Auto News Digest

Ford bonuses are casualty of tire recall

DETROIT - Ford Motor Co., financially squeezed by the $2.1 billion Firestone tire recall, will eliminate bonuses paid to 6,000 middle managers and executives worldwide. Typically, the bonuses would be paid in March 2002 for attaining financial and customer satisfaction goals in 2001.

Ford paid $442 million in bonuses based on 2000 results. Ford also withheld bonuses in 1990, 1991 and 1992.

Honda checks Civic clamps

WASHINGTON - Honda Motor Co. Ltd. is recalling 120,649 2001 model Civics sedans and coupes to check for fuel hose clamps that could lead to a fuel leak in an accident, the National Highway Traffic Safety Administration said.

In a collision, without enough clamping force, the tube between gas cap and the tank could disconnect allowing fuel to spill and burn in the presence of an ignition source, Reuters reported.

Ford recalls Windstars

WASHINGTON - U.S. auto safety regulators said Ford Motor Co. was recalling nearly 200,000 1997-98 model Windstar minivans sold in certain Snowbelt states because of a corrosion problem with the front springs. The National Highway Traffic Safety Administration said the coil springs could break and contact the front tire, Reuters reported. "Some tires have deflated due to contact with a broken spring," NHTSA said.

Renault buys diesels from Isuzu

TOKYO - Isuzu Motors Ltd. will supply Renault SA with 3.0-liter direct fuel-injection diesel engines beginning next year, according to a published report.

Renault confirmed it would outsource production of the engines for its Versatis luxury cars due out at year end, Reuters said, but declined to identify a supplier or the number of engines to be outsourced.

The Nihon Keizai Shimbun said Isuzu would supply between 10,000 and 20,000 engines a year for Renault's luxury car, capitalizing on its expertise in using aluminum parts to make the engines lighter and more efficient.

Mitsubishi workers OK deal

NORMAL, Ill. - UAW members at a Mitsubishi Motor Corp. plant here ratified a four-year contract, ending a dispute that resulted in a two-day strike. About 2,800 workers represented by the UAW are employed at the plant.

The agreement calls for a lump-sum payment of $1,350 to the workers and an immediate hourly pay raise of $1.52 to adjust for increases in the cost of living, Reuters reported.

Production workers will receive a raise of 67 cents an hour and skilled workers will receive an extra 78 cents an hour starting this month, the UAW said.

Additional pay hikes will be effective in March 2003.

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