Auto Transportation

Posts Tagged ‘dollar’

Rising fuel prices, unstable financial markets and taxation changes with the apparent aim of getting us to use our cars less often (or at least pay more to use them) have been just some of the issues that have affected the automotive industry in the past 12 months. This article looks at what 2008 may hold for the automotive industry and road users in general.

The US economy and the resulting weakness of the dollar looks like it may well contribute to the price of crude oil continuing to rise as investors have been holding the commodity instead of dollars. This means that as the cost of a barrel of crude oil comes close to the $100 figure then so fuel prices have also continued to rise.

So do higher fuel costs mean we are likely to buy or use cars, vans and Lorries less in 2008? Well seemingly not based on a latest poll of motorists. Despite fuel prices increasing at alarming rates a whopping 79 percent of motorists questioned said they had not changed their petrol and fuel buying habits and had no plans to do so. In fact the motorists questioned said petrol prices would have to increase at even more alarming rates to stop them from filling up.

Environmental issues would it seem not be as important as governments throughout the world as over 1 in 3 motorists confirmed they had no plans to replace their vehicles for more environmentally friendly cars before 2010.

And so if motorists are seemingly unaffected by rising fuel costs and are prepared to continue driving despite increased road tax and the impact on the environment surely positive times are ahead for the industry in 2008?

Well before car manufacturers and dealers start doing cartwheels, caution would certainly be advised as whilst General Motors can seen promising performance in emerging markets they have seen big losses in both American and European markets.

And with the world economy in such an uncertain state as 2007 draws to a close 2008 could well see new car sales fall with used car sales increasing. Car sales and indeed sales of all types are also likely to increase via the internet in 2008 so car dealers (new and used) without an internet presence should really be looking at establishing themselves in this emerging marketplace.

And what of the actual motorist, what does 2008 have in store for us? Well how about further increases in vehicle tax, more toll roads, increased congestion charges and still a seeming lack of a viable alternative to road use through reliable, clean and safe public transport.

The good news for some motorists on one front is that whilst the government is seemingly do all they can to penalise the motorist, insurance premiums including car insurance, van insurance and motor trade insurance are pretty stable. In fact with such competition in the insurance industry the cost of insurance like combined motor trade insurance could even fall and savings could be made.

And motor traders who are looking to make savings on their motor trade insurance premiums in 2008 using a specialist insurance broker could well be the route to take to make sure they get the protection they need at a price that is right.

With the big three already deep in the doo doo, is the Chevy Volt the answer to General Motors problems or will it prove to be the final nail in the manufacturers coffin.

Much has been made of the Chevy Volt, a plug-in electric hybrid. GM sees this idea as the saviour of its company. The only problem may be that the technology is already out of date by the time it is launched. Battery power may indeed prove to be a viable alternative to the internal combustion engine in the short term, but with limited mileage on a full charge and hours needed to recharge, the hydrogen fuel cell looks, on the face of it, a much better long term solution.

Enter the Honda FCX Clarity. Powered by a hydrogen fuel cell, the Clarity has been hailed as the most important car launched this century. Creating electricity by combining hydrogen that is stored in a fuel tank on board the vehicle, with oxygen from the air, the only bi products produced are heat and water. Giving us the first truly eco friendly car, that is, if you ignore how the hydrogen is produced (currently from electricity generated from fossil fuels).

With a top speed of one hundred miles per hour and a claimed range of 280 miles, the Honda Clarity does not need to be recharged and does not need a conventionalinternal combustion engine to top up its charge, it is simply filled with gaseous hydrogen at suitable filling stations. These stations may be limited at the moment, but as demand grows for these vehicles more stations will no doubt follow.

Currently available on a six hundred dollar a month three year lease, the Clarity will no doubt already have a host of celebrities lining up to confirm their green credentials and as it is only available in southern California (probably the most environmentally aware location in the States) the allocation has already been filled. This area has been chosen for the trials purely and simply because it has at least got a few of the hydrogen filling stations needed to refill the Clarity.

So, with General Motors announcing that it will delay the completion of the factory that will produce the engines for the Volt, even though it has been held up as the symbol of their future. It is looking more and more as if the hydrogen car may overtake the electric / hybrid plug in before it even makes it into the showrooms. GM hope to launch the Volt in 2010, but Honda will have no doubt ironed out any glitches with the Clarity by then, giving them a clear advantage over others, just as Toyota did with the Prius.

With technology moving towards cars that produce zero emissions General Motors may be pinning their hopes on a car that has a very limited shelf life. Historically, it has been very late in realising that its customers needs have changed. In its haste to catch up, has it once again misjudged the direction in which the market is moving? If it has, then theChevy Volt could very well prove to be the final nail in the coffin for General Motors.