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Inside this issue
GM Expands Ignition Recall, Takes $1.3B Charge, Suspends 2 Engineers
Toyota to Introduce 14 New Engines in 2 Years
Ally Financial IPO Spells Relief for Taxpayers, 1,200 Detroit Workers
ADP Dealer Services to Spin-Off and Go Public
China Auto Sales Rise 7.9% as Panic Purchases Spur Demand
New York Auto Show Preview: The Best Cars of 2014
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
GM Expands Ignition Recall, Takes $1.3B Charge, Suspends 2 Engineers

The crisis at General Motors grew deeper Thursday with the paid suspension of two engineers, an expanded fix for the defective ignition systems and a warning to investors the whole mess could result in the first quarter of red ink since the immediate aftermath of its 2009 bankruptcy. GM on Thursday announced an expanded recall for the 2.6 million small cars that already were found to have a defective ignition switch. The company will also replace the ignition cylinder lock. It all adds up to a price that GM says will lower first-quarter earnings by $1.3 billion. The news that the cars need more repair work came on the same day GM CEO Mary Barra suspended engineers Ray DeGiorgio and Gary Altman with pay as part of a preliminary investigation into the delayed recall of older-model cars. Their roles were disclosed in congressional hearings last week.
Source: Detroit Free Press

Editor's note: For more information on the GM recall, go to www.gmignitionupdate.com or www.safercar.gov.
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Toyota to Introduce 14 New Engines in 2 Years

New engines part of efforts to make vehicles more fuel-efficient

Toyota Motor Corp., the world's largest seller of hybrid gasoline-electric cars, said it plans to roll out 14 new engines this and next year that would be 10% more fuel-efficient on average than the company's current engines. The powertrains would be installed in 30% of the vehicles that the car maker sells globally in 2016, it said. Big auto makers are investing in smaller engines and new transmissions to meet coming fuel-economy and emissions standards.
Source: The Wall Street Journal
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Ally Financial IPO Spells Relief for Taxpayers, 1,200 Detroit Workers

In what Ally Financial CEO Michael Carpenter called “a great day for the American taxpayer,” the auto lender bailed out during the financial crisis of 2008 re-merged Thursday as a publicly traded stock, with the U.S. Treasury selling 95 million shares for $2.38 billion. The federal government, which had sunk $17.2 billion into the bailout of what was known as GMAC, has now recouped slightly more than that — and still owns 17.1% of Ally. “My guess is that before the end of the year we won't have any government ownership anymore. That will be great for us and have hugely positive business implications,” Carpenter said in a telephone interview with the Free Press.
Source: Detroit Free Press
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ADP Dealer Services to Spin-Off and Go Public

ADP Dealer Services, a dealer software giant, is poised to become an independent public company, according to a statement today by parent company ADP. ADP Inc.'s board of directors has approved the spinoff, the statement said. The announcement is the latest in a series of merger and capital-raising activities in the auto retailing sector. The spinoff will allow ADP Dealer Services to focus solely on its business and continue its growth, said Carlos Rodriguez, CEO of parent ADP.
Source: Automotive News
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China Auto Sales Rise 7.9% as Panic Purchases Spur Demand

Passenger-vehicle sales in China gained 7.9 percent last month as consumers purchased cars on concerns that more cities may start limiting new license plates. Wholesale deliveries of cars, multipurpose and sport utility vehicles climbed to 1.71 million units in March, the state-backed China Association of Automobile Manufacturers said. That compares with the 1.7 million units median estimate of three analysts surveyed by Bloomberg News.
Source: Bloomberg
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New York Auto Show Preview: The Best Cars of 2014

More than a million people will attend the annual New York show at the Javits Convention Center this year, there to catch a glimpse of the latest and greatest from Audi , Cadillac, Jaguar, Land Rover, Lexus, Mercedes-Benz , Porsche and Rolls-Royce, among others. As in Los Angeles and Detroit earlier this year, they can expect to see repeated discussions about sustainability played out in the cars themselves. But that doesn't automatically mean electric- and hybrid-powered joints. It also means tuning smaller engines to produce more horsepower and better efficiency ratings, like Bentley has done with the new Flying Spur V8, or using clean-burning diesel technology to eke out more savings on gasoline like plenty of vehicles at Audi and Volkswagen.
Source: Forbes

Editor's note: The 2014 NADA/J.D. Power Automotive Forum will be held in New York City Tuesday, April 15, preceding press days at the New York auto show. To view the complete agenda and to register, click here.
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Quotable

“I think Mary [Barra, GM CEO] is handling the recall in a very thoughtful way. We don’t see any negative effect in terms of the numbers. I think the dealers and the company are getting suited up to go tell our story in the marketplace.”

   
-- Ally Financial CEO Michael Carpenter, commenting on the impact of the GM recall on Ally's business, Detroit Free Press, April 10  

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