June 27, 2008
The Detroit auto industry appeared to be imploding Thursday, according to USA Today.
Shares of General Motors (GM) stock hadn't traded so cheaply since the 1950s. Ford Motor (F) stock was at a 52-week low. Privately held Chrysler doesn't trade but still felt compelled to deny a rumor that it will file for bankruptcy protection.
Posted by Peter C. T. Elsworth 
at 9:53 AM | Permalink
June 19, 2008
The Hummer brand could be sold in the near future and if it is, analysts say the buyer won't be a familiar one but instead might come from Russia, India or China, according to The Detroit Free Press.
Speculation about the future of the military-style brand that epitomizes the in-your-face, gas-guzzling SUV began at General Motors Corp.'s annual meeting June 3, when Chairman and Chief Executive Officer Rick Wagoner said the company is considering "all options" for the brand: from a complete revamp of the product lineup to a partial or complete sale.
But with oil prices continuing to rise and Americans making an about-face from trucks to cars and more fuel-efficient crossovers, many analysts say the future of Hummer as a GM brand looks bleak.
Posted by Peter C. T. Elsworth at 10:12 AM | Permalink
May 29, 2008
DETROIT -- General Motors Corp. said Thursday that a quarter of its U.S. hourly workers will take the company's latest buyout and early retirement offers, opening the door for new hires who will make less money, according to the Associated Press.
The automaker said Thursday that 19,000 workers had agreed to take the buyout offers and leave the company by July 1. GM offered buyouts to all 74,000 of its U.S. hourly workers in February.
Posted by Peter C. T. Elsworth at 2:59 PM | Permalink
May 6, 2008
The United Auto Workers' trike against General Motors' Fairfax plant near Kansas City could not come at worse time for the company because it affects the production of the Chevrolet Malibu, won of the few bright lights on GM's radar screen.
Not only did the Malibu get rave reviews when it came out last year, but its sales were up a healthy 40 percent in April - when GM's overall sales were off 16 percent.
GM is already suffering from a strike at a plant in Delta Township, Mich., according to USA Today.
Meanwhile, a strike against American Axle has slowed production of its trucks and SUVs, but the company is taking advantage of the slowdown to reduce production of vehicles that are not selling well.
Posted by Peter C. T. Elsworth at 4:47 PM | Permalink
April 30, 2008
The worsening U.S. economy is forcing General Motors to slash production of its big pickups and SUVs. It will trim operations at four key truck plants, reducing production by a whopping 143,000 vehicles, according to thecarconnection.com
Even barring further cutbacks, which industry observers fear could follow, those plants will produce 15 percent fewer vehicles this year than in 2007.
Making matters worse, GM is facing a series of labor problems that could cripple other assembly operations – on top of an ongoing labor dispute at a key supplier that has already shuttered 30 GM factories.
Posted by Peter C. T. Elsworth at 1:21 PM | Permalink
DETROIT -- General Motors Corp. struggled to a $3.3 billion first-quarter loss, due in part to a weak U.S. market, a strike at a major parts supplier and plummeting sales of sport utility vehicles and pickups, according to the Associated Press.
The nation's biggest automaker also cut its industrywide U.S. sales outlook for the year. GM disclosed earlier this week it was cutting production of some of its slow-selling trucks and SUVs.
But its earnings excluding one-time items beat Wall Street expectations, and GM shares rose more than 13 percent.
Posted by Peter C. T. Elsworth at 1:18 PM | Permalink
April 23, 2008
DETROIT -- Toyota has taken the global automotive sales lead from General Motors, selling 2.41 million vehicles to GM's 2.25 million over the first three months of the year, according to the Associated Press.
GM said Wednesday its first-quarter sales dropped across the globe by less than 1 percent, but Toyota said its sales were up 2.7 percent during the January-March period.
GM barely won the global sales race with Japan-based Toyota Motor Corp. last year. But Toyota overtook General Motors Corp. as the world's top automaker as measured by global vehicle production in 2007.
Posted by Peter C. T. Elsworth at 11:13 AM | Permalink
April 21, 2008
Buick is using the Beijing auto show to unveil the Invicta show car, expected to be the replacement for the LaCrosse midsize sedan in the USA, according to USA Today.
The concept car on display at Auto China 2008 is, in fact, a modified version of the production vehicle, according to veteran auto industry analyst Jim Hall, managing director of 2953 Analytics based in Birmingham, Mich.
Posted by Peter C. T. Elsworth at 10:14 AM | Permalink
March 28, 2008
DETROIT — If General Motors were to design a president and chief operating officer from scratch, the new model would probably look a lot like Frederick A. Henderson, according to The New York Times.
Born in Detroit and the son of a sales manager in G.M.’s Buick division, Mr. Henderson rose through the automaker’s finance ranks and parts division to head its operations in Latin America, then Asia and Europe.
When G.M. appeared headed for bankruptcy in early 2006, he was tapped as chief financial officer, and played a major role in shaping G.M.’s North American turnaround plan and negotiating a contract with the United Automobile Workers.
Now Mr. Henderson, who is known as Fritz, is charged with accelerating G.M.’s growth around the world while steering its comeback effort at home.
Posted by Peter C. T. Elsworth at 1:39 PM | Permalink
March 17, 2008
Even as gas prices rise, more automakers are breaking the price barrier on what used to be a privilege for the rich: the 300-horsepower engine, according to USA Today.
On Wednesday, Hyundai unveils the production version of its 2010 Genesis sports coupe with a 306-hp V-6 engine that the company bills as offering the maximum horsepower for the buck.
The price has not been set for its fall debut, but spokesman Miles Johnson says the Genesis four-seater will cost less than a Ford Mustang GT, which comes with a 300-hp engine, at $26,080.
Also bringing power to the people for less than 30 grand: General Motors' 361-hp Pontiac G8 GT and 303-hp Chevrolet Impala SS and Nissan's 306-hp 350Z.
Posted by Peter C. T. Elsworth at 9:54 AM | Permalink
March 14, 2008
DETROIT -- General Motors Corp. is recalling 207,542 Buick Regal and Pontiac Grand Prix sedans over a risk they could catch fire, and warned their owners not to park the cars in garages until they are fixed, according to the Associated Press.
The automaker said Friday it is recalling the 1997-2003 Buick Regal GS and Grand Prix GTP models with 3.8-liter supercharged V-6 engines.
During hard braking, drops of oil can leak from the engine onto the exhaust manifold, and fires can start if the oil gets hot enough, the National Highway Traffic Safety Administration said on its Web site.
Posted by Peter C. T. Elsworth at 3:41 PM | Permalink
February 13, 2008
Despite a historic new labor agreement, a garage full of new products and $9 billion in cost-cutting over the last two years, General Motors' release of its worst-ever annual financial results Tuesday shows that its North America division is still struggling to post the profits that Wall Street expects, according to The Detroit Free Press.
GM Chief Financial Officer Fritz Henderson acknowledged "there are still a number of near-term challenges," but overall he seemed positive about the progress GM has been making.
Posted by Peter C. T. Elsworth at 11:43 AM | Permalink
February 6, 2008
Chevrolet will introduce a model at the Chicago Auto Show today that promises to become the best-selling member of General Motors Corp.'s acclaimed family of crossovers, according to the Detroit Free Press.
The Chevrolet Traverse seats seven or eight people and shares its major mechanical systems with the Buick Enclave, GMC Acadia and Saturn Outlook. While those three models come from a plant in Lansing, GM will use its entire Spring Hill, Tenn., assembly plant to build the Traverse.
Posted by Peter C. T. Elsworth at 11:24 AM | Permalink
February 4, 2008
The Chicago auto show has a reputation as a truck show, and it won't give much ground on that this year. General Motors, especially, is rolling out an intriguing array of trucks not seen at the Detroit show last month — or anywhere else, according to USA Today.
Other automakers have a variety of models top show, including sleek coupes and updated sedans. Dodge is unveiling the production version of the Challenger at the show.
Posted by Peter C. T. Elsworth at 12:16 PM | Permalink
DETROIT -- General Motors Corp. will introduce a new hybrid full-size pickup and a concept hybrid truck this week at the Chicago Auto Show, betting that pickup drivers have been itching to jump on the hybrid bandwagon, according to the Associated Press.
GM says the 2009 GMC Sierra hybrid gets a 25 percent improvement in fuel economy without compromising performance, while its GMC Denali XT concept - a low-slung, muscular utility vehicle - gets 50 percent better fuel economy than a comparable small pickup.
The Sierra is the next large GM vehicle to get the company's new two-mode hybrid system, which has also been introduced on the Chevrolet Tahoe and GMC Yukon sport utility vehicles and the Chevrolet Silverado pickup. The SUVs are expected to go on sale early this year, while the Silverado and Sierra are scheduled to hit the market at the end of 2008.
Posted by Peter C. T. Elsworth at 11:51 AM | Permalink
February 1, 2008
Automakers report their U.S. sales for January today amid a continuing economic slowdown. But new information about last year's showroom sales already reveals who has momentum in the struggling market, according to the Detroit Free Press.
Ford was the biggest loser in U.S. retail sales last year, dropping nearly a full percentage point of retail market share, according to the latest retail sales estimates provided exclusively to the Free Press by the Power Information Network.
In all, Ford's share dropped from 15.1% in 2006 to 14.2% last year, a decline that represents about half the production for an assembly factory.
Meanwhile, Toyota and Honda picked up most of Ford's decline in the U.S. market. And General Motors has stabilized its retail share, with about 22% of the U.S. market.
Posted by Peter C. T. Elsworth at 10:18 AM | Permalink
January 30, 2008
DETROIT -- U.S. automobile prices could rise significantly in the near future because of industry restructuring and rising raw material and regulatory costs, General Motors Corp.'s chief financial officer said Tuesday, according to the Associated Press.
Fritz Henderson said the industry has less manufacturing capacity than in the past and therefore less pressure to sell vehicles cheaply just to move inventory.
It also faces higher raw materials costs, rising technology costs and increased costs from fuel economy and other government regulations, he said.
Posted by Peter C. T. Elsworth at 10:41 AM | Permalink
January 24, 2008
General Motors and Toyota are in a neck-and-neck competition when it comes to U.S. customer loyalty, according to the Detroit Free Press.
GM had the top loyalty for manufacturers during the 2007 model year, while Toyota was tops for brand loyalty, according to the 12th annual Polk Automotive Loyalty Awards.
Posted by Peter C. T. Elsworth at 9:42 AM | Permalink
January 23, 2008
DETROIT -- General Motors said Wednesday it sold 9,369,524 vehicles worldwide last year, up 3 percent from 2006 but putting it into a virtual dead heat with fast-rising Toyota for the 2007 global sales crown, according to the Associated Press.
Earlier this month, Toyota reported global sales of 9.37 million vehicles, but the Japanese automaker did not release a number down to the last vehicle sold, leaving the sales race too close to call.
Detroit-based GM has held the title of world's largest automaker for 76 years, but Toyota's strong U.S. growth and GM's U.S. sales decline helped Toyota move closer to the top spot in recent years.
Posted by Peter C. T. Elsworth at 9:57 AM | Permalink
January 18, 2008
General Motors will offer retirement incentives to 46,000 of its hourly workers next month as part of a plan to cut labor costs, Chairman and Chief Executive Officer Rick Wagoner said during a presentation to analysts Thursday afternoon, according to the Detroit Free Press.
The analysts were encouraged by the move to shore up GM's sinking stock price and said they expected up to 20,000 workers to accept offers to leave.
That would allow the company to hire workers in nonassembly jobs at much lower cost under the UAW contract completed last fall, saving the company billions.
It wasn't known Thursday exactly who will be eligible or what will be offered. GM has 73,000 hourly workers.
Posted by Peter C. T. Elsworth at 10:00 AM | Permalink
January 7, 2008
DETROIT -- Cars that drive themselves - even parking at their destination - could be ready for sale within a decade, General Motors Corp. executives say, according to the Associated Press.
GM, parts suppliers, university engineers and other automakers all are working on vehicles that could revolutionize short- and long-distance travel. And Tuesday at the Consumer Electronics Show in Las Vegas GM Chief Executive Rick Wagoner will devote part of his speech to the driverless vehicles.
Posted by Peter C. T. Elsworth at 10:55 AM | Permalink
A new gas-electric Saturn Vue hybrid will leapfrog models like the Toyota Highlander hybrid to become the world’s most fuel-efficient V6 SUV when it goes on sale late this year, General Motors promises, according to the Detroit Free Press.
The Vue Green Line 2 Mode will debut at the North American International Auto Show in Detroit later this month.
Posted by Peter C. T. Elsworth at 10:26 AM | Permalink
January 4, 2008
NORWALK, Calif. — Instead of the stampede to inquire about year-end clearance sales, customers have been calling Ford dealer Norman Stutzke lately to offer condolences.
Stutzke shut down Keystone Ford this week after 39 years, one of hundreds of dealerships that face the ax around the country as Detroit's automakers downsize their retail operations, according to USA Today.
Having shuttered factories and eliminated hundreds of thousands of automaking jobs, Ford Motor, General Motors and Chrysler are now turning their attention to weeding out weaker dealers in bigger metro markets. They make fewer vehicles, so they don't need as many places to sell them.
Posted by Peter C. T. Elsworth at 12:27 PM | Permalink
December 20, 2007
The fastest, most powerful and most expensive Chevrolet Corvette ever will roar to life at the North American International Auto Show in Detroit next month, according to the Detroit Free Press.
Boasting a 620-plus horsepower V8 and a price expected around $100,000, the 2009 Corvette ZR1 is the result of General Motors chairman Rick Wagoner's challenge to build the ultimate Corvette.
The ZR1 aims to match the performance of supercars like the 612-horsepower $273,845 Ferrari 599 GTB Fiorano F1 coupe, which accelerates to 62 m.p.h. in 3.7 seconds.
"Our goal with the ZR1 is to show that an American supercar can deliver performance that beats exotics that cost two, three or four times as much," Chevrolet general manager Ed Peper said.
Posted by Peter C. T. Elsworth at 11:40 AM | Permalink
NEW YORK - General Motors will sell its profitable medium-duty truck unit to Navistar International, The Wall Street Journal Online reported on Wednesday.
An announcement is expected on Thursday, the Journal reported, citing people familiar with the agreement. The report did not include terms of the sale.
Navistar spokesman Roy Wiley said that while the truck and engine maker was "very excited" at the prospect of buying GM's medium-duty truck unit, he could not confirm that an announcement would be made on Thursday. Navistar is manufacturer and marketer of medium and heavy trucks and mid-range diesel engines
GM, which did not immediately return calls seeking comment, sells the medium-duty trucks under the nameplates Kodiak, TopKick and Isuzu T-Series. It made 59,000 medium-duty trucks in 2006, about 12 percent of the market.
Posted by Peter C. T. Elsworth at 11:32 AM | Permalink
December 19, 2007
Hurd Auto Mall is acquiring Wigwam Saab of North Providence in a deal that closes Jan. 2, according to President Chris Hurd.
"We're very excited about it," he said in an interview. "(Wigwam) has very, very loyal clientele and (the acquisition) fits into our menu of offerings."
"I've always had my eye on Saab," he said. "They have a fantastic product and I have been approaching (Wigwam) for years."
Wigwam President Don Gregson confirmed the deal and said that not only Chris Hurd but his father, the late Judd Hurd, had talked about acquiring the franchise.
Gregson said Wigwam on Charles Street has been selling Saabs since July 1958 when his father ran the dealership. It had previously sold Indian Motorcycles "which explains the name Wigwam."
He said he and his brother Dean decided to sell to Hurd because they wanted to retire along with their sister Drusilla and had been offered a good price by Hurd, who declined to disclose terms of the deal.
"We are very fond of Saab, of our customers and our employees, but the autombile business is very taxing today, both physically and mentally," he said.
"We are happy to sell to Chris Hurd because we have never heard a bad word about him," he added.
Hurd said the Saab franchise would be incorporated into the existing buildings at the Hurd Auto Mall on Hartford Avenue, adding that he expects a number of Wigwam employees to come over to the mall.
He said General Motors was supportive of the deal, partly because it has owned Saab since 2000. Hurd is an exclusive GM dealer, with buildings devoted to Chevrolet, Hummer and Buick-Pontiac-GMC.
He also said he intends to buy a Saab from Wigwam. "I want to start driving one now," he said.
Posted by Peter C. T. Elsworth at 2:26 PM | Permalink
DETROIT — General Motors said Tuesday it is raising prices on its 2008 model year vehicles an average of 1.5% to help cover increasing steel and commodity costs, according to the Associated Press.
The increases are effective with vehicles invoiced to dealers starting Wednesday and will not affect vehicles already in dealer inventory, the automaker said.
The price of most cars and trucks will increase by $100 to $500, but the prices of certain vehicles in more competitive segments will not increase at all, said Mark LaNeve, GM North America vice president for vehicle sales, service and marketing.
GM's U.S. sales dropped 11% in November from one year earlier, hurt by falling demand for trucks as well as cuts in sales to low-profit rental car fleets. GM's sales were down 6% for the first 11 months of the year.
Separately, GM said it will offer buyouts and retirement incentives to 5,200 hourly workers represented by the United Auto Workers.
GM would not reveal how many workers it expects to leave under the program, but said 5,200 are eligible.
Posted by Peter C. T. Elsworth at 10:29 AM | Permalink
December 18, 2007
DETROIT - General Motors Corp (GM.N: Quote, Profile, Research) said on Tuesday it has reached an agreement with the United Auto Workers union to offer a new round of buyouts to its U.S. hourly workers, according to Reuters.
GM said the buyouts will include a combination of early retirement incentives and other programs similar to the ones offered in 2006.
Specific program details will be rolled out to employees beginning in January, the automaker said.
Posted by Peter C. T. Elsworth at 2:27 PM | Permalink
December 12, 2007
AS Honda prepares to lease a handful of fuel-cell cars to consumers, General Motors is offering its own hydrogen cars free, according to the New York Times.
G.M. is preparing a January rollout of Project Driveway, which will park more than 100 Equinox Fuel Cell crossover wagons with selected drivers in Westchester County, N.Y.; Orange County, Calif.; and Washington, D.C.
G.M. said the research project would give it the world’s largest fleet of fuel-cell cars driven by consumers, who can apply for no-cost, three-month tests of the Equinox at chevrolet.com/fuelcell. For recipients of the Equinox, each valued at up to $1 million, G.M. will even cover the cost of hydrogen fuel and insurance.
Posted by Peter C. T. Elsworth at 4:46 PM | Permalink
General Motors accounts for four of the six finalists for 2008 North American Car and Truck of the Year, the panel of journalists who present the award announced in a news conference at Cobo Center in Detroit today, according to the Detroit Free Press.
The Cadillac CTS sport sedan and Chevrolet Malibu midsize sedan are finalists for car of the year. The Buick Enclave crossover SUV and Chevrolet Tahoe hybrid SUV are finalists for truck of the year. The other finalists are the Honda Accord midsize sedan and Mazda CX-9 crossover SUV.
The winners will be announced at a news conference of the North American International Auto Show in Detroit Jan. 13.
Posted by Peter C. T. Elsworth at 4:35 PM | Permalink
December 4, 2007
DETROIT — General Motors and Ford, struggling to keep turnaround plans on track, both said Monday that they would cut production in the first quarter because of slowing sales, according to the New York Times.
G.M. said it expected to produce 950,000 vehicles from January through March, down 11 percent from the same period in 2007. Ford said it planned to build 685,000 vehicles in the first quarter, a 7 percent decline.
Posted by Peter C. T. Elsworth at 12:53 PM | Permalink
The 2008 Chevrolet Malibu and Cadillac CTS have been named by Car and Driver magazine as among the 10 best cars sold in the U.S., each for the first time, according to the Detroit Free Press.
The Honda Accord made the list for a 22nd time.
The BMW 3-Series and the Chevrolet Corvette were included for the 17th and 14th year in a row respectively.
Car and Driver editors rated vehicles on performance, driving satisfaction and value.
Rounding out the top 10 were the Honda Fit, Mazda MX-5, Mazdaspeed 3, Porsche Boxster/Cayman and Volkswagen GTI.
General Motors was the only domestic auto manufacturer to have a car named. No SUVs or trucks made the list.
Posted by Peter C. T. Elsworth at 12:50 PM | Permalink
December 3, 2007
DETROIT -- Automakers reported mixed U.S. sales results for November on Monday, with some new or more fuel-efficient models performing well despite consumer malaise over high gas prices and the weak economy, according to the Associated Press.http://hosted.ap.org/dynamic/stories/A/AUTO_SALES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2007-12-03-14-12-56
General Motors, the biggest automaker by U.S. sales, said its sales dropped 11 percent, hurt by falling demand for trucks as well as cuts in sales to rental car fleets. Ford and Toyota both reported flat sales for the month. Nissan's sales rose 6 percent.
Posted by Peter C. T. Elsworth at 2:56 PM | Permalink
Roger B. Smith, the man who set General Motors on a new and controversial course in the 1980s, has died in Detroit after a brief illness, according to thecarconnections.com. He was 82.
Smith joined General Motors in 1949 after serving as a radioman for Admiral Arleigh Burke during World War II. He was at the center of major events at the automaker, having served early on in his career to GM´s legendary Alfred P. Sloan. After working for Sloan, Smith moved steadily up through the organization during its post-World War II heyday, earning a reputation for financial acumen.
That acumen was challenged as Smith was named chairman just as the industry was shaken by a surge in oil prices, following the 1979 Iranian revolution, and new competition from Japan.
He later became the object of ridicule with the release of Michael Moore's groundbreaking satire, "Roger and Me."
Posted by Peter C. T. Elsworth at 10:54 AM | Permalink
November 21, 2007
TOKYO — An employee at a California plant run jointly by General Motors and Toyota is accusing her managers of allowing serious defects to go unchecked, including faulty seat belts and braking, and retaliating when she resisted, according to a lawsuit filed earlier this month, according to USA Today.
In the case before Alameda County Superior Court in California, Katy Cameron, a certified auditor who has worked for 23 years at New United Motor Manufacturing, says management routinely deleted or downgraded defects from her reports on vehicles since 2005.
Posted by Peter C. T. Elsworth at 9:38 AM | Permalink
November 20, 2007
Shares of General Motors Corp. fell 8.5% Monday, their largest drop in two years, on fears that vehicle sales will drop next year and that the crisis in the home-mortgage market will spill into auto-loans financing arms at both GM and Ford, according to the Detroit Free Press.
"From retail to autos, there's a significant amount of uncertainty with respect to health of the American consumer in the face of high energy costs and this lingering effect of the subprime mortgage market," said David Sowerby, portfolio manager at Bloomfield Hills-based Loomis Sayles & Co.
Posted by Peter C. T. Elsworth at 10:10 AM | Permalink
November 15, 2007
Tahoe hybrid honored: General Motors' sport-utility vehicle, the Chevrolet Tahoe hybrid, was named "Green Car of the Year" at the show Thursday, according to USA Today.
The Tahoe hybrid is the first model from GM to use a hybrid system the automaker developed jointly with BMW, Daimler's Mercedes-Benz and Chrysler.
"They've proven that they can make beautiful cars, strong cars, keep the size, keep the safety, and all those kinds of things, and at the same time be more fuel efficient," said California Gov. Arnold Schwarzenegger, who toured the show after the presentation of the award.
Posted by Peter C. T. Elsworth at 2:48 PM | Permalink
November 14, 2007
DETROIT — This year, General Motors has been getting some warm reviews for its new cars. Yet the company still has a hard time getting on drivers’ shopping lists, according to the New York Times' Micheline Maynard.
“At last, a decent midsize car from General Motors,” Automobile Magazine said of a stylish new version of the Malibu. The new Cadillac CTS is “an excellent luxury sport sedan,” raved Edmunds.com, which praised the more powerful engines that G.M. has made available on the car. And in January, the Saturn Aura was named the North American Car of the Year by auto writers.
This is all a sharp contrast to six years ago, when the legendary product expert Robert A. Lutz arrived at G.M. to take charge of vehicle development. Back then, the company was selling cars and trucks that he admits — in his typical blunt-talking fashion — he never would have parked in his vast personal garage.
Now, he says, G.M.’s new models can be compared to the best that the company’s Japanese and German competitors have to offer.
The question is, Will enough consumers compare them — and choose G.M.?
Despite Mr. Lutz’s efforts, G.M. still has a hard time getting on drivers’ shopping lists. Its market share, close to 28 percent when Mr. Lutz arrived, has dropped to just under 24 percent, in part because G.M. has pulled back on unprofitable sales to rental car companies.
But there are other factors holding G.M. back, too, that may be hard to overcome despite the improved lineup of cars.
Perhaps the biggest challenge is changing the way consumers think about its cars. The idea that G.M.’s cars have been a disaster, even if the trucks were passable, “has been so ingrained, and so hard to change,” Mr. Lutz said.
Even he acknowledges that this may take another generation of vehicles to change, meaning well into the next decade — a long time for a company that has lost billions of dollars in recent years and whose competitors keep getting better, too.
Posted by Peter C. T. Elsworth at 11:14 AM | Permalink
November 7, 2007
DETROIT -- General Motors Corp. posted a company record $39 billion loss in the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation's largest automaker, according to the Associated Press.
The loss reported Wednesday was one of the biggest quarterly corporate deficits ever, and it sent GM's shares down more than 5 percent in premarket trading.
GM attributed the third-quarter loss to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.
But accounting rules require that companies expecting to keep losing money cannot keep carrying deferred tax credits indefinitely and must write down their value.
"I think you'd have to have a Ph.D. in accounting to understand it," Wagoner said during an interview on "The Paul W. Smith Show" on WJR-AM.
"It doesn't have any impact at all," he said. "I would encourage people not to overreact in a negative way to it."
What might be considered more troubling for GM, though, is continuing losses in its home market, North America, where it reported a net loss from continuing operations of $247 million without the charge for the latest quarter. That compares with a net loss of $667 million in the year-ago period.
The company's overall net loss amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
Posted by Peter C. T. Elsworth at 9:38 AM | Permalink
November 6, 2007
IF he revisits Highway 61 yet again, chances are Bob Dylan will do it in a Cadillac Escalade, just like the one he drives in a new television commercial, according to the New York Times.
While the endorsement is a coup for Cadillac, it is not the first trip to Shillville for Mr. Dylan, 66, who has appeared in ads for Apple and Victoria’s Secret.
The spot also promotes his show on XM Satellite Radio, whose receivers are standard on Cadillacs. Making the synergistic stew even thicker, on Oct. 24 Mr. Dylan played only Cadillac-themed songs on his show.
Posted by Peter C. T. Elsworth at 11:32 AM | Permalink
November 5, 2007
General Motors says it hopes to begin pumping hundreds of hydrogen fuel-cell vehicles a year into ordinary buyers' hands through GM dealerships beginning in 2011, according to USA Today.
Though small numbers by auto-industry standards, it's the most ambitious public plan yet to bring pollution-free fuel-cell vehicles into the mainstream.
Perhaps more important, GM is "working as hard and fast as we can for competitive reasons," rather than as pure research on a promising technology, says Larry Burns, GM vice president in charge of research and development.
"I'm paranoid enough to conclude (rivals) are running on the same timeline we are," he says, citing fuel-cell research at Mercedes-Benz, Honda and others.
In other words, a race is on, and that always speeds development.
Posted by Peter C. T. Elsworth at 9:57 AM | Permalink
November 2, 2007
DETROIT — Over the last two years, the three American auto companies have vowed that their plans to slash nearly 80,000 jobs and close more than two dozen plants would be enough to transform them into leaner and nimbler competitors, according to the New York Times.
But the housing downturn and soaring oil prices have forced Chrysler and General Motors to make another round of surprising cuts, with no guarantees that these will be the last.
On Thursday, Chrysler announced it would eliminate 11,000 hourly and salaried jobs in the United States and Canada, and cut shifts of workers at five plants. The decision comes on top of a plan, announced in February, to eliminate 13,000 jobs and close a factory in Newark, Del.
Taken together, Chrysler will be reducing its 2006 work force of about 80,000 employees by 30 percent.
General Motors also recently said that it would eliminate shifts at three assembly plants in Michigan. The moves, announced after G.M. union workers approved their new contract, will most likely cut 3,000 jobs, though G.M. has not confirmed the total. Two years ago, G.M. announced 30,000 job cuts as part of a broad revamping.
Posted by Peter C. T. Elsworth at 7:16 AM | Permalink
October 31, 2007
MEMPHIS, Tenn. -- With its reputation on the mend, sales of new cars and crossovers exceeding expectations, and a new labor deal projected to cut billions from its annual costs, General Motors is in its best situation in decades, Vice Chairman Bob Lutz said Tuesday, according to the Detroit Free Press.
In a wide-ranging interview with the Free Press, Lutz said he wants to make up to 100,000 fuel-efficient Chevrolet Volts in the first year of production. The first batteries were delivered Tuesday, he said.
He also said that the new UAW contract provides a big boost to GM, as well as rivals Chrysler, which also has a new contract ratified with the UAW, and Ford, which is in the midst of negotiations.
"The labor cost gap to the Japanese transplants have been narrowed, but they have not been closed," by the new UAW contract, Lutz said. "It's closer than it ever was before. That's good for a five-minute celebration, but then you say, 'Well, now what?' "
The big fear now, Lutz said, is "ill-conceived" government-imposed fuel economy standards at the state or federal level.
Posted by Peter C. T. Elsworth at 9:53 AM | Permalink
October 30, 2007
WHITE MARSH, Md. -- It's just a transmission -- a chunk of cast metal and plastic found in every car and truck that most owners never think about unless it breaks.
But for General Motors Corp., the first transmission off the line Monday for its new hybrid system marks its most aggressive attempt to fight Toyota's hybrid juggernaut, according to the Detroit Free Press.
The parts built at a plant outside of Baltimore will be bolted into GM's full-size SUVs hitting dealerships in the next several weeks and into some pickups next year. The SUVs will match the city fuel economy figures of a gasoline-powered Toyota Camry sedan.
Posted by Peter C. T. Elsworth at 10:50 AM | Permalink
October 29, 2007
Saab will launch the Turbo X at the New England International Auto Show in Boston. The press day on Nov. 27 will mark the North American debut of the Saab Turbo X – a performance car that sets new standards for the brand.
The all-black Turbo X takes Saab ‘back to the future’ by evoking the iconic appeal of its first black 99 and 900 Turbo models. It also introduces innovative Saab XWD all-wheel drive technology.
Saab of Sweden is a subsidairy of General Motors
Posted by Peter C. T. Elsworth at 3:56 PM | Permalink
BEIJING -- General Motors Corp. said Monday it will set up a $250 million alternative-fuel research center in Shanghai amid efforts by global automakers to produce commercially viable alternatives to gasoline engines, according to the Associated Press.Global automakers are stepping up research into fuel cells, biofuels, diesel and other power sources amid rising demand from governments and consumers for cleaner transportation and an alternative to expensive oil.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
October 16, 2007
General Motors isn't giving away any of the specifics just yet, but it does have a seven- and even an eight-speed automatic transmission tucked away in its product development cycle, according to thecarconnection.com
Jim Lanzon, executive director of GM Powertrain's Transmission Engineering, acknowledged last week GM is looking at the transmissions that have begun showing up on luxury models such as the BMW M5.
"I can't give away any new product news but we're looking at everything," he said.
One of the issues GM is wrestling with now is whether a seven- or eight-speed transmission will produce the kind of gains in fuel economy that would justify the cost of engineering them into a vehicle, Lanzon said.
Posted by Peter C. T. Elsworth at 10:28 AM | Permalink
October 15, 2007
Chalk up this past week as a big win for the home team, Detroit's three automakers, writes Tom Walsh of the Detroit Free Press.
General Motors workers ratified a new labor contract by a ratio of nearly 2-1.
Chrysler and the UAW forged a new tentative pact with only a hiccup of a 6-hour work stoppage.
Ford Motor Co. lured marketing hotshot Jim Farley away from Toyota Motor.
GM stock surged past $40 a share for the first time in more than two years, closing at $42.64, up 11.6% on the week. Ford shares rose 10% to $9.20.
If it's too early for Detroit to declare victory over automotive competitors from Japan, Korea and Europe -- and yes, it is too early -- we can at least enjoy this spate of good fortune for our much-maligned home team.
Still skeptical? OK, but have a listen to Maryann Keller, a relentless critic of Detroit's auto industry for the past three decades as a Wall Street analyst, author, consultant and now a director of two auto-related companies, Lithia Motors and Dollar Thrifty Automotive.
"For the first time in 30 years I think that Detroit is going to finally turn around," Walsh said Keller told him Friday.
"The cars are better, the management is smarter and the costs are down with these new contracts. The UAW and Big 3 have finally figured out how to save each other and create a headache for the Japanese."
Posted by Peter C. T. Elsworth at 11:51 AM | Permalink
DETROIT -- A new four-year contract between General Motors and the United Auto Workers will transfer an estimated $46.7 billion worth of retiree health care liability from the company to the union, the company said Monday, according to the Associated Press.
That leaves GM with about $17.6 billion in retiree health care for salaried employees and other obligations, the company said. It was the first time GM has detailed its savings from the agreement.
"The 2007 national negotiations were in many ways the most complex and comprehensive that we've been engaged in," Rick Wagoner, GM chief executive and chairman, said during a conference call to explain the labor deal.
Posted by Peter C. T. Elsworth at 11:15 AM | Permalink
October 10, 2007
DETROIT — The United Auto Workers says it knows it needs to help Detroit's automakers cut labor costs to reduce the gap in production expenses with Asian rivals. But as talks continue on new contracts, the union also is questioning why top executives at the automakers are paid what they are, according to USA Today.
"As much as workers do, workers can't do enough, and as much as executives get, they cannot get enough," UAW President Ron Gettelfinger said during last month's two-day strike against General Motors.
During talks with GM, the UAW pointed out that while the automaker has complained that hourly wages and benefits are dragging it down, it has continued awarding bonuses to its top executives.
GM CEO Rick Wagoner earned $9.3 million in salary and bonus in 2006, nearly double what he earned in 2005.
Posted by Peter C. T. Elsworth at 9:51 AM | Permalink
October 5, 2007
Some 412,000 General Motors Corp. workers, retirees and their families will have fewer health and dental options, including higher co-pays and restrictions on doctor visits, under a tentative UAW contract, according to the Detroit Free Press.
UAW-GM workers and retirees still will have comprehensive health coverage, some of the best in the nation. And some benefits would be improved if workers ratify the contract in voting that stretches into next week.
But autoworkers wouldn't have as many choices in health and dental plans as they do now, according to a 24-page summary of contract provisions from the UAW.
Posted by Peter C. T. Elsworth at 9:35 AM | Permalink
October 4, 2007
DETROIT - General Motors Corp will be able to replace roughly a quarter of its factory workers with lower cost hires under the tentative contract reached last week with the United Auto Workers union, according to Reuters.
The tentative contract identifies "in excess of 16,766" union-represented jobs that could be filled with new hires at roughly half the cost of current workers, according to a text of the document.
A majority of GM's 73,500 UAW-represented workers must ratify the proposed contract in a series of local votes expected to conclude next week.
Posted by Peter C. T. Elsworth at 12:01 PM | Permalink
October 3, 2007
Despite a difficult overall market, General Motors and Ford found a receptive audience for new and redesigned vehicles in September, giving hope that their evolving lineups could win back U.S. customers, according to the Detroit Free Press.
GM reported Tuesday U.S. sales in September of 334,974, up 0.3% from the same month last year. Sales of the redesigned Cadillac CTS were up 66.8% to 6,416.
Ford's U.S. sales, hurt by slumping truck figures, dropped 20.4% to 189,037. But a redesigned Escape was a bright spot with sales increasing 10.3% to 11,132.
GM and Ford were not the only automakers helped by new products. Sales for Honda Motor Co., which launched a redesigned Accord in September, were up 9.4% to 127,000.
Nissan was up 6.7% to 94,269 thanks largely to the Altima, redesigned in late 2006. A new coupe version was added this year.
Toyota's U.S. sales fell 4.4% in September to 213,043 vehicles, marking the third straight month of declines.
Chrysler LLC's sales were down 5.4% to 159,799. The Auburn Hills automaker emphasized that Jeep brand sales were down 10.6% to 37,460 in September because of a planned fleet reduction.
Posted by Peter C. T. Elsworth at 10:17 AM | Permalink
The pickup wars intensified Tuesday as Toyota announced new cut-rate versions of its full-size Tundra amid flat industrywide September sales in the hotly contested segment, according to USA Today.
The pickup developments were a facet of a September in which General Motors showed a slight sales gain for the second-consecutive month among all its divisions.
By contrast, second-place Toyota saw its sales drop 4% compared with the same month last year, Autodata reported. Ford took the biggest hit with a decline of 20.4% overall, and most painfully, 15% in the most-coveted sales to individual retail customers.
Overall, sales were down 2.9% for the month. After the first three quarters of the year, the industry remains down by almost the same amount it was at this time in 2006. Ford predicts the final tally for the year will make it the worst for automakers since 1998.
Posted by Peter C. T. Elsworth at 10:14 AM | Permalink
October 2, 2007
DETROIT — General Motors solved one problem this week by reaching a deal with the United Automobile Workers. Now it hopes its new Chevrolet Malibu will help solve another: winning sales and market share back from its Japanese rivals, according to the New York Times.
For years, family sedans have been a lower priority for General Motors and the other Detroit automakers. They focused instead on big trucks and sport utility vehicles, which earned tidy profits, while letting Toyota and Honda dominate the less lucrative market for cars.
Posted by Peter C. T. Elsworth at 9:38 AM | Permalink
The tentative contract between General Motors and the UAW could quickly wipe out more than half the gap in labor costs between GM and Toyota, pulling Detroit ever closer to its Japanese rivals, according to industry experts cited by the Detroit Free Press.
And the gap should shrink further -- to about 6% by one estimate -- as lower-paid workers replace more-senior union members over time.
Posted by Peter C. T. Elsworth at 9:33 AM | Permalink
Ford and Chrysler probably lost U.S. market share last month as consumers spurned their pickups and SUVs in favor of fuel-efficient cars made by Honda, according to the Detroit Free Press.
Sales at Ford may have plunged 15% from a year earlier while Chrysler's fell 5.9%, according to the average estimates of seven analysts in a Bloomberg survey. Honda sales probably rose 9% while General Motors' gained 1%, helped by discounts, analysts said.
Posted by Peter C. T. Elsworth at 9:26 AM | Permalink
October 1, 2007
DETROIT -- The tentative contract between General Motors Corp. and the United Auto Workers would allow GM to close a plant each in Michigan and Indiana and possibly shut down several other facilities, according to a detailed copy of the agreement, according to the Associated Press.
The moves are the downside of job security pledges that the UAW won in the negotiations, including commitments for new products at 16 plants. About 74,000 hourly GM workers will vote on the pact starting this week, with a final tally to be done by Oct. 10.
Posted by Peter C. T. Elsworth at 9:39 AM | Permalink
September 28, 2007
NEW YORK - General Motors Corp would be able to buy out as many as 24,000 UAW workers and replace them with lower-paid hires under a tentative contract agreement, according to Reuters citing a Wall Street Journal report on its Web site.
Such a potential buyout stems from a move by the union to expand the definition of non-production job classifications, the article said, citing management and union officials briefed on the pact.
GM will be able to hire at a much lower pay package janitors, landscape workers and material handlers, the report said.
It will also be allowed to define some entry-level production work and skilled-trade positions as a "non-core position," whereby they get paid about half or less of the $70-to-$75 an hour wage-and-benefit package traditionally given UAW members, the report said.
Those workers would have the opportunity later to transfer to the higher-paying production jobs, the report said.
Posted by Peter C. T. Elsworth at 9:27 AM | Permalink
UAW local leaders are expected to meet in Detroit this morning to learn the much-awaited official details of the tentative agreement reached early Wednesday between the union and General Motors Corp., as UAW President Ron Gettelfinger and other union officials work to get the deal ratified, according to the Detroit Free Press.
Today is the first time the union will broadly distribute the specifics of a landmark deal that restructures retiree health care, introduces a two-tier wage system and eliminates wage increases for the duration of the 4-year contract. And the union's more than 73,000 GM workers are anxious to see the hard facts.
Posted by Peter C. T. Elsworth at 9:23 AM | Permalink
September 27, 2007
With a tentative agreement in hand with General Motors, the UAW expects to move quickly to lock in similar labor contracts with Chrysler and Ford, according to the Detroit Free Press.
"I think the pattern bargaining is still very much in play," UAW President Ron Gettelfinger said shortly after announcing the GM deal. "We expect this will basically be the same agreement."
Gettelfinger suggested that the UAW may try to finish up talks with Chrysler and Ford simultaneously.
During the past two contract talks, it took the UAW between 20 and 40 days from the day the first tentative agreement was reached until deals with all three automakers were ratified. If that holds true, a deal with all three of Detroit's automakers could be wrapped up in a month.
Posted by Peter C. T. Elsworth at 9:35 AM | Permalink
General Motors and the UAW bet their futures on a dramatic new labor agreement Wednesday that could ensure the survival of both -- making GM more competitive against its foreign rivals and helping the union stanch the loss of members, according to the Detroit Free Press.
More broadly, the proposed labor contract has the potential to shape a new Detroit auto industry that can compete on a more-level playing field with Toyota Motor Corp. and other foreign rivals not burdened by huge retiree legacy costs built up over the 20th Century. Also, the agreement has the potential to recast the UAW -- often dismissed as an industrial relic -- and give it more clout in the national health care debate.
The landmark feature of the UAW's tentative deal with GM is a controversial retiree health care trust that would shift tens of billions of dollars of retiree medical, hospital and prescription costs to the UAW and off GM's books.
The agreement, which ended the first national strike against GM in 37 years, will serve as the template for new agreements at Chrysler LLC and Ford Motor Co.
Posted by Peter C. T. Elsworth at 9:32 AM | Permalink
September 26, 2007
WASHINGTON -- General Motors and the University of Michigan Medical School are working on a new study that will try to guide emergency workers and doctors who respond to car accidents - and develop safer vehicles along the way, according to the Associated Press.
Researchers are using crash and injury data from GM's OnStar service to learn more about the links between certain types of crashes and injuries. The in-vehicle system alerts emergency rescue officials when an air bag deploys or the vehicle is involved in a crash.
The study could help emergency room doctors know what to expect before the victim of a car accident arrives at the hospital. It also may help rescue workers determine when they need heavy equipment to extricate passengers or should send injured motorists to trauma centers.
Posted by Peter C. T. Elsworth at 7:43 AM | Permalink
With a tentative agreement in hand with General Motors, the UAW expects to move quickly to lock in similar labor contracts with Chrysler and Ford, according to the Detroit Free Press.
“I think the pattern bargaining is still very much in play,” UAW President Ron Gettelfinger said this morning on WJR-AM radio. “We expect this will basically be the same agreement.” He said there could be some modifications for the individual automakers but “for the most part it will be a pattern agreement.”
Gettelfinger suggested that the UAW may try to finish up talks with Chrysler and Ford simultaneously.
Posted by Peter C. T. Elsworth at 7:40 AM | Permalink
According to the Detroit Free Press, the tentative agreement between the UAW and General Motors Corp., a person briefed on the deal said, is expected to include:
• A retiree health-care trust, known as a voluntary employee beneficiary trust, or VEBA. While neither party would officially comment on the amount GM will pay into the VEBA, UAW President Ron Gettelfinger said financial analysis of the plan indicates it should be solvent for 80 years. GM has pushed for the trust to relieve itself of the responsibility for more than $50 billion in retiree health care cost liability. People familiar with GM’s position have said they believe the automaker will pay less than $35 billion into the trust.
A two-tier wage and benefits scale under which new hires will make a lower hourly wage and receive a different package of benefits than current workers.
• A second tier of compensation for jobs that GM and the UAW have agreed are “non-core” production jobs. This is expected to include many positions in which workers do not have their hands on a vehicle in the assembly process.
• To relieve the pain of the wage reductions for the workers currently assigned to jobs defined as “non-core” in the tentative deal, the automaker is expected to offer a targeted special attrition program.
• No wage increases.
• A $3,000 signing bonus.
• A lump-sum bonus in the last three years of the four-year contract.
• The possibility of the automaker maintaining the same level of its U.S. manufacturing workforce.
Posted by Peter C. T. Elsworth at 7:38 AM | Permalink
DETROIT — The United Automobile Workers union and General Motors reached a landmark agreement early today, ending a two-day strike, according to the New York Times.
The key provision of the historic new contract is a health care trust that would get G.M.’s massive liability off its books.
The deal was announced by the company and the union in separate statements. The U.A.W. had walked out on G.M. on Monday morning, but production will resume this afternoon.
G.M. said the tentative agreement was reached at 3:05 a.m. Eastern. The U.A.W. recessed the strike and said if the contract was not ratified, workers could return to picket lines. The agreement included a memorandum of understanding to establish an independent health care trust, as well as other changes to the national agreement.
G.M. said implementation of the trust would be subject to court approval, as well as a review by G.M.’s accounting for the trust by the Securities and Exchange Commission.
The memorandum apparently establishes the principle of the trust, and allows the two sides to complete its details later. Analysts had predicted the union and the company might have to take that step, because of the complexity of such a trust.
Posted by Peter C. T. Elsworth at 7:31 AM | Permalink
September 25, 2007
DETROIT - Negotiators for the United Auto Workers union and General Motors Corp have resumed bargaining on Tuesday while more than 73,000 factory workers participated in the second day of the first national strike against the automaker in more than 30 years, according to Reuters.
GM workers walked off the job on Monday after 10 weeks of contract talks seen as crucial to GM's survival as it restructures money-losing U.S. operations and tries to free itself from a health-care obligation of more than $50 billion.
A GM spokeswoman said the two sides began talking around mid-morning. Meantime, workers at a GM facility in Warren, Michigan, could be seen picketing early on Tuesday with signs reading "UAW on Strike."
Many analysts predicted that a protracted strike against the largest U.S. automaker was unlikely and the two sides could still settle on a deal on wages and benefits that delivers many of the sweeping concessions GM has sought.
Posted by Peter C. T. Elsworth at 1:04 PM | Permalink
The United Automobile Workers union wielded its most potent weapon against General Motors yesterday, sending 73,000 workers to picket lines in its first national strike at G.M. since 1970, according to the New York Times' Micheline Maynard.
Union officials said they were left no choice but to strike because General Motors was unwilling to accept the union’s demand that it protect workers’ jobs and benefits.
For General Motors, its unyielding stance reflects its decision to accept the short-term pain of a strike at 80 facilities in 30 states to achieve its goals: a lower cost structure and more flexible work force to better compete against surging Japanese automakers like Toyota and Honda.
“This really is a defining moment,” said James P. Womack, an expert on manufacturing and co-author of “The Machine That Changed the World,” which studied the plants of Japanese automakers in the United States. “G.M. has backed away from defining moments for generations. And now somebody there has finally said, ‘We have to do this because it’s a new era.’ ”
The length of the walkout may hinge on the answers to two crucial questions: How long can the U.A.W. afford to stay out? And how long can G.M. endure a strike? While an indefinite strike would pose risk to both sides, each has made a calculated decision that it has more to gain by standing tough.
Posted by Peter C. T. Elsworth at 9:58 AM | Permalink
The strike might be on, but Wall Street doesn't believe that an agreement between GM and the UAW to create a new retiree health care fund is completely off, according to Detroit Free Press columnist Susan Tompor.
GM stock held its own. GM closed at $34.74 Monday, down 20 cents a share. Ford Motor Co. closed at $8.48 a share, up 25 cents a share. GM has requested that the UAW take control of a new retiree health care fund to pay out future liabilities estimated at $50 billion in exchange for a onetime payment into the fund from the automaker.
Posted by Peter C. T. Elsworth at 9:48 AM | Permalink
Let's take UAW President Ron Gettelfinger at his word when he says, as he did Monday after striking General Motors Corp., "There's not one person on this stage ... that wanted to see these negotiations end in a strike. Who wins in a strike?"
Gettelfinger, of course, blamed GM for being unreasonable.
But wasn't he also conceding, in a way, that the UAW is in a predicament? It's an institution with declining influence, fewer and fewer friends and one big weapon it can ill afford to use without destroying itself in the process, according to Detroit Free Press columnist Tom Walsh.
Posted by Peter C. T. Elsworth at 9:45 AM | Permalink
The strike many believed never would happen shut down General Motors plants nationwide Monday, casting uncertainty on whether the U.S. auto industry can get the kind of revolutionary changes it says it needs to compete, according to the Detroit Free Press.
An end to the first nationwide UAW strike in 31 years will depend on resolving the key union issues of wages and benefits, job security and investment in U.S. facilities and vehicles, UAW President Ron Gettelfinger indicated at a news conference Monday.
He repeatedly said that the strike was not related to talks over a landmark retiree health care trust on which the two parties are believed to have agreed to a general framework.
Posted by Peter C. T. Elsworth at 9:42 AM | Permalink
DETROIT -- If the United Auto Workers strike against General Motors Corp. lasts longer than a week or two, it could cost GM billions of dollars and stop the momentum the company was building with some of its new models, according to several industry analysts, according to the Associated Press.
A strike of two weeks or less would not hurt GM's cash position and would actually improve its inventory situation, Lehman Brothers analyst Brian Johnson said Monday in a note to investors. But a longer strike would be harmful, causing GM to burn up $8.1 billion in the first month and $7.2 billion in the second month, assuming the company can't produce vehicles in Mexico or Canada, Johnson wrote.
Initially, the strike wouldn't have much impact on consumers because GM has so much inventory, the analysts say. The company had just under 950,000 vehicles in stock at the end of August, about 35,000 less than at the same time last year.
But Tom Libby, senior director of industry analysis for J.D. Power and Associates, said even a short strike could hurt GM because its new crossover vehicles - the Buick Enclave, GMC Acadia and Saturn Outlook - are selling well and in short supply.
Posted by Peter C. T. Elsworth at 9:40 AM | Permalink
September 24, 2007
In the first national UAW strike since the 1970s, General Motors Corp. workers across the nation walked off the job this morning after negotiations over a new labor contract reached an impasse, according to an update by the Detroit Free Press.
Thousands of UAW members who work for GM walked off the job at 11 a.m. today — 9 days after a 4-year contract was set to expire. The contract had been extended hour by hour, until late last night when the UAW issued the strike deadline.
UAW Ron Gettelfinger said during a noontime press conference that the union will continue to negotiate with GM while workers picket.
Posted by Peter C. T. Elsworth at 4:32 PM | Permalink
UAW members started picketing at Hamtramck, Lansing and Orion and other locations when the union’s 11 a.m. deadline for a new labor agreement with General Motors passed, according to the Detroit Free Press.
At 1:40 a.m. this morning, the UAW officially announced that it had set an 11 a.m. strike deadline, which coincides with scheduled lunch breaks at some plants. The two sides continued to negotiate this morning.
Posted by Peter C. T. Elsworth at 11:27 AM | Permalink
September 21, 2007
So, after days and days of going round and round about how to get a $50-billion commitment for future retiree health care off General Motors' balance sheet and into a union-run trust fund, the UAW and GM have punted this vexing issue off to the side while they discuss other matters, according to Tom Walsh of the Detroit Free Press.
Posted by Peter C. T. Elsworth at 9:24 AM | Permalink
September 19, 2007
DETROIT -- As General Motors and the United Auto Workers enter their fifth day of bargaining under hour-by-hour contract extensions Wednesday, the unique issues that each of the Detroit Three automakers faces could make it difficult to use an agreement with GM as a pattern contract for Ford and Chrysler, according to the Associated Press.
All three companies are grappling with dwindling market share, high health care costs and too much factory capacity, but Ford may negotiate temporary wage cuts, for example, because its financial situation is the most dire, and Chrysler's status as a private company could affect its contract.
Posted by Peter C. T. Elsworth at 9:29 AM | Permalink
September 18, 2007
While leaders of the UAW and General Motors Corp. may essentially agree on the solution to long-term health costs, a contract agreement remained elusive through Monday evening, according to the Detroit Free Press.
Analysts and workers say the reasons are threefold:
• It's extremely complicated.
• The stakes are fantastically high.
• It is going to be difficult to get rank-and-file members to ratify it.
People briefed on the matter indicate the two sides are down to the final multibillion-dollar decisions on matters such as establishing a retiree health care trust -- known as a voluntary employee beneficiary association, or VEBA -- and job-security issues, including commitments for plant investments in the United States.
Posted by Peter C. T. Elsworth at 10:24 AM | Permalink
DETROIT — As General Motors and the United Auto Workers returned to the bargaining table Monday, auto shares rose on optimism the two sides were closer to a critical agreement that could take billions in retiree health costs off GM's books, according to USA Today.
At the plants, workers were less certain as they spent a third day without a contract.
Negotiations resumed around 11 a.m., GM spokesman Tom Wickham said. Negotiators were making progress but still had a lot of work to do, according to a person who was briefed on the talks. The person spoke on condition of anonymity because the talks are private.
Posted by Peter C. T. Elsworth at 9:59 AM | Permalink
September 17, 2007
DETROIT -- Bargainers for General Motors Corp. and the United Auto Workers resumed contract negotiations Monday amid optimism that they are getting closer to reaching a critical contract agreement, according to the Associated Press.
Negotiations resumed about 11 a.m. Eastern, GM spokesman Dan Flores said. The talks had stopped about 3 a.m. after a marathon 16-hour session.
Posted by Peter C. T. Elsworth at 2:21 PM | Permalink
DETROIT -- Bargainers for General Motors and the United Auto Workers took a break early Monday amid optimism that they are getting closer to reaching a critical contract agreement, according to the Associated Press.
Negotiations came to an end just before 3 a.m. after a marathon 16-hour session on Sunday and Monday, said GM spokesman Tom Wickham.
Posted by Peter C. T. Elsworth at 9:30 AM | Permalink
September 14, 2007
FRANKFURT - When it comes to this year's Frankfurt Motor Show, UP! is down, according to thecarconnection.com
Downsized that is, in the form of Volkswagen's pint-sized prototype car. Dubbed the UP!, it makes the automaker's original Beetle look positively huge. For the moment, the UP! is little more than a concept vehicle, but you likely won't have to wait very long to see it - or one of several variants the German maker will reveal later this year - go into production.
The same is true for a trio of minicar concepts revealed by General Motors, during its time in the Frankfurt spotlight. The American giant hopes to gauge reaction at this and several other major world auto shows to see if there's enough demand to justify production
Posted by Peter C. T. Elsworth at 1:23 PM | Permalink
The UAW has selected General Motors Corp. to be the lead negotiating partner, also known as a strike target, in the year's national contract talks, leading workers, analysts and labor experts to believe the union has agreed -- in principle -- to establish the retiree health care trust that the nation's largest automaker so desperately wants, according to the Detroit Free Press.
The union has agreed to indefinite contract extensions with Ford Motor Co. and Chrysler LLC, those companies acknowledged.
Posted by Peter C. T. Elsworth at 11:14 AM | Permalink
September 13, 2007
FRANKFURT, Germany -- Saturn will put General Motors Corp.'s first plug-in hybrid -- a Vue compact SUV that can run up to 10 miles solely on electricity and switch to an engine for longer trips -- on the road "very quickly," brand general manager Jill Lajdziak said Wednesday, according to the Detroit Free Press.
"In 2009-ish," Lajdziak said.
Posted by Peter C. T. Elsworth at 11:06 AM | Permalink
September 12, 2007
DETROIT — Negotiations between the United Auto Workers and Detroit automakers are intensifying as both sides try to settle on a new contract before the current four-year pact expires at midnight Friday, according to USA Today.
After Friday, the risk of a strike increases. Negotiators worked through last weekend attempting to hammer out a new contract, but deliberations are focusing on a complex health care deal that might take longer to hash out.
Posted by Peter C. T. Elsworth at 9:53 AM | Permalink
September 11, 2007
FRANKFURT, Germany - General Motors will begin testing the revolutionary electric drive system in the Chevrolet Volt concept car on the road in vehicles next spring, company Vice Chairman Bob Lutz said at a dinner Monday night, according to the Detroit Free Press.
By this time next year, GM may allow selected people outside the company to test the system.
GM is committed to putting the system in the Chevrolet Volt for sale by 2010, Lutz said.
Posted by Peter C. T. Elsworth at 10:59 AM | Permalink
September 10, 2007
DETROIT — General Motors cut its fourth-quarter production schedule by 10 percent on Tuesday as a tightening credit market caused sales at the Ford Motor Company, Chrysler and even Toyota to decline in August, according to the New York Times.
G.M. said it planned to build 107,000 fewer vehicles in the fourth quarter, compared with the quarter in 2006, even though it had managed to increase its sales 5.3 percent in August after giving discounts on full-size pickup trucks and other vehicles.
Posted by Peter C. T. Elsworth at 10:45 AM | Permalink
September 4, 2007
Toyota, Ford and Chrysler each reported sales declines last month, but General Motors surprised industry analysts on Tuesday by showing an increase in a declining U.S. auto market, according to the Associated Press.
Toyota's 2.8 percent sales drop, Ford's 14.4 percent decline and Chrysler's 6.1 percent decrease were symptoms of what analysts said would be slumping U.S. auto market due to high gasoline prices, rising mortgage payments and turmoil in the financial markets.
But GM, led by increased pickup truck sales, showed an increase of 6.1 percent, while Nissan Motor Co. reported its sales increased 6.3 percent for August compared with the same month last year.
Posted by Peter C. T. Elsworth at 3:59 PM | Permalink
August 30, 2007
Saturn is making a comeback, but the cars aren’t really emanating from Detroit, according to the New York Times.
There is a good reason that some of the new Saturns — the no-apologies Aura sedan, the new Vue crossover utility wagon and a crisp Astra compact yet to come — are easily the best-looking, best-driving cars ever to grace a Saturn dealership: they’re German.
Specifically, they’re Opels, courtesy of G.M.’s Deutsche division. Sure, they’re wearing Saturn badges on their metal (no more plastic) lapels, and get a nip here and a tuck there from United States designers and engineers. But the Astra, Aura and Vue are near clones of the respective Opel Astra, Vectra and Antara models sold in Europe.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
August 24, 2007
General Motors is showing off a new engine technology that could cut fuel consumption by up to 15%, according to the Detroit Free Press.
The savings are the product of an engine-transmission system known as homogeneous charge compression ignition, or HCCI, that marries the high fuel economy of a diesel engine with the relatively low emissions of gasoline engines.
With the potential to deliver better fuel efficiency than even some of its gas-electric hybrids, GM calls HCCI "the most awaited advanced combustion technology of the past 30 years." Mercedes-Benz soon will show its own version of the technology, though neither automaker has said when it will make them in production vehicles.
Posted by Peter C. T. Elsworth at 9:44 AM | Permalink
There's a little bit of Toyota inside the Chevrolet HHR, according to the Detroit Free Press.
The HHR's seat frame was designed by the General Motors Corp. rival and produced by one of Toyota Motor Corp.'s suppliers.
This kind of sharing takes to a new level a trend the auto industry has been moving toward for decades. More recently, the Detroit automakers have been picking up speed with it.
Posted by Peter C. T. Elsworth at 9:41 AM | Permalink
August 23, 2007
DETROIT — When General Motors first showed off the Pontiac Solstice, the low-slung, head-turning roadster, it seemed the perfect antidote for the brand, whose flagship sedan had become known as the “Bland Am," according to the New York Times.
But the car, while a hit, did not generate much more interest in the Pontiac brand over all, and as a result even the Solstice itself appears to be hurting, just two years into its lifespan.
Meanwhile, demand for the Solstice’s fraternal twin, the costlier and more angular Saturn Sky, has shown no signs of subsiding. G.M. has about one month’s worth of the Sky available, and many buyers still have to wait several weeks or months for their Sky to arrive.
Posted by Peter C. T. Elsworth at 11:18 AM | Permalink
DETROIT -- General Motors said Wednesday it has cut production at six plants that make large sport utility vehicles and pickups, citing fuel prices and competition in the market, according to the Associated Press.
The largest U.S. automaker did not specify how deep the production cuts were.
But GM spokesman Tom Wickham said that starting this past Monday, the company eliminated previously scheduled overtime production at plants in Arlington, Texas; Janesville, Wis.; Fort Wayne, Ind.; Flint, Mich.; Silao, Mexico; and Oshawa, Ontario.
Posted by Peter C. T. Elsworth at 10:44 AM | Permalink
August 22, 2007
FROM the outside, the dark blue Saturn Aura accelerating to a steady 50 miles an hour on the high-bank oval here at General Motors’ proving grounds looked altogether unremarkable, according to the New York Times.
From the driving position it’s another story. A laptop computer placed between me and a G.M. engineer, Jun Mo Kang, displays a graph that plots the car’s changing engine speed against the load on the engine, just colorful enough to draw my attention away from future cars and trucks in full disguises zipping by in the faster lanes of the track.
My time behind the wheel last month was the first test drive G.M. has given to a journalist of its prototype homogeneous-charge compression-ignition engine. An H.C.C.I. engine runs on a combustion process that researchers say holds the potential for significant gains in overall engine efficiency. G.M is one of several automakers developing H.C.C.I. technology.
Posted by Peter C. T. Elsworth at 11:08 AM | Permalink
Explosive growth in General Motor's Latin America, Africa and Middle East division is driving the automaker to dedicate more spending and responsibility to those regions, said the division's group vice president Tuesday, according to the Detroit Free Press.
"These are growing markets and we must take advantage of the opportunity that exists," said Maureen Kempston Darkes during her visit to Detroit. "Critical for our success is to stretch the manufacturing capacity."
Posted by Peter C. T. Elsworth at 11:02 AM | Permalink
August 17, 2007
With the newly redesigned Chevrolet Malibu, Vice Chairman Bob Lutz says General Motors finally has the high-volume midsize sedan that can win buyers away from other models -- even the Toyota Camry, according to the Detroit Free Press.
Lutz characterizes the new Malibu's ride and handling as "silent and silky" and for somewhere in the high-teens to low-$20,000 range, it drives like something that costs $35,000 to $40,000.
The newly redesigned Chevrolet Malibu is arguably General Motors Corp.'s most important new car launch this year, as the automaker defends its title as the world's largest against fast-growing Japanese rival Toyota Motor Corp.
GM allowed journalists the early peek at its latest sedan on the condition they not write about their driving impressions until Nov. 2, when the car is expected to hit showrooms.
Chevrolet's director of car marketing Cheryl Catton confirmed this week that the automaker will spend at least $100 million to promote the Malibu against the Camry.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
August 16, 2007
It could be the future of cruising, a muscle car for the 21st Century: A Chevrolet Camaro that could approach 40 m.p.g. on the highway and 30 m.p.g. in the city, according to the Detroit Free Press's Mark Phelan.
It might glide silently through future Woodward Dream Cruises, running on battery power up to 25 m.p.h. but with a beefy V8 engine poised to leap to life for a 0-60 sprint.
This Camaro, wedding Chevrolet's legendary small-block V8 engine to General Motors' advanced new hybrid system, isn't on the drawing board yet, but it is feasible, a knowledgeable GM source told the Free Press. GM has the parts on the shelf to get this dream car cruising. It would combine production-ready hybrid technology that hits the road this fall in some GM vehicles with the celebrated new Camaro that is to go on sale in early 2009.
"The Camaro is Chevrolet and GM's halo car," said Joe Phillippi, principal of AutoTrends Consulting, in Short Hills, N.J. "It projects an image that reflects on the whole corporation. To offer all the performance aspects of a classic Camaro and still be environmentally friendly ... that's a real plus from an image point of view.
Posted by Peter C. T. Elsworth at 11:00 AM | Permalink
August 14, 2007
General Motors has signed an agreement with a battery maker that could propel it ahead of Toyota in the race to bring plug-in hybrid and electric cars to market, a top company official said Thursday, according to USA Today.
A123 Systems, based in Watertown, Mass., already produces thousands of nanophosphate lithium-ion batteries for use in cordless power tools, and it plans to apply the technology to automobiles.
Posted by Peter C. T. Elsworth at 9:58 AM | Permalink
In a major coup, Buick landed a spot at the top of the influential J.D. Power Vehicle Dependability Study, tying with Lexus, as reported by USA Today.
It was the first time in more than a dozen years that any brand other than Lexus had been at the top of the study.
General Motors, (GM) which owns Buick, has been targeting quality improvements as a way to win back customers who fled domestic car brands for their import rivals. GM's July market share was 23.9% in the USA, its most important market, down from 27% just a year ago. That makes winning new customers a more critical goal than ever before.
Posted by Peter C. T. Elsworth at 9:55 AM | Permalink
August 9, 2007
Buick tied with Lexus as the highest-ranking brand in a closely watched study of vehicle dependability, marking the first time in 12 years that Lexus has shared the top award, J.D. Power and Associates said Thursday, according to USA Today.
Cadillac, Mercury and Honda rounded out the top five brands in the annual survey, which measures problems experienced by the original owners of three-year-old vehicles. Both Buick and Lexus had 145 problems per 100 vehicles.
The worst-performing brand, Land Rover, had 398 problems. The industry average was 216 problems, down from 227 in last year's survey.
Posted by Peter C. T. Elsworth at 9:06 AM | Permalink
July 31, 2007
General Motors earned $891 million in the second quarter, a huge reversal from the $3.4 billion loss it posted in the same period last year and the third straight quarterly profit for the nation's largest automaker, according to the Associated Press.
GM said Tuesday the latest results reflected improved sales in growing markets worldwide.
Posted by at 10:08 AM | Permalink
July 25, 2007
General Motors says it now expects 40% better fuel economy in city driving from the gasoline-electric hybrid versions of its full-size SUVs than their gasoline-only counterparts, giving the hybrid Chevrolet Tahoes and GMC Yukons 19 or 20 miles a gallon in stop-and-go driving, according to USA Today.
That's up from earlier forecasts of a 25% improvement and would give the big SUVs better mileage than some mid- and full-size, gasoline-power family sedans. It also would be better than so-called crossover SUVs that are stealing sales from truck-based SUVs such as Tahoe because crossovers typically use less fuel.
Posted by at 12:41 PM | Permalink
July 23, 2007
The president of the United Auto Workers said Monday his union is not in the mood to make concessions during contract talks with U.S.-based automakers who say they need cost cuts to stay in business, according to the Associated Press.
The comments came after the traditional handshake between officials from the UAW and General Motors Corp., the nation's No. 1 automaker. The ceremony officially kicked off negotiations between the sides.
Posted by at 12:46 PM | Permalink
July 20, 2007
General Motors pulled ahead of Toyota in global sales for the second quarter of 2007 but remained No. 2 for the first half of the year, according to preliminary figures released by the rival automakers, according to the Associated Press.
GM said Thursday it sold 2.41 million vehicles worldwide in the April-June period, while Toyota said it sold 2.37 million.
Posted by at 9:52 AM | Permalink
July 19, 2007
General Motors said strong growth in Latin America, Asia and other emerging markets lifted global sales in the second quarter, according to preliminary sales figures released Thursday, according to USA Today.
GM said it sold 2.405 million vehicles in April-June, up 0.4% from 2.395 million in the second quarter last year.
Posted by at 10:43 AM | Permalink
July 16, 2007
Clever and attractive, the Chevrolet Volt, a design study for a new wrinkle in electric cars, dominated the headlines coming from the Detroit auto show in January. But the introduction was punctuated with an asterisk, according to the New York Times.
The car that promised a fuel economy equivalent of 150 miles a gallon and a total range of 640 miles using its onboard recharging system carried a major caveat: the lithium-ion batteries required to make it a reality are not yet available, and won’t be until 2010 at the earliest, industry experts say.
Posted by at 10:31 AM | Permalink
July 11, 2007
The United Auto Workers could end up taking responsibility for billions of dollars of retiree health care costs if Detroit's Big Three automakers can make the costly and complex transfer enticing for the union in this summer's contract talks, according to USA Today.
A deal might mirror Goodyear Tire and Rubber's recent union contract, under which Goodyear agreed to invest $1 billion into a fund controlled by the United Steelworkers to cover current and future retirees' health care expenses. Goodyear pushes a $1.2 billion liability off its balance sheet while the steelworkers' union gains an asset that protects retired workers' benefits and can't be touched by creditors should Goodyear ever file for bankruptcy.
Posted by at 3:32 PM | Permalink
The pickup discount fight escalated today as GM announced increased rebates and more low-interest financing options in an effort to boost sales that sagged in June, according to USA Today.
GM, which has been trying to reduce incentives and raise purchase prices closer to the sticker, announced that it would offer up to $2,000 in cash discounts or financing from 0% to 4.9% on regular-cab models of its Chevrolet Silverado and GMC Sierra pickups.
Posted by at 3:23 PM | Permalink
July 5, 2007
General Motors' U.S. sales plunged 21.3% in June and Ford dropped 8.1% while Toyota reported a 10.2% sales surge compared with a year ago, according to USA Today.
But Ford remained the No. 2 U.S. auto seller in June, edging Toyota, according to the June sales totals reported Tuesday.
Meanwhile, Nissan said its U.S. sales rose 22.7% and DaimlerChrysler's sales dropped 1.8%, the automakers said.
GM said it sold 320,668 passenger vehicles
Posted by at 11:00 AM | Permalink
July 3, 2007
Detroit's Big Three automakers are rolling out some of their most appealing discounts of the year this holiday week, counting heavily on 0% financing to lure debt-strapped consumers, according to USA Today.
Posted by at 11:52 AM | Permalink
July 2, 2007
Ford and Chrysler have followed General Motors in joining the United States Climate Action Partnership, a coalition working to reduce greenhouse gases tied to global warming, according to USA Today.
The alliance of big business and environmental groups told President Bush in January that mandatory emissions caps are needed to reduce the flow of carbon dioxide and other heat-trapping gases into the atmosphere.
Ford and Chrysler on Wednesday announced their membership in the coalition.
Posted by at 11:18 AM | Permalink
June 28, 2007
General Motors says it has agreed to sell its Allison Transmission commercial and military business for about $5.6 billion to the private equity firm The Carlyle Group and Canada's Onex Corp, according to the Associated Press.
GM shares rose 2 percent in morning trading.
Posted by at 1:48 PM | Permalink
June 25, 2007
A promising, if so far underwhelming, fuel-economy technology is gaining momentum as automakers, squeezed by social and political pressure, look under every rock to gain even a few tenths of a mile per gallon, according to USA Today.
The technology goes by various names but by any name does the same thing: shuts off fuel to some of an engine's cylinders when the vehicle needs only partial power.
Chrysler just said that a new line of V-6 engines will have cylinder deactivation, starting in 2010. Honda says it will have an enhanced version of what it calls Variable Cylinder Management on V-6 engines in the redesigned 2008 Accord coming this fall. And General Motors says it will use the feature on a 2008 Buick LaCrosse V-8 and '08 hybrid versions of full-size Chevrolet and GMC SUVs.
Posted by at 11:37 AM | Permalink
United Auto Workers President Ron Gettelfinger credited General Motors for a tentative wage-concession deal with Delphi Corp. meant to help the struggling auto supplier emerge from bankruptcy and avoid a strike, according to the Associated Press.
Meanwhile, Gettelfinger continued to criticize Delphi's leaders, whom he said wanted to drag out the bankruptcy and put the Troy-based Delphi in foreign hands.
Posted by at 11:04 AM | Permalink
June 22, 2007
Tiger Woods will no longer be the primary pitchman for Buick because General Motors wants a broader role for the golf great, according to USA Today.
Mark LaNeve, GM's vice president of North American sales, service and marketing, said GM will use Woods in corporate level marketing and in particular, with its OnStar marketing campaign.
Posted by at 10:44 AM | Permalink
June 21, 2007
General Motors may be devolved from its empire of alliances, but it's still looking laterally to make money. This time, the automaker is looking in its own backyard, as it sets out to develop condos on the Detroit riverfront, according to thecarconnection.com
GM says it will develop six acres just to the east of the GM headquarters building, the Renaissance Center . The complex will be mostly residential, with waterfront lots and river views.
Posted by at 12:18 PM | Permalink
June 19, 2007
General Motors has clearly been hurt by consumers who simply refuse to buy an American brand of vehicle. But the automaker has decided to use its heritage as a competitive advantage rather than a weakness, since it is one adjective that competitors like Toyota and Honda cannot use, according to the New York Times.
“Buy American” has always been an undercurrent in G.M.’s advertising, but the theme has been showing up more forcefully of late. This spring General Motors has run three marketing campaigns centered on its American roots.
Posted by at 2:42 PM | Permalink
