Auto Industry, Cars | featured news

An estimated 250,000 vehicles were flooded, compounding an already-tight used-car market.

U.S. retail sales rose in September as Americans bought more cars and gasoline, while a gauge of consumer spending pointed to stronger-than-expected economic growth in the third quarter.

General Motors Co. announced on Friday a big recall of Chevrolet, Pontiac and Saturn mid-size sedans to fix a transmission problem that could cause the cars to roll away after the driver has left the vehicle.

Honda wants to silence its critics when it rolls out the new Accord this week. The automaker, chastened for cheapening the Civic compact earlier this year, says that won't happen with the midsize Accord.

Across the country, banks and other lenders are still being stingy in providing credit to ordinary consumers. Only the most financially stable of Americans can secure mortgages. Small businesses are having trouble getting loans. Credit card access is restricted.

BMW and Volkswagen's Audi brand said their monthly sales rose to records in May, putting the two best-selling luxury-car makers on course for another bumper year.

A few years ago, rising gasoline prices pretty much destroyed the market for the big trucks, but they have become popular again.

Despite an unexpected slowdown in sales earlier this year, the Chinese auto market is expected to hit an industry-record 20 million vehicles this year – prompting manufacturers to announce billions of dollars in new factory investments designed to keep up with booming demand.

After several years of heavily discounting their products, automakers are finding themselves back in the driver’s seat – pushing prices to record levels.

US company Terrafugia has put on display a prototype car that is licensed to fly as well as drive, at the New York International Auto Show.