Saturday, August 2, 2008

On the subject of interiors in new product, feast your eyes on this splendid review of Journey, dated Aug. 2, and focus your attention on the next-to-last paragraph, beginning with “Cabin design is stylish, with most materials and surfaces notably higher quality than some other Dodges….”

Let there be no illusions among the rational people on this blog that the irrational ones will now recant their ignorant obsession with media hostility to Chrysler. When 300 was named Motor Trend’s Car of the Year, I thought it would be the end of that ill-informed syndrome. But it will always be with us. Chrysler products get favorable media reviews when they earn them on their own merit, period.

A few other points worth nothing: The 6th paragraph (”In most aspects, the 2009 Journey hits the target, but with more refinement, it could have been nipping at the smoothest of this class, Toyota Highlander, Mazda CX 9. Honda Pilot, Hyundai Veracruz and GMC Acadia and its siblings.” Is there anyone out there who has driven one or more of those vehicles and also driven a Journey who can dispute the point that while Chrysler has come a long way, it still has a way to go to catch up with the best in the industry in refinement? That reputation hurts in the market place and has got to fixed.

COMMENTARY: PETE SZILAGYI

A desirable Journey
Dodge's midsize crossover is capable of taking the economy-minded where they want to go
By Pete Szilagyi SPECIAL TO THE AMERICAN-STATESMAN Saturday, August 02, 2008

As $4 gas becomes entrenched and reality barges rudely into the car market, drivers will reject uni-taskers and ask that vehicles serve several functions and do it with some economy.
In other words, if the family car or SUV can't pull its own weight and lots more, it's outta here.

That means trading in sports coupes and heavy SUVs for compact hatchbacks and crossovers.

Dodge's latest multitasker, the midsize Journey, isn't quite the Swiss Army knife of crossovers, but it incorporates desirable features Chrysler learned with its minivans and large trucks.

Base price for the 4-cylinder, front-drive Journey is a reasonable $19,985. It is also available in all-wheel drive.

In most aspects, the 2009 Journey hits the target, but with more refinement, it could have been nipping at the smoothest of the class, the Toyota Highlander, Mazda CX-9, Honda Pilot, Hyundai Veracruz and General Motors' GMC Acadia and its siblings.

As it stands, the Journey should compete well in price competition and styling. It's distinctive enough for a vehicle late to the segment when the obvious design elements were already in use.

Achieving economical operation is confounding to any 4,000-pound, seven-passenger SUV, so a buyer's goals should be realistic. My several days in a Journey SXT with the optional 235-horsepower, 3.5-liter V-6, 6-speed automatic were close to the EPA estimate, 19 mpg, in fairly easy city and highway driving. That's typical for midsize crossovers, although the relatively expensive Highlander Hybrid is the exception, achieving mileage in the upper 20s.

The Journey's independent suspension, front and rear, contributes to predictable handling. Freeway expansion strips and sharp pavement creases caused unpleasant thuds in the cabin. Though not especially light or sporty, the V-6 Journey slips through traffic with competence, and it is as easy to park as any midsize crossover. Based on my long, comfortable interstate highway drives, the Journey is a solid candidate for family road trips.

The Journey SXT scores well on user-friendliness, with roomy, accommodating seats, a true three-across back seat with adjustable backrests, stacked glove boxes with one of them cooled for beverages, clever under-seat and floor storage bins, an optional DVD system, an iPod plug, an integrated child booster seat, doors that open unusually wide, elevated rear seats and optional third-row seating for two children.

Cabin design is stylish, with most materials and surfaces notably higher quality than some other Dodges. The switchgear felt cheap, and the expansive black dashboard in my Journey test unit heated like a griddle when parked in the sun.

Thankfully, the air conditioner cooled adequately, even on humid 95-degree afternoons. Short drivers should note that the Journey's dashboard is quite high and can limit forward visibility. The optional height-adjusting driver's seat is a necessity.

In his 27 years of writing a column for the Austin American-Statesman, Pete Szilagyi has driven more than 1,400 new cars and trucks. You may reach him at petesz@mac.com.
Comparison shopping
Three other vehicles in the Dodge Journey's class:
2008 Hyundai Veracruz
Highs: Styling, cabin design, luxury feel, performance.
Lows: Not much personality.
2008 GMC Acadia
Highs: Appearance, cargo flexibility, power train, attention to detail.
Lows: Too heavy.
2008 Ford Edge
Highs: Styling, interior, power train, utility.
Lows: So-so fuel mileage.
According to Pete ...
Target audience: Active families shucking their Durangos, Sequoias and Tahoes; minivan haters attracted to Journey's styling and minivan features; grandparents anticipating trips with the kids.
Highs: Stance and appearance, comfort, roominess, convenience features, safety gear, price.
Lows: Thudding suspension, switchgear, backing visibility.
Bottom line: The 90 percent solution in a tough field of 98 percenters.
EPA rating for greenhouse gas emissions (10 is best): 4


harold zeigler

“New Compass and Patriot Interior Photos Leaked”


Friday, August 1, 2008

In lieu of leases, Chrysler wants you to "Shop 'til you Drive"




Chrysler's departure from the leasing game certainly isn't going to help dealers move stale product off their lots, so the automaker has announced a new sales program unimaginatively named the "Shop 'Til You Drive Sales Event." (What does that even mean?)



What'll it take to get you into a new Chrysler, Dodge or Jeep vehicle?Well, aside from $2,000 cash back on "select retail purchases," Chrysler is offering an August-only, 72-month, zero-percent APR financing deal on many of its slow-selling models that aims to make monthly payments approximately the same as a 36-month lease.



Additionally, pricing on Dodge, Chrysler and Jeep vehicles has been slashed, with the Ram dropping 40-percent of its MSRP, Aspen hacked by up to 25 percent, Town & Country minivans cut by 24 percent and Grand Cherokees dropping 28 percent.



Chrysler will also try to get lessees back into dealerships by offering special "loyalty incentives" that will be applied to a new retail purchase, along with waiving the $425 lease disposition fee.

harold zeigler

Wrangler always on the list!


Top 10 Vehicles with the Highest Resale Value

Cars shed dollars with each mile their wheels turn. But some hold their value far better than others. Find out why and what you can do to minimize losses.
Published on 2008-07-31 -->by JEFF ZYGMONT, ForbesAutos.com


You can't call them "good investments" because they inevitably depreciate. But the models in our ranking of the top 10 vehicles with highest resale value do amount to sensible purchases for the way they minimize the dollar losses associated with owning and maintaining a vehicle.

The models on our list retain a higher percentage of their original purchase price than any other car you can buy. But high gas prices are having a dramatic effect on prices — so much so that in just a matter of weeks, the list of the top 10 vehicles with the highest resale values will look different.

"Economy cars are improving," says John Blair, chief executive officer of Automotive Lease Guides (ALG), a market research firm headquartered in Santa Barbara, Calif. "The outlook for small, fuel-efficient vehicles is much brighter today versus a year ago. And the outlook on SUVs has changed dramatically in the other direction."

Basically, fuel efficient vehicles are gaining value and non-fuel-efficient vehicles are losing value.
So it's no surprise that the car that tops this ranking, the playful Mini Cooper, is one of the most fuel-efficient models on sale in the United States. It will hold more than 60 percent of its value after three years of ownership.

Sensible but Fun
Even though rising fuel prices have caused fuel economy to have a greater impact on resale values, most of the models in our ranking don't ask you to sacrifice in the service of fiscal good sense. They are fun and rewarding to drive, each in their own way.
Some express youthful nonconformity, like the Scion xB, Nissan Rogue and Volkswagen New Beetle Convertible, numbers 7, 9 and 10, respectively. The Infiniti G37 Coupe, BMW 1 Series and Audi S5, which rank second, third and tenth, combine sophistication with spirited energy.
Volkswagen's R32, at number No. 5, exudes athletic exuberance. The four-wheel-drive convertible Jeep Wrangler, No. 4, invites rugged adventure.

Even the two top-10 finishers that appear purely practical, Honda's CR-V and Civic Hybrid, are far from pedestrian. They're smartly styled, well engineered and have a refined driving experience. The Civic Hybrid adds technological charm to those attributes.

Smart styling contributes a lot to a vehicle's resale value, says John Blair, chief executive officer of ALG. That's due to fundamental market dynamics: supply and demand.

A model that is uniquely attractive will generate more demand from people shopping for used cars. Naturally, that greater demand pumps up its resale price. Thus, ALG puts a heavy weight on appearance when it estimates the residual value of new vehicles.

Residual value is analogous to resale value, but it's not the same thing. It's the price that a model in average condition is expected to take in when eventually it is sold at a wholesale used-car auction. The retail value of a vehicle — the price a consumer pays to buy it — varies a little from model to model but generally runs about 15 percent above the ALG residual value, Blair says.
The firm's estimates are used by automotive lease writers to determine how much a model will be worth when its lease expires. Our top 10 vehicles with the highest resale value — there are actually 11 models on the list, thanks to one tie — are based on ALG residual values expressed as a percent of the original purchase price. All are current, 2008 models. The ranking excludes specialty cars produced in low numbers.

All About Perceptions
In addition to a vehicle's styling, its manufacturer's reputation for quality has a big impact on how much value it retains, Blair says.

"The No. 1 influence is certainly a vehicle brand and the perception of the brand," he says. "The used-car buyer is looking for a vehicle that's not going to be a maintenance headache for them. If you have a strong brand, that has a real positive influence on the residual value."

Thursday, July 31, 2008

GMAC posts $2.5 billion loss in 2nd quarter

GMAC posts $2.5 billion loss in 2nd quarter

NEW YORK -- GMAC Financial Services says it swung to a steep second-quarter loss as slumping vehicle sales and a weak credit and consumer environment weighed on its results.

GMAC says it lost $2.5 billion in the second quarter compared with a profit of $293 million in the same quarter last year. It says its Residential Capital LLC lending division's loss widened to $1.86 billion from $254 million.

GMAC also says it took a $716 million impairment charge during the quarter due to slumping vehicle sales and lower used vehicle prices.

Chief Executive Alvaro G. de Molina says volatility in the mortgage and credit markets significantly weakened results for the quarter.

The company is majority owned by private equity firm Cerberus Capital Management but General Motors Corp. still holds a large stake.