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What Happens to Your Car Warranty if GM or Chrysler Goes Bankrupt

Sun — Tue, 31 Mar 2009 15:35:05 +0000

Yesterday, the Obama administration issued an ultimatum to GM and Chrysler, asking Detroit’s troubled auto makers to restructure immediately or they will face other options including bankruptcy. Unlike last December when the Bush administration gave GM and Chrysler $17.4 bailout to keep them operating, this time the government decided to take a hard line on both car makers after a review showed that on reform the government demanded was made since receiving the first funding more three months ago. As part of the government’s plan, GM CEO Rick Wagoner was asked to resign from the post over the week. In addition, the Treasury Department also sets an array of conditions before handing out another check, including negotiating further cuts from the UAW, reducing its unsecured debt, and coming up with a plan that works.

If again no progress on restructuring is made after 60 days, GM could end up a bankruptcy court, which could deal a severe blow to the U.S. auto industry and millions of workers employed by the auto makers as well as suppliers. On the other hand, if you are customer of GM or Chrysler who recently purchased a vehicle from either manufacture, then you may wonder what will happen to your car that’s still under warranty if one or both of them goes under. While the government is reluctant to help GM and Chrysler this time, they want to make sure consumers are protected with Warranty Commitment Program announced yesterday by the president.

Under the program, the U.S. government will work together with GM and Chrysler to establish a fund to cover costs of warranty repairs of cars made by either GM or Chrysler if either files for bankruptcy protection later:

If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warranty will be safe. In fact, it will be safer than it’s ever been, because starting today, the United States government will stand behind your warranty.

At least, that’s one thing you don’t have to worry about.

*Photo from automopedia.org

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Safest Cars from Insurance Institute for Highway Safety

Sun — Tue, 25 Nov 2008 15:54:46 +0000

Insurance Institute for Highway Safety (IIHS) today released its top safety picks for 2009. The reward is given to vehicles that

do the best job of protecting people in front, side, and rear crashes based on good ratings in Institute tests. Winners also have to have electronic stability control (ESC), which research shows significantly reduces crash risk.

For 2009 model year, a total of 72 vehicles won recognitions from IIHS after going through vigorous tests that are designed to evaluate how drivers and passengers are protected in crash from all directions, front, side, and rear. According to IIHS, winners of this year’s awards come from all car categories and the number of vehicles getting the nod is twice as many as that of last year, a sign that automakers are improving the safety of the vehicles they build. Actually, that’s what this reward is all about: “providing incentives for manufacturers to offer safer vehicle designs that go far beyond basic federal standards.” For example, more cars now have side airbag as a standard safety equipment and electronic stability control (ESC) is also more common now than before.

Among the auto manufactures participating the test, Ford and its Volvo division won the most rewards at 16 while Honda and its Acura brand received 13 top picks. Chrysler, on the other hand, is the only major automaker that failed to receive a single reward.

Following is the list of 2009 model year cars receiving IIHS top safety pick. More details can be found in the status report (PDF file).

Large cars

Acura RL
Audi A6
Cadillac CTS
Ford Taurus
Lincoln MKS
Mercury Sable
Toyota Avalon
Volvo S80

Midsize cars

Acura TL, TSX
Audi A3, A4
BMW 3 series 4-door
Ford Fusion with optional ESC
Honda Accord 4-door
Mercedes C class
Mercury Milan with optional ESC
Saab 9-3
Subaru Legacy
Volkswagen Jetta, Passat

Midsize convertibles

Saab 9-3
Volkswagen Eos
Volvo C70

Small cars

Honda Civic 4-door with optional ESC (except Si)
Mitsubishi Lancer with optional ESC
Scion xB
Subaru Impreza with optional ESC
Toyota Corolla with optional ESC
Volkswagen Rabbit 4-door

Minicar

Honda Fit with optional ESC
Minivans
Honda Odyssey
Hyundai Entourage
Kia Sedona

Large SUVs

Audi Q7
Buick Enclave
Chevrolet Traverse
GMC Acadia
Saturn Outlook

Midsize SUVs

Acura MDX, RDX
BMW X3, X5
Ford Edge, Flex, Taurus X
Honda Pilot
Hyundai Santa Fe, Veracruz
Infiniti EX35
Lincoln MKX
Mercedes M class
Nissan Murano
Saturn VUE
Subaru Tribeca
Toyota FJ Cruiser, Highlander
Volvo XC90

Small SUVs

Ford Escape
Honda CR-V, Element
Mazda Tribute
Mercury Mariner
Mitsubishi Outlander
Nissan Rogue
Subaru Forester
Toyota RAV4
Volkswagen Tiguan

Large pickups

Ford F-150
Honda Ridgeline
Toyota Tundra

Small pickup

Toyota Tacoma

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Costly Repair

Sun — Fri, 25 May 2007 01:59:14 +0000

It has been nearly a year since I did a service on my Accord and the “Maintenance Required” light has been on for quite some time (I did change oil regularly though). I felt it was due for a service, but didn’t really find time to do it. Last Thursday on my way to work, the “Check Engine” light even went on. No more delays, I told myself.

I took the car to a Honda dealer near by Tuesday to get the service done. Actually, not just the service, but also to check if there’s anything serious with the engine. I have more than 85K miles on the car and it was running very well, didn’t give me any big trouble in the past seven years. So maybe it was about time for a major service.

While I was waiting, the CSR came to me with a list of recommendations:

The cost of the service is $210
There was a minor leak (EVAP leak) that caused the “Check Engine” light to come up. The cost of diagnosis and fixing the leak is $90.
The battery is weak so it will affect the car’s performance. A new one will be $135.
The four rotors are rusty and the front one has deep curves on the surface that can’t be smoothed out. For your safety, they need to be replaced for $899.
The timing belt and water pump are due for replacement as well, this is again for your safety at a price of $660.

I was shocked to see a bill that ran to almost $2,000! That’s a lot for a car that has a fair market value between $7,000 and $8,000.

Eventually, I declined to get a new battery and four rotors from the dealer and chose only to replace the timing belt and water pump. I know this can be done at many garages, but my past bad experience with a local shop made me feel it’s better to go with the dealer. Four years ago, I replaced the timing belt of my old Corolla at a small garage that I used many times for regular service. Don’t know if the belt was defective or not, but it broke a little more than one month later while I was 30 miles away from home. Not a pleasant experience. Since then I tried to use dealers when the service involves critical parts, even it means I have to pay a little more.

Yesterday, when I picked up my car, I signed a credit card bill of $953.37.

Ouch!

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2007 Safest Cars from IIHS

Sun — Mon, 14 May 2007 17:00:14 +0000

The Insurance Institute for Highway Safety released its Top Safety Pick 2007 today and the new Acura and Ford models scored highest rating in front, side, and rear crash tests. According to the IISH news release, the ranking is determined based on the combination of performance and design:

The Institute rates vehicles good, acceptable, marginal, or poor based on performance in high-speed front and side crash tests plus evaluations of seat/head restraints for protection against neck injuries in rear impacts. The first requirement for a vehicle to become a Top Safety Pick is to earn good ratings in all three Institute tests.

In evaluating the vehicle’s safty, the IIHS also noticed that carmakers are adjusting their designs in order to earn the rewards. For example, the IIHS now requires electronic stability control (ESC) to be equipped (even optional) for the vehicle to be ranked. The 2008 Ford Taurus was selected over the 2006 winner Ford Five Hundred because the Five Hundred doesn’t offer. The following is a list of winners in five categories tested:

Large car

Audi A6
2008 Ford Taurus
2008 Mercury Sable

Midsize cars

Audi A4
Saab 9-3
Subaru Legacy

Minivans

Hyundai Entourage
Kia Sedona

Midsize SUVs

Acura MDX
Acura RDX
Ford Edge
Honda Pilot
Lincoln MKX
Mercedes M class
Subaru B9 Tribeca
Volvo XC90

Small SUVs

Honda CR-V
Subaru Forester

We have a 2005 Honda Odyssey and we bought the car mainly because of its reputation in reliability and safty. However, I am a little disappointed to find out the it wasn’t included in this list and the Comsumer Report’s reliable car list in the minivan category.

Source: The Insurance Institute for Highway Safety

Photo: Edmunds.com

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Honda Safety Recall: 2005 Accord and Odyssey

Sun — Fri, 13 Apr 2007 17:34:57 +0000

I received this notice from American Honda a couple of days ago regarding a safety recall. The reason for the recall, according to the notice, is

a defect relating to motor vehicle safety exists in certain 2005 Accords and Odysseys, and certain 2006 Ridgelines. A faulty fuel pump relay may cause the fuel pump to lose power. If the fuel pump comes inoperative, the engine may not start. In the worst case, if the fuel pump loses power while driving, the engine could stall without warning, and a crash could occur.

We got this notice because we bought a new Odyssey in 2005. If your Honda vehicle is a model that’s mentioned above, but didn’t receive any notice, you may want to contact your Honda dealer to get the problem fixed, which is free of charge.

For additional information, you can contact Honda Automobile Customer Service at (800) 999-1009.

*Photo from autoweb.com

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Check out Kiplinger’s Real MPG Calculator

Sun — Sat, 03 Feb 2007 21:40:52 +0000

Kiplinger has rolled out an online MPG (miles-per-gallon) calculator for consumers who are shopping for 2007/2008 model year new vehicles. The calculator, according to Kiplinger, is based on EPA's revised fuel efficiency estimation rules, which will be applied on all vehicles manufactured after September 1, 2007.

I used our Honda Odyssey to test the calculator and found the numbers the calculator gives are exactly the same as those I got from EPA.

The 2007 model still uses old standard, thus the MPG numbers (for both city and highway) are higher than those of 2008 model which are estimated following new EPA rules. And the calculator also shows vehicles with the best and worst MPG in the same class to give you an idea how the vehicle you are interested in compared with others. For example, in the minivan category, it shows Toyota's Sienna scores the best MPG, while Buick Terraza has the worst fuel efficiency record.

Another website to find comprehensive fuel efficiency data and compare MPG between different models is FuelEconomy.gov, a Department of Energy website focusing solely on fuel economy (vehicle MPG calculation and comparison, gas mileage tips, and fuel efficient vehicle information). For the 2007 Honda Odyssey, the MPG estimations are the same as above.

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Infant Car Seats: The More Expensive, the Less Safe

Sun — Fri, 05 Jan 2007 22:40:08 +0000

Consumer Reports yesterday issued safety alert on infant car seats and released its latest rating on them (part of the rating can be found at their website for free). When I looked at the rating, my first reaction is that contrary to what we usually believe that we get higher quality (in this case, safety) by paying more, the safest infant car seats cost much less than the expensive ones.

Only 2 of the 12 infant seats performed well in high speed crash tests (above 35 mph frontal crash and 38-mph side crash): the Baby Trend Flex-Loc and the Graco SnugRide with EPS, though all passed in standard 30 mph crash tests:

Seven car seats failed in 35-mph front-impact test
Eight models failed in 38 mph side-impact tests
The Evenflo Discovery, the Graco SafeSeat, and the Britax Companion failed in all tough tests

In addition, the tests also discovered problems with the LATCH system, which is mandated by federal law to attach child car seats. Problems include that the system is not very easy to use, does not fit with cars, and most cars don't have LATCH anchors in the center rear, the safest seat in the car. What's more troublesome is that most car seats performed worse with LATCH than with vehicle safety belts!

For now, the Consumer Reports have the following recommendations for parents who want to keep their babies safe during traveling:

If you’re shopping for an infant car seat, buy one of the two we recommend: Baby Trend Flex-Loc and Graco SnugRide with EPS.
If you already own a Chicco KeyFit, Compass I410, Evenflo Embrace, or Peg Perego Primo Viaggio SIP, use it with vehicle safety belts, which passed our tests, not with LATCH, which didn’t. If you can’t get a tight fit with the safety belt, buy one of the two seats we recommend.
If you own a different infant seat, consider replacing it with the Baby Trend Flex-Loc or the Graco SnugRide with EPS.
Secure your child in the center-rear seat if the car seat can be tightly fastened there. Go to www.nhtsa.gov to find a free car-seat inspection station near you.
Send in the registration card that comes with new car seats, so that the manufacturer can contact you if the seat is recalled.
Remember that any child car seat is better than no seat at all.

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EPA Issues New Window Sticker for 2008 Car Model for Better Fuel Economy Estimation

Sun — Mon, 11 Dec 2006 21:54:37 +0000

When you visit new car dealerships shop for a new vehicle next year, you will notice the revised window sticker that more accurately reflects the fuel efficiency of the car you are going to buy. The U.S. Environmental Protection Agency (EPA) today issues new rules on how the fuel economy of new cars is estimated. From the sample window sticker, I see several new features compared to the old sticker: 1) Higher estimated annual fuel cost; 2) Lowered MPG; 3) A scale indicating the combined fuel economy of the vehicle in the same class.

Among the regulatory changes, according to EPA website:

The new methods will bring the MPG estimates closer to consumers’ actual fuel economy by including factors such as high speeds, quicker accelerations, air conditioning use, and driving in cold temperatures.
EPA will require fuel economy labels on certain heavier vehicles up to 10,000 pounds gross vehicle weight, such as larger SUVs and vans.
EPA is changing the design and content of the window sticker to convey fuel economy information to the public more effectively. The new label design will make it easier for consumers to compare fuel economy when shopping for new vehicles.

With the new sticker design, which will be required on vehicles manufactured after September 1, 2007, we should have a better idea on how much the car will cost us at the pump.

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Least Reliable Cars: Not American Made, Not Japanese Made, but European Made

Sun — Wed, 15 Nov 2006 19:43:44 +0000

According to CNNMoney.com, Consumer Reports just rolled out its reliability ratings on some 2007 models. Among 47 most reliable vehicles, 6 are from US auto makers (3 from Ford, 3 from GM, none from Chrysler), continuing the recent trend of making reliable cars (building reliable, fuel efficient cars, or at least “relevant” ones, is the right thing to do and don’t beg for help when you can’t compete). Overall, Japanese cars are still the ones to beat, taking 39 spots in the most reliable list. Surprisingly, the least reliable cars are European made, as 19 out of 45 most unreliable cars are from Europe.

Here’s the list of the most/least reliable cars in 10 categories. I am surprised to see that Honda Odyssey didn’t make to the most reliable mini van list, given its reputation in safety and reliability.

Most Reliable Small Car

Most reliable (Best score first)

Honda Fit
Toyota Yaris
Honda Civic Hybrid
Toyota Corolla

Least reliable (Worst score first)

Chevrolet Cobalt
2006 Nissan Sentra
Volkswagen Jetta (5 cyl.)
Chevrolet Aveo

Most Reliable Family Car

Most reliable

Honda Accord Hybrid
Toyota Prius
Honda Accord (4-cyl.)
Ford Fusion
Mercury Milan

Least reliable

Volkswagen Passat (4 cyl.)

Most Reliable Upscale/Large Car

Most reliable

Lexus ES350
Lincoln Zephyr
Hyundai Azera
Acura TSX
Acura TL

Least reliable

Jaguar X-type
Chrysler 300 (V8)
Saab 9-3

Most Reliable Luxury Car

Most reliable

2006 Lexus LS
Infiniti M

Least reliable

Cadillac STS (V8)
2006 Mercees-Benz S-class
Mercedes-Benz CLS
Mercedes-Benz E-class sedan
BMW 7-series
Jaguar S-type

Most Reliable Sport/Sporty car

Most reliable

Lexus SC
Toyota Camry Solara (4-cyl.)
Subaru Impreza WRX
Honda S2000
Mitsubishi Eclipse
2006 Mini Cooper hatchback

Least reliable

Pontiac Solstice
Mercedes-Benz SL
Mercedes-Benz CLK
Mercedes-Benz SLK (V6)
Chevrolet Corvette
Porshce 911 Carrera
Ford Mustang (V6)

Most Reliable Wagon/Minivan

Most reliable

Pontiac Vibe
Scion xB
Toyota Matrix
Toyota Sienna

Least reliable

Buick Terraza
Chevrolet Uplander
Saturn Relay
Nissan Quest

Most Reliable Small SUV

Most reliable

Toyota FJ Cruiser
Honda Element
2006 Honda CR-V
Toyota Rav4
2006 Mitsubishi Outlander
Subaru Forester

Least reliable

Kia Sportage

Midsized SUVs

Most reliable

Toyota Highlander Hybrid
Toyota 4Runner
Toyota Highlander
Honda Pilot
Lexus RX400 (hybrid)
2006 Acura MDX

Least reliable

Mercedes-Benz M-class
Land Rover LR3 (V8)
Cadillac SRX (V8)
Mercedes-Benz R-class
Volkswagen Touareg
Jeep Grand Cherokee
Hummer H3
2006 BMW X5 (V8)
Volvo XC90 (I6 and V8)
Ford Explorer (V8)
Mercury Mountaineer (V8)

Large SUVs

Most reliable

Toyota Land Cruiser
Lexus LX
Toyota Sequoia
Chevrolet Tahoe
GMC Yukon

Least reliable

Nissan Armada
Infiniti QX56
Lincoln Navigator
Hummer H2

Pickups

Subaru Baja
Toyota Tundra
Toyota Tacoma
Nissan Frontier (V6)

Least reliable

Nissan Titan
Ford F-250 (diesel)
Dodge Dakota (4WD)
2006 Cadillac Escalade EXT

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