According to a report issued last week by the U.S. Federal Reserve Bank of New York, car and light truck loan originations have reached a six-year high. Automotive News reports that for the second quarter of 2013, new loans went up 11% to $91.8 billion, including consumers with all credit ratings. U.S. light vehicle sales were up 9% for the quarter from last year.

The Fed said that the biggest year to year change was in the 621-660 credit score range, just below “prime” rankings. That tranche rose 16% to $12.1 billion. Loans to those with worse credit, a score below 620, were up ~11% from 2012 to $21.2 billion.

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Pilot production begins at Volvo’s Chengdu plant in China

Geely Automobile Holdings Ltd., owned by the same Chinese company that bought Volvo Cars in 2010, announced that it will soon start developing cars jointly with the Swedish company. The cars will be intended for the Chinese and export markets and will go on sale in 2015. Geely has ambitions to be China’s largest car exporter. Working jointly with Volvo is seen as giving Geely products some of Volvo’s reputation for safety and reliability.

“We have entered into actual research and development stage and I believe we can see the new product in the year after next,” said Geely Chief Executive Officer Gui Sheng Yue yesterday in Hong Kong.

Zhejiang Geely Holding Group Co., bought Volvo from Ford for $1.8 billion and last year the two companies signed a memorandum to “leverage its full access” to technology to develop vehicles. Earlier this year, Volvo announced that it was going to build a joint R&D center with Geely in Gothenburg. Volvo has also started assembling test builds at its first factory in China, in Chengdu, which will have an annual capacity of 120,000 cars.

Volvo Cars also announced today that it has received approval from the Chinese national government to build two more factories in China. The assembly plant in Daqing, in northeast China, will have a capacity of 80,000 units a year and is hoped to be fully operational some time next year. The facility in Zhangjiakou will be an engine plant and it will supply the Chengdu assembly operation where actual production will begin in Q4 2013. The two assembly plants are not expected to reach capacity for a few years.

Issues about fire safety continue to affect the Jeep brand as the U.S. National Highway Traffic Safety Administration announced today that it is opening an investigation into 146,000 2012 model year Grand Cherokees, after receiving reports from three consumers who say that the headliners of their cars caught fire near the passenger side sun visor.

“The customers reported a burning odor and visible smoke coming from the headliner while the vehicle was being driven. This was followed by flames from the headliner itself. Customers lowered the windows in an effort to clear the smoke but this increased the fire’s intensity. All three vehicles had to be extinguished with a fire extinguisher or by the fire department as they continued to burn after the vehicle was turned off . The fire also caused the sunroof to shatter in one incident, and in another, the fire spread to the passenger seat when the burning sun visor fell onto the seat. In each case, the incident resulted in the vehicle being inoperable requiring it to be towed to the dealership.”

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Chinese businessman Zhan Baosheng’s “Tesla” web site

Tesla Motors faces trademark issues in the United States and China as it tries to expand its lineup of cars and countries where it is sold. According applications found at the U.S. Patent and Trademark Office’s web site, on August 5th, Tesla filed three trademark applications for use of the name “Model E” in three categories, “automobiles and structural parts therefore,” automobile maintenance and repair services, and apparel. With merchandise sales being an important part of car marketing today, additional filings to cover apparel and similar logoed items are standard practice. Last year, Tesla CEO Elon Musk hinted at a Model E in an interview with Jalopnik, “There will definitely be more models after the S and X. Maybe an E :).”

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National Electric Vehicle Sweden (NEVS), the Chinese backed company formed to buy the assets of Saab, says that it has hired 300 workers for the factory in Trollhattan, Sweden and that it hopes to start making cars again there by the end of this year. Mikael Oestlund, a spokesman for NEVS, told Automotive News Europe that the Trollhattan plant is “practically ready” to begin production of the 9-3 sedan. That production is dependent on coming to agreements with suppliers. Also, some of Saabs former suppliers failed when the automaker went under and replacements for those parts must be found. “We are not there yet and therefore we are not able to make the decision of start of production,” Oestlund said. (Read More…)

Chevrolet will be launching the 2014 Camaro coupe for the European market at the upcoming Frankfurt Motor Show, which is probably the reason why Chevy is using the same show for the debut of the 2014 Camaro convertible, rather than introduce it in a few months at the Lost Angeles or Detroit shows.

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The general and automotive press was buzzing in the past couple of days about Tesla’s Model S acing crash testing by the National Highway Traffic Safety Administration, following a Tesla press release claiming that the Model S is the safest car ever tested by that agency. Now, NHTSA is throwing some cold water on Tesla’s claims that the Model S earned more than five stars, the agency’s highest score. The car performed well, NHTSA says, but not off the charts as claimed by Tesla. The implication that Tesla is exaggerating the crash test results follows the company’s release of what it said were profitable financial results, though the figures did not follow generally accepted accounting procedures. NHTSA also released video of the Model S undergoing crash testing. (Read More…)

Toyota’s Lexus brand is going into the luxury consumer goods business by opening the first Intersect By Lexus store in The Aoyoma district of Tokyo at the end of the month. Lexus hopes that selling things like Italian leather bags will improve the Toyota luxury brand’s image, particularly outside the United States, where Lexus has been successful. Other Intersect By Lexus stores will open in Dubai and New York City.

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At a dealer event in Sydney, Australia, Ford CEO Alan Mulally defended the company’s decision to close its Broadmeadows and Geelong assembly plants in this country, saying it was Ford’s only option if they wanted to remain in the Australian market, what Mulally called the most competitive in the world. The Ford executive also explained that the automaker is taking three years to manage to shutdown in order have an orderly transition and to treat “stakeholders” equitably. (Read More…)

At an event for international media held during the Pebble Beach festivities, Shiro Nakumura senior vice president and chief creative officer, design and brand management for Nissan provided an advanced look at what is probably the next Maxima sedan.

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Chart courtesy of Tesla Motors

While General Motors is thumping its chest because the new fullsize pickups from Chevrolet and GMC are the first to earn an overall 5 star crash test rating since the standards were upgraded two years ago, Tesla is trumpeting the NHTSA crash testing results for their Model S, saying that the luxury EV achieved the best safety rating ever of any car tested by the highway safety agency. Not only did the Model S earn an overall five-star rating, but the Model S earned 5 stars in every testing category. While 5 is the maximum rating that NHTSA publishes, manufacturers are provided with the overall Vehicle Safety Score, whose scale goes higher, and Teslas says that the Model S’ VSS was 5.4 stars, the highest ever achieved.

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The National Highway Traffic Safety Administration stiffened its testing procedures in 2011. General Motors has announced that for the first time since those stricter standards have been in place its 2014 Chevy Silverado and GMC Sierra pickups have earned overall vehicle scores of five stars, the first fullsize pickup trucks to earn that rating. The 2014 Ford F-150 and 2014 Ram 1500 from Chrysler have four-star overall ratings. NHTSA hasn’t yet released the rating of Toyota’s new 2014 Tundra, scheduled to go on sale in late August, but the 2013 Tundra received four stars from NHTSA as did the outgoing 2013 GM trucks. (Read More…)

You may recall that the possibility of building Jeeps in China (something that actually started decades ago when the brand was owned by American Motors) became an issue in last year’s U.S. presidential election campaign. According to reports in Chinese media, the Fiat and Guangzhou Automobile groups have reached a tentative agreement to assemble Jeeps in the companies’ joint venture Changsha factory in central China. (Read More…)

As police departments across the United States start retiring their Ford Crown Victoria P71 Police Interceptors, now that those out of production vehicles are reaching departments’ mileage limits, it looks like they are replacing at least some of them with SUVs, not sedans. Though the end of the Crown Vic has been mourned by law enforcement officers and car enthusiasts alike, both groups looked forward to the new police package sedans being offered by the domestic automakers. Ford brought out the SHO Taurus based Police Interceptor sedan to replace the Crown Victoria, General Motors is importing a police only Caprice PPV with rear wheel drive from Australia (while continuing to offer a police package for the FWD Impala) and Chrysler sells pursuit Chargers. Police department purchasing officials, though, are apparently opting to buy SUVs instead of the new cop cars. (Read More…)

Nissan’s next-generation Titan has now been confirmed for a 5.0L twin-turbocharged diesel V8. Exact power figures have yet to be released but the Indiana-built powertrain should put out over 300 horsepower and over 500 lb-ft of torque. While the Ram 1500 is the first half-ton pickup to offer a diesel engine, it comes in the form of a 3.0L V6.