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This luxury brand tops J.D. Power's initial quality study
This luxury brand tops J.D. Power's initial quality study

Miami Herald

time27-06-2025

  • Automotive
  • Miami Herald

This luxury brand tops J.D. Power's initial quality study

Lexus at No. 1 and Nissan at No. 2 topped J.D. Power's 2025 Initial Quality Study, replacing Ram and Chevrolet for the least problems per 100 vehicles in the first 90 days of vehicle ownership. Lexus had an average of 166 problems per 100 vehicles. The top Detroit brand was Chevrolet at No. 4 and the third-highest mass-market brand with 178 problems per 100 vehicles, up from 159 a year ago. Overall, the industry's quality based on the survey that ran from June 2024 through May 2025 of nearly 93,000 customers of 2025 model-year vehicles improved to 192 problems per 100 vehicles from 194, largely from improvement by Tesla Inc. Half of the top problems stem from infotainment issues, an area automakers are relying on for differentiation and expanding revenue streams. "While customers do find the larger touchscreens visually appealing, their functionality within the vehicle is an increasing source of frustration," Frank Hanley, senior director of auto benchmarking at J.D. Power, said in a statement. "Customers are having to tap and swipe through multiple screens to access key vehicle functions like climate settings and built-in garage door openers. Owners find these things to be overly complicated and too distracting to use while driving. By retaining dedicated physical controls for some of these interactions, automakers can alleviate pain points and simplify the overall customer experience." For the first time, plug-in hybrids had more problems than fully electric vehicles at 237 per 100 vehicles compared to 212, respectively, with J.D. Power attributing the EV improvement to Tesla. Gasoline-powered vehicles at 184 and hybrids at 196, however, still had fewer issues. Following Chevrolet, Dodge ranked at No. 7 with 180 problems per 100 vehicles, down from last year's 300. Buick tied with Genesis at No. 9 at 183, worse from 164 in 2024. Jeep was just after at No. 10 with 186, improvement from last year's 199. Ford, GMC, Cadillac, Lincoln, Chrysler and Ram all fell below the study average of 192. With 269 problems per 100 vehicles, Audi finished last at No. 31, excluding Tesla and Rivian, which didn't meet the study's requirements. Ford Mustang ranked as the highest sporty car. Buick Encore GX was the highest-ranked small SUV. Cadillac XT5 was the top midsize premium SUV. Ford Escape finished as the top compact SUV. The top large SUV was the Chevrolet Tahoe. Chevrolet Blazer received the top midsize SUV recognition. Jeep Gladiator tied with Hyundai Santa Cruz for top midsize pickup truck, while for full-size trucks the Ford F-150 tied with the Chevrolet Silverado. Ford Super Duty topped the large heavy-duty pickup segment. The Porsche 911 was the highest-ranked vehicle overall with 116 problems per 100 vehicles. Ford Motor Co., whose financial results have struggled from warranty costs and recalls, in a news release highlighted that the Ford brand had more segment winners than any other brand, though General Motors Co. overall had the most top-ranked vehicles in their segments. Ford's eligible vehicles placed in the top three of their respective segments. No. 14 Ford's problems per 100 vehicles increased to 193 from 178, and No. 20 Lincoln's fell to 206 from 224. "Customers expect new vehicles to make their lives easier, more fun, or both right from the first mile," Josh Halliburton, Ford's executive director of quality, said in a statement. "Four segment topping finishers and overall improving vehicle quality scores for most nameplates show that while we have to remain laser focused on earning the trust of our customers, we're headed in the right direction." None of the Detroit Three's plants received assembly line quality awards from J.D. Power. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.

GM vs. TM: How Do These Legacy Giants Stack Up in the Auto Space?
GM vs. TM: How Do These Legacy Giants Stack Up in the Auto Space?

Yahoo

time05-06-2025

  • Automotive
  • Yahoo

GM vs. TM: How Do These Legacy Giants Stack Up in the Auto Space?

General Motors GM and Toyota Motor TM are two of the biggest names in the global auto industry and fierce rivals in the U.S. market. GM often leads the pack as the top-selling automaker in the country, while Toyota usually comes in a close second. In 2024, GM sold over 2.7 million vehicles in the United States, up 4% year over year. Toyota wasn't far behind, delivering 2.33 million units, a 3.7% increase from 2023. Globally, Toyota holds a clear edge. The Japanese automaker sold 10.8 million vehicles worldwide last year, compared to GM's 6 million. Toyota's scale and steady performance are reflected in its market value—around $255 billion—while GM trades at just under $50 billion. Year to date, shares of Toyota have declined 1.7%, compared with GM's decline of 8%. The auto sector has lost 10% over the same timeframe. Image Source: Zacks Investment Research Let's take a closer look at their fundamentals, growth catalysts and looming risks to determine which automaker is a better choice for investors now. General Motors is holding its ground but cracks are starting to show. The automaker managed to beat earnings expectations once again in the last reported quarter—a sign of resilience—but the near-term outlook is getting cloudier. Tariff pressure under Trump's presidency forced GM to revise its full-year outlook. The company now expects adjusted EBIT of $10 billion to $12.5 billion, down sharply from its earlier range of $13.7 billion to $15.7 billion. Net income projections were cut as well. GM suspended its share buyback program after having $4.3 billion in repurchase capacity left at the end of the first quarter of 2025. That move has rattled some investors, raising questions about how well GM is positioned to absorb the tariff blow. The company is also vulnerable to supply chain disruptions. GM expects a $2 billion impact from South Korean operations alone, where vehicles like the Chevrolet Trailblazer and Buick Encore GX are built—models that made up nearly 18% of its first-quarter sales. Its reliance on manufacturing in Mexico and Canada adds another layer of uncertainty. Even as GM pushes forward on its electric vehicle ambitions, the payoff remains uncertain. The company was the second-largest EV seller in the United States last quarter, and Chevrolet is now the fastest-growing EV brand. It also managed to make its EV lineup "variable profit positive" by the end of 2024, which means it now covers basic production costs. Still, that's a long way from achieving healthy margins, and progress will take time. Heavy investment in EVs, battery tech, and software continues to eat into GM's free cash flow. The company has lowered its adjusted automotive free cash flow forecast to $7.5-$10 billion, down from $11-$13 billion. While GM does have a strong cash position—$20.7 billion at the end of the first quarter of 2025—its financial flexibility could tighten if global risks escalate further. GM's long-term vision remains intact, but the road ahead is looking bumpy. The Zacks Consensus Estimate for GM's 2025 sales and earnings implies a year-over-year decline of 5.3% and 12%, respectively. EPS estimates for GM have been revised downward over the past 60 days. Image Source: Zacks Investment Research Toyota continues to show why it's considered one of the most dependable players in the global auto space. The company topped earnings expectations in its last reported quarter and expects to grow both sales volumes and revenues in fiscal 2026 (ending on March 31, 2026). However, profits may come under pressure as new challenges emerge. Toyota forecasts a 21% drop in operating income for fiscal 2026. That's largely due to rising material costs, a stronger yen and the impact of Trump's tariffs. Higher vehicle prices could hurt consumer sentiment and weigh on demand, especially in key markets like the United States. On the bright side, Toyota expects to sell 9.8 million vehicles in fiscal 2026, up from 9.36 million in fiscal 2025. Including Lexus, total sales are projected to reach 10.4 million units. Electrified vehicles—including hybrids and plug-ins—are a major driver, with expected sales rising to 5.18 million units, up from 4.75 million last year. That momentum is reflected in revenue forecasts, with sales projected to rise slightly to ¥48.5 trillion in fiscal 2026. Toyota's hybrid-first strategy is clearly resonating with buyers. RAV4, America's top-selling SUV, is now available only as a hybrid or plug-in hybrid model starting in 2026. By ditching the gas-only version, Toyota is doubling down on efficient, accessible electrification—something that stands out as BEV adoption is expensive. Beyond hybrids, Toyota is also making big moves in hydrogen. It's focused on expanding commercial vehicle use and scaling hydrogen infrastructure to cut costs over time. Meanwhile, Toyota is keeping investors happy. It raised its annual dividend to 90 yen per share in fiscal 2025 and expects to increase it to 95 yen in fiscal 2026. With consistent dividend growth and a measured approach to electrification, Toyota remains a steady and strategic player in an uncertain auto landscape. The Zacks Consensus Estimate for TM's sales in fiscal 2026 implies 6% growth year over year. The consensus mark for EPS, however, implies a decline of 13.5% year over year. While fiscal 2026 estimates for TM have moved down over the past 60 days, fiscal 2027 estimates have moved up. Image Source: Zacks Investment Research Our Take: TM Over GM Both General Motors and Toyota are navigating a tough macro environment with tariffs and rising costs squeezing profitability. GM is making steady progress in EVs and holds a strong position in the U.S. market, but near-term challenges and reduced financial forecasts have clouded its outlook. Toyota, meanwhile, continues to flex its global scale, hybrid dominance, and disciplined strategy—even as profit growth stalls. Its steady top-line momentum, growing electrified sales, and dividend growth are appealing. While GM has potential, Toyota's fundamentals and strategy look stronger now. Toyota currently carries a Zacks Rank #3 (Hold), while GM carries a Zacks Rank of 5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio

Fallen military heroes' children gifted cars in Owensboro
Fallen military heroes' children gifted cars in Owensboro

Yahoo

time14-05-2025

  • Automotive
  • Yahoo

Fallen military heroes' children gifted cars in Owensboro

OWENSBORO, Ky. (WEHT) — On Tuesday, two young minds in Owensboro received the surprise of a lifetime: brand new cars. It's in honor of the sacrifice their families made for our ahead of Memorial Day, two gold star students are driving forward with something their late fathers would have wanted for them safety, freedom and stability. Evansville woman beaten and robbed Monday afternoon Micaela Trimble and Parker Madden were honored with new payment-free vehicles, thanks to Freedom Alliance and U.S. Bank's Driven to Serve program. Trimble is a Belmont University graduate working in event planning. 'I feel like [my dad] is watching over me to be able to be the one to get selected,' says Trimble. ''I was sharing a car with my sister, so I was basically begging to use her car whenever she didn't need it.' Madden will be a sophomore at Western Kentucky University this fall. With no team bus, he says he often takes his mothers car to transport to lacrosse competitions out-of-state. 'When I was driving down for my freshman year, pieces of my car were flying off the highway,' says Madden. Their fathers made the ultimate sacrifice in Afghanistan: their life. Both were living without their father by the time they were 5-years-old. Pair that with being apart of Freedom Alliance's scholarship program and officials say they've more than earned these stylish wheels. Madden was gifted a 2025 Chevy Equinox. Trimble was gifted a 2025 Buick Encore GX. 'Providing safe, reliable transportation is something their dads would be doing for them if they were here. So, we sort of consider it part of our responsibility as their fellow Americans to help them take care of their kids,' says Tom Kilgannon, the President of Freedom Alliance. Trimble's father, Private First Class Chad Trimble, died in May 2008. He was just 2 months into his deployment. Parker Madden's father U.S. Army Specialist Russell Madden was killed in 2010 when a rocket propelled grenade attacked his convoy. Madden says his first pit stop in his new car will be special. He'll go for a drive to Memorial Parkway. 'There's a road back home dedicated to my dad. It has his name on it. So, I would definitely take the car to that road first,' says Madden. 'I'd love to take my mom, my sister and my dog to the lake,' says Trimble. They say its something they'll remember forever, just like their fathers' legacies. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

GM Trims Outlook, Halts Buyback Amid Tariffs: Sell the Stock Now?
GM Trims Outlook, Halts Buyback Amid Tariffs: Sell the Stock Now?

Yahoo

time05-05-2025

  • Automotive
  • Yahoo

GM Trims Outlook, Halts Buyback Amid Tariffs: Sell the Stock Now?

General Motors GM has lowered its 2025 earnings forecast, warning that new U.S. auto tariffs could cost the company $4-$5 billion. The updated guidance, released yesterday, comes two days after the company released its first-quarter results and withdrew its previous outlook, which didn't take tariffs into account. It has also temporarily suspended the buyback of shares amid uncertainty. The move reflects rising pressure from global trade tensions, as Trump's tariffs target foreign-built vehicles and parts. GM's closest peer Ford F will release results next week and chances are high that it will also slash its 2025 view. Ford's previous outlook also didn't take into account tariffs and the company's CEO had already warned that tariff headwinds would cause a lot of chaos in the auto industry. U.S. motorcycle giant Harley-Davidson HOG has also withdrawn its guidance amid macroeconomic and tariff uncertainties. GM, which holds the title of the top-selling automaker in the United States, now expects lower profit, cash flow, and earnings compared to earlier projections. After this revised guidance, investors might be wondering if it's still worth holding onto the stock. Before we discuss that, let's take a look at the revised guidance and see how General Motors is positioning itself to weather the tariff storm. GM now expects adjusted EBIT in 2025 to range between $10 billion and $12.5 billion, down from its prior guidance of $13.7-$15.7 billion. Net income attributable to shareholders is expected to fall and be in the range of $8.2 billion to $10.1 billion compared with the earlier forecast of $11.2-$12.5 billion. Adjusted automotive free cash flow is also expected to be hit and is now projected in the range of $7.5-$10 billion, lower than $11-$13 billion guided earlier. One of the biggest contributors to the downward revision is a projected $2 billion business hit from South Korea. Vehicles like the Buick Encore GX, Buick Envista, Chevrolet Trailblazer and Chevrolet Trax are all assembled there and made up nearly 18% of GM's first-quarter vehicle sales. GM also cited lingering exposure to manufacturing facilities in Canada and Mexico. At the end of the first quarter of 2025, GM had $4.3 billion repurchase capacity remaining. But it has put a temporary freeze on additional repurchases until there is more clarity on the tariff impact. Analysts have started to make downward revisions to General Motors' EPS forecasts for 2025 and more cuts might be on the way. Image Source: Zacks Investment Research General Motors believes it can offset up to 30% of expected tariff-related costs through what it calls 'self-help initiatives,' which have been accounted for in the updated guidance. These initiatives include ramping up U.S.-based vehicle and battery module production and tightening compliance with USMCA sourcing requirements. CEO Mary Barra emphasized GM's multi-year shift toward a more U.S.-centric manufacturing footprint. Since 2019, the company has raised its U.S. direct purchases by 27%, with more than 80% of U.S.-built vehicle content now meeting USMCA standards. Simultaneously, GM has drastically reduced its reliance on China for direct materials to under 3%, aligning its supply chain with evolving trade dynamics. Year to date, shares of General Motors have declined 15%, outperforming the industry. The decline is also lower than Harley-Davidson, whose shares have plunged 23% so far in 2025. Meanwhile, Ford has gained 2.8% in the same timeframe. Image Source: Zacks Investment Research From a valuation standpoint, General Motors appears relatively undervalued. The stock trades at a forward price-to-sales (P/S) ratio of just 0.25, well below the industry average of 2.19. GM also boasts a Value Score of A, highlighting its attractive valuation. In comparison, Harley-Davidson trades at a P/S ratio of 0.69, while Ford's multiple matches GM's at 0.25. Image Source: Zacks Investment Research GM is facing some short-term challenges, but its long-term strategy remains on track. It is on course with its long-term electric vehicle (EV) strategy. The company was the #2 EV seller in the United States, with Chevrolet becoming the fastest-growing EV brand in the market. Importantly, GM's EV lineup turned 'variable profit positive' by late 2024, meaning it now covers its production costs. The company expects to cut EV-related losses further this year. Financially, GM remains in solid shape. It finished the first quarter with $20.7 billion in cash and cash equivalents. Its restructuring efforts in China have started to show progress, with the company targeting a return to profitability in those regions. The company remains profitable and committed to long-term growth, but near-term risks are clearly rising. Much will depend on how effectively GM can reduce the impact of tariffs and keep its costs under control. Yes, tariffs will put pressure on GM's margins this year and the recent halt in stock buybacks may shake investor confidence. Lowered earnings estimates could also weigh on sentiment in the near term. However, for long-term investors, GM's story is far from broken. The company is managing costs, advancing in EVs, and still generating strong cash flow. So, if you are thinking of selling the stock, it may be too soon. GM still has the fundamentals and the strategy to deliver over time. It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Wall Street average target price for General Motors is $53.46, suggesting an 18.2% upside. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio

What Is E85 Gas, And Is Fuel Economy The Only Downside?
What Is E85 Gas, And Is Fuel Economy The Only Downside?

Yahoo

time30-03-2025

  • Automotive
  • Yahoo

What Is E85 Gas, And Is Fuel Economy The Only Downside?

E85 — aka Flex Fuel — is a domestically produced, renewable, alternative fuel blend consisting of around 85-percent ethanol and 15-percent gasoline. Made for use in specially prepped flex fuel vehicles, it's the most common flex fuel available on the market. There are currently, as of March 2025, more than 4,200 public gas stations in 44 US states that sell E85 alongside regular old dinosaur squeezins. Most of those E85 pumps are clustered in and around the Midwest where corn is king, though flex fuel is generally available in other regions if you know where to look. Flex fuel has been available to greater or lesser degrees since the 90s, and during that time it's been fodder for countless arguments, studies, and forums flame wars. Questions about E85's effectiveness, efficiency, and whether or not it's just a handout for corn farmers have been hashed out over and over again. It's largely settled science at this point, however. E85, like anything else, has its pros and cons, and whether the cons outweigh the pros is entirely up to the end user. Read more: What Car Has The Worst Build Quality You've Ever Seen? E85's pros and cons are pretty well-trodden ground these days. On the plus side, E85 is renewable, sustainable, and burns cleaner than straight gasoline which reduces a vehicle's greenhouse gas emissions. It also typically costs less per gallon than regular unleaded, but that can vary by availability. In addition, an engine running E85 is pretty resistant to spark knock as flex fuel typically has an octane rating over 100. Also, the amount of sheer energy flex fuel packs shouldn't be overlooked, and flex fuel vehicles tend to produce more torque and horsepower when running E85 than they do on regular unleaded. Now, of course, there are some downsides to mixing all this corn into your gasoline. For starters while flex fuel produces more power and torque, it's less efficient than gasoline and running it reduces a vehicle's fuel economy — you'll always go fewer miles on E85 than you would on an equivalent amount of gasoline. High concentrations of ethanol in fuel can also make a car hard to start, especially in cold weather. In fact, the amount of ethanol in E85 is often reduced in winter months to help deal with this issue. Finally, there are some places E85 just isn't available. Sure, you can run regular fuel in a flex fuel vehicle, but you paid all that money for flex fuel capabilities so why would you? To run E85, a vehicle either needs to be built to run it or it must have undergone a conversion to use it. The golden age of American flex fuel vehicles ran from around the mid-aughts to the late teens, when it seemed like every brand had at least one or two models that ran E85. Currently, however, there are six MY2025 flex fuel vehicles sold in North America and they're all GM products — the Buick Encore GX, Buick Envista, the 4x4 Chevy Silverado/GMC Sierra twins, Chevy Trailblazer, and the Chevy Trax. If you add leftover MY2024 models to that list it bumps the number all the way up to 11 with the addition of the 2024 Silverado/Sierra RWD trucks and one lone Ford, the 2024 Explorer FFV AWD. You can usually tell a flex fuel vehicle because it will feature obvious exterior badging stating proudly that the vehicle can, in fact, use E85. In addition, many flex fuel capable vehicles have a yellow fuel cap to match the yellow rubber sheathes on E85 pumps (like diesel cars and trucks have green gas caps). If your vehicle has neither badges nor a yellow fuel cap, your owner's manual should be able to tell you if you can safely run E85. Finally, if all else fails, you should be able to find the information on your vehicle's preferred fuel on any number of internet forums, on Reddit, or at the manufacturer's website. If you have a non-E85 vehicle and you're still intent on running corn juice in your car, you'll have to make some changes under the hood. If your car was built after 1995 and is fuel injected, you can usually get away with a couple of simple control modules and a fuel sensor to make it flex fuel capable. Depending on your vehicle, you may need to install new injectors as well. Companies like eFlexFuel sell full kits that make converting your car to run E85 relatively simple if you have at least some basic mechanical skills. If your car is older and/or has a carburetor, you're going to need to do more work to convert it. Depending on your vehicle, you may have to switch out the fuel pump, tank, injectors, and any steel or rubber fuel lines due to the corrosive nature of ethanol. If your car is particularly cool and still runs a carburetor, you'll likely need to remove the stock unit and replace it with a carburetor capable of using E85 without all the little rubber seals and diaphragms and gaskets inside melting away. Converting an older car to E85 is, as you can see, more involved and potentially more expensive. Whether it's worth it is up to you. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.

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