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Crunch watch Dec 08: the auto industry in crisis

By Tim Pollard and Simon Stiel Motor Industry 31 December 2008 14:05 Wednesday 31 December 2008• GMAC, GM's finance arm, said it would immediately revise its criteria for providing loans, after the US government bail-out of the General's credit arm. It will now supply credit for anyone with a score of 621 or more on the Fico scale, the scale used to assess Amercian customers' creditworthiness (Financial Times)• The news means that 80% of US consumers would now qualify for a loan from GMAC – which should improve sales in the depressed US market (Detroit News)• Chrysler is being lambasted for taking out full-page adverts in the American national press thanking the nation for supporting its auto industry. But critics point out this is a fresh waste of bail-out resources, as pages in the Wall Street Journal – one of the titles in which the ad ran – reportedly cost up to $264,000.

Nissan recalls nearly one million vehicles for airbag problem

Nissan is recalling nearly one million vehicles for a problem with the airbags. The occupant classification system (OCS) may incorrectly think that the passenger seat is empty when it is occupied by an adult, failing to activate the airbag in a collision. Cars affected include the 2013-2014 Leaf, Altima, Pathfinder and Sentra, as well as the 2013 NV200, 2013 JX35, 2014 QX60 and the 2014 Q50.

MG 3 arrives in the UK next month – price from £8399

All the UK models of the new MG 3 (pictured) will cost under £10k MG revealed the UK MG 3 back in June as their design centre in Birmingham, and it’s not a terrible looking thing – at least from some angle. But whether the relatively low tech and the implication that this is the rebirth of MG Motors will be enough to persuade UK buyers in remains in doubt. What will help is a relatively modest entry point, and the MG3 is starting at £8,399 when it goes on sale in the UK in September.