Chrysler has issued a recall on Dodge Journey and Fiat 500 models produced between October 24th, 2011 and October 26th, 2011. Even though it’s such a narrow timeframe, 340 vehicles are impacted by the recall due to a faulty brake issue.

The vehicles produced in the Chrysler’s Toluca, Mexico plant may have been assembled with contaminated brake fluid, leading to possible degradation of the sealing components within the braking system. If the degradation does occur and the sealing components break down, a brake failure could occur resulting in a crash.

The recall notices will be sent out next month and Chrysler will replace all the brake components impacted by the contaminated fluid.

Hyundai hyped its Veloster and the automotive media had high hopes for the innovative odd four-door hatchback, but when the reviews came out, the praise was missing. Good? Yes. But great? Hardly.

Still, Hyundai is calling the Veloster an early success, capturing the highest percentage of the “compact sporty car” market in its first full month on sale. Veloster sales accounted for 31% of this niche market, topping the Scion tC and Fiat 500, each taking 15% of the pie, and even topping the MINI Cooper, which accounts for 29 percent of the segment.

Perhaps more impressive is how high demand is for the car, with Hyundai indicating that it takes a Veloster just 8 days to move off a dealer lot. By comparison, the next closest competitor is the Scion tC, which sells in 22 days. The CR-Z, the car Hyundai pegged the Veloster at most, hoping to draw-in a legion of disappointed Honda enthusiasts, takes a brutal 139 days to sell.

According to J.D. Power numbers the highest percentage of Veloster buyers are already Hyundai customers (20%), suggesting either that the car is helping to retain customers, or that it is cannibalizing sales of other models. The most popular conquest brands are Chevrolet, Honda and Ford, with the most popular trade-in models for the Veloster being the Honda Civic and Mazda3.

Hyundai claims one major reason for the car’s success is its value, with an average transaction price of $20,902 compared to $21,154 for the tC, $21,383 for the CR-Z and a spendy $25,950 for the MINI Cooper.

Similar good things are happening in the rest of Hyundai’s 40-mpg lineup says Hyundai Motor America CEO John Krafcik during a recent presentation at the Hyundai Technical Center in Ann Arbor, MI, with the Accent with just 20 days of cars in stock while over 70% of buyers are conquests from other brands. “The only reason the Accent isn’t the best seller in the segment is because can’t produce them fast enough,” he said.

Much the same can be said for the Elantra, which has “surpassed expectations” says Krafcik, saying it’s the fourth most shopped car in the entire industry, behind the Accord, Sonata and Camry.

As it stands, the supply issue is a major concern, for Hyundai and its dealers, with near-excessive demand for Hyundai’s well-priced high-mpg models like the Veloster.

GALLERY: Hyundai Veloster

Read AutoGuide’s Hyundai Veloster Review Here and discuss this story at Veloster.org

At the Tokyo Motor Show next week, Subaru has announced that it will reveal the latest in a long line of limited edition JDM Impreza STI models; the S206.

In keeping with the theme of previous S versions, the S206 features a number of upgrades, including special STI springs and inverted Bilstein front struts and rear shocks, a flexible tower bar and draw stiffener designed to further tie the front end down, exclusive 19-inch wheels and Michelin Pilot sport tires, plus a tuned EJ20 engine delivering 316 hp and 318 lb-ft of torque with improved low and mid-range throttle response, largely thanks to a specific twin-scroll turbocharger, slightly revised induction system, lower restriction STI exhaust and specially calibrated ECU.

Other features on the S206 include specific front and rear spoilers, unique lower grille openings, while inside, there’s a leather wrapped steering wheel, Recaro seats finished in Alcantara with special trim and S206 logos, special seatbelts and a serial number plaque on the center console and under the hood.

Besides the “regular” S206, Subaru will also offer a NBR Challenge package (shown), commemorating the Scoob’s class victory at the 24 Hours of Nürburgring. This will add a carbon fiber roof panel and rear deck spoiler, plus black finished 19-inch wheels and a NBR Challenge logo on the rear decklid. Subaru will build just 300 units of the S206 and all orders must be submitted by May 7, 2012. As for the NBR Challenge cars, which represent 100 units out of the entire production run, they’ve already all been spoken for, so no luck there unfortunately.

GALLERY: Subaru Impreza STI S206

See AutoGuide’s complete 2011 Tokyo Motor Show Preview here

One of the most successful partnerships in the history of Formula 1 has to be the combination of a Honda engine in a McLaren chassis and body, with Ayrton Senna and Alain Prost behind the wheel. It was the perfect partnership which saw the team win many races and championships.

Over the last 16-years, McLaren has found much success by giving their driver’s Mercedes-Benz power. However, for the last two-years, Mercedes-Benz has been running its own F1 team and rumors started circulating that this will lead to an end to their relationship with McLaren, especially since Mercedes-Benz sold all its shares in McLaren back to the parent company.

With McLaren’s contract coming to an end in 2015 with Mercedes-Benz, much speculation has been circulating on the web and in the paddock as to who will supply engines to the Woking-based team in the future.

This has lead many to speculate that the McLaren-Honda relationship will once again be born, especially since turbo-charged engines are making their way back in Formula 1, and Honda was dominant in the last turbo-era in this sport.

However, McLaren’s managing director Jonathan Neale denies that there has been any contact with Honda. He stresses that McLaren is very well married to Mercedes-Benz for their engines and he sees this partnership continuing into the future.

As for rumors suggesting that Mercedes-Benz might not be giving McLaren its latest motors to give itself an advantage on the track, Neale says he doesn’t think “that’s a concern. ” He goes on to say, “Of course, Mercedes have their own GP team and it’s right and proper that a degree of focus is going to go in that direction, but I was just talking this morning with Thomas Fuhr at Mercedes-Benz – we speak frequently – and we want the same things. It’s in our interest to have consistent engines together because that’s how we get the highest quality.”

The last race of the 2011 F1 season takes place this weekend in Brazil at the Interlagos circuit.

[Source: ESPN]

Consumer Reports recently compared four luxury sedans in the January issue of the magazine, pitting the Audi A6 against the Infiniti M35h, Mercedes-Benz E350 BlueTec and Saab 9-5, with the refreshed A6 receiving an overall test score of 93, tying Infiniti’s M37 at the top of the charts. The previous generation A6 had scored a disappointing 79.

For the A6, Consumer Reports raved about how agile, comfortable, quiet and quick the vehicle was. The model tested was a 3.0T Quattro Premium Plus with a supercharged 3.0L powerplant with 310-hp. Consumer Reports was able to get 22-mpg out of the sedan, enjoyed the eight-speed transmission and found braking performance to be very good.

Mercedes-Benz’s E350 BlueTec received top honors for fuel efficiency with 26-mpg, while the M35h received an excellent road test score despite reporting that its power delivery tend to be jerky and abrupt. Consumer Reports also reported that the M35h’s handling and braking wasn’t as brilliant as the M37′s.

Lastly, and probably to no one’s surprise, Saab’s 9-5 was deemed disappointing and seen as a poor value.

Nissan Australia is fighting a public relations backlash after it was announced that the winner of a Facebook contest it held turned out to be best friends with a staffer managing the site. Far more than just a free t-shirt or a mug, the winner received a shiny new Nissan Micra, and a $1,250 gift card.

Nissan didn’t attempt to hide the identity of the winner either, announcing that Zac Martin of Victoria was the proud new owner of a Micra and commenting, “Congratulations Zac. Hope you enjoy the Micra. However, we say with all honesty and the best of intentions, we wish you hadn’t won!!!”

In the same post on the Nissan Micra Australia Facebook page, it goes on to explain that the page’s manager, Simon Oboler, is friends with Martin. In fact, Oboler described Martin on his personal blog as his “BFF” (best friend forever).

“We know how this sounds!” the post continues. “The reality is that he won fair and square and all is fully above board. The problem is that it will raise doubts in some people’s minds and gossip and conspiracy theories will surface.”

That they most certainly did with commenters on the post saying they’ll never buy a Nissan and demanding that the automaker show proof that the contest wasn’t rigged.

Nissan says it can limit participation by family members and employees, but not friends.

The contest, called Micraspotting, had competitors find hidden pictures of the Micra on Facebook pages belonging to bars, entertainment venues and clothing stores.

Nissan is sticking with its plan to award Martin the Micra despite the backlash and has said based on feedback it is looking at future contests, although with some changes.

The post on the Nissan Micra Australia Faceboook page continues. “Congrats once again Zac. Well done. Please don’t ever enter any of our comps again!”

[Source: Sydney Morning Herald]

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The very first Audi R8 LMS race car to compete in America has been announced. APR Motorsport will be the first team to campaign the special Audi race car during the 50th Anniversary of the Rolex 24 at Daytona in January.

APR Motorsports, a division of the famed Audi tuning shop, is becoming known for its “firsts”, entering the new B8 designation Audi S4 in the GRAND-AM Continental Tire Challenge last seasons.

APR Motorsports and Audi go way back. Stephen Hoods, the President and CEO of APR, used to be an aspiring racing driver and is a long time Audi enthusiast who competed in the Motorola Cup, or what used to be the GRAND-AM Continental Tire Sports Car Challenge.

While this will be the first Audi R8 LMS built for the Rolex Series, earlier examples of the race car have already made appearances in Europe, Asia, Australia, and South America, winning more than a 100 victories along the way. No doubt, expectations for APR in the upcoming season will be high.

GALLERY: APR Motorsport Audi R8 LMS

The honeymoon period didn’t last long for Suzuki and Volkswagen and now the Japanese automaker has filed for divorce. In an official statement Suzuki Motor Corp. has announced it will seek arbitration in an attempt to get back the shares the German auto giant currently holds in the Japanese small car manufacturer.

“The arbitration proceedings follow Suzuki’s termination of its alliance with Volkswagen AG on 18 November 2011, and Volkswagen AG‘s lack of response to Suzuki’s requests for the disposition of its shares,” said Suzuki in a release.

The two automakers signed a partnership agreement in 2009, with Suzuki taking a 1.49 percent stake in Volkswagen, and VW taking a 19.9 percent stake in Suzuki. No joint projects ever came of the venture and Volkswagen accuses Suzuki of breaking the spirit of the agreement by purchasing diesel engines from VW rival Fiat.

Suzuki is seeking to have VW sell back the shares it holds, or to sell them to a third party.

[Source: AutoNews]

GM’s Chinese-market passenger van, the Chevrolet Move N300, is suffering from slow commercial sales. Seeing a potential market for export, the ever-so-resourceful American automaker has decided to deliver 5,000 of these Chinese complete-knock-down van kits to Egypt. While Egyptian import duties has made building vehicles in North America difficult, CKD kits (Complete Knock Down) provides automakers the ability to legally bypass these regulations operations.

According to Shen Yang, the president of SGMW, a three-shareholder joint venture between SAIC Motor Corporation Limited, Liuzhou Wuling Motors Co Limited and GM China, “The introduction of the Chevrolet Move will help SGMW expand market in Egypt and also seek more opportunities to cover the market in North Africa and the Arabia Free Trade Zone. Besides, it also helps SGMW to increase its export volume and further expand the competitiveness of sales and products.”

The Move N300 will complement the existing smaller N200, which is also imported from China, and currently distributed in African markets by GM Egypt. Chevrolet offers a line of vehicles in Egypt, mostly smaller passenger cars from GM’s Korean operation, through its Al-Monsour Automotive Company distributor and partner. Al-Monsour also runs a CKD factory in 6th-of-October City, Egypt.

[Source: LeftLaneNews]

Renault is in development of an ultra low-cost vehicle, along the lines of the Tata Nano. While the Nano is currently suffering from some awful sales numbers (initial projection of 20,000 a month but only saw 1,200 units sold in September), CEO of Renault/Nissan Carlos Ghosn is convinced that an extremely affordable vehicle would be a good segment for Renault to venture into when approaching emerging markets.

According to reports from La Tribune, Gérard Detourbet, the head of Renault’s low-cost division, will be responsible in developing an engine and platform for a vehicle next year that will have a starting price of 2,500€ ($3,300). While Renault is already offering multiple low-cost vehicles in Brazil, it is possible that the new car will not wear a Renault badge, but the badge of sub-brand Dacia (seen above) instead.

[Source: Left Lane News]