ALG Cuts Residual Values for Large Trucks, SUVs
Anticipating slightly higher fuel prices in the future, ALG, Inc. is cutting residual values for less fuel-efficient vehicles such as large SUVs and pickups. ALG's Residual Value Guide is widely used for setting residual values. Lower residuals could result in making leasing less attractive for large trucks. It could also mean lease customers have to finance a bigger amount or auto lenders have to spend that much more on incentives to keep monthly payments low. The effect on purchase customers could be lower resale values. ALG predicts the cost of gasoline will be about $4 per gallon three years from now.
Toyota’s New Safety Technology Adds Steering Control Feature
Toyota demonstrated some of its newest safety innovations under development that include pre-collision technology to take control of the steering to veer a vehicle away when it can't stop before impact. Cameras and a super sensitive radar called "millimeter-wave" installed in the front of the vehicle detect possible crashes. Toyota said it is aiming for zero injuries and fatalities and hinted the new steering feature would soon be offered on commercial vehicles. Other safety features under development are a pop-up hood to help protect pedestrians in a crash and a steering wheel to measure a driver's heartbeat to prevent crashes when drivers suffer heart attacks.
Police Enforcement, Publicity Result in Reduced Distracted Driving
Transportation Secretary Ray LaHood said increased police enforcement of distracted-driving laws along with publicity campaigns can dramatically reduce cases of drivers who aren't paying attention behind the wheel. He cited pilot projects in Syracuse, NY, and Hartford, CT, that paid off in reducing distracted driving. Over the past year Syracuse police issued 9,587 citations for driver violations involving talking or texting on cellphones while operating a vehicle. Police in Hartford issued 9,658 tickets for illegal phone use during the same period. Both cities have seen a dramatic drop in the illegal use of phones while driving. Mr. LaHood said more than 500,000 motorists a year are injured and thousands killed because of distracted driving accidents.
Crediting Marchionne for Chrysler’s Rise From the Ashes
Two years ago President Obama ordered that Chrysler be advanced enough money to stay afloat. His actions saved 38,500 direct jobs at Chrysler and hundreds of thousands more at suppliers and dealers at an especially fragile time for the nation's economy. This week Chrysler will emerge from bankruptcy as a vital partner of Fiat in a new global auto manufacturing alliance. Based largely on the vitality and strength of the two companies, Chrysler has paid back all of its government loans, and under the direction of Sergio Marchionne it bought the remaining shares held by the U.S. and Canadian governments. With his success at Chrysler, Sergio Marchionne joins Nissan's Carlos Ghosn and Ford's Alan Mulally in turning around failing auto companies.
Edmunds.com Recognizes Honda, Ford in Lowest Cost to Own Awards
Honda and Ford were named winners in Edmunds.com's 2011 Lowest True Cost to Own Awards. The awards recognize the 2011 model year cars and trucks in 23 categories that offer the lowest True Cost to Own (TCO) which is the projected ownership cost over five years. Edmunds.com calculates the lowest true cost to own by considering depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance, repairs and any available federal tax credit. To estimate certain mileage-dependent costs, Edmunds.com assumes vehicles will be driven 15,000 miles annually.
