Recent rumors suggesting that Mazda could be preparing an entry in the rapidly-expanding subcompact crossover segment have gained credence following comments from Seita Kanai, who next month will become the automaker’s chairman.

Asked by Australia’s Motoring about the possibility of a CUV version of the next Mazda2, Kanai stopped short of providing an official confirmation, but did reply that such a model is “well within the scope of [Mazda's product range]…it’s fully feasible.”

A utility vehicle positioned below the CX-5, which would likely be badged as the CX-3, would give Mazda a player in a segment that’s poised for significant growth both in the U.S. and worldwide. In the states, it would compete against the likes of the Honda HR-V and Chevrolet Trax.

Over the course of the interview, Kanai also revealed that Mazda has no plans to introduce a “Mazda1″ minicar that is smaller than the Mazda2.

“If you ask me ‘can Mazda be successful by entering that [micro-car] segment?’ the answer is no, because we cannot make money. In terms of models Mazda will develop we’re not considering models below Mazda2.”

General Motors’ internal investigation, headed by outside attorney Anton Valukas, has come under fire by legislators who describe it as a public-relations campaign that still fails to answer serious questions regarding the ignition-switch fiasco.

The report describes how a multitude of failures and missteps led to the botched recall for the defective part. Valukas appeared to conclude that incompetence and complacency were at the root of the problem, rather than a conscious decision to prioritize costs over safety

The findings led the company to fire 15 employees, a group which reportedly includes several high-ranking internal attorneys and managers, however it cleared CEO Mary Barra and other top executives.

“The GM public relations campaign is pitching this report as an independent review. In truth, it seems like the best report money can buy,” said Senator Richard Blumenthal (D-Conn.). “It absolves upper management, denies deliberate wrongdoing, and dismisses corporate culpability.”

Blumenthal acknowledged that the firings represented more action than GM has taken in the past, however he criticized the company for continuing to dodge questions surrounding the component revision without issuing a new part number. The senator is also waiting for a straight explanation of the discrepancy between GM’s own death count, which sits at 13, and outside analysis suggesting the total could be more than five times higher.

“GM can show real good faith by revealing all its sealed settlements, disclosing all documents, and making available all the officials, past and present, who have relevant knowledge,” Blumenthal added. “The new GM must acknowledge moral and legal responsibility to the victims and their families.”

GM has not yet announced the size of its victim fund, or specific details regarding how it will be administered by Kenneth Feinberg.

The company is currently being investigated by federal authorities for potential criminal wrongdoing. Critics are waiting until the official inquiries have been completed before determining if Valukas’ report provides the whole story.

A new study finds that the average fuel economy of new cars purchased in the United States rose to a record high in May.

The average efficiency rating of cars, light trucks, vans and SUVs climbed to 25.6 mpg last month, according to the University of Michigan Transportation Research Institute. That figure represents an improvement of 0.4 mpg over April and is 0.2 mpg better than the previous record, which was set back in March.

“This increase likely reflects the continuing high price of gasoline,” researcher Michael Sivak said in a statement.

Since October 2007, the month when the institute began monitoring mileage data, the average has increased by 5.5 mpg.

The institute also found that the average monthly emissions of greenhouse gasses generated by each driver in the U.S. in March, the most recent month for which data is available, dipped 22 percent from October 2007.

Photos by Mark Elias.

California was initially excluded from Tesla Motors’ list of potential sites for its Gigafactory battery plant, however state legislators are now scrambling to eliminate the bureaucratic red tape that initially sent the company looking elsewhere.

Senate President Pro Tem Darrel Steinberg (D-Sacramento) and Ted Gaines (R-Roseville) have joined forces to push a bipartisan bill, SB 1309, that aims to deliver both financial and regulatory incentives “to expedite groundbreaking and construction” of the plant in California.

Although Tesla is based in California and operates a manufacturing plant in Fremont, the company has viewed the state’s maze of permitting processes and environmental reviews as a threat to quickly constructing the $5 billion battery factory.

“Everything is on the table – tax credits, investment credits, hiring credits,” said Gaines. “We need to show Tesla that we’ll cut through the knot of red tape that frustrates companies in this state and prove that California is open for business.”

The company has promised to break ground at two sites and begin construction simultaneously to protect against any unforeseen delays. The strategy may also serve to fuel an incentive bidding war for the final two contenders, encouraging each state to sweeten its deal even after the facilities are being built.

SB 1309 is continuing to be refined as legislators hear input from businesses, environmentalists, local governments and other stakeholders. It will require a two-thirds majority vote to pass the Senate and Assembly.

Chrysler has announced a recall that will seek to address a potential electrical component corrosion issue in roughly 21,000 Ram ProMaster vans.

Dealers will inspect – and if necessary, replace – various electrical components that support propulsion, airbag deployment and external lighting. Moisture-resistant sealant will be applied to all components, whether replaced or not.

Chrysler says the campaign was sparked by a small number of cases in which blown fuses were linked to moisture exposure.

“In each case, moisture that was brought into the vehicle via wet footwear or other means had seeped into an in-cabin compartment that houses its battery and other component,” the company said in a prepared statement. “There are no issues with the vehicle’s imperviousness to rain, snow or ice.”

No accidents or injuries have been linked to the recall.

Of the affected vehicles, an estimated 17,700 are in the U.S., 2,400 are in Canada and 900 are in Mexico. Most were in dealer inventory or in transit to dealers as Chrysler was investigating the problem.

The recall is the ProMaster’s second; back in March, 6,800 vans were called back over potentially damaged brake hoses.

Photos by Nat Shirley.