Last month, U.S. automobile lenders received subpoenas from the Consumer Financial Protection Bureau (CFPB) over the sale of extended warranties, add-ons and other financial products. Regulators are probing whether the terms and prices of these products are adequately disclosed to consumers and are questioning if some lenders may be using them as a way of boosting profits. Continue reading

General Motors have announced a recall for over 38,000 Chevrolet and Buick sedans equipped with its “eAssist” mild hybrid system. According to GM overheating of the circuit boards in the Generator Control Module (GCM) could result in loss of battery charge, the illumination of the engine malfunction indicator light, and in extreme cases, a fire in the trunk. Two trunk fires have already been reported as a result of the issue. Continue reading

Additional financing and the transferring of executives could not save Fisker and the fact that consumers are reluctant to purchase electric vehicles (EV). With a $104,000 price tag, the Fisker Karma lost out to other auto makers like Ford and Nissan who offer a more affordable EV. At the 2012 New York auto show, Fisker unveiled a smaller, less expensive concept model it hoped to build in an abandoned G.M. plant in Delaware, but production never started because of lack of funds. Continue reading