A new study by J.D. Power and Associates measured why consumers may consider one model, but ultimately buy another. The results will not be seen as good news by Detroit automakers. Consumers still perceive a gap between domestic and import vehicles in terms of quality, reliability and resale value. Other buyers see price as the most important factor. While U.S. automakers are closing the quality gap, this news has yet to filter down to buyers.

The most "startling revelation" of the new 4-year UAW/GM contract comes from a comprehensive list of product commitments from GM that assures the longevity of some Michigan plants that otherwise might have been shut down. The 2-tier wage system and creation of a retiree health fund trust make unprecedented inroads between union and automakers unequaled in the automotive industry.

While auto loan delinquencies and repossessions are up in the current market, leaders and consumers are not facing the same crisis as the housing industries. Some lenders, however, are tightening credit standards. As a result of changes in the bankruptcy laws, it is more difficult for consumers to walk away from credit card debt; this makes it more difficult for them to make their car payments.

The US Department of Health and Human Services apologized for issuing an earlier department newsletter advising 67,000 employees to purchase Japanese or South Korean cars to cut back on fuel costs. The fifteen Michigan House members sent a letter to HHS Secretary Mike Leavitt blasting the newsletter. The move shows that the Detroit Three still have some clout in Washington, despite recent political defeats.

Camera-based safety systems are designed to reduce annual losses of $11 billion from rear-end crashes. Automakers and aftermarket manufacturers are now expanding camera systems to give 360-degree view, improved night vision, provide parking assistance, alert sleepy drivers, and help catch car thieves. The market will exceed $100M by 2012.

It has been two years since thousands of vehicles were water damaged by Gulf hurricanes. Consumers, however, are still finding them on the open market. Legislation to help curb the problem is barely moving through Congress.

Auto buyers have a new tool to use when searching for the safest cars and trucks available on U.S. highways. A number of web sites are featuring crash test videos. Consumer Reports is offering a library of videos back to the late 1990s supplied by the Insurance Institute for Highway Safety. Automakers support these efforts, but urge caution.

The battle for the midsize sedan market is heating up. Honda will be introducing a larger, sleeker Accord soon. GM and Ford have new, competitive entries in the segment which has been dominated by Japanese automakers for years. All of this activity is occurring in a market segment that is shrinking. The midsize sedan segment peaked in 2000 and has been declining ever since with customers moving to new crossover vehicles.

Chrysler Financial is streamlining the turn-in process, allowing for on-the-spot final bills. Fewer customer complaints regarding surprise charges is one expected result. The company has also teamed with ChannelNet to offer personalized Web services to lease customers.

Cheating on paper hours-of-service logs is widespread. Over-worked commercial truck drivers are tired and are responsible for hundreds of deaths and thousands of injuries annually. The FMCSA is planning to require electronic log systems for only the worst offenders while critics want the rule universally applied.