The Best Selling Luxury Brand In America

Today, Lexus is the best selling luxury brand in the US, selling more luxury cars, SUVs, and crossovers than BMW, Cadillac, Mercedes, Audi, Volvo, and Jaguar. In 2007, more than 320,000 Lexus vehicles were sold in the US, but globally Lexus sells half as many cars than BMW and Mercedes, its chief rivals.

Expect Lexus to quickly close that gap over the next decade.

Setting its sites on expanding internationally, Lexus has a tall order in front of it, one that will take some time to pull off. Recently introduced in China and Russia, Lexus is a proven hit in those countries, but when introduced to its home market of Japan in 2005, the brand sputtered. Lexus was designed for the American driver, building big, luxurious cars featuring advanced technologies. Japan embraces technology more than many other countries, but the brand hasn’t been able to translate that success to Lexus. Besides, the Japanese buyer prefers heritage above comfort and attentive service.

Europe, A Tough Nut To Crack

In Europe, Lexus’ growth will be met by firm opposition from a host of home grown brands, especially BMW and Mercedes. Both have a heritage that extends back to the early days of automotive building, a loyal customer base, and the engineering to deliver cars that perform exceptionally on track and on road. Though Lexus has made some inroads across the continent, what they need to bring to Germany, France, Italy, and other local markets is a knowledge of how the local car buyer thinks - for those car shoppers a new car purchase is more of an option as mass transportation is quite good. However, when many Europeans buy a new car because they like them.

Looking Beyond Current Markets

Beyond Europe and Asia, a whole world beckons, one with emerging consumer markets, flush with new car buyers - some very wealthy - who want to be pampered and offered cutting edge technology and comfort. With the back of the Toyota corporation, Lexus’ expansion globally is likely to continue, redefining luxury leadership while spreading the Lexus name internationally.

(Source: The Detroit News)

Copyright 2008-2012 — Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy’s Auto Sport, a retailer of quality mufflers and exhausts.

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Like all automotive manufacturers, Toyota is feeling the heat from skyrocketing raw material costs, including steel, and needs to recoup these increases by selling their cars for more money. However, this news may cause consumers to weigh their options including foregoing the hybrid for an economical gas model, such as the Toyota Yaris, a commuter car that gets 35 mpg and sells for $10,000 less than the Prius.

Some would argue that a hybrid car is always of more value than a gas model, particularly a car that returns at least 45 mpg on the highway, an advantage of 9 mpg over the Yaris (14 mpg combined city/highway). But, as consumers can quickly see, making up the cost differential between these two Toyota models can take years even if gas goes back up to $4 per gallon.

Let’s take a look at a chart comparing the Prius and the Yaris to see what kind of savings is realized after about seven years of driving or 100,000 miles:

Toyota Prius

• Gas: $4.00
• Miles Driven: 100,000
• Fuel Economy: 47 mpg combined
• Gallons Used: 2127
• Cost: $8511

Toyota Yaris

• Gas: $4.00
• Miles Driven: 100,000
• Fuel Economy: 33 mpg combined
• Gallons Used: 3030
• Cost: $12120

In the seven year time frame you would save $3609 in fuel, but still fall short by about $6400 for what you paid for the Prius. Of course, if you’re comparing your Prius purchase with getting rid of your 20 mpg combined city/highway 4WD Toyota Tacoma pickup truck, you would come out exactly even at the end of those seven years. Two very different vehicles I might add, a radical lifestyle change you’ll need to be prepared to make.

I’m not saying to avoid buying the Prius or any other hybrid and federal as well as state tax credits could make your purchase more affordable. What I am saying is that if you’re panicking over high gas prices and think that a hybrid model is always the answer, you could be wrong. Unless, of course, you plan on keeping your car for many, many years as a long term investment in your fuel conserving effort.

Copyright 2008-2012 — Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy’s Auto Sport, a retailer of quality Lamdo doors and ground effects.

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In the aftermath of Hurricanes Katrina and Rita, tens of thousands of cars were scrapped, damaged beyond repair by flood waters, wind damage, or other storm related insults. Some reports put that number at 250,000 vehicles, cars registered to owners in Florida, Alabama, Mississippi, Louisiana, Texas and adjoining states.

Flood Damaged Cars Retitled

Though most of these vehicles were hauled away and their titles changed to reflect that they had been totaled, in some cases cars were bought, retitled in other states, and put on the market. Unsuspecting buyers, thinking that they were getting a quality used car, eventually learned that they were storm ravaged, thanks to rusting body panels, foul odors, malfunctioning components, and a host of other ills.

It has been three years since America was ravaged by these storms, but the warning about flood damaged cars remains. Historic flooding in the Upper Midwest earlier this year is yielding a bumper crop of damaged vehicles, with the same post-Katrina scenario starting to rear its ugly head: cars that have been totaled by insurers and are back on the market, available for purchase.

How To Avoid The Scam

Car buyers should be alert to this scam in order to avoid being ripped off. There are several tools at your disposal to help you avoid being conned, three of which can save you from plenty of grief:

Check KBB - Kelley Blue Book at www.kbb.com has the price of thousands of different used car models going back for well over a decade. One thing about flood damaged cars is that they are often priced below market levels. This should be a concern to you as a quality used car should retail close to what KBB says it is worth.

Check Carfax - Carfax is a great way to check your car’s history as all fifty states send their flood damage information to the company. You can find that information at www.carfax.com/flood and can order individual reports for a specific car too.

Check With Your Mechanic - Always insist on an inspection of the car from your own mechanic. He’ll know what to look for, especially signs for water damage, engine wear, transmission problems, brake and exhaust problems, as well as electrical and engineering issues.

If It Sounds Too Good To Be True….

With any used car purchase the maxim, “if it is sounds too good to be true, then it isn’t,” is the best approach when buying any car. Certainly, you want to get the best price for a used car, but not at the expense of your wallet or safety. Flood damaged cars have a short lifespan and could put you and your family in harm’s way if an important part suddenly fails.

Copyright 2008-2012 — Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy’s Auto Sport, a retailer of quality tail lights and headlights.

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Fans of the MG last saw these cars sold in the US way back in 1980. Competition, financial problems, and the temporary ceasing of production later that year contributed to the brand’s demise, though a revived MG later appeared and operated under the umbrella of the MG Rover group itself owned for a time by German automaker BMW. Later, a Chinese automaker, Nanjing Automotive purchased MG before being bought out itself by SAIC.

Restarting Production And Considering The US Market

The quest to bring MG back to the states has been a long one, led by U.S. enthusiasts who have been hoping that SAIC would export the MG TF to America. The mid-engined, rear wheel driven roadster’s appeal is quite a natural one with SAIC starting production on MG’s newest model at its Nanjing, China factory in August 2008 along with production at its Longbridge, UK facility. With a capacity to build 200,000 units annually in China alone, the chances of bringing the car stateside once seemed quite good.

Alas, MG management has decided to forgo the US market, at least for now, concentrating on its based United Kingdom and Ireland markets, before reintroducing MG to continental Europe. Even plans to send kits of the roadster to an Oklahoma factory for US assembly have fallen through, squelching the car’s US return for now.

Past Problems, A Thing Of The Past?

Of concern to MG fans everywhere are some of the quality issues that have plagued MG, particularly during the latter years when ownership changed hands several times. Head gasket problems with the MG F were a show stopper, one that MG says have been remedied with the introduction of a modified head gasket, one that can be retrofitted to earlier cars. Other engineering improvements to enhance engine durability have now been included, changes which should help the MG succeed as it seeks to polish its image abroad.

Though the MG TF isn’t coming stateside any time soon, fans can take heart knowing that such plans are subject to change at short notice. For a brand that has managed to survive through war, bankruptcy, and several ownership changes, the 85 year old marque endures, a tribute to British stoicism, Chinese investing, and to international interest.

Copyright 2008-2012 — Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy’s Auto Sport, a retailer of quality Mazda Miata body kits and Mazda Miata carbon fiber hoods.

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In many ways these are heady days for Tata as the company emerges from obscurity to the world stage, but inasmuch as Tata Motors is getting some great press, all isn’t rosy with the Indian automaker.

Recently, the company announced that it would be difficult for the company to produce the Nano for $2500 in light of the rising cost of raw materials. Since the beginning of the year, the cost of these materials has risen from 13% to 23% of the car’s price, a cost that Tata may not be able to absorb. Comparatively, American automakers spend 7% of their vehicles’ costs on raw materials.

Now, word is coming out of the Indian state of West Bengal that construction on the Tata Nano factory there has come to a halt. Farmers, who forcibly had their land acquired by the communist-ruled state, are protesting by the thousands, forcing Tata to cease production. Specific threats against company employees have caused many workers to stay at home, shutting the factory down.

The farmers are in a stand off with 3000 West Bengali policeman who are guarding the factory. Their greivance is that they want 160 of the 403 hectares set aside for the facility returned. Tata has countered that the land is necessary in order to set up units for spare parts and component vendors; shifting them to another site would make it difficult to keep the costs of producing the Nano low.

Ratan Tata is threatening to scuttle the project if troubles continue and reportedly is in discussions with other Indian state governments about relocating the factory elsewhere. Production for the Nano was to begin in October.

Announcing that you have made a new badge for your best sport model may not seem like much news, but Ford has done that for the 2010 Mustang. In a bid to stoke interest in the next generation pony car, Ford is signaling to rivals Dodge (Challenger) and Chevy (Camaro) that its Mustang is still king. The pony wars are back and high gas prices aren't getting in the way!

Unlike Dodge and Chevrolet which touted what their respective pony cars would look like well before production time, Ford has kept a tight wrap on its next generation 2010 Mustang, a car slated for production next year. We’ve caught glimpses of test mules photographed around Ford’s Proving Grounds and have seen camouflaged cars tucked away at various other venues, but no complete look of what we can expect in the coupe.

Teasing Us With A Fresh Look

Well, if you are frustrated at guessing what the next group of Mustangs will look like, Ford is teasing us by updating the Mustang’s badge, just as they did when the car was last updated in 2005.

“We wanted to give the Mustang pony a more realistic feel,” said Douglas Gaffka, chief designer for the 2010 Mustang. “We lifted the head to make the pony more proud, tipped the neck into the wind to give it a feeling of greater speed and better balance.

“It’s more chiseled and more defined and looks more like a wild horse,” Gaffka added. “It’s more realistic in terms of proportion to an actual Mustang.”

Mustang, which was introduced at the 1964 World’s Fair in Queens, NY ( I was there!) as a 19641/2 model, sported the Mustang badge on its hood until 1978 when it was replaced by F-O-R-D block letters. In 1983 through 1993, the Blue Oval badge was up placed up front before the Mustang badge returned for 1994 refinements included.

Now that you know that bit of history, don’t you want to see the actual car? I know that I do!

Introduced At The 2008 NAIAS

I was in Detroit this past January attending the auto show when Chrysler LLC introduced the all-new Ram in, “…a unique introduction to the city as 120 longhorn cattle walked down Congress Street then turned down Washington Avenue before stopping in front of the Cobo Center (for the Detroit Auto Show or NAIAS). The steer were brought in from Oklahoma to accompany the all-new Ram as it made its journey to the auto show.”

The timing of the Ram’s introduction is unfortunate, but Chrysler LLC doesn’t have a choice — the newest Ram is ready and they’ll have to do battle with Ford, General Motors, Toyota, and Nissan for customers as each automaker also must try to push their own big trucks out of dealer showrooms.

Fortunately, the 2009 Dodge Ram has been improved to the point where large pickup truck shoppers will want to consider the truck, especially for contractors and other workers who need one. I’ve identified five areas of improvement made by Chrysler LLC with the Ram, attributes worth comparing to the best trucks on the market:

Cabin - More comfortable seats and sharper dashboard display are some of the interior improvements for Dodge. Optional equipment, including Chrysler’s U-Connect hands free communication system will certainly interest some buyers. The cabin is filled with plenty of storage compartments just perfect for holding your cell phone, coffee containers, computer equipment, tools, and related items.

Design - Less chiseled than previous models, the 2009 Dodge Ram still offers that Peterbuilt look, but with more refined edges. New for 2009 is a crew cab model along with available side cargo boxes which are part of the truck’s bed rail.

Engineering - If you are in need of big V8, the Ram certainly has one. Its 5.7L V8 HEMI offers more 390 horsepower and improved torque for 2009, but cylinder deactivation allows the capable Ram to realize an improvement in fuel economy too. You can still get a smaller V8 and a V6 while the Cummins diesel will be returning in 2009. Look for a two-mode hybrid to be added in subsequent years.

Ride - While rear leaf springs can do the job, they do little to enhance passenger comfort. With the 2009 model, Dodge has replaced old technology with multi-link coil spring rear suspension, a feature that offers a smoother ride while limiting bouncing.

Safety - The safety list for the Dodge Ram now includes side curtain airbags, stability control, and traction control as standard equipment.

Clearance Prices For Remaining 2008 Stock

While standard equipment is up for 2009, base prices for the standard Dodge Ram 1500 model are down by about $900 compared to the 2008 model. Base MSRP is just over $22,100 with certain extended cab models starting at around $41,000.

Clearly, if you’re looking for a good buy then consider the 2008 model which are being sold at clearance prices. However, if you want the latest stuff, then the 2009 model is worth a look — expect additional incentives (0% financing) to be offered at your local Dodge dealer.

(Source: Chrysler LLC)

The Dodge Journey and the Jeep Cherokee are two vehicles being featured at this year's Moscow International Motor Show, a market where Chrysler is experiencing explosive growth.

Looking For Success Behind The US

Chrysler’s position internationally has been diminished significantly since the company’s much publicized divorce from Daimler in 2007. For nearly ten years, the company could depend on Mercedes to helping raise the visibility of its Chrysler, Dodge, and Jeep brands or at least provide the backing that the company needed in order to expand its European presence.

A small time player internationally, Chrysler LLC has suffered more than Ford and General Motors during the current economic downturn as its American competitors are well represented overseas. For Chrysler, the company’s business is 90% North American, which has been a disastrous mix for the automaker in a sour economy.

On Display In Moscow

One bright spot for Chrysler is Russia where the automaker is seeing sales increase at rates much higher than the rest of Europe. All three brands are represented in the former Soviet republic and Chrysler is now the third fastest growing brand in that country.

Coinciding with the 2008 Moscow International Motor Show which starts tomorrow and runs through Monday, Chrysler will be introducing two new models to that market — its Dodge Journey crossover and the Jeep Cherokee.

“Although sales in Russia are growing significantly, Russians are in fact only now starting to discover Chrysler vehicles. Let me remind you that Dodge brand was officially introduced in Russia as recently as two years ago here at the Moscow Motor Show,” says John Stech, CEO – Chrysler Russia. “Now, every second car sold by us in Russia is a Dodge and I am sure that the new cars presented here in Moscow will contribute even further to Russians’ interest in our brands.”

Jeep’s Universal Appeal

The Jeep Cherokee is expected to be well received, it having a history in Russia that spans its near 65 year history as the name for an entire segment of vehicles. Like in the US, where most SUVs at one time were all considered “jeeps” whether built by Jeep or not, the same can be said for Russia.

The Dodge Journey is expected to appeal to Russian families who customarily only have one vehicle per household. The Journey serves multiple purposes not the least being that it can seat up to six people or four with extra storage when the third row seat is folded down. Chrysler believes that the vehicle’s minivan attributes and passenger car efficiency will appeal to a Russian audience.

GM has unveiled the 2011 Chevy Cruze, a car that the company says will deliver 45 mpg on the highway. The Cruze will be revealed at the Paris Auto Show this September, with European production starting next year. Expect US availability by Summer 2010.

Last week, General Motors took the wraps off of its Chevrolet Cruze compact, a car that the automaker expects will play a significant role in the company’s recovery as well as ensure the Chevrolet brand’s long term success. News media, auto analysts, GM management, as well as local and state government officials were on hand last for the car’s August 21st unveiling.

Big Investment For Ohio

Along with the news of the Cruze’s debut, General Motors announced a $500 million investment in the project, with $350 million slated for the Lordstown, Ohio plant, which will be the exclusive US facility building the car. Lordstown is located in the Buckeye State’s Mahoning Valley region, just one hour south of Cleveland and one hour west of Pittsburgh.

The stylish Cruze has coupe-like lines but it will be a four door compact slightly larger in size than the current Cobalt. Initially, it had been expected that the Cruze would replace the Cobalt, but GM is indicating that the Cobalt could remain with the Cruze being placed in a new slot between the Cobalt and the Malibu.

Class Leading Fuel Economy

Perhaps the most significant news about the Cruze is that it is expected to deliver 45 mpg on the highway, which would beat the best numbers for a gasoline powered car currently available in the US market. This means that even the tiny Smart Fortwo two-seater at 41 mpg would be displaced by a larger, heavier, and safer compact car. GM plans to use cutting edge engine and transmission technology to achieve the higher numbers including making available a six-speed automatic transmission, an option never before offered for a car of its size. Naturally, the advanced technologies will affect the Cruze’s price, though GM hasn’t said what that will be.

State Incentives = New Jobs

According to The Detroit News, the state of Ohio played a significant role in winning the Cruze. As recently as two years ago the Lordstown plants survival was in jeopardy with some fearing that GM would shift small car production to Mexico. Ohio offered tens of millions of dollars in tax breaks and incentives to woo GM, the United Auto Workers agreed to wage cuts and health benefits changes, and a shifting market toward small cars has resulted in increased demand for the Chevy Cobalt and Pontiac G5, two cars currently manufactured at Lordstown. Most recently, GM added a third-shift to the plant and hired 1400 new workers to expand production.

A Quick Burst Of News

General Motors has been on a dizzying PR campaign of late, announcing the Chevrolet Camaro’s production plans earlier this month, following that up with updated pictures of the Chevy Volt, and the introduction of the Cadillac CTS wagon, CTS coupe, and the next generation Cadillac SRX crossover. All of these projects added together will underpin what GM will look like by 2011.

Sales Are Up In Europe

Ford reports that through July 2008, the company has maintained its 8.4% market share despite a 6.6% drop in sales. In Germany, Ford’s sales were up 8.8% for the month of July; 4.3% in the United Kingdom. Across its 51 European markets, Ford says sales are up by 2% for the year through July 2008 a stark contrast to the 14.1% drop the company has seen so far in 2008 stateside.

“Despite the economic headwinds affecting the industry, we are on track to sell more vehicles than we did last year - and 2007 was already a record year for us”, said Ingvar Sviggum, vice president, Marketing, Sales & Service, Ford of Europe.

“At a time when consumers are more hesitant in their purchasing decisions, it is even more crucial to have convincing products”, Sviggum added. “Early reactions to our all-new Fiesta make us confident that we are adding another cornerstone to continue the upwards trend of the Ford brand - despite adverse economic conditions.”

Production of the Next Generation Fiesta Begins In Germany

Ford should continue to see improvement for the remainder of the year as its anticipated next generation Fiesta begins to show up in showrooms this Fall. Ford began production of the car at its Cologne, Germany factory on August 14th, the very same car that will be produced by Ford in Mexico for the US market beginning in 2010.

Hot Sellers, New Markets

The European version of the Focus is the company’s best seller on the old continent followed by the Fiesta.  Other leading sellers include the Transit (van), Mondeo (sedan), and the C-MAX (crossover). As far as emerging markets go, Ford’s sales in Russia are up by 26% while Britain remains the company’s largest European market.

(Source: Ford Motor Company)