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BMW Recalls 1.6 Million 3 Series Cars For Air Bag Problem

DETROIT (AP) - BMW is expanding a recall of its most popular models to fix an air bag problem that is hitting much of the global auto industry. The German automaker says it will recall 1.6 million 3 Series cars from model years 2000 to 2006 across the world, including 574,000 in the U.S. The company said Wednesday that it's a precaution because other automakers using similar systems have reported problems. Air bag inflators in systems made by Takata Corp. can rupture. If that happens, the bags might not work properly, and shards could fly out and cause injury or death. The problem is responsible for millions of recalled vehicles during the past few years made by manufacturers such as Chrysler, Ford, Honda, Mazda, Nissan and Toyota. Here's a look at the long history associated with this problem, that affects millions of cars. BMW said it has no reports of problems in its vehicles. Dealers will replace the passenger-side front air bags. The new recall excludes 42,000 BMWs recalled in May 2013 for the same problem. The company says it is recalling all vehicles equipped with potentially faulty air bag systems regardless of where they were sold. In June, the U.S. National Highway Traffic Safety Administration began investigating air bags made by Takata, a Tokyo-based supplier of seat belts, air bags, steering wheels and other auto parts. The agency said it received six reports of air bags rupturing in Florida and Puerto Rico. Three people were injured in those cases. It had estimated 1.1 million vehicles in the U.S. could be affected, but the total is likely to climb. The government says it wanted to act quickly in warm states while it continues to investigate the issue. "Based on the limited data available at this time, NHTSA supports efforts by automakers to address the immediate risk in areas that have consistently hot, humid conditions over extended periods of time," the agency said in a statement. Takata said in a statement Tuesday that it is supporting the NHTSA investigation and its customers with technical analysis and replacement parts. "Our objective is to do all that is possible to ensure the safety and well-being of the public," the statement said. Related Gallery AOL Autos Test Drive: 2014 BMW 428i

The next-generation wearable will be your car

This year's CES has had a heavy emphasis on the class of device known as the "wearable" – think about the Apple Watch, or Fitbit, if that's helpful. These devices usually piggyback off of a smartphone's hardware or some other data connection and utilize various onboard sensors and feedback devices to interact with the wearer. In the case of the Fitbit, it's health tracking through sensors that monitor your pulse and movement; for the Apple Watch and similar devices, it's all that and some more. Manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality. As evidenced by Volvo's newly announced tie-up with the Microsoft Band 2 fitness tracking wearable, car manufacturers are starting to explore how wearable devices will help drivers. The On Call app brings voice commands, spoken into the Band 2, into the mix. It'll allow you to pass an address from your smartphone's agenda right to your Volvo's nav system, or to preheat your car. Eventually, Volvo would like your car to learn things about your routines, and communicate back to you – or even, improvise to help you wake up earlier to avoid that traffic that might make you late. Do you need to buy a device, like the $249 Band 2, and always wear it to have these sorts of interactions with your car? Despite the emphasis on wearables, CES 2016 has also given us a glimmer of a vehicle future that cuts out the wearable middleman entirely. Take Audi's new Fit Driver project. The goal is to reduce driver stress levels, prevent driver fatigue, and provide a relaxing interior environment by adjusting cabin elements like seat massage, climate control, and even the interior lighting. While it focuses on a wearable device to monitor heart rate and skin temperature, the Audi itself will use on-board sensors to examine driving style and breathing rate as well as external conditions – the weather, traffic, that sort of thing. Could the seats measure skin temperature? Could the seatbelt measure heart rate? Seems like Audi might not need the wearable at all – the car's already doing most of the work. Whether there's a device on a driver's wrist or not, manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality.

Automakers are getting nervous about Europe's economy

Carmakers BMW and Stellantis on Thursday expressed concerns about Europe's economic outlook, joining a chorus of retailers and others in warning of waning consumer confidence on the continent and hitting their shares. "Obviously the macro(-economic situation) in Europe is more challenging, which gives me pause, personally," Stellantis chief financial officer Richard Palmer said on a conference call with analysts. "If there was anywhere where I was more concerned, it would be Europe than anywhere else really based on the macro." This follows a dire assessment of consumer sentiment in Europe from the likes of consumer goods company Unilever and news of lower spending by Europeans from Amazon. Like other major auto companies, Stellantis and BMW have been hit by supply chain disruptions stemming from the global coronavirus pandemic that have curtailed car production. They have also benefited from strong consumer demand amid low vehicle supply, allowing them to raise prices and keep them high even as the semiconductor shortage shows signs of easing. BMW posted a 35.3% jump in third-quarter revenue despite a small drop in vehicle sales. Stellantis said its revenue rose 29% on the back of a 13% increase in vehicle sales as more semiconductors became available. The concern among analysts has been that demand may falter, just as carmakers get their hands on the supplies they need, undermining pricing and hurting profits. But this week Ferrari said it was confident about its prospects for this year and 2023 as demand for its luxury cars, as well its pricing power, remained strong. Both BMW and Stellantis said on Thursday they had vehicle order books that stretched into the second quarter of 2023. But BMW's chief financial officer Nicolas Peter said high inflation and rising interest rates could hit buyers' wallets. "This is causing conditions for consumers to deteriorate, which will affect their behaviour in the coming months," he said. "We therefore continue to expect our higher-than-average order books to normalise, especially in Europe." He added customers had been unhappy about the wait for new cars, so "a slight reduction (in orders) would not be negative." Palmer said Stellantis was "ready for any softness in demand" but in the short term had been affected by a shortage of drivers to deliver its cars to dealers. "At the moment, we can't build enough cars," he said.