SUV Tax Loophole Gets Smaller

This week, automakers brace for higher steel costs, small business owners prepare to say goodbye to the HUMMER loophole, Nissan sets interim price hikes, Chrysler recalls around a million minivans and luxury car makers get ready for a sales boom…1 Million Dodge, Chrysler minivans Recalled.

According to the National Highway Traffic Safety Administration (NHTSA), almost 1 million Dodge and Chrysler minivans are being recalled to repair an electrical irregularity that causes the driver side airbag to fail. The recall includes the Dodge Grand Caravan, Caravan, Plymouth Voyager, Grand Voyager and Chrysler Town & Country, model years 1998 – 2000.

SUV Loophole to End.

Small business owners looking to benefit from the existing tax credit on large utility vehicles will be sorry to learn that the “Hummer Loophole” has been sewn up, thanks to a provision in a larger bill on corporate taxes approved by the House and the Senate this month. The bill, which awaits President Bush’s signature, will effectively end the tax credit for vehicles over 6,000 lbs. The tax credit was applicable to 38 existing SUVs and utility vehicles.

Page 2: Luxury Boom

Luxury Segment Set For Sales Boom?

According to recent Autobytel Consumer Choice purchase request data, online interest in luxury vehicles rose significantly in the third quarter and is poised for a strong fourth quarter. Entry-level luxury models such as the Lexus RX 330 and BMW 3 series are especially popular. Overall, luxury vehicle purchase requests were up 30 percent versus the second quarter. Requests for the Lexus RX 330 were up 25 percent over the same time period, a sign of confidence and, perhaps, of new buyers entering the luxury market. Nissan Increases Prices on Select Models

Nissan North America, Inc., has set an interim price increase of $100 on the 2005 Sentra and 2005 350Z Roadster (except the Roadster Grand Touring, which goes on sale in January), and $200 on the 2004 Xterra. A new 2005 Xterra is scheduled to go on sale in early 2005.

NHTSA Wants Tire Pressure Monitoring Standard

The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today proposed a new safety standard to warn the driver when a tire is significantly under-inflated. The proposal requires manufacturers to install a four-tire Tire Pressure Monitoring System (TPMS) that is capable of detecting when a tire is more than 25 percent under-inflated and warning the driver.

Page 3: Hybrids

Hybrids, Hybrids Everywhere

According to a new report by the consulting firm Booz Allen Hamilton, car buyers are into the hybrid thing – and it looks to last. The report finds that by 2010, hybrids may well make up 20 percent of the new car market – and 80 percent by 2015. Steel Increase May Boost Car Cost<

Rising steel costs could add a $100 or more onto the cost of building a car, according to an article published in the Automotive News. The typical cost of steel in a $26,000 car is about $750 – a cost that may go up as high as $200 per car, if automakers agree to increases requested by suppliers.