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Major car manufacturers have made claims that the hybrids are the vehicles of the future. This is due to the demand that people are now making as a way of negotiating the overpriced gas prices that have risen steadily over the past few years. The hybrid vehicle is certainly the solution that many people have been searching for.

Gas prices have increased so dramatically over the recent years that many people are using public vehicles as way of going about their everyday lives instead of using their cars. So are hybrid electric vehicles the answer?

It appears so as since the launch of hybrid vehicles and promise of cost savings the sales for many hybrid cars were much higher than expected. It is fully understandable that many people have keenly awaited the launch of the hybrid automobiles on the car market.

It's time to discuss the technical aspects of the hybrid. Such vehicles are generally referred by that name if they run on joint power. Which is currently petrol and electricity which is stored in large capacity batteries.

The reason why hybrid cars save fuel is because the car is not permanently running on petrol. There are time when the car is powered by the electricity from the batteries. This is the reason why the consumption of gasoline is dramatically lowered thus reducing the petrol bills of the owner.

Over the years the technology that is involved in making a hybrid cars is constant evolving which is helping the manufactures make significant strides in modifying and making continuous improvements.

Hybrid vehicles use a rechargeable energy storage system that is also referred to as RESS which comes with a propeller that supplies the fueled propulsion power that drives the car. Other countries refer to the hybrid automobile as a petroleum electric hybrid which also goes by the name of hybrid electric vehicle that use petrol to help provide the cars internal combustion engines, technical term being ICEs and the electric batters provide the requirement to power the electrical motors.

The major car companies from all over the world are currently in tight race to produce hybrid cars on a large scale. They seem to believe that hybrid electric vehicles the answer to many commuters large gasoline bills. The competition is getting so stiff that these types of cars are becoming more intensely marketed with the cars becoming more stylish.

Opportunities do really come in time of crises so giant car makers are rushing to each offer the consumers their own hybrid car versions and models and at the same time, underpin rising demand for such cars, equating logically to higher sales and company revenues.

Japan's Honda and Toyota corps are definitely market leaders in the race to control the hybrid car market not only in Japan but in US and many other countries from around the world. The price increase of petrol is playing a key part but also people are becoming more aware of the environment issues that arise from driving a regular vehicle on a daily basis.

Other car manufacturers follow suit, and it is expected that in the next couple of years, more and more hybrid vehicles are to be unveiled in the market by the two car makers and their aggressive competitors.

No wonder, because hybrid vehicles are tagged not only as oil and cost-saving cars but also as environment-friendly vehicles. Yes, you read it right.

Because hybrid vehicles have reduced gasoline consumption, it follows that smoke and greenhouse gas emissions are also significantly reduced.

Buying a hybrid vehicle is like killing two birds with one stone. Now only will you be saving on oil and gasoline costs but you will also be playing your part in saving the environment by cutting down on gas emissions that are having a very negative affect on the earths atmosphere.

Willy Mason from http://electricalandhybridcars.net has put together a great resources that helps to explain all the advantages and disadvantages of hybrid cars. You can get this now for free by visiting http://www.electricandhybridcars.net/

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Weve already stated our belief that that 2007 will see Americans buying several hundred thousand less cars than they will purchase in 2006. We are looking for 16.8 million vehicle sales this year. Lets get into the numbers, and see what the implications are. When you, or I buy a car for our personal use, we pay on average about $25,000 per car. The car rental companies in the United States purchase more cars than any other group. They buy American cars, and pay an average of $15,000 per car. We dont see any big profits from this market segment.

Lets look at the dealerships, and sort out how the Japanese do against the Americans. A Chrysler dealer last year on average sold about 225 cars. If you were a Ford dealer, you averaged almost 700 cars per dealer. GMs Chevrolet dealerships came in under 650 cars per dealer. Would you be surprised to learn that Toyota sold more than 1600 cars per dealership last year?

Now you know why American car dealers are complaining and going out of business. In the last year GM lost 200 plus dealers while Ford lost 40, and Chrysler lost more than 110. This is happening on our home turf, folks. This is not the Japanese and the Americans slugging it out on European soil for control of European markets. This is the American consumer choosing to buy Japanese over American made products on American soil. People are voting with their feet.

Heres the next big question. If American car dealers are closing their doors at this rate, what kind of shape can the rest of them be in? Can the owners be putting big bucks into their dealerships while their friends dealerships are folding up? We think not. Will the friendly banker be willing to finance their car inventories when the bank sees other domestic dealers closing their doors? We dont see it. This means that American car dealers can only finance through the car manufacturers financing arm, and thats not good when the dealer has only one choice. We estimate that half of Fords dealers are not making a penny. We think for General Motors, it could be as high as 25% are unprofitable. Whats the customer experience going to be like in a dealer thats losing money on every car he sells? Is anybody listening in Detroit?

Every time GM loses a point of market share, they have to implement plans to dismiss 20,000 people from their jobs. We see the necessity for GM to cut another 60,000 jobs that they havent announced to establish break-even 12 to 18 months from today. With all the talk about GM in the news in the last 60 days, has anybody at GM or Ford uttered a word about their real problem, QUALITY? The American consumer does not want to buy American made cars in any quantity that would allow Detroit to make money.

We believe that GM will be unprofitable until 2008 at a minimum, and 08 can only be profitable if they maintain market share, and we see continued declining market share. The Chairman has verbalized nothing that deals with the issue of quality, and upgrading the consumers consciousness to consider GM cars when it comes to quality. Even Mercedes marvels at Japans ability to produce the quality they do for the dollar it costs. Mercedes doesnt understand how Japan does it at their price points.

We took a close look at Ford (where Quality is number 1, and Ford has a better idea), and found their restructuring plan isnt substantial enough to get the job done. They call it the Way Forward Plan. We call it the Lost in the Wind plan. They are taking total charges of $3.4 billion in 06. They expect to be profitable in 08, why, we ask? Whats going to change between now and 08? They believe they can save almost $6 billion in costs. We dont see it, and if they were able to do it, dont you think Japan would jump on the bandwagon and do whatever they have to do to drag their already low costs lower.

Did you know that when GM, or Ford produce an interesting car, Japan buys the car immediately, rips it apart, part by part in Japan, and than takes any interesting technology and applies it to their cars almost immediately. Japan can put out a car in one-third the time it takes GM, or Ford to design a car by committee. South Korea can go from design to showroom in even a shorter time span.

Fords restructuring efforts in our opinion are clearly overstating the bottom-line results. We see a headwind coming, where Ford thinks its got a tailwind at its back. Its going to get tougher for Ford, and this is being overlooked because GM and its troubles are getting the headlines. With the employees departing from both companies how do you think the guy down on the assembly line is feeling? Do you think hes a loyal, lets get it done type of individual? Do you think hes wondering if hes going to be there 2 or 3 years down the road? Will his pension benefits be safe? Will he ever get a pension? Will he even have a future at either of these two companies that were once the unquestioned leaders of American managerial know how?

Henry Ford wrote the book on manufacturing, and GMs Alfred P. Sloan wrote the book on building a company that is still studied at Harvard Business School, and MIT today. Somehow in the last 3 decades, the bean counters in Detroit forgot how to make cars. They literally forgot what business they were in. They instead thought only about the money. Labor became a cog in the wheel, not an integral meaningful partner in the process. To turn this American industry around will involve a different level of intelligence than the intelligence (used advisedly) that got them into trouble in the first place. Einstein was right.

Goodbye and good luck

Richard C. Stoyeck
http://www.stocksatbottom.com

Richard Stoyecks background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at Pace University, NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.com

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Cheap European or American Luxury Cars From Japanese Car Auctions

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Japanese auto makers such as Toyota, Nissan, Honda and Subaru are known world wide for producing high quality, efficient and durable cars. Car auctions in Japan give you the chance to buy and export a used Japanese brand car to your country, usually with big savings on similar priced cars you can find in your local dealership.

But Japanese drivers also love foreign brands such as Audi, Bentley, Land Rover, BMW, Mercedez Benz, Porsche, Volvo and Volkswagon. It's possible to find these luxury cars very cheaply at Japanese car auctions and you can certainly make a very good saving on buying and exporting from Japan.

Japanese drivers take care of their vehicles and because of rigorous safety inspections, taxes and other fees it is more cost effective for a Japanese driver to change their car to a newer model regularly. This means a large pool of well maintained used cars for sale and export.

The auction and export process

Your first step to finding a cheap luxury car is to find a reputable dealer. Second hand car dealers don't have the most solid of reputations to begin with and there are cases of foreign buyers being ripped off by dodgey dealers, but these are definately in the minority.

First, check out the dealers website and see if they have full contact and bank information and are members of the JUMVEA which is the Japanese government sanctioned trade body for foreign car exporters. Membership means that members have to abide by a code of best practice.

Also, make sure that the company is registered with the local government - they should display a government trade license number.

Second, test communication with the dealer by either sending an email or calling (many dealers have Skype or similar so you can do it for free). In your initial emails look out for quality of English, timely response and level of details in the answer. Unanswered or evasive answers and poor quality English may lead to misunderstandings later on.

Once you have contacted several dealers and filtered some out you can start to browse seriously for a car. You can use this free car search tool (http://www.used-car-japan.com/japanese-used-car-search.php) to contact several dealers at once to save you the hassle of filling out loads of forms on different websites.

Auction and exporting process

Generally you can either buy directly from the dealers stock of cars (which they make have from spotting a bargin at auction and bought for later resale) or request they look for something for you at auctions.

You can have a very specific or very general request and the dealer will try to find something and send you deatils of the cars. All the major car auctions are online and dealers have access to national daily auctions giving a choice of upto 40,000 cars a day!

Once you get the car details you can decide to bid or not, send a maximum price you want to bid and sit back and wait for the result!

The dealer will try to get the lowest price for you so you don't pay more than you have to.

Once you have won a car then you also have to consider paying for paperwork fees, transportation, shipping, insurance and customs import taxes when the car arrives in your country.

Local auto regulation compliance

You also have to make sure the car complies with all local auto regulations. Some dealers may help you with this especially if they are in your own country, but others will probably not give much help. Therefore before you buy make sure you know what you will have to do to make the car legal in your own country.

If you're buying a European brand then these are less likely to be an issue as cars made for Europe and re-imported from Japan are the same models so it's likely that the manufacturer already has approval for that car in your country.

Summary

Japanese used car auctions are a great source of both Japanese and European/America brand quality used cars. You can get a great deal for a little research and shopping around, and although it's not the quickest or easiest way to buy a new car, it's certainly a lot of fun and can be much cheaper than buying in your own country.

Keith Taynton has been involved in the Japanese used car industry and runs a website with a complete guide to buying and exporting used cars from Japan.

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