GM's Bob Lutz Says that Auto Execs are "Way, Way, Way Underpaid"...

Yes, you read correctly; auto executives earning six- or seven-figure salaries to run a company that went bankrupt and had to be bailed out by the government, (partially due to the incompetence of some of its high-ranking/paid officials), should be filling their bank accounts with much, much more money, according to GM Vice Chairman Bob Lutz

"What you see is what you get, and it ain't a lot," said Lutz, in an interview with the Detroit News on the sidelines of the National Automobile Dealers Association (NADA) annual convention.

"All I know is, right now, we are given our responsibility. And given the rigors of the job and demands and the accountability, I would say we are being paid way, way, way below market," Lutz added.

The General Motors exec's comments come at a time when the firm's top 25 senior executives' pay packages are being reviewed by the Treasury Department.

The agency's pay czar, Ken Feinberg, ruled last fall that the salaries for GM's top 25 executives would fall by 31 percent, while total compensation would drop 20.4 percent, with only one exec beyond the CEO to earn more than $500,000 in cash.

According to the Detroit News article: "since Feinberg set pay limits last year, GM has hired a new chief financial officer, Chris Liddell, who will be paid in $750,000 plus stock awards. Special adviser Steve Girsky is being paid $1.1 million for sitting on GM's board of directors and for advising Whitacre. His pay includes $200,000 a year as a director and a monthly grant of salary stock valued at $75,000, or $900,000 a year."

As for Whitacre's pay, it will be eventually revealed in a voluntary Securities and Exchange Commission filing. Not that Whitacre will go hungry since he received a hefty $158 million retirement package when he left as CEO of AT&T in 2007...

But as always, there's more than one side to a story. Even though Lutz's remarks may sound offensive to some given that as a company, GM is also performing 'way below market' and is currently running on federal loans, he does have a point when he says that the drop in payments may have a negative effect on GM's ability to recruit talented executives.

"Right now, that isn't a problem, but over time, clearly a company that under-compensates senior executives is going to have a retention or recruiting problem," Lutz said.

The GM Vice Chairman diplomatically ended the interview saying that: "You can't go through Chapter 11 and come out the other side and expect to have all of the same perks and comps as you did before. We just hope it doesn't stay this way too long."

Via: Detroit News

Tata Motors Hires Ex-Opel Boss, Carl-Peter Forster as Group CEO

The former boss of General Motors Europe, Carl-Peter Forster, has been hired by India's largest automobile manufacturer, Tata Motors, as the group's Chief Executive Officer with overall responsibility of Tata Motors Operations globally, including Jaguar and Land Rover, the company announced.

Up until November of 2009, the 55-year-old executive was the head of General Motors Europe, where he looked after Opel/Vauxhall, Saab and the European activities of Chevrolet.

Forster stepped down as the company's president after objecting to GM's decision to reverse a sale of its European operations to a Magna-led consortium.

Prior to joining General Motors in 2001, Forster worked for the BMW Group for 13 years holding various positions including that of Managing Director of BMW South Africa and was also on the Managing Board of BMW responsible for manufacturing.

In an official statement, Ratan N. Tata, Chairman of the Indian company said, "Tata Motors expects that Mr. Forster's induction will greatly facilitate its ambition towards being a truly international company."

Toyota Announces Voluntary Recall on 8,000 Tacoma Trucks Over Potential Defect in Front Drive Shaft

Appearing to have learned its lesson from its accelerator pedal / floor mat woes, Toyota is now issuing voluntary recalls right and left before problems escalate to a point of crisis.

In this latest episode, the Japanese automaker announced it will conduct a voluntary safety recall to inspect the front drive shaft on a small production run of certain 2010 model year Tacoma 4WD trucks.

According to Toyota, the front shaft in these vehicles may include a defective component that contains cracks that developed during the manufacturing process. As the truck get used, the cracks may lead to the separation of the drive shaft at the joint portion.

Toyota said that the recall affects approximately 8,000 Tacoma 4WD trucks in the U.S. adding that no other Toyota or Lexus vehicles are involved.

The company's dealers will inspect the affected vehicles and if necessary, replace the front drive shaft.

Toyota said that it will notify owners by first class mail starting in mid-March, 2010.

VIDEO: New Porsche 911 GT3 R Hybrid with Williams-Developed Energy Storage System

If you're wondering why we (or anybody else, for that matter) didn't note that the energy storage system used on Porsche's new 911 GT3 Hybrid racer was developed by Williams in our original post, that's because the Germans 'conveniently' forgot to mention it in their official press release...

Thankfully, Williams issued a separate release informing us about their collaboration with Porsche while the company also noted that the energy storage system was originally developed for use in Formula One by the AT&T Williams team (the KERS system), but now it is focusing on applying the technology in road vehicles through its Williams Hybrid Power subsidiary.

Read more »

Abarth 500 Convertible and Abarth Punto EVO Rumored to Debut in Geneva

Rumors of the pending arrival of the Abarth branded Fiat 500C and Punto Evo have been circulating for months, but Italian car magazine Quattroruote is certain now that both models will have their official world premiere at the Geneva Motor Show in about two weeks time from today.

Read more »

US-Spec Nissan Juke to Debut at 2010 NY Auto Show in March [Plus Video, Presentation Photos and Spec Sheet]

Nissan today revealed that the it's all-new Juke small crossover will appear in North American guise at the 2010 New York Auto Show in late March, following the world premiere of the European-spec model at the Geneva Salon in the beginning of March.

The compact-sized Juke, which was inspired by the Qazana concept car, is scheduled to join the Nissan lineup in the United States later this fall.

We'll have to wait for the NY Show for more details on the NA model, but in Europe, three engines will be available, including a naturally aspirated 1.6-liter petrol with 117HP, a 1.6-liter turbocharged petrol rated at an impressive for its size output of 190HP.

There also a 110HP 1.5-liter turbo diesel, but don't expect to see this engine on this side of the Atlantic any time soon.

Honda Expands Airbag Recall that is Linked to One Death to an Additional 437,763 Vehicles Worldwide, Most in the USA

A defective airbag that has been linked to one death and 11 injuries in the United States over the past few years is still haunting Honda as the company today announced that it is adding 437,763 cars to its existing global safety recall over the airbag inflation problem.

The expanded recall is concentrated mainly in the United States, where nearly 378,758 vehicles are affected, but the latest announcement also covers Japan, Mexico, Taiwan and Australia.

The models added to the list concern certain 2001 and 2002 Honda Accord, Civic, Odyssey, CR-V, 2002 Pilot, 2002 Acura CL and selected 2002 Acura TL vehicles.

According to the automaker, the driver's airbag inflators in these vehicles may deploy with too much pressure causing the inflator casing to rupture and send metal fragments through the airbag cushion material possibly resulting in injury or even fatality to vehicle occupants.

Honda first issued a recall on the matter on less than 4,000 model year 2001 Accord and Civic back in November 2008. After the original recall, the Japanese automaker said that two additional incidents were reported, including one fatality from a vehicle not included in that recall.

That led Honda to expand the recall in July 2009 to include approximately 440,000 model year 2001 and 2002 Accord, Civic and certain 2002 Acura TL vehicles.

Global Recall for 2010 Toyota Prius and Lexus HS250h Over Software Glitch in the Braking System

First of all, let us tell you that the above picture isn't a Carscoop chop, but an official advert for the Lexus HS 250h that's shown here in the U.S. and is supposed to highlight the use of sustainable materials on the car. And now that we've got that out of the way, let's concentrate on Toyota's latest recall.

Following the NHTSA's investigation on owner complaints of momentary loss of braking on the third-generation Prius, Toyota decided to issue a voluntary safety recall on approximately 400,000 vehicles worldwide to update software in the anti-lock brake system (ABS).

Aside from the 2010 Prius, the recall also affects the 2010 Lexus HS 250h and its JDM only sibling, the new Toyota Sai hybrid sedan, as all three models use the same components for the ABS system.

Toyota said that the recall is being taken in response to reports of inconsistent brake feel during slow and steady braking on bumpy or slick road surfaces when the anti-lock braking system (ABS) is actuated.

The company added that the affected cars are safe to drive because pressing hard on the brake pedal when the ABS is activated will stop the vehicle.

Toyota has been criticized by the media and consumers for taking its time to issue this recall as the automaker had introduce a running production change on the new Prius built from January 2010.

The Japanese automaker said that it will begin mailing letters to Prius owners included in this recall next week and HS 250h owners within the next few weeks, to inform them when to bring their vehicles into a dealership.

According to the company, the software update will take approximately 40 minutes using standard test equipment in use at all authorized Toyota service centers.

The latest safety campaign for Toyota comes after a string of other recalls, mainly about the faulty accelerator pedals / killer mats, that concern 8.1 million vehicles worldwide since October of 2009.

Official: Chevrolet Orlando MPV and Camaro Coupe and Convertible Models Coming to Europe in 2011

Chevrolet officially confirmed today that it will launch five new models in Europe next year including an all-new family minivan based on the 2008 Paris show Orlando concept car, the production version of the Aveo RS concept (most likely in hatchback and sedan guises) and, yes, you guessed it, the Camaro in both coupe and convertible body styles that will serve as the firm's 'halo' car.

"After Cruze in 2009 and Spark in 2010, our centenary year 2011 will usher in five more exciting Chevrolets for Europe," said Chevrolet Europe president and managing director Wayne Brannon.

European consumers will get a taste of Chevy's future offerings at the Geneva Salon as the firm will show off the Orlando concept alongside the Camaro and the Aveo RS, which will have its European premiere after its world debut at the North American International Auto Show last month.

Read more »

NHTSA Opens Probe on Chevy Cobalt for Power-Steering Failures - 11 Complaints Allege Problem Caused Crash

No, we didn't spell Toyota's name wrong. It's actually GM that's being investigated in this latest safety case by the National Highway Transportation Safety Administration (NHTSA) which has either stepped up its efforts or -most likely- most of us are paying closer attention to the agency after Toyota's "sticky" woes.

The NHTSA said that it opened an investigation on the Chevrolet Cobalt after 1,132 consumers complained about a sudden loss of electric power steering (EPS) in 2005-2009 Cobalt and 2008-2009 Cobalt SS models.

According to the agency's report, around 10 per cent of the complaints claim that the loss of steering assist resulted in difficultly controlling the vehicle, while 11 support that the sudden increase in steering effort caused by the alleged defect led to a crash, with one consumer alleging an injury.

If -and we stress "if"- the NHTSA's findings call for a fix, it is estimated that approximately 905,000 Cobalts will be affected by the recall.

__________________________________________________________________