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Thanks to smaller engines, vehicle dependability falls for first time in 16 years

As automakers have made engines smaller and smaller to improve fuel economy, problems in those vehicles have gotten bigger and bigger. That's the synopsis of a J.D. Power vehicle-dependability study, which found that dependability dropped for the first time in 16 years, largely because the proliferation of four-cylinder engines is causing the vehicles to be less reliable. Specifically, the number of problems per 100 vehicles (or what J.D. Power calls PP100) during the past 12 months for 2011 model-year vehicles rose six percent from the year-earlier figures for 2010 model-year cars. Singling out four-cylinder vehicles revealed about a 10-percent increase in problems during the past year. This issues largely related to engine hesitation, rough transmission shifting and lack of power, signaling the inability of vehicle makers to iron out some of the problems in their smaller engines as they strove for better fuel economy. Six- and five-cylinder engines proved far more reliable. Among car brands, BMW's Mini sub-brand came out as least reliable, with 185 problems per 100 vehicles during the past year. Toyota's Lexus badge was easily the most reliable, with just 68 problems per 100 vehicles. Coming in second place was Mercedes-Benz. The overall average was 133. Check out J.D. Power's press release below. J.D. Power Reports: Increased Engine and Transmission Problems Contribute to Decline in Vehicle Dependability for The First Time in More Than 15 Years General Motors Company Receives Eight Segment Awards, While Toyota Motor Corporation Garners Seven and Honda Motor Company Earns Six WESTLAKE VILLAGE, Calif.: o Owners of 3-year-old vehicles (2011 model year) report more problems than did owners of 3-year-old vehicles last year, according to the J.D. Power 2014 U.S. Vehicle Dependability StudySM (VDS) released today. The study, now in its 25th year, examines problems experienced during the past 12 months by original owners of 2011 model-year vehicles. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The study finds that overall vehicle dependability averages 133 PP100, a 6 percent increase in problems from 126 PP100 in 2013. This marks the first time since the 1998 study that the average number of problems has increased. "Until this year, we have seen a continual improvement in vehicle dependability," said David Sargent, vice president of global automotive at J.D.

Recharge Wrap-up: Honda Grace hybrid goes on sale in Japan, Daimler spends 100M euros on batteries

The Mercedes-Benz S-500 Plug-In Hybrid has earned an Environmental Certificate from the TUV Sud technical inspection authority. The award is based on a lifecycle assessment of the vehicle. This includes the ability to reduce CO2 emissions by 43 percent through charging, and by 56 percent if charged using hydroelectricity. Read more in the press release below. Daimler is expanding its production capacity for lithium-ion batteries. The company is investing around 100 million euros in its subsidiary Deutsche ACCUmotive, who will provide batteries for the electric Smart Fortwo and Forfour, as well as various Mercedes-Benz models. By the end of the construction, Deutsche ACCUmotive will have quadrupled production and logistics space since 2011. Read more in the press release below. Honda has begun sales of its Grace hybrid sedan in Japan. The Grace is based on the Honda Fit and uses the automaker's Sport Hybrid i-DCD system. It comes in front- and four-wheel-drive versions and uses a seven-speed DCT with built-in motor. The Honda Grace starts at the equivalent of about $16,500. Read more in the press release below. Honda has begun operation of its wind farm in Brazil. The farm consists of nine wind turbines, expected to produce about 95,000 MWh of electricity per year, which is on par with Honda's consumption for automobile production in the country. Honda is aiming to cut its CO2 production by 30 percent by 2020 compared to 2000 levels. Read more in the press release below. Toyota has won the 2014 World Endurance Championship's Driver and Manufacturer categories with hybrid technology. Toyota celebrated the win after the final race in Sao Paolo, Brazil. Toyota uses the same hybrid technology in its racing cars as it does in its production vehicles. Read more in the press release below. Controlled Power Technologies and other groups are calling for an international 48-volt electrical standard for vehicles. The groups called for the standard at the International Conference Automotive 48 V Power Supply Systems, saying that the 48V standard for mild hybrids would help make the systems more affordable. This will make it easier for automakers to meet the more stringent CO2 standards anticipated in coming years along with the introduction of the World Light vehicles Test Procedures. Read more at Green Car Congress. The world's first certified three-litre luxury saloon: S 500 PLUG-IN HYBRID receives Environmental Certificate Stuttgart.

Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.