2007 Cobalt, one of the recalled models

General Motors is expanding its recall of cars for a defect that can suddenly turn off the cars and disable the airbags.

The company also admits it made mistakes during the initial recall.

The defect is a faulty switch that may have caused more than 30 crashes and 13 deaths.

In some instances, the ignition switches turn off if the car is jarred, or if the key ring has extra weight on it.

Pobrecito33 / Flickr

The United Auto Workers is blaming outside interference for its defeat this month in a union election at a Volkswagen plant in Chattanooga, Tenn.

The UAW filed an appeal of that vote today with the National Labor Relations Board.

In the days leading up to the vote, numerous Tennessee politicians threatened to kill millions of dollars of state incentives for an expansion of the plant if the workers voted to unionize.

In the end, plant workers voted down the union by a narrow margin.

Pobrecito33 / Flickr

It's Thursday – time for our weekly check-in with Detroit News business columnist Daniel Howes. 

 He's picking through the rubble of the UAW's bid to unionize workers at the Volkswagen plant in Chattanooga, Tenn. We know that VW workers said "no thanks" to the UAW by a vote of 712-626, but what are the deeper implications of that "no" vote? Daniel Howes joined us today. Listen to the full interview above.

GMC SUVs in a car lot
user ep_jhu / Creative Commons

Ford and General Motors both recently decided to stop producing cars in Australia. Now, that country's car manufacturing industry is about to reach the end of the road. That's after today's announcement that Toyota will close its operations there as well.

Stateside's partner the BBC has more from business correspondent Russell Padmore.

General Motors

General Motors made $3.77  billion in 2013.

That's a 22% drop from the year before.

GM got hit with a lot of extra costs last year. The company is taking the Chevy brand out of Europe, so it doesn't compete with the automaker's Opel brand, and it's closing a plant in Europe.

GM is also closing its Holden division in Australia. And its taxes went up.

But GM's new CEO Mary Barra tells investors quality is also up.

Ford Motor Company

It's a car-eat-car world out there, and Boston Consulting Group says the competition is only going to get more fierce.

BCG's new study finds that companies that are more innovative will have an important competitive advantage. 

Analyst Xavier Mosquet says a majority of people say they want to buy a car from a company they perceive as innovative.

But, it may not be easy to meet their expectations. 

user dgtmedia-simone / wikimedia commons

Remember "DaimlerChrysler"? Well, that didn't go so well.

Maybe "Fiat Chrysler Automobiles" will fare much better.

The company that owns Chrysler Group LLC, Fiat SpA, announced the name change today: 

Today, the Board of Directors of Fiat S.p.A. (“Fiat”) approved a corporate reorganization and the formation of Fiat Chrysler Automobiles (“FCA”) as a fully-integrated global automaker...

In order to establish a true peer to the major global automotive groups, in both scale and capital market appeal, the Board has decided to establish Fiat Chrysler Automobiles N.V., organized in the Netherlands, as the parent company of the Group. FCA’s common shares will be listed in New York and Milan.

The newly formed company's stock will be traded on the New York Stock Exchange. Current Fiat shareholders will receive one share of FCA for each Fiat share they're holding.

The newly named company released its new logo as well today. A logo they say "lends itself to an extraordinary range of symbolic interpretations."

CEO of Fiat and Chrysler Sergio Marchionne called the corporate reorganization "one of the most important days in my career at Fiat and Chrysler."

Steve Carmody / Michigan Radio

Michigan’s auto industry figured prominently in President Obama’s State of the Union speech last night.

He started by talking about a hard-working auto worker building fuel-efficient vehicles and helping America wean itself off foreign oil. 

The president then introduced the new CEO of General Motors, who was sitting with the First Lady.  

A Ford assembly plant in Kansas City.
Ford Motor Company / Flickr

Ford Motor Company had one of its best years ever, and under its contract with the UAW, the company will give a portion of its annual North American profit to the nearly 47,000 hourly workers who help build the profitable cars and trucks.

Last year, Ford's profit in North America was $8.8 billion, so each of those workers will receive an $8,800 bonus check. The payout breaks last year's bonus of $8,300.

via Wikipedia

The home of the Ford Model T is now an abandoned factory complex along busy Woodward Avenue in Highland Park, Michigan – and there's not much to distinguish this place from Detroit's other industrial ruins.

But if you stop and walk up to the front of the building, you'll find a historical marker telling us that by 1925, this place churned out more than 9,000 Ford Model Ts a day. /

MILAN (AP) - The Italian carmaker Fiat says its acquisition of the final Chrysler stake is complete, making the U.S. car company a wholly-owned subsidiary of Fiat.

Fiat SpA said Tuesday that it closed the deal announced Jan. 1 with the cash payment of $1.75 billion to a union-controlled trust fund. That's on top of an initial $1.9-billion payment, which was arranged through a special distribution from Chrysler. Fiat also made the first installment on an additional $700 million payment.

Mercedes Mejia / Michigan Radio

DETROIT (AP) - The North American International Auto Show in Detroit has opened its doors to the public.

The annual event began Saturday at Cobo Center following a week of previews for journalists and others in the industry. A race-worthy Corvette, a sumptuous Mercedes C-Class and other glitzy models catch the eye at the show, which runs through Jan. 26.

Mercedes Mejia / Michigan Radio

At Detroit’s North American International Auto Show, the focus is naturally on the cars.

But behind the scenes, more than 2,000 people labor to make sure visitors are impressed by what they see.

Detroit has hosted an auto show for over a century now. And in a place known as the Motor City, it’s always been a pretty big deal.

Mark Brush / Michigan Radio

Media preview days are in full swing at the North American International Auto Show.

Over 5,000 reporters from around the world have converged on Cobo Center, including Daniel Howes, a business columnist with The Detroit News.

Howes talks with us about the big car news to come out of the auto show.

Listen to full interview above.

Steve Carmody/Michigan Radio

DETROIT (AP) - University of Michigan and state government officials aim to have a 32-acre driverless car test site running by September - in time for a global conference on intelligent transportation systems.

Gov. Rick Snyder and other state and university officials gathered Tuesday at Detroit's auto show to outline plans for the Mobility Transformation Facility, a $6.5 million site on the Ann Arbor university's North Campus.

It will offer a simulated urban environment with roads, intersections, building facades, traffic circles and a hill.

Steve Carmody/Michigan Radio

DETROIT (AP) - General Motors Co. says it will resume paying a quarterly dividend, its first since the height of the financial crisis in 2008

The U.S. automaker's CEO Dan Akerson had hinted that a dividend may be coming and the company confirmed the move Tuesday. General Motors says its dividend of 30 cents per share is payable March 28 to stockholders of record as of March 18.

The Detroit-based company says investors should share in the company's success and that the dividend is a signal of confidence for a profitable future.

Chrysler introduced the car it’s promising will “redefine the brand” at Detroit’s auto show Monday.

The “flagship” 2015 Chrysler 200 is the Auburn Hills-based automaker’s first venture into the highly competitive mid-size sedan market in more than a decade.

Chrysler officials say the model will go “head-to-head” with its competitors in terms of quality, design and – at just under $22,000 – price.

David Mindell

Ford Motor Company revealed a groundbreaking change for its top-selling F-150 truck at the North American International Auto Show on Monday. The new truck will have a body made mostly of aluminum instead of steel.

Ford is taking the calculated risk to retain its crown as the number one seller of pickups in the world.

Ford is banking on the loyalty of F-150 owners like David Mindell, CEO of Plantwise, a company that specializes in native plant landscaping and wetlands restoration.

Mercedes Mejia/Michigan Radio

This week's opening of the auto show at Cobo Center in Detroit marks 25 years since the show took its jump into the big time. 

What used to be the "Detroit Auto Show" became the North American International Auto Show, putting Detroit square in the center of the auto show universe. 

Detroit Free Press Business columnist Tom Walsh explores the show's history.

In a calculated risk meant to ensure Ford remains the leader in full-size pickups – and to meet upcoming truck fuel economy standards – the Dearborn automaker revealed a new F-150 that will shed about 700 pounds of its weight by switching much of the body to aluminum.

The company stresses that the frame of the truck will remain high-strength steel, but, "pound for pound, aluminum is stronger than steel," Ford CEO Alan Mulally told reporters after the event, which featured several F-150s bursting through a paper barrier designed to look like a concrete wall.

General Motors

Media had their first chance to see General Motor's new CEO Mary Barra in action Sunday night.  Barra introduced the new GMC Canyon.

Afterwards, she went through the trial by fire known as a media scrum, her first.  Barra was surrounded on almost all sides by a huge crowd of reporters.  Her GM handlers made sure her back was to a truck, to give her an exit strategy.

New GM CEO hopes to inspire science students

Jan 12, 2014

The incoming CEO of General Motors hopes her appointment as the first woman to lead a global automaker will inspire young women and men to pursue careers in science.

Mary Barra's first appearance before reporters since getting the job eclipsed the rollout of the GMC Canyon small pickup truck.

Barra unveiled the truck and was immediately surrounded by hundreds of journalists Sunday at an old industrial site in Detroit.

She hopes her background as an electrical engineer encourages young people into studying science, technology, engineering or math.

Steve Carmody/Michigan Radio

DETROIT (AP) - Call it a 21st century paradox.

The city of Detroit is in bankruptcy, mired in debt of at least $18 billion. But the industry it's synonymous with has left its own financial problems in the rearview mirror.

This month, the industry comes to the Detroit area's aid, with an economic boost estimated near $400 million from its annual North American International Auto Show.

The impact isn't solely financial. A successful show can help give local residents and businesses confidence that the city can get back on its feet again.


It's Thursday, time for the first check-in of this New Year with Detroit News business columnist Daniel Howes.

Understandably, he has the auto industry on his mind as we prepare for next week's opening of the North American International Auto Show. He got an early look at the show, and he joined us today to discuss it. 

Listen to the full interview above.

Steve Carmody/Michigan Radio

DEARBORN, Mich. (AP) - Ford CEO Alan Mulally says he will not leave the automaker for Microsoft and will stay at Ford at least through 2014.

Mulally is widely credited with saving Ford after being hired away from Boeing in 2006. But in recent months there have been numerous reports that he was in the running for the top job at Microsoft, where CEO Steve Ballmer has said he plans to leave the company sometime this year.

Mark Brush / Michigan Radio

The 2014 North American International Auto Show is just around the corner.

Reporters from around the world will descend on Detroit's Cobo Center next week for the media preview days, the big black-tie Charity Preview is on Jan. 17, and the doors open to the public on Saturday, Jan. 18.

With that in mind, we wanted to see what the upcoming year might bring for the auto industry. For that we turn to Michelle Krebs from, and Michigan Radio’s auto reporter, Tracy Samilton.

*Listen to the audio above.

(photo by Steve Carmody/Michigan Radio)

Fiat began the new year with a pretty big announcement: It will soon have full ownership of Chrysler.

The Italian automaker owns 59% of Chrysler, and will buy the 41% stake owned by the VEBA -- a trust set up to pay for union retiree health care -- by January 20.

The company will pay $3.65 billion. The company will also pay the VEBA an additional $700 million, split into four equal payments, made over the next four years.

Ford Motor Company

DETROIT (AP) - Ford says it expects 2013 to be one of the best financial years in its history with a pretax profit of about $8.5 billion.

The automaker expects 10% revenue growth, improved market share in all regions except Europe and stronger cash flow than a year ago.

The company released its forecast Wednesday ahead of a presentation to analysts by Chief Financial Officer Bob Shanks.

Ford also expects next year to be solid. It plans to launch the highest number of new vehicles in a single year in more than a century.

NPC / screen shot from YouTube

Outgoing GM CEO Dan Akerson spoke to the National Press Club this afternoon cataloging all the changes the company has made to make it profitable once again.

The U.S. Treasury sold the last of its holdings in the company earlier this month. The government said they lost about $10 billion on its bailout of over $49 billion.

Akerson said over the last four years, the company has invested more than $10 billion in its U.S. operations, including $1.27 billion announced today.

"There's that $10 billion again. But we're investing it - that will keep paying dividends to the American public that supported this company in its darkest hour," said Akerson. 

Akerson said the company is still in the early chapters of the comeback story and that they still have a lot to prove to people who left the brand for other car companies.

Akerson will step down as CEO on January 15, 2014. Akerson was with the Carlyle Group prior to taking the helm at GM in 2010. The global auto industry will see its first female CEO when Marry Barra takes over in January.

You can watch Akerson's address to the National Press Club below:


GM made the announcement today and said the investments in the manufacturing plants "will create or retain about 1,000 jobs."

The investments will be made in these five plants:

  1. Flint Assembly 
  2. Romulus Powertrain Operations
  3. Detroit-Hamtramck Assembly
  4. Toledo Transmission Operations
  5. Bedford Castings in Indiana

GM says the investments "will support production of a new V6 engine, new 10-speed transmission and an existing 6-speed transmission. They will also fund assembly plant upgrades, including a new paint shop and logistics optimization center."