BMW will announce plans to establish a new production base in Mexico later this week, a top government official has revealed.

After months of rumors, an unidentified government official has confirmed to Reuters that BMW will announce on Thursday plans to build a new Mexican production facility. The government official spoke on conditions of anonymity because the plans are not yet public.

BMW declined to confirm the report, but said “a decision will be made public” concerning the Mexican plant on July 3.

The new plant, which will be located either just north of Mexico City or in San Luis Potosi in central Mexico, is expected to cost BMW about $1 billion euros ($1.36 billion). The plant should be up and running by 2017 with an annual capacity of 100,000 units. Capacity will grow to 200,000 units by 2020.

BMW will likely use the plant to build its MINI line of vehicles, as well as smaller BMW-badged cars, such as the next-generation 1-Series.

The news follows closely on the heels of Daimler’s announcement that it will build its Mercedes-benz line of vehicles in Mexico with corporate partner Nissan. Volkswagen’s Audi will also soon build cars south of the boarder in order to reduce labor costs and move its supply base closer to the lucrative United States market.

General Motors has announced six new recalls covering more than 8.4 million vehicles. The vast majority of those vehicles recalled, 8,227,041 in all, are being called back due to an ignition switch issue.

Following a similar recall that covered more than 2.6 million vehicles, GM announced on Monday that it is calling back 8.22 million vehicles – 7.36 million of which are located in the United States – over a defective ignition switch. GM says the switches used in those vehicle can inadvertently slip out of the “run” position, disabling safety features like airbags and power steering.

The recall covers the 1997-2005 Chevrolet Malibu; 1998-2002 Oldsmobile Intrigue; 1999-2004 Oldsmobile Alero; 1999-2005 Pontiac Grand Am; 2000-2005 Chevrolet Impala; 2000-2005 Chevrolet Monte Carlo; 2004-2008 Pontiac Grand Prix; 2003-2014 Cadillac CTS; and 2004-2006 Cadillac SRX.

For whatever reason, GM separated the ignition switch recall into two separate campaigns – one covering the Cadillac models and the other covering the balance of vehicles listed.

GM says it is aware of seven crashes, eight injuries and three fatalities in those recalled vehicles, but added “there is no conclusive evidence that the defect condition caused those crashes.”

GM CEO Mary Barra said the ignition flaw was discovered after a comprehensive review of the company’s safety record.

“We undertook what I believe is the most comprehensive safety review in the history of our company because nothing is more important than the safety of our customers,” Barra said is a statement released to the media. “Our customers deserve more than we delivered in these vehicles. That has hardened my resolve to set a new industry standard for vehicle safety, quality and excellence.”

Separately, GM announced the recall of 20,134 2011-2014 Chevrolet Cruze; 2012-2014 Chevrolet Sonic; 2013-2014 Chevrolet Trax; 2013-2014 Buick Encore and 2014-2014 Buick Verano models because of an engine block heater cord that could become damaged in cold weather. Just 2,990 of those recalled vehicles are in the U.S.

GM’s fourth recall of the day was issued to address an insufficiently torqued fastener on 117 2014 Chevrolet Camaro, Chevrolet Impala, Buick Regal and Cadillac XTS models.

Just over 12,000 2007-2011 Chevrolet Silverado HD and GMC Sierra HD truck models equipped with an auxiliary battery are also being recalled because of an electrical problem that could spark and under-hood fire.

Lastly, GM is recalling 188,705 SUVs over an electrical short in the driver’s side door panel. That glitch could disable power lock and window features and possibly even overheat the module. The recall covers 2005-2007 Buick Rainier, Chevrolet TrailBlazer, GMC Envoy, Isuzu Ascender and Saab 9-7x models. Chevrolet TrailBlazer EXT and GMC Envoy XL models from the 2006 model year are also covered by the recall.

Volvo’s range-topping S80 sedan is coming up on its ninth model year, and a much-needed redesign is still two to three years away. But when it finally does arrive, the next-generation S80 will adopt much of the 2015 XC90 crossover’s stylish and high-tech cabin.

Citing an anonymous Volvo executive, Autocar reports that the XC90′s interior design language will eventually make its way into other Volvo models, beginning with the new S80.

While the 2015 XC90 has not been revealed in its entirety, Volvo has comprehensively detailed the interior of the crossover (picture above), which benefits from a modern, high-end appearance with Nappa leather upholstery, Birch wood trim and diamond-cut controls.

The centerpiece of the XC90′s dashboard is a tablet-size touchscreen that affords control of the infotainment system via multi-touch gestures such as swiping and pinching.

Expect all those elements, plus Apple CarPlay, Android Auto and a Bowers & Wilkins audio system, to make an appearance in the redesigned S80.

Along with its new interior, the S80 will also share its modular Scalable Platform Architecture with the XC90, along with a four-cylinder-only powertrain lineup. A plug-in hybrid system with a turbo four and an electric motor – together generating about 300 horsepower and 442 lb-ft of torque – is also possible.

New car sales are expected to drop this month compared with June 2013, but the decline has more to do with calendar variations than weakening demand.

With one fewer weekend to rack up sales than a year earlier, June will see a dip in unadjusted volume, most analysts predict. An average of ten estimates complied by Bloomberg suggests that total sales will fall by 2.6 percent to 1.36 million units.

Both General Motors and Ford are forecast to face a decrease, while Fiat Chrysler Automobiles and Nissan will likely be among the biggest gainers.

While overall new vehicles sales will be down, the Seasonally Adjusted Selling Rate is expected to rise to 16.3 million units, up from 15.9 million units last June. If that turns out to be the case, it would represent the third time in the past four months that the SAAR has surpassed 16 million units – a very healthy sign that the industry is still on pace to return to pre-recession sales levels in 2014.

Check back tomorrow for a in-depth look at June’s sales results.

Photo by Nat Shirley.

Ken Feinberg, the attorney handling compensation for victims of General Motors’ ignition recall, will set broader guidelines for payouts than first outlined by the Detroit automaker.

Feinberg revealed over the weekend that he will consider claims for any of the 2.6 million vehicles recalled by GM that were involved in an accident in which the airbags did not deploy. GM previously stated that the ignition switch recall was responsible for 54 crashes and 13 deaths, but Feinberg’s broader coverage of the problem means both of those figures will likely rise.

GM says the 2.6 million vehicles involved in the recall suffer from an ignition switch that can slip out of the “run” position, disabling the vehicle’s airbags and other functions, such as power steering and brakes.

Feinberg hasn’t announced how much the payouts will cost GM, but no cap is in place.

“It’s not as if we have to spend money wisely because there’s only a set amount set aside by GM,” he told Automotive News. “Whatever it costs, all eligible claims will be paid.”

Feinberg added that GM won’t appeal his findings.

“Once I render a final decision, GM has agreed it will honor that decision,” Feinberg said. “No appeals. No rejection. It must pay it.”

Payments will vary based on the circumstances of each crash. For example, for those cases involving death, GM could be forced to pay $5.1 million. In instances where severe injury occurred, GM could be be on the hook for $6.6 million. Victims with less severe injuries could be awarded as much as $500,000.

Feinberg is currently reviewing claims, with the process expected to conclude by next spring.