• GM recalls another 824K vehicles over faulty ignition switch

    March 29, 2014
    General Motors has expanded its ignition-switch recall yet again, adding another 824,000 vehicles to the list.

    Although the company changed the switch design in 2006, capping the initial recall at 2007, some of the older parts could have remained in dealer inventories for several more years. In a limited number of cases, newer vehicles that were built with the revised switch could have been unknowingly repaired with a defective part.

    About 95,000 faulty switches were sold to dealers and aftermarket wholesalers,” GM noted. “Of those, about 90,000 were used to repair older vehicles that were repaired before they were recalled in February.”

    The company is unaware of any accidents, deaths or fatalities associated with the estimated 5,000 defective units that made their way into newer vehicles. It is nonetheless taking the “extraordinary step” of recalling all compatible years because it is “not feasible” to track the parts.

    Vehicles added to the recall include 2008-2011 Chevrolet HHRs, along with 2008 to 2010 Chevrolet Cobalts, Pontiac Solstices, Pontiac G5s and Saturn Skys.

    “We are taking no chances with safety,” Barra said. “Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn’t practical.”

    Although the company promises to be approaching the situation with quick action and an “abundance of caution,” the announcement timing — at 5:15pm on a Friday — suggests the company may be trying to minimize additional attention.

    The announcement comes after weeks of nearly continuous bad press, including several lawsuits and investigations related to the recall. Reports also point to a mysterious sales halt for the Cruze — Chevrolet’s best-selling model in the US — without any official disclosure of an apparent problem.

  • Ford CEO Mulally earned $23.2 million last year

    March 29, 2014
    Ford chief executive officer Alan Mulally pocketed a cool $23.2 million in cash and options last year, reflecting the company’s strong performance in 2013.

    According to a proxy released by Ford on Friday, Mulally took home $23.2 million in 2013 in the form of base pay, bonuses, stocks and personal expenses. That total included a $2 million salary and a $5.88 cash bonus.

    Mulally’s 2013 compensation was a significant jump over the $20.9 million he earned in 2012, but down from his $29.5 million he pulled in in 2011.


    Mulally’s heightened compensation was tied to Ford’s strong performance in 2013. Last year the Dearborn-based automaker posted $8.6 billion in pre-tax profit, approaching the company’s all-time record. Since taking the helm at Ford in 2006, Mulally has earned $183 million.


    Bill Ford Jr. was the second-highest paid executive at Ford last year with a take home of $11.95 million. Mark Fields, Ford chief operating officer, saw his pay climb from $8.8 million in 2012 to $10.2 million last year.


    Ford is a solid place for a CEO to make a living – at cross-town rival General Motors, CEO Mary Barra is expected to pull down “just” $14.4 million this year.

  • French dealers to sue GM over Chevrolet withdraw from Europe

    March 29, 2014
    General Motors has reportedly received a lawsuit threat from disgruntled Chevrolet dealers in France.

    The US automaker late last year confirmed plans to completely pull its Chevrolet brand out of European markets, as sales have failed to gain much traction in the past five years.

    A group of retailers is said to be preparing to announce its legal action next week, accusing the company of providing unacceptable compensation for stepping away from its franchise contracts. They are reportedly seeking damages for restructuring costs and a negative impact on the value of their inventory and businesses in general.

    A GM spokesman told Reuters that “all contracts have been respected,” and the company is negotiating cancellations individually with each dealer.

    French customers will still be able to buy a limited number of Chevrolet models after the pullout, however they will be found in Opel showrooms. Dealers associated with GM’s German brand are also expected to honor Chevrolet warranties and provide parts or service.

  • Jaguar weighing four-cylinder F-Type

    March 29, 2014

    Jaguar has confirmed rumors that it is considering whether to fit a turbocharged four-cylinder from its upcoming “Hotfire” engine family under the hood of the F-Type sports car.

    “As long as we can deliver the character and performance we expect of the car, we would be open to a four cylinder,” F-Type Coupe program director Russ Varney told Auto Express. “These days, I don’t think the engine configuration is important. It’s the power and the torque and the way it delivers them that’s important.”


    More than just an efficiency-enhancing option, the turbo four would trim pounds and improve weight distribution compared with the entry-level motor, a 340-horsepower 3.0-liter supercharged V6. Those factors could potentially make it more of an enthusiast’s option than the six, especially given the level of output Jaguar is eyeing for the mill.


    “We like the sound of any configuration of engine that gives 350bhp and it does not matter how many cylinders it uses to deliver that,” Varney said. “As long as we can deliver an honesty and legitimacy about the performance of the F-Type, then we can use whatever powertrain we like. If it brings some other benefits, like lighter weight and lower consumption, then why would we not do it?”

  • BMW confirms X7 SUV, production heading to South Carolina

    March 29, 2014
    As expected, BMW has confirmed plans to build the X7. The announcement was made at the company’s South Carolina plant, which will serve as the exclusive production facility for the all-new SUV.

    I have been asked many times: ‘Why don’t you offer a BMW X model beyond the BMW X5?’ And today, I’m happy to provide the answer to that question,” said BMW chairman Dr. Norbert Reithofer. “We have decided to develop and build a totally new X model – the new BMW X7.”

    The company has yet to announce full details surrounding the new SUV, though separate rumors suggest the German company may be co-developing a large SUV with partner Rolls-Royce.

    I promise this SAV will also be highly fuel efficient while offering outstanding driving performance,” Reithofer added. “It will be a true BMW.”

    Investments of approximately $1 billion will help the Spartanburg plant achieve a 50-percent jump in production capacity, representing 450,000 vehicles annually, by the end of 2016. The investment will also increase the workforce by 10 percent, adding 800 jobs.

    The X7 isn’t expected to arrive until 2018, but it will be preceded by another new model — the X4 — that will also be built in South Carolina.