Italian automaker Fiat purchased the U.S government’s remaining holdings in Chrysler today. Fiat paid $560 million to the Treasury Department for the government’s 98,000 shares.

Fiat has run Chrysler since the American automaker emerged from bankruptcy protection in June 2009. The U.S government provided a total of $12.5 billion to Chrysler with the funds coming from the government’s $700 billion bank bailout fund. $11.2 billion has been repaid to the Treasury and Chrysler repaid $5.1 billion in loans from the government in May. The Treasury has stated that it likely won’t recover the remaining $1.3 billion. With Fiat’s payment to the government, the Italian automaker now has 52 percent ownership of Chrysler. Fiat will likely own 57 percent of Chrysler before the end of 2011 when Chrysler begins producing a 40 mpg small car in the U.S.

U.S. Assistant Secretary for Financial Stability Tim Massad released this statement: “With today’s closing, the US government has exited its investment in Chrysler at least six years earlier than expected. This is a major accomplishment and further evidence of the success of the Administration’s actions to assist the US auto industry, which helped save a million jobs during the worst economic crisis since the Great Depression.”

[Source: Washington Post]

Chevrolet has sold 2.35 million vehicles globally in the first six months of 2011, setting sales records in all the top five markets. The first six months of 2011 was the best half year performance in Chevrolet’s 100-year history. The American automaker sold 286,499 more vehicles in the first half of 2011 than the same time period of 2010, a 14-percent increase year over year.

The automaker set record first-half sales in several countries including Argentina, Brazil, Chile, China, Columbia, Denmark, Ecuador, France, South Africa and Turkey. Chevrolet’s growth has been credited to the new wave of models including the Cruze compact car, Spark mini car, Sonic small car, and Orlando MPV. The Chevy Malibu midsize car and the all-new Colorado compact pickup will soon join the previously mentioned vehicles when they go on sale later this year globally.

Yesterday, Hyundai Motor Group said it is expecting to raise its U.S auto sales by 18.2 percent this year to 1.06 million vehicles, an improvement from a previous target of 1.01 million.

Hyundai would to sell 624,000 units and Kia with 433,000 in the U.S. Both South Korean automakers are experiencing fast growth in the U.S market with a combined share reaching 10.1 percent as of May from 7.7 percent in 2010 and 3.3 percent in 2001. The launch of the Hyundai Veloster and the Kia Rio subcompact in the U.S are to help maintain the sales momentum of both companies.

Chung Mong-Koo, charman of the Hyundai Motor Group, announced the sales increase while visiting the U.S, which may be linked to the possible construction of a second plant to meet booming demand in the world’s second- largest auto market.

[Source: Reuters]

Fiat has asked Chrysler to boost Freemont output after European demand soars for the rebadged Dodge Journey. Last June, with the Freemonts introduction, Fiat hoped to sell 13,000 of the minivans this year, however the automaker has already collected 15,700 orders. Fiat planned to sell 33,000 Freemonts in 2012 and as a result, Fiat was promised 3,000 Freemonts a month from Chryslers plant in Toluca, Mexico. With the high demand for the minivan, Chrysler boosted production to 4,067 units in June.

The European version of the minivan differs from its American counterpart with different front and rear styling, suspension tweaks and a Fiat’s MultiJet 2 diesel engine, not offered by Dodge.

[Source: Automotive News]

Toyota has officially announced a recall of certain 2006 and 2007 model year Highlander hybrid and Lexus RX 400h vehicles. The recall will affect 45,500 Highlander hybrids and 36,700 RX 400h’s. The issue stems from the Intelligent Power Module (IPM) located inside the hybrid system inverter that contains a control board with transistors.

Certain transistors on the control boards in the affected vehicles were inadequately soldered and could be damaged from heat caused by a large current flow during heavy driving.

If this were to occur, warning lights would come on and in most cases the vehicle would enter a fail-safe driving mode, resulting in reduced power and a shorter driving distance. In more serious cases, the power supply circuit fuse could blow when the transistor is damaged. The blown fuse would cause the hybrid system to stop and the vehicle would cost to a stop.

Owners with affected vehicles will be notified by first class main in mid-July 2011. An inspection will be made at a Toyota dealer, and if the vehicle is affected, the IPM will be replaced at no cost.

Wal-Mart is rolling back gas prices just in time for the Fourth of July driving weekend. The retailer is offering ten cents off a gallon at Wal-Mart and Murphy USA stations if purchased with a reloadable Wal-Mart gift card, MoneyCard or a Wal-Mart credit card.

The discount gas is available until September 30th, but is limited to only 18 states. Americans feel very strongly about having cheaper gas which has become apparent with fuel becoming a budget concern just like household and grocery items in homes across the country.

“Our customers have told us that high gas prices are a top budget concern, nearly as large an expense to their households as food and groceries,” said Stephen Quinn, chief marketing officer. “We listen to our customers and because we know they are feeling squeezed by gas prices, we’re implementing this gas [price] rollback to help them save, especially during high travel summer months.”

Wal-Mart will be discounting gas in the following states: Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, North Carolina, Ohio, South Carolina, Tennessee, Texas and Virginia.

[Source: USA Today]

Move over NASCAR, some new V8 racing cars are coming to town, to show whose the new boss. We are talking about the possible introduction of the Australian V8 Supercar series to North America.

Over the last decade, this Aussie racing series has expanded beyond its island home, having staged races in China, New Zealand and the Middle-East. Now it is looking at the United States to stage a race, and it will probably be at the new Circuit of the Americas in Austin, Texas. This circuit is being built especially to host Formula-One races in the coming years, and since the Australian V8 Supercars are an FIA sanctioned race series, it makes sense to race at this new circuit.

V8 Supercars boss Tony Cochrane has said that the series is looking to expand to six new overseas venues, while retaining all the currents stops in Australia. This could include some European and Asian destinations, plus the ever attractive American market.

You’ll have to wait some time before watching these V8 Supercars race in the flesh. The FIA has approved new races for this series for 2013. By then the new circuit in Austin should be complete. We can’t wait to see Holden (GM) and Ford racing head-to-head on our shores.

[Source: The Age]

American automakers are performing much better regarding vehicle safety recalls compared to their Japanese counterparts. Approaching the middle of 2011,  there have been 59 recalls, potentially affecting 6.8 million cars and light trucks. In 2010 at this point in the year, there had been 65 recalls potentially affecting 9.6 million light vehicles.

Toyota, whose reputation has been smudged recently for recalling millions of cars and trucks linked to sticky accelerator pedals and ill-fitting floor mats, is still in the hot seat. So far, Toyota has racked up nine of the industry’s worst recall campaigns affecting more than 2.8 million vehicles. The issue continues as the company widened its recall for another 1.4 million units also affected by floor mats that threatened to shift and pin down accelerator pedals. Since 2009, Toyota has recalled 9.8 million vehicles and has paid 32.4 million in fines for not issuing the recalls sooner.

At current pace, auto makers are on track to bring in fewer cars and trucks into dealers for recall issues compared to 2010.  In 2010, 17.2 million units required a recall making it one of the poorest performances in recent years. 2009 was also plagued with recall issues totaling 16.4 million.

[Source: Wards Auto]

Fiat North America is ready to launch its first national ad campaign. The new campaign will kick off with a special event on July 4, the 54th anniversary of the original Fiat 500, said Laura Soave, head of Fiat North America.

“We’re confident we can do a national launch and have the network in place to support the traffic,” said Soave, speaking at a media event.

“Just as the Fiat brand’s products have been adapted to meet market needs while keeping their Italian style and functionality, our websites will also offer a tailored yet consistent experience for consumers ,” explained Laura Soave, Head of Fiat Brand North America. “For a global brand like Fait, it’s in our nature to explore new ways of doing business. It’s also essential that the marketing and advertising campaigns reflect the same individual sense of expression that the Fiat 500 will deliver to consumers.”

Fiat North America appointed 72andSunny as their head digital agency of record. The two companies will work to develop a comprehensive digital marketing stratgey that will increase awareness of the brand in the US.

GALLERY: Fiat 500

[Source: egm CarTech]

Want to double-clutch on Osama’s face? The world’s most infamous terrorist can bring a touch of taste and sophistication to your ’77 Monza, thanks to the American Shifter Company and its latest gear-driving artistic creation, the Osama Bin Hidin’ shift knob.

What better way to celebrate the efforts of America’s military operations in the War On Terror than a novelty hand-painted, cast resin sculpture of Osama Bin Laden’s green-faced dead head, impaled right on your Powerglide? The limited-edition piece (limited to 5,000 examples to those of us who aren’t Toby Keith) is designed in the USA (though not made here) and will sell for $69.99, or approximately six 15-packs of Stroh’s.

So, what would you put this shift knob on? A Torqueflite-equipped Dodge Mirada? A 1978 Ford F-350 dualie with DON’T TREAD ON ME stickers across the tailgate? This thing? Sound off in the comments, and show us how you express your gratuitous jingoism.

[Source: American Shifter Company]

Even with high gas prices, Americans are choosing fuel effiecient compacts with conventional gas engines over pricier gas-electric hybrids. Sales have steadily increased with the Hyundai Elantra, Ford Focus and Chevrolet Cruze while hybrids are showing little activity.

Hybrid sales in the U.S peaked in July,2009 peaking at 3.6% and last month sales were down to 1.6% however production cuts and the Japan disaster are playing a factor.

“Even with the fuel savings, it doesn’t make sense to buy a hybrid” for many buyers, says Power Senior Manager Mike Omotoso of J.D Power and Associates. “This year, we had $4 gas (in many cities) but we saw the introduction of compacts that get 40 mpg. All of these cars are considerably cheaper than hybrids.”

The nations best-selling hybrid is the Toyota Prius averaging 50 mpg, while the Ford Fusion hybrid averages 38.5 mpg. However, all Elantras and some Focus and Honda Civic models are rated at 40 mpg or more on the highway.

New conventionally powered cars use various strategies to increase gas mileage to compete at hybrid levels- without the batteries and electric motors that can increase the price of the car by $6,000, according to J.D Power and Associates.

[Source: USA Today]

National Highway Traffic Safety Administration administrator David Strickland explained last week that he will challenge unsafe infotainment technology that is distracting drivers.

“I’m just putting everyone on notice. A car is not a mobile device,” Strickland said. “I’m not in the business of helping people tweet better. I’m not in the business of helping people post on Facebook better.”

Strickland feels that some in-car infotainment is designed to help drivers and automakers diagnose mechanical problems, however he said that there is a major difference between helping drivers and distracting drivers.

“It’s OK not to be connected when you’re operating a car,” Strickland said. “I’m not going to dispute that people want these services. They do.”

Strickland is adamant about cracking down on distracted drivers. He feels that wireless providers and software developers should minimize driver distraction and it should remain a top priority.

[Source: egm Car Tech]

Are you curious to know how much of your car is made in America? Well if you are, Diane Sawyer takes a look into the automotive manufacturing business. ABC World News lauched “Made in American Summer” which focuses on American manufacturing, the economy and how ordinary Americans can help create more jobs in their country.

ABC worked with the Stewart family of Hillsdale, N.J during their time shopping for a new car. The Stewart’s compare a Ford Escape and a Toyota Camry and ABC News tries to figure out which car best supports US manufacturing.

Shockingly, the Camry is 80% American made, while the Escape is 65%. The Ford created 13 assembly line jobs for every 100 cars sold while the Camry provided almost 20.

Check out the video after the jump to see which vehicle the Stewart’s buy.

Continue Reading…

A group of green car enthusiasts are looking to set a Guinness World Record in Madison, Wisconsin on Sunday, July 24 for the longest hybrid vehicle parade. The event know as Hybrids On Parade, will allow hybrid owners from throughout the Midwest to converge in Madison with 500 hybrids stretching over six miles to break the record. A previous record was set in Belgium in 2010 with a 140 hybrid car parade.

“It’s well known Madison has a green streak,” says Smart Motors HOP organizer, Paul Cooley. “So it only makes sense that we also hold a world record associated with the technology.”

Only the first 500 entrants will be accepted to the parade which will be made up entirely of everything from the Prius and Camry Hybrid (Smart Motors is a Toyota dealer) to the Volt, Fusion Hybrid and Civic Hybrid and more.

“The features of hybrid vehicles really lend it to a parade situation,” says Allen Foster, vice president and general manager at Smart Motors. Even with 500 vehicles traveling over 6.2 miles the end result is that they stay in electric mode for all of, or nearly all of the parade.”

Those looking to register or find our more info can visit Hybrids on Parade here.

The program including Chevrolet, Buick and GMC names will continue to offer the 12-month/12,000-mile bumper-to-bumper warranty as well as a five-year/100,000 mile limited powertrain warranty with 24-hour roadside assistance and courtesy transportation. Other standard features will include a more thorough 172-point inspection improved from 117 points as well as reconditioning, free trials of OnStar and Sirius/XM Satellite Radio.

“Customers demand more value for their money, and we have responded,” said Jennifer Costabile, general director of marketing and sales support, GM Fleet and Commercial Operations.  “We believe our enhanced program offers our customers an outstanding experience from the moment they drive their Chevrolet, Buick or GMC Certified Pre-Owned vehicle off of the lot.”

GM will be getting rid of the General Motors Certified Used Vehicle brand in the U.S. However the Cadillac Certified Pre-Owned program will continue without any changes.

Don Johnson, vice president, U.S Sales Operations, said that adding more value to the GM Certified Pre-Owned Vehicle program will help the company sell more vehicles. “One of the most important things we can do is manage the business to help increase the value of Chevrolet, Buick and GMC used vehicles,” Johnson said. “This increased value gives potential new vehicle customers more for their trade-ins, thereby lowering their ownership costs.”

Americans don’t buy small cars because we’re too damn fat. There. It’s what we’ve all been thinking all along. And now a report comes by to confirm our deepest suspicions: we buy SUVs and avoid small cars because our posteriors can’t fit comfortably without lumbar support.

A report from AOL Autos reveals that there’s a connection between our rapidly-expanding obesity rate and a struggle for manufacturers to sell small cars. The number of people defined as obese is expected to increase from 40% to 43% by 2018, according to statistics from Dan Cheng, vice president and partner at business consulting firm AT Kearney. Similarly, sales of small cars like the Mazda2 have dropped 2% since 2008, that terrible year when gas prices were $4 per gallon. They’re at 26% now, and unless people start losing either weight or money (to the gas pumps), they’re not likely to increase soon.

Correlation may not imply causation, as you learned in Freshman Philosophy and a million Internet arguments, but the statements of self-acknowledged obese people drive home the connection. “I want to be environmentally friendly,” said Karen Steelman, a mother whose body-mass index is above the commonly-defined obesity rate, “but unless I am in an SUV these days, I find no pleasure or comfort in driving.”

Another driver surveyed was Robert Dean Cole, who is 6 foot 7 inches and 240 pounds, with a six-year-old son who is nearly 5 feet tall. “Obviously, little cars are not going to be in our future,” he said. “And even if I could actually fit under the steering wheel of the car my next worry would be surviving a car accident. Good chance I won’t be surviving due to my size.” Cole drives a Ford F-150.

Carmakers are working on making their cars more accessible to larger drivers, regardless of size. Ford, for example, is updating their database of human dimensions to include obese adults. Interior design teams use this data to determine key factors such as center console placement, seat controls, roof lines, and sunroof controls, among others. In the end, as well-packaged cars like the Honda Fit can attest, it’s the cleverness of interior packaging that will haul our muffin tops down the road to freedom!

[Source: AOL Autos]

The state of California is considering lowering speed limits and shortening yellow light times. The Senate Transportation Committee will hold a hearing tomorrow on Assembly Bill 529. This bill proposes to rewrite the state’s speed trap law so that cities would be able to round down all speed limits. The measure passed the full Assembly by a 77 to 0 vote on May 19.

Jurisdictions within California must set the speed limit at 35 MPH under current law, if traffic is shown moving at that speed. The speed limit must be rounded to the nearest 5 MPH increment. However, a locality can reduce the limit to 30 MPH if there is a safety issue. The proposed legislation would allow jurisdictions to lower the speed limit to 30 MPH without any justification needed by rounding down 5 MPH.

Once the limit is lowered to 30 MPH, the jurisdiction is legally allowed to shorten its yellow light times from 3.6 seconds to 3.2 seconds. Even if that 0.4 seems minor, that difference will generate a significant amount of additional revenue by red light cameras. The red light camera tickets can cost between $405 to $505 each. There was a 110 percent increase in citations reported by the Texas Transportation Institute when yellow lights had shorter times. Interestingly, the majority of those extra violations occurred within the first 0.25 seconds.

[Source: The Truth About Cars]

Rapper Flo Rida (real name Tramar Dillard) received a DUI in his $1.7 million black 2008 Bugatti Veyron last night, after police observed the car swerving in and out of lanes. During the 3:30 AM downtown Miami stop, the police could smell the odor of alcohol, so the rapper was given a field sobriety test and failed. Flo-Rida’s blood alcohol level was .185 which is more than twice the legal limit.

The Bugatti Veyron was loaded up onto a flatbed tow truck heading for the impound lot, when Flo’s friend managed to get approval to take possession of the vehicle.

Once arrested, the rapper was taken to a nearby station where he is currently being booked. This brings new meaning to Flo-Rida feeling “Low”.

[Source: TMZ]

Apple has officially rejected any inclusion of DUI checkpoints in its iOS apps. In this week’s Worldwide Developers Conference, Apple updated its app store to prohibit applications informing users of DUI checkpoints.

This recent update was a result of a group of U.S Senators sending numerous letters of concern to Apple, Google, and RIM, asking the smartphone companies to remove and disable all apps that would inform users of DUI checkpoints.

Section 22.8 states:

Apps which contain DUI checkpoints that are not published by law enforcement agencies, or encourage and enable drunk driving, will be rejected.

Developers may be able to remove the DUI functionality from their apps, however most of the programs that identify law enforcement activity pertaining to checkpoints and speed traps are crowd-sourced, which means users submit the checkpoints themselves without app developers knowing what they’re identifying.

[Source: Autoblog]

Mazda will shift production of their mid-size Mazda6 from the current AutoAlliance International plant (a joint venture with former owner Ford) to Mazda’s facility in Hofu, Japan.

“Currently, production of the Mazda6 [known as Atenza in Japan] exists in three locations,” said Takashi Yamanouchi, Representative Director and Chairman of the Board, President and CEO of Mazda Motor Corporation. ”At our Hofu Plant in Japan, AutoAlliance International in Michigan, USA, and at FAW Car Co., Ltd. in Changchun, Jilin province, China. Our intention is to transfer production of our next CD-car for North America from AAI and consolidate it at Hofu in order to improve production and investment efficiencies and optimize our business.”

Mazda is currently collaborating with Ford to study the longevity of the AAI plant, but will continue to build the current model Mazda6 until its life cycle is over.

According to the latest Kelley Blue Book survey regarding gas prices, new cars and used cars, consumers feel gas prices will improve.

In a recent May 2011 survey by KBB, more than half of car shoppers (52 percent) say they think gas prices will either stay the same or go down in the next 30 days. As well, consumers that said gas prices would affect their choice of vehicle  has decreased by five percent from April (35%) to May (30%).

“Prices at the pump have halted their steep rise and now gas prices are slowly going down in many parts of the country, and the latest kbb.com survey results show that car shoppers are taking note,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com.  “If consumers feel more optimistic about the near-future state of gas prices and more confident in their personal economic situations, this will bode well for the automotive industry, though declining home values present a continuing concern.  Vehicle availability issues caused by the Japanese earthquake and tsunami also could blunt gains to be expected from increased car-buyer confidence.”

[Source: Kelley Blue Book]

With Matrix sales slumping in the U.S, Toyota may not invest in a next-generation version when the 2013 Corolla hits dealerships. Only 14,592 Toyota Matrix’s were sold last year in the U.S which is down from 66,836 units in 2002. Matrix sales are still doing well in Canada, but Corolla sales are double that of the Matrix.

There has been some speculation that the upcoming Prius compact variant may replace or steal sales from the Matrix. Bob Carter, Toyota’s Group Vice President and General Manager, says the two vehicles are expected to attract two vastly different audiences.

Toyota would do well to update and refresh the aging matrix. With high fuel prices, people are turning away from SUVs and looking at hatchbacks and wagons. Hyundai and Ford already offer five door variants. According to Ward’s Auto, 43 percent of 2012 Ford Focus sales have been hatchbacks to date.

[Source: Wards Auto]

With the recent recession and high fuel prices, car buyers are placing a higher priority on fuel efficiency. To save at the pump, buyers are willing to sacrifice purchase, price, amenities and size but not safety, according to the Consumer Reports National Research Center.

1,764 random adult car owners were interviewed between April 28-May 2, 2011 regarding car buying and fuel economy issues. The surveyed said that nearly twice as many consumers expected to choose a model with much better or somewhat better fuel economy(62 percent) relative to those who are targeting about the same fuel economy (32 percent).

Survey respondents expect their next car should deliver an average of 29 mpg. More than 10 percent said they expect 40 mpg or better in their next car.

It was also interesting to note that only 17 percent of those interviewed will buy a car next year. As well, the state of the economy played a factor causing a significant shift in the age of the average car driven by respondents has increased by eight years.

With America’s passenger cars continuing to age, less than a fifth or car owners will look to replace their car any time soon. When buying a new car, fuel economy will be the deciding factor. To reach increased fuel economy, shoppers will compromise on size and even consider paying more for a diesel or hybrid.

[Source: Consumer Reports]