“Crash tests show midsize bumpers costly to repair - KXAN” plus 4 more

Crash tests show midsize bumpers costly to repair - KXAN
Auto recycler fights to get onto Cash for Clunkers list - Nevada Appeal
Some Reno used car, repair businesses claim harm from clunkers program - Reno Gazette
Auto headlines - Detroit Free Press
New location for long-time family auto service center - Des Moines Register

Crash tests show midsize bumpers costly to repair - KXAN

Posted: 06 Aug 2009 05:25 AM PDT

DETROIT (AP) - None of the six most-popular midsize sedans earned a top rating in bumper safety in the latest crash tests performed by the Insurance Institute for Highway Safety .

The Mazda 6 was the only car to receive an "acceptable" rating — one rating below "good," the top rating — based on the average cost to repair front, rear and corner bumpers following a 6 mph crash.

A 6 mph crash can simulate a common parking accident, such as backing into another vehicle. IIHS rates vehicles on a four-notch scale ranging from "good" to "poor."

The average cost for bumper repairs on the Mazda 6 is $871, according to IIHS. That's an improvement from the 2007 model which received a "marginal" rating. Mazda improved its bumpers by making them wider, taller and higher off the ground, IIHS said.

Ratings for the Honda Accord and Hyundai Sonata improved one notch to "marginal" from "poor," with the average cost of repairs coming in at $1,133 and $1,265, respectively.

"Consumers buy midsize cars for practical reasons. There's nothing practical about a $1,000-plus repair bill after a minor bump in commuter traffic," said IIHS Senior Vice President Joe Nolan.

The 2009 Ford Fusion's bumper rating slipped to "poor" from "marginal" in 2007, with the average cost of repair reaching $2,207. Nolan said the car's weaker bumper beams had a big impact on performance.

"The Fusion's bumper buckled, which caused it to underride the test barrier, resulting in twice as much damage as the 2007 model in the rear test," he said.

"We are surprised by the results as Ford continues to lead the industry in cost-of-ownership by nearly any measure because we design our vehicles to help reduce operating and repair costs," said Wes Sherwood, Ford's safety communications manager, in a statement. He said the Fusion is the only car in its segment to offer Cross Traffic Alert radar technology that helps drivers avoid fender-benders in crowded parking lots where many of these accidents occur.

General Motors' Chevrolet Malibu also received a "poor" ranking, with average report costs hitting $2,329.

The average cost of repairs is weighted based on repair costs to the vehicle's various bumpers and real-world damage patterns. The full front and rear test results are given double the weight, IIHS said, because crashes that damage those bumpers happen twice as often as corner impacts.

Repair costs vary by vehicle depending on the complexity of the repair or extent of the damage. Part of the cost related to repairing the Malibu, for example, goes to replacing the grille, emblem, and decorative chromed plastic trim following a crash involving the front bumper, IIHS said.

"While the IIHS bumper performance rating may be of interest to consumers, it is important to note the rating does not reflect a vehicle's safety performance," said Janine Fruehan, manager of quality and safety communications for the automaker. "GM's focus is on occupant protection and crash avoidance."

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Auto recycler fights to get onto Cash for Clunkers list - Nevada Appeal

Posted: 06 Aug 2009 05:32 AM PDT

The "Cash for Clunkers" program that is proving to be a boon for new car dealers has left at least one auto recycler fuming about being left out of the clunker end of the transactions.

Carol Greenlee, co-owner of Pic-N-Save in Mound House, has been desperately trying to get some information on how her business can get on the list of government-approved salvage businesses that can receive the clunkers. According to the rules of the program, the vehicle engines have to be disabled, and recyclers can sell off most of the rest for parts or scrap, a potentially lucrative windfall for those on the list.

But getting on that list is proving to be a lesson in government bureaucracy for Greenlee.

"It's become a big joke," Greenlee said. "Everything is so not clear as to what is needed. Nobody is getting a fair shake on these."

Greenlee said that only one local auto recycler, Pick-N-Pull, is on the list to receive the clunkers.

Jan Daniels, contract vehicle purchasing manager for Pick-N-Pull in the company's Rancho Cordova, Calif., office, said that all 58 company locations are successfully working with the program.

"I know that we are working with several dealers in the Carson City area to pick up their vehicles under the program," Daniels said.

Daniels added that the company applied to the government to be on the list, and that they have to abide by Environmental Protection Agency rules to remove toxic substances from the vehicles before parting them out and disposing of them.

"We feel this program is a real winner for everyone involved," Daniels said. "It's great for the auto dealers, and is boosting the economy. And it's a great opportunity for customers to be able to use the parts made available to repair their vehicles."

But Greenlee said the rules of this program were not well thought out, and she's still trying to figure out how to take part.

"I feel everyone in Carson City that holds a wrecking license should able to take these cars," Greenlee said. "We don't want freebies, but just give us the opportunities to bid on them. I just want a fair chance to get on the list."

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Some Reno used car, repair businesses claim harm from clunkers program - Reno Gazette

Posted: 06 Aug 2009 01:29 AM PDT

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"It's interesting, whoever told you about the used cars, I have to think that is not based on facts," Reid said. "Because the Wall Street Journal reported a couple of days ago that used car sales have rocketed up also. That was in the Wall Street Journal. So, I just think that is sour grapes."

Reid's staff said he was referring to an Aug. 4 story that said a negative impact on used-car sales had not occurred.

"As for small (business) people who work on cars, mechanic shops, remember this is increasing fuel efficiency by the average of 10 miles a gallon," Reid said. "Wow, that's pretty good."

Miller wasn't happy with Reid's response.

"Yes, that is true," Miller said of the gas mileage. "But this program is also putting more people in debt now. The economy is in bad shape, and I don't think people need that. I'm sure some will end up with the same problem, where they can't afford the car payments."

"We have lost five or six jobs," said Karl Foster of Roy Foster's Downtown Service Center. "People are saying, why put the money into an older car when I can just go get a new one?"

He said people lured into buying new cars with the $4,500 government rebate are not thinking about the monthly payments plus increases in insurance and registration costs.

"People are thinking about getting that new car and getting that money," Foster said. "They are not thinking about what is going to come after that."

The cash for clunkers program requires the engines of traded-in vehicles be destroyed, creating more demand for used cars and increasing the value of the cars, said Thomas Chauvin of Crawdaddy's Used Cars.

"The cars that they are trading in, they are just sending them to the wrecking yards," he said. "It causes the value of the good cars that people still want to go way up."

Others said the program's impact has yet to be felt.

"I can't say that it has really hurt our business," said Dennis Wilson, 57, co-owner of Wilson's Auto Sales. "But it will probably end up hurting everybody."

Some people seeking to take advantage of the cash for clunkers program end up buying used cars, said Wesley Gregg, sales manager at Lithia Reno Subaru.

"We have had people who have put pencil to paper and have realized it would be less expensive to buy a used car," Gregg said.

Although the engines will be destroyed, auto wreckers said they hope for brisk business from the clunker auto parts. Transmissions can be re-sold, auto wreckers said.

"The dealers have not been paid for the cars so they are not moving any of the (trade-in) cars yet," Rick Anderson of Reno Auto Wreckers. "So, we don't know what is going to happen yet."

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Auto headlines - Detroit Free Press

Posted: 06 Aug 2009 12:24 AM PDT

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A 6-m.p.h. crash can simulate a common parking accident, such as backing into another vehicle. IIHS rates vehicles on a four-notch scale ranging from "good" to "poor."

Ratings for the Honda Accord and Hyundai Sonata improved one notch to "marginal" from "poor," with the average cost of repairs coming in at $1,133 and $1,265, respectively.

The 2009 Ford Fusion's bumper rating slipped to "poor" from "marginal" in 2007, with the average cost of repair reaching $2,207. GM's Chevrolet Malibu also received a "poor" ranking, with average report costs hitting $2,329.

GM asked to hold payments from Opel

Germany wants General Motors Co. to forego royalties from Opel and set aside the payments as collateral in the event of a default on government-backed loans for the division, Deputy Economy Minister Jochen Homann said.

"We made this suggestion to GM to see whether such a possibility indeed exists," Homann said Wednesday. "We haven't had any response from GM yet."

Homann, who leads Germany's side in talks on Opel's disposal, met in Berlin on Tuesday with John Smith, GM's chief negotiator, and executives from Magna International Inc. and RHJ International SA, the unit's suitors. GM and Magna, the Canadian parts maker selected by Germany as the preferred bidder, could overcome remaining obstacles "within 48 hours," Homann said Wednesday.

Honda to increase production in Asia

Honda Motor Co., Japan's second-biggest carmaker, will increase global vehicle production as emerging markets pace a recovery in auto demand.

Honda will build about 90,000 vehicles more than initially planned in response to higher-than-forecast sales from China, Thailand, India, Indonesia and Brazil, Chief Financial Officer Yoichi Hojo said in an interview Wednesday.

The carmaker is raising output in Asia, where it predicts sales will reach 840,000 vehicles this fiscal year, 8% more than an earlier estimate. The Tokyo-based company also boosted its earnings forecast last month, leading better-than-estimated results for Toyota Motor Corp., Ford Motor Co. and Nissan Motor Co.

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New location for long-time family auto service center - Des Moines Register

Posted: 06 Aug 2009 02:05 AM PDT

Higgins Plaza Service

ADDRESS: 7425 Douglas Ave., Urbandale

PHONE: 276-0886 or 276-3443

MANAGERS: Brothers Rick and Pat Higgins

HOURS: 7 a.m. to 9 p.m. Mondays through Saturdays

WHAT IT OFFERS: Complete auto repair and servicing; tire sales; towing. Appointments are not necessary for small repairs.

HISTORY: The business is owned by Richard and Lois Higgins and is run by their sons, Rick, 58, and Pat, 54. Beginning in 1971, Richard ran his first service station at East 14th Street and Euclid Avenue and sold Standard Oil, which then became Amoco. In 1975 he moved his business to Merle Hay Road and Douglas Avenue.

Higgins switched to selling Texaco gasoline about 15 years ago, and did that until Chevron bought Texaco, Pat said. In December 2002 the station converted to a BP station.

Richard recently sold the property to Rich Eychaner, who has plans to tear down the structures on the corner of Merle Hay Road and Douglas Avenue and develop a retail center there. Richard reinvested the money into the new building where it is now and on June 1 Higgins Plaza Service was relocated to Urbandale.

FAMILY BUSINESS: Pat worked for his father while he was in high school, from 1971 to 1974. Rich was in the U.S. Army at that time. Later, the brothers ran a station together at Beaver and Urbandale avenues from 1979 to 1982. In 1988, Pat went back to work for his father and Rick joined the business in 1990. Richard retired when he was 70, about 18 or 19 years ago.

The third generation had a presence when all three of Rick's children worked in the station when they were in high school and a couple of them worked there during part of college.

DUTIES: Both brothers are hands-on and their duties complement each other. Pat said he helps out with mechanic work when short on help and is a service writer. Rick manages the property and banking. "When you run your own business, you do it all," Pat said.

WHAT'S NEW: The move allowed Higgins Plaza Service to expand to five service bays from three. It also improved sales by 10 to 15 percent, Rick said. It no longer has gasoline sales and a car wash, as it did on Merle Hay and Douglas.

GREEN: Before moving into the building at 75th Street and Douglas Avenue, a former service station, Rick said he made sure it was well insulated and "as green as can be" to be energy efficient. That will save on energy costs and allow the business to provide service at a cost as low as it can be, he said.

NUMBER OF EMPLOYEES: 8 to 10 on average

- Joanne Boeckman jboeckman@dmreg.com