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Industry News Briefs

Ford Focuses on Quality
According to its annual reliability survey, Consumer Reports proclaims Ford vehicles showed marked quality improvements in 2007, with 41 of 44 Ford, Lincoln and Mercury brand vehicles rating average or better. The results validate Ford's efforts to boost quality in recent years. "The reliability of their cars has steadily improved over the years and is showing consistency," said David Champion, senior director of the Consumer Reports auto test center.
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Average Fuel Economy Remains Consistent
According to the Environmental Protection Agency (EPA), average fuel economy for 2004 automobiles is 20.8 MPG, unchanged from 2003. Fleet-wide averages for American light- Duty vehicles has been consistent since 1997, ranging from 20.6 to 20.9 MPG. Average fuel economy hit its peak in 1987 at 22.1 MPG. EPA officials predict new technology, including hybrid-electric vehicles, clean diesel technology, and variable displacement engines, will raise fuel economy averages in the coming years.

Gasoline Prices in Perspective
Although rising gasoline prices have stressed out motorists this summer, prices have not been as volatile as many other commodities over the past 20 years. According to Petrotec, gasoline prices have increased 44.5 percent over the past 20 years, while prices for most of the following commodities have increased more:

Coffee 45.0% Eye Care57.6% Beer 71.6% Meats 80.1% Cereal 87.0% Postage 90.9% Seafood 93.2% Air Fare 127.6% Doctors 174.5% Dentists 202.1% College 328.5%

Wear and Deposits Affect Fuel Economy
According to the book "How to Select A Motor Oil for Your Car or Truck," wear and deposits eventually affect engine combustion and fuel economy. Valve train wear can affect timing and valve movement, while wear on rings, pistons, and cylinder walls impacts volumetric compression efficiency and combustion blow-by, leading to power loss. Greatest wear is caused by particle sizes that are in the same range as the oil film thickness. According to a study by General Motors, "controlling particles in the 3 micron to 10 micron range had the greatest impact on wear rates, and engine wear rates correlated directly to the dust concentration levels in the sump."

Warning Labels for Obsolete Motor Oils
The National Conference on Weights and Measures has added a lubricant category to its Handbook 130, which serves as a prototype for states that regulate consumer products. It calls for warning labels on obsolete motor oil containers, as well as documentation of performance claims upon request. "This is basically something that can serve as a model regulation for states that want to address such problems," says Dennis Johannes, chairman of the conference's Laws and Regulation committee. The new rules automatically become law on January 1 in Pennsylvania, New Hampshire, and West Virginia, while other states are expected to soon adopt the regulations or develop their own.

More Vehicle Choices
There are currently more than 200 major automotive nameplates (discrete car and truck lines) on sale in the United States, and the number is expected to continue rising over the next five years. According to AutoPacific Inc, launching and establishing a new vehicle line is more difficult and expensive than ever, requiring billions of dollars to develop, manufacture and merchandise. Yet, auto industry analysts expect 50 new nameplates will be introduced by 2009. Sales are not increasing quite as quickly, with AutoPacific predicting total sales rising from 16.6 million units now, to 18 million in 2009. "It is not surprising that cutting through this clutter of products and messages is almost insurmountable to all but a small few," says AutoPacific Inc.

Vehicle Maintenance Becomes Bigger Priority
The Automotive Aftermarket Suppliers Association (AASA) reports that neglected automotive maintenance dropped from $62 billion to $43.3 billion in 2003. According to AASA director of market research Frank Hampshire, the drop can be attributed to increased consumer interest in maintenance due to uncertainty about future economic conditions, as well as a high rate of new vehicle sales that took many maintainable vehicles off the road. "When money is the only issue, car owners will neglect vehicle maintenance," says Hampshire. "When their job or economic future is uncertain, consumers will maintain their cars to protect their investment and to make sure the vehicle remains in good running condition." Of the $43.3 billion in neglected maintenance, tires and shocks/struts represent the largest product segments.

Hybrids Experience Engine Problems
According to the J D Power & Associates 2004 Vehicle Dependability Study, diesel and gasoline electric hybrid vehicles have more engine problems than their gasoline-powered counterparts. The study surveyed over 45,000 owners of 2001 model year vehicles in the areas of malfunction, NVH (noise, vibration, and harshness), drivability, dependability, and safety. Owners of Toyota Prius and Honda Insight hybrid vehicles, and Volkswagen diesel vehicles reported twice as many problems as owners of the corresponding gasoline models, with the most common problems related to engine computers and emissions-control systems. Because hybrid vehicles weren't introduced until 1999, a J D Powers executive suggests the problems were likely due to quirks that weren't worked out yet by the 2001 model year.

RV Sales Strong
Despite recent spikes in the prices of gasoline and diesel fuel, Winnebago Industries, Inc is reporting record revenues from motorhome sales, with its profits nearly doubling in its third fiscal quarter. "We continue to believe the long-term prospects remain extremely positive for Winnebago and our industry." says company chairman, president, and CEO Bruce Hertzke. "Economic factors have improved since last year at this time. Fuel prices have stabilized and it appears consumer confidence has begun to rise." According to Hertzke, Winnebago's redesigned diesel vehicles, the Winnebago Journey and Vectra, and the Itasca Meridian and Horizon, are largely responsible for the company's large increase in diesel-motorhome shipments.

Freedonia Predicts Strong future for Synthetics
According to a study be the Freedonia Group, lubricant demand in the United States will grow 0.9 percent per year for the next five years, reaching 2.745 billion gallons in 2008. The study predicts a two percent annual growth for general industrial oils and a 0.2 percent annual growth for automotive motor oils. Freedonia projects demand for synthetic lubricants to grow six times faster than the overall market, with synthetics accounting for 10 percent of the overall demand by 2008. More rapid than average growth is also predicted for high mileage oils and oils marketed specifically for ATV's, motorcycles, and scooters.

Gas Prices Affect SUV Sales
As gasoline prices have remained higher than average, fullsize SUV sales have suffered. Average wholesale prices for used fullsize SUV's dropped steeply over the summer months, while sales of the Hummer H2 have fallen by more than 25 percent. In addition to high gas prices, industry analysts blame the lag in used truck sales on large cash incentives on new fullsize SUV's, while the H2 is likely experiencing a sales slump typical of vehicles that are popular at launch, but can't sustain high sales numbers over the long term.

Business and Leisure Travel on the Rise
Both business and leisure travel is on the increase in America. According to the latest annual Domestic Travel Market Report released by the Travel Industry Association of America, 68 percent of Americans adults took a leisure or business trip of at least 50 miles one way in 2003. The 1.14 billion person-trips taken in 2003 represent an increase of 1.2 percent from 2002, while overall domestic travel volume grew 9.8 percent mostly due to increases in leisure travel. This could be a signal of increasing confidence in the safety of travel and in the economy in general.

GM Recalls 1.5 Million Vehicles
General Motors will recall its midsize SUVs for a tail-lamp problem affecting 2002-2004 Chevy TrailBlazer, GMC Envoy, Oldsmobile Bravada and 2004 Buick Rainier models, all of which have tail lamps that could fail, leaving drivers vulnerable to accidents. The vehicles involved include 946,817 SUVs. In addition to the SUV recall, GM will recall the 2003 Cavalier/Sunfire models for tail-lamp and turn-signal problems (339,008 vehicles), and 2003 Chevy Malibu, Pontiac Grand Am and Olds Alero models for sticking accelerator pedals (204,317 vehicles). In addition, the new Cadillac XLR and 2005 Corvette are being recalled for brake-fluid leaks (5,914 vehicles).

RV Sales Strong in 2004
Professor Richard Curtin, director of the Survey of Consumers at the University of Michigan and economic consultant for the Recreation Vehicle Industry Association (RVIA), forecasts that 347,800 motorhomes and towable RV's will be shipped from manufacturers to dealers this year, an 8.4 percent increase over 2003. However, Curtin predicts the market will pull back almost 8 percent to about 320,300 units in 2005, a number consistent with the delivery totals of 1999 and 2003. According to Bruse Hertzke, chairman of the RVIA, Curtin's forecast of a new 25 year high for RV shipments in 2004 is too conservative. "Increases in interest rates will have a greater impact on RV shipments in 2005," says Hertzke. "But even then the the size of the impact will be relatively small due to the offsetting impact of strong job gains as well as increases in wages."

Strong Medium Duty Truck Sales in 2004
According to research performed by Ward's Communications, US retail sales of Class 3 - 7 medium duty trucks are on the upswing. Through the first seven months of 2004, sales were up 19.2 percent compared to the same period in 2003. According to Peterbilt Motors Co. general manager Dan Sobic, medium-duty "quote and ordering activity is quite solid." Thomas Celliti, vice-president of Navistar International's Medium Truck Vehicle Center, predicts the overall Class 6 and 7 market will be up 15 percent from 2003. Class 6 trucks showed the largest growth through July, growing 48.7 percent, while Class 7 truck sales climbed 12.6 percent.

BMW Looks to Overtake VW in US Sales
Although Volkswagen has long been the top selling European vehicle brand in the United States, BMW is quickly closing in. The numbers for 2004 show Volkswagen leading BMW in sales by only 45 units through November. The 11 month totals show Volkswagen with 234,642 vehicles sold in the US, with BMW close behind at 234,597. The numbers for 2003 showed Volkswagen up 65,000 units through November. The only year BMW outsold Volkswagen in the US was 1993, the year Volkswagen stopped production in its Puebla, Mexico plant. While Volkswagen enjoyed increased sales in 2001 due to the redesigned Jetta, Passat, and New Beetle models, its sales have been steadily declining since 2002. Through November 2004, Volkswagen sales were down 17.6 percent for the year, while BMW sales were up 6.7 percent.

Women Prefer Luxury Vehicles
According to WomanMotorist.com, luxury vehicles are becoming a hot commodity with female drivers. "Luxury vehicles are among the most requested products by women," says editor-in-chief Sandra Kinsler. "Clearly women are interested in entry-level luxury products as well as some of the highest priced production vehicles on the market. And this should come as no surprise. The data clearly depicts an increased interest among women for very high priced vehicles, such as Maybach and Aston Martin." The study also indicates increased female demand for pickup trucks.

Dodge Jumps Back Into Car Market
With trucks accounting for 78 percent of its sales in 2004, Dodge has become known primarily as a truck manufacturer. Now it's looking to reestablish itself in the car market with the introduction of the 2006 Charger sedan. "Our biggest challenge for 2005 is getting into the car business on a volume basis," says Jon Myers, chairman of the Dodge National Dealer Council. "It's an arena we haven't been in for a long time." Known for producing cars with limited runs, including the Viper and SRT-4 Neon, Dodge plans to target a high volume, mainstream car segment with the Charger. Fuel efficiency will play an important role in the vehicle's marketing. A displacement system on the Charger's optional Hemi V-8 engine improves fuel economy by up to 20 percent by deactivating four cylinders when full power is not needed.

Public Transportation Demand Rising
Reflecting an increased demand for transportation choices, 24 of 31 transit-related measures passed during November's election. The initiatives are worth over $40 billion. "The message is loud and clear," says William W Millar, president of the American Transportation Association. "People want more public transportation. These initiatives prove that people are willing to invest in quality transit services that will pay dividends for years to come." Eighteen of 22 transit-related initiatives also passed earlier in 2004, putting the success rate at 80 percent. "This year has also shown that it's not just big metro areas that are clamoring for transit," says Stephanie Vance, program manager for the Center for Transportation Excellence. "Medium and smaller communities like Parkersburg, WV, El Paso County, CO, and Kalamazoo, MI, also see its benefits."

Turbo-Charger Demand on the Rise
Offering benefits such as increased fuel economy and power, and reduced powertrain weight and enmmisions, turbo-charger demand has been rising sharply over the past few years, most notably in European countries where direct injection diesel engines are popular. While normally aspirated diesel engine production continues to decline, production of turbo-charged diesel-engined light vehicles more than doubled between 1998 and 2003, rising from 3.6 million to 7.7 million vehicles. The demand for super-chargers has also increased, but not at the same rate as turbo-chargers. Advances in the super-charger field have allowed vehicle manufacturers to produce smaller engines that combine the performance and horsepower benefits of a large engine with the fuel economy benefits of a small engine.

Owner-Operators Comprise One-Third of Carrier Fleet
According to date from the Vehicle Inventory and use Survey conducted by the U.S. Census Bureau and the Department of Commerce, there are more owner-operator truckers than previously estimated. "Using ratios discovered by our membership profile survey and this new data, we can estimate that owner-operators comprise about one-third of the total for-hire carrier fleet, which is estimated by the survey as 1.1 million large trucks," says John Siebert, project manager for the OOIDA Foundation. The survey shows 390,000 total owner-operators and 545,000 total owner-operator trucks, with each owner-operator owning an average of 1.4 trucks.

Hybrid Technology Grabs Hold of the Bus Market
Optima Bus Corporation recently announced plans for a fuel efficient, low emission hybrid-electric powered version of its popular Opus low floor bus. Expected to yield fuel savings of up to 50 percent over traditionally powered buses, Optima predicts hybrid sales will comprise 40 percent of the company's total sales volume by 2009. When the first prototype of the new bus is unveiled in May, Optima plans to tour trade shows and perform demonstrations for transit organizations around the country.

Chrysler MDS Requires 5W-20
According to Chrysler, it is essential to use the correct motor oil viscosity when changing the oil on a 2005 Magnum or 300 model with the 5.7L Hemi V8 engine. The engine makes use of a multiple displacement system (MDS) that is designed to cut out cylinders during cruise conditions, improving fuel economy and lowering emissions, while firing on all eight cylinders under heavy load conditions, including wide-open throttle operations. The valve-train of this system is extra sensitive to oil thickness and flow rate, and can exhibit problems if the wrong oil viscosity is installed. Only 5W-20 motor oil should be used when performing an oil change on any 5.7L-equipped Magnum or 300. AMSOIL offers XL (Extended Life) 5W-20 Synthetic Motor OIl (XLM) for these applications.

Hybrid Buses Introduced in Canada
Hybrid engine technology is about to be introduced to Canadian bus riders. According to GM Canada and New Flyer Industries, BC Transit of British Colombia will be the first Canadian transit system to use the General Motors advanced diesel-electric system during regular service. BC Transit expects delivery of six 40-foot hybrid diesel-electric buses this spring, with three going to the Victoria Regional Transit System and three going to the Kelowna Regional Transit System.

Diesels Dominate Commercial Truck Market
According to R L Polk Inc, diesel vehicles greatly outnumber gasoline-powered vehicles in the medium and heavy-duty commercial truck market. Only 15.6% of new commercial truck registrations in 2004 were gasoline powered. International Truck and Engine Corp holds the greatest share of the diesel engine market in Classes 3-6, while Caterpillar Inc holds the great4est share in Classes 7 and 8. The gasoline engine market leader is General Motors in Classes 3, 6, 7 and 8, while Ford is the leader in Classes 4 and 5.

California City Introduces Complete Hybrid Bus Fleet
With a fleet of remanufactured gasoline hybrid-electric powered buses, Elk Grove, CA launched its new transit service known as E-Tran. According to City Manager John Danielson, Elk Grove is the first US city to have a full hybrid-electric commuter bus fleet. The remanufactured buses were originally 40-foot 1991 Gillig Phantoms before being completely rebuilt by Complete Coach Works with ISE ThunderVolt hybrid drive systems.

Future Looks Bright for 4WD
According to the J D Power and Associates "2004 Global 4WD-Driveline Market Report," four-wheel drive vehicle production will rise significantly in the coming years. The report estimates production of four-wheel-drive cars, trucks, and crossover vehicles to climb from its current 28 percent of total North American production to 37 percent by 2008. Automakers are expected to equip an increasing number of front-wheel drive models with four-wheel of all-wheel drive capabilities. While 87% of all four-wheelers are currently based on rear-drive drivelines, the number is expected to fall to 68 percent by 2008. The popularity of SUVs is the leading force behind the 4WD surge, with 64 percent of SUVs having 4WD capability, followed by 42 percent of pickups, four percent of vans and three percent of cars.

Ford Oil Leak
Some 2003 and 2004 Ford Explorer, Lincoln Navigator, and Mercury Mountaineer models may exhibit an oil leak from underneath the front end. It is likely a leak in the axle seal of the passenger side front axle tube. Ford advises getting the vehicle in the air and inspecting both front axle tubes. According to Ford, if the seal has spun in its bore, it will be necessary to replace the entire front axle assembly. If the seal is leaking, but the bore is unharmed, replace only the axle seal.

GM to Produce More E85-Capable Vehicles
General Motors announced production plans for E85-capable Chevrolet Avalanches for use in member states of the Governors' Ethanol Coalition (GEC), a group of governors devoted to increased use of ethanol fuels. GM is the nation's largest producer of E85 flexible fuel vehicles. E85 fuel is a renewable, domestically produced fuel amde up of 85 percent ethyl alcohol and 15 percent gasoline. Produced from the starch in agricultural products, E85 delivers similar performance as regular gasoline while reducing emissions and dependence on foreign gasoline. "The participating members are excited to promote E85-capable vehicles across the country and appreciate GM's support of our mission to increase ethanol use," said Minnesota Governor Tim Pawlenty, GEC chairman. "This proactive decision by GM will help the US decrease our dependence on imported energy sources and improve the environment."

Commercial Vehicle Registrations Up in 2004
According to R L Polk and Co, new commercial vehicles in weight Classes 4-8 increased almost 26 percent in 2004 over 2003. According to Polk's data, Class 4 vehicles showed a 19.3 percent increase, Class 5 vehicles showed a 6.9 percent increase. Class 6 vehicles showed the largest gain with a 34.1 percent increase, Class 7 vehicles showed a 17.3 percent increase, and Class 8 vehicles registered a 33.8 percent gain. With 202,264 new registrations, Class 8 vehicles represent the largest single group. Although Polk's data does not include Class 3 vehicles, Ward's Communications reports an 18 percent gain for Class 3 vehicles in 2004.

Brand Loyalty on the Upswing
Although brand loyalty among Class 8 truck buyers has mostly decreased in recent years, the J D Power and Associates 2004 Heavy Duty Truck Consumer Satisfaction Study indicates it may be coming back. When it comes time to replace their current truck, 43 percent of respondents said they will definitely purchase the same brand. That number is up from 39 percent in 2003, but below the 50 percent levels typical of the 1990s. Kenworth ranked the highest in consumer satisfaction among vocational trucks, followed by Peterbilt and International. International ranked the highest in dealer service, followed by Peterbilt, Kenworth and Mack.

Ford Oil Leak
According to Ford, some of its 1999-2002 vehicles with V-8 engines may leak or weep oli from the right rear or left front of the engine. Affected vehicles include 1998-99 Navigators; 1999-2001 Econolines, Expeditions, F-150s and F-Series Super Dutys; 2000-01 Excursions; and 1999-2002 Crown Vics, Grand Marquis, Mustangs and Town Cars. Add a trace dye to the crankcase and use an ultraviolet or blue light inspection lamp to find the leakage point. It will most likely be found emanating from one or both cylinder head gaskets. Ford attributes the leak to either metal chips between the head gasket and block, chip debris between the cylinder head and gasket, or damage to the head that occurred during manufacture. The affected cylinder head should be removed and closely examined. If chips are visible, but the head isn't damaged, they should be blown away with compressed air, the head and block cleaned, and the head gasket replaced with a revised service design. If the cylinder is damaged, it must be replaced.

AAA Supports Updated Fuel Efficiency Tests
The American Automobile Association (AAA) plans to use real-world fuel efficiency tests to prove the Environmental Protection Agency (EPA) is overestimating the miles-per-gallon (MPG) rates posted on dozens of new vehicles. AAA endorses the "Fuel Efficiency Truth-In-Advertising Act of 2005," requiring the EPA to update its fuel efficiency tests, which fail to account for air conditioning, traffic congestion and the fact that many trips are too short to fully warm the engine. After performing its own fuel efficiency testing on hundreds of new vehicles, including tests with stop-and-go driving,steep grades and vehicles full of groceries, AAA discovered dozens of models with overestimated mileage, sometimes as much as 10 MPG.

Medium-Duty Trucks Enjoy Strong Sales
According to Steven Latin-Kasper, market data and research director for the National Truck Equipment Association (NTEA), medium-duty trucks should continue to see strong sales through 2005 and into 2006. According to NTEA and US Department of Commerce data, the total value of transportation and truck equipment shipped by US manufacturers was $98.66 billion in 2004, an increase of 16 percent over 2003. Truck and truck chassis sales represent the largest portion of the figure ($65 billion), an increase of 13 percent over 2003.

GM Transmission Leaks
Certain 2004 and earlier model year General Motors cars and trucks equipped with the 4T65-E automatic transmission may weep transmission fluid from around the area of the rear servo cover. According to GM, leakage is most noticeable in colder temperatures (20°F and lower) and is most likely caused by shrinkage of the rear servo cover seal. New covers made with an improved, more elastic seal material are available from GM. Before installation, the areas around the and below the cover should be inspected and cleared of dust, dirt, and road debris. Once cleaned, the cover should be tapped in, the retaining ring installed and the transmission filled with the proper level of automatic transmission fluid.

CAFE Standards to Change
A Bush administration proposal is expected to change the way Corporate Average Fuel Economy (CAFE) numbers are calculated. Currently, automakers can offset the low fuel economy averages of their larger trucks by offering more fuel-efficient four-cylinder pickup trucks and minivans that exceed CAFE standards. The new standard will introduce six separate standards for trucks based on their size. According to Secretary of Transportation Norman Y Mineta, the new standard is "expected to save 10 billion gallons of gas in the years to come." The target minimum consumption standard is set for 20.7 mpg for 2008 and 21.9 mpg for 2011. Most current full-size SUV's and pickups receive well under 20 mpg in the city and just under 20 mpg on the highway.

Future Looks Bright for Hybrids
Jim Press, president of Toyota Motor Sales USA Inc, predicts hybrid vehicles will make up one-quarter of Toyota's US sales by the end of the decade. In addition to its current line of hybrid models, 10 additional models will be introduced between now and the end of the decade. Toyota has set a global sales goal of one million hybrid vehicles a year by early next decade. "At our current rate of sales, that's about 600,000 hybrids in the US," says Press. "To achieve that goal, we will have to look at offering hybrid power systems in virtually all our vehicles, including trucks." Toyota is currently studying development of hybrid powertrains for pickup trucks. Press believes hybrids could account for between 10 and 15 percent of industry-wide sales by the end of the decade.

GM and Extended Oil Drains
According to General Motors, the typical motor oil drain interval is 8,500 miles on GM vehicles equipped with Oil Life Systems, while the average drain interval is 5,000 miles in competing vehicles. In addition, the company foresees drain intervals topping 30,000 miles with minor engine modifications and appropriate motor oil quality, and 40,000 miles with major engine modifications. "But we still need to strive for the best fuel economy, no compromise on engine durability, and no negative impact on emissions systems," says James A Spearot, director of GM's Chemical and Environmental Sciences Laboratory in Warren, MI. AMSOIL Synthetic Motor Oils offer superior protection for extended drain intervals of up to 35,000 miles without the need for engine modifications.

Heavy-Duty Truck Sales Expected to Remain Strong
According to Rainer Schmueckle, president of the Freightliner Group, sales of heavy-duty trucks are expected to continue rising through 2006. New EPA emission standards take effect in January 2007, requiring manufacturers to incorporate more complex and expensive diesel engine technology. The more expensive trucks will prompt many buyers to buy new trucks before the standard takes effect, but Schmueckle doesn't believe sales will suffer in 2007. "The industry doesn't have the capacity to handle a big pre-buy", he says. This means that not everyone will be able to buy new trucks in 2006, and orders will cross over into 2007. While 2007 trucks eill be more expensive, their increased fuel efficiency is expected to offset much of the increased operating expense.

Ford Partners with VeraSun to Increase E85 Availability
Ford Motor Company recently announced a partnership with renewable energy company VeraSun Energy Corporation. The partnership's goal is to increase the number of gas stations offering E85, an alternative fuel comprised of 85 percent ethanol and 15 percent gasoline. Approximately 5 million flexible fuel vehicles (FFV's) capable of running E85 are on the road, but two challenges facing greater growth of the market are access to convenient fueling locations and lack of consumer awareness. Currently, only about 500 gas stations in the US offer E85. Ford offers four new 2006 vehicle models with the flexible fuel option: The Ford F-150, Crown Victoria, Mercury Grand Marquis and Lincoln Town Car.

Small Vehicles Projected To Be A Big Hit
With new models and concepts recently introduced by Ford, Toyota, Honda and Nissan, small cars are projected to be the next big thing to hit the US market. Planners believe Generation Y customers (drivers through age 29) are largely unable to afford SUV's and crossover vehicles, and they plan to tap into this market by introducing inexpensive smaller vehicles. Toyota already offers its popular Scion brand, an inexpensive car with an abundance of accessories, and soon plans to introduce it Yaris model with a $10,950 base price. With the fuel tank situated in the center of the vehicle, Honda's Fit model offers almost as much cargo space as its Element model. "The segment isn't what it used to be," says Michael Robinet, head of forecasting for CSM Worldwide in Farmington Hills, MI. "They're not penalty boxes anymore. The manufacturers have solved a lot of old issues with better design and accessories."

Bush Supports Ethanol
In his State of the Union address, President George W Bush stated his desire to see ethanol-based fuel become competitive with gasoline within six years as part of a plan to replace 75 percent of American oil imports from the Middle East by 2025. American automobile manufacturers already produce hundreds of thousands of flexible fuel vehicles each year that can use either gasoline or E85. E85 is composed of 85 percent ethanol and 15 percent gasoline, and about 600 gas stations, mostly in the Midwest, currently offer it. Both GM and Ford believe E85 is a realistic alternative to gasoline and are seeking ways to expand its availability and increase consumer demand.

Automakers Seek Partnerships with Partsmakers
According to Automotive News, in order to minimize the stress of rising prices, supplier overcapacity and competition, more automakers are increasing efforts to partner with partsmakers. According to Mark Adams, senior general manager for Toyota purchasing in Europe, Toyota has maintained a collaborative relationship with its suppliers for years in order to assure low costs and top quality. Ford and Fiat Auto recently entered a long-term supplier partnership program last year. "Ford is entering into new long-term agreements with selected suppliers of key components globally to create a stronger, sustainable business model," says Ford of Europe vice president of purchasing Birgit Behrendt.

Synthetic Motor Oils Credited for Increased Vehicle Life
A recent report released by the National Highway Traffic Safety Administration (NHSTA) reveals average passenger cars are currently lasting upwards of 150,000 miles, while while average pickups and SUVs are lasting 180,000 miles or more. These numbers indicate an increase in average vehicle life over the past 10 years. A similar report from 1995 indicated an average car life of 125,000 miles and an average truck life of 150,000 miles. Among the factors credited for this increase in vehicle life are advances in metallurgical and engine technology and growing use of synthetic motor oil.

Off-Roaders Plan Engine Performance Upgrades
A recent SEMA internet survey regarding planned purchases reveals that 40 percent of surveyed 4x4 enthusiasts plan to make engine performance upgrades to their vehicles, while 33.3 percent intend to work on their vehicle's suspension. According to SEMA, increased popularity of competitive off-road activities such as rockcrawling and rally / Baja activities has produced greater interest in safety equipment, which finished third in the poll. Paint and graphics, body kits, exhaust systems and audio components were also cited by survey participants.

Ford Retires Mercon ATF Spec
Ford Motor Company recently announced the retirement of its Mercon ATF specification, opting to promote its more stringent Mercon V specification. According to Chintan Ved, Ford lead development engineer for ATF, although the company has recommended Mercon V fluids for all its vehicles for the past seven or eight years, most Ford models continue to be serviced with Mercon fluids in the aftermarket. "All transmissions recommending Mercon ATF can now be serviced with Mercon V," says Ved. "Mercon V is a tighter specification, requiring better anti-oxidation, anti-wear and anti-shudder properties from service-fill ATFs. We are doing this because we want to ensure our customers get the better fluid."

Clean Diesel for Dodge Ram
Dodge has approved the use of B20 biodiesel fuel in its 2007 Ram pickup trucks with the Cummins turbodiesel engine. However, the approval only covers military, government and commercial fleets at this point. According to DaimlerChrysler, the company is currently working "the government, automotive suppliers, energy providers, universities, and independent agencies on a national fuel standard that would make B20 an option for all owners of Dodge Ram diesels."

Google Users Seek AMSOIL
The following is a list of how many times Google search engine users looked for the listed words or terms in March 2006:
  • AMSOIL 24,012
  • motor oil 22,062
  • synthetic oil 11,320
  • Pennzoil 5806
  • Castrol 4959
  • Royal Purple 4468
  • Lucas Oil 3668
  • Mobil 1 3131
    These statistics reveal that customers are actively searching for AMSOIL products products. In fact, more searches were performed for "AMSOIL" than "motor oil" itself, and more than Pennzoil, Castrol, Royal Purple, Lucas Oil and Mobil 1 combined.
  • Arctic Cat Promotes Benefits of Synthetics
    The Spring 2006 issue of Arctic Cat's Ride publication extols the benefits of running its OEM-branded synthetic motor oil in Arctic Cat ATVs, including improved protection over a wide temperature range and extended drain intervals. A table illustrates how consumers save money by taking advantage of the extended drain intervals afforded by its synthetic product. With AMSOIL Formula 4-Stroke® Power Sports Synthetic Motor Oil (AFF), consumers receive the best protection can buy for their ATVs. AFF not only saves money through extended drain intervals, Dealers and Preferred Customers pay less than thay would for Arctic Cat synthetic oil.

    GM Offers More Six-Speed Automatic Transmissions
    General Motors is introducing an increased number of vehicles that offer fuel efficient six-speed automatic transmissions, including the Cadillac STS and SRX, Saturn Aura and Outlook, and Pontiac G6. In addition to improved fuel economy and performance, six-speed automatic transmissions offer a seamless shift feel. Because they reduce engine revolutions at highway speeds, they also reduce engine wear and noise. "It's almost like having two transmissions in one," says Jim Lanzon, executive director of transmission engineering for GM Powertrain. "The high numerical first gear provides tremendous off-the-line acceleration, but the transmission is able to use the six gears to evenly distribute the torque and settle at an overdrive gear that helps deliver great fuel economy," said Lanzon.

    Big Growth Projected for Diesel Truck Engine Products Market
    The Freedonia Group reports that the diesel truck engine products market will grow substantially as more customers purchase diesel trucks for their fuel economy benefits. Although diesel vehicles cost more than gasoline vehicles, and diesel fuel is available in only 40 percent of US gas stations, the US market for light-duty diesel truck engine products is expected to increase to $420 million by 2009, a 42.4 percent increase from 2004.

    Lubricant Sales Increase in First Quarter
    According to the National Petrochemical and Refiners Association Quarterly Index of Lubricant Sales (QUILS), first quarter 2006 lubricant sales in the United States increased 2.2 percent over the same period in 2005. Grease sales were particularly strong, showing growth of nearly 17 percent.

    Motorcycle Riding Styles
    According to the recent J D Power and Associates Motorcycle Competitive Information Study, the following are the most common motorcycle riding styles:

    • Relaxed Cruising 22%
    • Short / Day Trips 22%
    • Around Town 21%
    • Commute to Work / School 17%
    • Extended / Overnight Travel 11%
    • Fast Paced 7%
    Whatever the riding style, AMSOIL 10W-40 and 20W-50 Synthetic Motorcycle Oils provide unsurpassed protection and performance for all motorcycles.
    Popularity of Vehicle Customization on the Rise
    Vehicle customization has become increasingly popular in recent years, prompting automobile manufacturers to jump on board this growing market. For example, the Scion division of Toyota recently introduced its Optimize aftermarket accessory program. Optimize allows customers to personalize their new vehicles with over 150 name brand accessories at the time of purchase. Many Vehicle dealerships are also boosting revenue by offering customers OEM and aftermarket parts and accessories.

    Ea Oil and Air Filter Applications
    AMSOIL Ea Oil (EaO) and Air Filters (EaA) offer superior efficiency, capacity and durability, extending engine and filter life. Currently, Ea Oil and Air filters cover over 55,000 applications, with more being added regularly. Ea Oil Filters cover 26,433 post-1980 applications and 10,112 pre-1980 applications for a total of 36,545 applications, while Ea Air Filters cover 15,616 post-1980 applications and 2,840 pre-1980 applications for a total of 18,456 applications. In addition, Ea Motorcycle Oil Filters (EaOM) cover 1,084 applications and Ea Motorcycle Air Filters (EaAM) cover 113 applications.

    Get A Feel for Contaminants
    According to "The Lubrication Field Test and Inspection Guide," it is diffucult to feel particles in contaminated lubricants with one's fingers. Because they become trapped in filters, crushed or settle to the bottom of tanks and sumps, particles large enough to be felt generally spend a very short time within the oil. "Therefore, in order to get a feel for the consistency, hardness and size, it is best to go the places where they accumulate. These places include the bottom of the sample bottle, a tank / sump BS&W sample, sediment from centrifugal separators and debris on the surface of a used filter."

    Water Contamination Tip
    According to "The Practical Handbook of Machinery Lubrication", water contamination caused by condensation is common in North America due to dramatic changes in temperatures. "Hydraulic or turbine oil with a 'milky' appearance is an indication of water in excess of 2,000 PPM, and action must be taken to replace the oil, or remove the water through special filtration systems available for this purpose."

    Aftermarket Sales Increase
    According to the Automotive Aftermarket Industry Association (AAIA) Aftermarket Factbook, US vehicle aftermarket sales increased by five percent in 2005 to $267.6 billion, the largest increase since 2000. "We're extremely pleased to see steady growth in aftermarket sales, even as new car dealerships' share continues to slide for the fifth consecutive year," said AAIA president and CEO Kathleen Schmatz. "And contrary to the frequent prediction that DIY is dying, our data shows that the DIY side of the industry grew by a healthy 5.6 percent."

    Pickup Truck Personalization
    According to the 2006 SEMA Light Truck Personalization Report, full size pickup truck owners spend an average of $1,461 on truck personalization, while mid-size truck owners spend an average of $1,006.
    Full Size        Average
    Pickups       Spent

    Avalanche  $1,900
    F-Series     $1,687
    Ram         $1,652
    Tundra      $1,424
    Sierra        $1,264
    Titan         $1,129
    Silverado   $1,126

    Mid Size        Average
    Pickups       Spent

    Ridgeline   $1,711
    Tacoma     $1,407
    Canyon     $984
    Colorado   $810
    Dakota      $782
    Raider       $687
    Ranger      $671
    Frontier     $506

    Ultra Low Sulfur Diesel Fuel Standards
    According to the Environmental Protection Agency (EPA), preliminary surveys indicate approximately 85 percent of highway diesel fuel currently meets Ultra Low Sulfur Diesel (ULSD) standards, exceeding the current federal mandate of 80 percent. By 2010, 100 percent of highway diesel fuel is expected to meet ULSD standards. New diesel engine emission control technology and ULSD are expected to result in billions of dollars in environmental and health benefits.

    Customer Awareness Survey
    According to a national survey sponsored by Jiffy Lube International, about half the respondents were aware that under-inflated tires, dirty air filters, incorrect wheel alignment and loose gasoline caps can reduce gas mileage. About half were also aware that the normal life expectancy for any windshield wiper blade is between six months and a year. However, less than half knew the function of cabin air filters. "Many vehicles on the road today are equipped with cabin air filters that need periodic replacement - and many drivers don't know it," said Jiffy Lube technical adviser Mark Ferner. "Many vehicle owners' manuals list how often a cabin air filter should be replaced."

    More Accurate MPG Estimates On the Way
    The US Environmental Protection Agency (EPA) is changing the way it calculates the miles per gallon (MPG) estimates posted on new vehicle window stickers, and the new standards will be implemented in time for model year 2008 vehicles. By including factors such as high speeds, aggressive accelerations and cold temperature driving in its tests, the EPA expects the posted fuel economy estimates will be more consistent with what the customer experiences.

    Vehicles with High Resale Value
    Kelly Blue Book recently announced the 2007 model-year vehicles that are expected to have the highest resale value after five years of ownership. The following 2007 vehicles are KBB's picks to retain the greatest percentage of their original price over a five-year ownership period:
    Best Resale Value: Brand: Honda
    Best Resale Value: Top 10 Models:
    Acura TSX, BMW 5 Series, Hinda Civic, Lexus IS, Mini Cooper, Pontiac Solstice, Scion tC, Toyota Prius, Volkswagen GTI, Volkswagen Eos

    Natural Gas Powered Garbage Trucks
    The environmental group Inform reports that an increasing number of US cities are switching their garbage trucks from diesel to natural gas, with approximately 1,500 of the nation's 136,000 garbage trucks currently powered by natural gas. "Replacing diesel fuel-powered trucks with trucks powered by natural gas is a tremendous opportunity, not only for cleaner air and quieter neighborhoods, but also for reducing reliance on a fuel coming from risky and unreliable foreign sources," said Inform president Joanna Underwood.

    Diesel Owners Report Excellent Fuel Efficiency
    According to the EPA's "Your MPG" database, diesel vehicle owners are reporting 4.3% greater fuel efficiency than indicated on their vehicle window stickers. The data was collected from 221 diesel drivers who calculated their own fuel economy and report it to an internet database. Gasoline vehicles owners, on the other hand, reported 1.4% to 1.7% decreased fuel economy compared to the window sticker, while hybrid owners reported 8% decreased fuel economy. "It's long been known that diesel is the most fuel efficient internal combustion engine ever produced, typically providing 20 - 40% greater fuel efficiency than other technologies," said Allen Schaeffer, executive director of the Diesel Technology Forum.

    5W-20 Oil Increases Fuel Economy
    Ford Motor Company reports that the company's switch from recommending 5W-30 viscosity motor oil to 5W-20 viscosity motor oil has saved 700 million gallons of gasoline since 2001. By reducing load and internal friction, lighter viscosity 5W-20 motor oils reportedly increase fuel economy by a half-mile per gallon. In addition, Ford reports its use of 5W-20 oils has reduced carbon dioxide emissions by about one million metric tons per year. AMSOIL 0W-20 Synthetic Motor OIl (ASM) and XL 5W-20 Synthetic Motor Oil (XLM) deliver outstanding fuel efficiency and superior wear protection over competing synthetic and conventional motor oils.

    Buell to Introduce Off-Road Motorcycles
    Within the next two years, Buell Motorcycle Company plans to introduce off-road motorcycles designed for closed-course competition. "Harley-Davidson and buell are highly committed to braodening the range of products we offer and reaching out to new groups of customers," said Buell President and Chief Operating Officer Jon Flickenger. "We're always looking at new market opportunities, but this one is particularly exciting."

    Dual Remote Filtration System Ideal for Off-Roaders
    A July 2007 4-Wheel and Off-Road article by feature editor Jerrod Jones entitled "Fantastic Filtration" recommends 4x4 enthusiasts use remote mount oil filtration systems in their off-road vehicles in order to extend engine life and oil drain intervals. Jones specifically expresses his satisfaction with the AMSOIL Dual Remote Filtration System recommended by the Dyno Shop in Santee, CA and includes pictures and instructions for installing it.

    Tonneau Covers and Fuel Economy
    In order to determine the effect truck tonneau covers have on drag and fuel economy, SEMA recently conducted wind tunnel tests on 13 different tonneaus from nine different manufacturers. Test results indicated the tonneaus improved drag coefficient by an average of 5.73 percent. "Other tests would need to be conducted in order to determine the exact effect on fuel economy", wrote Megan McKernan of SEMA. "Aerodynamicists often say that a 10 percent improvement in aerodynamic performance is good for a 2 to 3 percent improvement in gas mileage, based on an EPA road speed of 48 mph. Therefore, an improvement in Cd of 5.73 percent should account for a 1.8 percent improvement in gas mileage."

    Hot Running HD Twin Cam 96 Engines
    Harley-Davidson has recently acknowledged that its Twin Cam 96 engine tends to operate at higher temperatures. In particular, owners of 2007 Ultra Classic Electra Glide motorcycles have noticed an excessive level of heat radiating from the engine. This model has fairing lowers that obstruct some of the cooling air that would usually cool the rider's legs at slower speeds. In addition, the Twin Cam 96 engine operates at higher temperatures than the Twin Cam 88 engine because it has almost 10 percent more displacement and because it is calibrated to run a leaner fuel-air mixture to meet exhaust emission standards, often elevating engine heat at slow riding speeds when little air is flowing around the bike.

    Hybrid Scooters On the Way
    Piaggio SpA recently announced plans to launch a gas-electric hybrid scooter model in congested cities. "The hybrid can represent a very important reply to the problems of traffic, safety and pollution," said Piaggio SpA Chairman Roberto Colaninno. "The hybrid generates synergies from the two motors, using electronic systems. "Equipped with a 125cc gas engine, the planned model is based on the Piaggio three-wheeled MP3 scooter and is expected to achieve 169 mpg. A lithium battery is used to power the electric motor, and it can be recharged either at the owner's home or through the gas engine when it is running. According to officials, lithium batteries are lighter than conventional lead batteries and can be recharged several thousand times.

    Aftetmarket Continues to Grow
    According to the Automotive Aftermarket Suppliers Association (AASA), the value of the light vehicle aftermarket is expected to surpass $200 billion within the next few years. After reaching $185.2 billion in 2006, the market is expected to approach $193 billion by the end of 2007. As in years past, vehicles over 10 years old made up the largest percentage of dollars spent, equating to $80.8 billion in 2006. The segment of vehicles six years old and older is expected to continue growing at a steady pace, while vehicles five years old and newer are projected to peak this year before declining to below $45 billion in 2010.

    Bosch and Getrag Introduce Hybrid Drivetrain Concept
    Bosch and German transmission maker Getrag recently developed and unveiled a new hybrid drivetrain concept featuring a dry dual-clutch transmission linked to an electric rear axle. The hybrid systems incorporate Getrag six-speed PowerShift transmissions and Bosch electrical architecture for the alternator, electric drive system and power electronics. According to Getrag, the systems feature lighter and less complex electric components, with many parts in common to the PowerShift transmissions in non-hybrid powertrains.

    Increased Efficiency with MEHF Hydraulic Fluids
    Research performed by RohMax demonstrates that use of Maximum Efficiency Hydraulic Fluids yields significant efficiency improvement over use of conventional hydraulic fluids. Analysis of hydraulic fluid behavior in a pump circuit showed use of the higher viscosity, shear stable hydraulic fluids could increase output without increasing fuel consumption. Mathematical models, lab scale testing and full-scale equipment trials demonstrated efficiency improvement of more than 18 percent with MEHF fluids compared to conventional grades, translating into an 18 percent improvement in fuel efficiency and an 18 percent reduction in CO2 emissions. AMSOIL Synthetic Anti-Wear Hydraulic Oils are MEHF fluids, effectively increasing hydraulic system efficiency and lowering costs.




     
     
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