Obama Expects Michelle Flack After Wing Joint Dinner

AppId is over the quota
AppId is over the quota

This wouldn't be the first time President Obama has gotten in trouble with his wife Michelle for eating junk out on the campaign trail, but this time health conscious Michelle may be upset for an entirely different reason.

When the president stopped by Roscoe's House of Chicken and Waffles in West L.A. Monday night, he confided to manager David Daviston that he was going to catch flack for it back home. But he didn't expect healthy eater in chief Michelle Obama to be bummed because her husband ordered the distinctly unhealthy "No. 9, 'Country Boy,'" which included three wings and a waffle slathered in butter and syrup. Rather, he thought she'd be irritated that he stopped by the wing joint without her. Even the most diligent health nuts have their guilty pleasures and Roscoe's is one of Michelle's according to Daviston, who says the Obamas have dined with him before. [See photos of the Obamas behind the scenes.]

"Yeah, Obama said he knew he was going to be hearing from his wife and daughters when they found out he'd stopped by without them," restaurant manager David Daviston says.

Obama didn't just hoard the chicken for himself though, he also ordered for aides Valerie Jarrett, Jay Carney, David Plouffe, and Marvin Nicholson.

Daviston didn't let Obama leave without a peace offering. The manager sent Obama on his way with a case of blueberry pomegranate Pit Bull energy drinks knowing that chicken and waffles wouldn't last on a trip back to the White House.

"Obama took the drinks for his family, I don't know who'll end up with 'em maybe Secret Service if they need the extra boost," Daviston says. [See political cartoons about President Obama.]

Obama isn't the first commander and chief to stop by Roscoe's, but Daviston says his visit was one of the most relaxed.

"Usually, when the president comes, his Secret Service is really bossy and you don't get to shake the president's hand or anything. This time, Obama just walked around the restaurant, chatting with people. It was a nice visit." [See photos of Michelle Obama.]

One young guest Obama stopped to shake hands with was so moved by the experience that he swore he'd never wash his hand again.

Debt Financing

Health Management

Read More

Consumer Confidence Drops in October

AppId is over the quota
AppId is over the quota

NEW YORK (Reuters) — U.S. consumer confidence unexpectedly dropped in October to its lowest level in two-and-a-half years, while housing prices were unchanged at anemic levels in August, data showed Tuesday.

Brighter-than-expected manufacturing and jobs data in recent weeks had tempered fears the economy could lapse back into recession, with most expecting a slow pace of growth that should avoid contraction, but the surprising drop in consumer confidence suggests the improvement in third quarter economic growth may not be sustained.

The S&P/Case Shiller composite index of house prices in 20 metropolitan areas was flat compared with the month before on a seasonally adjusted basis, frustrating expectations for a gain of 0.1 percent.

Separately, the Conference Board said its index of consumer attitudes fell to its lowest level since March 2009 as consumers fretted about job and income prospects.

Analysts said the weaker-than-expected home price data was disappointing but not altogether shocking as the market struggles to get out from under a glut of unsold homes and ongoing foreclosures that are holding prices down.

[See a collection of political cartoons on the economy.]

While prices are expected to remain depressed for some time, any further declines are expected to be modest.

"We were looking at sort of a stabilizing picture at these low levels, and we still see that, but we are still at very stressed levels," said Sean Incremona, economist at 4Cast Ltd in New York.

On a seasonally adjusted basis, prices fell in 14 of 20 cities, with Atlanta and Las Vegas among the biggest losers, according to the S&P/Case-Shiller data.

The annual rate of decline slowed, however, with prices in the 20 cities down 3.8 percent compared with a year-over-year decline of 4.1 percent the month before. That still was a bigger drop than the expected 3.5 percent decline in August.

"The good news is continued improvement in the annual rates of change in home prices," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement.

"In spring and summer's seasonally strong period for housing demand, we cautioned that monthly increases in prices had to be paired with improvement in annual rates before anyone could declare that the market might be stabilizing."

The struggling housing market continues to be one of the biggest hurdles for the economic recovery as attempts to bolster the sector have had limited success.

[See a slide show of 6 ways to fix the housing market.]

In the latest efforts, the Obama administration said Monday it would expand a mortgage refinancing program in a step that could help up to 1 million borrowers.

A separate home price index from the Federal Housing Finance Agency showed prices declined 0.1 percent in August from July.

The index is calculated using purchase prices of houses financed with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac .

CONSUMERS ON THE ROPES

In financial markets, the day's data was eclipsed by the cancellation of a meeting of euro zone finance ministers that added to doubts about the region's efforts to tackle its debt crisis.

Analysts are hoping to get confirmation of a growing but sluggish U.S. economy from U.S. gross domestic product data for the third quarter later in the week. The advance reading is expected to show the economy grew at an annual rate of 2.5 percent after a weak first half of the year, according to a Reuters poll of economists.

October's drop in consumer confidence, however, suggested any improvement in third-quarter economic growth may not be sustained.

The Conference Board's index of consumer attitudes fell to 39.8 from a upwardly revised 46.4 the month before. Analysts had expected a reading of 46.0.

The expectations gauge was also at its lowest level since March 2009, just before the economy officially crawled out of recession.

Debt Financing

Health Management

Read More

Poll: GOP Voters Still Undecided

AppId is over the quota
AppId is over the quota
Home > Politics & Policy > Poll: GOP Voters Still Undecided

October 25, 2011 Print

WASHINGTON (Reuters) — The race for the 2012 Republican U.S. presidential nomination remains wide open, with the vast majority of the party's voters undecided about who they will support, a poll released Tuesday showed.

Businessman Herman Cain continued to lead the field with the backing of 25 percent of Republican voters questioned in the New York Times/CBS News poll. Former Massachusetts Governor Mitt Romney was in second place with 21 percent.

[See a collection of political cartoons on the 2012 GOP hopefuls.]

But about four of five of the Republican voters questioned in the survey said it is too early to decide who they will support for the nomination, with only 19 percent saying their minds are made up.

Former front-runner Rick Perry fell to fifth place in the poll, at just 6 percent support. The Texas governor had led a similar poll in mid-September at 23 percent.

Perry now also trails former House of Representatives Speaker Newt Gingrich at 10 percent and U.S. Representative Ron Paul of Texas at 8 percent.

U.S. Representative Michele Bachmann of Minnesota had 2 percent, followed by former Utah Governor Jon Huntsman and former Senator Rick Santorum at 1 percent each.

The Republican nominee will face Democratic President Barack Obama in the November 2012 election.

[Check out our editorial cartoons on President Obama.]

The poll involved 1,475 registered voters, including 455 who said they planned to vote in a Republican primary. The poll results have a margin of error of 4 percentage points.

Tags:2012 presidential election, republican party, Rick Perry, Barack Obama, Herman Cain

Debt Financing

Health Management

Read More

Consumer Confidence Drop Could Spell Trouble for Incumbents

AppId is over the quota
AppId is over the quota

The recession is over, jobs are slowly coming back, and third-quarter GDP is expected to climb. Yet one indicator suggests that consumer confidence still sank sharply and unexpectedly this month. While the impetus is unclear, the result could be not only more economic pain, but political troubles for incumbents in Washington.

According to the Conference Board, a nonprofit business membership and research association, consumer confidence tumbled 6.6 points from September to October, to 39.8 (on a 100-point scale, with 100 equaling 1985). This reading defied expectations; economists had predicted the October index would remain flat. However, the dip in consumer confidence is particularly troubling because it is at its lowest point since March 2009, when the economy was still in recession. For President Obama, and perhaps any incumbent, this latest figure should be particularly distressing. It shows that, even with an economy showing signs of renewed vigor, the American public is growing pessimistic, which can easily translate into anti-incumbent fervor come Election Day.

[See how the Obama administration is trying to help homeowners.]

The Conference Board's consumer confidence figure is now slightly lower than it was in August, when lawmakers wrangled over raising the debt ceiling, resulting in ratings agency Standard & Poor's downgrading the U.S. credit rating. That month, the index dropped from 59.2 to 44.5. This month, however, no event appears to have precipitated worsening sentiments. Rather, consumers appear to have lost their optimism; while the measure of future expectations rose by 1.6 points in September, it fell by 6.4 points this month.

At the core, the apparent decrease in consumer confidence shows that sustained high unemployment may have finally caused Americans to lose hope, says Ken Goldstein, economist at the Conference Board. "It's not as if job growth [and] wage growth have dropped significantly. The change is really about consumers...giving up some hope that things are going to get better," he says.

Contributing to that malaise is a pervasive sense that government is unwilling or unable to provide any assistance. "The sideshow in July and August about getting the debt ceiling down shook people's confidence that people in Washington even know what they're doing," says John Cannally, economic strategist at LPL Financial, a Boston-based financial services firm. The president's big push for his American Jobs Act, and its subsequent drawn-out failure, as Congress appears ready to reject it piece by piece, could easily worsen this sentiment.

That spells trouble for incumbents, particularly the president. Some studies have shown a positive correlation between consumer confidence and presidential approval ratings, as well as with other measures of political sentiment, like whether the country is moving in the right direction. Discontent with Washington and the economy drove the 2008 and 2010 "wave" elections and could easily do so again.

The president's latest executive actions to boost the economy—revamping HARP, a refinancing program for troubled homeowners, and a push for helping student loan borrowers to be announced tomorrow—appear to be as much about proving that the White House cares about the economy as boosting growth itself. Reinstating hope in the future, particularly as the election gets closer, could go a long way toward boosting consumer confidence and thus, perhaps, confidence in the president himself.

[See how the recession is affecting young adults in the U.S.]

Consumer confidence is, by nature, a complicated indicator—an attempt to objectively measure a subjective condition. In fact, there is a fundamental disconnect between objective measures of the economy and public perception, says Canally. "All of [the leading consumer confidence indicators]—Rasmussen, [University of] Michigan, Conference Board—are all at 30-year lows," despite an economy that is showing a few signs of strength again, he says, and according to his analysis, "The gap between what consumers are feeling, seeing, and hearing has never been wider."

Debt Financing

Health Management

Read More

VW recalls 160,000 autos for fuel leaks

AppId is over the quota
AppId is over the quota

Volkswagen is recalling 168,275 Audis, Golfs and Jettas for problems with the fuel line that could lead to leakage and perhaps ignite a fire, according to the National Highway Traffic Safety Administration Thursday.

In documents filed with NHTSA, Volkswagen said the fuel line in the recalled vehicles could develop cracks and leak under certain conditions. Because the leaks could happen near an ignition source, there's the potential for a fire, VW said.

It said the models affected include:

AUDI / A3 2010-2012 VOLKSWAGEN / GOLF 2010-2012 VOLKSWAGEN / JETTA 2009-2012 VOLKSWAGEN / JETTA SPORTWAGEN 2009-2012

The safety recall is expected to begin in November. VW said it will replace the injector line with an improved line.

Debt Financing

Health Management

Read More

Volvo system could curb road kill

AppId is over the quota
AppId is over the quota
DETROIT — Volvo's City Safety can bring a car to a complete halt to avoid an accident. A variation may be able to spot animals on the road and avoid collisions.

It’s an unpleasant reality on the highway, but the folks at Volvo think they may have a way to cut back on the seemingly ever-present road kill using some of the same high-tech systems that the maker is using to curb inadvertent pedestrian collisions on city streets.

The new animal-friendly system is one way the now Chinese-owned Volvo hopes to build on its traditional reputation as an automotive safety leader.

Wild Wall St. Has the market volatility got you nervous? These cartoons may give you a little comic relief.

Cyber-thieves create fake Kelley Blue Book site US says Reebok toning shoes don't really Can you live on $9 an hour? Play the game

Volvo has already won kudos for its latest active safety technologies, such as City Safety, which uses an infrared laser sensor attached to the windshield to monitor traffic in front of a vehicle. At speeds ranging from 2 to 19 mph – typical on crowded urban and in rush hour traffic – the system will detect a potential collision. If the driver doesn’t react by the time the two cars are 18 feet apart, it will automatically jam on the brakes.

Another version of the system can detect pedestrians and can take steps to avoid an impact. Such collisions make up a significant share of the roughly 35,000 Americans killed in roadway accidents each year.

Volvo engineers then began wondering about animals, who are killed in substantially larger numbers as the result of vehicle impacts each year. And groups like PETA, People for the Ethical Treatment of Animals, aren’t the only ones bothered by that toll.

According to a study by State Farm, there were 1.09 million deer hit by motor vehicles in the U.S. during the 12 month period ending June 30, those incidents causing $3.5 billion in damage. And such collisions routinely result in a number of deaths and injuries. Such incidents can be even more perilous in a place like Sweden, Volvo’s home, when the collision involves a moose.

The maker is looking to introduce a modified version of City Safety that might use cameras or other systems to expand its capabilities, and the new concept could show up in a couple years on the maker’s SUV models, such as the XC90, notes a Bloomberg report.

How well it will work remains to be seen. It’s hard to predict animal behavior, especially when they might suddenly emerge from hiding in a stand of trees along the roadside. But a recent study of insurance claims by the Highway Loss Data Institute found that Volvo’s City Safe system, in particular, reduced the number of vehicle damage claims resulting from car-to-car collisions by 27%, while insurance claims related to bodily injuries dropped by 51% on vehicles using the technology.

“This is our first real-world look at an advanced crash avoidance technology, and the findings are encouraging,” said Adrian Lund, president of the Highway Loss Data Institute.

Various forms of camera, radar and/or laser collision avoidance systems have been making their way to market and such insurance industry kudos – especially if paired with rate reductions – could encourage even more.

General Motors just announced a new low-cost system using a single camera.

But Volvo appears to be the first maker specifically aiming to use such technology to be kind to animals.

More from The Detroit Bureau:

New service lets enthusiasts drive the vehicles of their dreams
Toyota may be mired in a long-term slump
GM delaying Volt’s 2nd shift — but maker claims sales still on target

Copyright 2011 The Detroit Bureau. All rights reserved.

Debt Financing

Health Management

Read More

Volkswagen To Be World's No.1 Automaker In 2011

AppId is over the quota
AppId is over the quota
By AutoObserver Staff October 24, 2011

Forget the Volkswagen Group’s much-discussed intention to become the world’s the No. 1 global automaker by 2018 – the German automaker is pacing to achieve the goal this year, according to projections from several global analysts. Volkswagen’s ascendancy to the top spot is as much because of Toyota Motor Corp.’s crippled manufacturing base for several months in 2011 and the German automaker’s hold on the crown is likely to be temporary, but Volkswagen’s global sales nonetheless are pacing to surpass both Toyota and General Motors Co. by the end of 2011.

Projections this week from IHS Automotive, J.D. Power and Associates and PwC Autofacts were used by the Bloomberg news service to calculate that Volkswagen should sell around 8 to 8.1 million new vehicles this year, GM about 7.5 million and Toyota just less than 7.3 million. The figures represent a sales increase of about 13 percent for VW, an 8-percent sales gain for GM and a 9-percent decline for Toyota, which has been struggling to recover from the March 11 earthquake and tsunami in Japan that for months severely reduced auto production for several Japanese automakers. Much of VW’s recent global sales gains have come from China and other emerging markets, but the German automaker also has been performing better than its rivals in most mature world markets as well.

AutoObserver Staff:  The best in the business.

Technology

Education Information

Read More

Chrysler to stop making Dodge Grand Caravan

AppId is over the quota
AppId is over the quota
Bill Pugliano / Getty Images file

Chrysler plans to stop production of the Dodge Grand Caravan, according to Automotive News.

The automaker will no longer make the minivan for the 2013 model year. It also plans to do away with the Dodge Avenger, the report said.

Chrysler only plans to offer one minivan in the future — the Chrysler Town & Country. The plan is designed “to end duplication in dealer showrooms and give each of its brands a strong and distinctive lineup,” according to the report.

Chrysler plans to debut a new crossover vehicle in 2013 that will replace both the Caravan and the Avenger, Chrysler’s CEO Sergio Marchionne told Automotive News.

Debt Financing

Health Management

Read More

Will GM's Diesel Cruze Usher In New Wave?

AppId is over the quota
AppId is over the quota
By Danny King October 24, 2011

General Motors' plans to offer a diesel version of its popular Chevrolet Cruze compact will give diesel advocates a reason to forecast vehicle counts not seen in the U.S. in at least two decades. But it also raises questions about the financial viability of offering a diesel engine in a budget-priced car, and the potential for U.S. customers to embrace a technology that previously had mixed results. GM said in late July that it would start offering a diesel Cruze in 2013. The automaker did not provide details on price, engine specifications or fuel economy, but the model is expected to at least match the EPA-rated 42 miles per gallon highway fuel economy the 1.4-liter Cruze Eco gets. GM hasn't sold diesel-powered cars in the United States since it offered the powertrain on some of its Chevrolet, Oldsmobile, Cadillac and Buick sedans in the 1980s.

GM, which started selling its Chevrolet Volt extended-range plug-in hybrid in the U.S. late last year, said last fall that it may start developing diesel-powered cars, and was considering a "wide variety of offerings," GM spokesman Dan Flores said at the time. GM representatives declined to comment on the automaker's rational for developing the diesel Cruze, and would only say in last month's statement that it would provide additional details about the model "at a later date." GM, which offers a diesel option on heavy duty versions of its Chevrolet Silverado and GMC Sierra pickup trucks in the U.S., has also been including smaller diesel-versions of its Ecotec four-cylinder engine for its Europe-based Opel badge, and includes an option of a twin-turbo CDTi Ecotec engine on its Opel Insignia overseas.

Joining Germans
Still, the company's decision to enter into a U.S. diesel-passenger car market that's currently exclusively the domain of German automakers such as Volkswagen and Mercedes-Benz may help push diesel vehicle counts to levels not seen domestically since the 1980s, some analysts say. North American passenger-car diesel sales will jump from the approximately 100,000-unit level now to as many as 700,000 vehicles by 2017 or 2108, according to Kaushik Madhavan, global program manager for the research firm Frost & Sullivan's automotive and transportation practice, and those numbers didn't factor in the Cruze decision. Madhavan called GM's decision a "both surprising and a positive move."

The decision also is good news for those people who have touted diesel as a fuel that could cut foreign-oil dependency by providing superior fuel economy to gas-powered cars while being flexible enough to run on fuels such as domestically-produced biodiesel, natural gas and, in some cases, synthetic diesel. "I think they have huge potential in that space," said Allen Schaeffer, executive director of nonprofit diesel education and advocacy group Diesel Technology Forum, in an interview with AutoObserver. Since introducing so-called clean-diesel models to the U.S. market about five years ago, VW and Mercedes-Benz "have all demonstrated convincingly the product success with the new generation clean diesels, and they have plowed a lot of ground in raising general awareness of the new generation of diesel."

GM's decision to mass-produce a Cruze diesel could be a further boost for a U.S. diesel-car market that still represents about 1 percent of total domestic vehicle sales. Volkswagen said earlier this month that diesels accounted for about a quarter of its more than 25,000 vehicles sold in the U.S. in August. Audi sold more than 850 diesel A3s and Q7s. Mercedes-Benz sold 851 diesel vehicles in August while year-to-date diesel sales doubled from a year earlier. BMW didn't break out diesel sales. All told, the German automakers sold almost 8,000 diesel passenger cars and SUVs, or less than 1 percent of the 1.07 million light-duty vehicles sold in the U.S. in August.

Price Sensitive
Granted, for a car whose current base sticker price is $16,525, GM faces the challenge of bringing down the cost of diesel engines enough to still make money on the Cruze, even by using the engine it employs in its European diesel Cruze (left). Frost & Sullivan's Madhavan estimated that diesel engines tend to cost about $4,000 more than their gas-powered counterparts, and relatively low production volumes make it difficult to close that gap. Further complicating the issue is the memory of potential U.S. car buyers who can recall the relatively slow, smoky and clattery diesels GM put out during the Reagan era. All this would be for a model that in August surpassed 20,000 units sold for the fifth straight month and pushed GM's August vehicle sales up 18 percent from a year earlier. "The European diesel is very good and would not hurt the Cruz's reputation and in fact would probably be positive," said David Cole, chairman emeritus at Center for Automotive Research, in an interview with AutoObserver. "The challenge is that the base diesel engine is roughly twice the cost of the gasoline engine."

Some say the higher price is worth it, though. Carnegie Mellon University’s Tepper School of Business put out a January report funded by Robert Bosch saying car owners who pay extra for diesel variants get paid back within 18 months because of the combination of better fuel economy, lower maintenance costs and a longer average vehicle lifetime. Europeans appear to have taken that information to heart, as diesels account for about half of the passenger cars sold, up from about 20 percent a few years ago.

New Breed
Indeed, the Germans, whose U.S. diesel models include the VW Golf, Jetta and Touareg and Mercedes-Benz's E350, ML350 and R350 "Bluetec" variants, appear to be gradually overcoming the old "slow and smokey" perception in the U.S., albeit at a higher price point than the Cruze. Audi, which sells both four-cylinder gas and diesel engines of its A3 hatchback, originally bet that about 20 percent U.S. customers interested in the A3 may be willing to pay the extra $3,000 for the diesel version that gets about 10 miles per gallon more than the gas version but has about 60 fewer horsepower. The German automaker bet right as the A3 TDI, which beat out hybrids such as the Toyota Prius and Honda Insight for the 2010 Green Car of the Year by Green Car Journal magazine at the Los Angeles International Auto Show in late 2009, outsells its gas-powered counterpart by about a two-to-one margin.

As a result, Audi will likely start selling at least two new clean-diesel models in the U.S. during the next couple years because of success with its turbodiesel-powered A3 and Q7 cars, Audi of America's Brad Stertz said in a Los Angeles panel discussion last October. Even the Japanese, which have steered clear of diesels in favor of hybrid and electric-drive vehicles as a way to boost their fleets' fuel economy, may start jumping into the diesel fray. Mazda, which will debut its more fuel-efficient Sky direct-injection gasoline engine in the Mazda3 by next year, will offer a diesel version about 18 months after the gas version is launched.

What may also push diesel is the 54.5 miles per gallon corporate average fuel economy (CAFE) standard U.S. regulators and global automakers agreed to enact for 2025. That would be equal to an EPA "window sticker" fuel economy rating of about 40 mpg, or about 78 percent higher than the 22.5 average mpg achieved by automakers for the 2010 model year. "By bringing the Cruze diesel option, GM's confident that clean diesel cars can compete with hybrids and other technology choices," said Diesel Technology Forum's Schaeffer. "With the upcoming fuel economy requirements, this announcement may be the first of many from OEMs who see the inherent efficiencies in the diesel as being an important tool in the toolbox of technology solutions, fortunately one that consumers are taking to quite nicely."

Danny King:  is a frequent contributor to AutoObserver.com.

Technology

Education Information

Read More

BMW aims to maintain dominance with 3-Series

AppId is over the quota
AppId is over the quota
ka.plewka

The new BMW 3 Series sedan gains a few inches in length while losing weight on average.

By Paul A. Eisenstein

In an era of product proliferation, few vehicles better define a brand than the BMW 3-Series. It’s not only the best-selling line in the compact luxury segment, it’s also the top seller in the Bavarian maker’s product portfolio.

So there’s good reason for all the attention being paid to the all-new 2012 3-Series that's making its formal debut this month.

With new products also on tap from other key competitors -- notably including the Mercedes-Benz C-Class -- this could be one of the most important launches BMW has had in a number of years.

The sixth-generation model is the direct descendant of the 2002, the car that put BMW on the map and helped justify its corporate tagline as “the ultimate driving machine.”

“We are confident that the new BMW 3 Series will build on the tremendous success of its predecessors,” proclaimed BMW Chairman Norbert Reithofer during a premiere in Munich where he described the line as “the world’s most successful premium vehicle.”

The outgoing model rang up 60,000 sales in the U.S. alone through the end of September. By comparison, the second most-popular model in the compact luxury segment, the Mercedes-Benz C-Class, has generated 39,000 sales.

But Mercedes is bringing a heavily updated version of its own compact to market for 2012, with a sportier look and a clear goal of delivering a more performance-oriented, BMW-like ride.

And it’s not alone. The compact luxury segment is becoming increasingly crowded with new or recent offerings from an array of automakers from Europe, the U.S., Japan and South Korea.

Complicating matters, the market appears to be shifting, according to analyst Joe Phillippi of AutoTrends Consulting.

Even among sporty buyers there’s more interest in mileage. Technology -- especially onboard infotainment systems -- is becoming a defining factor as well.

There BMW positioned itself as an early trendsetter, with the launch of the groundbreaking iDrive system. After taking some initial lumps for its quirky user interface, iDrive has become both easier to use and much more capable, with still more features being added on the new 3-Series.

On the safety side, the new 3-Series picks up a variety of technologies that have migrated down from some of the marque’s higher-end products, including Heads-Up Display and Blind Spot Detection, as well as Lane Departure Warning and Collision Avoidance. 

But there’s plenty of new technology under the hood, as well. For one thing, the maker will launch the ActiveHybrid 3, an all-new gas-electric model, late in the 2012 model-year. But even more conventional versions of the new 3-Series will introduce features like Start/Stop -- which automatically shuts the engine down rather than idling at a light or in a fast-food line then restarts the engine when the driver’s foot lifts off the brake.

Meanwhile, the new 3-Series will bring to the U.S. market the first BMW four-cylinder engine in years. Despite migrating from the old car’s 3.0-liter inline-six to a new 2.0-liter inline-four, the new 328i will make 240 horsepower and 260 lb-ft of torque.

And although it is expected to deliver better mileage -- final numbers haven’t been released -- it will still launch from 0 to 60 in just 5.7 seconds and hit an electronically limited top speed of 130 mph.

In keeping with another market trend, the new 3-Series will be larger and more luxurious. The 2012 3-Series body grows about 3.7 inches in length, with the wheelbase stretched just under 2 inches. The front track is 1.5 inches wider, the rear 1.85 inches.

BMW claims that will be particularly obvious to rear-seat passengers, although the trunk is also more capacious.

Notably, BMW engineers were able to trim about 88 pounds off the weight of the typical new 3-Series model, which helped maintain performance while delivering that better mileage.

For those putting a premium on performance, the 2012 BMW 335i will maintain its current single-turbo 3.0-liter inline-six, although it will also gain some efficiencies from the Start/Stop system, as well as a new 8-speed automatic and a system call Brake Energy Regeneration, which is a very mild hybrid system for recapturing some energy normally lost during braking to recharge the car’s battery.

Meanwhile, a replacement for the outgoing M3 -- the true definition of BMW’s performance DNA -- is still in the works.

With a more sporty design, better mileage and improved performance, analysts like Phillippi are betting that the new 3-Series will maintain, if not gain, momentum. It won’t hurt that Mercedes’ U.S. sales subsidiary has been knocked off-kilter by the unexpected departure this week of CEO Ernst Lieb. The well-respected Daimler AG veteran had helped move the Mercedes marque steadily more into contention with BMW and Lexus for the lead in the U.S. luxury market. It’s not clear when Mercedes will name a full-time successor but the timing, as the next-gen C-Class debuts, is clearly a setback.

Even if Mercedes’ drive falters, BMW still has to keep a wary eye out for the likes of Cadillac, Audi, Lexus, Infiniti and even Hyundai, the Korean marque now intent on becoming a luxury player.

{"contentId":"8399621","totalVotes":"11147"} Who makes the best luxury cars?

But the 3-Series has always been a tough act to follow, and the new model wasn’t designed to yield any ground.

Debt Financing

Health Management

Read More

Hyundai leads in corporate loyalty — study

AppId is over the quota
AppId is over the quota
DETROIT — Long ignored by most American auto buyers, and slighted by others due to quality problems, Hyundai is now tops when it comes to corporate loyalty, according to a new study.

But Ford Motor Co. is also making gains in the marketplace, according to the report by Experian Automotive, a data service that tracks vehicle registration data as well as consumer attitudes. The Detroit maker captured the lead in six of the spots in the top 10 product segments.

Wild Wall St. Has the market volatility got you nervous? These cartoons may give you a little comic relief.

Cyber-thieves create fake Kelley Blue Book site US says Reebok toning shoes don't really Can you live on $9 an hour? Play the game

Hyundai had a loyalty rate of 49.6 percent, according to the Experian study, edging out General Motors and Ford – as well as major Japanese makers like Toyota. It was the first time the Korean carmaker led the list, marking a significant turnaround for a brand that was once the butt of jokes, not a marque that won repeat business.

Hyundai’s loyalty – translated as the repurchase rate of its owners – has also helped drive the brand’s market share to record levels, 9.2 percent during the second quarter of this year, up from 7.9 percent a year earlier. The maker’s performance in the study also reflected well on its sibling brand, Kia actually outscoring the Hyundai brand with a 47.9 percent loyalty rate.

General Motors, which came in second in the Experian study, had the second-highest loyalty rate, at 48.1 percent, and also saw its market share grow by 0.5 points – to 19.6 percent during the second quarter of this year.

Ford was third in the latest Experian loyalty study, at 47.6 percent. But it also took six of the Top 10 sports in terms of loyalty to specific products. That included the Ford Fiesta, third at 63 percent, and the Fusion, fourth at 61 percent.

The product with the highest individual loyalty was the Kia Forte, according to Experian, at 68 percent. The maker’s quirky crossover, the Soul, was fifth at 59 percent, with its Forte Koup ranking eighth at 57 percent.

Makers have become increasingly focused on brand loyalty in recent years. Repeat business not only helps prop up sales and market share but also helps hold down marketing costs. Experts say it can cost as much as 11 times more to “conquest” a buyer from a competing brand as opposed to winning back one of your loyal owners.

More from The Detroit Bureau:

State recognizes GM plants for environmental stewardship
GM developing new EN-V
Major automakers agree on new quick-charge EV standard

Copyright 2011 The Detroit Bureau. All rights reserved.

Debt Financing

Health Management

Read More

Will Ford restore dividend payments?

AppId is over the quota
AppId is over the quota
DETROIT — With a key debt rating agency giving it the thumbs-up – and further hikes anticipated – Ford Motor Co. is signaling it may soon restore its dividend, a move that could, in turn, help revive the maker’s flagging stock price.

With Ford now indicating its new contract with the United Auto Workers Union will actually lower its labor costs, Fitch Ratings bumped the carmaker’s credit rating up a notch to “BB+” on Thursday, S&P taking the same step on Friday while also removing Ford from its CreditWatch. Those upgrades fall just one step short of reaching the investment grade targeted by Ford CEO Alan Mulally.

In the past, it had been expected that Ford would wait until getting that investment grade status before restoring the dividend but, during a meeting with investors, Chief Financial Officer Lewis Booth indicated the additional upgrade, “is not an absolute necessity to pay dividends.”

Wild Wall St. Has the market volatility got you nervous? These cartoons may give you a little comic relief.

Cyber-thieves create fake Kelley Blue Book site US says Reebok toning shoes don't really Can you live on $9 an hour? Play the game

If anything, analysts say such a move would pay big dividends for Ford. The quarterly payout is a requirement in some investment communities, such as insurance companies and government pension plans, according to Joe Phillippi, chief analyst with AutoTrends Consulting.

“Many can’t own stocks that don’t pay at least some returns,” he noted, adding that, “This would open up a whole new class of investors…and that could drive up the stock price.”

On mid Friday morning, Ford was trading at just over $12 a share, its price up by more than a half dollar since the news of the Fitch upgrade was announced. But while it has bounced back from its 52-week low of just $9.32 a share, Ford is still trading well below the $18.97 peak it hit over the last year.

Whether it can maintain its current momentum remains to be seen. The maker is expected to deliver a slight year-over-year decline in third-quarter revenues, though perhaps not as serious as originally anticipated, with Itay Michaeli, of Citi Investment Research, this week upping his estimate of Ford’s third-quarter earnings from 44 cents to 46 cents a share, reaffirming his “Buy” recommendation.

A consensus of analysts gathered by DailyFinance.com, meanwhile, projects a solid turn upwards during the fourth quarter.

Holding down labor costs clearly will help going forward. Earlier this week, the United Auto Workers Union announced its members had ratified the new 4-year settlement with Ford. The contract contains a few costly provisions, including a $6,000 signing bonus and annual payouts to offset inflation. Those will add up to about $360 million in new costs, according to Mark Fields, Ford’s President of the Americas.

But there were concessions, as well, the union curbing its legal assistance program and agreeing to various steps meant to enhance productivity. And while second-tier workers will wind up making another $3 an hour by the end of the contract the UAW dropped demands to combine all workers in a single, higher tier. Most newly hired hourly workers will now make the lower wages.

“The work practice changes and increased uses of entry-level employees provide the opportunity for substantial cost savings and profit improvement as demand increases,” Fields said during the meeting with investors, the company predicting that an initial 1% hike in labor costs will actually turn into a reduction in costs by the end of the agreement.

That was enough to convince the maker to expand its production in the U.S. after years of transferring operations abroad or shifting to lower-cost U.S. suppliers. In all, Ford committed to an additional $6.4 billion in new investments under the contract, while adding 5,750 UAW jobs. Combined with prior promises, Ford now intends to boost U.S. employment by 12,000.

Fields today will be announcing a $1 billion investment – part of the new contract equation — at a Ford plant in Kansas City. It has been chosen to build the Transit van currently produced in Europe. The move will include the addition of a new stamping plant.

With the maker’s sales outpacing the overall rebound in the U.S. new vehicle market, and earnings expected to keep pace, most observers anticipate further credit rating upgrades by not only Fitch but S&P and Moody’s, the two giants in the field.

Whether Ford will wait or the agencies will act first, “I anticipate the dividend will be restored within the next quarter,” predicted analyst Phillippi.

More from The Detroit Bureau:

Lieb’s ouster underscores ethics crackdown at Daimler
Mercedes adding new model at U.S. plant
Opinion: Volt signals a new attitude at GM

Copyright 2011 The Detroit Bureau. All rights reserved.

Debt Financing

Health Management

Read More

Racers pay tribute to Marco Simoncelli

AppId is over the quota
AppId is over the quota

The world of motorsport is in mourning over the passing of yet another racer. MotoGP star Marco Simoncelli died after a horrific crash during last weekend's race in Malaysia.

The 24-year-old Italian rider was involved in a collision with Valentino Rossi and Colin Edwards. He lost control of his bike on turn 11 and lost his helmet in the ensuing crash. The race was immediately stopped and Simoncelli was rushed to the local medical centre, where he died from his injuries.

His death comes just one week after the tragic loss of British Indycar driver Dan Wheldon, who crashed at the season finale in Las Vegas.

Tributes poured in via Twitter for the affable young Italian rider, one of the sport's rising stars.

Valentino Rossi, MotoGP rider
"Sic for me was like a youngest brother. so strong on track and so sweet in the normal life. I will miss him a lot."
@ValeYellow46

Cal Crutchlow, British MotoGP rider
"RIP Marco Simoncelli ! A great rider and all round nice guy. My thoughts are with all his family & friends. I will never forget today."
@calcrutchlow

Jorge Lorenzo, MotoGP rider
"Only you will be missed, rest in peace Marco" (translated)
@lorenzo99

Andrea Dovizioso, MotoGP rider
"RIP Marco. My thoughts and my prayers are with Marco's family and friends"
@AndreaDovizioso

Alvaro Bautista, MotoGP rider
"SIC was a great driver and we will all miss him. Much encouragement to family and friends #58
@19Bautista

Nicky Hayden, MotoGP rider
"Sometimes life just don't make sense... RIP #58 you were a star on & off track we all going to miss you..."
@NickyHayden69

MotoGP, official world championship
"MotoGP extends its deepest condolences to Marco's family, friends and team at this tragic loss."
@MotoGP

LCR Honda, MotoGP team
"A great tragedy hits MotoGP world today, we have lost a friend Marco Simoncelli. We cry a friend."
@LCRHondaMotoGP

Lewis Hamilton, F1 driver
"RIP Marco Simoncelli. My thoughts are with his family, friends and team at this extremely sad time. Another tragic loss at such an early age."
@LewisHamilton

Jenson Button, F1 driver
"R.I.P Marco... Such an exciting talent lost. My thoughts are with his family, friends and everyone involved in MotoGP."
@JensonButton

Mark Webber, F1 driver
"R.I.P Marco A special talent that will be missed... Thinking of your loved ones, and all the motogp paddock. mark."
@AussieGrit

Scuderia Ferrari
"Ferrari offers condolences for the death of Simoncelli"
@InsideFerrari

Career Advisor

New Automobile

Read More

Saab Stay-Alive Options Running Out

AppId is over the quota
AppId is over the quota
By AutoObserver Staff October 20, 2011

Reports from Europe today indicate that an administrator assigned to oversee the reorganization of Swedish Automobile NV’s Saab automaking division planned to make a court application to terminate the reorganization, opening the door for outright bankruptcy at Saab. The automaker has for months been attempting to stave off insolvency and lately had pinned its hopes on bridge loans from Chinese auto-related companies, the promise of which convinced Swedish courts to allow Saab’s current reorganization. The Wall Street Journal reported on Thursday that Saab not only plans to continue with its reorganization efforts but also will ask for the plan’s administrator to be replaced.

Saab said it now appears the bulk of the promised loans from China will not come in a timely fashion and on Thursday, the company announced that U.S.-based private-equity firm North Street Capital, pledged a $70-million loan to Saab in exchange for stock in the company and to be securitized by first and second liens on certain Saab assets. North Street Capital, owned by auto enthusiast Albert Mascioli, purchased Swedish Automobile’s Spyker supercar operations last month in a deal for about $44 million.

AutoObserver Staff:  The best in the business.

Technology

Education Information

Read More

Harley recalling more than 308,000 motorcycles

AppId is over the quota
AppId is over the quota

Harley-Davidson is recalling about 308,000 motorcycles to fix a switch problem that can cause failure of the brake lights and possibly even the rear brakes themselves.

The company says in government documents that brake light switches can be exposed to too much heat from the exhaust system. The brake lights can fail, and the problem also can cause fluid leaks and the loss of rear brakes.

The problem affects Touring, CVO Touring and Trike vehicles from the 2009 through 2012 model years.

Harley says it will notify owners of the recall. Dealers will install a rear brake light switch kit free of charge.

The recall affects about 251,000 motorcycles in the U.S. alone.

The company says it's aware of only one crash from the problem. It was unclear if anyone was hurt.

Debt Financing

Health Management

Read More