Buyers of the Chevrolet Volt and Nissan Leaf would be eligible for a $10,000 federal tax credit in some cities under a $10 billion Senate plan to boost electric vehicles.  House and Senate members have released similar plans intended to make electric vehicles  more than niche models.

The House version would spend $6.6 billion, dedicating $800 million to five “deployment communities” to speed 700,000 plug-in vehicles into use and establish recharging networks. A Senate version would spend about $10 billion and grant $250 million to up to 15 communities.

Reported by David Shepardson of  The Detroit News

Nissan North America rolled out a voluntary recall on Tuesday of approximately 134,000 Infiniti G35 models to address a possible passenger air bag harness connector issue. 

The automaker said the campaign involves model-year 2005 to 2006 G35 sedans and model-year 2005 to 2007 G35 coupes. The company insisted that only on a small percentage of the potentially affected vehicles have a harness connector issue that could cause the passenger air bag to shut off.  

Nissan explained a red warning light flashes and the amber front passenger air bag status light illuminates to alert the driver that the passenger air bag is not operating correctly. 

They believe franchise dealers can inspect and repair the passenger air bag harness to correct any problems.

In a related matter that came out on Tuesday, the National Highway Traffic Safety Administration also discussed a recall involving the same Infiniti models. 

The NHSTA Office of Defect Investigations indicated Nissan plans to recall the same Infiniti units from the previously mentioned model years to correct a wire harness connecting the belt tension sensor and occupant tension sensor. Officials believe the control unit under the front passenger seat can experience relative movement, causing wear and oxidation of the terminals.

BY JENS MEINERS: Car and Driver

In the late 1990s, when then-Daimler-Benz CEO Jürgen Schrempp was busy turning DaimlerChrysler into the “global number one,” Nissan was deemed unworthy for cooperation with the juggernaut by most of the Stuttgart company’s board. Now, under somewhat different circumstances, that alliance has materialized. Daimler and Renault-Nissan have agreed on a strategic cooperation, stabilized by the 3.1-percent stakes that Daimler will hold in Renault and in Nissan. Renault and Nissan will each hold 1.55 percent of Daimler.

Both Daimler and the Renault-Nissan conglomerate have been looking for partners for some time. But Daimler’s talks with BMW about cooperation on purchasing and sharing engines collapsed just recently, while Carlos Ghosn’s attempt to force an alliance with GM, fueled by billionaire investor Kirk Kerkorian, met its Waterloo in late 2006.  Daimler and Renault-Nissan have been talking for some time now, and several projects will materialize soon. And they will affect the U.S. market, too. Read the rest of this entry →