Man rams cars at dealership to show his displeasure

Man rams cars at dealership to show his displeasure
By MARK HAYWARD

PORTSMOUTH — Believing he had been sold a lemon, a Massachusetts man turned his unwanted vehicle into a consumer complaint form Wednesday and rammed the cars parked at a city car dealer, police said.

David Cross, 41, of 21 North St., Salisbury, Mass., calmly walked up to Portsmouth police shortly before 1 a.m. Wednesday and told them about his antics, said police Sgt. Chris Roth.

"He wasn't happy with the service he got there so he figured he would take it out on them," Roth said. 

Police said Cross damaged several vehicles, including a Mustang, Dodge Caravan, Mercedes and Infinity, at Portsmouth Used Car Superstore, 2219 Lafayette Road.

"He did some pretty good damage," Roth said. "He had his license plates in his hand. He took them off his lemon and walked across the street with them."

Cross had purchased a 2000 Dodge Caravan from the dealership, Roth said.

He was charged with criminal mischief and released on bail after being booked.

Nissan sets its sights on big goals

Nissan sets its sights on big goals
By Paul A. Eisenstein

With buyers waiting in long lines, Nissan is honoring the law of supply and demand, raising the price of its new Leaf battery-electric vehicle by 7.4 percent for the upcoming 2012 model-year.

At the same time, the maker plans to continue expanding the availability of the Leaf, which it has until now been offering in just seven states. So far, Nissan has delivered just 4,000 of the high-profile battery cars, but it is rapidly ramping up production and could come closer to its original goal of 20,000 Leaf sales for 2011.

That Nissan is able to boost production of Leaf, and most of its other products, is significant considering that its key competitors, Toyota and Honda, are still struggling to cope with the shortages caused by the March 11 Japanese earthquake and tsunami. While those two makers work their way through a variety of issues that have slashed sales and slammed profits, Nissan has been posting sharp gains and setting its sights on even bigger goals: its CEO wants to boost global volume by as much as 50 percent over the next six years.

With last December’s launch of the Leaf, Nissan has been stealing a march on lead rival Toyota, aiming to position itself as one of the auto industry’s environmental and technology leaders. Though the numbers have so far been modest, Nissan claims that four out of five Leaf buyers have been “conquested” from other brands. What's more, it is providing the Japanese maker a much-needed halo.

“If Nissan can do a product like the Leaf,” suggests Vice President of Product Planning Larry Dominique, “a lot of people are asking what else can we do.”

Quite a bit, he suggests. After several slow years, the maker’s product program has been rapidly ramping up, both for the mainstream Nissan brand and for its up-market sibling, Infiniti. The latter, long an also-ran in the luxury segment, has begun gaining traction in recent years. That's largely based on well-reviewed G-cars, like the G37 coupe, which compete with the BMW 3-Series and Mercedes-Benz C-Class.

Infiniti has three more offerings in the works, near-term, including the compact JX crossover, which will be unveiled in August, and a high-end variant of the Nissan Leaf. The main brand, meanwhile, has a number of new 2012 offerings, Among them is an upgraded version of its small Versa sedan, which has been gaining ground with Americans who want to migrate to smaller, more fuel-efficient models.

Nissan didn’t escape unscathed from the March disaster. It was clobbered in May, posting a U.S. decline of 9.1 percent. But while key Japanese rivals were slammed again in June, Nissan sales surged back, rising 11 percent, year-over-year.

“They did a lot better job” overcoming the shortages, says Aaron Bragman, automotive analyst with the consulting firm IHS. “They’ve been a lot more effective at global sourcing” of parts that would have been in short supply otherwise, he explains.

That’s a key reason why the maker was able to boost production at its four North American assembly plants by 9.1 percent during the first half of 2011, to 565,730. That put it in the lead position among the so-called “transplants.” Toyota’s year-over-year production slipped 28 percent, to 555,972, while Honda’s North American output dropped 20.8 percent, to 516,603.

Last month, Nissan CEO Carlos Ghosn indicated the maker’s U.S. sales should top 1 million in the current fiscal year, a 7.7 percent increase over the prior year, which ended March 31. If anything could deliver a setback, it’s that Nissan’s four U.S. and Mexican plants are pushing up against capacity constraints.

“What’s clear is if we look at our aspirations for growth in the U.S. and the role the (two Nissan) Mexican plants play for our growth in North and South America we’re going to have to have more capacity,” acknowledges global marketing chief Simon Sproule.

What’s now being debated, inside the company, is whether to add additional factories or expand the existing plants. The maker’s original U.S. facility, in Smyrna, TN, is already undergoing an update to permit it to start producing the Leaf, starting late in 2012.

With less than a third of its global capacity based in the home market, Nissan is the least dependent of the Asian makers on Japanese production. And that trend will continue as it moves ahead with plans to put factories in Brazil, among other places, while also pushing to expand its role in booming China. Nissan has a substantially stronger position there than latecomer Toyota, analysts note.

That has helped Nissan become the second largest of the Japanese makers, last year nudging past Honda. But for Ghosn, who took over Nissan in 1999, when the company seemed doomed to failure, that’s just the beginning.

On the downside, as a result of the Japanese disaster, rising raw materials costs and lopsided exchange rates, Nissan’s net profit is now projected to slip 15.4 percent, to 270 billion yen, or $3.4 billion, down from 319 billion yen in the previous fiscal year, which ended March 31. On the other hand, revenues are expected to climb 7.1 percent to 9.4 trillion yen, while unit volume is forecast to grow 9.9 percent, to 4.6 million.

Longer-term, Ghosn is aiming for significant growth. His new Power 88 six-year plan aims for an 8 percent global market share – its worldwide sales rising to 8 million — and an 8 percent profit margin on sales.

"This is the first time that Nissan is starting a plan on the offensive instead of reconstructing something, or defending something," Ghosn said last month.

It’s an ambitious target. Analysts note that, under Ghosn, Nissan has missed a number of targets over the past decade. But it has still come out ahead. And so, “with a lot of hard work and a bit of luck,” the Power 88 plan is do-able, contends Kurt Sanger, of Deutsche Bank.

While the Leaf will be little more than an asterisk on the corporate charts, the little battery car is nonetheless helping to charge up Nissan’s image and helping lure in the buyers it needs.

Automatic braking in cars helps cut down on crashes

Automatic braking in cars helps cut down on crashes
By Jayne O’Donnell

HERNDON, Va. — It's one of the coolest video games around, but it is not available online or at stores. It's Audi's just-out A6 and a million-dollar computer simulator that has the car bouncing off of lane lines and slowing before it crashes into the car in front — without any input from the driver. Warning lights alert when cars are in the blind spot and flash furiously if the driver appears ready to steer into them.

Careening around even the simulated Bavarian mountains would be more daunting if the A6 weren't equipped with all of the latest advanced safety technologies. You almost can't crash during some maneuvers in this would-be video game, which Audi showed off recently at its headquarters here. Even when you do rear-end another car, your belt cinches up, windows and sunroof close and your speed slows enough that, at least virtually, you're far safer than you would have been without what's known as precrash sensors.

But these technologies are hardly automotive fantasies. Many, including intelligent braking that stops — or at least slows — cars if drivers don't act, are already on high-end vehicles including Audi, Lexus and BMWmodels and are trickling down into more affordable cars, including several by Chrysler.

The first real-world evidence that these brakes are keeping people from crashing is being released today by the Insurance Institute for Highway Safety. IIHS found that a version of automatic braking in Volvo SUVs prevented one out of four low-speed crashes. That's likely to speed up installation of similar technology in other vehicles and should help persuade regulators to consider rules to require automatic braking, some safety experts say.

Thinking of getting a smaller car? Wait until fall

Thinking of getting a smaller car? Wait until fall
By TOM KRISHER and DEE-ANN DURBIN

Thinking of trading in the clunker in your garage for something that gets better gas mileage? Wait a little longer.

Small car prices, which have set record highs this year, are expected to come down this fall.

Lower gas prices will make people comfortable driving something bigger. Honda and Toyota, which were hurt by the Japan earthquake, will crank up production of small cars. And Japan and Detroit will offer big discounts on smaller models as their lots fill up.

The average new compact car, which cost a record $20,500 in June, should fall to about $19,300 by the end of the year. The average used compact car should fall from a record $11,300 to about $9,600 over the same time, according figures compiled by the Kelley Blue Book auto pricing service.

Small-car prices should start falling in September and accelerate through the end of the year.

"Values for these vehicles just rose too quickly and got to a level that was really unsustainable," says Alec Gutierrez, manager of vehicle valuation for the Kelley Blue Book car pricing service.

Here are factors pushing down small-car prices:

_ Small-car surplus: Carmakers such as Honda and Toyota are boosting production following Japan's March 11 earthquake and tsunami. The disaster essentially shut down that nation's auto industry and slowed Japanese-brand factories in North America. With factories returning to normal, American dealers will have more Civics, Corollas and Priuses. And they won't have to put small-car buyers on waiting lists, like they did this spring.

In fact, some will have more small cars than they need says George Davis, general manager of a Honda dealership in Ann Arbor, Mich.

"One minute they're going to look out the window and see 50 cars. Two weeks later they'll see 300. Panic sets in," he says. "They pay interest on these cars and they'll have to discount."

_ Deals: Honda and Toyota dealers will increase rebates, low-interest financing and other promotions, Gutierrez predicts. "GM and Ford will be right behind them, and Hyundai as well," he says.

Automakers say they won't cut prices even if Toyota and Honda come out with bigger incentives. Instead, they want to sell cars on quality, styling and features.

Dealers and analysts are skeptical, though, saying that once Honda and Toyota restock, prices will fall as rivals try to win customers who have to replace their clunkers. The average age of a car in the U.S. is now 10.6 years, up more than a full year from 2008, according to the Polk research firm.

_ Lower gas prices: Gas prices are down 31 cents from their peak of $3.98 a gallon in May, and although small-car demand is still strong, buyers have started to shift to larger vehicles. Compact and subcompact sales fell to just under 195,000 last month, down from 238,000 in March, according to Autodata Corp.

There's now a shortage of cars at Pacific Honda near San Diego. But they'll be a surplus after July and buyers will see deals, says Wayne Meyer, president of the chain that owns the dealership. Pacific Honda has about 38 vehicles in stock instead of the usual 350.

"There's going to be so much car availability," Meyer says. Automakers "are going to be defending market share they gained or regaining market share they lost."

A little help? Recent college grad goes looking for his first new car

A little help? Recent college grad goes looking for his first new car
steven cole smith

Pedro Falci of Coral Gables recently graduated from college, and soon he'll be starting a new job in Los Angeles. Which – like some of our larger cities in Florida – isn't known for its stellar public transportation system.

So Falci needs a car. "I didn't need a car in college," he says, "but I'm starting this new job, and I need a car now. This is my first time dealing with car dealers, and I'd be thankful for some advice."

No problem. And while Falci is interested in a particular new car – a 2011 Chevrolet Cruze LS – the suggestions apply to most every potential purchase.

He has some specific questions about the car-buying experience, so let's get to them:


What would be the best time of the year, and of the month, to buy a new car?

You'll hear and read plenty of advice that suggests the end of the month is the best time for multiple reasons, including the fact that dealers are hustling to make their quotas. I've seldom found that makes much of a difference. I believe any good, slow day, when there isn't much going on inside the store, the sales staff and the F&I (finance and insurance) managers tend to work a little harder to make a deal happen.

Is it true that when the 2012 model comes out prices of the 2011 model drop dramatically?

Not always. The Cruze you are considering was all-new for the 2011 model year, and since very few changes ae expected for the 2012 Cruze, I'd wouldn't look for big discounts. The Cruze replaced the Cobalt: When a car is getting replaced, or undergoing a major redesign, the previous' year's model usually is discounted considerably. There were, for example, very good deals on the 2010 Cobalt.

Why do prices vary so much in Florida from city to city, county to county?

Dealers pay the same price for new vehicles, whether the store is big or small. Differences are usually due to overhead, the value of the real estate the dealership is located on, and how badly the dealership needs to sell cars. I've gotten great deals at tiny country dealerships, and at huge big-city dealers. Sales tax can vary from county to county in Florida, but the differences are small.

Why do prices vary so much on different models of the Chevrolet Cruze?

The Cruze LS starts at $17,275, and the top-of-the-line Cruze LTZ can cost as much as $23,670. Manufacturers and dealers make a higher percentage of profit off "loaded" vehicles that have a lot of features, so they aren't always the best buy. Even the base Cruse LS has air conditioning, a stereo with satellite radio, stability control and all the other safety equipment you'd get on a pricier model. (And you do need air conditioning in Florida – a car without air takes a huge hit in resale value, eliminating any original savings.) Do you need a navigation system, or leather interior, or flashier tires and wheels? If you do, fine, but expect to pay for them on any new vehicle.

Is everything negotiable?

Tax, title and license aren't. In Florida, most dealers charge a "dealer fee" between $400 and $1,000, which is set by the dealer. They don't have to charge it, but if they do, they must charge it to everyone. Technically, then, it isn't negotiable, but when I deal, I expect them to either discount the car enough, or add enough to my trade-in, to where I'm comfortable with the numbers. Any add-on stickers for extra dealer-installed features, or "market adjustments," is negotiable. Be sure to check for rebates or financing deals on the manufacturer's web site, which usually asks for a zip code, because there may sometimes be regional rebates that apply only to Florida or surrounding states. Chevy, for instance, offers more than $400 for a "college discount" to current or just-graduated students.

A final word of advice: Shop around until you are satisfied with the deal. I've bought from the very first dealer I've visited, and I've bought after visiting a dozen. I always have a price in mind (which I typically do not share with the dealer), and if I can find it, I'm buying. And if I can't, I won't – or will reconsider whether the price I have in mind is reasonable.

'Used vehicle market under pressure'

'Used vehicle market under pressure'

The used vehicle market is under pressure as the price gap between new and used cars narrows, according to the results of the TransUnion vehicle pricing index released on Thursday.

“The shortage of quality, late model used cars on the market, combined with the many excellent 'deals' that are available from manufacturers on new cars, has led to declining demand for used vehicles,” said TransUnion Auto Information Solutions CEO Mike von Höne in a statement.

The number of one and two-year-old models available for resale had dropped due to a decline in new vehicle sales in 2009 and 2010.

“At the same time, the fall in the rate of new car inflation from more than 10 percent in 2009 to under five percent in 2010 and the first half of 2011, has resulted in a narrowing of the price gap between new and used cars.”

The ratio of used to new cars financed dropped from 1.95 used cars for every new car financed in the first quarter of this year, to just 1.63 used cars to every new car financed.

However, the number of used vehicles financed in the second quarter of 2011 was up 24 percent from the previous quarter.

According to the index, new and used car inflation lagged consumer price inflation in the second quarter.

The index, which measures the year-on-year price inflation of a market weighted basket of new and used vehicles, shows new car inflation at four percent for the second quarter.

This was higher than the rate of 3.7 percent in the first quarter.

Used car inflation slowed from 3.4 percent in the first quarter of the year to 3.1 percent.

“It is the slowest rate of increase since 2009 when used car price deflation was a regular occurrence.”

Both new and used car inflation was lower than consumer price inflation which was 4.6 percent in May up from 4.2 percent in April.

Von Höne said the disruption of the Japanese vehicle manufacturing sector following the earthquakes and tsunami in March had no impact on new vehicle sales or pricing in South Africa.

“There have been some delays in component availability, which affected local manufacturers' ability to produce new vehicles, but this situation is not expected to continue for much longer,” he said. - Sapa

Groupon's Latest Offering? $500 Off a Car

Groupon's Latest Offering? $500 Off a Car
By Graeme McMillan

For those who feel that daily deals sites would be a lot more interesting if only they offered deals on something other than spas and local restaurants, Groupon has an offer for you: $500 off a brand new car.

Admittedly, you'd have to be in Detroit to take advantage of the deal—paying $199 to get $500 off a new or pre-owned vehicle from LaFontaine Auto dealership—but it's another sign that Groupon is taking the daily deals framework into areas where you wouldn't expect it. The company has recently also offered a deal for $500 off closing costs for real estate purchases.

These moves may be a way in which Groupon aims to distinguish itself from the masses of competitors springing up recently (GoogleOffers, Amazon Local, et al) but beyond the headlines it'll generate, it's uncertain how successful such big ticket items will be with the site's 80+ million members and whether it'll end up sending some of those members to other daily deals sites where they can more easily afford what's on offer.

That said, as soon as someone starts offering 50% off transatlantic air fares, I'm there.