Remember the nine-speed transmission in the new Jeep Cherokee that gave our rising superstar managing editor a hard time, followed by everyone else giving him a hard time about the truth of this car before walking back their statements in light of their seeing the light? More than 100,000 of the crossovers built before May 5 will need theirs readjusted.
The Federal Trade Commission is launching an investigation into biweekly payments sold as a product by dealership finance departments on the basis that consumers may not be getting their money’s worth with such payments.
Automotive News reports General Motors’ recall parade could, according to Barclays Capital analyst Brian Johnson, last well into the middle of the summer season. The data mining conducted by the automaker’s team of 60 safety investigators on 10 sources reporting potential problems — including consumer complaints and reports from its dealership network — will likely bring more recall requests before GM’s senior executives. Johnson adds that the investigators are working on likely defects on a per-issue basis instead of per-vehicle, which may mean a number of vehicles will be called back multiple times as the recall parade marches on; he also notes that its hard to discern if recalls of past vehicles have already peaked.
Detroit Free Press posits the endless recall parade General Motors has been leading since late February 2014 may be doing more harm than good for public perception or its bottom line. Though spokesman Greg Martin claimed the recalls were an effort to make his employer “a first-class safety organization” by focusing hard upon the consumer, a survey by AutoTrader found 51 percent of auto consumers were less confident in the industry’s overall safety record as a result of the actions by GM, up from 44 percent who thought the same five days’ earlier. In addition, the automaker will take a $400 million charge in Q2 2014 for the recalls since April 1 as of this writing, while its current stock price of $33.07 per share is a few cents above its IPO price from November 2010.
(Note: header image changed based on whim of E-I-C pro tem, some will understand why — JB)
Detroit Free Press reports former General Motors vice president of communications Steve Harris has been called out of retirement to help guide his former employer through the fallout of the February 2014 ignition recall crisis “for a limited time.” According to spokesman Greg Martin, Harris’ “deep background with GM and proven experience” will be of great benefit to the company. His second return the company — the first in 2006 at the request of then-CEO Rick Wagoner after leaving in 2003 — comes on the heels of successor Selim Bingol’s resignation in April of this year.
While most states and the United States government offer tax credits to consumers for purchasing an electric vehicle or plug-in hybrid, Connecticut instead offers dealers the incentive to sell EVs and PHEVs, a move research group Navigant Research claims could be more effective at bringing about greater adoption of the new technology.
Autoblog reports another recall has been issued by General Motors, this time concerning 51,640 2014 Buick Enclave, Chevrolet Traverse and GMC Acadia crossovers screwed together between March 26 and August 15 of last year. The affected vehicles possess an engine control module whose software may provide an inaccurate fuel gauge reading, forcing the driver to pull to the side of the road should the tank prove empty instead of a quarter to empty. Owners have been asked to bring their affected crossover for a reflashing of the ECM to correct the issue.
TrueCar founder Scott Painter and former Hyundai North America CEO John Krafcik both announced that Krafcik is now president of the online automotive shopping company.
The Japanese auto market took a hit in sales last month, falling 5.5 percent to 345,226 units as an increased consumption tax of 8 percent took hold in a sign of a slow year in sales.
Automotive News reports General Motors, already being hammered from all sides from its delayed recall of 2.59 million vehicles affected by a defect in the ignition switch, issued a customer-satisfaction campaign in mid-March of this year for 1.2 million crossovers whose airbags may fail to deploy in a side-impact crash, an issue known to the automaker since 2008. Once the National Highway Traffic Safety learned of the decision, however, GM did an about-face and upgraded the campaign to a full recall. In addition, its Executive Field Action Decision Committee considered a full recall as early as November 2010, opting to issue service bulletins four times between then and 2012 instead, which spokesman Alan Adler claims satisfied the issue thoroughly without the need for increased action.
As the vortices of winter give way to the tornadoes of spring, two automotive weather forecasters predict April 2014 sales to rise 9 percent as consumers head for the showroom floor amid the warming air.
Autoblog reports the first several thousand kits meant for repairing a handful of General Motors vehicles affected by the February 2014 ignition switch recall have been shipped off to dealers. In addition, 1.4 million recall letters have been mailed out to affected consumers of 2003 – 2007 vehicles; 2008 – 2011 affected owners will receive their letters in the coming weeks. The letters inform consumers to schedule the repair with their dealer, which GM claims will take 90 minutes to complete. Until the repair occurs, the automaker instructs all consumers to have nothing more than the key itself prior to insertion, and to be sure their transmissions and switches are set in place before removing the key.
Acura fans hoping to ditch their TL or TSX for an all-new 2015 TLX in time for the start of the summertime driving season will have to make do until sometime later this summer, as the automaker has delayed the launch of its newest sedan.
Currently, around 2.13 million cars will come off-lease by the end of 2014, up from 1.7 million last year. By 2016 and beyond, however, over 3 million vehicles annually will turn up on many a CPO and used car lot, replacing a long drought with an El Niño-esque flooding of the U.S. used car market.
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