2011 Automotive Hot List: The Departed...

For better or for worse, these American brands have left the building.

If there’s one constant in this world, it’s this: We live in a world of constant flux. In the automotive world, however, we’ve all grown accustomed to seeing the same group of manufacturers introduce new models each year. You know the names. But for the 2011 model year—thanks largely to the huge economic downturn that began in late 2008—four well-known American nameplates have gone the way of the Edsel, so to speak.

Of these four, the Hummer brand was the most short-lived. The original Hummer H1 (or Hum-Vee) was a celebrity of the Persian Gulf War. In 2002 came a smaller and (slightly) more manageable version, the Hummer H2. Exactly what made suburbanites decide they needed a four-wheeled facsimile of a machine-gun toting, troop-hauling war machine parked in their driveway is best left to future generations to explain. Perhaps the supersized and fuel-guzzling excess of the Hummer brand will someday look as quaint as towering tailfins from the late-1950s? Or perhaps not.

Pontiac and Mercury always maintained a far more balanced product portfolio during their much longer life-spans. Founded in 1939, Pontiac was introduced as a companion make to prop up sales at GM’s Oakland division. Pontiac immediately outsold, and eventually far outlived, its parent brand. Oakland faded away in 1931. Pontiac’s historical highlights include the 1964 Pontiac GTO (the car that defined the muscle-car era) and the Firebird sports coupe.

Mercury was introduced in 1939, not to boost another brand’s sales, but to fill the price gap that had emerged between Ford and its upscale sibling, Lincoln. Cars like the 1949 Mercury Coupe driven by James Dean in Rebel Without a Cause all but guarantees the brand immortality – even if the nameplate itself has finally driven into the sunset. Years of badge engineering eventually dissolved Mercury’s identity, squeezing the brand out of the Ford Motor Company family tree.

Perhaps the biggest surprise – at least in terms of positive automotive karma – is the loss of Saturn. Created by GM to take the fight to imports, Saturn was marketed as “a different kind of car company,” thanks to a lineup of fuel-sipping small cars and no-haggle pricing policy. If only the cars lived up to the feel good dealership experience. A lack of development and new models left Saturn spinning out of orbit. A list ditch effort to market vehicles built by GM’s German-based Opel division as Saturns proved too little too late.

1. Pontiac

In theory, it was GM’s performance brand. We’ll miss cars like the G8,GTO and Solstice GXP; we wish we could erase the Aztek from our memory (as did Pontiac, no doubt).

2. Mercury

Founded in 1939 by Henry Ford’s son, Edsel, Mercury most recently served as an example of poor badge engineering.

3. Saturn

Originally known for its plastic-bodied cars and “no-haggle” dealer model; severely held back by a lack of new and unique product.

4. Hummer

Thrust into pop culture by a muscle-bound Austrian-born actor/governor, these off-road-biased trucks proved far too bulky and inefficient for the times.

Source:http://autos.yahoo.com

Most Overpriced 2010 Cars

By Hannah Elliott
                                            Data shows these vehicles aren't worth their MSRPs.

Are car buyers returning to lots? Some signs point to yes. Last month GM reported its first quarterly profit in three years, pushed in part by increased worldwide sales. Some expect this to continue.

"We're going to see improvement, but it is not going to be as robust a recovery as we had thought at the beginning of the year," says Jesse Toprak, vice president of industry trends and insights at TrueCar.com. "We'll get there, it's just going to take a little bit longer."
Potential buyers getting a head start may want to look beyond domestic cash-back rebates and Toyota's 0%-financing offers. That’s because even with incentives like these, some autos are worth less than their sticker price. Among them: the $19,030 Chevrolet HHR, $20,850 GMC Sierra 1500 and $31,575 Jeep Commander.

Behind The Numbers
To find them and others, we looked at April market price figures. This data, supplied by automotive industry analysts at Vincentric, is updated each month to reflect marketplace inventory, demand, rebates and incentives, and to represent the price that a buyer actually pays for a given car. We ruled out any vehicles where the gap between market price and MSRP was less than 15%--a natural breaking point in the data that left a list of about 40 overpriced models (with trim variations making it 150 total vehicles) to pare down.

We then used 2010 customer satisfaction information from Consumer Reports to better determine whether certain vehicles meet the expectations their brands promise--essentially, whether they justify their sticker price.

The data considers a wide range of factors, including price. Vehicles that scored 65 or less (on a scale of 100) made our list. We then ranked the remaining 11 vehicles according to their market price vs. MSRP ratio.

The three most overpriced trucks are the Ford F250 (worth 25.2% less than its $25,300 MSRP), Nissan Titan (worth 23.6% less) and Chevrolet Silverado 1500 (worth 23% less).

Those trucks aren't necessarily bad vehicles; in fact, the Titan and Silverado are Consumer Reports recommended picks. They landed on our list because they didn't score as high in consumer satisfaction rating as some of their competitors--and they can be had for considerably less than their list price.

But they do indicate that trucks and large SUVs are the most overpriced segments on the market. (The $27,260 Chrysler 300 is the only sedan that made the cut.) That’s because recent high and volatile fuel prices, combined with a "credit squeeze" that brought businesses--especially construction companies--down makes consumers shy away from heavy, gas-hungry trucks. And sometimes automakers don't respond accordingly, says Vincentric's David Wurster.

"There's a bit of wishful thinking that they're going to be able to get what they really want for these vehicles," Wurster says. "But at the end of the day, the manufacturer doesn't really set the price, it's the consumer."

That said, most cars on the market this spring aren't overpriced at all. Toprak says that in terms of what consumers get for the money they pay (significant improvements in safety, horsepower and technology), they're getting the best deals ever offered in the history of the car business.

"The extreme competition has forced everybody, domestics, import brands, everybody, to improve their quality and design to compete--because consumers now respond to product more so than the deal," Toprak says. "There are really no clunkers anymore."

Just be sure to do some research before pulling out your wallet.

The following representatives offered a response to our story on the most overpriced 2010 cars:

Ford
Brian Rathsburg, Super Duty Marketing Manager

F-250 is the biggest seller within the F-Series Super Duty lineup, a major contributor to F-Series being the Best Selling Truck for 33 straight years. Year in and year out, F-250 delivers the capability, durability and value that today's heavy duty truck customer demands. Especially in today's challenging economic environment, value plays an increasingly important role.

With the launch of the all-new 2011 Super Duty, we expect the value story on F-250 to resonate very well with our customers. For example, our best selling F-250 configuration--a 4x4 XLT Crew Cab model equipped with the all-new, class-leading 6.7L Power Stroke Turbo Diesel engine and the all-new 6-speed TorqShift Automatic Transmission--will see no MSRP price increase vs. the 2010 model, based on a typically equipped showroom model. The value improvement was also recognized by Automotive Lease Guide (ALG), the industry's leading firm on projecting automotive resale value. The all-new 2011 F-250 will have residual value improvements of between 5-12 percentage points of MSRP when compared to the 2010 model. In addition, we are already seeing transaction prices closer to MSRP on the 2011 model, illustrating customer's confidence in the product. Transaction prices from April sales of the all-new truck are $2,000 to $4,000 higher than the 2010 model, depending on the configuration. The improved transaction price, combined with class-leading retail market share of 48.1% year to date (up 9.1 ppts vs. year ago), suggest that Super Duty, and F-250 specifically, remains the clear truck of choice in the Heavy Duty segment.

Nissan
John Schilling, spokesman for Nissan USA

The Nissan Titan and Armada continue to offer good value in their respective segments. Both vehicles have posted year-over-year sales increases with Armada up one hundred fourteen percent and Titan up twenty-seven percent versus the prior year. In addition, Armada was ranked at the top of its class in J.D. Power’s 2009 APEAL Study and was voted top large sport utility vehicle in AutoPacific’s Ideal Vehicle Awards. The market performance of these vehicles is indicative of their strong consumer appeal and reflects an increase in segment share for both products.

General Motors
Tom Henderson, spokesman for GM

We are concerned with the rating that matters the most--with our customers. Comparably equipped, our pickups are competitively priced and have always represented a good value to customers--the driving reason that GM has long led the industry in pickup truck sales. In addition, the Chevy Silverado 1500 was a Consumer Reports top pick for 2010 and the Silverado 2500 won the IntelliChoice Best Truck Value award for vehicles over $28,000. These third-party endorsements are further evidence that our vehicles offer the value customers want today.

Chrysler
Roger Benvenuti, spokesman for Chrysler

Chrysler Group LLC continues to reposition its products to offer consumers the best value, quality and safety for their money.

Most Overpriced 2010 Cars
Jeep Commander
Segment: SUV

Series: Sport 2WD

MSRP: $31,575

Market Price: $26,155

Market Price v. MSRP: -17.2%

CR Owner Satisfaction Score: 54

Jeep Grand Cherokee
Segment: SUV

Series: Laredo 2WD

MSRP: $30,710

Market Price: $25,406

Market Price v. MSRP: -17.3%

CR Owner Satisfaction Score: 64 (V8), 52, (V6)
Nissan Armada
Segment: SUV

Series: SE 2WD

MSRP: $37,210

Market Price: $30,174

CR Owner Satisfaction Score: 65

Chrysler 300
Segment: Sedan

Series: Touring

MSRP: $27,260

Market Price: $21,517

Market Price v. MSRP: -21.1%

CR Owner Satisfaction Score: 52 (V6)

GMC Sierra 1500
Segment: Pickup Truck

Series: Regular cab 2WD

MSRP: $20,850

Market Price: $16,129

Market Price v. MSRP: -22.6%

CR Owner Satisfaction Score: 58 (V6)
Source:http://autos.yahoo.com

Honda perceived to be tops in customer, quality commitment

2010 Honda Crosstour

By Jeff Bartlett, Consumer Reports National Research Center

Among seven major auto brands, consumers consider Honda to be the most committed to customers and to product quality. Ford ranked second, followed by Nissan, Chevrolet, andToyota, based on a new survey by the Consumer Reports National Research Center. Hyundai andChrysler trailed the others by a significant margin.

To see how consumers' perception of a brand's commitment to customers and quality has changed in the wake of Toyota's high-profile safety and image challenges, the Consumer Reports National Research Center conducted a telephone survey using a nationally representative sample. More than 1,700 interviews were completed among adults whose household owns at least one vehicle.

Commitment

Percentage of respondents who said a brand was committed to the customer or quality.

BRAND	CUSTOMER COMMITMENT	QUALITY COMMITMENT
Honda	71%	73%
Ford	62	65
Nissan	57	58
Chevrolet	56	56
Toyota	53	52
Hyundai	44	42
Chrysler	36	38

Honda truly stands out by this measure, being perceived as having much greater customer and quality commitment than its chief rivals. Key to this accomplishment is that Honda has a reputation for building good vehicles that perform well, are fuel efficient, and have strong reliability histories.

Ford continues its march, with strong showings in several recent Consumer Reports surveys, good overall reliability, and, unlike its domestic peers, continued goodwill among consumers for having taken no federal assistance.

Toyota had a relatively decent showing here, though trailing its chief competitors.

Although Hyundai's newer models have generally performed well in our tests, the brand's challenge still seems to be communicating this to consumers. Less than 50 percent of respondents felt that Hyundai was committed to its customers or quality.

The recent financial troubles, dealer closings, and lack of new product may have been factors in the last-place finish for Chrysler. Currently, to the average consumer, Chrysler has not been showing much commitment of any kind.

The bottom line

As we have written before, perception can differ from reality. When shopping for your next new or used car, do your homework by checking ratings and road tests. You may find that the brands you are considering have changed more rapidly than your perceptions.

Source: http://autos.yahoo.com

2010 MINI Cooper Convertible

MSRP
$24,250 - $34,000
Invoice
$21,825 - $30,600
The 2010 Cooper Convertible is a 2-door, 4-passenger convertible, or convertible sports car, available in 3 trims, ranging from the Base to the John
Cooper Works.

Upon introduction, the Base is equipped with a standard 1.6-liter, I4, 118-horsepower engine that achieves 28-mpg in the city and 36-mpg on the highway. A 6-speed manual transmission with overdrive is standard, and a 6-speed automatic transmission with overdrive is optional. The John Cooper Works is equipped with a standard 1.6-liter, I4, 208-horsepower, turbo engine that achieves 25-mpg in the city and 33-mpg on the highway. A 6-speed manual transmission with overdrive is standard.

The 2010 Cooper Convertible is a carryover from 2009.

Source: http://autos.yahoo.com