Toyota launches massive recall for window switch defect

 Toyota Canada Inc. announced a new safety recall this week for issues with the driver's side power window master switch in certain vehicles.
In impacted vehicles, the power window master switch may have been manufactured with insufficient lubricant grease.

"If sufficient grease is not applied, under certain conditions the switch may develop a short circuit that can cause the switch assembly to overheat and melt. A melting switch can produce smoke and potentially lead to a fire," the company said in the statement announcing the recall.
As of Thursday, the VIN range of possible affected vehicles was still subject to confirmation, and Transport Canada will be notified as soon as the number becomes available, the company said.
That said, the automaker has reported the issue impacts 6.5 million vehicles worldwide, 2 million of which are in the U.S.
Affected models include:

• 2007 and 2009 Toyota Camry and Toyota Camry Hybrid
• 2009-2011 Toyota Corolla
• 2009-2011 Toyota Highlander and Toyota Highlander Hybrid
• 2009-2011 Toyota Matrix
• 2006-2007 and 2009-2011 Toyota RAV4
• 2009-2011 Toyota Sequoia
• 2009-2011 Toyota Tundra
• 2006-2007 and 2009-2011 Toyota Yaris
• 2006 and 2009-2011 Scion xB
• 2009-2011 Scion xD

Interestingly, Toyota previously recalled a group of 2007-2009 model-year vehicles for a similar conditions, and this safety recall serves to add vehicles not previously involved in the prior action that utilized an alternative lubricant application method.
Owners of the involved vehicles will be notified by mail. When owners bring their vehicles in, Toyota dealers will inspect the switch and apply heat-resistant grease. Then, if the switch is not operating normally, the switch circuit board will be replaced.

By Auto Remarketing Canada Staff

Toyota Launches Massive Recall for Window Switch Defect.............. www.redlineautosales.ca/toyota-launches-massive-recall-for-window-switch-defect.htm

Top 15 vehicles owners keep for 10 years

What cars do owners hold onto the longest? Besides the fact that vehicles are lasting longer today than ever before, this is a valuable question - a question whose answer could potentially increase service revenues and make valuable trade-in prospects.

iSeeCars.com took a look at over 395,000 used cars from model year 2005, sold by the original owner between January 1 and July 30 of this year, to get a better understanding of what kind of vehicles were reaching the decade mark by these original owners who bought the cars new.
Looking at the iSeeCars chart below, you'll see the 15 models among the 168 models studied that were kept the longest, all at least 1.5 times or more likely to be held onto than the average vehicle (which came in at 13.5 percent overall).

Top 15 New Cars Owners Hold Onto for 10 Years

Rank	Model	% Original Owners Holding Car for 10 Years	Compared to Average
1	Honda CR-V	28.6%	2.1x
2	Toyota Prius	28.5%	2.1x
3	Toyota RAV4	28.2%	2.1x
4	Toyota Highlander	26.5%	2.0x
5	Honda Odyssey	25.6%	1.9x
6	Toyota Sienna	25.4%	1.9x
7	Toyota Camry	24.4%	1.8x
8	Toyota Avalon	23.8%	1.8x
9	Honda Pilot	23.3%	1.7x
10	Honda Element	23.1%	1.7x
11	Subaru Forester	22.9%	1.7x
12	Toyota Matrix	22.6%	1.7x
13	Honda Accord	22.1%	1.6x
14	Toyota Corolla	21.5%	1.6x
15	Toyota 4Runner	21.1%	1.6x
	Average of All Cars	13.5%	-

Some quick takeaways you'll notice: they're all from Japanese automakers. Nine are Toyotas. Five are Hondas. One Subaru.
That's not the surprise, however, according to iSeeCars.com's chief executive officer, Phong Ly. The surprise comes from their segment makeup.
Ten out of the 15 vehicles are CUVs or minivans, with four out of the top five falling into either one of those two categories.
"These vehicles tend to be largely family cars, so if people buy these cars when they are just starting their families, it stands to reason that these cars would suit them for many years," Ly said in an analysis of the data.
Another key takeaway, according to iSeeCars, is the weak showing by what they see as the most popular vehicles from the list of fledgling double-digit ownership.

% of Owners Holding Onto Popular Cars

Model	% Original Owners Holding Car for 10 Years	Compared to Average
Toyota Camry	24.4%	1.8x
Honda Accord	22.1%	1.6x
Honda Civic	18.2%	1.3x
AVERAGE	13.5%	-
Chevrolet Silverado 1500	13.1%	1.0x
Nissan Altima	13.1%	1.0x
Dodge Ram Pickup 1500	11.7%	0.9x
Ford F-150	11.4%	0.8x
Ford Escape	10.9%	0.8x
Chevrolet Equinox	10.0%	0.7x
Jeep Grand Cherokee	9.5%	0.7x

The list is especially devoid of one of North America's favorite vehicle types, the pickups.
"One reason that may be is because these cars are often used as work vehicles, such as in construction," Ly said. "Work vehicles log many more miles than average, likely requiring them to be replaced sooner."
On that same note, Ly also speculates that the absence of domestic brands in the most-held-onto group might be a result of them not having the same reputation for reliability that the Japanese brands typically garner.
The bottom of the overall list is riddled with domestic vehicles that are typically known for their use in commercial fleets or as rental vehicles, including the Chevrolet Impala, Chrysler Sebring and the Ford Taurus, or vehicles that make popular lease choices, like the BMW 5 Series.
"All of those markets are designed for cars that are no more than a few years old, so a decade after these 2005 cars were introduced, most of them would be sold by their second or third owners, rather than the original owners," Ly said.
According to Ly, car shoppers can sometimes find the most value in these older vehicles that have been kept by a single owner.
"Cars kept by the original owners for a decade tend to be well-cared-for, in terms of actual maintenance and repairs as well as overall cleanliness, so a car shopper is likely to find more value than in a car that has been through multiple owners and with a history that may not be so straightforward," Ly said.

By Auto Remarketing Staff.
Top 15 Vehicles Owners Keep for 10 Years......................www.redlineautosales.ca/top-15-vehicles-owners-keep-for-10-years.htm

Phablet users dig auto sites

After reading this headline, you may be saying to yourself, "What is a 'phablet?'"
Or holding back a chuckle at the silly sound of the word.

While either of those might be an appropriate response, a "phablet" - a smartphone with a screen size of 5.5 inches or larger, nearing the size of a tablet - is the source of media for a large constituent of mobile users.
And, according to the J.D. Power 2015 Automotive Mobile Site Study, the satisfaction with OEM and third-party automotive websites is higher across all aspects of the online experience among shoppers using them.
"Automotive manufacturer and third-party website designers should be mindful of growing phablet usage and take advantage of the larger screen by displaying more content and adding detail to maximize shopper satisfaction and drive more traffic to dealer showrooms," said Arianne Walker, senior director of automotive media and marketing at J.D. Power. "The time spent on mobile devices for automotive shopping is increasing, and this trend of buying and using phablets is expected to continue."
Breaking down the numbers, the study shows that vehicle shoppers using "phablets" are more satisfied with their individual website experiences than those who use smaller smartphones (797 versus 771, respectively, on a 1,000-point scale).
There are also significant satisfaction gaps in individual study measures for shoppers using larger or smaller smartphones, including satisfaction with information/content (796 versus 769), navigation (783 versus 758), appearance (816 versus 791) and speed (794 versus 767).
Acura, TrueCar shine in website rankings
Looking directly at the ratings of manufacturer-branded and third-party website rankings, on the same 1,000-point scale, Acura ranked the highest (812) in overall customer satisfaction index scores of OEM sites while TrueCar ranked the highest (776) among its third-party rivals.
Here are the top three for each segment:
Manufacturer-branded mobile site rankings

1. Acura (812)
2. Infiniti (809)
3. Fiat (808)

Third-party mobile site rankings              

1. TrueCar (776)
2. CarGurus & Yahoo! Autos (both 744)
3. U.S. News Best Cars (742)

by Auto Remarketing Canada



Phablet Users Dig Auto Sites..................... www.redlineautosales.ca/phablet-users-dig-auto-sites.htm

CADA asks feds to cut taxes & 'red tape'

Dealers are calling for the Canadian government to focus on creating an environment for dealerships and small businesses to prosper. The Canadian Automobile Dealers Association - representing 3,300 franchised dealers - launched its election campaign platform on Monday, which focuses on policy recommendations that will create a favorable environment for dealerships to succeed in what is a challenging domestic economic landscape in light of falling oil prices and a suffering currency exchange rate.
"Car dealers have a great story to tell," said Michael Hatch, CADA chief economist. "We are the largest and most geographically broad sector of the Canadian auto industry, which has come through very challenging times in recent years. As the federal parties finalize their own platforms and economic policies ahead of the vote in two weeks, we are here today to present automobile dealers' election campaign platform to help ensure prosperity in highly challenging domestic economic times."
CADA's federal policy priorities focus, in particular, on four items, as outlined by the organization:

• Further tax reduction for small businesses and consumers

Explaining CADA's tax deduction plan, the organization is calling for legislators to improve dealers accessibility to the small business deduction by "reducing the current grind that sees capital-intensive small businesses like auto dealers lose access to the small business tax rate."
It is also calling for the government to remove lien notes from the calculation of taxable capitol in further efforts to seek access to the small business tax rate.

• A continued push for red tape elimination

CADA is asking the government to continue to cut down on what it calls "needless red tape." Specifically, the organization is calling for paper fuel economy labels for new cars and trucks to remain voluntary and not mandatory, noting these labels are "old fashioned."

• Maintenance of automobile leasing provisions in the Bank Act

CADA is also voicing its continued support for the maintenance of current restrictions on the Banks in the automotive leasing business. This is particularly important to the new-car industry as leasing levels extremely high before the economic downturn and fell off dramatically after 2008, impacting the new- and used-car business.

• Policies aimed at improving the way in which the Canada Revenue Agency administers tax law in Canada

On this point, CADA is focusing on calling the government to make the needed investments to ensure CRA has the industry-specific knowledge it needs to "administer tax law fairly and evenly for new-car dealers." They are also calling for increased communications between CRA's rulings and audit divisions on business tax policies going forward.
Lastly, the organization is asking the government to continue its efforts to lower tax levels for consumers and small businesses, working to ensure these tax reductions are not made void by provincial tax hikes.
"Canada's car dealers bring to the federal parties a comprehensive list of policy recommendations aimed at ensuring a sustainable economic recovery for small businesses of all kinds," continued Hatch. "As all parties finalize their campaign platforms, we urge them to keep economic policy and small business at the forefront of their policy priorities."

By Auto Remarketing Canada Staff

CADA Asks Feds to Cut Taxes & Red Tape........................................................... www.redlineautosales.ca/cada-asks-feds-to-cut-taxes----red-tape-.htm

EPA plan to assess other diesel vehicles

OTTAWA - 

The VW emissions scandal - or Dieselgate, as the public has dubbed it - continues to unfold, as the automaker reported a shift in leadership last week and continues to be hounded by regulators across the globe.
For example, on Sept. 22, the Government of Canada opened an investigation into VW's alleged use of defeat devices to get around emissions regulations, shortly after VW Canada called for a stop sale of the effected diesel models.
And this week, Environment Canada announced it is expanding its on-going collaborative work with the U.S. Environmental Protection Agency to assess other diesel vehicles for defeat devices, turning its sights on other brands and automakers, as well.
"Vehicles will be subject to a variety of tests including on-road testing using portable emission measurement systems. This collaboration will ensure we move as quickly as possible to test the broadest spectrum of light-duty diesel makes and models for potential defeat devices," the statement released on Monday stated. "Environment Canada is actively acquiring light duty diesel vehicles to test for defeat devices or other compliance issues."
Environment Canada also stated it's important to note these activities are separate from the VW investigation it announced on Sept. 22.
Just a day after Environment Canada announced it is looking into other diesel makes and models, multiple online reports indicated that VW OEM leadership in Germany is making plans to modify up to 11 million units worldwide to correct the aforementioned defeat device software. The plan is projected to cost $6.5 billion.
The entire incident certainly has escalated - to the point that Volkswagen replaced its top executive last week.
Furthermore, VW also confirmed on Tuesday what reportedly was in the works - with activities in the U.S., Mexico and Canada being consolidated as one new North American region and Winfried Vahland, formerly the chairman of the board of directors at Skoda, as the leader of the region.
The OEM indicated this newly formed region with Vahland at the controls as president and CEO will be effective Nov. 1.
Environment Canada's statement to start looking into other diesel vehicles for the same issue that brought about the VW investigation might be cause for worry for automakers as the scandal is already heavily impacting consumer trust in VW brand.
A recent survey by California-based AutoPacific shows only 1 out of 4 vehicle owners have a positive opinion of VW, compared to 3 out of 4 prior to hearing the recent news.
Its Audi brand is suffering, as well, as 29 percent of those surveyed said they have a favorable opinion of the brand, compared to 69 percent prior to the news break.
And trust is the automaker is waning, as well, since 64 percent of survey respondents said in light of the issue, they no longer trust VW.
"How Volkswagen handles this issue is critical. Trust in an important issue with consumers, and every brand works hard to maintain that trust," says Dan Hall, Vice President at AutoPacific.


By Auto Remarketing Canada Staff

EPA Plan to Assess Other Diesel Vehicles.......................................................... www.redlineautosales.ca/epa-plan-to-assess-other-diesel-vehicles.htm

Self-Parking Tech vs. Drivers, Who Wins?

The technology isn't the problem. Confidence in it is.

Americans don't trust self-parking technology. But maybe they should.
Some 80% of American drivers are confident in their parallel parking abilities, according to a survey by AAA. However, the organization found in a series of tests that self-parking technology outperformed manual parkers in number of curb strikes and maneuvers, speed, and accuracy. Drivers lost out even though they had help from a standard back-up camera in the car.
AAA and the Automobile Club of Southern California's Automotive Research Center tested self-parking features on five vehicles: a 2015 Lincoln MKC, a 2015 Mercedes-Benz ML400 4Matic, a 2015 Cadillac CTS-V Sport, a 2015 BMW i3 and a 2015 Jeep Cherokee Limited.
The testing found drivers who used self-parking systems experienced 81 percent fewer curb strikes and were able to complete the task 10 percent faster than drivers who did it themselves. Self-parking systems parallel parked the vehicle using 47 percent fewer maneuvers, with some systems completing the task in as little as one maneuver, according to AAA.
Self-parking tech does have its issues. AAA found that some systems parked the vehicles exceedingly close to the curb, which left wheels and tires vulnerable to scratches and costly repairs. Some systems left as little as a half-inch buffer. AAA recommends drivers leave 6 to 8 inches between the vehicle and the curb when parallel parking.
Self-parking technology might do a better job, but drivers just aren't ready to give up control of the wheel. Only one-in-four drivers who responded to the AAA survey said they would trust this technology to park their vehicle.
And therein lies the conundrum for automakers, which are under industry pressure to add more technology to their new vehicles. In-vehicle technology is big business-about $14.5 billion in projected revenues for this year alone, according to the Consumer Electronics Association. And yet, consumers are wary of a lot of the tech that's being added to vehicles. And in some cases, consumers are apparently so repulsed by certain tech that they'd rather it not be included in their next car.
A survey released in August 2015 by J.D. Power found that at least 20% of new vehicle owners have never used 16 of the 33 technology features measured. In the J.D. Power survey, 39% of consumers surveyed said they don't want an automatic parking system in their next car. However, 82% said they would like parking assist (which still gives the driver manual control).
In short, there's a significant gap between the technology available in cars today and people who actually want to use it. In some cases, it's a lack of trust in the technology (or seen another way, a greater confidence in our own abilities). In other cases, consumers just don't see a need for the technology.
Either way, this hesitation toward today's tech foreshadows the challenge automakers face to convince people to give up all control and jump into a self-driving car. Google and Apple , among others, are already working on and testing self-driving cars. The technology isn't the problem. Confidence in it will be.

Self-Parking Tech vs Drivers, Who Wins?.........www.redlineautosales.ca/self-parking-tech-vs--drivers--who-wins-.htm

Canadian demand for new credit strongest in the auto sector

New data from Equifax Canada's Q2 National Consumer Credit Trends Report showed that demand for new credit is strongest in the auto sector, and is growing everywhere except Quebec.
The report also found that Canadians are still adding on debt, but at a slower rate seen in past quarters.

According to the report, total consumer debt is now at $1.568 trillion, driven primarily by the installment loan and auto loan sectors. In fact, debt in the auto loan sector increased by 3.9 percent year-over-year in Q2.
The average consumer debt is $21,164, which increased by 2.0 percent versus 2.7 percent in the previous quarter, the report stated.
"The overall trend we've seen with debt levels going up and delinquency rates coming down is still the case, but some of the sub-segments within the Canadian population are changing their behavior," explained Regina Malina, senior director of decision insights at Equifax Canada. "We're starting to see the impact of low oil prices in the West as these prices are forcing a new reality on Alberta and Saskatchewan in particular. In these two provinces the debt levels are stable, but the delinquency rate has started to increase."
As oil prices continue to slide, Equifax Canada reported Canada is slipping into a "mild recession," though the company also reported appetite for new credit is still on the rise, with the strongest activity observed in the auto, bank and national credit card sectors.
As far as delinquencies go, in mid-2015, it decreased to 1.09 percent after rising in Q1. And Equifax Canada reported auto loan delinquency rates continued to increase when compared to the previous quarter.
When compared to the same quarter last year, the national 90+ day delinquency rate decreased, as well, driving by improving rates in Ontario.
On the other hand, delinquency rates in Quebec and the Eastern region are on the rise.
And in the Western provinces, after delinquency declined over the past several year, the areas saw rates rise this past quarter.
This movement was driven, of course, by significant delinquency increases within the oil-heavy regions of Alberta and Saskatchewan.
A recent study from TransUnion asserted consumers and lenders should expect "sharp increases" in credit and loan product delinquencies in the near future, especially in the oil-heavy regions of Alberta and Saskatchewan.
"Based on an historical analysis of the last oil crash and recent payment behavior trends, we expect materially higher delinquency rates in Alberta and Saskatchewan in the second half of 2015," said Jason Wang, co-author of the study and TransUnion's director of research and industry analysis in Canada.
Taking a look at demographics, the delinquency rate for Canadians over 65 rose for the first time since 2010 by a rate of 2.4 percent in Q2, according to the Equifax Canada report.
"Delinquency rates for all other age groups are decreasing by different degrees, but for the first time in several years, we've seen this change in behavior from seniors," said Malina. "In the light of the fact that debt carried by seniors has been increasing faster than for other age groups for a while, we will monitor this trend closely in the coming quarters."
As for bankruptcies go, rates have consistently declined since 2009.
Equifax Canada reported Ontario continues to lead the pack in terms of the decline in bankruptcies.
The number of bankruptcies has decreased since 2009.
Ontario continues to lead in terms of the rate of decrease of bankruptcies.
That said, the report stated that average bankruptcy balances increased in Q2 year-over-year, driven primarily by the younger segments, as well as in the Western and Eastern regions.

By Sarah Rubenoff
Auto Remarketing Canada Editor

Canadian Demand for New Credit Strongest in the Auto Sector........................ www.redlineautosales.ca/canadian-demand-for-new-credit-strongest-in-the-auto-sector.htm