Fuel economy is now the number one purchase consideration for new car shoppers, sparking a massive swing in interest for alternative fuel vehicles.

According to the latest survey by Consumer Reports, the single largest factor for buying a new car is high gas mileage. In total, 37 percent of respondents chose fuel economy, with quality placing a distance second at 17 percent. Going down the list, safety came in at 16 percent, value at 14 percent and performance at 6 percent.

“These results make it clear that high fuel prices are continuing to impact driver behavior and influencing future purchase considerations,” said Jeff Bartlett, Consumer Reports deputy auto editor.  “While quality, safety and value are still important, this may be foreshadowing a market shift by folks seeking relief at the pump.”

Perhaps more shocking than how much consumers rank fuel economy over quality is their intention to switch to alternative fuels in order to save at the pump. In total, almost three-quarters (73 percent) of respondents said they would consider an alternative fuel vehicle as for their next car purchase, with younger buyers more receptive than older ones.

Not surprisingly, owners of large SUVs responded as the most likely to downsize in order to find better fuel economy, followed by mid-size SUVs and large sedans.

In total, two-thirds of buyers said they expect their next car to get better fuel economy, with 90 percent of buyers citing the rising cost of gas as their reason for wanting a more efficient vehicle. Other reasons cited include the decision to be more environmentally friendly (62 percent) as well as a desire to be less dependent on foreign oil (56 percent).

With rising gas prices, the switch to a car with better fuel economy sooner than later may seem like a wise decision, but according to Consumer Reports, you’re likely to save more money by sticking with your current car if it’s less than three years old.

There are a lot of car stereotypes out there, like that Toyota builds dull appliances. While true on many fronts, the Japanese automaker does also make exciting sporty cars like the Scion FR-S, and Lexus LFA, both praised for their exhilarating rides, edgy styling and pulse-raising performance. But there’s another stereotype that needs to be dealt with.

Likely you’ve heard the phrase “German engineering” more than a few times in your life and there’s a popular misconception that it equals good reliability. German cars are well engineered, sometimes to be amazing performance machines and sometimes to be incredibly high-tech (and often both) but, Porsche aside, German cars don’t have the best track record for reliability.

A REPUTATION EARNED

Part of the reason for the misconception about German engineering is that German automakers did, at one time, earn it. When Consumer Reports started its Long-Term Reliability Tests and Initial Quality Index tests way back in 1972, German brands like Volkswagen and Mercedes-Benz came out on top. The initial quality of even the lowly VW Beetle topped many domestic vehicles from Ford, Jeep, Pontiac and Mercury.

For a while afterwards, Mercedes and VW managed to stay near the top in reliability rankings. But their Japanese rivals weren’t sitting idly-by. In the 1980s and 90s the most reliable models ended up coming from Honda, Toyota, Acura, Infiniti and Lexus.

“Back then, the cars like the Beetle were pretty simple. But then came stronger competition, the Japanese [automakers], especially Toyota and Honda got their problems per 100, down to a science,” Said Gabriel Shenhar, an automotive engineer at Consumer Reports.

A REPUTATION LOST

In the late ‘90s Mercedes had released the dismally unreliable M-Class SUV (left) and the brand’s initial quality scores have plummeted since. Other German brands had similar experiences. Even though they stayed at the forefront of new technology and engineering practices, their new gizmos were prone to failing.

“They’re quick to adapt new technologies but rely on suppliers that supply these technologies and in a lot of cases what we see is problems with the electrical systems, the entertainment systems and other interface,” said Schenhar

According to Consumer Reports, Mercedes boosted its reliability a bit in 2011, but is still inconsistent. The same can be said for Mercedes’ German competitors, Audi and BMW. In Consumer Reports last five annual reports, the last time these German brands have been above average in reliability was back in 2007. Since then, they’ve all slumped below the average in the industry.

Consumer Reports’ Long-Term Reliability test documents a car’s reliability over the course of three years, while the Initial Quality Index is based on consumer feedback from the first few months of a new cars ownership.

Consumer Reports also has a report card that ranks automakers based on their average car score, reliability score and the percentage of recommended vehicles. The average score for these carmaker report cards over the past five years (when they started the report cards) of the German brands doesn’t crack 68/100, below the industry average and the competition from the top Japanese automakers.

These results are reflected in numbers released by J.D. Power & Associates as well. In the both of the latest J.D. Power Surveys, the German brands can’t match up to their luxury peers. In the most recent vehicle dependability survey, Mercedes-Benz only gets a four out of five, which is “Better than most” rating, while Audi and BMW get 3/5 or “About Average.” Volkswagen falls below average with 2/5, what J.D. Power describes as “The Rest.” Porsche is also ranked “Better than most” in J.D. Power’s dependability survey, which give Mercedes-Benz some nice company. It’s important to note that only one car maker had a score of 5/5, and that’s Lexus.

Nothing changes in J.D. Power’s Initial Quality rankings. Mercedes and Porsche have 4/5 ratings, BMW and Audi get just 3/5 and VW only achieves 2/5. Lexus tops that ranking as well with a 5/5.

The J.D. Power ratings are based on consumer surveys. Initial Quality is measured after 90 days of a new car’s purchase. Vehicle Dependability Ratings are surveys based on the past 12 months of original owners of three-year old cars.

POOR RANKING NOT JUST ABOUT QUALITY

Some of the reasons why German cars struggle in J.D. Power’s rankings in the past are entirely trivial and are not related to actual vehicle quality at all says Karl Brauer from Total Car Score.

“German cars didn’t offer cup holders for years, and while this isn’t a mechanical failure it was often noted as a dissatisfaction point for buyers on J.D. Power and Consumer Reports surveys, and this drove down their scores” said Brauer. “Most German cars (even Porsches) now have cup-holders because the manufacturers realized they were suffering in terms of owner satisfaction scores by not having them,” he added. The same thing could be said about some of the complicated technologies and infotainment systems like BMW’s first generation iDrive system (pictured right).

SACRIFICE FOR PERFORMANCE

Along with these more trivial complaints and technology issues, Shenhar of Consumer Reports tells us that German automakers, by their own admission, sometimes come up short because of their singular focus on performance. When and if they cut costs, the likely areas that will get cheaper quality parts will be with some of the stuff the customer might not notice.

“They are susceptible to cost-cutting and anywhere they can, in the hopes that the customer won’t know, they use suppliers that will deliver and sometimes won’t,” says Shenhar.

While the phrase “German Engineering” has become synonymous with reliability, Shenhar suggests it should more accurately be a reference to performance. And in regards to performance, there’s little doubt they have some high standards. In fact, looking away from initial quality and reliability, German vehicles rank quite well.

GERMAN CARS STILL APEAL-ING

In J.D. Power’s Automotive Performance, Execution & Layout (APEAL) study, which looks at how gratifying a new vehicle is to own and drive, based on owner evaluations, Porsche comes out on top, as the only automaker to get 5/5. Audi, BMW Mercedes and VW all achieve a 4/5 in this survey as well, showing that these cars are no slouch when it comes to performance and execution.

With its new 3-series, BMW has set the bar even higher for sport sedans, and the new Porsche 911 has again solidified the automakers place in automotive history for making the best sports car in the business. It’s no surprise then that both cars were in the running as finalists for the 2012 World Car of the Year Award.

Neither won, however, but that accolade did still go to a German car: the VW up! In fact, it’s VW’s fourth win in the past five years. Winners are selected based on overall merit, value, safety, environmental responsibility, emotional appeal, and significance.

It’s clear then that there are plenty of reasons to buy a car from automakers like BMW, Mercedes, Audi and Volkswagen, but if reliability is your top concern, don’t be fooled by the myth of “German engineering”.

Price, looks and size… these are the few factors that used to decide what vehicle you’d park in your driveway. Looking for a cheap and small car? A Toyota Corolla or Honda Civic will do. Need something bigger, perhaps a mid-size Hyundai Sonata or an SUV. Things used to be pretty easy.

With increasingly high gas prices and an overall movement towards green, fuel efficient vehicles, fuel economy has become more important. In fact, for many price, looks and size are now completely trumped by fuel economy.

“Buyers just look at the MPG on the sticker,” says IHS Automotive Analyst Devin Lindsay commenting that car buyers are now completely mesmerized by the EPA sticker label.

Take a look at the Toyota Prius, for example. It’s not terribly big, is fairly expensive, and looks… well… weird. But that didn’t stop three million of them from being sold, all thanks to a hybrid gas-electric engine that provides excellent fuel economy.

The Prius isn’t the only option for someone looking for a fuel efficient car, however; especially those in search of a more engaging driving experience. If you want to cut down on trips to the pump, and still drive a fun, powerful, good looking car, your best bet might just be in a diesel powered vehicle. That does mean you’ll almost certainly have to drive German, although a flood of new diesel-powered vehicles are about to hit our shore.

Despite the popular misconception, diesel fuel is readily available at numerous gas stations with most of the major chains dedicating at least one pump to diesels. “Finding diesel is not really a big problem anymore,” says Lindsay. “If one station doesn’t have it, the one across the street certainly will.” And there’s a good reason for the popularity of diesel pumps too. Ford, Chevy and Ram easily sell in the tens of thousands of the diesel versions of their popular pickups each year.

Historically, diesel cars were known for being smelly, hard to start in cold weather and not environmentally friendly. For those most part those issues have been solved, with improvements made to quiet the engines (though they are still noticeably louder than gasoline engines), while special emissions filters and exhaust after treatment systems have been devised to reduce pollution – though at an expense that’s handed down to the consumer.

Volkswagen has been offering diesel options for years, and in key areas, their diesel vehicles are better than the gasoline powered ones.

Take for instance the Golf. The TDI diesel option offers 6 more miles per gallon in the city over the gasoline model (30 mpg vs. 24 mpg) and 11 more miles per gallon on the highway (42 mpg vs. 31 mpg) all while still looking great and keeping its trunk space (something many hybrids can’t say.)

In defence of hybrids, average fuel economy on a Civic Hybrid is 44 mpg while the Prius is 50 mpg. The Golf TDI may have a solid 42 mpg highway rating, but average fuel economy is a less impressive 34 mpg.

Volkswagen sees diesel as an important part of becoming a more environmentally friendly car company. Mark Gillies, Product and Technology PR manager at Volkswagen America tells us “Diesel is part of our future powertrain strategy and you will likely see more models with a diesel option in the future.”

He explains that diesel can appeal to many drivers “The more practically minded will love the excellent highway mileage and range, which are perfect for the way that so many Americans drive.”

Gillies also explained his personal preference of diesel powered cars “As a car enthusiast, I love the torque of a diesel, which is perfect for mid-range passing performance, merging onto on-ramps, and for towing.”

Gillies’ torque-love is well-founded. The TDI Golf makes a noticeable amount of additional torque: where the normal gas Golf makes just 177 lbs-ft of torque at 4250 rpm, the TDI model makes 236 lbs-ft or torque at 1750-2500 rpm.

All that extra diesel-y goodness comes at a price though. Literally. Diesel fuel costs slightly more at the gas station and most diesel cars are more expensive than their gasoline stable mates. In the case of the Golf, a gasoline model starts at $17,995 while the diesel version costs $24,235, a difference of $6,240. To help off-set this cost, VW tends to better equip its TDI models. If you’re on more of a budget, Volkswagen also offers a Jetta TDI for about $2,000 less.

As mentioned, diesel models often require expensive emissions systems, which can also result in added maintenance, and cost. Two of VW’s models use what the company calls AdBlue, a chemical solution (often generally referred to as DEF or Diesel Exhaust Fluid) used to help the vehicles’ emissions stay environmentally friendly. The AdBlue liquid must be refilled at regular service intervals (every 10,000-15,000 miles) and are covered under VW’s three-year/36,000-mile Carefree Maintenance Program.

But it is something to keep in mind, as prices of refilling a car’s DEF vary between manufacturers. Consumer Reports has mentioned paying $241.50 to refill 7.5 gallons of DEF for a diesel Mercedes-Benz GL Class. That’s $32.20 per gallon! Volkswagen apparently sells the same solution for much cheaper, with reports of customers paying just $5.40 per gallon.

Other automakers take a different approach to their diesel powertrains. Take a look at Mercedes-Benz’s E350 models, which are also available with either a gas or diesel engine. The diesel version gets only meager gains over the gasoline engine, earning one more mile per gallon in the city, and two more on the highway. That’s far less impressive than the difference on VW models.

However, in comparison to the Volkswagen vehicles, the diesel E-Class isn’t much more expensive than the gas version. In fact, it’s just $1,200 more, a much more favorable price difference. While the fuel economy doesn’t significantly favor the diesel E-Class, the torque numbers are eye-opening: 400 lb-ft of torque in the diesel compared to 273 lb-ft in the gas model.

As a result, Mercedes markets its diesel models as more of a V8 than a V6 alternative. In Mercedes’ SUVs this means that buyers can enjoy the high torque of a V8, but with the fuel economy and environmentally friendliness of a V6. Mercedes’ offers diesel engines for its ML, GL and R-Class trucks.

The selection of diesel offerings is expanding, and not just by German automakers either, with both domestic and Japanese manufacturers preparing to launch diesel vehicles in the next few years. Among the planned arrivals is the Chevy Cruze diesel, Cadillac ATS diesel and the return of the Jeep Grand Cherokee diesel. Mazda has also announced it will offer its new Skyactiv-D engine in the near future, though isn’t saying what car (or cars) it will power.

For those who want a fun and powerful car, but one that also visits the pump less often, a diesel can be a viable option. Like hybrids, they carry a price premium over their gasoline powered brothers. Unlike hybrids, particularly ultra high efficiency ones like the Prius, they’re peppy around town.

The price of gas is quickly reaching the price of diesel gas, helping make diesel an attractive alternative for prospective car buyers. Another factor that might make diesel a more attractive option is the fact that they tend to fetch a better resale value than their gas powered counterparts.

Ultimately it’s a question of driver preference, before buying a diesel it’s important to make sure it suits you driving style – and your commute.

The Kia Rio EX got top honors in Consumer Reports’ latest tests in the sub-compact sedan category, besting the Hyundai Accent and the Chevrolet Sonic.

Consumer Reports found the Kia Rio a solid and well-equipped car with nimble handling, simple controls and plenty of features for the price. Their test vehicle was a Kia Rio EX sedan ($17,275 as tested) with a 1.6-liter four-cylinder engine making 138-hp with 30-mpg overall. They noted that the six-speed automatic transmission shifts smoothly while both ride and noise were tolerable for a subcompact. They were also pleased with the braking performance of the Rio and found the trunk to be roomy.

The hatchback, on the other hand, came in third place behind the Honda Fit and Nissan Versa in the subcompact hatchbacks category. Despite the Versa having a strong showing among the hatchbacks, the sedan plunged from being at the top of Consumer Reports’ ratings to the bottom. Complaints from Consumer Reports include the engine’s whirring, jittery ride on the highway and unimpressive interior.

Even with its redesign, the Toyota Yaris continued to garner very low scores from Consumer Reports, which calling it “bare-bones transportation.” They reported that the Yaris is noisy, has a choppy ride, poor handling and slow acceleration.

The biggest surprise is probably the new Chevrolet Sonic getting high marks for its quiet cabin, agile handling, and excellent braking. What hurt the Sonic was its fuel economy, which Consumer Reports said is mediocre for the class. Even though Consumer Reports tested a fully-loaded Sonic LTZ turbocharged hatchback, they found that it was too expensive and “didn’t live up to its sporty aspirations.”

The infamous Fisker Karma that shut down during Consumer Reports‘ testing performed exactly as it was meant to, according to Tom LaSorda, the company’s new CEO.

Apparently the luxury EV is meant to shut down in the event of a failure to prevent collateral damage that might otherwise result. LaSorda sent a letter to customers apologizing for the fault and any resulting inconvenience.

He also assured customers that he is “personally involved” in all the company’s initiatives, saying that hiccups in new technology sometimes require updates and refinements.

Fisker returned the Consumer Reports owned Karma fully repaired under warranty after finding a problem in the car’s inverter cable and battery.

Furthermore, it seems LaSorda dispatched what he calls a “SWAT” team of 50 engineers and other consultants to find problems with the car and fix them. New software has been developed to help prevent future problems in Karmas, and will be sent out as soon as the current testing procedure is complete, according to LaSorda.

Regardless of what he says, its hard to imagine buying a car for $107,850, as Consumer Reports did, only to have it die. A letter from the company’s CEO would probably offer little comfort after realizing your recent six-figure investment wasn’t ready to be sold.

GALLERY: Fisker Karma

[Source: Automotive News]

The Consumer Reports Fisker Karma test vehicle which broke down on them last week has now been returned to the fleet after spending 48 hours at a Fisker dealerhsip.

During a routine speedometer test the Karma began to flash a warning light and a chime to alert the driver that something was amiss. Once the car came to a stop the Consumer Reports testers could not get the vehicle to shift into any gear other than park and neutral.

The nearest Fisker dealership was alerted of the issue, and sent a flatbed to pick up the car. Consumer Reports says that the dealership found a fault with the battery and the inverter and both of them were replaced.

With a new battery and new inverter cable the car has been returned to the test fleet problem free… for now.

Watch the video below of the Karma breaking down on Consumer Reports.

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Well this is just embarrassing. American electric automaker Fisker has had some pretty bad months recently, starting with a recall back in December, to reports of the company running out of funds, that has lead to the delay of Project Nina and then possible reports that the Karma could brick.

The automaker was probably hoping some good press would come with Consumer Reports putting the Karma to the test, looking to prove to the world that it is indeed a formidable plug-in hybrid especially at its hefty $107,850 price tag. That can just go out the window now, as Consumer Reports has reported that with less than 200 miles on the odometer their Karma has broken down.

The breakdown occurred while Consumer Reports was doing a speedometer calibration run on their test track, something they do for every test car. The calibration simply has the vehicle driving at a constant speed of 65-mph between two measured points. During one of its runs, “the dashboard flashed a message and sounded a ‘bing’ showing a major fault,” according to Consumer Reports.

They promptly took the vehicle off the track and parked it, rummaging through the owner’s manual to determine what may have occurred. Unfortunately after that, the Karma refused to let them shift the vehicle into any gear. The electronic shifter would only allow Park or Neutral.

The vehicle sat for about an hour before they restarted it hoping for better luck. This time around, it allowed them to put it into gear but it only moved a few feet before the error message appeared again and the Karma disabled itself. The dealer promptly sent out a flatbed tow truck to pick up the disabled Karma, which was almost 100 miles away from the dealership.

It’s disheartening to see all this funding going towards the Fisker brand and very little positive news has surfaced from the vehicle. It will be interesting to see what Consumer Reports publishes if they ever get the vehicle drivable for more than a couple of days.

Watch their video below

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Consumer Reports released its Top Picks for 2012, with Toyota claiming five of the 10 spots — the first time since 2003 that a company held so many.

Consumer Reports chooses the “best all-around models” in each category by conducting road tests, reading thousands of customer surveys about reliability and examining crash test ratings on each model.

Toyota is the only company on the list with a repeat appearance, its winners ranging from best family sedan to best family hauler.

See the complete list of winners below: (note: all cars listed are the 2012 model)

Family Sedan- Toyota Camry Hybrid

Sporty Car- Ford Mustang

Affordable Family Sedan- Hyundai Sonata

Small SUV- Toyota RAV4

Family Hauler- Toyota Sienna

Sports Sedan- Infiniti G

Green Car- Toyota Prius

Small Car- Subaru Impreza

Pickup Truck- Chevrolet Avalanche

Family SUV- Toyota Highlander

[Source: Consumer Reports]

Have you ever thought about cleaning your headlights? If not, you should. There are plenty of headlight cleaning kits out there, and according to Consumer Reports, even the most inexpensive or poorest quality ones can make a difference.

Since drivers are keeping their cars longer, it becomes more important to maintain this older fleet. And one of these maintenance issues is the oxidation that occurs on plastic headlight lenses. Oxidation causes an unsightly haze that reduces headlight illumination, and over time, can build up to become a dangerous problem.

Consumer Reports tried out a series of headlight cleaning kits, all under $25, and found that even the poorest quality kit dramatically improves light output. The kits that Consumer Reports tested included the 3M Headlight Lens Restoration System 29008 ($15), the Fast Brite Auto Headlight Restorer Kit ($17), the Sylvania Headlight Restoration Kit ($21) and the Turtle Wax Headlight Lens Restorer ($9).

After cleaning out the headlight lenses of various cars and testing them again a few weeks later, Consumer Reports found that even the poorest quality kit still made a difference in light output on badly weathered lenses. Sure, there’s some elbow grease involved, but if you’ve got an older car, these kits can really increase headlight brightness, which means you can see clearer in the dark.

After the jump, watch a Consumer Reports video on some helpful headlight cleaning tips.

[Source: Consumer Reports]

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Besides revealing what consumers think about specific vehicle brands based on seven different categories, Consumer Reports‘ latest Brand survey also shows what nameplates they will consider for their next new vehicle.

Ford, Toyota and Chevrolet were recognized as the leaders when it came to purchase intentions for consumers, however, Honda, in fourth place was ranked considerably higher than the rest of the brands on the list. Honda’s strong customer loyalty helped then to achieve their high ranking and like the top three, the customer loyalty factor was registered at more than 50 percent.

Other findings in terms of brand loyalty revealed that Dodge, which had showed gains in recent years, dropped slightly for 2012 to 28 percent from 35, placing it a distant fifth behind Honda.

As for the reason why, the lack of a quality small car at a time when buyers are looking to save their pennies and placing more emphasis on fuel economy and value may be a significant factor. It’ll be interesting to see how the brand fares next time out, once the Dodge Dart has been introduced.

Volkswagen, which is making a huge push to become a dominant player in the volume segment in the US, has seen its purchase intent double in the last few years. Even with the growth VW has achieved, the purchase intent numbers are still low, rated at just under two percent, meaning that for many consumers VW simply isn’t on the radar when it comes to considering a new vehicle.

Another interesting finding from the survey was of those leading Domestic brands that contained trucks in their portfolio. Men were more likely to consider theses brands than women and for example, Ford showed a 19 versus 11 percent bias towards males, with Chevrolet at 15/11. However, Toyota, which also offers trucks, was actually skewered the other way with 16 percent of women (versus 12 percent of men) most likely to consider a new vehicle.

[Source: Consumer Reports]

That’s according to Consumer Reports’ fifth Car Brand Perception Survey, which gauges the perception of different vehicle makes across seven different categories: design, environmental friendliness, performance, quality, safety, technology/innovation and value.

The survey, which was conducted among 2000 adults with at least one vehicle in their household last December, illustrated that the most well-known brands kept their lead, with Toyota, Ford, Honda and Chevrolet rounding out the top four in terms of overall scores, yet other brands edged closer. For example Acura, which ranked twelfth, had a score of 46.8, while BMW, in sixth, scored 69.3 points.

Regarding the survey, CR‘s deputy editor, Jeff Bartlett, said that, “we’ve made [brand] awareness a non-factor, so we’ve equalized it across the brands. So everyone knows Toyota, [but] a few people know Fiat. The question is, of those brands that you’re aware of, which stand as exemplary in each of the seven categories that we’re looking at?”

He also noted that whereas in the past it was easy to differentiate the leaders from the rest in certain aspects, such as Volvo when it came to safety or BMW in terms of performance, in the future, it will be much more difficult for one single brand to stand out, especially as more vehicles are able to do more things better.

While the 2012 Honda Civic has clearly not impressed the staff at Consumer Reports, the same can’t be said for its smaller sibling the Fit.

For the second year in a row, the Honda subcompact has been named as the best value choice when it comes to small cars; it was also judged best value overall from a field of some 200 competitors, high praise indeed.

During its evaluation of finding the year’s best value vehicles, Consumer Reports, tested cars, SUVs and trucks  from a total of 11 different categories. Scores were determined based on a five-year ownership cost of each vehicle, including depreciation, insurance premiums, fuel costs, interest on financing, repairs and maintenance and sales taxes. Consumer Reports also added it’s own road test scores and projected reliability to each tally.

When all was said and done, the Fit emerged as the overall winner in the small car category, followed by the Toyota Prius Hybrid, Volkswagen Golf TDI (manual gearbox), Toyota Corolla and Scion xD. Most of these cars scored twice as high as the average vehicle rating in the value survey, while the Chevy Cruze, which finished last in the small car category, still earned a total  score close to the average overall value of all vehicles tested.

Rik Paul, automotive editor at Consumer Reports, said in regards to the survey, that “a cheap vehicle can wind up costing you more money over time or can be disappointing down the road.  We think real value is what you get for your money.” Indeed.