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A blog covering the auto industry with test drives and commentary on articles from other sites

Frost & Sullivan finds changing consumer behavior toward automotive repairs and maintenance keeps repair shops on tenterhooks

Consumers invest more in the maintenance and repair of their vehicles as they expect to own the vehicles longer in the wake of financial uncertainties, job loss fears, and uncertain fuel prices triggered by the economic slump. The demand for maintenance-related jobs is on an upswing in this economic slowdown. In some regions, automotive service centers and independent repair shop owners keep a constant eye on their customers’ credit and acclimatize themselves to these changes.

New analysis from Frost & Sullivan (http://www.automotive.frost.com/), Frost & Sullivan Speaks Candidly with U.S. Automotive Shop Owners, finds that there were over 240.9 million light vehicles in use in 2007 and that the repair industry sold over $70 billion in parts to support the industry. Repair shop owners are the front line of that industry and the first place where vehicle owner behavioral changes become evident.

Though domestic vehicles account for the majority of shop traffic in the country, changes are evident in the vehicle brands that frequent the repair shops. Therefore, repair shop owners constantly monitoring their business to meet the needs of the evolving vehicle population.

Repair shop owners consider the original equipment (OE) parts far superior than their private label counterparts in fit and functional quality, and continue to promote their value to their customers, despite the current focus on low-cost repairs. On the other hand, manufacturers, retailers, and warehouse distributors (WDs) patronize private labels, as they are economical, with better margins and revenues.

The installers, though otherwise all right with the private labels, are unhappy with the inferior quality of the parts, as the reputation of their shop is at stake if their customers underrate their proficiency.

“Despite the popularity of private label products in the aftermarket, shop owners delivered scathing reviews to aftermarket private label brands and their products,” says Frost & Sullivan Global Program Manager Mary-Beth Kellenberger. “Complaints of poor quality, variable quality between part numbers within the line, and fit issues indicate that shop owners are unwilling participants in the growth of private label brands.”

The greatest challenge for independent repair shop owners is to find a way of providing quality service at a low cost. Many shop owners put their faith in the industry’s understanding of operational expenses and job profitability as a means of avoiding price wars that could spiral the industry into premature despair.

Repairers need to recognize the value of their services and set fair prices within that value range. An opportunity exists with the import vehicle owners as well. These customers have less faith in the untested private label parts but seek low-cost maintenance and repair services.

“Gaining access to quality aftermarket import brand parts is extremely important as independents position themselves as a value alternative to dealers,” says Kellenberger. “Winning the job at a price that supports each enterprise’s financial structure is as crucial to the survival of the industry as smart management to prevent cost cutting that undermines repair quality and industry profitability.”

Frost & Sullivan Speaks Candidly with U.S. Automotive Shop Owners is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: strategic overview of the North American automotive aftermarket, vehicle accessories: the next generation of automotive aftermarket growth in the United States, strategic overview of the North American heavy duty truck aftermarket, private labeling in the North American automotive aftermarket. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Source: Frost & Sullivan


Subaru Announces Pricing On New 2010 Impreza

Record-breaking model prices largely unchanged for 2010 Premium model price now $1,000 lower

Subaru of America, Inc. has announced pricing of the 2010 model year Impreza line-up, including a new Special Edition Package available on the Impreza 2.5i Premium.

Pricing for the Impreza model, which set a sales record in 2008, begins at an unchanged $17,495 for the 170-hp 2.5i with Symmetrical All-Wheel Drive as standard. (All 2010 Subaru models feature new Symmetrical AWD badging.)

Impreza blends fun-to-drive performance, safety, and functionality with Subaru Symmetrical All-Wheel Drive, making it an unmatched value in the compact segment. As well as receiving the highest possible ratings in IIHS crash tests, and being listed as 2009 IIHS “Top Safety Pick”, the Impreza also scored NHTSA five-star crash test ratings for frontal impact for both the driver and front passenger, a five-star rating for the driver side impact, and a four-star rating for the rear passenger side impact.

The Impreza 2.5i Premium is reconfigured for 2010, with pricing starting at $18,495 – $1,000 less than the 2009 model.

Impreza 2.5i, 2.5GT and Outback Sport models add a stylish new grille and an attractive new exterior color Camellia Red Pearl is available on 2.5i & 2.5GT models. GT models are powered by a 224-hp intercooled turbo Boxer engine and teamed to standard 4-speed automatic transmission and Active AWD version of Symmetrical All-Wheel Drive.

The value continues with the introduction of the new Special Edition Package that includes power moonroof and fog lights as well as the All-Weather Package. The Impreza 2.5i Premium with the Special Edition Package starts at $18,995.

Bluetooth hands-free cell phone capability is now standard on 2.5i Premium and WRX Premium models with the navigation system.

For 2010, the Impreza Outback Sport model adds Paprika Red Pearl/Steel Silver Metallic and a new two-tone exterior color, and retains its starting price of $19,995.

The performance-oriented 2010 Impreza WRX has a starting price of $24,995, again unchanged from last year and is available exclusively with a 5-speed manual transmission. The All-Wheel Drive Impreza WRX features a 2.5-Liter DOHC inter-cooled turbocharged engine delivering 265 horsepower, a new exterior side sill, 225/45 R17 lower profile summer performance tires, 17-inch alloy wheels, an Aero Package, WRX upholstery w/red stitching and WRX logo on front seats, leather-wrapped steering wheel and red stitching, and STI type grille w/WRX badge. The Impreza WRX 5-door model has the same features as the 4-door, plus a rear spoiler and has a starting price of $25,495.

Pricing for the high-performance model WRX STI, which for 2010 features black alcantara trim and a black center console with red stitching also remains unchanged at $34,995.

Destination and delivery for all 2010 Impreza models is $695 (excluding Alaska).

More information is available at www.subaru.com.

2010 Impreza Model Pricing
MSRP including
Model / Trim Transmission Options MSRP Dest & Del’y

Impreza 4-Door Models

2.5i 5MT 01 $17,495 $18,190
2.5i Auto 01 $18,495 $19,190
2.5i Premium 5MT 01, 11 $18,495 $19,190
2.5i Premium Auto 01, 11, 12 $19,495 $20,190
2.5GT Auto 01 $26,995 $27,690
WRX 5MT 01 $24,995 $25,690
WRX Premium 5MT 01, 14 $27,495 $28,190

Impreza 5-Door Models

2.5i 5MT 01 $17,995 $18,690
2.5i Auto 01 $18,995 $19,690
2.5i Premium 5MT 01, 11 $18,995 $19,690
2.5i Premium Auto 01, 11, 12 $19,995 $20,690
Outback Sport 5MT 01 $19,995 $20,690
Outback Sport Auto 01 $20,995 $21,690
2.5GT Auto 01 $27,495 $28,190
WRX 5MT 01 $25,495 $26,190
WRX Premium 5MT 01, 14 $27,995 $28,690

STI

STI 6MT 01, 15, 16, 25, 26 $34,995 $35,690

Options

Option Code Description MSRP
01 Base Model N/A
11 Special Edition Package $500
12 Navigation and Power Moonroof Package $3,000
14 Navigation System $2,000
15, 25 Silver/ Gold BBS Package $2,000
16, 26 Silver/ Gold BBS Package + Navigation System $3,800

Source: Subaru of America, Inc.


Distracted driving the top reason that 35 percent of drivers feel less safe than five years ago

Eighty-Seven Percent Rated Texting or E-mailing a Very Serious Threat, Ranked Almost Even with Drunk Driving

Thirty-five percent of drivers said they feel less safe than they did five years ago, according to the second-annual 2009 Traffic Safety Culture Index released today by the AAA Foundation for Traffic Safety. Overall, the majority of American motorists report that they feel no safer now than they did five years ago.

In an effort to spark the dialogue about improving our safety culture and working toward the goal of zero deaths on our nation’s highways, the AAA Foundation launched its second-annual survey of the driving public on a wide variety of issues.

“Over the past twenty-five years, motor vehicle crashes have, prematurely, violently and tragically ended the lives of one million Americans – killing more of our children, teens and young adults than any other single cause,” said AAA Foundation President and CEO Peter Kissinger. “That’s one death every 13 minutes.”

Distracted driving was top-of-mind for motorists, with 80 percent of motorists rating distracted driving as a very serious threat to their safety. Even those who admitted to distracted driving acknowledged they were putting themselves in danger. For example, more than half of those who admitted to reading or sending text messages or e-mails while driving indicated they were much more likely to have an accident.

“As mobile technology evolves at a breakneck pace, more and more people rightly fear that distracted driving – phone calls, e-mails and texting – is a growing threat on the highways. The 2009 Traffic Safety Culture Index shows that people today fear distracted drivers almost as much as drunk drivers,” said AAA Foundation President and CEO Peter Kissinger.

Following are highlights from the 2009 Traffic Safety Culture Index:

  • 90% of respondents said people driving after drinking alcohol was a very serious threat to their safety; 87% said the same about text messaging or e-mailing while driving
  • 80% of motorists rated distracted driving as a very serious threat to their safety, yet many admitted performing distracted behaviors like talking on the cell phone or texting or e-mailing while driving within the last month
  • Over two-thirds admitted to talking on a cell phone and 21% admitted to reading or sending a text message or e-mail while driving in the past month
  • Nearly 90% said that texting or e-mailing while driving was a very serious threat to safety, yet 18% of those same people admitted texting in the past month
  • 58% said that talking on a cell phone while driving was a very serious threat to their safety, yet 55% of those same people self-reported talking on cell phones while driving in the past month
  • Nine out of 10 people considered running a red light unacceptable, yet 26% of those same people admitted to running a red light
  • Nine out of 10 people considered tailgating unacceptable, yet 24% of those same people admitted to tailgating in the past 30 days
  • 63% considered speeding 15 mph or more on the highway unacceptable, yet 28% of those same people admitted doing so in the past month.
  • Fully 95% of people rated speeding 15 mph or more over the speed limit on residential streets unacceptable, yet 21% of those same people admitted doing so in the past month.

A previous AAA Foundation survey found two out of three drivers mistakenly believe using a hands-free cell phone is safer than talking on a hand-held device. In this survey, the use of a hands-free cell phone was the only behavior that more than half of all drivers rated as acceptable, yet numerous other studies have shown it is equally as dangerous as talking on a hand-held phone – both quadruple your risk of being in a crash.

“There are many motorists who would never consider drinking and driving, yet they think it’s somehow okay to text or e-mail while driving. We need to stigmatize distracted driving to the same degree as drunk driving in our culture, because both behaviors are deadly,” said Kissinger. “This survey shines the light on drivers behaving badly; it also raises some dangerous public misconceptions. We’d like to end the belief that ‘it’s the other guy’s problem’ and end the false sense of security that ‘if I chat on a hands-free cell phone I’m somehow safer.’”

The AAA Foundation continues to shed light on the lack of American traffic safety culture and is working to build a social climate in which traffic safety is highly valued and rigorously pursued. Given the preventable nature of the majority of traffic deaths, the AAA Foundation implores drivers to stay off the phone, buckle up, don’t drink and drive, and obey the speed limit. For more information, visit www.AAAFoundation.org.


Visteon Launches Virtual Instrument Cluster on 2010 Range Rover

Global automotive supplier Visteon Corporation has launched a reconfigurable cluster platform on Jaguar Land Rover’s new Range Rover – available as a standard fit on all derivatives in Land Rover’s global markets.

Replacing the conventional instrument cluster design, the reconfigurable 12.3-inch full color Thin Film Transistor (TFT) display integrates multiple functions and operating modes to present on-demand driver information via virtual gauges, graphical displays and a message center. Developed for the 2010 Range Rover model range, this is Jaguar Land Rover’s first “virtual cluster” application.

By introducing an advanced graphics interface, the reconfigurable cluster presents information to the driver in an innovative way, while helping reduce driver distraction. The cluster redefines the functional role of instrumentation by providing an interface to safely manage the complexity of the Range Rover’s advanced vehicle systems through the reconfigurable message center, which acts as the information hub for the vehicle.

“The new display technology used by the 2010 Range Rover is a major advance. It gives us tremendous flexibility in presenting information, so that the driver gets precisely the data he or she requires, in all driving conditions,” explains Nick Rogers, chief engineer, new vehicle architecture, Range Rover.

The Range Rover “virtual cluster” is the first production program launched from Visteon’s reconfigurable cluster platform and the latest in its range of clusters with graphic displays. The platform also offers vehicle manufacturers the flexibility to use one hardware solution with multiple graphic applications for easier vehicle differentiation or mid-cycle refresh.

“This powerful ‘virtual image’ cluster is an example of Visteon’s global platform strategy, which provides vehicle manufacturers with cost-effective solutions through hardware and software architecture re-use,” said Steve Meszaros, president of Visteon’s electronics product group. “Although this high-end cluster initially is designed for the best-in-class comfort and refinement of the Range Rover, Visteon’s unique system integration approach is set to make large TFT displays a viable and affordable alternative to conventional clusters.”

The cluster was developed in conjunction with Land Rover by Visteon’s engineering teams in Chelmsford, U.K., with support from development teams in the U.S. and software development from Visteon Software Operations, India, and Visteon Software Technologies, France. The reconfigurable platform design is based on a new architectural approach to efficiently manage the complexity of the increased graphics content and display management.

Visteon’s advanced technological expertise has been combined with its extensive proprietary research on consumer perceived quality and product design to bring forward a technology that offers freedom of design for OEMs and maximum ease of use for the consumer.

Visteon is a leading, global manufacturer of driver information systems and central information displays, producing more than 7 million units annually from manufacturing plants across the globe. Visteon’s strengths include its global and scalable product platforms, comprehensive cockpit electronics portfolio, and the ability to provide seamlessly integrated systems and products that connect people to their vehicles and the world around them.

Through its partnerships with leading technology providers, Visteon has positioned itself to be flexible to react to the fast-developing consumer electronics market and is embracing the transition from hardware solutions to software-defined solutions, while its global platforms maintain a central core of robust automotive solutions.

Source: Visteon Corporation


Barbican Turbo, Middle East Modified Car Show to Captivate Audiences

Modified car and motorsports enthusiasts from across the UAE and the Gulf are to be captivated by Barbican Turbo, the region’s premier tuning, custom car and motorsports festival organised by United Business Media.

Following on from last years success when over 19,000 enthusiasts from across the Middle East descended on the Abu Dhabi National Exhibition Centre (ADNEC), Barbican Turbo 2009, to be held from 8th to 10th October, promises visitors an even more exciting and interactive experience, packed with features and stunning vehicles from international and regional tuners.

Features of the show include the ‘Top 100′, the 2nd UAE National Sound Off, the 1st National Dyno Shoot Out’ competition and for the very first time in the Middle East visitors will be treated to extreme driving displays courtesy of world-class drivers from the European Drifting Championships.

Matt Tarrant, Show Manager Barbican Turbo, commented on why Barbican Turbo is such a popular event in the region; “Barbican Turbo is the only event of its kind in the region, we are a dedicated custom, modified, tuning and motorsports show dedicated specifically to fans of this sub-culture.”

He added “This is why our show was so successful last year and why it will be bigger and better this year – there is more activity planned, with new show content, companies, zones and features including among others the Paddock area which is a dedicated spot for local car clubs to hang out and show off their rides to visitors.”

Entries are already being received for the Top 100 competition which will award titles such as ‘Car of the Festival’, ‘Best Engine’, and ‘Best Airbrush’. The winner of the Top 100 Amateur Car of the Festival trophy will also win a fantastic prize from Swiss International Airlines, Swiss Tourism and Zermatt Tourism. This includes 2 business class flights to Zermatt, three nights in a 5 star hotel, a gorge adventure, summer skiing, helicopter ride around the Matterhorn and a downhill ride with a monster scooter. Entrants to the competition are also entitled to a 20% discount on Konig Wheels from selected outlets in the U.A.E. to place on their cars for the competition and will receive their voucher from United Business Media once their entry is received.

The 2nd UAE National Sound Off competition will see titles awarded for ‘Best Installation’ and ‘Loudest Stereo’ and there will also be the 1st ever UAE National Dyno Shoot Out competition to determine the car with the greatest horsepower.

Running alongside Barbican Turbo is Adrenaline Sports Live, presented by Rani, the Middle East’s only action packed adrenaline sports festival where visitors will be able to try out sports from indoor skydiving to skiing. Tickets purchased for either event will provide entry into both festivals.

For all the information about the festival and to enter the Top 100 please visit: http://www.barbicanturbo.com, follow Barbican Turbo on Twitter and Facebook and to purchase tickets, visit http://www.boxofficeme.com and selected retail outlets.

Barbican TURBO: the Ultimate Auto Fest is organised by UBMi UAE, and is one of the four founding partners of the Abu Dhabi National Exhibition Company.

Barbican TURBO: the Ultimate Auto Fest will cover a range of areas, providing both trade visitors and consumers everything they need to modify either their or their clients’ vehicles, including:

  • Tuning and Performance (air intakes, exhausts, turbochargers; all aftermarket engine parts)
  • Restyling and Accessories (body kits, carbon fibre bonnets and spoilers, graphics, aftermarket front and rear lights, tints, paints, suspension, dress-up parts for exterior, interior and the engine-bay)
  • Car Care and Accessories (shampoos and polishes, oils and lubes etc)
  • Mobile Electronics and Technology (I.C.E – In Car Entertainment, stereos, TV screens, DVD players, radar detectors, alarms etc)
  • Aftermarket Wheels and Tyres (chrome wheels, racing wheels, SUV wheels, and all types of tyres)
  • Tools and Maintenance (all the equipment related to the servicing, modifying and maintenance of vehicles)
  • Lifestyle Products (clothes, trainers, sunglasses, mobile phones, technology and fashion)
  • Business Services (such as specialist car and bike insurance companies and brokers)

Toyota Launches Cash for Clunkers Program and Advertising Campaign, Special Lease Rates

Toyota will begin airing national and regional television commercials today in support of the government’s Car Allowance Rebate System (CARS) by informing consumers that the Toyota family of cars and trucks has 25 models that qualify for federal rebates ranging from $3,500 to $4,500.

The program, better know as “Cash for Clunkers,” begins today and will run through Nov. 1, or until funds are exhausted, whichever comes first. Consumers can access the program’s official guidelines by going to www.cars.gov.

All Toyota and Scion passenger cars and most Toyota trucks, vans and SUVs are eligible for government incentives under the program. In addition, some Lexus models also qualify.

Regionally, consumers can apply their CARS rebates toward special 60-month leases on Yaris, Corolla, Camry (non-hybrid), RAV4 SUV and Tacoma pickup. Since rates will vary by region, information is being posted on buyatoyota.com so consumers can learn which lease specials are available in their area. The special leases are only available to customers participating in the CARS program. Consumers not receiving government incentives can take advantage other regional offers, including low APRs and cash rebates.

“We appreciate the effort by the U.S. Congress to pass ‘Cash for Clunkers,’ which represents a great stimulus for the auto industry and our dealers,” said Jim Lentz, president and chief operating officer of Toyota Motor Sales, U.S.A. “It will help consumers dispose of older high-emissions, less fuel efficient vehicles and replace them with new, more fuel efficient cars and trucks.”

Consumers can see which Toyota (toyota.com), Lexus (lexus.com) and Scion (scion.com) models are eligible by going to http://www.toyota.com/cashforclunkers. The site will also allow visitors to calculate the amount of federal funds they are likely to receive based on the vehicle they turn in and which car, truck, van or SUV from the Toyota family they plan to buy or lease. In addition to government cash, Toyota customers are also eligible for any additional dealer incentives in effect, which vary by region.

Toyota’s 30-second commercials will be seen nationally on CBS, FOX, NBC, ESPN, TNT, USA, ABC Family, A&E, Discovery, History, Travel and Syfy. Spanish language versions will run on Univision, Telemundo and Telefutura. The spots, which show a car being crushed, identify Toyota as a participant in the CARS program, as well as America’s most dependable and fuel efficient car company. Viewers will also be reminded of available government vouchers up to $4,500, plus any regional incentives Toyota offers.

Toyota CARS-related ads can also be seen on such leading websites as www.Edmunds.com and www.cars.com.

In addition to television, regional advertising will include newspapers and radio. Consumers will be told they can use CARS cash to buy or lease select Toyota vehicles.

Source: Toyota