General Motors Co. says it plans to develop an electric vehicle with Chinese partner SAIC Motor Corp., and it won't be just a copy of the Chevrolet Volt.
GM and SAIC announced the project in a statement today and during various media events from Shanghai this morning.
In a teleconference today with journalists, GM Vice Chairman Steve Girsky confirmed that GM will form a 50-50 joint venture with SAIC to develop an EV for the Chinese market.
That vehicle will be designed by the Pan-Asia Technical Automotive Center (PATAC), a design studio in Shanghai run by the two partners.
The EV will be a new vehicle, not an adaptation of an existing model like the Chevy Sonic, Girsky said. But he did not indicate whether the vehicle would be a small city car, when it would be introduced or how much it will cost.
"New technology is expensive and high-risk," Girsky said. "We will utilize our partners...to lower our risk and development costs, and bring technology to the market more quickly."
As the project moves forward, GM will move ahead with its plans to import small numbers of the Chevrolet Volt into China.
No subsidy
Girsky said GM hopes to persuade the Chinese government to extend its sales subsidy to imports such as the Volt. "We are hopeful that China will consider extending incentives to all vehicles in the future," he said.
Girsky also emphasized that the Chinese government has not pressured GM to share the Volt's technology with its Chinese partners.
GM's collaboration with SAIC, which was launched in 1997, has been profitable for both companies. SAIC now is China's largest domestic automaker, and GM is China's biggest foreign automaker.
The partners produce Buicks and Chevrolets for sale in China, and they also produce a commercial microvan called the Sunshine, China's top-selling light vehicle.
GM plans to introduce 60 new and upgraded models in the country during the next five years, the company said during the Shanghai auto show in April. GM and SAIC operate ten joint ventures in the nation.
Girsky said GM is confident that it can safely share its intellectual property with SAIC. "This is not the first time that we've brought intellectual property into China," Girsky said. "We work well with this partner."
China ventures
Automakers including Daimler AG and Nissan Motor Co. have announced plans to add alternative-energy vehicles in China as the world's largest polluter seeks to reduce emissions. The government aims to have 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.
Vehicle sales are forecast to slow this year in China, after sales-tax breaks and rebates for rural buyers ended in January and following central bank interest-rate rises.
Overall sales in the first eight months of the year rose 3.3 percent to 12 million units, with passenger-car sales gaining 6.1 percent to 9.2 million units, the China Association of Automobile Manufacturers said on Sept. 9. Deliveries climbed 32 percent last year.
The Shanghai GM joint venture introduced the Chevy Sail electric concept vehicle late last year. Vehicles developed under the partnership will be sold in China under Shanghai GM and SAIC brands, and GM also will use the architecture to build electric vehicles globally.
The agreement finalizes a nonbinding memorandum on cooperation for green-vehicle development SAIC and GM signed last November. At the time, SAIC agreed to buy a 1 percent stake in GM through an initial public offering held to make GM a public company again and cut the U.S. Treasury's stake in the company.
Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts
Wednesday, September 21, 2011
Thursday, August 25, 2011
GM partners with battery supplier LG on electric vehicles
General Motors said today that it is partnering with its battery cell supplier, LG Group, to develop electric vehicles.
The agreement, signed Wednesday by GM CEO Dan Akerson and LG President Juno Cho, will “help GM expand the number and types of electric vehicles it makes and sells,” the automaker said in a statement.
It’s the second example this week of automakers looking for partners to help in developing more fuel-efficient cars, as U.S. regulators put in place stricter fuel-economy standards for later this decade. On Monday, Toyota Motor Corp. and Ford Motor Co. said they are partnering to build hybrid light trucks.
The pact with GM broadens opportunities for LG, which supplies battery cells for the Chevrolet Volt plug-in hybrid.
Staying ahead
Akerson has vowed to stay ahead of the competition on vehicle electrification. He’s pressing his team to reduce the cost of the Volt, partly through economies of scale by applying the technology across more GM vehicles. Earlier this month, GM said the Volt powertrain will be put on an upcoming Cadillac sedan.
The Volt’s success prompted GM and LG to collaborate further on vehicle electrification, leading to a formal alliance, GM said.
Last year, for example, the two companies worked together to develop a demonstration fleet of electric Chevy Cruze compacts, which were used as official vehicles during the G20 summit in Seoul. In its statement today, GM said it now is “market testing” those vehicles.
GM and LG engineers will work together on development of electric vehicle platforms and components, GM said. Vehicles born out of the partnership “will be sold in many countries,” the automaker said.
‘Consumers benefit’
Steve Girsky, GM vice chairman, said in the statement: “Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”
In the statement, Cho said, “We fully support GM’s goal to lead the industry in the electrification of the automobile.”
GM didn’t disclose terms of the agreement but said it does not involve any exchange of equity.
The agreement, signed Wednesday by GM CEO Dan Akerson and LG President Juno Cho, will “help GM expand the number and types of electric vehicles it makes and sells,” the automaker said in a statement.
It’s the second example this week of automakers looking for partners to help in developing more fuel-efficient cars, as U.S. regulators put in place stricter fuel-economy standards for later this decade. On Monday, Toyota Motor Corp. and Ford Motor Co. said they are partnering to build hybrid light trucks.
The pact with GM broadens opportunities for LG, which supplies battery cells for the Chevrolet Volt plug-in hybrid.
Staying ahead
Akerson has vowed to stay ahead of the competition on vehicle electrification. He’s pressing his team to reduce the cost of the Volt, partly through economies of scale by applying the technology across more GM vehicles. Earlier this month, GM said the Volt powertrain will be put on an upcoming Cadillac sedan.
The Volt’s success prompted GM and LG to collaborate further on vehicle electrification, leading to a formal alliance, GM said.
Last year, for example, the two companies worked together to develop a demonstration fleet of electric Chevy Cruze compacts, which were used as official vehicles during the G20 summit in Seoul. In its statement today, GM said it now is “market testing” those vehicles.
GM and LG engineers will work together on development of electric vehicle platforms and components, GM said. Vehicles born out of the partnership “will be sold in many countries,” the automaker said.
‘Consumers benefit’
Steve Girsky, GM vice chairman, said in the statement: “Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”
In the statement, Cho said, “We fully support GM’s goal to lead the industry in the electrification of the automobile.”
GM didn’t disclose terms of the agreement but said it does not involve any exchange of equity.
Friday, July 8, 2011
GM to test offering insurance for 1 year to buyers in Northwest
General Motors -- testing a new sales promotion -- is offering Oregonians and Washingtonians a new incentive to buy or lease a GM vehicle.
Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.
The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.
GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.
The offer includes 2010, 2011 and 2012 models, GM said.
GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.
If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.
The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.
Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.
The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.
Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.
MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.
“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”
Any driver from the two states who buys or leases a new vehicle through Sept. 6 and titles the vehicle in either state will receive a free one-year automobile insurance policy from MetLife Auto & Home.
The offer is part of a GM pilot program to see if offering a year’s worth of free insurance boosts sales.
GM chose Oregon and Washington to launch the program because the automaker has had traditionally weak sales there, GM spokesman Tom Henderson said.
The offer includes 2010, 2011 and 2012 models, GM said.
GM's U.S. sales are up 17 percent this year in a market that has advanced 13 percent.
If the pilot is successful, GM would consider expanding the program to other markets, Henderson said.
The policy covers the vehicle and any driver as long as the initial customer owns or leases the vehicle. Drivers aren’t required to accept the MetLife insurance.
Any driver with a valid operator's license is eligible for the offer, Henderson said. Commercial and fleet customers are not eligible.
The insurance incorporates liability and physical damage coverage, exceeding the legally required amount of coverage in both states, GM said.
Liability coverage is capped at $100,000 per person, and up to $300,000 per occurrence. Collision coverage is limited to the value of the vehicle.
MetLife’s policy stipulates that if a vehicle is totaled within a year of purchase or before 15,000 miles, the insurer will repair or replace the vehicle without deducting for depreciation, GM said.
“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” Bill Moore, president of MetLife Auto & Home, said in a statement. “Our new car replacement feature is a benefit not found in most auto policies.”
Friday, July 1, 2011
GM takes low-key approach to mild-hybrid technology
Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
You won't find one.
There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.
eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.
But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.
"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."
It seems GM has learned from its mistakes.
Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.
Sales flopped.
This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.
The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).
Noticing the mpg
Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.
But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.
eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.
The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.
That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).
But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.
Evolving industry
There's one more reason why GM isn't making a "hybrid" fuss.
With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.
Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."
Saturday, May 28, 2011
GM's next big SUVs to carry cost premium to meet fuel-economy rules
Analysts say GM will need to look at powertrain options so they don't detract from the overall fuel economy on its next generation large SUVs.
General Motors' next generation full-sized SUVs likely will carry a cost premium to meet new fuel-economy regulations, an analyst says.
GM said Thursday it will invest $331 million to retool its Arlington, Texas, plant to build the redesigned Chevrolet Tahoe and Suburban, GMC Yukon and Cadillac Escalade. The plant builds the current generation of those vehicles.
Although the automaker did not provide a time frame, industry sources say the SUVs will debut in 2013 as 2014 models.
"They will be more expensive to engineer and build because of the need for lighter weight materials," said Tracy Handler, an analyst at IHS Automotive. "I expect prices to be higher."
The fate of GM's full-sized SUVs had been in doubt due to high fuel prices and stricter government rules on fuel economy and emissions.
Overall, large SUV and SUT demand has plummeted after hitting more than 1 million units in 2003 and 2004, according to the Automotive News Data Center. Last year, U.S. sales of the Lincoln Navigator, Toyota Sequoia, Chevrolet Avalanche, GMC Yukon XL and other full-sized SUV and SUTs totaled 372,437units.
While volumes have dropped, analysts say the segment remains profitable.
At one point over the past year or so, industry sources said GM's full-sized SUVs would be dropped, replaced by a range of vehicles developed on GM's front-wheel-drive Lambda platform.
"We have customers who need full-sized SUVs for work and play," Chevrolet spokesman Mike Albano said. "We will continue to provide a vehicle in that segment."
Automakers and regulators are debating a proposal initiated by President Obama last October calling for corporate average fuel economy of 47 mpg to 62 mpg by the 2025 model year.
The latest proposal would start with the 2017 model year, with final CAFE targets to be determined. New federal fuel economy and emissions rules took effect Jan. 1 that require automakers to achieve a CAFE of 35.5 mpg by the 2016 model year.
Handler did not expect GM to drop its full-sized SUVs.
The large SUV "is important for the person who wants to tow, especially in Texas where they want it big. I can't see them abandoning that market," she said.
But she said GM "will need to look at powertrain options so they don't detract from overall fuel economy."
The 2011 Tahoe 1500 and Suburban 1500 achieve 15 mpg city/21 highway for a combined average of 17 mpg. GM also offers a gasoline-electric hybrid powertrain on some large SUVs to improve fuel economy.
Last year, Chevrolet sold 75,675 Tahoes and 45,152 Suburbans. During the first four months of 2011, Tahoe sales are up 11 percent and Suburban sales are down 13 percent.
As recently as 2006, however, GM sold 161,491 Tahoes and 77,211 Suburbans.
General Motors' next generation full-sized SUVs likely will carry a cost premium to meet new fuel-economy regulations, an analyst says.
GM said Thursday it will invest $331 million to retool its Arlington, Texas, plant to build the redesigned Chevrolet Tahoe and Suburban, GMC Yukon and Cadillac Escalade. The plant builds the current generation of those vehicles.
Although the automaker did not provide a time frame, industry sources say the SUVs will debut in 2013 as 2014 models.
"They will be more expensive to engineer and build because of the need for lighter weight materials," said Tracy Handler, an analyst at IHS Automotive. "I expect prices to be higher."
The fate of GM's full-sized SUVs had been in doubt due to high fuel prices and stricter government rules on fuel economy and emissions.
Overall, large SUV and SUT demand has plummeted after hitting more than 1 million units in 2003 and 2004, according to the Automotive News Data Center. Last year, U.S. sales of the Lincoln Navigator, Toyota Sequoia, Chevrolet Avalanche, GMC Yukon XL and other full-sized SUV and SUTs totaled 372,437units.
While volumes have dropped, analysts say the segment remains profitable.
At one point over the past year or so, industry sources said GM's full-sized SUVs would be dropped, replaced by a range of vehicles developed on GM's front-wheel-drive Lambda platform.
"We have customers who need full-sized SUVs for work and play," Chevrolet spokesman Mike Albano said. "We will continue to provide a vehicle in that segment."
Automakers and regulators are debating a proposal initiated by President Obama last October calling for corporate average fuel economy of 47 mpg to 62 mpg by the 2025 model year.
The latest proposal would start with the 2017 model year, with final CAFE targets to be determined. New federal fuel economy and emissions rules took effect Jan. 1 that require automakers to achieve a CAFE of 35.5 mpg by the 2016 model year.
Handler did not expect GM to drop its full-sized SUVs.
The large SUV "is important for the person who wants to tow, especially in Texas where they want it big. I can't see them abandoning that market," she said.
But she said GM "will need to look at powertrain options so they don't detract from overall fuel economy."
The 2011 Tahoe 1500 and Suburban 1500 achieve 15 mpg city/21 highway for a combined average of 17 mpg. GM also offers a gasoline-electric hybrid powertrain on some large SUVs to improve fuel economy.
Last year, Chevrolet sold 75,675 Tahoes and 45,152 Suburbans. During the first four months of 2011, Tahoe sales are up 11 percent and Suburban sales are down 13 percent.
As recently as 2006, however, GM sold 161,491 Tahoes and 77,211 Suburbans.
Sunday, April 24, 2011
GM to raise U.S. vehicle prices 0.4% as raw-material costs rise
Here we go again, in a time that dealers are just starting to get back on there feet the manufacturer is going to reach into there pockets and the consumers and raise the prices. Lets see, sales are finally starting to come back so lets raise the price and slow the buying down... Do these Execs even think before acting????
DETROIT -- General Motors Co. plans to raise prices on most of its vehicles starting next month in response to escalating raw-materials costs.
Today, GM notified its 4,500 U.S. dealers that the increases will average $123, or 0.4 percent, starting May 2.
"The increase is a response to the continued rise in materials costs, which has been driven by an increase in commodity prices," GM spokesman Tom Henderson said.
The price increases will be widespread across Chevrolet's portfolio, according to the notice sent to Chevy dealers today. The memo said prices are slated to rise on the Camaro and Corvette sports cars, the Malibu and Impala sedans, the Avalanche truck, the Traverse crossover and the light-duty Silverado and Colorado pickups.
The memo did not mention the Equinox crossover or the Cruze compact, two of Chevy's hottest-selling vehicles.
GM's move echoes a boost by rival Ford Motor Co. On April 1, Ford lifted its prices on 2011 models an average of $117, or 0.4 percent.
Toyota Motor Sales U.S.A. Inc., coping with a rising yen and an earthquake-shattered supply chain, is also raising prices an average 1.7 percent on many 2011 Toyota, Scion and Lexus models, starting next month.
Henderson cited rising oil prices as a factor but declined to say which materials are raising GM's costs the most. He also declined to say which vehicles would see price increases, citing competitive reasons.
As of the end of March, GM had a U.S. inventory of 574,000 vehicles, or about a 75-day supply. Henderson said the price increase was unrelated to parts shortages from Japan, which have crimped production at Japanese automakers and some Detroit 3 operations.
DETROIT -- General Motors Co. plans to raise prices on most of its vehicles starting next month in response to escalating raw-materials costs.
Today, GM notified its 4,500 U.S. dealers that the increases will average $123, or 0.4 percent, starting May 2.
"The increase is a response to the continued rise in materials costs, which has been driven by an increase in commodity prices," GM spokesman Tom Henderson said.
The price increases will be widespread across Chevrolet's portfolio, according to the notice sent to Chevy dealers today. The memo said prices are slated to rise on the Camaro and Corvette sports cars, the Malibu and Impala sedans, the Avalanche truck, the Traverse crossover and the light-duty Silverado and Colorado pickups.
The memo did not mention the Equinox crossover or the Cruze compact, two of Chevy's hottest-selling vehicles.
GM's move echoes a boost by rival Ford Motor Co. On April 1, Ford lifted its prices on 2011 models an average of $117, or 0.4 percent.
Toyota Motor Sales U.S.A. Inc., coping with a rising yen and an earthquake-shattered supply chain, is also raising prices an average 1.7 percent on many 2011 Toyota, Scion and Lexus models, starting next month.
Henderson cited rising oil prices as a factor but declined to say which materials are raising GM's costs the most. He also declined to say which vehicles would see price increases, citing competitive reasons.
As of the end of March, GM had a U.S. inventory of 574,000 vehicles, or about a 75-day supply. Henderson said the price increase was unrelated to parts shortages from Japan, which have crimped production at Japanese automakers and some Detroit 3 operations.
Wednesday, September 8, 2010
GM's OnStar said to consider free services, targeting Ford
DETROIT (Bloomberg) -- General Motors Co.'s OnStar in-car communications unit may offer some free services next year to rival Ford Motor Co.'s Sync music and information system, two people familiar with the plans said.
OnStar, a subscription service that provides accident alerts, directions and vehicle diagnostics, is scheduled to introduce an upgraded system this month that links vehicles to the social media site Facebook and translates voice messages to text, said the people, who asked not to be identified because the details aren't public.
In-car technology features attract tech-savvy consumers and allow carmakers to charge more for smaller, cheaper models, said Brandy Schaffels, an analyst at TrueCar.com. GM, the largest U.S. automaker, is adding features to keep pace with systems including Ford's Sync.
“When Ford came out with Sync, they met OnStar's services and upped the ante,” Schaffels, content manager at the California-based researcher, said in an interview. “Technological features are where GM and Ford are going to found their reputation with the next generation.”
OnStar may begin offering entertainment and information services that link to a user's smartphone without a subscription or fee, said one of the people. OnStar is now offered free in many models for the first year and then for $199 to $299 a year, depending on the features.
Jocelyn Allen, a spokeswoman for OnStar, declined to comment.
Voice-to-text
The voice-to-text system will be studied with a test audience while the company decides whether to offer it to all customers, the person said. The new version of OnStar will have enhanced services for emergency response, which alerts an OnStar operator when there is a vehicle crash, the person said.
OnStar will unveil a new advertising theme with the tagline “Live On,” while individual services will have their own themes, such as “Always On” to promote accident alerts, the people said.
The unit also is studying ways to use OnStar outside of the car, where immediate contact with an operator or access to other services such as safety or security might be useful, said the people, who declined to give specifics.
OnStar, available on more than 40 vehicles from GM's 2011 model year, has about 5.7 million subscribers, according to a GM regulatory filing. OnStar and Google Inc. said in June they would partner to offer eNav, a turn-by-turn navigation feature that allows drivers to send Google Maps destinations to their vehicle.
Ford Sync
Ford has been selling Sync, based on Microsoft Corp.'s in- car, voice-activated technology, since the 2008 model year, Alan Hall, a Ford spokesman, said in a telephone interview. The company added features such as touch-command controls and voice-activated climate control this year.
The technology, available as a $395 option on some models, helps make cars more profitable and is included standard on higher-end vehicles.
Ford said in January it plans to bring social networking, Web browsing and thumb controls similar to those on Apple Inc.'s iPod into 80 percent of its models by 2015.
OnStar, a subscription service that provides accident alerts, directions and vehicle diagnostics, is scheduled to introduce an upgraded system this month that links vehicles to the social media site Facebook and translates voice messages to text, said the people, who asked not to be identified because the details aren't public.
In-car technology features attract tech-savvy consumers and allow carmakers to charge more for smaller, cheaper models, said Brandy Schaffels, an analyst at TrueCar.com. GM, the largest U.S. automaker, is adding features to keep pace with systems including Ford's Sync.
“When Ford came out with Sync, they met OnStar's services and upped the ante,” Schaffels, content manager at the California-based researcher, said in an interview. “Technological features are where GM and Ford are going to found their reputation with the next generation.”
OnStar may begin offering entertainment and information services that link to a user's smartphone without a subscription or fee, said one of the people. OnStar is now offered free in many models for the first year and then for $199 to $299 a year, depending on the features.
Jocelyn Allen, a spokeswoman for OnStar, declined to comment.
Voice-to-text
The voice-to-text system will be studied with a test audience while the company decides whether to offer it to all customers, the person said. The new version of OnStar will have enhanced services for emergency response, which alerts an OnStar operator when there is a vehicle crash, the person said.
OnStar will unveil a new advertising theme with the tagline “Live On,” while individual services will have their own themes, such as “Always On” to promote accident alerts, the people said.
The unit also is studying ways to use OnStar outside of the car, where immediate contact with an operator or access to other services such as safety or security might be useful, said the people, who declined to give specifics.
OnStar, available on more than 40 vehicles from GM's 2011 model year, has about 5.7 million subscribers, according to a GM regulatory filing. OnStar and Google Inc. said in June they would partner to offer eNav, a turn-by-turn navigation feature that allows drivers to send Google Maps destinations to their vehicle.
Ford Sync
Ford has been selling Sync, based on Microsoft Corp.'s in- car, voice-activated technology, since the 2008 model year, Alan Hall, a Ford spokesman, said in a telephone interview. The company added features such as touch-command controls and voice-activated climate control this year.
The technology, available as a $395 option on some models, helps make cars more profitable and is included standard on higher-end vehicles.
Ford said in January it plans to bring social networking, Web browsing and thumb controls similar to those on Apple Inc.'s iPod into 80 percent of its models by 2015.
Wednesday, June 9, 2010
GM to recall 1.5 million vehicles for fire risk
General Motors Co. said it is recalling 1.5 million vehicles with heated washer-fluid systems following engine fires that occurred even after a 2008 fix on many of the same cars for similar problems.
The recalls, to begin by June 14, will affect 18 models of 2006-2009 Buicks, Cadillacs, Chevrolets, GMCs, Hummers and Saturns, the National Highway Traffic Safety Administration said on its Web site today.
In August 2008, GM recalled about 858,000 cars and trucks following reports of fires resulting from shorts in the system that heats windshield-washer fluid. Dealers installed a wire harness that contained a fuse.
However, the module's internal thermal-protection device, or solder cup, “did not function as designed,” GM said in a June 4 letter to NHTSA that was posted today.
No injuries
GM said it has learned of five fires, including several that occurred while the vehicle was unattended. The company is not aware of any injuries or crashes.
“While our analysis shows the number of incidents is very small compared with the number of vehicles on the road, we want our customers to have complete peace of mind,” said Jeff Boyer, GM's executive director of safety.
The models of cars, trucks and crossovers included in the recall are the 2006-09 Buick Lucerne, Cadillac DTS and Hummer H2; the 2008-09 Buick Enclave and Cadillac CTS; and the 2009 Chevrolet Traverse.
Also included are the 2007-09 Cadillac Escalade, Escalade ESV and EXT; Chevrolet Avalanche, Silverado, Suburban, and Tahoe; GMC Acadia, Sierra, Yukon and Yukon XL; and Saturn Outlook.
While 1.4 million of the vehicles to be recalled are in the United States, there are others in Canada, Mexico and other countries, GM said in a statement.
Once the heated-washer fluid system is removed, the vehicles will no longer have the winter convenience of warm fluid to clean the frozen windshield, GM spokesman Greg Martin said.
GM said it plans to pay $100 to vehicle owners as compensation for permanently disabling and removing the heated washer fluid system. If all 1.5 million vehicles recalled are brought in, GM would pay out roughly $150 million, plus the cost of the actual fixes. GM, in court documents, projected the cost of the first recall was between $20 million and $25 million.
The heat is off
The original units, called HotShot, were manufactured by a suburban Detroit supplier called Microheat Inc.
Microheat's technology gained praise. In 2006, the company was a finalist for an Automotive News PACE Award given annually for supplier product and process innovation. PACE stands for Premier Automotive Suppliers' Contribution to Excellence.
But after GM's problems with HotShot began to emerge in 2008, Microheat ceased production of the units and filed for Chapter 11 bankruptcy protection. Microheat's Web site is no longer active.
The recalls, to begin by June 14, will affect 18 models of 2006-2009 Buicks, Cadillacs, Chevrolets, GMCs, Hummers and Saturns, the National Highway Traffic Safety Administration said on its Web site today.
In August 2008, GM recalled about 858,000 cars and trucks following reports of fires resulting from shorts in the system that heats windshield-washer fluid. Dealers installed a wire harness that contained a fuse.
However, the module's internal thermal-protection device, or solder cup, “did not function as designed,” GM said in a June 4 letter to NHTSA that was posted today.
No injuries
GM said it has learned of five fires, including several that occurred while the vehicle was unattended. The company is not aware of any injuries or crashes.
“While our analysis shows the number of incidents is very small compared with the number of vehicles on the road, we want our customers to have complete peace of mind,” said Jeff Boyer, GM's executive director of safety.
The models of cars, trucks and crossovers included in the recall are the 2006-09 Buick Lucerne, Cadillac DTS and Hummer H2; the 2008-09 Buick Enclave and Cadillac CTS; and the 2009 Chevrolet Traverse.
Also included are the 2007-09 Cadillac Escalade, Escalade ESV and EXT; Chevrolet Avalanche, Silverado, Suburban, and Tahoe; GMC Acadia, Sierra, Yukon and Yukon XL; and Saturn Outlook.
While 1.4 million of the vehicles to be recalled are in the United States, there are others in Canada, Mexico and other countries, GM said in a statement.
Once the heated-washer fluid system is removed, the vehicles will no longer have the winter convenience of warm fluid to clean the frozen windshield, GM spokesman Greg Martin said.
GM said it plans to pay $100 to vehicle owners as compensation for permanently disabling and removing the heated washer fluid system. If all 1.5 million vehicles recalled are brought in, GM would pay out roughly $150 million, plus the cost of the actual fixes. GM, in court documents, projected the cost of the first recall was between $20 million and $25 million.
The heat is off
The original units, called HotShot, were manufactured by a suburban Detroit supplier called Microheat Inc.
Microheat's technology gained praise. In 2006, the company was a finalist for an Automotive News PACE Award given annually for supplier product and process innovation. PACE stands for Premier Automotive Suppliers' Contribution to Excellence.
But after GM's problems with HotShot began to emerge in 2008, Microheat ceased production of the units and filed for Chapter 11 bankruptcy protection. Microheat's Web site is no longer active.
Tuesday, May 18, 2010
GM posts $865 million Q1 profit
General Motors Co. posted a first-quarter profit as production snapped back and said it was making progress on a turnaround expected to put it on track toward its first full-year profit since 2004.
Analysts said the results underscored the progress GM made by slashing costs in a bankruptcy funded by the Obama administration and kept open the prospect of the automaker launching an initial public offering as soon as this year.
GM recorded a net profit of $865 million, compared with a loss of $5.98 billion a year before, as it ramped up production by nearly 57 percent from year-earlier levels to meet steadier demand in the United States and a sales boom in China.
"Now that we have achieved profitability, the next step is to achieve sustainable profitability," CFO Chris Liddell told reporters.
Liddell said GM had a "good chance" of making a profit for all of 2010, although gains from ramping up production would fade after the first quarter.
He declined to offer a forecast for the rest of 2010. He also put some conditions on the timing of a possible initial public offering.
GM will make an IPO only “when the markets and the company are ready,” he said. “What's out of our control are the readiness of the markets and the status of the global auto industry.”
In addition, GM Controller Nick Cyprus cautioned that GM must further refine its internal financial controls before company managers have a clear view of financial performance. He expressed optimism that would be accomplished before an IPO.
GM received $50 billion of U.S. government financing for its restructuring in bankruptcy. It has been aiming to launch an IPO that would allow the U.S. government to reduce its stake of nearly 61 percent in the automaker.
“The unfortunate process of bankruptcy is yielding positive results,” Rebecca Lindland, an analyst at IHS Global Insight, said in an interview. “It certainly keeps them on track for an IPO.”
Revenue soars
First-quarter revenue was $31.48 billion, a 40 percent advance from a year earlier, when GM was on the brink of bankruptcy after collapsing U.S. demand sent the industry into a tailspin. The automaker generated $1 billion in free cash flow during the quarter and said it ended the period with $35.7 billion in cash.
GM's first-quarter global sales rose 23 percent to nearly 2 million vehicles, including sales of GM's affiliate brands in China: Wuling and FAW-GM.
GM used bankruptcy to drop brands, cull U.S. dealerships and reduce debt. At the end of the first quarter, GM had debt and preferred stock of just over $20 billion, down from $54 billion a year earlier with government creditors taking the place of bondholders.
"The promise of the bankruptcy was to reduce costs, and it worked. That bodes well for the future," said John Wolkonowicz, an analyst with IHS Global Insight.
GM posted a $4.3 billion loss in 2009, from the time it emerged from bankruptcy in early July until the end of the year. The automaker fell into bankruptcy after losses of about $88 billion from 2005 through the first quarter of 2009.
Analysts have said GM still faces steep challenges in repairing the reputation of its brands led by Chevrolet in its home market. Another area of weakness is Europe, where GM posted a first-quarter loss of $506 million and sales for its Opel and Vauxhall brands were down almost 1 percent.
"They're headed in the right direction, but one quarter is not going to turn the ship around," said Mirko Mikelic, a portfolio manager for Fifth Third Asset Management.
GM's market share was stable at 11 percent of global sales and at about 18 percent of North American sales.
U.S. rivals
IHS Global Insight's Wolkonowicz said the results showed GM was in a stronger position than its smaller rival, Chrysler, while still lagging Ford Motor Co. Ford posted a $2.1 billion first-quarter profit and has forecast that it will be solidly profitable for 2010.
In a step aimed at strengthening its ability to compete with rivals, GM has been looking at options to re-establish a captive auto financing arm, people with knowledge of the plans said last week.
Such a move would mark a nearly complete reversal of the process that started in late 2006 when GM sold off a controlling stake in GMAC to raise cash.
Detroit-based GMAC, now known as Ally Financial, is 56 percent owned by the U.S. Treasury after the government injected $17 billion as part of a restructuring that also saw the finance company become a commercial bank.
Liddell said it was "incredibly important" for GM to have a strong financing partner but said it was "debatable" whether that needed to be a captive finance firm as GMAC once was.
Analysts said the results underscored the progress GM made by slashing costs in a bankruptcy funded by the Obama administration and kept open the prospect of the automaker launching an initial public offering as soon as this year.
GM recorded a net profit of $865 million, compared with a loss of $5.98 billion a year before, as it ramped up production by nearly 57 percent from year-earlier levels to meet steadier demand in the United States and a sales boom in China.
"Now that we have achieved profitability, the next step is to achieve sustainable profitability," CFO Chris Liddell told reporters.
Liddell said GM had a "good chance" of making a profit for all of 2010, although gains from ramping up production would fade after the first quarter.
He declined to offer a forecast for the rest of 2010. He also put some conditions on the timing of a possible initial public offering.
GM will make an IPO only “when the markets and the company are ready,” he said. “What's out of our control are the readiness of the markets and the status of the global auto industry.”
In addition, GM Controller Nick Cyprus cautioned that GM must further refine its internal financial controls before company managers have a clear view of financial performance. He expressed optimism that would be accomplished before an IPO.
GM received $50 billion of U.S. government financing for its restructuring in bankruptcy. It has been aiming to launch an IPO that would allow the U.S. government to reduce its stake of nearly 61 percent in the automaker.
“The unfortunate process of bankruptcy is yielding positive results,” Rebecca Lindland, an analyst at IHS Global Insight, said in an interview. “It certainly keeps them on track for an IPO.”
Revenue soars
First-quarter revenue was $31.48 billion, a 40 percent advance from a year earlier, when GM was on the brink of bankruptcy after collapsing U.S. demand sent the industry into a tailspin. The automaker generated $1 billion in free cash flow during the quarter and said it ended the period with $35.7 billion in cash.
GM's first-quarter global sales rose 23 percent to nearly 2 million vehicles, including sales of GM's affiliate brands in China: Wuling and FAW-GM.
GM used bankruptcy to drop brands, cull U.S. dealerships and reduce debt. At the end of the first quarter, GM had debt and preferred stock of just over $20 billion, down from $54 billion a year earlier with government creditors taking the place of bondholders.
"The promise of the bankruptcy was to reduce costs, and it worked. That bodes well for the future," said John Wolkonowicz, an analyst with IHS Global Insight.
GM posted a $4.3 billion loss in 2009, from the time it emerged from bankruptcy in early July until the end of the year. The automaker fell into bankruptcy after losses of about $88 billion from 2005 through the first quarter of 2009.
Analysts have said GM still faces steep challenges in repairing the reputation of its brands led by Chevrolet in its home market. Another area of weakness is Europe, where GM posted a first-quarter loss of $506 million and sales for its Opel and Vauxhall brands were down almost 1 percent.
"They're headed in the right direction, but one quarter is not going to turn the ship around," said Mirko Mikelic, a portfolio manager for Fifth Third Asset Management.
GM's market share was stable at 11 percent of global sales and at about 18 percent of North American sales.
U.S. rivals
IHS Global Insight's Wolkonowicz said the results showed GM was in a stronger position than its smaller rival, Chrysler, while still lagging Ford Motor Co. Ford posted a $2.1 billion first-quarter profit and has forecast that it will be solidly profitable for 2010.
In a step aimed at strengthening its ability to compete with rivals, GM has been looking at options to re-establish a captive auto financing arm, people with knowledge of the plans said last week.
Such a move would mark a nearly complete reversal of the process that started in late 2006 when GM sold off a controlling stake in GMAC to raise cash.
Detroit-based GMAC, now known as Ally Financial, is 56 percent owned by the U.S. Treasury after the government injected $17 billion as part of a restructuring that also saw the finance company become a commercial bank.
Liddell said it was "incredibly important" for GM to have a strong financing partner but said it was "debatable" whether that needed to be a captive finance firm as GMAC once was.
Wednesday, May 12, 2010
GM said to weigh returning to auto-lending business
GM may buy back the GMAC business, start a new finance company or form a partnership with banks and other lenders, said the people, who asked not to be identified because the plans are private. Having its own finance arm could increase the automaker's profit and give its dealers competitive leasing and loan offers.
CEO Ed Whitacre wants to establish an in-house lender before taking the Detroit-based automaker public again as soon as the fourth quarter of this year, said one of the people. GM repaid government loans last month, and having an initial public offering will allow the U.S. to reduce its 61 percent stake in the automaker.
“The IPO is going to be more of a success if they can sell more vehicles than they have been selling,” said Rebecca Lindland, an analyst at IHS Global Insight in Lexington, Mass. “They should be able to do that if they can be more aggressive in their financing. Having their own finance company would certainly help.”
Whitacre has his management team exploring all options, the people said. Acquiring Detroit-based GMAC, now known as Ally Financial Inc., would give GM a ready-made lending operation. To acquire those operations, the automaker would have to execute a deal with the U.S. Treasury, which owns 56 percent of GMAC.
Tom Wilkinson, a GM spokesman, declined to comment.
Automotive lending
GM would probably want to acquire only the automotive business, said Mark Wakefield, a director at turnaround firm Alix Partners, which is winding down the bankrupt old GM, now called Motors Liquidation Co.
GM probably wouldn't want GMAC's mortgage business, which was called ResCap until the company changed names, he said. It made $175 million in the first quarter after losing $17.3 billion from 2007 through 2009.
“The cleanest way to do this is to buy only the auto finance business and leave ResCap, Ally Bank and the commercial warehouse-lending business alone,” said Wakefield, who isn't directly involved in the matter.
An Ally spokeswoman, Gina Proia, called the potential acquisition of its auto-finance business by GM “speculation.”
“Our position is that if we are supporting our manufacturers and customers, then the relationship works,” Proia said.
GM sold 51 percent of GMAC to private equity firm Cerberus Capital Management LP in 2006 when the automaker ran low on cash and since has had to rely on outside lenders.
One complicating factor: If GM owns more than 10 percent, the lender would have to relinquish its bank holding company status and wouldn't have access to the Federal Reserve's discount window for cheap funds.
All parties would also have to work out a solution with Chrysler Group LLC, which has a contract with Ally for its dealers, Wakefield said.
Borrowing rates
A GM-owned finance arm would have to borrow on the open market to lend to car buyers and dealers. The funds could come at higher interest rates until GM proves that it is a sound investment, Wakefield said.
“It would take a while to convince the market that GMAC is safe and sound,” Wakefield said. “It will take a while to claw their way to a borrower rate that is competitive.”
Russ Shelton, owner of Shelton Pontiac Buick GMC Inc. in suburban Detroit, said dealers would welcome an in-house finance arm at GM.
“Probably the biggest missing piece for GM is financing,” Shelton said. “Getting a customer financed today is the hardest thing, even if they have good numbers. I think we could probably overcome some of that with a captive finance arm.”
Saturday, May 8, 2010
I have a leak in the air conditioning
I have a GMC Jimmy "98" V6 Vortex engine with a leak in the air conditioning. I had it recharged last year and it lasted about 1 month. Do they have something like a radiator leak fix that I can use for the air or something else?
Response:
1) They used to tint (color) the freon when filling, and watch for leaks. That was years ago. Not aware of any type of stop leak that can be added to the freon. There are several places in the system that can develop leaks.
2) Advance Auto Parts carries a stop leak for almost everything including air conditioning. Now mind you I'm not recommending these products, just telling you they have them.
Response:
1) They used to tint (color) the freon when filling, and watch for leaks. That was years ago. Not aware of any type of stop leak that can be added to the freon. There are several places in the system that can develop leaks.
2) Advance Auto Parts carries a stop leak for almost everything including air conditioning. Now mind you I'm not recommending these products, just telling you they have them.
Monday, May 3, 2010
Pontiac owners are migrating to Chevrolet
Thirteen of Buick-GMC dealer Kim Borcherding's customers had Pontiac leases that ended in March, but none of them bought or leased another new vehicle from her.
Six of them bought an import. Three bought a Chevrolet, which Borcherding's Cincinnati store doesn't sell. One bought a used vehicle from her, and three bought out their leases.
Those were their only options if they wanted to stay her customers, Borcherding says. Her current inventory is “just nothing that is in their league,” she says, since the lowest priced new vehicle she has costs nearly $25,000.
Like most Pontiac owners, Borcherding's customers need moderately priced sedans not found in the current Buick-GMC showroom.
As a result, General Motors Co.'s retention efforts are shifting most of its former Pontiac owners to Chevrolet.
“They have nowhere else to turn because we don't have anything else to offer,” Borcherding says. “They're not going to wait forever.”
In the year leading up to GM's April 27, 2009, announcement that it would kill Pontiac, 37 percent of owners trading in a Pontiac bought a GM product, according to data from Edmunds.com. That percentage has stayed nearly flat at 36 percent.
But the preferred GM brand for repeat buyers has shifted. Before GM decided to eliminate Pontiac, the brand competed evenly with Chevrolet for Pontiac owners' next purchases, with each brand averaging 15 percent. And Pontiac won that battle in the months immediately following the death sentence.
But from Jan. 1 -- when GM's supply of Pontiacs had dwindled to 800 -- through March, one-fourth of Pontiac owners chose Chevrolet for their next purchase. To compare, Buick-GMC sales from Pontiac trade-ins have only increased to 10 percent this year, from 6 percent the year before the Pontiac verdict.
That's fine with some Buick-GMC dealers who either own Chevrolet stores down the street or never depended much on Pontiac sales. But for others, the loss of Pontiac and the shift to Buick-GMC's premium image has meant a drop in revenue. Their wait for less expensive sedans continues while Pontiac owners slowly slip away to the local Chevrolet dealer.
“None of them are buying a Buick-GMC because there's nothing really comparable in the Buick-GMC line,” says Mark Frost, general manager of Jim Ellis Buick-GMC outside Atlanta.
The GMC Terrain small crossover, starting at $24,995, including shipping, has the lowest starting sticker price in the brands' lineups, not counting pickups. The least-expensive car, the Buick LaCrosse, starts at $26,995, including shipping.
Dealers will have to wait until the 2012 model year to sell a less expensive sedan: the base version of the new Buick Regal. A premium-trim-level Regal is on its way to dealerships with a $26,995 price tag, and the base level will cost less than that.
Frost also manages a Chevrolet store, and 10 of the 14 Pontiac trade-ins he has seen since November have been for Chevrolets. His dealership group took over the Buick-Pontiac-GMC franchise a year ago, so it has never really depended on Pontiac sales. But he still advertises service to Pontiac owners through the updated “free agent” lists GM provides to all its dealers.
GM has also offered Pontiac owners four free oil changes and $1,000 off a new GM vehicle.
“The loyalty rates of Pontiac owners are in line with our expectations,” GM spokesman Tom Henderson says. He declined to give data on retention rates or efforts to keep Pontiac customers in the GM fold.
One dealer sees used cars as a way to retain Pontiac owners. New York dealer Mike Mullaney's Buick-GMC store doesn't have inexpensive new products for his Pontiac customers, so he's trying to put them in late-model used Pontiacs. That way, he hopes he can keep from losing his customers to the local Chevrolet dealer and maybe be able to offer them a smaller, less expensive Buick in a year or two.
Says Mullaney: “If we can maintain that customer for one more product cycle, we'll be in good shape.”
Six of them bought an import. Three bought a Chevrolet, which Borcherding's Cincinnati store doesn't sell. One bought a used vehicle from her, and three bought out their leases.
Those were their only options if they wanted to stay her customers, Borcherding says. Her current inventory is “just nothing that is in their league,” she says, since the lowest priced new vehicle she has costs nearly $25,000.
Like most Pontiac owners, Borcherding's customers need moderately priced sedans not found in the current Buick-GMC showroom.
As a result, General Motors Co.'s retention efforts are shifting most of its former Pontiac owners to Chevrolet.
“They have nowhere else to turn because we don't have anything else to offer,” Borcherding says. “They're not going to wait forever.”
In the year leading up to GM's April 27, 2009, announcement that it would kill Pontiac, 37 percent of owners trading in a Pontiac bought a GM product, according to data from Edmunds.com. That percentage has stayed nearly flat at 36 percent.
But the preferred GM brand for repeat buyers has shifted. Before GM decided to eliminate Pontiac, the brand competed evenly with Chevrolet for Pontiac owners' next purchases, with each brand averaging 15 percent. And Pontiac won that battle in the months immediately following the death sentence.
But from Jan. 1 -- when GM's supply of Pontiacs had dwindled to 800 -- through March, one-fourth of Pontiac owners chose Chevrolet for their next purchase. To compare, Buick-GMC sales from Pontiac trade-ins have only increased to 10 percent this year, from 6 percent the year before the Pontiac verdict.
That's fine with some Buick-GMC dealers who either own Chevrolet stores down the street or never depended much on Pontiac sales. But for others, the loss of Pontiac and the shift to Buick-GMC's premium image has meant a drop in revenue. Their wait for less expensive sedans continues while Pontiac owners slowly slip away to the local Chevrolet dealer.
“None of them are buying a Buick-GMC because there's nothing really comparable in the Buick-GMC line,” says Mark Frost, general manager of Jim Ellis Buick-GMC outside Atlanta.
The GMC Terrain small crossover, starting at $24,995, including shipping, has the lowest starting sticker price in the brands' lineups, not counting pickups. The least-expensive car, the Buick LaCrosse, starts at $26,995, including shipping.
Dealers will have to wait until the 2012 model year to sell a less expensive sedan: the base version of the new Buick Regal. A premium-trim-level Regal is on its way to dealerships with a $26,995 price tag, and the base level will cost less than that.
Frost also manages a Chevrolet store, and 10 of the 14 Pontiac trade-ins he has seen since November have been for Chevrolets. His dealership group took over the Buick-Pontiac-GMC franchise a year ago, so it has never really depended on Pontiac sales. But he still advertises service to Pontiac owners through the updated “free agent” lists GM provides to all its dealers.
GM has also offered Pontiac owners four free oil changes and $1,000 off a new GM vehicle.
“The loyalty rates of Pontiac owners are in line with our expectations,” GM spokesman Tom Henderson says. He declined to give data on retention rates or efforts to keep Pontiac customers in the GM fold.
One dealer sees used cars as a way to retain Pontiac owners. New York dealer Mike Mullaney's Buick-GMC store doesn't have inexpensive new products for his Pontiac customers, so he's trying to put them in late-model used Pontiacs. That way, he hopes he can keep from losing his customers to the local Chevrolet dealer and maybe be able to offer them a smaller, less expensive Buick in a year or two.
Says Mullaney: “If we can maintain that customer for one more product cycle, we'll be in good shape.”
Saturday, May 1, 2010
GM properly used escrow to repay U.S. loans, Treasury says
General Motors Co., which repaid $4.7 billion in U.S. loans last week, properly used escrowed cash for the payment, a Treasury Department official said in responding to complaints from a Republican senator.
GM used the escrowed funds created with government loans and overseen by the Treasury after determining the cash wasn't needed for “extraordinary” expenses, Herbert Allison, Treasury's assistant secretary for financial stability, said in a letter to Sen. Charles Grassley of Iowa.
Grassley, the top Republican on the Senate Finance Committee, on April 22 wrote to Treasury Secretary Timothy Geithner that GM's repayment “appears to be nothing more than an elaborate TARP money shuffle” because the money came from the U.S. Troubled Asset Relief Program.
Allison said Grassley was incorrect in saying the escrow account was held at the Treasury, when the funds were held by the automaker.
Allison's written response echoed the points made by a treasury spokeswoman last week.
“The bottom line is that the repayment was made on the dime of taxpayers across America, and it's misleading to say that GM repaid its TARP loans ‘in full, with interest, ahead of schedule, because more customers are buying' GM cars,” Grassley said in a statement on his Web site following Treasury's determination.
GM CEO Ed Whitacre last week met U.S. lawmakers, including House Speaker Nancy Pelosi, in Washington after announcing the repayment. Taxpayers own 61 percent of GM, a stake worth about $2.1 billion, as part of its 2009 bankruptcy financing.
The Treasury will start selling its GM shares when the automaker begins an initial public offering, Allison said.
GM used the escrowed funds created with government loans and overseen by the Treasury after determining the cash wasn't needed for “extraordinary” expenses, Herbert Allison, Treasury's assistant secretary for financial stability, said in a letter to Sen. Charles Grassley of Iowa.
Grassley, the top Republican on the Senate Finance Committee, on April 22 wrote to Treasury Secretary Timothy Geithner that GM's repayment “appears to be nothing more than an elaborate TARP money shuffle” because the money came from the U.S. Troubled Asset Relief Program.
Allison said Grassley was incorrect in saying the escrow account was held at the Treasury, when the funds were held by the automaker.
Allison's written response echoed the points made by a treasury spokeswoman last week.
“The bottom line is that the repayment was made on the dime of taxpayers across America, and it's misleading to say that GM repaid its TARP loans ‘in full, with interest, ahead of schedule, because more customers are buying' GM cars,” Grassley said in a statement on his Web site following Treasury's determination.
GM CEO Ed Whitacre last week met U.S. lawmakers, including House Speaker Nancy Pelosi, in Washington after announcing the repayment. Taxpayers own 61 percent of GM, a stake worth about $2.1 billion, as part of its 2009 bankruptcy financing.
The Treasury will start selling its GM shares when the automaker begins an initial public offering, Allison said.
Tuesday, April 20, 2010
GM agrees deal with unions to close Opel plant in Belgium
Compensation package removes key hurdle in Opel/Vauxhall revamp
General Motors Co.'s Opel/Vauxhall unit has agreed a deal with unions to close a plant in Antwerp, Belgium.
GM had announced in January that it would close the 120,000-unit capacity plant as part of a restructuring to reduce European capacity by a fifth to help return Opel to profitability within two years.
Opel unions, which had opposed the closure, on Sunday agreed a compensation package for the 2,560 Antwerp workers, a plant spokeswoman told the German press agency, Deutsche Presse-Agentur.
Workers will vote on Tuesday whether to accept the deal, which offers workers up to 144,000 euros ($193,000) in compensation for losing their jobs.
GM will still look for an outside investor to take over the plant and continue building the Astra three-door hatchback and Astra convertible. If no investor is found by September 30, the factory will close by the end of the year.
Klaus, Franz, Opel's top union leader, told the press agency that an important roadblock hindering labor's acceptance of GM's European restructuring will be removed if Antwerp workers vote to accept the deal.
GM plans to cut 8,300 of Opel/Vauxhall's 48,000 workforce and is seeking up to 2 billion in loan guarantees from five European governments toward its turnaround plan for Opel and its UK sister brand Vauxhall.
The British government has already pledged 300 million. Germany, where Opel and most of its workers are based, is being asked for the largest amount at 1.3 billion euros and has still to make a decision on whether to lend aid.
General Motors Co.'s Opel/Vauxhall unit has agreed a deal with unions to close a plant in Antwerp, Belgium.
GM had announced in January that it would close the 120,000-unit capacity plant as part of a restructuring to reduce European capacity by a fifth to help return Opel to profitability within two years.
Opel unions, which had opposed the closure, on Sunday agreed a compensation package for the 2,560 Antwerp workers, a plant spokeswoman told the German press agency, Deutsche Presse-Agentur.
Workers will vote on Tuesday whether to accept the deal, which offers workers up to 144,000 euros ($193,000) in compensation for losing their jobs.
GM will still look for an outside investor to take over the plant and continue building the Astra three-door hatchback and Astra convertible. If no investor is found by September 30, the factory will close by the end of the year.
Klaus, Franz, Opel's top union leader, told the press agency that an important roadblock hindering labor's acceptance of GM's European restructuring will be removed if Antwerp workers vote to accept the deal.
GM plans to cut 8,300 of Opel/Vauxhall's 48,000 workforce and is seeking up to 2 billion in loan guarantees from five European governments toward its turnaround plan for Opel and its UK sister brand Vauxhall.
The British government has already pledged 300 million. Germany, where Opel and most of its workers are based, is being asked for the largest amount at 1.3 billion euros and has still to make a decision on whether to lend aid.
Tuesday, April 13, 2010
GM to report 'solid' Q1 operating results, Whitacre memo says
General Motors Co. expects to report "solid" operating results for the first quarter, which will show progress toward its goal of returning to profitability in 2010, CEO Ed Whitacre said.
A potential profit this year would end a five-year streak of losses and mark a turnaround for the U.S. automaker, which emerged from a U.S. government-financed bankruptcy in July after slashing debt and labor costs.
Whitacre, who replaced Fritz Henderson as CEO in December, has aimed to move faster to jump-start sales and launch an initial public offering that would allow the U.S. government to reduce its majority stake in GM.
"In January, I said we could earn a profit in 2010, if everything falls into place," Whitacre said in a memo to staff, which was obtained by Reuters.
"Our first quarter financial results will show us an important milestone, and I'm pleased to say that I anticipate solid operating results when we report our first quarter financials in May," he said.
The automaker has said it will report its first-quarter results in mid-May.
Last week, GM reported a $4.3 billion 2009 net loss covering the period from its emergence from bankruptcy in July through the end of the year, in the automaker's first full account of its new balance sheet as a restructured company.
"Our 'fresh start' accounting not only closed the door on 2009, it is a major milestone in our journey to becoming a public company again," Whitacre said in the memo.
Hit by losses of about $88 billion from 2005 through the first quarter of 2009, GM was given $50 billion of government financing to restructure in a bankruptcy steered by the U.S. Treasury, which remains a 61 percent owner of GM.
As part of efforts to push for a faster turnaround, Whitacre has shaken up senior management, including sales and marketing teams, in recent months.
GM reshuffled its sales organization in March, putting North American President Mark Reuss in charge of sales; and GM executives have said Whitacre has been clear he will hold them responsible for delivering on a promised turnaround.
The bankruptcy restructuring helped the “new GM” eliminate debt and build its cash, but the automaker's sales overall remain under pressure as it eliminates four unprofitable brands: Pontiac, Saturn, Hummer and Saab.
The automaker's U.S. sales were up 16 percent in the first quarter from a year earlier, when the industry was hitting its lowest levels since the early 1980s and GM was sliding toward bankruptcy.
But GM's U.S. market share of 18.7 percent in the first quarter was down from 19.6 percent for all of 2009, a year in which it lost 2.5 percentage points of U.S. share.
A potential profit this year would end a five-year streak of losses and mark a turnaround for the U.S. automaker, which emerged from a U.S. government-financed bankruptcy in July after slashing debt and labor costs.
Whitacre, who replaced Fritz Henderson as CEO in December, has aimed to move faster to jump-start sales and launch an initial public offering that would allow the U.S. government to reduce its majority stake in GM.
"In January, I said we could earn a profit in 2010, if everything falls into place," Whitacre said in a memo to staff, which was obtained by Reuters.
"Our first quarter financial results will show us an important milestone, and I'm pleased to say that I anticipate solid operating results when we report our first quarter financials in May," he said.
The automaker has said it will report its first-quarter results in mid-May.
Last week, GM reported a $4.3 billion 2009 net loss covering the period from its emergence from bankruptcy in July through the end of the year, in the automaker's first full account of its new balance sheet as a restructured company.
"Our 'fresh start' accounting not only closed the door on 2009, it is a major milestone in our journey to becoming a public company again," Whitacre said in the memo.
Hit by losses of about $88 billion from 2005 through the first quarter of 2009, GM was given $50 billion of government financing to restructure in a bankruptcy steered by the U.S. Treasury, which remains a 61 percent owner of GM.
As part of efforts to push for a faster turnaround, Whitacre has shaken up senior management, including sales and marketing teams, in recent months.
GM reshuffled its sales organization in March, putting North American President Mark Reuss in charge of sales; and GM executives have said Whitacre has been clear he will hold them responsible for delivering on a promised turnaround.
The bankruptcy restructuring helped the “new GM” eliminate debt and build its cash, but the automaker's sales overall remain under pressure as it eliminates four unprofitable brands: Pontiac, Saturn, Hummer and Saab.
The automaker's U.S. sales were up 16 percent in the first quarter from a year earlier, when the industry was hitting its lowest levels since the early 1980s and GM was sliding toward bankruptcy.
But GM's U.S. market share of 18.7 percent in the first quarter was down from 19.6 percent for all of 2009, a year in which it lost 2.5 percentage points of U.S. share.
Thursday, April 1, 2010
Ford, Toyota soar as incentives fuel 24% industry gain
General Motors Co. posted a 21 percent increase in March U.S. sales while Toyota Motor Corp. and Ford Motor Co. rose more than 40 percent as higher incentives industrywide helped lure buyers to showrooms.
Ford, which advanced for the sixth straight month, was outsold by Toyota and GM in March after leading the industry in February. Toyota's 41 percent gain was aided by richer incentives aimed at luring buyers after its recall crisis.
"Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand,” said Jessica Caldwell, director of industry analysis at Edmunds.com. “April will be a good indicator of real consumer demand."
Overall U.S. sales rose 24 percent from the depressed levels of March 2009, when automakers were battling the weakest demand in almost three decades. The seasonally adjusted annual sales rate of 11.7 million was the year's highest and the second strongest since August, when the U.S. cash-for-clunkers campaign lifted demand
Chrysler Group fell 8 percent after posting its first monthly gain in more than two years in February. Chrysler, No. 5 in U.S. sales through February, was outsold for the second time this year by Nissan North America, which soared 43 percent.
The Hyundai brand's 15 percent increase was below analysts' forecasts of a gain of more than 30 percent.
American Honda was up 22 percent, in line with predictions. Subaru, the only automaker to post U.S. sales gains in each of the past two years, rose 46 percent.
Last month's SAAR was below the 12 million average forecast of eight analysts compiled by Bloomberg. Still, it was the fifth straight gain from a year earlier. The March 2009 pace was 9.3 million, according to Automotive News data.
Incentive discrepancy
For the first time on record, GM's per-unit incentives were below the industry average, said Susan Docherty, vice president of U.S. marketing. GM spiffs totaled $2,800 per vehicle, down nearly $2,000 from March 2009, she said. The industry averaged $2,910.
GM incentives ranked fourth highest, behind Ford Motor, Chrysler and “an import competitor,” she said.
GM, Ford and other automakers use J.D. Power and Associates data to measure incentives, Docherty said.
But Edmunds.com's incentive measure puts GM first among all automakers with $3,519 spent per vehicle last month. That compares with an industry average of $2,742, the consumer auto site says.
Both Edmunds.com and J.D. Power measure customer cash, interest and lease incentives, along with cash to dealers for specific vehicles. But J.D. Power also includes cash that automakers give dealers for meeting sales volume objectives.
Still, that shouldn't make J.D. Power's per-vehicle numbers lower for GM, said Edmunds.com's Caldwell.
“We've been doing the same thing for years, and it's weird that we're coming to a point where all of the sudden we're showing a huge discrepancy,” she said.
GM retained Chevrolet, Cadillac, Buick and GMC brands as part of its government-backed restructuring, and is selling or closing Saab, Hummer, Saturn and Pontiac, whose sales plummeted 88 percent in March. GM released results for the four remaining lines, which each posted gains of more than 40 percent, almost an hour before the complete tally.
“They haven't increased consideration for the remaining brands,” said Jim Hall, principal of the consulting firm 2953 Analytics Inc. in suburban Detroit. “Killing brands does not increase the consideration for the brands you're continuing. Obviously, they have to do that.”
Industry sales that failed to match analysts' estimates underscored the market's contraction in the recession. Annual U.S. deliveries averaged 16.8 million last decade through 2007. The 2008 total was 13.2 million, and 2009's tally of 10.4 million was the lowest in 27 years.
Automakers were buoyed in March by rising consumer confidence and spring weather after February blizzards in the Northeast. The Conference Board's confidence index rose to 52.5 from 46.4 a month earlier as gloom over job prospects began to lift.
On March 2, Toyota began offering incentives such as subsidized leases after the automaker recalled more than 8 million vehicles globally to fix defects linked to unintended acceleration and to adjust brakes.
Competitors responded with their own discounts while avoiding the spending levels the industry rang up in March 2009 as GM and Chrysler added incentives ahead of their bankruptcy filings. Incentives are down 14 percent from a year earlier, according to Edmunds.com.
Ford, which advanced for the sixth straight month, was outsold by Toyota and GM in March after leading the industry in February. Toyota's 41 percent gain was aided by richer incentives aimed at luring buyers after its recall crisis.
"Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand,” said Jessica Caldwell, director of industry analysis at Edmunds.com. “April will be a good indicator of real consumer demand."
Overall U.S. sales rose 24 percent from the depressed levels of March 2009, when automakers were battling the weakest demand in almost three decades. The seasonally adjusted annual sales rate of 11.7 million was the year's highest and the second strongest since August, when the U.S. cash-for-clunkers campaign lifted demand
Chrysler Group fell 8 percent after posting its first monthly gain in more than two years in February. Chrysler, No. 5 in U.S. sales through February, was outsold for the second time this year by Nissan North America, which soared 43 percent.
The Hyundai brand's 15 percent increase was below analysts' forecasts of a gain of more than 30 percent.
American Honda was up 22 percent, in line with predictions. Subaru, the only automaker to post U.S. sales gains in each of the past two years, rose 46 percent.
Last month's SAAR was below the 12 million average forecast of eight analysts compiled by Bloomberg. Still, it was the fifth straight gain from a year earlier. The March 2009 pace was 9.3 million, according to Automotive News data.
Incentive discrepancy
For the first time on record, GM's per-unit incentives were below the industry average, said Susan Docherty, vice president of U.S. marketing. GM spiffs totaled $2,800 per vehicle, down nearly $2,000 from March 2009, she said. The industry averaged $2,910.
GM incentives ranked fourth highest, behind Ford Motor, Chrysler and “an import competitor,” she said.
GM, Ford and other automakers use J.D. Power and Associates data to measure incentives, Docherty said.
But Edmunds.com's incentive measure puts GM first among all automakers with $3,519 spent per vehicle last month. That compares with an industry average of $2,742, the consumer auto site says.
Both Edmunds.com and J.D. Power measure customer cash, interest and lease incentives, along with cash to dealers for specific vehicles. But J.D. Power also includes cash that automakers give dealers for meeting sales volume objectives.
Still, that shouldn't make J.D. Power's per-vehicle numbers lower for GM, said Edmunds.com's Caldwell.
“We've been doing the same thing for years, and it's weird that we're coming to a point where all of the sudden we're showing a huge discrepancy,” she said.
GM retained Chevrolet, Cadillac, Buick and GMC brands as part of its government-backed restructuring, and is selling or closing Saab, Hummer, Saturn and Pontiac, whose sales plummeted 88 percent in March. GM released results for the four remaining lines, which each posted gains of more than 40 percent, almost an hour before the complete tally.
“They haven't increased consideration for the remaining brands,” said Jim Hall, principal of the consulting firm 2953 Analytics Inc. in suburban Detroit. “Killing brands does not increase the consideration for the brands you're continuing. Obviously, they have to do that.”
Industry sales that failed to match analysts' estimates underscored the market's contraction in the recession. Annual U.S. deliveries averaged 16.8 million last decade through 2007. The 2008 total was 13.2 million, and 2009's tally of 10.4 million was the lowest in 27 years.
Automakers were buoyed in March by rising consumer confidence and spring weather after February blizzards in the Northeast. The Conference Board's confidence index rose to 52.5 from 46.4 a month earlier as gloom over job prospects began to lift.
On March 2, Toyota began offering incentives such as subsidized leases after the automaker recalled more than 8 million vehicles globally to fix defects linked to unintended acceleration and to adjust brakes.
Competitors responded with their own discounts while avoiding the spending levels the industry rang up in March 2009 as GM and Chrysler added incentives ahead of their bankruptcy filings. Incentives are down 14 percent from a year earlier, according to Edmunds.com.
Monday, June 8, 2009
Rough Idle
OK here we go........2000 Pontiac sunfire gt 2.4 litre engine 180 000 Km Rough idle started suddenly one morning......things ive tried and tested.....changed spark plugs twice replace throttle body gasket replaced intake manifold gasket tried new coils checked engine compression all between 216-222 psi checked engine vacuum not steady but between 14-15" mercury added two cans combustion chamber cleaner no check engine soon light!!!my GM mechanic had it for three hours could not find anything added one can injector cleaner thing i havent checked evap egr catalityc converter fuel pressure engine idles rough only, when it gets above 1500 rpm it disappears but it takes longer than usual to come back to idle speed , all this happens hot or cold....... Hope you can help or suggest............Rick
Answer:
Your problem you say is below 1500 rpm and that the vehicle runs fine above 1500 rpm. I would say you need to replace the I A C valve (idle air control). The I A C only functions at or below 1500 rpm. This is a common issue with GM engines. If you have replaced the intake manifold gasket , this should be fairly simple for you. Also when you remove the old I A C clean any excessive carbon that may be present.
Let me know of your progress.
Answer:
Your problem you say is below 1500 rpm and that the vehicle runs fine above 1500 rpm. I would say you need to replace the I A C valve (idle air control). The I A C only functions at or below 1500 rpm. This is a common issue with GM engines. If you have replaced the intake manifold gasket , this should be fairly simple for you. Also when you remove the old I A C clean any excessive carbon that may be present.
Let me know of your progress.
Tuesday, April 14, 2009
GM to profit from the Obama bankruptcy plan
General Motors will used the economy excuse to file for bankruptcy on there US business even though GM World Wide is quite profitable.
Years ago GM spun off its worst and called it Delphi in an effort to shake Unions and cut costs. For the past 10 years GM has been shutting down plants and moving there companies out of the US to further shake out Unions. Now with The federal government using US Citizens tax money to further GM movement to shut down plants and move more jobs out of the country, GM wants to take it one step further.
If GM does carry through with filing for bankruptcy, it may allow them to get out of paying any insurance and RETIRMENT benefits to its dedicated employees. Several months ago GM saw an opportunity to rid themselves of the Contracts they agreed upon and it looks like they just might get away with it. Best of all they can blame it on the Obama Administration for suggesting that is the only way out.
Years ago GM spun off its worst and called it Delphi in an effort to shake Unions and cut costs. For the past 10 years GM has been shutting down plants and moving there companies out of the US to further shake out Unions. Now with The federal government using US Citizens tax money to further GM movement to shut down plants and move more jobs out of the country, GM wants to take it one step further.
If GM does carry through with filing for bankruptcy, it may allow them to get out of paying any insurance and RETIRMENT benefits to its dedicated employees. Several months ago GM saw an opportunity to rid themselves of the Contracts they agreed upon and it looks like they just might get away with it. Best of all they can blame it on the Obama Administration for suggesting that is the only way out.
Sunday, April 5, 2009
Heater Blower Motor doesn't work in my 2007 Chevy Silverado
GM TRUCK
Inoperative blower motor.
Inoperative blower motor.
The blower motor on some 2007 - 2008 Chevy Silverado and GMC Sierra extended cab and crew cab models built before 4/1/08 may fail to operate. If the fuse is good and the circuit up to the motor has power, says GM, the motor has probably failed. Water intrusion is the likely villain. Installing an upgraded blower motor with a new-design moisture shield (Part No. 25973845) should prevent further trouble.
Saturday, March 21, 2009
My Electric Power Seats are not working?
Power Seat Wiring Diagram The power motor that operates the up down motion on the front of the passenger seat is not functioning on my 2000 Silverado. IS this common and what are my options?
Answer:
The seat motors can bind up if run all the way up or down. First check for a blown fuse. It is easy enough to turn the drive with pliers to free it up. If it doesn't turn it is bound. Remove the motor and try to turn it again. If it still doesn't turn then the seat base will need replaced. If it does turn plug the motor in and test it to see if it runs. If the motor does run it may be week from a bad armature or worn brushes. If the motor doesn't run check for power and ground at the motor connector. If it has power and ground the motor is no good. If it doesn't have power and ground The module is probably no good. Verify power and ground at the module before you condemn it.
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