1993 Toyota Supra on 2040-cars

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Major automakers urge Trump not to freeze fuel economy targets

WASHINGTON — Major automakers are telling the Trump administration they want to reach an agreement with California to avoid a legal battle over fuel efficiency standards, and they support continued increases in mileage standards through 2025. "We support standards that increase year over year that also are consistent with marketplace realities," Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers, a trade group representing major automakers, will tell a U.S. House of Representatives panel on Tuesday, according to written testimony released on Monday. The Trump administration is weighing how to revise fuel economy standards through at least the 2025 model year, and one option is to propose freezing the standards through 2026, effectively allowing automakers to delay investments in technology to cut greenhouse gas emissions from burning petroleum. The National Highway Traffic Safety Administration has not formally submitted its joint proposal with the Environmental Protection Agency to the White House Office of Management and Budget for review. Even so, last week, California and 16 other states sued to challenge the Trump administration's decision to revise U.S. vehicle rules. Auto industry executives have held meetings with the Trump administration for months and have urged the administration to try to reach a deal with California even as they support slowing the pace of reduction in carbon dioxide emissions that the Obama administration rules outlined. One automaker official said part of the message to President Donald Trump at a meeting on Friday will be to consider California like a foreign trade deal that needs to be renegotiated. Automakers want to urge him to get automakers a "better deal" — as opposed to potentially years of litigation between major states and federal regulators. On Friday, Trump is set to meet with the chief executives of General Motors, Ford, Fiat Chrysler and the top U.S. executives of at least five other major automakers, including Toyota, Volkswagen AG and Daimler AG, to talk about revisions to the vehicle rules. Senior EPA and Transportation Department officials will also attend. Environmental groups are eager to keep the rules in place, saying they will save consumers billions in fuel costs. A coalition of groups plans to stage a protest outside Ford's headquarters in Michigan.

Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Toyota announces production increase for Mirai fuel cell vehicle

Toyota is building them. People are coming. So Toyota's going to build some more. Cue the strings. The Japanese automaker apparently got more than it bargained for after starting sales of its first mass-produced hydrogen fuel-cell vehicle last month. On Thursday, Toyota announced plans to ramp up production starting next year. Toyota will build 700 Mirai units this year, and will then bump that to 2,000 vehicles next year and 3,000 in 2017. The previous production plan had the same numbers, except for what would happen in 2017. The increase is coming because Toyota's already received pre-orders for 1,500 Mirai vehicles. With US and European sales slated to start later this year, Toyota didn't want to leave itself short-stocked. Toyota confirmed what was already being surmised last month by the Japanese newspaper Nikkei, which said that Toyota was ready to spend almost $170 million boosting production capacity of the Mirai. Most of this year's sales will be in Japan, with the US and Europe gradually accounting for a larger chunk starting next year. In November, the automaker disclosed details of the Mirai's initial US sales, saying that the model will be available in California this year for either a base price of $57,500 or a lease price of $499 a month for 36 months (with $3,649 due at signing). And if that sounds steep, remember that the hydrogen refueling, wherever it can be found, is free for as long as three years. Check out Toyota's press release on the bumps in production below. Toyota to Increase 'Mirai' Production Toyota City, Japan, January 22, 2015-Toyota Motor Corporation today announced that it will increase production of the "Mirai" fuel cell sedan, which launched in Japan on December 15, 2014. The new plan calls for production to increase from the 2015 level of 700 units to approximately 2,000 units in 2016 and approximately 3,000 units in 2017. Considering the approximately 1,500 orders received in the first month of sales in Japan, and the upcoming launches in Europe and the United States later this year, it was decided that the supply structure should be adjusted to reflect the level of demand for the vehicle. Sales plans for Japan, the U.S. and Europe following the production increases will be formulated taking into consideration each region's level of hydrogen infrastructure development, energy policies, car-purchasing subsidies, consumer demand, environmental regulations, and other factors.