1994 Chevrolet Corvette on 2040-cars

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Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

NHTSA could add 1M cars to GM recall

The Detroit Free Press is reporting that the National Highway Traffic Safety Administration may expand a recall campaign for faulty brake lamps. The agency is currently looking into complaints that certain 2004-2011 Chevrolet Malibu models as well as some 2007-2009 Saturn Aura sedans may have brake lights that do not illuminate when the driver presses the pedal. Alternatively, the lamps may also illuminate without input from the driver. General Motors recalled 8,000 Pontiac G6 models from the 2005 model year for the same problem, and NHTSA is currently investigating whether to add 550,000 more G6 models built between 2005 and 2009 to the list for the same issue.
In addition, investigators are currently examining 97 complaints from Malibu and Aura owners with the same trouble. If NHTSA adds those models to the recall campaign, more than one million units could be covered. GM, meanwhile, says there have been no accidents or injuries as a result of the problem.

Why Cadillac thinks it needs to succeed in Europe to sell cars elsewhere

Ward's Auto has taken an interesting look at the renewed focus General Motors is showing towards Cadillac in Europe. Susan Docherty, president and managing director of Chevrolet and Cadillac in Europe (pictured), says in order for the luxury brand to thrive in China, it first needs to succeed in the old country. The reason? Chinese buyers look to Europe for cues as to what's deemed worthy of the term "luxury." There are hurdles to the plan, however. In addition to the fact that the EU is flooded with high-end nameplates, GM doesn't necessarily have the distribution network in place to put buyers behind the wheel.
Combine that with persistent economic woes and Cadillac's checkered past marred by a lack of diesel engine options and a bankrupt distributor, and the road ahead for the brand looks like less of an uphill climb and more like a straight-up cliff face. But Docherty is optimistic and says she has a plan for the brand. We recommend heading over to Ward's for a closer look at the full read.