Cash For Clunkers in Seattle

After the recent announcement that the Cash for Clunkers program was active again, we at Seattle Auto have been fielding lots of emails from visitors wondering if their car was eligible. To be honest, even we were unsure of how the program worked, so we did a little research and here’s what we found out.
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Seattle Car Drivers are Spending Less Time in Traffic?

Gas prices go up, more people out of work equals fewer folks on the road? It would seem to make sense. And according to a national study done by the Texas Transportation Institute, those factors have caused for less congestion around the country. Read more

Car Rental Tips from a Traveling Journalist

Between a career which has traveled me all over the U.S. and an adventurous spirit that leads me to wander off in my free time, I’ve probably rented more cars in the past five years than most people will rent, collectively, in their lifetimes.

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Are Seattle Car Dealers Getting Desperate?

“I got my Civic at $100 over invoice!” beams Leonard L., a Redmond resident who picked up a new 2009 Honda Civic earlier this year. Leonard is among the growing group of recent car buyers who have snagged up great deals as local Seattle car dealerships have begun feeling the economic recession.

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The Best 2009 Cars for the Money

Everyone is looking for value. Gone are the days when you spend too much on features and buy something loaded with items you don’t need. The Seattle area driver for the most part is smart. In today’s Seattle car market, most people looking to purchase a vehicle are educated, and aren’t willing to spend frivolously. Read more

K1 Speed in Redmond

It’s Friday night and you’re feeling the need for speed. You look over at the driver next to you and make a scowl. He shoots a looks back and revs up the motor in response. It’s game time. No, this isn’t a late night race on Highway 167, it’s clean bit of office rivalry over at K1 Speed in Redmond.
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Washington Cracks the Top 10 in Uninsured Motorists!

‘What do you mean you don’t have any insurance?’

If you’ve ever uttered this phrase after a car accident, chances are you weren’t happy about it. Surprisingly this happens a lot in the state of Washington.

According to the Insurance Research Council, in 2007 Washington had the 10th highest uninsured motorist rate in the entire country. The national average for uninsured motorists was at a rate of 13.8% in 2007, with the state of Washington owning a rate of 16%. Read more

Subaru, Seattle’s Unofficial Car Maker!

Obama’s Emissions Plan Fits Seattle Drivers

President Barack Obama made his message clear when he set new emission standards for new cars starting in 2011. Cars will be cleaner and more fuel efficient than ever before. The president will direct the Enviornmental Protection Agency to review whether California, Washington along with other states can impose stricter emission standards to battle green house gases. Read more

The Big Automakers Take a Hit, Subaru Shines!

Reminiscent of an Oklahoma City Thunder game, the numbers were just plain brutal and ugly. 2008 auto sales were at their lowest in over a decade. Even old reliables like Toyota and Honda couldn’t escape the bad economy and lack of consumer confidence.

All of the major US and Japanese auto makers finished the year with a thud, a very quite thud. The only company to offer a little sunshine was Subaru. The Japanese based company was the only one to see a positive increase in December sales.

According to an Associated Press article Chrysler sold 30 percent fewer cars in 2008. Ford sales numbers were down 21 percent than the previous year. While Toyota dropped 16 percent and Honda was also down at 8 percent in overall 2008 sales. The only major automaker who saw positive gains in 2008 was Japanese company Subaru.  Subaru sales went up 0.3 percent, not a lot of gain, but an improvement non the less. Buyers flocked to top selling models like the Forester and Impreza.

What’s all those sales numbers mean for Seattle drivers? Maybe more deals to be had, and maybe more Foresters and Imprezas on the road. Subaru could end up being the unofficial car of Seattle – just don’t forget the canopy.

Chevy SUV Dies During PR Stunt to Crush Japanese Car

Last Friday, in an attempt to send a message to buy American cars, a Chevrolet dealer arranged to have a modified Chevrolet Suburban drive over a Honda Accord. The stunt was derailed however when the SUV blew a hose and failed to crush the truck. Utterly stupid?  Just a little.  Here’s the excerpt from the full article:

HILO, Hawaii – A Hilo Chevrolet dealer who tried to crush his Asian auto competition found the stunt a little harder to pull off than expected.

Island Chevrolet general sales manager James Severtson arranged for a Chevrolet Suburban SUV outfitted with massive tires costing $5,000 apiece to drive over a Honda Accord.

On the first attempt Friday, the monster truck blew a hydraulic hose and leaked vital fluid while the Honda remained intact and ready for more.

I drive a Suburban and I also drive an Accord. I would never want to crush either one of them, because they serve different purposes. That’s why it irks me to no end to see this type of cowboy attitude, especially in the middle of the auto bailout. We don’t need more chest thumping about American cars, we need reflection and re-organization.

And seriously, who in their right mind thinks the Japanese make bad cars? The era of the 70s and 80s where American automakers and consumers laughed at shoddy Japanese cars is nearly three decades ago. The fact that anyone can even think that the Big Three make more reliable cars than Honda or Toyota is laughable at best and plain sad at worst.

If Americans want to take pride in their vehicles, then it’s time for the automakers to sit back and do some reflection on why the industry they created from scratch is now in the dying throes of bankruptcy. The problem is that the automakers are not doing that reflection, but instead, blaming just about anyone they can for their current problems: the economy, the union, gas prices, picky consumers and yes, now the Japanese. It’s a sad day when a proud American industry is so in denial of it’s own faults that it resorts to pointless name calling to save face.

Domestic car enthusiasts are probably wondering where are the Henry Ford or Lee Iacocca of our modern times to lead us through this financial mess among our automakers. The answer, unfortunately, may be that those comparable visionaries are here today – they just work on the other side of the ocean.

It’s Done, a $17.4Billion Bailout for US Automakers

The US Federal govenment is getting into the car business. With this latest attempt to save the American auto industry, the Fed will partially own a stake in the Big 3.

What will this do for the future of American cars? 

For the long term is this good or bad?

Will every American car soon look like FBI vehicles?

For the immediate future it is needed, but keeping an eye on the long term effects will be interesting.

Here’s what Debb Reichmann wrote in the Associated Press

WASHINGTON (AP) — Citing danger to the national economy, the Bush administration approved an emergency bailout of the U.S. auto industry Friday, offering $17.4 billion in rescue loans in exchange for deep concessions from the desperately troubled car makers and their workers.

The Feds would then have the option of becoming a stockholder in the companies, very similar to that of the major banks. That would somewhat nationalize the US auto industry. 

A nationalized car industry, how will this effect local car dealers, if it does at all?

See the full AP article

 

Snow in Seattle Strikes Fear in Drivers!

Folks in the Northwest are known to be tougher than most. Be it rain, earthquake, bad economy, or housing crisis, we can shake off most anything. However the one thing that will have most Seattlites hopeless and shivering in the fetal position is snow.  

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Kelly Blue Book Best Resale Value for 2009

Kelly’s Blue Book is the automotive Bible for new and used cars. Each year they compress a list of the vehicles with the best resale value. Their list is based on projected values after five years (the average rate of ownership). Notice that this list has cars that are extremely popular in the Seattle area. Read more

Why Toyota Wins From the Auto Crisis

From a blog posting I just read:

Do you know how many hourly jobs GM has laid off from 2006 to July 2008? Take a guess. How about 34,000? And now, they’re talking about another 5,500 layoffs.

…

OK, here’s a better question. How many hourly jobs has Toyota’s American production system laid off in the same time frame? Zero. That’s right. ZERO. How? Isn’t Toyota experiencing the same slow down in auto sales as GM is? Yes, it is. And yes, Toyota has halted production at its Texas and Indiana plants for the past 3 months. But the 4,500 people who work at those plants have not been laid off. 

 

The answer: Toyota has a special culture, deep-rooted values, and respect for their workforce. Toyota’s tradition is to NOT lay off employees during hard times. This tradition hasn’t really been put to the test until now. And Toyota has stuck to its guns and its values.

“This was the first chance we’ve really had to live out our values,” says Latondra Newton, general manager of Toyota’s Team Member Development Center in Erlanger, Ky. “We’re not just keeping people on the payroll because we’re nice. At the end of all this, our hope is that we’ll end up with a more skilled North American workforce.”

 

For the full article: What Toyota knows that GM doesn’t

My thoughts on this is two fold. First, I’m impressed with Toyota as a consumer. Second, I’m sentimental to the fact that this really is the end of the American car industry. 

Back in the 80s, when America stopped importing “cheap” Japanese cars and Lee Iacocca was making history at Chrysler, the American car industry seemed pretty much unstoppable. The “Big Three” were called that because they were actually the biggest – not because they are the only ones left standing – as is the case today. 

Through mergers and acquisitions, the industry, even with all it’s clashes with the union, the auto industry had the history of supporting it’s workers and ensuring a career out of tens of thousands of skilled laborers at a time that many corporations dumped their workers en masse. 

But that was then and this is now. 

In a surreal flip, it would now appear that those clunky Japanese car companies are the industry leaders today; and have been for more than a decade. While Detroit was drinking the oil-is-forever koolaid and pumping out beefier and bigger engines, the Japanese were hard at work perfecting their engines and builds to six-sigma and improving efficiency.

With gas hitting $4 a few months ago and the credit crisis, it wasn’t so much that the Japanese won the bet, but rather, Detroit found itself with an empty hand. Saddled with factories meant to churn out beefy SUVs, Hummers and trucks, the new paradigm in energy and economics poured cold water all over the roaring party up until this point. 

GM is losing a billion dollars a month and will likely buy out Chrysler. Layoffs in the 30,000 – 40,000 range are to be expected, along with 12 factories closing. Morale is no doubt at an all time low, with every worker wondering if he’s next on the cutting block. Even if GM is able to magically survive with an infusion of cash (bailout), the Volt is still years out and a grasp for straws.

Meanwhile, Toyota has taken a page straight out of the American automaker book by proving its loyalty to the company workforce. Though Toyota is halted on much of its production, they are taking the down time to train their workers to be even better skilled, educated and efficient workers. When the economy picks up again, Toyota will be the equivalent of a fully rested team going to the playoffs against a miserable and beat-up team that has just played 10 losing games in a row. It’s no contest who will win. 

If the Seattle Auto Show was any indication, the consumers have already voted, as we saw crowds around Toyota, Honda and Jetta. All the while, the sprawling 2-ton Ford F150 rotating 360 degrees might as well been invisible. Chevy and Escalade Hybrids were looked on more with a sense of derision or perplexed bewilderment rather than consumer curiosity (though this is Seattle). 

The new automotive landscape is already here – it’s just across the sea. 

 

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