NEWS BRIEFS FOR THE WEEK OF DECEMBER 7, 2006

Jan. 1, 2020
Spring '07 ASE Certification Testing Schedule Announced ... OnStar to Drop Service for Many Pre-2004 Vehicles ... Feds Endorse Ignition Interlocks ... Networkcar Identifies Most Common Vehicle DTCs ... and other headlines from around the industry.
NEWS BRIEFS FOR THE WEEK OF 
DECEMBER 7, 2006
Spring '07 ASE Certification Testing Schedule Announced LEESBURG, VA, (Dec. 1, 2007) - The National Institute for Automotive Service Excellence (ASE) will offer its full complement of more than 40 certification tests for repair professionals and parts specialists this spring over the course of three evenings on May 8, 10 and 15, 2007. The tests will be given at approximately 750 locations throughout the United States and Canada. Test registration deadline is March 31, 2007. Registration information can be obtained by calling the ASE toll-free information line at 888-273-8378 or ASE Customer Service at 703-669-6600. Information also is available at ASE's Web site at www.ase.com. Online registrations are being accepted at the ASE Web site, while telephone registration will be available beginning March 1, 2007 (866-427-3273). These methods are in addition to the traditional mail-in method. (Source: ASE)OnStar to Drop Service for 
Many Pre-2004 Vehicles
DETROIT - Beginning in February 2008, many owners of pre-2004 General Motors will no longer be able to use OnStar. A $199 option when owners bought their vehicles, the technology will become largely obsolete in 15 months for some 2002 through 2004 models, as well as all models before 2002. OnStar announced that the electronics in these vehicles cannot be upgraded. Some Acura, Audi, Subaru and Volkswagen owners will also be affected. In 2002, the Federal Communications Commission ruled that cell phone companies - including OnStar through its partnership with Verizon Wireless - could shut down their analog networks beginning in February 2008. This affects hundreds of thousands of subscribers with older cars whose OnStar systems rely on those analog networks.  Analog networks were an early-generation technology that has been outdated by the development of digital networks over the past few years. The decision will also affect mobile phone users in rural America and other places where digital networks have yet to be built. OnStar declined to make an executive available, but in a written statement says, "We at OnStar sincerely regret that we will not be able to provide OnStar service to vehicles with analog-only hardware after Dec. 31, 2007." Dealers will upgrade some 2002 to 2004 vehicles to work on digital networks if customers buy a three-year subscription to the Safe and Sound package at $199 a year.(Source: Detroit News)Feds Endorse Ignition Interlocks WASHINGTON (Nov. 27, 2006) - The New York Times reports that while federal transportation officials endorse the goal of installing ignition interlocks in all vehicles that would prevent intoxicated drivers from starting a car, but industry experts warn it would be at least a decade before the devices could be installed in large numbers. Automakers agreed to take part in a blue-ribbon panel to discuss the technology, but offered a healthy dose of skepticism that one device could be installed fleet-wide. It often takes many years for an auto safety advancement to go from the discussion stage to the roads. Technical hurdles remain, and there are a number of competing technologies for measuring a driver's sobriety. A total of 45 states allow or mandate ignition interlocks for some repeat offenders. New Mexico is the only state that requires them for all repeat offenders. Some states require them for first-time offenders with high alcohol levels. Nicole Nason, head of the National Highway Traffic Safety Administration (NHTSA), says it could be at least 15 years before ignition interlocks were a standard feature. In order to be accepted it would have to be "99.9 percent perfect," she says. A 1973 NHTSA requirement that forced manufacturers to build interlocks that wouldn't let drivers start vehicles unless they were wearing their seat belts provoked anger and was reversed by Congress a year later.(Source: NY Times)Networkcar Identifies Most 
Common Vehicle DTCs
SAN DIEGO (Nov. 28, 2006) - Networkcar Inc. today announced the results of an analysis of diagnostic trouble codes (DTCs) gathered from thousands of commercial vehicles across the United States that use its wireless vehicle management system. The Networkfleet system consists of an in-vehicle unit that continuously monitors and collects data directly from a vehicle's engine computer and from a global positioning system (GPS).  An analysis of aggregate Networkfleet data shows that 47 percent of DTCs for light- and medium-duty OBD II vehicles were related to emissions issues and 24 percent were related to fuel consumption issues. The Top 3 individual diagnostic trouble codes collected by Networkfleet include: * Light Vehicle DTC (P0300) is related to cylinder misfires. Misfires can be indicative of poor maintenance or of a faulty or worn ignition system. * Light Vehicle DTC (P0171) indicates that the air-to-fuel mixture is suboptimal. This could be indicative of a faulty O2 sensor or a faulty/worn fuel pump. * Light Vehicle DTC (P0420) indicates that there may be a problem with the vehicle catalyst and that it should probably be replaced. "For fleet managers, nothing is more important than keeping vehicles running and productive. Maintaining vehicles, including both repair and upkeep, can have a huge impact on a fleet's bottom line," says Paul Washicko, president of Networkcar. "Networkfleet enables them to have a proactive, preventive maintenance program and fix vehicle problems before they escalate into larger issues."(Source: Networkcar)Study Reveals Americans Want More Fuel-Efficient Vehicles  NEWTON, MA (Nov. 28, 2006) - A survey conducted by the Opinion Research Corporation (ORC) on behalf of the Civil Society Institute shows that Americans have strong and bipartisan views about the steps - including the implementation of a 40-mpg federal fuel-efficiency standard - that President Bush and the new Congress should take to help clean up the problems plaguing American vehicle manufacturers. The poll also shows that despite a recent slump in the cost of gasoline, nearly all Americans expect prices at the pump to surge again in the near future. While some in Detroit may be hoping for a major revival of demand for gas-hungry SUVs and trucks, the ORC poll finds that the widespread consumer expectation of soon-to-be-higher gas prices is translating into continuing demand for more fuel-efficient vehicles, such as hybrids and "clean diesel" autos. In addition, even though the survey revealed that most Americans blame Detroit for its own woes, there is broad public support evident for the federal government to take steps that would help lower worker health care costs and make U.S. automakers more competitive through a focus on greater fuel efficiency.(Source: Civil Society Institute)Energy Companies Ready to Deal with Climate Change WASHINGTON (Nov. 26, 2006) - The Washington Post reports that top executives at many of the nation's largest energy companies have accepted the scientific consensus about climate change - and see federal regulation to cut greenhouse gas emissions as inevitable. The report also says that the companies have been hiring new lobbyists in the hope of fashioning a national approach and averting a patchwork of state plans now in the works. These executives also are working to change some company practices in anticipation of the regulation. "It's Shell's belief that we have to deal with greenhouse gases," says John Hofmeister, president of Shell Oil Co. "From a Shell point of view, the debate is over. When 90-plus percent of the world's leading figures believe that greenhouse gases have impacted the climate of the Earth, who is Shell to say to say, let's debate the science? "We can't have 50 state policies on greenhouse gas emissions," adds Hofmeister. "We believe, Shell believes, we need a national approach to greenhouse gas management and how that would work across our industries, not only the gas and oil industry." Hofmeister and other top energy company leaders back a proposal that would cap greenhouse gas emissions and allow firms to trade their quotas. Paul M. Anderson, Duke Energy's chairman and a member of the president's Council of Advisors on Science and Technology, favors a tax on emissions of carbon dioxide. "If we had our druthers, we'd already have carbon legislation passed," says John L. Stowell, Duke Energy's vice president for environmental policy. "Our viewpoint is that it's going to happen. There's scientific evidence of climate change. We'd like to know what legislation will be put together so that, when we figure out how to increase our load, we know exactly what to expect." Exxon Mobil Corp., the highest-profile corporate skeptic about global warming, said in September that it was considering ending its funding of a think tank that has sought to cast doubts on climate change. And on Nov. 2, Exxon announced that it will contribute more than $1.25 million to a European Union study on how to store carbon dioxide in natural gas fields in the Norwegian North Sea, Algeria and Germany. The Supreme Court is scheduled to hear arguments in early December on whether the federal government is obligated to regulate carbon dioxide as a pollutant; its decision could force the government to come up with guidelines.(Source: The Washington Post)Ford Announces Plans for Debt Financing DEARBORN, MI (Nov. 29, 2006) - Ford Motor Co. today announced that it plans to obtain financing totaling approximately $18 billion in order to address near- and medium-term negative operating-related cash flow; to fund its restructuring; and to provide added liquidity to protect against a recession or other unanticipated events. In addition, the amount borrowed by Ford exceeds the total market value of all its outstanding shares by more than $2.5 billion. To raise the $18 billion, Ford pledged almost all of its domestic U.S. assets, including its plants, office buildings, patents and trademarks, as well as its ownership shares in Ford Credit and Volvo. The refinancing move is the first time in its more than 100-year history that the automaker has pledged manufacturing equipment as collateral. In a release from Ford, the company said it expects to have automotive liquidity of approximately $38 billion at year-end 2006, consisting of gross cash (i.e., cash, cash equivalents, loaned and marketable securities and short-term Voluntary Employee Beneficiary Association assets) and available credit facilities.(Source: Ford)GM: Vue Hybrid Will Be Offered as FWD, AWD and Plug-In  LOS ANGELES (Nov. 29, 2006) - In a press conference shortly after the Greater Los Angeles Auto Show opened, GM announced that it will debut a front-wheel-drive (FWD) two-mode hybrid system in the Saturn Vue Green Line SUV by 2008. The automaker plans to launch an all-wheel-drive (AWD) version by 2009 and says it is also developing an electric plug-in hybrid version as well. The Vue Green Line Two-Mode Hybrid will be powered by a 3.6L V6 gas engine with direct injection (DI), variable valve timing (VVT), a nickel-metal-hydride battery pack and two active cooled permanent magnet motors. The vehicle is expected to maintain performance while delivering up to a 45-percent improvement in combined city and highway fuel economy compared with the non-hybrid Vue, based on current federal test procedures. By using two electric modes and four fixed gear ratios, the two-mode hybrid system's electric motors are smaller, compared with traditional "one-mode" hybrid systems, and impose no significant limitation on the size of the engine. Consequently, the two-mode hybrid system fits into the same space as a conventional automatic transmission, minimizing packaging, cost and weight issues. The plug-in hybrid-electric version under development differs from traditional hybrid-electric vehicles by offering extended electric-only propulsion, additional battery capacity and the ability to be recharged from a standard external electrical outlet. It will use a modified version of GM's two-mode hybrid system and the same DI, VVT 3.6L engine as the 2008 model, as well as plug-in technology, a lithium-ion battery pack when ready, highly efficient electronics and powerful electric motors to achieve significant increases in fuel economy. GM says that the plug-in version has the potential to achieve double the fuel efficiency of any current SUV on the road today. (Source: GM)

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