GM Shareholders Unflappable As Recall Repairs Begin This Week
In spite of General Motors losing $3 billion in shareholder value over four weeks since the recall crisis began, Bloomberg reports investors are holding onto their shares in the belief the automaker will recover from the debacle. Though questions about the delay persist, most shareholders are pleased with how CEO Mary Barra is guiding her company through the maelstrom.
Other factors in the massive stock decline include overseas challenges and weaknesses in product lines, including bringing European profits into the black, while Chevrolet’s Silverado fights Ram’s offerings in order to regain its traditional place in the monthly sales charts.
GM Adds Clinton Media Director To Crisis Team
In an interview with New York Magazine, consumer advocate Ralph Nader said General Motors CEO Mary Barra has “a good opportunity” to make serious changes to the corporate cost culture that gave rise to the 2014 ignition recall crisis. Suggestions include appointing an independent ombudsman with a direct line to the president and CEO for engineers who need to speak out about possible problems without having to go through “cost-concerned bosses,” as well as holding accountable all involved in any cover-up of any potential product issues.
Nader also believes the federal government should go after personal prosecutions of those tied to the current recall, but adds that unless the media keeps putting the pressure on the Justice Department to do so, the only thing that could come is a settlement in the vein of the one reached between the agency and Toyota earlier this month.
Mitsubishi Outlander PHEV Arrives In UK Showrooms Minus Premium Price
Already available throughout Europe, the Mitsubishi Outlander PHEV is now just arriving in United Kingdom showrooms at a post-credit price tag of £28,249 ($47,000 USD).
March 2014 US New Car Fuel Economy Average Climbs To 25.4 MPG
The University of Michigan Transportation Research Institute says the U.S. new car fuel economy average climbed 0.3 mpg to 25.4 mpg in March.
BAIC Seeks To Acquire US, European Brand
Looking to expand its global presence beyond its native China, Beijing Automotive Group announced they would like to acquire a “mid to high-level brand” in either Europe or the United States, and already has a list of potential brands in mind.
Department of Energy Looking At Suppliers For Revamped Fuel-Efficiency Loan Program
Established in the waning days of the Bush Administration, the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing Program lent a total of $8.3 billion (out of the budgeted $25 billion) to Nissan, Tesla, Ford and Fisker, yet has not been able to make new loans for a number of reasons since 2011.
That status, however, is about to change.
Tesla Appealing NJ Direct Sales Ban Ruling
With the Ides of April fast-approaching before direct sales come to an end, Tesla filed an appeal with the New Jersey Superior Court asking to overturn a government ruling that banned the automaker from directly selling vehicles to consumers in its two New Jersey stores.
Barra Testifies Before US Senate Subcommittee
On the second and final day of testimony before Congress, The Detroit Press reports the U.S. Senate Commerce, Science and Transportation subcommittee fired several volleys at General Motors CEO Mary Barra over her lack of answers or greater action during the ongoing GM ignition recall crisis.
Leaked Documents Link Anti-Union VW Incentive Offer To TN Governor's Office
Leaked documents linked to the United Auto Workers battle for the Volkswagen plant in Chattanooga, Tenn. point to a connection between Governor Bill Haslam and the German automaker regarding a $300 million incentive in exchange for over 1,300 jobs at a proposed SUV plant within the state.
Barra, Friedman Testify Before US House Committee
General Motors CEO Mary Barra and National Highway Traffic Safety Administration acting administrator David Friedman both testified before the U.S. House Energy and Commerce Committee in the first of two congressional hearings focused on GM’s 2014 recall of an ignition switch whose issues the automaker nor the agency chose to act upon in a swift manner in the decade leading up to the recall.
Marchionne's FCA Looks To Sell 6 Million Units
Should Sergio Marchionne’s Fiat Chrysler Automobiles be able to deliver on his expectations, the merged automaker will be able to move 6 million units annually, enabling FCA to become a player on the global stage.
Aston Martin Teaming Up With Daimler For Premium SUV
First Bentley, now Aston Martin wants an SUV for their lineup, with plans to team up with Daimler to make that vision reality.
Tesla Leads Charge To Replace Side Mirrors With Cameras
Should Tesla and the Alliance of Automobile Manufacturers — including General Motors, Toyota and Volkswagen — be successful in their petition with the National Highway Traffic Safety Administration, new cars could soon have cameras instead of side mirrors.
GM Recalls 1.3 Million Additional Vehicles As Barra Heads To D.C.
The Detroit News reports General Motors CEO Mary Barra boarded a commercial flight from Detroit to Washington, D.C. Sunday in order to prepare for two separate hearings before Congress regarding her company’s handling of the ongoing 2014 recall crisis. While in the nation’s capital, she also met with 25 family members whose relatives were killed in crashes linked to the ignition switch behind the recall.
GM Adds 824k Vehicles To Recall
Over the weekend, General Motors called back an additional 824,000 vehicles whose ignition switches could slip out of the “on” position, cutting power to the engine, brakes and air bags. According to Automotive News, the recall now affects Chevrolet Cobalts and HHRs, Pontiac G5s, and Saturn Ions and Skys made between 2008 and 2011. The reasoning is that while those vehicles were made after the switch was improved in April 2006, some 90,000 vehicles may have received the faulty switch during repairs.
Tesla Stays In NY, Loses Key China Exec
Automotive News reports Tesla and Greater New York Automobile Dealers Association reached a compromise agreement over the weekend that would allow the EV automaker to keep their five stores while prevent Tesla or any other auto manufacturer from establishing more direct-sale stores in the state. In the words of Governor Andrew Cuomo:
Today’s agreement reaffirms New York’s long-standing commitment to the dealer franchise system, while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales.
UAW Sees Fourth Consecutive Increase In Membership
Under the leadership of outgoing president Bob King, the United Auto Workers have seen their rolls increase to 9,000 members in 2013, marking the fourth consecutive year of increases for the union.
GM Call Center Sees Double, Upton Prepares For Hearing
Automotive News posits an earlier recall would have prevented a majority of fatalities tied to the 2005 – 2007 Chevrolet Cobalt’s ignition switch. According to their research, seven of the eight deaths occurred after April of 2006, when the improved switch was quietly introduced into the supply stream; one of the four fatalities linked to 2003 – 2007 Saturn Ions was found to have occurred after the April 2006 improved part introduction, as well.
Among other findings, only one of the eight Cobalt fatalities did not factor alcohol or seat belts into the equation, two of the eight deaths — one under “Old GM,” one under “New GM” — led to lawsuits that were settled prior to the February 2014 recall, and that some of the families found in their research never had any contact with the automaker.
Ally Financial Files IPO, US Treasury Sells More Shares
Three years in the making, Ally Financial — formerly GMAC — has filed for an IPO that could net as much as $2.7 billion for the United States Treasury.
BlackBerry Fights Google, Apple To Maintain Connected-Car Lead
Though BlackBerry owns a sliver of the smartphone market they once dominated, its QNX-based connected-car systems may be the best weapon they have in maintaining its lead over the companies that drove the Canadian company nearly out of the smartphone business.
UK Diesels 21 Percent Cleaner Than A Decade Ago
A study issued earlier this month by the Society of Motor Manufacturers and Traders has concluded that modern diesel engines in the United Kingdom are 21 percent cleaner than that were a decade earlier.
Gov. Perry Pushing For Direct Sales In Texas To Attract Gigafactory
With the possibility of bringing Tesla’s Gigafactory — and its 6,500 jobs — to Texas, Governor Rick Perry is actively pushing for legislation which would do away with the direct-sales ban currently preventing the EV automaker from doing more than presenting their wares to local customers.
Tesla Business Model Reconsidered In NJ, Talking Point In 2016 Presidential Election
Even though the door on Tesla’s direct sales model appeared to be closed in New Jersey, the Garden State is reconsidering its position just as the automaker’s way of doing business could find itself a major talking point in the 2016 run for the White House.
GM To Go Before Senate Panel, As Allegations Of Hardball Tactics Surface
General Motors CEO Mary Barra and National Highway Traffic Safety Administration acting director David Friedman will testify before the United States Senate on April 2 about their respective parties’ handling of the ongoing GM ignition recall crisis just as two senators introduced a bill expanding public access to safety filings made by all automakers to the federal government.
Chrysler 200 Earns EPA Rating Of 18 MPG City, 29 MPG Highway
While Fiat Chrysler Automobiles has yet to announce fuel economy for the new 2015 Chrysler 200, the Environment Protection Agency inadvertently leaked figures for one configuration, the V6 AWD model.
Congressional Hearings Loom As Switch Swap Raises Questions At GM
General Motors is facing two separate lawsuits related to failures of the ignition switch recalled last month, while also preparing to bring their case before the U.S. House Energy and Commerce Committee next month, led by a representative who honed his skills upon Firestone.
Meanwhile, reports of a quiet swap between the defective ignition switch and an improved switch in 2006 – a swap that may have violated internal protocols -may have serious repercussions for GM and now-bankrupt supplier Delphi.
Finally, a test drive gone wrong results in a GMC Yukon left to burn, whose prompt investigation is only the beginning of a long learning process in how GM handles safety in the future.
Chrysler Hellcat V8 Could Unseat Viper V10
For over a year, Fiat Chrysler Automobiles has been working on a Hemi V8 dubbed the Hellcat, which set to debut in a revised Dodge Challenger. However, the Hellcat could prove a challenge to the SRT Viper’s V10, possibly unseating the venerable monster from the throne.
BMW To Bring X7 SUV To Spartanburg
BMW’s Spartanburg, S.C. plant, home of the X Series, will soon have a new member joining the family, in the form of the X7 fullsize SUV.
GM Rallies Rentals, Braces For Further Investigation
General Motors has issued a new recall for 355 vehicles, while also facing a possible lawsuit by an investor over “immorality”. GM may also face a new probe involving the automaker’s bankruptcy and its relation to the original recall that thrust GM into the headlines, just as the agency responsible for investigating the problem at GM faces an audit from the Department of Transportation.
Saturn Ion Steering Woes Focus Of NHTSA Probe
One of the handful of models already under recall by General Motors over a defective ignition switch, the Saturn Ion faces additional scrutiny by the National Highway Traffic Safety Administration over failures traced to the vehicle’s electric power steering.
Diesels, Refinement Key To Kiefer's Vision Of Future GM Engine Development
General Motors head of global powertrain and former Delphi senior vice president of powertrain systems Steve Kiefer aims to steer engine development toward a brighter future, one influenced by his love for diesels, quietness and refinement.
Volvo Drive-E Modular Engines Lay Foundation For Future Hybrids
Beginning with the 2015 model year, Volvo’s S60, V60 and XC60 will come with the automaker’s new Drive-E Volvo Engine Architecture family of small three- and four-pot gasoline and diesel engines, laying the foundation for PHEVs down the road.
Fewer Than 4,000 Green Calif. HOV Stickers Remain
For potential California PHEV owners, time may soon run out to obtain the Green Clean Air Vehicle Sticker issued by the California Environmental Protection Agency for HOV lane use, as only 3,770 of the 40,000 stickers remain available.
BMW Looking To Increase US Production For Sales Record
Chasing after a sales record and a 10 percent rise in pretax profit for 2014, BMW looks to increase output at the automaker’s Spartanburg, S.C. plant.
GM Unveils New, Clean-Sheet Ecotec Family
General Motors has unveiled a new generation of their Ecotec engine family, whose 11 three- and four-pot powerplants will find a home under the bonnets of 27 models by 2017.
GM Hires New Safety Czar As Barra, Service Bulletins Go Under The Microscope
General Motors CEO Mary Barra has appointed executive Jeff Boyer to the newly created position of Vice President, Global Vehicle Safety. Meanwhile, Barra and her company’s use of service bulletins in lieu of recalls will both go under the microscope, with the new CEO likely to testify before Congress next month.
GM Recalls 1.55 Million More, Investigations, Fence-Mending Ongoing
As the recall of 1.76 million General Motors vehicles over a faulty ignition switch — a recall possibly prompted by a Georgia lawyer’s own dealings — continues to hammer away at the automaker’s “new” image, and with dealers doing all they can to mend fences between GM and its customers, three separate recalls have been issued to a total of 1.55 million vehicles.
Toyota Dominates Consumer Reports Used Car Recommendations
Several Toyota models dominated this year’s Consumer Reports list of used car recommendations, with 11 out of 28 overall belonging to the automaker’s Scion, Lexus and namesake brands.
No Replacements For MINI Coupe, Paceman, Roadster
BMW’s MINI may not replace the Coupe, Paceman or Roadster when their day comes, opting to focus on three “pillar” models that allow the brand to be “more relevant to more people,” according to MINI head of product management Oliver Friedmann.
BMW, Mercedes Downsize Number Of Architectures For Future Vehicles
In order to accelerate development of new models while also cutting costs, BMW and Mercedes-Benz are downsizing the number of architectures to be used in future vehicles in their respective lineups.
Average Car Price Affordable Only To Washington, DC Customers
Unlike the average Beltway insider, a report by Interest.com claims the majority of medium-income American households in 24 of 25 cities studied cannot afford the average new-car price of $32,086.
Datsun To Enter Russian Market April 4
Following its global grand opening in India, Nissan’s low-cost Datsun brand will open its doors to the Russian market April 4 in Moscow.
Ellinghaus: Cadillac Could "Easily Flourish" In Australian Market
Sometime in the future, Cadillac global marketing boss Uwe Ellinghaus believes Cadillac could enter the Australian market, being able to “easily flourish” under the proper conditions established on top of the goodwill the brand already has in the country.
Tesla Hires Renault-Nissan Communications Director
In preparation to enter the Chinese market while battling state governments of direct sales, Tesla has hired Renault-Nissan communications director Simon Sproule to the role of vice president of communications and marketing for the EV automaker.
Yajnik: Loan Delinquency Increase A Return To "Norm"
As fears of increasing auto loan delinquencies are giving some lenders pause, Capital One Auto Finance president of financial services Sanjiv Yajnik calls said increase a return to “norm,” with pent-up demand and greater competition will maintain availability of credit.
UAW Will Appeal NLRB Decision Giving Anti-UAW VW Workers Voice
Angered by the decision made by the National Labor Relations Board to allow anti-UAW Volkswagen workers to defend the results of an election held last month at the VW plant in Chattanooga, Tenn. on whether or not to be represented by the United Auto Workers, the union has vowed to appeal.
2015 Hyundai Sonata Caught Nude In Home Plant
New spy photos of the 2015 Hyundai Sonata have emerged showing the upcoming sedan fully nude in its home plant in South Korea.
US Justice Dept, House Panel To Investigate GM Ignition Recall
Things are going from bad to worse for General Motors amid the fallout related to the long-delayed recall of 1.6 million vehicles worldwide over a faulty ignition switch installed between 2003 and 2007, as both the U.S. Justice Department and a House panel plan to conduct separate investigations into the matter.
Tesla Vacating New Jersey Market Amid Direct-Sales Ban
In the wake of the New Jersey Motor Vehicle Commission’s decision to enact new rules banning direct sales of vehicles by automakers, Tesla may have no other recourse than to vacate the local market come April 1.
Japanese Automakers Find New Export Base, Opportunity In Mexico
Within four months of each other, Honda, Mazda and Nissan have opened new factories in Mexico, taking advantage of the opportunities within the nation’s automotive industry to grow a new export base into the United States, Latin America and Europe while also gaining ground in the rapidly expanding local market, all in direct challenge to the Detroit Three and other automakers on both sides of the border.
Jeep Considering Power-Retractable Top For Fourth-Gen Wrangler
Rumored to be in the early stages of development, the fourth generation of the Jeep Wrangler could have an power-retractable top as one of a few items designed to attract more customers to the off-roading legend.
Tax Refunds, Easy Credit Boost Used Car Prices
A combination of income tax refunds issued in January and February with accessible financing have boosted used-car prices overall in the first two months of 2014.
Australians Favoring Imports Over Domestics In Study
In a study conducted by Roy Morgan Research, one in eight Australian consumers prefer locally made vehicles for their next new-car purchase today, down from one in four a decade earlier.
Winterkorn: T-ROC Will Be Built If Customers Want It
Volkswagen Group CEO Martin Winterkorn is optimistic for the future of the T-ROC, with the automaker willing to build the crossover if the customers want it.
Manley: Renegade Will Appeal To U.S. Customers Despite Italian Roots
According to Jeep boss Mike Manley, the Italian-built Renegade will appeal to the off-road brand’s United States customer base despite its Italian roots, especially in Trailhawk form.
Volvo, Geely Aiming For BMW, Mercedes With A-Segment Lineup
Volvo, with parent company Geely, is developing a lineup of premium A-segment vehicles aimed at the BMW 1 Series and Mercedes A-Class.
New York 2014: BMW X4 Photos, Specs Revealed
Ahead of its debut at the 2014 New York Auto Show, BMW has revealed photos and specs of their X4 crossover.
Mitsubishi Publishing Real-World MPG Sign Of Openness With Customers
In a sign of openness toward its customers, Mitsubishi will begin publishing real-world MPG figures for their entire lineup, beginning with the Outlander PHEV.
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