“Steven Cole Smith AUTOMOTIVE - Orlando Sentinel” plus 4 more

Steven Cole Smith AUTOMOTIVE - Orlando Sentinel
D. England Design Launches Contract Automotive Artwork Website - PR.com
Obama visit Monday puts - Daily Freeman
Electronic stability control, the most effective safety system - Houston Community Newspapers
Over 20 years, Lexus has steered perception of luxury in new direction - Dallas Morning News

Steven Cole Smith AUTOMOTIVE - Orlando Sentinel

Posted: 20 Sep 2009 12:00 AM PDT

Steven Cole Smith AUTOMOTIVE

September 20, 2009

If you're looking for an indication — however modest — that the economy is turning around, here's one: Last week, Chrysler announced that it is back in the leasing business.

In August 2008, Chrysler dropped leasing entirely. "And it hurt us some," says Mike Smith, owner of Orlando Dodge-Chrysler- Jeep. "Leasing isn't a huge part of our business, but there's no doubt we've lost some customers because we weren't able to lease vehicles."

In some markets — Detroit and Los Angeles, for instance — leasing was a huge part of Chrysler's business. Some dealers have said they lost as much as half their volume when the company quit leasing.

So why did Chrysler drop out in the first place? For one thing, says Smith, the company's leasing arm, Chrysler Financial, was strapped for cash. Now Chrysler uses General Motors Acceptance Corp., or GMAC, and they are better prepared to handle leasing.

That said, if Chrysler had been making money on leasing, the company would have found a way to continue it, but it wasn't. Here's how leasing works for a car company: It takes a vehicle that retails for, say, $25,000. Then, for a set lease period — say, 36 months — the company tries to determine what a reasonable lease rate would be, after a down payment.

Suppose, then, that the customer pays, over 36 months, $10,000 to lease the car. When the car is returned to the dealer, it typically goes to auction. And suppose the car sells at auction for $7,500. In essence, then, Chrysler would have sold a $25,000 car for $17,500. In calculating the lease payments, Chrysler guessed wrong on the car's "residual value" after three years. Had that car still been worth $12,000 at auction after three years, plus the $10,000 lease payment, the company would have come out well. But the cars were losing value faster than Chrysler predicted.

Why was that? Chrysler, like so many manufacturers, kept building more vehicles than it could sell. The only way to move those vehicles was to discount them heavily. And when the value of those new cars plummets, so does the value of the cars that were leased.

Now, obviously, Chrysler has some confidence in the future. Like the other manufacturers, Chrysler cut production, and the "cash for clunkers" program helped clear out inventories. In fact, Mike Smith says one of his biggest concerns right now is getting enough new vehicles to sell. Two years ago, that was not a problem.

Leasing has remained popular with brands that have more predictable resale values, such as BMW and Mercedes-Benz. Typically, the list of the top 10 most-leased cars are all European. Resale value is just one part of that — the other is that European brands are often expensive, and for those who want a new luxury car but can't afford to buy one, leasing is the only other way to go. The 2009 Mercedes-Benz SLK 300 sports car, for instance, starts at $45,950, but Mercedes leases it for 36 months at $499 a month, with $4,844 down. BMW will lease you a $47,500 X5 for $539 a month for 36 months, with $5,814 down, and $1,700 cash back. Leasing remains the way to go for many commercial customers, too, especially heavy-duty vehicles and work trucks.

So now expect Chrysler to push leasing for all its 2010 models, with special lease incentives through the end of the month on the Chrysler Town & Country and Dodge Grand Caravan minivans, the Dodge Ram 1500 pickup, the Dodge Journey SUV, and the Jeep Wrangler and Liberty. Leftover 2009 models are not part of the leasing program.

"For some customers," Smith says, "leasing makes a lot of sense — maybe their tax adviser tells them to lease, or they just like the smell of a new car every couple of years. Either way, I'm glad it's back."

Sentinel Automotive Editor Steven Cole Smith can be reached at scsmith@orlando sentinel.com, at 407-420-5699, or through his blog at Enginehead.com.

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D. England Design Launches Contract Automotive Artwork Website - PR.com

Posted: 20 Sep 2009 12:00 AM PDT

Wabash, IN, September 20, 2009 --(PR.com)-- A new web site, hotautomotiveart.com offers screen printers, manufacturers and ad agencies a reliable source for high detail production ready artwork. Services offered are original concepts, high resolution final digital art, color separations for screen printing, catalog layout and design, and head wear design. The site has a five page portfolio displaying artwork from each category.

The owner, Dave England has had a long career in the industry developing product for mass market and specialty channels of distribution. He has vast experience with developing licensed product lines such as, Chevrolet, Ford, Dodge, Harley Davidson and American Biker.

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Obama visit Monday puts - Daily Freeman

Posted: 20 Sep 2009 12:07 AM PDT

By DANIELLE SANZONE
Journal Register News Service

TROY — The backdrop for President Barack Obama's remarks during a planned visit Monday to Hudson Valley Community College's automotive department will be a wind turbine installed by a former student of the college.

When Mark Bomba first entered the renewable energy field about four years ago, he was called "a crazy granola" and was warned there was no future in it.

The president of the United States, most likely, would beg to differ. Obama has been a strong advocate for renewable energy during his eight months in office.

"As soon as I saw that Hudson Valley was offering classes in it, I jumped on it," said Bomba, a native of Albany who attended the Rochester Institute of Technology, Rensselaer Polytechnic Institute and HVCC. He installed a wind turbine at the community college on Friday in preparation for Monday's presidential visit.

The turbine has a 10-foot diameter and stands about 5-feet high — about 55-feet lower than it normally would when generating energy from the wind, said Bomba, a renewable energy consultant with Rhode Island-based Alteris Renewables.

The Providence company also specializes in installing solar panels, which Bomba says are are much more practical for homeowners to purchase. All you need, he said, is a roof or other area, usually covering about 300 square feet, which has sunlight from at least 9 a.m. to 3 p.m.

In the past three years, the sale and installation of solar panels has increased dramatically. Three years ago, Bomba said, he would receive about one call a week regarding solar panels; now the company gets about four calls each day.

The rise in interest has been helped by state and federal initiatives in recent years. The state provides about $20,000 toward the purchase and there an additional $15,000 in credits is available from the federal government.

With an average solar panel costing about $50,000, the buyer has to finance the rest, but Bomba's company offers a program with no payments or interest due in the first year, he said.

"Solar energy is almost the same cost as the energy most people get now," he said. "As soon as they're the same price, it'll be a no-brainer for what people should get."

The panels usually last about 35 years. Bomba estimates that the panels "easily" get about 20 years of free energy once they are paid off.

Alteris has installed about 400 solar panel systems in upstate New York and 2,500 altogether in the Northeast.

"That's not much considering how large the area is. Everyone who has the opportunity should try to use solar panels," Bomba said. He said the installation of a 40 kilowatt panel system is the equivalent to planting 100 trees annually and a 4 kilowatt system offsets 5 tons of carbon dioxide from entering the atmosphere.

As opposed to solar panels, there are still a lot of restrictions with wind turbines. Since some zoning laws do not allow some structures to be 60-feet high, most homeowners cannot have them installed.

While Bomba helped in the exhibited turbine's installation, he was not invited to the 11 a.m. visit by Obama. Some 45 to 60 students were to be selected at random to attend the event, along with an invitation-only list of dignitaries.

Even so, he said, "I stood where the president will be standing. That was pretty cool. It's nice of the president to recognize Hudson Valley.

"I was able to take courses with the same material they were learning at RPI," he said. "But I was able to take those classes for a much smaller price."

Another person not on the exclusive list for the event was Dan Ashley, who in 1984 established the school's automotive department, where the remarks will be given, and fostered key partnerships with General Motors and Chrysler.

"The president talks about colleges cooperating with private companies and we were doing that here more than 20 years ago," said Ashley, the former chairman of the automotive department who retired from Hudson Valley Community College after 41 years.

About 300 students at the college take the automotive course, which includes about 24 weeks in class and 24 weeks on-the-job training at a dealership.

Since the General Motors partnership was formed, Ashley said, the school has been nationally ranked for its automotive courses, and area dealerships rely on the college for their workforce.

"When we partnered with General Motors, they took a program that was 10 years behind to a state-of-the-art program. It was revolutionary to get that support," Ashley said. He said said the department is the biggest and most well-equipped this side of the Mississippi.

"It's absolutely fantastic that the president is coming to recognize the quality education at Hudson Valley," Ashley said.

Obama — the first sitting president to visit Troy since Republican Dwight D. Eisenhower — is expected to talk about the importance of two-year colleges to workforce development. He'll be accompanied by Jill Biden, the wife of Vice President Joseph Biden, who teaches at a community college not far from the White House.

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Electronic stability control, the most effective safety system - Houston Community Newspapers

Posted: 19 Sep 2009 10:27 PM PDT

Bosch is celebrating the thirtieth anniversary of the pioneering automotive antilock braking system (ABS), a landmark contribution to driving safety first introduced in 1978 and a major step forward for motorists and the automotive industry worldwide, and paved the way for electronic stability control systems.

Since Bosch introduced electronically controlled ABS to the automotive market, this groundbreaking technology has become the basis for all modern brake regulating systems. Today, nearly 75 percent of vehicles are fitted with ABS. Bosch systems such as the Electronic Stability Program (ESP)® and the Traction Control System (TCS) that are based on ABS are now successfully embraced by the world's motorists.

"ABS utilizes sensors at each wheel tied to a central computer to prevent the wheels from locking when braking hard, allowing drivers to brake safely in emergency situations," said John Taylor, owner of Rhodes & Dunlap Automotive. "A car fitted with ABS brakes smoothly without locking the brakes and possibly skidding, allowing the driver to steer and keep the car under control even in sharp braking. The vehicle remains stable, and ABS really improves the way we drive."

"ABS has been a truly revolutionary advance for motorists around the world. and Bosch is proud to have brought it to the automotive marketplace and to support it," Taylor said.

Electronic Stability Control Follows ABS

A little over ten years ago, Bosch expanded the wheel control pioneered with ABS and became the first supplier to launch volume production of the Electronic Stability Program (ESP®). What started out, as optional equipment for high-end passenger cars has nowadays become a standard active safety feature in an increasing number of new cars?

The system supports the driver in critical and often severe driving situations to keep the vehicle under control, and has been confirmed by several scientific studies indicating that electronic stability control programs reduce the number of accidents by up to 50 percent in cases where the driver loses control of his vehicle without other road users being involved.

Bosch has received prestigious awards from FIA (Federation International Automobile) and Prince Michael of Kent for "contributions to word-wide road safety." Stability control systems are known in the USA as ESC (Electronic Stability Control). "Bosch has played a pivotal role in the development and promotion of the most effective car safety system since the invention of the safety belt," the FIA explained.

Dramatic Accident Reduction

The Electronic Stability Program (ESP®) comprises the functions of the antilock braking system (ABS) and the traction control system (TCS), but can do considerably more. It detects vehicle skidding movements, and actively counteracts them. ABS and TCS provide effective support in the case of speed alterations longitudinally to vehicle movement. ABS assists vehicle braking and TCS vehicle acceleration. The Electronic Stability Program additionally supports the driver in movements transverse to the direction of travel. On the basis of the steering angle, the system recognizes the desired direction of travel:

Speed sensors on each wheel measure wheel speed. At the same time, yaw sensors measure vehicle rotation around its vertical axis, as well as lateral acceleration. From this data, the control unit calculates the actual movement of the vehicle, comparing it 25 times per second with the desired direction.

If the values do not correspond, the system reacts in an instant, without any action on the part of the driver. It reduces engine power in order to restore vehicle stability. If that is not sufficient, then it additionally breaks individual wheels.

The resulting rotary movement of the vehicle counteracts the skidding movement – within the limits of the laws of physics, the car remains safely on the desired course.

A recent socio-economic study by the University of Cologne showed that 4,000 traffic deaths and 100,000 injuries could be prevented in Europe alone if electronic stability control were installed in all vehicles. In the U.S., the NHTSA estimates that 10,000 traffic deaths on American roads could be prevented with electronic stability control.

In 2006, 26 percent of all new vehicles produced worldwide were equipped with electronic stability control. In the first half of 2007, the share of all newly registered cars in Europe was 47 percent. In the U.S., legislation was passed in 2007 making electronic stability control mandatory standard equipment for all passenger cars from model year 2012. And the EU Commission has also announced its intention to mandate installation of the anti-skid system from 2011.

In the first half of 2007, 47 percent of all newly registered cars in Europe were equipped with ESC. International studies provide proof of the effectiveness of this safety system: 30 to 50 percent of all fatal single-vehicle accidents involving cars can be prevented by electronic stability control. For SUVs, the figure is even higher: 50 to 70 percent.

Contribution to World-Wide Road Safety

Bosch developed the active safety system and was the first company to put it on the market in 1995. International accident studies estimate that skidding causes at least 40 percent of all fatal traffic accidents. Around 80 percent of all skidding accidents could be prevented with electronic stability control.

The highly acclaimed FIA "World Prize for Road Safety, the Environment, and Mobility" recognizes "the great contribution the automotive supplier has made to worldwide road safety by developing and consistently marketing the ESP® safety system. FIA presented the trophy to Bosch at an annual FIA event in Monaco.

The FIA World Prize is presented every year to a person or an organization that has made an outstanding contribution in the areas of road safety, the environment, or mobility.

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Over 20 years, Lexus has steered perception of luxury in new direction - Dallas Morning News

Posted: 19 Sep 2009 10:12 PM PDT

On the day 19 years ago that Bill Owens bought his Lexus, the saleswoman assured him it would be good for 500,000 miles.

"She just might be right," says Owens, a retired auditor in Plano whose 1990 LS 400 sedan has more than 420,000 miles on it.

Twenty years ago this month, Toyota's new Lexus luxury division promised buyers high quality, exceptional reliability and industry-leading customer service – and delivered on a scale few had anticipated.

Lexus redefined what luxury is, said James Bell, executive market analyst at Kelley Blue Book.

"In prior times, luxury vehicles were the fastest or handled the best or had the best styling," he said. "Lexus has defined luxury as peace and quiet."

Although Lexus struggled somewhat earlier this year, it reclaimed its status in August as the top-selling luxury brand in the U.S. – a position it has held for nine straight years over such formidable competitors as BMW, Mercedes-Benz, Audi and General Motors' Cadillac.

For an even longer period, Lexus has set the benchmark for quality.

The road ahead looks rougher, however. BMW continues to nip at Lexus' heels with total U.S. sales through August of 129,176 – compared with 131,469 for Lexus. Both are down about 30 percent from last year.

Moreover, BMW's stronger performance credentials appeal to younger buyers, some analysts say, which may position BMW better for the future. The average age of Lexus buyers is 56.

In addition, all of Lexus' competitors have improved their quality and service, stealing some of Lexus' shine.

Still, Lexus general manager Mark Templin likes his company's prospects. Lexus recently introduced a midsize hybrid sedan, the HS 250h, that is selling far beyond expectations in Japan and is likely to be a hit in the U.S. as well.

A new RX 350 crossover – Lexus' best-selling vehicle – is now in dealerships and doing well. And Lexus is attracting media attention with a stylish small hybrid concept car called the LF-Ch and a long-rumored $370,000 supercar that should be unveiled next month in Tokyo.

"We're kind of back in stride after a bit of a slow start to the year," Templin said.

He believes the luxury segment – a big generator of auto industry profit – will grow beyond its 12 percent share of the industry, providing more opportunities for Lexus.

"The automotive landscape may have changed forever, but we think the segment will recover," Templin said.

Longtime players in the segment – brands such as BMW, Mercedes-Benz, Cadillac and Lincoln – didn't worry much about Lexus when it began selling cars in September 1989.

'Right from the start'

Many people doubted that a nuts-and-bolts automaker like Toyota could ever build appealing luxury cars. In the first year, Lexus' 121 U.S. dealers sold a whopping 63,534 vehicles – an average of 525 per retailer.

But the new company was determined, adopting a covenant that proclaimed: "Lexus will win the race because Lexus will do it right from the start."

Over the years, the company made important additions to its lineup – the original RX crossover, two SUVs and two more sedans. By 2007, Lexus' peak year, annual sales had shot up to 329,177, the number of dealers had grown to 223 and Lexus had collected numerous awards from Motor Trend, Car and Driver and Consumer Digest.

"They raised the bar as far as quality and the dealership experience," said Dave Sargent, vice president of automotive research at J.D. Power and Associates. "When we look at the reasons why Lexus owners buy, they are reliability and the lovely dealership service, which is exceptional."

Before Owens bought his Lexus in July 1990, he researched the fledgling company and its new cars thoroughly, concluding that the big LS sedan would be a really good vehicle.

The car is still the only vehicle Owens and his wife own. When they need to run to East Texas or back to Kansas City to visit relatives, "we don't hesitate to take the Lexus," he said.

"My intent is to drive it until it stops," he said. "But I would definitely buy another."

That sort of loyalty has served Lexus well – and been carefully nurtured by Lexus dealers, who were among the first to offer loaner cars, free carwashes and service appointments to their buyers.

"People will really think twice about going away from the brand if you provide good service," said Jordan Case, president and managing partner of Park Place Lexus in Plano and Grapevine.

In 2006, the two dealerships became the only car retailers ever to receive the prestigious Malcolm Baldrige National Quality Award, the nation's highest presidential honor for quality and organizational performance.

Park Place Lexus in Plano opened in 1991 with 36 employees. Today it has 250. And it sold 3,810 vehicles in Lexus' peak year of 2007 – more than any other dealership of any kind in Collin County.

"I knew from the outset that as long as we kept building quality cars and providing great service that we would do well," said Case, who has served as chairman of Lexus' national dealer council.

Carl Sewell, who was selected as one of Lexus' original 121 dealers, expected to sell maybe 40 Lexus sedans a month in 1989 and ended up selling 120, making him the No. 1 Lexus dealer in the U.S. for a while.

"All kinds of people came out to look at the cars and drive them," said Sewell, chairman of Dallas-based Sewell Automotive Cos. "Ross Perot drove the car. People who were automobile buffs came out to see it. It was fascinating to watch."

Lucky moment

Though his name is strongly associated with Cadillac, Sewell says his selection as a Lexus dealer was "one of the luckiest moments in my life."

It's been a good ride, said Templin, Lexus' general manager.

"When we launched the division 20 years ago, nobody in their wildest dreams expected it to succeed like this," he said. "We changed the automotive landscape. We changed the auto industry for everyone."