Not so fast…again

Though recent reports claim that VW Chairman Ferdinand Piech and Suzuki President Osamu Suzuki are involved in board level talks to resolve the differences in their on again off again relationship, at a news conference for quarterly earnings, Suzuki Executive Vice President Toshihiro Suzuki denied any such talks have taken place. According to Reuters, Suzuki claimed that “There have been various reports, but there absolutely are no such facts, so there is nothing I can talk about on this topic.”

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Starting with the 2014 model year, for the first time Ford will be offering F-150 buyers the option of running on compressed natural gas or liquid propane gas in addition to gasoline. Automotive News reports that interested can spec a F-150 with the 3.7 liter V6 engine, and then receive a factory-installed CNG/LPG prep package that includes hardened valves, valve seats, pistons and rings. The actual conversions would be done by six CNG/LPG conversion companies that have been certified by Ford as “qualified vehicle modifiers”. As long as the conversion is done by one of those six firms, Ford will honor all factory warranties on the engine. Depending on the size of the fuel tank that’s installed, the cost of the conversions will be between $8,000 and $11,000 a vehicle, but running on gas can be significantly cheaper than running on gasoline or diesel, and the cost of the conversion can be more than paid back over the life of the vehicle.

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A glimmer of hope that the European car market is stabilizing might be seen in the fact that for the first time in nearly two years, French car sales were up in July.

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The recovery of the auto industry in the U.S. continues with July sales being the best in seven years, up 14% from last year. Every domestic and foreign based automakers had increased year to year sales, with double digit gains at six companies. Leading the pack were Honda, Toyota and General Motors, with sales up 21, 17 and 16 percent respectively. Ford, Chrysler and Nissan each were up 11%. Subaru, whose North American sales helped parent Fuji Heavy Industries to record earnings, had the best year to year performance, up 43%.

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Fuji Heavy Industries, the Subaru’s corporate parent, had a 400% increase in operating profit due to strong U.S. sales for that brand. North American sales for Subaru in its largest market were up 30% to 116,000 unites in the quarter just ended. Fuji’s operating profits were 69.64 billion yen ($739.6 million), up from 17.33 billion yen ($184.05 million) last year, a record for quarterly profits for that company. (Read More…)

Sergio Marchionne’s plans to merge Chrysler and Fiat have been delayed because Fiat failed to convince a Delaware Chancery Court judge to set the value of Chrysler stock owned by the UAW’s health care fund known as VEBA. Judge Donald Parsons rejected Fiat’s request to find that a call-option agreement covering at least 54,000 Chrysler shares valued the stock at slightly less than $140 million. That decision means that the dispute over the shares’ value will now proceed to trial. (Read More…)

Chrysler Group reported net income of $507 million in the second quarter, with strong sales of SUVs and pickup trucks helping the car company make a profit for the eighth consecutive quarter. Earnings were up 16% from the same period a year earlier when $436 million was made. However, the company reduced its projected full year profit. Second-quarter revenues grew 7 percent to $18 billion, up from $16.8 billion in 2012.

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The Chinese Ministry of Environmental Protection’s rejection of BMW’s application to expand one of their factories is generating concern that global automaker will find it harder to win approval for their own Chinese projects.

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Europe’s second biggest automaker, PSA Peugeot Citroen, has gotten approval from the European Union for the French government to guarantee $9.28 billion (7 billion Euros) in bonds to provide Banque PSA Finance, the car maker’s finance arm, with funds so they can sell cars on credit at competitive interest rates.

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Though General Motors has not commented, a spokesman for the Korean Metal Workers Union, which represents employees of GM Korea, said that the automaker plans to launch the next generation of the Chevrolet Spark in the first half of 2015 but that next Aveo (sold as the Sonic in the United States) will be delayed.

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Last week, members of the Korean Metal Workers Union approved an annual wage contract with GM Korea that follows more than two weeks of partial strikes that affected GM’s Asian manufacturing base. GM Korea assembles about 40% of Chevy branded cars sold worldwide.

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According the the China Automobile Dealers Association, despite efforts by car makers to reduce inventories, Chinese domestic brand dealers still had 49 days worth of supply in June, a figure that would be considered decent in North America, where two months is the norm. But it’s a matter of concern in China, where normal dealer inventories are 24 to 36 days. That figure is an improvement over the 61 days of supply at the end of May. (Read More…)

The Fiat Group reported its profits for the second quarter of 2013 and they were better than expected, attributed to strong pickup truck sales at Chrysler’s Ram brand and spending cuts in Europe.

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GM tabbed the automaker’s head transmission engineer to be interim chief of the firm’s global powertrain operations while the company conducts a search for a permanent replacement for Sam Winegarden, who was fired in the wake of an emissions testing scandal in India.

Jim Lanzon, 62,  is currently vice president of GM, global transmissions, a position he’s held for 11 years and had an important role in negotiating the recently announced agreement between GM and Ford Motor Co. over jointly developing new 9- and 10-speed automatic transmissions. Like Winegarden, Lanzon has been a longtime GM employee. (Read More…)

Tavera SUVs at GM India assembly plant

Automotive News is reporting that Sam Winegarden, GM’s vice president for global engine engineering, the company’s highest ranking powertrain executive, was fired this week along with about 10 other GM Powertrain employees in the U.S. and India, over cheating in GM’s emissions testing at its Indian subsidiary.

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