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Weekly Recap: GM plans massive new paint shop at Chevy Corvette factory

General Motors is laying out some serious green to maintain the Chevy Corvette's expansive color palette. The automaker is breaking ground on a new paint shop this summer that's part of a $439-million investment to upgrade the 34-year-old Bowling Green, KY, factory that builds the Stingray. The massive new structure will total 450,000 square feet, nearly half the size of the current 1-million square-foot facility. Construction is expected to take two years and won't impact Corvette production. The upgrades include new robots that save paint and create a better finish, longer, more efficient ovens to bake in the finish, and LED lighting. There's also a dry scrubbing booth technology with a limestone handling system that eliminates waste. GM has invested $135 million in the factory in last four years for the changeover to build the C7 and to relocate its Performance Build Center to Bowling Green. The improvements continue to modernize the Kentucky factory, which has become a tourist attraction in its own right, as more than 56,000 enthusiasts visited it last year. The upgrades are part of a $5.4-billion investment GM confirmed in April that will remake its US footprint in the next three years. The Bowling Green expansion underscores GM's continued commitment to the Corvette, which sold nearly 38,000 copies around the world last year, an eight-year high. "With this major technology investment, we can continue to exceed the expectations of sports car buyers for years to come," North American manufacturing manager Arvin Jones said in a statement. OTHER NEWS & NOTES Takata recall hits 34 million vehicles The National Highway Traffic Safety Administration expanded the Takata airbag recall to an almost unthinkable 34 million vehicles on Tuesday. The recall is part of an agreement reached by the two sides where Takata admitted some of its airbag inflators have a defect, and the deal compels the company to comply with all future regulatory actions and investigations. Takata's airbag inflators were produced with "a propellant that can degrade over time" and lead to ruptures, NHTSA said. Six deaths have been attributed to the flaw worldwide. Investigations conducted by Takata, automakers, and others have not determined the exact cause of the inflator problem, but NHTSA said moisture appears to alter the propellant's chemical structure. It then ignites too rapidly, creates too much pressure that ruptures the inflator, and blasts shards of metal at passengers.

GM Recalling 370,000 Trucks For Fire Risk

DETROIT (AP) - General Motors is recalling 370,000 Chevrolet Silverado and GMC Sierra pickups from the 2014 model year to fix software that could cause the exhaust components to overheat and start a fire. The recall includes 303,000 trucks in the U.S. and 67,000 in Canada and Mexico. All of the trucks involved have 4.3-liter or 5.3-liter engines. GM said eight fires have been reported, but no injuries. One garage was damaged, the company said. All of the incidents occurred in cold weather. The company is asking customers not to leave their trucks idling unattended. GM dealers will reprogram the software for free. The company will inform owners starting Jan. 16. The major recall announcement, which came on Saturday, marred the Silverado's winning of the 2014 North American Truck of the Year Award at the Detroit Auto Show on Monday. Related Gallery Our Favorite Cars For Winter View 11 Photos Recalls Chevrolet sierra

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.