Did You Know The Cadillac CTS Is Motor Trend’s Car Of The Year?

Well, it has finally happened. General Motors has taken home the Golden Calipers as Motor Trend Magazine’s coveted Car of the Year for the first time since the Chevrolet Corvette won back in 1998. According to Motor Trend, “GM has leapt…into the inner sanctum marked ‘The World’s Finest Cars’. For that remarkable achievement, and for making us grin like lottery winners every time we drove it, the Cadillac CTS is our enthusiastic choice for 2008 Motor Trend Car of the Year. Not since Neil and Buzz spiked Old Glory into the lunar dust in 1969, have red, white, and blue ambition and technological prowess looked so good.”

Motor Trend Continues: “The CTS’s winning ways go far beyond its fetching façade. Not only is the CTS the star of a new GM revival, (including such standouts as the 2008 Chevy Malibu and Buick Enclave just to name two) it is a true world car, tested from the Nurburgring in Germany to China, and sold across the globe. Base price is just $32,990, including a 263 horsepower VVT V6, (a 304 horse direct injection version is optional), 8 speaker Bose Audio, 17 inch wheels, and dual zone climate control. By comparison you’ll pay over $33,000 for a base BMW 3 series sedan with just 230 horses, and north of $45,000 for the more comparably sized BMW 528i. GM’s naturally aspirated direct injection V6 enables more power than the twin turbo BMW 535i.”

Cadillac’s new CTS has a lot of things that make it stand out. A 40 Gigabyte hard drive that will play thousands of songs you have stored on it, is available. Or you could record programming directly from your Bose sound system. Ambient lighting offers the ultimate in interior lighting, making it easy to read gauges and find the controls you are looking for, while not compromising your view of the road. Adaptive forward lighting will provide the best possible view of the road ahead at night, giving you a visual lead into turns. An optional pop-up eight-inch, full screen VGA rises out of the center stack. There is also a two row, ultra view sun roof system, available infotainment system on par with the best in the world, and optional “pipe lights”, positioning lamps that deliver distinctive nighttime aesthetics. As well there is OnStar, which can save your life by calling emergency personnel and dispatching them to your location in case of an accident.

As the commercial says, “When you turn your car on, does it return the favor?” The CTS definitely does. I believe Motor Trend put it best when they said, “News flash to automakers in Germany and Japan: The Eagle has landed.”

GM’s Green Tech Is Better Than Toyota’s

GM’s Green Tech Is Better Than Toyota’s

At least that is what Mercedes, Chrysler, and BMW think. I am admittedly proud of GM and, for obvious reasons, a bit more than prejudice in favor of the company that manufacturers most of what I sell. In this case I am quoting from an article published by Business Week. The following is some of what they had to say:

That’s right, GM , once a laggard in fuel efficiency technology, is making its nemesis Toyota, the undisputed image leader in fuel efficient transportation, take notice by starting a new and legitimate rivalry for the next generation of hybrid trucks, SUV’s, as well as plug in vehicles. Mercedes Benz, Chrysler and BMW all opted in 2005 to adopt GM’s hybrid technology in a four company venture, rather than to license Toyota’s hybrid hardware.

It may surprise many consumers that companies historically as finicky and image-conscious as Mercedes Benz and BMW would opt for GM’s hybrid technology over Toyota’s. After all, internal studies by GM showed that over 70% of consumers viewed GM as part of the problem when it come to climate change and the impact of automobiles on the environment, while Toyota was viewed as part of the solution.

GM began its hybrid technology program in the shadow of Toyota. The Japanese automaker introduced the Prius in 1998. All the while GM worked on diesel electric hybrid city buses with plans to leverage the technology in full size pick up trucks and SUV’s. Toyota was clearly successful in tapping into consumer desires and in developing a green halo that serves it well today. GM clearly underestimated the marketing power of technology.

Toyota’s hybrid system does not work well for towing or carrying heavy loads. That is why Toyota has not introduced a hybrid version of its full size Tundra pickup. The advantage the GM system has is that the engine speed remains constant while the gears are changing. This is extremely important to a truck or SUV when it is carrying a load or going up hill.

GM may not be known yet for “green” vehicles, but it is on a mission to change that. It was GM, after all that developed the EV-1 electric vehicle. According to David Cole, chairman of the Center for Automotive Research, “In a few years GM will probably be earning over half a billion dollars a year from other manufacturers in licensing technology, a big portion of which will be related to hybrids and plug-ins.”

This entire story can be read by going to this link. Your comments are welcome.

DID YOU KNOW THE CHEVY TAHOE HYBRID GETS BETTER FUEL ECONOMY THAN TOYOTA CAMRY?

You read the headline right. The full size SUV Chevy Tahoe and GMC Yukon, when equipped with the dual mode hybrid system, get better fuel economy than Camry. In fact the hybrid version of these vehicles delivers a 50% increase in fuel economy over their standard non-hybrid version. GM announced an EPA estimated 21 mpg city and 22 mpg highway for the 2 wheel drive hybrid Tahoe and Yukon models. That matches Toyota Camry’s 4 cylinder model’s EPA estimated 21 mpg city and beats the 6 cylinder model by 2 mpg. All of this is possible without any compromise in power thanks to the world class dual mode hybrid technology. It is important to note that these estimates are using the EPA’s new more conservative “real world driving” ratings.

America has had a long love affair with the full size SUV. That relationship has been challenged by high fuel prices. Now you will be able to get the benefits of the full size Tahoe and Yukon with the mileage of a mid size sedan. Did I mention power? These hybrid family movers boast a 6.0 liter V8, delivering 332 horse power and 367 foot pounds of torque.

The dual mode hybrid system allows the Tahoe and Yukon to run up to 32 mph on electricity alone. After that speed, the trucks either run on gasoline alone, or a combination of gasoline and electricity. GM’s fuel management system will deactivate cylinders at highway speeds under low load increasing the fuel efficiency. What is really neat about this system is you don’t even know it is happening, and it operates flawlessly, unlike the old 2-4-8 system of the early 80’s.

GM is also planning to use the Two Mode system in its Silverado and Sierra pickups. I am certain as production capacity increases; you will see this system on many more GM vehicles. There is unconfirmed talk about it showing up on some of the mid sized luxury vehicles, but as close as I am to the GM brass, I could only get “I can neither confirm nor deny those rumors” out of my friends.

GM continues to invest heavily in alternative fuel technology. They offer the most E85 capable vehicles in the world that run on a fuel mixture of 85% ethanol, usually from corn, and 15% gasoline. The new Chevy Volt plug-in electric vehicle will run entirely on electricity, with gasoline only being used to run a generator when trips exceed 45 miles. GM also has a fleet of Hydrogen Powered Equinox SUV’s running America’s roads where the only emission is water vapor. I am working with GM to set up a demonstration running a hydrogen vehicle from Washington DC to Ocean City, demonstrating an emission free family vacation.

GM made its announcements about the fuel economy of the new Hybrids at the Texas State Fair. I cannot resist telling you this. Toyota brought its racing display and racing trailer. The racing trailer was towed to the fair not by Tundra, but by a one ton Chevy Silverado. I have pictures.

DID YOU KNOW GM PASSED TOYOTA IN GLOBAL SALES?

The third quarter results are out and GM has outsold Toyota again for the second quarter in a row, moving them back into first place for the global sales crown. GM’s third quarter sales came in at 2.38 million units compared to Toyota’s 2.34 million, allowing GM to edge out Toyota for the annual total. The race is close though with GM’s annual 2007 sales at 7.06 million units compared to 7.05 million for Toyota.

GM continues to tell Wall Street analysts that it will not sacrifice profit to keep the global sales crown, and they seem to be sticking to their plan. GM’s sales gains have come with significantly less consumer incentives than the rest of the domestic nameplates. In fact, many of GM’s best selling products have needed no incentives to boost sales. The industry measures the need for incentives by day supply of inventory. If the day supply is low, then incentives are not needed. GM’s Cadillac CTS, GMC Acadia, Buick Enclave and Chevy Corvette have some of the lowest days supply in the industry. These units are literally selling as fast as they come off the car carrier. Later in November, Chevrolet will ship the new Malibu to dealer showrooms. This vehicle is expected compete head to head with or beat Camry and Accord in quality, styling, functionality, safety and fuel economy, and should be GM’s newest hot seller. It will have a 5 star crash rating and will get an EPA estimated 32 mpg highway rating.

GM credits its continued leadership over Toyota to sales in emerging markets. An example of this can be found in China, where GM’s Buick brand is the best selling import in that country. GM actually sells more Buicks in China than in the United States. All of this global sales talk might give one the impression that Toyota comes close to GM in U.S. sales. While Toyota’s market share has increased in America, it seems to be coming more at the expense of Ford and Chrysler than GM. Toyota has suffered three straight months of year over year sales declines while GM has experienced sales increases over the past two months. The best selling vehicle brand in America is Chevrolet. That brand is almost 100,000 units ahead of Toyota and well over 100,000 units ahead of third place Ford. If you add GM’s other U.S. brands, GM out sells Toyota by close to one million units.

Globally, GM is the sales leader in 12 of 15 world markets. They only lose to Toyota in India, Australia and in Japan, where trade restrictions and tariffs discourage imports. Sales leadership shouldn’t really matter that much. Consumers really just want quality vehicles that reliably perform to expectations. Still, the bragging rights stoke the egos of auto executives including this one. I hope you will forgive me.

DID YOU KNOW GOVERNOR O’MALLEY WANTS TO RAISE THE TITLE TAX BY 20%?

A part of the massive tax increases, proposed by Governor O’Malley, includes a 20% increase in the tax you pay to title a vehicle. Maryland already taxes its residents more than most states when it comes to the fees to title and tag a vehicle. This is because Maryland taxes the total sales price of a vehicle before any rebates, incentives and most importantly the trade-in are deducted from the price. Maryland is one of only five states that tax the total sale price instead of the trading difference. Now, the Governor wants to raise that tax to 6%. All of this is in addition to some of the highest tag and title fees in the nation.

When I first got into the car business, temporary tags were fifty cents. The cost for a title application was two dollars and Maryland Tags cost twenty dollars a year. The fee for a lien for the lender was two dollars for a total of $24.50. The title tax was 4%. To title a $20,000 vehicle would cost $824.50 if you financed the vehicle. By comparison, under the Governors new tax proposal, you would pay a 6% title tax, twenty-three dollars for the title, twenty dollars for the lien, sixteen dollars for the temporary tag, and you will pay one hundred and eighty dollars for two years of tag fees if you buy a SUV. The cost to title a $20,000 SUV under the Governors new tax plan is $1,439.00.

It is important to note that the fees for titling vehicles go into the Maryland Transportation Trust Fund. This trust funds the construction of Maryland highways, roads and mass transit operations. Maryland is the only state in the union that funds two mass transit operations. The Trust has been operating at a deficit because of the cost of the mass transit requirements. The state also often borrows money from the Transportation Trust when the general fund is depleted. The primary source of funds for the trust used to be highway taxes. Last year, title tax and fees from registering vehicles surpassed gasoline taxes as the largest contributor to the Transportation Trust Fund. The fund has to get additional funding to stay solvent. Those of us in the automobile industry feel that gasoline tax is a more equitable way to solve the problem since there is a direct correlation between gasoline sales versus population, and the geographic need for highway improvements. Of course we would prefer that there was no tax increase of any type, but the alternative is to reduce highway spending, something not likely to happen.

The Maryland Automobile Dealers Association, (MADA) has recommended a plan that would increase the title tax to 6%, but would tax only the trading difference. This would put Maryland on par with most states in the union. Delaware taxes at 3.5% of the trading difference. It is important to note that you pay tax based on where you live, not where you purchase your vehicle. If someone in Delaware purchases a vehicle in Maryland, we collect the Delaware title tax not Maryland’s. The same is true if you purchase in Delaware. You would have to pay the Maryland tax when you title the vehicle. If Maryland adopted the MADA plan, the title tax remitted to the Transportation Trust would increase by approximately $750 million annually.

Maryland automobile dealers employ approximately 20,000 Marylanders. As an industry they are among the largest collectors of tax, payroll tax, and contributors to charities. Statistically this is the worst year in automobile and truck sales in Maryland in 12 years. This is not the time to burden the industry with additional taxes that could discourage Marylanders from purchasing new, more fuel efficient and environmentally friendly vehicles.