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VW recalls 220,000 Atlases, Atlas Cross Sports for airbag defect [Updated]

[Update: Audi of America has confirmed that no U.S. models are among the recall population for plug-in hybrid fire issue.] Volkswagen has issued yet another recall for its Atlas SUV, this time for side airbags that may not deploy correctly in an accident due to a problematic connection in one of the vehicle's wiring harnesses. The campaign covers 222,892 Atlas and Atlas Cross Sport models built for the 2019-2023 model years.  The issue stems from a connection with the wiring harness that runs from the A-pillar into the door. VW says that harnesses produced by one of its suppliers were not built with additional measures to prevent movement at the connection point. Small movements can cause abrasion of the metal contacts which could lead to a whole host of electronic misadventures, including the potential for airbag deployment to be delayed in a crash.  "Micro-movement of the wire harness (terminal A-Pillar to front door) can result in damage to the wire terminal surface. Damage to the surface can [result] in fretting corrosion which may cause sporadic interruption in the electrical connection to the components of the front door," VW said in its defect notice. "The airbag warning light may illuminate if a malfunction is detected. Other symptoms of a sporadic interruption of the affected electrical connection can be: inadvertent rolling down windows, inadvertent park brake engagement at low speeds (below approx. 3km/h or 1.8mph), warning regarding faulty door sensor," VW said.  Not every model built within the range defined above is subject to the recall; terminals from other suppliers were manufactured with the necessary safeguards in place. If you own a 2019-2023 Atlas or Atlas Cross Sport, keep your eyes peeled for a notification from VW regarding the campaign, likely some time in early-mid May.  PHEV problems Across the Atlantic, the VW Group mothership confirmed that it will recall more than 100,000 plug-in hybrid models worldwide to address a fire risk. The recall was launched in response to 16 reported incidents of fires stemming from insufficient insulation of the PHEV battery pack that allows the engine cover to make contact if it is not completely secure. If that happens, the heat from the battery can ignite the engine cover. The recall will cover PHEVs build by VW, Audi, Seat and Skoda, Reuters reports, including the VW Passat, Golf, Tiguan and Arteon — plug-in variants of which are not sold in the United States.

Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

Jay Leno brings a rotary-powered VW Beetle to the garage

It takes something really unique or inventive to pique Jay Leno's interest. His show, Jay Leno's Garage, has featured everything from concours-worthy classics to completely custom, home-built machinery. How do you get Leno to feature one of more than 20 million Beetles on his program? Stick a turbocharged rotary engine under the hood. The Beetle's owner, Mario Markakis, swapped the car's stock flat four-cylinder for the Wankel engine from a 1990 Mazda RX-7 Series 5 Turbo. The engine's 250 horsepower are fed through a reinforced version of the Beetle's stock four-speed transmission. That's about five times the original engine's output. It works well, with the car putting down some impressive times at the drag strip. Markakis did most of the work to the Beetle in his garage. In addition to the engine swap, he's modified the car's brakes, suspension, and interior. Check out the video to hear all the details of this custom Wankel-powered Volkswagen. Related Video: Celebrities TV/Movies Mazda Volkswagen Classics Videos Jay Lenos Garage rotary mazda rx-7