FIRESTONE RECALLS 6.5 MILLION
TIRES
LAWSUIT EXPOSES GM STRIKE SCANDAL
SATURN REVEALS SUV
BMW STAYS WITH
REAR-WHEEL DRIVE
FORD SUES MODEL E
ESCAPE AND TRIBUTE RECALLED
VOLVO GETS
SECOND CHANCE
RIO TARDY
GM’S GRAND
PLANS FOR HUMMER
AUTOMAKERS COMMIT TO SIDE-AIRBAG
TESTS
HONDA TO PROFIT FROM HYBRIDS
GM WILL PRODUCE SSR
FORD TO OFFER
SKID-CONTROL SYSTEMS ON ALL SUVS
GM AND EXXON ANNOUNCE
GASOLINE FUEL CELLS
FORD TO BUILD NEW ASTON MARTIN
PLANT
FIRESTONE RECALLS 6.5 MILLION TIRES Bridgestone Firestone Wednesday announced a recall of about 6.5 million Firestone ATX, ATX II, and Wilderness tires. Firestone plans to phase in the recall beginning with the southern states. The tires are being recalled for a potential defect that may cause tread separation in hot-weather conditions at high speed, more often when the tires are underinflated. So far, 46 deaths have been attributed to failure of the tires. Although about 48 million of the tires have been made, after an investigation with the National Highway Traffic Safety Administration (NHTSA) and Ford, Firestone opted to narrow the recall to include only a particular size, P235/75R15, and a particular production facility for Wilderness tires, Decatur, Illinois. Most affected by the recall is Ford, whose best-selling Explorer SUV has offered variations of the tires for many years. Firestone plans to notify all owners of the affected tires, and will provide new Wilderness tires or, if necessary, competing-brand tires at no charge.
For the more information on the Firestone recall announcement and Ford’s involvement, click here
LAWSUIT EXPOSES GM STRIKE SCANDAL The Detroit Free Press has revealed a scandal pertaining to a lawsuit filed Monday against the UAW and General Motors. The lawsuit, waged by a group of about 20 disgruntled UAW members, alleges that the UAW didn't fairly represent its members in a 1997 Pontiac strike, and that the union prolonged the strike longer than necessary so that jobs for sons of UAW officials could be worked into the settlements. The lawsuit also alleges that $200,000 in false overtime payments was paid to top UAW officials as part of the settlement. The 1997 strike, at the plant that assembles GM's full-size pickups, cost GM millions of dollars. The lawsuit, filed on the behalf of UAW members, seeks $50 million in compensatory damages and $500 million in punitive damages.
For more on the UAW-GM strike scandal, click here
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SATURN REVEALS SUV Saturn released the first
official rendering of its Saturn SUV. The compact sport-utility vehicle will
offer both four-cylinder and V-6 engines, front-wheel drive or four-wheel drive,
and plastic body panels. Production for the 2002 model should start in early
fall of next year. Saturn plans to unveil the vehicle to the public October 6 at
the South Florida International Auto Show in Miami.
BMW STAYS WITH REAR-WHEEL DRIVE
BMW has said that its upcoming small car will be rear-wheel drive. Until
recently, analysts have speculated that the company may be considering
front-wheel drive. The new car, which may be called the 2-Series, will be the
only car in its class with rear-wheel drive. It will compete in Europe with the
Ford Focus, Volkswagen Golf, and Audi A3.
FORD SUES MODEL E Ford
Motor Company filed a federal lawsuit against the automotive-leasing Web site
Model E. Ford accuses the site of selecting a name too close to that of its
famed Model T. Model E is an upscale online leasing company with which consumers
will be able to custom-order their lease vehicles. The California-based Web
site, which will be launched later this year, insists that there is no intended
connection with Ford.
ESCAPE AND TRIBUTE RECALLED
Ford is recalling its newly introduced Escape sport-utility vehicle for a
potential steering problem. A nut that fastens the steering wheel to the
steering column can crack, says Ford, although there have not yet been any
reports of part failure. About 1300 early-production Escapes and 625 Mazda
Tributes are affected.
VOLVO GETS SECOND CHANCE The
National Highway Traffic Safety Administration (NHTSA) has given Volvo a
revised, "best pick" rating for its S80 model's frontal offset crash test.
Originally, the agency downgraded the model because of a premature, 5-mph-impact
detonation, and because of the high temperature of the airbag's gas on the test
dummy's hands. Volvo quickly changed the airbag's design to remedy both of the
problems.
RIO TARDY Korean automaker Kia
Motors has delayed the advertising-campaign introduction for its new model, the
Rio, due to a supply shortage. The campaign for the Rio, which at $9045 will be
the lowest-priced car in the U.S. market, has now been delayed until October
1.
GM'S GRAND PLANS FOR HUMMER
According to the New York Times, the Hummer will have two additional,
more affordable models in the next three years. General Motors, Hummer's new
owner, plans to boost yearly sales volume to 40,000 by offering a cheaper H2
model in 2002 and a very basic H3 model in 2003. The H3 would reportedly sell at
about $25,000. GM purchased the brand from AM General Corporation last
year.
AUTOMAKERS COMMIT TO
SIDE-AIRBAG TESTS The Alliance of Auto Manufacturers said that automakers
have agreed to commit to side-airbag tests established by a group of experts
affiliated with the alliance. To this time, there have been no regulations or
requirements for side-airbag systems. Side airbags first were available in 1997.
The group's side-airbag testing procedures have been submitted to the NHTSA for
approval. The NHTSA had previously asked that the manufacturers come up with a
testing standard for the side bags.
HONDA TO PROFIT FROM HYBRIDS
According to Reuters, Honda Motor Company revealed at a conference in Michigan
that it plans to make a profit from the Honda Insight's gasoline-electric hybrid
technology sooner than originally anticipated. The automaker has now raised its
forecasted U.S. sales from 4000 units to 6500 units annually. Honda will
continue to lose money on the specialty, aluminum-bodied Insight model, but
hopes to make money on the venture soon after the technology is introduced on a
hybrid Civic hatchback model sometime next year.
GM WILL PRODUCE SSR General
Motors has decided to produce the Chevrolet SSR roadster-pickup concept,
originally unveiled at the Detroit auto show this January. The Super Sport
Roadster, as it's called, will likely share mechanicals with GM's full-size
pickups, with rear-wheel drive and a V-8 engine. GM plans to put the SSR into
production in late 2002.
FORD TO OFFER SKID-CONTROL
SYSTEMS ON ALL SUVS Ford will install a new, electronic anti-skid system in
all sport-utility vehicles and pickups within the next few years. Ford will
first offer the systems on the upcoming 2002 Ford Explorer and Mercury
Mountaineer. The systems use steering-wheel angle sensors and yaw sensors to
anticipate loss of vehicle control and compensate with application of the
brakes. Ford hopes the systems will help to reduce the number of rollover
injuries and fatalities. According to the National Highway Traffic Safety
Administration, more than 60 percent of SUV fatalities occur in rollover
accidents, and about 9500 people per year are killed in rollover crashes in the
U.S.
GM AND EXXON ANNOUNCE GASOLINE
FUEL CELLS General Motors and Exxon Mobil have jointly developed a fuel-cell
technology that uses gasoline. In the arrangement, a processor derives the
hydrogen necessary for power generation from gasoline. The advantage of the
system, say the companies, is that consumers would still be able to fuel their
vehicles in the same way as now. Exxon Mobil says that the new technology would
emit half the carbon dioxide of current internal-combustion automobiles. GM says
it will have a demonstration car that uses the system within 18
months.
FORD TO BUILD NEW ASTON MARTIN
PLANT Ford Motor Company has announced that it plans to build a new Aston
Martin factory. The announcement comes at a time when Ford has intentions to
make Aston Martin a higher-volume brand than it is now. The new factory, located
in Gaydon, England, will make a lower-priced AM model starting in three or four
years. The factory will eventually employ about 400 new workers.
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