1124 GM Dealers Served Termination Notices

Thousands of General Motors dealers have been wondering if they were to be among the group of dealerships to be terminated by the automaker, with 1124 receiving confirmation from GM today that they were getting the ax. FEDEX and U.S. Mail notices were sent out to each of the affected dealers who learned that their franchise agreements wouldn’t be extended beyond October 2010.

This news follows on the heels of yesterday’s announcement by Chrysler that 789 Chrysler, Dodge and Jeep dealerships would be shuttered. Unlike Chrysler, which plans to have most of these dealerships closed out by June 9th, GM is giving their dealers nearly eighteen months to wind down operations. They can also appeal the automaker’s decision.

Automotive News reported that GM’s Mark LaNeve, who is North American sales vice president, said that the impacted dealers only accounted for 7% of the automaker’s sales totals in 2008 and currently hold just 8% of the company’s unsold inventory.

An Immediate Wind Down Of Operations Expected

Though an appeals process is available LaNeve indicated that only if a mistake was made, one based on bad data, they aren’t anticipating that many of these decisions will be reversed. In addition, GM wants these dealerships to begin winding down their operations by selling off their current inventory.

LaNeve expects that some of the 65,000 vehicles sitting on the lots of affected dealers may end up being taken back. However, he stressed that the automaker wants as much inventory sold as possible to avoid holding costly auctions.

Saab, Saturn and Hummer Spared…For Now

GM’s move doesn’t include 470 Saab, Saturn and Hummer dealerships who will also lose their franchises unless a buyer steps forth for one or more of those brands. In addition, GM identified 35 Pontiac-only dealerships who are also getting the ax, franchises who aren’t fortunate to be part of the current Buick-Pontiac-GMC sales channel and are poor performers. GM had said earlier this month that they would shut down Pontiac by the end of 2010.

Once the smoke clears, there will still be 4300 dealerships remaining who will then have to compete for the 3600 dealership slots GM says will be adequate to sell its product line going forward.

Decision Day Looms

June 1st looms as an important day for GM as that date is when the automaker must convince the Obama administration that they have the tools in place to reorganize. If not, President Obama can order GM to declare bankruptcy, a move that current GM CEO Fritz Henderson says looks “probable.”

readmore...

The 2008 Malibu is based on a revised version of the long-wheelbase Epsilon platform shared with the Saturn Aura, Opel Signum, and Pontiac G6. They met in Kansas City, with the Saturn Aura, and also in Lake Orion, Michigan, and the Pontiac G6. In general, is 3 inches (76 mm) and with a wheelbase is six inches (152 mm) longer. The inner chamber is of medium size like the previous Malibu, diminuéido and 101 million cubic feet (2.9 m3) to 97.7 cubic feet (2.8 m3), noNevertheless a longer wheelbase, although the front legs have grown by 41.9 in (1064 mm) 42 2 (1072 mm). the rear leg was reduced from 38.5 in (978 mm) to 37.6 in (955 mm) . The interior has been completely revised, with a selection of two-tone color combinations (and hence the brick bicolour), telescoping steering wheel, the quality of materials and design hottesa double . Drag (Cd) is 0.33
Chevy Malibu

Chevy Malibu

Chevy Malibu

Chevy Malibu

Chevy Malibu

readmore...

Roger Penske To Buy Saturn?

Well, it’s the month of may, and to me and every other racing fan on the planet, that means the Monaco Grand Prix, the Nurburgring 24 hours, and of course, the Indy 500. And right on cue, and no doubt much to the dismay of his competitors, Roger Penske, The Captain as he is known, puts his two cars at one and two on the grid.

Penske will be going for an unprecedented FIFTEENTH win at the speedway, but while poking around for info on the upcoming race, I came across this odd little rumor that seems to be gaining traction: Roger Penske might buy Saturn from General motors.

I’ve met Roger on several occasions, and have known about him my whole life. At it’s pretty obvious now, as it was since he was an up and coming driver (this was before he moved into team ownership), that you underestimated The Captain at your own peril.

Not only is Penske one of the best team managers in the history of racing, with successes and domination up there with the likes of Enzo Ferrari and Colin Chapman, but he is a startlingly effective businessman; a real “balls to the wall” type as Waring Hudsucker would say. Back in the 1980s Penske bought the ailing Detroit Diesel engine manufacturing concern and turned it around, and later sold it for a considerable profit. And when I say “ailing” that’s a polite, corporate speak way of saying, “They were at death’s door, within months if not weeks of folding.”

Penske is, in addition to being a racer, a businessman. Consider this, he was one of the first racing team managers that was able to turn racing into a money MAKING proposition. Before Roger came along, most people, and most auto manufacturers, looked at racing as a loss leader. It was something you’d do for R & D or promotional purposes. You went racing to spend money. Roger Penske went racing and MADE money.

So, along comes GM, limping from pillar to post, beset by problems that the Chevrolet Bros. could barely conceive of. Bleeding red ink like a hemophiliac after falling down a flight of stairs, GM is selling off divisions left right and center. Pontiac is gone. Hummer will be gone as soon as possible, Saab is on the block, and word comes that they’ve axed over a thousand dealerships from their once massive roasters of sales locations.

Also on the sales roster is Saturn, one the darling of the (former) “World’s Largest Automaker” is now up for grabs … and in walks Roger Penske.

The Wall Street Journal reports that the CEO of Penske Automotive Group (Roger’s car dealership business) is a possible bidder for Saturn. The WSJ didn’t cite anyone beyond “people familiar with the situation.”

“We look at things all the time. We have been offered an opportunity to look at Saturn. It’s very premature to assume anything will be done. I can confirm to you that we are looking at it,” said Tony Pordon, a spokesman for Penske Automotive Group, to the Detroit News.

Sounds like Roger is in the hunt.

Source: LeftLaneNews

Photo from Flickr user cmakin

© Gearhead Media - Please visit Automoblog.net for more great content.

readmore...

Auto Sales: Looking For Signs of Recovery

April 2009 new car sales in the U.S. market were down once again, a drop of 34.4% over April 2008. Moreover, nearly 40,000 fewer new vehicles were sold in April compared to March 2009, even with one more selling day for April.

Finding Good News Amongst The Carnage

Reading some of the news releases from the manufacturers and you would think that April was a good month. Not surprising, since PR folks are looking for every possible ray of light and when they find one are eager to reflect the good news.

Take Ford: As the Blue Oval continues to map out its future, one where they’ll likely pass its chief rival, General Motors, sometime this year or next, the company was quick to emphasize the acceptance of their all-new mid-size sedans — the Ford Fusion, Mercury Milan, Lincoln MKZ and the hybrid variants offered with the first two models. According to Autodata, Ford sales were off 31.5%, but the company sold more midsize vehicles than expected while also picking up market share. Best news of all, Ford passed Toyota in sales for the month.

Chrysler continues to struggle as its current bankruptcy state and pending relationship with Fiat unfolds. Although Mitsubishi posted the worst month over month loss of any full line manufacturer at 55.9%, Chrysler showed the biggest drop amongst the Big Six, falling 48.1% for the month. That bad news hasn’t stopped Chrysler from touting its good news which included both the Dodge Challenger and Chrysler Town & Country seeing a sales increase over the previous month while the Jeep Wrangler saw its sales increase by 7% over April 2008. Chrysler was also one of the most vocal in claiming that the market may have finally stabilized.

More Good News To Report

Among the other manufacturers offering their reports the following good news could be found:

• Kia says that its all-new Soul, the Scion-like urban utility vehicle sold 3,228 units for April.

• The Audi A5 increased 40% in sales over April 2008.

• Sales for the luxury Hyundai Genesis continue to climb, reaching 2,076 units for the month.

• Honda had the best performance of all Big Six automakers, dropping 25.3% for the month, its best month so far in 2009.  Sales of the redesigned Acura TSX are up for the year by nearly 6% over 2008.

• Wounded GM continues to lead all manufacturers maintaining a 38,000 vehicle cushion over its closest competitor which for April was Ford. Monthly sales for April were actually up 11% over March. With Pontiac winding down and with Saab, Saturn and Hummer all expecting to be sold or closed down before the year ends, GM’s hold on the top position looks precarious at best.

Looking Forward to the Coming Months

The months ahead are a big question mark for all manufacturers as future sales hinge on two events: an economic recovery as well as a “cash for clunkers” program now being considered by the U.S. Congress.  An improvement in the former and the implementation of the latter could go far to stimulate sales, perhaps bringing about a sustained recovery.

Related Reading — Sales Data Shows Promise Amid The Gloom

readmore...

Checking In On The GM Bazaar

Day by day we are learning a little bit more about the direction that General Motors is taking, moves being made to return the company to profitability at some future date. Already, Pontiac has been given the ax as soon will Saturn, Saab and Hummer, the latter three likely to be sold off or shut down.

But, these brands aren’t the only ones in the news nor do they tell a whole lot about which models may go away regardless of the fate of a particular brand. Rumors, speculations, and hints being made by GM itself are revealing what few people have come to accept: when all is said and done, GM will be a much smaller company, likely trailing Toyota and Ford in US sales and finding itself much further down the global pecking order.

Among the “other” GM stories of note include the following:

• GM’s business relationship with Toyota — NUMMI or New United Motor Manufacturing, Inc. — will continue although it does mean the end of the line for the Pontiac Vibe.  GM says that the Vibe will be discontinued when Pontiac closes up at the end of 2010, but a new, not yet disclosed model will be sold by one of GM’s surviving divisions which are Cadillac, Buick, GMC and Chevrolet. Read more….

• Holden, which is GM’s Australian brand, will suffer hundreds of millions of dollars in losses with the demise of the Pontiac G8 sedan. Earlier this year, Holden learned that GM would not import the Holden Ute to the United States a car truck that was to be sold as the Pontiac G8 ST. With Holden facing steep losses and likely layoffs, will GM decide that Chevrolet would be the next beneficiary of the Holden Commodore based G8 or will GM simply continue with the Chevy Impala as its flagship sedan? Read more….

• Opel will probably continue to operate as GM’s top European brand, selling Opels and Vauxhalls throughout its many markets. However, there is a distinct possibility that a significant interest in Opel may go to the highest bidder as Magna International and Fiat seek to get a share of the German automaker. Read more….

• Asia rising? One of the few bright spots for GM is its Asian operations thanks mostly to continued strong demand for its Buick models in China. In addition, the automaker has several partnerships in China which means the company is able to sell more than one million cars annually in the world’s most populace nation. No word yet on GM Daewoo, the automaker’s financially troubled Korean arm. With the Pontiac G3 coming to a quick end, Daewoo will still have the Chevy Aveo to fall back on. Read more….

Of course, additional GM subsidiaries could also find themselves being sold off, especially if cash flush buyers step forward to acquire control or at least a significant investment in that business. AC Delco remains an attractive unit for any company, the aftermarket and replacement parts arm of GM.  OnStar provides navigation and communications technology for more than six million GM drivers while GMAC could eventually be offloaded completely to Cerberus who bought controlling stake in GM’s financing unit in 2006.

So if you have the money to invest (or burn) and are so inclined to shop at the GM bazaar, then why not submit your bid while the bidding is in your favor?

readmore...

Playing Hardball, GM Dealers Strike Out

Pity the poor GM dealer who may just now be coming to terms with how weak their relationship is with the once might automaker. Healthy dealerships, particularly those operating in areas of the country where competition between dealers selling the same GM brand isn’t so tough aren’t affected, but smaller dealerships, particularly those located in markets where there are too many dealers to justify the numbers will soon be left out in the cold.

Rolling Out Government Union Motors

Now that GM is effectively being transformed into Government Union Motors (GUM) — owned by the U.S. government with secondary ownership in the hands of the United Auto Workers, lots of dealers will be given walking papers and ordered to shut down between now and the end of 2010.

In a bid to shrink its bulging dealer network from over 6200 dealers to around 3600 dealerships over the coming twenty months, GM says that they’ll terminate their relationship with low performing dealers and do that without compensation. The automaker says that they’ll buy back new car inventory, car parts, special tooling and some signage, but if the dealerships are looking for compensation ala Oldsmobile, it won’t be coming.

Abandoned Brands Will Lose Out Too

Quite a number of dealerships have been vulnerable anyway, particularly those selling Saab, Saturn and Hummer vehicles. Stand alone Pontiac dealers will also go away, but for those fortunate to have a combined Buick Pontiac GMC dealership, they’ll manage to soldier on with one less brand.

Next month, GM will send notices out to as many as 1200 dealerships that they will not be part of the reinvented GM.  500 dealers will be closing due to normal attrition, 500 more will go away when Saab, Saturn and Hummer finally disappear while the automaker will seek to close or combine an additional 500 dealerships in overcrowded markets.

Dealers Not Leaving Without A Fight

Lest the Obama Administration, General Motors and even Chrysler think that dealerships can be shut down without compensation, The Wall Street Journal ran a story on Wednesday suggesting otherwise. In, “GM, Chrysler Dealer Groups Retain Law Firms,” the newspaper reported that large dealer networks have retained the services of several law firms to help them fight back.

The lawyers have been retained to make sure that the dealers receive payments owed to them, especially if either automaker files for bankruptcy. Regarding the work of one law firm, the WSJ reported, “The firm will participate in negotiations with GM on dealers’ behalf and work with lawyers retained by individual dealers. Dealers operate under contracts with auto makers that require the company to cover obligations, ties to warranty repairs, inventory buy downs and floorplan assistance payments.”

The road to remake GM as well as Chrysler isn’t as simple as some might believe that it’ll be. Contracts cannot be automatically dimissed and litigating parties are allowed their day in court. No matter what happens, GM will be slicing and dicing its dealer network, but perhaps they’ll have to put some money on the hood to compensate aggrieved dealer franchise holders.

Related Reading — Checking In On The GM Bazaar

readmore...

GM Kills Pontiac - Focuses on Boring Brands

GM announced today that they will be phasing out the Pontiac brand by the end of 2010. This news came right after they announced they will also be cutting 21,000 hourly jobs and reducing their dealer count by 42% within the same time frame. This, in an effort to stay out of bankruptcy, of course.

“This action will allow General Motors to devote its limited capital and other resources to GM’s four core brands: Chevrolet, Cadillac, Buick and GMC.” So GM wants to kill off the only brand that made them look even slightly sporty and exciting, and focus on the oversized and ultimately “boring” brands.

While it’s always a shame to see any brand go under - especially one with as much history as Pontiac - there are always contributing factors that made this happen. It wasn’t like Pontiac just drew the short straw here. Just speaking from recent years, Pontiac tried to revive the GTO name in 2004 to bring back some of the muscle car pedigee they were known for. Sadly, the GTO ended up looking like a stretched Chevy Cavalier. While it may have been a good car to drive (a friend owns one and loves it,) you didn’t know this until you actually drove it, and then it was still very subjective. They failed to bring back the memories of the original GTO, and instead made an okay muscle car that looked like a Chevy Sedan. The GTO didn’t sell very well, and it doesn’t take a genius to figure out why. They said goodbye to this model in 2006.

Next, we have the Pontiac G5, which you’ll remember I thought was a pointless car anyway, considering the Chevy Cobalt exists.

Then we have the Pontiac Solstice, which has nothing wrong with it by itself, if only you forget that the Saturn Sky exists. The Sky and Solstice are essentially the same car mechanically, but the Saturn just looks so much better than the Pontiac version.

So now we’re left with the G8, which could have been Pontiac’s savior. An exciting RWD sedan offered in multiple trims and engine sizes from an everyday V6, to the GXP with a fire-breathing 415hp V8, the Pontiac G8 was actually a pretty damn good car. An affordable sedan that could compete with the likes of BMW and Audi - it looked like Pontiac was about to get on the right track. The G8 also had one of the coolest car commercials I’ve ever seen.

But as they say…Too little, too late. Sorry to see you go, Pontiac.

© Gearhead Media - Please visit Automoblog.net for more great content.

readmore...

A Buyer For Saturn? Maybe.

One of the worst franchises to own in 2009 is a Saturn dealership, thanks to GM’s stated plan to no longer build vehicles for the brand after 2011.  That move plus GM’s likely bankruptcy restructuring has put Saturn dealers in a terrible position of trying to sell cars that not many buyers want. Indeed, as word continues to spread that Saturn is on a short leash, buyers are shopping elsewhere for new cars.

Now word has surfaced that a buyer for the Saturn brand may be stepping forward, an entity known as Telesto Ventures. Made up of private equity investors including people associated with Black Oak Partners LLC, based in Oklahoma City, Telesto is interested in acquiring Saturn from GM perhaps including current dealers among its investors.

Selling Multiple Brands Under One Roof

According to Automotive News which is running the story, Saturn dealers would continue to sell GM products through 2011 and then sell a number of different overseas models thereafter.  The publication suggested that a “Best Buy” model of selling several different brands under one roof would be the goal of Saturn who would likely no longer have Saturn branded cars of its own to sell.

Of course, this move leads to all kinds of speculation as to who might have cars for Saturn. A number of foreign makes would love to set up shop here including vehicles currently built by Chinese firms.  However, any vehicle sold in the US would have to conform to American safety and emission requirements which would make it difficult for a low volume budget brand to make a profit. Currently, nothing from China’s major producers would be roadworthy in the US, but that could change.

Bringing Additional Brands Stateside

Other brands who might be a good fit for Saturn could include Renault and Peugeot (plus Citroen) from France, Skoda from central Europe, India’s Tata Motors and perhaps even Malaysia’s Proton Motors. Should the Fiat-Chrysler deal fail, then Fiat’s brands could also be a candidate for Saturn dealerships. Finally, GM could still be a participant in the new Saturn by importing Opels and/or Vauxhalls from Europe.

Should Telesto Ventures succeed in acquiring Saturn, it would free GM from its dealer obligations and allow it to concentrate on dumping Hummer and Saab next. The Telesto model is a big gamble, but it could pay off especially if the product mix is the right one for Saturn dealers.

Related Reading — Taking Saturn Private Is One Option

readmore...

2010 Opel Astra, GTC Get Much-Needed Facelift [Frankfurt Auto Show]

The Astra hasn’t sold well in the States, but that doesn’t mean that its Euro-trash cousin can’t make a comeback tour. Take a peak at the handsomely-designed 2010 Opel Astra and its agro-counterpart, the GTC.

The general Opel Astra and its U.S. Saturn-based variant are getting a minute long-in-the-tooth both in design and in driving dynamics when compared to its much newer rivals, the Ford Focus and VW Golf. The design will be in-line with current Opel design cues what one. began with the Opel Insignia and will ride adhering the new, larger Global Delta platform. These new cars will feature both a wider vestige and a longer wheelbase, allowing for an aggressive, well-proportioned stance. Also in store is a new estate 5-door model with a slightly longer wheelbase and increased rear remote storage.

Also, pictured in sketch mould is the high-performance 2010 Opel Astra GTC, that is poised to take on the new Ford Focus RS and VW GTI. Power will likely come from a rendition of the turbocharged, direct-injection 2.0L Ecotec featured in the Cobalt SS Turbo. The new GTC will trump the previous model’s power numbers by about 20, totaling around 260-horsepower and 260 lb-ft of torque, while returning a rough highway estimate of 30 mpg.

Will we ever have a chance at the fresh Astra? With current Saturn Astra sales not meeting initial expectations, it would be unlikely, but another stolid car in GM’s lineup is just what the doctor ordered. It would make the perfect utilitarian choice over the Chevy Cruze and with the collapse of GM’sitting U.S. act operations, a Euro-tuned Astra GTC would fill the gap nicely. According to GM, we’ll inquire the 5-door version at the Frankfurt Auto Show later this year.

ALL-NEW ASTRA SET TO TAKE COMPACT CLASS BY STORM IN 2009

* 5-door project to debut at 2009 Frankfurt Show
* All-new, highly sophisticated chassis
* New high-efficiency engines
* Leading technology evolved from Insignia

Luton. The next generation Vauxhall Astra will receive its premiere at next year’s Frankfurt Show, delivering a compelling mix of technical innovation and groundbreaking design that promises to raise the bar in the concise sector.

With its flowing lines and signature sculpted blade, the new Astra will carry the spirit of the Insignia into the compact class, offering customers a premium feel, while maintaining Vauxhall’session value in favor of coin promise.

Inside, the premium theme will continue, with a warm, wrap-around interior and a wing-line sweep that links the instrument panel to the door.

An all-new chassis promises to maintain the Astra’s reputation for class-leading dynamics, while unaccustomed engines will maximise low-end torque to achieve miserly combustibles decline.

Also expect to see capable and practical features on the new Astra, taking inspiration from systems similar the Corsa’s FlexFix integrated carrier.

The new Astra will major on technical innovation, such as the Front Camera System used in the upcoming Insignia, the sort of one. combines traffic sign recognition with a lane departure system, improving occupant safety and potentially helping drivers have nothing to do with fines.

Next generation Adaptive Front Lighting (AFL) will also be shared with the Insignia. The system adapts to different road and driving conditions by providing nine exceptional light beams, improving visibility and safety during night-time driving.

This will be the fourth generation of the hugely successful Astra, which has sold too 2.5 a thousand thousand cars in the UK during the last 27 years.

The instant model kick-started Vauxhall’s design revival when it was launched in 2004, and according to Mark Adams, GM Europe’s Vice President of Design, it presented his team with serious challenges: “The present Astra already combines a high level of technical pith and emotional styling, but by the new car we are taking a big step forward in one as well as the other respects, while emphasising its sporting credentials.”

[via motorward]

readmore...

Barrett-Jackson GM Heritage Car Auction Halted By NHTSA [Barrett Jackson]

Investigators from NHTSA stopped the GM Heritage Center from auctioning off near-classics, fearing some buyers would try to register cars for the street.

The idea behind the auction was to deliver up some cash for GM by auctioning some near-classic cars like the 1-millionth Saturn. Among these vehicles were a few concept cars and other vehicles that had to be sold through salvage titles so no one would try to drive them adhering the street. This is a fairly usual practice and, according to Barrett-Jackson and GM, the companies were up front about this.

So why did G-Men stop the auction? The NHTSA were concerned people would examine to register these vehicles for the street, though haven’t given any indication why they think this. The fit NHTSA offices are closed for Easter, so for now we’ll have to stay and mark if this is a example of overreaction or if the feds were onto something. It seems GM can’t even sell cars to people lining up to buy them at auction. [Edmunds: Straightline

readmore...

2010 Cadillac SRX takes a swing at Lexus' RX

By: Sam Abuelsamid

Cadillac invited a handful of local media to its Milford, MI proving grounds for an early "preview" drive of the second-generation SRX crossover. The first official media launch won't happen until late May, just ahead of the mid-summer on-sale date, but GM wanted to provide a sneak peak at the chassis and hardware underpinning the new SRX. Contrary to popular opinion, the SRX and the Saab 9-4X aren't built atop the Theta platform used for the Saturn Vue and Chevy Equinox. Both vehicles uses a mix of Theta pieces, bits from the Epsilon II platform and a host of new components to create a new premium crossover architecture.

Unfortunately, Michigan weather just didn't want to cooperate with the SRX. After an early event was cancelled due to unseasonably warm weather in February, GM decided to let us loose on a 50-mile local road loop to show off the SRX's new chassis control and vehicle dynamic systems. Read on to find out how it fared.

readmore...

GM: The Good, the Bad and the Ugly

These are extraordinarily difficult times for the global automotive industry as the we’re on the cusp of ushering in major change, the likes we haven’t seen before. By this time next year we’ll see the first mass produced electric vehicles hit the market and by 2012, the number of pure electric and hybrid models will skyrocket.

At the same time, the industry is going through a deep cleansing, one that will rid it of excess capacity, inefficient operations and see several brands disappear. I believe that Ford will replace GM as the largest producer of cars in the US followed by Toyota. Hyundai and Kia will continue to gain market share while Chrysler’s future is hinged on its relationship with Fiat, a very precarious one at that.

GM Faces A Deep Challenge

Looking closer at General Motors, I now see its US operations pared to the point where only three brands will survive. Despite President Obama’s optimism, it’ll take years to settle GM’s debt as both bondholders and union members hold firm. Now that the president has signaled that he won’t let GM die, what do these parties have to lose? A lot if they don’t hold their ground.

The Good, the Bad and the Ugly

In keeping with the tradition of Sergio Leone, I offer to you the following categories to define GM’s future, particularly as it relates to its critical North American base:

The Good — Chevrolet comprises a full 60% of GM sales, therefore the Chevy brand is the face of the new GM. If this brand isn’t healthy enough to compete against Ford, Toyota, Honda, Nissan, Hyundai, Kia and Volkswagen then the company will die.

Cadillac is the premium bookend for GM, a luxury division that needs additional assets. The CTS franchise is a success, the SRX a worthy model, but the replacement for the STS/DTS is a mystery. As for the Escalade, it will probably soldier on as a car based crossover at some point. Lincoln wasn’t much of a threat for the past decade, but now Ford’s luxury division is fighting back, positioning itself to leapfrog Cadillac.

The lifespan of Buick depends on how well the company emerges from restructuring, bankruptcy or not. Its Chinese base is upholding the brand, but in order to be a good middleground brand for GM, it needs some product loving. And quick.

The Bad — The Pontiac G8 is a knock out car, but not enough to keep the brand alive.  Cash strapped GM cannot afford to keep Pontiac alive, so may it rest in peace. The G8 could find its way over to Chevrolet…let’s hope so!

The GMC brand can now die, allowing GM to consolidate Chevrolet trucks with GMC. They’ll be a big battle with Buick-Pontiac-GMC franchised dealers, with some likely to gain a Chevy Trucks franchise in their settlement.

The Ugly — No longer relevant and a big embarrassment, Hummer will probably cease to exist unless a foreign, niche manufacturer buys the brand, its dies and assembles Hummer elsewhere.

There isn’t much that can be said about Saab unless the pending new owner of Volvo makes a pitch for the brand to create Scandinavian Motors. Nope, I don’t see that happening at all.

Pity, poor Saturn — it was once a decent idea that should have been dismissed long before a plant in Spring Hill, TN was built for “a different kind of car company.” Okay, I’m biased: I leased a 2001 Saturn L-Series and actually liked the car, body panel gaps and all.  But, Saturn held Chevrolet back and was always a tremendous financial drain on the automaker. I would hate to see it become a supply house for a Chinese or Indian automaker. Peugeot? Maybe.

Ups & Downs With GM

Life at GM will never be the same, a company whose heritage is a mixture of lousy production methods (pre-1980s), cool technology (OnStar) and stiff competition (Toyota, et al).

If the company does survive, it may eventually have to hook up with another automaker to stay in business. Perhaps Carlos Ghosn would be interested in an automotive troika provided that GM comes to the party without financial baggage.

Related Reading –Brain Drain: GM Whacks Engineers

readmore...

Saab Given 5 Year Reprieve By GM

GM has announced that its Swedish entity, Saab, will be given a five year reprieve. This means that the ailing auto giant will continue to work with Saab during that time to keep its new product pipeline open and share technology beneficial to both companies.

The turn of events signals that GM isn’t ready to consign Saab to the same fate that they are planning for Hummer and Saturn, at least just yet: sell off or shut down the brands.

Saab Lives…For Now

Apparently, GM is satisfied that Saab is well on its way to operating as a separate company as per the February 20, 2009 announcement by the Saab Board that Saab would file for reorganization. The self-managed Swedish court process is designed to create a fully independent business entity that would be sustainable and suitable for investment.

In other words, GM still controls Saab but they are looking for outside investors to shoulder some of that burden.

Three New Products Set To Launch

The news comes at a critical time as Saab is in the midst of a major product line overhaul, one that will yield three all-new models by the end of 2010. Getting ready to launch is the 9-3X which will later be joined by the next generation 9-5 and by a spanking new crossover, the 9-4X.

To ensure Saab customers in the U.S. that the brand will still be around, GM plans to continue covering new vehicles under Saab’s 4 year/50,000 mile bumper-to-bumper limited warranty. In addition, Saab dealerships remain open for sales and service.

More Money For GM

This latest bit of information which is being shared on Automotive News is showing that GM expects to be around for awhile. Despite claims by some that the company’s collapse is imminent, the Obama administration is sending signals that additional funding for GM (and Chrysler) is on its way, although those details haven’t been announced as of yet.

The Saab announcement may help spark sales for the brand which have plunged of late as consumers avoid a brand that they think is ready to die. Indeed, in February 2009 just 712 Saab vehicles were sold in the US, confirming customer sentiments about the brand.

Related Reading: Sweden Spurns Saab, Embraces Volvo

readmore...

Caddy CTS-V Coupe Not Dead

The continuing soap opera that is GM (if not American car manufacturing in general) continues with more twists and turns than a misshapen corkscrew. In today’s installment, the part of young Doctor Powers, he who would save the youthful and well healed of Grosse Pointe is played by the Cadillac CTS-V Coupe. What? You thought that young Doctor Powers/ the Cadillac CTS-V Coupe was dead, killed when the evil “socialist” government overlords wouldn’t give enough of their money to poor, poor GM?

Nope, looks like the Cadillac CTS-V Coupe is alive.

According to some spy shots that turned up at SEMA’s website the other day, it looks like work on the Cadillac CTS-V Coupe is either continuing apace, or has picked back up again. As Chris, our supreme commander here at 1 Automoblog towers pointed out via email when he sent this my way, “Good thing though, it will ease the pain from the ex-XLR.”

Indeed, that had occurred to me as well. It seems that Caddy, via internal GM realignments, was slowly yet forcefully moving towards bringing some engineering heft and drivetrain muscle to Cadillac, something the division has needed since … well, near as I can remember about 1974. Seriously, just look at where Caddy is or has been for ages. Cadillac used to be the number one car company (or brand, if you will) in the world before WW II. Their company slogan was “Cadillac, The Standard of The World,” and they weren’t kidding. Everybody in the world looked up to them. Sure, maybe folks like Duesenberg or Bugatti could pick a bone or two, but Cadillac was, well, the Cadillac of car companies.

You wanted performance, technical innovation, comfort and speed? You seriously considered Caddy. Today? You want a nice comfortable car Aunt May will feel good in, you consider Cadillac … and that is a very long way to fall.

That was starting to change though. Cadillac was slowly making inroads into making rides that enthusiasts would consider, and they were banking on making cars that were more than a “consideration” for young-ish would-be buyers of BMWs and Mercedes. Check out the aforementioned XLR. That was essentially a Corvette drivetrain and chassis with a Caddy body featuring a retractable hard top. It was the first time Corvette had ever let its bits be used by another GM division (something that was like pulling teeth the way I heard it). The XLR, although not to my taste, was not a car to be trifled with.

More importantly, it signaled that Caddy was serious about recapturing its past glory, and there would be more like this to come.

Cars like the CTS-V sedan, with it’s big wompin-stompin’ mill and impressive chassis set up was next and served to further back up that Caddy claim of, “Yeah, we mean it.” Next up was a coupe version of the CTS-V, but a funny thing happened on the way to the drag strip. The world economy took a tumble … took a hell of tumble actually, and GM, a company that has been run from the accounting department since Sloan, decided to save costs by performing radical surgery on any appendix-like divisions or single car lines. So in addition to saying adios to divisions like Saturn, GM also disbanded its High Performance Vehicle Operations (HPVO) team, the same crew responsible for V-series Cadillacs, the Chevy Cobalt SS and HHR SS. And so we were told that the CTS-V coupe was buried.

But spy photographer Brenda Priddy told SEMA that the HPVO team still has one trick up its sleeve.

“The last time we saw a CTS Coupe V-series prototype was in August 2008. It’s absence since then, combined with GM’s Viability Plan submitted to Congress, had many thinking the hot-rod coupe had been killed off. These new photos show that the V-series coupe is alive and well,” Priddy says.

Priddy says that what she’s seen recently at test tracks looks production-ready down to the wheels, exhaust tips and V-series badging. The coupe even has the same wire mesh grilles, power dome hood, wider tires, larger wheels, huge brake calipers and two massive, center-mount exhaust outlets unchanged since the coupe was on the auto show circuit. Under the hood is the 6.2L, supercharged V8 LSA motor, that’s good for 556 hp and 551 lb.-ft. in the CTS-V sedan, expect the Coupe V ratings to be very similar.

“Anticipate the V-series coupe to start production next summer when the regular coupe starts rolling down the line at the Lansing Grand River plant,” is SEMA’s prediction, and who are we to argue.

Source: SEMA

Image from Flickr user brianapa

© Gearhead Media - Please visit Automoblog.net for more great content.

readmore...

The Genre Of Buying Cheap Used Cars At Easy Finance

If you are tired of waiting in long queues at the bus stop, it is time that you start looking out for cheap used cars for sale to help you in your daily commuting. Convenience of commuting and affordability together go hand in hand and each without another would be very difficult to sustain.

Cars can offer you mobility with convenience if it fits in your budget. There are many finance schemes available to buy cars. You can locate cheap used car for sale and avail finance facility on it.

The main advantage of buying cheap used car loan finance is that you can buy loan for a lesser amount at the prevailing rate of interest which offers lesser premium or smaller amounts of monthly installments.

It is not difficult to get approval on these loans as the sanction amounts are smaller.

There are many banks and financial institution that offers these services.

Dealers who sell these cheap used cars also have a tie up with these financers. You can get buy your cars from these dealers. They have a wide variety of cheap used cars which a have been refurbished and are ready for sale.

Buying from dealers is quite enticing as you can always move up to them incase of any problems or recurrent break down .The most important feature of buying from the dealer is that you can have a look at these vehicles inspect them thoroughly and if you feel the need you can also test drive it before arriving at a decision.

The satisfaction and comfort that you achieve after test driving the car can help you make a decision whether it is worth buying the car or not.

When you approach a dealer you will also come across many options such as used hummer cars for sale if you wish to go a little over bored with your budget. For those who are very particular about their budget can check out used Saturn cars for sale.

There are many more option of sports cars like Used Ferrari cars, Used Chevrolet cars available for sale. With a multitude of choices given it becomes easy to identify a car and feel the sense of satisfaction greatly.

If you do not feel convenient or do not have the time to visit the dealer, the modern technology has made it possible by using the computers. You can browse through the internet and visit various websites who offer these used cars for sale. You will come across abundance of offers.

Chose the right car at a good price, register yourself and your buying procedure is done.

Things have become so simple and easy by the modern age that you can get practically everything done sitting in the comfort of your home.

readmore...

44 Percent Loss And Chrysler Still Gains Ground

The U.S. auto industry continues to labor under its worst downturn of our generation, posting month over month losses above 35% for the fifth consecutive month. According to Autodata Corp. which tracks U.S. Light Vehicle Retail Sales, February 2009 numbers were down 41.3% for the month.

A Silver Lining Thanks To Three Asian Brands

That bit of news should be discouraging enough, but it isn’t entirely bad. Subaru and Kia both posted tiny gains for the month while Hyundai slipped just 1.5%. Subaru has been basking in having the right product mix for our times, including the 2009 Sport/Utility of the Year model in the Forester. The Hyundai-Kia Automotive Group has used both aggressive pricing and Hyundai’s liberal return policy to help bolster sales.

Every one of the Big Six car manufacturers saw sales drop by at least 37% for the month with Nissan sinking 37.1% while General Motors led losses with sales falling 53.1%. Particularly dismal for GM is Saab, which sold only 712 vehicles for the month, reflecting consumer worry that the brand would not be around for the long haul. Hummer and Saturn, two other makes GM plans to abandon suffered as well.

Something Positive From Chrysler LLC

Chrysler saw its sales fall by 44% but with one bright spot: light truck sales beat out Ford for the month as the smallest of America’s Big Three car companies slashed prices to the bone, offering incentives averaging a whopping $5556 per vehicle. Ford, on the other hand, trimmed its incentives somewhat which allowed Chrysler to pick up market share.

Not to let a positive moment slip by unnoticed, Chrysler LLC issued a press release with the following quote regarding retail sales:

“We see our retail number as a shining light of positive news,” said Jim Press President and Vice Chairman - Chrysler LLC. “By working together with our strong dealer body, we will continue to move the needle on sales and service. Additionally, our focus on quality is evident in the 2009 Dodge Ram, which continues to demonstrate our ability to improve the quality of our products. Recently reported data is not representative of the positive progress Chrysler has made over the last year. In the last 12 months, our corporate warranty claim rates are down over 30 percent.”

Sailing Out Into Unchartered Waters

Most definitely we’re living in a time that few people have seen before as the current economic downturn deepens.  Analysts have been comparing this recession to the 1982 beat down, but as each month passes 1982 isn’t looking all that bad. When Toyota and Honda, the industry mainstays, continue to report sharp losses, then the problem goes well beyond product offerings.

Clearly, Americans are terribly worried about the economy and many are in no mood to buy a new car. As unemployment surges and credit remains tight, then many more bad months can be expected.

This news bodes poorly for GM and Chrysler which are seeking additional federal money and could force Ford to join the chorus calling for help. The Obama administration hasn’t said what action they plan on taking beyond offering a small tax credit for new car buyers, a small gesture which isn’t having much effect on new vehicle sales.

See also: As Expected, January 2009 Sales Were Horrid

readmore...

Will the Opel Insignia Become the Buick Regal?

The General Motors saga is constantly evolving, requiring followers to keep a scorecard to track all of the changes. Certainly, the automaker’s problems date back a number of years, but its current woes seem to have been worsened by last year’s oil price fiasco and subsequent stock market collapse.

I first mentioned in October 2006 that Opel and Saturn would share a number of models and followed that up with numerous articles explaining the European origin of the Aura and Astra as well as the Saturn Sky making its way across the pond as Opels. Later, GM announced that by model year 2014 the two brands would be virtually seamless with most products shared (save for the Saturn Outlook crossover).

Opel’s Future Is In Doubt

Now that GM has apparently decided to kill off or sell Saturn, those plans have been canceled. Moreover, with GM looking to spin Opel off (or at least a share of its European brand), Opel’s future is in question as well.

Naturally, much of what is being aired as “news” lately is based on speculation, some of it coming from industry analysts with a healthy dose being suggested by GM itself: Better to make the news yourself than have the press constantly define your company by suggesting its impending demise.

Opel and Buick, Perfect Together?

The rumor du jour is that Buick and Opel will now begin to share some products, beginning as early as this year when the Opel Insignia hits our shores — not as the next generation Saturn Aura as was originally planned but as the revived Buick Regal. That shouldn’t come as much of a surprise as GM needs to fill its Buick-Pontiac-GMC stable with fresh models, something Opel can help do for it.

Buick is in the midst of a radical overhaul which began when the beautiful Enclave crossover was added to the fleet last year. Its LaCrosse sedan, the smaller of two sedans (the aged Lucerne being the other model) will be updated and replaced by a model now being sold in China, the brand’s largest market. The Regal would occupy the slot directly below the LaCrosse.

Opel isn’t likely to supply the Lucerne replacement as that car is much larger than anything the German brand now builds. Sharing the platform which powers the Cadillac DTS, the Buick Lucerne will most likely get a detuned version of the model GM says will replace both the Cadillac STS and DTS. The last we heard about that is GM is planning a front wheel drive model for it sometime around 2011 (why they won’t stretch the popular CTS’ platform to create this model is a mystery to me).

Orphaned Saturn To Buick Too?

If Saturn isn’t sold and their current product line with it, what will happen to its models? Well, the Aura and Astra would die as they are Opel transplants while the Sky would probably be discontinued as GM has no plans to continue with it or its sibling the Pontiac Solstice. The Outlook is already being sold as the GMC Acadia and Buick Enclave so unless GM loses its minds and decides that it should become a Pontiac, then we can kiss that model good-bye too.

That leaves the VUE which could be the perfect entry level crossover for Buick. With the Enclave serving on the upper end and the Vue on the lower end, Buick would have the two crossover models it needs going forward. As far as sedans go, the Lucerne, LaCrosse and Regal would fill out the Buick line as we know that going forward those two body styles will power the fleet.

Of course, coupe enthusiasts such as yours truly are imagining that the Buick Grand National could one day make its return, a two door sport coupe sitting on the Insignia-Regal platform.

Dream on!

readmore...

Caddy CTS-V Coupe Not Dead

The continuing soap opera that is GM (if not American car manufacturing in general) continues with more twists and turns than a misshapen corkscrew. In today’s installment, the part of young Doctor Powers, he who would save the youthful and well healed of Grosse Pointe is played by the Cadillac CTS-V Coupe. What? You thought that young Doctor Powers/ the Cadillac CTS-V Coupe was dead, killed when the evil “socialist” government overlords wouldn’t give enough of their money to poor, poor GM?

Nope, looks like the Cadillac CTS-V Coupe is alive.

According to some spy shots that turned up at SEMA’s website the other day, it looks like work on the Cadillac CTS-V Coupe is either continuing apace, or has picked back up again. As Chris, our supreme commander here at 1 Automoblog towers pointed out via email when he sent this my way, “Good thing though, it will ease the pain from the ex-XLR.”

Indeed, that had occurred to me as well. It seems that Caddy, via internal GM realignments, was slowly yet forcefully moving towards bringing some engineering heft and drivetrain muscle to Cadillac, something the division has needed since … well, near as I can remember about 1974. Seriously, just look at where Caddy is or has been for ages. Cadillac used to be the number one car company (or brand, if you will) in the world before WW II. Their company slogan was “Cadillac, The Standard of The World,” and they weren’t kidding. Everybody in the world looked up to them. Sure, maybe folks like Duesenberg or Bugatti could pick a bone or two, but Cadillac was, well, the Cadillac of car companies.

You wanted performance, technical innovation, comfort and speed? You seriously considered Caddy. Today? You want a nice comfortable car Aunt May will feel good in, you consider Cadillac … and that is a very long way to fall.

That was starting to change though. Cadillac was slowly making inroads into making rides that enthusiasts would consider, and they were banking on making cars that were more than a “consideration” for young-ish would-be buyers of BMWs and Mercedes. Check out the aforementioned XLR. That was essentially a Corvette drivetrain and chassis with a Caddy body featuring a retractable hard top. It was the first time Corvette had ever let its bits be used by another GM division (something that was like pulling teeth the way I heard it). The XLR, although not to my taste, was not a car to be trifled with.

More importantly, it signaled that Caddy was serious about recapturing its past glory, and there would be more like this to come.

Cars like the CTS-V sedan, with it’s big wompin-stompin’ mill and impressive chassis set up was next and served to further back up that Caddy claim of, “Yeah, we mean it.” Next up was a coupe version of the CTS-V, but a funny thing happened on the way to the drag strip. The world economy took a tumble … took a hell of tumble actually, and GM, a company that has been run from the accounting department since Sloan, decided to save costs by performing radical surgery on any appendix-like divisions or single car lines. So in addition to saying adios to divisions like Saturn, GM also disbanded its High Performance Vehicle Operations (HPVO) team, the same crew responsible for V-series Cadillacs, the Chevy Cobalt SS and HHR SS. And so we were told that the CTS-V coupe was buried.

But spy photographer Brenda Priddy told SEMA that the HPVO team still has one trick up its sleeve.

“The last time we saw a CTS Coupe V-series prototype was in August 2008. It’s absence since then, combined with GM’s Viability Plan submitted to Congress, had many thinking the hot-rod coupe had been killed off. These new photos show that the V-series coupe is alive and well,” Priddy says.

Priddy says that what she’s seen recently at test tracks looks production-ready down to the wheels, exhaust tips and V-series badging. The coupe even has the same wire mesh grilles, power dome hood, wider tires, larger wheels, huge brake calipers and two massive, center-mount exhaust outlets unchanged since the coupe was on the auto show circuit. Under the hood is the 6.2L, supercharged V8 LSA motor, that’s good for 556 hp and 551 lb.-ft. in the CTS-V sedan, expect the Coupe V ratings to be very similar.

“Anticipate the V-series coupe to start production next summer when the regular coupe starts rolling down the line at the Lansing Grand River plant,” is SEMA’s prediction, and who are we to argue.

Source: SEMA

Image from Flickr user brianapa

© Gearhead Media - Please visit Automoblog.net for more great content.

readmore...

44 Percent Loss And Chrysler Still Gains Ground

The U.S. auto industry continues to labor under its worst downturn of our generation, posting month over month losses above 35% for the fifth consecutive month. According to Autodata Corp. which tracks U.S. Light Vehicle Retail Sales, February 2009 numbers were down 41.3% for the month.

A Silver Lining Thanks To Three Asian Brands

That bit of news should be discouraging enough, but it isn’t entirely bad. Subaru and Kia both posted tiny gains for the month while Hyundai slipped just 1.5%. Subaru has been basking in having the right product mix for our times, including the 2009 Sport/Utility of the Year model in the Forester. The Hyundai-Kia Automotive Group has used both aggressive pricing and Hyundai’s liberal return policy to help bolster sales.

Every one of the Big Six car manufacturers saw sales drop by at least 37% for the month with Nissan sinking 37.1% while General Motors led losses with sales falling 53.1%. Particularly dismal for GM is Saab, which sold only 712 vehicles for the month, reflecting consumer worry that the brand would not be around for the long haul. Hummer and Saturn, two other makes GM plans to abandon suffered as well.

Something Positive From Chrysler LLC

Chrysler saw its sales fall by 44% but with one bright spot: light truck sales beat out Ford for the month as the smallest of America’s Big Three car companies slashed prices to the bone, offering incentives averaging a whopping $5556 per vehicle. Ford, on the other hand, trimmed its incentives somewhat which allowed Chrysler to pick up market share.

Not to let a positive moment slip by unnoticed, Chrysler LLC issued a press release with the following quote regarding retail sales:

“We see our retail number as a shining light of positive news,” said Jim Press President and Vice Chairman - Chrysler LLC. “By working together with our strong dealer body, we will continue to move the needle on sales and service. Additionally, our focus on quality is evident in the 2009 Dodge Ram, which continues to demonstrate our ability to improve the quality of our products. Recently reported data is not representative of the positive progress Chrysler has made over the last year. In the last 12 months, our corporate warranty claim rates are down over 30 percent.”

Sailing Out Into Unchartered Waters

Most definitely we’re living in a time that few people have seen before as the current economic downturn deepens.  Analysts have been comparing this recession to the 1982 beat down, but as each month passes 1982 isn’t looking all that bad. When Toyota and Honda, the industry mainstays, continue to report sharp losses, then the problem goes well beyond product offerings.

Clearly, Americans are terribly worried about the economy and many are in no mood to buy a new car. As unemployment surges and credit remains tight, then many more bad months can be expected.

This news bodes poorly for GM and Chrysler which are seeking additional federal money and could force Ford to join the chorus calling for help. The Obama administration hasn’t said what action they plan on taking beyond offering a small tax credit for new car buyers, a small gesture which isn’t having much effect on new vehicle sales.

See also: As Expected, January 2009 Sales Were Horrid

readmore...

Will the Opel Insignia Become the Buick Regal?

The General Motors saga is constantly evolving, requiring followers to keep a scorecard to track all of the changes. Certainly, the automaker’s problems date back a number of years, but its current woes seem to have been worsened by last year’s oil price fiasco and subsequent stock market collapse.

I first mentioned in October 2006 that Opel and Saturn would share a number of models and followed that up with numerous articles explaining the European origin of the Aura and Astra as well as the Saturn Sky making its way across the pond as Opels. Later, GM announced that by model year 2014 the two brands would be virtually seamless with most products shared (save for the Saturn Outlook crossover).

Opel’s Future Is In Doubt

Now that GM has apparently decided to kill off or sell Saturn, those plans have been canceled. Moreover, with GM looking to spin Opel off (or at least a share of its European brand), Opel’s future is in question as well.

Naturally, much of what is being aired as “news” lately is based on speculation, some of it coming from industry analysts with a healthy dose being suggested by GM itself: Better to make the news yourself than have the press constantly define your company by suggesting its impending demise.

Opel and Buick, Perfect Together?

The rumor du jour is that Buick and Opel will now begin to share some products, beginning as early as this year when the Opel Insignia hits our shores — not as the next generation Saturn Aura as was originally planned but as the revived Buick Regal. That shouldn’t come as much of a surprise as GM needs to fill its Buick-Pontiac-GMC stable with fresh models, something Opel can help do for it.

Buick is in the midst of a radical overhaul which began when the beautiful Enclave crossover was added to the fleet last year. Its LaCrosse sedan, the smaller of two sedans (the aged Lucerne being the other model) will be updated and replaced by a model now being sold in China, the brand’s largest market. The Regal would occupy the slot directly below the LaCrosse.

Opel isn’t likely to supply the Lucerne replacement as that car is much larger than anything the German brand now builds. Sharing the platform which powers the Cadillac DTS, the Buick Lucerne will most likely get a detuned version of the model GM says will replace both the Cadillac STS and DTS. The last we heard about that is GM is planning a front wheel drive model for it sometime around 2011 (why they won’t stretch the popular CTS’ platform to create this model is a mystery to me).

Orphaned Saturn To Buick Too?

If Saturn isn’t sold and their current product line with it, what will happen to its models? Well, the Aura and Astra would die as they are Opel transplants while the Sky would probably be discontinued as GM has no plans to continue with it or its sibling the Pontiac Solstice. The Outlook is already being sold as the GMC Acadia and Buick Enclave so unless GM loses its minds and decides that it should become a Pontiac, then we can kiss that model good-bye too.

That leaves the VUE which could be the perfect entry level crossover for Buick. With the Enclave serving on the upper end and the Vue on the lower end, Buick would have the two crossover models it needs going forward. As far as sedans go, the Lucerne, LaCrosse and Regal would fill out the Buick line as we know that going forward those two body styles will power the fleet.

Of course, coupe enthusiasts such as yours truly are imagining that the Buick Grand National could one day make its return, a two door sport coupe sitting on the Insignia-Regal platform.

Dream on!

readmore...