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India Fines 14 Carmakers for Overpricing Spare Parts

Follows move by Chinese regulators; US also looking at price fixing.

by on Aug.29, 2014

Indian automaker Tata, which makes the ultra-low-priced Nano, faced the biggest fine.

Regulators in India have levied more than $400 million in fines against 14 local and international automakers accusing them of intentionally overcharging for spare parts.

The move follows similar anti-monopoly actions in China that saw makers such as Mercedes-Benz accused of overpricing as a way to boost profits at the expense of vehicle owners.

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As many as 20 million Indian consumers were impacted by the practice of boosting prices for spare parts and aftermarket accessories, according to the country’s Competition Commission. The practice was made worse by the “denial of market access” to independent repair shares seeking both factory-authorized parts and diagnostic tools.

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Voice Recognition is the #1 Problem for New Car Buyers

“Sorry, I couldn’t understand.”

by on Aug.29, 2014

Programming systems like the Cadillac CUE can be a nightmare due to faulty voice recognition.

Call it a communications breakdown. If you’ve ever tried to use your car’s voice recognition system to dial a phone number only to have it change the radio station to a disco channel, you’re not alone. A new J.D. Power study reports that voice recognition has become the single largest source of complaints about new vehicles.

And problems pairing smartphones to a vehicle’s Bluetooth system is the second most common problem, according to the J.D. Power 2014 Multimedia Quality and Satisfaction Study.

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“Voice recognition and device connectivity are often inherent to the technology design and cannot be fixed at the dealership, creating a high level of angst among new-vehicle owners,” said Mike VanNieuwkuyk, executive director of global automotive at J.D. Power.

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Cadillac to Reveal New ATS-V at LA Auto Show

New performance model will be first from Caddy to go with a V-6.

by on Aug.28, 2014

The ATS is going high performance with a V-Series option that will be on display at the LA Auto Show in November and in showrooms in early 2015.

Cadillac will introduce an all-new performance model at the L.A. Auto Show in November, the new ATS-V sedan expected to target the formidable compact luxury segment benchmark the BMW M3.

It will be the first new V-Series model introduced in several years, and precedes the next-generation CTS-V model that Cadillac is also developing. That model is expected to debut early next year as one of several key new offerings the maker is currently working on, including an all-new flagship sedan.

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The new ATS-V will be powered, according to several Cadillac sources who have spoken to TheDetroitBureau.com, by a version of the twin-turbo V-6 that was launched recently for the new CTS V-Sport, and is expected to match or slightly exceed the power of the latest BMW M3, which also uses a twin-turbo V-6 powerplant. (more…)

Kia Announces $1 billion Mexican Assembly Plant

Factory set to open in 2016; add much-needed production capacity.

by on Aug.28, 2014

The new plant is expected to produce several small models, including a version of the Kia Forte Koup.

Desperate to add more much-needed production capacity, Kia Motors will become the latest automaker to open a new assembly plant in Mexico.

Intended to serve markets up and down the Americas, the $1 billion plant will begin operations in just two years, and will be tooled to eventually build as many as 300,000 vehicles annually. The facility is expected to produce a number of different compact models, according to the Korean carmaker, though it did not identify specific plans yet.

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The factory will become one of a growing list of automotive assembly plants operating in the Spanish-speaking country, Mexico already on target to become the sixth-largest auto-producing nation in the world as makers such as Nissan, Audi and now Kia set up shop or expand existing production facilities.

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Volvo Planning at Least 9 New Models

Coupe, convertible offerings on hold - for now.

by on Aug.27, 2014

The new 2016 XC90 is the lead-off for a broad product assault planned by Volvo through 2019.

It’s been 13 years since Volvo last updated its big XC90 SUV, an interminable wait in an industry where customers are demanding faster and faster product updates.

The maker this week finally rolled out a new version of the XC90, which will reach showrooms around the world next April. The big ute is the first all-new model developed under the ownership of Zhejiang Geely Holdings, the Chinese carmaker that purchased Volvo from Ford Motor Co. in 2010 – but it won’t be the last.

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Volvo is planning to introduce at least nine all-new models between now and 2019, company officials announced during interviews that followed this week’s preview of the XC90. The focus will be on the XC family of utility vehicles, more traditional wagons, and sedans, those officials stressed. But they also hinted that more products, targeting specialty niches, could follow. (more…)

Once-Shuttered GM Spring Hill Factory to Become Major Manufacturing Center Again

Maker plans to produce next-gen Cadillac SRX and all-new family of small engines.

by on Aug.27, 2014

Once considered the future of the U.S. auto industry, the former Saturn plant in Spring Hill, Tennessee, is getting a $233 million makeover to build the Cadillac SRX and possibly other vehicles.

It was originally hailed as the future of the U.S. auto industry, only to be mothballed in the wake of General Motors’ bankruptcy and the abandonment of the maker’s failed Saturn brand. But GM is about to make a major investment in its Spring Hill, Tennessee assembly plant that will turn the sprawling complex into one of its most flexible and promising factories.

The announced of a $233 million investment comes a quarter century after the Spring Hill plant first opened as the home of the once-promising Saturn brand. While Saturn was one of four brands abandoned as GM emerged from its 2009 bankruptcy, the powertrain portion of the Tennessee complex will produce a critical new line of small gasoline engines, while the adjacent assembly line will be re-tooled to handle upcoming midsize models.

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While GM isn’t ready to tip its hand on all its plans, it did confirm that Spring Hill will assemble the next-generation version of Cadillac’s popular SRX crossover-utility vehicle. At least one other midsize model is expected to go into the factory which will be flexible enough to handle a wide range of products in the future. (more…)

Volvo Set for Downsized Powertrain Revolution

Swedish maker switches to 4-cylinders; will add 3-cylinder and a pair of Plug-ins.

by on Aug.27, 2014

Volvo has high hopes for the 400-horsepower T8 plug-in hybrid powertrain it will offer on the XC90.

The all-new XC90 SUV that made its debut this week marks the beginning of a major shift in powertrain strategy by Volvo Cars, the Swedish automaker abandoning V-6 and V-8 power in favor of more advanced 4-cylinder gas, diesel and hybrid technology.

But Volvo is set to reach even further, company officials reveal, in its bid to balance performance and fuel economy. It also is developing a new line of 3-cylinder engines, and will soon add not just one but two different plug-in hybrid powertrains to its line-up.

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“A few years ago, I would have said this was a risky strategy,” admitted Lex Kerssemakers, the maker’s global product strategy chief, but he added he is “confident” about the approach as buyers around the world migrate to smaller, more fuel-efficient engines even in big SUVs and crossovers like the 2016 Volvo XC90.

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Volvo Likely to Begin Importing from China in 2015

Maker will focus on stretched version of new S60 model.

by on Aug.26, 2014

The Volvo S60L sedan, which is assembled at the new Volvo plant in Chengdu, could be the first vehicle exported from China to the U.S.

Despite years of promises, Chinese automakers like Chery Automotive and BYD have yet to follow through by importing their products to the United States. But the long drought is expected to come to an end next year, and the first automaker to ship a Chinese-made vehicle to the U.S. now appears likely to be Volvo Cars.

Purchased by China’s Zhejiang Geely Holdings in 2010, Volvo is now operating two factories in the fast-growing Asian country, with most of the capacity earmarked for local buyers. But the Swedish brand’s chief executive officer says it is preparing to export at least one of those products next year.

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“A very likely candidate” is the long-wheelbase version of Volvo’s S60 sedan, the maker’s CEO and President Hakan Samuelsson said in response to a question from TheDetroitBureau.com, adding that a target date “sometime in 2015” is “absolutely likely.” (more…)

Volvo Unveils New XC90; Bets its Future on Redesign

Volvo to offer plug-in hybrid, new safety and connectivity features.

by on Aug.26, 2014

The new Volvo XC90 shown with the Swedish maker's President & CEO Hakan Samuelsson.

With today’s unveiling of an all-new XC90, Volvo Cars is giving the world a good look at the many changes that will likely determine the future success of the Swedish automaker.

While echoing the basic shape of the old Volvo XC90, the new ute adopts new, and more luxurious proportions, as well as a more sophisticated interior. But many of the most significant changes aren’t as readily apparent. They include an all-new platform, or architecture, that will serve as the foundation of many future Volvo products.

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The new ute, due to market next April, also gets a sophisticated, tablet-style touchscreen display to control everything from its infotainment system to its climate control. The 2016 Volvo XC90 also will see the maker introduce a wide arrange of new Drive-E powertrains, including Volvo’s new plug-in hybrid system designed to deliver both performance and fuel economy, depending on what mode it’s operating in.

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Over 100 File Death Claims With GM Compensation Fund

Number could still rise.

by on Aug.26, 2014

One of the replacement GM ignition switches.

General Motors continues to say it knows of 13 deaths connected to the faulty ignition switches it used in a wide range of vehicles recalled earlier this year, but the special victims’ compensation fund it has set up has already received claims linked to the death of at least 100 people.

While it remains to be seen if the fund will approve payment to all those who’ve filed, it is also expected the number will continue to increase in the weeks and months ahead.

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GM has said it anticipates paying out from $400 million to $600 million in connection with the fund, which was set up under intense pressure from safety regulators, federal lawmakers and consumer groups after the maker acknowledged it knew about the ignition switch problem for as much as a decade before ordering the February recall of 2.6 million vehicles.

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