Monday, September 5, 2011
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Carmakers report surprisingly strong August sales By Dee-Ann Durbin and Tom Krisher The Associated Press
Fears that car buyers would stay away from dealerships in August never materialized. Instead, Americans were lured by new models, cheaper financing and the need to replace aging cars. As a result, August sales rose 7.5 percent compared with the same month last year, according to Autodata Corp. Most major automakers reported healthy sales increases in August, led by Chrysler with a 31 percent jump. Toyota and Honda saw double-digit declines as they continued to struggle with earthquake-
related car shortages. Results were better than expected. Some analysts thought that the volatile stock market and Hurricane Irene would hurt sales. While it was easy for carmakers to do better than last year, which was the worst August for the industry since a double-dip recession in 1983, the results were also a sign that sales could pick up speed after a disappointing summer of little or no growth. “Consumers are inching back into buying items and some bigticket purchases,� says Paul Ballew, a former GM chief economist who now works for Nationwide Insurance. He attributed the sales increase
to people replacing aging vehicles, record-low loan rates of less than 4 percent for customers with good credit, and high trade-in values for used cars. Car loans carried more than 6 percent interest just three years ago. People also are driving their cars longer than before the recession. The average age of a car in the United States was almost 11 years in July, according to the Polk research firm. If sales stayed at August’s pace, they would end the year at 12.1 million. That’s better than the 11.6 million last year, but still far below the 17 million in 2005. See AUTO SALES, Page 2
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A 2011 Jeep Grand Cherokee, right, is on display at a car dealership in San Jose, Calif. Chrysler Group’s 31 percent sales increase in August was well above the industry average for the month.
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Page 2 / Monday, September 5, 2011
Tallahassee Democrat / OnTheMOve
Ford makes play for younger drivers by supplying Zipcar By Greg Gardner Detroit Free Press
DETROIT — By supplying up to 1,000 cars to Zipcar Inc., whose members rent cars on an hourly basis, Ford Motor Co. is making a move to reach a new and growing generation of younger buyers who may not want to buy a car — at least not now. “The love affair with the automobile that drove generations to buy a car as soon as they turned 16 is just not showing up with this millennial generation,” said Robert Parker, Ford marketing manager. While many may remember a day when teenagers couldn’t wait to get their license, the percentage of 16-year-olds with a driver’s license has steadily declined in the past two decades. Ford is now the only Detroit automaker to partner with Zipcar. Two years ago Executive Chairman Bill Ford, who pushed the Zipcar deal, said, “the future of transportation will be a blend of things like Zipcar, public transportation and private car ownership.” With this deal, Ford vehicles such as the Focus and Escape will eventually make up about 10 percent of Zipcar’s fleet. With 605,000 members, the 24/7 hourly rental service
Auto Sales From Page 1
Because they have cut staff and factories since the recession, automakers are turning profits at the lower sales levels. But they’re still hoping for a better autumn, as supplies of Japanese cars get back to normal and new cars such as the redesigned Toyota Camry go on sale. Even Irene could boost sales, as people whose cars
is on more than 250 college campuses. Zipcar lost $11.7 million in the first half of the year, but its sales grew 40 percent to $110.7 million from a year earlier. Expanding its relationship with Zipcar allows Ford to reach potential younger buyers and bet that a stillunprofitable upstart in the growing car-sharing market can fend off larger and much better-funded rivals. The two-year partnership gives Ford access to more than 250 college campuses and younger urban dwellers who only want cars when they need them. Zipcar’s largest markets are New York, Chicago, San Francisco and Washington, D.C., areas where Asian and European automakers have larger markets. There is growing evidence that younger consumers, especially those in college towns and large cities, are delaying purchases of new vehicles. “Twenty-somethings are growing up in a period of considerable economic insecurity. They’re seeing their parents holding on to vehicles longer than they used to and facing challenges to finding jobs themselves,” said Jesse Toprak, an analyst with TrueCar.com. Americans scrapped 2.1 million more vehicles than they replaced since 2008,
were damaged or destroyed look for new ones. Jesse Toprak, vice president of industry trends and insights for the car pricing site TrueCar.com, says the hurricane cost automakers about 5,000 sales in the last weekend of August, but he expects them to be made up later. GM says it will offer $500 to car buyers in major disaster areas and let those buyers defer payments for 90 days. Chrysler Group’s sales jump was due to strong demand for Jeeps and min-
R.L. Polk reported earlier this year. Such data is leading industry leaders to won-
der if American consumers will buy 16 million new cars and trucks a year — the
average annual U.S. industry volume in the decade leading up to the 2008 financial crisis — in the foreseeable future. While General Motors and Chrysler sell cars that may be offered through Connect by Hertz, Enterprise’s WeCar or other car-sharing ventures launched by traditional rental companies, Ford is betting on Zipcar, partly because it was first and partly because it has created a culture — such as calling its members “Zipsters” — that Ford regards as receptive to both the cars and in-vehicle communications technology such as Sync. Among the schools where Zipcar has vehicles are Harvard University, Yale University, the Massachusetts Institute of Technology, Stanford University, the University of Southern California, the University of California-Berkeley and George Washington University. “Zipcar has been around for more than a decade. They are on more than 250 college campuses, and these include very influential schools,” said Robert Parker, Ford group marketing manager. “These are the next generation of leaders.” Parker said the vast majority of the cars Ford sells to Zipcar over the next two years will be Focuses, although it could include
ivans. General Motors Co.’s sales rose 18 percent, led by the new Chevrolet Cruze small car, which accounted for one in every 10 GM vehicles sold. Buyers also went for the Chevrolet Equinox and GMC Terrain small crossovers. New models also boosted Ford Motor Co.’s sales, which rose 11 percent on the strength of the Ford Explorer SUV and Ford Fiesta subcompact. But Toyota Motor Corp.’s sales fell almost 13 percent, while Honda Motor Co.’s
sales slid 24 percent. Dealers are still short on many top-selling models such as the Honda Civic. Randy Pflughaupt, Toyota’s vice president of sales administration, says all of Toyota’s North American plants will be fully operational this month and will crank up production with overtime and extra shifts. But supplies won’t be completely back to normal levels until next year. The industry remains wary. The unemployment rate is stuck at 9 percent,
food and clothing costs are going up and consumer confidence dropped to its lowest level in more than two years in August. But August sales indicated things are on the right track, barring further bad economic news. “Consumers are being cautious, yes, and appropriately so, but they are not retrenching,” says GM’s U.S. sales chief Don Johnson. “All indications to us are that the industry is going to continue to slowly grow through the rest of the year.” Other automakers report-
Zipcar.com, craig ruttle/associated press files
In this April 14 photo, Zipcar Chairman and CEO Scott Griffith sits in a Zipcar model before the opening bell at the NASDAQ Market site in New York. Ford Motor Co. is supplying up to 1,000 cars to Zipcar, the company that rents cars on an hourly basis.
additional Escapes, which Ford has supplied to the carsharing company for the last few years. He expects Zipsters will log about 1 million hours behind the wheel of the Focuses over the next two years. Zipcar accounts for 50 percent of the car-sharing market in the U.S. and Canada, but Hertz and Avis Budget are coming on strong. Ford’s long relationships with those customers provide a hedge if the Zipcar deal doesn’t pan out. Most services involve a membership fee and an hourly rate. Some insurance is provided, but deductibles vary among competitors. Zipcar pays for gas, but members are expected to fill up when they return the vehicles. Ford and Zipcar will offer $10 off the annual membership fee ($35 or $25 depending on location) for the first 100,000 new university students members who sign up, plus $1 off the hourly rate for the first 1 million hours of use on any of the new Ford vehicles at select colleges and universities. Zipcar rates can range from about $7.50 an hour from Monday through Thursday and $14 an hour from Friday through Sunday, while Hertz and Avis are offering more discounted prices in many markets.
ing Thursday: n Nissan said sales were up 19 percent on demand for the Altima midsize sedan as well as the newly redesigned Versa subcompact. n Hyundai Motor Co. said sales rose 9 percent. Sales of the new Accent small car were up 37 percent. n Kia Motors said sales were up 27 percent, on demand for the new Sorento crossover. n Volkswagen AG said sales were up 10 percent on strong demand for the new Jetta sedan.
Monday, September 5, 2011 / Page 3
OnTheMOve / Tallahassee Democrat
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Page 4 / Monday, September 5, 2011
Tallahassee Democrat / OnTheMOve
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OnTheMOve / Tallahassee Democrat
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Page 6 / Monday, September 5, 2011
Tallahassee Democrat / OnTheMOve
Mercedes-Benz redesigns its SLK350 roadster By David Undercoffler Los Angeles Times
The Mercedes-Benz SLK is and always has been the pied-a-terre of the company’s lineup. Since its inception in 1996, this two-seat, hardtop convertible has been a smaller, less practical place than one’s main residence. It was good for little more than a languid weekend with one’s spouse or perhaps a means of rewarding a mistress or offspring still attached to your purse or heartstrings. For 2012, Mercedes remodeled its bantam roadster to such a degree that Ty Pennington would be proud. The resulting SLK350 is an impeccably well-rounded package that asserts its sportiness rather than merely hinting at it. This effort is a little overdue. Previous SLKs had a petite curvaceousness that foretold a leisurely demeanor rather than a sporty one. Driving enthusiasts noticed and demurred in favor of more masculine competitors like the Porsche Boxster and BMW Z4, models that could eat the SLK’s lunch when it came to aggressive driving. Meanwhile, the Mercedes provided only a bit more in the way of unique features or
luxury to compensate. This 2012 SLK drives with an eager tenacity that could lure back a few of those buyers, while heaping on the style and luxury the marque is known for. At the core of this SLK is a potent 3.5-liter V-6 engine that puts out 302 horsepower and 273 pound-feet of torque. Mercedes says th is 3,400-pound roadster will do 0 to 60 in 5.4 seconds; such acceleration practices reveal a positively sonorous engine as it climbs to a 6,800 rpm redline. Yet it’s quiet enough during regular driving so as not to bother the car’s occupants. Unfortunately the same can’t be said for the SLK’s intrusive exhaust system. Top up or down, even the slightest squeeze on the gas causes a raspy sound to dominate the cabin. I’m all for spirited sensory feedback from a sports car, especially under hard acceleration, but having the equivalent of someone humming, open-mouthed, over your shoulder while you drive is rarely appreciated. This intrusion aside, the rest of the SLK’s driving characteristics are appreciable. Complementing the engine
at a gLance
2012 MeRceDeS BenZ SLK350 Base price: $55,675 (including destination charge) Price as tested: $63,325 Powertrain: 3.5-liter, DOHC, 24-valve V-6 engine with direct injection; seven-speed automatic transmission with sport and manual mode and paddle shifters Maximum horsepower: 302 at 6,500 rpm Maximum torque: 273 pound-feet at 3,500 rpm curb weight: 3,397 pounds Wheelbase: 95.7 inches Overall length: 162.8 inches 0 to 60: 5.4 seconds ePa estimated fuel economy: 20 mpg city/29 mpg highway Final thought: Party in your pied-a-terre
nicely and making its power available to the rear wheels is a seven-speed automatic transmission. Its shifts are succinct whether they’re chosen by the car or the driver, who has the option of shifting manually with the shifter or with the steering wheelmounted paddle shifters. The transmission has three modes, the default setting being Eco. Though this term is often synonymous with laggard, sacrificed performance, in this application the Eco mode should really just be regarded as normal. Sport and Manual modes are the other two options, though beware that in Manual the transmission will shift when it sees fit, even if you haven’t
asked it to. The transmission certainly is an efficient unit, though. During more than 600 miles of mostly freeway testing, I averaged 26.1 miles per gallon. The Environmental Protection Agency rates the car at 20 mpg in the city, 29 on the highway. On the road, the SLK’s chassis refuses to wiggle with the power top up. But stow it and hit the bumps and you will feel the flex, however furtive, that often plagues convertibles. Otherwise, the car’s steering and suspension are nicely balanced and provide a dynamic level of feedback that inspires confidence. Overreach your skill level, and the standard traction
control reigns you in subtly. Should you really step out of line, wonderfully firm disc brakes are able to briskly stop the car. All told, handling on the 2012 SLK is more rapacious than its forebears, but a BMW Z4 or Porsche Boxster will likely still out-dance it. Regardless, at least your dance partner looks better than it ever has. With this iteration, Mercedes wisely avoided the temptation to rely on design gimmicks to make this roadster look like a smaller version of its current supercar, as the company did with the previous SLK. Instead, the SLK’s design is straightforward with a handsomeness born out of more hard edges and sharp lines. It has the proportions of its bigger brother, the SL, just one that shrank in the wash. Admittedly, the car looks better with the power top folded into the trunk, an operation that takes less than 20 seconds. With the top up, the car’s sleek roofline looks curt and almost too small for the rest of the car. The trunk itself can hold a pair of carry-on suitcases and an overnight bag with the top up, or one of each with it stowed.
The inside of the SLK drips with class and elegance. This is an interior that will age far better than many of its occupants. Brushed metal trim conveys this grace, and it’s mixed with polished wood and minimal black plastic throughout the dashboard, flat-bottomed steering wheel and cabin. It’s nice to see Mercedes’ interior return to a worldclass status, but the company doesn’t do it on execution alone. The SLK is available with innovative features like the Airscarf ventilation system that will cycle warm air through a vent at the bottom of the headrest for topless motoring on chillier days. Also available as a pricey $2,500 option is a panorama sunroof that uses an electric current to switch the fixed glass panel from transparent to opaque at the touch of a button. My tester, which came in a shade of lipstickred fit for Liz Taylor’s Gloria Wandrous, didn’t have this feature, though it did have a fixed-transparency glass roof as a $500 option. All SLKs come with a fouryear, 50,000-mile warranty, eight airbags, four-wheel disc brakes with automatic brake drying and brake assist; and stability control.
Losing a few pounds of body fat might save a few gallons By Larry Printz The Virginian-Pilot
If you find yourself making lots of road trips, the high price of gasoline is sure to put a dent in your travel budget. Of course, we have all heard of ways to boost the fuel economy of our cars and trucks: Avoid abrupt starts and stops, drive no faster than 60 mph and get rid of excess weight in cars. They’re helpful suggestions, no doubt.
But it’s that last part — get rid of excess weight — that’s easy to do, and it goes beyond merely emptying the junk in the trunk. What if I told you that losing weight can increase your fuel economy? This seems obvious, once you think about it. After all, the more a car and its occupants weigh, the more fuel needed to move it. But how much more may surprise you. According to a 2006 study by Virginia Commonwealth
University and the University of Illinois, the United States consumes an extra billion gallons of gasoline annually due to obesity. And for each pound on average that we gain as a nation, an estimated 39 million gallons of additional fuel are needed to cart us around. Given that two-thirds of Americans are overweight or obese, that’s fuel for thought. Adults who have a body mass index of 30 or higher are considered obese; 25 to 29.9 is
considered overweight. To figure out your BMI, you’ll need to crack out the calculator. Multiply your height in inches by your height in inches. Now divide your weight by that number. Then, multiply that answer by 703. D epresse d? It gets worse. According to a study by the CDC, as weight increases, seat belt use decreases. Their study found that only 70 percent of extremely obese people say that they
always wear a seat belt, compared with 83 percent of normal-weight people. It’s little wonder larger folks find seat belts uncomfortable. Federal safety standards state that seat belts only need accommodate a 215-pound man. But should a severe car crash occur, a moderately obese driver faces a 21 percent increased risk of death, while the morbidly obese face a 56 percent increased risk of dying, according to a study in the American Journal of
Emergency Medicine. But if you think being skinny will save you, it won’t. The same study found that normal-weight drivers are more likely to die in a severe crash than slightly overweight drivers — those with a BMI of 25 to 29.9. Hmm. Maybe I need to gain a few pounds, just to be safe. — Larry Printz is automotive editor at The Virginian-Pilot in Norfolk, Va. He can be reached at larry.printzpilotonline.com.
Monday, September 5, 2011 / Page 7
OnTheMOve / Tallahassee Democrat
Classic American cars still running in Cuba By Ellen Creager Detroit Free Press
VINALES, Cuba — The 1955 Dodge has a 2-liter bottle strapped to the drivers’ side door frame, with a hose leading from the bottle to a hole in the hood. It is the gas tank. And it works. Although the aqua car’s interior is stripped, owner Obel Aguado still drives it to work at the Los Jazmines viewpoint snack bar. “He’s going to put a Bulgarian diesel engine in it,” said another man proudly. “He has a lot of work to do.” While Americans buy cars on a whim, Cubans — who cannot buy, sell or trade vehicles made after 1959 — have turned genius to keep their old Detroit cars alive. “The automotive history community should realize that Cuba’s achievement with that fleet is one of the most important achievements in automotive history,” said Rick Schnitzler, co-founder of TailLight Diplomacy, a Philadelphia group that monitors the state of classic autos in Cuba. Nobody knows how many classic American cars remain in Cuba. A Cuban would tell you 170,000, but auto watchers put the number at more like 20,000 to 50,000. Most date from the 1950s, especially the sturdy 1952 Chev-
EllEn CrEagEr/DEtroit FrEE PrEss
Walfrido Cabezas and his 1956 Chrysler DeSoto Diplomat, outside the Hotel Nacional, Havana, Cuba. Nobody knows how many classic American cars remain in Cuba. Auto watchers put the number at 20,000 to 50,000, most dating from the 1950s. rolets. Many are used as taxis or tourist cars. The 50-year-old U.S. trade embargo prevents American auto companies or parts suppliers from doing business with Cuba. That didn’t matter much in 1961. But now it’s half a century later, and these cars need work. “Sometimes you see a pile of rust on four tires, and you’re thinking, how can that thing even move?” said John McElroy of Auto-
line Detroit, who has been to Cuba. “I saw people who were making their own brake fluid, using sap from a bush and mineral spirits.” Cuba is full of do-it-yourself mechanics, using whatever they can dig up to keep their cars running. Despite the embargo — started after Fidel Castro’s 1959 revolution — the Obama administration could make rules allowing U.S. aftermarket auto parts into Cuba, said Jake Colvin, vice president
of global trade issues for the National Foreign Trade Council in Washington, D.C. “Wouldn’t that be great, to allow mechanics and old car buffs to go down there with parts under a people-topeople visit?” he said.
China fills void
China, which is Cuba’s second largest trading partner after Venezuela, has supplied thousands of new buses on the roads, built by Zhengzhou Yutong Group. Police
cars in Havana are Chinesemade Geely CKs. Rental cars and government cars also are Geely, which has an office in Havana. Geely has exported more than 5,000 cars to Cuba since 2008. China did $1.8 billion in trade with Cuba last year overall. While U.S. automakers sit on the sidelines, Chinese automakers are making inroads into the nation of 11 million. “China knows what it’s doing. But do we?” Schnitzler said. Colvin said any car with U.S.-made content cannot be exported to Cuba, so Canadian-made vehicles can’t be sent there, even though Canada is a trading partner with Cuba. Other nations also are fearful of angering the United States by making a deal with Cuba to provide cars, he said. General Motors, the most famous car brand in Cuba, isn’t pushing for change, either. “We do not have any lobbying efforts relating to the trade embargo against Cuba,” said spokeswoman Ryndee Carney. Visitors see a lot of cars on Cuba’s roads. In addition to Chinese-made models, you’ll see South Koreanmade Kias and Hyundais as well as European cars like Volkswagens. Most cars belong to the government. Those with yellow license
plates are privately owned, mainly old American cars and a few limping Russian Ladas from the 1970s. For now, old cars are still the citizens’ cars. Havana taxi driver Walfrido Cabezas cherishes his red Chrysler DeSoto Diplomat from 1956. “It was the best year for this car,” he said, with the assurance of a man who can identify old Detroit steel at 100 paces. Because he can’t get authentic parts and to save fuel, the DeSoto has a 2-liter Toyota engine in it.
Keeping cars running
Early next year, Cuban authorities plan to loosen restrictions and make it easier for private citizens to buy or sell modern cars. That sounds good, but there still will be no private car dealerships. The government still will control supply. Most Cubans could not afford a new car. Still, “you can be sure this is a huge change for Cuba,” said William Burrowes, a Havana tour guide. Eventually, the change should mean fewer old cars on the road and more new Chinese, Korean and European vehicles. And if the economy really opens up, “the old cars will disappear in no time,” said McElroy.
How do they determine gas mileage on a car that uses none? By Steven Cole Smith McClatchy-Tribune News Service
QU E ST ION: I just returned from vacation, where I visited a friend who has a new Nissan Leaf electric car. She said that the EPA-rated mileage is 106 mpg city, 92 mpg highway. We don’t understand how they arrive at this rating for an electric car that uses no
liquid fuel at all. —Lee Grace, West Palm Beach ANSWER: I agree, it is awkward, but the EPA is trying to relate the operating cost of an electric car to a gas-powered car. For electric vehicles, miles per gallon represents the number of miles that can be traveled using an amount of electricity equivalent to the amount
of energy contained in a gallon of pure gasoline. In the Leaf’s case, the EPA says the electric car should use $561 worth of fuel in an average year, based on 45 percent highway driving, 55 percent city driving, going 15,000 miles at a fuel cost of 11 cents per kilowatt-hour. Using that calculation — and a $3.72 per gallon of gasoline equivalent — the EPA calcu-
lates the mileage. Q: With all the technology and safety features in today’s car, why isn’t there a warning message to let us know when a headlight, parking light, brake light, taillight, daytime running light and possibly a directional signal is burned out, and which one it is? If the technology is available to tell us when a tire is low on air with a mes-
sage on the dashboard, certainly we should be told when a light burns out. —David Jaspan, Tamarac. A: Good point, David. I have driven some very highend cars with that sort of self-diagnostic capability, and hopefully it will trickle down to affordable models soon. But you know why all new vehicles have a tire
pressure monitoring system? Because the federal government mandated it on cars from 2008 and newer after the SUV-rollover problems several years earlier. Maybe it will take a mandate to get lights-out monitors. —Steven Cole Smith is the automotive editor at the Orlando Sentinel. Send questions to scsmithorlandosentinel.com
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