British car manufacturing accelerates sharply in April

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An Aston Martin Vanquish is inspected: the company plans to invest £20m in extending its headquarters and production plant in Gaydon, Warwickshire. Photograph: Christopher Furlong/Getty Images

British car manufacturing sharply accelerated in April, with the number of cars made in the UK up by a fifth.

A total of 133,437 cars were built in UK factories last month, a 21.3% increase compared with April last year and the biggest monthly rise since July 2012 according to the Society of Motor Manufacturers and Traders.

It followed a 12% rise in March, and Mike Hawes, the SMMT's chief executive, said UK factories were beginning to feel the benefit of new models rolling of the production line as well as recovering demand in Europe.

"The thriving nature of the UK car manufacturing industry was evident in April as output grew at its highest rate for almost two years. New model introductions are fuelling growth, while Europe â€" which currently accounts for around half of exports â€" is now seeing an upturn in demand.

"As investments continue to be realised, we expect further rises in the coming months; good news for the thousands of suppliers and employees across the country that rely on this industry."

The figures were published as Aston Martin, the luxury British sports car manufacturer favoured by James Bond, announced plans to invest £20m to extend its factory and global headquarters in Gaydon, Warwickshire. Around 250 new jobs will be created in engineering, manufacturing and commercial roles over the next few months, the company said. The investment is part of a five-year plan to spend more than £500m on developing new models.



Aston Martin also revealed it has received more than 500 applications for just 12 places on its latest apprenticeship round. It will also hire 14 new graduates in 2014.

Almost 80% of the cars made in Britain last month were built for export, a welcome statistic for George Osborne who is hoping the UK economy will develop a greater reliance on manufacturing and exports and a lesser reliance on debt fueled spending and financial services.



Over the first four months of 2014, British factories built 538,240 cars, a 6.9% increase compared with the same period last year.

http://www.theguardian.com/business/2014/may/29/uk-car-manufacturing-accelerates-april

Tesla's Musk says Space Taxi could ferry astronauts by 2016

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Tesla CEO Elon Musk, also the CEO of Space Exploration Technologies Corp., left, sits with guests inside the Manned Dragon V2 Space Taxi in Hawthorne, Calif. The Dragon V2 is capable of sending cargo and up to seven crew members to the International Space Station.

Photo credit: BLOOMBERG

May 30, 2014 - 8:47 am ET

LOS ANGELES (Bloomberg) -- Space Exploration Technologies Corp., the private rocket maker controlled by Tesla Motors CEO Elon Musk, said its reusable Space Taxi capsule will be ready to take astronauts to the International Space Station within two years.

The closely held company’s Dragon V2 spaceship can carry as many as seven people and as much as four tons of cargo, Musk said late Thursday at the SpaceX factory and headquarters in Hawthorne, Calif. It’s also being designed with legs and re-entry rockets to let it land anywhere back on Earth, he said.

“We actually expect to be able to transport crew by 2016, a year before NASA needs it,” said Musk, a 42-year-old billionaire who leads electric-car maker Tesla Motors Inc. “We feel fairly confident we’ll be ready.”

The event comes as Musk fights to expand SpaceX’s business with the U.S. beyond NASA missions and get a piece of the $67.6 billion Defense Department budget for satellite launches. 



Since the retirement of NASA's space shuttle fleet, Russia’s Soyuz rockets are the sole method of getting astronauts into space. While Russia is currently charging as much as $76 million per mission, SpaceX intends to be able to deliver passengers for less than $20 million, Musk said.

“It’s not only that the Russians are taunting us. They are massively overcharging,” he said.

NASA funding

SpaceX is one of four companies receiving NASA funding to develop rockets and capsules to take astronauts to and from the International Space Station. The others are Boeing, Jeff Bezos’s Blue Origin LLC and Sierra Nevada Corp.

SpaceX has received more than $2.5 billion in NASA funding since 2008 for commercial crew and other ventures, including cargo supply flights to the space station, according to agency figures.

SpaceX won $440 million from NASA in August 2012 to develop a version of the Dragon capsule to carry passengers. Development costs for the company’s first capsule and the futuristic V2 version displayed Thursday will run to as much as $1 billion to get NASA certification, Musk said.

Tests by the U.S. space agency to certify the V2 for astronaut missions begin this year, SpaceX said.

The California company sent its first Dragon craft to the International Space Station in May 2012 and its latest cargo mission was completed May 18 when a Dragon capsule returned to Earth carrying 3,500 pounds of cargo and scientific samples.

Contact Automotive News

http://www.autonews.com/article/20140530/OEM02/140539996/teslas-musk-says-space-taxi-could-ferry-astronauts-by-2016

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'I bet my life' that Barra was unaware of safety defect, Akerson says

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THE GM RECALL



Former GM CEO Dan Akerson denies in a Forbes interview that his successor, Mary Barra, "was thrown under the bus" just before the automaker's recall crisis.

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DETROIT -- Former General Motors CEO Dan Akerson says in a new published report that his successor, Mary Barra, didn't know about a deadly safety defect in GM small cars when she took the job in January.

In an article that appears on Forbes' Web site today and is scheduled for publication in the magazine's June 16 issue, Akerson is quoted as saying "of course not" after being asked whether Barra "was thrown under the bus" by being handed the job just before GM decided to recall cars for a defective ignition switch now linked to 13 deaths.

“Mary has said it: The moment she became aware of the problem, as I would expect, she confronted it," Akerson said in his first public comments about the ignition switch issue, which led to the recalls of 2.6 million cars.

Akerson announced in December that he would retire Jan. 15, about a year earlier than planned, to care for his wife, who had been diagnosed with cancer. Barra has said that she and other GM executives learned of the problem with the ignition switch on Jan. 31.

GM has acknowledged that some employees were aware of the problem with the part for more than a decade. But Barra "didn’t know about it," Akerson told Forbes. "I bet my life on it.”

The switch, used mostly in Chevrolet Cobalts and Saturn Ions, is prone to slipping out of the "run" position if jostled or weighed down by a heavy key chain, shutting off power steering and brakes and disabling the airbag. Last week, GM raised the number of crashes that it links to the defect to 47, from 35.

GM's handling of the faulty part is the subject of investigations by the U.S. Justice Department, two congressional committees and the National Highway Traffic Safety Administration, which fined GM $35 million this month for the company's delayed response in reporting the defect.

GM has said it will be able to produce enough parts to fix the recalled vehicles by October. Only 47,000 of the 2.6 million vehicles had received replacement switches as of last week, GM said.

Barra told the magazine that she views the ignition switch crisis -- which has triggered a wave of 30 recalls covering more than 15 million vehicles globally as GM sharpens its focus on safety lapses -- as a chance to change the way GM operates.

“Obviously we want to do the right thing and serve the customer well through this," she said. "But it’s also an opportunity to accelerate cultural change.”

The article also quotes Tim Solso, who became GM's chairman when Akerson retired, as endorsing Barra’s handling of the crisis.

“The confidence has grown over a period of time, given the way that Mary has handled all the situations: testifying before Congress, meeting with the media,” Solso told the magazine. “She’s done a superb job, and the board recognizes that.”

You can reach Mike Colias at mcolias@crain.com.

http://www.autonews.com/article/20140528/OEM11/140529869/i-bet-my-life-that-barra-was-unaware-of-safety-defect-akerson-says

Tesla bonds assigned 'junk' status by SandP

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LOS ANGELES -- Its shares may be the darling of Wall Street, but Tesla Motors Inc. on Tuesday received a far less rousing recommendation from bond raters at Standard & Poor’s Corp. -- which assigned the electric-vehicle maker’s bonds a B- rating, or “junk” status.

Companies are given junk-bond ratings when Wall Street determines there is an increased possibility of default.

But for savvy investors, having junk bonds in a poorly rated company can pay much higher returns than those from blue-chip companies, because junk-rated companies have to pay higher interest rates to gain access to investors’ capital.

Of course, the trade-off of potential default means bondholders could see much of their principal vanish.

In describing the portfolio as “vulnerable,” S&P stated that Tesla has a “narrow product focus, concentrated production footprint, small scale relative to its larger automotive peers, limited visibility on the long-term demand for its products and limited track record in handling execution risks that could arise in managing high volume parallel production.”

Even with the junk rating -- three notches below “investment” grade -- S&P stated that the Tesla bonds are nonetheless “stable.”

The rating “reflects our expectation that the company will sustain its recent improvement in gross margins over the next 12 months,” S&P said in a statement.



S&P estimated that, in case of a default, investors likely would recover 30 to 50 percent of their investment.

So far this year, Tesla has issued $920 million of 0.25 percent unsecured convertible senior notes due in 2019 and $1.38 billion of 1.25 percent unsecured convertible senior notes due in 2021. Last year, the company issued $660 million in unsecured convertible senior notes due in 2018.

The funds are to be used to finance construction of two battery gigafactories as well as extended product development for the Gen III compact electric vehicles.

Tesla shares closed today at $211.56 in Nasdaq trading. The 52-week range for the stock has been $88.25 to $265.

You can reach Mark Rechtin at mrechtin@crain.com. -- Follow Mark on

http://www.autonews.com/article/20140527/OEM05/140529882/tesla-bonds-assigned-junk-status-by-sp

Portuguese PM promises more reforms; European car sales growth slows - business live

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The BMW factory in Munich, Germany. Photograph: Miguel Villagran/Getty Images

European car sales have risen at their slowest rate in five months, adding to concerns over the durability of the recovery.



Industry body ACEA reports this morning that new car registrations across the EU rose by 4.6%, year-on-year in April to 1,089,226. That's the the third lowest figure for an April since 2003.

Photograph: ACEA

On the upside, this is the eighth month in a row when sales were higher than a year ago. And the late Easter this year probably won't have helped.

But the concern is that the revival is tailing off, at levels that are still historically weak. Especially after yesterday's disappointing GDP figures.

Car sales actually fell year-on-year in Germany, which doesn't suggest domestic demand in Europe's largest economy is going to drive the euro recovery strongly onwards.

Sales were down 3.6% in Germany, compared to April 2013. The Italian market was little changed, up 1.9%. But they rose 5.8% in France, +8.2% in the UK, and +28.7% in Spain -- where a government scrappage scheme has been driving demand.

Gian Primo Quagliano, head of automotive-research company CSP in Bologna, Italy, says the data shows there's no significant recovery in the industry - which employs hundreds of thousands of Europeans.

Quagliano told Bloomberg.

“We are not seeing a real recovery in the car market in Europe, just a modest rebound,”

“Europe needs economic measures to boost consumption and bring back customers into showrooms.”

So far this year, EU car sales have grown by 7.4% - and again, Germany is lagging behind.

ACEA says:

The increase in passenger car registrations in this period ranged from 2.9% in Germany, 3.7% in France, 5.0% in Italy to 12.5% in the UK and 16.2% in Spain.

Photograph: ACEA

http://www.theguardian.com/business/2014/may/16/weak-european-car-sales-markets-eon-fine-live

GM recalls another 2.4m cars in fresh headache over safety issues

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General Motors said on Tuesday it is recalling another 2.42m vehicles in the United States, raising the number of vehicles it has recalled so far this year to more than 15m.

The No1 US automaker also said it is doubling the charge it expects to take in the second quarter to about $400m, mostly for recall-related repairs. GM did not immediately indicate whether vehicles outside the US market were affected.

GM said the latest affected vehicles are covered by four recalls, raising the number of US recalls this year to 29. That includes the high-profile recall of 2.6m vehicles to replace defective ignition switches linked to at least 13 deaths.

In the first quarter, GM took a charge of $1.3bn, mostly related to the ignition switch recall.

The latest actions cover possible faulty seat belts, transmissions, air bags and fire issues.

GM said there have been no fatalities associated with the latest recalls. The actions affect the Buick Enclave, Chevrolet Traverse and GMC Acadia full-size crossover vehicles; older-generation Chevy Malibu and Pontiac G6 mid-sized sedans; and newer versions of the Cadillac Escalade SUV and heavy-duty Chevy Silverado and GMC Sierra full-size pickup trucks.



Last week, GM announced five recalls covering almost 3m vehicles globally and said it would take a second-quarter charge of about $200m. It also fined a record $35m by the US National Highway Traffic Safety Administration for its handling of the defective ignition switch.

GM is under investigation by the US Department of Justice, Congress, the US Securities and Exchange Commission and several states for its handling of the faulty ignition switch, which engineers first discovered in 2001. GM has been criticized for failing to detect the faulty part and for not recalling the vehicles earlier.

The automaker expects to complete an internal probe of its handling of the issue within the next two weeks.

The largest of the four new recalls announced on Tuesday covers almost 1.4m full-size crossovers from model years 2009 through 2014 to replace potential defective seat belts. GM has told dealers to stop selling the newer models until they are repaired.

The other large recall covers almost 1.1m older-generation mid-sized sedans with four-speed automatic transmissions where a shift cable could wear out. GM said it is aware of 18 crashes and one injury related to this issue.

GM also put a stop-sale order on the 2015 Cadillac Escalade and Escalade ESV full-size SUVs, recalling about 1,400 vehicles because the passenger side air bags may not deploy properly in an accident. The company said it has emailed the 224 customers who had taken delivery of the vehicles, telling them not to let passengers sit in the front passenger seat until the repair has been made.

The company also recalled 58 heavy-duty versions of its 2015 full-size Chevy and GMC pickup trucks for potential fire issues. It said no crashes or injuries have been reported associated with this issue.

GM shares were down 1.8 % at $33.63 on Tuesday afternoon on the New York Stock Exchange.

http://www.theguardian.com/business/2014/may/20/gm-recall-cars-safety-issues-autos

GM brass 'really cares about interiors now,' design chief Welburn says

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Welburn: "A few years ago, GM was well behind the competition."



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DETROIT -- If most vehicles are going to share technology and offer the same functionality, then styling will be the differentiator, General Motors global design chief Ed Welburn says.

Welburn, speaking at the WardsAuto Interiors Conference today in suburban Detroit, said GM management in recent years has come to view vehicle interiors as hallowed real estate.

He showed a photo of a Chevrolet Malibu from the mid-2000s with a monotone gray interior.

“A few years ago, GM was well behind the competition,” Welburn said. “We checked all the boxes. Interiors were well equipped and functional. They had everything but charm. The interior was not a warm, inviting environment.”

He said that during product reviews, vehicle interiors sometimes were not evaluated. And if a vehicle was overbudget, the content almost always came out of the interior.

“The best way to get the thing right financially was to take from the interior,” he said. “You can’t strip the fenders off the thing. That is not the case now.”

The biggest change, he said, came from changing management’s priorities, not from hiring new designers.

“The leadership of the company really cares about interiors now, and it shows,” Welburn said.

The new Chevrolet Corvette and the Cadillac ELR are recent examples of vehicle interiors for which GM has won kudos for style and quality of materials.

You can reach Richard Truett at rtruett@crain.com.

http://www.autonews.com/article/20140521/OEM03/140529958/gm-brass-really-cares-about-interiors-now-design-chief-welburn-says

EU car sales growth slows in April

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The new car market has also been a bright spot in the UK over the past year, persistently outperforming the rest of Europe. Photograph: David Cheskin/PA

Europe's car market took its foot off the pedal in April with the slowest growth in new vehicle sales for five months, adding to concerns that the continent's broader economic recovery is losing steam.



Sales of new cars in the EU were 4.6% higher than a year earlier at 1.09m according to the European Automobile Manufacturers' Association (ACEA), but that followed a 10.6% rise in March.

"In absolute figures, the total units registered marked the third lowest result to date for a month of April since ACEA began the series in 2003 with the enlarged EU," the association said.

Europe was dragged down by its powerhouse, Germany, where sales fell 3.6% in April to just over 274,000 vehicles. There was growth in all other major European markets, including Spain, where sales of new cars jumped 28.7% to more than 80,000.



The new car market has also been a bright spot in the UK over the past year, persistently outperforming the rest of Europe. In April sales in the UK rose 8.2% to nearly 177,000.

Sales in the EU over the first four months of year were up 7.4% at 4.3m.

Slowing growth in Europe's car market reflected the trend in the wider economy, with GDP growth across the EU of 0.3% in the first quarter, slowing from 0.4% in the last three months of 2013.

The picture looked weaker still in the eurozone, where the growth rate among the 18 member states halved to 0.2% compared with the previous quarter.

The weakening recovery has raised acute expectations that the European Central Bank (ECB) will take measures to breathe some life back into the region's economy at next month's policy meeting, with a cut in the main interest rate and the rate paid on bank deposits both possible. The ECB's president, Mario Draghi, said after the most recent meeting that he was comfortable with the prospect of the bank acting.

http://www.theguardian.com/business/2014/may/16/eu-car-sales-growth-slows-april

GM dealers grapple with stop-sale orders on busy weekend

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THE GM RECALL



Buick sold 19,351 Enclaves in the U.S. through April.

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DETROIT -- General Motors dealers are heading into one of their busiest weekends of the year unable to deliver some of their most popular vehicles: large crossovers.

GM is recalling 1.3 million Buick Enclave, GMC Acadia and Chevrolet Traverse crossovers from the 2009-14 model years to fix a front seat belt cable that can wear out and eventually fail, increasing the risk of injury in a crash.

GM told dealers on Monday that they can't sell any of the vehicles to customers until they're fixed. The required parts "are not available at this time" and GM has not said when they will be ready.

That raises the likelihood that about 68,000 new large crossovers on dealership lots or en route to stores (as of May 1) will be sidelined for the last-weekend-of-the-month sales push -- one in which many dealerships have planned Memorial Day promotions.

GM’s U.S. sales through April were slightly more than even with the same four months of 2013, with Buick leading the way with an 11 percent gain. The total U.S. market gained 3 percent.

Dealers still can close sales without delivering the recalled vehicles. But that will be difficult without test drives. GM spokesman Alan Adler confirmed that dealers are asked not to use vehicles subject to stop-sale orders for "demonstration purposes."

“That makes it tough on new car sales,” said David Westcott, owner of Westcott Buick-GMC in Burlington, N.C. Westcott said he also has 15 to 20 used Acadia and Enclave models that can't be moved until they're inspected and fixed.

David Ferraez, dealer principal at Green Brook Buick-GMC in Green Brook, N.J., said he has 170 Acadias and Enclaves on his lot. The crossovers are the highest-volume nameplates at his store.

Ferraez said he plans to "aggressively work deals and sell them" even if the crossovers can't be delivered until they are inspected and fixed. His staff will offer loaner vehicles for buyers who want or need to get into a new car.

"We can't be out of business with our No. 1 product in one of our busiest times of year," Ferraez said. "I'm nervous about it, but we'll be proactive."

GM also told Cadillac dealers to stop selling the redesigned 2015 Escalade pending a fix to a problem with the passenger side airbag.

Adler said the Escalade SUVs and the crossovers are being held at their plants for repairs before being shipped to dealerships.

Dealer incentives

GM today rolled out an end-of-the-month dealer bonus program "to help retain our sales momentum and close May strong," a bulletin sent to Chevrolet dealers said.

The program will pay up to $1,000 in dealer cash for retail sales of 2013-15 Chevy models sold through June 2, excluding 2014 Corvettes and SS performance sedans. Buick-GMC is running a similar program, dealers said.

Some dealers say they're worried about the cost of keeping extra inventory that can't be moved pending the recall fix.

Floorplanning costs

Detroit Chevy dealer Ralph Shaheen says he has about 40 new Traverse models on his lot and another six in his used fleet. He said he'll be paying extra floorplanning costs unless GM reimburses him for that expense.

“My first question to my zone manger will be, ‘Where do you want me to send the bill?’” said Shaheen, president of Shaheen Chevrolet in Lansing, Mich.



John Spellman, general manager at Bill Kay Buick-GMC in suburban Chicago, said his dealership has more than 60 new and used Acadia and Enclave models, which he calls "a big seller for us."

"Nobody is thrilled about it. It's a big weekend," Spellman said. "But I understand what [GM] is doing. Nobody wants to be in the position of putting a car with problems out there. So we're going along with it."

You can reach Mike Colias at mcolias@crain.com.

http://www.autonews.com/article/20140521/RETAIL01/140529963/gm-dealers-grapple-with-stop-sale-orders-on-busy-weekend

GM fined $35m over recall scandal in deal with Department of Transportation

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General Motors was fined $35m and agreed to take part in “unprecedented oversight requirements” on Friday over its massive recall of cars with faulty ignition switches that have been linked to 13 deaths.

The US Department of Transportation imposed the record civil penalty for the automaker’s “failure to report a safety defect in the vehicle to the federal government in a timely manner.”

The fine comes amid a separate criminal investigation by the Justice Department into GM’s failure to address its deadly safety problems.

The ignition fault in certain Chevrolet Cobalt and other GM models went unreported to the US authorities for a decade and resulted in the non-deployment of airbags. The issue led to the recall of some 2.6m vehicles. Since the first ignition switch recall in February, GM has recalled nearly 13m vehicles over safety concerns.



The DOT said the action represented the single highest civil penalty ever paid as a result of a National Highway Traffic Safety Administration (NHTSA) investigation of violations stemming from a recall.



The agency also ordered GM to make significant changes to its review of safety-related issues in the United States and to pay additional civil penalties for failing to respond on time to the agency’s document demands during the investigation.

“Safety is our top priority, and today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” said US transportation secretary Anthony Foxx. He said he would continue to “aggressively monitor GM’s efforts in this case” and called on Congress to support a move to increase the penalties the regulator can levy in cases like this from a maximum of $35m to $300m, “sending an even stronger message that delays will not be tolerated.”

Auto manufacturers are required to notify the NHTSA within five business days of determining that a safety-related defect exists or that a vehicle is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. GM admits in the Consent Order that it did not do so.

The NHTSA reviewed data related to the non-deployment of airbags in certain Chevy Cobalt models in 2007 and 2010 but in both cases determined that it did not have enough information to open a formal investigation.

On 7 February, GM announced the recall of vehicles the NHTSA had studied citing a defect with the vehicle’s ignition switch that could result in the air bag not deploying in the event of a crash. “GM had failed to advise NHTSA of this defect at the time of the agency’s earlier reviews,” the DOT said in a statement.

“No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle,” said NHTSA acting administrator David Friedman.

GM is currently conducting an internal investigation into the recall and agreed to hand over its report to the NHTSA. It has also agreed to take steps to ensure employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles.

Last month Mary Barra, GM’s chief executive, was grilled by Congress over the recalls. Congressional investigators have accused the company of neglecting to warn customers for more than 10 years about faulty ignition switches capable of disabling airbags in Chevrolet Cobalt and Saturn Ion vehicles.

At the hearing Barra apologized for the deaths but avoided questions about whether GM would take “responsibility” for the deaths. GM emerged from bankruptcy in 2008 and is technically a new company, and therefore not liable for lawsuits related to deaths before that time.

Kenneth Feinberg, a lawyer who specializes in a restitution payments in major disasters, including the terrorist attacks of 9/11 and the BP oil spill, has been appointed by GM to look at the case.

http://www.theguardian.com/business/2014/may/16/gm-car-recall-faulty-ignition-department-of-transport-agreement

GM issues 4 more recalls covering 2.4 million U.S. vehicles

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Sales of 2015 Escalades, 2009-14 crossovers suspended

THE GM RECALL

Sales of 2015 Escalades, 2009-14 crossovers suspended



GM also said it has told dealers not to deliver 2015 Escalades.

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General Motors is recalling 2.42 million U.S. cars, trucks and SUVs in four separate safety recalls, raising its recall total for the year to more than 13.6 million vehicles.

GM said today that it expects to take a second-quarter charge of about $400 million, mostly to cover the cost of recalls announced during the period. That includes a $200 million charge from five recalls that GM announced late last week.

The recalls announced by GM today include:

• 1.3 million Buick Enclave, Chevrolet Traverse and GMC Acadia large crossovers from model years 2009 to 2014, and 2009-10 Saturn Outlooks, because front seat-belt cables can wear out over time and separate, increasing injury risk in a crash. In a stop-sale notice sent to dealers on Monday, GM said an inspection and repair process for the crossovers "is currently being developed. Parts needed to complete this repair are not available at this time."

• 1.1 million Chevy Malibus from 2004-08 and Pontiac G6 sedans from 2005-08 because of a shift cable in the four-speed automatic transmission that can wear out, "resulting in mismatches of the gear position indicated by the shift lever."

It is an expansion of a recall GM announced in late April for 2007-2008 Saturn Aura sedans, which share a platform with the Malibu and G6. GM said the transmission shift cable might fracture, which could prevent the driver from selecting a different gear, putting the car in park or removing the key from the ignition.

GM said it is aware of 18 crashes and one injury in crashes involving the Malibus and G6s. It previously said it knows of 28 crashes and four injuries involving the Aura models.

• 1,402 Cadillac Escalade and Escalade ESV models from 2015, which went on sale last month, because of a problem with the passenger side airbag that could result in partial deployment in a crash. GM said it has told dealers not to deliver 2015 Escalades and has notified 224 customers via overnight letters, calls and e-mails, instructing them to not let anyone ride in the passenger seat until the vehicle has been serviced. GM said it is unaware of related crashes or injuries.

• 58 Chevrolet Silverado HD and GMC Sierra HD full-sized pickups from the 2015 model year for a fire risk. GM said that retention clips attaching the truck's generator fuse block to the vehicle body can become loose and potentially lead to a fire. GM said it is unaware of related crashes or injuries.

The campaigns increase GM's count since Jan. 1 to 29 recalls covering more than 13.6 million U.S. vehicles, although those figures count some vehicles more than once because they are being called back to fix multiple potential safety defects.

Included in the total is 2.6 million Chevy Cobalts, Saturn Ions and other small cars from the mid-2000s that were built with a faulty ignition switch, which GM has linked to 13 deaths. GM is expected to conclude within a few weeks an internal investigation into its handling of the problem.

Last week, GM agreed to pay a maximum fine of $35 million and to change its internal safety processes as part of a consent decree with NHTSA.

GM has said it is implementing a more-rigorous safety approach to catch problems earlier and fix ones that have lingered for years.

You can reach Mike Colias at mcolias@crain.com.

http://www.autonews.com/article/20140520/OEM11/140529990/gm-issues-4-more-recalls-covering-2-4-million-u-s-vehicles

GM fined $35m over recall scandal in deal with Department of Transportation

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General Motors was fined $35m and agreed to take part in “unprecedented oversight requirements” on Friday over its massive recall of cars with faulty ignition switches that have been linked to 13 deaths.



The US Department of Transportation imposed the record civil penalty for the automaker’s “failure to report a safety defect in the vehicle to the federal government in a timely manner.”

The fine comes amid a separate criminal investigation by the Justice Department into GM’s failure to address its deadly safety problems.

The ignition fault in certain Chevrolet Cobalt and other GM models went unreported to the US authorities for a decade and resulted in the non-deployment of airbags. The issue led to the recall of some 2.6m vehicles. Since the first ignition switch recall in February, GM has recalled nearly 13m vehicles over safety concerns.

The DOT said the action represented the single highest civil penalty ever paid as a result of a National Highway Traffic Safety Administration (NHTSA) investigation of violations stemming from a recall.

The agency also ordered GM to make significant changes to its review of safety-related issues in the United States and to pay additional civil penalties for failing to respond on time to the agency’s document demands during the investigation.

“Safety is our top priority, and today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” said US transportation secretary Anthony Foxx. He said he would continue to “aggressively monitor GM’s efforts in this case” and called on Congress to support a move to increase the penalties the regulator can levy in cases like this from a maximum of $35m to $300m, “sending an even stronger message that delays will not be tolerated.”

Auto manufacturers are required to notify the NHTSA within five business days of determining that a safety-related defect exists or that a vehicle is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. GM admits in the Consent Order that it did not do so.

The NHTSA reviewed data related to the non-deployment of airbags in certain Chevy Cobalt models in 2007 and 2010 but in both cases determined that it did not have enough information to open a formal investigation.

On 7 February, GM announced the recall of vehicles the NHTSA had studied citing a defect with the vehicle’s ignition switch that could result in the air bag not deploying in the event of a crash. “GM had failed to advise NHTSA of this defect at the time of the agency’s earlier reviews,” the DOT said in a statement.



“No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle,” said NHTSA acting administrator David Friedman.

GM is currently conducting an internal investigation into the recall and agreed to hand over its report to the NHTSA. It has also agreed to take steps to ensure employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles.

Last month Mary Barra, GM’s chief executive, was grilled by Congress over the recalls. Congressional investigators have accused the company of neglecting to warn customers for more than 10 years about faulty ignition switches capable of disabling airbags in Chevrolet Cobalt and Saturn Ion vehicles.

At the hearing Barra apologized for the deaths but avoided questions about whether GM would take “responsibility” for the deaths. GM emerged from bankruptcy in 2008 and is technically a new company, and therefore not liable for lawsuits related to deaths before that time.

Kenneth Feinberg, a lawyer who specializes in a restitution payments in major disasters, including the terrorist attacks of 9/11 and the BP oil spill, has been appointed by GM to look at the case.

http://www.theguardian.com/business/2014/may/16/gm-car-recall-faulty-ignition-department-of-transport-agreement

JCI divests control of interiors business to China's Yanfeng with joint venture

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Johnson Controls Inc. has finally carried out its vow to exit the automotive interiors market.

The company announced today that it will spin off its $3 billion interiors unit -- which produces door panels, instrument panels and consoles -- into a joint venture with Yanfeng Automotive Trim Systems Co. of Shanghai.

JCI will hold a 30 percent stake in the joint venture, while Yanfeng will maintain control with a 70 percent stake.

The new partnership -- as yet unnamed -- will be headquartered in Shanghai and have global sales of $7.5 billion and an estimated 15 percent share of the global automotive interiors market.

In a statement today, JCI said the noncash transaction will be comprised of asset contributions by the two longtime partners. The deal is subject to limited conditions and is expected to close in the first half of calendar year 2015, JCI said.

“Joining our two interiors businesses is a natural extension of our already very successful existing partnership with Yanfeng in automotive seating, which has flourished over the past 15 years,"  Alex Molinaroli, Johnson Controls chairman and CEO, said in a statement. "It creates a strong combined company with a market leading position and a foundation for sustained global growth.”

The agreement will exclude certain facilities in both Yanfeng and Johnson Controls’ existing networks.

In an interview with Automotive News, Molinaroli said that the company may retain control of a few plants if customers request it.

“We’ve got to talk to our customers over the next nine months and understand what’s best for them,” Molinaroli said. “We’ll just make sure that everybody is comfortable with the deal.”

The spinoff will leave Johnson Controls’ automotive division with battery and seating operations, which dominate their segments.

Yet the new partnership will allow Johnson Controls to grab a bigger share of China’s fast-growing automotive market, since Yanfeng is well connected.



The company is owned by the in-house supplier to Shanghai Automotive Industry Corp., China’s largest state-owned automaker.



Yanfeng also inherited the product expertise and global reach of its former partner, Visteon Corp., which sold its 50 percent stake in Yanfeng to its China partner last August.

The new joint venture will have a niche in China. Moreover, Molinaroli expects the joint venture will be profitable, with an estimated net profit margin of 6 percent.

That’s because Johnson Controls already has trimmed money-losing operations -- particularly in Europe.

Yanfeng also has a portfolio of global customers, plus a well-equipped r&d center in Shanghai. With an estimated market share of 15 percent, Yanfeng can pitch itself as a global player.

The new venture “will be able to serve our global customers better than any of our competitors,” Molinaroli said. “This is a business that will prosper.”

PRESS RELEASE:

Johnson Controls and SAIC's Yanfeng Automotive Trim Systems Co., Ltd. form global joint venture for automotive interiors

SHANGHAI â€" May 19, 2014 â€" Johnson Controls, (NYSE: JCI), a global multi-industrial company, and Yanfeng Automotive Trim Systems Co., Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd. (HASCO), the component group of Shanghai Automotive Industry Corporation (SAIC), today announced the signing of a definitive agreement to form a global automotive interiors joint venture.

The agreement is a noncash transaction comprised of asset contributions by the two parties that will create the largest automotive interiors company in the world with revenues of approximately $7.5 billion. Yanfeng will hold the majority 70 percent share in the joint venture, and Johnson Controls will have a 30 percent share.

“Joining our two interiors businesses is a natural extension of our already very successful existing partnership with Yanfeng in automotive seating, which has flourished over the past 15 years. It creates a strong combined company with a market leading position and a foundation for sustained global growth,” said Alex Molinaroli, Johnson Controls chairman and chief executive officer. “This also aligns with Johnson Controls’ corporate commitment to China, which is increasingly becoming a major center for the global automotive industry.”

The new company will be headquartered in Shanghai with global engineering, development and customer centers in the United States, Europe, China, Japan and India. The product portfolio will include instrument panels and cockpit systems, door panels and floor consoles.

The transaction is subject to limited conditions and is expected to close in the first half of calendar year 2015.

The agreement excludes certain facilities in both Yanfeng and Johnson Controls’ existing networks. Johnson Controls will continue to operate those within its network as part of Johnson Controls’ Automotive Experience business. Johnson Controls will host an analyst call Monday

May 19 at 3 p.m. CDT. It is available via webcast in the investor section of http://www.johnsoncontrols.com/investors.

About Johnson Controls:

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and disciplined focus on operational execution, we are committed to delivering value to shareholders and making our customers successful. In 2014, Corporate Responsibility Magazine recognized Johnson Controls as the #12 company in its annual “100 Best Corporate Citizens” list. For additional information, please visit http://www.johnsoncontrols.com.

You can reach David Sedgwick at dsedgwick@crain.com.

http://www.autonews.com/article/20140518/OEM10/140519889/jci-divests-control-of-interiors-business-to-chinas-yanfeng-with

2015 Nissan 370Z Nismo gets new automatic transmission, navigation

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Future Product Pipeline

Nissan will expand its 370Z Nismo package for 2015 with the first offering of an automatic transmission and an onboard navigation system.

The company unveiled the enhanced model this afternoon to hundreds of consumers gathered in Fontana Dam, N.C., for Nissan’s annual ZDAYZ performance car event.



The ’15 model, which goes on sale in July, will receive a seven-speed automatic transmission and a new tech package that includes a navigation system. Nissan has not released pricing on the new model. The 2014 370Z Nismo sells for $43,830, compared with $30,800 for a base 370Z, including destination charges.

Nissan refers to the Nismo version as the “highest expression” of its iconic sports car. The automaker is also on a campaign to expand U.S. sales of Nismo models, which feature racing-oriented performance components, body features and interior styling cues.

The new model also gets restyled front and rear fascia and body trim that give the Z greater resemblance to Nissan’s higher-end performance car, the GT-R.

You can reach Lindsay Chappell at lchappell@crain.com.

http://www.autonews.com/article/20140516/OEM04/140519895/2015-nissan-370z-nismo-gets-new-automatic-transmission-navigation

Judge sets out rules for multibillion-dollar fight over GM ignition-switch defects

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May 16, 2014 - 1:43 pm ET -- UPDATED: 5/16/14 5:20 pm ET

NEW YORK (Bloomberg) -- The federal judge who once steered the future of a bankrupt General Motors is again in the driver’s seat, setting out rules for a fight over billions of dollars in claims tied to ignition switch defects.

And that fight may last a long time.

U.S. Bankruptcy Judge Robert Gerber in Manhattan, who oversaw GM’s 2009 reorganization, today ordered both sides to file briefs on whether the company broke rules by not treating customers with defective cars as creditors when the automaker sought court protection. Both sides must also present arguments over whether GM hid evidence of the defect from him.

GM recalled 2.59 million vehicles this year over the faulty ignition switch, which it said might cause cars to suddenly stop running. It linked the flaw to 13 deaths in at least 31 crashes.

Lawsuits quickly followed, with many plaintiffs seeking compensation for the lost value of recalled cars. More than 60 cases, including class actions, have been filed so far, with one lawyer seeking as much as $10 billion.

Customers who want a swift resolution are out of luck. Gerber said they must put their lawsuits on hold until at least Sept. 1. Both sides are due back in court July 2.

While GM said it accepted responsibility for all injury and death claims, it turned to Gerber for protection from the economic-loss claims. GM says that under the U.S.-backed bankruptcy, the reorganized automaker was shielded from the liabilities of the predecessor company.

‘Binding’ orders

“As GM’s court filings detail at length, the bankruptcy court’s 2009 orders are binding on the class-action plaintiffs and prohibit most or all of the claims asserted in the pending ignition switch cases,” said Kevin Kelly, a GM spokesman.

Customers seeking compensation must convince the judge they were denied their day in court when he freed GM from most liabilities. To convince him, they also may have to prove the company duped the court five years ago by not disclosing any knowledge of the defect.

“GM knew there was a problem and didn’t tell anyone about it, so nobody could file a claim,” said Sander Esserman of Stutzman, Bromberg, Esserman & Plifka in Dallas. He’s one of three attorneys selected to represent customers before the judge. “Now they’re saying we’re without rights and remedies.”

Whether Gerber will accept those arguments is the issue, said Carl Tobias, a law professor at the University of Richmond in Virginia. “Those are the best arguments they can make,” Tobias said.

Chevy Cobalts

Car owners argued that GM should pay for the lost value of their recalled Chevrolet Cobalts and Saturn Ions, plus damages, because it failed to tell them about the defect, which predates the bankruptcy. Under bankruptcy law, a company has to keep creditors informed so they can protect their interests in court.

It might not be easy for the car owners to show they were denied those rights back in 2009.

Arthur Steinberg of King & Spalding, a lawyer for GM, told Gerber May 2 he had two questions for them: “Did you have a problem with your car? Did you know about the bankruptcy?”

If the cars were malfunctioning, their owners could have learned about the bankruptcy from a dealership or by calling GM, and spoken up at publicized court hearings, according to Chip Bowles, a bankruptcy attorney at Bingham Greenebaum Doll who isn’t involved in the case. If the cars weren’t malfunctioning, the owners might not have qualified as creditors at all.

Pre-bankruptcy accidents

In his order, Gerber also said he wants to hear arguments on whether GM can help pre-bankruptcy accident victims while simultaneously seeking to avoid ignition switch claims after the bankruptcy.

In addition to GM, Gerber, 67, has handled many other major bankruptcies during his 14 years on the bench. These include Ames Department Stores Inc., Global Crossing, Lyondell Chemical Co. and Pinnacle Airlines Corp.

In his order today, he said he wants to hear arguments on whether any, or all, of the ignition switch claims should be satisfied by old GM, the remnant of the company left behind in bankruptcy. As recently as 2012, Gerber told some customers to take their warranty claims to the predecessor, rather than the wealthier new company created in the government bailout.

The predecessor firm has little left over following five years of paying creditors by selling assets that the reorganized GM didn’t want. Previous accident victims who pursued claims against the old GM got only about 30 cents on the dollar, Steinberg told Gerber.

Feinberg hired

The automaker has hired lawyer Kenneth Feinberg to explore ways of helping those victims.

GM has said that the U.S. Treasury’s price for saving the company was that it leave behind as many liabilities as possible.



Edward Weisfelner of Brown Rudnick in New York, another of the three lawyers speaking for the customers, said in a filing that old and new GM are one and the same company, and any separation is a fiction.

Bowles recalled failed attempts to argue for so-called successor liability dating back to Federated Department Stores in the 1980s. In that case, the judge told a man who slipped and fell in a store that he couldn’t sue the new retailer that bought some stores in the bankruptcy, he said.



To maintain confidence in the process, bankruptcy judges don’t often tamper with rulings in GM-style reorganizations. Lehman Brothers Holdings Inc. asked a judge in 2010 to reverse what it called “unauthorized” transfers of assets to its brokerage’s rescuer, Barclays Plc. The judge declined.

“Bankruptcy judges generally like finality,” said Esserman, one of the customer lawyers.

Contact Automotive News

http://www.autonews.com/article/20140516/OEM11/140519903/judge-sets-out-rules-for-multibillion-dollar-fight-over-gm-ignition

$60,000 Kia K900 made for 'confident individualists,' says VP

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In its first two months, Kia sold 365 K900s.

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DETROIT -- Kia is taking the slow and steady approach to its freshly launched K900 luxury sedan.

The K900, backed by the comedic “Matrix”-themed ad campaign, is Kia’s most expensive and luxurious model to date.

“We’ve positioned the vehicle in what we define ‘the sweet spot,’” said Michael Sprague, executive vice president of sales and marketing for Kia Motors America. “That’s between the mid-luxury space and premium-luxury space. If you think of the BMW 5 series versus the BMW 7 series, we’re kind of right in the middle.”

The K900 starts at $60,400, including shipping.

Before the K900, Kia’s most expensive model was the upscale Cadenza, which starts at $35,900, including shipping.

The automaker is taking its time, first selling the sedan on the West Coast in March. Kia is now moving the K900 inward to continue the delicate rollout, said Sprague.

Kia sold 105 K900s in March and 260 in April.

“It’s been a very slow ramp-up. We had to make sure that we got the vehicle right. It’s our first foray into the luxury space, and if we don’t do it right, we won’t get another chance,” Sprague told reporters after a presentation during the Automotive Press Association luncheon in Detroit.

“We sold a couple in Ohio earlier this week, so by the end of this month, they will start to be here in southeast Michigan.”

With the K900, Sprague said Kia is targeting “confident individualists” who are looking for something unique.

Confident individualists, Sprague said, don’t let brands define them. They don’t have to showcase their wealth and success with a particular brand because they are confident in what they’ve achieved.

Kia also is going after the “tech-obsessed consumer” with lane departure warning, blind-spot monitoring and adaptive cruise control.

For those who’ve asked why Kia is jumping into the luxury pack, Sprague was succinct.

“We see other luxury brands moving down into the mass market space, the sub-$30,000 area,” Sprague said. “We ask ourselves, why can’t we move up in their space?”



Sprague said there isn’t a volume target that will define success for the K900.



Instead, he said the focus is to lift brand awareness and consideration.

“Are the dealers seeing it draw traffic into their stores, not just for that vehicle, but other vehicles as well,” he said. “It’s a lot of different factors. It’s not just a sales number.”

You can reach Vince Bond Jr. at vbond@crain.com. -- Follow Vince on

http://www.autonews.com/article/20140515/RETAIL03/140519924/-60000-kia-k900-made-for-confident-individualists-says-vp

Driverless cars: we should question and challenge Google, but not as haters

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There are two common responses to reports about Google's work on self-driving cars, the latest of which concerns the company's desire to have them available to buy within the next three years.

One response: "Woo! Yay! Driverless cars! At last reality is catching up with science fiction! I'll soon be spending my commute nailing inbox zero / finally finishing that Donna Tartt book / sticking my head out of the window, tongue flapping like an excitable labrador! Google moonshots FTW!"

The other response: "Those EVIL bastards Google have found a new way to be evil! There'll be ads on the dashboard and your exhaust pipe will be a direct line to the NSA! Let's grab the flaming pitchforks and set fire to all the prototypes before it's TOO LATE!"

It's tempting to say that anything Google does generates these kinds of polarised views, but that would ignore the fact that these are extremes.

Most people sit vaguely in the middle: happily using Gmail and Google Maps and Android smartphones, while occasionally worrying about issues like digital tracking, data security, government surveillance, copyright legislation and tax avoidance as and when they're in the news.

Not Google evangelists nor Google haters: more Google agnostics. And while this group's voices may not be heard loudest in the debate about driverless cars, they may be best placed to ask the challenging and necessary questions about this and other new technologies coming out of the company.

I say "they". It's more like "we" because I count myself in the Google agnostics category too, albeit as a technology journalist who spends a lot of time thinking (and writing) about some of these issues.

The first thing to say is that driverless cars aren't just a Google thing. Pretty much every automotive firm is working hard on what some prefer to call "driver-assisted" or "piloted driving" technology: BMW, Audi, Volvo, Hyundai, Nissan, Ford... The list goes on.

The sensors and technology required for all these vehicles will create masses of data on where we go and how we drive. That data will be collected by the makers of these cars, and â€" if we don't ask the right questions â€" we won't have much idea of how they're using that data.

Why be more wary of Google, then? The obvious answer is that it's the only one of these companies with a business model based on advertising rather than on selling things on wheels made out of metal, plastic, leather, paint and glass. And whatever it is that fluffy dice are made out of.

Google doesn't make fluffy dice: it sells our eyeballs. But we should be asking Google the same questions as all the other manufacturers moving towards a self-driving future. What data are you collecting? How long are you storing it for? Who are you sharing it with? How can I access that data? And why should I trust you?

Isolating one company or technology is missing the bigger picture, too. If we're worried about being tracked as we move around our cities, we should be taking as keen an interest in numberplate recognition and CCTV and facial recognition and credit-card cross-referencing and other technologies.

Go too far down the paranoia rabbit-hole on that, and you'll end up only leaving the house at night, clad in surveillance-repelling clothing and flitting from rooftop to rooftop like a binbag-and-tinfoil clad ninja. That would be no help at all.

(Even if it would be fun for a couple of nights.)

Questions about our data aren't just for Google, nor are they just about cars: they're as relevant to smartphones, smart TVs, smart watches, tablets, augmented eyewear, fitness trackers, consumer drones, smart thermostats and smoke alarms.

Google is involved (or getting involved) with every single one of those product categories, and more, so we should be challenging and questioning the company regularly, just as we should be Apple, Facebook, Microsoft and Amazon.

"We" is us: the people who'll be using all these products and services. But it's also we technology journalists â€" some of whom have been firmly and persistently asking these questions for their entire careers, but others (I'm in this category) who've been given a timely wakeup call by the last year's NSA revelations to think harder about data privacy and security issues.



Oh, and "we" as in our elected representatives: the people we vote into power who'll be making the laws governing these technologies and who should be holding the companies behind them to account. How would your MP set about casting a vote based on the complex technology and equally complex privacy issues around driverless cars, for example?

There's an important role for evangelists in all this: getting excited about new technology, adopting it early, and explaining its potential benefits to everyone else.

There's also an important role for haters: approach everything with the "Why is this lying bastard lying to me?" strategy â€" NOT coined by Jeremy Paxman, as it turns out, but by another journalist called Louis Heren â€" and sometimes you'll find out that yes, they really are lying.



But agnostics have a reason to speak up too, participating in the debate about driverless cars and other emerging technologies while they're still emerging, rather than leaving it just to the tongue-flappers and tinfoil-ninjas.

• Driverless cars set to roam Milton Keynes from 2017

http://www.theguardian.com/technology/2014/may/14/driverless-cars-google-data-privacy

Porsche sued over 'Fast and Furious' actor Paul Walker's fatal crash

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Lawsuit blames Carrera GT for deaths, claims pair was driving at a safe speed

Lawsuit blames Carrera GT for deaths, claims pair was driving at a safe speed



The lawsuit says: "The Carrera GT was unsafe for its intended use..."

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Jake Lingeman

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May 13, 2014 - 11:23 am ET -- UPDATED: 5/13/14 3:56 pm ET - includes copy of suit

Kristine Rodas, the widow of Roger Rodas -- who in November 2013 was killed along with actor Paul Walker in a Porsche Carrera GT crash -- filed a wrongful death lawsuit against the automaker, according to several media reports.

The suit filed Monday in Los Angeles Superior Court against Porsche Cars North America says Rodas was driving at 55 mph, not in excess of 90 mph as the official crash investigators determined. It also says the vehicle lacked a proper crash cage and safety features in the gas tank that could have saved the men. Finally, the suit claims a failure in the Porsche’s suspension forced it to careen out of control in Santa Clarita, Calif., striking a lamppost and several trees before it came to rest and burst into flames. The lawsuit seeks unspecified damages from Porsche Cars North America.

“The Carrera GT was unsafe for its intended use by reason of defects in its manufacture, design, testing, component and constituents, so that it would not safely serve its purpose,” according to the suit.

The post-crash investigation conducted by the Los Angeles County Sheriff’s Department and California Highway Patrol concluded that Rodas was driving the car too fast, and did not identify any mechanical problems with the Carrera GT. The difference of opinion between the official crash investigators and those hired by Kristine Rodas’s attorney will be a big part of the case.

“We are very sorry for the Rodas and Walker families’ loss,” Porsche said today in a prepared statement. “The crash was the subject of a detailed investigation by the proper authorities [L.A. County Sheriff and California Highway Patrol], and their investigation disproves the allegations in the lawsuit. The investigation found that driving at a high speed in a negligent manner caused the crash and concluded that there was no mechanical defect.”

Rodas’ widow retained Los Angeles-area lawyer Mark Geragos, whose clients include convicted murderer and death-row inmate Scott Peterson, embattled entertainer Chris Brown and NASCAR driver Jeremy Mayfield.

Rodas and Walker co-owned an auto racing team/exotic car shop named Always Evolving. The two met almost a decade ago when Walker saw Rodas driving a Porsche GT3 he once owned. They became friends, then business partners. Always Evolving and Walker’s estate are handling the sale of the late actor’s cars.

For more coverage of the case from Autoweek, an affiliate of Automotive News, click here.

http://www.autonews.com/article/20140513/OEM11/140519974/porsche-sued-over-fast-and-furious-actor-paul-walkers-fatal-crash

GM offers dealers $5,000 for Cadillac ELR test drives

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The ELR went on sale in late December starting at $75,995, including shipping

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Automotive News

May 12, 2014 - 4:04 pm ET

General Motors is offering Cadillac dealers a $5,000 incentive to offer test drives of its ELR plug-in hybrid, which has gotten off to a slow start since its launch five months ago.



GM is calling the offer the Demonstrator Allowance Program, and it is designed as a tactical move to help register more test drives, said Cadillac spokesman David Caldwell. He also said it probably will take awhile for widespread consumer awareness about the ELR.

“We want to do it because of the newness of the ELR,” Caldwell said. “It’s a different brand.”

GM also is offering up to $3,000 in customer discounts toward the lease or purchase price of an ELR, The Wall Street Journal reported last week.

The moves come as ELR inventories continue to grow. At the end of April, GM had 1,700 ELR coupe models in stock, which is a 725-day supply, according to the Automotive News Data Center.

Caldwell said GM’s Detroit-Hamtramck plant, which assembles the ELR, has had heavier production since the beginning of the year than it will in the summer or fall, which could be the explanation for the inventory backup.

Industry analysts have a different opinion. The ELR went on sale in late December starting at $75,995, including shipping. Analysts and dealers have criticized that price -- twice that of the Chevrolet Volt, which shares its powertrain with the ELR.

The ELR is the second vehicle to get GM’s Voltec technology, which uses a 435-pound battery pack and two electric motors for an estimated electric range of about 35 miles. Once the charge is depleted, a gasoline-powered, 1.4-liter, four-cylinder generator kicks on to power the drivetrain.

The Volt’s U.S. sales fell 7 percent through April compared with the year-earlier period, to 5,154 units.

The Demonstrator Allowance Program is part of a nationwide effort to get more dealers to back and support test drives, Caldwell said. He said Cadillac has had a lot of success with similar programs on the West Coast.

Dealers have until June 2 to designate ELRs as test vehicles. The program will pay $5,000 for each ELR assigned to the test fleet. Dealers with fewer than seven unused ELR models in stock may designate one for the demonstrator program, and those with more than seven ELRs in their inventory can designate two as test vehicles to qualify for $10,000 in payouts. Each vehicle must accumulate a minimum of 750 logged test drive miles.

On top of that, dealers can collect an additional $2,000 for every ELR sold in July and an extra $1,000 for every one sold in August.

http://www.autonews.com/article/20140512/RETAIL01/140519983/gm-offers-dealers-5000-for-cadillac-elr-test-drives

Despite recall noise, Chevy is 'finding its voice'

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Q&A



Tim Mahoney, global chief marketing officer, Chevrolet: "There's no doubt we wouldn't have wanted this to happen, but it has. So we're trying to move forward and do the right thing. I think it's going to come down to how we address it and respond to it and improve."

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Tim Mahoney, Chevrolet's global chief marketing officer, inherited a fresh "Find New Roads" theme when he took over in spring of 2013. He built on the idea during a Winter Olympics advertising blitz featuring real-life people plucked from social media platforms, along with the tag line "This is the new us."



But the "new" message has gotten more challenging for Chevrolet amid General Motors' recall crisis, which revealed that a defective ignition switch in mid-2000s small cars that has been linked to 13 deaths was left to linger for a decade.

Mahoney, 57, spoke with Staff Reporter Mike Colias on April 16 at the New York auto show.

Q: How has your job changed in the last two months?

A: It's gotten more interesting. But at the end of the day, the work we debuted during the Olympics really resonates. We're continuing down that path. We keep our eye obviously on the conversation going on in social media on a daily basis. But the proof will be how we react and whether we continue to build momentum. We'll transition into the summer months as we bring 4G connectivity combined with OnStar. That's something that puts us ahead of virtually every competitor by at least a year, as much as a year and a half.

You've talked candidly about how Chevy's image hasn't kept pace with the quality of its vehicle lineup. Does the recall fallout make that image-building harder?

I think people realize that, with anything mechanical, there might be challenges. There's no doubt we wouldn't have wanted this to happen, but it has. So we're trying to move forward and do the right thing. I think it's going to come down to how we address it and respond to it and improve. I think there are three things that companies need to be successful: great product; a great experience, and that is about the customer touch points that happen within the dealership and with the company itself; and they need a strong brand that people know what it stands for. We're working at it from all of those angles.

Have you considered an advertising message about the recall?

There's not a plan right now to do that. I think the best story we can tell is about the great products we're bringing to market, and supplementing that with things like talking about awards we've won for customer service and doing right by the consumers.

What about marketing some of the safety wins you've had, like recent accolades for the Spark and Equinox?

We have done that. Even in the Olympics with the "new family" work, which was about the five-star safety rating for Traverse, for example. It's a fine line you have to walk. One of the core values for Chevrolet is authenticity and a sense of optimism. That's how the work is moving forward.

How would you rate the campaign launched around the Olympics? And how do you leverage the social-media conversation around it?

We saw a very favorable lift in people's perception of Chevrolet as a new kind of brand. That was really what we were trying to accomplish through that work, by telling that story through the five core models, along with a couple of others. We monitor the conversations in terms of what people are thinking about the brand. But there is a feeling that the brand is finding its voice. I think you'll continue to see that with the 4G work. That gives us an opportunity to keep reinforcing that this is a new brand.

One of those core models is the Equinox, which you've been advertising in prime time. That's unusual for a vehicle that is nearing the end of its life cycle.

It's interesting. Everybody knows Chevy, whatever that means. They recognize the bow tie. But when you look at the five core models -- Malibu, Cruze, Traverse, Equinox and Silverado -- you have an interesting mix there. Malibu and Silverado are probably two of the most recognizable Chevys. But all the others are new and fresh. It's still a game of building awareness. Traverse is probably the least recognizable of those three. Cruze we've pushed pretty heavily. There's a big success with Chevy in small cars. The Trax is the seventh one we're launching in that space.

Is part of the inclusion of the Equinox an effort to sustain demand in a really competitive segment?

It's a big segment. You've got CR-V and RAV4. I'd say the Equinox has a pretty timeless design. But the one thing that still holds it back is just fundamental awareness. People that drive it really like it. It's a great value. But you say Equinox, and a lot of people say, "I don't know what that is." We're pushing our core model strategy and it definitely fits there.

Why are you bringing the Trax small crossover to the United States?

We think there's an opportunity for affordable all-wheel drive in a utility package. We think it fits really well in an urban environment. It's probably one of the fastest growing global segments. We think we're catching it at a time when there's growth opportunity. Parked next to an Equinox, there's a clear distinction in size.

Switching to trucks: You've had success on sales of higher-end Silverados. Is there more marketing to do on lower-priced models such as double cabs and six-cylinders?

We are gaining significant share in the above-$40,000 price point. But what you have are competitors that are at the end of their life cycle and are a year or two years behind us that are just boring into the incentives. We've remained disciplined and tried to build a reasonable level of profitable demand. Transaction prices are up across the board. You've got some competitors where 18, 19 percent of the transaction price is incentives.

Any next phase of Silverado marketing? I know you like to keep a marketing launch in place for longer than campaigns have run in the past.

It will continue. We want to remain pretty consistent, and as much as I can, bring it even closer to "Find New Roads." Strategically, you're seeing us go back to that "dependable, longest-lasting" message. But also, because of Find New Roads, it's the "most advanced," with all of the technology it has.

You can reach Mike Colias at mcolias@crain.com.

http://www.autonews.com/article/20140510/RETAIL03/305129995/despite-recall-noise-chevy-is-finding-its-voice

Cobalt Offers Auto Transport To New York State

Did you know that Cobalt Auto Services provides vehicle deliveries to and from the state of New York? Below is some added info from the company on their services to this part of the US:

Do you need to ship your car, truck, or motorcycle to or from the state of New York? If so, call Cobalt Auto Services toll free at 855-242-8090 or visit our website for your free quote.

Moving your vehicle to or from NY can be involved. Let Cobalt take the stress and time consuming steps out of your hands so that you can concentrate on more important things like moving, vacation, or whatever else you might be doing.

If you are moving to New York and will be picking up your car after transport, be sure to plan ahead and know what the weather will be like before you arrive. If you vehicle is shipped during the winter, the weather can range from cold and rainy to sub zero temperatures and lots of snow - depending on your exact location. If you ship your car during the summer the weather can be quite hot and humid in New York.

Protecting your car will also help - during the summer you can cover seats and other areas to reduce damage from the sunlight.

Let Cobalt help you with your next car shipment to New York - contact us today for your free auto transport quote.

The full video can also be viewed at: https://www.youtube.com/watch?v=Gl1MSFwx7fM

Ford names insider Mark Fields as to succeed outgoing CEO Alan Mulally

All set for some even more automotive news? We have an excellent post today that you should actually check out. Stay up to date with all automobile related info and automobile transportation news right here.

US automaker Ford confirmed Thursday that veteran insider Mark Fields will replace Alan Mulally as chief executive on 1 July.

Fields, currently Ford’s chief operating officer, had long been seen as Mulally’s heir apparent. He was centre stage at this year’s Detroit auto show unveiling the aluminium model of Ford’s best-selling F-150 pickup and a limited edition Mustang GT.

Fields, 53, is a Harvard Business School graduate who joined Ford in 1989 and ran its North American operations through the depth of the recession. Ford was the only major US automaker not to file for bankruptcy.



Mulally, 68, a long-time Boeing executive, was hired by Ford in 2006 to turn around a company making massive losses and facing declining market share. He slashed costs and mortgaged all of Ford’s assets in a move that allowed the company to steer clear of bankruptcy and government-ownership.

Fields becomes the second insider in recent months to take over one of the big American auto manufacturers. Last December General Motors named Mary Barra as its new chief executive, succeeding Dan Akerson, a turnaround specialist appointed by the US Treasury.

At a press conference, chairman Bill Ford thanked Mulally for his leadership and for the smooth leadership transition.

“We have had very few, and maybe never, have we had a planned smooth transition,” Ford said. “Alan is a hall of fame CEO, and we all know that. But most hall of fame CEOs cannot let go.”

In a statement, Ford said of Fields, “Mark has transformed several of our operations around the world into much stronger businesses during his 25 years at Ford. Now, Mark is ready to lead our company into the future as CEO.”

Fields faces some major issues as he moves into the top job. Last week Ford announced its first-quarter profits were down 39% from the same period last year, hit by higher warranty costs and South American currency losses. The company also faces issues in Europe, where a sluggish economy and restructuring costs are still taking a toll, and in Russia, a country Ford has invested in heavily, as the political crisis over Ukraine intensifies.



However Ford still expects to make a pre-tax profit of between $7bn and $8bn this year. In 2006 Ford lost $12.7bn. “Alan deservedly will be long remembered for engineering one of the most successful business turnarounds in history,” Ford said.

http://www.theguardian.com/business/2014/may/01/ford-names-mark-fields-ceo-mulally-auto