As its recall fiasco continues, Toyota Motor Corp. moved on Monday to dispel persistent rumors that the issues which have plagued the accelerators in their cars were caused by electrical issues. According to Reuters, Toyota announced their own review of an independent study showed no indication that unintended acceleration problems which have been linked to at least five deaths in the United States were caused by electrical problems.

This flies against what David Gilbert, an auto engineering expert at Southern Illinois University Carbondale, told Congress during hearings on the Toyota recall in February. Gilbert said that he was able to simulate a flaw in Toyota’s accelerator controls that allowed the vehicle to surge forward without a fault code being generated for an onboard computer Toyota has designed as a safeguard.

However, Toyota claims that independent analysis by a Stanford University professor and engineering consulting firm Exponent had failed to replicate Gilbert’s claims. Instead, Toyota is saying that Gilbert “rewired” the acceleration system in order to generate his results.

The reports that the 80th Geneva Auto Show, one of the largest automotive shows in Europe, opened its doors to the public on Thursday, giving many Europeans first looks at innovative cars from manufacturers in North America and Asia.

One of the most popular cars at the show was the Nissan Juke. Designed as a faux off-road vehicle, the crossover is an attempt by the company to take MINI’s crown as the coolest in small cars. Other cars drawing crowds during the first day of the show were Alfa Romeo’s Giulietta hatchback and the Volvo S60 sedan.

As expected, Toyota Motor Corp.’s top executives faced a tough grilling from lawmakers during an appearance before a Congressional hearing yesterday into allegations that the company covered up potential safety defects and didn’t move quickly enough to fix problems.

As reported by the Detroit Free Press, Toyota CEO Akio Toyoda and Yoshimi Inaba, president and of Toyota Motor North America appeared before the U.S. House Committee on Oversight and Government Reform on Capitol Hill. Toyoda spent much of the three-hour hearing apologizing for errors that were made, saying the company took “full responsibility” for past mistakes and vowing to do a better job in the future.

However, the apology wasn’t enough for many lawmakers who expressed displeasure that neither Toyoda or Inaba explained why Toyota took years to address thousands of complaints about sudden acceleration problems with its vehicles.

“I am not satisfied with your testimony,” said Rep. Marcy Kaptur, D-Ohio. “I do not feel it reflects sufficient remorse for those who have died, and I do not think you have accurately reflected the large number of complaints that have been filed for more than a decade.”

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BMW is hardly a name that comes to mind when you think of economy and eco-friendly cars. However, that might be changing soon as AutoWeek reports that the car manufacturer will be devoting a portion of its plant in Leipzig, Germany to producing a new line of electric cars. In addition, parts for the new line of Megacity Vehicles will be produced at BMW factories in Wackersdorf and Landshut, Germany.

“The BMW Group will build the car of the future in Leipzig with high-tech innovations from Bavaria,” BMW CEO Norbert Reithofer said in a statement. “The main reasons behind this decision are the qualities that Germany has to offer: we have a tried-and-tested production network here and high levels of education and outstanding competencies at our disposal.”

Wired Magazine reports that the new Megacity Vehicles will be based on BMW’s classic Isetta design and will meet California’s zero emissions vehicle mandate. According to published reports, the first Megacity could roll off of the assembly line in Leipzig in 2013.

The problems keep piling up for Toyota. As the company struggles to do damage control from the recall of more than six million cars due to problems with stuck gas pedals, it today announced that it is also recalling more than 400,000 hybrid vehicles - including its popular Prius - to fix problems with the brake mechanism.

Many drivers have complained about delays when pressing their brakes, especially in cold weather or bumpy conditions. Toyota will fix the problem by installing new antilock brake software into the car’s onboard computer. The recall will impact 2010 Prius owners in the United States, along with lines such as the Lexus HS250h sedan and the Sai, which is only sold in Japan.

The Prius recall might not be the last obstacle Toyota has to deal with. Automotive News is reporting that the National Highway Transportation Safety Administration is reviewing claims of power steering failures with 2009 and 2010 Corollas. According to the publication, the NHTSA has received 83 complaints since April 2008, with the majority of the incidents claiming that the car veers sharply to the left or right at speeds of more than 40 miles per hour.

General Motors’ search for a new chief ended with a decision based on stability, as the automotive giant named interim CEO Ed Whitacre as its permanent boss on Monday. Whitacre had been serving in that position since the beginning of last month, when then-CEO Fritz Henderson was fired.

Whitacre’s hiring makes sense because he had already hired the management team that would be working underneath the CEO, including bringing in new CFO Chris Liddell from Microsoft. In addition, the pool of qualified candidates who could step in and handle running a major car company in the midst of a massive overhaul was severely limited.

While GM was wrapping up its search for a new leader, Tata Motors will be starting one to find a new head of its Jaguar Land Rover division after David Smith stepped down as CEO. Director Ravi Smith will take over on a temporary basis until a permanent replacement can be found.

The Los Angeles Times reports that independent car maker Fisker Automotive Inc., which is committed to developing plug-in hybrid cars, has raised an additional $115.3 million in private equity funding. The money from three firms allows Fisker to gain access to almost $530 million in federal loans designated by the U.S. government in 2007 for companies developing alternative energy fuel technologies.

Fisker is the brainchild of Danish designer Henrik Fisker, and funds will help the company in its development of the Karma - its first plug-in hybrid. The Karma will be produced in a limited run of 15,000 per year and retail for roughly $90,000.

The Karma is the first step toward the next round of plug-in vehicles from Fisker. A lower-cost version called Project Nina is currently under development, and is slated to deliver a plug-in car that will cost $47,400.

The Detroit Free News reports that angry protesters interrupted a speech by Chrysler CEO Sergio Marchionne during the Automotive News World Congress dinner celebration in Detroit on Wednesday night, releasing balloons and passing out fliers critical of the company’s recent handling of labor issues.

The fliers pointed people to www.carbuyersbeware.com, which is a site that protests Fiat’s purchase of Chrysler. One protestor, who identified himself as a member of the Teamster’s strategic campaign division, said that he was protesting the company’s decision to start using nonunionized car haulers, saving the company $10 per car.

Automotive News reports that longtime Ford Motor Co. executive Hal Feder has been tapped to lead sales for the Ford and Lincoln Mercury brands. According to a memo sent out to employees today, Feder will replace the retiring Randy Ortiz as general manager of Ford and Lincoln Mercury sales.

Feder has worked for Ford since 1983, and most recently was the CEO of Ford Motor Co. of Southern Africa, leading sales and manufacturing for models produced for the South African market including the Mazda Drifter, Ford Focus CC, Mazda3, Ford Ranger and Ford Bantam.

Feder began his career with Ford in 1983 as a zone manager for Ford division, focusing on Tennessee, Kentucky and Indiana. From 1987 to 1989, he held positions at the division including sales promotion specialist for the southeast region. He’s worked in the Lincoln division and the customer service division.

The post-Christmas season is typically a time for retailers to clear out their old items to make room in their stores for new product. For General Motors at the end of 2009, this is especially true as its dealerships are looking to clear out the remaining inventory of the discontinued Pontiac and Saturn models as quickly as possible. To facilitate this, the New York Times reports that G.M. is giving its dealers incentives to sell as many cars as possible within the next week.

G.M. is offering dealers $7,000 for every Pontiac and Saturn vehicle they move into their rental or service fleets, allowing them to be sold to customers. However, the incentive might not trickle back to customers in terms of discounts on the cars. In addition, any vehicle bought through this program is considered to be a “used” vehicle, meaning that buyers will not be eligible for incentives of up to $6,500 that G.M. is offering for buyers of new cars. People who are financing their purchase will also have to pay the higher interest rates typically placed on used car loans.