A manufacturing alliance between General Motors (GM) and Ford, expected to be unveiled next month, will have the two rival companies developing automatic transmissions designed to improve fuel economy. The alliance could save the companies billions of dollars as they work towards meeting demanding federal fuel economy regulations set for 2017.

GM and Ford have already successfully worked together building six speed automatic front wheel drive transmissions in 2002, introduced in 2006 in approximately thirty different models. Both companies are currently developing 8, 9, and 10 speed transmissions for front and rear wheel drive cars and light trucks and they hope that the agreement will not only speed up technological developments, but will allow them to reduce manufacturing costs.

Packing more gears into the compact transmission housings used in smaller vehicles is an increasingly tricky challenge, according to engineers. Automatic transmissions with more gear ratios and more sophisticated electronic controls are crucial to improving fuel economy but the limited space of compact and subcompact cars makes it difficult. The lack of space is one reason that subcompacts like the Ford Fiesta and Chevrolet Sonic do not achieve higher fuel efficiency than the larger Ford Focus and Chevy Cruze. Longer vehicles also have lower aerodynamic drag, which helps overall efficiency.

Developing transmissions in house will not only allow GM and Ford to tailor the components to suit their needs, but will eliminate royalty costs for licenses and intellectual property rights charged by their current gearbox suppliers. The new transmissions are expected to reach the market by 2015.

General Motors (GM) will be contacting owners of certain Chevrolet, Pontiac, and Saturn models equipped with four speed automatic transmissions, about a problem that could lead to the vehicles unexpectedly rolling away. According to GM, the tabs on the transmission shift cable end could fracture and separate, leaving the driver with inaccurate shift lever readings. The driver may be able to put the vehicle in park and remove the key, but the vehicle is not actually in park. The vehicle may not start and could roll away unexpectedly. GM will be notifying owners as soon as a recall schedule has been decided and dealerships will install a retainer over the cable end or replace the shift cable as necessary. Owners wanting more information on the problem can contact GM at 1-800-521-7300. The vehicles involved in the recall include:

General Motors (GM) is warning drivers of certain 2012 Chevrolet Sonic vehicles manufactured between May 2011- February 2012, that their vehicles may not conform to Federal Motor Vehicle Safety Standard for the windshield wiping and washing systems. According to GM, the washer hose could separate from the washer fluid reservoir making it impossible for the driver to clean the windshield while driving. A buildup of dirt could eventually obstruct the drivers vision increasing the chance of an accident. GM will be sending out notices to Sonic owners asking them to take their vehicles in to their Chevrolet dealership to have the hose secured to prevent separation. Owners wanting more information about the problem can contact the Chevrolet owner center at 1-866-694-6546.

General Motors (GM) and Isuzu will be alerting drivers of certain 2006-2007 sport utility vehicles (SUV) of a problem that could result in a fire starting inside the driver’s side door. The problem is being blamed on contaminants getting into the door and causing corrosion and a short circuit in the power door lock and power window switches. Drivers noticing a burning odor or the power door locks and power windows functioning intermittently or stop working completely, are asked to take their vehicles to the nearest dealership immediately. The problem affects certain GM and Isuzu vehicles originally sold or currently registered in Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. The vehicles included in the recall are:

For more information about the problem:

  • Buick owners may contact the Buick owner center at 1-800-521-7300
  • Chevrolet owners may contact the Chevrolet owner center at 1-866-694-6546
  • GMC owners may contact the GMC owner center at 1-866-996-9463
  • Isuzu cowners may contact the Isuzu owner center at 1-800-255-6727
  • SAAB owners may contact the SAAB owner center at 1-855-880-0808

Luxury sports car maker, Spyker, has filed a lawsuit against General Motors accusing them of deliberately bankrupting Saab by blocking deals with foreign investors. When Spyker bought Saab from GM in 2010, the agreement allowed GM to retain the rights to technology and patents used in the engineering of Saab vehicles. As Saab struggled to avoid a court action to liquidate the company, Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade came forward with $140 million dollars to invest in the company with an expected additional investment of up to $708 million to build Saab vehicles in Sweden’s Trollhattan plant as well as open a factory in China. According to Spyker, the deal was blocked by GM executives because they did not want Chinese investors to have access to GM technology, allowing them to compete against the U.S. auto maker in China, one of its most important foreign markets. Spyker Chief Executive Victor Muller accused GM of “deliberately pushing Saab over the cliff”. Spyker is seeking $3 billion in damages, the estimated future value of Saab if Zhejiang Youngman had been allowed to buy the Swedish auto maker and invest in it.

The lawsuit comes as GM struggles to survive in Europe. The auto maker said last week that its second-quarter earnings plunged 38% due to a $361 million loss in the company’s European operations.

General Motors (GM) new marketing plan aimed at clearing out remaining inventory of Chevrolet vehicles, will allow customers to return their vehicle for a refund if they are not satisfied with their purchase. Chevrolet’s “Love It or Return It” offer will allow customers of any new 2012 and 2013 model year vehicles, to a full refund as long as there is fewer than 4,000 miles and the customer has driven the vehicle for at least 30 days.

Buyers who choose to return their vehicle will get all their money back, including sales tax. Unfortunately, expenses such as any additional taxes, licensing, registration and extras such as extended warranties will still have to be paid by the customer. GM hopes the plan will encourage customers to give Chevrolet vehicles a try, winning back some of the market share lost to import oriented markets. The promotion will be offered until Sept. 4, 2012.

General Motors (GM) have announced a recall for certain 2012 Chevrolet Captiva sport passenger vehicles because they may fail to conform to the park brake performance requirements of the federal motor vehicle safety standards. According to the recall report, the park brake cable may not be fully seated and could separate from its connector. The park brake could become inoperative and the vehicle could roll away unexpectedly. Dealers will inspect and secured the cable as necessary. Owners wanting more information on the problem can contact the Chevrolet owner center at 1-866-694-6546.

German automobile manufacturer BMW and Japanese automobile manufacturer Toyota have announced that they will be expanding a 2011 agreement between the two companies to share strategic technologies in four different areas. BMW and Toyota emphasized that they have no intentions of building stakes in each others companies. Both say they share the same strategic vision of sustainable individual future mobility and feel their alliance will only strengthen both companies competitive position in sustainable future technologies. The agreement includes:

  • The joint development of a fuel cell system.
  • The joint development of architecture and components for a future sports vehicle.
  • Collaboration on power train electrification.
  • Joint research and development on lightweight technologies.

The agreement will also end any further discussions of BMW working with General Motors and will eventually dissolve a joint venture with France’s PSA Peugeot Citroen to share components for hybrid cars.