Monday, June 30, 2014

Mini Considering Optional Diesel Power for Next-Gen U.S.-Spec Countryman Crossover

Mini Considering Optional Diesel Power for Next-Gen U.S.-Spec Countryman Crossover

If there is a Mini that would benefit from a torquey, fuel-sipping diesel, it is the biggish and relatively heavy Countryman crossover. Luckily, that is exactly what Mini seems to be thinking, as well, because it is designing the next-generation U.S.-spec Countryman to at least be capable of offering an oil-burner.

The current Countryman can be ordered with a diesel in other markets, naturally, but its platform isn't designed to hold the urea tank and SCR filter required to meet U.S.-market emissions standards. That hurdle will be cleared with the next-gen model, we recently learned from a Mini executive.



Of course, Mini hasn't confirmed a diesel Countryman for our market, only that it will be possible to sell one here when the next-gen model arrives in 2017. The next Countryman will be built atop BMW's new front-wheel-drive platform, which is shared with the 2014 Mini Hardtop and the upcoming BMW 2-series Active Tourer.

Mini Considering Optional Diesel Power for Next-Gen U.S.-Spec Countryman Crossover



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GM Settling With Ignition-Switch Crash Victims Using No-Limit Fund, Payouts Start This Fall

GM Settling With Crash Victims in No-Limit Fund, Payouts Start This Fall

Just a few weeks after GM released its internal audit over the now infamous ignition-switch defect, the company has announced the details of its settlement fund for those affected. Crash victims and their families hurt by defective ignition switches that General Motors installed or repaired in 2.6 million recalled cars will see the first checks as early as November. The settlement fund starts taking claims August 1, 2014, and it has no payout cap. 

Kenneth Feinberg, the lawyer retained by GM since April who has managed settlements for victims of the Boston Marathon bombing and the BP oil spill, will have complete discretion—and GM won't be allowed to dispute any approved claims. As with his other settlements, the payouts will be quick, proportional, and relatively emotionless.



Here are the key takeaways from the proposed settlements:

  • Any crash involving the affected cars where the airbags did not deploy, even side airbags, are eligible for compensation. That means anyone who experienced stalls but were lucky enough to not crash or die won't get a penny. Pending class-action and individual lawsuits are still taking that side in court, and GM is trying to shield itself from those cases with a special clause written into its 2009 government-funded bankruptcy.
  • Payouts will take up to 90 days for cut-and-dry claims and up to 180 days for more complicated cases. None will be accepted after December 31, 2014, which ensures that this won't continue on forever and ever.
  • Evidence, in the form of event data recorders, police reports, photos, and anything else accident-related will be required, but since these crashes go back as far as a decade ago, not every duck needs to be in order, Feinberg says.
  • Established averages and all the actuarial equations used by insurance companies will be used here. That means rating economic losses due to income, income potential, age, location, kids, medical bills, and so forth. This is entirely a case-by-case basis and will not become public.
  • Non-economic losses, such as pain and suffering, will be capped for families of dead victims at $1 million each, plus $300,000 for a spouse and each dependent. For injured victims with short hospital stays up to 32 nights, their combined economic and non-economic losses will be capped between $20,000 and $500,000 each. Those with serious injuries, such as brain damage or loss of limbs, will be evaluated separately.
  • Anyone who waived their rights in a previous GM settlement can apply, although that settlement will be deducted from any new awarded amount.

The full text of Feinberg's settlement plan can be found here. GM has not estimated any cost for this fund, but you can bet it won't be cheap.



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General Motors Recalls 8.4 Million Vehicles

GM RenCen Storm Clouds

General Motors has issued a total of six recalls affecting some 8.4 million vehicles in North America, the majority of which have ignition-related issues.

Autoblog reports the following group totals 7,610,862 — 6,805,679 in the United States — and are being recalled for unintended key rotation:

  • 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

The second group totals 616,179 — 554,328 in the U.S. — and are being recalled for unintended key rotation due to bumping of key fob:

  • 2004-2006 Cadillac SRX
  • 2013-2014 Cadillac CTS

The third group totals 20,134 — 2,990 in the U.S. — and are being recalled for potential damage to the engine block heater power cord's insulation under extreme cold conditions:

  • 2011-2014 Chevrolet Cruze
  • 2012-2014 Chevrolet Sonic
  • 2013-2014 Chevrolet Trax
  • 2013-2014 Buick Encore
  • 2013-2014 Buick Verano

The fourth group totals 117 — 104 in the U.S. — and are being recalled over the Superjoint fastner not being torqued to spec prior to leaving the assembly line:

  • 2014 Chevrolet Camaro
  • 2014 Chevrolet Impala
  • 2014 Buick Regal
  • 2014 Cadillac XTS

The fifth group totals 12,002 — 9,731 in the U.S. — and are being recalled due to the underhood fuseable link potentially melting through electrical overloading, leading to smoke and fire damage to other electric wiring components:

  • 2007-2011 Chevrolet Silverado HD (with auxiliary battery)
  • 2007-2011 GMC Sierra HD (with auxiliary battery)

The sixth and final group totals 188,705 — 181,984 in the U.S. — and are being recalled over the potential for an electrical short to the driver's door module disabling the power lock and window switches, as well as overheating the module itself:

  • 2005-2007 Buick Ranier
  • 2005-2007 Chevrolet TrailBlazer
  • 2005-2007 GMC Envoy
  • 2005-2007 Isuzu Ascender
  • 2005-2007 Saab 9-7X
  • 2006 Chevrolet TrailBlazer EXT
  • 2006 GMC Envoy XL

In the press release issue by the automaker, CEO Mary Barra said her company undertook what she believed "is the most comprehensive safety review in the history of [GM] because nothing is more important than the safety of [GM's] customer." She added later on that if any other issues come to the automaker's attention, GM would "act appropriately and without hesitation" to recall and repair those vehicles. The automaker has recalled a total of 28 million vehicles since January of this year.



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More Details on GM's Latest — and Largest — Ignition-Related Recall

New-ignition-key

Today's GM recall encompassed 7.55 million cars in the U.S. and another 893,547 cars outside the country. About 97 percent stem from inadvertent rotation of the ignition key across a slew of 1997-2014 models, which sounds similar to the ignition-switch defects that spurred the recall of 2.19 million small cars between February and April.
 
Recall Alert: 6.8 Million Additional GM Vehicles for Ignition Key Fix

It's not, GM claims. The problem — and GM's solution — is closer to the automaker's more recent ignition-related recalls: 464,712 Chevrolet Camaros in the U.S. on June 13 and 3.16 million larger cars in the U.S. on June 16. Confused? That's because GM's ignition-related recalls, which are now responsible for more than half the automaker's 2014 U.S. recall total, are three separate, albeit related, categories:

GM says this latest recall stems from the second and third problems.

"It's [the] same sort of outcome, but it's not the same issue" as the small-car recall, said Alan Adler, the automaker's recall spokesman. "These are not bad parts."

It appears they are bad keys, at least insofar as what they allow to occur.

In the slew of 1997-2008 Chevrolet, Pontiac and Oldsmobile cars, Adler told us a slotted key ring allows heavy key chains to exert too much rotational force on the key. It's similar to the June 16 recall; click here to read more details on that.

In today's Cadillac CTS and SRX recall, "you've got the knee-bump [issue], which is similar to the Camaro" recall on June 13, Adler said. "Bumping is a possibility with the Cadillacs, and that was not the case with the other older vehicles."

Either way, he said GM will modify or replace the key.

"Depending on the type of key, it's either additional rings — two small, 4-by-6 millimeter rings — which would separate your key from your [remote] fob, so the fob would hang free," he said. "Or it is an insert to create a hole where the slot was, and you'd add the rings to that."

GM said in a press release that it's aware of seven crashes, eight injuries and three fatalities related to today's recall, but there isn't conclusive evidence that faulty ignitions were to blame.

"The three fatalities … those were all non-airbag-deployment cases," Adler said. "Now, there are lots of reasons that those airbags may not go off."

GM has "investigated it thoroughly," he added. "We cannot determine conclusively" if the airbag non-deployments were caused by ignition defects.

GM did not announce a timetable for key replacement, but Adler confirmed that today's recall, like the June 16 announcement, should require little time per car at the dealership. Customers won't be eligible for rental cars (though Cadillac dealers may have their own protocol), nor will they be able to file claims for GM's just-announced ignition switch compensation fund. In the meantime, they should drive with just the key — no key chain attached — in the ignition.

In total, today's announcement brings GM's 2014 recall total to 25.3 million in the U.S. plus another 3.2 million outside the country, or 28.5 million total. Remember, this doesn't mean GM has recalled 28.5 million cars, since some were recalled more than once. Still, any way you cut it, this has been a tumultuous year for the automaker, which recalled just 758,000 cars in 2013, according to NHTSA data via the New York Times.

Manufacturer image



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Recall Alert: 6.8 Million Additional GM Vehicles for Ignition Key Fix

2005-chevy-impala

Vehicles Affected: Approximately 6.8 million model-year 1997-2014 vehicles, including 1997-05 Chevrolet Malibu and 2000-05 Impala and Monte Carlo sedans; 1998-2002 Oldsmobile Intrigue and 1999-2004 Alero sedans; 1999-2005 Pontiac Grand Am and 2004-08 Grand Prix cars

The Problem: This is another expansion of one of three ignition recalls; this one related to a faulty key ring hole. Jarring effects from the road or a key ring carrying too much weight could cause the ignition switch to move out of the Run position, turning off the engine and most of the electrical components. In a crash, this could result in the airbags not deploying.

GM said it is aware of seven crashes with eight injuries and three fatalities. "The fatal crashes occurred in older model full-size sedans being recalled for inadvertent ignition key rotation. There is no conclusive evidence that the defect condition caused those crashes," the automaker said in a statement.

The Fix: GM said it will rework the key, adding an insert to it so that large items cannot be attached to the key.

What Owners Should Do: GM has not released an owner notification schedule but has said that until the repairs have been made, customers must remove all items from their key ring. Customers with questions can call Chevrolet at 800-630-2438, Oldsmobile at 800-630-6537 and Pontiac at 800-762-2737.

Need to Find a Dealer for Service? Go to Cars.com Service & Repair to find your local dealer.

More Recalls



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Recall Alert: 2013-2014 Cadillac CTS, 2004-2006 Cadillac SRX

2014-cadillac-cts

Vehicles Affected: Approximately 554,000 model-year 2013-14 Cadillac CTS sedans and 2004-06 SRX crossovers

The Problem: GM is reporting that the driver's knee could bump the key fob, causing the key to move out of the Run position. This could lead to a reduction or loss of power. This is an expansion of a previous recall.

The Fix: GM is changing the key's design; the change will make the ignition key and fob independent of each other. 

What Owners Should Do: The automaker has not yet provided an owner notification schedule; owners can call Cadillac at 800-333-4223 for more information.

Need to Find a Dealer for Service? Go to Cars.com Service & Repair to find your local dealer.

More Recalls



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Recall Alert: 3,000 2011-14 GM Compact Cars, Crossovers

2014ChevroletCruzeRecall

Vehicles Affected: Nearly 3,000 GM compact cars and crossovers, including model-year 2011-14 Chevrolet Cruzes and 2012-14 Sonics, as well as 2013-14 Chevrolet Trax and Buick Encore crossovers, and Buick Verano sedans

The Problem: Insulation on the engine block heater power cord, if equipped, may become damaged during very cold conditions.

The Fix: GM will notify owners and dealers will make the necessary repairs for free. The automaker has not yet announced a notification schedule.

What Owners Should Do: Owners can call Chevrolet at 800-222-1020 or Buick at 800-521-7300.

Need to Find a Dealer for Service? Go to Cars.com Service & Repair to find your local dealer.

More Recalls



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Ferrari Celebrates 15 Million Facebook Fans with Lap of Fiorano—in a LaFerrari [Video]

Ferrari LaFerrari

Ferrari's fan base can be broken into several tiers. The topmost tier, of course, belongs to those lucky few who own something with a prancing horse badge. That exclusive group is followed by a larger one consisting of those who have driven a Ferrari, then a few million more who've ogled the cars on the road, and as of last week, more than 15,000,000 who are fans of Ferrari on Facebook. To thank the latter group for its service, Ferrari has posted this new video of one very hot lap of its Fiorano test track in the spectacular new LaFerrari

Ferrari Celebrates 15 Million FB Likes With Sick Vid



Ferrari has many creative ways of thanking its owners, some of which we have written about before, but it might have just topped those efforts. This latest video features none other than Raffaelle de Simone, Ferrari's chief test driver, at the wheel, and it was actually shot from the passenger seat of the LaFerrari by a person wearing Google Glass. Yes, yes, we know—Google Glass. However, the video's gratuitous helping of wailing V-12 and sideways action makes it officially the least dorky thing ever recorded on Google's über-nerd device. So there's that.



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Recall Alert: 2005-2007 Midsize GM SUVs

2007BuickRanierRecall

Vehicles Affected: Nearly 182,000 midsize GM SUVs from the 2005-07 model years, including the Buick Rainier, Chevrolet TrailBlazer, GMC Envoy, Isuzu Ascender and Saab 9-7x, as well as model-year 2006 Chevrolet TrailBlazer EXTs and GMC Envoy XLs

The Problem: A possible electrical short in the driver's door module could disable the power door lock and window switches, and in rare cases overheat the module, according to the automaker.

The Fix: GM will notify owners and dealers will make the necessary repairs for free. The automaker has not yet announced a notification schedule.

What Owner Should Do: Owners can call Buick at 800-521-7300, Chevrolet at 800-222-1020, GMC at 866-996-9463 or Isuzu at 800-255-6727, and Saab owners can call Saab at (800) 955-9007.

Need to Find a Dealer for Service? Go to Cars.com Service & Repair to find your local dealer.

More Recalls



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Recall Alert: GM Adds 7.4 Million Vehicles to Ignition Switch Recall

2005-chevrolet-impala

Vehicles Affected: Approximately 7.4 million model-year 1997-2014 vehicles, including 1997-05 Chevrolet Malibu and 2000-05 Impala and Monte Carlo sedans; 1998-02 Oldsmobile Intrigue and 1999-04 Alero sedans; 1999-05 Pontiac Grand Am and 2004-08 Grand Prix sports cars; and 2003-14 Cadillac CTS sedans and 2004-06 SRX crossovers

The Problem: This is another expansion of GM's ignition switch recall, which was first announced in February; the ignition switch can become loose due to jarring effects from the road or from a key ring carrying too much weight. This can lead to the switch moving out of the Run position, turning off the engine and most of the electrical components. In a crash, this could result in the airbags not deploying.

The issue was previously linked to 13 deaths and many injuries. Related to this most recent expansion, GM said it is aware of seven more crashes with eight injuries and three fatalities. "The fatal crashes occurred in older model full-size sedans being recalled for inadvertent ignition key rotation. There is no conclusive evidence that the defect condition caused those crashes," the automaker said in a statement.

The Fix: Dealers will replace the ignition switch, which should prevent unintentional key movement, for free.

What Owners Should Do: GM has not released an owner notification schedule but has said that until the repairs have been made, customers must remove all items from their key ring. Customers with questions can call Cadillac at 800-458-8006, Chevrolet at 800-630-2438, Oldsmobile at 800-630-6537 and Pontiac at 800-762-2737.

Need to Find a Dealer for Service? Go to Cars.com Service & Repair to find your local dealer.

More Recalls



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Hyundai and Kia’s Shared Chief Designer Working on Unique Hyundai Look, Hints at Kia Sports Sedan

Intrado_300_4

Last year, Kia chief designer Peter Schreyer was given a pretty big new responsibility: Oversight of parent company Hyundai's design strategy, in addition to his role at Kia. He recently told us that he wants to create a signature "Hyundai face" in order to even better emphasize the different characteristics of the two Korean brands.

As Schreyer told us, "It is very important to keep the brands distinct. We need to be recognized as two brands." He added that "Kia is architectonical, very straight, while Hyundai is curvaceous, sometimes quite spectacular. They have done good work."

Moving forward, he aims to help Hyundai develop its own styling language, while avoiding extreme, non-functional shapes. It isn't presently clear whether Schreyer plans to scrap Hyundai's Fluidic Sculpture design language or merely hone it, but it seems like he's leaning toward the former. As proof, we offer into evidence Schreyer himself saying that the Intrado concept car, shown at the Geneva auto show this past March, is a good indication of where the brand could go and what its front graphic signature could look like. Aside from a few 2015 Genesis styling cues, the Intrado doesn't look like any current Hyundai product.



Speaking of future models, Schreyer emphasized the importance of the B-size (subcompact) SUV segment, especially in places like China and South America. Any potential Hyundai entry—previewed by the aforementioned Intrado—in this arena would take on the likes of Ford's EcoSport abroad, while if it were to come Stateside, it would battle Jeep's new Renegade and Chevrolet's Trax.

Schreyer also said that an upmarket and sporty rear-wheel-drive Kia, inspired by the 2011 GT concept, is all but green-lighted. "Interest was great," he remarked. We certainly agree—the concept was awesome, and hopefully it's sportier in execution than the luxo-barge K900.

While it's good to see two closely linked brands try to further set apart their wares, the recent focus on design at Hyundai and Kia has produced some handsome rides that, if we're honest, are already fairly well-differentiated from one another. The exciting part will be seeing what direction Schreyer ultimately takes Hyundai—and whether or not the GT concept gets off the ground.



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GM Recalls 7.6 Million More Vehicles

IMG_3077

In the largest single day of announcements since its 2014 recall crisis began, GM announced a recall of approximately 7.6 million vehicles in the U.S. today, the majority for inadvertent rotation of the ignition key. The recalled models span the 1997 to 2014 model years; most of the cars that exhibit the unintended key rotation are late-'90s and early-2000s midsize and large sedans from Chevrolet and GM's now-discontinued Oldsmobile and Pontiac brands; also in the ignition group are newer Cadillac CTS and SRX models. In total, about 97 percent of today's recalls are ignition-related.

See the list below. We'll update you as we learn more.

GMRecallChart500



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New Or Used? : Try To Hit Em’ Where They Ain’t

keeler

Hi Steve,

I have been trying to find a Lexus GX470 for several months now. Either a 2012 or a 2013.

What I have found is that these vehicles simply don't exist here in Tennessee.

I have gone through every Lexus dealer in the state, along with a few others that are out of state. I can't find a GX anywhere.

So I thought that maybe I should try to look at a Toyota Sequoia, or maybe even a Toyota Tundra instead. I have found a few of these vehicles at the dealerships, but the prices are stupid high, and I just can't justify paying what they want me to pay.

I am a cash customer, and I don't think I'm too picky when it comes to cars. What I wanted to ask you is whether you can actually find a good deal on a late model GX at the auctions.

Steve Says:

No.

As of today there isn't a single 2012 or 2013 Lexus GX that is listed for sale at the dealer auctions, and there are several reasons for that.

First, no new car dealership is going to get rid of a popular car that they can sell for a very stiff price premium.

That Lexus GX470 that goes off-lease is going to be looked at online by every Lexus dealer in the region before it ever winds up at the auction. If that popular SUV is even in lousy shape, they will still buy it.

When it comes to the most popular vehicles, those new car dealerships are in the pole position to make a strong profit thanks to CPO programs, today's lenient sub-prime financing policies, and the salient fact that nearly everyone looking for a late model Lexus will shop the dealer first.

And it gets even worse for the cash customer. Certain vehicles, such as that Lexus GX and the Toyota Land Cruiser, are extremely popular overseas. Even if that off-lease vehicle looks like it got into a fight, and lost, any new car franchisee who has decent relations with wholesalers will make arrangements to flip that vehicle in very short order and get it sold to an exporter.

So the question now becomes, "Are there other avenues to buy a popular late model vehicle at the auctions?"

The answer is, yes. There are three opportunities.

The first are repossessions. Toyota Motor Credit and other financial institutions that specialize in primarily serving one manufacturer tend to give new car dealers the priority. They will even have "closed auctions" where only new car dealers for that particular brand will be allowed to bid on those vehicles. However, large independent banks such as Citibank Financial and Capital One offer their repossessions to all dealers at the auctions, and this is also true for many smaller banks and finance companies as well.

Second are traded-in vehicles. You are not likely to find many late models traded-in these days. But sometimes you get lucky and either find that needle in the haystack. That needle you find though is usually not a popular one. You are far more likely to find a tough to sell vehicle in this situation, but there will be some breathing room over the wholesale versus the retail price.

Finally, you have wrecked vehicles. Virtually every vehicle that is totaled out and has some value to it will wind up at a salvage auction. Exporters tend to be a very strong presence at these sales because the cost for overseas labor is a very small fraction of what it is here in the United States. These vehicles will be purchased, put in containers with whatever parts are needed to semi-accurately repair these vehicles, and they will be sent abroad where less costly labor will help put the vehicle back together. The North American market has become a hotbed for this type of activity thanks to the high content (features and options) of vehicles available here versus those vehicles in developing markets.

The key to getting a good deal at the auctions is to, "Hit em' where they ain't". A high end Lexus or Toyota SUV is not where you'll find that opportunity. Unpopular vehicles though can often have a healthy 20% to 35 % discount from the retail environment, but that's not taking into account transport, reconditioning costs, and the substantial overhead of actually operating a car dealership.

So you want a good cheap vehicle at an auction? Go for an unpopular and well-made one. Think less about a loaded Toyota Sienna or Honda Odyssey, and more about a Mazda 5 or Nissan Quest. The Mazda 3 is super-expensive. A Dodge Dart? Not so much. Hope this helps.

Steve Lang can always be contacted at steve.lang@thetruthaboutcars.com



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2015 Hyundai Sonata Eco Debuts, Packs 1.6L Turbo Four and Dual-Clutch Gearbox

2015 Hyundai Sonata Eco Debuts, Packs 1.6L Turbo Four and Dual-Clutch Gearbox
Hyundai has announced the addition of a third model to its 2015 Sonata lineup, the efficiency-minded Sonata Eco, which will slot in between the base Sonata and the zestier Sonata 2.0T.  READ MORE ››



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