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Weekly Recap: Automakers rethink the definition of luxury

Variety is the spice of life, but it's becoming a prerequisite for luxury carmakers in the ultra-competitive US market. The Detroit Auto Show was strong evidence of this reality. It's not enough to offer attractive and well-appointed cars and SUVs anymore. Luxury brands that want to be competitive need to invest in everything from high-powered supercars to clever hybrids. To be relevant, you need to be green and mean – and everything in between. As General Motors product chief Mark Reuss said after the reveal of the 640-horsepower Cadillac CTS-V: "We are not leaving anything on the table." He was speaking for Cadillac, but he might as well have been speaking for the luxury car market. The CTS-V debuted in Detroit about an hour after Lexus surprised showgoers with the reveal of the RC F GT3 race car and then announced ambitious plans to return to competitive racing. That almost overshadowed the fact Lexus had just revealed another potent addition to its growing F line, the 467-hp GS F. View 20 Photos But for luxury brands, it's not just about maximum horsepower for well-heeled enthusiasts or decadent amenities for the Grey Poupon set. Strong competition from all corners has forced automakers to refine and expand their lineups in ways unforeseen even a few years ago. Case in point: Mercedes-Benz finally has an answer to the BMW X6, rolling out the GLE coupe in Detroit. The X6, which blends coupe-like styling cues with some of the functionality of an SUV, debuted in 2008. Back then it was a punchline, but seven years and more than 260,000 sales later, the X6's success has compelled Benz to respond. Mercedes – one of the strongest proponents of diesel technology – also debuted the C350 plug-in hybrid sedan, which promises a range of 20 miles on electricity, though fuel economy figures were not announced. The car pairs Mercedes' well-received 208-hp turbocharged four-cylinder with an electric motor for total output of 275 hp and 443 pound-feet of torque. Meanwhile, Infiniti will add the Q30 hatchback to its lineup by the end of the year, new president Roland Kruger reiterated in Detroit. It's expected to be joined by a crossover variant, and the additions will help strengthen Infiniti in the United States and abroad. "While we're expanding our product line, we're also expanding our market reach," he said. That's something echoed by Jaguar executives, who are preparing to launch the brand's first crossover, the F-Pace, in 2016.

GM recalls Cadillac ATS and Chevy Impala for separate issues

The National Highway Traffic Safety Administration added two recalls from General Motors in the government organization's daily update of safety campaigns. Both were for failing to meet Federal Motor Vehicle Safety Standards but for completely separate reasons. The larger recall covers 58,698 units of the 2013-2015 Cadillac ATS, but it doesn't really carry huge safety concerns. In vehicles produced between April 25, 2012, and February 9, 2015, the controls for the tilt and slide of the moonroof are not recessed enough, as required by federal law. According to NHTSA, it's possible that someone could inadvertently activate the auto-close for the roof panel, which the agency claims increases "the risk of personal injury." Dealers will install a new trim plate that will add the necessary clearance. The other campaign covers 1,177 examples of the 2014 Chevrolet Impala from between November 15, 2012, and May 27, 2014. However, this is actually a repeat of a previous recall on the Chevy and the Cadillac XTS from 2014. The affected Impalas here "were remedied incorrectly" under the earlier campaign, according to NHTSA. On these sedans, it's possible the electronic parking brake might not fully disengage and still remain in some contact with the rotor, which is in violation of federal rules. The fault can cause excessive heat from the brakes that could potentially lead to a fire, according to NHTSA. To fix the problem, dealers will reprogram the electronic parking brake control module. Show full PR text RECALL Subject : Inadvertent Press of Roof Panel Switch/FMVSS 118 Report Receipt Date: FEB 24, 2015 NHTSA Campaign Number: 15V106000 Component(s): VISIBILITY Potential Number of Units Affected: 58,698 All Products Associated with this Recall Vehicle Make Model Model Year(s) CADILLAC ATS 2013-2015 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2013-2015 Cadillac ATS vehicles manufactured April 25, 2012, to February 9, 2015. In the affected vehicles, the power-operated roof panels auto-close when the non-recessed "Slide" or "Tilt" switches are pressed. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standards (FMVSS) No.

VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.