Buried deep within the recently passed highway transportation funding act is a provision to incentivize whistleblowers to speak out against automakers who design serious safety flaws in the cars that they make.

The Motor Vehicle Safety Whistleblower Act, passed in Congress earlier this year and signed into law by President Barack Obama this month as part of a larger highway transportation funding bill, is the first federal attempt at preventing catastrophic defects such as the ignition switch installed into General Motors cars that killed 124 people. This year, General Motors settled with victims and families for more than $600 million and paid federal regulators more than $900 million in fines.

The bill’s language specifically targets defects such as GM’s ignition switches, but could leave helpless whistleblowers in cases like Volkswagen’s or examples such as Ralph Nader’s outcry as part of his groundbreaking book “Unsafe At Any Speed.” (Read More…)

This is the new News Round-up where we cover all the things you should know that may or may not deserve a headline on their own (or we may have simply run out of time to cover them). It’s similar to the “While Your Were Sleeping” news coverage, but not the same, hence the name change.

This morning, Jaguar announced they are going racing again, the automaker formerly known as Saab has a business plan and the Tesla Model X has a price spread that would make Porsche blush.

(Read More…)

Long-time TTAC readers may be familiar with my old friend Rodney, the Billy Dee Williams lookalike with whom I sold cars, raced bicycles, rode motorcycles, and generally raised some sort of mild hell from 1995 until the present day. (If you’re not, here’s a field guide to his eccentric accomplishments.)

Over the course of the past week, Rodney’s had two life-changing things happen. The first was that he got his driver’s license back from the rural Ohio court which has held it hostage against a fairly large sum of fines and penalties since 2010. The story of how he lost his license involves everything from a Nissan Stanza jumping train tracks at 60 mph to the “black bull and white cuck” scene, and it’s a story I’ll tell once all the statutes of limitations expire.

The second is that Rodney’s mother, who is in her late sixties, was just conned into leasing a Buick Encore.

(Read More…)

General Motors victims compensation fund is paying for injury claims older than the company’s 2009 bankruptcy and, in some cases, for injuries sustained by drivers who were drunk or weren’t wearing their seatbelts, according to the New York Times.

The newspaper reported the findings by attorney Kenneth Feinberg, who was hired by the automaker to manage the company’s fund to pay for victims of its faulty ignition switch that killed 124 people.

According to the report, 128 claims — roughly one-third of the claims against the automaker — were for injuries before the company’s 2009 bankruptcy. GM fought successfully this year to protect itself from lawsuits against “Old GM.” In April, a judge protected “New GM” from many of those lawsuits. (Read More…)

General Motors this month filed a patent application for a navigation system that can gauge how effective it is in frustrating guiding drivers based on their eye movements and how well those drivers follow directions.

The patent application filed Dec. 3 details a navigation system that watches “visual focus, the driver vocalizations and the driver emotions, along with vehicle system parameters from a data bus … to evaluate driver satisfaction with navigation guidance and determine driver behavior.”

“You missed our last turn, Aaron.”

I know, OnStar. We’re going off course.

“I don’t like how that sounds, Aaron.”

Take me to the nearest hole in the desert, OnStar.  (Read More…)

Buick announced Friday that it will bring from China the Buick Envision to sell in the U.S. next summer, two years after that car was introduced overseas, and that it will be the first Chinese-made car from a domestic manufacturer.

Automotive News reported that the small crossover would go on sale sometime around August, earlier than expected from initial reports last month.

When it goes on sale, the Envision will be powered by a 2-liter turbocharged four that makes 252 horsepower and will only be offered in all-wheel drive to start. The model will be bookended by the subcompact-sized Encore and full-size Enclave and fill a substantial need for the premium automaker.  (Read More…)

General Motors on Thursday denied that its own internal testing revealed the Opel Zafira 1.6-liter diesel flouted European emissions and fuel economy standards, Bloomberg reported (via Automotive News).

A German news magazine program, Monitor, said officials at Opel knew its midsize crossover polluted up to 15-percent more carbon dioxide than advertised, and that the automaker knew its fuel claims couldn’t be substantiated. The report also said that separate testing at a Swiss facility showed the Zafira exceeded advertised fuel consumption and emissions by 20 percent.

Or, in other words: Another chapter in the “Everyone Cheated/Just Volkswagen Cheated” saga.

(Read More…)

Fiat Chrysler Automobiles won’t attempt to takeover General Motors anytime soon, FCA chief Sergio Marchionne told investors Thursday according to Reuters.

Speaking following a shareholder meeting, Marchionne said that finding a partner for FCA wasn’t “life or death” for the automaker group. Reportedly, FCA will delay launching several of their cars — including the Alfa Romeo Giulia for six months — as the automaker shores up its $52 billion investment plan.

“We are not choking. We are in relatively decent shape,” Marchionne said.

(Read More…)

Auto executives from nearly every major U.S. automaker met in Washington D.C. on Tuesday to discuss safety, recalls and technology with Secretary of Transportation Anthony Foxx, Automotive News reported.

Senior executives from 15 automakers, including General Motors’ CEO Mary Barra, Fiat Chrysler Automobiles CEO Sergio Marchionne, Volkswagen of America CEO Michael Horn and Nissan North America boss Jose Munoz, met to address Foxx’s concerns that “the public has lost faith in the auto industry’s commitment to safety,” according to a letter obtained by Automotive News.

The recent snowballing recall crises at GM, FCA and other automakers concerning Takata’s airbag inflators prompted the meeting, according to reports. A spokesman for the Transportation Department said the meeting was “very productive.”

(Read More…)

Ford will pay only 1.5-percent more in labor costs each year under a new contract with the United Auto Workers, the automaker reported Monday.

Ford announced it would take a $600 million charge this year to pay out the $10,000 ratification bonuses to their workers as part of the new deal.

The new deal allows the automaker to hire more low-cost workers who will either be temporary or entry-level employees, shift production of some of its cars overseas and continue using controversial “alternative work schedules” that favor fewer, longer shifts instead of traditional work days.

(Read More…)

Editor’s notes: One of the best reads of the year, there’s nothing like some Fargo-style forgery on a massive scale to liven up your afternoon. This piece originally ran September 3rd, 2015.

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

(Read More…)

A federal judge Wednesday denied a request to make available communication between GM and its lawyers over certain cases involving defective ignition switches, Reuters reported. The documents will remain secret because of attorney-client privilege, the judge wrote.

Lawsuits against GM allege that the company tried to further cover up its defective ignition switches. Those lawsuits sought to uncover documents between the automaker and its lawyers in three separate cases.

“… the case evaluations have all the hallmarks of dispassionate, sober evaluations (perhaps, in hindsight, too dispassionate and sober for their own good) by counsel of the costs and benefits of litigating the cases to their conclusion — just what one would might expect in a defense file and in the absence of a crime or fraud,” Judge Jesse Furman wrote in his ruling. (Read More…)

General Motors may contract production of its commercial vans to AM General to free space to build its popular Chevrolet Colorado/GMC Canyon midsize trucks, Automotive News reported.

In a note to Wentzville, Missouri workers obtained by Automotive News, production of cutaway versions of the Chevrolet Express/GMC Savana, which are used for ambulances and moving trucks, could be moved to Indiana-based AM General. According to the report, about 30,000 cutaway vans will be made this year at GM’s Wentzville facility.

The available capacity will be used to build the Canyon/Colorado, which have outperformed expectations this year and sell like hell. (Read More…)

A week before Thanksgiving, the United Auto Workers and all of the domestic automakers know they will enter the holiday season without having to worry about a strike.

According to the Detroit News, the UAW announced late Friday that their members at Ford approved a proposed contract by a narrow 51.4-percent margin.

That news followed closely the union’s announcement that its International Executive Board considered ratified its contract with General Motors. It will go into effect starting next week. That deal had been delayed because, although the overall vote was in favor of the contract, almost 60 percent of skilled trade members of the UAW at GM voted against it. (Read More…)

Like Randy Newman, automakers love Los Angeles this week as the industry descends on Southern California for two days (really, one-and-a-half days) to showcase their latest and greatest.

Automakers are lining up to show off their wares Wednesday (Cadillac is a lone exception for Thursday) so we’ll reuse our tuxes without dry cleaning for two days, we guess. We’re animals.

We’ll be on the floor live Wednesday to cover everything we can, but in the meantime, here’s a primer to whet your appetites for the show.  (Read More…)