Car Blog

As gas prices remain high, now is a good time to buy a large SUV, according to the recent Shoppers Insights report from the AutoTrader.com Trend Engine. In a tracking study conducted by AutoTrader.com, 66 percent of new-car shoppers indicated that they are more likely to consider a more fuel-efficient vehicle due to high gas prices, and shopping activity on the AutoTrader.com site confirms that interest in full-size and midsize SUVs has declined. Less demand for larger vehicles typically relates to more available incentives.

“Automakers have a higher need to offer deals on vehicles that are less in demand to move them off dealer lots, so there’s a connection between shopper interest in particular vehicles and the number of available incentives,” said Rick Wainschel, vice president of automotive insights at AutoTrader.com. “Because of today’s high gas prices, shoppers are showing significantly more interest in smaller, more fuel-efficient vehicles, so there are more deals to be had on larger vehicles like SUVs.”

Since the beginning of the year, views for new full-size SUVs are down 29 percent, and views for new midsize SUVs are down 11 percent. This lower demand for larger SUVs means better deals are likely to be available. In looking at the most popular full-size and midsize SUVs on AutoTrader.com in April, this is certainly the case. All five of the most-viewed new full-size SUVs on AutoTrader.com currently offer incentives, and the same is true for the five most-viewed midsize SUVs. Read the rest of this entry »

The Hertz Corporation has announced that Hertz On Demand, the global car sharing club, and IBM are together piloting a program in Germany to advance electric vehicle (EV) mobility and user adoption through intelligent recharging solutions. In a special agreement, Hertz On Demand in Germany will supply electric vehicles to the car share fleet used by IBM employees to drive between Stuttgart Airport and the company’s campus in Ehningen, about 30 km away.

Initially the electric cars provided by Hertz will be charged using decentralized generation of electricity on the IBM campus. The charging stations will be operated with intelligent IBM software that optimizes the usage of generated power by renewable energies. Furthermore, the software balances demand and availability of electricity power to prevent load peaks.

The companies are using this program as a field test to gauge acceptance and practicability of the electric vehicle and the intelligent recharging infrastructure usage. Upon success of the pilot program, they intend to add further electric vehicles to the Ehningen campus, as well as to extend the project to other IBM sites. Read the rest of this entry »

SEAT has presented its Ibiza CUPRA Concept at a recent Volkswagen Group media event that signals the start of the Beijing International Motor Show. The Ibiza CUPRA was showcased as a close-to-production concept car that heralds a new generation of the iconic CUPRA model.

The Ibiza CUPRA shows the SEAT DNA in its most concentrated form: amazing performance, the latest technology and comprehensive equipment clad in an emotional design that has been consistently developed. With its compact form, the Ibiza CUPRA Concept is a sports car for every day, combining agile driving fun with a high degree of functionality. The series-production model of the new Ibiza CUPRA will arrive towards the end of 2012.

With its 132 kW / 180 hp engine, seven-speed DSG transmission with shift paddles, XDS electronic differential lock and high-performance brakes, the Ibiza CUPRA Concept aims to showcase high technological competence. Read the rest of this entry »

Phoenix Marketing International, a Honomichl Top-50 market research firm, has reported findings that reveal “best practices” in automotive advertising for all of 2011 across multiple vehicle segments and ad media types.

The analysis was conducted using quantitative and qualitative data collected from over 148,000 evaluations of 750+ unique TV and Print ads.

The Phoenix monthly syndicated ad audit asks respondents to rate advertising spots on a variety of in-market and creative metrics. This “best practices” report determines which metrics and messaging elements resonate most effectively with their targets: luxury car and non-luxury car owners and purchase intenders. According to Phoenix’s findings, Innovation and Efficiency messaging prevails in many successful ads across the industry, and ads that are clear, believable, and informative perform well regardless of their audience. What then is the difference between a successful non-luxury car ad and a successful luxury car ad?

Phoenix analysts conclude that non-luxury respondents favor engaging ads that are humorous, clever, entertaining, and unique, while luxury respondents are more responsive to ads that have a serious tone, portray a brand they want to be associated with, and show an attractive vehicle. Non-luxury brands whose ads fared well with consumers in 2011 are Chevrolet and Volkswagen. Some of their top-performing spots included humorous scenarios with clear demonstrations of vehicle capabilities.

The report also notes that while Efficiency messaging is effective in both the non-luxury and luxury segments, luxury ads with messaging on Fuel Economy often succeed when combined with messaging on Performance. Read the rest of this entry »

The editors at Cars.com, the premier online resource for buying and selling new and used vehicles, today released their list of the top 10 most underappreciated cars currently on sale.

According to the editors, these are all vehicles that should be flying off dealer lots but for some reason have been neglected by car shoppers.

“Good products usually sell themselves, but that’s not always the reality,” said Cars.com executive editor, Joe Wiesenfelder. “There are so many great options on the market and these 10 vehicles are no exception. Our editors recommend that car shoppers research and test drive these models if they’re already shopping for similar cars. They might even get a good deal because these are not moving off lots as fast as some of their competitors.”

According to Cars.com’s editors, the top 10 underappreciated vehicles are: Read the rest of this entry »

The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Renault-Nissan Alliance an indirect majority stake in AVTOVAZ, according to a new memorandum of understanding.

The Renault-Nissan Alliance, AVTOVAZ, Russian Technologies and Troika Dialog signed the non-binding agreement today in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in AVTOVAZ to a joint venture that will control AVTOVAZ, Russia’s largest car company and maker of the iconic Lada brand.

Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13% of the joint venture in mid-2014. The joint venture will then hold 74.5% of AVTOVAZ. The transaction is expected to be complete by 2014.

Renault, which purchased 25% of AVTOVAZ in 2008 and then helped AVTOVAZ pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in AVTOVAZ, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.

Russian Technologies has agreed to restructure its outstanding loans with AVTOVAZ with approximately RUB7 billion (US$238 million) proceeds from the anticipated sale of AVTOVAZ’s non-core assets being used to repay part of Russian Technologies’ loans. The remainder of circa RUB46 billion (US$1.56 billion) of interest-free debt is being extended well beyond its current maturity date. This gives AVTOVAZ a strong balance sheet with no liquidity constraints.