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A summary of the key stories from the Monday edition of Automotive News.

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For the Week of Feb. 13, 2012




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Caught in campaign crossfire

Last week an unlikely 81-year-old emerged from the shadows into the glare of political controversy. Clint Eastwood sauntered out of a dark-toned Chrysler Group Super Bowl spot to growl out a tribute to the revival of domestic automakers. 12:01 am U.S. ET | Feb. 13, 2012

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Shuffle at Ford looks like good news for Fields

Although his name was not mentioned once in official statements about last week's executive shuffle at Ford Motor Co., President of the Americas Mark Fields may have been the biggest beneficiary. 12:01 am U.S. ET | Feb. 13, 2012

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Sticks and carrots: Why furor over facilities won't go away

Martin NeSmith personifies the boiling point over manufacturer facility programs. NeSmith just built a Chevrolet-Buick-GMC store in Jesup, Ga., spending an extra $500,000 to comply with General Motors' Essential Brand Elements program. 12:01 am U.S. ET | Feb. 13, 2012

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LARRY P. VELLEQUETTE

'Halftime' flap: Rove knows that Chrysler owes us nothing

Let us make one thing clear amid the sound and fury over Chrysler Group's "Halftime in America" Super Bowl commercial: Chrysler Group LLC, as it exists today, owes the U.S. 12:01 am U.S. ET | Feb. 13, 2012

Audi plant site will be set by summer

Volkswagen AG expects to choose a site for Audi's much-anticipated North American plant by the summer, and locations in Mexico and the United States are in the running, said Michael Macht, VW's head of manufacturing. 12:01 am U.S. ET | Feb. 13, 2012

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HYUNDAI HALO ZONE?

Company weighs new luxury subbrand for its showrooms

Hyundai is looking at selling its rear-wheel-drive premium vehicles such as the Equus, Genesis sedan and Genesis Coupe under a new subbrand called Genesis. 12:01 am U.S. ET | Feb. 13, 2012

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CARS & CONCEPTS

Chrysler mulls its minivan plan

It may have been the most polarizing design at last month's Detroit auto show, but Chrysler hasn't given up on the idea of reinventing the minivan with something as controversial as the 700C concept. 12:01 am U.S. ET | Feb. 13, 2012

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CARS & CONCEPTS

Kit produces a Brute of a Jeep pickup

Jeep has yet to answer enthusiasts' request for a factory-made Wrangler-based pickup. But dealers soon will have an alternative. 12:01 am U.S. ET | Feb. 13, 2012

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Mini plans a wagon, van, maybe a sedan

BMW's Mini brand will add a five-door station wagon, a van and possibly a notchback sedan to its lineup by 2020, a source told Automobilwoche, Automotive News' German sibling publication. 12:01 am U.S. ET | Feb. 13, 2012

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CARS & CONCEPTS

Tesla: 7-seat EV crossover has lots of zip

Tesla Motors says the battery-powered crossover it showed last week -- two years before its scheduled sales debut -- can get off the line faster than a Porsche 911. The Model X will carry seven occupants and their luggage. 12:01 am U.S. ET | Feb. 13, 2012

CARS & CONCEPTS

Toyota: No U.S. Scion FR-S strippos, for now

Toyota Motor Corp. won't offer a strippo version of the Scion FR-S when the sporty car arrives in the United States this year. 12:01 am U.S. ET | Feb. 13, 2012

THE GREEN SCENE

Coda works on its 2nd EV, a small SUV

Coda Automotive's electric Sedan hasn't arrived in showrooms yet, but industry sources told Automotive News that Coda is already working on its next model, a small SUV. 12:01 am U.S. ET | Feb. 13, 2012

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GREEN SHOOTS

Retrofitters plug into EV fleet niche

Automakers are having a hard time selling electric vehicles in volume. But retrofitters aiming for tiny niches are proliferating. 12:01 am U.S. ET | Feb. 13, 2012

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THE GREEN SCENE

Who'll rule the battery biz?

A shakeout of North America's electric vehicle battery suppliers is under way. In January, Ener1 Inc., the New York-based battery maker that owned a stake in bankrupt Norwegian EV producer Think Global, filed for Chapter 11 reorganization. 12:01 am U.S. ET | Feb. 13, 2012

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Elantra GT sales start in summer

The 2013 Hyundai Elantra GT unveiled at the Chicago Auto Show is a five-door hatchback that replaces the Elantra Touring wagon. The car is powered by a 1.8-liter, 148-hp four-cylinder engine and is available with a six-speed automatic transmission. 12:01 am U.S. ET | Feb. 13, 2012

Kia to build more Optimas in U.S.

Kia will use most of its expanded capacity in the United States to boost Optima production by as many as 60,000 units this year. The decision comes after U.S. sales of the Optima more than tripled last year from 2010. 12:01 am U.S. ET | Feb. 13, 2012

Nissan nudges its dealers to join regional ad groups

To bring more dealers into its new regional dealer advertising associations, Nissan Division will trim the amount of money it is giving nonmembers. 12:01 am U.S. ET | Feb. 13, 2012

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Saab dealers urge GM to pay warranty costs

A group of Saab dealers is asking General Motors to cover warranty repairs for 2010 and 2011 models. GM says it will only honor warranties through the 2009 model year, before its own bankruptcy and disposal of Saab. 12:01 am U.S. ET | Feb. 13, 2012

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Prius C shrinks in size, price

Toyota is enlarging the Prius family by adding a vehicle that is smaller and lower-priced than the original Prius. The Prius C -- the C stands for "city" -- is based on the subcompact Yaris platform. 12:01 am U.S. ET | Feb. 13, 2012

LETTER TO THE EDITOR

Encourage diesel- like efficiency, too

With regard to Keith Crain's Jan. 23 column, "We need more incentives": We agree that if America is serious about fuel efficiency, federal encouragement for diesel vehicles should be considered. 12:01 am U.S. ET | Feb. 13, 2012

EDITORIAL

Lessons from TrueCar

A byproduct of the recent changes to the TrueCar.com business model highlight how archaic and out-of-touch many state franchise laws have become in the age of the Internet. 12:01 am U.S. ET | Feb. 13, 2012

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KEITH CRAIN

Nobody has clout like NADA's

Once again this year, the National Automobile Dealers Association put on a convention that was full of great things. The No. 12:01 am U.S. ET | Feb. 13, 2012

EDITORIAL

Nowadays, everything is a political football

Clint Eastwood's evocative Super Bowl commercial for a feisty Chrysler professed faith in Detroit and Americans. But that's not what some Republicans saw. 12:01 am U.S. ET | Feb. 13, 2012

LETTER TO THE EDITOR

We don't need any incentives

Regarding Keith Crain's Jan. 23 column: There should never have been any incentives for any kind of vehicle. If electric cars are so good, why not restrict government purchases, including police and military, to those vehicle types? 12:01 am U.S. ET | Feb. 13, 2012

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Boler-Davis to spearhead GM push for buyer loyalty

General Motors North America President Mark Reuss has the ambitious goal of making GM the industry leader in customer service and satisfaction. That means Alicia Boler-Davis has a big job. 12:01 am U.S. ET | Feb. 13, 2012

Toyota expects sales jump

Toyota Motor Corp. sees North American sales surging in the January-March quarter as it recovers from last year's earthquake and aims for record volume in 2012. 12:01 am U.S. ET | Feb. 13, 2012

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NEWS ANALYSIS: Super or not?

Last year automotive advertisers emerged from their recession bunkers and flocked back to the Super Bowl. This year, automakers unleashed another flood of commercials -- and another bold effort from Chrysler stood out. 12:01 am U.S. ET | Feb. 13, 2012

Fleet sales power Jan. sales growth

Most Januarys, fleet is a welcome supplement to weather-battered retail sales. This January, fleet volume turned a fair month into a strong one. 12:01 am U.S. ET | Feb. 13, 2012

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Nissan reports strong third-quarter profit

Nissan Motor Co., Japan's second-biggest automaker, reported third-quarter profit that rose 3 percent and beat analysts' estimates as the carmaker reached record sales in China. Net income was ¥82. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

Marchionne thanks dealers, demands more from them

Chrysler-Fiat CEO Sergio Marchionne struck a conciliatory tone with dealers here last week. He thanked them for Chrysler Group's success and acknowledged that automakers no longer had the power to dictate terms to their retailing partners. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

NADA chief: Fuel rules will shrink market

The proposal to increase federal fuel economy standards to 54.5 mpg by 2025 threatens to price millions of consumers out of the market, the 2012 chairman of the National Automobile Dealers Association said. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Buick: Loaners boost sales

General Motors wants Buick-GMC dealers to offer courtesy loaner vehicles and is considering new advertising standards as ways to move the brands up the premium scale, executives told dealers at the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Ford to help dealers renovate

Ford brand unveiled its Facilities of the Future program to dealers at the make meeting. Ford will offer dealers financial help to improve their stores in line with Ford's Trustmark Design standard. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Toyota refilling dealer stocks

After months of inventory shortages triggered by last year's earthquake, Toyota dealers should return to full volumes within a few weeks. 12:01 am U.S. ET | Feb. 13, 2012

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Acura aims for 180,000 sales in '12

After a year in which their sales were limited by a devastating earthquake in Japan, Acura dealers were told here that production of Acura vehicles is back to normal and the distribution pipeline should be full by March. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Chevrolet targets 13% sales gain

General Motors, seeking to gain market share this year, is gunning for a 13 percent U.S. sales increase for Chevrolet. GM expects Chevrolet to increase its market share in 2012, executives told dealers at the make meeting. Last year Chevrolet's U.S. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Cadillac sees retail sales rising, less fleet business

General Motors is seeking to increase Cadillac's retail sales about 13 percent this year as it prepares for its busiest product-launch schedule in many years. Cadillac executives have set a 156,000-unit U.S. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Kia dealers expect 100,000 more units

Kia pledged to get its U.S. dealers 100,000 more units this year than last year to keep up the brand's momentum. An extra 100,000 sales would be about a 20 percent gain for Kia in 2012. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Mercedes aims for 6% rise in sales

Mercedes-Benz USA executives didn't attend the make meeting, leaving their top manager in the western region to field dealer questions. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Mazda will boost marketing 25%

Mazda North American Operations will use the launch of its Skyactiv powertrain technology and the arrival of the new CX-5 crossover as the impetus to boost its marketing spending by 25 percent this year, executives told dealers at the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Nissan goal for 2012: 1.1 million

Nissan was the only major Japanese automaker whose U.S. sales were not hurt significantly by the March 11 earthquake. Now it is looking to add to its 2011 momentum with a 16 percent increase to 1. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

BMW dealers told bonuses are safe

For dealers attending the BMW make meeting, it was all about listening to the new CEO talk about improving communications -- and assuring them no bonus programs will be cut. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Suzuki plans to refresh its lineup

Suzuki dealers need a refreshed product lineup and consistent supplies if they are to hit the automaker's goals of increasing sales in the United States by 20 percent in 2012, dealers were told during their make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Audi wants to join CSI elite

Audi of America COO Mark Del Rosso challenged dealers here to keep making store and process improvements to raise Audi's customer satisfaction scores into the top three among luxury brands. Audi placed 10th last year among luxury carmakers on J.D. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Chrysler dealers cheer Eastwood's pep talk

Chrysler Group dealers received a special early preview of the automaker's two-minute "Halftime in America" Super Bowl commercial during their make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Infiniti bumps ad budget, offers local-area choices

Infiniti will spend more on advertising and give dealers a new menu of TV commercials for local markets, dealers were told at the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Allocation system, SUV shortages rile Land Rover dealers

Dealers at the Land Rover meeting said vehicle allocation and balanced supply throughout the year are their biggest concerns, prompted in part by shortages of the new Range Rover Evoque compact SUV. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Lincoln's product show won't snub small stores

Lincoln will invite all its dealers to a Lincoln product show in Detroit in November, executives told dealers at the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Saab parts flow is top priority, dealers told

Tim Colbeck, president of Saab Cars North America, told about 25 dealers at the make meeting that the automaker will not contest a move by dealers to force it into Chapter 11 bankruptcy. "We're not going to fight the bankruptcy," Colbeck said. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Porsche will review store capacity

Porsche Cars North America starts a four-city tour this month to talk with dealers about how they'll handle the coming wave of new products and whether they need to expand and modernize. Beginning Feb. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Volvo forms finance arm; dealers cheer

Volvo Cars of North America delighted dealers by announcing at the make meeting the launch of a captive finance arm with services beginning this year. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Honda is fixing inventories now, the Civic in the fall

Honda will bring out a significant midcycle change to the Civic compact this fall, just 18 months after it was launched, executives said at the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

VW raises output for U.S., seeks more sales per store

Volkswagen plans to crank up production specifically for the United States 50 percent this year, executives told dealers at the make meeting. VW brand aims to boost U.S. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Jaguar dealers applaud new U.S. ads, better Web site

Jaguar's new marketing campaign and U.S. Web site are driving more customers into showrooms, dealers said after their meeting. "Everybody recognizes that over the years there has been a lack of attention to the brand. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

Mitsubishi predicts 100,000 sales by 2014

Mitsubishi Motors North America executives laid out plans to increase sales to 100,000 by 2014, said dealers who attended the make meeting. 12:01 am U.S. ET | Feb. 13, 2012

NADA MAKE MEETINGS

More cars for Hyundai stores in '12

Three factors could bring more vehicles to hungry U.S. Hyundai dealers in 2012: new and redesigned models, manufacturing efficiency and a soft European market. 12:01 am U.S. ET | Feb. 13, 2012

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NADA MAKE MEETINGS

Subaru boosts output, will target Sun Belt

Subaru inventories will be high enough to meet or exceed the brand's U.S. sales goal of 320,000 vehicles, executives told dealers at the make meeting. Subaru is increasing production. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

Batey: Chevrolet lures younger customers

Chevrolet is bringing in younger customers and luring buyers from non-General Motors brands, says Alan Batey, 49, vice president of sales and service. He says that will help dealers overcome a dearth of leasees coming back into the market. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

NADA's U.S. sales forecast is 'toward the top of the heap'

NADA is bullish on 2012, forecasting that U.S. light-vehicle sales could hit 13.95 million this year. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

Asbury CEO Monaghan: 'The industry is back'

Craig Monaghan smiles a lot these days. The CEO of Duluth, Ga.'s Asbury Automotive Group Inc., the sixth-largest dealership group in the country, sees rising auto sales, a recovering economy and growing profits for dealers. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

New AIADA chairman: We must prepare for battle

AIADA Chairman Ray Mungenast isn't as confident as others that 2012 will be a smooth year for manufacturers. 12:01 am U.S. ET | Feb. 13, 2012

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NADA CONVENTION

AutoTrader assembles car-shopping powerhouse

AutoTrader.com Inc. CEO Chip Perry has rapidly created a car-shopping behemoth. It helps 30 million consumers research vehicles every month and helps dealers sell to those consumers. 12:01 am U.S. ET | Feb. 13, 2012

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Q&A: MICHAEL MACHT, VW GROUP

VW's rising global sales put pressure on production team

Volkswagen Group's 10 brands produced more than 8 million light vehicles last year, and VW aims to surpass 10 million by 2018 or sooner to become the world's largest automaker. 12:01 am U.S. ET | Feb. 13, 2012

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Mercer report examined

As dealers digested the results of the National Automobile Dealers Association's facilities study last week, they found common ground with challenge after challenge presented by author Glenn Mercer. 12:01 am U.S. ET | Feb. 13, 2012

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Missouri dealers elect officers

The Missouri Automobile Dealers Association has new officers for 2012. 12:01 am U.S. ET | Feb. 13, 2012

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FINANCE & INSURANCE

Is credit life dead? Not for one F&I chief

Dealership Finance Director Loe Hornbuckle sells an F&I product that many stores won't touch. And he's getting impressive results. Last year, Hornbuckle and four other F&I officers at Holmes Motors in Shreveport, La. 12:01 am U.S. ET | Feb. 13, 2012

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Retailer: 8 projects, many challenges

Ron Redfern attended the NADA convention to spend money -- lots of it. His company, Summit Automotive Partners of Centennial, Colo., is spending $25 million during the next year to build or renovate eight dealerships. 12:01 am U.S. ET | Feb. 13, 2012

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Booth, Kuzak: Key players in Ford's comeback

With the retirements of CFO Lewis Booth and product development chief Derrick Kuzak, Ford Motor Co. CEO Alan Mulally loses two lieutenants who played critical roles in the company's comeback. 12:01 am U.S. ET | Feb. 13, 2012

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CHICAGO AUTO SHOW

Chrysler: Lots mo' Mopar models coming

Chrysler Group will expand its line of Mopar-branded models to take advantage of what it sees as a growing demand for vehicle individualization. 12:01 am U.S. ET | Feb. 13, 2012

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CHICAGO AUTO SHOW

Global pasture for high-hp Mustang?

Ford Motor Co.'s new 650-hp Shelby GT500 Mustang convertible is the sort of expensive, roaring beast that American motor enthusiasts love. But Ford planners are now contemplating letting other markets around the world show some Mustang love. 12:01 am U.S. ET | Feb. 13, 2012

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CHICAGO AUTO SHOW

GMC Acadia gets new sheet metal

The GMC Acadia gets its first major changes since the vehicle debuted in 2007. 12:01 am U.S. ET | Feb. 13, 2012

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CHICAGO AUTO SHOW

Inspired by the many Minis, Kia considers 'a family of Souls'

Kia may adopt Mini's product formula for the next-generation Soul crossover by offering several variations of the vehicle. "I think there is an opportunity to produce a family of Souls," says Tom Kearns, Kia Motors America's chief designer. 12:01 am U.S. ET | Feb. 13, 2012

CHICAGO AUTO SHOW

Nissan takes on Ford in small-van market

Nissan North America will square off against Ford Motor Co. for a piece of the small cargo van market this year when it begins production of its NV200 in Mexico. Ford now has a monopoly on the small segment with its Transit Connect. 12:01 am U.S. ET | Feb. 13, 2012

Honda adds stock; Toyota's units decline

Toyota Motor Sales U.S.A. and American Honda Motor boosted sales in January, but both are still working on restocking dealerships. 12:01 am U.S. ET | Feb. 13, 2012

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Brake maker Brembo plans N.A. expansion

Brembo S.p.A., Italy's designer brake maker for high-end cars, has barely gotten off the ground in U.S. manufacturing. But Brembo North America CEO Dan Sandberg says the company already is looking to grow. 12:01 am U.S. ET | Feb. 13, 2012

PRODUCTION

Jan. output rises 23%

North American car and truck production in January rose 23 percent from January 2011 levels to 1,255,775 units. That was the most vehicles produced in a January since 1.3 million were built in 2006. 12:01 am U.S. ET | Feb. 13, 2012

Obituary

Information about longtime Arizona car dealer Gerald Hatch. 12:01 am U.S. ET | Feb. 13, 2012

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RICK KRANZ

Acura: Seinfeld, Leno crashed the Web site

Is Acura happy with the response to the Super Bowl commercial featuring Jerry Seinfeld and Jay Leno vying for the upcoming NSX sports car? You betcha. Moments after the Super Bowl ended, Acura's Web site crashed. 12:01 am U.S. ET | Feb. 13, 2012

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FINAL ASSEMBLY

Chrysler's illuminati spar over lighting up the Dart's derriere

Call it the battle of the backside: There's a big debate within Chrysler about whether a snazzy full-width panel of LEDs should be standard on all Dodge Darts or just high-end models. 12:01 am U.S. ET | Feb. 13, 2012

FINAL ASSEMBLY

Fisker's delay brings sniping from Obama foes

A production delay last week at Fisker Automotive had foes of the Obama administration snarling about Solyndra, the solar panel maker that went bankrupt after receiving a loan from the U.S. Department of Energy and became a political hand grenade. 12:01 am U.S. ET | Feb. 13, 2012

FINAL ASSEMBLY

Mazda's dating again; anybody wanna snuggle?

With its financial outlook increasingly bleak and the embers cooled from its former fling with Ford, Mazda approaches this Valentine's Day looking for some corporate romance. 12:01 am U.S. ET | Feb. 13, 2012

FINAL ASSEMBLY

Mercedes won't join the small-van caravan

Compact commercial vans such as the Ford Transit Connect are big sellers in Europe, accounting for 700,000 units annually. 12:01 am U.S. ET | Feb. 13, 2012

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FINAL ASSEMBLY

Toledo success brings promotion for Pino

Mauro Pino, a burly, 6-foot-4 Sicilian with a sonorous baritone voice, stood out immediately when he arrived in Toledo as manager of Chrysler's assembly complex there in April 2010. It now appears Pino's fame will spread further. 12:01 am U.S. ET | Feb. 13, 2012


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