General Motors announced Monday that they will be recalling 1.3 million Chevrolet and Pontiac Compact cars for power steering problems. The National Highway Traffic Safety Administration (NHTSA) began an investigation into the problem on Jan. 27 after getting 1,100 complaints of cars loosing power steering assist. The complaints included 14 crashes and one injury.

The auto maker said the vehicles are still safe to drive and never totally lose their steering, but consumers will notice harder steering when traveling under 15 mph. Shutting the vehicle off and then restarting will usually restore the power steering. The auto maker will start with older models first because the problem usually takes 20,000 to 30,000 miles of driving for the condition to develop.

The recall covers:

  • 2005 to 2010 Chevrolet Cobalts
  • 2007 to 2010 Pontiac G5s
  • 2005 and 2006 Pontiac Pursuits
  • 2005 and 2006 Pontiac G4s

After all the news we have been hearing about Toyota and their problems, Consumer Reports still ranks Toyota vehicles as number three. (The same ranking as last year.) The rankings are based on performance, comfort, utility and reliability of over 280 different vehicles.

“Toyota builds extremely good, reliable cars”, said David Champion, senior director of Consumer Reports’ Auto Test Center. “I think once they get through all the recalls you will see that they are a very reliable manufacturer.” The magazine ended up dropping a couple of Toyota models from the Top Picks after the company suspended sales because of the recall. Since the vehicles were not for sale at the time, they could not make the list.

Honda (which includes Acura models) and Subaru were tied for first place, the fourth year that Honda was the leading manufacturer. They were followed by Toyota, and Hyundai (including Kia) which was ranked fourth, up from ninth last year. American manufacturers fared poorly. Ford was ranked eleventh, moving up one place from last year. General Motors and Chrysler occupied the bottom two slots, respectively.

Automakers will be receiving $220 million in tax credits to help develop battery packs for hybrid and plug in hybrids vehicles. The credits, which include $100 million for battery manufacturers and $120 million for battery pack assembly, are designed to benefit Ford Motor Co., General Motors Corp. and Dow Chemical Co.

Ford plans to move production of battery packs from Mexico to southeastern Michigan and to invest up to $500 million to assemble hybrids and lithium ion batteries there. “This is huge,” said James McBride, vice president of the Michigan Economic Development Corp. “This is the rebirth of the auto industry in this state.”

Despite the recent excitement over electric cars, the National Research Council thinks that it will be a few decades before we see hybrids in “meaningful numbers”.

Complaints made to Congress from GM and Chrysler dealerships has led to a House approved $1.1 trillion spending bill. This bill will give dealerships a chance to dispute their closure depending on their past success. G.M. and Chrysler proposed their own review processes last week in an effort to keep Congress from getting involved, but their proposal was rejected.

Today, Chrysler came back challenging the decision, calling it ‘unconstitutional legislation’. Sergio Marchionne (CEO of the Fiat and Chrysler Group LLC and Chairman of the European Automobile Manufacturers Association) said that restoring large numbers of dealerships could cause havoc within Chrysler. “We are in a completely different position than G.M.” he said. G.M. has about $42 billion in cash in September, paying back $6.7 is easier than it would be for us.” Mr.. Marchionne also said G.M. was more focused on repaying the loans because the government owns 60% as opposed to 10% of Chrysler. Chrysler’s majority shareholder is the United Automobile Workers union’s retiree health care trust.

Chrysler is planning to make investments that would provide jobs and other economic benefits. Building a fuel-efficient engine with Fiat technology in the United States is one of three goals that each allow Fiat to gain an additional 5 percent of Chrysler.

Ed Whitacre has only been chief executive of G.M. for a short time but it is evident that he is serious about the companies mission to build and sell the world’s best cars and trucks. Whitacre says he wants to give people more responsibility as well as hold them accountable. Some of his changes are: Mark Reuss, president of North American operations; Susan E. Docherty, G.M.’s vice president for sales and marketing and Nick Reilly president of GM Europe.

Mr. Whitacre and his revamped management team must prove that they can spend taxpayers dollars productively on new cars, trucks and crossover vehicles. The bankruptcy process, which forced the government to step in and lend it a total of $50 billion to survive, removed most of G.M.’s crushing debt load and long-term obligations to its retirees. It also allowed G.M. $42.6 billion in cash reserves which will be put towards designing, building and selling the world’s best vehicles. With these ‘hit’ vehicles, G.M. hopes to become profitable, and once stabilized will be back on the public stock offering. Mr. Reuss said going public and repaying the government are “at the very top of our desires of what this company will look like next year.”

One of the vehicles pushed by G.M. is the Volt. It’s development time has been reduced by seven months which could have us seeing it on roads and early as November of 2010. Another model they hope will be a hit is a small, rear-wheel drive luxury car for the Cadillac division which they hope will compete head-on with the German car maker’s 3-series sedan. Mark Reuss hopes the car would prove that a Cadillac can be every bit as exciting as the best that BMW has to offer.

General Motors announced their new money-back guarantee program which sill start Monday, September 14, 2009 and go through November 30, 2009. The program involves new 2009 or 2010 Chevrolet’s, Buick’s, Cadillac’s or GMC’s.

If you are not satisfied with your vehicle it can be returned between 31 to 60 days after you have purchased it and cannot have been driven more than 4000 miles. Owners must be current on their finance payments. If you return your vehicle you will be repaid the purchase price, excluding dealer installed accessories. Also if you have traded in a car worth less that the amount that was owed on the vehicle, that difference (negative equity) will be deducted from the refund.

Having repeat problems with your GM vehicle and think that you may be driving a lemon? Call the California Lemon Law Firm, Delsack and Associates for a Free CA Lemon Law consultation. They will be happy to answer your questions. They can be reached at 888-Ex-Lemon (888-395-3666).

General Motors has decided to remove the “G.M. Mark of Excellence” logos from its Buick, Cadillac, Chevrolet, and GMC models. The logo has been on the vehicles since 2005. The reason given is that G. M. wants to emphasize these remaining brands. Research has shown that their customers think more of the individual brands than they do of General Motors in light of all their financial problems.

Are you are you having problems with your vehicle whether it be a Buick, Cadillac, Chevrolet, GMC, Pontiac, Hummer, Saturn or Saab? Call our offices for a Free California Lemon Law consultation. The toll free number is 888-Ex-Lemon.

GM has decided not to go forward with a new Buick Sports Utility Vehicle because the public did not seem to show any interest in it. The vehicle was going to be available in 2010 with an electric version due 2011l This decision came only two weeks after the new SUV was announced.

Are you concerned that the Buick you are driving may be a lemon? Call the California Lemon Law
Attorneys at Delsack and Associates for a Free consultation. 888-Ex-Lemon (888-395-3666).