• BMW recalls i8 hybrid to fix stability control system

    January 13, 2016

    BMW has issued its second recall for the BMW i8 hybrid, citing a potential problem with the dynamic stability control (DSC) system.

    The company in November received notification from its DSC hydraulic unit supplier of a possible manufacturing error. The problem is said to restrict movement of the hydraulic pistons, negatively affecting DSC performance.

    “Impaired DSC functionality may negatively impact vehicle handling and braking and increase the risk of a crash,” the recall documents warn.

    BMW initially believed any hydraulic problems would be identified during routine pump-circuit checks at the assembly plant, however an investigation and driving tests apparently confirmed that the defect could be present in production vehicles without prior detection.

    “BMW has not received any reports, nor is BMW otherwise aware, of any accidents or injuries related to this issue,” the company says.

    Service technicians have been instructed to inspect the DSC hydraulic unit and replace the component if necessary. The campaign is limited to just 16 units in the US market.

  • GM increases profit forecast for 2016

    January 13, 2016

    General Motors has revised its profit forecast for 2016, expecting an increase in earnings despite signs of trouble in China.

    The company expects its adjusted earnings per share to hit $5.25 to $5.75, up from an early October estimate of $5.00 to $5.50. EBIT-adjusted margin is also predicted to increase, along with free cash flow.

    Reflecting the optimistic expectations for 2016, the automaker has promised to nearly double its stock repurchase program to $9 billion. The initiative has also been extended through 2017, while dividends have been increased by six percent to $0.38 per share beginning in the first quarter of this year.

    “We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings,” said CEO Mary Barra at the Deutsche Bank Global Auto Industry Conference in Detroit this week.

    Profits are expected to be bolstered by global growth of the Chevrolet and Cadillac brands, increased sales in China, improved operating efficiencies and leadership in products and technology.

    “We are making the right investments and taking the actions necessary to lead in the transformation of personal mobility, and positioning the company to continue to drive shareholder value,” Barra added.

  • FCA CEO: Dodge Viper could live on

    January 13, 2016

    Jeep wasn’t the only FCA brand with some potential bombshell news at this year’s Detroit Auto Show. America’s supercar, the Dodge Viper, may not be entirely dead.

    During his news conference Monday, FCA CEO Sergio Marchionne told reporters that there is “[...] a possibility that a new version of the Viper may surface.”

    The FCA CEO felt that, given the company’s dedication to rear-wheel-drive platforms, the right ingredients exists to bring back the Viper. He called the timing of the potential revival “unclear,” and stressed that the V10 sports car’s current, exclusive architecture is not a viable approach to a future car, Automobile reports.

    What could that mean for a potential return of America’s reptilian record-setter? For starters, the V10 is likely out. The Alfa Romeo platforms that are expected to underpin FCA’s future rear-wheel-drive products were likely not engineered with the 8.4L engine in mind.

    Despite the V10′s modern tech and lightweight, all-aluminum construction (it’s the only performance engine in a Dodge product that can claim such), its roots go all the way back to Chrysler’s “LA” lineup of cam-in-block engines. Its closest relative, the 8.0L Magnum V10 truck engine, was discontinued in 2003.

    While the supercharged, iron-block Hemi V8 found in FCA’s current (and forthcoming) Hellcat products may not survive FCA’s transition to smaller, modernized platforms, the company’s performance brand engineers certainly aren’t opposed to building high-output engines. Could the future Viper be powered by a blown or boosted V8?

    More importantly, will Viper fans accept downsizing in a car that has been centered around excess since its inception?

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