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Industry News Briefs


AMSOIL Used for Horsepower Gain
An article in the June 2004 issue of Chevy High Performance entitled "Mission 305, Part 1" took aim at "getting some power from GM's "weak-kneed 305." Involved in the process was Joe Jill of Superior Automotive Engineering of Anaheim, CA, who advised using AMSOIL Series 2000 0W-30 Motor Oil. "We tried out AMSOIL's 0W-30 Severe Duty synthetic motor oil, along with one of the company's Super Duty oil filters," writes associate Editor John Nelson. "Designed for LT1 and LS1 powerplants, Superior's Joe Jill says he's seen up to 10HP gains simply by switching to this oil, and the intervals between oil changes are greatly increased."

Average Fuel Economy Remains Consistent
According to the Environmental Protection Agency (EPA), average fuel economy for 2004 automobiles is 20.8 MPG, unchanged from 2003. Fleet-wide averages for American light- Duty vehicles has been consistent since 1997, ranging from 20.6 to 20.9 MPG. Average fuel economy hit its peak in 1987 at 22.1 MPG. EPA officials predict new technology, including hybrid-electric vehicles, clean diesel technology, and variable displacement engines, will raise fuel economy averages in the coming years.
 

Gasoline Prices in Perspective
Although rising gasoline prices have stressed out motorists this summer, prices have not been as volatile as many other commodities over the past 20 years. According to Petrotec, gasoline prices have increased 44.5 percent over the past 20 years, while prices for most of the following commodities have increased more:

Coffee 45.0% Eye Care57.6% Beer 71.6% Meats 80.1% Cereal 87.0% Postage 90.9% Seafood 93.2% Air Fare 127.6% Doctors 174.5% Dentists 202.1% College 328.5%
 

Wear and Deposits Affect Fuel Economy
According to the book "How to Select A Motor Oil for Your Car or Truck," wear and deposits eventually affect engine cimbustion and fuel economy. Valve train wear can affect timing and valve movement, while wear on rings, pistons, and cylinder walls impacts volumetric compression efficiency and combustion blow-by, leading to power loss. Greatest wear is caused by particle sizes that are in the same range as the oil film thickness. According to a study by General Motors, "controlling particles in the 3 micron to 10 micron range had the greatest impact on wear rates, and engine wear rates correlated directly to the dust concentration levels in the sump."

Warning Labels for Obsolete Motor Oils
The National Conference on Weights and Measures has added a lubricant category to its Handbook 130, which serves as a prototype for states that regulate consumer products. It calls for warning labels on obsolete motor oil containers, as well as documentation of performance claims upon request. "This is basically something that can serve as a model regulation for states that want to address such problems," says Dennis Johannes, chairman of the conference's Laws and Regulation committee. The new rules automatically become law on January 1 in Pennsylvania, New Hampshire, and West Virginia, while other states are expected to soon adopt the regulations or develop their own.

More Vehicle Choices
There are currently more than 200 major automotive nameplates (discrete car and truck lines) on sale in the United States, and the number is expected to continue rising over the next five years. According to AutoPacific Inc, launching and establishing a new vehicle line is more difficult and expensive than ever, requiring billions of dollars to develop, manufacture and merchandize. Yet, auto industry analysts expect 50 new nameplates will be introduced by 2009. Sales are not increasing quite as quickly, with AutoPacific predicting total sales rising from 16.6 million units now, to 18 million in 2009. "It is not surprising that cutting through this clutter of products and messages is almost insurmountable to all but a small few," says AutoPacific Inc.

Vehicle Maintenance Becomes Bigger Priority
The Automotive Aftermarket Suppliers Association (AASA) reports that unperformed automotive maintenance dropped from $62 billion to $43.3 billion in 2003. According to AASA director of market research Frank Hampshire, the drop can be attributed to increased consumer interest in maintenance due to uncertainty about future economic conditions, as well as a high rate of new vehicle sales that took many maintainable vehicles off the road. "When money is the only issue, car owners will neglect vehicle maintenance," says Hampshire. "When their job or economic future is uncertain, consumers will maintain their cars to protect their investment and to make sure the vehicle remains in good running condition." Of the $43.3 billion in neglected maintenance, tires and shocks/struts represent the largest product segments.

Hybrids Experience Engine Problems
According to the J D Power & Associates 2004 Vehicle Dependability Study, diesel and gasoline elecric hybrid vehicles have more engine problems than their gasoline-powered counterparts. The study surveyed over 45,000 owners of 2001 model year vehicles in the areas of malfunction, NVH (noise, vibration, and harshness), drivability, dependability, and safety. Owners of Toyota Prius and Honda Insight hybrid vehicles, and Volkswagen diesel vehicles reported twice as many problems as owners of the corresponding gasoline models, with the most common problems related to engine computers and emissions-control systems. Because hybrid vehicles weren't introduced until 1999, a J D Powers executive suggests the problems were likely due to quirks that weren't worked out yet by the 2001 model year.

RV Sales Strong
Despite recent spikes in the prices of gasoline and diesel fuel, Winnebago Industries, Inc is reporting record revenues from motorhome sales, with its profits nearly doubling in its third fiscal quarter. "We continue to believe the long-term prospects remain extremely positive for Winnebago and our industry." says company chairman, president, and CEO Bruce Hertzke. "Economic factors have improved since last year at this time. Fuel prices have stabilized and it appears consumer confidence has begun to rise." According to Hertzke, Winnebago's redesigned diesel vehicles, the Winnebago Journey and Vectra, and the Itasca Meridian and Horizon, are largely responsible for the company's large increase in diesel-motorhome shipments.

Freedonia Predicts Strong future for Synthetics
According to a study be the Freedonia Group, lubricant demand in the United States will grow 0.9 percent per year for the next five years, reaching 2.745 billion gallons in 2008. The study predicts a two percent annual growth for general industrial oils and a 0.2 percent annual growth for automotive motor oils. Freedonia projects demand for synthetic lubricants to grow six times faster than the overall market, with synthetics accounting for 10 percent of the overall demand by 2008. More rapid than average growth is also predicted for high mileage oils and oils marketed specifically for ATV's, motorcycles, and scooters.

Gas Prices Affect SUV Sales
As gasoline prices have remained higher than average, fullsize SUV sales have suffered. Average wholesale prices for used fullsize SUV's dropped steeply over the summer months, while sales of the Hummer H2 have fallen by more than 25 percent. In addition to high gas prices, industry analysts blame the lag in used truck sales on large cash incentives on new fullsize SUV's, while the H2 is likely experiencing a sales slump typical of vehicles that are popular at launch, but can't sustain high sales numbers over the long term.

Business and Leisure Travel on the Rise
Both business and leisure travel is on the increase in America. According to the latest annual Domestic Travel Market Report released by the Travel Industry Association of America, 68 percent of Americans adults took a leisure or business trip of at least 50 miles one way in 2003. The 1.14 billion person-trips taken in 2003 represent an increase of 1.2 percent from 2002, while overall domestic travel volume grew 9.8 percent mostly due to increases in leisure travel. This could be a signal of increasing confidence in the safety of travel and in the economy in general.

GM Recalls 1.5 Million Vehicles
General Motors will recall its midsize SUVs for a tail-lamp problem affecting 2002-2004 Chevy TrailBlazer, GMC Envoy, Oldsmobile Bravada and 2004 Buick Rainier models, all of which have tail lamps that could fail, leaving drivers vulnerable to accidents. The vehicles involved include 946,817 SUVs. In addition to the SUV recall, GM will recall the 2003 Cavalier/Sunfire models for tail-lamp and turn-signal problems (339,008 vehicles), and 2003 Chevy Malibu, Pontiac Grand Am and Olds Alero models for sticking accelerator pedals (204,317 vehicles). In addition, the new Cadillac XLR and 2005 Corvette are being recalled for brake-fluid leaks (5,914 vehicles).

RV Sales Strong in 2004
Professor Richard Curtin, director of the Survey of Consumers at the University of Michigan and economic consultant for the Recreation Vehicle Industry Association (RVIA), forecasts that 347,800 motorhomes and towable RV's will be shipped from manufacterers to dealers this year, an 8.4 percent increase over 2003. However, Curtin predicts the market will pull back almost 8 percent to about 320,300 units in 2005, a number consistent with the delivery totals of 1999 and 2003. According to Bruse Hertzke, chairman of the RVIA, Curtin's forecast of a new 25 year high for RV shipments in 2004 is too conservative. "Increases in interest rates will have a greater impact on RV shipments in 2005," says Hertzke. "But even then the the size of the impact will be relatively small due to the offsetting impact of strong job gains as well as increases in wages."

Strong Medium Duty Truck Sales in 2004
According to research performed by Ward's Communications, US retail sales of Class 3 - 7 medium duty trucks are on the upswing. Through the first seven months of 2004, sales were up 19.2 percent compared to the same period in 2003. According to Peterbilt Motors Co. general manager Dan Sobic, medium-duty "quote and ordering activity is quite solid." Thomas Celliti, vice-president of Navistar International's Medium Truck Vehicle Center, predicts the overall Class 6 and 7 market will be up 15 percent from 2003. Class 6 trucks showed the largest growth through July, growing 48.7 percent, while Class 7 truck sales climbed 12.6 percent.

BMW Looks to Overtake VW in US Sales
Although Volkswagen has long been the top selling European vehicle brand in the United States, BMW is quickly closing in. The numbers for 2004 show Volkswagen leading BMW in sales by only 45 units through November. The 11 month totlas show Volkswagen with 234,642 vehicles sold in the US, with BMW close behind at 234,597. The numbers for 2003 showeds Volkswagen up 65,000 units through November. The only year BMW outsold Volkswagen in the US was 1993, the year Volkswagen stopped production in its Puebla, Mexico plant. While Volkswagen enjoyed increased sales in 2001 due to the redesigned Jetta, Passat, and New Beetle models, its sales have been steadily declining since 2002. Through November 2004, Volkswagen sales were down 17.6 percent for the year, while BMW sales were up 6.7 percent.

Women Prefer Luxury Vehicles
According to WomanMotorist.com, luxury vehicles are becoming a hot commodity with female drivers. "Luxury vehicles are among the most requested products by women," says editor-in-chief Sandra Kinsler. "Clearly women are interested in entry-level luxury products as well as some of the highest priced production vehicles on the market. And this should come as no surprise. The data clearly depicts an increased interest among women for very high priced vehicles, such as Maybach and Aston Martin." The study also indicates increased female demand for pickup trucks.

Dodge Jumps Back Into Car Market
With trucks accounting for 78 percent of its sales in 2004, Dodge has become known primarily as a truck manufacturer. Now it's looking to reestablish itself in the car market with the introduction of the 2006 Charger sedan. "Our biggest challenge for 2005 is getting into the car business on a volume basis," says Jon Myers, chairman of the Dodge National Dealer Council. "It's an arena we haven't been in for a long time." Known for producing cars with limited runs, including the Viper and SRT-4 Neon, Dodge plans to target a high volume, mainstream car segment with the Charger. Fuel efficiency will play an improtant role in the vehicle's marketing. A displacement system on the Charger's optional Hemi V-8 engine improves fuel economy by up to 20 percent by deactivating four cylinders when full power is not needed.

Public Transportation Demand Rising
Reflecting an increased demand for transportation choices, 24 of 31 transit-related measures passed during November's election. The initiatives are worth over $40 billion. "The message is loud and clear," says William W Millar, president of the American Transportation Association. "People want more public transportation. These initiatives prove that people are willing to invest in quality transit services that will pay dividends for years to come." Eighteen of 22 transit-related initiatives also passed earlier in 2004, putting the success rate at 80 percent. "This year has also shown that it's not just big metro areas that are clamoring for transit," says Stephanie Vance, program manager for the Center for Transportation Excellence. "Medium and smaller communities like Parkersburg, WV, El Paso County, CO, and Kalamazoo, MI, also see its benefits."

Turbo-Charger Demand on the Rise
Offering benefits such as increased fuel economy and power, and reduced powertrain weight and enmmisions, turbo-charger demand has been rising sharply over the past few years, most notably in European countries where direct injection diesel engines are popular. While normally aspirated diesel engine production continues to decline, production of turbo-charged diesel-engined light vehicles more than doubled between 1998 and 2003, rising from 3.6 million to 7.7 million vehicles. The demand for super-chargers has also increased, but not at the same rate as turbo-chargers. Advances in the super-charger field have allowed vehicle manufacturers to produce smaller engines that combine the performance and horsepower benefits of a large engine with the fuel economy benefits of a small engine.

Owner-Operators Comprise One-Third of Carrier Fleet
Acccording to date from the Vehicle Inventory and use Survey conducted by the U.S. Census Bureau and the Department of Commerce, there are more owner-operator truckers than previously estimated. "Using ratios discovered by our membership profile survey and this new data, we can estimate that owner-operators comprise about one-third of the total for-hire carrier fleet, which is estimated by the survey as 1.1 million large trucks," says John Siebert, project manager for the OOIDA Foundation. The survey shows 390,000 total owner-operators and 545,000 total owner-operator trucks, with each owner-operator owning an average of 1.4 trucks.

Hybrid Technology Grabs Hold of the Bus Market
Optima Bus Corporation recently announced plans for a fuel efficient, low emission hybrid-electric powered version of its popular Opus low floor bus. Expected to yield fuel savings of up to 50 percent over traditionally powered buses, Optima predicts hybrid sales will comprise 40 percent of the company's total sales volume by 2009. When the first prototype of the new bus is unveiled in May, Optima plans to tour trade shows and perform demonstrations for transit organizations around the country.

Chrysler MDS Requires 5W-20
According to Chrysler, it is essential to use the correct motor oil viscosity when changing the oil on a 2005 Magnum or 300 model with the 5.7L Hemi V8 engine. The engine makes use of a multiple displacement system (MDS) that is designed to cut out cylinders during cruise consitions, improving fuel economy and lowering emissions, while firing on all eight cylinders under heavy load conditions, including wide-open throttle operations. The valve-train of this system is extra sensitive to oil thickness and flow rate, and can exhibit problems if the wrong oil viscosity is installed. Only 5W-20 motor oil should be used when performing an oil change on any 5.7L-equipped Magnum or 300. AMSOIL offers XL (Extended Life) 5W-20 Synthetic Motor OIl (XLM) for these applications.

Hybrid Buses Introduced in Canada
Hybrid engine technology is about to be introduced to Canadian bus riders. According to GM Canada and New Flyer Industries, BC Transit of British Colombia will be the first Canadian transit system to use the General Motors advanced diesel-electric system during regular service. BC Transit expects delivery of six 40-foot hybrid diesel-electric buses this spring, with three going to the Victoria Regional Transit System and three going to the Kelowna Regional Transit System.

Diesels Dominate Commercial Truck Market
According to R L Polk Inc, diesel vehicles greatly outnumber gasoline-powered vehicles in the medium and heavy-duty commercial truck market. Only 15.6% of new commercial truck registrations in 2004 were gasoline powered. International Truck and Engine Corp holds the greatest share of the diesel engine market in Classes 3-6, while Caterpillar Inc holds the great4est share in Classes 7 and 8. The gasoline engine market leader is General Motors in Classes 3, 6, 7 and 8, while Ford is the leader in Classes 4 and 5.

California City Introduces Complete Hybrid Bus Fleet
With a fleet of remanufactured gaasoline hybrid-electric powered buse3s, Elk Grove, CA launched its nefw transit service known as e-tran. According to City Manager John Danielson, Elk Grove is the first US city to have a full hybrid-electric commuter bus fleet. The remanufactured buses were originally 40-foot 1991 Gillig Phantoms before being completely rerbuilt by Complete Coach Works with ISE ThunderVolt hybrid drive systems.

Future Looks Bright for 4WD
According to the J D Power and Associates "2004 Global 4WD-Driveline Market Report," four-wheel drive vehicle production will rise significantly in the coming years. The report estimates production of four-wheel-drive cars, trucks, and crossover vehicles to climb from its current 28 percent of total North American production to 37 percent by 2008. Automakers are expected to equip an increasing number of front-wheel drive models with four-wheel of all-wheel drive capabilities. While 87% of all four-wheelers are currently based on rear-drive drivelines, the number is expected to fall to 68 percent by 2008. The popularity of SUVs is the leading force behind the 4WD surge, with 64 percent of SUVs having 4WD capability, followed by 42 percent of pickups, four percent of vans and three percent of cars.

Ford Oil Leak
Some 2003 and 2004 Ford Explorer, Lincoln Navigator, and Mercury Mountaineer models may exhibit an oil leak from underneath the front end. It is likely a leak in the axle seal of the passenger side front axle tube. Ford advises getting the vehicle in the air and inspecting both front axle tubes. According to Ford, if the seal has spun in its bore, it will be necessary to replace the entire front axle assembly. If the seal is leaking, but the bore is unharmed, replace only the axle seal.


 


 

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