Cars Getting Older in a Down Economy

VW Beetle
Here’s more no-surprises news: The median age of passenger cars is creeping up, to 9.4 years old in 2008 compared to 9.2 years the previous two years, says R.L. Polk, an auto information provider. A decade ago, in 1999, the median age was 8.3. The median age for trucks also climbed to 7.6 years vs. 7.3 and 6.9 the past two years. (Trucks wear out faster now, the opposite of a generation ago.) In 1999 it was 7.2 years median truck age. At the same time, the scrappage rate – when vehicles go off the road for good – is falling historically, but it’s been up and down the past two years, at 5.1% for cars and 5.6% for all vehicles in 2008. Polk says the upward blip is from vehicles of the late 1980s and 1990s falling apart the last couple years. But in 1970 the scrappage rate for cars was 9.5% and 8.7% for all vehicles.

What it means: Better-built cars last longer and drivers make marginal cars last longer when the economy sucks. Older fleets means less life-saving technology (stability control, airbags) and fewer tech gadgets (Bluetooth, iPod adapters, navigation). In the future, automakers may be selling fewer replacement cars.

Best Buy to Sell Brammo Enertia EV

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Next time you’re in Best Buy picking up a new DVD, don’t miss the electric motorcycle section. Well, not exactly, but starting in May, the mega-retailer will begin selling the all-electric Brammo Enertia at five West Coast store locations, according to AutoblogGreen.

“What we’re selling is a lot closer to consumer electronics than to transportation,” Brammo CEO Craig Bramscher said in the report. That comment is leading to speculation that the EV maker plans to make some type of camera or other doodad available for the thing, given that it already has on-board Wi-Fi and a GPS radio.

The $15,000 Enertia is expected to have a top speed somewhere north of 50 mph, a recharge time of about three hours, a range of 35 to 45 miles, and a 92 percent reduction in carbon dioxide emissions when compared with a “CAFE Average” (27.5 mpg) car commuting 29 miles a day.

iSimple Tranzit Connects iPods to FM Car Stereos

iSimple_Tranzit.jpgiSimple has unveiled the TranzIt, a universal interface that can be used with any car stereo via an antenna bypass, letting iPod and iPhone owners connect their devices to their car stereos.

The $89.99 (MSRP) device claims to offer static-free listening via any FM car stereo—the driver sets radio preset as an iPod channel (such as 87.9 or 88.3 FM, the same as with wireless FM transmitters), plugs in the iPod, and turns on the iSimple Tranzit. I’m assuming that means that although there’s no static via this method due to the wired connection, you’re still restricted to the frequency response of an FM station, meaning that the signal will top out at around 15 KHz and won’t sound quite as good as a solution (like the iSimple Gateway) that uses the dock connector or even the headphone jack.

Once connected, the owner can browse and select tracks using the iPod directly. An iPhone owner could conceivably stream Internet radio via Pandora Mobile, AOL Radio, or Last.fm as well. The connection also offers battery charging while the iPod or iPhone is docked; it’s compatible with the iPhone, iPhone 3G, iPod touch, and newer generations of the iPod nano. Users can also substitute a headphone-style auxiliary input to use with other MP3 players.

JD Power Ranks Customer Service: Lexus on Top

Lexus RX 350
Lexus regained the top position in J.D. Power & Associate’s Customer Service Index, a measure that “examines satisfaction among vehicle owners who visit a service department for maintenance or repair work” over the first three years of ownership. CSI used to stand for customer satisfaction, now it’s customer service. While lots of people gripe about the difficulty of getting car technology to work, either it doesn’t break or dealers do a great job fixing it. The brands most likely to be considered high-tech are in the top 15 (of 36 surveyed this year). The only two in the top 10 that don’t shout “technology” are No. 8 Buick and No. 9 Saturn. Note that this isn’t a survey about reliability, only about whether customers think dealers did a good job on maintenance and warranty work. BMW, No. 3 this year, might be one of the most complex brands to work on, but since all maintenance, even little things like wiper blades, is on BMW’s dime for the first four years of ownership, it’s hard not to like your BMW dealer. Below the jump, the CSI scores for the past five years.

What it means: Car technology doesn’t break down much, or dealers fix it fast, judging by the concentration of high-tech brands at the top of J.D. Power’s CSI.

Honda Ramping Up Hybrid Production

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In a time where automakers are struggling to stay afloat, Honda is actually increasing its production of hybrids like the brand new Insight in order to meet demand, the New York Times reports.

Originally, Honda planned to sell 100,000 new Insights in America over the next year, with an additional 60,000 slated for Japan, but the “response has been overwhelming,” said Hiroshi Kobayashi, deputy chief operating officer for Honda’s domestic operations. “We will have to increase production plans,” he said, though he declined to give new numbers. The new Insight isn’t quite as thrifty as the Prius, averaging 41 mpg on the EPA cycle, but it’s reported to have a sportier demeanor at the wheel than Toyota’s hybrid icon.

Honda hasn’t announced pricing for the new Insight. But it’s widely expected to come in at around the $20,000 mark, or about $4,000 less than the base cost of the 3rd generation Prius, also due this Spring. Even so, Honda is likely to report its first quarterly loss in 15 years this quarter—similar to what dozens of other automakers have been up against lately.

Rinspeed to Unveil iPhone-Controlled Car

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Swiss auto design house Rinspeed, the company behind last year’s sQuba diving car, will reveal an electric car concept vehicle that can be controlled by an iPhone at the Geneva Motor Show next week, Macworld reports.

The iChange uses an iPhone in lieu of car keys. The iPhone clips into a holder on the dashboard to either side of the steering wheel, the report said. “Once connected a green “start” button appears on the iPhone’s display and one push brings the iChange automobile to life. When you’re driving the car the iPhone can also be used for other control functions, such as switching on and off the headlights.”

Average Diesel Price Falls Below Premium Gas

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Diesel enthusiasts can rejoice: after a year of significantly higher prices, the average cost of a gallon of diesel fuel has fallen back below the price of premium gasoline, according to Autoblog.

Diesel now averages $2.18 per gallon, compared with $2.19 for premium gas and $1.96 for regular. Now that we’re finally beginning to see some clean diesel vehicles that match gasoline cars for clean emissions and beat them on EPA fuel economy estimates, the falling cost of diesel fuel could help spur sales of cars like the 2009 Volkswagen Jetta TDI, the BMW 335d, and the various Mercedes BlueTEC models.

I’ve driven both the 335d and the Jetta TDI recently. Both cars are solid options for environmentally-minded enthusiasts, and have a much greater cruising range than their gasoline-powered counterparts. The 335d is also ridiculously quick; Car and Driver clocked its 0-60 time at 5.7 seconds, and the 425 lb-ft of torque makes it feel even faster from behind the wheel.

Good News: Portable GPS Sales Flat This Year

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Garmin says sales of portable GPS systems, or portable navigation devices (PNDs), will be flat in 2009. In a phone conference with analysts, Gramin president and COO Cliff Pemble described 2009 as a “difficult year,” according to TWICE. Garmin has about half the U.S. market share and dominates even more at the high end, although the market is skewed 85-15 toward lower end PNDs, Garmin says. While flat sales are bad news for PND-makers, it’s good news for customers who’ll see better pricing from makers who remain in the business, as well as great close-out prices from those who drop out. The unspoken problem: A lot of people bought a first GPS 2-4 years ago, upgraded 1-2 years ago, and don’t see the reason to upgrade quite so soon again.

Why it matters: You’ll buy better portable GPS units at lower prices this year, if you’ve still got a job. And flat PND sales and reduced prices adds pressure on automakers to find ways to sell onboard navigation for $1,000 not $1,500.

QA: What Happens If My Automaker Goes Bankrupt?

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Should you buy a car from an automaker facing bankruptcy? What if you’re looking at a car loaded with technology features? Here’s a Q&A:

Q: Why are some automakers on the verge of bankruptcy?
A: They’re the ones (typically) making the cars few buyers want, or they have cloudy product plans for the future. And they’re paying the penalty for sweet union contracts that never imagined there’d times like this.

Q: Like American automakers? Like Chrysler?
A: Like Chrysler specificially. A lot of people in the industry think Chrysler’s a goner. Chrysler has brand equity in the Jeep name and a lot of people still like their minivans and pickups. But there’s not a whole lot more.

Jaguar Makes HD Radio Standard in 2010 Models

Jaguar XK
Add Jaguar to the band of automakers offering HD Radio in its cars. Jaguar will start with the Jaguar XK coupe and convertible ($77,975 and up) this summer, where it’s easy to bury the added royalty cost, and continue with the Jaguar XF sedan ($49,975) a year later. Jaguar appears to be making HD Radio standard (free), which makes sense, since the automaker cost is minimal, but when sold as an optional feature, can be as much as $250 that could have been put to better uses such as investing on Wall Street. Others who have committed to HD Radio (at least some models, at least in the future) are Mercedes, Audi, Volvo, Ford/Lincoln/Mercury, Scion, Mini, Kia, Hyundai, and BMW. HD Radio provides one or two extra digital channels on the same frequency as the main radio channel (AM or FM), one typically being a rebroadcast of the main channel in digital. Despite the HD name, HD Radio is mid-fidelity, like satellite radio, and unlike satellite radio, there are no monthly charges other than the ear fatigue from the ads, and a reception range the same or a bit less that of the main radio broadcast.

Why it matters: One more automaker hops on the HD bandwagon, and at the only price that can be justified (free).