Capture More of the Premium Auto Market

Posted on May 14, 2013 by D. Williams

Nissan Motor Co. will soon introduce a new top of the line halo nameplate for its Infiniti brand. The new model will supersede the Q70 sedan as the brand’s flagship model. Nissan will also grow its crossover lineup in the pursuit of higher market share, according to president Johan de Nysschen.

The goal, says Nysschen, is to capture 90 percent of the premium sales globally by the end of this decade. Nissan currently has about 60% of the premium market. He also says that Nissan has a new global sales target number: 600,000 units by 2020. Last year Nissan sold 170,000 units.

During a line off ceremony for the new Q50 sedan at the Infinity Tochigi plant, the Nissan president offered an idea of what the plans are for Infinity. “We will also in the future, introduce models above where the Q70 stops today; the Q70 being the former M. In our crossover range, we can imagine significant additions to that lineup as well.”

Nysschen predicts that expanding the lineup fully will take until the end of the decade. New models will include a new premium compact that will be manufactured beginning in 2015 at the Nissan Sunderland plant in the United Kingdom. There is also some speculation of a halo sports model inspired by the Infinity Essence or Emerg-E concept models, shown in 2009 and this year, respectively. If all goes well, says Nysschen, the 600,000 unit goal should be reachable in the next seven years.

Polishing the Infiniti image and building sales will only be possible through expansion of the lineup. The first step, according to Nysschen, is to make the brand more desirable. He says, “That is more important than just hitting the sales numbers.”

Infiniti’s profitability has been hindered in the past by the yen’s strength against the dollar and other foreign currencies due to export-dependent operations, but considering the current weakening of the yen, profits are expected to increase. Nysschen’s prediction is that by next year, Infiniti will be making “very useful profits” by 2014, and could even equal sister brand Nissan’s in that time in terms of percentage return on sales.

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Consumer Reports Joins Chorus Singing Praises of Tesla Model S

Posted on May 11, 2013 by D. Williams

Tesla Motors has a lot to feel good about lately. Earlier this year, the Tesla Model S was named the 2013 World Green Car of the Year. Last quarter was the Silicon Valley-based all-electric automaker’s first profitable quarter since its founding. Last week, Consumer Reports awarded the Tesla Model S all-electric sedan its highest rating and proclaimed that it is the best car the consumer advocacy publication has tested since it honored the Lexus 460L with a score of 99 in 2007.

The news, combined with a favorable earnings report on Wednesday, boosted Tesla’s stock, drove the automaker’s stock up 19 percent to $66.57 per share on Thursday.

Consumer Reports gave the Model S a nearly-perfect score of 99 out of 100, and scored higher than all other vehicles tested this year.

Earlier this year, the Model S was named Motor Trend’s Car of the Year, but the high marks it received from Consumer Reports is seen by many as a more valuable endorsement because of the publication’s long-standing reputation for honesty and unbiased reviews.

The Lexus 460L was the last vehicle to receive a Consumer Reports’ score of 99.

In a statement, Consumer Reports’ director of Automotive Testing Jake Fisher said, “The Tesla Model S is packed with technological innovation. It accelerates, handles and brakes like a sports car, it has the ride and quietness of a luxury car and is far more energy efficient than the best hybrid cars.”

Consumer Reports was also impressed by the Model S’ handling which it said was on par with Porsche’s. It also compared the interior to the “beautifully-crafted interior” to the interiors found in Audis.

In terms of efficiency, the Model S tested by Consumer Reports had a range of 200 miles on a single charge, which outperformed the 75 or 80 miles per charge found in most other all-electric vehicles. When divided by approximately $9.00 to fully charge the Model S’ lithium-ion battery pack, that’s the equivalent of $1.20 per gallon gasoline.

Consumer Reports pointed out limited rear visibility and a lengthy charging time as flaws that prevented the Model S from receiving a perfect score of 100.

The full review will be featured in Consumer Reports’ July issue.

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Consumer Financial Protection Bureau Broadens its Investigation into Auto Financing

Posted on May 10, 2013 by D. Williams

According to a recent Wall Street Journal report, the Consumer Financial Protection Bureau (CFPB) has expanded its investigation into the car loan industry and subpoenaed auto lenders over concerns about some of their financial products, including extended warranties and additional insurance.

During a February 20 Consumer Advisory Board meeting, CFPB Director Richard Cordray said, “From the perspective of the consumer disadvantaged by policies that have a discriminatory effect, it makes no difference whether a lender consciously intended to discriminate.”

The bureau, which was created as part of the 2010 Dodd-Frank financial law, reportedly has additional concerns about whether or not some lenders are offering full disclosure with regard to the loan terms and prices being offered to consumers.

The bureau’s deputy chief of housing and civil-enforcement, Jon Seward, was quoted as saying that the Justice Department will also be investigating auto dealers who offer high-interest loans to consumers with subpar credit ratings.

In a separate interview Seward said, “In response to a question about abusive practices associated with buy-here, pay-here dealerships, I responded that DOJ was focused on such issues, but that nothing was public at this time.”

Last March, the Consumer Financial Protection Bureau issued a warning to dealerships who offer high-interest auto loans on the grounds that such arrangements unfairly target certain minority groups.  Based on its research, the bureau claims that auto dealerships frequently markup loans they make to Hispanics and African-Americans.

Under the Dodd-Frank law, the Consumer Financial Protection Bureau was granted authority over home mortgage lenders, credit card companies and auto lenders. It has not yet announced whether or not automakers’ financing divisions will be included in the probe.

The Dodd-Frank legislation does not give the bureau jurisdiction over franchised auto dealers who arrange third-party financing for their customers. It does, however, have jurisdiction over dealerships that offer in-house financing.

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Springtime Spruce-up for Your Car

Posted on May 3, 2013 by tinalovejoy

Less is more. Minimalism can be stunningly beautiful in fashion and design. In terms of car maintenance, I use it as an excuse.

“Less is more,” I justify when it’s time for new wiper blades or when the tires could use some more air. “My car is low maintenance. It can hold off for awhile and be no worse for wear.” Denial, anyone?

It’s time to be proactive. It’s time to turn over a new leaf. It’s time to bring my car in for a spring check-up. After those windblown, salt strewn winter months our cars need a little TLC. Consistent maintenance now leads to longer life for the car and potentially better trade-in value later.

When either checking it yourself (kudos to you, I’m not there yet) or bringing it in to your mechanic, here are a few things to focus on:

  1. Battery – Winters are hard on starters. If your battery is over three years old be especially vigilant. If you have gutless power windows or weak headlights, these may be signs of a fading battery.
  2. Belts and hoses – Look out for peeling, cracking, fraying or softening. If any of those are visible that part may need to be replaced immediately.
  3. Fluids – Oil, coolant, transmission, brake, power steering & windshield fluids need to be checked.
  4. Tires – Air pressure and tread. If there is uneven wear you’ll need an alignment.

Here are a few maintenance issues you can definitely tackle yourself:

  • Wash and wax – Household dish detergent can strip the wax finish off a car so choose a cleanser that is auto specific. Applying a coat of wax twice a year will help protect your vehicle from grit, grime and UV rays.
  • Salt – It can eat through your exterior paint. Bring it to a carwash and give it a thorough undercarriage wash.
  • Conditioner – For leather upholstery use a leather conditioning product such as Pinnacle or Lexol which both have a balanced ph and won’t be too harsh. Turning the heater on in the car for a few minutes before you condition the seats will help the leather to be more receptive to the conditioner and you’ll have a better overall result. (Make sure the garage door is open and the space is well ventilated.) Revitalize weary plastic, vinyl or rubber with an interior surface conditioner as well.

After you’ve checked these car maintenance issues off your list, go out and enjoy this gorgeous time of year.

What are other spring maintenance tips you can recommend?

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2014 Corvette Stingray – Performance and Features at a Competitive Price

Posted on April 30, 2013 by D. Williams

The 2014 Chevrolet Corvette Stingray coupe will have a base sticker price of $51,995, including destination charges, when it goes on sale late this summer or early fall. That’s about a $1,400 increase from the base price for the 2013 model.  Chevrolet performance cars marketing manager John Fitzpatrick, the convertible model will be priced at $56,995 including a destination charge of $995.

Among the standard features will be an automatic drive mode selector and a Chevy MyLink enabled, 8-inch touch screen infotainment center.

The base model will ride on an aluminum frame and will be powered by GM’s new 6.2-liter, 8-cylinder, 450 horsepower small-block engine paired with a seven-speed manual transmission. GM says the standard package will deliver 450 pound feet of torque and approximately 26 mpg. An optional six-speed paddle shift automatic transmission will also be available.

Fitzpatrick said a fully loaded model will price out at between $75,000 and $80,000.

According to General Motors, the gray production model that was on display at the Detroit Auto Show last January would have a sticker price of $73,360. IN addition to the $8,000 3LT interior package, the vehicle featured a bevy of upscale options including a 10-speaker Bose sound system, a GPS navigation system and Napa leather seating, as well as the Z51 performance package valued at $2,800. The performance package features 19’ front and 20’ rear wheels, a magnetic ride control system and a transmission cooling system.

Fitzpatrick thinks consumers will be pleasantly surprised by the modest price increase of the 2014 model. He says most people “automatically assumed that we were doubling the price of the current car” after viewing the production model on display at the Detroit Auto Show. “We tried to assure them we recognize that part of the magic of Corvette is the way we deliver more than was expected,” he said.

In a statement, Chevrolet’s vice president of marketing Chris Perry said, “The Corvette Stingray delivers a combination of performance, design and technology that very few manufacturers can match, and none can even come close for $52,000.”

GM plans be start production of the 2014 Corvette Stingray this summer at its Bowling Green, Kentucky facilities.

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2014 Chevy Impala Offers New Features and Style

Posted on April 30, 2013 by D. Williams

The verdict is in: the new 2014 Chevy Impala has improved leaps and bounds ahead of the model available on the market for the last ten years or so. The new Impala recalls that 50’s-60’s retro style that made it so popular, with long, sleek lines and a newly designed badge. The new interior competes easily with luxury vehicles.

Complaints about the 2013 model are mainly about the “old” styling and platform and less than cutting-edge technology. On the plus side, Impala has always offered maximum space for the money.

The new Impala 2014 LS will start at $27,725, which includes a 196-horsepower 2.5-liter four cylinder engine. The V6 starts at $29,950 with a 305-hp 3.6 liter engine. On the high end is the LTZ, which starts at $35,770. Chevy’s already planning on a hybrid Eco model, the details of which are not yet available.

Although the new Impala is loaded with new features and comforts to please any buyer, the V6 is predicted to be more expensive to fuel than its competitors. It does offer up more power, but the fuel economy rated 19 mpg city, 29 highway and 22 combined when tested by the EPA. The only vehicle rating lower in the segment is the Nissan Maxima. The V6 Passat is predicted to be more expensive to fuel also; both the Maxima and the Passat require premium gasoline.

The positives definitely outrank the negatives (some trim misalignments and the fuel economy). The 2014 Impala is very comfortable and spacious with a 105 cubic-foot passenger compartment and an 18.9 cubic-foot trunk. The controls are clearly marked, simple and easy to use. There is a large touch screen with complimenting buttons and dials and an excellent voice recognition system for phone, audio and navigation purposes. There is ample storage throughout the vehicle including various hidden cubbies and a lockable compartment behind the touch screen.

The ride is comfortable with minimal engine and road noise, even with the optional 20 inch tires. The suspension maintains stability during quick maneuvering. The steering is responsive. Body roll, squat and dive are barely noticeable.

All in all, the new Impala needs some work in the areas of fuel economy and the trim, but is overall a vast improvement over the recently offered models and a return to the attractive styling and comfort that Impala meant years ago.

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Lincoln MKZ Buyers Finally Taking Delivery After Months of Delays

Posted on April 30, 2013 by D. Williams

Last December Ford Motor Company sold its Jaguar, Land Rover, Volvo and Aston Martin brands and made Lincoln Motor Company the sole focus of its luxury car efforts.  The 2013 Lincoln MKZ is the culmination of those efforts which have not been without their setbacks.

The much-touted launch of the MKZ has been plagued by delays but the automaker says there are finally about 10,000 of the flagship models in dealer showrooms across the country.

Executive Vice President of Global Marketing, Sales and Service and Lincoln Motor Company Jim Farley says, “People like the car, and it’s bringing in new customers”, but getting prospective buyers into showrooms is just the first step. Ford and its dealers have already invested hundreds of millions of dollars to reposition Lincoln to compete with the likes of Mercedes-Benz and Lexus.

Rebel Three Media analyst Rebecca Lindland thinks Lincoln is off to a good start despite the glitches it encountered during the re-launch. “There’s promise and potential” says Lindland. “The question is whether Lincoln can execute”

A big part of that potential is the Lincoln MKZ Hybrid model which gets an impressive EPA estimated 45 mpg.

Marketing consultant Gordon Wagners says, “The hybrid’s a real winner. It says a lot about technology and what’s new about Lincoln. They need to demonstrate the hybrid everywhere and all the time. That needs to be the statement the brand makes to customers and the media.”

Unfortunately, Ford underestimated the demand for the hybrid model and customers who placed orders as far back as last October are just now taking delivery.

The Detroit Free Press recently quoted an unidentified Lincoln dealership executive who said, “It’s better to under-promise and over-deliver. That’s the No. 1 lesson of the MKZ. You should have thousands of cars at the dealerships before you start advertising.”

In addition to the delay, some customers have expressed frustration over Lincoln’s failure to keep them informed as they’ve waited to take delivery of their new MKZs.

Farley has acknowledged Lincoln’s failure in the area of communications. He says, “Our dealer council is asking us to improve. They say, ‘Just tell us what’s going on.’” He quickly added, “We have learned a lot about how to prepare for the second new product.”

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