No Threat Of $4-Per-Gallon Gas, But Prices Will Top $3 Soon
Gas prices keep creeping upward, but don't expect any relief anytime soon. Don't expect $4 either.
That's what the federal government warns in its latest monthly report; the U.S. Energy Information Administration has predicted that gas prices will jump well past the $3-a-gallon mark in much of the country this spring and summer—up to a national-average $2.84 a gallon for this calendar year.
The price climb that we're seeing now might be the beginning of a trend that lasts through the summer, experts say.
U.S. average pump prices are up about five cents a gallon for the third week in a row, to about $2.75 a gallon as of March 8. That's up 81 cents versus a year ago.
According to AAA, national-average prices have risen seven cents in the past week, from about $2.71 to $2.78.
Pump prices remain highest in West Coast cities, where they've already been topping $3.00 for some time. Los Angeles and San Francisco are both around $3.07 a gallon and Seattle nearly $2.94. Statewide, California averaged almost $3.05 a gallon. Gas in the Gulf Coast states remained cheapest, at less than $2.65, with prices in Houston just $2.56.
With vehicle miles traveled remaining quite flat (they're still down three percent from 2007)—due in part to a high unemployment rate—the lower demand will help keep prices under control, noted a source to USA Today.
As gasoline prices crept up, oil prices settled down slightly to less than $82 a barrel this week. They're expected to be quite stable, rising to $85 a barrel only by late 2011. Also due to the lowered demand, U.S. refineries are at about 14 million barrels of crude per day but have a total capacity of 17.7 million.
Gas prices have been rising rather steadily since January 2009, as we reported last month, yet data from several sources, including AutoPacific, has suggested that consumer interest in small cars might be waning. After falling nearly to the $1.60 mark then, the price of gas has risen more than a dollar a gallon since.
There's a host of new small-car models ready for introduction this year, including the 2011 Ford Fiesta and 2011 Mazda2, and the 2011 Chevrolet Cruze, so the timing is a little off. Even more small-car models, like an all-new 2012 Ford Focus, arrive in calendar-year 2011.
The key to understanding why consumers don't feel as concerned could be that there haven't been the extreme price swings (volatility) of the past. By now most drivers don't seem to change their habits at $3-a-gallon gas, but the $4 mark, as we saw for a time in 2008, shocks some drivers and shoppers into panic mode.
Right now, it doesn't look like we'll have to deal with another $4 shock anytime soon.
This story originally appeared at The Car Connection
| Permalink:No Threat Of $4-Per-Gallon Gas, But Prices Will Top $3 Soon |  |
No Threat Of $4-Per-Gallon Gas, But Prices Will Top $3 Soon
Gas prices keep creeping upward, but don't expect any relief anytime soon. Don't expect $4 either.
That's what the federal government warns in its latest monthly report; the U.S. Energy Information Administration has predicted that gas prices will jump well past the $3-a-gallon mark in much of the country this spring and summer—up to a national-average $2.84 a gallon for this calendar year.
The price climb that we're seeing now might be the beginning of a trend that lasts through the summer, experts say.
U.S. average pump prices are up about five cents a gallon for the third week in a row, to about $2.75 a gallon as of March 8. That's up 81 cents versus a year ago.
According to AAA, national-average prices have risen seven cents in the past week, from about $2.71 to $2.78.
Pump prices remain highest in West Coast cities, where they've already been topping $3.00 for some time. Los Angeles and San Francisco are both around $3.07 a gallon and Seattle nearly $2.94. Statewide, California averaged almost $3.05 a gallon. Gas in the Gulf Coast states remained cheapest, at less than $2.65, with prices in Houston just $2.56.
With vehicle miles traveled remaining quite flat (they're still down three percent from 2007)—due in part to a high unemployment rate—the lower demand will help keep prices under control, noted a source to USA Today.
As gasoline prices crept up, oil prices settled down slightly to less than $82 a barrel this week. They're expected to be quite stable, rising to $85 a barrel only by late 2011. Also due to the lowered demand, U.S. refineries are at about 14 million barrels of crude per day but have a total capacity of 17.7 million.
Gas prices have been rising rather steadily since January 2009, as we reported last month, yet data from several sources, including AutoPacific, has suggested that consumer interest in small cars might be waning. After falling nearly to the $1.60 mark then, the price of gas has risen more than a dollar a gallon since.
There's a host of new small-car models ready for introduction this year, including the 2011 Ford Fiesta and 2011 Mazda2, and the 2011 Chevrolet Cruze, so the timing is a little off. Even more small-car models, like an all-new 2012 Ford Focus, arrive in calendar-year 2011.
The key to understanding why consumers don't feel as concerned could be that there haven't been the extreme price swings (volatility) of the past. By now most drivers don't seem to change their habits at $3-a-gallon gas, but the $4 mark, as we saw for a time in 2008, shocks some drivers and shoppers into panic mode.
Right now, it doesn't look like we'll have to deal with another $4 shock anytime soon.
This story originally appeared at The Car Connection
| Permalink:No Threat Of $4-Per-Gallon Gas, But Prices Will Top $3 Soon | |
Ford Mustang Timeline: The Good, The Bad, and The Muscly
The Ford Mustang is one of a handful of cars rightfully called icons. Since its first spin on a car-show turntable at the World's Fair in 1964, it's been the auto industry's standard measure of overnight success. And for at least some of its wild youth, it was the cautionary tale of what happens when a celebrity hits the skids.
This month we're celebrating the arrival of a new Mustang with a look back at the past--before our first test drives of the 2011 pony car.
As we spin back through 46 years and 47 model years of Mustangs, it's easy to pinpoint the highlights--and the low-water marks--that have shaped the Mustang's history as much as a stylist's pen, or an engineer's slide rule. Or their MacBook Pros, for that matter.
That sounds like a timeline to us.
For those of you still writing on paper, reading books and still thinking of the Ford Mustang as a timeworn cliche, it's time for a crash course. (Not that kind.) And for those of you unabashed about your Mustang love, online and elsewhere, we're going to be tweaking the 'Stangs that history hasn't treated too kindly. Bear with us.
Thankfully, there's never been a better Mustang than the 2011 Mustang we're getting ready to drive--and to show you top to bottom, inside and out across the High Gear Media universe. We're marking the arrival of the 2011 Mustang with a month of new stories, and there's one place to find everything we have in store for you today, in two weeks' time, and after.
Right now, you can find a big index of stories over at one of our newest sites, NASCAR AutoGuide--it's built in partnership with NASCAR.com and AutoTrader, specifically to deliver our huge RSS feed of daily auto reviews, news and features to a whole new audience. That page shows you just about everything we've written on the 2011 Mustang from our "Big Three" destinations--TheCarConnection, MotorAuthority and GreenCarReports--as well as posts from other growing sites in our community, from MustangBlog to SportsCarMonitor to AllSmallCars.
Set your Google Alerts now: in two weeks, we'll bring you the first drive of the 2011 Ford Mustang both here at TheCarConnection and at MotorAuthority as well. We'll post our review of the reborn 5.0 Mustang, live from Los Angeles at 12:01 a.m., Monday, March 29th. Then in April, we'll bring it all home with a wrap-up on the day the Mustang was born, April 17.
While you wait, you know the drill--you'll find a comprehensive set of Ford Mustang research and shopping tools right here at TheCarConnection:
- Ford Mustang vehicle page
- 2011 Ford Mustang preview
- 2011 Ford Mustang photos
- 2011 Ford Mustang videos
- Ford Mustang prices from TrueCar
- 2011 Ford Mustang dealer pricing
- Used Ford Mustang classified ads
- Twitter feed for #2011 #Ford #Mustang
So...are you ready to turn back time? Turn to the next page:
Ford’s New 5.0 V-8: Back In Black, And Ready For The Track
The 5.0 is back, and Ford didn't take the opportunity lightly. The 2011 Ford Mustang GT will pack a 412-horsepower, 5.0-liter V-8 that for all practical purposes is an all-new engine. A very stoutly built, race-ready one at that.
Along with the 3.7-liter V-6 that will also be introduced in the 2011 Ford Mustang, Ford suddenly has a completely refreshed powertrain lineup for the pony car and nothing to be ashamed of. Considering weight, in fact, the 'Stang now has a leg up on its rivals.
It's an about-face from the past several years, when Ford has seemed a step behind other automakers with respect to V-8 engines—especially if you take a look at power output. Even with the Mustang's lighter weight than the Camaro and Challenger, Ford's current 315-horsepower, 4.6-liter V-8 in the 2010 Mustang GT is no match for the larger Chevy and Chrysler V-8s.
With the '5.0' badge, the 2011 Mustang GT approaches the power output of those big-displacement engines while promising both stout construction and race-ready performance plus better fuel economy in everyday driving.
Bore is 92.2 mm (3.63 inches), with a 92.7-mm (3.65-inch) stroke, calculating out to just over 302 cubic inches and—this time—properly rounding up to 5.0 liters. And the new engine in the 2011 GT makes 412 horsepower, which should be enough for the lighter Mustang to beat both the 2010 Chevrolet Camaro SS and the 2010 Dodge Challenger R/T. In the Camaro SS, GM installs a huge 6.2-liter V-8, making 426 horsepower, while Chrysler puts its 372-hp, 5.7-liter Hemi V-8 in the Challenger R/T, among other vehicles, and the 425-hp, 6.1-liter V-8 in the Challenger SRT8.
At the same time, Ford projects an estimated 17 mpg city, 25 highway for the new engine (with the automatic) in the Mustang. The Camaro SS gets 16/25, while the Challenger SRT8 is rated at just 13/19.
The new engine will require just 87-octane gasoline, though 91-octane will be recommended for peak performance.
Ford’s New 5.0 V-8: Back In Black, And Ready For The Track
The 5.0 is back, and Ford didn't take the opportunity lightly. The 2011 Ford Mustang GT will pack a 412-horsepower, 5.0-liter V-8 that for all practical purposes is an all-new engine. A very stoutly built, race-ready one at that.
Along with the 3.7-liter V-6 that will also be introduced in the 2011 Ford Mustang, Ford suddenly has a completely refreshed powertrain lineup for the pony car and nothing to be ashamed of. Considering weight, in fact, the 'Stang now has a leg up on its rivals.
It's an about-face from the past several years, when Ford has seemed a step behind other automakers with respect to V-8 engines—especially if you take a look at power output. Even with the Mustang's lighter weight than the Camaro and Challenger, Ford's current 315-horsepower, 4.6-liter V-8 in the 2010 Mustang GT is no match for the larger Chevy and Chrysler V-8s.
With the '5.0' badge, the 2011 Mustang GT approaches the power output of those big-displacement engines while promising both stout construction and race-ready performance plus better fuel economy in everyday driving.
Bore is 92.2 mm (3.63 inches), with a 92.7-mm (3.65-inch) stroke, calculating out to just over 302 cubic inches and—this time—properly rounding up to 5.0 liters. And the new engine in the 2011 GT makes 412 horsepower, which should be enough for the lighter Mustang to beat both the 2010 Chevrolet Camaro SS and the 2010 Dodge Challenger R/T. In the Camaro SS, GM installs a huge 6.2-liter V-8, making 426 horsepower, while Chrysler puts its 372-hp, 5.7-liter Hemi V-8 in the Challenger R/T, among other vehicles, and the 425-hp, 6.1-liter V-8 in the Challenger SRT8.
At the same time, Ford projects an estimated 17 mpg city, 25 highway for the new engine (with the automatic) in the Mustang. The Camaro SS gets 16/25, while the Challenger SRT8 is rated at just 13/19.
The new engine will require just 87-octane gasoline, though 91-octane will be recommended for peak performance.
Infiniti M, Lexus HS 250h, Toyota 4Runner Ace IIHS Crash Tests
From the latest round of crash tests conducted by the Insurance Institute for Highway Safety, three models that are all-new this year have been given excellent ratings for frontal and/or side-impact safety.
The all-new 2010 Lexus HS 250h hybrid achieved the best 'good' scores in all of the measurement categories of its frontal offset crash, weighing in with a 'good' evaluation overall.
The IIHS notes that the HS 250h is "derived from the Toyota Prius," so it's not surprising that while the HS doesn't get ratings that identical to those of Toyota's iconic hybrid, they're close. Although the HS 250h wasn't rated for side impact yet, the 2010 Prius has been rated 'good.'
The new 2011 Infiniti M37 and M56 models earned top 'good' scores in all aspects of the IIHS frontal offset test. In the side impact test the M sedans achieved 'good' overall but were rated a step down, to 'acceptable,' with respect to "structure/safety cage."
The 2010 Toyota 4Runner also earns a 'good' overall frontal offset score, with top ratings in all segments of the test except head/neck injury, where it was rated acceptable. The Toyota 4Runner is also new for 2010 and has a completely new structure, so its 'good' side-impact rating for 2009 does not necessarily carry over to '10.
In addition to simple occupant protection, all three of these models have some advanced features that might help avoid an accident completely. For instance, the 2010 Lexus HS 250h offers a wide-angle front-view camera system, adaptive cruise control, and even a Lane Keep Assist system that studies lane markings and helps steer you back into your lane. Then there's a very effective blind-spot warning system on the 2011 Infiniti M; and the 2010 4Runner offers a host of off-road electronics aimed at preserving traction and stability, plus a new Multi-Terrain Select system and fish-eye rearview camera.
This story originally appeared at The Car Connection
| Permalink:Infiniti M, Lexus HS 250h, Toyota 4Runner Ace IIHS Crash Tests | |
Driven: 2010 Cadillac CTS Wagon
The Cadillac CTS Wagon offers just as much, if not more, day-to-day utility as most SUVs or crossovers while being a heckuvalot more fun to drive.
It's easy to feel like an old nag when saying this, because nearly all of the High Gear Media editorial staff, and nearly every new-car reviewer and critic in the U.S., has been arguing this about sport wagons for more than a decade.
And yet real car shoppers don't seem to listen.
Wagons—even the really great wagons like the CTS—still sell in very low volumes. It's gotten so bad that BMW, one of the companies from which we've come to expect sport wagons, is thinking about passing on its Touring (wagon) body style for its new 2011 BMW 5-Series this time around, now that the all-new 2011 5-Series GT fastback is available. Why? The 5-Series wagon has been selling at a rate of well under 1,000 a year, before the GT arrived. We don't blame them.
So at the risk of preaching to the choir, we'll try it again: The 2010 Cadillac CTS Wagon has everything we love about the CTS sedan, only in an even better, more useful and, dare we say, more attractive package.
Better looking than the sedan?
Just as in the CTS sedan, we like the sparing use of chrome in the grille, and the contrast between gray plastic and chrome vertical accents with the chrome Cadillac wreath. And the swept-up-and-back headlamps are still almost mesmerizing in their detail. While the sedan looks a little too boxy and high-tailed to some eyes, the angular-ness of the Wagon's taillights and back end—especially the way the back lights come to a tip at the top—seem to better fit the front-end cues. And there's a great contrast in the way the plentiful fine details in front and in back volley with the deliciously neat and uncluttered side profile.
New Jersey Serious About Ticketing Handheld Talking, Texting
When New Jersey tells you not to use a handheld cellphone to talk or text while driving, they mean it.
In the 23 months since New Jersey's ban of talking or texting on handheld cellphones, police have written 224,725 citations, according to the NJ Star-Ledger—adding up to about four percent of the state's total moving violations, not counting drunk driving, during that period, and by far the most any state has written so far.
The tickets include a $100 fine, even for a first offense; and yes, it will go on your record. New Jersey is also among many states that now allow data to be collected about cellphone use or distraction on police accident reports.
A Fairleigh Dickinson University PublicMind survey, co-sponsored by the New Jersey Division of Highway Traffic Safety, last July found that hand-held voice use was down versus two years before, however a higher percentage of nearly all age groups are sending more handheld texts while driving than before.
Just as speeding is tied to other hazardous behaviors, it's tied to unsafe cellphone use: According to the PublicMind poll, drivers who speed regularly are two and a half times more likely than other drivers to have sent a text message while driving—more likely too, to have made "rude gestures at other motorists."
The study also found that using a hands-free phone was just as risky as holding a cellphone while driving.
New Jersey's handheld cellphone use ban covers all drivers, for talking or texting, and it's a primary enforcement offense—meaning that an officer can pull the driver over and issue a citation for that alone. In neighboring New York, talking on a handheld is primary but texting is secondary, meaning that citations will only be issued in combination with another citation.
Although the telecommunications industry has blocked a number of bans through lobbying efforts in the past, some of them are now getting on board in advising drivers not to talk or text at all when behind the wheel. Wireless provider AT&T has just launched a campaign that declares, "txtng & driving it can wait"
Furthermore, a recent report from the IIHS hinted that there are other factors in play—like our attitudes about distraction. Looking solely at the frequency of crashes before and after the enactment of new laws restricting handheld cellphone use in several states, the researchers found no recognizable reduction in accidents. This hints, experts say, that people might actually be communicating more behind the wheel—or in more hazardous situations—with "safer" hands-free options, or having hands free allows them to do other distracting tasks, like eating or drinking.
This story originally appeared at The Car Connection
| Permalink:New Jersey Serious About Ticketing Handheld Talking, Texting | |
Cadillac Returns To Europe, But With Modest Expectations
The past 18 months or so haven't been easy for General Motors, here or abroad. In Europe, GM endured much tense talk about its Opel brand, and the Kroymans Group fell prey to the global economic meltdown, leaving GM without a European distributor in over the half the markets it serviced. Now, a new company called Cadillac Europe has been created specifically to manage Cadillac distribution across the pond, and this go-round, GM is setting more realistic expectations for its luxury brand than we'd previously expected.
Much to GM's chagrin, Cadillac has never been a strong seller in Europe. In a market dominated by well-known, home-grown luxury brands like Mercedes-Benz, Audi, and BMW, Cadillac's annual sales have remained below the 5,000 mark for decades. GM has often talked the big talk about making inroads on the Continent, but despite some massive ad campaigns and promising new models, the company's predictions have never come true.
Perhaps because of that history, or perhaps because of GM's painful restructuring and sagging public opinion of the brand, the GM that's returning to Europe is more chastened and modest than Angela Merkel pantsuits. According to the Wall Street Journal, the brand will relaunch in Europe with minimal expectations to match Cadillac Europe's minimal, 20-person marketing and distribution staff: GM has set Cadillac's annual sales goal at just 3,000 units.
For now, the brand is pinning its hopes on the 2010 Cadillac CTS, with sedan, coupe, and wagon variants. If all goes well, the midsize crossover SRX will follow in the 2011 model year. Distribution will be focused on areas of Europe where Cadillac sales have done well in the past -- namely, Germany, Switzerland, and Italy. And this time, GM and its European dealers understand that the brand will most definitely be a niche player: as Roman dealer Stefano Celon says of the Caddy consumer, "It's a particular customer who wants to be different from the others—they like the new product."
There's a great deal of discussion about GM's strategy, but if Cadillac has to be in Europe at all (a big "if"), this plan sounds pretty solid. A sales goal of 3,000 units is realistic -- it's been achieved in the recent past -- but it's high enough to require some work. The strategy is also significantly more humble that we've seen in previous years, and in some ways, that may play well with European consumers, who can be wary of their brash cousins across the pond. Veteran staffers at GM may chafe at the understatement of it all, but when in Rome....
[WSJ]
This story originally appeared at The Car Connection
| Permalink:Cadillac Returns To Europe, But With Modest Expectations | |
Frugal Shopper: What Time, Day, Month Is Best For Deals?
If you're thinking of heading out to the dealership to close the deal this weekend—especially if it's Friday—you might want to hold off. And Saturday? Well, it depends, but unless it's close to the end of the month, you're more likely to get a better deal if you wait until Monday or Tuesday.
And this isn't purely anecdotal. The pricing-intelligence firm TrueCar has a team of analysts looking at historical sales data and specific transaction prices in the past (from a database of more than 300,000 vehicle sales), weighing those trends with current pricing, incentives, and market demand, to predict what will happen again over the next period, typically 30 days.
For instance, in TrueCar's last analysis of the best and worst days to buy a cars, covering February 16 through March 18, the firm predicted that February 27 would offer the highest projected discount (6.52 percent), while next Friday, March 12, will offer the lowest average discount (5.45 percent).
That's more than a $400 difference on a $40,000 vehicle.
Jesse Toprak, TrueCar's vice president for industry trends, said that these predictions start with simply looking at what happened in the past, every day of the year. "There's a very strong pattern of seasonality," Toprak said, so it's a good indication that these strong or weak days will repeat. "What's happened in the past plays a role."
