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 SURVEY PROFILES ANNOYING
DRIVERS
6 October 2000
The most irritating thing one driver can do to another is cut him/her off, reports a survey that asked drivers to name their pet peeves about
fellow motorists. Twenty per cent of those surveyed by Market
Opinion Report indicated
that being cut off by other drivers really gets their goat. Another 16 per cent said their greatest annoyance is drivers who don't use turning
signals.
And tailgaters weren't far behind. Fifteen per cent of drivers said they have no tolerance of drivers who hug their
bumper. The survey of 1,000 drivers was done by Market Opinion Research, which
tracks trends of auto companies and transportation agencies. Interestingly, only three per cent of drivers said motorists who run
red lights are irritating -- the same percentage as those who are annoyed when others use cellular phones while behind the
wheel.
Other driver grievances:
* driving too slow/driving slow in the fast lane (13 per cent)
* driving too fast (five per cent)
* discourteous drivers (three per cent)
* changing lanes too often (two per cent) |
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CONSUMER RESEARCH
29 September 2000
In the battle of "things gone right" among the world's automakers, Toyota Motor Corp. and Volkswagen AG appear to have an edge on their rivals, according to the 2000 J.D. Power and Associates Automotive Performance, Execution and Layout
Study(SM) (APEAL) just released.
Toyota models rank highest in three of the 15 vehicle segments with the Avalon, Land Cruiser and Tundra each winning their respective segments. The Tundra is the first
non-domestic full-size pickup truck to top its segment.
And for the second consecutive year, three Volkswagen models also captured top segment rankings
-- the popular Beetle, Jetta and GTI. The Beetle outranks the new Chrysler PT Cruiser, which ranks second in the compact car segment.
In its fifth year, the APEAL study is based on responses from 101,768 new-vehicle owners and measures what excites and delights them with their vehicles' features and design.
The 2000 APEAL study looks at eight areas of vehicle performance and design. Within those eight areas, the study measures consumer reaction to more than 100 attributes. The areas: styling; engine and transmission; comfort and convenience; ride, handling and braking; seats; heating, ventilation and cooling; cockpit and instrument panel; and sound system.
Here's a look top three models in the APEAL study's 15 Segments:
Compact car: VW Beetle, followed by Chrysler PT Cruiser and VW Golf.
Compact pickup: Dodge Dakota, followed by Toyota Tacoma and Chevrolet S-10.
Entry mid-size: VW Jetta, followed by Pontiac Grand Am and Oldsmobile
Alero.
Full-size pickup: Toyota Tundra, followed by F-150 Super Crew and GMC Sierra.
Premium mid-size: Toyota Avalon, followed by Nissan Maxima and VW
Passat.
Mini sport-ute: Subaru Forester, followed by Toyota RAV4 and Honda CR-V.
Entry luxury: BMW 3-series, followed by Acura CL and Lexus ES300
Compact sport-ute: Nissan Pathfinder, followed by Toyota 4Runner and Jeep Grand Cherokee.
Premium luxury: Mercedes-Benz S-class, followed by BMW 5-series and BMW 7-series.
Full-size sport-ute: Toyota Land Cruiser, followed by GMC Yukon XL and Ford Excursion.
Sporty car: VW GTI, followed by Mistubishi Eclipse Spyder (not sold in Canada) and a tie between the Toyota Celica and Toyota MR2
Spyder.
Luxury sport-ute: BMW X5, followed by Lexus LX470 and Lexus RX300.
Sports car: Chevrolet Corvette, followed by Porsche 911 and Audi
TT.
Compact van: Honda Odyssey, followed by Toyota Sienna and Chrysler Town & Country.
Full-size van: Ford Econoline, followed by Chevrolet Express and GMC Savanna.
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 THINK TWICE ABOUT HIGH
TEST:
8 September 2000
If the pump price of gasoline has you down, this might be a good time to think twice about filling up with premium. Generally speaking, most auto makers today tailor their engines for
regular-grade gasoline. For instance, of the 25 GM engines on the market today in North America, only one requires premium. DaimlerChrysler says only
two-tenths of one per cent of its cars sold need it, excluding Mercedes-Benz models. And Ford says less than five per cent of the cars it sold last year required premium gasoline. Even the luxury Lincoln Town Car was recalibrated last year to use regular grade. Check your owner's manual to be certain.
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NEW MODEL MAKE-OVERS
8 September 2000
Most cars receive a significant makeover, both in styling and engineering, every four to five years. For light trucks and sport-utility vehicles these change come less frequently--say, every six to seven years. In either case, a major makeover ushers in a new generation of the same model and with it usually comes a significant price increase. So smart shoppers stay on the lookout for cars and trucks soon to receive upgrades. That's usually where the best deals are to be found.
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 FLOOD-DAMAGE
ALERT:
31 August 2000
Thousands of cars submerged in last fall's Hurricane Floyd's floods
are beginning to surface on the used car market in Canada, warns
Carfax.com, a provider of vehicle history information.
"One of 10 vehicles in our database has a hidden problem and we are
increasingly uncovering vehicles that have a flood title in their
past," says Carfax.com spokesman Larry Gamache.
According to the American Automobile Association, at least 75,000 cars
were flooded by the storm.
Gamache says Carfax.com will provide a free check to see if a vehicle has
been listed as flood-damaged. Just go the Web site (www.carfax.com) and
input the 17-digit vehicle identification number.
Other checks for flood damage:
* Examine the trunk, glove box, carpeting and under the dashboard and
seats for signs of discoloration or faded and stained upholstery.
Carpeting that has been replaced may fit too loosely or may not match the
interior colour.
* Smell for musty odours and look for a well-defined water line inside the
car.
* Check the wiring under the hood to see if it cracks or bends. Wet wires
become brittle when dried and are susceptible to cracking.
* turn it on: test the lights, the windshield wipers, turn signals,
cigarette lighter, radio, heater and air conditioner several times to make
sure they work.
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 Ford Motor Company Responds to the Firestone Tire
Recall Statement.
11 August 2000
The following statement in response to Bridgestone/Firestone's announcement
of a recall of Firestone P235-75R15 ATX, ATX II and certain Wilderness AT tires is
attributed to Helen Petrauskas, Ford vice president, Environmental and Safety Engineering.
Ford Motor Company has worked closely with Firestone to thoroughly investigate tire tread separation concerns. As we haverepeatedly stated, we
are absolutely committed to doing the right thing to protect our customers
and to maintain their trust.
Related Items:
Bridgestone/Firestone Announces Voluntary Tire Recall Questions and Answers from the Ford Call Center for Firestone Inquiries
See Ford Motor Company's Message in USA Today & Wall Street Journal Ad
For more information,
contact: Firestone (800) 465-1904 or Ford (800) 660-4719 or send a note to tireinquiry@ford.com for information on the
recall and tire safety.
An analysis of field data by both companies and reviewed with the National
Highway Traffic Safety Administration (NHTSA) indicates that tires being
recalled today account for the overwhelming majority of tread separation
failures reported on Firestone tires.
After extensive review of the data, we are satisfied that Firestone has
isolated the affected population of tires that should be recalled. We
believe that the Wilderness AT produced since 1996 at Firestone's Aiken,
S.C.; Joliette, Que.; Oklahoma City, O.K.; and Wilson, N.C. plants have an
outstanding safety record. We have confidence in Wilderness AT tires
produced at these plants.
NHTSA has not closed its investigation. But in the interest of customer
safety, Firestone is not waiting to act and should be commended for its comprehensive and decisive action. We have been working with Firestone and
NHTSA, and we strongly support Firestone in its voluntary recall and customer satisfaction actions. Firestone has long been, and continues to be,
a valued supplier to Ford.
Ford Motor Company and its dealers will work with Firestone and its service
centers to replace tires on our vehicles as quickly as possible. The safety
campaign will concentrate first on customers in Arizona, California, Florida
and Texas where more than 80 percent of the reported Firestone tread separations have occurred.
Maintaining tires at the appropriate air pressure is necessary to protect tires.
Under inflated tires deteriorate more rapidly than tires that are properly maintained and are at an increased risk of tread separation,
blowout or other failure.
At the request of Firestone, Ford has evaluated the performance of these tires at 30 psi and has determined that the vehicle maintains good
performance characteristics at this higher pressure. Ford recommends that Explorer and Mountaineer customers with 15" Firestone tires maintain their
tire pressure in the range of 26-30 psi.
Customers with other vehicles should check the door plate on their vehicle
for recommended tire pressure and make sure that tire pressure does not fall
below the recommended level. If customers have any questions about tire pressure or safe
operation, they should contact their vehicle dealer or Firestone service center.
If customers have any questions about tire pressure or safe operation, they
should contact a Firestone service center or their vehicle dealer. Firestone
has established a toll-free number – (800) 465-1904 – for concerned customers. Ford Motor
Company customers can call (800) 660-4719 or send a note to tireinquiry@ford.com for information on the recall and tire safety.
Related links
Ford Company News Room:
http://www.ford.com/default.asp?pageid=106&storyid=935
Ford Company News Room Q &
A:
http://www.ford.com/default.asp?pageid=106&storyid=936
Bridgestone/Firestone Announces Voluntary Tire Recall:
http://mirror.bridgestone-firestone.com/news/newsmain_ATX.htm
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 VW
PUSHES CERTIFIED USED CAR PROGRAM
11 August 2000
In keeping with industry trends, Volkswagen has created a certified pre-owned program for used vehicles sold through its dealerships in Canada and the United States.
VW officials suggest the program will allow young buyers to become VW owners, even though they might not yet be able to afford a new Golf or Jetta. The program is part of a long-term brand strategy, says VW of North America sales vice-president Frank Maguire.
VW vehicles participating in the program will undergo a 112-point inspection certified by VW's credit arm, and will be covered by a full two-year/40,000 km warranty.
All VW dealers must officially participate in the program.
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 MOTORCYCLE GUIDE ARRIVES
11 August 2000
Current and future motorcycle owners may be interested in a new comprehensive guide to every street bike sold in Canada.
Motorcycle Buyer's Guide 2000 offers vital statistics and road tests of models from BMW to Buell, Ducati, Harley-Davidson, Honda, Junior, Kawasaki, Suzuki, Triumph, Victory and Yamaha. Each evaluation features specifications, performance numbers and author Bertrand Gahel's own value/price and experience level indicators.
Priced at $14.95, the guide is available from Motor Cycle Guides, 230 Bord de l'eau East, Longueuil, Quebec, J4H 1A2. Or phone 450-651-9804, fax 450-651-1692.
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 JUNK
IT OR KEEP IT?
11 August 2000
Junk it or keep it? That's the question editors at Consumer Reports have attempted to answer in the August issue of the popular magazine.
Ah, but Consumer Reports concedes there are no easy answers. Too many variables come into play: is the car safe? Reliable? Cost effective? A high polluter? How much will it cost to repair your clunker compared to the price of replacing it?
However, the magazine does offer a five-point checklist to help owners come to their own conclusion concerning whether or not the time has come to get a new or newer vehicles.
The magazine asks owners to examine their old cars concerning safety, value, running condition, reliability and, perhaps most important of all, the likelihood it suffers from a fatal flaws. Included is a worksheet to help owners determine whether or not their old cars are keepers.
Finally, the magazine examined 18 popular 1992 models to determine how likely each of them is to suffer problems in eight major mechanical areas. The editors try to answer the most basic of questions: to repair or not to repair?
Top models from the class of '92: Acura Integra and Vigor; Dodge Stealth, Honda Accord, Civic, Prelude; Infiniti G20, Lexus ES300, LS400, SC300/400; Mazda MX-5; Mercedes E-Class; Nissan Maxima, Pathfinder, Sentra, Stanza, 240SX; Subaru Legacy; Toyota Camry, Celica, Corolla, Paseo, Previa, Tercel; Volvo 240.
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 CANADIANS NOT WORRIED ABOUT RISING
GAS PRICES
30 June 2000
Brace yourself for another round of teeth-gnashing over gasoline prices. According to the Canadian Automobile Association (CAA) summer holiday drivers should brace themselves for shock at the pump: regular gas prices higher than $.72 a litre.
They could go higher if the price of crude oil soars well above $US30 a barrel. And rest assured, that will send out the six o'clock news hounds. Armed with their television cameras, they will search for shocked, exasperated, alarmed, angry consumers. They'll find some, too. But not in numbers that are statistically meaningful.
Truth is, Canadians don't care much about the price of gasoline. Not really. If we did, we'd be marching in protest on the one group most responsible for gasoline price gouging: governments of all levels.
According to the Canadian Petroleum Institute, over the last couple of decades, the real price of gasoline has fallen by 35 per cent, while the tax component has increased by 255 per cent. Taxes account for 50 per cent of the pump price of a litre of gas. Of the rest, 30 per cent represents the cost of crude oil and 20 per cent the cost of refining and marketing.
Worse, as University of Manitoba economics professor Costas Nicolaou points out, the worst kind of price gouging at the pump comes in the GST is applied. Economists call it cascading while the rest of us call it double taxing. Here's how it works:
First, GST is charged on the sale of refined gas at the wholesale level. Then at the retail level, GST is again applied on sales at the pump after the federal excise tax (10 cents a litre) and any provincial and local levies have been factored into the price. A double tax. And by Nicolaou's calculations, that double tax puts at least an extra $1.5 million into federal coffers every single day.
And where does that all that gasoline tax money go? At the federal level, into general revenues. In return, the federal government spends just seven cents of every fuel related tax dollar on the highway system. It is a travesty, but Canadians haven't taken to the streets to protest.
They also haven't started turning to fuel thrifty cars in great numbers, either. As I write this I have before me a list of Canada's top 10 most fuel efficient cars and trucks. They include the Honda Insight hybrid car (half gasoline engine, half electric), the Pontiac Firefly, Chevrolet Metro and so on.
These are not hot sellers, folks. Not at all. In fact, the top 10 most fuel efficient cars and trucks represent about one per cent of overall car and light truck sales.
It seems that this era of environmental concern and "fantastically" high fuel costs, fuel efficiency is well down the list of priorities when consumers are shopping for new wheels. One study by Natural Resources Canada a few years ago found that price, type of vehicle, reputation, comfort, appearance and performance all ranked higher than high fuel economy among consumers.
If you look closely at developments in the auto industry, this actually make complete sense. You see, the overall fuel efficiency of new vehicles has doubled since the mid-1970s. So while ever-increasing government taxation has driven up gas prices (remember, half of everything you pay at the pump goes directly into government coffers), the overall cost to you has been kept somewhat in check by the smart work of automotive engineers who have made new vehicles more fuel-miserly than ever.
Consider it this way: according to the CAA, it will cost the average Canadian motorist about $8,060 to drive a vehicle this year. Of that 8,000, fuel and oil represent just $1,229, or about 15 per cent of total ownership costs. Not much in the big scheme of things.
Or to look at this another way, according to Natural Resources Canada, the average annual fuel cost for a tiny, two-door Chevy Metro is $586, compared to $1,172 for a family-size Chevrolet Venture minivan. Yes, the Venture costs exactly twice as much in gas every year, but on a monthly basis that's just 48 bucks. And try loading you kid's soccer team into a Metro.
The reality is, we live in a big country where many of us face lengthy commutes each day. We do not live in Europe, where a long drive is 30 kilometres. We live in Canada, where 30 kilometres is often the distance from our homes to the nearest shopping mall. We also live in a country where public transit outside of Toronto is at best limited. For most commuters, public transit is not a viable alternative to the car at all.
And besides, in the big picture, gas is cheap. In England a litre of gas sells for about $1.50 and across Europe, a litre of gas averages about $1.40. Our $.70 a litre looks cheap by comparison.
What's more, Professor Nicolaou believes gas in Canada would be cheaper still if governments were really serious about giving consumers a break at the pump. All it would take, suggests the University of Manitoba economics professor, is for government to implement a simple,
cost-effective tactic designed to inject a little serious competition into gasoline retailing. In short, make life a little more difficult for the oil companies.
His plan involves establishing a network of strategically placed service stations. They would be owned by government but leased to private entrepreneurs who would run them like any other
business--with one exception: they would buy their gasoline on the world market , thereby allowing them to retail it at more competitive prices. And they would be closely monitored to ensure they did just that. By Nicolaou's calculations, that would give consumers a price break of between five and 10 cents a litre.
Moreover, the presence of these stations would force the big oil producers to lower prices at their retail outlets. Nicolaou has a rather complicated strategy to ensure these new stations neither interfere with fair market competition nor cost taxpayers any money to become established and remain in operation.
It's an interesting, creative idea, but don't hold your breath waiting for it to become reality. At least not while gas remains relatively cheap and Canadians feel disinclined to force governments to spend their gasoline tax money on public transit and better roads.
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FORD HAS MOST LOYAL OWNERS: STUDY
Dec 23 1999
Ford owners are the most loyal to their brand, reports a study from
industry researchers J.D. Power and Associates.
The Ford brand had the highest brand loyalty with 61.3 per cent of its
customers replacing their current Ford vehicles with new Ford models,
compared to the industry average of 46 per cent., said J.D. Power.
Rounding out the top five were Lexus and Toyota brands at 56.9 percent and
55.1 percent, respectively; German-American DaimlerChrysler AG's
Mercedes-Benz at 54.4 percent; and General Motors Corp.'s Chevrolet at
52.2 percent.
The study was based on responses from over 42,000 new-vehicle buyers.
About 46 percent of all buyers who replace a vehicle are brand loyal, the
highest level since J.D. Power started tracking it in the mid?1980s.
Buyers of light trucks such as pickups, sport-utility vehicles and
minivans (58 per cent) are more loyal than car buyers (46 per cent).
Full-size pickup truck buyers are the industry's most loyal buying segment
with an unchanged rating of 74 per cent. Luxury car owner loyalty
rebounded 10 percentage points to 60 percent.
The truck performance reflects older, more-male buyers, who tend to be
more loyal, said Thad Malesh, J.D. Power's director of North American
forecasting.
In the sport-ute segment, loyalty rates rose two points to 20 per cent
among mini-sport-ute buyers; rose 6 points to 59 per cent among compact
sport-ute buyers; and fell 5 points to 54 per cent among full-size SUV
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 CANADA'S
FUEL CONSUMPTION GUIDE RELEASED AND ON-LINE
Dec 23 1999
Natural Resources Canada has released the 2000 Fuel Consumption Guide.
The guide allows vehicle buyers to compare fuel consumption ratings for
2000 model year vehicles. Consumers can also find estimated yearly fuel
costs, based on an annual distance traveled of 20,000 kilometers, and
Canada's average fuel price.
Produced by Natural Resources Canada's Office of Energy Efficiency in
collaboration with the Canadian Vehicle Manufacturers' Association and the
Association of International Automobile Manufacturers of Canada, the guide
is available electronically on the AutoSmart Web site - http://autosmart.nrcan.gc.ca
Consumers should also know that they can pick up a free copy of the guide
from new car dealers, provincial and territorial vehicle-licensing
agencies, and at Les Caisses populaires et d'economie Desjardins in
Quebec.
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SIDEBAR
ON BUYER TYPES
Nov 12 1999
According
to research from J.D. Power and Associates, there are four types of
vehicle shoppers that manufacturers and dealerships should
understand when implementing their sales and marketing strategies.
They include:
* Armed Unfriendlies (33 per cent): a
relatively antagonistic group of shoppers, they describe themselves
as precise and systematic and they are equipped with information in
order to prepare for negotiating with sales personnel. This group
represents the youngest and most educated of the four groups.
* Relationship Seekers (25 per cent):
outgoing and loyal to brands and dealerships, they enjoy shopping
and negotiating for a new vehicle.
* Low-involved Pragmatists (24 per
cent): private and reserved, this convenience-minded group believes
that shopping around for the perfect vehicle is not the best use of
their time and they are indifferent toward the kind of car they
drive.
* Highly-involved Deal Seekers (18 per
cent): 73 per cent male, they are younger than the average
new-vehicle shopper and like to shop many dealerships. They tend to
gather a significant amount of information before shopping. They are
strong-willed, direct and competitive and they enjoy shopping for a
new vehicle.
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SIDEBAR
In
1998 the automotive sector represented about $132 million in
retailing activity in Canada.–Source: DesRosiers Automotive
Consultants.
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HONDA AND GM IN TALKS
Dec 3 1999
A Japanese business daily has reported that Honda Motor Co. will supply General Motors with low-emission gasoline engines for future automobiles.
That move resulted in Honda denying growing speculation that Honda and GM were considering an alliance of some sort. Honda said GM is merely one of many possible business partners.
In a statement, Honda reiterated its long-held position that it did not plan an equity
tie-up with any automaker.
But analysts have seen merit a tie-up of some sort between Japan's third largest carmaker and GM, the world's largest. But Honda has vigorously denied any interest in an equity agreement with another automaker and GM is already very large, so analysts are not optimistic that a business relationship between the two would extend beyond agreements to supply components, certain technologies and other expertise or equipment.
Speculation about Honda and GM has come on the heels of speculation in a German magazine that DaimlerChrysler AG was mulling a stake in Honda. In that instance, Honda also denied such agreement was pending with DaimlerChrysler or any other automaker.
Many analysts feel that Honda is sufficiently well established in global markets to maintain its independence, despite the growing consolidation in the auto industry that has seen Renault take a controlling stake in Nissan, Ford do the same in Mazda and the former Daimler-Benz consolidate with the former Chrysler Corp.
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