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North American production of foreign marques to jump in 2014

Wards Auto has released its North American Light Vehicle Production Forecast for 2014, and the report predicts foreign manufacturers will increase production on the continent some 3.9 percent by 2014. If accurate, that should see 123,000 additional cars, trucks and vans produced in North America, swelling the total number of units produced both by domestic and foreign manufacturers to 16.9 million light vehicles from a projected 15.6 million in 2013. Much of the increase can be attributed to the fact that Toyota intends to produce another car at its Blue Springs, MS plant as well as a new Lexus model at its Georgetown, KY facility in a year's time.
Likewise, Volkswagen intends to move production of a currently imported model to its plant in Puebla, Mexico. Daimler, Honda, Nissan and Mazda also plan to build additional models on North American soil for the first time. Around two-thirds of the new North American manufacturing will take place in Mexico, helping the country soak up a full 20 percent of the content's automotive production for the first time. You can head over to the Wards Auto site for the full report.

Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration.
Failing to report or attempting to conceal anything when there's been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers.
In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn't stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota's handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement. Now, the wire-fraud approach could be used for the expected case between the US government and General Motors, based on the statements of Attorney General Eric Holder, who specifically mentioned "similarly situated companies" when discussing Toyota.

Mazda's new Mexican plant capacity rises to 230,000

After the turmoil of last year, 2013 is getting off to a much better start for Mazda. The company has issued a release indicating that the forthcoming plant in Salamanca, Mexico has had its production capacity raised even though it isn't scheduled to go online until March 2014. The original plans called for a 140,000-unit capacity, 90,000 of that allotted for the Mazda2 and Mazda3, the remaining 50,000 for a small car Mazda would build for Toyota that would be based on the Mazda2. The new plans call for raising that by 90,000 units to a total of 230,000 units within two years, by the end of March 2016, and it looks like it will all go toward Mazda production to satisfy growing demand for Skyactiv vehciles. The Mexican plant's opening will be the return of Mazda manufacturing to North America, after Mazda6 production was moved back to Japan last year.
More good news for the company is that it projects 10 billion yen ($114 million) in net income for the financial year that will end in March. That would be a welcome turnaround from the 100-billion-yen loss in the previous financial year, part of a series of three annual losses in a four-year span.
You'll find the press release with the factory update below.