Some final documentation, financing and government approvals are the only thing holding back Fords sale of Volvo to major automaker Geely Holding Group, which would make Volvo the first major automaker to become Chinese owned. Ford expects the formal signing of the sales documents will take place in the first quarter of 2010 with the deal being closed in the second quarter.

Ford will continue to work with Volvo Cars “in several areas” after the sale but will have no financial interest in Volvo. The sale would ensure Volvo has the resources and capital necessary to strengthen the business and build its global franchise. Ford will focus on and implement its core ONE Ford strategy meaning they will return to the traditional Ford, Lincoln and Mercury brands.

The National Highway Traffic Safety Administration (NHTSA) has announced 2009 as the highest for auto recalls since 2005. Although the number of campaigns was the lowest in five years, the number of automobiles recalled in each campaign was high. 2008 brought about 10.5 million vehicles recalled in 684 campaigns while there were 16.4 million vehicles recalled in 2009 in 492 campaigns. Only Honda reported a decline in recalled vehicles in 2009.

Below is a list of how the recalls were distributed amongst auto makers in 2009:

  • The leader with nine campaigns adding up to 4.26 million vehicles recalled was the automaker Toyota and their unintended acceleration problems. This is the first time a Japanese automaker has led the industry total.
  • Ford recalled 4.5 million vehicles in eight campaigns. The largest being a defective cruise control switch which was linked to vehicle fires.
  • General Motors had 2.2 million vehicles recalled in 16 campaigns. The possibility of engine fires in passenger sedans accounted for 1.5 million vehicles recalled.
  • Chrysler had 15 campaigns, recalling almost 600,000 vehicles. Chrysler’s popular minivans the Town & Country and the Dodge Grand Caravan accounted for over 350,000 of these recalls for defective crash sensors.
  • Honda had four campaigns recalling 454,000 vehicles. Almost all these vehicles were recalled due to an airbag defect.
  • Nissan Motor Co. had six campaigns, recalling 706,000 vehicles in 2009. Almost 550,000 of these recalls were due to a brake pedal pin becoming partially disengaged causing a loss of normal braking power.
  • Hyundai Motor Co. and its Kia unit recalled 1.3 million vehicles in eight campaigns. Over 530,000 recalls were due to a malfunctioning stop lamp switch that could prevent the brake lights from illuminating or cause them to stay lit after the brakes were released.
  • Volkswagen had eights campaigns and 100,000 vehicles recalled. Almost 17,000 sport-utility vehicles were recalled to fix a software program that could lead to passenger air bag failure.

Toyota’s unintended acceleration problem has been flooding the media lately causing fear in anyone who drives on the roads. You hear stories of how someone’s car started speeding uncontrollably and the deaths and injuries that resulted. Drivers of these vehicles said they pressed the brakes, but the vehicle just didn’t respond.

You may be surprised to learn that this is a problem that has been around for quite a while, and is not limited to only Toyota vehicles. ConsumerAffairs.com has received sudden acceleration complaints over the years from a wide range of makes, including Kia, Jaguar, BMW and Ford. Ford coming in second after Toyota. In fact, during the 80’s, Audi went through the same legal and media problems that Toyota experiences now for unintended acceleration.

In 2005 there was an estimated 20,000 consumers who complained to the National Highway Traffic Safety Administration (NHTSA) of sudden unintended acceleration. Some complaints as far back as the late 1980’s when vehicle first started to be controlled with electronic controls. The problem is difficult to recreate without tampering with the vehicles electronics, so in most cases there is no indication that the vehicle has malfunctioned.

According to engineers familiar with electronic technology any electronic interference could cause the accelerator to surge out of control. In these type of systems there are fail-safes that will reset the computer and will store an error code which can be read by a technician when brought in for repairs. So far, any vehicle that has experienced unintended acceleration has not brought up an error code indicating anything went wrong.

Fords “Transit Connect” all electric vehicle made its debut at the Los Angeles Petersen Automotive Museum this week. One of the first of four battery powered vehicles planned by Ford to hit markets by 2012. This electric powered version of a light duty cargo van has been available since 2003 on the global market and is a popular vehicle for government and corporate fleets. The vehicle can travel a maximum of 80 miles per charge, making it perfect for in town deliveries where there is a predetermined route. Both the brakes and the accelerator pedal incorporate regenerative technologies that extend the vehicle’s range by recharging the battery when the vehicle is slowing down. Production of the Transit Connect Electric will begin in the fourth quarter followed by the Ford Focus Electric passenger car next year.

After all the news we have been hearing about Toyota and their problems, Consumer Reports still ranks Toyota vehicles as number three. (The same ranking as last year.) The rankings are based on performance, comfort, utility and reliability of over 280 different vehicles.

“Toyota builds extremely good, reliable cars”, said David Champion, senior director of Consumer Reports’ Auto Test Center. “I think once they get through all the recalls you will see that they are a very reliable manufacturer.” The magazine ended up dropping a couple of Toyota models from the Top Picks after the company suspended sales because of the recall. Since the vehicles were not for sale at the time, they could not make the list.

Honda (which includes Acura models) and Subaru were tied for first place, the fourth year that Honda was the leading manufacturer. They were followed by Toyota, and Hyundai (including Kia) which was ranked fourth, up from ninth last year. American manufacturers fared poorly. Ford was ranked eleventh, moving up one place from last year. General Motors and Chrysler occupied the bottom two slots, respectively.

In the auto industry, it is expensive for each auto manufacturer to design and build every component for their vehicles. As a result, they go to automotive suppliers who build OEM parts that are bought by many different auto manufacturers. The gas pedal assembly at the center of Toyota’s stop sale and recall are one of these OEM parts. It was designed and built by a company called the CTS Corporation. They are a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services in the automotive, communications, medical, defense, aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. They also sell assemblies to Honda, Ford, GM and Chrysler.

Honda spokeswoman, Christina Ra reassured their customers by saying, “We use the same supplier for a small number of vehicles sold in the U.S. We do not use the same components as are involved in our competitor’s recall. We directly confirmed with CTS that it is not the same component.”

Ford, also a CTS pedal customer, has halted production in China of its Transit Classic diesel van, which is the only Ford product to use a CTS pedal assembly. The van is sold only in China. “Ford has its own unique design and engineering for its accelerator pedals globally,” Said Deep, a Ford spokesman. “In a review, we determined that none of our other vehicles worldwide use the CTS pedal.” ” 1,663 Transit Classic vans with the CTS pedal had been produced, and the company was investigating how many had reached customers. “We are constantly monitoring performance, and we have not seen any design issue related to unintended acceleration in Ford vehicles,” Mr. Deep said.

Alan Adler, a spokesman for G.M., said that the automaker has “no direct contractual supplier relationship” with CTS, though he said the company could be supplying components through other suppliers.

Chrysler said the pedals CTS makes for the company are different from Toyota’s. “Accelerator pedals produced by CTS Automotive for Chrysler Group LLC vehicles are a different specification and design and are manufactured using different production tooling and materials than the pedals produced for Toyota,”

You can CLICK HERE to view CTS Corporations press release of the Toyota accelerator pedal recall.

Even with all the turmoil and uncertainty in today’s auto industry, auto makers and a large financial institution banded together in an effort to send funds to the earthquake relief efforts in Haiti.

GM gave $100,000 and provided direct online access to the red cross so its employees could make personal contributions as well. “As one of the world’s largest car companies, doing our part to contribute aid to Haiti is not about business but our obligation to our fellow man,” explained GM chairman and chief executive officer Ed Whitacre. “There is remarkable compassion among GM employees, and I know that same spirit will make a difference in helping the Haiti relief effort.”

Toyota Motor North America Inc. is donating $500,000 to the American Red Cross, Save the Children and Doctors Without Borders. “Save the Children and Doctors Without Borders have been working in Haiti for a long time”, says Michael Rouse, vice president of philanthropy and community affairs at Toyota Motor Sales U.S.A. Inc.

In addition, Toyota North America, Toyota Motor Sales, Toyota Financial Services and Toyota Motor Engineering & Manufacturing North America will match employee contributions and provide four-wheel-drive Tundras and Tacomas to the Red Cross.

Nissan donated $30,000 in cash to the Red Cross and plans to provide more than $100,000 for the Haitian earthquake relief effort. The automaker will match the first $25,000 in employee donations, for a combined contribution of up to $50,000. They will also give $52,000 to Habitat for Humanity International to construct 13 houses in Haiti as rebuilding programs get under way.

Ford’s Ford Fund & Community Services said it will match all individual employee contributions up to $50,000, which will be donated to the American Red Cross. It also is working with Behrmann Motors, a Ford dealership in Port-au-Prince, Haiti, to identify critical needs on the ground.

Eaton, an engine parts supplier, pledged $100,000 to the Red Cross fund. Eaton also will match employees’ donations to the United Way Worldwide Disaster Fund that supports long-term recovery efforts such as financial and health-related challenges.

Bank of America executives donated $1 million with half of that sum going to the American Red Cross. The remaining $500,000 will go toward the long-term recovery efforts to restore basic medical services and fund the rebuilding of homes, schools and other structures critical to the affected communities. Bank of America also plans to match donations made by its employees.

Based on the Detroit Auto Show, the automobile industry may be undergoing a huge transformation. There are dozens of hybrid vehicles and countless pure battery-powered cars. The market for energy alternative cars remains weak, but if strict emissions standards are imposed, demands could soar.

Ford Motor Company had a very strong showing, winning North American Car of the Year and North American Truck of the Year Awards. The car award went to the Ford Fusion Hybrid and in the truck category, Ford’s Transit Connect van. This is the sixth win in the truck category for Ford, the most of any automaker.

The awards recognize the vehicles that are “benchmarks” in their category based on factors including innovation, design, safety, handling, driver satisfaction and value for the dollar. Vehicles must be new or “substantially changed” to be considered.

Some other memorable displays are: General Motors with their new Chevy Volt, Mercedes B Class pure hydrogen fuel cell car, Audis A8 which won the eyes on design and Chrysler’s Gem which has sold more than 40,000 since 1999 and reportedly owns about 70 percent of the electric vehicle market.