EXCLUSIVE: Volkswagen Diesel Emissions Fixes to Begin in US in February

According to the same source who revealed to TTAC that Volkswagen will announce next week its “TDI Goodwill Program”, the automaker will also begin to roll out fixes for affected diesel emissions cars in the U.S. in February.

The fix, which was mentioned to dealers and communicated to dealer staff, will comprise of an ECU flash. The details of the ECU flash itself and the specific vehicles to which it will apply were not provided.

It was reported previously that different generations of the affected EA189 diesel engine could receive varying levels of correction, from ECU flashes to the installation of full urea-fed SCR systems. This ECU flash could be just one of two or three fixes for Volkswagen’s dirty diesels.

Volkswagen has supposedly earmarked $4 billion to fix their diesel cars and public reputation in the U.S., which includes money the automaker will use to fund the “TDI Goodwill Program”, said the source.

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Trans-Pacific Partnership Details Released

The full text of the Trans-Pacific Partnership (TPP) was released Thursday by pact member New Zealand. The trade agreement will set out trade rules for multiple industries — including automotive manufacturing and the import/export of those vehicles — for its member states.

TPP, an expansion of the Trans-Pacific Strategic Economic Partnership Agreement, includes members Australia, Brunei, Canada, Chile, Japan, Mexico, Malaysia, New Zealand, Peru, Singapore, United States of America and Vietnam.

New Zealand leaked the details on its Ministry of Foreign Affairs and Trade website.

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Report: Hyundai To Spin Off Genesis-branded Luxury Line

Reuters reported Tuesday that Hyundai will spin off Genesis as a global premium brand to compete with German automakers such as BMW, Mercedes and Audi. The news agency quoted sources “close” to the company and said an announcement could come as early as Tuesday.

Hyundai didn’t comment on the report.

According to Reuters, Hyundai would launch Genesis with the Genesis sedan — and possibly coupe — and the Equus sedan. Genesis would add a mid-size SUV around 2019.

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Volkswagen Scrapping Plans For US Overhaul Until After Scandal

Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.

The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars.

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Is Tesla Going to Partner With China's Google To Build A Car?

Tesla could start building cars in China within two years, which could help the automaker jumpstart sales there and increase volume for the small automaker, Reuters reported.

Tesla chief Elon Musk said the car company could cut costs on cars for sale there by one-third. Normally, foreign automakers are required to partner with domestic companies before building cars in China. For example, General Motors has partnered with SAIC Motor since 1998, who also partners with Volkswagen.

Musk said Tesla is already partnering with Baidu, China’s largest search engine, to provide GPS data.

Wait. Tesla is already partnering with China’s largest search engine company? That sounds, um, interesting.

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Volkswagen Has Brilliant Plan To Sell Cars During Crisis (Hint: It's By Giving You Money)

Volkswagen is offering up to double the average amount of incentives on some of its cars to help dealers during its diesel crisis, Bloomberg reported ( via Automotive News).

Dealers, who received no-strings-attached cash from Volkswagen at the beginning of this month, are offering up to 11 percent off their cars’ stickers to help weather the storm of its diesel cheating scandal. The industry average is roughly 6.2 percent according to TrueCar.

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As GM Gets Picky About Products, Could Factories Be Next?

General Motors is getting pickier about where it does business and the products it sells. Could that also translate to where it will build its products in the future?

In a recent piece from Automotive News’ Mike Colias, the trade publication paints a bleak picture for one of General Motors’ longest running nameplates. The subject was Impala and the question was whether the car named after an African antelope, while well received by the automotive press, could survive the guillotine in a market that increasingly prefers crossovers and SUVs over sedans.

“We have a broad portfolio. But how are we going to look at what are the right vehicles to put in the marketplace? We’ll look at what makes sense and what will generate a return,” General Motors CEO Mary Barra told Automotive News earlier this month.

Naturally, Colias brought up Impala, and the reply stopped short of commitment to the car and the segment.

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General Motors Posts Largest Quarterly Profit Since Bankruptcy

General Motors announced Wednesday that third quarter, adjusted profit for the company was $3.1 billion, led by truck sales in North America and car sales in China. The net revenue was down $500 million from the same period last year, which GM says is due to currency fluctuations, but the automaker’s profits were decidedly higher.

Automotive News reported that the profit margin was the largest for GM since its 2009 bankruptcy, even after its $1.5 billion charge to settle claims related to its defective ignition switch that resulted in 124 deaths.

The automaker posted an 11.8 percent profit margin — also its largest since 2009 — and said it would end the year above 10 percent.

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Electric Saab 9-3 Lives On As Turkey's 'National Car'

The Turkish Science, Industry and Technology ministry announced last week that it had purchased the intellectual property rights — but not naming rights — to the second-generation Saab 9-3 that was most recently produced by National Electric Vehicle Sweden, according to Digital Trends.

According to the ministry, the car will be produced with 85 percent of its materials coming from the country, and will sport a face from the defunct Cadillac BLS.

The Swedish car company, who owns most of the shuttered Saab, sold the rights to the Turkish government after it stopped producing the all-electric Saab in 2014. The new car will be powered initially by some engine, according to the report, with the ministry working with NEVS to make an electric powertrain.

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Volvo Will Sell Electric Car By 2019; Plug-in Hybrid S90 Sooner

Volvo announced Thursday that it would make an all-electric car available by 2019 and offer more plug-in hybrid versions of its cars sooner, starting with the S90. Volvo already sells a plug-in hybrid version of its XC90 SUV.

The automaker’s announced plans follow news that it would make a compact crossover by 2018, likely called the XC40, which would eventually share the same architecture as its V40 and V40 Cross Country.

According to the automaker, Volvo expects 10 percent of its sales by 2020 to be of electric cars. The automaker reported 465,000 sales in 2014.

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What Does a Chinese Buick Verano GS Mean For North America?

As Opel begins its retail roll out of the new Astra across Europe, some enterprising spy shooters have found the Opel’s Chinese-market twin wearing Buick tri-shields and Verano GS badging.

And holy shit, this is about to get very, very confusing.

According to Autohome, the Verano GS — marketed as Buick Weilang GS in China — is expected to be revealed at the Guangzhou Auto Show with GM’s 169 horsepower, 1.5-liter turbocharged engine and 7-speed dual-clutch automatic transmission. The same engine will be used in North America in the new Malibu, albeit with a six-speed automatic transmission.

Now before you get too excited about those GS badges, it may not mean what you think it means, at least in this case.

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Swimming Upstream: Step 1 - Japanese Emissions and Noise Testing
The Town & Country is back at home and, frankly — no pun intended — I’m exhausted.As I had been warned, the necessary tests required an overnight stay for the van at the research facility and the two trips there and back sapped a lot of my energy. I was at the mercy of my iPhone’s navigation app — UConnect’s navigation, of course, doesn’t work in Japan — that led pell-mell all over the damn countryside without any real idea of where I was at any given moment. To make matters worse, when I wasn’t behind the wheel, there was an equally confusing three-hour train ride to deal with.Once upon a time, I might have considered this a grand adventure. Right now, I’m just tired and in need of a beer.
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Trans-Pacific Partnership Agreement Reached, Let's All Buy Subaru Sambars

Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.

The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.

The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.

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Pacific Trade Deal Could Force Japan to Sell US Cars

A possible partnership deal between North American countries and Pacific countries may include provisions to penalize Asian governments for not opening up their markets enough for U.S. automakers, Bloomberg reported.

According to the report, negotiators are close to concluding talks regarding automobiles, which has been a contentious point during the talks. The CBC reported that talks in Atlanta were at a critical stage over pharmaceutical drugs, and any eventual deal may be delayed by an upcoming G20 meeting in Turkey.

Talks regarding automobiles have been focused on sourcing local content for each car. North American Free Trade Association rules mandate that cars made within the zone have 62.5 percent of its content sourced within the zone. Asian manufacturers have pressed for lower standards for sourced content in a bid for reduced manufacturing costs.

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Did Other OEMs Know Volkswagen Was Cheating?

While working on a story about some very old cars, I stumbled upon something relevant to the latest big story in the automotive world.

I ran into a Model T collector who’s also a powertrain engineer for Ford. Seizing the opportunity, I asked him if he could tell me what he was working on (sometimes they say no). He said that he was responsible for developing computerized engine controls. Because of that expertise, I started to ask him some questions about the software program that Volkswagen apparently used to cheat on the EPA’s diesel emissions testing.

What he was willing to say and what he wouldn’t say intrigued me.

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After Missing Drivers, Australian Authorities Go After UberX Cars

Officials in New South Wales, Australia are banning UberX cars from their roads for three months after failing to prosecute their drivers, the Sydney Morning Herald reported.

Authorities charged 24 drivers with violating the state’s taxi laws, saying the UberX car-sharing service couldn’t properly monitor and vet its 4,000 drivers in Sydney. Those charges were dropped due to “evidentiary issues” and the drivers avoided fines up to $70,000.

Now the state says it’ll ban private UberX cars from the road instead.

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Audi: More Than 2 Million Cars Worldwide Have Illegal Software

Audi said that 2.1 million of its cars worldwide have been fitted with illegal software to help it cheat emissions tests, Reuters reported.

The automaker announced that multiple models including the A1, A3, A4, A5, A6, TT, Q3 and Q5 were affected by the “defeat device” uncovered by researchers, which is grinding Volkswagen to an unimaginable halt.

Roughly three-quarters of the affected Audis were sold in Western Europe, including 577,000 in Germany alone, according to the report.

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Tesla To Open Up Supercharger Network To Other EVs

Tesla owners always enjoyed rapid recharging thanks to the automaker’s Supercharger network. Soon, this privilege will be extended to other EVs.

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Discount Hunters Find Silver Lining In Volkswagen's Diesel Clouds

While some declare Volkswagen dead in their betrayed hearts over the recent emissions scandal, others see an opportunity for a discount on a diesel.

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Volkswagen Warned About Cheating As Early As 2007

While the EPA recently revealed Volkswagen’s diesels were cheating emissions tests, two newspapers learned VW was warned about cheating as early as 2007.

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Suzuki Divorces Volkswagen, Sells Stake To Porsche

Suzuki announced Saturday it will sell its 1.5 percent stake in Volkswagen to Porsche next week, finalizing the divorce between the two automakers.

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Swiss Officials Issue Temporary Volkswagen Diesel Sales Ban

Volkswagen’s pain parade marches on, this time to Switzerland, which has temporarily banned sales of the automaker’s diesels.

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Automakers' Denials of Cheating Actually Faster Than Many of Their Cars

This week, Daimler, BMW, Jaguar Land Rover and Fiat Chrysler Automobiles issued statements on how their diesel cars don’t cheat like someone else you may’ve heard of.

“The BMW Group does not manipulate or rig any emissions tests,” BMW said in a statement Thursday. “We observe the legal requirements in each country and fulfill all local testing requirements.”

BMW’s admission is notable because the automakers’ X3 diesel model was targeted by the independent commission that discovered that Volkswagen’s cars illegally polluted.

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BREAKING: Winterkorn To Be Replaced By Porsche CEO Matthias Mller on Friday (UPDATE 1)

After Volkswagen admitted to gaming emissions tests with software containing a “defeat device”, German publication Der Tagesspiegel (via Jalopnik) is reporting that Volkswagen CEO Martin Winterkorn will be replaced at the end of the week by Porsche CEO Matthias Müller.

The German outlet — the name of which translates to “The Daily Mirror” — reportedly gained the information from “supervisory circles”.

Volkswagen has not yet confirmed the rumor.

Update 1: Reuters is reporting that a Volkswagen spokesman described the report as “ridiculous.” A spokesman for Porsche said Müller is at a Volkswagen board meeting today in Wolfsburg.

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BREAKING: EPA Expands Emissions Investigation to Volkswagen 3.0-Liter V6 Diesels
The larger diesel mill is used in the Touareg, Audi A6/A7/A8/Q7, and Porsche Cayenne.
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Volkswagen Sets Aside 6.5 Billion to Cover 11 Million Vehicles With Cheating Emissions Software

Volkswagen announced Tuesday that it “plans to set aside a provision of some 6.5 billion EUR ($7.3 billion) recognized in the profit and loss statement in the third quarter of the current fiscal year,” but that the final number is subject to change as the emissions scandal unravels.

The automaker has also admitted that the software, which includes a “defeat device” to hide on-road NOx emissions, has been used on 11 million vehicles sold worldwide.

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Search For New VW Financial Officer Ongoing

Volkswagen’s search for a new finance chief to fill the role vacated by new chairman Hans Dieter Poetsch is still going strong.

While on the floor at the 2015 Frankfurt Auto Show, Reuters asked CEO Martin Winterkorn if a successor had been found. Winterkorn said he would make an announcement when the issue was resolved, stating nothing else during the interview.

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Google Hires Krafcik To Head Autonomous Vehicle Program

Former Hyundai America CEO and TrueCar president John Krafcik has been hired by Google to head the California tech giant’s autonomous vehicle program.

Per Automotive News, Krafcik will begin his new work as the program’s director in late September, while current director and former Carnegie Mellon University robotics researcher Chris Urmson will remain aboard to lead technical development.

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Audi Donating $1.1 Million for Refugee Help

You’d have to pay attention and skip the endless garbage about Kentucky county clerks and Donald Trump to hear about the unprecedented flight (and plight) of migrants in Europe. Hundreds of thousands of people are fleeing war torn countries such as Syria, and the European Union is struggling to find homes for all of them.

On Thursday, Audi said it would donate €1 million ($1.12 million) to help refugee aid organizations near its factories.

“We have been shocked by the great suffering of the refugees in Europe,” Rupert Stadler, Chairman of the Board of Management of AUDI AG, said in a statement. “People at our doorsteps are in need — and we therefore want to offer help quickly and avoid red tape.”

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In China, It's Cheaper To Kill Than It Is To Maim

Slate has a story about hit-and-run crashes in China that proves that truth is usually stranger than fiction.

Geoffrey Sant, who teaches law at Fordham and is on the board of the New York Chinese Cultural Center, details a trend among Chinese drivers to kill the people they hit with their cars to keep from paying millions in medical costs over their lifetimes. Often, the drivers plead ignorance — that they thought it was a bag of trash, or a box — and rarely serve significant jail sentences.

Incidents captured on video show drivers sometimes backing over their victims several times to insure that they’ve been killed, according to the report.

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Winterkorn Continuing At VW, But Maybe Not How He Wanted

Volkswagen will extend its contract with CEO Martin Winterkorn through 2018, Automotive News is reporting, but that two-year deal may make him too old to succeed the man he ousted, Ferdinand Piech, who left the company last year after clashing with Winterkorn.

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The Biggest Car Interior Makers Are Now Companies We've Never Heard Of

On Monday, Magna International completed its sale of its interior business to Grupo Antolin, a Spanish firm that’s relatively unknown outside of Spain.

That’s on top of Johnson Control International getting out of the interior business, along with other automakers and suppliers, as John McElroy pointed out in a well-written column for Autoblog.

Magna’s sale underscores the fact that the car-making business — and especially their interiors — isn’t exactly lucrative for most suppliers.

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Terrorists Could Make Autonomous Cars A Security Nightmare

Self-driving cars could usher in a new form of terrorism, an investment analyst writes (via SlashDot).

Alex Rubalcava, who is an investment advisor in California, says that autonomous cars would be “the greatest force multiplier to emerge in decades for criminals and terrorists.

“A future Timothy McVeigh will not need to drive a truck full of fertilizer to the place he intends to detonate it. A burner email account, a prepaid debit card purchased with cash, and an account, tied to that burner email, with an AV car service will get him a long way to being able to place explosives near crowds, without ever being there himself.”

Criminals in Denver have already used burners, pre-paid cards and fake names to rent Car2go cars for drive-by shootings.

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Marchionne Calls For GM Takeover Just Short of Hostile

We have to hand it to Larry P. Vellequette at Automotive News for getting FCA’s Don Marchionne riled up. In addition to getting Sergio talking yesterday about automakers having a history of bending the unions over, the outspoken executive has now called for a General Motors takeover via a series of hugs increasing in their intensity each time.

“There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you,” said Marchionne to Vellequette. “Everything starts with physical contact. Then it can degrade, but it starts with physical contact.”

And no, that’s not even the best part.

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Suzuki: "I Feel Refreshed" After Win Against Volkswagen

Osamu Suzuki (middle right), chairman of Suzuki Motor Corporation, can finally celebrate his biggest win. After a failed alliance with Volkswagen put Suzuki — the chairman and company — on the back foot for almost four years, the International Court of Arbitration of the International Chamber of Commerce in London has decided in the Japanese company’s favor. Suzuki will purchase back their own stock from Volkswagen.

Suzuki received news of the ruling Saturday and filed the information with the Tokyo Stock Exchange on Sunday.

“It’s good that a resolution came. I feel refreshed. It’s like clearing a bone stuck in my throat,” said to reporters gathered at a news conference in Tokyo, reports Automotive News. “I’m very satisfied with the resolution. Through it, Suzuki was able to attain its biggest objective.”

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China Will Again Control Rare Metals in Hybrids, Other Cars

Metals found in hybrid batteries, diesel fuel and headlight glass could again be subject to China’s ever-changing rules for rare earth exports.

On Wednesday, Molycorp announced that it would be suspending its mining operations of rare earth metals in California, but keep its mines in China and Estonia open for the time being.

The company, which went public in 2011, has fallen on hard times. In June, the company filed for Chapter 11 bankruptcy protection and slowing demand in China isn’t helping. However, without a mine in the U.S., much of the rare earth metal mined in the world could be under Chinese government purview, and that’s not good.

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Union Leader Blasts Obama on Pacific Trade Talks

The head of the AFL-CIO in the United States is criticizing the current presidential administration for its pursuit of a trade zone in the Pacific that could open up Asian markets to America and vice versa, the Detroit News is reporting.

AFL-CIO President Richard Trumka wrote the administration a letter saying that a free-trade agreement with countries such as Japan jeopardizes American jobs because those countries may be able to source cheaper parts from outside the negotiated area, according to the report.

“I hope it is not the case that the Canadian and Mexican negotiators are actually holding a harder line than our own government on this issue. But due to the unaccountable lack of transparency from USTR, absolutely critical decisions are being made without our input or voice. Thousands of good American jobs and an iconic American industry are at risk, and we don’t even know what our government’s negotiating position is.”

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Automakers Using Chinese, Mexican Production As Leverage With UAW

As talks with the United Auto Workers continue, domestic automakers may be using global production strategies to leverage lower wages from the massive union, Automotive News is reporting.

News that Buick may import most of its lineup from outside North America, or Ford shifting production from Michigan to Mexico, could be weighing on conversations to keep production in the U.S. and Canada at union plants.

“It’s a veiled threat to the workers,” Gary Chaison, a professor of labor relations at Clark University told Automotive News.

The automakers may be saying: “If you ask for too much, we can take the work out of the U.S. So, give us a reason not to shift more production overseas,” he added.

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Just How Bad Are the Automakers Taking a Beating in the Stock Market?

Markets around the world are down, down, down, down and down.

At the time of this writing, the Dow Jones Industrial Average is down roughly 650 points on Monday, which is more than 1,500 points off of where we were at the beginning of August. A lot of the run is fueled by fears that China is tapering off its growth ( or they’ve been making it up for a while) and that Europe is tinkering on the brink of sinking into another recession.

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Toyota Keeping China Production Plant Closed Longer

Toyota will keep a plant in China closed until at least Aug. 26 as it waits for conditions to improve after an explosion there killed more than 120 people, the Detroit News is reporting.

The Aug. 12 explosion in Tianjin, China injured 67 Toyota employees nearby and damaged 4,700 Toyota and Lexus vehicles. The plant in Tianjin, which produces Crown, Reiz, Corolla and Vios cars, is responsible for roughly half of Toyota’s annual production in China.

“We will only restart operations when we have been able to confirm the safety of our facilities and their surroundings, and when our employees feel that they can once again go to work in a safe environment,” the company said in an email, according to Reuters.

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Who's Ready to Party Like It's 2008?

Break out the champagne and 7-liter engines. Have one on us, alright?

The Wall Street Journal and Reuters are reporting that despite a mild increase in crude, oil is hovering around $40 a barrel and it’s expected to further dip in coming months to a six-year low on a global glut of oil.

The national average for a gallon of gas could drop to as low as $2, Green Car Reports says, which would be the cheapest its been since January, and could approach historical lows from 2008.

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Report: Buick Will Import Most of Its New Cars by 2016

Reuters is reporting that Buick will import most of its new models to North America from China and Europe by 2016. Only the mid-size that will eventually replace the LaCrosse and the large Enclave crossover will be built in America, both in Michigan.

Other Buick models, including the coming Cascada convertible and the small crossover Envision would come from Europe and China respectively. Production of the Verano would shift from Michigan to China, the next-generation Regal would come from Germany instead of Canada, and the Encore would continue to be assembled in Korea, but would eventually shift to China, Reuters reported from an unidentified source.

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Could Africa Support Its Own Auto Industry?

Africa may be one of the last untapped continents for automakers and one of the largest growth markets in the future. But the opportunity is now for carmakers such as Uganda-based Kiira Motors, Kenya-based Mobius Motors, Nigeria-based Innoson and Ghana-based Kantanka Motors, they say.

“The automotive industry presents one of the fiercest competitive market environments,” Kiira Chief Executive Paul Isaac Musasizi told the Wall Street Journal. “We need to remain focused, courageous and committed.”

His commitment is shared by other automakers such as Ford, who recently announced that it would produce 5,000 trucks at a plant in Nigeria for sale within the continent. Hyundai said they would invest $22 million to build an assembly plant in Nairobi and expand dealerships.

A cursory look at market penetration for automakers looks promising — no African country cracks the top 50 in vehicles per capita.

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Cadillac Slowing Its Plans to Sell Cars in Europe

Cadillac likely won’t push to sell more cars in Europe before 2020, the company’s CEO Johan de Nysschen told analysts on Tuesday.

“We’ll go to that market when we have the right powertrains and the right cars,” he said Tuesday, according to the Detroit News.

Previously, Cadillac had planned some right-hand drive models and diesel powertrains to help it gain a foothold in European markets. According to the report, Cadillac has sold only 838 cars in Europe so far this year. Cadillac wants to sell 500,000 cars globally by 2020, de Nysschen said.

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The California Air Resources Board, the Automakers, and You

Last week, Bloomberg Business profiled the one woman who may have more influence in the automaking universe for the next decade than any other person on the planet.

California Air Resources Board Chairwoman Mary Nichols’ story about running the nation’s most stringent air quality standards board is compelling, fascinating and terrifying — if you’re an automaker.

The state’s ambitious goal of reducing greenhouse gases 80 percent by 2050 is met by an equally ambitious — and onerous — goal for automakers: don’t sell new cars with internal combustion engines in California by 2030.

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Kia Prepping New Sports Car by 2020; Hyundai Isn't

Kia’s chief in the U.K. says the automaker will have a new sports car by the end of the decade, Autocar is reporting. Hyundai probably won’t.

The two reports roughly detail a global business case the Korean is making for a small, lightweight sportscar that would be sold worldwide and further positioning for the brands.

According to Kia’s chief in the UK Paul Philpott, the car would be based on knowledge gleaned from the Stinger GT4 concept car.

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Lexus Will Plant 2-liter Turbo Four Into RC Coupe

Lexus will take the turbocharged four cylinder from the NX 200t and plant it in its RC coupe, the automaker announced today.

The RC 200t, which will make 245 metric horsepower and 258 pound-feet of torque, has only been announced officially for sale in Europe — for now. It joins the RX 200t, NX 200t and IS 200t in the Lexus lineup as the fourth model to sport the engine on the Old Continent.

Parent-company Toyota has quickly adopted the turbo four as its preferred replacement for its aging V-6 in other cars, including the Camry.

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Jeep Posts Biggest Ever Quarterly Sales Total in US

Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.

Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.

The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.

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Ford Posts $1.9B Second Quarter Profit, Largest Since 2000

Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News.

The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for more money and offering fewer incentives, despite recent reports of F-150 incentives topping nearly $11,000 in some places.

Ford said revenues in North America surged 10 percent, which helped the company beat Wall Street’s expectations.

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GM to Develop Global Car With China-based SAIC Motors

General Motors will invest $5 billion to build a global line of cars with Shanghai-based SAIC Motors that will be sold in Brazil, China and other emerging markets, the automaker announced Tuesday.

The cars won’t be sold in the United States, according to the statement.

The global vehicles will go on sale starting in 2019 and the automaker expects the line to eventually produce roughly 2 million cars annually.

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Hyundai May Bring Subcompact Crossover, but It Won't Be Creta

Hyundai is looking to jump into the subcompact crossover fold in the States with the Nissan Juke, Honda HR-V, Chevrolet Trax and everyone else, but it won’t be with the Creta, Edmunds is reporting.

The Creta recently went on sale in India, but executives in America told Edmunds that it wasn’t the right fit for U.S. buyers.

“We have decided to wait a little bit longer to get the right vehicle,” said Dave Zuchowski, president and CEO of Hyundai Motor America.

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EU Gains Not Enough to Stave Opel Production Reductions

Recent sales growth in the EU hasn’t been kind to Opel as the group is forced to reduce hours at two German plants.

According to Automotive News, Opel will cut production of the Adam and Corsa at Eisenach and Insignia and Zafira Tourer at Ruesselsheim. The move is due to Opel’s exit from the Russian market and what the automaker calls “moderate” gains in the rest of Europe.

However, within the EU, overall sales for all automakers are up 8.2 percent in the first six month of this year and 14.6 percent in June, according to ACEA.

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Magna Completes $1.9B Acquisition of Transmission-maker Getrag

Supplier and sometimes-assembler Magna International will buy German transmission-maker Getrag for roughly $1.9 billion, the Detroit News is reporting.

The deal would firmly plant Canadian-based Magna International as the world’s second-largest parts supplier behind Robert Bosch GmbH and ahead of ZF, which recently purchased TRW Automotive for $12.4 billion earlier this year.

“The trend among the suppliers is that we now have to be bigger as the auto makers go to us to do more for them,” Magna Chief Executive Don Walker told the Wall Street Journal on Thursday.

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The Future of Roads May Be in Lego-type Construction

Dutch company VolkerWessels is proposing a new type of roadway construction that could make it easier to remove, replace or resurface streets in the near future, Gizmodo is reporting.

The engineering firm is working with the City of Rotterdam to test its early concept. The streets are prefabricated and dropped into place. The roadways use a below-surface tunnel to house infrastructure like water, cables and utilities.

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Nissan May Be Ending Rogue Select Sales in U.S.

Nissan announced yesterday that the current-generation Rogue would be concurrently produced for U.S. sales in Japan, Korea and the automaker’s Smyrna, Tennessee plant, which had us wondering: What about the Rogue Select?

According to a Nissan spokesman, the Rogue Select (which is essentially the last-generation Rogue) won’t be built alongside the current-generation Rogue in Japan, which may spell the end of the Select model in the states.

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Tommi Mkinen Leading Toyota's 2017 WRC Team

Rally legend Tommi Mäkinen will lead Toyota Gazoo Racing’s World Rally Championship team when it begins competition in 2017, the automaker announced today. Mäkinen was announced as team principal, which will race a Yaris-based car, for the WRC team.

Toyota boss Akio Toyoda, who will be the team’s chairman, said the 51-year-old Mäkinen was an ideal fit for the team.

“Tommi has abundant experience and fresh ideas for vehicle development, both of which will be valuable assets to us. With Tommi behind us, Toyota will forge ahead with our return to the WRC and also our efforts to make ever better cars,” Toyoda said in a statement.

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Google Sends Self-Driving Lexus Hybrids to Test in Texas

Google’s autonomous cars have made it to the Lone Star state for testing, The Detroit News is reporting.

A self-driving Lexus 450h prototype was recently dispatched to Austin, Texas for testing on that city’s streets. The cars are used to map roadways and signs for future autonomous vehicles to use. Google said the car has begun to drive itself after testing in Texas it will be sending another Lexus to Austin soon.

The search-engine giant likely selected the Texas capital because a free-range Lexus fit in very well with that city’s culture.

“We also want to learn how different communities perceive and interact with self-driving vehicles, and that can vary in different parts of the country,” an official with Google told The Detroit News.

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Police Releasing Former Toyota Executive Jailed for Pain Pills

Former Toyota communications chief Julie Hamp will be released from jail Wednesday, according to Bloomberg News (via Kyodo News).

Hamp was jailed June 18 for allegedly mailing herself 57 Oxycodone pills, which are illegal in Japan. She resigned her position with Toyota on June 30 as one of the global automaker’s highest-ranking female executives.

The reason for Hamp’s release is unclear. Bloomberg reported that prosecutors in Japan didn’t have enough evidence to indict Hamp on the charges. Kyodo News (via translator) reported prosecutors determined Hamp’s actions weren’t malicious and her resignation may have been enough punishment.

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With New Honda CEO, Possible FCA Partnership?

New Honda CEO Takahiro Hachigo told media Monday that the automaker wouldn’t aim for a specific global sales figure to drive growth and would be open to partnerships with other automakers, Automotive News reported.

The speech also emphasized sharing global manufacturing resources within Honda’s six regional divisions and to create “challenging products.” (Which may or may not — probably not — mean “Challenger.”)

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Julie Hamp No. 10 in PR Week's "Power List", No. 1 in Badly Timed Awards

Resigned Toyota PR chief Julie Hamp was named to PR Week’s “Power List” two weeks after being busted for allegedly importing illegal prescription painkillers into Japan last month. Hamp allegedly received 57 pills of Oxycodone in a box labeled “necklaces” at Narita Airport in Tokyo.

The list, which ranks her No. 10, was released the same day Hamp resigned her position and included an editor’s note at the top explaining the awkward timing.

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  • MaintenanceCosts Other sources seem to think that the "electric Highlander" will be built on TNGA and that the other 3-row will be on an all-new EV-specific platform. In that case, why bother building the first one at all?
  • THX1136 Two thoughts as I read through the article. 1) I really like the fins on this compared to the others. For me this is a jet while the others were propeller driven craft in appearance.2) The mention of the wider whitewalls brought to mind a vague memory. After the wider version fell out of favor I seem to remember that one could buy add-on wide whitewalls only that fit on top of the tire so the older look could be maintained. I remember they would look relatively okay until the add-on would start to ripple and bow out indicating their exact nature. Thanks for the write up, Corey. Looking forward to what's next.
  • Analoggrotto It's bad enough we have to read your endless Hyundai Kia Genesis shilling, we don't want to hear actually it too. We spend good money on speakers, headphones and amplifiers!
  • Redapple2 Worthy of a book
  • Pig_Iron This message is for Matthew Guy. I just want to say thank you for the photo article titled Tailgate Party: Ford Talks Truck Innovations. It was really interesting. I did not see on the home page and almost would have missed it. I think it should be posted like Corey's Cadillac series. 🙂