Posts Tagged ‘auto news’

GM Tops Power’s Initial Quality Survey for 1st Time

High-tech problems are now car buyers’ biggest headache.

by on Jun.19, 2013

Hot Wheels...the Camaro was one of eight segment winners for GM in the 2013 IQS.

After years lagging the imports, General Motors has surged to the top of the charts in the 2013 J.D. Power Initial Quality Survey, the most influential measure of vehicle quality during the first months off the showroom lot.

The new study also reveals that, on the whole, the quality of this year’s cars, trucks and crossovers actually declined a bit from 2012 – a decline largely the result of design-related problems that, for the most part, can’t be resolved at the dealership. Issued related to the latest infotainment systems and other high-tech devices are the single largest source of these buyer headaches, according to J.D. Power.

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On the positive side, “Manufacturers are doing a lot better when it comes to engines and chasses and other mechanical systems,” explained Dave Sargent, the head of automotive research for California-based J.D. Power and Associates. “Most of the problems people are now reporting involve the latest technology.”

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Has “Motorization” in America Hit its Peak?

New research increases concerns that U.S. is losing love affair with the automobile.

by on Jun.19, 2013

Fewer Millennials seem to be falling in love with the automobile, studies show.

We’re coming up on the centennial of the moving assembly line, the seminal event that helped put America on wheels.  Today, there are more cars than licensed drivers in the U.S. – but a new study adds to growing concerns that America’s love affair with the automobile might be coming to an end.

There have been a number of recent studies that seem to support that argument, including research by the University of Michigan Transportation Research Institute, or UMTRI, that Millennials are generally waiting longer to get their licenses than prior generations – if they get them at all.

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But a new UMTRI study raises even more flags, noting that the number of vehicles on U.S. roads peaked in 2008 and has been steadily declining since then.

That could be the result of a weak economy, concedes author Michael Sivak. “On the other hand,” he quickly cautions, the trend was already in motion even before 2008, the rate of growth slowing before the automotive market dipped into its worst downturn since the Great Depression. That just could “reflect other societal changes that influence the need for vehicles,” according to Sivak.

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Tesla Announces Model S Recall

Mis-welded seats can come loose in crash.

by on Jun.19, 2013

The Tesla Model S suffers its first recall.

While it may be a painful process, one of the real measures of whether an automaker has made it into the big leagues is when it has to recall some of its products.

And while the announcement by Tesla is miniscule compared to the 2.7 million Jeeps being recalled – or covered by a less “service action” – it’s nonetheless a significant step for the California-based battery-car start-up.

Tesla Motors issued a terse release early this morning announcing it would recall 1,228 of the Model S battery cars it has built during the second quarter due to a defect in the mounting bracket of the rear seat.

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“This reduces our confidence that the left hand seat back will be properly retained in the event of a crash,” wrote Tesla founder and Chief Executive Elon Musk in a statement posted to the company website.

According to the National Highway Traffic Safety Administration, a passenger could be seriously injured if a seat were to come loose in a crash.

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Jeep Recall Much Smaller than NHTSA Demanded

Only 1.5 mil vehicles under recall; another 1.2 mil subject to limited “service action.”

by on Jun.19, 2013

Almost 1.2 million Jeep Grand Cherokees built between 1999 and 2004 will be subject to a "service action," not a recall.

About 1.2 million Jeeps originally listed as part of a controversial recall demanded by federal safety authorities have been effectively excluded from the compromise between Chrysler and the National Highway Traffic Safety Administration, TheDetroitBureau.com has learned.

A potential showdown between the Detroit maker and NHTSA was narrowly averted on Tuesday, hours before a deadline for Chrysler to either accept or reject the recall of 2007 older Jeeps the government was demanding. NHTSA claimed the Grand Cherokee and Liberty models were at risk of catching fire in rear-end collisions, a problem the government linked to at least 51 reported deaths.

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After initially saying it was not going to recall the vehicles – insisting there was no defect – Chrysler reversed course on Tuesday afternoon and announced a settlement.  Initial reports indicated the maker had essentially caved to NHTSA’s demands and would recall the 2.7 million SUVs, including Grand Cherokees sold between 1993 and 2004, and Liberty models marketed between 2002 and 2007.

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Tesla May Offer Battery-Swap Option for Model S

CEO Musk hints of recharge option faster than filling a gas tank.

by on Jun.18, 2013

Tesla Motors CEO Elon Musk with a Model S sedan.

Barely a month after announcing plans to set up a high-speed network of “Supercharger” stations across the U.S. and Canada, Tesla CEO Elon Musk is hinting the start-up electric vehicle maker might also adopt a battery swap system that could allow owners of the new Model S sedan to have a freshly charged battery pack “faster than you could fill a gas tank.”

Tesla has been exploring the idea of swapping batteries for a number of years.  The approach is, at least conceptually, quite simple. When one battery pack runs down, simply switch it out for another, much like changing batteries in a flashlight. But, in practice, it’s a lot more difficult than it might seem.

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“Live pack swap demo on Thurs night. Seeing is believing,” tweeted Tesla Musk this week. The South African-born executive is fond of using Twitter to alert friends, fans and the media of the company’s plans, including news of the expanded Supercharger network.

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Chrysler Caves to Feds – Will Recall 2.7 Million Jeeps

Bows to court of public opinion but maintains there’s no defect.

by on Jun.18, 2013

A 2004 Jeep Grand Cherokee, one of the 2.7 million vehicles covered by the recall.

In a sudden and unexpected shift, Chrysler has decided to acquiesce to a demand by the National Highway Traffic Safety Administration and recall 2.7 million older Jeeps federal regulators claim are at risk of catching fire in rear-end collisions.

The maker has issued a statement advising that it “will conduct a voluntary campaign with respect to the vehicles in question that, in addition to a visual inspection of the vehicle will, if necessary, provide an upgrade to the rear structure of the vehicle to better manage crash forces in low-speed impacts.”

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As recently as this morning, Chrysler officials were signaling that they would reject the recall request even if that meant squaring up with NHTSA in court. But a senior Chrysler source acknowledged that the maker came to recognize it might be able to win that battle yet still could lose in the court of public opinion.

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European Car Sales Plunge to Their Lowest Level in 20 Years

Is the glass finally half-full?

by on Jun.18, 2013

Even with its European Car-of-the-Year, the Golf, Volkswagen took a sales hit last month.

With the continent’s economy still in free-fall, European car sales tumbled to their lowest level for May in two decades, according to the industry’s trade association.

Passenger car sales dropped 5.9% for the month compared to year-earlier levels.  At just 1.042 million vehicles, that’s the lowest recorded by the 27-country European Union since May 1993.  For the calendar-year-to-date, trade group ACEA reports EU sales are down 6.8%, to 5.07 million.

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With rare exception – sales actually rose slightly in April – the European auto market has been sharply sliding for the last half-decade, a situation worsened by the debt crisis that has threatened to plunge Portugal and several other countries into default and even lead to the demise of the common currency, the Euro.

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GM Planning $11 Bil Investment in China

Ford doubling Chinese engine production.

by on Jun.18, 2013

GM CEO Dan Akerson during a visit to China.

General Motors and its Chinese partners expect to invest $11 billion in China between now at the end of 2016 as part of an ambitious expansion plan in what is now GM’s second-largest global market.

GM Chairman and Chief Executive Officer Dan Akerson told analysts during a meeting at the maker’s Milford Proving Grounds that the company is financially strong enough to maintain a steady investment cadence in the years to come. The planned investment includes spending more than $11 billion in China over the next three-and-a-half years.

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GM isn’t the only maker upping its investment in China, now the world’s largest national automotive market.  During a visit to China, Ford Motor Co. CEO Alan Mulally announced the maker will double the size of its Changan Ford Engine Plant near Chongqing. The $500 million investment will bring capacity to 400,000 powerplants annually.

“This kind of expansion is nearly unprecedented, and it really reflects the level of commitment we have to this region,” said Mulally.

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Jeep Facing Deadline –Potential Legal Battle — Over Recall

Maker so far rejecting fed regulators’ demands.

by on Jun.18, 2013

Chrysler is signalling it will decline a NHTSA request to recall 2.7 million Jeep Libertys and Grand Cherokees.

Barring a last-minute retreat, Chrysler is expected to formally advise the National Highway Traffic Safety Administration that it won’t recall 2.7 million older Jeep models federal safety regulators claim are at risk of catching fire in rear-end collisions.

That would set off one of the biggest showdowns ever between the government and an automaker, though even if the case goes to a jury the real test might come through the court of public opinion.  While Jeep parent Chrysler has won some support from those who see NHTSA over-reaching its authority, the automaker is already facing pressure from consumer groups and Jeep owners worried about their safety.

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NHTSA set the showdown in motion earlier this month when it declared that older Jeep Grand Cherokee and Jeep Liberty models with gas tanks mounted behind their rear axles are at risk of catching fire in rear-end collisions.  The government claims 51 people have been killed in fiery crashes resulting from what it describes as a design defect.

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First Look: BMW 4-Series

Bigger, bolder – and more expensive.

by on Jun.18, 2013

The new BMW 4-Series is longer, lower and wider than the outgoing 3-Series Coupe.

You might get a sense of “déjà vu all over again,” as Yogi Berra was fond of saying, checking out BMW’s all-new 4-Series.

Well, yes, the design is new, and so is the name, but the latest addition to the Bavarian maker’s rapidly proliferating line-up is really just a replacement for the old BMW 3-Series Coupe and, to follow, the 3-er Convertible.  It reflects the approach first adopted with the 6-Series in which premium 2-door and cabriolet models adopt an even model name, sedans an odd number.

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That out of the way, the new BMW 4-Series is a sleek and well-proportioned addition that is getting kudos for a more muscular and well-balanced designed than the old 3-Series Coupe, with a fastback roofline that is clearly reminiscent of the bigger and more expensive 6-Series.

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