Ford to spend $1 billion more than expected on supplier costs

NEW YORK, United States - Ford said that inflation-related supplier costs during the third quarter will run about $1 billion higher than originally expected.

It also said at the end of the third quarter it expects to have 40,000 to 45,000 vehicles in inventory lacking certain parts because of supply chain issues.

Ford said it expects to deliver those vehicles in the fourth quarter and thus is sticking to its forecast for earnings before interest and taxes, its preferred performance indicator.

Ford shares were down nearly 5 percent on Wall Street in electronic trading after the closing bell.

It said the vehicles that are currently missing parts are mainly high-demand, high-margin models of popular trucks and SUVs.

Like other auto makers, Ford has been grappling since early 2021 with a shortage of computer chips, which are critical to modern vehicles.

General Motors finished the second quarter with nearly 95,000 vehicles that were missing certain parts. Its shares were down 1.5 percent after the warning from Ford.

Ford is scheduled to release definitive third quarter results on October 26.

Agence France-Presse

GM Earnings Rise 1% as Buyers Pay More Silverado Trucks

General Motors said Thursday that higher prices for Silverado Trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter.

The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44.

Quarterly revenue fell 2% to $36.06 billion, but still, beat estimates. Analysts polled by FactSet expected $35.97 billion.

Global sales fell 6% to 1.94 million vehicles led by declines in North America and the Asia Pacific, Middle East, and Africa. The company says sales in China were weak, and it expects that to continue through the year.

In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM’s most profitable market.

Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year.

“We think the fundamentals do remain strong, especially in the truck market,” she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going.

Silverado Trucks accounted for 83.1% of GM’s sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press.

As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income.

Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate.


GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.

CEO Mary Barra told analysts on a conference call Thursday that the company is hiring white-collar workers with skills in growth areas. For example, GM is in the process of adding 500 workers for automated vehicles at Cruise, raising the workforce to 2,000.

Many of the white-collar layoffs came from work on the internal combustion engine, and administration.

“We are hiring now to replace attrition but maintain the lower cost level that we’ve worked so hard to get,” Barra said.

GM repeated its guidance for the full-year adjusted pretax income of $6.50 to $7 per share. Shares rose almost 3 percent in midday trading Thursday.

source: usa.inquirer.net

Honda recalls 784,000 vehicles in Japan over Takata air bags

TOKYO—Japanese automaker Honda is recalling 784,000 vehicles in Japan due to faulty Takata Corp. air bag inflators for front passenger seats.

The recall, announced by Honda Motor Co. on Thursday, is the latest of many such recalls over inflators that may explode with too much force.

This recall covers the Odyssey minivan, Accord sedan, Clarity fuel cell and other models.

The Tokyo-based manufacturer said the recall was in response to a recent decision by the Japanese government, which followed one last month by the US National Highway Traffic Safety Administration, in which Takata agreed to add up to 40 million air bag inflators to an already massive recall.

Takata has not been able to produce enough replacement parts to keep up with the recalls, which may balloon to more than 100 million globally.

The expanded recall mainly covers inflators in front passenger air bags that do not have a chemical drying agent known as a desiccant.

The inflators are responsible for at least 11 deaths worldwide and more than 100 injuries.

Authorities in Malaysia have begun an investigation into two more recent deaths in cars with Takata air bags that ruptured.

source: business.inquirer.net

Mazda 3 2.0 R Sport: Are you ready for the best?

The Mazda 3 2.0 R Sport is in many ways the very best in the shrinking C-segment.

MANILA, Philippines–Mazda Philippines recently celebrated its best-ever quarter with unprecedented sales figures since Berjaya Automotive took over the reins of Mazda in the country. With amazing vehicles such as the Mazda 6 executive sedan, the CX-5 compact SUV, and now the B-segment buster Mazda 3, it’s hard not to see why Mazda is now finally a mainstream contender for our pockets and garage spaces.

The Mazda 3 2.0 R Sport is in many ways the very best in the shrinking C-segment. It has it all: ravishing looks thanks to its “Kodo: Soul of Motion” design theme from Mazda; a very stiff and solid chassis; classy interior that mimics the best of what Germany has to offer; a very engaging, sporty driving experience; and finally a well-built, well-screwed-together vehicle that can stand toe-to-toe with the likes of Toyota and Honda for peerless build quality.

Very swoopy

Outside, the shape is very aggressive, very swoopy. The radiator grill is huge, letting cool air inside the engine bay, and for air intake. A lip spoiler helps give a bit more aggression and the large wheels fill out the wheel wells perfectly with a very modest fender gap. HID headlights and fog lights round out the exterior cues.

Getting in, driving position is excellent: You can easily find a comfortable seating position, be it racecar-like low or with an upright and commanding view of the road ahead. The gorgeous three-spoke steering wheel is very inviting, and the all-electric power steering boasts very good feel while being light at parking lot speeds.

Perforated ivory white leather seats with black inserts cover everything, giving off an exotic feel. You also get the interior’s pièce de résistance: a very intuitive multimedia system that seamlessly connects to your mobile device via Bluetooth for audio streaming and hands-free telephone operation.

Arguably, it also has the easiest-to-use satellite navigation system that has 2D top-view or semi-3D view from its 7-inch LCD screen, which easily displays all major points of interest. Indeed it was such a breeze to use that my wife and I discovered two really good restaurants 10 minutes away from our house—previously, neither I nor my wife ever knew that they existed!

On our way to the two restaurants, I enjoyed listening to MP3-grade music from the excellent Bose surround sound system. The multimedia system is controlled by a multidirection knob in the center console, much like BMW’s iDrive, with easy access buttons for the audio, navigation and home menus.

Just like race cars

The three-spoke steering wheel has paddle shifters for manual override control of the six-speed automatic. It opens up to a very slim, racey single binnacle instrument panel that displays the tachometer right in the middle, just like race cars and exotic sports cars with digital readouts for the speed along with a heads-up display on the windshield.

You get fuel-level readings on the right side, with a variety of information such as outside temperature on top. To the left is the trip meter and odometer.

Driving excitement

The MacPherson strut front and multilink rear suspension provide a very firm and sporty yet still-compliant ride, giving you all the driving excitement you need. On the other hand, while the 2.0 SkyActiv engine delivers a modest 155 horsepower and 200 Newton-meters of torque, the six-speed automatic transmission delivers almost all of it with less drivetrain loss than its competitors.

The slushbox also benefits from SkyActiv technology, which means torque-converter lockup is faster, giving you better acceleration and response.

It’s also pretty safe: You get dual front airbags, curtain airbags, ABS brakes with EBD function, and stability control.

So how is it to drive? In a word: Sublime. Whether you’re going flat out fast or just pootling around in traffic, the Mazda 3 feels so much connected to your brain. It’s amazing that a car of this price and in this segment offers so much feel and connectedness to the driver.

On the straights, it’s fine and actually feels more powerful than what its 155 HP/200 Nm of torque rating suggests. Interestingly, Mazda achieved this rating using 91-93 RON fuel. Switching to higher octane fuel should theoretically help give more power, but Mazda recommends sticking to 91-93 RON fuel for better balance of power and efficiency.

Turns in aggressively

When the road gets tight and twisty, (Wow!) the Mazda 3 turns in aggressively, corners confidently and exits each turn after nailing the clipping point gracefully—giving just enough roll to help you gauge how much mechanical grip is left and before the electronic nannies kick in.

The low-profile 225/45R18 tires rolling on massive (for this segment) piano black 18×7.5 alloy wheels do give a bit of harshness but still offer enough compliance to tame bumpy surfaces without the Mazda 3 feeling skittish and uneasy.

With respect to this alone, every other car manufacturer should take heed and follow suit as Mazda has judged this aspect perfectly. The brakes are more than a match for the grunt, and gives off a firm, easily modulated and confident feel when the going gets fast and furious.

The i-Stop engine start-stop function in idle can save as much as 0.5 kilometers per liter, according to other independent tests; and the i-ELOOP regenerative braking helps save more fuel. Fuel economy stayed between 7.5-9 kpl in city driving, and an impressive 17-18 kpl at a steady 100-120 km per hour cruise on the highway from a new, tight engine. Expect more efficiency as the engine frees up on these Mazdas.

If the hatchback isn’t your thing (I personally prefer the hatch because the interior is more versatile: You can drop the seats down and carry larger, bulkier objects than the sedan), there is a sedan variant with all the goodies of the hatchback, save for the interior trim and wheel color (silver wheels and black leather with red stitching come with the sedan).

Finally a C-segment competitor that delivers on its promise of performance, looks and build quality—Mazda has raised the bar with the 3. Now everyone else has to catch up.

source: motioncars.inquirer.net

GM recalls 3 million more cars worldwide

General Motors has announced the recall of nearly three million vehicles worldwide, with most of the cars, 2.71 million, in the United States. GM says that five recalls affect 2.99 million vehicles.

The recalls cover:

    -2,440,524 previous generation passenger cars for taillamp malfunctions
    -103,158 previous generation Chevrolet Corvettes for loss of low-beam head lamps
    -140,067 Chevrolet Malibus from the 2014 model year for hydraulic brake booster malfunctions
    -19,225 Cadillac CTS 2013-2014 models for windshield wiper failures
    -477 full-size trucks from the 2014 and 2015 model years for a tie-rod defect that can lead to a crash

The largest recall involves 2004-2012 Chevrolet Malibu, 2004-2007 Chevrolet Malibu Maxx, 2005-2010 Pontiac G6 and 2007-2010 Saturn Auras model cars in U.S. to modify the brake lamp wiring harness.

Affected vehicles could have corrosion develop in the wiring harness for the body control module due to micro-vibration. The condition could result in brake lamps failing to illuminate when the brakes are applied or brake lamps illuminating when the brakes are not engaged.  Additionally, cruise control, traction control, electronic stability control and panic braking assist operation could be disabled.

GM is aware of several hundred complaints, 13 crashes and two injuries but no fatalities as a result of the condition. The company issued a technical service bulletin in 2008 and conducted a safety campaign for a small population of 2005 model year vehicles in January 2009.

The second safety recall covers 111,889 Chevrolet Corvettes from the 2005-2007 model years for potential loss of low-beam headlamp operation Models from 2008-2013 will be covered under a Customer Satisfaction Program. All repairs will be at no cost to customers.

When the engine is warm, the underhood electrical center housing could expand, causing the headlamp low-beam relay control circuit wire to bend slightly. After the wire is repeatedly bent, it can fracture and separate. When this occurs, the low-beam headlamps will not illuminate. As the housing cools and contracts, the low-beam headlamp function may return. This condition does not affect the high-beam headlamps, marker lamps, turn signals, daytime running lamps or fog lamps. Loss of low beam headlamps when they are required could reduce the driver’s visibility, increasing the risk of a crash.

GM is aware of several hundred complaints as result of the condition but no crashes, injuries or fatalities.

The third recall covers 140,067 Chevrolet Malibus from the 2014 model year with 2.5L engines and stop/start technology. These vehicles are subject to the disabling of hydraulic brake boost that can require greater pedal efforts and extended stopping distances. Dealers will reprogram the electronic brake control module. The issue was discovered in testing of a future model with similar technology. GM is aware of four crashes but it is not clear that these are related to the condition. No injuries are known from those crashes.

The fourth recall covers 19,225 Cadillac CTS from the 2013-2014 model year for a condition in which the windshield wiper system may become inoperable after a vehicle jump start with wipers active and restricted, such as by ice and snow. Potential lack of visibility could increase the risk of a crash. Dealers will replace the front wiper module free of charge. GM is unaware of any crashes or injuries due to the condition.

The fifth recall involves certain 2014 Chevrolet Silverado and GMC Sierra light duty pickups and 2015 model year Chevrolet Tahoe SUVs. The tie rod threaded attachment to the steering gear rack in these vehicles may not be tightened to specification. With this condition, the tie rod can separate from the steering rack and a crash could occur without prior warning. Customers are being contacted and told to have their vehicles taken by flatbed to their dealer, where the inner tie rods will be inspected for correct torque, and, if necessary, the steering gear will be replaced. The repair procedure was being sent to dealers and owner letters sent by overnight mail to customers on May 14. The issue was discovered and corrected during assembly after the small number of vehicles was released.

GM expects to take a charge of up to approximately $200 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter.

The new recalls came as the largest US automaker faces numerous lawsuits and government and congressional investigations following a delayed recall of millions of cars for faulty ignition switches linked to 13 deaths.

The ignition problem was detected at the pre-production stage as early as 2001, but the company waited until February this year to begin recalling the affected vehicles.

GM’s chief executive Mary Barra, who took the company’s job in January, has pledged to aggressively address the automaker’s safety and quality problems.

The costs of the multiple recalls are piling up. In the first quarter, GM took a $1.3 billion charge that included a $700 million expense for the 2.6 million cars recalled worldwide for faulty ignition switches and ignition cylinders.

Other recalls, totaling 4.5 million vehicles, cost $600 million.

source: motioncars.inquirer.net

BMW recalls 156,000 cars and SUVs

DETROIT — BMW is recalling more than 156,000 cars and SUVs in the U.S. because the engines can lose power or stall.

The recall covers multiple models from 2010 through 2012. It includes some 128i, 328i, Z4, 135i, 335i, 528i, 535i and 640i cars. Also covered are many X3, X5, and X6 SUVs.

The German automaker says bolts that hold a camshaft housing can loosen and break. That can cause reduced power or stalling, increasing the risk of a crash.

The National Highway Traffic Safety Administration says dealers will replace bolts at no cost to owners. The company expects the recall to start in May.

BMW says another 170,000 vehicles from 2010 through 2012 with inline six-cylinder engines will not be recalled, but will receive an extended warranty due to the problem.

source: business.inquirer.net

Fiat-Chrysler to produce iconic Jeep in China from 2015

SHANGHAI—Automaker Fiat-Chrysler said on Saturday that it would begin producing the iconic American brand Jeep in China from 2015 to meet demand in the world’s largest car market.

Fiat-Chrysler—created by Italy’s Fiat acquiring Chrysler of the United States—will produce three Jeep sport utility vehicle (SUV) models in China, including one specifically designed for the Chinese market, the company said in a statement.

The announcement came ahead of the Beijing auto show, which opens to the public on Monday, as global automakers flock to China to show off their latest models.

Jeeps are currently available to Chinese consumers as imports, the statement said, adding nearly 60,000 Jeeps were sold in China last year, making the country the largest market for the brand outside of the United States.

Fiat-Chrysler will produce Jeep vehicles through its existing joint venture with Guangzhou Automobile Group Co. (GAC) but at a new manufacturing branch in the southern city of Guangzhou, it said.

Plans to produce Jeeps in China set off a political storm during the 2012 US presidential election campaign, after Republican candidate Mitt Romney ran an attack ad implying that it would export American jobs.

But Fiat has previously said plans to build Jeep vehicles in China were an expansion, not a transfer, of operations.

Fiat-Chrysler and GAC already produce other vehicles, including the Viaggio sedan, at a factory in the central city of Changsha. GAC was China’s sixth largest domestic automaker by sales in 2013, according to an industry group.

China has become critical to foreign automakers as the world’s biggest auto market, but Fiat was conspicuous by its absence with local production until it began selling domestically-produced cars in 2012.

Last year, China’s auto sales surged 13.9 percent to 21.98 million vehicles, according to a Chinese industry group, as a recovery in Japanese brands previously hurt by a diplomatic row offset the impact of slowing economic growth.

source: business.inquirer.net

Toyota recalls 6.39 million vehicles worldwide

TOKYO—Toyota on Wednesday recalled 6.39 million vehicles worldwide for five different problems, dealing another blow to the world’s largest automaker whose reputation for quality and safety has been dented in recent years.

Despite record sales and bumper profits, Toyota has been fighting to protect its brand after millions of earlier recalls and in the wake of a $1.2 billion settlement last month to settle US criminal charges.

In October 2012, Toyota announced a global recall of 7.43 million vehicles, including its popular Camry and Corolla models, over a possible fire risk, while in February it recalled 1.9 million of its signature Prius hybrid cars.

On Wednesday, the firm’s Tokyo-listed shares took a hit, falling 3.07 percent to 5,450 yen ($53) by the close.

Toyota announced five separate recalls involving 26 Toyota models, as well as the Pontiac Vibe and the Subaru Trezia.

“Since a few models are involved in more than one recall, the total number of vehicles that will be remedied is 6.39 million,” Toyota said in an e-mail.

Among the problems are a driver’s seat defect, steering column problems, and an engine starter glitch that poses a fire risk, the company said.

The vehicles affected include the Corolla sedan, the RAV4 sport utility vehicle and Yaris subcompact.

Toyota said it had received two reports about fires owing to the starter defect, but added that none of the issues had caused any accidents to its knowledge.

The vehicles, made over the past decade, include 1.08 million in Japan, 2.3 million in North America, about 770,000 in Europe and 62,000 in China, Toyota said.

In March, the Japanese automaker agreed to pay $1.2 billion to settle US criminal charges that it lied to safety regulators and the public as it tried to cover up deadly accelerator defects.

Dozens of deaths were blamed on the problems, which caused vehicles to speed out of control and fail to respond to the brake.

Toyota eventually recalled 12 million vehicles worldwide in 2009 and 2010 at a cost of $2.4 billion as the scandal over sudden, unintended acceleration spread and tarnished its once-stellar reputation.

In reaching the settlement, Toyota admitted that it lied when it insisted in 2009 that it had addressed the “root cause” of the problem by fixing floor mats that could trap the accelerator.

As part of the cover-up, Toyota scrapped plans to fix the “sticky pedal” defect in the United States and instructed employees and its parts supplier not to put anything about the design changes in writing.

The latest recall came as Japan’s Jiji Press news agency said Wednesday that Toyota’s global sales in the fiscal year to March topped 10 million units for the first time.

The company, which declined to comment on the report, kept the title of world’s biggest automaker last year sales of 9.98 million vehicles, outpacing Germany’s Volkswagen and General Motors, and said it expects 2014 to become the first to break the 10 million vehicle sales barrier in a calendar year.

Toyota has tipped a record fiscal year profit after more than doubling its nine-month earnings to $15 billion thanks to the yen’s sharp decline and surging sedan sales.

A weak yen has been a major coup for Japan’s automakers as it boosts their competitiveness overseas and inflates repatriated profits.

source: business.inquirer.net

Detroit 2014: Lexus to launch V8-powered RC F coupe

Giving new meaning to “back to the grind,” the daily commute is now transformed into a day at the track with the all-new Lexus RC F. The RC F coupe is styled to support the most powerful V8 performance car ever developed by Lexus.

Based on the spectacular all-new RC coupe that was revealed at the Tokyo Motor Show last November, the RC F has wider wheels and tires, an active rear wing, air scoops, cooling ducts and available carbon fiber components, each delivering uncompromising grit to the driving experience.

Design Exterior

The signature Lexus spindle grille, featuring a subtle F-pattern on the lower half, dominates the front of the RC F from the bottom of the hood to the lower lip. The hood is higher than that of the RC to accommodate the larger V8 engine and create the powerful flared profile suited to an F model. Ducts beneath the front bumper, fenders, and strategically-placed aerodynamic stabilizing fins create a stance which further identifies the F model.

Air outlets at the rear of the front fender form the shape of an L when they merge with side sill extensions, while stacked trapezoidal quad-outlet tailpipes at the rear add further aggression. Taking design cues from the Lexus LFA supercar, the RC F features an available speed-sensitive active rear spoiler. It enhances the coupe’s lines at standstill and deploys from the RC F’s deck at approximately 50 mph and retracts when the speed is less than 25 mph. The wing helps the RC F maintain traction and stability at higher speeds.

Three variations of 10-spoke 19-inch forged aluminum wheels are available, including two machine polished designs and one design hand polished by a craftsmen.

Design Interior

The striking cockpit-like interior of Lexus RC F complements the aggressive exterior. Unique components include the meters, steering wheel, seats, ornamentation and pedals. The instrument panel is dominated by a central meter which changes according to the four selectable driving modes. The information, color of the display and size of text can be changed.

Occupant comfort is all important. RC F debuts a Lexus-first elliptical cross-section thick-grip steering wheel with optimum placement of paddle gear shifts. All-new high back seats with an embossed F on the headrests offer the driver and passenger an exceptional performance fit. The seats are available in a selection of five leather trims, each with contrasting stitching.

Outstanding new L-shaped rubber slits in the brake and accelerator pedals combine form and function to provide better foot grip.

source: motioncars.inquirer.net

Mitsubishi recalls 650,000 Japan cars on fire risk

TOKYO—Mitsubishi Motors on Thursday recalled more than 650,000 small cars sold in Japan over a possible fire risk.

The recall covers three models, including the popular Minica brand, manufactured between September 1998 and May 2011, the automaker said.

Just 70 of the vehicles were sold overseas, mostly in Singapore, a company spokeswoman said.

Mitsubishi said an air intake could become detached and fall on the heated engine, starting a fire.

Two dozen cases—including 11 incidents involving serious fires in which the car was destroyed — have been reported but with no injuries, Japan’s transport ministry said.

source: business.inquirer.net

BMW to pay $3M fine for US recall issues

CHICAGO—German carmaker BMW has agreed to pay $3 million in civil penalties for failing to report safety defects soon enough, US safety regulators said Friday.

Federal safety regulators launched an investigation in 2010 after noting a “troubling trend” in which “BMW appears to maintain a practice, by design or habit, in which it provides little information in its initial filings.”

The initial reports were missing critical information such as plans to remedy the problem and it took BMW over 30 days on average to update the reports with required information, the safety regulator said.

A review of 16 BMW recalls issued in 2010 found “a number of instances” in which the automaker did not comply with federal law, the National Highway Transportation Safety Administration.

While BMW denies that it violated federal law, it agreed to make internal changes to its recall decision-making process in order to “ensure timely reporting to consumers and the federal government in the future.”

US law requires automakers to report defects within five days and promptly issue a recall to correct the problem.

“It’s critical to the safety of the driving public that defects and recalls are reported in short order,” David Strickland, head of the National Highway Transportation Safety Administration, said in a statement.

“NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner.”

source: http://business.inquirer.net/44115/bmw-to-pay-3m-fine-for-us-recall-issues