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GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

Recharge Wrap-up: Chevy Volt's new, improved powertrain; Inabikari wants to build Tesla Model X fighter

We knew the 2016 Chevrolet Volt's new powertrain would provide more range, but we didn't know how much. According to GM's Executive Director Larry Nitz, it is about 12 percent more, overall. "I can't think of a powertrain we've re-engineered more extensively within a five-year period than this one," he said. The battery, electric drive system and gasoline generator have all been reworked to allow for an overall driving range of up to 425 miles, with electric range speculated to reach 42 miles or more. The new Volt will also benefit from 20 percent quicker low-end acceleration, weight reductions and improvements in NVH. Read more at Hybrid Cars and at the SAE website. Hyundai's FCEV research and development boss, Dr. Sae-Hoon Kim, is optimistic about the future of hydrogen mobility in Japan. With the Tucson Fuel Cell already in production ahead of Toyota's FCV, Hyundai has a foothold in the hydrogen car scene. Kim believes that since the Fukushima disaster, Japan's attitudes toward energy make it friendly to a growing hydrogen economy. He also says that hydrogen won't be limited to Hyundai, with Kia getting all the battery EVs. "Both types are for both companies," Kim says. "For the moment, volumes are small and it is not wise to have Hyundai and Kia competing." Read more at Just Auto. The Latvian/German startup Inabikari is using crowdfunding to build an electric crossover for Europe. The Rev.01 EV hopes to compete with Tesla's upcoming Model X with a range of over 400 miles and a five-second 0-60 time. The group currently is trying to raise initial funds through an Indiegogo campaign, with hopes of more investment in the future and sales beginning in 2017. See the video below, and read more at Hybrid Cars and at the Inabikari website. Fuel economy and emissions regulations could lead to some interesting design changes to automobiles. The World Light Duty Test Procedure, set to replace the New European Driving Cycle in 2017, will push automakers to find new ways to reduce drag on their vehicles. For better aerodynamics, we could see traditional side-view mirrors replaced by cameras that display what they see on screens inside the vehicle. Another likely change will be the introduction of smaller, narrower wheels. Improving the average drag coefficient from 0.32 to 0.20 could reduce CO2 emissions by as much as 20 percent. Read more at Automotive News Europe.