General Motors Digest: July 8, 2014
In today’s General Motors Digest: Replacement ignition switches are shipping to dealership service bays in boxes that may not reflect the contents inside; GM hands over 2 million documents to the United States House of Representatives; and certain truck owners are on their own as far as rusty brake lines are concerned.
2015 Audi A3 Sedan Sales Outpacing Supply, Stealing From Honda, Toyota
The 2015 Audi A3 Sedan is doing quite well for itself in the United States since its arrival back in April of this year, even if the hipster parties during the sedan’s U.S. unveiling more than likely just amused the automaker’s traditional clientele instead of attracting younger buyers as the party plan intended.
Reuters: GM Ignition Woes Came As Early As 1997
It may have taken nearly 14 years for one ignition switch issue to finally find attention, but General Motors’ ignition woes go as far back as 1997, when Chevrolet Malibu owners had their own switch problems.
2015 Acura TLX To Start At $30,995, Arrives In August
After a bit of a delay to sort out a few kinks, the 2015 Acura TLX — the new sedan replacing both the TL and TSX — will finally arrive in August with a base MSRP of $30,995.
General Motors Digest: July 3, 2014
In today’s General Motors digest: GM recalls a recall; the automaker gains market share in spite of itself; its bankruptcy judge believes it may have committed fraud; the U.S. Senate gets ready for a second February 2014 recall hearing; and Anthony Foxx vows to keep the heat turned up on GM.
Nissan: 633 CHAdeMO Fast Chargers Available For Use Today, More Coming
Just in time for the Fourth of July travel weekend, Nissan Leaf and Mitsubishi i-MIEV owners will have access to 633 CHAdeMO fast chargers, up from 160 stations in January 2013.
Cuban New-Car Sales Total 50 During First Half Of 2014
Last year, the Cuban government finally made it legal for its citizens to freely buy new vehicles for the first time since Fidel Castro sent Fulgencio Batista packing in 1959. The people rejoiced right up until they saw the prices on the showroom floor this January, family sedans marked up 400 percent or above as if they were Ferraris and Bugattis.
2015 Hyundai Genesis Sedan To Receive Speed-Camera Warning System
Speed cameras are the bane of any driver’s existence, especially if they’re more trouble than they’re worth for the municipality who experiments with them for a contract period of several years. Future Hyundai Genesis owners in Korea, however, may have a new tool at their disposal that should make dealing with the long lens of the law much easier on the wallet.
Feinberg Plan Unveiled, Endures Criticism From Attorneys
Victim compensation expert Kenneth Feinberg, hired by General Motors to develop a program to pay those harmed or killed by the ignition switch at the center of the February 2014 recall and subsequent fallout, unveiled his compensation plan Monday. However, the plan found a few critics over its lack of punitive damage claims, and the fact all payments would be made under Feinberg’s discretion.
Lincoln Nearly Axed By Mullaly, Saved By Fields
Today marks the day Mark Fields becomes CEO of Ford, taking up where now-former CEO Alan Mullaly leaves off. This day may also mark the day Lincoln begins its slow climb back from the brink, especially when Mullaly once considered killing the brand before Fields became its champion.
General Motors Recalls 8.4 Million Vehicles
General Motors has issued a total of six recalls affecting some 8.4 million vehicles in North America, the majority of which have ignition-related issues.
General Motors Digest: June 30, 2014
In today’s General Motors digest: GM recalls over 700,000 units globally; Siemens VDO Automotive urged the automaker to look into airbag data in 2004; product chief Doug Parks was aware of the ignition problems in 2005; Feinberg compensation plan will have no payment cap; and Delphi is under the gun from both Congress and the IRS.
General Motors Digest: June 27, 2014
In today’s General Motors digest: The automaker rescinds its stop-sale of 33,000 Chevrolet Cruzes over Takata air bag issues, recalls 29,019; Delphi turns over documents to a federal grand jury; Kenneth Feinberg’s compensation plan will be revealed Monday; and CEO Mary Barra says more recalls may be coming, but no more people will be fired as a result of the Valukas report.
GM Ignition Issues Pile Up From Within, Abroad
In today’s General Motors digest: An ignition-related issue is quietly fixed years before the February 2014 recall; a Chinese supplier is blamed for defective switches recalled in June; Ally prepares to take flight from the Beltway; and Mark Reuss helps bring back a Corvette stolen 33 years ago.
GM Issues Chevy Cruze Stop-Sale Over Defective Airbag Units
Airbag supplier Takata’s woes continue as General Motors has issued a stop-sale of 33,000 2013 and 2014 Chevrolet Cruzes equipped with the supplier’s airbag units.
Honda, Nissan, Mazda Recall 3 Million Over Defective Airbag Inflators
Honda, Nissan and Mazda are recalling a total of 3 million vehicles equipped with defective airbag inflators supplied by Takata, following a similar action by Toyota.
Nissan Aiming For European Diesel Van Fleets With E-NV200 EV
Though diesel rules the delivery fleet in Europe, Nissan would like fleet managers to leave oil-burning behind for the all-electric e-NV200.
Mitsubishi Outlander PHEV Big In The UK
The Mitsubishi Outlander PHEV may not be coming to the United States until sometime between the autumn of 2015 and early 2016, but United Kingdom customers are already lining up at their local dealerships for a test drive of the SUV that can be had for the same price as its diesel sibling.
GM Offers Incentives To Speed Up Ignition Recall Repairs
With 2.6 million vehicles needing new ignition switches fueling service bay backlogs, General Motors is offering its dealership network incentives to speed up the process.
Maserati Sells As Many Units Through June 2014 As It Had For All Of 2013
Maserati may have had a slow 2013 as far as sales go, but the Italian brand is on pace to sell within the first half of 2014 as many cars as it had in the last year.
JD Power Initial Quality Study Shows GM, Hyundai, Porsche Leading The Pack
J.D. Power has released their U.S. Initial Quality Study for 2014, where General Motors, Hyundai and Porsche earned top marks despite consumers still struggling with the gizmology taking over their vehicles.
Barra Returns To Face Congress Post-Valukas Report
In today’s digest: General Motors CEO Mary Barra returns to the Beltway with Anton Valukas in tow; GM is hit with a $10 billion lawsuit; affected families appear before Barra’s testimony; and a safety group calls the Valukas report “flawed.”
GM Corporate Culture Silenced Whistleblower Over Fuel-Leak Recall
To say General Motors has a failure to communicate among itself and with the outside is an understatement that grows with each passing day, especially in light of how it treated a whistleblower in 2003 over its handling of a recall regarding fuel leaks in the automaker’s line of compact SUVs.
NJ Assembly, NY Governor Pass Direct Auto Sales Legislation
Tesla is one step closer to resuming direct sales of its electric vehicles in New Jersey after the N.J. Assembly passes a bill that would allow it and other ZEV manufacturers to bypass the independent franchise system in selling electric vehicles.
2015 Acura ILX Hybrid Leaves US Market, Stays In Canada
Those considering a premium hybrid will have one fewer option in the United States when MY 2015 rolls around: Acura has discontinued sales of the entry-level ILX Hybrid in the land of the free.
European Automakers Face Challenge From New Emissions, Fuel Economy Tests
Already facing financial challenges under a weak home economy, European automakers may soon have a new challenge to add to the list when the European Union adopts a more accurate method of testing CO2 emissions and fuel economy among their lineups, with EVs becoming the biggest beneficiaries as a result.
GM Recalls 3.36M Vehicles Over Ignition Problem
In today’s digest: General Motors issues another ignition-related recall; has fixed a handful of those affected by the original ignition recall; and unveils plans for three new compacts to be sold in emerging markets.
Nissan, PGE In Six-Week Commercial EV Market Research Trial
While Portland, Ore. may be the place where the dream of the 1990s is still very much alive and well, the 21st century — and Nissan — is bringing the city’s electric company up to date as far as electric vehicles are concerned.
European Taxi Drivers Take To The Streets Against Uber
Much like it has in the United States, Uber and other ride-sharing services have upended the traditional taxi in Europe. Just like the U.S., taxi operators have protested the disruption the new services have caused upon them, citing the lack of properly licensed drivers and thoroughly maintained vehicles as a reason to bring them in line with the same regulations they already are mandated to follow. However, unlike the U.S., European taxi drivers took their complaints to the streets, and then some.
Energy Drinks May Follow Tobacco Sponsorship Into History
Once upon a time, the Sprint Cup was the Winston Cup, Rothmans decorated Porsche 962s in Group C, and the Marlboro chevron was everywhere a wheel turned in anger. Though those days are long gone, energy drink makers like Red Bull and Monster have stepped in to fill the financial void left behind by Big Tobacco. At least for now.
Nine States Investigate GM Ignition Switch Recall
In today’s General Motors digest: Nine states are investigating the handling of the automaker’s ignition switch recall; compensation will only focus on those injured or killed; a Georgia injury claim’s transfer to New York a sign of things to come for similar claims; and a federal official saw GM’s corporate culture at work during bankruptcy proceedings, yet remained silent.
Abe Administration Pushes Automakers, Nation Away From Kei Cars
For ages, the kei car has been one of the darlings of the automotive world, owing to its tiny size and equally tiny engine (that also netted owners a smaller tax bill). Alas, Japan’s littlest cars may soon be put in a toy box destined for Goodwill as the nation’s government puts the pressure on both automakers and owners to move toward supporting bigger offerings.
Alfa 4C Arrives In 86 North American Showrooms, Brings 342 Pounds Of Luggage
Fiat Chrysler Automobiles has just released their initial list of dealerships who will have the right to sell the Alfa Romeo 4C to North American customers, while the sports car will bring 342 pounds of luggage for the trip from Modena to the selected showrooms.
US Judicial Panel Consolidates Lawsuits, Sends Them To NY
Reuters reports the lawsuits filed against General Motors over its decade-plus handling of the ignition switched linked to 13 fatalities and 54 accidents will all be reviewed by U.S. District Judge Jesse Furman in the Southern District of New York, as ruled Monday by the U.S. Judicial Panel on Multidistrict Litigation. The panel determined New York to be the appropriate venue for the hearings based upon the court’s handling of the 2009 bankruptcy that allowed the automaker to shed its former self, liabilities and all. The lawsuits to be heard by the bankruptcy judge involve economic damages, suits GM wants the judge to determine if they are blocked by the liability protections established upon its exit from bankruptcy.
New Jersey Assembly Committee Approves Tesla Direct-Sales Bill
Earlier this spring, Tesla ceased direct-sales at its two New Jersey showrooms due to enforcement of state law that prohibited such sales from auto manufacturers. That may soon change once a bill that would allow direct-sales to begin again comes to a vote before the New Jersey Assembly.
Data Privacy Concerns Rise Within Connected-Car Industry
As more vehicles come with infotainment systems mounted in the dashboard console, consumers are beginning to face the issue of losing privacy behind the driver’s seat.
Barra: "Nobody Took Responsibility" For Defective Ignition Switch
Automotive News reports General Motors CEO Mary Barra delivered a 15-minute blistering speech before those in attendance and online regarding the Valukas report, which detailed the how and why a defective ignition switch first brought to life in 2001 led to the February 2014 recall of 2.6 million vehicles so equipped and the firestorm that followed. In her words, “nobody took responsibility” for the problems, that “there was no demonstrated sense of urgency” during the time period to fix the problems that still haunt the automaker. Barra added that she would never put the recall crisis behind GM, to “keep this painful experience” permanently upon the head of the corporation so as nothing like this would ever occur once more. At the end, she proclaimed her belief in GM and its employees in being able to face “the truth” about itself, and that the General overall was better than its previous actions.
Feinberg: Report On GM Victims Compensation "Weeks Away"
The Detroit News reports Kenneth Feinberg, whose services were retained by General Motors regarding compensation for victims of the out-of-spec ignition switch linked to 47 accidents and at least 13 fatalities, stated an announcement regarding compensation is “a few weeks away.” Feinberg adds that while his client may be making its own statement on the matter, “it will not include any details about a compensation plan since no such plan yet exists.” The attorney has worked on similar programs in the past, including those affected by the 2011 BP/Deepwater Horizon disaster, Agent Orange, asbestos and the attacks in New York, Pennsylvania and Washington, D.C. in early September of 2001.
Volkswagen To Triple SUV Lineup In Fight Against Toyota For Total Global Sales
With Toyota still in its sights, Volkswagen plans to triple the number of SUVs in its lineup in its fight for the top sales podium among the Global Three.
Coalition Of Eight Unveils Plan To Encourage ZEV Production
A coalition of eight states have adopted a plan to encourage automakers to help meet the target of 3.3 million ZEVs taking to the road as required by the Clean Air Act by 2025.
Akerson Claims No Knowledge Of Ignition Switch Issues During GM Tenure
Last week, the B&B learned from former General Motors CEO Dan Akerson that current CEO Mary Barra did not know about the ignition switch that has since given his old company a months-long headache. The B&B then asked if Akerson himself knew of the problem on his way to be at his wife’s side and that of his colleagues at The Carlyle Group.
Automotive News reports the answer is “No.” In a post on Forbes magazine’s blog, both he and GM chair Tim Solso claim they didn’t know about the ignition switch issues at the heart of the February 2014 recall of 2.6 million vehicles. Akerson stated that if he had known about the problem, Barra would have been made aware as he handed the reins of the automaker to her in late December 2013. Solso says he didn’t become aware until after Barra called him to let him know the bad news, having become a non-voting member of the board in the following January.
Volkswagen Will Bring US Product Faster To Market Beginning 2017
In an effort to keep its U.S. customer base satisfied — and to potentially boost sales — Volkswagen is planning on delivering the goods to the market at a faster clip than current.
Car2Go Vacates UK Market Due To Tradition Of Private Ownership
Car-sharing service Car2Go, whose ubiquitous blue-and-white Smart Fourtwos can be seen parked on the streets of many a major city, will leave the United Kingdom market today.
Jeep's Nine-Speed Undergoes Second Reflash For 100k Cherokees
Remember the nine-speed transmission in the new Jeep Cherokee that gave our rising superstar managing editor a hard time, followed by everyone else giving him a hard time about the truth of this car before walking back their statements in light of their seeing the light? More than 100,000 of the crossovers built before May 5 will need theirs readjusted.
BMW: China To Be Largest EV Global Market By 2019
Though Chinese consumers have been slow to adopt electric vehicles thus far, BMW believes China will become the largest global market for EVs by 2019 at the earliest.
Minivans Making A Comeback, Minus The Name
Once the bane of soccer moms everywhere, the minivan segment is on the rebound in sales. However, the remaining stigma surrounding the name has some marketing reps doing their best to make sure “minivan” is verbotten down on Flower Shop Lane.
Suzuki Swept Up In GM Daytime Running Light Recall
Though Suzuki has long since left the United States automobile market — having better luck selling Hayabusas and boat engines — its partnership with General Motors has not quite given up the ghost, thanks to a defect related to a couple of their last offerings.
FTC Launches Investigation Into Deceptive Marketing Of Biweekly Payments
The Federal Trade Commission is launching an investigation into biweekly payments sold as a product by dealership finance departments on the basis that consumers may not be getting their money’s worth with such payments.
Study: 51 Percent Of Chinese Consumers Snub Japanese Vehicles
Though Japanese automakers are doing all they can to win over Chinese consumers, a study led by Bernstein Research found anti-Japanese sentiments among 51 percent of 40,000 surveyed may be a barrier to further success in the growing market.
Barclays: GM Recall Parade To Last Into Mid-Summer
Automotive News reports General Motors’ recall parade could, according to Barclays Capital analyst Brian Johnson, last well into the middle of the summer season. The data mining conducted by the automaker’s team of 60 safety investigators on 10 sources reporting potential problems — including consumer complaints and reports from its dealership network — will likely bring more recall requests before GM’s senior executives. Johnson adds that the investigators are working on likely defects on a per-issue basis instead of per-vehicle, which may mean a number of vehicles will be called back multiple times as the recall parade marches on; he also notes that its hard to discern if recalls of past vehicles have already peaked.
Endless GM Recall Parade Sign Of Industry-Wide Action To Come
Detroit Free Press posits the endless recall parade General Motors has been leading since late February 2014 may be doing more harm than good for public perception or its bottom line. Though spokesman Greg Martin claimed the recalls were an effort to make his employer “a first-class safety organization” by focusing hard upon the consumer, a survey by AutoTrader found 51 percent of auto consumers were less confident in the industry’s overall safety record as a result of the actions by GM, up from 44 percent who thought the same five days’ earlier. In addition, the automaker will take a $400 million charge in Q2 2014 for the recalls since April 1 as of this writing, while its current stock price of $33.07 per share is a few cents above its IPO price from November 2010.
GM Ready To Introduce Seat-Belt Interlock System In Select 2015 Models
Automotive News reports General Motors is preparing to launch a belt assurance system in a number of MY 2015 vehicles later this year, including the GMC Sierra, Chevrolet Cruze, Colorado and Silverado. The system prevents the vehicle from shifting out of park until both driver and front passenger are buckled, using weight information gathered from the sensing and diagnostic module to lock the brakes and transmission until compliance is achieved. The system is currently optional, and will be provided free of charge for those who are willing to become beta testers for GM’s latest technological offering.
GM Adds 2.4M To 2014 Recall Total, Recalls More Than Sold In Five Years
Autoblog reports General Motors has issued four new recalls affecting a total of 2.42 million vehicles. As of this writing, a total of 15 million units have been recalled by GM since February, a number Jalopnik says exceeds the total number of vehicles sold by the automaker in the past five years.
Volkswagen's Cervone Returns To GM As Global Communications VP
Autoblog reports Volkswagen Group of America executive vice president of group communications Tony Cervone is returning to the GM fold as the automaker’s senior vice president of global communications. According to CEO Mary Barra, Cervone “brings an ideal mix of outside perspective and experience that compliments a deep background in GM and today’s global auto industry.” Prior to his return, he also served as the vice president of communications for United Airlines and Chrysler Group, where he spent 14 years before his decade-long previous service to GM. Cervone succeeds Selim Bingol — who resigned from the company in April “to pursue other interests,” and will report directly to Barra.
NHTSA Drops $35M Hammer On GM Over Delayed Recall
The National Highway Traffic Safety Administration has spoken: General Motors will pay the maximum fine of $35 million for its decade-plus delay of the recall of 2.6 million vehicles affected by an out-of-spec ignition switch linked to over 30 accidents and 13 fatalities.
GM Issues Five New Recalls For 2.99 Million Vehicles
And the beat goes on: General Motors has issued five new recalls for 2.99 million vehicles, bringing the number of affected GM products to a total of 13 million worldwide since late February of this year.
GM Conducts 16 Additional Tests To Confirm Temporary Ignition Switch Solution
Though it took over a decade to issue a recall over the out-of-spec ignition switch at the heart of its ongoing debacle, General Motors is being thorough with the part now, performing 16 tests — in addition to the 80-plus before them — to confirm no harm will come the way of the 2.6 million owners affected.
Great Wall's Descent A Sign Local Industry Not Ready For Primetime
Once the darling of investors amid ambitions of taking on foreign automakers such as Jeep with its line of SUVs, Great Wall Motors’ recent fall from grace on the back of the upscale Haval H8 may be a sign Chinese automakers are not yet ready to move from production of cheap transportation.
Emissions Analytics Challenges EPA Over Fuel Economy Rating Methodology
As fuel economy figures from the Environmental Protection Agency have been put under the gun for being heavily inaccurate in a few cases, a third-party testing company is offering the public real-world mileage numbers for comparison.
Consumers Shun Large SUV, Luxury Hybrids Due To Additional Costs
While hybrids like the Toyota Prius and Honda Civic Hybrid are doing well among most consumers, luxury and large SUV consumers are thumbing their nose at hybrid offerings aimed at them.
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