Tag Archives: auto news

Kia Loses $40 Million for Death Caused by Defective Seatbelt

At the trial evidence was introduced by the law firm Cunningham Bounds that said in 2002, the National Highway Traffic Safety Administration inquired about the buckle problem, and in late December 2002 Kia issued a safety defect recall, but only for model years 1995 through 1998 vehicles.

Kia in response to the verdict said, “We maintain that the evidence at trial clearly demonstrated that the vehicle’s occupants were not wearing seat belts at the time of the accident. We will petition the court to set aside the verdict and if necessary, file an appeal with the Alabama Supreme Court.” Continue reading

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Honda Overseas and Japan Production Down Again in May

Honda Motor Company in Japan today announced that vehicle production declined by more than 50% for the month of May 2011. It was the third straight month that production dropped due to the ongoing negative effects of the Japan earthquake and tsunami in March. Continue reading

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Nissan Announces Ambitious Global Growth Plan

Things are going to get better during the next five years for Nissan Motor Company, the Yokohama based automaker announced this morning. In unveiling what is an ambitious six year business plan, Japan’s number two automaker said that it will deliver on average an all-new vehicle every six weeks for six years. As a result, the company’s global portfolio will have 66 vehicles and will cover 92% of all markets and segments, Nissan claimed. Continue reading

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Toyota Outlines Legal Woes in SEC Filing and Says Amounts Accrued for Defense, Thus Far, Will Not Have a Material Effect

However, Toyota also said that it cannot currently estimate its potential liability, damages or range of potential loss, if any, beyond the amounts accrued. This means that the resolution of the lawsuits could have an adverse effect on Toyota’s financial position, results of operations and cash flows.

Ford Motor Company’s attempt to improve its credit rating was recently impeded when a class action suit previously considered by Ford as not material resulted in a $2 billion judgement against it. Continue reading

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June New Vehicle Sales to Improve Slightly from a Weak May

Nonetheless, Power has reduced its 2011 retail sales forecast to a meager 10.5 million units from 10.6 million units. The forecast for total sales has been revised to 12.9 million units from 13 million units. Continue reading

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BMW Recalls X5 SUVs for a Bad Belt Tensioner

BMW is recalling 2012 model X5 SUVs in North America because the belt tensioner can fail as part of a larger global service action. Diesel engine models have a Czech Republic built tensioner with defective welds that can suddenly fail. If the belt tensioner fails a loss of power steering results, thereby increasing the possibility of a crash. Continue reading

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Quality Drops Drastically as Automakers Introduce New Models

After a four year run of improving quality, the trend has reversed itself as the initial quality of 2011 new vehicle launches has declined considerably in the latest study. Overall initial quality improved to an average of 107 problems per 100 vehicles (PP100) in 2011 from 109 PP100 in 2010. However, launch models – vehicles that are all-new or have had major redesigns – saw ratings drop by 10% to an average of 122 PP100 in 2011 from 111 PP100 in 2010. Continue reading

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Nissan Says Sales up Profits down for 2011 from Earthquake

Nissan Motor Company today said in a statement that it thinks full-year profits will fall 15% and net income may decline to ¥270 billion (~$3.4 billion) for 12 months ending 31 March 2012. That’s down from ¥319.2 billion compared to the 2010 fiscal year. The financial results were based on foreign exchange rate assumptions of ¥80.:$1 and ¥115:1€. Continue reading

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Americans Flying More, Driving Less as High Gasoline Prices Cut Auto Travel during the (Non) Independence Day Weekend

Travelers with household incomes of $50,000 or less is expected to decrease from 41% to 33%, while travelers with household incomes of more than $100,000 are expected to increase to 35% from 26%. Continue reading

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EPA Proposes 2012 Renewable Fuel, ‘13 Biomass Diesel Volumes. Cellulosic Lags Law by almost 500 Million Gallons

The bulk of the program is comprised of ethanol production that is heavily subsidized, while imports of less expensive, more efficient sugar cane versions are effectively blocked by taxes. Currently U.S. taxpayers are handing agribusiness a subsidy of about $7 billion annually to use corn to make ethanol, according to the Congressional Budget Office. Continue reading

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Honda Increases Global CO2 Emissions Reduction Targets

The Honda, Toyota and other similar announcements actually track the needed improvements in fuel efficiency as required by new European and U.S. fuel economy regulations. Continue reading

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Mazda Recalls Mazda 3 Models for Bad Windshield Wipers

Mazda is recalling more than 100,000 Mazda 3 and Mazdaspeed 3 cars from the 2008-2009 model years because the windshield wipers can stop working. The ground terminal of the Korean-built Bosch windshield wiper motor may have been bent during assembly. Over time the electrical resistance of the motor circuit may increase so that eventually the windshield wipers would not work. Continue reading

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Sonic Boom or Bust? Chevy Prices New Car Starting at $14,495

GM is now exploring just how much it can charge for a small car in an area where, typically, Detroit Three products needed roughly a 20% discount (or more) compared with facing Japanese competition. In this case there are, notably, the Honda Fit, Nissan Versa and Toyota Yaris all priced roughly the same as Sonic, from companies that up until now are the acknowledged small car leaders. Sonic also faces stiff competition from the upstart Koreans – Hyundai and Kia – whose competitive models significantly under price it. Continue reading

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Smallest Recall in History as Volkswagen Recalls Four Cars?

In what could be the smallest safety recall in history, Volkswagen of America is recalling four, yes, four 2012 CC cars. It seems that optional wheels and tires were installed when the cars were imported, but they did not have the correct tire pressure monitoring sensors in them. Continue reading

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European Car Sales Rise 7% in May. Still Lag Pre-Crisis Levels

European car sales are of concern for U.S. taxpayers because they have been undermining the financial performance of General Motors and Fiat, which controls Chrysler. Both GM’s Opel subsidiary and Fiat are struggling in Europe. Even Ford Motor results are negatively affected by Europe, which remains a drag on its earnings. Continue reading

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