Ford expected to close on Volvo sale to Geely next week
7/28/2010 - (Bloomberg) --
Ford Motor Co. plans to complete its sale of Volvo Cars to China's Zhejiang Geely Holding Co. next week, finishing the U.S. automaker's exit from European luxury brands, according to two people familiar with the plans.
Ford is selling Volvo to Geely for $1.8 billion, less than one-third of what it paid for the Swedish automaker in 1999. Ford and Geely executives are aiming to close the sale next week, pending final regulatory approvals and financing, said the people, who asked not to be identified revealing internal plans.
Unloading Volvo would complete Chief Executive Officer Alan Mulally's strategy of exiting European luxury lines to focus on Ford's namesake brand. Since arriving from Boeing Co. in 2006, Mulally has sold Aston Martin, Land Rover and Jaguar, which Ford acquired in 1989 as the first of a stable of premium nameplates that failed to generate the profits the automaker expected.
“Any time you're marrying a commoner to a blueblood, that marriage is going to be hard to maintain and sustain,” said Rebecca Lindland, an analyst for IHS Automotive in Lexington, Mass. “It's a shame because the Volvo-Ford marriage was one of the strongest because their car buyers had similar characteristics.”
Volvo profit
Volvo had pretax profit of $53 million in the second quarter, compared with a $237 million loss a year earlier, Ford said last week. Ford, the only major U.S. automaker to avoid bankruptcy last year, posted net income of $2.6 billion in the second quarter, exceeding analysts' estimates by 66 percent.
“We expect to complete the Volvo sale in the third quarter,” John Gardiner, a Ford spokesman, said in an e-mail. He declined to comment on whether the sale will close next week.
Tim Burt, a London-based spokesman for Geely, declined to comment on the timing of the completion.
Ford has said it will continue to supply Volvo with engines, transmissions and other vehicle components. It also agreed to provide engineering and technology support and access to tooling for common components for an unspecified period.
The Swedish carmaker's S40 model is built on the mechanical foundation of the Ford Focus now sold in Europe. Volvo supplies diesel engines for Ford's European lineup.
“They'll probably wind that down over time,” Lindland said of the technology and parts-sharing agreement with Volvo. “Mulally runs a pretty tight ship. And that's obviously working out really well since they're making billions in a really crappy market.”
Bridgestone Bandag Tire Solutions Announces Price Increase
Bridgestone Truck and Bus Radial Tires Affected
MUSCATINE, Iowa (July 1, 2010) – Bridgestone Bandag Tire Solutions (BBTS), a division of Bridgestone Americas Tire Operations, announced today it has increased prices on its Bridgestone brand products. Effective July 1, 2010, Bridgestone brand truck and bus radial tire base prices will increase up to six percent in the United States.
“Bridgestone Bandag Tire Solutions continues to look for ways to balance costs and continue to deliver a premium package of value to our dealer and fleet customers. Today, however, we have reached a point where we must pass along some of the increased costs that are outside of our control including energy, fuel and raw materials,” says Kurt Danielson, Vice President Sales and Marketing, BBTS.
J.D. Power and Associates Initial Quality Study: Top-Rated Cars
June, 2010- In June 2009, J.D. Power and Associates released its 2009 Initial Quality Study, which lists the top performers in defined car and truck segments within the first 90 days of vehicle ownership. In addition, the study also ranks the best brands for initial quality. Read More...
Gas-Saving Advice for Motorists
MotorWeek video shows how driving style can affect MPG and offers tips on how to improve fuel economy
MotorWeek segments provided by Maryland Public Television
June 7-13, 2010 is Automotive Service Professionals Week
Leesburg, VA., January 27, 2010 – The National Institute for Automotive Service Excellence (ASE) has declared June 7-13, 2010, as National Automotive Service Professionals Week. This year marks the fifth anniversary of National Automotive Service Professional's Week, created to honor the commitment and dedication of automotive, truck and collision technicians, along with parts specialists and other support professionals who serve the motoring public. For 2010, ASE continues this recognition and has it listed in the 2010 Chase's Calendar of Events.
“Twenty-three states issued proclamations honoring National Automotive Service Professionals Week in 2009,” said Trish Serratore, ASE Senior VP. “We will once again push to have all fifty states recognize the outstanding work done by automotive professionals across the nation.” As in years past, ASE will provide a form letter and enlist the aid of local shop owners in each state to petition their respective Governors to mark this special week.
“ASE created National Automotive Service Professionals Week to acknowledge the skill and dedication of the men and women who service and maintain the highly complex vehicles upon which we depend so much for our day-to-day transportation,” said Tim Zilke, ASE president and CEO. “ASE is proud to help recognize these individuals for their commitment to their customers, their craft and the American economy.”
Incorporated on June 12, 1972, the National Institute for Automotive Service Excellence was established as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians and parts specialists. Today, there are nearly 400,000 ASE-certified professionals who work in dealerships, independent shops, service stations, collision repair shops, auto parts stores, fleets, machine shops, schools and colleges throughout the country. For more information about ASE, contact Brian at 860.233.5177.
Check Engine Light Interview
Hartford, CT - May 19, 2009 - Fame radio personality Brad Davis of WDRC AM 1360 discusses cars and car repairs with Mr. John DeSimone owner of Modern Tire of West Hartford.
More Motorists Keeping Vehicles Longer
Bethesda, MD – Feb. 26, 2009 – According to a recent story in USA Today, more motorists are maintaining their current vehicles instead of purchasing new ones because of the uncertain economic environment. However, recent Car Care Council survey results show that 80 percent of the vehicles inspected during 2008 vehicle check-up events needed either service or parts.
“The current economic situation has people very hesitant to spend money for a new car, instead keeping their current vehicles for longer periods of time,” said Rich White, executive director, Car Care Council. “Since four out of five vehicles need some type of service, it’s important to remind motorists that those who keep their cars, treat them as valuable investments and commit to regular vehicle maintenance, end up saving a lot of money.”
Results of vehicle inspections at community car care events across the country during National Car Care Month in April and Fall Car Care Month in October, revealed that 80 percent of vehicles needed parts replacement, service or fluids. For example, nearly one out of every 10 vehicles had the check engine light on. The top problem areas were motor oil, windshield wipers, air filters, belts and hoses and lights. Complete results can be found at http://carcare.org/NCCM.
To help ensure the reliability and safety, and extend vehicle life, the Car Care Council recommends these preventive maintenance steps:
Change the oil and filter every 3,000 to 5,000 miles or per the owner’s manual. Periodic oil and filter changes keep your engine clean on the inside.
• Check the tire pressure at least monthly, including the spare. Your car’s tires affect its ride,
handling, traction and safety.
• Schedule a tune-up annually to optimize your car’s performance. A well-tuned engine delivers the
best balance of power and fuel economy and produces the lowest level of emissions.
• Have the alignment checked at least annually. Potholes and other road conditions, as well as
normal wear, can take their toll on your car’s steering and suspension. A wheel alignment
reduces tire wear, improves fuel economy and handling, and increases driving enjoyment and
safety.
• Inspect the windshield wipers and lights on the car. Lights and wipers play a major role in safe
driving, and they are normal wear items that need periodic replacement.
School’s Out, Here Comes Summer! Ready, Set, Go!
School is almost out and many of our customers are already planning their summer vacations and big road trips! We’d like to make sure your vacation plans stay trouble free and on track. Here are the most important things to check before heading out on the open road:
Tires - Tire pressure is so often overlooked. A tire that’s 5 pounds low on air can hurt your fuel mileage, cause premature wear and make the vehicle handle loosely. Inspect your tires before you head out by turning your wheels all the way to the left or right and then looking at the front tires to see the inside edge; if the treads look thin, let us take a look to make sure you are safe.
Tune and maintenance - Most vehicles these days go longer on a tune-up than anyone could have ever imagined years ago. But, when a system is tested under long term driving conditions, problems that don’t occur with around town driving begin to appear. Make sure the vehicle's tune is up to date and in good condition.
Oil leaks - Small oil leaks are a nuisance when the vehicle is parked or driving around town; they make a mess in the garage or driveway and may even smell a bit. On long trips however, the small oil leak can end the fun quickly after just 3 hours of hard driving. Failing seals are prone to leak much more after reaching full operating temperature for extended periods of time.
These are just a few of the common failures we see vacationing motorists come into the shop with. The best way to make your vacation plans trouble free is to make sure your vehicle is thoroughly inspected before you go. By the way, don’t schedule your appointment the day before your trip! Nothing makes a trip more stressful than not having your car to pack the day before you leave!
Will Your Car Keep Its Cool This Summer?
Stop-and-Go traffic and summer heat can take their toll on your car. The pros at Modern-Tire of West Hartford a member of Automotive Service Excellence, (ASE) have some tips for keeping your car cool:
Follow the service schedule recommended in your owner’s manual
Flush and refill the cooling system and change the oil and filter.
Remember to check the condition and levels of coolant and oil periodically.
Replace worn Wiper Blades and keep plenty of washer fluid on hand.
Inspect Brakes, Tires and Lights – and be sure to have engine performance
problems such as hard starts and stalling, identified and corrected.
Contact Modern-Tire today to inspect the condition of Belts, Clamps, Hoses
and the Air Conditioning system.
Modern-Tire is dedicated to quality automotive service and repair through voluntary testing and certification of technicians.
For more information, contact Brian or Andy at 860.233.5177 to schedule an appointment.
Gas Saving Tips for Your Auto
While it is always wise to conserve natural resources, the recent price of gasoline has made even the most wasteful people think twice. Whatever your motivation, here are some gas saving tips from the pros at the National Institute for Automotive Service Excellence (ASE).
Monitor tires. Under inflated tires or poorly aligned wheels waste fuel by forcing the engine to work harder. (Let the tires cool down before checking the air pressure.) Out-of-line wheels, as evidenced by uneven tread wear, should be aligned by a professional.
Remove excess weight. Remove unnecessary items from the vehicle. Store only essentials in the trunk. Less weight means better mileage.
Consolidate trips and errands. Some trips may be unnecessary. Also, try to travel when traffic is light so you can avoid stop-and-go conditions.
Avoid excessive idling. Shut off the engine while waiting for friends and family.
Observe speed limits. Speeding decreases your miles per gallon.
Drive gently. Sudden accelerations guzzle gas. Anticipate traffic patterns ahead and adjust your speed gradually.
Use windows and air conditioning wisely. Your mileage should improve if you keep the windows closed at highway speeds, since air drag is reduced. This is true even with the air conditioning on-assuming that the system is in good working order. But turn the air conditioning off in stop-and-go traffic to save fuel.
Keep your engine "tuned up." A well-maintained engine operates at peak efficiency, maximizing gas mileage. Follow the service schedules listed in the owner's manual. Replace filters and fluids as recommended; have engine performance problems (rough idling, poor acceleration, etc.) corrected by our qualified team of technicians at Modern Tire AutoService repair facility. Given today's high-tech engines, it's wise to have this type of work done by auto technicians who are ASE certified in engine performance.
These conservation tips will not only save gasoline, they'll help extend the life of your vehicle. Win-win, indeed.
The Difference Between a Sunroof and a Moonroof. . .
"What is the difference between a moonroof and a sunroof?" Many think that a sunroof is clear and a moonroof is tinted. Nope, not the right answer. Others think that a sunroof will open but a moonroof will not. Wrong again. The truth is that a moonroof is actually a type of sunroof! For more info, I'm deferring to an expert, Marc Levinson of Donmar Sunroofs, who also operates the free sunroof information site, www.Sunroofs.org. Here it is:
Just as a sedan is a distinctive type of automobile, a moonroof is a type of sunroof. Sunroof is the generic term used to describe any panel in a vehicle roof which can let in light and/or air. While most sunroof panels are operable, some may be fixed.
The term moonroof was used in the 70's to describe a glass panel inbuilt electric sunroof, and is now used generically to describe all glass panel inbuilt sunroofs. An inbuilt sunroof is one where the operable panel slides between the vehicle roof and headliner, and is often powered but may be manually operated.
There are distinct categories of sunroof products, including: Pop-Up, Spoiler, Folding, Topslider, Inbuilt, Removable Panel [T/Targa] and large roof systems. Sunroofs may be OEM or aftermarket installed. Over 70% of all aftermarket sunroofs sold today are installed for new car dealers, prior to the vehicle being offered for sale. Few vehicle owners know the difference, or that the sunroof may be an aftermarket add-on when the vehicle they purchased included it.
Hope that helps inform the uninformed and reform the misinformed!
Who Rules The Road, Men Or Women? Survey Says . . .
Results of a new survey of drivers indicate that men and women have different ideas about the role of gender in driving ability.
And the survey data from U.S. drivers by TeleNav, a supplier of navigation software, uncovers other differences, too, but perhaps not as great as many might believe.
From views of their biggest driving pet peeves to texting while driving, both genders reported having similar habits on the road. However, the survey results also suggest that while their actions on the road may be similar, men and women have very different perceptions of which gender rules the road...