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Infiniti recalls Q50 sedans over steer-by-wire system

Infiniti is recalling a number of its new 2014 Q50 sedans over a fault in its steer-by-wire system. The recall concerns Q50 sedans equipped with Direct Adaptive Steering that have received a software version which may disable the power steering software when the engine compartment reaches freezing temperatures. There's a mechanical backup system to prevent steering failure that kicks in via a clutch if the Direct Adaptive Steering were to fail, but the NHTSA notes that this backup may not engage in time if the Direct Adaptive Steering fails, increasing the chance of a crash.

Obama calls for shared sacrifice in auto bailout

President-elect Barack Obama says he wants to keep tough conditions on automakers that get federal loans. The companies must develop sustainable business models because it would be unacceptable "to keep them on their lifeline through taxpayer dollars in perpetuity," Obama told The Washington Post. Obama said industry restructuring will require "everybody, from labor to management to creditors to shareholders, giving something up." His comments contradict suggestions that the new administration will relax federal loan agreements reached last month with General Motors and Chrysler LLC, possibly with softer demands on the UAW.

Ford Fiesta earns top ranking from Insurance Institute for Highway Safety

The 2011 Ford Fiesta earned a Top Safety Pick from the Insurance Institute for Highway Safety (IIHS). It is the first minicar to earn the pick since the introduction of a new roof strength test. The award applies to vehicles built after July 2010.