In a conference this week in Detroit, Wang Dazong, president of Beijing Automotive Holding Co. (BAIC) announced, “The government is working on a plan – and I think it will be announced very, very soon – and is basically calling for having, in 10 years, electric car parks of 10 million [spots] or above.”

The Chinese auto industry has made the choice to focus on EVs rather than hybrids or hydrogen fuel cell vehicles, marking a change in direction that will likely have worldwide effect. The market in China has become the worlds largest, and while its likely to have less growth in 2011 than it did in 2010 (albeit with heavy subsidization), it will almost certainly increase in size and scope.

At the same time, the anticipated increase in a demand for electricity has China also reforming the way energy is produced. The country is cutting back on its use of coal, replacing it with hydropower, wind, has, and nuclear power.

Thanks to government-backed incentives,the price of EVs in China has been reduced by as much as $18,000 in some major cities, making them the default choice for may car shoppers. BAIC expects EVs to make up about 5 percent of its own market by 2020, an estimate considered conservative by many analysts.

The magazine explained that Toyota’s decline is directly linked to the recall of over 8 million vehicles worldwide, over the last two years, while Ford’s improved reputation as much to do with being the only major American automaker to avoid bankruptcy, and to high consumer satisfaction with its safety, quality and value.

In a statement this morning, representatives of Consumer Reports said, “Ford built on the momentum seen in last year’s study, likely the result of a model lineup with improving performance, reliability and styling. The massive recalls announced by Toyota earlier this year contributed to the tarnishing of its public image as measured by the poll.”

Safety, quality, and value remain the three most important factors to consumers.

Consumer Reports also said that Toyota maintained its lead in a category that is becoming less and less important: green tech/being environmentally friendly. In this category, the Japanese automaker has a score of 46 as compared to second-place Ford’s 18. Without Toyota’s standing in this category, Ford would have claimed the top overall score, rather than tied, the magazine said.

The magazine’s survey found that the “green” and “environmentally factors” are continuing to drop, however, with only 28% of consumers considering it important, a decrease of 4% since last year, and 12% since 2008. That drop, they say, is due to lean economic times and a general unwillingness to spend more for green tech.

Based on the perceptions of car owners, the top ten most recognizable brands, according to the Consumer Reports survey, are:

1. Toyota (147)
2. Ford (144)
3. Honda (121)
4. Chevrolet (102)
5. BMW (93)
6. Mercedes-Benz (90)
7. Volvo (84)
8. Lexus (69)
9. Cadillac (66)
10. Subaru (50)

On the Monday after Christmas, crude oil hit $91/barrel on the New York Mercantile Exchange, which caused an average increase of 7 cents/gallon at pumps across the country, bringing the average price to $3.05/gallon, nearly 45 cents a gallon more than we paid for gas at this time last year. Diesel prices have been affected as well, and currently sit around $3.29/gallon, or 56 cents more than last year.

Despite this, Kelley Blue Book’s lead analyst for vehicle evaluation, Alec Gutierrez, says that SUV sales have only decreased by about 1 percent since the last major upturn in gas prices, in Spring, 2008, and he says that unless gas prices move into the $3.50 – $4.00/gallon range there won’t likely be a dramatic drop, but that there won’t be the same rush to get ride of SUVs and other larger vehicles that there was almost three years ago.

“If you see a 20-to-30 cent price increase per gallon over the course of a couple weeks then of course people are going to panic,” Gutierrez explained, “but if it increases steadily over time that gives the market a chance to react rationally.”

Even though consumers are more aware, this time, about what they may face at the gas pump, buying habits may not change all that much.

According to Gutierrez, “The Ford Escape, the Nissan Rogue, the Honda CR-V and the Toyota RAV4 — the compact crossover segment — that’s where we’ll see a lot of growth in terms of production and sales overall. The American consumer still generally wants to have a vehicle that offers a lot of utility but at the same time they are conscious of the fuel economy that the vehicle offers and what they are going to pay at the end of the month.”

But consumers aren’t the only segment with budgetary concerns, Gutierrez said. Dealers may not want to buy back SUVs if they can’t make money on them at auto auctions. “The days where a dealer could just go to auction and stock up on a bunch of SUVs and hold them for 40 or 60 days are over.”

Dealers, then, are being extremely cautious about their inventories this year.

Jason Stewart, general manager of Earl Stewart Toyota in North Palm Beach, FL, explained to reporters, “Our small SUVs are doing OK but the large SUVs and large trucks have definitely cooled off since the pickup in gas prices.”

Stewart added that at the same time, Toyota Prius sales have tripled, which is the reverse of the sales picture from the gas price crash late in 2008.

Stewart explains that two years ago, “…when gas was in the low-to-mid twos, we did a 180 the other way where Prius sales fell off the mark and we were selling more of the Sequoias and Tundras. My gut is it ties right into people’s pocketbooks.”

Stewart also said that the trade-in values of SUVs completely tanked the last time gasoline prices reached this high, though he added that these vehicles have never been terribly popular in his part of Florida. Nevertheless, the dealer said, he plans to cut back on the number he has for sale.

Another dealer, Dennis Egglefield, who owns Egglefield Ford in Elizabethtown, NY, said that sales of SUVs dropped by fifty percent during 2008′s gas price peak, but have leveled out since then. Egglefield’s dealership is in the Adirondack Mountains roughly 100 miles south of Montreal, Canada, and four-wheel-drives are the vehicles to have there. Nevertheless, Egglefield said that he’s noticed more customers leaning toward the smaller Ford Escape rather than the Explorer or Expedition

He explained that, “SUVs are still important in this area, but people are downsizing to more fuel efficient SUVs instead.”

He also said that as gas prices continue to go up, “…we are still stocking with the idea that it may go either way. Hoping for the best, but prepared for anything.”

Based on figures through November, 2010, the Ford F-150 pickup truck is now the most-searched-for vehicle, moving up from the number two position it held last year.

Every vehicle on this year’s list of the top ten most-searched-for used vehicles was also in the top ten last year, though there has been a lot of jockeying for position, and the Toyota Camry has had a significant drop.

So what are the top ten? Here’s the list, with last year’s ranking in parentheses.

1. Ford F-150 (2)
2. Chevrolet Tahoe (3)
3. Ford Mustang (4)
4. Honda Accord (1)
5. Jeep Wrangler (7)
6. Nissan Altima (9)
7. Honda Civic (6)
8. Chevrolet Silverado 1500 (10)
9. Toyota Tacoma (8)
10. Toyota Camry (5)

Just this past Monday the price of oil increased by 19 cents, finishing the day the highest close for crude oil since October, 2008: $89.38 per barrel on the New York Mercantile Exchange.

A cold snap in the northeastern United States has led to a higher-than-usual demand for heating oil, and investors have also been reacting to rumors that the Federal Reserve may soon go live with a new attempt at jump-starting the economy, which move would increase the upward pressure on oil.

Prices at the pump have been creeping steadily upward over the last month, as well. Even though the consumer demand for gasoline has remained consistently low prices across the country have gone up by more than 30 cents as compared to a year ago, and parts of the Northeast have seen a price increase of over 40 cents a gallon.

Analysts say that if the price of crude oil remains in the $90/barrel range, the average cost of a gallon of gas could hit $3.00 by year’s end, although some consumers have been paying that much for most of this year anyway.

The Hybrid Car blog refers us to analysts from Cameron Hanover who stated in an article distributed via the AP wire service, that for every one-cent increase in the price of gasoline, Americans spend an additional $4 million on oil.

As well, more expensive gas could strain the potential economic recovery. Witness the words of Lisa Margonelli from The Atlantic:

“This is a big hemorrhage of money that could be put to other uses that would boost our economy… A jump in the price of gas will fall disproportionately on the shoulders of the middle class. Families making $50,000 a year already spend an average of $7,900 annually on their cars, maintenance and fuel, according to the GAO. That’s more than they spend on taxes or health care—two costs the Republicans and Democrats have made their respective signature issues.”

Actually, yes. CNN did a story on it two years ago, and the trend has continued. On a normal shopping day, the average customer pays about 4.7% less than sticker price., but on the days before and after Black Friday, they can expect discounts of about 6% and on Black Friday itself, a 7.5% discount is not unusual.

The folks at TrueCar.com agree. Jesse Toprak, an analyst there, said, “The discounts from dealerships, as well as manufacturers’ incentives, generate the highest discounts of the year on Black Friday.”

Toprak added that unlike typical Black Friday purchases, where customers know the price of an item going in, since car prices are individually negotiated at the time of sale and therefore customers don’t know for sure that they’ll be getting a deal, but there’s been a clear trend toward deeper discounts.

What does this mean to you? If you’re planning to buy a new car within the next six weeks anyway, consider shopping this weekend, but even if you wait til the first week in December, never fear – you’ll still be able to get great deals on 2010 models, since most dealerships want to make room for incoming 2011s.

Going forward, there will be new, individual service departments for each of GM’s remaining core brands, with names such as “Chevrolet Certified Service.” GM believes this will make each of the remaining brand images stronger, as well as disassociating them from the General Motors name, which critics say has been tarnished. GM is assuring customers that they will receive level of service previously offered by Goodwrench, including certified technicians and low prices.

According to GM spokeswoman Pamela Flores, Pontiac and Hummer owners should also continue to receive the same level of service, even without Goodwrench. Instead, owners of these vehicles will be able to get them serviced at whatever GM dealership is closest, and GM-certified parts for each brand should remain readily available.

Because of GM’s size, Goodwrench was one of the country’s largest automotive servicers, with more than 80,000 certified technicians.

According to representatives of Fuji, which builds Subaru vehicles, the new slogan reflects the company’s focus on safety and engineering as well as its ongoing commitment to innovations that match the changing needs of its customers.

If the numbers are anything to go by, Subaru has much to be confident about. It posted a 25% increase in October U.S. sales, and has a year-to-date gain of 23 percent – more than twice the industry advance. Two years ago, in 2008, Subaru was the only carmaker to increase American sales in a collapsing market, and last year it was one of three. It’s also on target to recover from a loss last fiscal year.

Mori unveiled the new tag line yesterday, along with a revised earnings forecast for the fiscal year which ends on March 11, 2011, in which he doubled is net income outlook to $597.7 million (50 billion yen) compared to last year’s $196.7 million net loss. Earlier predictions were for a net profit of $298.9 million.

Smart for Nissan | Source: Autonews.com | Click to enlarge

Automotive News reported today on a new deal between Smart USA and Nissan Motor Co. to produce and sell a five-door gasoline-engine small car in the United States. The “B-segment” car is targeted to go on sale during the fourth quarter of next year.

In an interview, Smart USA resident Jill Lajdziak said, “There were a lot of customer requests to offer a little bit larger vehicle.” She also said that the new five-seater is meant to be a direct competitor to the Honda FIT, in America’s growing sub-compact vehicle market.

Smart’s only model, the ForTwo two-seat mini-car built by Daimler, had its peak sales in 2008 – its introductory year – with 24,622 units sold. That year was also marked by gas prices in excess of $4/gallon. Last year, with lower gasoline prices and a collapsed economy, sales plummeted by 41 percent. Year-to-date sales this year, through September 30th, are down 62 percent more, with only 4,779 sales.

The new car will be built on a new global platform in one of Nissan’s factories in the Americas, Nissan spokesman Dave Reuter said.

The free services include vehicle inspections, oil changes, tire rotations, belts and hoses, and wear and tear items like brake pads and wiper blades.

In an announcement to the press, Ken Czubay, Ford Motor Company’s vice president of U.S. marketing, sales and service said, “Our commitment is to further grow the Lincoln brand and offer our luxury customers the premium experience they deserve and expect. Our free scheduled maintenance offer marks only the first step in our plans to further upgrade the Lincoln experience.”

After this summer’s sales event, Lincoln plans to add it’s first ever C-segment vehicles – an array of brand-exclusive powertrains which include new transmissions and an all-new V6 engine. The Lincoln line is also planning to add EcoBoost engines across the board, which would include the first use of such an engine in a full-sized Ford or Lincoln SUV.