PriceWheels Blog

Mercedes-Benz has placed a recall on almost 103,000 sport utility vehicles because of a defect that could cause a loss of power steering. The National Highway Traffic Safety Administration (NHTSA) said 102,954 Mercedes M-Class SUVs from model years 1998 to 2003 were affected by the recall.

The defect seems to be a faulty hose clamp. The clamp is used to secure a cooling hose for power-steering systems on the vehicles. It may not hold with enough force and the loose hose connection could result in diminished power steering function and could damage the power steering pump on the vehicles, NHTSA said.

“This could result in a loss of control and a crash without warning,” NHTSA said. The reason is due to the fact that leaking power steering fluid could get on the brakes or the tires and cause a major problem.

Mercedes has released no specific comments, only stating that the recall letters would start being sent out in October. If you think your affected by this recall, head on over to your local Mercedes-Benz dealer right away.

Mitsubishi Motors Co. has recently announced that the company would be launching it’s brand in the Korean market. The Japanese auto manufacture plans to enter the built-up car sales business in Korea working through its sole distributor in that country, MMSK Corporation.

MMSK is a Japanese/Korean joint venture recently set up by Daewoo Motor Sales Corp., Incheon, Seoul Metropolitan City, Korea; President and CEO, Lee Dong-Ho), Mitsubishi Corporation (Chiyoda-ku, Tokyo; president and CEO, Yorihiko Kojima) and Mitsubishi Corporation (Korea) Ltd. (Seoul, Metropolitan City, Korea; president and CEO, Tsutomu Awaya). MMSK will work to grow and develop MMC’s distribution, sales and after-sales servicing businesses in Korea.

Starting in October 2008 MMSK plans to introduce the Lancer Evolution high-performance 4WD sedan, Outlander mid-size SUV, Eclipse sports coupe, Lancer sports sedan and Pajero all-round SUV models onto the Korean market. MMSK aims to sell 400 units in the first year and increase volume to 3,000 units by 2010. This is a bold target but the company is sure it can achieve it’s goal.

Korea has started to emerge as a real good opportunity for auto manufacuters to expand their reach. With this new venture, Mitsubishi will be able to take it’s business to an emerging market and benefit from the early experience.

With fuel prices on an never ending rise it is important, now more than ever, to do everything you can to conserve your gas mileage. Recently, while researching the Environmental Protection Agency’s (EPA) website, I came across these four simple tips to improve your gas mileage no matter what you drive.

Here they are:

Drive Sensibly: Aggressive driving (speeding, rapid acceleration and braking) wastes gas. It can lower gas mileage by 33 percent at highway speeds and by 5 percent around town.

Fuel Economy Benefit: 5-33 percent
Equivalent Gasoline Savings: $0.18 - $1.16 per gallon

Check and Replace Air Filters: Replacing a plugged filter improves fuel economy by up to 10 percent, according to the EPA. A vehicle’s air filter keeps impurities from damaging the inside of the engine. Not only will replacing a dirty air filter save gas, it will help protect the engine.

Fuel Economy Benefit: up to 10 percent
Equivalent Gasoline Savings: up to $0.35 per gallon

Keep tires properly inflated: Improve gas mileage by around 3.3 percent by keeping tires inflated to the proper pressure. Under-inflated tires can lower gas mileage by 0.4 percent for every 1 psi drop in pressure of all four tires.

Fuel Economy Benefit: up to 3 percent
Equivalent Gasoline Savings: up to $0.11 per gallon

“Tire pressure is critical,” said Robert Sinclair, spokesperson for AAA of New York. “If you’ve ever ridden a bicycle with low air pressure, you know that extra rolling resistance makes you work much harder. It’s the same thing with your engine.”

For more information try logging on to the EPA’s website called www.fueleconomy.gov. Next time your out try to remember to employ some of these fuel saving tips into your daily routine!

Hows that song go? “Another one bites the dust….” Yup, yet another General Motors franchise dealership is closing it’s doors for good. This time though, it the biggest one of them all.

The world’s largest Chevrolet Dealer, Bill Heard Enterprises, has gone out of business. The company said in a recent statement that it is closing the doors at its 13 stores today. The combination of high fuel prices, canceled floorplanning from GMAC Financial Services, a reliance on sales of pickups and SUVs, a soft national economy and struggles in local markets had already been troubling the company, which on Sept. 12 closed its store in Scottsdale, Ariz.

“The company had worked to develop and implement a strategy and a course of action that would enable it to operate successfully,” the company statement said. “However, the conditions necessary to sustain the business through the current challenges were not present.”

In the end, Bill Heard Enterprises could not raise operating capital and did not secure floorplan financing needed to stay open. The closings will affect about 2,700 employees at stores in Alabama, Florida, Georgia, Nevada, Tennessee and Texas.

Honda is fairing quite well in the U.S. market despite the situation getting worse and worse for a lot of auto manufactures. The company’s lineup of fuel efficient vehicles has been selling in record numbers lately with the advent of rising oil prices and the ever climbing costs associated with personal transportation.

Still, Satoshi Aoki, chairman of Honda Motor Co., has stated his concern for the psychological effects this is having on their consumers. “Fortunately, in the case of Honda, our product lineup tends to be more fuel efficient compared with the industry, so we are receiving good acceptance by the customers for fuel-efficient vehicles,” he went on further to say; “So compared to maybe the industry average, we are doing better. But naturally, the psychological impact on our traditional buyers is something which we are rather concerned about.”

What he means exactly, I don’t know, but I can only guess that he is expressing concern because he probably does not want to be blamed for the American auto industries fall from grace. Honda will ultimately become a target for blame from a lot of people, for the way the American auto industry is headed. Mr. Aoki’s comments show an incredible amount of foresight on the part of the company’s leader, into what could become a topic for concern in the future.

Courtesy Pontiac-Buick-GMC, an AutoNation Inc. dealership in Longwood, Fla., shut its doors Thursday, Sept. 25 for good. The dealership is part of the AutoNation Group, the largest auto retailer in the country.

But company spokesman Marc Cannon stated that the shutdown had nothing to do with instability in the financial markets. Instead, he said, the closing was part of AutoNation’s long-term strategy to reduce the number of dealerships in saturated markets. “It was the right time to move on closing the dealership,” Cannon said. “As the market changes, AutoNation must be willing to adjust and shift its portfolio.”

Cannon said AutoNation believes that getting the dealership numbers right keeps the company “firmly in the black.”

AutoNation ranks No. 1 on the list of the top 125 U.S. dealership groups with new-vehicle sales of 328,963 in 2007. The Fort Lauderdale, Fla.-based company has a concentration of stores in Florida and California.

Dodge hasn’t even launched it’s newest Ram, but it’s already packing discounts and incentives. The company is launching the 2009 Ram 1500 pickup with incentives of up to $1,000. The $1,000 is available on crew and quad cabs. Customers buying a regular cab get $500 consumer cash. The incentive runs through Sept. 30th, oddly enough, same as GM’s employee discount.

Though Dodge has not advertised the incentive, customers visiting dodge.com can find it. Dodge dealers are still working to sell remaining 2008 Rams, which carry incentives of as much as 40 percent! That’s some heavy discounting, but it’s neccessary to move old stock from dealer lots.

“You need money on it because you’re trading somebody out of a truck they’re upside-down in,” said Earl Hesterberg, whose Houston-based dealership chain owns eight Chrysler-Dodge-Jeep stores. Because used-truck values have taken such a pounding, he said, “you’re going to need some money to make a deal.”

His next quote, I think, really sums up the whole truck situation here in the states:

“I don’t think it’s a sign of weakness on pricing. I think it’s a sign of what’s happened on the used-truck market.”

Chrysler LLC has seen better days. Just days after the announcement that the company has lost over $400 million so far this year, they announced they were going to lay off over 300 salaried workers.

Chrysler is turning to layoffs to reach the 1,000 salaried job reductions target that it announced in July. While Chrysler spokesman Dave Elshoff declined to comment, it is obvious that things aren’t looking too good for the once powerful American auto manufacture.

Chrysler offered retirement packages and other incentives for salaried workers to leave after the July announcement of their intended plans. The car maker had 18,500 salaried workers worldwide as of June 30, with about 9,500 of those employed in the Detroit area.

HUMMER revealed official pricing today for its new H3T midsize pickup truck. Arriving in dealerships this fall in the U.S. and Canada, the new H3T will start at $31,495, including a $745 destination charge.

This all new HUMMER variant is based on the architecture of the popular H3, and features a five-passenger crew cab and a separate five-foot-long bed. The H3T features an extensive list of standard equipment, including full-time electronic four-wheel drive, a standard integrated bedliner with built-in storage, a cargo management system plus HUMMER’s premium five-year/100,000-mile powertrain warranty plan.

“The H3T carves out a new segment in the midsize truck market, providing an outstanding combination of functionality and capability,” said Martin Walsh, HUMMER general manager. “This will be the ideal truck for the buyer who need a truck’s functionality for his or her lifestyle pursuits, but is looking for an alternative to the full-size truck.”

The H3T stands apart from other trucks in the marketplace as it is the only midsize truck to come standard with full-time four-wheel drive, 32-inch tires and functional skid shields. It also is the only truck in it’s segment to offer front and rear locking differentials.

The 2009 HUMMER H3T is scheduled to arrive in dealerships in September 2008 as a 2009 model.

Mazda’s newest sedan, the Mazda6, promises to keep going from where the successful old model left off. With it’s combination of newly found refinement and power, it’s sure to win over a slew of new consumers. Now Mazda has finally released the official pricing scheme for this new model.

The 2009 MAZDA6 sports sedan will start at $18,550 for a MAZDA6 i SV, equipped with a 170-horsepower 2.5-liter I-4 engine and a six-speed manual transmission.  Pricing for the 2009 MAZDA6 s, powered by a 273-horsepower V6 engine and six-speed Sport AT automatic transmission begins at $24,130.  Destination charges for all 2009 model-year Mazda vehicles are $670, $715 in Alaska.

The 2009 MAZDA6 will be available as a four-door sedan and in four trim levels: SV (I-4 models only), Sport, Touring and Grand Touring, and with varying levels of standard and optional equipment. All models will come with these features as standard equipment: air-conditioning, power windows, mirrors and door locks, anti-lock brakes (ABS), dynamic stability control, traction control, frontal and seat-mounted airbags for driver and front passenger, side air-curtain airbags for front and rear seat passengers and a tire-pressure monitoring system.
Jim O’Sullivan, president and CEO Mazda North American Operations (MNAO) had this to say of the new Mazda6: “This is the most important new vehicle Mazda has launched in a decade. Bringing any new car to market at a competitive price has always been critical, but seldom more-so than today.  Customers are looking for that rare combination of style, dynamics, economy and a great price, and the all-new 2009 MAZDA6 delivers on all levels.”

The 2009 MAZDA6 will be available at dealers across the U. S. starting in late August, 2008. All the cars will be sold and badged as 2009 models.