Friday, May 9, 2014

UK car sales growth matches 1980s record

All set for some even more vehicle news? We have a great short article today that you ought to actually review. Stay up to date with all vehicle related info and auto transportation news right here.



Aston Martin car in James Bond film The Living Daylights (1987)

Aston Martin car in James Bond film The Living Daylights (1987). UK car sales growth is harking back to the 1980s. Photograph: Ronald Grant Archive

British appetite for new cars surged ahead in April, as a rosy outlook for the UK economy triggered an upwardly revised sales forecast in 2014.

New car registrations rose 8.2% last month, to 176,820 vehicles, marking the 26th month of rising sales and matching the previous longest period of expansion, in the late 1980s.

It followed a 17.7% increase in March, which is typically a strong period for registrations because it is a plate change month.

Demand and an improved economic backdrop prompted the Society of Motor Manufacturers and Traders (SMMT), the trade body which publishes the data, to revise its forecasts for new car sales in 2014 from 2.3m to more than 2.4m. That would be a 6% increase on 2013.

Mike Hawes, SMMT chief executive, said: "After the bumper plate-change month of March, the UK car market returned to more modest but still positive growth in April. This marks 26 consecutive months of growth as GDP continues to pick up, inflation falls and wage levels improve."

April's registrations took the total in the first four months of the year to 864,942, up 12.5% on the same period in 2013. Sales have been supported in recent months by the wide availability of car finance deals and a rising demand for more fuel efficient vehicles.

The bestseller last month was the Ford Fiesta, followed by the Ford Focus and the VW Golf.

The UK economy grew by 0.8% in the first quarter of the year, following 0.7% growth in the last quarter of 2013. Meanwhile inflation is below the Bank of England's 2% target, unemployment is falling, and wage growth is picking up.

Howard Archer, chief UK economist at IHS Global Insight, said car sales continued to be a driving force in the economy.

He said: "Private car sales are being supported by a combination of much improved consumer confidence, rising employment, attractive offers and packages, and motorists' desire to buy more fuel efficient cars. In addition, consumers' purchasing power is now improving with earnings growth moving above consumer price inflation."

http://www.theguardian.com/business/2014/may/07/uk-car-sales-growth-back-to-1980s

Thursday, May 8, 2014

General Motors CEO eyed by Congress in deadly ignition switch investigation

Prepared for some more vehicle information? We have a good article today that you must actually read. Stay up to date with all car related info and car transportation news here.

Congressional investigators are examining whether General Motors chief executive Mary Barra and other senior executives were more involved than they have publicly acknowledged as the automaker considered how to deal with a deadly ignition switch issue linked to at least 13 deaths, three sources familiar with the probe say.

The investigators also are examining whether executives acted fast enough, once they learned of the problem, said the congressional sources, who were not authorized to speak publicly about the matter.

At issue is who knew about and was responsible for an internal investigation in 2011-2013 that eventually discovered the switch issue which has led to the recall of 2.6m cars.

GM documents, including emails and internal reports released by congressional investigators, show two former Barra lieutenants, Terry Woychowski and Jim Federico, worked with the GM field engineer who ran the internal probe from August 2011 to December 2013.

Documents reviewed by congressional investigators give no indication the two men informed Barra of the probe. But investigators are still struggling to understand GM's complex structure, who made decisions on the probe, and who was accountable for the work.

The congressional committees plan to hold hearings to question attorney Anton Valukas, who is running a current company investigation into how it handled the switch, and former CEO Dan Akerson, who ran the company during the 2011-2013 probe. Spokespeople for Akerson and Valukas said they declined to comment.

GM spokesman Jim Cain reiterated the company position that top executives did not learn of the defect until January 31 of this year, when the decision to recall was made.

"The whole purpose of the Valukas investigation is to understand the entire chronology of events and who knew what when, and what decisions were made or should have been made," he said.

Woychowski and Federico did not respond to requests for comment from Reuters. Federico retired on Monday from GM and has accepted a job at Harley-Davidson. Cain said the move had no link to the switch issue.

So far, GM has submitted about 350,000 documents to committees studying the timing of decisions, but GM has yet to produce an organizational chart that would help pinpoint lines of authority, a congressional source said. GM's Cain said he was not aware of the automaker having submitted such a chart.



GM has said that senior executives including Barra were kept out of recall investigations to allow engineers to make the decisions without undue pressure. Congressional investigators, evaluating that claim found and released one document showing a briefing on a separate safety issue, indicating at least one exception.

Woychowski emailed Barra in October 2011 and attached a copy of a New York Times report on a power steering issue in cars including the Saturn Ion and the Chevrolet Cobalt. Woychowski told Barra why the Ion had not been included in a recall of the Cobalt on the steering issue. GM spokesman Cain said that the email was part of an exchange spurred by the article.



The ignition switch was a different investigation, and Barra in April told lawmakers that she "knew there was an issue with the Cobalt" in December 2013, but she "did not know it was an ignition switch issue".

Barra in early 2011 was named senior vice-president for global development, a unit which included responsibility for safety investigations and recalls, GM's Cain said. As manager of more than 30,000 employees, she supervised the "design, engineering, program management and quality of vehicles for the company's 11 brands around the world", said a GM press release.

The ignition switch problem had been a lingering issue, kicked around by GM engineers since 2001. The switch had been installed in more than 2.5m vehicles across numerous product lines, including the Chevy Cobalt, the Saturn Ion, the Pontiac G5 and the Chevrolet HHR.

GM engineers knew the switch malfunctioned under the weight of heavy key rings. The company sent notices to dealers suggesting some drivers lighten key rings. It rejected changing the switch.

In mid-2011, for reason that remain unclear, GM's legal and engineering departments consulted and decided to launch a formal internal investigation into airbag malfunctions that led them right back to the unfixed switch.

Documents show that on the ignition switch inquiry Barra's lieutenants served as "champions", an industry term to identify a senior executive who marshals internal resources.

Woychowski, a vice-president who reported directly to Barra, was the first champion for the probe, run by field engineer Brian Stouffer. Stouffer did not respond to requests for comment.

Federico took over when Woychowski retired in June 2012. At the time, Federico reported directly to Barra as vehicle line director for small cars.

Stouffer's investigation discovered that the problem was in the ignition switch that could suddenly move into the "accessory" position and disable airbags.

In December 2013, Stouffer's findings were reviewed by two internal committees that decide on product recalls. After two more months of study, the committees approved a recall. GM did not respond to questions seeking the names of committee members.

http://www.theguardian.com/business/2014/may/07/general-motors-ceo-congress-deadly-ignition-investigation

Wednesday, May 7, 2014

NHTSA won't urge GM drivers to park recalled cars

Prepared for some even more automobile news? We have a great article today that you should really read. Stay up to this day with all car related info and car transportation news right here.

Blumenthal: "We remain extremely concerned that GM and NHTSA are not doing enough to convey the seriousness of this defect..."

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WASHINGTON -- U.S. auto safety regulators have refused a request from two U.S. senators to encourage owners of cars affected by General Motors’ ignition switch recall to ground their cars until they can be repaired.

GM recalled 2.6 million cars in February over the faulty switch, which can be jolted out of position, cutting off the engine and the airbags. The defect has been linked to dozens of crashes in which the airbags did not deploy and at least 13 fatalities.

In an April 28 letter, Sens. Ed Markey, D-Mass., and Richard Blumenthal, D-Conn., urged the National Highway Traffic Safety Administration to advise owners of the recalled cars to stop driving them until they can be repaired.

NHTSA said this week in a response to Markey and Blumenthal that such an action “is not necessary at this time.”



The agency said it reviewed tests in which GM simulated potholes, panic stops and angled railroad crossings, and concurred with GM’s advice to drive with the ignition key on its own, rather than on a key ring.

“Based on the agency’s engineering expertise, our consideration of the nature of the ignition switch defect, and the testing conducted, NHTSA is satisfied that for now, until the permanent remedy is applied, the safety risk posed by the defect in affected vehicles is sufficiently mitigated by GM’s recommended action,” the agency said in its letter, which was dated May 6.



The senators voiced disappointment Wednesday. “We remain extremely concerned that GM and NHTSA are not doing enough to convey the seriousness of this defect to owners of the affected cars, unnecessarily putting more lives at risk,” they said.

NHTSA continues to investigate why it took GM a decade to issue the recall after seeing early signs of problems with the ignition switch. Committees in the U.S. House and Senate have opened inquiries of their own.

GM has offered free loaner cars to affected customers, and said last month that it had loaned cars to 36,000 customers affected by the recall. The first batch of replacement parts arrived in dealerships in April.

You can reach Gabe Nelson at gnelson@crain.com.

http://www.autonews.com/article/20140507/OEM11/140509841/nhtsa-wont-urge-gm-drivers-to-park-recalled-cars

Tuesday, May 6, 2014

Fiat Chrysler posts Q1 net loss, trading profit stable

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From wire reports

May 6, 2014 - 4:31 pm ET -- UPDATED: 5/6/14 5:19 pm ET - adds link to report

Fiat Chrysler ended the first quarter of the year with a net loss, hit by one-time charges linked to a deal to fully acquire Chrysler and by currency fluctuations.

The net loss for the quarter was 319 million euros ($444 million) compared with a net profit of 31 million euros a year earlier, the company said in a statement on Tuesday. Excluding one-time items such as the devaluation of the Venezuelan bolivar, net profit was 71 million euros.

Trading profit, or earnings before interest, taxes and one-time items, fell to 622 million euros from 631 million euros a year earlier. Net industrial debt climbed to 10 billion euros at the end of March from 7 billion euros three months earlier.

The company's North American operations recorded an Ebit loss of 117 million euros compared with a profit of 400 million euros a year ago due to a 491 million-euro charge stemming from the Chrysler deal. The Ebit loss in Europe narrowed to 72 million euros from 107 million euros.

The manufacturer’s global revenue jumped 11 percent to 22.1 billion euros, as sales climbed 9.1 percent to 1.11 million vehicles.

Fiat stuck to its goal to increase trading profit to 3.6 billion euros to 4 billion euros in 2014 from 3.39 billion euros last year.



Higher targets

Fiat outlined targets on Tuesday to boost annual deliveries to 7 million vehicles in 2018 from 4.4 million now following its merger with Chrysler.

The company also said it expects to increase its net profit fivefold by 2018 to around 5 billion euros ($6.97 billion), boosted by a major increase in sales of its Jeep SUVs and an overhaul of its Alfa Romeo brand.

In a 2014-2018 business plan, the carmaker said it expects revenue to rise to around 132 billion euros ($183.92 billion) by 2018 from 86.8 billion euros last year.

Net industrial debt is seen peaking at around 11 billion euros in 2015, up from an adjusted 9.7 billion at the end of 2013, while total capital expenditure and r&d spending over the 2014-18 period is forecast at around 48 billion euros, averaging around 9.5 billion euros per year.

The company said no capital increases and no dividends are included in the 2014-18 plan. The company plans to complete the move of its primary listing to the New York Stock Exchange by the end of this year, and plans to achieve investment grade credit metrics by 2017.

Reuters and Bloomberg contributed to this report

Contact Automotive News

http://www.autonews.com/article/20140506/COPY01/305069920/fiat-chrysler-posts-q1-net-loss-trading-profit-stable

Monday, May 5, 2014

Cobalt Announces Vehicle Transport To Washington State

Trying to find some even more shipping info? You are in the right area. Washington State car transportation is necessary if you are transferring to the Pacific Northwest. Check out the video below for further details.

Shipping your car, truck, or motorcycle to or from the state of Washington? Cobalt Auto Transport Services offers great rates and customer service. Visit http://cobaltautoservices.com/us-transport/washington-auto-transport/ or call toll free 855-242-8090 for more info!

In addition to shipping information, you can find out the details that will make your car shipment go much more smoothly. There are several items that you can take care of beforehand, such as removing your personal belongings, that will make shipping your car a piece of cake with Cobalt.

If you are moving to or visiting the Northwest, be sure to plan for the weather that can occur in WA and OR. These states are both known for rain, but there is much more to each state - planning ahead for your car upkeep and safety will pay off over time.

If you are ready to ship your car, let us know today by visiting our site or calling us for your free quote.

General Motors' first quarter profits plunge after major product recall

Ready for some more automotive information? We have an excellent short article today that you must really check out. Stay up to this day with all car related info and automobile transportation news right here.


General Motors' first quarter profits plunge after major product recall

The ignition switch of a 2005 Chevrolet Cobalt, manufactured by General Motors. Photograph: Molly Riley/AP

First quarter profits at General Motors have plunged by 88% as the US-based carmaker was hit by a $1.3bn (£774m) charge to cover the cost of a major product recall.



The company, which manufactures brands such as Cadillac and Chevrolet, plus Vauxhall at Ellesmere Port and Luton, also took a $300m hit for restructuring parts of its European business.

"Obviously, the recall campaign charges in the first quarter overshadows the headline results, but if you look underneath that, we had strong performance across the board," said Chuck Stevens, GM's chief financial officer.

But he insisted it was too early to say whether the vehicle manufacturer would need to take further financial charges over defective ignition switches which have been linked to at least 13 deaths.

GM reported net income during the first three months of 2014 of $125m, compared with $865m in the same period last year, while sales rose to $37.4bn, up from $36.9bn in 2013.

Analysts said it was GM's worst quarterly performance since it unveiled a net loss after leaving bankruptcy protection in 2009, but many had been expecting worse and its shares fell only 1.5%.

"It should be good enough to ease concerns," Citi analyst Itay Michaeli told Reuters. "Expectations were very low. People were just kind of nervous overall about how the quarter would look. The story really here though, in terms of fundamentals, is better performance in the international regions."



GM was until 2011 the biggest car seller in the world but it has been knocked off the top spot by Japan's Toyota. The latter has just announced first quarter sales bigger than GM and Volkswagen, the German contender for the top spot, after soaring sales in China.

In North America GM experienced higher than expected sales of its more lucrative versions of the redesigned Chevrolet Silverado and GMC Sierra full-size pickup trucks.

"The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market," said Mary Barra, the company's chief executive .

"Our focus remains on creating the world's best vehicles with the highest levels of safety, quality and customer service, while aggressively addressing our business opportunities and challenges globally," she added.

Some GM ignition switches have made vehicle engines stall and stopped airbags from working while halting the use of power steering and brakes.

The company is under investigation by US safety regulators, Congress and the department of justice over its failure to detect the faulty part for more than a decade. There have been calls from some quarters for GM to set up a victim compensation fund.

Of the $1.3bn to cover the various recalls in the first quarter, GM said about $700m was related to the defective ignition switches, including $300m to cover the cost of courtesy cars for owners who do not want to drive the cars affected by the recall switch.

The loss in Europe widened to $284m from $152m last year, but the quarter included $200m in restructuring costs already outlined by the company. Stevens said GM was seeing real progress in Europe and still believed financial results there would return to break even by the middle of the decade.

In the past there have been concerns that GM's factories at Ellesmere Port on Merseyside and Luton in Bedfordshire could close. The latter lost its car manufacturing more than a decade ago and now only makes vans. Two years ago the future of Ellesmere Port was assured until at least 2020 after it was chosen to build a new generation of Astra cars.

GM, like many other global car companies, was badly hit by the 2008 financial crisis, which led to a massive downturn in consumer spending. The group was put into court-assisted Chapter 11 bankruptcy in 2009 and later re-emerged as a going concern after public money was pumped into the business.

http://www.theguardian.com/business/2014/apr/24/general-motors-first-quarter-profits-plunge-product-recall

Sunday, May 4, 2014

Palmer: Infiniti considering a compact crossover

Ready for some more vehicle news? We have a good article today that you ought to really read. Stay up to this day with all vehicle related information and car transportation news here.

2014 BEIJING AUTO SHOW

Automotive News

May 4, 2014 - 12:01 am ET

BEIJING -- Infiniti is considering a small crossover below the QX50, possibly joining other luxury brands that are rushing into the segment.



Andy Palmer, the Nissan Motor Corp. executive vice president who oversees Infiniti, said that the brand could use an offering at the bottom of its range and that the vehicle would likely debut in China before migrating to other markets.

"Is there room for a QX30? Most definitely. Could you come below that? Well, yes. ... There's room," Palmer told Automotive News at the Beijing auto show.

"Would we come first in China? I think so. I think if we were going to start anywhere it would be hard for us to start with that sized car in the United States or in Europe," he said.

Palmer called press reports that Nissan plans a Juke-based Infiniti compact crossover for China speculation.

But he said the quirky subcompact crossover from Nissan would provide an ideal platform to underpin an Infiniti counterpart.

"Does Juke represent a great platform to start with? Of course it does," he said.

-- Hans Greimel

http://www.autonews.com/article/20140504/OEM03/305059959/palmer-infiniti-considering-a-compact-crossover