Auto news highlights – June 18, 2009

Chinese automaker to buy Volvo
Ford has been right-sizing its corporate portfolio since long before it was fashionable. Aston Martin, Jaguar, and Land Rover have all found new international owners. Now, there are reports that Chinese automaker Geely has signed a deal to purchase Volvo. No formal announcement has been made. [Autocar, The Car Connection]

New auto company to use old GM plant
Backed by investor T. Boone Pickens, V-Vehicle Co. will assemble cars at a former General Motors plant in Louisiana. The project is expected to create over 1,400 direct jobs at an average annual salary of nearly $40,000, plus benefits. VVC will receive a state incentive package worth approximately $67 million. Pickens has been a vocal advocate of wind power and natural gas, suggesting these may be alternative-fueled cars. [Automotive News, Louisiana Economic Development]

Pontiac Vibe production ends in August
The Vibe had been expected to live on as the sole survivor after GM cuts off the Pontiac division, but the company today announced production would cease this August. GM is in talks with Toyota for other uses for the New United Motor Manufacturing Incorporated (NUMMI) facility jointly operated in Fremont, California. The Vibe is the only Pontiac vehicle that is Consumer Reports recommended. [GM]

Chrysler to resume car production
Chrysler had idled its plants as it entered bankruptcy proceedings, immediately reducing costs and vehicle inventory. Now, the new, leaner Chrysler is firing up the factories. First to start was the Conner Avenue Assembly Plant that builds the Dodge Viper, beginning on June 15. The week of June 29th, seven production factories will begin churning out higher-volume Chrysler, Dodge, and Jeep models. (Read: "What the post-bankruptcy Chrysler means to you") [CNN, Chrysler]

Cash for clunkers moves closer to law
The “cash for clunkers” program narrowly escaped Senate today, remaining as part of the approved $106 billion war-funding bill. The House approved the bill earlier in the week, and it is now awaiting President Obama’s signature. [AP, Wall Street Journal, Washington Post]

Turn signals: amber vs. red
A new report from the National Highway Traffic Safety Administration [NHTSA] has found that amber rear turn signals are 5.3 percent more effective than red signals in reducing crashes. The real-world study looked at rear-end crashes where the front vehicle was in the act of turning, merging, changing lanes, or pulling in or out of a parking lot.  [NHTSA]