Automotive Industry
News covering the Automotive Industry at large.
503 articles in this category
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Not content with a trade war just with China, Donald Trump has opened a second front in what is slowly turning into a trade world war. Yesterday evening, Trump announced that beginning June 10th a 5% tariff would be slapped on all Mexican products coming into the country. That tariff would increase to 10% by July 1st and then go to its 25% maximum in October. For automakers with razor thin margins, there is absolute certainty that the American consumer will end up paying these tariffs.
... 5%, to 10%, to 25% by October...
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The tariffs that Trump had threatened to impose on Mexico starting June 10th will not be going on to effect. Trump tweeted out that Mexico had made concessions to deploy their newly formed Nation Guard to their own southern border and that it only took two days for Mexico to bend to Trump's demands. This is false. The truth, according to a report in the New York Times is that Mexico had already agreed to do that back in March 2019 during secret talks between the (at the time) Director of
...the "deal" was made months ago...
- Editor-in-Chief
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William Maley Editor/Reporter - CheersandGears.com May 15, 2012 Its been working its way through the halls of congress, but according to Car and Driver, the "black box" mandate for cars could be in the books. The Senate has already voted to adopt a transportation bill that has a provision mandating event data recorders to be equipped into new vehicles starting in 2015. The House of Representatives is considering a version with slightly different language. The current state of the bills are "
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Helped by a plethora of CUVs, the hottest selling segment, and the on fire 4-series, BMW managed to stave off Lexus, its German rivals, and Cadillac for the fourth year in a row. BMW(+1.4%) finished 2015 with 346,023 sales. Lexus (+10.7), not far behind with 344,601 sales came in at number two, just 1,422 fewer. The 4-series, which despite BMW being propelled in terms of growth mostly by CUVs, was the lone stalwart car nameplate to actually show gains. Although the 1/2-series were up 77%, it
BMW is King of the U.S. Luxury Segment for the 4th year in a row.
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A record number of consumers are finding themselves 'underwater' when it comes time to trade-in their vehicle - the vehicle is worth less than what they owe on their loan. The Detroit Free Press cites a study done by Edmunds revealing that in the second quarter of this year, 32 percent or nearly one-third of vehicles being traded in fall into the 'underwater' category. This isn't good news for consumers since the difference is tacked on to the new vehicle they had their eye on. To put
A number of factors play into this
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Securing American global EV manufacturing leadership, dramatically improving public health and significantly reducing carbon pollution is some of the key goals that ZETA or Zero Emission Transportation Association was formed for. This industry association is focused on creating hundreds of thousands of new jobs. In quoting their www.zeta2030.org web site they state the 3 core points. Job Creation - Enacting ambitious, but realistic policies to accelerate transportation electr
What is ZETA you ask?
This is the first industry-backed coalition of 28 businesses and growing covering employees in all US states advocating for a national policy that supports the sale of electric vehicles only starting in 2030 of light, medium and heavy-duty auto's. This group calls for the accelerated transition to EVs.
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In a not surprising move, President Donald Trump announced today that his administration will reopen a review into the 2025 fuel economy standards set by the EPA before the end of President Barack Obama's term. “We’re going to work on the CAFE standards so you can make cars in America again. There is no more beautiful sight than an American-made car,” said Trump at an event in the former Willow Run bomber factory in Ypsilanti, Michigan - soon to become a testing ground for autonomous vehic
Back to the review desk
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Despite countless studies and reports that say Gen Y (AKA millienals) aren't interested in cars, a new study released this week says this key group are interested in cars. Deloitte LLP, a financial consulting firm published their Global Automotive Consumer Study which showed that Gen Y is very much interested in getting their own vehicle, despite not having the same love affair as their parents and grandparents. "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to b
Its Not That Gen Y isn't Interested In Cars, They Just Can't Afford Them Right Now
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The automotive industry in the U.S. has been enjoying one of the best years in terms of sales. But one segment is seeing a drop in their sales. That segment is the midsize sedan. Automotive News reports that the demand for midsize sedans is at a five-year low. The numbers tell this sad story. In the first quarter of 2016, sales of midsize sedans dropped 3.4 percent. The second quarter saw sales dropped 13 percent, while the third quarter saw a whopping 21 percent drop. For the month August,
I keep on falling
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California is considering joining France and Great Britain in banning the sale of gas and diesel-powered vehicles. Governor Jerry Brown has been expressing an interest in banning the sale of internal-combustion engines according to Mary Nichols, chariman of the California Air Resources Board. “I’ve gotten messages from the governor asking, ‘Why haven’t we done something already?’ The governor has certainly indicated an interest in why China can do this and not California,” she said to
Come on, don't tell us you didn't see this coming
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The President has threatened to slap tariffs on the import of all cars in a year if Mexico does not completely halt the flow of illegal immigration, a near impossible task. This is after he backtracked on his previous threat to completely close the US-Mexico border, a move his own advisers recommended against. Such actions would have massive economic repercussions on both sides of the border, raising prices for many consumer goods. Trump said, "Mexico understands that we're going to clos
...in spite of negotiating no tariffs with them earlier..
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Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars. He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbe
Even NADA's CEO is wondering where are the affordable vehicles
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If you have been following auto sales for the past few years, then you know that SUVs and trucks currently dominate the sales charts partly due to the low gas prices. This is especially true when it comes to the luxury segment, where utility models are eating sedans. But a new report from The New York Times reveals that American automakers are eating the lunches of luxury car manufacturers. According to data from Edmunds, the likes of Ford, Chevrolet, and GMC have seen their share of domes
American automakers are cleaning up here.
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The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China. Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude. "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said Jam
The Camaro and Mustang fights expands into China
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Fuel efficiency guidelines and California's right to set its own vehicle emissions standards are in the crosshairs of the Trump administration again. Bloomberg has learned from sources that the administration will be introducing a proposal later this week that revises key parts of the Obama-era standards. This includes capping federal fuel economy requirements at 2020 level of 35 mpg fleet wide, instead of the 50 mpg requirement by 2025. There is also a provision that would revoke the Clean
Here we go once again
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Whenever Bob Lutz speaks, many people tend to listen as he a number of years of being in the automotive industry under his belt. Recently, Lutz wrote an editorial for Automotive News' Redesigning the Industry where he predicts we are “approaching the end of the automotive era,” within the next 20 years. “The end state will be the fully autonomous module with no capability for the driver to exercise command. You will call for it, it will arrive at your location, you’ll get in, input your des
When did Bob Lutz become Nostradamus?
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William Maley Staff Writer - CheersandGears.com October 28, 2013 California and seven other states have signed a new pact that hopes to increase the number of zero emission vehicles on their roads to 3.3 million by the year 2025. Joining California in this pact are Connecticut, Maryland, Massachusetts, New York, Rhode Island, Oregon, and Vermont. The seven states have already adopted a rule like California where by 2025, 15 percent of vehicles sold must produce zero emissions. To help get to
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According to research issued by AAA, 40 percent of Americans expect driver assist systems with names like ProPilot, Co-Pilot 360, or Autopilot to give the vehicle the ability to drive itself. In a quote to Automotive News, Director of Automotive Engineering and Industry Relations at AAA says "Somewhere in there, you'd think a pilot is involved, but indeed no, human driving is still required." AAA examined 34 vehicle brands to identify the number of driver-assistance names used and foun
Consumers think that with names like Co-Pilot 360, ProPilot, or Autopilot, the car should be able to drive itself.
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The State Fair of Texas began last week and truck manufacturers were out in force with new models to tempt consumers in the largest truck market in the U.S. Both Ford and Ram Trucks rolled out new luxury trims of their pickups - Ford with the Limited and Ram with the Longhorn Southfork. Both trims can easily reach $100,000 which to some is pushing it. But marketers at the truck manufacturers tell Automotive News they don't know where the ceiling is on how much consumers are willing to spend.
And automakers don't know where the breaking point is
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In a move that was expected to happen soon, the EPA announced that it plans to revise the fuel-efficiency regulations that were approved during the President Obama administration. “The Obama EPA’s determination was wrong. Obama’s EPA cut the midterm evaluation process short with politically charged expediency, made assumptions about the standards that didn’t comport with reality and set the standards too high,” said EPA chief Scott Pruitt in a statement today. The statement goes on t
You can guess who likes and despises this
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William Maley Staff Writer - CheersandGears.com June 21, 2012 The EPA gave its ratings for the Tesla Model S are they are very good. The EPA rates the new Model S at 88 MPGe (miles per gallon equivalent) in the City, 90 MPGe on the Highway, and 89 MPGe combined. Range is estimated to be 265 Miles, a 12% decrease from Tesla’s original estimate. (Note, these EPA ratings are for the the top of the line Model S. We’ll learn what the ratings for the other Model Ss in time.) So where does the M
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The COVID-19 pandemic has basically brought most of the world to halt. Orders to stay at home, businesses either having workers to their work from home or closing down, and unemployment skyrocketing is causing the economy to crater. There are efforts to try and jump-start the economy such as $1,200 stimulus checks. But an executive at Ford wants to see a return of a "cash for clunkers" like program. “We think some level of stimulus somewhere on the other side of this would help not only the
Is this a good idea or not?
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It is already tough for a number of people to afford a new vehicle as the average transaction price keeps rising. According to Kelly Blue Book, the average transaction price for November rose 2.1 percent to $36,978. This isn't being helped by American automakers deciding to stop producing cars due to changing consumer tastes. This was brought to light last week when General Motors announced that it would be cutting a number of cars including the Chevrolet Cruze. Most automakers and dealers belie
And why that may pose a problem
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The European car market as a whole has been in decline for six consecutive months as of March 2019 with 19 out of 27 markets posting declines. March numbers were down 3.6 percent over the same month in 2018. Looking at the first quarter of 2019 paints an even bleaker picture with only 6 countries recording growth. While overall demand is down, the demand for electric vehicles grows. The sales of EVs exceeded 100,000 units for the first time ever with a total of 125,400 EV and PHEVs sold.
...in a market that continues to decline, EVs are doing well...
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Truck owner loyalty is legendary. Buyers typically pick one brand and stick with that brand for as long as they buy trucks. Indeed my own father has owned only one brand of pickup, the Ford F-series, since before I arrived on earth. In 2018, Ford moved more than 900,000 copies of its F-series pickups out of a total segment of 2,944,395. But have rising prices started to crack that loyalty? CarGurus did a survey and found that 70% of truck owners would switch brands if their truck raise
.... 68% of current truck owners believe that current pickups are overpriced.
- Editor-in-Chief
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Most new cars and trucks sitting on dealer lots have fuel economy estimates on their window sticker. The only group of vehicles that don't are heavy-duty trucks. This is due to the EPA not requiring automakers to publish estimates on trucks with gross weight ratings that exceed 8,500 pounds. This makes it difficult for folks to compare the heavy-duty trucks with one another or comparing the diesel variants with the light-duty gas versions. Consumer Reports doesn't believe it should be this way a
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Luxury automakers have been taking full advantage of the high-demand for SUVs and crossovers and raking in the dough. But as Neuton's third law of physics tells us, "for every action, there is an equal and opposite reaction." In the case of luxury automakers, they have a number of sedans and coupes from lease turn-ins that they cannot sell. “It’s not necessarily the overwhelming amount of vehicles, it’s the mix of those flood of vehicles. You’re throwing all these cars into the marketplace
Need a good deal on a used luxury car? They're out there.
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The Korean Herald News outlet is reporting that South Koreas second-largest automaker Kia will start production of their full-size EV9 SUV in the first half of 2023 after Kia's labor union (Korean Metal Workers) and Kia management fame to agreement on production, strategy and future employment security. According to the new source, the Kia EV9 will be produced at the company's Gwangmyeong factory in Gyeonggi Province. The EV9 SUV is expected to officially start taking pre-orders in Ap
Kia, South Korea automaker is slated to start production of the EV9 full size EV after agreement was reached with the Korean Metal Workers Union.
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In 2009, the U.S. saw its lowest number of pedestrian deaths. But since then, that number has increased by 46 percent as pedestrian crashes have become more frequent and deadlier. Why is that? The Insurance Institute for Highway Safety released a study today investigating the possible reasons. One key indicator is the number of crashes involving SUVs. According to IIHS data, between 2009 and 2016, fatal single-vehicle crashes involving SUVs rose 81 percent - the largest increase of any vehi
Highest amount since 2009
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It seemed that it would never happen, a domestic brand cracking into the top three of Consumer Reports' annual Auto Reliability Survey. But in the 2016 survey, Buick became the first domestic brand in three decades to be in the top three of reliable brands - behind Lexus and Toyota. “Buick’s achievement is commendable and sure to be a wake-up call to other manufacturers. One reason why the brand has been able to leapfrog others in the General Motors’ stable has been its limited vehicl
A domestic brand cracks the top three!
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Hatchbacks have never sold well in the U.S., but that could be changing thanks to new entrants and hotted-up models. According to a forecast done by IHS Markit, sales of hatchbacks are projected climb 19 percent this year. By 2020, the firm projects sales of 567,000 hatchbacks. What has changed? Some of this comes down to hatchbacks finding a niche market. Michelle Malcho, spokeswoman for Chevy cars and crossovers tells The Detroit News that active, urban buyers who are wanting a bit more f
The bright spot in the passenger car market could be the hatchback
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As expected, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have unveiled a proposal that will suspend increases in fuel economy put forth by the Obama administration, and take away California's ability regulate vehicle emissions. The new proposal is called the "Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule." Under the new proposal, the Corporate Average Fuel Economy (CAFE) would be capped at the 2020 level of 37 mpg through
Prepare yourselves, there are some mental gymnastics involved
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The National Highway Traffic Safety Administration has begun testing vehicles that have cameras in place of real mirrors. The request to test such devices goes back to March of 2014 when the Alliance of Automobile Manufacturers along with Tesla filed a petition with the NHTSA to get approval to install based rear or side vision cameras and screens in their vehicles. Daimler filed a similar petition in 2015 for their heavy duty trucks. Japan and Europe have already approved the technology.
...New tech to replace old tech...
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William Maley Editor/Reporter - CheersandGears.com February 6, 2012 Do you want a billion dollars? Well, all you need to do is build 60,000 cars that get 100 MPG and the U.S. government will send a check your way if a new bill is passed. Representative Dan Lungren ® of California's 3rd Congressional District has introduced a bill into Congress called the Excellence in Energy Efficiency Act of 2012. If the bill is passed, the legislation would have the Secretary of Energy "establish a program
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William Maley Staff Writer - CheersandGears.com August 16, 2012 Fisker is looking to raise another $150 million to help keep the company afloat. "We need money on our balance sheet" to fund operating expenses. "And we need money to fund the development of the next car," said Ray Lane, a Fisker director and a managing partner at venture firm Kleiner Perkins Caufield & Byers to Reuters."We're raising some of that money now, and some later." The reason for the extra $150 million? Earlier
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The threat of a 20 percent tariff on vehicles exported from the European Union has a number of automakers panicking. But that tariff could be taken off the table if the EU removes their tariff on vehicles exported from the U.S. German paper Handelsblatt learned from sources that a meeting was held between the US ambassador to Germany, Richard Grenell and number of CEOs from German automakers. Grenell presented an offer directly from President Donald Trump - "elimination of all tariffs on au
But they would need to make some concessions
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William Maley Editor/Reporter - CheersandGears.com January 17, 2012 If you’re one of people who wants an electric car, but have the fear of not having enough power to make it through your daily drive, you might want to hear this story. A new study released by Columbia University says that 95% of daily trips could be made with an electric vehicles. The study done by two doctoral students used data from the Department of Transport’s 2009 National Household Travel Survey. The data showed 95% of
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Great Britain is planning to ban the sale of conventional gas and diesel vehicles from 2040 to help reduce air pollution. The government announced this in a paper published by the Department for Environment, Food and Rural Affairs (DEFRA). "There should be no new diesel or petrol vehicles by 2040," said environment minister Michael Gove to BBC Radio. This is part of the government's £2.7bn blueprint for tackling air pollution. This includes investments going towards building out a char
Hybrid vehicles not involved in this ban
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William Maley Editor/Reporter - CheersandGears.com February 10, 2012 Earlier this week, Fisker announced they had temporarily halted work on Nina family sedan at the Fisker Automotive plant in Wilmington, Del. The temporary halt is due to Fisker and the federal government hashing out new terms of the company’s $529 million Department of Energy loan. The halt has caused Fisker to layoff 26 people at its Delaware plant and a number of contract engineers at Fisker's Anaheim, Calif., headquarters
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You find yourself in the showroom, ready to drive away in a new Chevrolet Bolt, Nissan Leaf, or Tesla Model S. But there is one big question that needs to be decided, do you buy or lease it? According to a report from Bloomberg, most buyers of EVs tend to lease. In the U.S., almost 80 percent of electric vehicles on the road are leased according to their report. It also says that 55 percent of plug-in hybrids are leased. More than 80 percent of BMW i3s are leased as an example. The key reas
There's a good reason why EV buyers are leasing
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William Maley Staff Writer - CheersandGears.com November 5, 2012 Tesla announced their third quarter results today and it was a mixed bag. The company announced a $110.8 million loss, a figure that's significantly higher than last year's $65.1 million loss. Tesla partly blames the loss on a slower-than-expected roll-out for the Model S, which went into production in July. Tesla says they have increased production of the Model S from 100 vehicles per week to 200. The company expects to be buil
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Sales of new cars have been reaching all-time highs and part of the reason comes down leases. The Detroit News reports that nearly one in three vehicles built for the U.S. is leased. Data from Edmunds shows 2.2 million vehicles were leased in the first half of 2016. Not only is this up 13 percent from the same time year, it is double the volume from 2011. Steven Szakaly, chief economist for the National Automobile Dealers Association tells the Detroit News there is plenty of space for more lease
Leasing is becoming very popular for buyers because of low payments
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It seems everyone is getting into the car business, whether that is through autonomous technologies or electric vehicles. The latest entrant may surprise a number. Yesterday, Dyson (yes, the vacuum cleaner maker) announced that it was working on an electric vehicle. Rumors about this have been swirling for a few years. Last year, the documents from the UK government revealed a £16 million ($22.54 million) grant was awarded to the company for the research and development on batteries, which
Yes, the vacuum cleaner company.
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Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations. “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,” said Erich Joachimsthaler, founder
But will anyone buy them?
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William Maley Staff Writer - CheersandGears.com August 7, 2013 Yesterday at at the Center for Automotive Research’s Management Briefing Seminars, General Motors' Chief Economist Mustafa Mohatarem told attendees that the reason young people aren't buying cars because they're not interested. It's more to do with economic reasons. Mohatarem downplayed the reason that young kids are more interested in the internet and what's the latest hot thing in tech, and pushed the rising costs of cars, repa
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Cox Automotive group released their Q3 2023 EV sales for the automotive industry in the United States showing that in Q3 EV sales jumped past 300,000 for the first time in the U.S. market. EV sales through September reached just over 873,000 which puts the market on track to surpass 1 million EV sales. This milestone is estimated to be reached some time in November. Q3 EV sales estimates are 313,086 EV sales, a 49.8% increase over the same period last year. This is an increase from the 298,
U.S. EV sales have set another record, but how much growth is it and who is leading among all auto companies?
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Kelly Blue Book has listed the ten vehicles that deprecate at alarming rate and top three happen to be electric vehicles. The Nissan Leaf according to KBB is projected to only retain 18 percent of its new-car price after five years. Behind the Leaf is the Fiat 500e which is expected to retain 21 percent and the Smart ForTwo EV which is expected to retain 21.5 percent. Few key items to keep in mind: Fiat 500e is only available to lease in California A number of automakers, like Nissan have
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For the past few years, luxury automakers have been trying to fill every single niche they could think of. It's why we have such models as the BMW 5-Series GT and Mercedes-Benz GLC-Coupe for example. But now, BMW and Mercedes-Benz admit they have too many models and are planning to cut some. “The checkerboard of body styles and segments is rather full, although there are still a few to be finished. We’ve got an X2 and an X7 coming, and there are a few others, but I also know—because we’ve t
Bad News, coupes and convertibles are on the chopping block
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The EPA, National Highway Traffic Safety Administration, and California Air Resources Board have released their draft Technical Assessment Report on the 'Midterm Evaluation of Light-duty Vehicle GHG Emissions Standards for Model Years 2022-2025'. Despite the long name, this report is important as the results will help determine if the 54.5 mpg corporate average fuel economy target for 2025 needs to be adjusted or not. Let's begin with the good news. The report says the industry is “ado
That 54.5 mpg fleetwide goal? Yeah, about that...
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IHS Markit recently published their analysis on how long Americans are holding onto their vehicles. The average according to the firm stands at 11.9 years, the highest amount since they have been tracking this. Also, about one in four vehicles is over sixteen years old. We should note that this data came before COVID-19 started to wreak havoc on the U.S. IHS notes that new cars only made up 6.1 percent of vehicles in operation in 2019, down 0.8 percent when compared to high of 2016. This highlig
Expect the Age to Climb Higher Due to COVID-19
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Earlier this week, the Environmental Protection Agency announced that it would be rolling back the fuel-efficiency regulations that were approved during the Obama administration. The agency also announced possibly revoking California's waiver that allows it to set tougher standards on vehicle emissions. The state vowed to fight this. But a new report from the New York Times says California and officials from the Trump administration are in talks about possibly reaching a deal to avoid a legal fi
Trying to avoid legal trouble
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January 2, 2013 By Drew Dowdell Managing Editor - CheersandGears.com Avis Budget Group and Zipcar, Inc. have announced an agreement where Avis Budget will aquire Zipcar for $12.25 a share or about $500 million total. Zipcar has about 760,000 members (including yours truly) across 20 metro markets in the U.S., Canada and Europe with locations at over 300 university campuses. Car sharing is now a $400 million per year business in the U.S. market alone. Avis Budget expects to gain $50 million t
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G.Noble Editor/Reporter CheersandGears.com March 10, 2012 Life hasn’t exactly been easy for the Chevrolet Volt. Although it was just recently named 2012 European Car of the Year in Opel Ampera guise, GM announced previous to the awarding they were suspending production for little over a month because of slow sales and dealers rejecting further allotments. On top of that, the Volt has had some image issues stemming from the NHTSA’s disclosure late last year about how an example they t-boned c
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While car sales are down, the number of people opting for loan lengths from 73 to 84 months is going up. Karl Kruppa, senior automotive solutions consultant for Experian said at a conference last week that the share of 73 to 84 months car loans has been rising over the past eight years. Through February of this year, 33.8 percent of loans were for terms longer than 73 months. Other numbers to take into consideration, In the fourth quarter of 2010, three-fourths of new-car loans
Long-term loans for new and used cars are increasing
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By William Maley Staff Writer - CheersandGears.com January 17, 2013 Former General Motors Vice Chairman Bob Lutz has been know to speak his mind. At the Detroit Auto Show this week, Lutz told Autocar that he thinks that the technology in the Chevrolet Volt should have been put into a larger vehicle first. “Frankly, unless that customer is philosophically, religiously or economically affiliated to buying an electric vehicle, then they can’t be convinced. The first two types of buyer will buy
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William Maley Editor/Reporter - CheersandGears.com April 29, 2012 This past week at the SAE World Congress in Detroit, Google says that self-driving cars can be on U.S. roads within the next few years. We don't know what it's going to take to show its safer than a driver. It's much sooner than the next decade," said Google project manager Anthony Levandowski. Levandowski revealed that Google is in talks with auto makers and suppliers about working with them on the technology. "All options
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PSA Group CEO Carlos Tavares told attendees of the Automotive News World Congress yesterday they are employing the know-how from Opel engineers to develop vehicles for the U.S. market. Tavares declined to say which brand will lead the charge but did hint that future Opel models would be engineered to be compliant with U.S. regulations. Launching one of PSA Group's brands will be the last step in the company's 10-year plan of re-entering the U.S. market. Already, PSA is offering mobility se
Also announced plans to electrify their entire lineup
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Ever since PSA Group announced that it would be making a return the U.S. as part of a 10-year plan, there has been a large amount of speculation as to which brand would be sold. Would it be Citroen, DS, Peugeot, or the recently acquired Opel/Vauxhall? “We’ve chosen a brand, but it’s too early to talk about it,” said Larry Dominique, president and CEO of PSA North America to Car and Driver. PSA Group is still in the first phase of its plan with the Free2Move mobility aggregation platfor
But they aren't saying which one.
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February 14th, 2012 - Drew Dowdell - CheersandGears.com Michiganers will soon be able to get around a little faster without risking a speeding ticket. The US Department of Transportation has approved Amtrak to run 80 miles of the 97 mile section between Kalamazoo, MI and Porter, IN at 110mph, the first such service outside of Amtrak's North East Corridor. This move comes after the successful implementation of Incremental Train Control System (ITCS) along this section of the route. The two route
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William Maley Staff Writer - CheersandGears.com December 10, 2012 NHTSA is expected to finalize a long-awaited proposal to make event data recorders, the 'black box' standard on all new vehicles. Last Thursday, the White House Office of Management Budget completed a review of the proposal which has cleared the way for NHTSA to finish up the final regulation. The proposed regulation would raise the percentage of vehicles required to have a black box from 91.6% today to 100%. The incremental
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Automakers already have enough of a headache with the current administration in the white house, but news that broke today is only going to make it even worse. Wilbur Ross, the U.S. Secretary of Commerce has announced that President Donald ordered an investigation under Section 232 of the Trade Expansion Act of 1962 to determine "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." "T
May lead to tariffs and other issues
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China is the world's largest EV market with sales of electric auto's reaching 2.61 million up 70% in 2018 over 2017. This constitutes 4% of the total Chinese market today. China is requiring 10% of total sales to be EV in 2019 and raised to 12% for 2020. In comparison, the US saw EV sales jump 81% for 2018 to a total of 360,000 EVs sold out of a total of 17.2 million auto's sold. Yet the US has only 1 million EVs on the road and the auto industry is projected to spend a mind blowing $255 billio
Automakers are planning to bring to market 100's of electric automobiles by 2025 and a german research company may have solved one of the biggest problems surrounding making them profitable.
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Since Volkswagen and Ford announced a new partnership back in the summer, there have been rumors flying around if it could expand into other areas. The two said it would primarily focus commercial vehicles, but they were open to other opportunities. As we reported last week, the two are discussing the possibility of expanding into autonomous tech and electric vehicles. Recently, Volkswagen Group CEO Herbert Diess gave an interview to Automotive News. He reiterated that the focus of the part
This could make a number of people happy
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Yesterday, Consumer Reports announced the results of their annual reliability survey for 2015. Not surprisingly, the top ten was mostly made up of Japanese and Korean automakers, with Lexus and Toyota taking the top two spots. However, Audi led the Europeans by taking the third spot. For the domestics, Buick landed at number seven on the list. The survey reports that a number of automakers are still having troubles with the infotainment system, but also with transmissions. “We’ve see
Consumer Reports Announces 2015 Reliability Survey Results
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By William Maley Staff Writer - CheersandGears.com January 31, 2013 J.D. Power and Associates recently released their 2012 U.S. Navigation Usage Satisfaction Study and the results aren’t that surprising. Consumer happiness dropped 13 points in the study’s 1,000-point scale to 681, one of the lowest scores J.D. Power has ever recorded in the six years the study has been taken. Even worse was the overall satisfaction in voice controls, scoring 544 points out of 1,000. Even worse news for autom
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May was a horrible month for automakers as many reported sales drops. Part of this can be attributed sales of cars (especially sedans) imploding. According to Automotive News, the 15 largest automakers all posted lower car sales. Overall car sales dropped 16 percent. "We don't get a lot of ups on cars right now, as far as people even wanting a price on them," said Gary Uftring, president of Uftring Auto Group in Peoria, Ill. "Styling has changed, and what people want to be seen in is a c
May was a bad month for sedans
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William Maley Editor/Reporter - CheersandGears.com January 18, 2012 According to a report from research firm R.L. Polk & Co, the average of age of a vehicle on the road stands at 10.8 years last July. The report says the average age of passenger vehicles stands at 11.1 years, while for light trucks, it’s 10.4 years. Polk says the median age of cars has been on the rise for the past 16 years because people are keeping their cars longer due to various reasons. Most recently, the economic d
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William Maley Editor/Reporter - CheersandGears.com April 9, 2012 A new study published by R.L. Polk said only a third of hybrid owners bought another in 2011. The study showed that only 35% of hybrid owners bought another. Take out the most popular hybrid, the Toyota Prius and the number falls to 22%. Brad Smith, director of Polk's loyalty management practice told Automotive News the biggest problem for hybrid vehicles is the advancements made with conventional gas engines. "The premium pr
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The number of automakers teaming up to share and develop new vehicles and technologies is growing in an effort to help reduce costs. A new report from German paper Handelsblatt says that BMW and Daimler are considering such a move. Speaking to sources at both companies, BMW and Daimler are looking into possibly jointly developing their next-generation compact cars (BMW 1-Series and Mercedes-Benz A-Class) - as part of a wider cooperation that includes sharing autonomous car tech. Working tog
The next-generation BMW and Mercedes-Benz compacts may be quite similar
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While Americans are keeping their cars longer (Experian Automotive says the average ownership length is now 7.75 years), there are some models that owners can't wait to get rid off within a year of buying. iSeeCars.com recently compared new car sales against used-car purchases in 2014 to figure out which vehicles were traded-in the fastest. Their analysis showed that on average, around 2.7 percent of all new vehicles are traded in after only a year’s ownership. More surprising was the vehicles
Which Vehicles Get Traded-In the Most After A Year of Ownership?
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Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst. They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets. General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up. GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a
...Preparing for the worst...
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William Maley Staff Writer - CheersandGears.com November 7, 2012 Hurricane Sandy was the largest storm in the Atlantic in US history, and the economic damage is beginning to come into view. Automotive News is reporting that around 15,000 new vehicles will be scrapped due to storm damage. About 40% of those are Nissan and Infiniti vehicles that were determined to be unfit for sale. Toyota is next with the possibility of having to scrap close to 4,000 vehicles. Other automakers that have annou
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G. Noble Editor/Reporter CheersandGears.com Friday, 10th February, 2012 If you're waiting for the sting of high gas prices to go away soon, you may be in for one hell of a long wait. Gas prices are back at a national average of $3.48 a gallon -- a whole 36 cents more than the average during February of last year -- and are set to climb an entire 60 cents or more by May. Tom Kloza of the Oil Price Information service expects prices to top out at $4.05 a gallon, although some markets could se
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By 2050, eight states in the U.S. and five countries will ban the sale gas powered vehicles and only allow zero-emission vehicles (ZEV) to be sold. Car and Driver reports that eight states (California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island, and Vermont) and five countries (Germany, the Netherlands, Norway, Quebec, the United Kingdom) will only allow automakers to sell ZEVs by 2050. The announcement was made against the backdrop of the United Nations Conference
2050 Will See No More Gas Cars In Certain Countries and States
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The Volkswagen diesel emission scandal has given many a black eye. Robert Bosch GmbH, a supplier of diesel engine technology was one of those as it found itself under investigation by German authorities to see whether or not it aided and abetted in the scandal. The company also had to pay out $327.5 million as part of a settlement in the U.S. But the company isn't giving up on diesel just yet. This week at the Bosch’s annual press conference, CEO Dr. Volkmar Denner claimed they had found “de
But is it too late?
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One of the key materials used in electric car batteries is cobalt. But there are growing concerns that the supply of cobalt is getting scarce as more and more automakers begin building electric cars. A new report from Bloomberg New Energy Finance says cobalt shortages are expected to happen earlier than previously forecast. This issue possibly brings a big challenge to the rollout of electric vehicles over the next five to seven years. "The long lead time to bring on new mines and the
More electric vehicles mean more cobalt supply problems
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Market forecasts of the future is a fragile thing, yet LMC Automotive has a strong reputation as a consulting firm looking at the global markets. The daily announcements of electric-car churn, major production investments, battery supply, etc. is cause for people to want to take a reality check of the projections by various OEM producers to individual government pronouncements. US projection is that fossil fuel light-duty autos will still be 69% or 7 out of 10 autos on the road in 2030. Acc
95% of Auto's sold in 2018 globally were ICE, what should we expect in 2030?
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William Maley Editor/Reporter - CheersandGears.com April 18, 2012 New analysis from TrueCar, an online research firm, shows the average transaction price of new cars are on the rise. TrueCar looked at sales data from last month and found that the average price was 30,748, a rise 6.9% over the previous year. So why the increase in average price? The answer lies in the options list. Consumers are ticking more boxes on the list like never before, with the average new car being very close to “f
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When the EPA and NHTSA unveiled the proposal for revised fuel economy standards, there was a key part that brought up a lot of debate: The claim that the new regulations would reduce the number of fatalities and crashes. As we pointed out in our story, there were a number of holes in that argument. It seems we were not the only ones questioning this. Yesterday, the review of the proposal done by the White House's Information and Regulatory Affairs was made public. In it are hundred of pages
Ah, interagency fighting.
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William Maley Editor/Reporter - CheersandGears.com February 11, 2012 Former President George W. Bush spoke this week to a gathering of auto dealers. During his speech, Bush defended his decision on bailing out Chrysler and General Motors. "I'd do it again. I didn't want there to be 21 percent unemployment," Bush told dealers. Bush told dealers he believed in the free market and in normal conditions, automakers and other businesses should have been allowed to fail. "If you make a bad decisi
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As lawmakers continue to work on comprehensive tax reform, one item related to the automotive industry on the table was the tax credit for electric vehicles. The credit, which can be up to $7,500, was dropped in the House version of the bill but kept in the Senate version. The credit was started in 2009 as part of the economic stimulus package as a way to encourage investment by auto manufacturers in the development of electric powered or assisted vehicles. The the current version of the bil
The credit of up to $7,500 remains untouched.
- Editor-in-Chief
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William Maley Editor/Reporter - CheersandGears.com May 1, 2012 From the Twilight Zone file: USA Today reports that 6.5% of new vehicles sold in the first quarter were equipped with a manual transmission, which is more than double of vehicles sold with them in 2007. It's also the highest amount since 2006 when 7.2% vehicles were sold with manual transmission. The take rate is more impressive when you take into account that 19% of the 2,360 different models on sale offer a manual. The increas
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The recovery process of Hurricane Harvey is in full swing and nowhere is this more apparent than the amount of people heading to dealers. Steven Wolf, chairman of the Houston Automotive Dealers Association tells Automotive News that dealers in the Houston area "abnormal" traffic as people come in looking for a replacement. The sudden rise isn't that surprising as the Houston metro area is about the size of New Jersey. Wolf said the first order business for many folks is to get back into a
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There has been a prevailing thought about the likes of Uber and Lyft that once they switch from human drivers to self-driving vehicles, they would stand to see a significant reduction in overall operating costs. This possibly means consumers could see these services as an alternative to owning a vehicle. But a new study from the Massachusetts Institute of Technology (MIT) disputes that claim. Researchers Ashley Nunes and Kristen D. Hernandez examined the San Francisco market on the per-mile
...That whole autonomous-vehicle will be our savor to ride-hailing services.... that may not be exactly true...
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Here is a paradox for you: Automakers have been increasing the number of safety features in their vehicles to help protect or avoid a crash. But this has also brought an unforeseen consquence; crash your vehicle and it is more likely that your insurance company will total it. That's according to a story from Automotive News who spoke with Bob Tschippert, senior vice president of Dallas-based underwriter Risk Theory. Tschippert explained that all of these new features has increased the costs
How new safety features are causing more vehicles to be totaled
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Since the Volkswagen diesel emission scandal came to light, more scrutiny has been put on automakers and emissions standards. Recent real-world tests of European market diesel vehicles have revealed a number were 10 times over the legal limit for emissions. With stricter regulations coming into effect next year, automakers are reconsidering their investment in diesel. Case in point is Renault. Reuters has learned from sources at the company that it believes diesel engines will disappear fro
Renault sees a dim future for diesel in Europe
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Prices on new pickup trucks have been steadily increasing as more people are choosing them as their family vehicle and in turn are wanting more luxury features. But this rise in prices has been making it harder for the average buyer to afford one. Data from Edmunds shows through September, the average transaction price for a full-size pickup is $48,377; a 48 percent increase when compared to 10 years ago and 19 percent increased when compared to 2013. "A 48-percent increase in price is
All of those luxury touches are causing prices to climb
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By William Maley Staff Writer - CheersandGears.com May 16, 2013 During a congressional hearing on crash-prevention features yesterday, the National Highway Traffic Administration's administrator David Strickland told the hearing that NHTSA was considering a new mandate to require new vehicles to be equipped with an automatic braking system. Automatic braking systems uses either or both radar and cameras to monitor the road for vehicles and objects then apply the brakes if the system detects
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China has announced today that it would be reducing tariffs on U.S.-built cars and car parts from 40 to 15 percent beginning on January 1st. This reduction will last for three months as the U.S. and China begin hashing out a new trade deal. We first reported the reduction of the tariffs earlier this week. China's Ministry of Finance posted on their website said it hopes the talks between the two can go quickly and remove "all additional tariffs on each other’s goods" that were brought forth
Walking somewhat back from the tariff cliff
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William Maley Editor/Reporter - CheersandGears.com December 9, 2011 The National Highway Traffic Safety Administration proposed today a new rule that would make all keyless ignition systems operate in the same manner. The proposed rule would require the system be able to turn off the engine regardless of the position the gear selector is in. The rule would also reduce the number of seconds someone has to hold the button to turn the engine and have an audible warning if the driver tries to sh
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April's auto sales are one most automakers would like to pretend never happen due to big declines. But if there is a silver lining to April sales, it has to go to small sports cars. Automotive News ran the numbers and found that sales of small sports cars rose 3.4 percent so far this year. Contrast this with 12 percent drop in overall demand for cars. The big winner in this group was the Mazda MX-5 Miata with sales up 35 percent so far this year. Sales in April declined slightly from March
There is a slight silver lining to April's sales figures
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William Maley Staff Writer - CheersandGears.com June 28, 2012 The average age of a vehicle in the U.S. has hit a record high. According to Experian Automotive, the average age of the 245 million vehicles registered in the U.S. during the first quarter of 2012 was 11 years. That's an increase of just over 2 months when compared to last year. Experian Automotive goes onto say that more than 52 million cars and trucks in the U.S. are 16 years or older. Experian Automotive's analysis also found
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Another wave of fallout from the Volkswagen diesel emission scandal could be coming later this week in a German court. Reuters reports that Germany’s federal administrative court will be ruling whether or not local governments could ban diesel vehicles. Environmental group DUH sued the Stuttgart and Duesseldorf governments for over levels of diesel particulate matter exceeding European Union limits after Volkswagen admitted to cheating on emission tests. Local courts ordered the government
Could cause serious issues in terms of resale values
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2018 saw a continuation of near-record sales and large profits for automakers in the U.S., but that appears to be coming to an end. Bloomberg reports various factors are conspiring to end this trend such as increasing interest rates and the average price of a new vehicle hitting record highs. While some may point out that 2018 saw a 0.3 percent increase in vehicle deliveries (17.6 million according to AutoData), analysts point that this is due to the tax cuts brought by President Donald Trump la
The sales party is coming to a close
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William Maley Staff Writer - CheersandGears.com August 6, 2013 New data from R.L. Polk released today shows that the average age of a vehicle in the U.S. stands at a record high of 11.4 years. That's 0.2 years higher from last year and and nearly two full years higher than in 2007. Passenger cars currently are the oldest vehicles on the road with an average of 11.4 years. Light trucks are not that far behind with an average age of 11.3 years. Interestingly, the volume of vehicles between 6
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The battle to be the first Chinese automaker to make it in the U.S. is heating up. Ford's Chinese partner Zotye has been setting up agreements for about 20 dealerships in the US, The goal is to bring the Zoyte T600 to the US in 2020. Previously Guangzhou Automotive had planned to bring their vehicles to the U.S. in 2019, but Trump's tariffs would delay their arrival. The T600, which looks like a cross between an Audi Q5 and previous generation VW Tiguan, sells between approximately $12,00
Lining up dealers to sell a budget crossover in 2020.
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Oshkosh Defense was awarded a 10 year contract by the USPS to create, build and deliver up to 165,000 auto's for postal delivery across the United States of America. These auto's will be made up of traditional internal combustion engine, Hybrid and electrical vehicles. These purpose built, right-hand-drive vehicles will be used for mail and package delivery. A minimum of 50,000 to a maximum of 165,000 auto's over a 10 year time frame was agreed upon contract for a modern AC equipped NGDV or next
February 23rd 2021 the USPS awarded to Oshkosh Defense a contract for delivering up t 165,000 U.S. built vehicles over the next 10 years to modernize the postal delivery fleet. This will be made up of gas powered, Hybrid and electric vehicles with the first auto's set to be delivered in 2023.
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By William Maley Staff Writer - CheersandGears.com February 14, 2013 After the whole Hyundai-Kia mileage fiasco, the EPA says it will be conducting more fuel economy audits. Jeff Alson, a senior EPA engineer said at a conference about the government’s 2025 fuel economy standard that the agency performs “routine audits” of manufacturer's mileage claims, but does admits more can be done. “We’ll probably do more of that in the future than we did in the past,” Alson said. Alson also told the c
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William Maley Editor/Reporter - CheersandGears.com May 31, 2012 Despite the fullsize car getting a kick in the pants with vehicles like the Chevrolet Impala, Toyota Avalon, and Ford Taurus, the fullsize car is becoming an endangered species. R.L. Polk & Co reports that the fullsize sedan market has seen its relevance halved. Fullsize sedans have seen their market share drop from slightly above 5% of all vehicles sold in 2006 to just 2.3% in the first three months of this year. Also, the
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The project of a trade war between the U.S. and China (along with the European Union) has many automakers on edge. Some are beginning to speak out about the possible dangers it may bring. Mercedes-Benz's parent company, Diamler AG announced yesterday that its full-year earnings will be slightly lower than last year. Their reasoning comes down to consumers in China buying fewer SUVs that are imported from the U.S. Most of Mercedes-Benz SUVs are built in Alabama. “Remember, for those fol
One Predicts a Hit on Profits, While the Other Says it will threaten jobs
