But given the dire condition of the U.S. auto market, nary a peep has been heard about the long term impact of incentives, or cash for clunkers. And the downside was not mentioned when the National Automobile Dealers Association asked the government to suspend the cash-for-clunkers program because a survey by the group found that the $3 billion fund has been exhausted.

While the Cash for Clunkers program is coming to an end manufacturers and dealers are concerned that their business will return to pre-clunker levels. To address this concern, some of the leading U.S. Automotive Retailers are participating in a privately funded stimulus program to help consumers who were left behind by the government’s plan.

Due to the restrictions of the government’s program, over 90% of consumers were not eligible. As a result, some of the largest retailers in the country are promoting a new dealer funded stimulus program that gives consumers up to $4500 of additional trade-in value towards the purchase of a new or used vehicle.

See Program details at www.AutoStimulusPlan.com.

“As Hyundai and Kia have been on the American scene for decades now, it’s surprising that consideration for Chinese and Indian brands, sight unseen, would be about as strong as it is for the Korean brands,”? said George Peterson, president of automotive research firm AutoPacific and author of the study. “However, with so many premium and high-tech non-automotive products already being made in China and purchased by Americans, why not automobiles too? It appears that buyers in America are willing to give Chinese and Indian vehicles a chance right out of the box.”

The study shows Chinese and Indian considerers are more likely to currently own Japanese and Korean brands, indicating that these brands may have the most competition from the new entries, rather than domestic brands like Chrysler, Ford and GM. The study also revealed that while those who would consider a car from China and India rate reliability and durability high, they are not as interested in the dynamics of a vehicle like handling, braking and acceleration.

This new technology is called Remote Ignition Block and will allow an OnStar Advisor to send a remote signal to a subscriber’s stolen vehicle to prevent the vehicle from restarting once the ignition is turned off. This capability will not only help authorities recover stolen vehicles, but can also prevent dangerous high speed pursuits from starting.

“Remote Ignition Block is a prime example of the rapid pace of technological innovation underway at OnStar. We are developing services desired by our subscribers that deliver important societal benefits as well,”? said Chet Huber, OnStar president.

Remote Ignition Block builds on OnStar’s growing suite of Stolen Vehicle Assistance services which includes GPS technology that pinpoints a stolen vehicle’s exact location and Stolen Vehicle Slowdown® which can remotely slow a stolen vehicle to idle speed.

OnStar will make Remote Ignition Block is being rolled out to select GM 2009 and 2010 model year vehicles in the U.S. and Canada.

The Good Year Blimp

Just when you thought four wheeling fell from fanfare, Goodyear’s all new off-road tires challenge their decade-old, iconic predecessor, the Wrangler MT/R (Maximum Traction-Reinforced) and are available in two new game-changing styles.

The brazen and brawny Wrangler MT/R with Kevlar, engineered at Sandai’s labs, was created to tantalize the four million drivers in the radical light truck segment, who are willing to pay more for aftermarket products that guarantee a safe return from the wilds.

Goodyear says these customers are mostly male, under-35, risk takers who are passionate about four wheeling, Jeep expeditions and rock crawling, although the tire maker sees more women wheeling their own rigs.

With sexiness that tantalizes in a Laura-Croft-kind-of-way, and side rubber that recalls the smile of a Great White Shark, this new tire has significantly enhanced toughness. Less neck-snapping in looks, but still bold, the new Wrangler DuraTrac wears enhanced rubber for backcountry toughness, but is also crafted to soothe the sense, with a more tranquil tarmac ride.

DuraTrac’s dominant tread blocks channel a State of Indiana refrigerator magnet and Goodyear has its sights on the 21 million drivers who purchase all-terrain, light truck tires for work in construction, agriculture, landscaping and crave after hours pursuits of camping, hunting and fishing.

Sidewall Toughness-The Wrangler MT/R w/ Kevlar bests it previous generation model by increasing puncture-resistance by 35 percent, thereby greatly reducing the likelihood of sidewall cuts and tears-a veritable Achilles shield.

Sidewall Traction-MT/R w/Kevlar gives greater grip for canyon crawling, mud pits and sand dunes, with improved steering and handling in both wet and dry conditions.

Wraparound Tread-Special sculpting on the Wrangler MT/R w/Kevlar creates the go-juice for motoring and bite, when traversing dry lake beds; driving over loose sand and hard scrabble; and motivating up and over rocks and boulders.

Inventive Tread Design-Wrangler MT/R is comprised of advanced silica rubber that is asymmetrically-shaped for better traction qualities in wet and off-road conditions.

Tractive Groove Technology- Wrangler DuraTrac crafted with a center-line band of grooves that repel muck and snow.

Self-Cleaning Shoulder Blocks-Wrangler DuraTrac’s chunky blocks of –shaped compound are engineered with “mud-flow20geometry”? to improve maneuvering in deep mud and blizzards.

Highly-Angled Center Tread Blocks-Wrangler DuraTrac’s center-band block pattern and rubber compound quiet road noise and increase lateral stability.

Sales Potential-Goodyear projects that full-sized truck sales will remain steady for five years. On sale now, Goodyear will offer the Wrangler MT-R w/Kevlar in 30 sizes; the Wrangler DuraTrac will be available in 26 sizes, covering 89 percent of the targeted vehicle segment.

Sue Mead

The deal has two goals wrapped in one action. It gets drivers into potential more fuel efficient cars and it jump starts car sales. But contrary to the catchy title, consumers will not be given cash to buy newer vehicles.

Dealers will register for the program. When a consumer trades a gas guzzler and purchases a more fuel efficient vehicle and government credit is applied to the purchase of the new vehicle.

That credit will be $3,500 for fuel efficiency that is four miles per gallon better than the traded in car. It jumps to $4,500 if the purchased car is 10 mpg better. For light trucks its $3,500 for 2 mpg better and $4,500 for 5 mpg better.

Frank S. Washington

Edmunds.com, an online resource for automotive information, estimated that the average automotive manufacturer incentive in the U.S. was $2,914 per vehicle sold in February 2009, up $216, or 8.0 percent, from January 2009, and up $400, or 15.9 percent, from February 2008.

According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,991 per vehicle sold in February 2009, up from $3,518 in January 2009. From January 2009 to February 2009, European automakers increased incentives spending by $67 to $3,150 per vehicle sold; Japanese automakers decreased incentives spending by $77 to $1,698 per vehicle sold; and Korean automakers increased incentives spending by $102 to $3,031 per vehicle sold.

“The last time sales were at this level was in the early 1980s, when the country had 25 percent fewer licensed drivers,” stated Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. “Back then, you could practically buy a new car for the amount that some of today’s automakers are spending on per-vehicle incentives.”

Among vehicle segments, premium sport cars had the highest average incentives, $6,331 per vehicle sold, followed by luxury SUVs at $4,329. Subcompact cars had the lowest average incentives per vehicle sold, $762, followed by compact cars at $1,578.

Now is not a bad time to buy a car or truck.

Economic Policy Institute study ranks Pennsylvania ninth in nation in potential job loss, if the auto industry were to collapse.

The financial woes of the U.S. auto industry are not just a Detroit problem but could impact the economies of states across the nation. According to a new study by the Economic Policy Institute Pennsylvania would lose 120,000 jobs.

Up to 120,100 jobs would disappear in Pennsylvania within a year, if General Motors, Ford and Chrysler were allowed to fall into bankruptcy. The loss of General Motors, the company most at risk of entering bankruptcy, would jeopardize up to 33,200 jobs in Pennsylvania.

Even if only motor vehicles and parts jobs are counted, Pennsylvania would lose up to 8,400 jobs from a total industry shutdown and up to 2,300 from the shutdown of General Motors alone, the study estimated.

“Anyone who thinks an auto industry collapse has little impact on Pennsylvania should think again,” Mark Price, Ph.D., labor economist for the Keystone Research Center in Harrisburg, said. “As the EPI study shows, the 120,000 Pennsylvania jobs threatened by an auto industry failure account for 2.1 percent of total state employment.”

The EPI paper, titled When Giants Fall, estimates that a total collapse of all three U.S. auto makers would result in the loss of up to 2.1 million American jobs within the next year. Tax revenue losses and additional governmental costs would top $150 billion within three years if the three companies enter bankruptcy.

Without cars to export, the U.S. trade deficit would rise by $109.3 billion, the study also found.

The job numbers encompass direct job losses from the automakers’ potential shutdown, as well as indirect job losses in technical and service industries and vehicle production-supported industries, such as auto parts, electronics, steel, tires, aluminum and plastics. The study also estimates the loss of “re-spending” jobs as a result of the wages lost by workers in motor vehicle industries and other sectors supported by car production.

Frank S. Washington