2000 Ford Explorer Sport Sport Utility 2-door 4.0l on 2040-cars

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DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.
As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."
Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

Ford C-Max sales hold steady despite fuel economy fracas

Despite the ballyhoo that accompanied Ford's lowering of the C-Max fuel economy figures, the Blue Oval is still seeing strong demand for the five-seat MPV, as Automotive News reports. Speaking to marketing boss Jim Farley, AN says that the controversy surrounding the C-Max's fuel economy figures won't force Ford to change its marketing strategy.
Ford lowered the fuel economy rating of the C-Max after public outcry and legal action by customers that were unable to reach the 47 miles per gallon promised by the window sticker. The new ratings were dropped about a month ago to 45 mpg on the freeway and 40 mpg in the city. Ford offered rebates for current C-Max owners, with $550 going to those that bought their car and $325 to lessees. The issue, says Ford, stemmed from testing standards that allowed the automaker to base the C-Max's fuel economy on the Fusion Hybrid, because they use identical powertrains. The C-Max's less aerodynamic shape wasn't taken into account, though.
Whether Ford's PR team handled the crises perfectly or people just aren't that bothered by a four-mpg drop in combined ratings, demand remains strong for the C-Max among consumers. Ford moved 3,000 units in August, which was a 12-percent jump over July sales. Meanwhile, consumer demand through third-party shopping websites remains strong as well, according to Autometrics, a data analysis company that spoke with Automotive News. While the long-term effects of the adjustments remain unknown, the C-Max appears to have fared well in the near term.

70% of pickups could use aluminum by 2025

In the next decade, the auto industry will see an explosion in its use of aluminum to cut weight and increase fuel economy, according to a study from market analysts Ducker Worldwide cited by The Detroit News. We are already seeing the lightweight metal show up extensively in luxury models from Europe, but with the impending launch of aluminum-intensive 2015 Ford F-150 (pictured above), North America is using it even more, as well. The report predicts 70 percent of US pickups to have aluminum bodies by 2025.
It won't just be pickups that see the benefit, though. The average amount of aluminum in US vehicles is forecasted by the study to grow from an average of 350 pounds in 2013 to about 550 pounds by 2025. The most common parts to use it will be hoods, doors and - to some extent - roofs, as well.
The massive increase in pickups' aluminum content hardly seems surprising. The F-150 is predicted to use so much that it might cause a short-term shortage, according to one earlier report. At the same time General Motors is heavily rumored to be negotiating with suppliers for the next generation Chevrolet Silverado and GMC Sierra. Ram is the last holdout of the Big Three, but the study predicts that not to last.