Auto Rewind: Five Lane Changing Events for 2010

Almost everyday there was a recall being announced this year. According to the Detroit Free Press, over 20 million recalls were announced this year. Toyota led the pact. We haven't had this many auto recalls, since 2004. Since the authorities at NHTSA are all up in the auto industry business, we expect more recalls next year. Every automaker wants to avoid been fined like Toyota for reportedly being to slow in releasing recall info to the government. 

The U.S. government recouped $23.1 billion of its GM investment in November's IPO. Analysts expect that the government (or taxpayers) could break even on the cost of its 2009 GM bailout if it sells the remaining 500 million common shares at an average price of $53.  “GM is designed to be very profitable in a bad market,” Morgan Stanley analyst Adam Jonas wrote in a research report today, assigning GM shares an “overweight” rating and a target price of $50. GM's stock offers only “slightly more upside than Ford” and is “a higher risk,” he said. Who said the American public made a bad investment in saving GM and Chrysler two years ago?

Two mass produced electric vehicles (Chevy Volt and Nissan Leaf) are finally hitting the streets - although there is a lack of charging stations throughout the States. Just like hybrids, which has yet to be fully embraced by the American public, the mass produced electric vehicles are looking to create new roads.This could create more jobs, helping to build a new infrastructure for electric vehicles.

Andre Hudson, the Hyundai Sonata design manager, helped the company meet its goal of selling 500,000 new vehicles in America, a first for the automaker. Also the Lexus-like design of the Sonata helped to pivot the vehicle into a new league -  one of the top ten selling vehicles in the States - a first for a Korean made vehicle.

For every 52 vehicles Hyundai and Kia ships to America, we were only allowed to ship 1 American-built Chrysler, Ford or GM vehicle to Korea. Earlier this month President Obama was finally able to ratify an automotive trade agreement with the Korean government. The Korean government finally agreed to allow the American automakers to export more vehicles to Korea. 
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In what is good news for American automakers, U.S. tariffs on Korean trucks will remain at 25 percent for eight years instead of dropping off immediately. Additionally, each year Ford, GM and Chrysler would be able to send to South Korea 25,000 cars that meet U.S. safety standards. These vehicles would be exempt from in-country standards.


Obama said the agreement is a “win-win for both our countries.” The president said the accord will support a level playing field, boost U.S. exports by as much as $11 billion and support at least 70,000 U.S. jobs, according to Automotive News. To the auto industry, this is just as important as the Health Care Reform!