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NHTSA upgrades probe of 1.2 million Toyota Corollas, Matrixes

Federal regulators have upgraded an investigation of as many as 1.2 million Toyota Corollas for possible engine stalling. Consumers have filed 1,101 complaints about Corollas and Corolla Matrixes for 2005-07 models, the National Highway Traffic Safety Administration said in a filing on its Website. “The engine can stall at any speed without warning and not restart,” NHTSA said in describing the problem.

Kia investigates steering issue on the Soul

Kia Motors America and its suppliers are reviewing their manufacturing processes to track down what caused one driver to lose all steering ability in a two-month-old 2010 Kia Soul. The National Highway Traffic Safety Administration said Monday it had opened a preliminary investigation into the issue after it received one complaint from an owner of an almost-new Kia Soul who said the steering shaft decoupled from the steering wheel and then fell onto the driver's side floor in a way that interfered with the brake pedal. The investigation could affect more than 51,000 Kia Soul vehicles, NHTSA said.

Ford reaches agreement to sell Volvo to Geely for $1.8 billion

Ford has reached an agreement to sell its Swedish brand Volvo to Chinese carmaker Geely for about $1.8 billion in a multinational sale expected to close in the third quarter of this year. The pending agreement was announced onSunday morning, and Ford will continue to supply powertrains, stamping and other parts to Volvo after the sale. If it closes, the landmark deal delivers the premium Volvo brand--long a benchmark for automotive safety--to a Chinese firm that has ambitious plans for growth.