Newsletter Franks Automobile Shipping & Transport
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Feb 22 2010
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Dear Customer: We want
to take the time to thank you for your business . In an effort to
continue ongoing communication with our clients , we have provided you with our
bi-weekly news letter. We strive to grow in the years to come and ask that
we may add you to our growing family of dedicated customers.
Sincerely,
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Toyota begins public back room PR effort
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In public, Toyota is running apologetic TV
ads and vowing to win back customers' trust. Behind the scenes, the
besieged carmaker is trying to learn all it can about congressional
investigations, maybe even steer them if it can. It's
part of an all-out drive by the world's biggest auto manufacturer to
redeem its once unassailable brand - hit anew on Tuesday as Toyota's
global recall ballooned to 8.5 million cars and trucks. The day's
safety recall of 440,000 of its flagship Prius and other hybrids, plus
a Tokyo news conference where the company's president read a statement
in English pledging to "regain the confidence of our customers,"
underscored a determination to keep buyers' faith from sinking to
unrecoverable depths. In
Washington, facing congressional inquiries and government
investigations, Toyota through its lawyers and lobbyists is working
full-speed to salvage its reputation. The confidential strategy -
Toyota will say little publicly about its efforts - includes efforts to
sway upcoming hearings on Capitol Hill and is based on experiences by
companies that have survived similar consumer and political crises -
and those that haven't. Rep. Bart Stupak, D-Mich, said Toyota representatives visited his offices seeking to learn all they could. "They're
probing us. 'What are you going to ask us, where are you going with
this whole thing?'" said Stupak, who is chairman of a House
subcommittee looking into Toyota's problems. Toyota, which reported spending more than $4
million on lobbying last year, declined to discuss details of its
plans. The company has "beefed up our team" by hiring additional
lobbyists, lawyers and public relations
experts to "work with regulators and lawmakers collaboratively towards
a successful recall effort, ensuring proper, diligent compliance,"
spokeswoman Cindy Knight said in an e-mail to The Associated Press. Rough headlines for Toyota continued Tuesday. In other developments: - State Farm,
the largest U.S. auto insurer, said it had informed federal regulators
late in 2007 about growing reports of unexpected acceleration in
Toyotas. That disclosure raised new questions about whether the
government missed clues about problems.
- Congressional
investigators cited growing evidence that not all the causes of
Toyota's acceleration problems have been identified. A staff memo from
the House Oversight and Government Reform Committee, which had planned
an oversight hearing for Wednesday, said there was substantial evidence
that remedies such as redesigned floor mats have failed to solve problems. The hearing was postponed until Feb. 24 due to snow in Washington.
- Federal safety officials said they were examining complaints from Toyota Corolla owners about steering problems.
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Ford to fix brake problems on 2 hybrid models
| DETROIT - Ford Motor Co. plans to fix 17,600 Mercury Milan and Ford Fusion gas-electric hybrids because of a software problem that can give drivers the impression that the brakes have failed. The automaker says the problem occurs in transition between two braking systems and at no time are drivers without brakes. The decision to fix the 2010 model cars came after a test driver for Consumer Reports magazine experienced the problem as he was driving a Fusion Hybrid. Ford spokesman Said Deep says braking power
seems to drop away as the car makes a transition from regenerative
brakes to the conventional system. The Ford hybrids have regenerative
brakes, which capture energy from braking to help recharge the battery,
in addition to a conventional system that stops the car using hydraulic
pressure. Deep
says Ford will notify the car owners to bring their cars in for a
software fix. He said there is no safety problem with the cars. The
automaker called the repairs a "customer satisfaction program" and said
it was not a full-fledged recall. Deep said Ford reported the problems
to a U.S. safety agency, the National Highway Traffic Safety Administration. The
move comes on the same day that NHTSA began an evaluation of braking
problems on the 2010 Toyota Prius hybrid. With the Prius, antilock
brakes can fail momentarily while the car transitions between its
gasoline and electric motors. Ford told dealers about a fix on Thursday. They already had the software to repair it in case it came up, Deep said. The software fix changes the pedal feel so it doesn't drop, he said. The
cars were built before Oct. 17, 2009. For models built after that date,
Ford fixed the software at the factory to change the feel of the pedal,
Deep said. Deep
said Ford had received a small number of customer complaints. There has
been one crash and no injuries due to the problem, he said. NHTSA has received only one complaint, according to Deep.
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GM, Ford may be benefiting from Toyota woes
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DETROIT - The U.S. auto industry rebounded
from last January's sales collapse with one big exception: Toyota,
which lost an estimated 20,000 sales after it stopped selling eight models because of defective gas pedals. Last
month, U.S. sales of cars and light trucks to consumers rose 6 percent
from a year earlier, thanks to increases in fleet sales and strong
demand for newly redesigned vehicles such as the Hyundai Tucson SUV and
Buick LaCrosse sedan. Big winners included General Motors Co., Ford
Motor Co., Nissan Motor Co. and Hyundai Motor Co., which all posted
double-digit sales increases. But
Toyota's sales slipped 16 percent, and they could fall further as its
sales stoppage drags into February. It was the first time since
February 1998 that Toyota's monthly U.S. sales fell below 100,000
vehicles, according to Ward's AutoInfoBank. Toyota's troubles helped to knock the Camry
off its traditional perch as the top-selling car in the U.S. Last month
the Camry ranked fifth in car sales, passed by Honda's Accord, Nissan's
Altima, Toyota's Corolla and the Chevrolet Malibu. The Camry has been
the top-selling car in the U.S. for the last eight years. Toyota
announced a recall of eight models, including the Camry, on Jan. 21 and
halted sales of those models five days later because the accelerator
pedals could stick and cause a crash The recall has affected a total of
2.3 million vehicles in the U.S. Besides the Camry, the other models in
the recall include Corolla and Avalon cars, the Matrix hatchback, the Tundra pickup, the Sequoia SUV and the RAV4 and Highlander. Bob
Carter, Toyota's group vice president and general manager, said the
suspended models amount to 60 percent of Toyota dealers' inventory. All
eight saw sales declines. In December, most of them saw increases. The
hybrid Prius, which wasn't affected in the recall, posted a 13 percent
gain. Toyota's
pain wasn't a gain for other automakers. They saw more Toyota owners
browsing in their showrooms but few sales despite incentives offered by
GM, Ford and some New York-area Honda dealers. Ken
Czubay, Ford Motor Co.'s vice president of sales, said Toyota's actions
may have hurt overall sales because consumers and dealers were unsure
of the value of Toyota trade-ins. "There
was a tremendous amount of uncertainty. I don't think the month enjoyed
its normal pickup on the last weekend," Czubay said. John
McEleney, who operates a Toyota dealership in Clinton, Iowa, expected
January sales to be up 40 percent over last year until the automaker
halted them. Now, January sales will be up 10 percent at the most, said
McEleney, who is also president of the National Automobile Dealers
Association. "It died off last week because of the stop sale," he said. "It comes at a tough time for dealers coming out of the recession." Carter
said Tuesday that parts to fix the recalled vehicles are on their way
to Toyota dealerships. Customers will also start receiving notices this
week, staggered over time, about where and when they can have their
vehicles repaired. Carter
emphasized that dealers would repair customer vehicles first and only
then repair new vehicles on their lots. Dealers can resume selling
vehicles affected by the recall, but he had no estimate for when that
would be.
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Ford, rivals betting small is beautiful-
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Few products recall the bad old days of
American cars like the Ford Escort, a vehicle reviewers would
euphemistically refer to as "cheap and cheerful." A stripped-down econobox, Escort had just two selling points: its relatively high mileage and its low price. That
formula fit virtually all the small cars sold here over the decades
and, with rare exception, subcompact and smaller products were seen as
something to be tolerated rather than aspired to. So, why is Ford
betting big on the all-new Focus, the latest heir to the old Escort? At this month's North American International
Auto Show in Detroit, Ford President Mark Fields described the 2011
Focus as a critical shift in direction for the U.S. maker, which sees
its future increasingly dominated by small cars, rather than big
trucks. And it isn't alone. Cross-town rival General Motors unleashed
an assortment of its own downsized models at the show, from the
Korean-made Spark minicar to the long-delayed Cruze sedan. And Chrysler
is readying its own offerings, including the U.S. version of parent
Fiat's 500 microcar. "There is an opportunity in small cars," that GM hopes to exploit, says the automaker's Chairman and Acting CEO, Ed Whitacre. Rising fuel prices
certainly feed the interest in small cars. Whitacre's predecessor,
Fritz Henderson, revealed that GM's operating assumption is that
gasoline will eventually level off at somewhere around $4 a gallon and
encourage consumers to downsize. That's
certainly happened in Europe, where motorists now pay as much as $8 a
gallon and the Ford Focus is billed as a "family sedan," rather than an
entry-level offering. But the version offered to consumers in London,
Paris and Berlin is a far more stylish vehicle, and much more lavishly
equipped. Or, at least it has been.
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The reality of "Flying Cars"
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A prototype of what is billed by its
makers as the world's first practical flying car took to the air 27
times in a series of test flights during the spring of 2009. The
engineers from the Massachusetts Institute of Technology
who built the Terrafugia Transition prefer to call their flying car a
roadable aircraft -- an airplane that can be driven to and from the
airport and parked in a garage. The two-seat contraption
transitions between car and plane in just 30 seconds by folding up or
extending its wings. It can fly 450 miles at 115 miles per hour on a
single tank of unleaded gasoline and drive at highway speeds. The team
is currently working on a second-stage prototype that should be
available for flight in 2011.
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The successful person is the individual who forms the habit of doing what the failing person doesn't like to do. - Donald Riggs
Sincerely,
Frank Kimbrough
Franks Automobile Shipping & Transport Our website
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