• Former GM CEOs may face Senate grilling

    April 24, 2014
    General Motors’ fresh CEO Mary Barra has taken most of the flak over the ignition-switch debacle, however former executives may not be immune from public grilling at congressional hearings.

    Connecticut Senator Richard Blumenthal, a former Attorney General, has reportedly called for the company’s ex-CEOs to help answer questions about what went wrong under their leadership.

    The legislator suggests GM has failed to answer “a whole set of questions on why there were so many delays in taking action,” according to an interview with Reuters. “Of course we have to go back to the prior CEOs.”

    Former GM chief Dan Akerson sits at the top of Blumenthal’s list of executives to question. Akerson succeeded Ed Whitacre to take the helm in 2010, and made a well-timed exit just weeks before the ignition-switch recall was announced under the new leadership of Mary Barra.

    Although Barra has worked at GM for decades, she claims to have been first informed of the situation immediately prior to the recall announcement. The company has dodged specific questions by referring to its own internal investigation, which won’t be ready for several weeks.

    When the facts are in, we will be transparent and hold ourselves accountable,” said GM spokesman James Cain in a follow-up statement.

    Critics suggest the recall delays can be blamed on a wider dysfunction within the company’s ranks, an unsurprising result of a penny-pinching ethos that was reportedly enforced from the top as the company struggled to remain profitable in the early 2000s.

    It is unclear if the former executives will be asked to testify, as invitees to the next round of hearings will be decided by Senator Claire McCaskill.

  • VW promises big changes for updated 2016 Passat

    April 23, 2014

    Volkswagen of America president and CEO Michael Horn has revealed that an upcoming facelift will represent a “big step” forward for the Passat midsize sedan.

    Slated to arrive for the 2016 model year, the update will go far beyond the mild nip-and-tuck seen in the 2015 Jetta, Horn stated in an interview with Motor Trend.


    “The Jetta [refresh] now is a decent step…it’s nice, makes it more sporty, makes it more dynamic,” Horn said. “But it’s on the lower end of what we can do. But the Passat [refresh] is very strong. We go much further.”

    In the past, Horn has suggested that the changes for 2016 will include new driver assistance technologies, additional features and, perhaps most importantly, a more dynamic look. Precise details are unavailable, but given how the segment’s styling bar has been raised by rivals like the Ford Fusion and Mazda6, the facelifted Passat might be noticeably less conservative than the current model.


    Horn disclosed a few other nuggets of info during the course of the MT interview, saying that a new-generation Jetta will arrive in 2017 and utilize the same MQB modular architecture as the latest Golf. Asked whether the next Scirocco could make its way to U.S. shores, he didn’t completely shut the door on the possibility, replying “We could see it if there’s a Scirocco successor.”

  • NHTSA investigates 2014 Impala over braking problem

    April 23, 2014
    The National Highway Traffic Safety Administration has opened an investigation into potential braking problems with the 2014 Chevrolet Impala.

    The inquiry has been sparked by a single complaint that involved an accident but no fatalities. The driver suggests “inappropriate activation” of the emergency braking system caused the Impala to stop with full braking force from a speed of approximately 40 mph, resulting in the vehicle being struck from behind.

    The drive claims to have experienced the same glitch with the Forward Collision Avoidance system on several other occasions at different locations. When the accident occurred, the road was said to be free of traffic ahead of the car. Three to four beeps from the collision avoidance system served as a momentary warning before braking force was allegedly applied.

    It is unclear if the same problem has been experienced by other Impala drivers, though the NHTSA is not waiting until it receives additional reports before initiating a formal evaluation.

    If the problem leads to a recall, it will likely be limited to 2014-model-year Impala sedans equipped with the collision avoidance system.

  • Tesla delivers first Model S sedans in China, apologizes for shipping delays

    April 23, 2014
    Tesla Motors has brought its first Model S sedans to customers in China, delivering a handful of electric cars at a ceremony in Beijing.

    In attendance at the event, CEO Elon Musk thanked the early adopters and reiterated the country’s importance for the startup’s expansion plans.

    The Model S isn’t cheap in China, fetching $121,000 for the base model. The price disparity is mostly blamed on import duties, though shipping costs also play a role. To address both costs, Tesla expects to establish a factory in China to build its vehicles locally.

    The first cars were delivered at the company’s headquarters, which also serves as the first Supercharger station. Aside from lower prices, the company also views charging infrastructure as necessary to expand in China. It is preparing to spend several hundred million dollars to achieve such goals.

    My instructions to the team are to spend money as fast as they can spend it without wasting it,” Musk said, as quoted by the Detroit Free Press.

    Despite the celebration and first deliveries to a few customers, some early are frustrated over alleged delivery delays. The company does not expect to begin shipping sedans outside of Beijing and Shanghai until June, due to a lack of service centers.

    We’ve delayed some of the customer deliveries just for a few months in order to ensure that when they got their car they would have a great experience and some of them were a bit upset about that,” Musk said, according to a Financial Times report. “I met with them earlier today and apologized. I think we resolved the issue.”

  • Test drive a Cadillac, get $100

    April 23, 2014
    General Motors’ Cadillac brand is hoping to lure more buyers to showrooms by offering a $100 gift card to qualified shoppers that take a test drive.

    Launched last month, Cadillac is hopeful the $100 test drive offer will help reverse slipping sales at the luxury division. Following a healthy 21 percent sales growth in 2013, Cadillac’s U.S. sales have dipped 6.3 percent during the early part of 2014.

    “This is our way of way of trying to reach out and get people,” Bill Peffer, U.S. vice president for Cadillac sales and service, told The Detroit News. “The way to conquest in that super competitive market is to get people’s seats in seats.”


    The Visa prepaid gift card offer is open to anyone 21 years of age or older that currently owns a 2004 or newer non-GM vehicle. The person must also have a valid driver’s license and proof of insurance. If shoppers sign the dotted line for a new Cadillac, the automaker will throw in a $1,500 incentive.


    Although the promotion might seem a little gimmicky, analysts say test drive offers can be an effective way to drive sales.


    “It’s actually a pretty inexpensive marketing campaign,” said Larry Dominique, president of ALG.


    Peffer notes that Cadillac’s lineup has changed dramatically since some shoppers may have last stopped by a showroom. In the last few years Cadillac has launched the all-new ATS and CTS sports sedans, and is currently in the midst of rolling out the new 2015 Escalade SUV and ATS coupe.

    Photo by Nat Shirley.

  • VW to invest $25B on new EVs and hybrids for China

    April 23, 2014
    Volkswagen Group has announced an 18 billion euro (~$25 billion USD) investment initiative that will focus on developing new electric vehicles and hybrids for the Chinese market.

    The company already offers the Porsche Panamera S E-hybrid in China, ahead of the electric up! and e-Golf later this year. The Audi A3 e-tron and VW Golf GTE are scheduled to arrive at local showrooms sometime in 2015.

    Looking forward to 2016, the German automaker is developing two plug-in hybrids that will be specific to the Chinese market: an Audi A6 and an unnamed “mid-size limousine” that will carry a VW badge.

    Both China-exclusive models are being developed together through joint venture partners FAW Volkswagen and Shanghai Volkswagen. They will be produced locally, with the help of new factories and approximately 20,000 new skilled jobs in the country.

    China is the Volkswagen Group’s largest single market and plays a key role in our Strategy 2018″ said VW Group CEO Prof. Dr. Martin Winterkorn. “For 2014, we have once again set our sights on double-digit growth in China and are aiming to deliver over 3.5 million vehicles to customers for the first time in a calendar year.”

  • Ford to announce new CEO next month?

    April 22, 2014
    Ford will soon announce a succession plan that will see Mark Fields take over Alan Mulally’s position as company CEO, inside sources have revealed.

    Rumored for months, two unnamed sources have revealed to Bloomberg that Ford will formally announce a succession plan for its top executive position as early as May 1. Fields, Ford’s current COO, will reportedly take over for Mulally, who has been the company’s chief executive since 2006.

    Ford put Fields in a position to take over as CEO when it promoted the 53-year-old to its second-highest executive position in 2012.


    A 25-year Ford veteran, Fields will have some pretty big shoes to fill when he assumes the position of CEO. Mulally, 68, is credited with saving Ford from bankruptcy and returning the company to profitability. Under Mulally’s leadership, Ford has pocketed more than $42 billion, compared to a $30.1 billion loss between 2006 and 2008.


    Although nothing is official, Mulally will likely stay on at Ford at least in the short-term in some kind of advisory role.

  • Jeep to begin Chinese production in 2015

    April 22, 2014

    Fiat and joint venture partner Guangzhou Automobile Group have officially announced plans to begin Jeep production in China by late 2015.

    Under the terms of their agreement, the two automakers will assemble three Jeep models – likely the Cherokee, Renegade and Wrangler – specifically for the Chinese market at a new factory that will be built in the city of Guangzhou. The facility, which will have an annual capacity of 60,000 units, may also screw together a new, China-specific Jeep model in the future.


    Though it comes after nearly two-and-a-half years of negotiations, the move will be well worth Fiat’s time as it will allow the automaker to finally avoid the hefty import tariffs that currently drive Jeep prices upwards and put a damper on Chinese sales.


    “Today’s announcement represents the next chapter in the proper utilization and expansion on a global scale of the Jeep brand,” said Fiat-Chrysler CEO Sergio Marchionne. “Equally important is our continued development in the Chinese market with an established and respected partner such as Guangzhou Automobile Group.”


    Jeep was actually the first foreign automaker to build vehicles in China, with local assembly starting in 1984, but the brand ended production in the country in 2006.

  • VW confirms Golf R 400 concept will see production

    April 22, 2014
    It did not take long for Volkswagen to confirm that its Golf R 400 concept will be headed to production.

    The company just last week insisted that the hatch will not be added to its formal lineup. Research and development head Heinz-Jakob Neusser suggests the car has already been approved for production, however, according to his conversation with Car and Driver.

    The executive also shed more light on the R 400′s upgraded powerplant, based on the same 2.0-liter four-cylinder EA888 mill that powers the basic Golf R and many other models. It is said to have only required minor modifications to handle higher turbocharger boost and more than 100 extra horsepower.

    Extra ponies and lighter weight help bring the R 400 up to 62 mph from a standstill in just 3.9 seconds, with a ceiling of 174 mph.

    The modifications could presumably serve to improve performance specs in other VW and Audi vehicles powered by the EA888, however the company has yet to announce any plans to expand use of the retuned engine.

    Availability and pricing details for the Golf R 400 remain unclear, leaving uncertainty surrounding a potential US launch.

  • Daimler to resurrect Maybach name for flagship S-Class

    April 22, 2014
    Daimler’s is set to dust off its Maybach brand once again for a high-end version of its Mercedes-Benz S-Class sedan.

    Laid to rest in 2011 due to slipping sales, Daimler will revive the Maybach brand at the end of the year for a super luxury version of its all-new S-Class, an insider has revealed to Reuters. The Maybach will first be shown in the United States at November’s Los Angeles auto show.

    Based on the long-wheelbase version of the S-Class, the Maybach model will feature an additional 20mm between its axles to accommodate an even roomier back seat. The Maybach will also feature soft-touch leathers and bespoke materials throughout its interior to lure buyers from Bentley showrooms.


    In order to hustle around that extra weight, the Maybach will be powered by a twin-turbocharged V12. Buyers will be able to order their Maybach with a full armor package.


    As you might expect, all of that extra luxury won’t come cheap. Insiders say the Maybach could double the price of a S600 L model, which currently retails for 165,000 euros ($228,000) in Europe.


    Despite a price tag that is expected to easily stretch into the $400,000 range, the Maybach won’t be Mercedes’ range-topping S-Class model. That distinction will belong to an upcoming Pullman limousine that will boast an extra three feet of wheelbase and a row of rear-facing seats. No launch date has been pinned down for the Pullman.