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Jan 15, 2012 | 0 comments | View Post

2011 sales are heavy on light trucks

DETROIT — Nearly two of every three vehicles the Detroit Three have sold this year are light trucks, but more fuel-efficient engines, smaller crossover models and seasonal patterns indicate this isn’t a return to the bad old days, say analysts and dealers.

Pickup trucks, SUVs, crossovers and, in Chrysler’s case, minivans accounted for 65.8 percent of General Motors, Ford and Chrysler 2011 sales through November, according to Autodata. That’s up from 64 percent last year and the domestic automakers’ heaviest truck concentration since 66.3 percent in 2004.

“What is different than in the past for the domestic automakers is that they’re selling a lot of smaller SUVs — Ford Escape was the best-selling compact SUV in November,” said Jessica Caldwell, a sales analyst with Edmunds.com. “Jeep Compass has done really well for Chrysler, as has Equinox for Chevrolet.”

For perspective, light trucks made up 46.7 percent of Honda’s U.S. sales through November; 45.3 percent of Toyota’s; 34.4 percent of Nissan’s and only 20.3 percent of Hyundai’s.

Does this matter?

Not much when gas is selling for less than $3.50 a gallon, said Jesse Toprak, an analyst with TrueCar.com.

“There is a risk if gasoline climbs back above $4 a gallon,” Toprak said.

Pickups and SUVs sell well in the winter, especially in northern states. But the other factor driving this light-truck surge is pent-up demand.

“What is different than in the past for the domestic automakers is that they’re selling a lot of smaller SUVs — Ford Escape was the best-selling compact SUV in November,” said Jessica Caldwell, a sales analyst with Edmunds.com.

“Small businesses, who are a big part of the market for pickups and vans, tend to wait longer for the dust to settle in the economy before they make their purchase decisions,” Toprak said. “But when they see signs of life, these buyers tend to start a bit of a chain reaction.”

Some pundits argue that Detroit is falling into old habits.

“For all of the talk of cutting costs to eke profits out of sedans and compacts, trucks are still the profit center,” wrote Jordan Weissman, a blogger at the Atlantic Monthly.

That overlooks some major innovations.

First, GM actually increased the percentage of sales from passenger cars this year, thanks largely to its compact Chevrolet Cruze. Second, the powertrains of pickups and SUVs have changed dramatically.

Ken Czubay, Ford vice president of U.S. marketing, sales and service, boasted that 51 percent of the F-150 pickups sold in November were powered by a V6 engine. As recently as a year ago, nearly all F-150s had V8 engines under the hood. Ford also offers a 2.0-liter four-cylinder engine as a choice on its hot-selling Explorer.

In addition, certain types of trucks have attractive rebates or discounted financing.

“You can get a decently equipped GMC Sierra for less than $300 a month,” said Todd McCallum, operations director for LaFontaine Automotive Group.

What happens if gas prices approach $4 a gallon again?

“The domestic companies have small car options that are very competitive where they weren’t in the past,” said Jeff Schuster, head of forecasting for LMC Automotive.

http://www.lvrj.com/

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Dec 24, 2011 | 0 comments | View Post

Trucking Industry Welcomes Fuel Efficiency Standards

Trucking industry leaders have greeted new fuel efficiency standards for heavy-duty vehicles with reactions ranging from cautious optimism to hearty enthusiasm.

Navistar, Cummins and the American Trucking Associations came out strongly supporting the regulations. The Engine Manufacturers Association and the Truck Manufacturers Association described the program timeline as “challenging,” but remained optimistic that the standards would be met.

Volvo, Chrysler and Conway all endorsed the standards, the Hill has reported.

Big-rig trucks will be required to reduce fuel consumption by about 20 percent, heavy-duty pickup trucks and vans by up to 15 percent, and vocational vehicles – delivery trucks, buses and garbage trucks – by about 10 percent by model year 2018, under the rules unveiled by President Obama yesterday.

“With this rule, EPA and NHTSA have now set an example for what could be a worldwide GHG and fuel efficiency regulation for heavy duty trucks and engines,” Navistar chairman, president and CEO Daniel C. Ustian said.

“This regulation will add real value for our customers as better fuel economy lowers their operating costs while significantly benefiting the environment,” said Rich Freeland, vice president and president of the engine business at Cummins, a manufacturer of engines and related technologies.

“The rule establishes a completely new regulatory scheme requiring integration of more efficient powertrains together with fuel-saving components such as low rolling resistance tires and features to improve aerodynamics,” said Jed Mandel, president of the Engine Manufacturers Association and the Truck Manufacturers Association, which represent major manufacturers of medium and heavy-duty engines and trucks in the U.S.

“Commercial truck manufacturing is highly customized and very complex; implementing a new and innovative regulatory program would be difficult under any timeframe. It will be especially challenging given the very short time before implementation,” Mandel added.

“Nevertheless, we are optimistic that this program provides a realistic opportunity to meet that challenge,” he said.

And American Trucking Associations president and CEO Bill Graves said, “Today’s announcement by President Obama is welcome news to us in the trucking industry. Our members have been pushing for the setting of fuel efficiency standards for some time and today marks the culmination of those efforts.”

In 2007, ATA endorsed a six-point sustainability program that included a proposal to set technologically feasible efficiency standards. The associations said that in addition to the new standards, U.S. should institute a national speed limit of 65 miles per hour for all vehicles and require trucks to be electronically governed at that speed.

The ATA also said the U.S. should make efforts to reduce congestion, provide incentives for technology that reduces off-road idling, continue support for the Environmental Protection Agency’s SmartWay program, and reform federal truck size and weight limits to allow the industry to operate its most productive and efficient vehicles.

In Canada today, environment minister Peter Kent released a consultation paper on the development of heavy-duty vehicle emissions rules. He said that Canada intends to implement rules that align with those of the U.S.

But in a blog post, a spoke sman for house majority leader Eric Cantor (R-Va.) said the rules introduced yesterday “further tie the hands of job creators and add yet another hurdle to getting the economy up and running.”

“The result of these regulations means increased costs for businesses and families, and fewer jobs for workers. Rather than placing additional burdens on working families and small businesses, Washington should be focused on removing barriers to growth and fostering an environment for job creation,” the post said.

http://www.environmentalleader.com/

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Aug 11, 2011 | 0 comments | View Post

Chrysler could raise interest rate in trade talks

NEW YORK – Potential debt investors in Chrysler Group LLC may push for a higher interest rate on the US automaker’s term loan to better offset business risks, people familiar with the matter said yesterday.

Chrysler’s top executives held a conference call with potential lenders to address key questions about the terms of the $US3.5 billion loan and additional details about the company’s financial metrics, sources said.

It could not be immediately learned what was discussed on Thursday’s call. But investors this week said the current rate may not adequately compensate lenders for the risks involved in investing in the company’s loan.

Investors added that due to the large size of the loan Chrysler may have to raise the interest rate to make the deal more attractive to investors. One investor said the company could lift the interest rate on the loan to as much as 6.5 per cent to make it more attractive.

“You’re paying back government debt and the company will generate negative free cash flow for the next year,” another investor said this week.

The investor added that Chrysler is likely first to pay down the $US4 billion trust note held by the healthcare trust affiliated with the United Auto Workers union, known as the Veba.

Chrysler is seeking the $US3.5 billion term loan as part of a package refinance about $US7.5 billion in government loans made during its historic 2009 bailout.

Chrysler, which is operated by Fiat SpA, declined to comment. Chief executive Sergio Marchionne said he intends to repay the loans from the United States and Canada by the end of June.

Analysts have said that Chrysler’s vehicle lineup remains heavily skewed toward pickup trucks and SUVs at a time when fuel prices are on the rise. The company has few small car offerings now except for the Fiat 500, a new brand whose launch has been beset with delays.

“This looks like a very ambitious refinancing for a company that still has some major challenges in front of it,” Conway Mackenzie consultant Fred Hubacker said.

Another investor who was shown the deal said given the large size of the loan, lenders did not feel pressed to rush in. “Worst case, they can always pick it up in the secondary,” the investor said.

Payback time

Chrysler and its larger US rival General Motors Co took a federal bailout at the height of the financial crisis in 2009 as auto sales collapsed and consumer credit dried up.

Chrysler was saddled with high-interest government loans, which bear interest rates from around 7 to 20 per cent.

The US Treasury took an equity stake in GM, which has halved in GM’s blockbuster initial public offering last year.

Earlier Thursday, sources said the US Treasury would not start selling its remaining stake in GM until August at the earliest, due in part to the stock’s lacklustre share performance.

On May 4, Marchionne met with bankers and other investors to kick off its effort to raise $US6 billion in a term loan and bonds to repay the government debt. The refinancing would put the automaker on a firmer financial footing, ahead of a potential IPO that could come later this year.

The $US3.5 billion term loan is led by Morgan Stanley. Bank of America Merrill Lynch, Citigroup and Goldman Sachs are to the right of Morgan Stanley.

The $US2.5 billion second-line bond deal is led by Bank of America Merrill Lynch.

Chrysler also plans to use about $US1.27 billion in cash from Fiat to help repay the loans. Chrysler is also seeking a $US1.5 billion revolving line of credit that will not be used to pay back the government.

Goldman Sachs is Chrysler’s financial adviser.

Morgan Stanley, the lead agent bank on the deal, has been marketing the loan at four percentage points to 4.25 percentage points above Libor with a 1.25 per cent Libor floor, along with a discount of 99 to 99.5 cents on the dollar.

http://www.businessspectator.com.au/

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May 14, 2011 | 0 comments | View Post

Ram Aims ‘Adventurer’ Pickup At First-Time Buyers

: Chrysler Group LLC; Chrysler’s Ram truck unit is planning to roll out a pickup meant to attract first-time buyers with a combination of low prices and stylish touches like 20-inch wheels.

Chrysler’s Ram truck unit says it will soon launch a basic, inexpensive version of its Ram 1500 pickup truck meant to appeal to first-time truck buyers who are looking for a vehicle they can customize and outfit to suit their needs.

The car maker has been developing the new model under the code name Adventurer but hasn’t picked an official name. The new truck uses a formula similar to the 2011 Ram Tradesman, a Ram model aimed at contractors that Chrysler unveiled at the Chicago Auto Show earlier this month. Like the Tradesman, the new truck has a standard Hemi V8 engine with 390 horsepower and a 20-miles-per-gallon fuel economy rating.

Chrysler’s marketing strategy for Ram trucks is part of the company’s plan to catch up with rivals Ford and General Motors, who sell more than twice as many pickups annually. It also reflects a general turn in the U.S. light-truck business away from marketing compact or mid-size pickup trucks to entry-level buyers.

Dodge was a pioneer in mid-size trucks when it rolled out the Dakota two decades ago. Now the Dakota is on its way out. Ford and Chevrolet have also refocused on building lower-priced versions of their big trucks to attract first-time truck buyers. Part of the reason is that these customers, typically young men, do not like the junior, unseasoned or wimpy image that often goes with a “little” truck.

Ram Truck executives had planned to introduce the new Ram 1500 model later this year. But they say the enthusiastic consumer response to the Tradesman convinced them to accelerate launch plans and start taking orders – with dealers still using the Adventurer code name. Pricing will starts $23,830, including $975 destination charge. It will arrive in second quarter.

http://blogs.wsj.com/

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Feb 19, 2011 | 0 comments | View Post

Next-Gen Pickup Trucks to Go on Mandatory CAFE Diets

2010 Chevrolet Silverado 1500 front three quarters 623x389 Next Gen Pickup Trucks to Go on Mandatory CAFE Diets
Losing weight is easy, if you believe all the extraneous gym goers populating local workout facilities in the weeks immediately following New Year’s Day. Pickup truck builders know the task of shedding the pounds will be a difficult proposition, but it’s a goal that is vitally important in the segment’s future.

Unlike passenger cars, trucks actually need much of the weight they currently carry on their square bodies. For years, copious amounts of iron and steel have kept pickups durable, reliable, and capable of rigorous duty, but inbound Corporate Average Fuel Economy standards for 2016 mean Chrysler, Ford, General Motors, Honda, Nissan, and Toyota have a rapidly closing window to get more fuel-efficient offerings on the road. And it’s not as simple as slapping on a forced-induction, small-displacement engine and a transmission with tall gearing.

From 2000 to 2010, average truck weight has jumped 22 percent, thanks to the multiplication of safety, electronic, and comfort features, plus consumer preference for crew cabs with larger cabins. Over the same time period, truck fuel economy gained just 2 percent, and the current CAFE limit in 2010 is 24.9 mpg.

By the 2016 model year, the light-truck group will have to achieve 30 mpg (fleets as a whole must reach 35.5 mpg) or automakers face penalties. The remaining compact/midsize pickups on the United States market may find their jobs to not be so difficult but the bread-and-butter half-ton, full-size range has to start working out.

The Chevrolet Silverado and its GMC Sierra twin are on track for a completely new model in 2014 and will showcase the strategies employed by one of the world’s largest automakers.

“It’s a tough task, but we’re facing it as grown-ups,” said Rick Spina, GM’s full-size truck chief. “We’re going to do everything we can to keep the customer from realizing we’ve had to make changes in a fundamental way.”

According to Spina, the Silverado and Sierra will lose about 500 pounds by 2016, and possibly a total of 1000 pounds for the early 2020s. Strengthened aluminum and magnesium frames are in the works for later generations, and the use of blown-in insulation foam instead of normal padding is rising in application.

Entering 2011, Ford has been especially aggressive with its significantly overhauled powertrain lineup for the perennially top-selling F-150. The 3.5-liter EcoBoost V-6 is being touted as the economical engine of choice for towers/haulers (EPA highway rating estimated to meet or exceed 25 mpg), though the price premium and six-cylinder stigma (don’t tell the Cummins crew) has meant resistance.

Team Blue Oval is reportedly looking into magnesium-alloy frames and aluminum body panels for the next-gen F-150, which could yield 800 pounds in savings.

In addition to weight savings, truck builders are also looking into cleaning up aerodynamics and smoothing airflow. With as large as a frontal area as many trucks possess, designers and engineers will have to collaborate to an even greater extent to ensure there’s no compromise in engine cooling demands, road and wind noise, or aesthetics. Marketing to the strongly traditional truck market means you can’t make too many obvious changes, after all.

And then there’s the price. Aluminum and magnesium may not seem exotic when seen on the periodic table of elements, but the price they command on the free market has been a major hindrance to their widespread implantation in all types of vehicles. Automakers can’t afford to get it wrong when it comes to CAFE, however, and we can only hope truck prices don’t balloon out of the realm of normalcy in the future.

http://motortrend.com/

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Dec 29, 2010 | 0 comments | View Post

2010 Dodge Dakota Extended Cab Big Horn 4×4 “The Right Size Pickup Truck”

The new 2010 Dodge Dakota Extended Cab pickup truck comes with bold Dodge styling, the most horsepower its class, with the versatility and capability for work or any type of lifestyle.

Production numbers for pickup trucks continue to lead in all segments because they are the perfect work or play vehicle, and come in compact and full-size. The Dakota is a compact pickup with the most power, (302hp), most towing capacity (7,250lbs. with the V8), most interior room, (30cu.ft. Extended/37.1cu.ft. crew cab), and the longest cargo box, (6ft.6in. extended cab), in the segment. As the leader in these four important areas is what makes the Dakota so appealing to so many pickup consumers.

For 2010, Dodge Dakota adds new Tokico gas-charged shock modules and Arvin rear springs for improved ride quality and handling prowess, plus new exterior colors.

The Dakota is offered in two body styles, extended and crew cab, with a boldly styled hood, cross-haired grille similar to the Ram, a front fascia trimmed with brushed aluminum, flared fenders and powerful halogen headlamps. The extended cab features full-swing-out rear access doors that open nearly 170-degrees. Dakota also offers an available rear spoiler, cargo-box top protection and utility rail/tie-down system.

The Dakota comes standard with a 3.7 liter Magnum V6 engine that generates 210hp at 5,200rpm and 235lb.ft. of torque at 4,000rpm. The available 4.7 liter V8 incorporates two spark plugs per cylinder, like the 5.7 liter HEMI V8, which includes increased compression ratio, 9.0:1, improved cylinder head port flow and combustion system. It puts out 302hp 5,650rpm and 329lb.ft. of torque at 3,950rpm. The V8 is also equipped with electronic throttle control and is E85 compatible. The 3.7 liter Magnum V6 is backed by a standard four-speed automatic with OD, while a five-speed automatic OD transmission is standard on V8 equipped models.

With new Tokico coilovers up front for even sharper and quicker cornering, Dodge matches the high-performance with a great power-assisted rack & pinion steering system. The steering wheel always felt right in my hands with great feedback from the road and almost instantaneous response to my inputs. The Dakota is no sports truck but getting around slower city traffic, freeway entry and parking lot maneuvering is easy.

If you need the enhanced ability of four-wheel-drive, Dodge offers an easy to use shift-on-the-fly 4X4 transfer case with a large switch to the left of the center console with neutral, 2WD, locked 4WD High and locked 4WD Low. It couldn’t be easier when going off-road.

Quickly and safely slowing the Dakota extended cab 4X4 down from speed are big, power-assisted, 12.2in. vented discs clamped with dual-piston calipers up front, and 11.6 drum brakes in the rear. Keeping you in control during severe braking maneuvers are standard ABS and electronic brake force distribution.

My extended cab Dakota Big Horn 4X4 test model rode on 18X8in. alloy wheels wrapped with Goodyear 265/65R18in. Wrangler tires for great on-road/off-road capability.

Also new this year inside is a clever under-seat storage system in the Dakota Crew Cab-a first for Dodge Dakota-that includes the unique Crate ‘N Go’ collapsible and removable cargo management system. Additional storage options are provided throughout the interior including a storage bin above the glove box, a center console incorporating three cupholders with modular insert with a pull-out bin specifically designed to hold electronics such as an MP3 player, (which may be plugged into Dakota’s audio systems),

Or cell phone (Uconnect phone available). In the cargo box available built-in utility rails make cargo box tie-downs infinitely adjustable, and the dual-position tailgate may be secured in a mid-position, which provides support for extra-wide or extra-long cargo. Inside or out, Dakota has your personal or professional storage needs taken care of.

Standard equipment in my test model not mentioned above included cruise-control, power windows/door locks, trip computer, cruise-control, remote keyless entry, power accessory delay, variable intermittent wipers/washer, media center/AM-FM-CD radio with four-speakers, fixed glass rear window with defogger, AC/heater, leather wrapped/tilting steering wheel, white-faced instrument cluster with a black bezel, storage slots in each of the four doors, dual sunvisors, dual map lamps, power-remote sideview mirrors, thick cut-pile carpeting and grab handles at each ‘A’ pillar.

My test Dakota came with these options: brushed aluminum fascia/headlamp trim, remote start, full-swing out rear doors, sentry key theft-deterrent system, Media Center 6-CD/DVD/MP3/Satelitte radio, 275-watt amp with six-Alpine speakers, steering wheel audio buttons, tilt/leather-wrapped steering wheel, front/rear floor mats, foglamps, pickup box utility rails, HD service group, HD engine cooling, auxiliary transmission oil cooler, 6X9in. fold-away sideview mirrors, 7-pin wiring harness, under the rail box bedliner, anti-spin rear axle differential, 3.92 axle ratio, 6-way drivers’ seat with manual lumber support, engine block heater, and 18X8in. alloy wheels.

Standard safety systems include advanced multi-stage front airbags, tire pressure monitoring system, side-impact front airbags, side-curtain airbags for all outboard seats, 3-point safety belts with load limiters/pretensioners up front, front and rear crush zones and steel beams in each door.

The 2010 Dodge Dakota extended cab Big Horn 4X4 pickup is boldly styled in the Dodge Ram tradition, has plenty of power for business or personal use, handles very well in everyday use, and features an interior with all of the convenience and comfort found in a mid-size sedan. The base price of my test Dakota is $27,880.00 and the price of it nicely loaded is $34,040.00 including destination charges.

http://www.automotiveaddicts.com/

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Jul 21, 2010 | 0 comments | View Post

2010 Dodge Ram 3500 Heavy Duty: The Godzilla of pickups

In recent decades, the leading Japanese automotive companies have fielded successful models in just about every conceivable United States market niche. After beginning with just a handful of small cars and trucks in the 1960s, Honda, Toyota and Nissan now offer a wide range of best-sellers. Affordable family cars? Check. High-performance sports cars? Check. Luxury sedans? Check. Full-size pickup trucks? Check.

There is one niche that is still dominated by the Big Three American companies, however — heavy-duty trucks. Chevrolet, Dodge and Ford all offer pickups that are far larger and more powerful than the biggest Japanese trucks. Designed and built for serious hauling, they can be equipped with mighty diesel engines and dual rear wheels — features that are not even offered on the biggest Japanese competitors.

Our test 2010 Ram 3500 is among the best of these workhorses. With a standard 6.7-liter Cummins Turbo Diesel engine and extra-strong six-speed automatic transmission, it can haul up to 17,000 pounds, making it ideal for both construction work and recreational trailer or boat hauling.

Our test model came with several options that increased its already massive profile. They included dual rear wheel wrapped in huge flared fenders, optional four-wheel-drive that raised its ride height, and the extended Mega Cab four door cabin. With its huge upright grill, the Ram 3500 looks like a slightly smaller Freightliner semi-truck. Viewed from the rear, it looked as wide as a battleship. When people saw us coming, they almost fled in fear, screaming, “Godzilla! Godzilla!”

Drivers don’t need to fear the Ram 3500, however. Due to the wonders of advanced engineering and re-tuned suspension settings, the one-ton truck drives like a three-quarter ton, at least most of the time. Without a full load, acceleration is impressive, thanks to the turbo diesel’s 650 foot-pounds of torque. The power steering is light and precise, making it relatively easy to maneuver, even in downtown traffic. Stopping distances are longer than a typical car, of course, but an airbrake is available to make steep hills more manageable.

Our test model was also equipped with every conceivable option under the sun, further disguising the fact that the Ram 3500 is, in fact, a very large truck. Driving down the road, we were pampered by heated leather seats, a heated leather steering wheel, a power sunroof, SIRIUS Satellite Radio and one of the most powerful air conditioners on the planet. Backseat passengers could chill out even further with built-in TV.

The illusion of normality was disrupted by rough pavement, however, where the Ram 3500 bounced around more than smaller trucks. Several hundred pounds of sand in the bed probably would have helped even out the ride in such conditions. Driven empty on smooth roads, the jiggling was hardly even noticeable — a remarkable achievement for any heavy-duty truck.

Despite its creature comforts and relatively refined road manners, extra care has to be taken when driving the Ram 3500. Because of its length and flared rear fenders, wide turns are required, especially when telephone poles and other obstacles are placed near intersection corners. Care also needs to be taken when backing up because the dual wheel rears easily roll over small things, like curbs and Smart cars. The optional rear-view camera in our test model was a big help with parallel parking. Narrow streets also need to be approached with caution since the dually rear end make the back of the truck so wide.

Our fully-loaded test Ram 3500 was priced at just under $58,000, a remarkable bargain, given its capabilities and luxury appointments. That’s less than some cars we’ve tested — cars it could easily tow without the slightest effort.

http://www.onlineprnews.com/