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Why didn't GM recall fire-prone Hummers earlier?

As early as 2009, motorists reported fires in the Hummer H3. In a complaint filed that March with the regulatory agency in charge of vehicle safety, one motorist said they leaped into a smoldering vehicle and drove it away from gas pumps moments before it was engulfed in flames. Three months later, another motorist described how a fire spread from behind the glove box and consumed their H3. Dozens of car owners filed similar complaints with the National Highway Traffic Safety Administration in the six years that followed, detailing car fires of varying severity that originated in the HVAC systems of their Hummer H3s. But General Motors didn't issue a recall for any of the affected cars until last week, prompting fresh questions about how the company treats safety concerns in the wake of an ignition-switch flaw that went unaddressed for years and, at latest count, is responsible for killing at least 124 motorists. In recall documents filed with NHTSA last week, GM initially said it knew of three fires associated with the defect. Within hours, the company said it knew of 42 fires associated with the problem and three injuries sustained by vehicle occupants. A company spokesperson attributed the inconsistency to a "misstated" number in the original documents and that the higher number comes from NHTSA complaints, reports to GM and TREAD data. Beyond that discrepancy, the documents show General Motors, which has touted a revitalized attitude toward safety concerns since the ignition-switch recalls, did nothing upon determining there was a problem with the H3s. Prompted by two complaints the company received in September 2014, General Motors says it launched an internal investigation related to melting blowers in the HVAC system on December 8, 2014. In that investigation, the company says it confirmed a problem existed, finding that "mismatched electrical conductivity could result in overheating and melting of the blower motor connector module." But even with that conclusion, the company opted to close its internal investigation on April 29, 2015, without taking any action. It wasn't until NHTSA officials met with GM representatives in a meeting on June 18, 2015, that General Motors was prompted to reconsider.

Humvees are now exported to China by Bob Lutz and Henrik Fisker's company

At Auto Shanghai, a company called Humvee Export showed off its Humvee C-Series. It's not a new design, of course, as the High Mobility Multipurpose Wheeled Vehicle (HMMWV) has been used by the American military for decades, and versions made their way into the hands of civilians through multiple means, including via General Motors as the Hummer H1. GM discontinued the H1 in 2006, and shuttered the Hummer brand in 2010. Now, Humvee Export is building the C-Series in the US, with help from none other than Bob Lutz and VLF Automotive, to sell in China, according to Car & Driver. VLF, if you recall, is the company founded by Gilbert Villarreal, Bob Lutz, and Henrik Fisker. So far, VLF has launched the Destino, using the Fisker Karma body with a supercharged LS9 V8 engine from GM, as well as the Force 1, which is essentially a Viper-based, V10-powered supercar. Humvee Export President John Costin tells C&D that his company has contracted VLF to build its new C-Series in St. Clair, Michigan. Among Humvee Export's founders is Paul Chedid, who was once the distributor for the Hummer H1 in France. AM General, which builds the HMMWV for US and other militaries, sells C-Series kits (customers need to supply their own powertrain). VLF buys kits and finishes the build, and Humvee Export works with importers around the world to sell finished versions of the C-Series, complete with powertrain, with China being the latest market. The US is out of luck, though, as it can't be certified as a replica of a 25-year-old vehicle, thus exempting it from EPA and crash test certification under the Low Volume Motor Vehicle Manufacturers Act. Related Video:

Luxury carmakers make way more than just cars

Whether it's as simple as Ferrari offering model cars or as opulent as Bugatti with an $84,000-belt buckle, practically every automaker does more than just sell cars to keep their brands visible. The profits from these ventures might not be enough to keep the lights on, but in such a competitive industry, any extra cash is welcome. For the automakers that get licensing just right, there is a ton of profit to be made. According to a recent story examining the practice by The New York Times, Ferrari makes around $2.6 billion from merchandising each year, and General Motors tops that at $3.5 billion. Beyond just a profit center, merchandising can also protect an automaker's name. Take Hummer for example. The GM division shut down years ago, but it has continued to produce licensed cologne on sale around the world. "Because we still have the active fragrance, we're protecting the brand if we ever decide to bring it back," Gene Reamer, a GM licensing senior manager, told the Times. The whole piece is a fascinating look into this often ignored, but quite lucrative facet of the auto business. Read it for yourself, here. Related Video: News Source: The New York TimesImage Credit: Luca Bruno / AP Photo Design/Style Earnings/Financials Marketing/Advertising Read This Ferrari GM Hummer branding