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Former Fisker CEO has some advice for Tesla Motors

Former Fisker Automotive CEO and ex-Chevrolet Volt vehicle-line director Tony Posawatz has some words of caution for Tesla Motors. The long-time automaker executive questions the California automaker's long-term viability – and gives some praise – in a talk with Benzinga, which you can listen to below. While the all-wheel-drive D that Tesla unveiled earlier this month in Southern California wowed a packed crowd, Posawatz (starting at around minute 4:45 in the interview) says Tesla would've been better off taking the resources it expended toward that Model S upgrade and directed them towards speeding up the development of a more affordable plug-in. Perhaps a number of investors agreed, since the company's stock fell the day after the D was announced. Posawatz says Tesla has been over-reliant on the sale of ZEV credits. Posawatz also says that Tesla has been over-reliant on the sale of zero-emissions vehicle credits in California for its earnings and questions whether the automaker will ever work at a large enough scale to sufficiently drive down costs and make consistent profits. Tesla CEO Elon Musk would take issue with this characterization. Posawatz first made his mark in the plug-in vehicle world when he was the vehicle-line director at General Motors for the Volt extended-range plug-in from 2006 to 2012. Later that year, he joined extended-range plug-in maker Fisker Automotive as its CEO, though quit that job during the summer of 2013 as the company was descending into insolvency. He joined the Electrification Coalition this past March. News Source: Benzinga Green Chevrolet Fisker Tesla Electric PHEV Tony Posawatz

GM recalls 200k Hummer H3s for fire risk

An issue with fires erupting in some Hummers has prompted General Motors and the National Highway Traffic Safety Administration to issue a recall for nearly 200,000 vehicles around the world. The bulk of them are in the United States. According to the first statement (below) obtained by Autoblog from GM, the issue stems from the HVAC system in Hummer H3 models. The connector module for the blower motor has, in certain cases, overheated, melted the surrounding plastic, and started a fire. 42 such cases have been reported, including three instances of occupants citing minor burns. GM confirms that two of those three cases lead to the vehicle being destroyed in the fire, but states that no crashes or fatalities have resulted. The issue affects 196,379 examples of the 2006-10 H3 wagon and the 2009-10 H3T pickup, with 164,993 estimated to be in the United States. In order to fix the issue, dealers are being instructed to replace the relevant parts of the connector and harness. In a second, unrelated campaign, GM is also calling in 50,731 Chevy Spark and Sonic small cars – 45,785 of them in the US – due to a software glitch. In those affected vehicles fitted with the base radio and OnStar system, the audio system may not be able to switch out of turn-by-turn direction mode, causing the display to go blank and all sound to mute – including key safety warnings. In addition, the system may not switch off, draining the battery. GM states that no crashes, injuries, or fatalities have resulted from this issue, and all that dealers will need to do in this case is reflash the software. Related Video: General Motors is recalling 164,993 2006-2010 model year HUMMER H3 and 2009-2010 model year HUMMER H3T models in the U.S. In certain vehicles, the connector module that controls the blower motor speed in the heat/vent/air conditioning (HVAC) system may overheat under extended periods of operation at high- and medium-high speeds. The heat could melt the plastic surrounding the connector module, increasing the risk of a fire. Dealers will replace the affected portion of the connector and harness. GM is aware of three reported minor burns and 42 fires but no crashes or fatalities related to this condition. Including Canada, Mexico and exports, the total recall population is 196,379. ### General Motors is recalling 45,785 2014-2015 model year Chevrolet Sparks, and 2015 model year Chevrolet Sonics in the U.S.

GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars