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GM facing expanding list of lawsuits, investigations over handling of defective ignition switch recall.
by Paul A. Eisenstein on Apr.24, 2014
A replacement GM ignition switch. The maker has notified 1.4 million owners to start scheduling repairs.
The U.S. Securities and Exchange Commission is the latest government agency to be probing the way General Motors handled the recall of 2.6 million vehicles due to an ignition switch defect linked to the deaths of at least 13 people.
The SEC probe came to light through the automaker’s quarterly SEC filing accompanying its annual earnings report. Neither GM nor the SEC would subsequently comment on the investigation.
Your Source!
The SEC investigation comes on top of separate probes by the U.S. Justice Department, the National Highway Traffic Safety Administration, and committees of both houses of Congress. General Motors is conducting its own internal probe, meanwhile, spearheaded by the former U.S. Attorney who oversaw the government’s scrutiny of the collapse of financial firm Lehman Brothers.
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Tags: GM Recall, auto news, car news, gm ignition switch lawsuit, gm ignition switch recall, gm justice dept, gm news, gm sec, mary barra, paul a. eisenstein, paul eisenstein, sec investigation of gm, sec probe gm, thedetroitbureau
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“A trying first 100 days.”
by Paul A. Eisenstein on Apr.24, 2014
A portrait of GM CEO Mary Barra from Time.
It was “a trying first 100 days” for General Motors CEO Mary Barra, writes one influential automotive analyst, but perhaps it’s paying off. The daughter of a GM “shop rat” who worked her way up to the top from a starting job as a co-op student has been named to the annual “Time 100” list of the world’s most influential people.
The first woman to run a major automaker, Barra was appointed to her post late last year following the unexpectedly early retirement of her predecessor, Dan Akerson. The appointment generated a wave of positive headlines, even a tweet from the likes of celebrity singer Bette Midler.
Leadership!
But while Barra got off to a seemingly strong start – two GM models sweeping the North American Car and Truck of the Year awards in early January – she was quickly caught up in one of the worst scandals GM has suffered in years, the inexplicably delayed recall of 2.6 million vehicles equipped with faulty ignition switches.
Yet, unlike some top executives who try to stay out of the spotlight, Barra quickly put herself directly under it, repeatedly apologizing for GM’s mistakes and making it clear the buck stopped at her desk on the top floor of the maker’s Renaissance Center headquarters along the Detroit River.
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Tags: auto news, barra congress, barra most influential, barra time 100, barra time magazine, car news, gm ceo, gm ceo mary barra, gm ignition switch recall, gm news, mary barra, paul a. eisenstein, paul eisenstein, thedetroitbureau
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New products, new technologies needed to get "butts in seats."
by Paul A. Eisenstein on Apr.24, 2014
Mike Accavitti with a prototype Acura TLX.
Considering the cost of bringing a car to market, every new vehicle is important, but few more so than the 2014 Acura TLX making its first public appearance at the New York Auto Show this week.
Acura has scored a pair of solid hits with its two SUV models, the RDX and bigger MDX, but as the third sedan in the Acura line-up, the TLX is meant to fill a critical gap between the Japanese maker’s entry-level ILX and its recently added flagship, the RLX. It’s no easy challenge, going up against a range of major competitors such as the Mercedes-Benz E-Class, BMW 5-Series and Lexus GS lines.
In the Know!
The TLX is “critically important,” suggests Mike Accavitti, the long-time Chrysler executive who was recently named head of the Acura division. “We have to start somewhere,” he adds.”
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Tags: 2014 ny auto show, Acura NSX, acura SH-AWD, acura design, acura news, acura ny auto show, acura technology, acura tlx, auto news, car news, honda news, mika accavitti, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Maker suffers 85% drop in January - March earnings.
by Paul A. Eisenstein on Apr.24, 2014
GM managed to keep itself in the black for the first quarter, after covering hefty recall-related expenses.
After writing down more than $1.3 billion to cover the cost of a burst of embarrassing recalls, General Motors saw its earnings for the first quarter of 2014 fall by more than 85%, it reported today, though it was still able to squeak out a modest profit.
The $125 million net earnings, at 6 cents per share, came in under the 9 cents consensus among top industry analysts. Some were even more bearish, Brian Johnson, of Barclays Plc, forecasting a one cent loss for the January to March quarter. But the crisis that began with the recall of 800,000 vehicles due to a faulty ignition switch in mid-February – and which ultimately saw GM call back nearly 7 million vehicles by the end of March – is likely to take its toll for some time to come.
By the Numbers!
“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market,” said GM CEO Mary Barra, in a statement aimed at putting a positive spin on the results. “Our focus remains on creating the world’s best vehicles with the highest levels of safety, quality and customer service, while aggressively addressing our business opportunities and challenges globally.”
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Tags: GM Recall, auto news, car news, chevrolet image, gm earnings, gm first quarter 2014, gm ignition switch recall, gm image, gm net, gm news, gm profit, gm q1 2014 earnings, mary barra, paul a. eisenstein, paul eisenstein, thedetroitbureau
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GM likely to take major hit as it pays for nearly 7 million recalls.
by Paul A. Eisenstein on Apr.23, 2014
GM CEO Mary Barra will see a sharp decline in earnings for her first full quarter as CEO.
The numbers aren’t likely to look very good when General Motors and Ford Motor Co. release their first-quarter earnings results this week, both makers expected to post sharp declines from year-ago levels.
Ford had signaled a likely slide late last year as a result of the numerous new product launches it will have in 2014. But GM’s anticipated downturn is likely to be significantly greater than first forecast as a result of its on-going recall problems – an issue expected to continue to haunt new CEO Mary Barra for some time to come.
Breaking News!
A consensus of industry analysts forecasts GM will deliver a meager 9 cents per share in earnings for the first three months of 2014, and Brian Johnson, an automotive analyst with Barclays Plc is even more bearish, predicting the U.S. giant will go a penny into the red. Prior to the announcement of GM’s initial ignition switch recall in mid-February, Johnson was looking at a profit of 20 cents, which would still have been down sharply from the 67 cents per share it earnings during the first quarter of 2013.
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Tags: Alan Mulally, GM Recall, Mark Fields, auto news, car news, ford earnings, ford news, ford profit, ford q1 2014 earnings, gm earnings, gm ignition switch recall, gm news, gm profit, gm q1 2014 earnings, mary barra, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Luxury maker betting China could become its largest market.
by Paul A. Eisenstein on Apr.23, 2014
Lincoln is betting it can gain ground in China by focusing on its dealer experience.
It once vied with rival Cadillac for dominance in the huge U.S. luxury car market, but the last two decades have been tough for Lincoln. Sales have steadily slid to the point that some anticipate parent Ford Motor Co. might eventually abandon the once-grand marque.
Lincoln has rolled out several new products over the last two years, and it plans to add at least two more by 2016, but that’s a fraction of what rival Mercedes-Benz has in store – at least one all-new or completely updated product every three months through the end of the decade.
Auto Show News!
While Lincoln officials acknowledge they can’t keep up with that product blitz, they’re far from ready to admit defeat. But while they continue to struggle to find ways to lure more American buyers back to the brand, they’re looking East, towards China, to gain some much needed momentum.
“It’s strategically important for us to go to China,” said Matt Vandyke, Lincoln’s global director, a few days before the Ford luxury brand made its official debut at the 2014 Beijing Auto Show.
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Tags: 2014 beijing auto show, Lincoln sales, auto news, car news, china car sales, china luxury cars, ford news, lincoln beijing auto show, lincoln china, lincoln mkx, lincoln mkx concept, lincoln news, matt vandyke, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Move comes as GM notifies 1.4 million motorists replacement ignition switches are ready.
by Paul A. Eisenstein on Apr.23, 2014
The 2014 Chevrolet Impala was named Best in Class by Consumer Reports.
Federal investigators have launched a preliminary probe of the 2014 Chevrolet Impala following a report that the big sedan’s emergency braking system might activate without warning or driver input.
The probe comes as General Motors shakes up its internal product development system in a bid to catch potential safety problems as early as possible. GM is facing a number of separate investigations stemming from the handling of a recall now involving 2.6 million vehicles equipped with defective ignition switches linked to at least 13 deaths.
On Top of the News!
On Wednesday, GM said it had notified 1.4 million U.S. motorists they could schedule repairs for vehicles covered by the ignition switch recall.
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Tags: 2014 chevrolet impala, 2014 chevy impala brakes, auto news, car news, chevrolet impala, chevy impala, gm ignition switch recall, gm ignition switch repairs, gm news, impala brake investigation, nhtsa chevy impala brakes, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Maker hopes to catch potential safety problems earlier.
by Paul A. Eisenstein on Apr.23, 2014
GM Product Chief Mark Reuss unveiling the Corvette Z06 during the 2014 Detroit Auto Show.
General Motors continues to shake up its senior management ranks in the wake of the ongoing ignition switch recall scandal, this time ousting its global engineering chief and splitting the job into two new posts with a goal of catching potential safety problems earlier on.
The “retirement” of 55-year-old John Calabrese comes shortly after GM’s directors of Human Resources and Public Relations announced their departures amidst a crisis that could see the automaker face criminal charges levied by the Justice Department for the decade-long delay in ordering a recall of defective ignition switches linked to at least 13 deaths. GM has also been accused of delaying another recall while federal regulators have launched an investigation into braking problems involving the company’s new Chevrolet Impala sedan.
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“We feel that just an organizational change is not going to solve everything,” said Mark Reuss, the GM veteran who took over as global product development director late last year. “We have to have the right people with the organization, with the right leadership and with the right processes in place. … We know we can do it and we are going to do it.”
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Tags: GM Recall, Mark Reuss, auto news, car news, gm firings, gm ignition switch, gm ignition switch recall, gm news, gm safety, gm shake-up, mary barra, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Battery carmaker launches sales, outlines plans for supercharger network.
by Paul A. Eisenstein on Apr.22, 2014
Tesla delivered its first eight cars in China today. Building the vehicles in China is a possibility in the future, according to CEO Elon Musk.
Tesla Motors has launched what could become its biggest gamble yet, delivering its first cars in China and hinting at plans to produce cars in the booming Asian nation.
The Silicon Valley start-up is already the second best-selling producer of battery-electric vehicles in the U.S. and has already launched sales of its Model S in Europe, but it is betting its timing is right to tap into burgeoning demand in China where the government is desperately pushing for a shift to battery power as a way to reduce the country’s endemic smog problems.
On Top of the News!
Tesla today delivered its first eight Model S sedans to Chinese customers, CEO Elon Musk telling reporting he hoped the maker could sell 5,000 of the vehicles in China this year, though he quickly cautioned the number is “just a guess.” (more…)
Tags: China battery electrics, EVs in China, Musk news, Tesla CEO Elon Musk, Tesla China, Tesla building in China, Tesla's Musk, TheDetroitBureau.com., china electric vehicles, elon musk, paul a. eisenstein, tesla, tesla news, thedetroitbureau
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Show car a Jetta-based version of VW CC model.
by Paul A. Eisenstein on Apr.22, 2014
Volkswagen calls the NMC a "midsize" concept, but it's based on the same platform as the compact Golf and Jetta models.
As that old baseball adage goes, you can’t tell the players without a scorecard. Well, we’re betting you’d be able to pick out Volkswagen’s New Midsize Coupe Concept in the line-up.
This striking new design might just as readily be called the Baby CC, as it’s a somewhat downsized version of the German maker’s current, coupe-like sedan, and could very well join the VW line-up in the near future. But it’d likely be more of a compact than midsize, the show car sharing the same MQB modular platform as the current Volkswagen Golf and next-gen Jetta models.
What a Concept!
Making its debut at this week’s Beijing Auto Show, the NMC is clearly a size class down from the Volkswagen Passat sedan, at a total length of barely 15 feet. So, how does it qualify as a midsize?
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Tags: 2014 beijing auto show, auto news, car news, concept cars, new midsize coupe, paul a. eisenstein, paul eisenstein, thedetroitbureau, volkswagen new midsize coupe concept, vw beijing auto show, vw concept, vw news, vw nmc
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