http://www.cheersandgears.com/_/industry-news/ Thu, 23 May 2013 20:00:10 +0000 86400 http://www.cheersandgears.com/_/industry-news/german-luxury-brands-are-cheaper-than-the-korean-luxury-vehicles-r1584 By William Maley
Staff Writer - CheersandGears.com
May 21, 2013
 
This maybe somewhat hard to believe, but German luxury models are cheaper than their Korean counterparts in South Korea. For example, a BMW 528i is around $64,000 in South Korea while Kia's flagship K9 is around $76,400. A difference of $12,400. Consumers in South Korea are taking notice of this and are going towards the Germans.
 
Why are the German vehicles much cheaper? Lowered tarrifs. Thanks to a trade pact introduced back in 2011, duties on European products dropped from 8 to 3.2 percent. This means automakers such as BMW, Audi, and Mercedes-Benz have seen an sales increase of 25 percent in the first quarter. Meanwhile Hyundai saw its share in luxury vehicles drop 4..7 percent.
 
“Customers who were loyal to the brand for over 20 years are breaking away. It shows that imported brands are now perceived as something accessible,” said Kim Pil Soo, professor of automotive engineering at Daelim College in South Korea and an adviser to the government.
 
Source: Bloomberg
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Tue, 21 May 2013 15:43:33 +0000 67a3c1520c0b54c1f3be3fcfb4f1dca0 http://www.cheersandgears.com/_/industry-news/nhtsa-ponders-auto-braking-systems-r1576 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 a possible accident and of the driver fails to hit the brakes. Automakers such as Volvo and Mercedes-Benz offer auto braking systems and have been praised both by NHTSA and the Insurance Institute for Highway Safety.
 
Strickland told reporters after the hearing that a decision whether automatic braking systems will be made mandatory or if more research will need to take place sometime later this year.
 
Source: Automotive News (Subscription Required)
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Thu, 16 May 2013 17:50:48 +0000 ca49dcab7677fd5d3108f9a9b250d604 http://www.cheersandgears.com/_/industry-news/crossovers-are-eating-up-sales-of-midsize-sedans-r1564 By William Maley
Staff Writer - CheersandGears.com
May 10, 2013
 
While the midsize sedan market as a whole remains the single largest segment in the U.S., sales of the Honda Accord and Toyota Camry are shrinking due to the rise of crossovers.
 
"While the segment is still growing year-over-year, it's nowhere near what it was growing last year as the industry was launching a lot of new midsize cars," said Bill Fay, the U.S. head of the Toyota brand.
 
The rise of crossovers are being fueled by their practicalness, ability to get in and out much easier, and improved fuel economy. The price gap between midsize sedans and crossovers has also narrowed. Kelly Blue Book says a crossover costs $1,300 more on average than a midsize sedan. To put it another way, the difference in monthly payments between a midsize sedan and a crossover is less than $20.
 
"Fundamentally, both serve the family market. Midsize cars have gotten smaller and more expensive, because of a variety of factors. People are switching to crossovers, because they satisfy the family needs very well," said Mustafa Mohatarem, General Motors Co's chief economist.
 
Source: Reuters
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Fri, 10 May 2013 04:38:27 +0000 67a365a363e759793d84a4868d22bb56 http://www.cheersandgears.com/_/industry-news/vpg-autos-suspend-operations-r1563 By William Maley
Staff Writer - CheersandGears.com
May 9, 2013
 
Another company that was a part of the $25 billion Advanced Technology Vehicle Manufacturing loan program has suspended operations. Vehicle Production Group or VPG Autos has suspended production of their wheelchair-accessible MV-1 van and laid off nearly all of its 100 employees back in February. This news is only coming to light this week thanks to comments by former VPG Autos CEO John Walsh to USA Today.
 
Walsh explained that VPG Autos stopped operations in February because the company's finances dipped below the minimum amount required as a condition of the ATMV loan. The Department of Energy stepped in and froze the assets of VPG Autos, telling the company they needed to raise funds to get back to building vehicles. VPG Autos was unable to pull this off.
 
 "They wanted us to get the remaining capital raised, and we couldn't get it done," said Walsh.
 
The Department of Energy and VPG Autos are currently examining all options including selling the company.
 
Source: The Detroit News, USA Today
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Thu, 09 May 2013 15:45:39 +0000 a522fbd52ff0d8e2c9faf085e7ec0966 http://www.cheersandgears.com/_/industry-news/vl-productions-say-destino-still-a-go-despite-fiskers-problems-r1554 By William Maley
Staff Writer - CheersandGears.com
May 5, 2013
 
With the problems that Fisker Automotive is currently going through, one of companies that is somewhat effected is VL Productions? How so? Well, VL Productions showed off a vehicle called the Destino at the Detroit Auto Show this year that used Fisker Karma as a starting point, rips out the plug-in hybrid powertrain, and slips in the supercharged 6.2L LS9 V8 from the Corvette ZR1.
 
Planned to go into production sometime in third quarter, is VL Productions worried about the future? Well not really according to one of the partners of VL Productions, Bob Lutz. Lutz tells Wards Auto that the company has already gotten twenty Karma “gliders” (don't come with electric powertrain and batteries). Lutz also said that VL ould work with the Fisker’s suppliers to build the Karma/Destino itself, although that could introduce “a logistics hassle.”
 
VL has also received a large number of inquiries from Karma owners who have an interest in converting their vehicles to using a V8. 
 
“We’ve heard from hundreds of Karma owners, with about 10% who may want to convert their cars, because sooner or later the cars might wind up as boat anchors,” Lutz said.
 
The transformation could cost $85,000 to $90,000.
 
Source: Wards Auto
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Sun, 05 May 2013 18:17:33 +0000 364196813f3b746270a9b27bd76149c9 http://www.cheersandgears.com/_/industry-news/requiem-for-a-electric-car-dream-coda-automotive-files-for-bankruptcy-r1551 By William Maley
Staff Writer - CheersandGears.com
May 2, 2013
 
Coda Automotive is the latest casualty in the electric car industry. Yesterday, the company sent out a press release announcing they would be filling for Chapter 11 Bankruptcy in the District of Delaware.
 
"After concluding a comprehensive review of our strategic options, the Board of Directors, management team and senior lending group have concluded that focusing on the Company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, CEO of CODA Holdings, Inc.
 
“We believe the restructuring process that we have entered into today will enable the Company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”
 
The company says the proceedings should take around 45 days to complete.
 
The writing on the wall for Coda Automotive has been there for awhile. The company announced layoffs and store closing after sales of the Coda Sedan didn't meet expectations. 
 
Source: The Detroit News, Coda Automotive
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
 
Press Release is on Page 2

 
CODA Holdings, Inc. to Restructure Business around Energy Storage
 
May 1, 2013 -- Los Angeles, CA -- CODA Holdings, Inc. (“the Company” or “CODA”) announced today that it is focusing its business strategy on the growing energy storage market.  CODA plans to implement the restructuring of its business through a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. The voluntary petition was filed today in the District of Delaware.  This process is intended to enable the Company to complete a sale, confirm a Plan and emerge from bankruptcy in a stronger position to execute its new business plan.  The Company expects the sale process to take 45 days to complete.
 
FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide debtor-in-possession (DIP) financing to enable the Company’s energy storage business to remain fully operational during the restructuring process.  The Company has filed a motion with the bankruptcy court for approval of the consortium, or its designee, as the stalking horse bidder in the sale process to acquire the Company post-bankruptcy.  In addition, the Company will seek to monetize value of its existing automotive business assets. 
 
"After concluding a comprehensive review of our strategic options, the Board of Directors, management team and senior lending group have concluded that focusing on the Company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, Chief Executive Officer, CODA Holdings, Inc.  “We believe the restructuring process that we have entered into today will enable the Company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”
 
CODA diversified its business and formed CODA Energy two years ago.  CODA Energy’s products are based on the same core technology, which includes its proprietary battery management and thermal management systems, found in CODA’s vehicles adapted for stationary energy storage applications.  The Company designs and builds scalable, custom energy storage solutions optimized for generation, distribution and behind-the-meter applications for commercial, residential and industrial end users.   The Company is currently shipping product, and has a robust pipeline of new customers and existing installations in the field.
 
CODA’s legal advisor in connection with the restructuring is White & Case LLP.  Emerald Capital Advisors serves as its Chief Restructuring Officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring.  Sidley Austin LLP is serving as FCO MA CODA Holdings LLC’s  legal advisor.]]> Thu, 02 May 2013 17:04:45 +0000 34b9e872ae045712e436677940befcff http://www.cheersandgears.com/_/industry-news/annual-vehicle-ownership-costs-rise-to-9122-r1533 By William Maley
Staff Writer - CheersandGears.com
April 22, 2013
 
AAA recently released their annual ‘Your Driving Costs’ study and finds that average American driver is now paying $9,122 per year to keep their vehicle on the road, an increase of 1.92% when compared to 2012. Assuming a person is driving around 15,000 miles a year, that breaks down 60.8 cents per mile.

The study looks at the costs of keeping a vehicle on road such as gas, maintenance, and insurance to name a few.

“Many factors go into the cost calculation of owning and operating a vehicle. This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile,” said John Nielsen, AAA Director of Automotive Engineering and Repair.

Fuel, insurance, and depreciation were the biggest costs in the study, totaling $6,700 per year.
 

 
 
Source: AAA
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
 
Press Release is on Page 2

 
Cost of Owning and Operating Vehicle in U.S. Increases Nearly Two Percent According to AAA’s 2013 ‘Your Driving Costs’ Study
 

• Increase in maintenance, insurance and fuel drive up average cost for sedans to $9,122 yearly, 60.8 cents per mile

ORLANDO, Fla., (April 16, 2013) – AAA released the results of its annual ‘Your Driving Costs’ study today, revealing a 1.96 percent increase in the cost to own and operate a sedan in the U.S. The average cost rose 1.17 cents to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.
 
“Many factors go into the cost calculation of owning and operating a vehicle,” said John Nielsen, AAA Director of Automotive Engineering and Repair. “This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile.”
 
The findings of the 2013 ‘Your Driving Costs’ study include:
 

 
In-depth findings of this year’s study, including a breakdown of specific costs by category of vehicle and various annual mileages, are contained in the ‘Your Driving Costs’ brochure which is available at select local AAA branch offices or may be downloaded in the additional resources bar.
 
Nielsen continued, “Before you make any vehicle purchase, it is important to determine ownership and operational costs and compare them to your current and future financial situation.” To assist consumers in determining their individual driving costs, the AAA ‘Your Driving Costs’ brochure contains a worksheet that can be filled out and personalized for a specific area, driver and vehicle.
 
Maintenance Costs Up 11.26 Percent
The costs associated with maintaining a vehicle had the single largest percentage increase from 2012 to 2013, growing by 11.26 percent to 4.97 cents per mile on average for sedan owners. AAA’s estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles including labor expenses, replacement part prices and the purchase of an extended warranty policy.  Driving the increase in maintenance costs is significant increases in labor and part costs for some models and a major increase in the price of extended warranty policies due to high loss ratios by underwriters.
 
Fuel Costs Up 1.93 Percent
Gasoline prices were relatively stable compared to the prior year, leading to a minimal fuel cost increase of 1.93 percent to 14.45 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) actually rose 3.84 percent, from $3.357 to $3.486 per gallon. However, several vehicles in the ‘Your Driving Costs’ study had small improvements in their fuel economy ratings which partially offset the fuel cost increase. Fuel costs in the 2013 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2012.
 
Tire Costs Remain Unchanged
The cost of tires did not change from 2012 to 2013, remaining at one cent per mile on average for sedan owners. The stable price is attributed to a leveling off of past increased costs for raw materials, energy and transportation from factories to distributors across the country.
 
Insurance Costs Up 2.76 Percent
Average insurance costs for sedans rose 2.76 percent (or $28) to $1029 annually. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a low-risk driver with a clean driving record. Quotes from five AAA clubs and insurance companies representing seven states showed across-the-board modest increases for all sedan sizes, with large cars having less of an increase than small- and medium-size sedans.
 
Depreciation Costs Rise .78 Percent
After seeing a drop in 2012, depreciation costs were up slightly in 2013, increasing .78 percent to $3,571 a year. This change may be a consequence of recovering new vehicle sales, resulting in more used cars available in the marketplace and thus the softening of the resale value of clean older models.
 
63^rd Year of ‘Your Driving Costs’ Study
AAA has published ‘Your Driving Costs’ since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.
 
The ‘Your Driving Costs’ study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA’s 2013 ‘Your Driving Costs’ brochure for a list of vehicles and additional information on the underlying criteria used in the study.]]> Mon, 22 Apr 2013 00:33:26 +0000 c21f4ce780c5c9d774f79841b81fdc6d http://www.cheersandgears.com/_/industry-news/subcompact-sales-slide-despite-high-gas-prices-r1526 By William Maley
Staff Writer - CheersandGears.com
April 16, 2013
 
With gas prices on the rise, you would think sales of subcompact vehicles would also be rising? No. Wards Auto reports that subcompact sales are off since October, even though the price of a gallon of gas is rising and holding steady at $3.50 to $4.00 across the country.
 
So why the drop off in subcompacts? Wards has a couple ideas to explain this. For one, the reason might lie in the boom/bust cycle that comes as a result of new or aging models in each segment. For example, the large crossover class are up a whopping 61% in the same time frame, thanks in part to new models and derivatives. But as Wards points out, most of the subcompact lineup are only two years old or less.
 
The more likely reason for the drop off may have to deal with compact cars getting the same fuel economy as subcompacts. Also the difference in price between compacts and subcompacts isn't really there.
 
Source: Wards Auto
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Tue, 16 Apr 2013 18:21:02 +0000 5f928e920ac121d34a2aeae8c87953d4 http://www.cheersandgears.com/_/industry-news/ford-and-general-motors-collaborate-on-nine-and-ten-speed-transmissions-r1523 By William Maley
Staff Writer - CheersandGears.com
April 15, 2013
 
Back in October, we reported that Ford and General Motors signed a memorandum of understanding to jointly develop next-generation nine and ten-speed automatic transmissions. Today, both auto manufacturers have gone on the record and confirmed this joint operation.
 
The two automakers aren't saying which specific vehicles will get the nine and ten-speed transmissions, but did say the transmissions are designed for front- and rear-wheel-drive cars, crossovers, trucks and SUVs.
 
"Engineering teams from GM and Ford have already started initial design work on these new transmissions," said Jim Lanzon, GM vice president of global transmission engineering in a press release today.
 
This joint operation marks the third time the automakers have worked together. Previous efforts have included building six-speed automatics found in the Ford Fusion, Ford Explorer, Chevrolet Cruze, Chevrolet Malibu and few others.
 
"The goal is to keep hardware identical in the Ford and GM transmissions. This will maximize parts commonality and give both companies economy of scale. However, we will each use our own control software to ensure that each transmission is carefully matched to the individual brand-specific vehicle DNA for each company," said Craig Renneker, Ford's chief engineer for transmission and driveline component and pre-program engineering.
 
Source: Ford, GM
 
Press Release is on Page 2

 
Ford and GM to Jointly Develop Advanced Nine- and 10-Speed Automatic Transmissions

- New project to build on success of previous collaborations
- Initial design and engineering work is already under way
- New transmissions will improve fuel economy and enhance performance

DEARBORN, Mich., April 15, 2013 – Ford Motor Company and General Motors Corporation have signed an agreement under which both companies will jointly develop an all-new generation of advanced-technology nine- and 10-speed automatic transmissions for cars, crossovers, SUVs and trucks.

The new transmissions, to be built in both front- and rear-wheel-drive variants, will improve vehicle performance and increase fuel economy.

The collaboration enables both automakers to design, develop, engineer, test, validate and deliver these new transmissions for their vehicles faster and at lower cost than if each company worked independently.

"Engineering teams from GM and Ford have already started initial design work on these new transmissions," said Jim Lanzon, GM vice president of global transmission engineering. "We expect these new transmissions to raise the standard of technology, performance and quality for our customers while helping drive fuel economy improvements into both companies' future product portfolios."

A track record of success
This new agreement marks the third time in the past decade that GM and Ford have collaborated on transmissions. These collaborative efforts have enabled both companies together to deliver more than 8 million durable, high-quality six-speed front-wheel-drive transmissions to customers around the globe.

Ford installs these six-speed transmissions in some of America's favorite vehicles, such as the Ford Fusion family sedan, the Ford Edge crossover and Ford Escape and Explorer SUVs, while GM installs them into a variety of high-volume, award-winning products such as the Chevrolet Malibu, Chevrolet Traverse, Chevrolet Equinox and Chevrolet Cruze.

That original collaboration served as a template for the new one. As before, each company will manufacture its own transmissions in its own plants with many common components.

"The goal is to keep hardware identical in the Ford and GM transmissions. This will maximize parts commonality and give both companies economy of scale," said Craig Renneker, Ford's chief engineer for transmission and driveline component and pre-program engineering. "However, we will each use our own control software to ensure that each transmission is carefully matched to the individual brand-specific vehicle DNA for each company."

"With the jointly developed six-speed automatics we have in production today, we've already proven that Ford and GM transmission engineers work extremely well together," said Joe Bakaj, Ford vice president of powertrain engineering. "Our front-wheel-drive transmissions have exceeded expectations and there is every reason to believe we will have the same success with these all-new transmissions."

"This agreement provides tremendous benefits for both companies, and it will pay big dividends for our customers and shareholders," added Lanzon. "By jointly sharing the development of these two new families of transmissions, both GM and Ford will be able to more efficiently use our respective manpower resources to develop additional future advanced transmissions and bring them to market faster than if we worked alone."

Further technical details and vehicle applications for these transmissions will be released by each company at the appropriate time before launch.]]> Mon, 15 Apr 2013 15:04:24 +0000 88ceeb0496aa9e60b4b6b6a5dafe3648 http://www.cheersandgears.com/_/industry-news/34-million-recalled-by-japan-auto-companies-r1517 Staff Writer Alternative Energy - CheersandGears.com
& Black-Knight
 
It seems that just yesterday Japanese automakers and their vehicles were seemingly and unanimously praised for their quality and reliability. However, today a new series of recalls out of the land of the rising sun herald a stark reminder that not every automaker is perfect.
 
Today, might finally be a major wake up call for some that these companies are not bullet proof.
 
Today Toyota, Nissan, Honda and Mazda announced recalls totaling 3.4 million auto's world wide, with over 1 million in the US alone.
 
The recall is over defective airbags. These are airbags supplied to these companies by the worlds 2nd largest manufacture / Supplier. Takata Corp.
 
The defect is in the propellant for the inflator as part of the airbag system for the front passenger seat which can cause it to not inflate properly. As a result, there is a risk of fire starting or passengers being burned. The faulty airbags were produced at their Mexico factory between 2000 - 2002.
 
Toyota has stated that the improperly manufactured parts could cause the front passenger airbag to rupture and deploy abnormally in the event of a crash.
 
The parts can be repaired/ replaced in 1 to 2 1/2 hrs in most cases.
 
Takata says it has only been informed of  2 million global recalls according to Reuters reports, but the statements by Toyota and Honda would seem to imply it could be a much bigger recall to locate the suspected inflators.
 
Toyota is recalling 1.73 million vehicles, 510,000 in North America. http://pressroom.toy...article_id=3862
 
Honda is recalling 1.14 million vehicles, 560,000 in north America. http://www.honda.com...aspx?id=7158-en
 
Nissan is recalling 480,000 vehicles, 45,500 in north america. View the official letter here: http://localtvwnep.f...ssan_recall.pdf
 
or here
 
http://www.arfc.org/...an/recalls.aspx
 
Mazda anounced 45,000 vehicles to be recalled of which 4,000 were in Japan but no other figures given.
 ]]> Thu, 11 Apr 2013 15:09:20 +0000 6dfa678a0fa26a0b36addfbc8fdc23e1 http://www.cheersandgears.com/_/industry-news/truck-manufacturers-argue-over-the-sae-towing-test-r1514 By William Maley
Staff Writer - CheersandGears.com
April 10, 2013
 
Ford, General Motors, and Ram are continuing their stance on ignoring the SAE testing procedure for towing ratings according to Automotive News.
 
The procedure, named J2807, is designed to reflect how the pickups are really used, and are supposed to be more accurate than the non-SAE numbers, which manufacturers supply. The procedure tests a pickup’s structure, propulsion, handling, braking, and thermal-handling ability, in a set environment. This procedure also has the truck equipped and not equipped with a load.
 
All of the truck manufacturers agreed to start this procedure in 2013. Only one manufacturer has actually gone ahead and implemented the procedure; Toyota.
 
Toyota isn't pleased their the only brand who is doing this and has called on the other manufacturers to “do the right thing.”
 
The big three isn't budging. General Motors says they won't implement the procedure until Ford does it. Ram is in the same boat as GM. Ford says they thought the procedure only applies to new models starting this year. They went onto say that the new F-150, due out in 2015, would use this procedure.
 
Source: Automotive News (Subscription Required)
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Wed, 10 Apr 2013 16:07:41 +0000 e6eb49c63548fd56f34508d1a0c3b37b http://www.cheersandgears.com/_/industry-news/rumorpile-mclaren-working-on-a-baby-model-r1465 By William Maley
Staff Writer - CheersandGears.com
March 26, 2013
 
McLaren is hard at work on their next model  that will slot below the MP4-12C as the automaker’s “entry-level” model, McLaren executive chairman Ron Dennis has confirmed to Autocar.
 
Wearing the codename of P13, sources tell Autocarthe model will likely be designed as a Porsche 911 Turbo rival. Power will come a detuned version of McLaren’s twin-turbocharged 3.8-liter V8. Power is expected to somewhere in the middle of 450 and 616 horsepower. The transmission will be a seven-speed dual-clutch gearbox. The chassis will be the MP4-12C’s carbon fiber “MonoCell” chassis, which was developed from the start to be feasible for use in a smaller, less expensive model.
 
Design is unknown, but Autocar speculates that it will likely follow in the footsteps of the P1 and not the MP4-12C. A drop-top is in the cards as well.
 
McLaren expects to sell up to 2,500 units for the P13, making it a volume model if it goes into production within the next three years. Pricing is expected to be below $200,000.
 
Source: Autocar
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Tue, 26 Mar 2013 03:48:35 +0000 08bded4b29e13c27e400662136eadbeb http://www.cheersandgears.com/_/industry-news/younger-buyers-heading-towards-american-and-korean-automakers-r1461 By William Maley
Staff Writer - CheersandGears.com
March 25, 2013
 
For a time, young buyers that wanted a vehicle ventured towards the Japanese brand since they offered the features and content they were looking for. Now the tide is changing with younger buyers going towards American and Korean brands.
 
Bloomberg gathered data from Edmunds and R.L. Polk which showed American automakers increased their share of retail registrations by 1.9% with 18 to 24 year olds and 1.5% with 25 to 34 year olds since 2008. Korean automakers saw the largest jump in retail registrations with a 6.8% increase in 18 to 24 year olds and 5.1% increase in 25 to 34 year olds.
 
Japanese automakers have been taking brunt of the loss with a drop of 9.8% in 18 to 24 year old group and a 7.7% drop in the  25 to 34 year old group. Japanese automakers still dominate the 35 and under crowd with 43% percent of sales going to them.
 
So what are the American and Korean automaker doing to claw some of these sales? Building vehicles that appeal to young buyers.
 
"U.S. automakers have burst onto the scene in recent years with small, fuel-efficient and affordable cars that really appeal to a young set of buyers," said Jessica Caldwell, an analyst with Edmunds.

Source: Bloomberg
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.]]> Mon, 25 Mar 2013 02:05:32 +0000 f806c5d2707545d718717be03e69a8d4 http://www.cheersandgears.com/_/industry-news/suzuki-gets-approval-from-court-concerning-chapter-11-bankrpucy-plan-r1417 By William Maley
Staff Writer - CheersandGears.com
March 6, 2013
 
The end is here for Suzuki automobiles in the U.S. 
 
On Thursday, a judge from U.S. Bankruptcy Court for the Central District of California in Santa Ana approved Suzuki's Chapter 11 reorganization plan. The plan calls for American Suzuki's motorcycle, ATV and marine engine businesses to exit bankruptcy and become part of a new, wholly-owned subsidiary of Suzuki Motor Corp, Suzuki Motor of America. Suzuki's automotive branch will go away after dealer sell off the remaining inventory.
 
"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process," said Freddie Reiss, American Suzuki's chief restructuring officer in a statement.
 
Source: Automotive News (Subscription Required), Suzuki
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
 
Press Release is on Page 2

 
Court Approves American Suzuki Motor Corporation's Chapter 11 Plan

BREA, Calif.--(BUSINESS WIRE)--American Suzuki Motor Corporation (the "Company") today announced that the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana approved the confirmation of the Company's Chapter 11 Plan, which creditors overwhelmingly accepted. Confirmation of the Plan clears the way for the Company to complete its restructuring process, which is expected to occur on March 31, 2013.

"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process"

As previously announced, the Plan approved the Company's sale of its Motorcycles/ATV and Marine divisions and Automotive parts and service operation to a newly organized, wholly-owned subsidiary of Suzuki Motor Corporation. The subsidiary will operate in the continental U.S. as Suzuki Motor of America, Inc. and will use the Suzuki products brand name

"Today's confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process," said M. Freddie Reiss, the Company's Chief Restructuring Officer. "During the next few weeks, we will take final steps to implement the Plan, which will allow the Company to sell its Motorcycles/ATV, Marine, Automotive parts and service divisions. This will promote the long-term growth of the Motorcycles/ATV and Marine divisions, as well as providing automotive parts and service through the dealer network."

A copy of the Plan is available at www.omnimgt.com. Additional information regarding Company's business realignment can be found at the following website, www.suzuki.com, or via an information hotline at 1-877-465-4819.]]> Wed, 06 Mar 2013 04:13:39 +0000 1487987e862c44b91a0296cf3866387e http://www.cheersandgears.com/_/industry-news/estimate-on-vehicles-damaged-in-sandy-rise-to-250500-r1386 By William Maley
Staff Writer - CheersandGears.com
February 24, 2013
 
Four months after Hurricane Sandy blasted the East Coast, the National Insurance Crime Bureau (NICB) announced its revised estimates for the number of vehicles damaged in the storm's wake.
 
The new total of vehicles damaged in Hurricane Sandy stands at 250,500 vehicles. This number is well above the estimate put out by National Automobile Dealers Association which say that 200,000 vehicles could be damaged.
 
The majority of the vehicle losses stem from New York (150,000) and New Jersey (60,000). NICB's data also showed how massive Sandy was, with West Virginia (1,000), Maine (500) and Vermont (500) all reporting losses.
 
NICB points out that its figures only represent insured losses - uninsured vehicles could drive the figures higher.
 
Source: NICB
Image Credit: Doug Kuntz/Splash News
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
 
Releated Story:
Sandy Cost Automakers 15,000 Vehicles, Total Vehicle Damages Could Total 200k
 
Press Release is on Page 2

 
NICB Update-Sandy Damaged Vehicles Surpass 250,000 Mark

DES PLAINES, Ill., Feb. 21, 2013 - The National Insurance Crime Bureau (NICB) today announced revised estimates for the number of vehicles damaged as a result of Sandy.

The current estimate of vehicles damaged as a result of Sandy is now set at 250,500 based on claims processed by insurance companies. New York's number increased from a previous level of 130,000 to 150,000.

This is the complete list of states generating Sandy-related vehicle damage claims in descending order:

New York 150,000
New Jersey 60,000
Connecticut 8,000
Maryland 5,500
Massachusetts 5,000
Virginia 4,500
Ohio 4,000
Pennsylvania 4,000
Delaware 2,000
New Hampshire 2,000
North Carolina 1,500
District of Columbia 1,000
Rhode Island 1,000
West Virginia 1,000
Maine 500
Vermont 500
Total 250,500


It is important to note that these are preliminary figures and may change as additional claims are received and processed. Also, these are insured losses only. There are certainly many uninsured vehicles that were damaged by Sandy and those numbers are not reflected in this information. Moreover, there is no determination as to the extent of damage to these vehicles. They could have sustained minor paint scratches from flying debris, or have been under water for days and rendered total losses.

By now there could be many Sandy damaged vehicles that are in the process of being reconditioned and sold to unsuspecting consumers all across the country. It is not illegal to buy or sell flood vehicles, or vehicles declared as salvage, as long as the parties to the sale are aware of the vehicle's status. Consumers should be aware that severely damaged vehicles may appear advertised for sale without any indication that they were at all affected by Sandy. As always, buyers should be careful when considering a used vehicle purchase in the weeks and months following a disaster such as Sandy.

Consumers can download useful checklists and learn more about flood and salvage vehicle scams and post-disaster contractor repair schemes by visiting the NICB website here. Also, NICB's VINCheck allows free consumer access to the vehicle salvage records of participating NICB member insurance companies who collectively provide 88 percent of the auto insurance in force today.

Anyone with information concerning vehicle theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422), texting keyword "fraud" to TIP411 (847411) or by visiting our website at www.nicb.org. Or, iPhone or iPad users can download the NICB Fraud Tips app to make it easy to quickly send a tip and get a response.

About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $319 billion in insurance premiums in 2010, or approximately 80 percent of the nation's property/casualty insurance. That includes more than 94 percent ($152 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.]]> Sun, 24 Feb 2013 20:56:45 +0000 3063682597f05e7a82731afefaf55300