Gasoline price rises give automakers whiplash

With U.S. gasoline prices poised to revisit the $4-plus per gallon peak hit in 2008 just before the recession, sales of new smaller cars introduced since then would seem assured.

But as analysts and executives said at the Detroit auto show this week, the only sure thing is that today's forecasts are wrong -- it is anyone's guess by how much.

The wild fluctuations in the price of gasoline and of the materials that make up the thousands of car components such as steel, aluminum, copper and platinum can wipe out years of design and manufacturing planning within days.

In the summer of 2008, demand for small cars such as the Toyota Corolla, Honda Civic and Ford Focus far outstripped the immediate inventory as gasoline prices shot higher.

However, a quick pullback in gas prices as the deepest economic downturn since the 1930s took hold left newly built small cars to languish on dealer lots.

"We do believe at Ford that the price of gasoline is going to march upward over time," Ford Motor Co. Executive Chairman Bill Ford said on the sidelines of the Detroit auto show. "And we've built our whole entire strategy around that."

The rise in gasoline prices has been slower thus far than in 2008 -- when it jumped 32 percent from January to $4.11 per gallon in July, then fell back to $1.65 by year end.

The average price of U.S. gasoline is more than 25 percent below where it was then. Still, executives say they are already seeing a switch to smaller vehicles.

"We're seeing consumers quickly shift back to a higher mix of fuel-efficient cars and now trucks are actually starting to slow down," said Bob Carter, U.S. market brand chief for Toyota Motor Co. "Sixty days ago, we found the opposite happening."

Some in the industry predict a booming market for smaller vehicles, while others point out that the surge during the last gas price spike evaporated as soon as prices started to slide.

Others still warn that the higher cost of key commodities, primarily rare earths and metals, will be passed on to consumers at a time when the industry is just starting to work its way back from the slump that forced General Motors Co. and Chrysler into government-led bankruptcy in 2009.

"The costs will be higher," said Matthias Mueller, CEO of German luxury automaker Porsche. "But at the end of the day, all of our competitors face the same problem as us."

Summer of discontent

If anything could sum up the challenges of selling smaller cars in the U.S. market, it would be the gas spike of 2008. Many Americans abandoned a long-standing love affair with gas-guzzling SUVs and trucks to buy cars as oil made its historic run to $145 per barrel. It is around $92 a barrel now.

Now there are signs that consumers are downsizing again with gasoline at a national average of $3.09 as of Jan. 11, according to the U.S. Energy Information Agency.
For more info- http://www.autonews.com/apps/pbcs.dll/article?AID=/20110115/OEM/301139945/1429

The Kids Are Alright: Inside the World of Youth Racing — Sport

It's so hot inside the tent that Mickey Mouse must take a break every 15 minutes to properly hydrate. An assistant leads His Mickeyness to a nearby but concealed location because, at Walt Disney World in Orlando, it is assumed that actually seeing the mouse head pop off and some dripping-wet cast member inside the costume guzzling Gatorade could be so traumatic for children that lawsuits may result. It has happened before.

By now, everyone is ready to go home, but the trophy presentation is an integral part of any United States Auto Club (USAC) national event. This is, after all, the first-ever Mopar .25 Nationals, a genuine big-deal motorsports event for quarter-midget-racing kids, many of whom are still young enough to put out milk and cookies for Santa. Since the racing was held at Walt Disney World — or, more accurately, on a vacant parking lot at Walt Disney World Resort — it was assumed that the Disney cast of characters would present trophies. Mickey Mouse must have drawn the short straw, because he is the only one who showed up.

These are tough, plucky kids — the best of 165 from as far away as New Mexico — who raced their way into the awards-ceremony tent by wheeling their quarter-midgets around the tri-oval racetrack that is 1/20th of a mile long. Since the 1930s, quarter-midgets — which are certainly larger than one-quarter the size of a regular midget race car but compete at speeds that are about one-quarter as fast, on a track that is one-quarter as long -- have been the launching point for hundreds, perhaps thousands, of racing careers.....
For more info- http://editorial.autos.msn.com/article.aspx?cp-documentid=1173212

EPA delays decision on E15 use in 2001-2006 model-year vehicles

When the EPA approved the use of gasoline blended with 15 percent ethanol content (E15) for model year 2007 and newer vehicles in mid-October, critics immediately chimed in with a wave of concerns. Some argued that drivers would have a difficult time discerning which fuel to pump into their vehicles, while other were concerned that insufficient testing had been conducted by the EPA and urged retailers to limit the sale of E15 to flex fuel vehicles only. For nearly two years, the E15 battle has waged on, with supporters convinced that increased ethanol content would be suitable for all autos and opponents demanding more tests.

The E15 battle is far from over. The EPA's next move is determining whether or not the gasoline-ethanol blended fuel is acceptable for 2001 to 2006 model-year vehicles. The EPA's decision was initially expected to come in December, but due to some mechanical failures in test vehicles unrelated to the fueling system, the Energy Department will require more time to analyze E15 use in older vehicles and the EPA will be forced to push back its decision until January.
For more info- http://www.autoblog.com/2010/11/23/epa-delays-decision-on-e15-use-in-2001-2006-model-year-vehicles/

Car Accident Statistics

Car accident statistics indicate that at least four people involved in car accidents die every hour. These accidents could be due to the fault of the driver, the other driver, or due to a faulty vehicle. The important thing to consider is the number of deaths occurring every day, excluding the people involved in car accidents and sustaining severe personal injuries

.
The main causes for car accidents are reckless and negligent driving and alcohol. Teenagers, according to the statistics, cause most car accidents Inexperience coupled with irresponsible behavior and a lack of respect for the safety precautions are the main causes for such a high number of teenage car accidents.
Another reason is the inattentiveness of the driver. Many people talk while driving, which might prove to be fatal because it distracts the driver from the road. Even though hands free mobile phones are the latest craze, the driver would be unable to concentrate on the road while on the phone. The best option would be to park and then take the call, or not take the call at all while driving. These rules have already been implemented in a number of states.
Inattentiveness can also be caused due to alcohol, drugs, or the driver being distracted by music in the car. This might prove to be perilous to other drivers on the road and might result in either distracting them with reckless driving or causing side or rear end collisions due to inattentiveness. Such negligence can even cause pileups in highways and must be avoided at all costs.
Car accidents can be very traumatic, sometimes affecting the person for the rest of their life. Other than the physical injuries that may result due to the accident, mental pressure might also result. A few precautions can eliminate the prospect of accidents on the roads and provide a safety net. It is advised to follow the safety road rules and not drive while on the phone or while on drugs or alcohol.
Article Source: http://EzineArticles.com/?expert=Eric_Morris 

2010 VOLVO XC60 Recall

Volvo is recalling certain models of the 2010-2011 S80, XC70, 2001 XC60 and 2010 V70 vehicles.  They stated that there may be an intermittent fault in the driver’s airbag clockspring wiring connector for the supplemental restraint system.

In the event of a crash, the driver’s frontal airbag  may not deploy as intended or at all, and therefore will not be able to properly protect the driver, increasing the risk of injuries.  Dealers will install a metal shim in the driver’s air bag clockspring wiring connector.  This service will be preformed free of charge.

This article taken from- http://www.allworldauto.com/blogs/2010/11/08/2010-volvo-xc60-recall-4/

Find of the Day: 1999 Sbarro GT1 show car

GT1 road cars are hard to come by. Manufacturers are required by some motorsport sanctioning bodies to homologate their racecars with production versions, but these often fetch millions of dollars and are only made in extremely limited quantities. All the more so for Sbarro's GT1 show car.

Built to celebrate Mercedes' victory at Le Mans in 1999, the GT1 is a one-of-a-kind (well, two of a kind if you could the twelve-cylinder GT12 that followed the next year) concept built using many Mercedes components. The biggest is the 7.4-liter V8 engine producing 450 horsepower – which may not seem like much for such a big engine, but a huge amount of power by any other measure... especially over a decade ago.

The engine sits as a stressed member of the competition-style chassis, with a composite monocoque acting as its centerpiece, propelling the GT1 to sixty in 4.9 seconds and on to a 200+ mph top end. The cabin features two seats moulded directly into the body and covered in Alcantara (the pedals adjust to compensate) and are accessed through gullwing doors – another Mercedes tribute. And of course the styling is pure Sbarro. But the best part is that this one-off is up for sale.
This article taken from- http://www.autoblog.com/2010/11/08/find-of-the-day-1999-sbarro-gt1-show-car/