On the Move

Monday, August 29, 2011

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Carmakers’ rebound is driving jobs in US

By Jerry Hirsch Los Angeles Times

LOS ANGELES — Taxpayers bailed out much of the U.S. auto industry. Now the carmakers might be what saves the nation’s economy from falling back into recession.

After a massive restructuring and several high-profile bankruptcies, a leaner, more aggressive auto industry is making a comeback, hiring workers and ramping up manufacturing plants.

From a trough two years ago, Ford Motor Co., General Motors Co., Chrysler

Group and other auto companies have added almost 90,000 manufacturing jobs, a 14 percent increase, according to federal employment data.

Job growth in Michigan, which was devastated by the downturn, is even more robust. That’s why Michigan’s jobless rate stood at 10.9 percent in July, well below the 12 percent rate of California.

And it’s not just the Big Three American manufacturers that are thriving. Nissan, VW and other foreignbased firms are expanding

in the United States, putting billions of dollars into building and refurbishing plants.

Start-ups Tesla Motors in Palo Alto, Calif.; Fisker Automotive in Anaheim, Calif.; and Coda Automotive in Los Angeles are hiring and spending hundreds of millions of dollars designing and launching electric and hybrid vehicles.

Dealers are having a banner year, making more money per sale than they have in years and hiring back some workers shed during the recession.

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ing up. As we get into next year, this all depends on the state of the consumer,” said Gary Schlossberg, senior economist at Wells Capital Management.

Auto sales peaked at about 17 million in 2000 and held near that level until 2007 before crashing to just 10.4 million two years later. They were heading back into the 13-million range — helped by a wave of new models, low interest rates and improving consumer confidence — only to be upended by the Japa-

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manufacturing economy last month.

This kind of expansion is important to the economy.

Including factories, suppliers and dealers, the U.S. auto industry employs about 1.7 million workers and supports an additional 6.3 million private-sector jobs, according to the Center for Automotive Research in Ann Arbor, Mich. The center said those positions represent more than $500 billion in annual compensation and more than $70 billion in personal tax revenue.

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ens of employees for sales and sales support,” said Mike Bowsher, who owns Chevrolet and Buick dealerships in Atlanta; Nashville, Tenn.; and Orlando. “The economy is crazy, but our retail business is still growing and getting better.”

The Commerce Department said Wednesday that orders for autos and auto parts jumped 11.5 percent in July, the most in eight years. That followed an earlier government report on industrial production that showed the auto industry was the strongest segment of the

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Page 2 / Monday, August 29, 2011

Tallahassee Democrat / OnTheMOve

Toyota debuts new Camry amid tough competition

By Dee-Ann Durbin The Associated Press

DEARBORN, Mich. — The Toyota Camry has been the best-selling car in America for nearly 15 years, its reputation for reliability keeping it on top even when the carmaker was hurt by major safety recalls.

But its lead has shrunk dramatically. Feeling the pressure, Toyota unveiled the 2012 Camry on Tuesday, its first redesign of the sedan in five years.

While Toyota hopes to create buzz by lowering the Camry’s price, improving its fuel economy and adding new features, it may not be enough to keep the Camry No. 1 in the increasingly competitive market for midsize sedans.

“The Camry is not a slamdunk by itself anymore,” says Jesse Toprak, vice president of industry trends and insights for car pricing site TrueCar.com.

Toyota showed off the new Camry on the Web and at events in California and elsewhere. It has given the car a sharper, more pointed hood, a quieter and roomier interior and more trunk space. It’s also offering Entune, a system that lets drivers access internet services like Pandora from their mobile phones using voice commands or an indash touch screen.

But critics say the styling is bland compared with edgier rivals like Nissan, Hyundai and Kia, and that Toyota saved money by using cheaper interior materials.

“There’s nothing fundamentally wrong with it, but is that good enough nowadays? No, it’s not,” Toprak says.

The new Camry is due to arrive at dealerships in early October. A basic version will cost just under $22,000 and get 35 mpg on the highway.

Toyota has sold more than 15 million Camrys worldwide since it introduced the car in 1983 to compete with

The AssociATed Press

Akio Toyoda, left, president and CEO of Toyota Motor Corporation, spoke during a webcast on Tuesday during the unveiling of the 2012 Camry at the Toyota plant in Georgetown, Ky. Toyota introduced the latest generation of the Camry at the Georgetown plant Tuesday. Toyoda drove the car off the line to the applause of assembly line workers who had gathered for the webcast. the Honda Accord. It quickly became a big seller in the U.S. because of its reputation for reliability and good gas mileage. The Camry outsold the Ford Taurus in 1997 and has been the best-selling car in America every year except for 2001, when it was eclipsed by the Accord.

Even Toyota’s embarrassing series of safety recalls last year and earthquake-related shortages this spring didn’t knock it down from No.1.

Toyota’s U.S. sales chief Bob Carter says the company aims to keep things that way, in part by being aggressive on price.

A basic Camry will now start at $21,955, which is $710 more than the current model. But most other versions will cost less than current ones. The top-of-the-line version, for example, will start at $24,725, or $2,000

The AssociATed Press

The entertainment system called Entune is shown in a 2012 Toyota Camry, which lets drivers connect to mobile applications during a news conference in Dearborn, Mich., on Tuesday. While it promises new technology and other upgrades, America’s best-selling car faces a fight to stay on top with its first redesign of the Camry in five years. less. The hybrid Camry, which starts at $25,900, is $1,150 less.

At that starting price, the Camry will cost a little more

than some of its competitors, such as the $19,200 Kia Optima. But Carter says the car includes a lot for the price, including the most air bags

— 10 — in its class.

Toyota has also tweaked the Camry’s engines to get better fuel economy. The four-cylinder engine, which makes up the bulk of Camry’s sales, will get 35 miles per gallon on the highway, up from 32 in the 2011 Camry. The hybrid version will get a combined 41 miles per gallon in city and highway driving. Those numbers make the Camry one of the most fuel efficient sedans among its competitors.

But it remains to be seen whether Toyota can draw back buyers who started shopping other brands after Toyota was hit by huge recalls that involved sticky accelerators and floor mats that trapped gas pedals. Customers also ran into shortages this summer after Japan’s earthquake disrupted production.

Toyota’s lead has been slipping the last four years.

In the first seven months of 2007, the company sold more than 282,000 Camrys, trouncing what was then its closest competitor, the Honda Accord, by more than 62,000. Camry sales were more than double the Nissan Altima’s, and more than three times those of the Ford Fusion, Chevrolet Malibu and Hyundai Sonata.

Now the Camry’s top five rivals are within striking distance. The Altima was only 21,000 behind through July, and the Fusion just 23,000 back.

Toprak and others say the Hyundai Sonata is most worrying to Toyota.

Its fuel economy equals the 2012 Camry but it has more horsepower, and its styling is See CAMRY, Page 10

Monday, August 29, 2011 / Page 3

OnTheMOve / Tallahassee Democrat

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Page 4 / Monday, August 29, 2011

Tallahassee Democrat / OnTheMOve

GM makes pact with LG Group on electric vehicles

By Chrissie Thompson Detroit Free Press

DETROIT — General Motors is working to design and engineer electric vehicles with Korean electronics and battery company LG Group, which supplies battery cells for the Chevrolet Volt extended-range electric, as the automaker seeks to

expand its electric-vehicle portfolio.

GM CEO Dan Akerson and LG President Juno Cho signed an agreement Wednesday. GM plans to sell the resulting vehicles in several countries, but said it would wait until later in the development process to announce the timing for those launches.

“Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process,” GM Vice Chairman Steve Girsky said Thursday in a statement.

GM pointed to pure-electric vehicles, which run only on battery power, as

a key way to meet stricter fuel-economy and emissions regulations worldwide.

For instance, automakers are working to meet a requirement for a U.S. corporate average fuel economy of 54.5 miles per gallon by the end of the 2025 model year.

Along with working together on battery cells for the

Volt, LG and GM worked together on a test fleet of Chevrolet Cruze pure electrics.

GM is working on several types of electrified vehicles, but has only launched the Volt, which runs on battery power for the first 35 miles and then uses a gasoline-powered generator. A similarly powered Cadillac, the ELR,

is coming to market as soon as 2013. The automaker has yet to announce production of pure electric or plug-in hybrid vehicles.

The GM-LG agreement is the second green-vehicle partnership announced this week. On Monday, Ford and Toyota said they will work together on a hybrid system for light trucks.

End of an era: Ford Crown Victoria retiring after more than 30 years

By Greg Gardner and Brent Snavely Detroit Free Press

After a run of more than 30 years, the Crown Victoria — best known as Ford’s durable, iconic police car — is retiring.

It marks an end for the era of big American cars with family-friendly bench seating and gearshifts on the steering column.

Ford dealers stopped selling Crown Vics to consumers in 2008, but sales to police departments have been strong as Ford prepares to launch new police vehicles based on the Taurus large sedan and Explorer SUV. Introduced as a police car in 1983, the Crown Vic was the top choice of law enforcement from 1996 to 2010. But the market has gotten more compet-

itive, with the return of the Chevrolet Caprice police car and an improved Dodge Charger now on the market.

In the meantime, many police departments have decided to load up on the Crown Vic they know. Through the first seven months of the year, Crown Vic sales are up 64 percent to 35,203.

“We’re kind of stocking up,” said Sgt. Larry Poleski of the Grand Rapids (Mich.) Police Department, which bought about 28 Crown Vics earlier this year.

Loyalists skeptical

John Zumalt doesn’t understand why Ford is ending production of the Crown Victoria Police Interceptor at the company’s St. Thomas, Ontario, factory.

“The Crown Vic is the best

vehicle for line police officers in the United States,” said Zumalt, police chief in North Charleston, S.C. Ford is replacing the Crown Victoria Police Interceptor at the same time that Chevrolet is reintroducing a Caprice police car and Dodge is introducing a redesigned Charger police car. That will give Ford’s competitors a chance to capture market share from Ford in the highly prized police segment.

Zumalt’s department bought 40 Crown Vics earlier this year just because it is the last year before Ford replaces the trusty patrol car with its Taurus and Explorer SUV Police Interceptors.

Tony Gratson, Ford manager of government sales, said Ford’s new police cars will have the same 9-inch space

between the two front seats as the Crown Vic, and they will meet the same durability standard tested at rear-impact crashes at 75 m.p.h.

Ford also said its new police car and SUV have more horsepower and better handling and are just as durable as the vaunted Crown Victoria.

cities and counties in the early 2000s after deaths were linked to fires caused by rear-end collisions.

The automaker settled some of those cases and began installing kits in 2003 to protect the vehicle’s gas tank from being punctured when rearended.

Trouble in the past

Fuel economy

Although the Crown Vic will be missed by many police departments, there was a time when its design was questioned.

Critics said a vertically mounted steel gas tank, sandwiched between the trunk and the rear axle, made the car susceptible to puncture in a rearimpact crash, which could lead to intense and almost instantaneous fires.

Ford was sued by dozens of

Beyond the lucrative police cruiser business — Crown Vic accounted for about 70 percent of the police market, Gratson said — continuing production didn’t fit into Ford’s long-term plan to boost its fleet fuel economy by offering smaller engines that don’t sacrifice on performance of the larger ones they replace.

With the federal government requiring automakers to boost their average fuel economy

to 35.5 miles per gallon by 2016 and to 54 mpg by 2025, Crown Vic’s 16-mpg city mileage would drag down Ford’s numbers.

Although many consumers bought and replaced their Crown Victorias in the years leading up to and after retirement, not all of its loyalists have gray hair.

“I have had my silver 1998 Crown Vic for about 11 years now, through thick and thin,” said Jonelle DeFelice, 35, of Belmont, Mass. “I prefer rearwheel drive, and I’ve got to have a V8.”

“If you know what you’re doing and have good tires, there’s nowhere you can’t go,” she said. “I’ve driven that car through 11 New England winters. The only time I’ve ever been stuck, it was my own fault.”

Communication key with new technologies hitting the auto market

By Mark Phelan Detroit Free Press

Carmakers and their customers had better learn how to deal with the breakneck pace at which new technologies are hitting the market.

Otherwise, they’re both going to be unhappy.

From new transmissions and engines that shut off at every stoplight to diesels that sound different when they’re idling, a lot of the subtle cues drivers have learned to expect

are changing as automakers work to make cars more fuelefficient.

Car owners will have to get used to the idea that different is not necessarily worse. Some things about how their new car works won’t feel or sound like their old car did.

There’s no less-reassuring sound than a car salesperson saying, “Don’t worry. They’re all like that.” Even when they all really are like that.

Car companies must

improve their communications, sales pitches and service. They have to tell the customer more than they ever did before, and trust their customers are smart enough to understand.

Ford is the first to pay the price for not doing this. The 2012 Focus uses a new type of transmission called a dualclutch. It feels different from the automatic gearboxes most Ford customers are used to.

This disturbed some Focus

buyers, because Ford didn’t tell them about it in advance.

They know how their old car felt when it shifted gears, and they know the Focus is different. All their experience tells them this means something expensive is about to break.

This is how a new technology that saves money and reduces emissions and fuel consumption becomes a problem instead of a selling point.

Ford’s not the only one

wrestling with this. They’re at the sharp end of the stick because they’re leading adopters of new technologies, but other automakers face the same challenges.

A General Motors engineer recently told me customers will have to get used to a whole range of things that feel and work differently as new technologies arrive to save fuel and increase efficiency. New systems like Buick’s eAssist electric boost are so different

that customers will need to be told what to expect.

That’s true, but it’s only one side of the coin. Asking customers to get used to something different does not relieve car companies of the burden of perfecting the technologies.

Automakers have to be more committed to continual improvement than ever before. That should include improvements to vehicles they already sold.

Monday, August 29, 2011 / Page 5

OnTheMOve / Tallahassee Democrat

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OnTheMOve / Tallahassee Democrat

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‘08 SUBARU HONDA Civic Legacy (Natl) Cpe

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‘08 TOYOTA Camry

‘07 LINCOLN MKZ

‘05 CHEVROLET Silverado 2500HD

‘06 ‘10TOYOTA HYUNDAI Highlander Elantra

‘08 XC90 ‘08VOLVO SUBARU Legacy (Natl)

BS, Tilt /FM

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00 990

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AAccord

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‘06 INFINITI G35 Sedan

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‘07 ‘07TOYOTA TOYOTA 4Runner Camry

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3.5L V6, A/C, Alloy Wheels, 4DR SDN AWD, Auto, ABS, Tilt Wheel, CD Player.

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990 80

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1-866-938-4963 866-527-5191 ‘08 SUBARU BUICK Enclave ‘08 Forester (Natl)

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Page 8 / Monday, August 29, 2011

Tallahassee Democrat / OnTheMOve

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OnTheMOve / Tallahassee Democrat

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Page 10 / Monday, August 29, 2011

Tallahassee Democrat / OnTheMOve

Retrofitting car with back-up camera

By Brad Bergholdt McClatchy-Tribune News Service

QUESTION: I have been looking at electronic back-up systems because of the poor rear visibility on my 2011 Honda CRV. Some claim to be wireless but require extensive wiring. One of the Peak systems has a video camera and would be easy to install, but I am concerned about damaging the camera when I slam the rear hatch. Customer reviews also indicate these systems are not very reliable.

Do you have an opinion on these?

—Paul Biekert

ANSWER: Retrofit back-

up cameras are a good idea for vehicles with restricted rear visibility and have become surprisingly affordable. I counted 4,558 entries on eBay for camera systems with a bewildering variety of choices of wired and wireless systems and standalone cameras for use with your choice of monitor. A wired system using a video cable would be additional work to install but would address your concern of camera damage. Replacement cameras are $20 and up. A wired system would also lessen the chance of interference, which seems to be a small to moderate

Camry From Page 2

more daring. Its starting price is also $2,300 lower than the Camry’s. Camry sales were down 8 percent through July, while the Sonata’s were up 21 percent.

Aaron Bragman, an analyst with IHS Automotive, thinks the new Camry will probably win over many of the 6.8 million people already driving the car in the U.S. But he’s unimpressed by the vehicle’s cheaper looking hard plastic surfaces and knobs, and he thinks some shoppers will be, too.

“I don’t think it’s going to bring anybody new to the brand,” he says.

But Camry has proven its

Under the hood problem with the wireless models.

This is certainly one of those cases where you get what you pay for. Back-up camera systems can range from about $50 to well over $1000. The Peak models you’ve seen appear to do a good job for the price — $75-150 — and have been widely reviewed.

I read every comment I could find, and the largest concern is water damage to the camera, which appears to be more prevalent on earlier versions of

the system. It also sounds like the company does a good job of taking care of customer concerns.

Any system will require some wiring, such as connecting the camera to the back-up light circuit and possibly running the video cable beneath the carpet to the instrument panel.

My greatest concern is how the monitor would be placed on the instrument panel and how its cords might be kept tidy. Sun visor monitor mounting would be slick, but more difficult to run the wires.

I believe the solid state design of the cameras used should withstand the

jarring that would occur when you close the trunk.

Now you’ve got me going on this. Adding a camera to a truck would make hitching up the trailer much easier and lessen the chance of punching a hole in someone’s grille with the hitch when parallelparking.

NEW QUIZ: Thanks to all the readers who responded with input about the format of this column.

I also received many suggestions for topics, offers of help with research, and a few requests for a new reader quiz. Here’s a couple of warm-up questions:

1. A shake is felt in the steering wheel at 52 mph.

The cause is: (a) warped brake rotors (b) improper wheel alignment (c) incorrect wheel balance (d) a worn CV joint 2. Larger replacement tires for a truck or SUV will make your speedometer and odometer read: (a) faster (b) slower (c) the same ANSWERS: C, B — Brad Bergholdt is an automotive technology instructor at Evergreen Valley College in San Jose, Calif. Readers may send him email at under-the-hoodearthlink. net; he cannot make personal replies.

A 2012 Toyota Camry is shown during a news conference Tuesday in Dearborn, Mich. While it promises new technology and other upgrades, America’s best-selling car faces a fight to stay on top with its first redesign of the Camry in five years.

staying power before. And while analysts also criticized the cheaper materials used on the new Volkswagen Jetta sedan, Jetta sales were up 75 percent through July.

Toyota Motor Corp. President Akio Toyoda visited the Georgetown, Ky., plant where the Camry is made Tuesday, underscoring the car’s importance. Toyoda said he personally tested the new car until he was satisfied that it outperforms its competition.

“This car has become a symbol of Toyota’s success,” he said.

“This is an opportunity to show the world again what Toyota is all about.”

The AssociATed Press

—Auto Reporter Tom Krisher in Detroit contributed to this story.

First-ever car manufactured for people with disabilities offers new freedom WXIA-TV, Atlanta

NEWNAN, Ga. — There is nothing like the look, feel, and smell of a brand new car from the factory, but some people have never had the opportunity to experience that for themselves.

A new, first-of-its-kind vehi-

cle called the MV-1 now gives people with disabilities the chance to buy a car that is factory-built and assembled for them.

“The vehicle actually was built from the frame up, exclusively for wheelchair accessibility,” said Orlando Zeledon,

sales consultant at Toyota of Newnan, where the MV-1 is on display.

The MV-1 will be manufactured in Indiana by a company called Vehicle Production Group, and will run on either gasoline or compressed natural gas. It’s expected to be

available by the end of September.

Zeledon said the MV-1 is already getting rave reviews.

Before it was developed, people with disabilities were forced to buy a new van, then have it retrofitted for wheelchair access.

Jay Leno featured the MV-1 on his late-night TV show.

“A few friends of mine are in wheelchairs, and they’ve had (retrofitting) done, and it’s expensive,” Leno said. “I mean, it’s OK, but the pieces don’t quite mesh.”

Zeladon said now disabled

drivers “can ride in a vehicle that is safe, they can ride in a vehicle that is comfortable, and they can ride in a vehicle that is going to be easy to access.”

He said the cost of the MV-1 is $43,950 versus a retrofitted van, which can cost as much as $50,000.

OnTheMOve / Tallahassee Democrat

TD-0000183864

Monday, August 29, 2011 / Page 11

Page 12 / Monday, August 29, 2011

Jobs From Page 1

nese earthquake in March.

Shutdowns at Japanese-owned factories in Japan and the United States created inventory shortages that led to sharply higher car prices, lower demand and hundreds of thousands of lost sales for dealers.

But with those disruptions now in the rearview mirror, the industry is looking for sales to improve over the rest of the year.

The health of the U.S. economy is so dependent on autos that economists such as UCLA’s David Shulman are watching car sales to assess whether the nation’s recovery will accelerate or stall. “If you see a 13-million-unit sales rate in the fourth quarter, that would help a lot,� said Shulman, senior economist at the UCLA Anderson Forecast. “It would be very hard to see how the U.S. would go into recession with cars selling at that rate.�

With their U.S. plants almost back to full production, Toyota Motor Corp. and Honda Motor Co. will be rebuilding their dealer inventories nationwide. They’re also launching incentives and in some cases lower-

Tallahassee Democrat / OnTheMOve ing prices of new models to recapture lost sales. Toyota said this week that it was slashing the price of the Camry, America’s top-selling sedan, by hundreds or even thousands of dollars for some versions.

To compete, other manufacturers are expected to boost their incentives and discounts, which should help draw buyers back into showrooms.

Other factors are assisting as well.

The average age of passenger cars and light trucks in America has grown to almost 11 years as people delayed purchases during the downturn. Low-mileage used cars are in short supply.

And with the Federal Reserve signaling that it plans to keep interest rates low for several years, automakers are offering low-cost financing deals, making it easier for consumers to make a new-car payment.

This should all help to boost sales. “The vehicles will be there. There will be a better incentive environment. Financing isn’t going to cost any more. Everything is in place; it is just a question of whether consumers will be too scared to act,� said Robert Schulz, an auto industry

analyst with Standard & Poor’s.

Lacey Plache, economist at Edmunds.com, believes U.S. lightvehicle sales will reach 12.9 million this year, and that means she expects the sales pace to pick up dramatically in the coming months. “The demand for autos is still showing strength, and buying conditions will only improve through the fall as supply grows and prices come under pressure to fall,�

Plache said.

Although most analysts are predicting growth, some said the auto industry and the overall economy still face significant hurdles.

Big gyrations in the stock market make consumers nervous, said Shulman, the UCLA economist.

Volatility tends to have an outsized effect on high-end customers, and that could undermine the luxury car market, which typically has strong sales toward the end of the year.

A weak U.S. labor market also makes shoppers wary of big-ticket items.

But no matter how the next few months go, Shulman said, the automobile industry is healthy enough so that for once, “it won’t be what puts the economy into a recession.�

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How to know if your speedometer is accurate

By Steven Cole Smith Orlando Sentinel

QUESTION: For as long as I can remember, I knew that all cars’ speedometers are 10 percent incorrect from the factory. It is my understanding that the speedometer always reads higher than the car is really going. Is this still correct?

Q&A

—B.C., Delray Beach

ANSWER: Speedometers have always been a little “optimistic,� because manufacturers don’t want customers busted for driving at a higher speed than the speedometer shows, but 10 percent is a lot more optimistic than I usually see — 1 or 2 percent is more like it. But with digital systems today, some speedometers I’ve seen are dead-on accurate. If you change to larger or smaller tires and wheels from factory sizes, the speedometer may be inaccurate.

Speedometer shops can calibrate your speedometer, much as they are calibrated on police cars. But

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there are two easy ways you can check: Many GPS navigation systems can compute your speed based on satellite data; plus, if you drive on a highway or expressway with mileage markers, it should take you exactly 60 seconds to get from one to the next at 60 mph. Average your computation over several mileage markers, as some are moved forward or back a bit so they don’t have to be placed at bridges or exits.

Q: Is there one place I can find rebates and incentives on new cars? —Louis V., Orlando

A: Yes, several websites compile this information, including Cars.com and Edmunds.com — but I prefer going directly to the manufacturers’ websites, which are almost always the brand name (Ford.com, Honda.com, Mini. com). Incentives can change almost daily.

— Send questions to Steven Cole Smith at scsmithorlandosentinel.com.

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