There’s been a lot of talk lately about the dangers of distracted driving, most notably the disturbing trend in accidents caused by text messaging behind the wheel.  Legislation is being passed to make the penalty for texting while driving steeper, but one Arizona highway safety official doubts that the stricter laws will provide a real solution to the problem.

“Texting and driving is a horrendous practice,” said Alberto Gutier, director of the Governor’s Office of Highway Safety. “But we also need to look at the whole issue. It’s not text messaging only; it’s all distracted driving.”

Gutier said that the city of Phoenix has only issued a handful of tickets since issuing a citywide ban on texting while driving in 2007.  “I’ll support anything that saves lives, but it’s almost impossible to enforce and even less easy to prove,” he said.

The Arizona state legislate rejected a bill earlier this year that would have fined drivers 50 dollars for texting or talking on a mobile phone without the use of a hands-free device.  If involved in an accident, the fine would rise to 200 dollars.

“People do dumb things while driving,” Gutier told Cronkite News Service. “A national, local and state media campaign on the dangers of texting or using the phone is as important as a law on the books.”

Make sure that your drivers know the dangers of texting and driving, and promote the use of hands-free devices while talking on a cell phone.

After liquidating its line of minivans a few years ago, Ford has decided to introduce a vehicle that caters to the demand for a small car which can also transport a family by introducing a new “family car” on the US in 2012.

The Grand C-Max will be available in America in two years, although the name of the car will most likely change before the final product hits your local Ford dealer.  The Grand C-Max has three rows of seating and sliding minivan-style doors, but Ford does not want consumers to think of the sporty new vehicle as a “minivan.”

“Minivans have a stigma,” says Derrick Kuzak, group vice president of Ford’s global product development team. He prefers to call the Grand C-Max a “people mover” with style. “We tried to provide that functionality but with an inspirational design.”

The Grand C-Max will be the largest in Ford’s new line of C-Max cars.  The platform will be used to develop up to 10 new Ford vehicles, and should account for 2 million in global sales volume for Ford each year. The growing small car market in the US is making some headway, but Ford thinks that a more minivan-like car will fill a niche that is not currently being satisfied.  It is longer to accommodate more seats and has more trunk space for family items like a stroller, all while avoiding the “refrigerator on wheels” look that Kuzak says plagues most minivans.

The price of the Grand C-Max may prove to be its weakest attribute. The C-Max goes for about $23,000 in Europe, which might be a bit too expensive for its size in the U.S. market, says Jim Hall, an analyst at 2953 Analytics.  “If you shop around, you can get a full-size minivan for under $20,000,” he says. “So they’re going to have to duke it out if they want to do high volume.”

Photo by Ford

There has been a lot of talk lately about smaller, more efficient cars being the new face of America’s roads.  Yet despite the discussion, lower gas prices are causing used car buyers to revert to bigger vehicles.

Small used cars are taking a hit on value in the market, according to Kelley Blue Book.  Even the once hot-ticked Smart ForTwo is suffering, according to the auto pricing publication.

“Its part of a larger trend that’s been happening all year,” says Alec Gutierrez, a senior market analyst for KBB. “Some of the weakest segments are subcompact, compact and hybrids.”

This trend reflects a couple of important things to consider about the current market: first, it shows that gas prices have been remaining at what consumers view as a reasonable level for a prolonged period of time.  But more importantly, it shows that consumers are not thinking long-term when it comes to their vehicle purchases.  The federal government is mandating smaller, more efficient cars, but for now consumers are staying away from them due to higher costs.

Lower demand for SUVs during 2008’s price spike led to lower prices which are now very enticing to buyers. “We do see big stuff moving,” says Steve Bussjaeger, owner of the Star SuperCenter used car lot in Glendale, Calif. “They got cheap… People are more price conscious than gas (price) conscious.”

To those looking for a compact car, the near future will hold some deals, as demand for larger vehicles is having the inverse effect on small cars.  Value is down 15% since 2008 on small autos.

“The entire industry has suffered this year. … The small-car segment has been affected by this as well,” says Smart USA spokesman Ken Kettenbeil. “However, we know that in time both situations will change. For this, and many other reasons, the trend will transition toward smaller vehicles.”

Photo courtesy of wili hybrid under the Creative Commons License.

With the average price of used vehicles dropping due to the current economic decline, the actual cash value of vehicles has dipped.  The price of raw materials, however, has gotten higher, which has caused a spike in repair costs that can lead to more total loss claims due to collisions.

The most efficient way to handle the problem of higher repair costs is simple: salvage parts. The use of salvaged parts lowers the cost of repairs, creating a lower number of total loss claims across the board.  A recent research report by Frost & Sullivan entitled “A Strategic Analysis of the North American Automotive Salvage Industry” examined the real impact that higher repair costs can have on business.

“More insurance companies are advocating the use of salvage (recycled) parts, as they try to control collision repair costs, thereby driving unit shipment of salvage parts,” says Frost & Sullivan industry manager Avijit Ghosh. “If repair costs are not controlled, the insurance premiums will amplify.”

The salvage industry faces some tough competition from original equipment manufacturer (OEM) parts, which are generally considered to have better fit, form and function and provide enhanced safety and reliability.  Most collision repair shops use OEM parts because they fit more easily and have a much higher profit margin than aftermarket parts.

“However, some insurance companies fully support and encourage repair shops’ usage of salvage parts for collision repair,” Ghosh says. “The primary objective is to reduce the cost of repair practice and maximize the value of the salvage vehicles.”

In addition to fighting the high cost of repairs, salvage is an effective and convenient way of disposing of used vehicles.  With tax credits acting as incentives for consumers who turn in their old cars, the availability of salvage parts has risen significantly.

The salvage industry is also helping to get vehicles where they are needed most: North American auto brands in developing countries have raised their demand for salvage vehicles that can be reconditioned at a reasonable cost for use in those regions in order to maximize returns and get the most out of their vehicles.

Photo courtesy of kodiax2 under the Creative Commons License.

Vehicle resale values continued to show resilience last week and have remained mostly consistent for the past three moths, reports Black Book managing editor Ricky Beggs.

Of the 14 truck segments that Black Book studies, only two have experienced any loss of value, with the overall movement of value remaining positive for the past 17 weeks.

Car values also remained strong, with only 1 of 10 segments decreasing in price overall.  Beggs says that the last three months have showed an upward trend in car values. “The bottom line,” Beggs said, “is the auction activity has solid buyer interest with a few models being extremely strong.”

Though a sharp decline has been averted, Beggs cautions that a brief slowdown will strike wholesale demand with the effects of Cash for Clunkers finally disappearing.

Mitsubishi is recalling nearly 7,000 model-year 2008-2009 Lancer Evolution, Ralliart, and Sportback Ralliart vehicles with turbocharged engines.

The connection between the fuel return pipe and the engine, coupled with the frequency of operation at certain engine revolutions, may cause a stress crack to develop at the fixed portion of the fuel pipe over time.  The fault is confirmed by the NHTSA.

If a stress crack develops in the pipe, fuel leakage can occur and increase the risk of engine fire.

As part of the recall, the fuel return pipe will be replaced with a brand-new part and equipped with additional brackets to better control vibrations on the pipe.  The repair will be performed free of charge.

The recall is set to begin around September 29th.  To contact Mitsubishi about this issue, call (888) 648-7820.

Photo courtesy of viZZZual.com under the Creative Commons License.

Chrysler has announced that it will be offering fleet incentives on several 2010 Chrysler, Jeep, and Dodge vehicles for the 2010 model year. Incentives range from $500 to $3,000.

2010 Fleet Incentives:

• Charger (Including AWD, excluding SRT models) – $2,000
• Chrysler 300 (Including AWD, excluding SRT models) – $2,000
• Chrysler PT Cruiser – $2,000
• Chrysler Sebring Convertible – $2,000
• Chrysler Sebring Sedan – $2,000
• Chrysler Town & Country – $2,000
• Dodge Avenger Sedan – $2,000
• Dodge Caliber (Excluding SRT Models) – $1,000
• Dodge Dakota – $3,500
• Dodge Grand Caravan (Including CV) – $2,000
• Dodge Journey – $1,500
• Dodge Nitro – $2,000
• Dodge Ram 1500 Regular/Quad/Crew Cab – $2,000
• Dodge Ram 2500/3500 Regular/Quad/Mega Cab – $1,000
• Dodge Ram 3500/4500/5500 Chassis Cab – $3,000
• Jeep Commander – $3,000
• Jeep Compass – $1,500
• Jeep Grand Cherokee 4×2, 4×4 – $3,000
• Jeep Liberty 4×2, 4×4 – $2,000
• Jeep Patriot – $1,500
• Jeep Wrangler Base & Sahara 4×2, 4×4 – $1,000
• Jeep Wrangler Rubicon 4×2, 4×4 – $500

For further details and eligibility requirements, contact your local Chrysler dealer or call (800) 999-FLEET.

On Tuesday, we told you about some free web seminars on fleet safety.  Now, FleetMentor is joining the club with a series of webcasts designed to streamline fleet management while improving motor carriers’ bottom line.

J.J. Keller, the provider of FleetMentor’s “online toolbox,” will host the series, which kicks off on Wednesday, October 18th with “Management Controls for Hours of Service.” The program will detail how to identify trends and creating procedures to stay in compliance with HOS regulations.

On Tuesday, November 24th, the next installment of the series, “Driver Qualification Open Forum,” will address the issue of making sure drivers are qualified. This forum, in an open format with an extended question and answer session, will review DOT rules and cover the basics of driver qualification.

The final program, taking place on December 30th will focus on lowering insurance costs for fleets. Entitled “How to make yourself a low-risk carrier,” the focus will be on how your safety record identifies you as a carrier. It will look at current regulations and practices you can implement to improve your safety record.

All of the webcasts will take place at 2 p.m. EDT.  To register for the webcasts, visit www.fleetmentor.com

Photo courtesy of GIHE under the Creative Commons License.

After a hiatus of more than a year, Chrysler is ready to resume leasing vehicles starting with the 2010 model year.

“We are pleased to re-enter the leasing market so we can offer customers the opportunity to lease vehicles at rates competitive with the marketplace,” said Peter Fong, head of sales and chief executive of the Chrysler car brand. “Our ability to offer additional financing options will benefit consumers who have long been fans of leasing and appreciate the flexibility this financing option gives them.”

Chrysler Financial stopped offering leases in August 2008 due to tight credit markets and heavy losses on existing SUV leases caused by a decline in popularity.  The increased difficulty of leasing cars led to lower sales for Chrysler. Leasing is a popular method of acquiring a vehicle because it allows consumers to make lower monthly payments despite being less cost-effective in the long term.

Leasing was never a huge part of Chrysler’s business, but generally made up 10% to 15% of the company’s sales, said Jesse Toprak, a sales analyst for the auto pricing site Truecar.com.

“We have seen some of those customers go to other manufacturers because of Chrysler not offering leasing,” he said.

Former GM financing arm GMAC Financing Services will now be handling leasing services for Chrysler.  GM has also just recently begun offering leasing after dropping out last year for practical purposes during its bankruptcy.

Leasing will be available on all 2010 Chrysler, Jeep, and Dodge vehicles.

Toyota Motor Sales USA is issuing a warning to consumers about the risks of installing the wrong floor mats in their vehicles.

Toyota decided to make the issue a priority after an August incident in which a California Highway Patrol officer and three members of his family tragically lost their lives on a highway near San Diego.  The victims were driving a 2009 Lexus ES350 loaned to them by a local dealer.  Law enforcement investigators concluded that the cause of the accident may have been an all-weather floor mat from a different Lexus model.  If the mat was installed incorrectly, then it could have interfered with the operation of the accelerator and caused the deadly crash.

All-weather mats are often installed as an accessory item either by dealers or consumers. Any after-market floor mat has the potential to interfere with the accelerator pedal if the mat is not properly secured or if it isn’t the factory-installed mat for that vehicle.

“We are instructing all of our Lexus and Toyota dealers to immediately inspect their new, used, and loaner fleet vehicles, and we urge all other automakers, dealers, vehicle owners, and the independent service and car wash industries to assure that any floor mat, whether factory or aftermarket, is correct for the vehicle and properly installed and secured,” Toyota said in a released statement.