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General Motors may actually be listening to the consumer

A couple of weeks ago, General Motors announced that it was going to release a compact crossover under the Buick name. Yesterday, the company announced that it scrapped the plans. The automaker decided to do away with the vehicle because it received poor reviews from consumers, industry analysts, and automotive journalists.

On GM's blog, the company's Vice Chairman Tom Stephens noted that the company received "great positive feedback" on some of its designs, but that the "Buick crossover we showed received consistent feedback from large parts of all the audiences that it didn't fit the premium characteristics that customers have come to expect from Buick." Translation: the people didn't like the car, it got bad reviews, and it will not be made. Reportedly, one of the consumers invited called the auto "hideous."

Continue reading General Motors may actually be listening to the consumer

In the efficiency era ... Ford plans a new luxury crossover

Ford, the U.S. auto giant facing perhaps its toughest combination of sector competition and economic headwinds in the company's history, is expected to announce it will build a new, seven-passenger luxury crossover, The Wall Street Journal reported Friday (subscription required).

The new three-row Lincoln MKT crossover is expected to go into production next year, and mirror a 'bustle back concept' displayed at the Detroit Auto Show this year, The Journal reported. Its primary competitors would be the Acura MDX, Audi Q7, and Mercedes R class.

Ford Motor Company (NYSE: F) shares were virtually unchanged on the news, up 2 cents to $5.12 in Friday afternoon trading.

Crossovers are larger cars designed to look and function like SUVs, only with better gas mileage.

Analyst takes wait-and-see approach on crossover

Stock Analyst C. Leonard Bauer said he's reserving judgment on the Lincoln MKT, pending performance, fuel economy, and safety test reviews.

Continue reading In the efficiency era ... Ford plans a new luxury crossover

Up ahead: A hybrid in your near future, not a pure electric car

With the oil and refining sectors providing evidence that $4 per gallon gasoline may represent a floor, auto makers are beefing-up efforts to improve and introduce electric cars, MarketWatch reported Wednesday.

While the new wave of hybrids and electric cars will emphasize plug-in technology (the ability to recharge the car's battery from a standard 110-volt outlet), industry executives and think tank analysts underscored that a series of government incentives and programs will be needed to enable large-scale production of plug-in hybrids and electric cars. Selected automakers have set the 2010 model year as a target for rolling out the new cars en masse.

Economist Glen Langan told BloggingStocks Wednesday the automakers' roll-out timetable may be a tad optimistic.

"What we're seeing now from General Motors (NYSE: GM), Ford (NYSE: F) and others is that classic, delayed, rush-to-the-future response so typical of a sector that's behind," Langan said. "U.S. auto makers and others should have developed at least a hybrid that could compete with gas engines 10 years ago. But they chose not to and battery technology is behind as a result. I don't think we will see a cost-effective plug-in electric in 2010, and we'll be fortunate if a cost-effective, plug-in hybrid will be in mass production by 2012 or 2013."

Continue reading Up ahead: A hybrid in your near future, not a pure electric car

Will Ford's new engines be a day late, dollar short?

Speaking at the Los Angeles Auto Show, Ford (NYSE: F) CEO Alan Mulally said the automaker is committed to improving miles per gallon efficiency and reducing emissions via implementing technological advances.

And the technological advances Ford's looking to incorporate to help stabilize its market share? Direct fuel injection, smaller-cylinder engines with turbo charges, lighter weight materials, hybrids, and diesels, among others. Moreover, Mulally said Ford's goal will be to increase fuel economy without sacrificing engine performance or auto safety. Ford's shares drifted three cents lower to $7.95 in Thursday afternoon trading.

In general, analysts were encouraged by Ford's presentation, despite the company's lack of a time-table for efficiency improvements or announcement of changes to specific vehicle models, other than a promise to apply diesel fuel and technology to improve the mpg of its popular but fuel-guzzling F-150 pickups.

Continue reading Will Ford's new engines be a day late, dollar short?

What the Big Three can do now to increase mpg

Detroit's Big Three, General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler have often been criticized for their bureaucracy, slow decision making, and, at times, outright inertia...even when conditions required bold, decisive action.

There's the joke about the five General Motors executives that go on a camping trip in the Great Midwest. Suddenly, they spot a bear 600 feet away and charging toward where they're seated at the camp site.

Each executive has a rifle and is ready to shoot the bear to defend the campers, and the senior executive says: "Allright, Executives, ready, aim, aim, aim, aim, aim, aim, aim, aim, aim..."

Continue reading What the Big Three can do now to increase mpg

What kind of car should you buy for your young driver?

Low-price entry level cars from car-makers like Kia may be attractive to a lot of young drivers. They're inexpensive (as low as $11,395 for a Kia Rio) and you still get that new car smell.

You may be able get more value and more safety in a used car but unfortunately, given the frequency of accidents involving new drivers, not enough attention is given to vehicle safety.

According to The New York Times, "A survey released in June by the Insurance Institute found that vehicles bought in anticipation of adding a new driver to the family were more likely to be of sizes and types considered less safe than vehicles already owned."

Experts recommend buying an older mid-size vehicle rather than a newer compact or, heaven forbid, an SUV or van. Studies have shown that the more passengers there are in a car, the more likely a new driver is to crash it.

The most important thing is to stand up to your kid and be the parent. Of course, few kids will feel cool driving a Volvo station wagon (the only kind of car my mother would let me drive), but trading coolness for safety is a deal parents have to be willing to make.

For more information, check out Consumer Reports' guide to Cars for Teen Drivers.

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S&P 500+4.981,110.63

Last updated: November 26, 2009: 05:56 PM

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