Online Auctions Open New Markets for Car Dealers:
For several years, car dealers have listed and advertised vehicles
online. But in recent years, online auctions have provided a new venue
to bring together individuals, car dealers and even wholesalers who may
be hundreds of miles apart and haven't seen the vehicle in person.
Dealers even buy cars from other dealers on eBay. "If they have a car we
can use, we'll buy it," said Danny Mayer, general manager of Grubbs
Infiniti. Paul Taylor, economist at the National Automobile Dealers
Association in McLean, Va., said that most dealers have set up Web sites
to feature inventory and that more are arranging vehicle trades among
themselves electronically. Online sales and auctions aren't as widely
used, although "we know it's on the increase," Taylor said. CNW
Marketing Research in Oregon estimates that by the end of the year,
online used car sales, both auctions and online listings, could hit 1
million per month, more than double the sales rate at the start of the
year. That's in a market that saw about 43 million used cars trade hands
last year.
(Source: Forth Worth Star Telegram)


Only Best Parts are Wanted, GM Insists:

General Motor Corp. does not feel bound to U.S. parts suppliers if costs
and quality do not measure up to foreign parts makers. "I don't see that
as a real issue," Bo Andersson, GM's vice president of worldwide
purchasing, said in an interview. "I'm not that focused on where parts
are made. I'm very focused on [making sure]the parts we buy should be
the best." In June, GM North America Vice President and Chief Financial
Officer Ray Young said the company would increase its sourcing from
suppliers in more low-cost labor markets such as Mexico and Canada in an
effort to reduce costs. Other automakers have said they would look for
suppliers outside North America, where labor is less expensive. Young
said that in addition to more competitive sourcing, GM would also look
at new technologies and materials to cut parts costs. Andersson said GM
will achieve its net material cost reduction targets for the year of 3
percent in North America and 3.5 percent in Europe. The targets apply to
the cost of parts and other materials that are used to build cars and
trucks, and exclude such items as transportation and labor.
(Source: The Detroit News)


Gas Prices Aren’t Done Soaring, Experts Warn:

Think gas is high now? Just wait until the weekend. With Labor Day
around the corner, be prepared to shell out another 2 to 15 cents a
gallon, bringing prices close to $1.90 a gallon for that last summer
trip. Already, gasoline prices in Michigan are up almost a dime from
last week as high summer demand and refinery disruptions from the Aug.
14 power outage limited supplies. Gas prices usually jump around Labor
Day because of high demand. But this year, other culprits -- including
the blackout, low gas inventories and unrest in Iraq -- are driving
prices even higher than they were a year ago. Gasoline inventories
dropped 1.2 million barrels last week to 196.8 million, the lowest since
mid-November, according to the Energy Department. U.S. oil inventories
declined 1.6 million barrels to 278.8 million barrels, leaving supplies
down 7.9 percent from a year earlier. Motorists, especially those who
drive sport-utility vehicles and large vans, say they are feeling the
pinch. AAA spokesman Jim Rink said prices could drop 2 cents to 3 cents
per week following Labor Day. Gheit estimates prices could fall 5 cents
or more per week. Rink said drivers might not see any major relief until
late December or early next year, when demand begins to wane.
(Source: The Detroit Free Press)


Study: Side Air Bags Should Shield Head:

Side air bags that protect the head, chest and abdomen cut the risk of
death in side crashes nearly in half, according to insurance industry
research out today. But when the side air bags protect only the torso,
not the head, the risk of death is reduced by just 10%, says the
Insurance Institute for Highway Safety (IIHS). More than 9,000 people
are killed every year in side-impact crashes. The institute's study,
based on actual crashes in 1997-2002 cars, is the first to estimate the
effectiveness of side air bags. It is particularly important now,
because even though side air bags are increasingly available on new
cars, the types of bags offered vary widely. Additionally, many of the
side air bags offered are not standard equipment. Of 2004 model-year
vehicles, 47% offered head-protecting side air bags, but only 27% were
provided as standard equipment. If safety devices are optional, the
benefits can be diminished. Consumers will have to pay more and might
have to wait longer to get a vehicle with the optional equipment.
Automakers are working on ways to cut the risk to the occupants of
smaller vehicles when they're hit by larger ones. An industry group has
agreed that the most immediate way to make cars more compatible with big
SUVs and pickups is with side air bags. Fears about the danger side air
bags pose to small children sitting near them when they deploy have
largely abated after the industry agreed on voluntary standards that
eliminate most risks.
(Source: USA Today)