The Automotive News Week in Review - October 30, 2009

General Motors Extends Money Back Guarantee

Encouraged by the fact that almost no one took General Motors up on its offer to refund the full purchase price of any of its vehicles should a buyer be unsatisfied with one for any reason, GM has extended the deadline for taking advantage of its unique guarantee. Whereas the original program was slated to end on November 30, 2009 it will now run through to just past the new year – January 4, 2010.

While the success of GM’s money-back guarantee, which applies to all Cadillac, Chevrolet, Buick and GMC vehicles might seem impressive, there are those who point to the complex rules that must be followed by unsatisfied owners as the true reason for the small number of returned cars and trucks. Participation in the program also precluded being able to claim a certain cash incentive, which lowered overall participation to just under 500 buyers. So far, only 4 vehicles have been dropped off at the dealerships from which they originally came, although at least 10 times as many have initiated the process.

Acura to Join Premium Wagon Party

Tired of sitting on the sidelines while seeing other luxury marques such as BMW, Audi, Mercedes-Benz and now Cadillac market high-end wagons, Acura has decided to jump on the bandwagon with the impending release of the 2011 Acura TSX Sport Wagon. Although the vehicle will not make it to North American shores until the fall of 2010, it does point towards a new direction for the Acura lineup, which is currently composed exclusively of crossovers and sedans.

The 2011 Acura TSX Sport Wagon also happens to be a fairly low-investment vehicle for the Japanese luxury brand, as it will be based largely on the Honda Accord Touring wagon currently sold in Europe with bits of the Acura TSX sedan thrown in for good measure. Interested buyers can expect the usual exterior enhancements to bring the Honda platform in line with Acura’s styling cues, as well as a range of engines including a four-cylinder base model and a more powerful V6.

Chrysler Offers Live TV – GM Counters with In-Car Wi-Fi

In the ongoing battle to distract drivers as much as possible from the actual task of driving, two major American automakers have unveiled plans to cram even more technology into their future vehicles. Expanding on its range of entertainment on the go that already includes Sirius satellite television, at the end of this year Chrysler will begin equipping certain models with a multicasting television service. Called FLO TV, the system will display up to 20 live television channels on a car or truck’s rear video monitors or even the front navigation screen if the transmission is in park. Priced in the neighborhood of $600, the option can also be back-fitted to several 2008-2009 Chrysler, Dodge and Jeep models like the Dodge Grand Caravan, its Chrysler Town & Country equivalent, and the Jeep Grand Cherokee. A yearly subscription fee applies.

The high-tech arms race continues within the confines of GM vehicles thanks to the recent availability of a portable internet router that is designed to extend a Wi-Fi hotspot of approximately 150 feet surrounding the automobile it is installed in. The primary benefit of the device is to enable the use of the internet on mobile devices like cell phones or PDA’s. However, backseat web surfing and the streaming of internet radio stations to the vehicle’s stereo system are now also in the cards. Like FLO TV, a subscription fee applies.

Honda to Go Against the Flow, Shrink Popular Platform

One of the commonly accepted truths in the automobile business is that cars get bigger with each passing model year, not smaller. The perceived demands for longer vehicles with more interior space and greater prestige, combined with the added weight of luxury features and safety equipment have contributed to significant bloating amongst the world’s automotive lineups over the past 20 years. This has even trickled down to the compact field, where entry-level cars now offer dimensions more on par with what would have been considered mid-size a mere 15 years ago.

Honda has decided to stop the madness with the next iteration of its very successful Honda Civic compact sedan and coupe. In the name of improving fuel economy, Honda has declared that the upcoming generation of the Honda Civic will boast both a smaller footprint as well as a lighter girth than the current model. Naturally, the Honda Civic can only shrink so much before it begins to encroach on the market served by the subcompact Honda Fit, but this information is good news for anyone looking to spend less at the pump but still enjoy a more substantial car than what ultra-small entry-level segment has to offer.

Nissan Stirs Up Interest With Nissan Leaf Tour

In order to raise awareness about its efforts to bring an affordable plug-in electric vehicle to the United States, Nissan has decided to take the Nissan Leaf compact on an extended, 22 date tour of the country. Starting in mid-November at the L.A. Auto Show, the Leaf will travel from coast to coast, hitting as many different automotive events as it can. It will even cross the border into Canada where it will make the scene in Vancouver, British Columbia.

Nissan has been working hard to create a network of charging stations and electric vehicle support infrastructure in the U.S. throughout 2009 in an effort to ensure the success of the Nissan Leaf when it finally hits showrooms. Unlike the Toyota Prius or the Chevrolet Volt, the Nissan Leaf is electric-only, a segment of the market which Nissan feels it can achieve significant leadership in by laying extensive groundwork before any other car company can do the same.