Scotia economics reports that the battered and beaten auto industry is finally showing positive gains after months of terrible declines not seen for many years.

The largest recovery is coming from international markets, such as China that posted the biggest gain for developing countries and Germany posting the biggest gain as far as mature countries go.

Second quarter global sales reached 48 million units, up from an 8 year low of 43 million units for the first 3 months of 2008.  The report says the rebound will soon reach the North American market with much help from the cash for clunkers program that allows buyers to trade in older, less fuel efficient vehicles for newer ones while receiving $3500-$4500 in US Government vouchers.

“With sales on the upswing and industry-wide inventories back down to normal levels, the re-start of idled auto assembly plants will boost third-quarter economic activity across North America by roughly two percentage points. This represents a sharp reversal from the past nine months, when the economic downturn was intensified by significant auto industry cutbacks.”

One death and an array of injuries have forced Honda to recall over 440,000 Accords, Civics and Acura TL’s because of driver side air bags that can send metal shards into the driver upon deployment.

The recall covers certain 2001 and 2002 Accords, 2001 Civics and 2002 and 2003 Acura TL sedans.   300,000 other Accords were recalled earlier this week due to a similarly defective airbag system as well.

A rep from Honda stated  “The problem isn’t actually new, but rather expands a recall announced late last year.”

Owners of affected Honda vehicles should contact their local dealers immediately.

A key component to Audi increasing their lineup from 23 cars to 40 will be the new A7 four door coupe that will be built late next year and sold as a 2011 model.

The A7 will be powered by a wide array of engines ranging from diesel electric hybrids all the way to the twin turbo 600HP 5.0L V10 that will power the RS7 model. Transmissions will include 6-speed manuals, 8-speed automatics and a reported 7-speed DSG.

The rendering above hints that the A7 will be a strong competitor against the Mercedes CLS and Porsche Panamera 4-door coupes.

You can expect to see the A7 and its variants on North American shores in early 2011.

How do you achieve 30+ MPG and 236 lb-ft of torque @ 1400 RPM from a 1.8L 4 cylinder?  BOOST.

Besting even Chryslers 3.8L V6 for torque and MPG is the Fiat supplied 1.8L 4 cylinder that comes equipped with direct gas injection and smart turbocharging.

BorgWarner out of Auburn Hills Michigan has used innovative welding technology to affix the cast manifold directly to the turbine housing, allowing each to be optimized separately.   The newly designed turbo ends up more elaborate than any other turbocharger currently on the market all while producing class leading HP and fuel economy.

The use of smaller engines that utilize direct injection and elaborate turbocharging is becoming mainstream with Ford recently introducing their “Eco Boost” series of engines among many European auto makers that have been doing it for years.

Fiat-run-Chrysler has stated that they will be supplying technology and equipment to help Chrysler meet the tightened 2016 EPA fuel mileage regulations.

Unlike two certain auto companies that recently thwarted a Chapter 7 death knell via emergency Gov’t loans, some aftermarket auto businesses were less fortunate during the height of the recession.  Crane Cams, an industry leader in performance camshaft R&D since 1953 succumbed to the banks last February and closed their doors for what many thought would be forever.

During the Chapter 7 liquidation process companies are usually sliced, diced and minced by an auction process but Crane was saved by S&S Cycle that made a bid for the whole company, and won.

S&S, best known for their expertise in V-Twin motorcycle engine performance has recently opened Crane in a new facility and has hired back most of the old staff.

Crane Product Manager Terry Johnson, a 12-year vet, said, “We have already ramped up production of the motorcycle valve train and ignition products, as well as the automotive ignition line. Many of the top NASCAR teams use Crane ignition products, so maintaining continuity for these customers is top priority.”

Production of automotive cam and valve train equipment will be next up. According to Chase Knight a 40 year Crane veteran, “While we know the market is very hungry for our cam and valve train product lines, we want to make sure the parts we ship exceed the quality and performance expectations of our customers.”