Thursday, January 3, 2013

Volkswagen claim fuel economy crown

  the Volkswagen Jetta Hybrid, with EPA estimated fuel economy ratings of 48 mpg on the highway, 42 mpg in the city, and a combined rating of 45 mpg, becomes the most fuel-efficient vehicle in the Volkswagen lineup and the seventh model capable of more than 40 mpg on the highway, VW officials said.
  With sales of the Jetta Hybrid beginning later in January, Volkswagen will offer more products that achieve this benchmark fuel economy figure than any other automotive manufacturer in the United States.
  The other VW models to achieve more than 40 mpg are in the TDI® Clean Diesel family: Beetle TDI (manual); Beetle Convertible TDI (manual); Golf TDI (manual and automatic); Jetta TDI (manual and automatic); Jetta SportWagen TDI (manual); and Passat TDI (manual and automatic).
  The Jetta Hybrid is Volkswagen’s second hybrid vehicle to go on sale in the U.S. and its first in the compact hybrid sedan segment. It uses a four-cylinder,1.4-liter, turbocharged and direct-injected TSI® engine that is mated to an electric motor and a seven-speed DSG dual-clutch automatic transmission, a unique powertrain in the class. The combined rating of the powertrain is 170 horsepower and 184 pound-feet of torque.
  Priced from $24,995, the entry-level Hybrid S has standard 15-inch aluminum-alloy wheels, Bluetooth, a six-speaker sound system, and a leather-wrapped multifunction steering wheel. The SE model, starting at $26,990, adds LED taillights, MDI interface with iPod® cable, the Premium VIII touchscreen radio with SD memory card reader, and keyless access with push-button start. By Joseph Szczesny

Wednesday, January 2, 2013

Avis buying up Zipcar for $500 million

  Avis Budget Group Inc. has put together a $500 million deal to acquire Zipcar Inc. the world's leading car sharing network,
 Avis has agreed to acquire Zipcar for $12.25 per share in cash, which represents  a 49 percent  premium over the closing price on December 31, 2012, which brought transaction value to the half-billion dollar mark.  The deal is expacted to yield savngs that will allow Zipcar to expand its carsharing business, executives from both companies said.
 The transaction is subject to approval by Zipcar shareholders and other customary closing conditions, and is expected to be completed in the spring of 2013.  Directors of both companies have approved the deal,  while Zipcar shareholders representing approximately 32 percent of the outstanding common stock have agreed to vote their shares in support of the transaction.
Car sharing has grown to be a nearly $400 million business in the United States and is expanding rapidly in major cities around the world. Zipcar has led this industry, leading in innovation and world-class service. Zipcar now has more than 760,000 members and a market-leading presence in 20 major metropolitan areas in the United States, Canada and Europe, and fleet positioned at over 300 college and university campuses.
"By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our Company to better serve a greater variety of consumer and commercial transportation needs," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer.
"We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company. We expect to apply Avis Budget's experience and efficiencies of fleet management with Zipcar's proven, customer-friendly technology to accelerate the growth of the Zipcar brand and to provide more options for Zipsters in more places. We also expect to leverage Zipcar's technology to expand mobility solutions under the Avis and Budget brands," he said.
Avis Budget expects to generate $50 to $70 million in annual synergies as a result of the transaction. In particular, Avis Budget expects significant cost reductions across the fleet life cycle (from procurement to operations and maintenance to disposition, as well as financing), in addition to savings from eliminating Zipcar's public-company costs. Avis Budget also plans to achieve substantial cost savings by increasing fleet utilization across the two companies. Significant revenue growth opportunities exist, including by leveraging Avis Budget's fleet to meet more of Zipsters' weekend demand, which is currently constrained by fleet availability.
These synergies, combined with the expected growth and rising profitability of Zipcar, are expected to make the transaction accretive to Avis Budget's earnings per share in the second year following the acquisition, excluding certain items and purchase-accounting effects.
"We are delighted to announce our intention to join the Avis Budget Group family of companies, and we believe this combination is a win across the board for our members, shareholders and employees.  We will be well positioned to accelerate enhancements to the Zipcar member experience with more offers and additional services as well as an expanded network of locations," said Scott Griffith, chairman and chief executive officer of Zipcar. By Joseph Szczesny