The Truth About Cars » Export http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 15 Jul 2014 11:23:13 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Export http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/export-news-blog/ BMW’s Southern Strategy Pays Off For All Involved http://www.thetruthaboutcars.com/2014/07/bmws-southern-strategy-pays-off-for-all-involved/ http://www.thetruthaboutcars.com/2014/07/bmws-southern-strategy-pays-off-for-all-involved/#comments Mon, 14 Jul 2014 11:00:30 +0000 http://www.thetruthaboutcars.com/?p=865729 BMW Spartanburg

Twenty years ago, BMW began building vehicles at its first North American factory in Spartanburg, S.C., a move that has paid off well for the German automaker, both against its rivals Mercedes and Audi, and as an example for the industry as a whole.

Bloomberg reports the factory is the largest exporter of U.S.-made vehicles to global markets outside of North America, besting the Detroit Three and the state of Michigan’s collective automotive production efforts as its capacity prepares to jump 50 percent to 450,000 annually as the latest member of the X Series, the full-size seven-passenger X7, comes into production.

The success of the Spartanburg facility is built upon lower labor costs — U.S. labor is 47 percent cheaper than German labor — its work flexibility, and its access to the port of Charleston, I-85 and GSP International Airport. An additional inland port in Greer, S.C., new production techniques — such as using robots and humans on the same assembly step — and massive export increases as the result of an upcoming free-trade agreement between the United States and the European Union will likely add more fuel to the plant’s continued success.

]]>
http://www.thetruthaboutcars.com/2014/07/bmws-southern-strategy-pays-off-for-all-involved/feed/ 33
BMW Brings New North American Plant To Mexico http://www.thetruthaboutcars.com/2014/07/bmw-brings-new-north-american-plant-to-mexico/ http://www.thetruthaboutcars.com/2014/07/bmw-brings-new-north-american-plant-to-mexico/#comments Fri, 04 Jul 2014 11:00:44 +0000 http://www.thetruthaboutcars.com/?p=858569 BMW Harald Kruger + Mexico President Enrique Peña Nieto

It’s official: BMW’s second North American assembly plant will be built in Mexico, with production to begin in 2019.

Autoblog reports the $1 billion USD plant will be located near San Luis Potosí, and will employ around 1,500 to produce up to 150,000 units per year, the majority of which will likely take auto trains north to the United States as noted by BMW Group board member Harald Krueger:

This decision underscores our commitment to the NAFTA region. We have been building BMW cars at our US plant in Spartanburg for the past 20 years. With a planned annual capacity of 150,000 units for the new plant in Mexico, the BMW Group will be even better positioned to take advantage of the growth potential in the entire region. The Americas are among the most important growth markets for the BMW Group. We are continuing our strategy of “production follows the market.”

As for what will be built, BMW remains silent on the subject. Early speculation points to 3 and 1 series production, as well as MINIs.

]]>
http://www.thetruthaboutcars.com/2014/07/bmw-brings-new-north-american-plant-to-mexico/feed/ 30
BMW Mexico Plant To Build 150,000 Annually http://www.thetruthaboutcars.com/2014/07/bmw-mexico-plant-to-build-150000-annually/ http://www.thetruthaboutcars.com/2014/07/bmw-mexico-plant-to-build-150000-annually/#comments Wed, 02 Jul 2014 13:00:06 +0000 http://www.thetruthaboutcars.com/?p=857249 2015-MINI-Countryman-Cooper-S-8

Though BMW may announce Thursday where in Mexico it will build its second North American plant, sources close to the matter said the plant will pump 150,000 units annually into auto trains bound for the United States.

Automotive News Europe also reports a Mexican government official claimed the new plant would come with a €1 billion ($1.36 billion USD) investment, and may either be located in the state of Hidalgo just north of Mexico City, or in San Luis Potosi in central Mexico.

The plant — following on the heels of a new Daimler-Nissan small-car factory to be built in Aguacalientes, as well as an Audi factory in San Jose Chiapa — will likely be used to build MINIs and the FWD 1 Series, with localized 3 Series assembly also speculated based on the automaker’s potential need to better compete against the U.S.-assembled Mercedes C-Class on price.

]]>
http://www.thetruthaboutcars.com/2014/07/bmw-mexico-plant-to-build-150000-annually/feed/ 12
Hydrogen Digest: July 1, 2014 http://www.thetruthaboutcars.com/2014/07/hydrogen-digest-july-1-2014/ http://www.thetruthaboutcars.com/2014/07/hydrogen-digest-july-1-2014/#comments Tue, 01 Jul 2014 12:00:20 +0000 http://www.thetruthaboutcars.com/?p=856681 DSC_0018

In today’s hydrogen digest: Toyota asks the National Highway Traffic Safety Administration for a two-year exemption on its FCV; the automaker banks on subsidies to help the FCV leave the showrooms at home and abroad; and ammonia may be the secret to hydrogen’s success as a fuel.

Bloomberg reports Toyota is asking the NHTSA for a two-year exemption from FMVSS No. 305, which requires automakers to isolate high-voltage parts in electric cars in the event of a crash. The FCV doesn’t meet this rule in full because said isolation would render the vehicle inoperable, opting instead to use insulation on high-voltage cables and related components to protect first responders and occupants from potential electrical shocks in the event of a low-speed accident. Toyota claims the protections will be at least equal to those in compliance with the agency’s rule.

Meanwhile, Automotive News says the automaker is banking on subsidies at home and in markets such as the United States and Europe to help the FCV leave the showroom toward the path of success. The ¥7 million ($69,000 USD) will need a sizable credit to match its Lexus-esque pricing when it goes on sale in Japan next April; the highest subsidy is ¥850,000 (approximately $8,400). As for the U.S., where fueling infrastructure is woefully inadequate, Toyota may instead opt to lease the FCV, details of the plan still in discussion.

Finally, Autoblog Green reports ammonia may be the way toward the hydrogen future. The Science and Technologies Facilities Council in Swindon, England have discovered a process which cracks ammonia into nitrogen and hydrogen using sodium amide as the catalyst. The lower-cost process could be conducted on-board an FCV via an ammonia decomposition reactor no bigger than a 2-liter bottle of Coke, providing enough power for “a mid-range family car” while easily handling NOx-free tailpipe emissions. The STFC is now in the process of building a low-energy demonstration system to prove ammonia’s viability as a source of hydrogen fuel.

]]>
http://www.thetruthaboutcars.com/2014/07/hydrogen-digest-july-1-2014/feed/ 59
General Motors Digest: June 30, 2014 http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-30-2014/ http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-30-2014/#comments Mon, 30 Jun 2014 13:00:14 +0000 http://www.thetruthaboutcars.com/?p=855849 GM Renaissance Center

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.

Autoblog and The Detroit News report the following vehicles are under recall:

  • 2013 – 2014 Chevrolet Cruze: Takata airbag inflator defect; 29,019 (U.S.), 4,066 (Canada)
  • 2014 – 2015 Chevrolet Silverado/GMC Sierra; 2015 Chevrolet Tahoe, Surburban/GMC Yukon, Yukon XL: Transfer case electronically switching to neutral without driver input; 392,459 (U.S.), 53,607 (Canada), 20,874 (Other Markets)
  • 2013 – 2014 Chevrolet Caprice, SS: Potential for windshield wiper motor gear teeth to become stripped; 4,794 (U.S.)
  • 2014 Chevrolet Corvette: Insufficient welding in rear shocks of FE1, FE3 suspension-equipped vehicles; 1,939 (U.S.), 33 (Canada), 82 (Other Markets)
  • 2009 – 2012 Buick Excelle GT: Potential for high-beams to remain on under extreme circumstances; 194,107 (China)

Automotive News says in 2004, Siemens VDO Automotive engineer Douglas McConnell wrote a report urging GM to look into a possible link between airbag sensors and the loss of power via the ignition cycle. The GM-commissioned report was penned a month before the first Chevrolet Cobalts left the assembly line, and shown to five engineers working for the automaker at the time, including Matthew Craig, who currently works for the National Highway Traffic Safety Administration as its chief of human injury research. Declining to elaborate on the report, representative Greg Martin stated “there were several missed opportunities for GM to properly identify the problem,” citing the Valukas report to back his statement.

Meanwhile, Bloomberg reports that Doug Parks, appointed to the post of vice president of global product programs by CEO Mary Barra, was a vehicle chief engineer for the Chevrolet Cobalt program in 2005. In that role, he was a part of the cost debate over whether or not to redesign the ignition switch that would be put into the compact, stating in a May 2005 email that changing the design “appears to be the only real, quick solution.” Parks had been invited to attend two meetings in the first half of 2005 over the issue, though nothing could be determined as far as attendance was concerned.

In the present, Kenneth Feinberg’s compensation program for those injured or killed as a result of the ignition switch will pay claims to all drivers, passengers and bystanders involved in an accident with an affected GM vehicle. Further, claimants will have few hurdles to go through in being paid, including alcohol use and lack of physical evidence. Finally, the program will have no cap on the amount of money paid in total, though no word has been given by Feinberg and his time about how much will be paid per victim and their families. Claims will be accepted beginning August 1.

Finally, Automotive News reports Delphi, already under investigation by the U.S. House Energy and Commerce Committee over its part of the February 2014 ignition switch recall, is now under the gun from the Internal Revenue Service over whether or not the supplier can be taxed as a domestic corporation. Upon emerging from bankruptcy in 2009, Delphi set up its tax base in the United Kingdom, though it retained its headquarters and executive team in Troy, Mich. Should the supplier lose its appeal with the IRS, its tax rate could rise to 22 percent effective rate, up from the 17 percent Delphi pays currently. In 2013, it paid $256 million in taxes; under the new rate, an additional $75 million would need to be paid, bringing the total to approximately $331.3 million.

]]>
http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-30-2014/feed/ 8
GAC Hopes Transformers Appearance Means US Sales Next Year http://www.thetruthaboutcars.com/2014/06/gac-hopes-transformers-appearance-means-us-sales-next-year/ http://www.thetruthaboutcars.com/2014/06/gac-hopes-transformers-appearance-means-us-sales-next-year/#comments Mon, 30 Jun 2014 10:00:50 +0000 http://www.thetruthaboutcars.com/?p=855657 trumpchi-gs5-002-1

Aside from seeing another Hasbro IP cameo transform into a weapon of mass destruction, viewers at the weekend opening of “Transformers: Age of Extinction” may have also glimpsed the first Chinese vehicle to arrive in the United States in the near future.

Autoblog reports director Michael Bay chose Chinese brand Trumpchi to be involved in the latest film upon seeing its E-jet PHEV and asking if the PHEV could be used in said film. Parent automaker Guangzhou Automobile Group Co Ltd hopes the exposure will help them when (or if) they bring a few of its Trumpchis to the U.S. by 2015 at the earliest.

The first to be sent over via container ship is the GS5 SUV, which can be had in China for as low as ¥148,000 ($24,000 USD). Power comes from either a 2-liter four-pot providing 145 horses and 128 lb-ft of torque, or a 1.8-liter turbo-four delivering 174 horsepower and 175 lb-ft of torque. The SUV can either be had with FWD or AWD, and power can be processed through a five-speed manual or automatic.

]]>
http://www.thetruthaboutcars.com/2014/06/gac-hopes-transformers-appearance-means-us-sales-next-year/feed/ 9
BMW To Announce Second North American Factory Before Summer Break http://www.thetruthaboutcars.com/2014/06/bmw-to-announce-second-north-american-factory-before-summer-break/ http://www.thetruthaboutcars.com/2014/06/bmw-to-announce-second-north-american-factory-before-summer-break/#comments Thu, 26 Jun 2014 13:00:38 +0000 http://www.thetruthaboutcars.com/?p=852977 2012_BMW_328i_sedan_--_2012_DC_1

Still mulling over where to build a second North American factory, BMW CEO Norbert Reithofer stated his company would have an answer before the automaker goes on summer break.

Automotive News Europe reports the automaker is considering countries who have signed the North American Free Trade Agreement, including Canada, United States and Mexico, for a factory where it may build the 3 and 1 series, as well as MINIs.

BMW is doing this in order to properly battle Teutonic competitors Audi and Mercedes, both of whom have or will have factories in place to meet demand, as well as better handle currency challenges by producing popular vehicles in the same market they are bought. All three are also battling it out on record deliveries for 2014, with China and the U.S. as the battleground.

Meanwhile, BMW is spending $1 billion to expand its Spartanburg, S.C. plant to 50 percent increased production capacity by 2016, when the full-size X7 will be among the 450,000 X Series SUVs to leave the line annually. The outgoing record holder in Dingolfing, Germany produced 342,000 3, 5, 6 and 7 series models in 2013.

]]>
http://www.thetruthaboutcars.com/2014/06/bmw-to-announce-second-north-american-factory-before-summer-break/feed/ 16
2015 Ram ProMaster City Revealed http://www.thetruthaboutcars.com/2014/06/2015-ram-promaster-city-revealed/ http://www.thetruthaboutcars.com/2014/06/2015-ram-promaster-city-revealed/#comments Thu, 26 Jun 2014 04:01:41 +0000 http://www.thetruthaboutcars.com/?p=848418 2015 Ram ProMaster City 01

Pulling up to the intersection of Flower Shop Lane, Contractor Boulevard and Utility Road is the Fiat Doblò-based 2015 Ram ProMaster City, the second van to emerge from Ram’s relationship with Fiat Professional.

The unibody van can be had in either Wagon or Tradesman Cargo base trim with SLT trim as an upgrade to both bases, and boasts a total of eight configurations involving security panels and rear and side windows. Cargo volume comes to 131.7 cubic feet with a width of 60.4 inches above the wheel wells, 48.4 inches in between. Height is 51.8 inches, with a step-in height of 21.5 inches, and payload capacity is 1,883 pounds.

Up front, the Tigershark 2.4-liter I4 with MultiAir2 technology puts 178 horsepower and 174 lb-ft of torque to the front wheels via its nine-speed automatic transmission. The transmission has a final-drive ratio of 3.73:1, good for improved fuel economy over the Ford Transit Connect, Nissan NV200 and Chevrolet City Express, as well as a nil-to-30 mph time of 3.7 seconds. ESC — one of 34 safety features on-board, including brake/park interlock and rearview camera — keeps it all together while making deliveries, and the van’s Uconnect helps maintain contact between provider and customer during service calls.

The ProMaster City variants will drive off the container ships to all 2,300 Ram dealerships later this year from the TOFAS plant in Bursa, Turkey, with upfitting to be handled at the Chrysler Group Transformation Center in Baltimore, Md., and Mopar contributing to the customization. No price has been given thus far.

2015 Ram ProMaster City 01 2015 Ram ProMaster City 02 2015 Ram ProMaster City 03 2015 Ram ProMaster City 04 2015 Ram ProMaster City 05 2015 Ram ProMaster City 06 2015 Ram ProMaster City 07 2015 Ram ProMaster City 08 2015 Ram ProMaster City 09 2015 Ram ProMaster City 10 2015 ProMaster City wide-ratio 9-speed automatic transmission 2015 Ram ProMaster City Chassis 2015 Ram ProMaster City 2.4-liter Tigershark engine with 9-speed 2015 Ram ProMaster City bi-link rear suspension VIper A Ram Tool Bag and Caddy is among the Mopar items available to c 2015 ProMaster City 2015 Ram ProMaster City SLT interior 2015 Ram ProMaster City SLT interior 2015 Ram ProMaster City SLT Wagon interior 2015 Ram ProMaster City badge ]]>
http://www.thetruthaboutcars.com/2014/06/2015-ram-promaster-city-revealed/feed/ 71
Rolls-Royce SUV To Arrive In 2018 http://www.thetruthaboutcars.com/2014/06/rolls-royce-suv-to-arrive-in-2018/ http://www.thetruthaboutcars.com/2014/06/rolls-royce-suv-to-arrive-in-2018/#comments Tue, 24 Jun 2014 12:00:55 +0000 http://www.thetruthaboutcars.com/?p=850810 SCA665C50EUX84409

Just like Volkswagen’s Bentley and Audi’s Lamborghini, BMW’s Rolls-Royce is entering the premium SUV game, ready to ferry oil-rich princes and the hardest of Wall Street’s power lords to their appointed rounds.

Autobild reports the premium SUV — currently dubbed the Cullinan, whose namesake comes from the 3,000-carat diamond — will debut in 2018, and will be priced between the Ghost and the Phantom at €275,000 ($340,000 USD).

Power for the aluminum SUV is expected to come from 6.6-liter V12, which may be directed through the all-wheel drive system found in the BMW 7 Series to the wheel/tire combo from the upcoming X7. A PHEV variant of the Cullinan is also in consideration.

As for where the SUV will turn up, the United States and the Middle East are potential markets.

]]>
http://www.thetruthaboutcars.com/2014/06/rolls-royce-suv-to-arrive-in-2018/feed/ 49
Daimler-Nissan JV To Build Next-Gen CLA, Unnamed A-Class At Mexican Plant http://www.thetruthaboutcars.com/2014/06/daimler-nissan-jv-to-build-next-gen-cla-unnamed-a-class-at-mexican-plant/ http://www.thetruthaboutcars.com/2014/06/daimler-nissan-jv-to-build-next-gen-cla-unnamed-a-class-at-mexican-plant/#comments Tue, 24 Jun 2014 11:00:16 +0000 http://www.thetruthaboutcars.com/?p=850794 2014 Mercedes CLA

Aside from Infiniti sharing engines with Mercedes, the Daimler-Nissan joint venture will also lead to production of the next-gen CLA and an A-Class sedan at Nissan’s plant in Aguascalientes, Mexico.

Automotive News Europe reports Daimler’s board will approve the decision within the next two weeks. Although the GLA crossover was supposed to go over to Mexico originally, insiders claim that the CLA and the unnamed A-Class will take its place.

Production is set to begin in time for exportation to the United States in 2017, with an Infiniti compact — built upon Mercedes’ FWD bones — to join the CLA and A-Class. Annual output is expected to be around 100,000 to 150,000 units.

]]>
http://www.thetruthaboutcars.com/2014/06/daimler-nissan-jv-to-build-next-gen-cla-unnamed-a-class-at-mexican-plant/feed/ 14
US Nissan Plant To Supply Engine For Euro-Special Infiniti Q50 http://www.thetruthaboutcars.com/2014/06/us-nissan-plant-to-supply-engine-for-euro-special-infiniti-q50/ http://www.thetruthaboutcars.com/2014/06/us-nissan-plant-to-supply-engine-for-euro-special-infiniti-q50/#comments Thu, 12 Jun 2014 11:00:33 +0000 http://www.thetruthaboutcars.com/?p=842922 2014 Infiniti Q50

In its fight against the big premium brands in Europe, Infiniti is calling upon some German-designed American firepower for its Japanese-made, Euro-market special Q50 sedan.

Automotive News reports the Q50 will receive a 2-liter turbo-four from an $319 million Infinti-only line inside Nissan’s engine plant in Decherd, Tenn.; total overall production is expected to reach 250,000 annually while employing 400. The same engine will be used by Mercedes in its next-generation C-Class launching this year from the German automaker’s factory in Vance, Ala.

The plan, set to begin in late June, is part of a product-sharing agreement between parent companies Renault-Nissan and Daimler, as well as a checkbox for Infiniti’s to-do global portfolio expansion list.

]]>
http://www.thetruthaboutcars.com/2014/06/us-nissan-plant-to-supply-engine-for-euro-special-infiniti-q50/feed/ 16
Alfa 4C Arrives In 86 North American Showrooms, Brings 342 Pounds Of Luggage http://www.thetruthaboutcars.com/2014/06/alfa-4c-arrives-in-86-north-american-showrooms-brings-342-pounds-of-luggage/ http://www.thetruthaboutcars.com/2014/06/alfa-4c-arrives-in-86-north-american-showrooms-brings-342-pounds-of-luggage/#comments Wed, 11 Jun 2014 10:00:11 +0000 http://www.thetruthaboutcars.com/?p=841969 Alfa-Romeo-4C-17

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.

Autoblog reports all but four dealerships will be in the United States — the remaining four are in Canada — and the majority of those will be concentrated in three of the 33 states on the initial list: California, Florida and Texas. The chosen ones were drawn from a list of existing Fiat and Maserati dealerships, and though expected cities like Los Angeles, Orlando and Austin will be among the chosen, a few big names didn’t make the first cut, including New York, Seattle and Louisville, Ky.

Meanwhile, the chosen dealerships “will have a unique staff dedicated to the brand’s premium market clientele,” per the words of Chrysler Group vice president of network development Peter Grady. The dealerships are undergoing “an intensive curriculum” to ensure the success of the 4C and limited-edition 4C Launch Edition as FCA presses forward toward its goal of over 300 Alfa dealerships in North America.

As for the 4C itself, Jalopnik says the sports car packed on an additional 342 pounds to its 2,153-pound Euro-spec frame for the U.S. market, coming into port at 2,495 pounds. Aside from the usual federalization mandates, some of the weight comes from the standard air-con and radio equipped in the U.S.-spec model.

]]>
http://www.thetruthaboutcars.com/2014/06/alfa-4c-arrives-in-86-north-american-showrooms-brings-342-pounds-of-luggage/feed/ 43
Kia Building First Mexican Plant To Alleviate Strained U.S. Production http://www.thetruthaboutcars.com/2014/06/kia-building-first-mexican-plant-to-alleviate-strained-u-s-production/ http://www.thetruthaboutcars.com/2014/06/kia-building-first-mexican-plant-to-alleviate-strained-u-s-production/#comments Mon, 09 Jun 2014 11:00:07 +0000 http://www.thetruthaboutcars.com/?p=840426 2014-kia-forte-5-door-rear-left-view

In light of high demand in the United States for its offerings, Kia will build its first Mexican plant in Monterrey to help bring additional capacity to North America.

Reuters reports the factory will open 21 months after groundbreaking, supplying a total of 300,000 vehicles annually to the United States. Production will focus on Kia’s compacts — the Forte and Rio — at first before taking on work from the brand’s sole U.S. factory in Georgia, where the Optima, Sorento and Hyundai Santa Fe are assembled, and from Hyundai’s Alabama plant, where the Sonata and Elantra are built. No word was given on when the first shovels would break the earth.

Aside from supply-and-demand issues in the U.S., Kia is likely building the Monterrey plant — to go with Hyundai’s production expansion into Chongqing, China — in order to maintain its market share around the globe. The duo together hold fifth place in the global auto sales race, a position it could lose by 2016 if no more capacity is added, according to Korea Investment & Securities auto analyst Suh Sung-moon.

The capacity limit was unofficially put in place by Hyundai/Kia chair Chung Mong-koo over two years ago, fearing his two brands would end up like Toyota in the 2000s if they expanded as aggressively as had the Japanese automaker.

]]>
http://www.thetruthaboutcars.com/2014/06/kia-building-first-mexican-plant-to-alleviate-strained-u-s-production/feed/ 24
GM Korea Faces Critical Wage Negotiations Amid Rising Won, Labor Costs http://www.thetruthaboutcars.com/2014/05/gm-korea-faces-critical-wage-negotiations-amid-rising-won-labor-costs/ http://www.thetruthaboutcars.com/2014/05/gm-korea-faces-critical-wage-negotiations-amid-rising-won-labor-costs/#comments Fri, 30 May 2014 13:00:57 +0000 http://www.thetruthaboutcars.com/?p=834401 GM Korea Bupyeong Plant

With labor costs set to rise in South Korea, wage negotiations between management and employees inside GM Korea may be “the most critical negotiation” the subsidiary has ever faced.

Bloomberg reports the rising costs are the result of the nation’s Supreme Court ruling last December that bonuses and other compensation were to be included in the base pay of an employee’s annual earnings. The ruling means a total of 13.75 trillion won ($13.5 billion USD) will be added to current labor costs, which GM Korea CEO Sergio Rocha claims won’t be good for his company, the local automotive industry, or “Korea Inc.”

Speaking of the won, Rocha also voiced his concerns about the strengthening currency as it undermines profits from exports to countries, including Australia and Germany. The won is trading around 1,020 to $1 USD. Hyundai’s Korea Automotive Research Institute issued a forecast earlier this week that the currency will rapidly appreciate during the second half of 2015, a forecast Rocha believes to be higher than GM Korea’s own prognostication:

We see an appreciation, but not at that level. Korea has many big exporting conglomerates and I don’t think the economic group of President Park will allow this to get derailed.

]]>
http://www.thetruthaboutcars.com/2014/05/gm-korea-faces-critical-wage-negotiations-amid-rising-won-labor-costs/feed/ 14
Akerson: Barra Did Not Know About Ignition Defect Before Becoming CEO http://www.thetruthaboutcars.com/2014/05/akerson-barra-did-not-know-about-ignition-defect-before-becoming-ceo/ http://www.thetruthaboutcars.com/2014/05/akerson-barra-did-not-know-about-ignition-defect-before-becoming-ceo/#comments Thu, 29 May 2014 13:00:03 +0000 http://www.thetruthaboutcars.com/?p=834025 Dan Akerson

Automotive News reports former General Motors CEO Dan Akerson proclaimed in an interview with Forbes magazine that current CEO Mary Barra had no knowledge of the out-of-spec ignition switch that led to the February 2014 recall of 2.6 million vehicles, going as far as to bet his own life on the statement. Barra added the fallout from the recall is a chance for GM to not only “do the right thing and serve the customer well through” the crisis, but “to accelerate cultural change” within the company. Akerson passed the torch to Barra in December 2013 to take time to care for his ailing wife, and has since rejoined Carlyle Group as vice chairman on its board of directors.

Within the company, Detroit Free Press reports morale is up despite the numerous recalls levied upon the automaker, according to global product boss Mark Reuss. He states the results of an internal survey among GM’s global employees are higher than those found in 2012, citing a renewed focus on corporate transparency since the recall crisis began. Finally, Reuss told reporters at an event focused upon this weekend’s Detroit Belle Isle Grand Prix that the C8 Corvette is now being developed, and did not rule out the possibility for electric and/or hybrid power for the upcoming sports car.

Speaking of GM’s recall parade, Ward’s Auto says the automaker released a document of its recall activities thus far in 2014, which is available to interested parties through a special site set up by the National Highway Traffic Safety Administration. The document focuses on recalls in the United States and North America through Q1 and Q2 2014, with the current totals as of May 21, 2014 standing at 13.8 million in the U.S. and 15.8 in North America.

In compact car news, Automotive News reports GM India will begin exporting compact and subcompact vehicles during the second half of 2014 to help better use capacity of the Talegaon plant as the local market slows down. LHD variants of the Chevrolet Beat — Spark in the U.S. — will be the first to see a trip to the docks, destined to arrive in Chile Q1 2015, a reflection of the boosted confidence in quality at the plant, according to president Arvind Saxena. GM’s utilization rate is the lowest among all automakers in India at 28 percent, contributing to an overall local industry total of 55 percent production capacity used in 2013; the automaker’s two factories produce a combined capacity of 282,000 annually.

Finally, CarNewsChina has new spy shots of the upcoming Chevrolet Aveo hatchback set to enter the market July 10. The automaker’s best-selling compact will retain the 1.4- and 1.6-liter engines of the outgoing models, with five-speed manual and six-speed automatic transmissions available to deliver between 103 and 121 horsepower to the front wheels. The hatch will follow the redesigned sedan, the latter due next month.

]]>
http://www.thetruthaboutcars.com/2014/05/akerson-barra-did-not-know-about-ignition-defect-before-becoming-ceo/feed/ 22
BMW: China To Be Largest EV Global Market By 2019 http://www.thetruthaboutcars.com/2014/05/bmw-china-to-be-largest-ev-global-market-by-2019/ http://www.thetruthaboutcars.com/2014/05/bmw-china-to-be-largest-ev-global-market-by-2019/#comments Thu, 29 May 2014 12:00:10 +0000 http://www.thetruthaboutcars.com/?p=834009 2014 BMW i3 01

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.

Bloomberg reports the automaker entered into a joint venture with municipal power company State Grid Shanghai, installing public charging infrastructure at the city’s former World Expo site as one of 46 such sites around the city to be installed by the end of 2014. The charging equipment will be compatible with products made by BMW, SAIC and BYD et al, while Tesla owners will have to use Supercharger stations instead.

Meanwhile, BMW will begin deliveries of the i3 in China this September, being sold in showrooms alongside the i8. BMW China CEO Karsten Engel says he expects only 1,000 will arrive in showrooms this year due to lack of supply, while BMW overall will sell over 400,000. The Bavarians join fellow Germans Volkswagen and Daimler in producing EVs for the Chinese market to help boost adoption among consumers. Currently, 70,000 total EVs are on the road in the nation, far behind the Chinese government’s goal of 500,000 by next year.

]]>
http://www.thetruthaboutcars.com/2014/05/bmw-china-to-be-largest-ev-global-market-by-2019/feed/ 9
MG Motor Considering Roadster, US Market In Long-Term Plans http://www.thetruthaboutcars.com/2014/05/mg-motor-considering-roadster-us-market-in-long-term-plans/ http://www.thetruthaboutcars.com/2014/05/mg-motor-considering-roadster-us-market-in-long-term-plans/#comments Tue, 27 May 2014 13:00:51 +0000 http://www.thetruthaboutcars.com/?p=832922 MG Icon

The last time MG sold roadsters in the United States, Jimmy Carter was President, ABSCAM (minus the efforts of Jennifer Lawrence, Christian Bale and Bradley Cooper) entered its final phase, and CNN had newsreaders instead of “news VJs.” Should the Sino-British brand be able to assemble a roadster worthy of those 1960s and 1970s classics, however, a new MGB might board a container ship bound for the U.S. in the future.

Edmunds reports exploratory design work for a sports car under the MG name has been placed on the 2014 schedule book in SAIC’s Shanghai design studio, with one of the possibly proposals being a roadster such as those in the brand’s history, as well as the spiritual successor found in the Mazda MX-5 Miata. The starting point for whatever is drawn up is the 2012 MG Icon concept.

In the meantime, MG Motor is looking to design and produce a wider mainstream collection, with design and engineering split between Shanghai and Birmingham, England. Eventually, this could lead to a return to the U.S. market, which is considered a long-term goal for the brand and its owner.

]]>
http://www.thetruthaboutcars.com/2014/05/mg-motor-considering-roadster-us-market-in-long-term-plans/feed/ 40
BMW May Bring MINI Production To Mexico http://www.thetruthaboutcars.com/2014/05/bmw-may-bring-mini-production-to-mexico/ http://www.thetruthaboutcars.com/2014/05/bmw-may-bring-mini-production-to-mexico/#comments Fri, 16 May 2014 12:00:07 +0000 http://www.thetruthaboutcars.com/?p=821354 2014-MINI-cooper-yellow

Already considering a new plant in Mexico for its 1 and 3 Series, BMW may also bring MINI production to the line when the factory doors open in the near future.

Automotive News Europe reports the automaker’s execs prefer Mexico for the location of the small-car plant, proclaiming higher profits under a robust euro from building lower margin vehicles in the country’s growing manufacturing base.

The decision on where the plant will go could come sometime in the second half of 2014. Should Mexico get the nod, total annual production capacity in North America would climb to 600,000 units, the bulk of which would be fueled by the Spartanburg, S.C. plant’s 450,000 units per year.

]]>
http://www.thetruthaboutcars.com/2014/05/bmw-may-bring-mini-production-to-mexico/feed/ 40
GM Moves EV Pack Production In-House, Almost Had A Commodore EV http://www.thetruthaboutcars.com/2014/05/gm-moves-ev-pack-production-in-house-almost-had-a-commodore-ev/ http://www.thetruthaboutcars.com/2014/05/gm-moves-ev-pack-production-in-house-almost-had-a-commodore-ev/#comments Thu, 15 May 2014 13:00:21 +0000 http://www.thetruthaboutcars.com/?p=820874 2014 Chevrolet Spark EV Exterior-003

Automotive News reports General Motors will bring production of the Chevrolet Spark EV’s battery pack in-house to its Brownstown Township plant in the Detroit metro area, having already moved the subcompact’s 85-kilowatt electric motors to White Marsh, Md. in 2013. The pack was originally assembled by A123 Systems before Wanxiang Group picked up the torch. No new jobs will be created as a result of the move, spokesman Dave Darovitz stating GM would add jobs “if consumer demand requires it.” The packs for the 2015 Spark EV — whose market will expand to include California and Oregon later this year — will be 86 pounds lighter than the outgoing units, and will have a storage capacity of 19 kilowatts held within 192 lithium ion cells.

Speaking of GM EVs, GoAuto reports the Holden Commodore almost had an EV variant that would have been priced for $10,000 AUD ($9,400 USD) less than the Volt. Only seven pre-production units made it out of the joint venture between Axiflux, EV Engineering, Bosch Australia, Better Place, GE Finance and Air International before Holden announced it would end all local production by 2017. The announcement, along with the collapse and withdrawals among a majority of the project’s partners, led to Axiflux acquiring EV Engineering’s assets. The company plans to focus on industrial applications for the developed technology until the right partner comes along to pick up where the project left off for an automotive joint venture.

The Detroit Press says GM’s board of directors has retained New York-based Wachtell, Lipton, Rosen & Katz to give an “independent assessment” of the automaker’s inner workings. An unnamed source familiar with the announcement says the decision “was a good governance practice” aimed to deliver sound advice to GM’s senior management. The firm is the latest third-party to join GM’s cadre of attorneys, including Anton Valukas and Ken Feinberg, as the automaker navigates the legal waters in the wake of the February 2014 ignition switch recall.

Finally, Just-Auto reports GM is planning to expand its Indian operations into a global base of operations for small-car exports to Latin America and beyond. The exports will begin with 2,000 to 2,500 Beats to Chile in October from the automaker’s factory in Talegon, with some 30,000 to 33,000 units to leave annually for Latin America within two years. GM expects Mexico to receive the biggest imports from India, with over 12,000 units shipped annually.

]]>
http://www.thetruthaboutcars.com/2014/05/gm-moves-ev-pack-production-in-house-almost-had-a-commodore-ev/feed/ 18
Great Wall’s Descent A Sign Local Industry Not Ready For Primetime http://www.thetruthaboutcars.com/2014/05/great-walls-descent-a-sign-local-industry-not-ready-for-primetime/ http://www.thetruthaboutcars.com/2014/05/great-walls-descent-a-sign-local-industry-not-ready-for-primetime/#comments Tue, 13 May 2014 12:00:10 +0000 http://www.thetruthaboutcars.com/?p=819681 Great Wall Haval H8

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.

Bloomberg reports production of the 200,000 yuan ($32,100 USD) SUV, aimed at the likes of the Volkswagen Tiguan and Ford Kuga, was suspended indefinitely earlier this month amid quality concerns regarding “knocking noises” from the six-speed automatic transmission at high speeds. The second delay of the H8 — the first occurring earlier this year after local press panned the SUV in test drives — sent Great Wall’s stock price down 17 percent, while seven analysts cut their ratings of the automaker due to perceived weaknesses in the overall local industry from the suspension. Oriental Patron Financial Group analyst Vivien Chen, one of the seven, explains:

We believe the event indicates domestic automakers haven’t met requirements to upgrade to be a high-end vehicle maker. The event definitely hurt customers’ perception of H8, and hurt company image.

The suspension is the latest stumbling block for Great Wall, having faced a recall with Chery of 23,000 units from Australia in 2012 when banned asbestos parts were found in some models. In addition, 2013 exports fell 22 percent to nearly 75,000 units due to currency challenges in Japan and South Korea. Locally, the automaker is faring better, having moved almost 112,000 SUVs over its competitors so far in 2014, though the market overall fell 2.5 percent in April to 37.1 percent for local automakers, the eight consecutive month this has occurred.

Despite the setbacks, Macquarie Group analyst Janet Lewis believes Great Wall and the rest of the Chinese automakers may be able to learn from the experience as they move forward toward selling their wares to developed markets such as the United States, though they all still have a long road ahead of them, as Sanford C. Bernstein analyst Max Warburton points out with Great Wall:

The company faces monumental challenges in trying to move up a league in the automotive world, and the problems faced by the H8 confirm Great Wall is struggling with technology. Serious questions will now be asked about Great Wall’s growth potential.

]]>
http://www.thetruthaboutcars.com/2014/05/great-walls-descent-a-sign-local-industry-not-ready-for-primetime/feed/ 18
GM Issues ECM Recall, Bids Farewell To Federico http://www.thetruthaboutcars.com/2014/05/gm-issues-ecm-recall-bids-farewell-to-federico/ http://www.thetruthaboutcars.com/2014/05/gm-issues-ecm-recall-bids-farewell-to-federico/#comments Tue, 06 May 2014 10:00:49 +0000 http://www.thetruthaboutcars.com/?p=815930 2014 Buick Enclave Exterior, Picture Courtesy of Alex L. Dykes

Autoblog reports another recall has been issued by General Motors, this time concerning 51,640 2014 Buick Enclave, Chevrolet Traverse and GMC Acadia crossovers screwed together between March 26 and August 15 of last year. The affected vehicles possess an engine control module whose software may provide an inaccurate fuel gauge reading, forcing the driver to pull to the side of the road should the tank prove empty instead of a quarter to empty. Owners have been asked to bring their affected crossover for a reflashing of the ECM to correct the issue.

As for the original recall, Automotive News reports GM engineering executive Jim Federico has retired from the company. Federico led a team of engineers in a 2012 investigation of the out-of-spec switch at the heart of the recall, specifically on whether an increase in the switch’s torque would prevent it from slipping out of the “on” position, as well as why the switch prevented sensors in affected vehicles from deploying during a crash. The engineer, who reported directly to current CEO Mary Barra in 2011 when she was global product development chief, had a hand in the development of a handful of vehicles, including the Chevrolet Volt, Opel Adam and Buick Regal. A GM spokesman said Federico’s immediate retirement is not related to the ongoing recall crisis.

Meanwhile, the publication put forth a timeline involving engineer Ray DeGiorgio’s original decision to make no changes to the switch, and his subsequent about-face months later that ultimately led to the introduction of the redesigned switch in late April 2006. In short, the atmosphere tied to the company’s “cost culture,” when paired with the financial downward spiral that led to both GM and supplier Delphi seeking emergency funding from the federal government in 2008, gave rise to DeGiorgio — responsible for the switch’s design since 1999 — originally seeing the upgrade as impossible due to the design’s fragility possibly leading to more problems in a redesign. Other proposed solutions were deemed as an unacceptable business case by Chevrolet Cobalt engineering manager Gary Altman, who discovered the problem by accidentally bumping his knee against the switch in testing. Later on, DeGiorgio sought more data into the problem despite his original verdict, working with Delphi to create the upgraded part.

The Detroit News reports the law firms of Beasley, Allen, Crow, Methvin, Portis & Miles P.C. in Montgomery, Ala. and the Cooper Firm in Marietta, Ga. are joining forces to handle 200 product liability lawsuits against GM in addition to the lawsuits already filed by the firms separately. Founding shareholder of Beasley Allen et al, Jere Beasley, proclaimed the unification necessary in order to “help GM’s victims take on the powerful automaker.” Cooper’s namesake Lance Cooper added that not only will the joint venture benefit their clients, but it will also “allow us to continue in our efforts to get at the truth of what GM knew and when they knew it, so that the American public gets answers to their questions.”

Over in Korea, Automotive News reports GM Korea is devising strategies in the wake of Chevrolet’s 2016 European and Holden’s 2017 manufacturing exits. Aside from its newly expanded design studio, the subsidiary has reduced total daily work hours from 20 to 16, which would cut annual production by 100,000 units while offsetting 150,000 lost annual sales from Europe. Other cuts include early retirement for salaried employees — 200 of 6,000 eligible having accepted thus far — and 60,000 units at GM Korea’s Gunsan plant, where the Cruze and Orlando are assembled. In return, more vehicles could be sent to Australia and other markets from Korea in place of those once manufactured in Australia come 2017 and beyond.

Finally, GM has opted to simplify its customer satisfaction survey in order to gain knowledge from its base faster. The new survey, currently in the pilot phase, is comprised of less than 10 questions, and will ask consumers to rate their dealership experience on a scale of one to five stars, as well as write an online review. If successful, the original 22-question survey would be replaced by the shorter version, both of which are used to award quarterly payouts for dealers under the GM Standards for Excellence program.

]]>
http://www.thetruthaboutcars.com/2014/05/gm-issues-ecm-recall-bids-farewell-to-federico/feed/ 13
Subaru: No WRX Hatch For U.S. Market http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/ http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/#comments Wed, 23 Apr 2014 13:00:39 +0000 http://www.thetruthaboutcars.com/?p=808482 Subaru Impreza WRX STi Hatchback

For those who want a Subaru WRX or WRX STi, but prefer the utility of the previous hatchback over the current sedan offerings, they should start breathing again, as Subaru will not be bringing such a beast to the United States after all.

Motor Trend reports that last month, WRX project manager Masuo Takatsu informed Motoring.com.au that Subaru “received strong interest from the US” for a hatchback variant, citing the 50 percent uptake by the U.S. market for the previous hatch. The statement came as a surprise to Subaru of America, who weren’t expecting anything more than the sedans:

We do not know about, nor do we have, any plans for a WRX hatch. Takatsu San is the product general manager of the WRX, but this is not something he has discussed with us.

One exchange between Subaru of America and Subaru of Japan later gave the final word: No WRX hatch will be forthcoming to the U.S. market, citing cost issues against producing both sedan and hatchback models.

]]>
http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/feed/ 67
Musk: Tesla Will Build Cars In China Within Next Few Years http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/ http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/#comments Tue, 22 Apr 2014 13:00:56 +0000 http://www.thetruthaboutcars.com/?p=807330 Model S - Tesla Motors China

Though Tesla is now just delivering new vehicles to China, CEO Elon Musk predicts his company will build luxury electric vehicles in the burgeoning market within the next three to four years.

Bloomberg reports the move to localized production would allow the automaker to sell their wares while also avoiding China’s 25 percent import tariff. Right now, a new Model S retails for $118,000 in Beijing due to VAT, shipping and import duties, compared to $71,000 in Los Angeles. Musk hopes to qualify the Model S for local subsidies to help offset costs in much the same way the luxury EV sedan receives federal tax credits back in the United States.

In addition, Tesla is expanding its Supercharger network to China, with Beijing and Shanghai among the first cities to join. No word yet as to how much the automaker is investing in the expansion.

A number of challenges lay ahead for Tesla’s move into the market, including slow adoption of electric vehicles among Chinese consumers and lack of a robust infrastructure, as well the loss of China general manager of operations Kingston Chang prior to the automaker’s entry. That said, Tesla plans to increase overall global sales 56 percent this year, moving 35,000 EVs out of the showroom in so doing.

]]>
http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/feed/ 24
Honda Pursues 70k Annual US Fit Sales http://www.thetruthaboutcars.com/2014/04/honda-pursues-70k-annual-us-fit-sales/ http://www.thetruthaboutcars.com/2014/04/honda-pursues-70k-annual-us-fit-sales/#comments Mon, 14 Apr 2014 13:30:26 +0000 http://www.thetruthaboutcars.com/?p=797498 2014-honda-jazz-2015-honda-fit-photo-gallery-medium_17

In 2008, Honda sold nearly 80,000 Fit subcompacts to the United States, and is preparing to move 70,000 annually from the lot to the driveways of America thanks to its new Celaya, Mexico plant.

Ward’s Auto reports the automaker had a difficult time hitting the milestone set in 2008 due to production constraints at home and fervent demand abroad. With the new plant, however, Honda will be able to make 200,000 Fits annually, as well as the Fit-based crossover set to begin production later this year.

As for who Honda expects will buy the 70,000+ Fits aimed for the U.S. market — aside from lifestyle bloggers — product planner Hiroaki Hamaya says the subcompact is already “capturing the highest household income and percentage of college grads.” Data from J.D. Power bears this out: Fit buyers hold an average income of $75,000 while 64 percent of them have graduated college. However, median age and percentage of buyers under 35 currently lag behind competitors such as the Ford Fiesta and Chevrolet Sonic.

]]>
http://www.thetruthaboutcars.com/2014/04/honda-pursues-70k-annual-us-fit-sales/feed/ 28
Mitsubishi Buys Laguna Ford Assembly Plant http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/ http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/#comments Tue, 01 Apr 2014 17:06:25 +0000 http://www.thetruthaboutcars.com/?p=785649 Mitsubishi_L300_front_20081009

In a push to expand Southeast Asia sales, Mitsubishi has purchased a Ford assembly plant in Laguna, Philippines for an undisclosed amount.

Automotive News reports the plant, which last saw production in 2012, will start back up in 2015 with an initial capacity of 50,000 units per year, expanding to 100,000 annually. The plant will produce both the Adventure and L300 vans.

The second plant in the automaker’s Philippine portfolio, Laguna is key to underpinning Mitsubishi’s strength in the Southeast Asia market, especially in the emerging local auto market where the automaker is second to Toyota in annual sales.

]]>
http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/feed/ 33