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GM tells owners not to use SUV wipers due to fire risk

General Motors is recalling 31,685 examples of the 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia because a short circuit in the windshield wiper motor can potentially lead to a fire. Due to the danger, the company is asking owners not to use the wipers until the problem is fixed, according to The Detroit Free Press citing the Associated Press. A manufacturing defect in the wiper motor cover means that the electrical terminals can come into contact and cause a short. The part could "melt, smoke, or catch fire," according to a statement from GM. The company will get them fixed immediately, and dealers will replace the cover. If there's bad weather at the time the owner specifies to get the recall work completed, the automaker will come pick up the crossovers. Depending on parts availability, the automaker will supply a rental car for customers, as well. The issue was discovered at the factory. According to the company's statement, only 6,405 actually made it to customers, and they were notified immediately by overnight letter. The rest were in dealer stock. The affected crossovers carry build dates between August 18, 2015 and September 24, 2015. Of those, there are 29,295 in the US and 1,073 in Canada. GM Statement: General Motors has told the National Highway Traffic Safety Administration that it will recall approximately 29,295 2016 model year Chevrolet Traverse, Buick Enclave and GMC Acadia SUVs in the U.S. because the front windshield wiper motor may overheat when in use because of a manufacturing defect. In some cases, the front windshield wiper motor cover may melt, smoke or catch fire. The approximately 6,405 customers who have taken delivery of these vehicles were notified by overnight letter and are urged to contact a GM dealer as soon as possible to arrange a service appointment. These customers should not use the front windshield wipers until they have been repaired. If weather conditions prevent driving the vehicle without using the windshield wipers, GM will arrange to pick up the vehicle for servicing. If repair parts are unavailable, GM will provide a rental car at no cost until parts become available. The total population, including Canada, Mexico and exports, is approximately 31,685. About 25,280 of these vehicles are in dealer stock and will not be sold until repairs are made.

VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

U.S. new-vehicle sales in 2018 rise slightly to 17.27 million [UPDATE]

DETROIT — Sales of new vehicles in the U.S. rose slightly in 2018, defying predictions and highlighting a strong economy. Automakers reported an increase of 0.3 percent over a year ago to 17.27 million vehicles. The increase came despite rising interest rates, a volatile stock market, and rising car and truck prices that pushed some buyers out of the new-vehicle market. Industry analysts and automakers said strong economic fundamentals pushed up sales and should keep them near historic highs in 2019. "Economic conditions in the U.S. are favorable and should continue to be supportive of vehicle sales at or around their current run rate," Ford Chief Economist Emily Kolinski Morris said after the company and other automakers announced their sales numbers Thursday. That auto sales remain near the 2016 record of 17.55 million is a testimonial to the strength of the economy, said Mark Zandi, chief economist at Moody's Analytics. The job market, he said, has created new employment, and wage growth has accelerated. "That's fundamental to selling anything," he said. "If there are lots of jobs and people are getting bigger paychecks, they will buy more." The unemployment rate is 3.7 percent, a 49-year low. The economy is thought to have grown close to 3 percent last year, its best performance in more than a decade. Consumers, the main driver of the economy, are spending freely. The Federal Reserve raised its key interest rate four times in 2018 but is only expected to raise it twice this year. Auto sales also were helped by low gasoline prices and rising home values, Zandi said. It all means that people are likely to keep buying new vehicles this year even as they grow more expensive. The Edmunds.com auto-pricing site estimates that the average new vehicle price hit a record $35,957 in December, about 2 percent higher than the previous year. It will be harder for automakers to keep the sales pace above 17 million because they have been enticing buyers for several years now with low-interest financing and other incentives, Zandi said. He predicts more deals in the coming year as job growth slows and credit tightens for higher-risk buyers. Edmunds, which provides content, including automotive tips and reviews, for distribution by The Associated Press, predicts that sales will drop this year to 16.9 million.