Friday, February 27, 2009

Honda builds best vehicles: Consumer Reports


Yonkers, New York - Honda has earned class leader status for building the best all-around vehicles for American drivers, according to Consumer Reports. It is the third consecutive year that Honda has been so named.

At the opposite end of the annual ranking is Chrysler, which fared worse than last year. The magazine said that the company’s poor-performing products and sinking reliability reports have kept all Dodge, Chrysler and Jeep vehicles off its “Recommended” list.

With an overall score of 78 out of 100 points, Honda was followed closely by Subaru at 75, and Toyota at 74, in the overall score. Subaru is the only automaker with every one of its tested vehicles as recommended, although it has a relatively small model lineup.

Fourth place went to Mazda at 73, followed by Mercedes-Benz, Nissan, Volkswagen and BMW, all tied at 72 points.

The editors said that while the top four overall scores belong to Japanese automakers, a Japanese nameplate is no guarantee that every car in a model range will be a reliable and good performer, citing that the Honda Element and Toyota Yaris scored too low in testing to be recommended. Conversely, despite overall scores of 63 points for Ford and 57 for General Motors, new models such as the Ford Flex, Ford F-150, Chevrolet Malibu and Cadillac CTS have done well in testing, and rank near the top of their classes in ratings.

The overall score for each automaker is based on the average of its vehicles’ overall scores in Consumer Reports’ road tests, and their average predicted reliability ratings from its annual auto survey. Manufacturers received a report card only if five or more of its vehicles were tested.

Of the three class leaders, Toyota regained lost ground after last year’s report, when the Camry V6, Tundra V8 4WD and Lexus GS AWD fell below average in reliability. All three have improved to “average” this year. Of the Asian automakers, Subaru, Nissan, Mazda and Hyundai improved their overall scores, and Nissan and Hyundai also improved their reliability rating. Of the four, Hyundai showed the most improvement, increasing its overall score from 66 to 70; the new Genesis also topped the upscale sedan ratings.

European automakers have lagged in reliability, but with notable improvements with several models from Audi, BMW, Saab, Volkswagen, Volvo and Mercedes-Benz. Mercedes showed the most significant improvement, and reliability was greatly improved across most of its lineup, with 67 per cent of tested vehicles now recommended, compared with none in the prior year.
All three Detroit automakers continued to be at the back of the class, although General Motors and Ford improved their overall scores. Chrysler had the lowest overall test score, with no vehicles recommended.

The magazine said there was some positive news for the domestic automakers, with latest models from GM now ranking among the best in testing, and the Buick Enclave, Chevrolet Traverse, GMC Acadia, Saturn Outlook, Cadillac CTS, Chevrolet Corvette and Chevrolet Malibu all scoring well. Some Ford models now rival competition from Honda and Toyota in reliability, and the Dodge Ram is now very competitive with other full-size trucks. Less than a quarter of recommended vehicles are from U.S. companies, a result of inconsistent reliability and performance, while about half are Japanese.

“While Japanese automakers continue to set the standard for the industry in terms of real-world performance and reliability, many domestic, European and Korean manufacturers are narrowing the gap by building better and more reliable cars,” said David Champion, senior director of automotive testing. “While some automakers are still dragged down by old product investments, we expect the race for the front of the class to become even more competitive, which may lead to some excellent values for consumers in the near future.”

Source;
http://www.canadiandriver.com/2009/02/26/honda-builds-best-vehicles-consumer-reports.htm

Thursday, February 26, 2009

Rest in Peace Nick Laping

All the best to the Laping family, Nick will be sorely missed.

Honda tops Consumer Reports 2009 Automaker Report Cards... again


In what may be the least surprising news you read all day, Consumer Reports has released its annual 2009 Auto Issue that contains Automaker Report Cards. These report cards compile all of CR's road test data and predicted reliability ratings for all vehicles in its database, and Japanese automakers have again earned top rankings just as they have for as long as we can recall.
Honda, Subaru and Toyota came out on top after all the scores were tallied, with every single Subaru model earning a Recommended rating from CR. Honda was the brand that fared the absolute best in predicted reliability, with just its Element small SUV barely failing to make the grade as a Recommended nameplate. Toyota also fared very well in reliability testing, as we've come to expect from the world's largest automaker. European automakers managed to get a shout out for offering unmatched performance, comfort and safety along with incremental increases in overall vehicle reliability.
American automakers got their own separate report cards, which you can see by clicking here. Of the Detroit-based manufacturers, Ford came out victorious with its Flex and F-150 earning top ratings and many of the rest of its models scoring well. General Motors managed to sneak eight vehicles on the Recommended list: the new Pontiac G8, Cadillac CTS and Chevy Malibu, along with the Corvette and each of the Lambda-based CUVs. Chrysler pulled up the rear again this year among all automakers without a single vehicle earning a positive score from CR.
Source;

Honda to build biofuel research centre

Honda plans to set up a biofuel R&D unit in Kazusa Akademia Park in Japan's Chiba Prefecture.

Source;
http://www.automotiveworld.com/WAM/content.asp?contentid=75019
(subscription required)

GM loses $9.6 billion in last quarter bringing the total to $30.9 Billion for 2008

Embattled automaker reports larger than expected in fourth quarter loss and burns through more than $5 billion in cash; says it needs new loans this year.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: February 26, 2009: 9:51 AM ET

NEW YORK (CNNMoney.com) -- General Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy.

The company also disclosed that it burned through $6.2 billion in cash during the last three months of the year. The company ended the quarter with cash of $14 billion.

If not for the $4 billion federal loan it received in the quarter's closing days, GM's cash level would have fallen below the $11 billion to $14 billion in cash the company has said it needs to continue operations.

Since receiving the first installment of that loan, GM (GM, Fortune 500) has gotten another $9.4 billion in federal assistance. The company asked for an additional $16.6 billion in the turnaround plan it submitted to the Treasury Department last week. GM disclosed Thursday it will need this at least $9 billion of that money in 2009 to weather the current downturn.

The company is expecting to burn through another $14 billion in cash this year, with most of it taking place in the first quarter as the company struggles to deal with weak demand and significant overhead costs.

GM chief financial officer Ray Young said the company's request for more loans was made with that weak outlook in mind.

"We're not forecasting any heroic recovery for the industry in '09," he told investors.
The company also said it anticipates its outside auditors will issue a statement on whether the company is a "going concern." The statement could be important not only to investors but to federal officials who are determining whether the company is viable in the long-term.

If the government determines GM is not viable, it would demand immediate repayment of the company's loans.

The auditor's statement will be included in GM's year-end results filing with the Securities and Exchange Commission. GM disclosed Thursday it had filed for a two-week extension to submit that report.

The company also disclosed that its hourly and salaried pension plans are currently underfunded, on a combined basis, by about $12.4 billion. But GM said it does not anticipate needing to make a further contribution to those funds over the next three years.

GM facing challenges around the globe

As bad as GM's results were, it could have been worse. The company posted a $533 million gain because of the fact that GMAC, the finance unit in which it held a 49% stake during the quarter, got its bond holders to agree to swap debt for equity. GMAC become a bank holding company as a result of the debt swap, which significantly reduced GM's stake in the unit.

Excluding special items, GM lost $5.9 billion, or $9.65 a share, in the quarter. Analysts surveyed by Thomson Reuters had forecast a loss of $7.39 a share, compared to a profit of 8 cents a share on that basis a year ago.

The operating losses were particularly pronounced in GM's core North American market. It lost $3.5 billion before taxes in the quarter, up from a $1.3 billion loss in North America a year earlier.

Revenue in the North American unit plunged about 32% to $19.3 billion. GM's market share also slid 1.7 percentage points to 21%.

But GM, which now sells more than half its vehicles outside of North America, is facing challenges around the globe.

Losses more than quadrupled in Europe, and the company lost money in its Asia-Pacific and Latin America-Africa-Middle East units. GM posted profits in those two regions a year ago.
Overall revenue at GM plunged 34% to $30.8 billion, significantly worse than the Thomson-Reuters forecast of $35.1 billion.

For the full year, GM reported a net loss of $30.9 billion. The automaker has posted net losses of $82 billion over the past four years as its U.S. sales and market share plunged and it closed plants and slashed staff in an unsuccessful effort to stem losses.

Shares of GM fell about 8% in early morning trading Thursday.

Separately, GM rival Ford Motor (F, Fortune 500) filed its own year-end financial statement with the SEC Thursday. Its filing included an "unqualified" statement from the company's outside auditor that "there is no substantial doubt" about Ford's ability to continue as a going concern.

Because it arranged for billions of dollars of asset-backed loans and lines of bank credit years ago before the current credit crunch, Ford is in a much better cash position than GM and privately held Chrysler LLC.

Ford has yet to need federal loans but it has asked the government for a $9 billion line of credit in case the economy deteriorates further.

First Published: February 26, 2009: 7:19 AM ET

Source;
http://money.cnn.com/2009/02/26/news/companies/gm_results/?postversion=2009022607