Toyota Hit With $1.2B Recall Fine; How Will It Affect Shoppers, Owners?

For a whopping $1.2 billion, Toyota Motor Co. agreed earlier this week to settle a federal criminal probe concerning its statements during theunintended-acceleration-related recalls of Toyota and Lexus vehiclesfour years ago.

The penalty is the largest one ever imposed on an automaker. But as a number of financial outlets have reported, it's unlikely to affect Toyota's operations—including vehicles and pricing—in any way.

With Toyota's balance sheet showing nearly $60 billion in reserves—far more than what Ford, GM, or VW have on hand—the automaker isn't at all cash-starved.

U.S. Attorney General Eric Holder emphasized the punitive nature of the settlement. Holder accused Toyota of a cover-up, and said that it had treated a public safety issue "as if it were a public relations problem.”

“Specifically, we have taken a number of steps that have enabled us to enhance quality control, respond more quickly to customer concerns, strengthen regional autonomy and speed decision-making,” assured chief legal officer Christopher Reynolds earlier this week, in a release.

Toyota has already paid out millions in civil fines and settlements to owners of affected vehicles, which have never been determined to have any defects in the electronic “drive-by-wire” throttle, as accused at an earlier point, but rather a mechanical issue with accelerator pedals that could be trapped by floor mats.

The recall estimate already cost the automaker in the vicinity of $2 billion—and that was before any such settlements.

Part of that went to a different $1.2 billion class-action settlement in 2012 that had reimbursed owners, in part, for a supposed loss in resale value—now termed in the settlement as a “period of diminished value of the Subject Vehicles.” Since then, various valuation companies have found no long-term loss in the value of affected Lexus and Toyota vehicles, however.

Meanwhile, the Lexus ES 350, one of the highest-profile cases affected by the issue and the ensuing public-relations nightmare, continues to sell well; it and the Lexus brand have been named best resale values by Kelley Blue Bookfor several years in a row.

2014 Chevrolet Volt - Review

The 2014 Chevrolet Volt range-extended electric car may be one of the most regional cars sold in the U.S. Volts have become almost common in California and coastal states, just as the Toyota Prius hybrid did a decade ago. But in the Heartland, where more pickup trucks are sold than compact cars, Volts remain rare. They may be stacked two or three at a time at charging ports in Silicon Valley parking lots, but the simple appearance of a Volt is still rare enough in some states to generate questions from bystanders.

That can mean GM's first plug-in car since its EV1 a decade ago isn't widely understood, even after four years on the market. The idea of a vehicle that drivers can plug in and driver electrically for 30 to 40 miles, with the security of a gasoline range extender as a backup for longer distances, is different to the idea of a battery-electric car--closer to that of a hybrid. As always, more education is needed. This year, Volt sales have stagnated in the face of increased competition for plug-in buyers, despite a substantial price cut for 2014. It's looking like that the Volt will be updated for the 2016 model year, with an unveiling come to at next January's Detroit Auto Show.

Aside from a leather-wrapped steering wheel and two new paint colors, the Chevy Volt continues in 2014 largely unchanged from the previous year. The biggest update has been a whopping $5,000 price cut, from $39,995 to $34,995 (before incentives, but including the mandatory delivery fee). The reduction simply keeps the car within range of new lower prices now offered by many other plug-in vehicles.

GM's most technologically advanced car can be plugged into the electric grid to recharge its 16-kilowatt-hour lithium-ion battery pack, which takes about 8 or 9 hours at 110 Volts and about half that using a 240-Volt, Level 2 charging station. The battery provides electricity to run the motor that actually turns the front wheels. When it's depleted (after an EPA-rated electric range of 38 miles), a 1.4-liter four-cylinder gasoline engine switches on to generate more electricity to keep it going for another 250-plus miles.

Chevy marketers tend to recite over and over that more than 75 percent of U.S. vehicles cover less than 40 miles per day. That means that owners who drive less than that each day and recharge their Volts at night may not burn a drop of gasoline for months on end. Indeed, GM says that 62 percent of the hundreds of millions of miles covered by Volts since December 2010 were powered by grid electricity--and that the average Volt owner goes 900 miles and about a month between visits to the gas station.

The Volt's powertrain setup is known either as a range-extended electric or a "series hybrid," though in the Volt's case there's an asterisk: Under some high-speed conditions, the engine can be clutched directly into the transmission to provide torque to assist the electric motor. Drivers will never know that's happening, however; because the main drive is electric, there are no gear changes, just smooth, quiet torque. And unlike pure battery-electric cars like the Nissan Leaf or even the Tesla Model S, the Volt can be driven all the way across the country if you want, just by filling up the gas tank for 10 minutes every 300 or so miles.

The Volt's five-door hatchback styling is an acquired taste; it shares some understructure with the Cruze compact sedan, but its roof is 4 inches lower, to reduce aerodynamic drag. As a result, it's slab-sided, with small side windows and a Prius-like tailgate whose main rear window is almost horizontal. Inside, it seats four in deeply bucketed seats that are low to the floor, putting the bottom of the side windows almost at neck height for some drivers.

The production car is nothing like the concept design shown, to a rapturous reception, at the 2007 Detroit Auto Show. It was longer, leaner, more Camaro-like--and, rumor had it, more aerodynamic running in reverse than forward. The resulting car is smaller, chunkier, and far, far more wind-resistant--all in the service of saving precious electrons by minimizing energy use, especially at speed. The blanked-off front "grille" directs air turbulence around the car, and when the engine switches on, its exhaust exits under the car--underscoring the car's primary electric drive, there's no exhaust-pipe outlet at the rear.

The interior is a more futuristic version of the classic Chevy twin-cockpit design, with glossy white plastic offered as one of the dash surface treatments, just like an iPod of old. The graphics on the displays are good, and users can configure the operating information the car delivers both to the center display and the display that replaces old-style gauges in a cluster behind the steering wheel.

The most important information is battery state of charge, the remaining range on electricity and on gasoline, and various other running statistics. The "effective" combined gas mileage maxes out at 250 mpg, though, much to the dismay of Volt drivers who compete to see who can use the least gasoline to cover the most miles.

On the road, you won't question whether the Volt is a real car. It accelerates briskly (and quietly), rides and drives well, copes with corners adeptly due to the low position of the heavy battery pack, and offers both standard features and accessories that you'd expect in any car. And this year, it's a slightly better value than it was at a price $5,000 higher.

Volts sold in California and New York are equipped with a special emissions package that allows them to qualify for stickers in those states that permit drivers to use the High-Occupancy Vehicle (HOV) or carpool lane with just a single occupant. During epic California rush hours, that's a very valuable privilege.

The 2014 Chevy Volt is priced at $34,995, and qualifies for a $7,500 Federal tax credit and a variety of state, local, and corporate incentives as well--including state purchase rebates of $2,500 in California or $5,000 in Georgia. With incentives and the price reduction, a Volt is now squarely comparable to the Toyota Prius hybrid, its new plug-in variant, or any of the other plug-in hybrids from Ford and Honda as well.

Every buyer will need to calculate payback for the specific circumstances, including lower cost of electricity. That averages 12 cents per kWh nationwide, but can be as low as 3 cents or as high as 25 cents depending on location. Running the Volt on grid power generally costs one-fifth to one-third as much per mile as running a conventional car on gasoline.

Volt shoppers are likely to consider the Prius and its plug-in model as well, and indeed Chevy notes that the Prius is the most commonly traded-in car for a new Volt. There is also the Nissan Leaf, which got a price cut last year as manufacturing shifted to the U.S, aand Ford's pair of C-Max and Fusion Energi plug-in hybrids.

But meet a group of Volt owners and they may just succeed in selling you one. The Chevy Volt has the highest customer satisfaction rate of any car GM has ever built, and a majority of Volt buyers are new to the Chevrolet brand--a huge win for GM. In the end, the Volt is perhaps the nicest and most sophisticated of the half-dozen plug-in cars that also have engines to give them unlimited range. And it's a much better value this year than it was last year. Score one for General Motors.

2014 Lexus CT 200h - Review

Mildly updated for its fourth model year, the 2014 Lexus CT 200h continues in its role as the smallest, least expensive Lexus--and the luxury brand's only compact model, not to mention its only hatchback. It's unique in the market, the only luxury compact hybrid hatchback on sale in the U.S. this year. While its sales aren't huge compared to, say, the RX crossover that dominates its luxury mid-size crossover segment--it's been a low-key success for Lexus.

It offers new, younger buyers a likeable, fun-to-drive character, backstopped by a long list of standard and available features. The Lexus CT is also likely to appeal to buyers who've been through a Prius or two and want something with a bit more luxe that still gets good gas mileage, as well as more traditional luxury buyers looking to downsize.

With a new grille and front fascia design, the CT now has styling more closely aligned with the newer models in the Lexus lineup. This year, its frontal styling starts with the "spindle" grille shape, and includes redesigned front and rear bumper fascias and a new design for the 17-inch alloy wheels. There are a host of little detail changes, including a roof-mounted "sharkfin" to replace the old-style aerial, plus LED bulbs for the license lamps. Otherwise, the shape of the compact hatchback remains the same: a low, somewhat aggressive and slab-sided body with a long, flat roof ending in a spoiler, standard alloy wheels, and the right amount of chrome to make it sparkle and set it apart from drab economy cars of the same size and body style.

Inside, the CT's interior is roomy in front and acceptable in the rear. It's a lower car than a Prius--and almost 6 inches shorter--and the driver sits low with legs more extended than in other compacts, but headroom in generous in that position. Luxury is conveyed by a wide center console dropping down from a broad, horizontal instrument panel. The console contains enough controls, switches, knobs, and displays to indicate that this is a luxury car with features galore. New inside this year is a redesigned steering wheel, updated display screens in the dashboard, and more minor details like a metal scuff plate to replace the previous plastic one. New interior colors complete the upgrades for 2014.

The rear seats fold flat, which may be a configuration used often by childless couples who decide this is a nicer alternative than the distinctive, numb driving of a Prius. The one flaw is the high load floor, due to the battery located underneath, with enough height only for grocery bags before impeding the view rearward through the slit-like tailgate window.

The powertrain of the CT remains unchanged even as the styling has been refreshed: It pairs a 98-horsepower, 1.8-liter four-cylinder engine with Toyota's Hybrid Synergy Drive system. This is, essentially, a Prius powertrain in a smaller but far more refined vehicle. A nickel-metal-hydride battery pack under the rear load deck powers, and is recharged by, a pair of motor-generators that power the car alone at low speeds, add torque to supplement the engine output, and act as generators to recharge the battery on engine overrun and during regenerative braking.

Being a Lexus, the CT hybrid is tuned quite differently than the Prius whose powertrain it shares. It's meant to be more sporty, and the Sport mode not only remaps the electronic responses to acceleration and braking, it also cleverly converts the power gauge into a tachometer with red lighting around its edges. The car responds well and is surprisingly agile for a Lexus, but its numb electric power steering--a chronic Toyota weak spot--is simply uncompetitive with the best from Audi or Volvo.

The hybrid system really delivers in gas mileage, though. No other even somewhat-hot hatch gets ratings anywhere near its EPA combined rating of 42 mpg, and we saw a real-world 40 mpg in mixed use that included some quite spirited driving. Ignore the CT's Eco gauge, get used to its loud engine roar when it's revved, and your driving will be surprisingly fun--and the gas mileage will still be at the top of the charts. Other cars are creeping up slowly--we suspect the new 2014 Mazda 3 may approach that number, without resorting to a hybrid drivetrain--but for now, the CT remains the king of the compact luxury hill.

The 2014 Lexus CT has a lengthy list of features, both standard and optional, that starts with keyless ignition, Bluetooth hands-free pairing for voice and audio streaming, iPod control, SiriusXM satellite radio, and the Lexus Safety Connect system. The options list includes--among many other choices--rain-sensing windshield wipers, LED headlamps (joined this year by LED fog lamps), and the Lexus Enform navigation and real-time information system. Finally, dealers offer a further list of items under the Lexus F-Sport label that can both improve performance and further upgrade the car's appearance.

BMW 1-Series

The BMW 1-Series is offered as either a compact coupe or convertible. Even though it’s the most affordable way to get into a BMW in the U.S., that doesn't necessarily mean it's cheap.

Nevertheless, it offers the excellent handling that's long been BMW's trademark, and can be equipped with some of BMW's latest safety and infotainment technology. That puts it in good standing against the likes of the Audi A3 and the more affordable end of the Mercedes-Benz C Class, but it also overlaps BMW's own 3-Series range, and faces a stiff challenge from the new $30,000 Mercedes-Benz CLA later this year.

The first 1-Series arrived on the U.S. scene in 2008, and continues largely unchanged through 2013. A minor engine redesign in 2010 saw the older twin-turbo engine of the 135i replaced with a twin-scroll, single-turbo 3.0-liter inline six-cylinder. The base engine has remained consistent: a 3.0-liter normally-aspirated inline six-cylinder in the 128i. Both engines provide smooth, sonorous power and good low-end torque, but the turbocharged engine in the 135i is notably more powerful, at 300 horsepower and 300 pound-feet of torque to the 128i's 230 horsepower and 200 pound-feet of torque.

Like other BMWs, the 1-Series offers a wide range of options, from exterior appearance items like various wheel, paint, and interior materials to high-tech gadgetry and convenience items--though the 1-Series misses out on some of the highest tier of tech found in the 5-Series and 7-Series.

The look of the 1-Series bears hallmark modern BMW traits, with the headlights, kidney grille, and relatively long hood that identifies the brand's coupes. In convertible form, a cloth top does duty where many alternatives, including BMW's own Z4, use a hard top. Inside, the design is spare but modern, with well-executed construction and quality materials. Optional upgrades can add various levels of wood and metal trim to the dash, console and doors, while a range of upholstery colors and leather grades offer the chance to take the 1-Series further up-market.

The 128i is available with either a six-speed manual or a six-speed Steptronic automatic transmission, while the 135i replaces the automatic with an optional seven-speed DCT dual-clutch transmission. The available M Sport package gives the 1-Series a more aggressive look, but the 1-Series M Coupe, a single-model-year run limited-edition for 2011, brought even more aggressive styling and a power boost to 340 horsepower.

Convenience and technology options available in the BMW 1-Series include navigation, Harman Kardon audio, satellite radio, heated front seats, BMW Assist with Bluetooth, keyless entry, automatic high beams, and rear parking assist.

There were no significant changes for the 2012 model year, but for 2013 BMW added special 135is Coupe and Convertible models to the lineup, featuring a higher-output 320 hp engine plus various performance enhancements and added equipment like xenon headlamps and sport seats.

For 2014, there's a special Limited Edition Lifestyle version of the 1-Series coupe and convertible.

Looking to the near future of the 1-Series, it is expected to get a complete redesign next year--and perhaps a rename, as the 2-Series, to better fit with BMW's newly announced model strategy, launched with the upcoming BMW 4-Series Coupe and Convertible models. And as for the future of the 1-Series nameplate? BMW is reportedly working on a range of front-drive vehicles to adopt it.

Used BMW 1-Series Models

The BMW 1-Series, launched in 2008, is the smallest BMW on the U.S. market. Sold as a two-door coupe or a convertible with a choice of two inline six-cylinder engines, it's small, utterly composed on the road, and a superb entry-level luxury sports car. The 230-horsepower 128i has a 3.0-liter six; the 300-hp 135i uses the same engine turbocharged, but only the smaller engine comes with a six-speed manual gearbox. There's not a lot of space in the rear--though the trunk's spacious--but this a driver's car. While its interior borders on the drab, its styling and performance say BMW through and through.

2014 Honda Insight - Review

As the least expensive hybrid car on the market, the Insight remains a marginal entry for Honda. It's been on the market for five years, it's never reached the sales numbers Honda hoped for, and it's now essentially outgunned in its own category--subcompact hybrid hatchbacks--by the more fuel-efficient Toyota Prius C. And as a device for carrying people and their goods, its stablemate the Honda Fit sits right next to it at dealerships and handily outsells it, at a price that starts more than $3,000 lower.

The 2014 Insight is carried over unchanged. It was revamped for 2012 with a new battery pack, very minor styling updates, and revisions to the interior materials and instrument displays.

The Honda Insight shares the high-tail hatchback shape of the Toyota Prius, simply because it's aerodynamically most efficient. The windshield is raked at a steep angle, and the tailgate has a small second vertical window as well as the long, almost-horizontal main glass, improving visibility. Space inside is good in front, although taller drivers may find the lower cushion of the front seat too short. But the sloping roof line makes rear-seat headroom very tight indeed, despite a reshaped headliner in 2012 that added half an inch. It's strictly a two-adult seat, though three smaller kids will fit in emergencies.

Behind the wheel, drivers face a two-tier instrument display like that of the Honda Civic. Above the main cluster of gauges is a digital display with various status indicators and a large numeric speed reading. The center stack is angled toward the driver, and the climate controls are on a separate panel to the right of the driver--making them annoying to operate for front-seat passengers.

The Insight handles decently, not always the case with hybrids. It's no hot hatch, but it's unquestionably more of a driver's car than the traditional (and larger) Toyota Prius, and it has the edge on the more enjoyable Prius C as well. Its stablemate the Fit is still crisper than the Insight, but it's composed at freeway speeds and handles confidently in corners. It rides well despite its small size, and it's quiet inside--until, that is, you accelerate hard. Engine howl is remarkably noisy, though the 2012 upgrade added insulation in several areas to quiet the din. Still, drive the Insight hard and the engine will tell you just how hard it's working.

That engine is a 1.3-liter four-cylinder unit, with a 10-kilowatt (14-horsepower) motor sandwiched between the engine and a continuously variable transmission (CVT). The combined overall output is 98 hp; torque is 123 lb-ft. The motor can't move the car on its own; instead, it supplements engine output with added torque, restarts the engine after a stop, and acts as a generator to recharge the car's lithium-ion battery pack. That pack is sited under the load floor, meaning a shallow cargo bay--in contrast to the Prius C, which managed to shoehorn its battery under the rear seat next to the gas tank, providing a full-depth load bay behind the rear seat.

Acceleration away from a stop is decent, with the engine and motor together moving the car efficiently. There's also adequate passing power around town, at the cost of vastly increased noise. On the highway, there's less reserve, which is where the Insight's relatively high weight and tiny engine come into conflict. Drivers need to plan their passing carefully.

The 2014 Honda Insight is rated at 42 mpg combined, against the 50 mpg of the Prius C--and even the 44-mpg rating of the admittedly much more expensive Honda Civic Hybrid sedan that uses the same powertrain. With hybrid buyers being more affluent than general car buyers, the Civic Hybrid's more spacious, more luxurious cabin may seem worth its $5,000 higher cost.

The base model of Honda Insight costs less than $19,000. While it includes remote entry, power windows, automatic climate control, and an audio system with two speakers, it's still fairly spartan. Most buyers will want to move up to the mid-level LX models, which adds niceties like an armrest console, map lights, a security system, and floor mats as well as a four-speaker audio system with USB interface and steering-wheel controls.

At the top of the range is the Insight EX, which adds paddle shifters behind the steering wheel that provide simulated "gears" for the driver to shift for more responsive performance. Additional features include automatic headlights, heated side mirrors, and a six-speaker stereo system with Bluetooth audio linking, and alloy wheels. Navigation is optional.

Nissan Altima Vs. Volkswagen Passat: Compare Cars

Family-sedan shoppers no longer have just a few choices; these days it's not just a Camry-versus-Accord world. Look to the latest Hyundai Sonata, Kia Optima, Ford Fusion, Chevrolet Malibu, Subaru Legacy, Chrysler 200, and Mazda 6, and you'll see a full slate of serious contenders, all with slightly different personalities.

Two of the newest mid-size sedans, the Nissan Altima and Volkswagen Passat, promise excellent fuel economy to go with completely revamped style and features. How do they stack up?

The answer is that it's a close race, and depending on how highly you value miles per gallon and spare design, it could go the other way. By our numeric ratings, the Altima ekes out a win--narrowly--thanks to its superior base drivetrain and more widespread luxury features, though the Passat's optional diesel, its immense back seat, and its excellent safety scores bring it within a few tenths of its Tennessee-built neighbor.

The Altima's sleek looks mimic those of the more expensive Infiniti range, and the interior's never looked so refined, or been so quiet. The Passat? It's very spare and neatly organized, if a little plain to some. It promises a timeless appeal, and it leaves unnecessary detail off its fenders and its dash to that end.

Nissan's four-cylinder engine is smooth and powerful enough in the new Altima, and though the continuously variable transmission isn't a favorite, it's been thoroughly re-engineered. It doesn't seem sluggish to respond any more--and that helps the base Altima deliver an EPA-rated 38 mpg highway with reasonably spirited performance. The Passat's standard five-cylinder engine is adequate for acceleration, more rumbly and less refined than a four-cylinder like the one in the Altima, so we recommend a step up to the turbodiesel Passat TDI, which carries a significant price premium over the base car. You'll spend a few thousand more for the excellent powertrain, but you'll be rewarded with 43-mpg highway economy. Both the Altima and Passat offer an optional V-6 that many mainstream shoppers will pass on, since the high-economy models are so good.

Both the Altima and Passat have good handling for the class. The Passat's much more firm in steering feel and ride damping; the Altima's softened up a lot with this redesign, but it's still one of the more precise-handling sedans in the segment.

Comfort and quality in either four-door are excellent. The Passat's firm seats come in synthetic leather or cloth, and interior room is vast, in front or back, with or without the available sunroof. The Altima's a bit smaller but still quite spacious; its front seats are the best we've tried in family cars, and the rear bench has good support, too. The high quality of materials in the Altima gets our nod over the nicely fitted Passat, primarily because the extra sound damping in the Nissan makes it much quieter at speed.

Both models get Top Safety Pick+ status—ranking them in the top tier from the IIHS and achieving top 'good' scores in all area, except the new small overlap frontal impact test, where they both are rated 'acceptable.' And from the federal government, they both earn four stars overall.

The Altima outranks the Passat for convenience and luxury features, too. Bluetooth is standard, with audio streaming and voice-to-text translation. A USB port and satellite radio are available, and so is a new navigation system with a larger LCD touchscreen. The Passat offers many of those features, but is packaged in such a way that some buyers may feel underserved. Want a base Passat TDI with cloth seats, satellite radio and a USB port? It doesn't exist.

The bottom line? Both the Altima and Passat are poised to take even more business away from the Accord and Camry. They promise huge driving distances on a single tank of fuel, with handsome styling, above-average handling and exceptional room. The Altima has an advantage with its richer features list. With either the four-cylinder Altima or the Passat TDI, you'll find yourself behind the wheel of a capable four-door without many obvious weaknesses.