Top Headlines August 2015
Fiat Says Merger with General Motors Can’t Be Refused
BUSINESS August 31, 2015 | 12:41 PM
- Merger would be worth $30 billion
- Fiat CEO believes there is waste in the auto industry
- Fiat will survive even without GM merger
Fiat Chrysler Automobiles NV CEO Sergio Marchionne says an offer to merge with rival General Motor Co. cannot be refused, according to an interview in Automobile News.
The new company would be worth $30 billion annually before interest, taxes, depreciation and amortization, Marchionne says. His figures are based on an annualized rate of 17 million new cars and trucks in the U.S. He analyzed product by product, plant by plant, area by area for both companies, he said.
Read more »Civil Lawsuit Claims Keyless Ignitions are Deadly
BUSINESS August 27, 2015 | 1:11 PM
- Filing says ten automakers knew of the danger
- 13 drivers have died from carbon monoxide
- Carbon monoxide kills Americans each year
Ten automakers know of a deadly defect in keyless ignitions systems yet continue to sell the systems despite the danger, a class action lawsuit filed in Los Angeles federal court alleges.
Keyless ignition systems work by allowing drivers to press a button to start the ignition while their key fob remains in their pockets or purses. The fob must be in the car in order for the engine to start.
Read more »U.S. Army Awards Oshkosh Military Vehicle Contract
BUSINESS August 26, 2015 | 12:46 PM
- Oshkosh beat out several other contractors
- Vehicles designs needed to meet government requirements
- Contract provides Oshkosh with much needed stability
The U.S. Army has awarded a $6.75 billion contract to Oshkosh Corp. for the construction of military vehicles, according to the Wall Street Journal.
Oshkosh beat out AM General LLC and Lockheed Martin Corp. In January, each company’s prototype was tested by the army. Several other companies including Ford Motor Co., General Dynamics Corp.and Navistar International Corp.were eliminated in an earlier round of bidding.
Read more »Lexus, Fiat: The Best and Least Loved Cars in the U.S.
BUSINESS August 25, 2015 | 12:28 PM
- Luxury brands scored higher than mainstream ones
- Three Fiat brands near the bottom
- Customer satisfaction with industry down
U.S. car buyers love Lexus, but are dissatisfied with Fiat, according to the American Customer Satisfaction Index.
The ACSI studies U.S. consumer experiences with products and services. In a survey, 4,300 customers were asked to rate experiences with cars they purchased between six months and three years ago. Twenty-seven brands were included.
Read more »Cooper Tire Developing Tire Using Domestic Rubber
BUSINESS August 24, 2015 | 1:40 PM
- Tire uses Southwestern desert shrub
- Usable tire should be completed in 2017
- Tire market is growing as auto market increases
Cooper Tire and Rubber Co. is developing a tire that uses 100% domestic rubber.
The company demonstrated a tire made of a Southwestern desert shrub, the guayule plant. A usable tire will be completed in 2017, the company said.
Read more »Ford Taurus May Be Nearing End of North American Run
BUSINESS August 20, 2015 | 11:21 AM
- Taurus supply to dealerships is small
- Fusion more popular with buyers
- Ford files patent for autonomous car seating
Ford Motor Co. may be getting ready to discontinue the Taurus for the third time in North America, analysts speculate.
Dealerships are receiving a very small volume of the model.
Read more »Audi Electric SUV to Begin Production in 2018
BUSINESS August 19, 2015 | 1:45 PM
- SUV will compete with Tesla
- Range expected to be more than 300 miles
- Audi has released product specifications
German luxury automaker Audi AG, a division of Volkswagen, plans to begin production of an electric sports utility vehicle in 2018.
The SUV, the Audi e-tron Quattro, will appear as a concept car at the Frankfort Auto Show Sept. 15.
Read more »German Auto Part Company Buys U.S. Supplier for $513 million
BUSINESS August 18, 2015 | 1:39 PM
- Terms have not been released
- Mergers becoming common in industry
- FCA may be selling auto parts division
German auto parts manufacturer Mann + Hummel has agreed to purchase American auto parts manufacturer Affinia, increasing its annual sales by $1 billion as it enters the U.S. filteration market.
Terms of the deal will not be released, Mann + Hummel said, but according to a regulatory filing the purchase price was $513.1 million plus $822 million in debt.
Read more »Study: Auto Safety Plays Big Role in Customers’ Decision Making
BUSINESS August 17, 2015 | 2:16 PM
- Annual study examines buyers’ motivations
- Customers willing to pay more for safety
- Luxury vehicles rank at top of list
Customers are increasing equating safety with satisfaction, according to the annual J.D. Power Automotive Performance, Execution and Layout (APEAL) study.
The study examines how satisfied new-car owners are with their vehicles. It ranks both brands and individual models across 77 categories.
Read more »Cadillac Sets Goal of 500,000 Vehicles Sold Annually by 2020
BUSINESS August 13, 2015 | 2:03 PM
- Ranked sixth luxury brand in the U.S.
- Cadillac president says changes need to be made
- Cadillac seeks autonomy from General Motors
General Motor Co.’s luxury brand Cadillac has set the goal of selling 500,000 vehicles worldwide annually by 2020, brand president Johan de Nysschen said.
For 2018, the goal is 350,000 sales and in 2019 400,000.
Read more »