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IntelliChoice Value Rating
The chart above shows the purchase price versus ownership cost for each car from a specific vehicle class. The cars with better than average ownership cost/purchase price correlations are the best values, and these best value cars are represented by the dots below the curve. (i.e. the cars that have a lower ownership cost compared to its purchase price.) Those cars, which are worse than average or poor values, appear above the curve.
One way to view the graph is to draw a vertical line through any purchase price. You may see several dots that fall on this line - each of which is a car with a similar purchase price. However, notice the difference in ownership costs of each car represented by the vertical position of the dot. Two cars with the same purchase price can have thousands of dollars difference in ownership costs. This is what separates "good value" cars from "poor value" cars.
What is a good car value?
A "good car value" is one whose cost to own and operate is less than expected. The lower the cost to own and operate a car compared to what is expected, the better the value of that car.
But how do we know a car's "expected cost"?
For each car in the class, IntelliChoice plots the car's purchase price against the total five-year cost to own and operate it as determined by IntelliChoice research. Each dot on the above chart represents a specific car. Generally, we find that as the purchase price of the car increases, the cost to own and operate that car increases. This is why the dots on the graph tend to rise upward and to the right. This phenomenon also makes intuitive sense - as the purchase price rises, financing costs tend to rise, as do insurance, depreciation, taxes, and most other car ownership costs.
This is an important concept. It's normal for car ownership costs to rise as purchase price rises. Therefore, we can't just establish one "average" ownership cost number for each class, since cars in the class have different purchase prices. (This is why the "Relative" shown on each chart is different for cars in the same car class.)
Using statistical techniques, IntelliChoice "connects the dots" to form a curve that defines, for this car class, the relationship between the car's purchase price and car's ownership costs. This curve is our "expected cost" curve. The curve defines, for any car in the class, the five-year ownership cost that we would expect to see at each possible purchase price. If every car in the class were an average value, then all the dots would fall exactly on the curve. However, it's rare that any dot is exactly on the curve. Some dots are a little higher or lower, and some are a lot higher or lower. The dots that are a little lower are better than average car values, while the dots that are a lot lower are excellent car values (A dot that is a lot lower than the curve has ownership costs much lower than expected for a car of its purchase price). Conversely, a dot a little higher than the curve is a poorer than average car value, while a dot that is much higher than the curve is a poor car value.
Value is a relative term, not an absolute term. It is performing better than the logical expectation.
So is a Mercedes-Benz E320 expensive to own and operate? Certainly in an absolute sense. Most other cars cost less. But, when its cost to own and operate is plotted against cars with comparable invoice prices, the E320 costs less. So the E320 is not expensive to own and operate - it is a good car value. The Mercedes does not have low ownership costs, but it has low ownership costs for its invoice price.
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Review From Truck Trend Magazine
NewComer: 2009 Chevrolet Silverado 2-Mode HybridGM Rolls Out Fuel-Saving Power to Pickups / By Mark Williams /
Article provided by: Truck Trend Magazine
You have to give GM credit. When other automakers were megaphoning that their hybrid powertrains were mounted to lightweight subcompact passenger cars, General Motors went in a completely different direction-it opted to put these fuel-saving powertrains in bigger, high-volume utility vehicles where they can do the most good. Appearing first in the Chevy Tahoe (on sale now), the new 2-Mode Hybrid system was jointly developed by Daimler-Benz, BMW, and GM. The system will roll out into the GMC Yukon, Cadillac Escalade, Dodge Durango, Chrysler Aspen, and BMW X5 over the next 12 months. Near the end of that rollout, the 2009 Silverado will be the first pickup truck to get the technology. As with the GMT900 SUV hybrids, the pickup won't look much different from a regular Silverado, with the exception of stickers on the sides and windshield, making sure everyone within 100 yards can tell this vehicle is different. The system uses two powerful electric motors and a 300-volt battery pack for various power modes. It's called a 2-Mode Hybrid because in Mode 1 the first electric motor (which also replaces the torque converter) silently drives the truck off the batteries up to 30 mph and can reportedly do so for as far as two miles, depending on charge levels. Mode 2 kicks in above 30 mph, when both electric motors supplement the all-aluminum 6.0-liter OHV V-8. Amazingly, the two electric motors, gears, and electronic variable transmission all sit inside a regular transmission bellhousing. There are two sets of gears for the electric motors-one each for low (Mode 1) and high (Mode 2) speeds-and a third set of four fixed gears, specifically designed to work like a normal transmission during heavy hauling or towing. The Miller-cycle 6.0-liter V-8's Active Fuel Management cylinder-shutoff software is more aggressive than in nonhybrids, allowing the engine to run in V-4 more often at speed. It also uses an automatic engine shutoff when coasting up to a stop or sitting at stoplights to further save fuel.  Another change worth mentioning is a clever 42-volt steering setup to save weight and reduce parasitic drag. It also contributes to overall fuel improvements, which are reported to be 25 percent better on average than in a nonhybrid model. GM also is expecting as much as a 40-percent improvement if you do a lot of city driving. The transmission uses a standard column shifter that has "D" and "M" settings to identify automatic and manual (via thumb-shifter) modes. And, as in other GM half-tons, there's a towing setting (a button at the end of the shifter stalk). All 2-Mode Hybrids will be RWD or 4WD crew cabs. For the first model year, Silverado Hybrids will be offered with the "pure pickup" interiors, StabiliTrak electronic stability control, a locking rear axle, and the trailering package. These vehicles will be able to tow up to 6100 pounds so there is a small capability penalty for the powertrain; also, since the system adds about 350 pounds, you can take that right off the payload number. Although pricing won't be announced until we get closer to the Silverado Hybrid's on-sale date (near the end of 2008), look for this powertrain package to cost a significant premium. If Hybrid Tahoe pricing is any indication, we'd predict it'll be somewhere in the $35,000 range. | 2009 Chevy Silverado 2-Mode Hybrid | | Base price | $34,000 (est) | | Price as tested | $35,000 (est) | | Vehicle layout | Front engine, 4-door, RWD/4WD | | Engine | 6.0L/332-hp/367-lb-ft OHV 16-valve V-8 | | Transmission | Two-mode EVT w/4 fixed gears | | Wheelbase, in | 143.5 | | Length x width x height, in | 230.3 x 80.0 x 73.7 | | Curb weight, lb | 5641/5881 | | GVWR, lb | 7100/7300 | | GCWR, lb | 12,000/12,000 | | Payload capacity, lb | 1459/1418 | | Max towing capacity, lb | 6100/5900 | | Cargo volume, cu ft | 53.2 | | 0-60 mph, sec | 8.0 (est) | | Quarter mile, sec @ mph | 16.0 @ 88.0 (est) | | 60-0 mph, ft | 138 (est) | | Fuel econ, city/hwy, mpg | 20/24 (est) | | CO2 emissions, lb/mile | 0.90 (est) | | On sale in U.S. | Fall 2008 |
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Designated Driver: Six Pillars Of Strength
uest Commentary from Gary White v.p., GM North America and vehicle line executive for full-size trucks and Terry Woychowski, executive director--vehicle systems and global vehicle chief engineer, ful...
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