Toyota is once again announcing a major recall, this time involving its top of the line Avalon. Some 373,000 Avalons, model years 2000 to 2004, are being recalled to correct a defect in the steering wheel lock which could cause the steering wheel to jam under certain conditions leading to a loss of vehicle control. Toyota will replace the steering column bracket on involved vehicles to correct the defect. Three accidents have been reported involving this defect but there were no injuries.

In a separate action, Toyota is also recalling 39,000 Lexus LX470 SUVs built between 2003 and 2007 due to a potential defect in the steering shaft. According to a Toyota press release, a snap ring on the steering shaft could become dislodged on severe suspension impacts such as pot holes. If this happens and the steering wheel is then turned to full lock, over time the shaft could become disengaged resulting in a loss of steering control. Correcting the defect involves replacing the snap ring and installing an additional part to prevent steering shaft disengagement. No accidents have been reported over this issue.

--M.D.

(Car in photograph is not subject to this recall.)

The full reveal of the 2011 Ford Explorer was yesterday and it generated about as much buzz in the automotive blogosphere as anything is recent memory.

In a complete break from the past, the 2011 version will ride on a unibody platform which it shares with Ford’s Flex, Edge and Taurus. The new Explorer will come with improved safety systems including pretensioners for front seat belts and industry-first inflatable rear seat belts. Its four-wheel drive system includes a new “terrain management system” and roll stability control. Properly equipped, a V-6 Explorer can tow up to 5000 pounds.

Being a Ford, the new Explorer will offer leading edge in-cabin electronic features such as MyFord Touch™ driver connect technology and SYNC® integrated communications and entertainment system.

Two engines will be offered, a 3.5-liter 290hp V-6 or Ford’s new 2.0-liter 237hp Ecoboost I-4. The I-4 is available with front-wheel drive only, the V-6 can be had with front- or four-wheel drive. A six-speed transmission is standard across the board. Pricing hasn’t been announced but the I-4 Ecoboost will be an extra-cost option over the V-6. With either engine, fuel economy should be considerably better than the current model.

So is the Explorer still an SUV or is it a cross-over? There are no hard and fast definitions for either of these categories and there is a fine and blurry line between them. Some people would insist that SUVs are truck-based and cross overs are car-based but this isn’t chiseled in stone.

The new Explorer is car-based so its off-road capabilities will be somewhat limited and some have criticized it for that. At the risk of overstating the obvious, Explorer owners rarely venture any further off the road than their back yards and if you are a serious off-roader you would be considering a number of other vehicles over the Explorer.

Ford (arguably) invented the SUV when it introduced the first Explorer some 20 years ago. It has now reinvented the Explorer, if not the segment, for the new realities of the future. Fuel economy and creature comforts and features are now far more important to buyers than before and the new Explorer should meet those new expectations handily.

Production begins late this year and the new Explorer should begin appearing in showrooms early next year.

--M.D.

Back in February I reported that Volkswagen of America President Stefan Jacoby downplayed the importance of electric and hybrid drive trains in Volkswagen’s future product development. Well, Jacoby is now gone and VW chief Martin Winterkorn says VW will, indeed, become a player in both electric and hybrid platforms.

A Toureg hybrid is already in production and a Jetta hybrid will hit the streets in 2012. Hybrid versions of the Passat and Golf are also planned. Electric versions of the Golf and VW’s new Up! are being planned, as well, and at least one of them will sold in the U.S.

Volkswagen continues to insist that it wants to become the world’s largest car maker by 2018. Europe is already nailed down and the company is very strong in China and, through its partnership with Suzuki, India, too. The U.S. remains a tough nut for VW to crack, though. At one time the company practically owned the import segment in this country, but the Japanese invasion devastated its market share and today it ranks in the same league as Mazda or BMW. Respectable enough but far below its peak some forty years ago.

A newly redesigned Jetta may help, as might the new mid-size car that will come out of VW’s brand new plant in Chattanooga, TN. However, new challenges will keep coming. Premium car makers such as BMW and Mercedes are moving down market with smaller offerings while the Koreans continue to boost their share with higher quality and better looking models.

--M.D.

When gasoline prices started their upward march in 2008 and with the subsequent recession, car buyers shifted their focus from large vehicles and trucks to smaller cars, beginning a trend that has continued into 2010.

Full-size pickups such as the Ford F-150 and Chevy Silverado still top the sales charts but, overall, when large SUVs, vans and trucks are added together, their market share has dropped almost 10 full points over the past three years. Smaller, more economical SUVs and crossovers have gained considerably during that same time frame.

Buyers are also demonstrating more pedestrian tastes as they favor more common models over fancier ones. Mercedes buyers, for example, tend to be looking at that car maker’s C class line more so than the E or S models. Similarly, more ordinary sporty cars such as Ford’s Mustang and Chevy’s Camaro have seen market share rise as upper end models have lost share.

Buyers don’t seem willing to give up features as they move downward in the product lines. While they may be buying smaller, less extravagant models, they are loading them up with high-end features, some of which weren’t available on any cars just a few years ago. As a result, transaction prices are actually rising.

Will the trend last? Buyers seem to be exhibiting a “won’t be fooled again” mentality here. They know that while gasoline prices have come down from the peaks of 2008, the future holds no guarantee and we could, and probably will, see such prices again, sooner rather than later.

--M.D.

(source: Automotive News)

After a decade-long production run, the last Chrysler PT Cruiser rolls of the line in Mexico today. One of the most recognizable automobiles on the road, the PT Cruiser has sold nearly 1.5 million copies worldwide since its introduction at the Detroit car show in 1999.

Ten years ago retro-styled vehicles were a minor fad as cars such as the New Beetle, Ford’s resurrected Thunderbird and the PT Cruiser hit the streets. Chrysler’s offering was by far the most popular of the lot, owing to its low price and useful, roomy interior.

The PT Cruiser was preceded by the Plymouth Pronto concept car, a design exercise intended to maximize interior space in a tidy, compact footprint. Chrysler took the interior packaging of the Pronto, added unique retro styling and began selling it as a Chrysler in the fall of 1999. Interestingly, the PT Cruiser is officially designated as a truck, not a car.

The PT Cruiser spawned a sizeable cottage industry of customizers and Chrysler itself offered a two-door convertible and a wide variety of custom packages for the car -- er, truck.

The Toluca, Mexico, factory that built the PT Cruiser will now be converted for production of the Fiat 500 which will be introduced to the North American market later this year.

--M.D.

Auto sales figures for the month of June are in and, while most manufacturers are still posting gains and while there are some surprising bright spots, the pace appears to be slowing and some analysts believe the market may be hitting a new, lower set point.

The biggest surprise was Chrysler’s 36% jump over June of 2009. Large increases in fleet sales may account for the huge boost, though a break out of those figures is not currently available. Also, last year Chrysler was still reeling from some of its worst sales figures in fifty years. Whatever the reason, up is always better than down and the company outperformed the market by a wide margin. Ford showed the second largest increase with a 14% gain and GM came in third, up 12%.

Among the Japanese makes, Mazda did best with a 33% increase followed by Subaru at 16% and Nissan at 11%. Toyota and Honda both are off the industry pace, showing increases of 6.8% and 6.2%, respectively, and both saw market share decline once again in June.

Korean makes Hyundai and Kia are reported together and posted a strong 28% gain and grew market share by almost a full percentage point, as well.

Overall, U.S. sales were up 14.4% over June of 2009, a respectable figure but below the faster pace the market had been showing earlier this year. Two possible explanations are offered: either the recovery is slackening (or worse, headed for a double-dip) or auto sales are returning to a lower “normal” annual rate far below the 16-17 million unit pace it was hitting just a few years ago.

--M.D.