Average gas prices—June 30, 2008

Gas prices rise slightly in most areas right before the 4th of July holiday.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$4.10	↑ .02
Diesel fuel/gallon	$4.65	0

Regional regular gasoline prices

Price

Change from last week

East Coast	$4.06	↑ .01
-New England	$4.12	0
-Central Atlantic	$4.10	0
-Lower Atlantic	$4.00	↑ .02
Midwest	$4.03	↑ .04
Gulf Coast	$3.93	↑ .01
Rocky Mountain	$4.03	↑ .03
West Coast	$4.46	0
-California	$4.57	↓ .01

Source: Energy Information Administration, 6/30/08

Consumer Reports opens motorcycles and motor scooters forum

This spring and continuing into summer, we have seen tremendous reader interest in motorcycles and motor scooters as both a recreational outlet and fuel-saving alternative to an automobile. Our initial thread on the topic inspired great discussion, with participants sharing personal insights and sound advice, but clearly the interest is rapidly outgrowing the thread.

So, we have begun a formal discussion area within the Cars forums to enable, and indeed encourage, readers to share their views on buying, owning, and safely operating motorcycles and motor scooters.

In addition, we will continue to provide motorcycle coverage in the Cars blog. Enthusiasts are invited to bookmark the specific "Motorcycles & scooters" category link.

We will be monitoring the forum discussions to inform our future motorcycle advice and general coverage.

So, tighten your chin strap, put up the kick stand, and cruise over to the new discussion area. See you there!

—Jeff Bartlett

From guzzlers to sippers: The changing auto market

The rapid rise in gas prices has caused many consumers to shift from buying large gas-guzzling SUVs to more fuel-efficient small cars. And this shift in the marketplace has forced the auto industry to drastic changes in realigning their model mix, reallocating production capacity, and adjusting future model plans. While consumers want instant relief to the economic challenges they face, the auto industry is grappling with production cycles measured in years, not months.

Automakers are doing what they can, with many making bold moves to address the rapidly changing car market. Many companies are scrambling to move forward to create more compact cars, while others who already have a number of fuel-efficient vehicles are trying to keep up with the demand.

Below are some examples of how car manufacturers are adapting to this changing environment:

Ford recently announced a reduction in truck production and the new F-150 will be delayed two months due to the truck sales slow down. This will allow the current inventory to sell off and give Ford a chance to reorient the F-150 more toward commercial, rather than consumer use. Ford also is working to add more small cars to its lineup, including the European version of the Focus and Fiesta. Production will increase for the U.S.-made Focus, as well as the Ford Escape and Mercury Mariner small SUVs. Ford also can’t produce the hybrid versions of these SUVs fast enough.

Chrysler announced they will stop producing twins of similar vehicles for different models, such as the Dodge Nitro and Jeep Liberty, and would cut back their product line. Chrysler is also forming strategic partnerships, including an alliance with GM on hybrid technology and teaming with Nissan to create a new small car.

GM announced a new compact Chevrolet model to begin production in mid-2010. The automaker is also racing ahead on the Chevrolet Volt plug-in car, which is expected to debut by the end of 2010. GM also announced truck plant cut backs due to the decrease in sales.

Even though Toyota offers many fuel-efficient vehicles in their lineup, its sales story is also mixed. Toyota has not been able to keep up with demand for the Toyota Prius—the most fuel-efficient car Consumer Reports has recently tested—due to limitations on battery availability. Also, the company will cut production on some of their larger vehicles like the Tundra and Sequoia, the latter a victim of launching at the wrong time.

Honda, on the other hand, is enjoying a sales surge. In the month of May, U.S. Honda sales were up over 11 percent due to a 23 percent increase in Civic sales. This fall, Honda will open another U.S. plant to produce more Civic sedans. It, too, has recently launched a redesign of its largest SUV (the Pilot), though it is too soon to interpret the sales data.

The state of the automotive market is a volatile one and the rapid shift to fuel-efficient cars and hybrids is causing all manufacturers to alter their plans. Those that can adapt quickly to the demand will enjoy success, but others may face difficulty.

—Liza Barth

For information on the most fuel-efficient cars and alternative fuels, see our guide to driving green.

 

Who is to blame for high gas prices? Motorists know.

Motorists have been feeling the pain at the pump, and it is impacting their lifestyles and shaping future car buying habits, according to the latest Auto Pulse survey conducted by the Consumer Reports National Research Center. And 99 percent have strong feelings about who is to blame. Respondents mostly pointed fingers at the federal government.

With fuel prices and the upcoming presidential election dominating headlines, we thought it would be interesting to see how these issues intersect. To check America’s pulse, we conducted a random, nationwide telephone survey from June 5-8, 2008 of adults aged 18 years or older who drive and whose household owns at least one vehicle. For the full story, read "Gas prices survey shows pain at the pump hurts at home." Here, we will focus on who motorists blame for the elevated gas prices and what recommendations they have for turning around this trend.

Blame game
During a period of record profits for many oil companies, it is no surprise these industrial giants were one of the leading targets, blamed by three-quarters (75 percent) of consumers. But more pointed a finger at lawmakers in Washington, singling out the failure of government to implement an effective national energy policy.

Who do you blame for higher gas prices?

77% Government’s failure to implement an effective energy policy

75 Oil companies

70 Foreign-oil producers

68 Congress

68 Middle East conflict

64 Bush administration

64 Rising demand from developing nations

62 Restrictions on increasing refinery capacity

61 Restrictions on domestic oil exploration

Notably, natural disasters (26 percent) and gas stations (21 percent) ranked much lower.

How to fix it
While survey respondents were quick to assign blame, they were equally responsive in providing solutions. In fact, there was strong consensus on many possible actions that could be taken by the federal government to reduce fuel costs.

Motorists agreed that the government should:

90% Increase support for alternative energy development

84 Negotiate lower prices with oil-exporting nations

83 Encourage conservation through tax incentives, alternative transportation

81 Allow more drilling in the U.S. and offshore

79 Encourage the construction of more refineries

69 Impose price controls on gasoline

Where do you stand on both blame and possible solutions? Post your comments below.

—Jeff Bartlett

Join the discussion in the Cars forums to share how gas prices have impacted your lifestyle and what adjustments you are making to compensate.

Learn how to save at the pump by visiting Consumer Reports’ guide to driving green. Check the latest national average gasoline prices.

Survey says: Americans feel the impact of gas prices at the pump and at home

A year ago, the Consumer Reports National Research Center took the pulse of American motorists and found them to be anticipating making significant changes in their spending and lifestyle to offset rising fuel costs. This month, we again reached out to random households that own a vehicle and interviewed adult drivers, finding that the consumers have indeed been cutting back on spending, altering their driving habits, and shifting their car-shopping priorities—all in a big way.

It is no wonder the automotive market has turned upside down. Just this year, gas prices have skyrocketed from $2.96 per gallon (February 11, 2008) to $4.08 (June 23)—a 38-percent increase, according to data from the Energy Information Administration. (Check the latest gas prices.)

Now we find:

80 percent of car shoppers are considering a diesel, flex-fuel, or hybrid vehicle.

79 percent of car shoppers intend to buy a vehicle with better fuel economy.

74 percent are driving less due to fuel costs.

54 percent would pay more for a more fuel-efficient vehicle.

24 percent have cut spending on essentials like food or health care.

17 percent have charged more expenses on credit cards.

The survey shows that consumers are conserving in many ways, and they plan to focus more on fuel economy with their next purchase.

Read “Gas prices survey shows pain at the pump hurts at home” to learn more about how gas prices are impacting the American lifestyle and buying habits, plus who motorists blame.

—Jeff Bartlett

Join the discussion in the Cars forums to share how gas prices have impacted your lifestyle and what adjustments you are making to compensate.

Learn how to save at the pump by visiting Consumer Reports’ guide to driving green. Check the latest national average gasoline prices.

Let your priorities be your guide, but don’t ignore the big picture

We have seen myriad articles, Top 10 lists, and press releases advising on the best automotive choices during these tough times. Of course, every list approaches the topic from a different angle, but it is important to understand the intention and methodology, lest something be lost in the sound bite.

Consumer Reports routinely maintains lists showing best in class, most reliable cars, best in fuel economy, best/worst owner costs, and other slices of our exhaustive test and survey-based data to address reader interests on multiple fronts. In fact, we recently posted "Best fuel economy for the buck" offering a new perspective.

No matter the filter on our data, the underlining advice always remains to look at the big picture: buy a model that earned a high rating in our more than 50 tests, performs well in crash tests and our dynamic safety tests, has average or better predicted reliability, fuel economy, and owner cost ratings. In essence, buy a good, well-rounded car.

The bottom line
Even though fuel economy may be a driving force in vehicle sales today, it is wise to consider all aspects of a car before committing to years of ownership. Top 10 lists can be informative, even entertaining, but for a serious shopper, it pays to look at the bigger picture.

You can build your own Top 10 list based on the factors that matter most to you using our New Car Selector tool.

—Jeff Bartlett

The Smart and I

After commuting in the Smart ForTwo a few times, I couldn’t help contemplating how little the world of automobiles has advanced over the last fifty years.

My motorized career began in the early 1960s, with a 1957 BMW Isetta 300. At the time, my parents couldn’t afford much more than the second-hand post-war bubble-car. At least it was a major upgrade over the Lambretta scooter my father owned before he got married. I was placed on the package shelf – baked from below by the single-cylinder, 298 cc engine, and broiled from above by the scorching Israeli sun through the rear window. Perhaps that explains how my love of cars was seared into me at an early age. Infant carrier? Forget it. Seat belts? Not a chance. Air-conditioning? Only by opening the fabric top. Clearly, today this would amount to child abuse; back then it was hip.

You might think it’s off the wall, but actually it’s not so crazy to compare the Smart with the Isetta. Both are two-seat micro cars with a rear engine. One had a BMW badge on its front-swinging door; the other is marketed by Mercedes-Benz. The Smart has a three-cylinder engine and—with some patience—exceeds 90 mph; the Isetta could barely bump 50 mph with a stiff Mediterranean tailwind. But I bet even now, the Isetta would draw at least as much curiosity on the street as the Smart. Granted, the Smart has a lot more safety equipment. (Score an extra point for the Smart.)

The 2009 Smart ForTwo we’re testing makes you feel vulnerable with its lethargic take-off. The bone-jarring ride is fatiguing. And, at every up shift, the automated manual transmission creates a nauseating heave and pitch. While the 39 mpg overall we attained with it is good, it needs to be put in perspective. The discontinued Toyota Echo four-door sedan we tested in 2000 got 38 mpg overall (with a manual transmission). The Volkswagen Golf diesel we tested back then got 41 mpg. Both cars were practical five-seaters that drive much more “normally” than the puny Smart.

Since the Smart becomes such an instant conversation piece. It’s kind of like walking your new puppy... Here’s a sample of the most common questions I've been asked about the Smart:
“Is it electric?”
“Is it a hybrid”
“Does it get, like, 80 mpg?”

Granted, 80 mpg would be nice (and maybe even make up for all the compromises this car requires), but even a decent scooter doesn’t do that. According to Vespa, its GTS 250 model gets 65-70 mpg under laboratory conditions. In other words, even with today’s technology, we have to settle for a dinky, $15,000 two-seater to get 39 mpg, if we don’t choose a more expensive hybrid.

That brings to mind another forgotten car. Remember the Honda Insight? The first hybrid car, offered from 2000 to 2006 in the U.S., sold for $19,000. It was also a two-seater, but accelerated from zero to sixty in a respectable 11.2 seconds (with the manual tranny) and got 51 mpg overall. In my view, settling for a klutzy, limited use two-seater might as well bring dividends in other areas and the Insight did so more than the Smart.

So, looking at the historical evolution of cars, if the Smart marks a half–century’s worth of automotive progress in terms of inexpensive, frugal motoring, it doesn't exactly leapfrog over the Isetta. Overall, it’s not a particularly impressive record for us as a society.

—Gabe Shenhar

Discuss Smart in the Cars forum.

More telematics options coming soon

Telematics, the combination of telecommunications and computing technology, is becoming more common in the vehicles we drive, offering a variety of safety and convenience features. In our last telematics blog, we covered some new features coming to GM’s OnStar system. Here, we will preview a new, competing system coming soon from Hughes Technologies.

Hughes recently gave us a demo of the system that will soon be available Chrysler and Mercedes-Benz models. Sitting in a Jeep Grand Cherokee equipped with it, a company engineer started by selecting music by genre and artist by simply asking for it. The system complied, but this was small-change stuff we’ve seen before on the Ford Sync entertainment system. Next, he asked for a Seattle weather report. With no hesitation, the system reported it was raining. (What a surprise.)

The engineer also listened to and then replied to an e-mail by giving a spoken response, which the Hughes system repeated back to him for approval before sending.

Next up was a demo of customized personalized morning news, an example of how a user could set it up to start their daily commute. In the engineer’s example, the Jeep rattled off a few stock quotes, the local weather, sports scores for a favorite team, which local gas station had the best price today, and which of three pre-programmed routes looked like it had the least traffic for the ride to work. Your own morning routine could be whatever helps get you going. Maybe it’s the shortest distance to the nearest Starbucks, the joke of the day, a favorite tune for a quick sing along, or perhaps a compliment on your tie. “Good morning! My, you look sharp! By the way, the Mobil on the corner is $3.95 for a gallon of regular!” The possibilities are literally endless.

In terms of safety, Hughes engineers used the example of one Chrysler vehicle that had sixteen sensors around the car that could, among other things, determine the severity of a crash. Not only could the system automatically alert first responders after an accident, it could also tell them which part of the vehicle was hit. This could enable rescue personnel to better know what to expect upon arriving on the scene and prepare accordingly.

And then there’s the whole area of the car’s operation and maintenance. A telematics system can tell you all kinds of things, from low tire pressure in the right front, to why the “check engine” light is on. It can also tell you whether you should stop your car immediately or if it’s OK to keep driving. Reports of the car’s entire maintenance history can even be generated, you name it.

But with all this hands-free technology, we strongly remind drivers not to stop concentrating on the road ahead. Even though you’re not hitting lots of buttons here, you can still be distracted by this interactive system and focus less on the car in front of you.

Welcome to the future. The word is telematics. And it’s here.

--Jim Travers

For more on high-tech driving aids, visit our Mobile electronics special section. And join the discussions in our Mobile electronics & auto technology forums.

Car, SUV, and tire recalls

There have been a few significant recalls announced in the past few weeks affecting Dodge, Land Rover, Mercedes-Benz, and Volkswagen, plus a Toyota safety enhancement and a recall on tire valve stems. If your vehicle is listed here, you will be contacted by the manufacturer with the information on what you need to do or we provide a number to contact yourself. However, the valve stem recall requires action on the owner’s part.

2009 Dodge Journey

Chrysler is recalling almost 6,700 Dodge Journey SUVs equipped with a 3.5-liter engine due to a problem with the engine wiring harness that could contact the left transaxle mount and cause an engine fire.

Dealers will inspect the engine wiring harness for damage and repair to secure the harness away from the left transaxle mount.

Chrysler has yet to announce when owners will be notified. In the meantime, owners can call Chrysler at 1-800-853-1403.

2005-2006 Land Rover LR3 and Range Rover Sport

Land Rover is recalling over 37,000 LR3 and Range Rover Sport vehicles. The relative motion between the steering wheel hub and/or steering column cowl with the clockspring, which contains air bag circuitry, could cause a fracture in the driver-side air bag wiring connection. The SRS warning light will illuminate to alert the driver that a repair is necessary, but if a driver ignores the light and gets into a crash, the air bag may not deploy properly.

Dealers will make the necessary repairs to fix the alignment. The recall is expected to begin around July 21st. Owners may contact Land Rover at 1-800-637-6837.

2006-2008 Mercedes-Benz GL & ML class

Mercedes-Benz is recalling over 52,000 GL and ML class vehicles equipped with the Flex-N-Gate trailer hitch. Some of the seams connecting the hitch to the attachment bar used to connect it to the body frame do not meet specifications and may result in the hitch separating from the attachment bar.

Dealers will repair the trailer hitch and owners are urged not to use the hitch until it is repaired. Owners may contact Mercedes-Benz at 1-800-367-6372.

2008 Volkswagen Passat & 2009 Volkswagen Tiguan

Volkswagen is recalling over 4,000 Volkswagen Passat and 2,500 Tiguan vehicles equipped with 2.0T FSI ULEV II engines. The problem occurs when the engine is in idle and the air conditioning is turned on, the software may not control engine idle. As a result, the engine could surge unexpectedly.

Dealers will inspect and update the engine control module that contains the software, free of charge.

The recall began at the end of May. Owners may contact Volkswagen at 1-800-893-5298.

2004-2006 Toyota Sienna

Toyota is conducting a safety improvement campaign on over 196,000 Toyota Sienna minivans equipped with power rear liftgate struts. The gas struts used to help lift the rear power liftgate could wear out earlier than expected and could eventually cause the liftgate to fall a few inches or completely close.

Dealers will replace the gas struts with new ones that have a longer life. Owners can contact Toyota at 1-888-270-9371.

Tech International tire valve stems

Tech International is recalling 6 million snap-in valve stems manufactured between July and November 2006. The rubber portion of the stem could crack and cause a loss of tire pressure, potentially leading to a crash.

Tech International will replace the valve systems and the tire if necessary. Owners may contact Tech International at 1-740-967-9015.

For more information about this recall, read the Safety blog’s report: "Warning issued on faulty tire valve stems following rollover death."

—Liza Barth

Average gas prices—June 23, 2008

Most gas prices stay relatively steady this week.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$4.08	0
Diesel fuel/gallon	$4.65	↓ .04

Regional regular gasoline prices

Price

Change from last week

East Coast	$4.05	0
-New England	$4.12	↓ .01
-Central Atlantic	$4.10	0
-Lower Atlantic	$3.98	↓ .01
Midwest	$4.00	0
Gulf Coast	$3.92	↓ .02
Rocky Mountain	$4.00	↑ .01
West Coast	$4.46	↑ .01
-California	$4.59	0

Source: Energy Information Administration, 6/23/08