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Chrysler to build ZF's eight-speed transmission in Indiana

The Chrysler Group plans to spend $300 million to build a new eight-speed automatic transmission licensed from ZF Group, a transmission maker headquartered in Friedrichshafen, Germany. The investment will pay for installation of special tooling and equipment at Chrysler's Transmission Plant 1 and Kokomo Casting Plant in Indiana and help retain 1,200 jobs there, Chrysler said Wednesday. Production will start in 2013.

GM recalls nearly 15,000 Buick LaCrosse, Chevrolet Impala sedans

General Motors is recalling about 15,000 vehicles to fix two problems--reprogramming the electronic stability control in some 2012 Buick LaCrosse cars and rerouting the power-steering hose on the 2012 Chevrolet Impala. The automaker is recalling 10,344 Impalas to reroute the upper power-steering house that could fail because of heat from the catalytic converter. As a result, the hose sprays fluid over the catalytic converter, causing smoke and potential fire.

Lotus CEO Dany Bahar on the crisis at Lotus Cars

Lotus chief executive Dany Bahar has laid bare the business position at Lotus Cars since the takeover of parent company Proton by Malaysia's DRB-Hicom. Norfolk's sports car maker has been buffeted by rumours of financial crisis and looming collapse since development was frozen by the new owners (click here for our coverage of the crisis at Lotus. CAR scored an interview with Bahar at the Hethel headquarters yesterday afternoon. He was abroad at the time of last week's media maelstrom, when rumours and slurs flew around about the state of Lotus's finances.