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Saab Union Asks President Obama To Pressure GM for 11th hour deal

David Walker, LeaseTrader.com — Tue, 15 May 2012 21:41:55 GMT

Saab Union Asks President Obama To Pressure GM for 11th hour deal

The door has not yet closed on Saab. Hoping for yet another 11th hour stay of execution, the defunct carmaker's chief union, IF Metall, has written directly to President Obama, asking him to intervene, according to Just-Auto. While on the surface, this may seem silly, it's actually rather clever, even if it has little likelihood of working.

With the United States government still owning 26 percent of General Motors, the Swedish union is hoping it can appeal to Obama to pressure General Motors into granting licenses to continue manufacturing Saab vehicles, according to the report. It's this sticking point that has torpedoed every attempt to forestall Saab's dissolution, as GM fears that were it to allow continued production of Saabs developed under GM's ownership, it would open up the possibility of intellectual property conflicts, particularly if a Chinese manufacturer that competes with GM's own Chinese partner, SAIC, acquires Saab.

You have to admire Saab loyalists, as they clearly have not given up hope. But in this case, they just don't have any other options: Unemployment in the Saab hometown of Trollhättan has hit 40 percent, according to the report.

Source: Autoblog via Just-Auto

Senate Passes Mandate Vehicle Data Recorders for 2015

David Walker, LeaseTrader.com — Tue, 15 May 2012 16:41:48 GMT

Senate Passes Mandate Vehicle Data Recorders for 2015

It's been working its way through Congress for years, but according to Car and Driver, an event recorder mandate could soon become law. The Senate has already voted to adopt a transportation bill that would make the so-called "black boxes" mandatory by the 2015 model year. According to the report, the House of Representatives is also expected to pass a similar statute.

While the specifics of the bills are "vague" – to use C/D's words – they're also likely to change before becoming law. What probably won't, according to the report, is the standard data set that the Department of Transportation has set forth, 15 measurements that include direction of acceleration, throttle position, and time that the airbags fired, among others.

This raises the specter of government snooping, of course. The Senate version at least specifies that the data contained in the little electronic box is actually owned by the owner of the vehicle, according to the report. Johnny Law can still come around with a warrant to gain access to it, however, and first responders and paramedics would be able to do so without the warrant, provided they needed the information to respond to the emergency.

[SOURCE: Autoblog.com via Car and Driver ]

Sales of Cars and Trucks Pushes U.S. Economy forward

David Walker, LeaseTrader.com — Mon, 14 May 2012 20:55:27 GMT

Sales of Cars and Trucks Pushes U.S. Economy forward

The auto industry has long been a cyclical business, and though this last trough was a deep one, the coming boom has economists excited. According to Bloomberg, the auto industry's comeback contributed fully half of the 2.2 percent national economic growth in the first quarter of this year. Auto sales are on target to top 14 million vehicles this year, the best pace in four years.

Production is up at all three domestic carmakers, which has a ripple effect throughout the economy. Bloomberg cites Chad Moutray, chief economist of the National Association of Manufacturers, who estimates that every dollar spent on a new vehicle leads to an addition $2.02 in economic activity. The industry's share of gross domestic product for the quarter was 2.8 percent, which is nearly as high as it was in 2007, before the economic crisis that devastated the industry, according to the report.

Yet despite the rise in fortunes for carmakers, stock prices have yet to follow suit. A key automotive index is up just 1.5 percent so far this year, but is down 31 percent in the past 12 months, according to the report. The U.S. Treasury Department recently indicated that because of lagging stock prices, it would not be divesting its share of General Motors stock anytime

Source: Autoblog via Bloomberg

Honda Wins Small Claims Battle, but Loses Public Relations War

David Walker, LeaseTrader.com — Wed, 09 May 2012 20:18:38 GMT

Honda Wins Small Claims Battle, but Loses Public Relations War

A judge has reversed a lower court ruling against Honda over the automaker's fuel economy claims. Heather Peters successfully sued Honda in small-claims court in February, claiming her 2006 Civic Hybrid didn't return the advertised 50 miles per gallon Environmental Protection Agency rating. Peters was awarded $9,867 in damages in the lawsuit, but now Judge Dudley W. Gray II of the state Superior Court in Torrence, California, has reversed the lower court's ruling.

Honda has offered owners a settlement in a larger class-action suit, paying out either $100 or $200 depending on the vehicle and as much as $1,500 toward the purchase of a new Honda. According to The Detroit News, around 1,700 Honda owners have declined to participate in the class-action suit.

SOURCE Autoblog via The Detroit News, Don't Settle With Honda

PRESS RELEASE

Honda Wins Small Claims Battle, Loses Public Relations War

United States, California, Los Angeles, May 8, 2012 - Last February a small-claims court in California ordered Honda to pay Civic Hybrid owner Heather Peters $9,867.19 for falsely advertising 50 MPG city and highway. Instead of owning up to its mistake, Honda hired a national law firm with more than 800 lawyers to appeal her win. Lawyers are not allowed in small claims court in California, but they are allowed on appeal where losses are re-tried in their entirety.

After three days of testimony on Honda's appeal, Honda's dream team of lawyers, led by Roy Brisbois, founding partner of Lewis, Brisbois, Bisgaard and Smith LLP, convinced Superior Court Judge Dudley W. Gray, II to overturn Peters' victory. Honda cited reams of complex federal regulations that it claimed required advertising of fuel economy numbers that the EPA itself had determined were inflated. Peters' reaction to the ruling was:

"It's a sad day when regulations designed to protect consumers are used against them. I'm certain that the EPA and FTC never intended to shield Honda from liability for advertising claims that a court of law determined to be false."

A 178-page EPA report of 2006 found that hybrids in general have a greater sensitivity to operating conditions than conventional vehicles. The report states that hybrids "can either take full advantage of the hybrid technology or essentially nullify it" and found that the EPA testing methods overstated city fuel economy of the Honda Civic Hybrid by 85% when compared to the onroad testing of Consumer Reports. Click here to read full report - www.epa.gov/fueleconomy/420d06002.pdf

Nevertheless, Judge Gray found that Honda complied with EPA and FTC regulations. Peters does not fault Judge Gray for applying a poorly-crafted consumer regulatory scheme beyond his control, but she is urging the FTC and EPA to revisit the regulations to better protect consumers.

Regardless of Honda's victory in this small claims appeal, it has suffered an enormous public relations loss. The Peters case was widely publicized in over 1,000 news stories globally which have given a great deal of negative publicity to the automotive giant. Peters says:

"Of course I'm disappointed, but I'm still glad that I raised awareness that Honda is no longer the great brand that it used to be. They used to go the extra mile in customer service, now the go the extra mile fighting customers in court. I guess the moral of the story is buyer beware - especially of Honda!"

The court decision is now final as California's small claims court rules do not allow for further appeals. Click here to read the Court's ruling - Final Decision

A recent settlement of class action litigation regarding the same claims raised by Peters may help other Civic Hybrid owners collect a nominal cash award and coupons towards future Honda or Acura purchases. Peters urges anyone who owned or leased a 2003-2009 Civic Hybrid to read about their rights at www.hchsettlement.com. 1,705 people who opted out of the class action settlement may possibly be able to opt back in. The Settlement Administrator is available to answer questions about the terms of the settlement and about the possibility of opting back in. Call (877) 465-4797 and press "9" to skip the recordings and speak to a human.

Watch Lingenfelter Chevy Camaro ZL1 hits 202 MPH Video

David Walker, LeaseTrader.com — Wed, 09 May 2012 19:50:39 GMT

Watch Lingenfelter Chevy Camaro ZL1 hits 202 MPH Video

When Lingenfelter Performance Engineering announced it had crossed the 200-mph mark in its tuned Camaro ZL1, the man guiding the wheel was Hot Rod editor-in-chief Dave Freiburger. We saw a short video of the run in the 702-horsepower – that's at the wheels – coupe, but in the latest episode of Hot Rod Unlimited, Freiburger offers the long-form backstory of what it took to get to 202.6 mph exactly.

Continental Tire's proving grounds in Uvalde, Texas aren't Italy's Nardo Ring (where the 2013 Shelby GT500 did 202 mph), and there was much more involved than keeping steady on the straights and hanging on the banks.

City of Detroit paying $65,000 in lease payments for a 2004 Dodge Intrepid [w/video]

David Walker, LeaseTrader.com — Tue, 08 May 2012 20:32:58 GMT

City of Detroit paying $65,000 in lease payments for a 2004 Dodge Intrepid [w/video]

What can you even say to defend a financial decision like this one? According to a report by Detroit's WXYZ television news team, the City of Detroit has been leasing a 2004 Dodge Intrepid since September 2003, over six years after the original two-year-lease expired. Since the City did not return the car, it has continued to make the $608 per month lease payments, even as it racked up miles well beyond the 40,000 in the original agreement, for which it now must pay 15 cents per mile. According to the report, the City has spent over $65,000 for the car, which it doesn't even own.

But that's not all. WXYZ says that Detroit has 110 of these expired lease agreements on 2004 through 2007 models, and all of the cars are still on the road, wasting money with every tick of the odometer. And remember, the City still has to turn in all 110 cars, and pay for excess wear and tear. An estimate of the city's losses incurred by this leasing scheme is well over $4 million, according to the report. The cars are all being used by the Detroit Police Department, and though they're not quite full-zoot police cruisers like the 2002 Intrepid pictured above, they see action for undercover work. That means it's not just the taxpayers who are getting a bad deal here, but the cops themselves, as we're pretty sure none of them are particularly happy to be out risking their lives in an eight-year-old Dodge.

If we can attempt to find the faintest silver lining to this epic thunderstorm of mismanagement, it would be that perhaps in the publicity sure to follow, a few of Detroit's residents might better understand why and how leasing can cost more than financing a new car purchase. And at least the City of Detroit has been using these cars, rather than leaving them in a parking structure to sit and rot.

[News Source: AutoBlog via WXYZ ]

U.S. traffic deaths fall to lowest level in 62 years

David Walker, LeaseTrader.com — Mon, 07 May 2012 23:02:23 GMT

U.S. traffic deaths fall to lowest level in 62 years

The National Highway Traffic Safety Administration estimates that 32,310 people died last year in traffic accidents, the lowest number since 1949.

NHTSA obtained that number though a statistical projection, which shows that traffic fatalities dropped 1.7 percent compared to 2010 numbers. The announcement, released today, also shows Americans collectively drove 1.2 percent less in 2011 – dropping 35.7 billion vehicle miles traveled. (NHTSA expects the fatality rate to drop in 2011 as well, predicting 1.09 American deaths for every 100 million miles driven.)

U.S. traffic fatalities have dropped seven years in a row, with the 43,510 people dying in traffic accidents in 2005. NHTSA attributes a number of factors to the continued decrease in fatalities including increased seat belt use and more safety devices inside vehicles.

By region, NHTSA noted that accidents in New England dropped the most, 7.2 percent, while accidents in California and Hawaii increased the most, 3.3 percent, compared to the year before.

Source: autoblog via NHTSA

http://www-nrd.nhtsa.dot.gov/Pubs/811604.pdf

Legal loophole - GM still continues to avoid paying its federal taxes -

David Walker, LeaseTrader.com — Mon, 07 May 2012 18:21:46 GMT

Legal loophole - GM still continues to avoid paying its federal taxes -

The United States tax code will never be accused of being simple or easy to comprehend. With a tangle of exceptions and loopholes, individuals and corporations can work their way around paying their full income tax rate with ease.

According to The Detroit News, General Motors continues to avoid paying its federal income taxes since the company exited bankruptcy. In 2008, the Treasury Department ruled that the automaker could use $18 billion in losses from "old" GM to offset any profits. That means from a tax perspective, GM still hasn't earned enough money to overcome its losses. The automaker has raked in more than $13 billion since 2009.

Of course, GM isn't the only company dodging the federal income tax. Ford, for example, payed $268 million in worldwide income taxes last year, despite claiming an income of $7.8 billion. Likewise, since Chrysler Group, LLC. is a limited-liability partnership, it isn't required to pay federal income taxes. According to The Detroit News, very few companies pay the full 35 percent federal corporate income tax rate.

But that doesn't mean GM or other companies get off entirely. GM says it pays considerable state taxes, and the company reports that its global tax rate for 2012 may jump to 12 or 13 percent, up from an earlier estimate of 10 percent.

News Source: Autoblog via The Detroit News

2012 Camaro ZL1 runs quarter mile in 11.93 seconds - Joins the 11-second Club

David Walker, LeaseTrader.com — Mon, 07 May 2012 18:14:52 GMT

2012 Camaro ZL1 runs quarter mile in 11.93 seconds - Joins the 11-second Club

We've taken the bone-stock 2012 Chevrolet Camaro ZL1 down the quarter-mile drag strip at Bondurant in Arizona several times. The very first pass we made netted us a time slip in the mid-12-second range. That's an impressive performance for a car wearing road-legal radial tires with zero preparation and a driver familiarizing himself with the car.

We instantly knew this car was capable of more, and wondered how long it would take before we saw our first elapsed time in the 11s. Turns out the wait is over.

General Motors itself is the perpetrator of the blazing-fast quarter mile. Chevrolet engineers took two completely stock ZL1 coupes to Milan Dragway in Michigan – one automatic and one manual – and recorded a best pass of 11.93 seconds at 116 miles per hour. That was with the automatic; the row-your-own model managed 11.96 at 117 mph.

Those looking to drag their new Camaro ZL1 ought to be pleased with this news. But even if your race track aspirations lean more toward a curvy strip of asphalt, the baddest production Camaro ever made has you covered. Consider its Nürburgring lap time of seven minutes and 41 seconds as proof of its prowess.

Likely sensing that there would be plenty of Ford fans skeptics demanding proof of its quarter mile performance, Chevrolet has released a video showing off its drag strip exploits at Milan. Scroll down below for the video, along with the related press release... and join us in waiting for a response from Ford.

*UPDATE: We've placed a call to Chevrolet inquiring whether these times were recorded on stock tires, as the press release indicates, or on drag radials. We'll add another update as soon as we hear back.

*UPDATE TWO: The times quoted in the press release – 11.93 for the auto and 11.96 for the manual – were recorded on the stock Goodyear Eagle F1 Supercar G:2 tires. According to Chevrolet, the team knocked about a tenth of a second off those numbers with the Mickey Thompson drag tires.

Camaro ZL1 Joins the 11-second Club
2012-05-04

DETROIT – The 2012 Chevrolet Camaro ZL1 is officially in the "11-second" club, as engineers recently turned an 11.93-second/116-mph quarter-mile elapsed time run in a showroom-stock Camaro ZL1 automatic. A Camaro ZL1 manual ran an 11.96-second ET at 117 mph.

Only a few other production vehicles can run the quarter-mile as quickly as the ZL1. Fewer yet can also run 0-60 in 4 seconds, reach a top speed of 184 mph and lap the famous Nürburgring in 7:41.27 – all with the street-legal, factory-issued components and no time-consuming equipment adjustments at the racetrack.

"The ZL1 is great at everything and we're very proud of that," said Tony Roma, Camaro ZL1 program engineering manager. "You can take it to the drag strip and run 11-second quarter-miles all day long. You can also take it to a road course, where it's balanced, handles well, and does exactly what you want – including lapping Virginia International Raceway's Grand Course in under three minutes – and yet the ZL1 is sophisticated enough to use as a daily driver. It's a supercar you can drive every day."

For perspective, the Camaro ZL1 is so quick that some drivers who experiment with "drag radial" tires or full racing slicks may find themselves going too quick for most NHRA-sanctioned racetracks, where a five-point roll bar is required for vehicles running 11.49 or quicker. The 11.93-second ET in a stock ZL1 tested by the engineers wore the factory-issued Goodyear Eagle F1 Supercar G:2 tires developed specifically for it, putting the car only a scant 0.44-second away from that additional racing safety requirement.

Tuned for the drag strip

The original, special-order 1969 Camaro ZL1s are still revered for their legendary performance on the drag strip and Chevrolet was keenly aware that customers for the new, 21st century edition would undoubtedly test its straight-line mettle in quarter-mile increments.

The Camaro team re-engineered 30 percent of a Camaro 2SS to make the ZL1, including special modifications just for the drag strip.

"We know many of customers will take their ZL1 to the drag strip," said Gordon Rojewski, driveline development engineer – and who is also an experienced drag racer and owner of a turbocharged, 920-horsepower street car. "Some may just go once, to experience the full potential of the 580-horsepower LSA engine. Others may be more serious, going every other weekend with a set of slicks in the trunk. As such, we set out to make sure the ZL1 would perform for them – on the first pass and on the 100th."

For example, to withstand the heavy loads of repeated hard launches, the ZL1 features a stout 9.9-inch rear differential mounted in a robust cast iron center section. It also features a standard differential cooler that can lower the temperature by 100 degrees F for improved performance and longevity.

The ZL1 also features asymmetrical half-shafts: a 60mm hollow shaft on the right and a 33mm solid shaft on the left. The different torsional stiffness rates of the shafts work in conjunction with the limited-slip differential to minimize the chance of wheel hop at launch. Engineers modified the rear suspension, as well, to accommodate an 18-inch wheel, for owners who want to fit a set of drag-radials with taller sidewalls to improve their ETs.

Even the ZL1's exclusive Performance Traction Management (PTM) was tuned for the drag-strip. It integrates third-generation Magnetic Ride Control, launch control, traction control, electronic stability control and electric power steering response to enhance performance. Launch control (manual transmission only) automatically modulates engine torque for the best-possible acceleration without excessive wheel spin. When the driver pushes the throttle to the floor, the system holds a predetermined engine speed until the driver releases the clutch. Then, the system modulates engine torque 1,000 times per second to maximize the available traction.

Mode 5 of launch control is uniquely calibrated for drag strips that use VHT or similar traction-enhancing compounds on the starting line. In addition to validating the system for the stock tires, engineers also tested it with 18- and 20-inch racing-type drag radial tires in anticipation of the specialty tires many drivers will use at the track. Drag radials are very soft and provide nearly the traction of a full racing slick, allowing the car to launch at a higher rpm without wheel spin, which can translate into an even quicker ET.

Proven with 1,000 hard launch tests

To test the chassis and suspension components to ensure they were up to repeated hard-start launches typical at the drag strip, engineers subjected the ZL1 to the grueling "Woodward Avenue Schedule" at the GM Milford Proving Ground.

Named for the famous cruising route that cuts north through Detroit's suburbs and has been the venue for untold thousands of unofficial launch capability demonstrations since the 1960s, each test cycle is a hard-launch, standing-start drag race up to 100 mph. The ZL1 was subjected to 1,000 test cycles before its driveline was stamped "approved".

"The Woodward Avenue Schedule was a really brutal test, but it told us the Camaro ZL1 would live up to the way we knew our customers would drive it on the track," said Rojewski.

The Camaro ZL1 is on sale now with a suggested retail price of $54,995 – including a $900 destination charge. The 6L90 six-speed automatic transmission includes TapShift control and is a $1,185 option. The Camaro ZL1 convertible goes on sale this summer.

Founded in 1911 in Detroit, Chevrolet is now one of the world's largest car brands, doing business in more than 140 countries and selling more than 4 million cars and trucks a year. Chevrolet provides customers with fuel-efficient vehicles that feature spirited performance, expressive design, and high quality. More information on Chevrolet models can be found at www.chevrolet.com.