CHICAGO – U.S. automaker Chrysler Group LLC announced Monday that it will recall 127,350 of its 2011 and 2012 Dodge Charger and Chrysler 300 models in the United States and Canada due to a faulty fuse insert that could possibly interrupt the vehicle’s anti-lock braking system and electrical stability control.

According to a company filing with the U.S. National Highway Traffic Safety Administration, the suspect fuse in the car’s power distribution center could possibly overheat and cause loss of control, increasing the risk of an accident.

Chrysler said the recalled models built prior to December 20, 2011 will be fitted a new fuse, which will also be relocated in the vehicle. Recall notices will be sent out later this month.

According to Chrysler, no injuries or accidents related to the issue have currently been reported.

Of the total, 119,072 of the recalled Chrysler vehicles were sold in the United States, while 8,274 were sold in Canada.(Xinhua)

CHICAGO – Leading U.S. automaker Ford Motor Co. reported on Friday that it notched a profit of 1.4 billion U.S. dollars in the first quarter of 2012, a decrease of 45 percent compared to the same period of last year, as higher tax expenses and a heavy loss in the European market affected its overall performance.

Ford said in a Friday statement that its first-quarter revenue of 32.4 billion dollars was also 700 million dollars down from a year ago.

Higher tax expenses, lower wholesale volumes, and the difficult economic situation in Europe were cited by Ford as main reasons for the earnings decline, although the automaker still posted a pre-tax operating profit for the 11th consecutive quarter.

Before taxes, total net income for Ford was 2.3 billion dollars. However, that was also down 19 percent, or 544 million dollars, from the 2011 first quarter.

Ford’s profit appeared somewhat dragged down by its global divisions in the first quarter, as the automaker actually saw improved performance in North America.

The company’s North America pre-tax profit was 2.1 billion dollars, up 289 million from the first quarter of 2011. Ford noted that this was the highest quarterly profit for the region since at least 2000.

In Europe, however, Ford suffered a quarterly pre-tax operating loss of 149 million dollars, sharply down from a profit of 293 million it achieved in the same period of last year. The company’s European revenue was down 1.5 billion dollars from the year before.

Ford also suffered a loss in Asia Pacific Africa, which it said was largely due to capital investments for future growth in the region. The company lost a total of 95 million dollars in the region in the first quarter, down from a profit of 33 million a year ago.

Due in part to the company’s diverse growth across continents, Ford said its 2012 outlook remains mixed, but it has strong hopes for the future and plans to continue to grow internationally.

“We continue to expect 2012 to be a solid year marked by ongoing progress on our commitment to deliver great products, invest for global growth, build a strong business, and provide profitable growth for all,” Ford CEO Alan Mulally said.

Ford forecasts that its European unit will suffer a full-year loss anywhere from 500 million to 600 million dollars, while its Asia Pacific Africa division is expected to return to profitability by the end of the year.

In the United States, Ford expects its 2012 market share to be lower than the 2011 level of 16.5 percent, and forecasts sales of 14.5 million to 15 million vehicles for the year. (Xinhua)

by Katherine Harbin

CHICAGO (Xinhua) — Dozens of attendees waited in line at different Chrysler displays to ride in Ram trucks or Jeeps, where professional drivers maneuvered the cars through towering obstacle courses and let the backseat Chicago riders evaluate the vehicles’ performance for themselves.

As the nation’s largest and longest-running auto show, the 2012 Chicago Auto Show has attracted tens of thousands of people all excited to see the latest models and “shop” the latest selection of vehicles from virtually every carmaker across the globe, against the backdrop of U.S. economic recovery.

Participants of all ages swarmed around the shining displays of new models from General Motors to Porsche, but the automaker with arguably the most popular display at this year’s Chicago Auto Show was Chrysler Group LLC, with brands including Chrysler, Fiat, Jeep, Ram and Dodge.

Chrysler’s obvious efforts to capture the attention of the participants go along with the company’s hotly marketed goal of recementing itself in the U.S. auto market, after Chrysler emerged from bankruptcy in 2009 following a new partnership with Italian carmaker Fiat.

Earlier this February, Chrysler reported it had paid off its 551 million U.S. dollars incurred in the 2008 auto bailout and posted a 2011 net income of 183 million U.S. dollars, a striking improvement from the automaker’s net loss of 652 million U.S. dollars only one year before.

This dramatic turnaround for the U.S. automaker was captured in a highly-publicized and much discussed Chrysler Superbowl ad, featuring actor Clint Eastwood saying it was “halftime in America” and encouraging the “comeback” of the U.S. economy, with Detroit as an example.

Chrysler Midwest Communications Manager Wendy Orthman told Xinhua that with all the headlines, people at the Chicago Auto Show were showing greater interest in Chrysler products this year, even without the help of the eye-catching displays.

“I think a lot of people who are coming to the Chrysler booth are not just coming because they want to climb Jeep Mountain or drive the Ram trucks over their obstacles, but to really see what all the buzz is about,” Orthman said, adding that the Chicago Auto Show was a low-stress way for people to shop for a future car and evaluate what each company has to offer.

“I think there has been a lot of talk about our improved interiors and our improved fuel efficiencies and the improved quality of Chrysler products, and this is a nice way for them to get in the vehicles, open the doors, sit in the car, play with the technology… and then we obviously hope they’ll consider us when it’s time for them to buy down the road,” Orthman commented.

The Toyota display at the Chicago Auto Show may not have had obstacle courses like Chrysler, but the Japanese automaker had its own share of interactive activities and large crowds of attendees browsing the car selection and asking questions of Toyota representatives standing nearby.

Toyota District Sales Manager James Garwood said that customer traffic at the Chicago Auto Show had been so great this year that Toyota had already hit its goal for sales leads, even though the show is not even scheduled to end until after the weekend.

Garwood said that though not everyone came to the auto show looking to make a purchase, he had noticed somewhat of a change in this year’s environment.

“You’re going to get a lot of customers who come I think for the family fun… but I think there are a lot more serious buyers this year,” Garwood told Xinhua in an interview.

With U.S. auto sales totaling almost 13 million vehicles in 2011, many automakers have fixed their eyes on the U.S. market, as the American economy recovers and questions on Europe remain.

Garwood commented that the United States was Toyota’s “bread and butter” market and the company hoped to grow the most there in the future, but acknowledged that competition in the United States and particularly the midsize sedan market – where Toyota’s Camry model has historically shined – was increasingly difficult.

“It’s very tough but it’s a good thing, I think competition drives traffic into the dealerships and we’ve been seeing that a lot with our competitors,” Garwood said, commenting on the economic positives, and adding that he thought 2012 would be a “huge” year for Toyota given the market turnaround.

The U.S. economy may still not have reached its pre-crisis levels, but with a declining unemployment rate and recovering manufacturing sector, many Americans are feeling more confident in the economy.

According to a Gallop poll released this week, the percentage of Americans who thought the economy was “getting better” had increased to nearly a four-year high.

Combined with a recent study from Polk auto data service that the average age of Americans’ cars in 2011 was at a record high of 10.8 years, more people may consequently be in the market to buy a new car.

Despite the good news, auto professionals were careful not to overly exaggerate the gains made in the industry. Those like Orthman caution that though she was proud of Chrysler’s achievements, there was still no crystal ball to tell what the future would hold.

But with the packed crowds at McCormick Convention Center all exploring the Chicago Auto Show and its wealth of car models, an air of optimism did seem to surround North America’s largest auto show, which runs until Feb. 19.

BEIJING (Xinhua) — Anhui Jianghuai Automobile Group Co., China’s biggest exporter of light trucks, said Saturday it has signed an agreement with Brazil’s SNS Co. to build a joint venture in the South America’s biggest country.

The project’s entire investment will reach 600 million U.S. dollars, Anhui Jianghuai said in a statement filed to the Shanghai Stock Exchange.

The automaker will take a 20 percent stake in the joint venture, while SNS will have a 80 percent stake, the statement said.

The joint venture is expected to produce 100,000 passenger cars every year under the brand name of “Anhui Jianghuai”. All major components that the joint venture needs must be bought from Anhui Jianghuai, the statement said.

The completion of the deal is still subject to approval by Chinese and Brazilian authorities, the statement said.

CHICAGO (Xinhua) — Toyota Motor Corp. said on Wednesday it is recalling about 550,000 vehicles worldwide, including 420,000 in the United States, for a potential steering problem.

In the United States, the automaker is recalling 283,200 Toyota brand cars, including the 2004 and 2005 Camry, Highlander, Sienna and Solara, the 2004 Avalon and the 2006 Highlander HV. Its recall of 137,000 Lexus vehicles includes the 2004 and 2005 ES330 and RX330 and 2006 RX400h.

There is a possibility that the outer ring of the crankshaft pulley may become misaligned with the inner ring, causing noise and/or illumination of the discharge warning light, Toyota’s U.S. unit said of the problem in a release.

If this condition is not corrected, the belt for the power steering pump may become detached from the pulley and the driver may notice a sudden increase in steering effort, according to the company.

Toyota has received a total of 79 reports about the defect dating back to 2007, said company spokesman Dion Corbett. There have been no reports of accidents or injuries related to the problem, he said.

The recall affects 447,000 vehicles in North America, as well as 38,000 in Japan and another 25,000 in Australia and New Zealand. In Europe some 14,000 vehicles are being recalled, in addition to 10,000 in the Middle East and 14,000 in Asia outside Japan.

In the United States, Toyota will send an owner notification, advising owners to make an appointment with an authorized dealer to have their cars inspected once replacement parts have been produced in sufficient quantities. If needed, parts will be replaced for no charge, the company’s American sales unit said.

In the meantime, if an abnormal noise is heard coming from the engine compartment, the owner is asked to make an appointment with any Toyota or Lexus dealer to have the vehicle inspected for this condition, the company said.

CHICAGO (Xinhua) — A tentative agreement between U.S. automaker Ford Motor Co. and the United Auto Workers (UAW) was approved by UAW members on Tuesday, the union announced on Wednesday.

The Ford agreement, which comes three weeks after General Motors’, would add 5,750 new UAW jobs, bringing the total to 12, 000. Chrysler Group LLC has just begun voting on its proposed deal, which is expected to conclude on Oct. 25.

As a result of these negotiations, a total of 20,000 direct manufacturing jobs will be added to the economy, including the creation of 6,400 jobs at GM, said UAW President Bob King.

The Ford agreement also includes 16 billion dollars of investment in new vehicles, including 6.2 billion to upgrade plants in Michigan Assembly, AutoAlliance International in Flat Rock, Romeo Engine and some transmission plants.

Besides, according to the agreement, Ford workers with a year of seniority will get a 6,000-dollar signing bonus and receive 7, 000 dollars of “inflation protection” and other lump-sum payments.

Mark Fields, Ford president of the Americas, said the agreement is a proof that the company could significantly create new jobs, invest in plants and people, and make a very positive impact on the U.S. economy.

Japan’s biggest automaker Toyota said Wednesday production at its three Thailand plants would be halted until at least Saturday due to the impact on suppliers of the country’s worst flooding in decades.

While floods have not directly impacted its Samrong, Gateway and Ban Pho plants, Toyota said: “Some suppliers are experiencing delays in supplying parts.”

Operations at the three plants have been halted since Monday and Toyota said the suspension would continue through Saturday’s morning shift, when the company would take a decision on whether to resume.

A Toyota spokeswoman told AFP that annual production capacity at the three plants totals 650,000 units. In 2010, the plants produced 630,000 units.

“We still cannot say how many units will be affected by the latest production halt, as it is yet to be clear how long the move will last,” she said.

Toyota shares were 0.34 percent lower in Tokyo trade on Tuesday.

Massive floods have left hundreds dead across Thailand, Cambodia and Vietnam, as authorities step up efforts to reach victims of the unusually heavy monsoon rains.

In Thailand the floods have damaged the homes or livelihoods of millions of people, particularly farmers, across about three quarters of the country’s provinces.

In its ancient capital Ayutthaya, about 80 kilometres (50 miles) upriver of Bangkok, historic temples have been swamped and a large industrial estate, home to several Japanese electronics and auto parts makers including car giant Honda, has been flooded. (AFP)

CHICAGO (Xinhua) — Workers in General Motors Co. on Wednesday approved the automaker’s four-year contract with the United Auto Workers (UAW) union, and the contract came into effect immediately.

The Detroit News on Wednesday reported that 65 percent of GM’s production workers and 63 percent of skilled trade workers voted in favor of the deal, ratifying a tentative agreement struck two weeks ago.

According to the new agreement, the workers’ entry level pay was raised by three dollars per hour and a 75,000-dollar buyout were offered for skilled trade workers. Workers also will get a 1, 000-dollar “inflation protection” lump sum for the next four years.

Besides, GM will save or create 6,400 new jobs as part of the agreement and bring back work to the U.S. previously destined for Mexico.

The former contract between UAW and GM expired on Sept. 14 and the two sides reached a tentative agreement on Sept. 16. UAW is now still bargaining with Ford and Chrysler on a new contract.

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PARIS (Xinhua) – Car sales in France gained momentum in August after sharp drop in the previous months, French car sales federation (CCFA) said on Thursday.

August’s new car sales stood at 108,530 units, up from 105,166 vehicles sold in the same month a year earlier, the federation said in its monthly report.

Sales of French brands were down by 2.2 percent while foreign brands expanded by 10.5 percent on high demands for Nissan and Volkswagen cars.

France’s main automaker, PSA Peugeot Citroen group saw its sales down by three percent last month after offering 31,867 units while Renault, reported 1.4-percent fall due to sharp decline in sales of its low cast brand Dacia.

TIANJIN (Xinhua) – Ssangyong Motor Co., the smallest automaker of the Republic of Korea (ROK), has re-entered the Chinese market with its new sport utility vehicle (SUV) two years after it halted exports to the country, Chinese authorities said Thursday.

The first batch of 302 Ssangyong SUVs, including Kornando, Actyon and Rexton models, were shipped to the northern Chinese port city of Tianjin this week, a spokesman with the Tianjin Port Co., Ltd. said.

The company opened its China headquarters in Shanghai earlier this year and designated two Chinese auto dealers for its sales in the country, the spokesman said.

Ssangyong was affiliated with China’s Shanghai Automotive Industry Corp. (SAIC) between 2004 and 2009, and began exporting SUVs to China in 2006. Then it entered bankruptcy protection in February 2009 after SAIC decided to disassociate itself from the company, which led to the halt of its SUV exports to China.

Last year, Ssangyong agreed to sell its majority stake worth 460 million U.S. dollars to Indian carmaker Mahindra & Mahindra Ltd.