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Weekly Recap: Lamborghini to build SUV

Finally, Lamborghini will build a sport utility vehicle. The Italian supercar maker confirmed this week that it will launch a luxury SUV in 2018. It will be built at Lamborghini's soon-to-expand factory in Sant'Agata Bolognese in Italy, and will double the company's current sales volume. Lamborghini did not announce a name for the vehicle or other details, but noted a concept version, the Urus, was displayed at the Beijing motor show in 2012. It will be sold around the world, but it's expected to be a critical offering in the United States, China, and the Middle East. The automaker projects the SUV will sell about 3,000 units per year, and it will be the third product in Lamborghini's portfolio. It currently sells the Huracan and Aventador supercars. "The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era," Lamborghini chief executive Stephan Winkelmann said in a statement. The project is also a boon for Italy, which will get 500 new jobs in the Emilia Romagna region as Lamborghini's factory will nearly double in size. Ian Fletcher, principal analyst for IHS Automotive, said the SUV will position Lamborghini for future growth. "It could well also bring new customers to the brand [who] may find the dramatic styling of Lamborghini products appealing, but find its typical sports cars restrictive," he said. "If it is a success, the SUV could be a catalyst to Lamborghini broadening its portfolio further." OTHER NEWS & NOTES GM invests in Chevy Camaro factory General Motors is investing $175 million to upgrade its factory in Lansing, MI, to build the 2016 Chevy Camaro. The investment will pay for new tooling and equipment. The improvements include three new paint systems and two new robotic framers. GM will add a second shift at the factory to build the Camaro, resulting in 500 jobs. The automaker had dropped the plant to one shift last year amid slow sales for its products, the Cadillac ATS and CTS. GM is spending $5.4 billion over the next three years to upgrade its US facilities. Last week, GM announced plans to spend $439 million to build a new paint shop for the Chevy Corvette. While the Camaro and Corvette plant improvements are intriguing to enthusiasts, GM also confirmed this week that it is investing $1.2 billion in its Fort Wayne (IN) factory that builds trucks.

GM recalls 3,300 pickups and SUVs for new ignition-switch issue [UPDATE]

UPDATE: A statement from GM about the recall has been added below. The exact total of vehicles affected is 3,296, including 3,073 of them in the US. General Motors isn't letting an ignition-switch problem grow into a massive scandal again. The automaker is recalling about 3,300 North American trucks and SUVs. They are: the 2014 Chevrolet Silverado and GMC Sierra and the 2015 Chevy Suburban and Chevy Tahoe, as well as 2015 model heavy-duty pickups, the Detroit News reports, citing an Associated Press story. The issue appears to have been caught fairly quickly. In this case, the keys can get stuck in the "start" position and then slip to "accessory" if bumped. This is because the ignition lock gears have an outer diameter that's larger than the specifications allow. When that happens the engine shuts off, and the driver loses assistance to the steering and brakes. The airbags might also be affected. The vehicles get a new ignition-lock housing to fix the problem. According to the Detroit News, an employee who experienced the problem with the switch discovered the issue, and this person then let officials at the automaker know as part of the Speak Up for Safety program. A total of five reports of the fault were discovered. However, there are no cases of injuries or crashes. The claims to the automaker's resolution program eventually tallied that GM's previous ignition switch problem included 124 deaths and 275 injuries. The company also had to recall millions of vehicles and pay significant fines to the US government. GM Statement General Motors is recalling 3,073 full-size trucks from the 2014 and 2015 model years in the U.S. Some of these vehicles may have an ignition lock actuator gear with an outer diameter that exceeds specifications, which may make turning the ignition key difficult. The ignition key could get stuck in the "start" position. This may be more likely at higher interior ambient temperatures. If the vehicle is driven with the key stuck in the "start" position, and the vehicle experiences a significant jarring event or the vehicle's interior temperature cools, the ignition lock cylinder could move out of the "start" position, rotate past the "run" position, and move into the "accessory" position, leading to loss of power steering assist, power brakes and potentially air bag deployment in certain crashes. Dealers will replace the ignition lock housing.

GM throttles back Chevy Malibu, Buick LaCrosse production over swollen inventories

As inventory of the Chevrolet Malibu and Buick LaCrosse continues to pile up, General Motors will be idling its Fairfax Assembly Plant for two weeks, according to Automotive News. This move comes about a month after the plant was shut down for three weeks in late December and early January for the same reason. As of January 31, the GM had a 94-day supply of Malibu stock while the LaCrosse was a little worse with a 117-day supply.
Just last week, GM announced that it would be investing $600 million in upgrading this plant, but it's unclear what future plans the company has in store for Fairfax considering slow sales of both the plant's models. We do expect a refreshed and more luxurious LaCrosse shortly and an early design update for the Malibu to be announced at some point this year, although we have had no official word as to when either will happen.