Energy Department expects Fisker to default, pulls funds from reserve account

On April 5, we reported that Fisker automotive had laid off 75-percent of its workforce, with a lawsuit following a few days later over the last-minute nature of the mass layoffs. The auto maker had run into a string of problems, and appeared to be making some last-ditch efforts to avoid bankruptcy. In light of this, the Department of Energy has taken $21 million from a reserve account, expecting the manufacturer to default on its loan.

Screenshot from 2013-04-23 02:09:43

The announcement was made Monday evening, with a statement released by the Department of Energy saying that in the light of the “obvious difficulties” Fisker is facing, the department has elected to pull the funds “on behalf of the taxpayer.” The money in the reserve account is from investors and sales, and will be applied to the amount of the loan. The action happened 12 days ago.

Like others before it, Fisker received an Advanced Vehicle Technology Loan as part of a federal program from green initiatives. The loan was for $529 million, but the auto maker only received $193 million of that before the Energy Department put a stop on the loan due to the manufacturer’s failure to meet specific requirements. The company was supposed to make its first loan payment this month.

Fisker hasn’t commented on the situation. According to the Wall Street Journal, the company has taken on the services of bankrupcty attorneys, but is seeking a way to stay in operation. Currently there is a lawsuit against the company by former employees who are seeking 60 days of wages and benefits, which they say they are owned because Fisker was required by law to supply a 60-day written notice ahead of the mass layoff.

[via Wall Street Journal]


Energy Department expects Fisker to default, pulls funds from reserve account is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Prius sales may fall short of 2013 goal, says Toyota

Toyota saw high Prius sales last year, moving over 230,000 vehicles, something that made it bump its sales forecast in 2013 to about 250,000. Such ambitions may have to be adjusted, however, says Toyota’s CEO in North America Jim Lentz. Prius sales in the first quarter of 2013 fell 8.4-percent largely due to a similar drop in gas prices, slightly exceeding 55,000 cars.

Screenshot from 2013-04-23 00:50:48

The current sales ambition of 250,000 represents a growth increase of 5.6-percent over last year, a target that isn’t being reflected in the year’s numbers so far. Reports Bloomberg, which interviewed Lentz last Friday, gas prices are just under 10-percent lower now than they were this time last year. Because one of the big selling points for hybrids is the fuel savings, sales ebb and flow with fuel costs.

Said the CEO during the interview: “It’ll be a challenge. We’ll continue to push Prius and Prius family, but if it ends up that demand is less than the sales forecast, that may be adjusted.” The Prius family, as he calls it, is composed a few different offerings, including the hatchback, wagon, plug-in, and subcompact. All is not bad news, however, with Toyota seeing current hybrid owners purchasing second hybrids.

As we reported on April 17, Toyota – alongside its Lexus luxury brand – have sold just shy of 2 million hybrids in the United States, with that number growing to 5 million when adding in global sales. Combined, both brands offer a dozen hybrid models in the US, including the Camry Hybrid. By 2015, the manufacturer wants to add 18 additional hybrid models on top of its current fleet.

[via Bloomberg]


Prius sales may fall short of 2013 goal, says Toyota is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Study shows hybrids popular among financially-savvy consumers

Experian Automotive has published the results of a study on hybrid vehicles, which looked at both the primary consumers who purchase them, as well as overall sales data. What it found is that those who purchase hybrids are likely to be financially-savvy, having a higher credit score on average than other consumers who get a new car loan. In addition, the numbers show hybrid sales – though still low – are slowly rising.

The information on the average hybrid buyer was gleaned from financial data included on vehicle loans, which showed an average credit score of 790. Such a score is slightly higher than the average of 755 for consumers seeking a new car loan for any type of vehicle. The same data shows the average loan for a hybrid at $25,807 with a monthly payment of $461.

The study also looked at hybrid sales, which increased to 3.1-percent last year over 2011′s 2.2-percent, a rise of 40.9-percent. While the numbers look big, the tally of hybrids on the roads is still less than 2-percent. However, as the data shows, sales are slowly and steadily rising. In 2006, hybrids only accounted for 1.5-percent. Says Experian, more hybrids are bought than leased.

Experian’s Director of Automotive Credit: “Hybrid vehicle owners have long been perceived as environmentally conscience consumers. While they may have made the vehicle purchase due to caring for the environment, our research shows that hybrid owners are economically minded as well. Hybrid owners tend to have outstanding credit histories, which also has enabled them to obtain financing at lower rates than typical consumers.”

[via PR Newswire]


Study shows hybrids popular among financially-savvy consumers is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Six electric taxis hit the streets of New York

Nissan and New York have conspired together to bring 6 new electric taxis to the city today. The Nissan Leaf is the model for these taxis and it’s repainted to look right for the job. Nissan and New York worked together to launch these new electric taxis today in celebration of Earth Day. These taxis will test out the waters of New York to see if electric cars are equipped to take on the taxi world.

Six electric taxis hit the streets of New York

Nissan states that the Nissan Leaf taxis have a range of around 100 miles, making it more than enough to handle the average daily taxi route of 70 miles. Nissan and New York wants to see whether or not these taxis are fit to take on the demanding life of New York citizens, who are in constant demand of a taxi at every moment. Just in case these Nissan Leaf taxis are unable to survive the day with only one charge, Nissan has set up quick-charging stations around New York so drivers can recharge their taxis if need be.

These 6 new electric taxis are all part of New York’s Mayor Bloomberg’s goal of having electric taxis make up at least 33% of New York’s taxi cars by the year 2020. If the Nissan Leaf performs well as a taxi, then Bloomberg’s plans are well on their way to becoming a reality. David Yassky, the Taxi and Limousine Commissioner, stated that Nissan is “working on that timeline”, with both the Nissan Leaf and an electric version of Nissan’s NV 200.

The Nissan NV 200 is New York’s “Taxi of Tomorrow”, and is set to become the official taxi of New York. It was approved by the Taxi and Limousine Commission and it beat out several rivals for the position. While not electric, it will be much more fuel friendly than the entirety of the taxis in New York City. Nissan plans on launching the NV 200 by October this year, starting the 10-year agreement it has with New York to be the city’s official taxi provider.

[via The Wall Street Journal]


Six electric taxis hit the streets of New York is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Is Anyone Actually Going to Buy an iBeetle?

The much-rumored iCar may have never made it into existence, but VolksWagen’s Apple-themed car has finally been made official: the iBeetle offers up some pretty deeply ingrained Apple tech. But who’s actually going to buy one? More »

Nissan recalls around 20,000 SUVs due to faulty brakes

Nissan has issued a recall for around 20,000 of its Pathfinder and Infiniti JX vehicles due to faulty breaks. The front brakes of the vehicles can potentially fail while driving, reducing the braking power of the vehicles. It’s recalling the 2013 models of the Pathfinder and Infinite JX vehicles in order to repair the problems. Thankfully, Nissan says that there have been no reports of crashes or injuries yet.

Nissan recalls around 20,000 SUVs due to faulty brakes

Nissan received a field report about a front brake torque member failure on its 2013 Pathfinder. After a detailed analysis of the front brake torque member, Nissan discovered,

“The casting was out of specification due to a ‘cold shut’ condition which occured during the supplier’s manufacturing process. A small amount of molten iron flowed into an adjacent mold prematurely, and did not fuse properly with the newly introduced metal due to temperature loss”

Nissan determined that the defect exists in a number of its vehicles, and issued a recall so that it can resolve the issue. Owners of the defective vehicles are expected to receive their recall notifications in early May, and will then be asked to bring in their vehicle to their nearest Nissan dealer so that it can be inspected. The dealers will inspect the manufacturing date of the torque member, and if it falls between December 3rd, 2012 to January 29th, 2013 (the period when the defective part was manufactured), the vehicle’s front brake torque members will need to be replaced (at no added cost to the vehicle’s owner).

There are approximately 14,168 Nissan Pathfinders and 5,090 Infiniti JX vehicles that potentially have the faulty brakes. This isn’t the first recall that Nissan issued this month. On April 11th, Nissan, Honda, and Toyota recalled over 3 million vehicles due to a potential issue involving their airbags. The airbags could potentially deploy improperly, which could lead to serious injury, or worse, death.

[via NHTSA]


Nissan recalls around 20,000 SUVs due to faulty brakes is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

GM’s Opel division returns to Shanghai Auto Show after 5 years

After a 5 year absence, General Motor’s Opel division will be returning to the Shanghai Auto Show this year to debut 3 new cars. It hopes to bring its cars to more markets aside from Europe, in hopes of revitalizing its finances. Opel has been on the decline since 1999, losing about $18 billion in total with 10% of that figure being lost last year alone. By bringing its inventory to the world’s largest market, China, it hopes to turn its financial luck around.

GM Opel division returns to Shanghai Auto Show after 5 years

The new CEO of Opel and a former executive at Volkswagen, Karl-Thomas Neumann, has said time and time again that China is the market where Opel needs to expand next. However, while it plans on showing off three new vehicles, the Insignia ST, Astra GTC, and the Zafira Tourer, at the auto show, these vehicles aren’t the type of vehicles that would bring Opel massive success in China.

Neumann, who was once ambitious about bringing Opel to China and making it a big name has said that it would cost millions of euros to do so, and that at the moment, “We have other priorities.” The models that Opel is set to debut at the Shanghai Auto Show will also be facing tough competition from GM’s other brands, Buick and GM’s U.S. brand, who already have similar vehicles in China that resemble the Insignia ST, Astra GTC, and Zafira Tourer.

In 2012, Opel only sold 4,500 cars all throughout China. Juergen Pieper, an analyst at Metzler Bank, told Reuters that Opel’s return to the Shanghai Auto Show won’t do anything for profits, but it is at at least a start for the company. Pieper also said that Chinese car buyers “favor German brands so there is a chance that it could take advantage of that to grow over the next year or so.” Unfortunately, Opel has some tough competition from GM’s other brand, Buick, which is currently more favorable in China. Despite its downward slope, GM wants Opel to be successful, and is planning on investing 4 billion euros into the company through 2016 to see it succeed.

[via Reuters]


GM’s Opel division returns to Shanghai Auto Show after 5 years is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Chrysler will take substantial loss on every Fiat 500e sold, says CEO

Chrysler‘s CEO Sergio Marchionne stated yesterday in a speech that the manufacturer will lose approximately $10,000 for every Fiat 500 electric vehicle it sells, something he used to demonstrate that electric motors are not – at least presently – the solution to government-mandated fuel regulations. He discussed his concerns regarding present regulation efforts and the reality of EVs.

fiat 500e

As we reported over the weekend, Chrysler will be releasing the Fiat 500e vehicle in California only for a price of $32,500. Because it is an electric vehicle, consumers will be able to take advantage of a variety of credits, rebates, and incentives to drop that price lower, making it more attractive. Likewise, Chrysler receives some subsidies that lower its overall financial burden, yet even after them, the manufacturer faces losing thousands on every vehicle that sells.

The CEO says that governments should be looking towards regulations that don’t side with any particular type of technology, such as electric vehicles. He then went on to discuss the inevitable consolidation of manufacturers in the auto industry, with car makers having to sell in excess of 6 million cars every year and at least a million units per platform due to the cost of developing them.

Said Marchionne: “A number of governments around the world including the U.S. have provided incentives for consumers to purchase plug-in electric vehicles and have provided direct incentives to manufacturers. My fear is that regulators are rushing precipitously into embracing electric vehicles as the only technological solution.”

[via Detroit Free Press]


Chrysler will take substantial loss on every Fiat 500e sold, says CEO is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

General Motors unveils Buick Riviera concept at Shanghai Auto Show

At the 2013 Shanghai Auto Show taking place in China, General Motors has unveiled the Buick Riviera concept, a modern take on a classic car. The concept was made is China, and is the latest to use the Riviera name, applying it to a car that features a sleek design that is said to be inspired by the Chinese phrase: “The greatest good is like water.”

Screenshot from 2013-04-19 20:37:01

According to USA Today, the goal was to create a car design that invokes thoughts of a vibrant river in motion and the rolling waves of the ocean. That’s the exterior, anyway, with the interior aiming to take inspiration from classic Chinese styles using ebony, wood inlaid with jade, suede, and aluminum. Also present are LED running lights and the familiar Buick grille.

While interpretation of design is up to the viewer, the concept is beautiful regardless of whether you see the influences of water in it. The interior is illuminated by soft blue LED lights, as are the LED headlights. Beyond the design is a hybrid powertrain, with consumers being able to charge it via either a standard charging cable or by going wirefree with a wireless charging panel under the car.

The concept also utilizes what General Motors refers to as an autopilot safety system that provides driving assistance – despite its name, you won’t be able to kick back and let the Buick doing the driving for you. Says President of General Motors, Shanghai: “By seamlessly integrating advanced technologies, flexible functions and contemporary aesthetics, the new Riviera heralds the start of a new chapter for the 110-year-old Buick brand.”

[via USA Today]


General Motors unveils Buick Riviera concept at Shanghai Auto Show is written by Brittany Hillen & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

How Apple Is Taking Over Your Car

It’s no secret that late Apple CEO Steve Jobs was keen on bringing the company’s technology to the automotive world. In fact, according to longtime Apple board member Mickey Drexler, “Steve’s dream before he died was to design an iCar.” Apple’s senior vice president of worldwide marketing, Phil Shiller, echoed those sentiments during the company’s copyright infringement trial against Samsung, saying there had been discussion of Apple making a vehicle. More »