Auto & Car Blog

Filed under: Government/Legal, GM, Pontiac, Saab, Saturn

When ants need to cross some dangerous span in order to get to the thing they want, certain ants in the colony will sacrifice themselves to build a bridge that other ants can cross. That’s how you get the honey. In GM’s case, the honey is a $12 billion government lifeline. The dangerous span is, well, extinction. And the sacrificial ants in this case could be Pontiac, Saturn, and Saab.

Before the government would start writing checks (to the automakers, at least), Congress told GM (and Ford and Chrysler) to come back with a plan that gave some indication of long-term viability and a return to financial health. Supposedly, as part of such a plan, GM has looked at “shedding” the three brands in question, which would eliminate the massive costs associated with production, marketing and sales. But that would happen after massive payouts, some serious upheaval and tens of thousands of job losses. It would leave GM with Chevrolet, GMC, Buick, and Cadillac… which, since it’s in ruthless survival mode, makes us wonder what kind of crush GM has on GMC. GM will release a 10-to-12 page plan to the public making its case and Congress has scheduled a hearing on the matter for December 5th.

In the article, the word “shedding” is used to describe what GM would do with Saturn, Pontiac, and Saab. But we don’t know where and how they would shed them. Saturn is a misfit child (not really Saturn’s fault), Pontiac is unsure of itself (except when it comes to the G8 triplets and the Solstice), and Saab sold about 33,000 cars in America last year and 125,000 around the world. With the state of lending and credit markets, it would probably be easier to buy a pterodactyl than get a loan to buy one of GM’s brands. HUMMER’s already been on the block so long it’s about to get arrested for loitering. So is “shedding” a euphemism for “bye-bye…”? We’ll know soon enough. Thanks to all who tipped in.

[Source: Bloomberg]

Would GM shed Saab, Saturn and Pontiac to secure gov’t aid? originally appeared on Autoblog on Fri, 28 Nov 2008 10:15:00 EST. Please see our terms for use of feeds.

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Filed under: Hirings/Firings/Layoffs, GM

The old equation holds true: fewer cars sold means fewer workers required to assemble them. This basic truth has been proven once again with GM’s announced lay-offs of some 1,500 hourly workers, The cut’s breakdown includes about 700 workers from General Motor’s Pontiac assembly plant, about 400 each at both its Wilmington, Delaware, assembly plant and its Detroit-Hamtramck facility.

In Pontiac, where GM assembles full-size trucks, the worker reduction is necessary as General Motors reduces its output to just 24 trucks per hour from 55 per hour. In Detroit, the General will cut its Buick Lucerne and Cadillac DTS production from 56 units per hour to 38, and in Delaware where the Pontiac Solstice, Saturn Sky and Opel Roadster are built, production has already been cut in half. This announcement comes just days after GM said it would close plants located in Grand Rapids, Michigan and Janesville, Wisconsin.

[Source: The Detroit News]

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Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, LLC., GM, Earnings/Financials, UAW/Unions, Rumormill

In 1987, Chrysler purchased the American Motors Corporation from Renault, and all AMC models ceased to exist shortly thereafter. The only survivor was Jeep, which was really the only brand worth rescuing. Could something similar happen today if GM “merges” with Chrysler? Once again, Chrysler’s most desirable asset is the Jeep brand, along with its minivans - a segment that General Motors has completely abandoned in favor of three-row crossovers. In such a scenario, the Chrysler and Dodge brands would basically cease to exist, with General Motors phasing the products it wants into its own lineups. Newer, efficient plants could be converted to build GM vehicles, which would allow the General to close older plants and lose excess production capacity that isn’t needed. Any cash that Chrysler has on hand would allow GM to float its own operations that much longer before returning to profitability. This is a simplistic overview, but it is a possibility being floated around by analysts that would explain why GM has any interest in Chrysler at all. We imagine there would be huge opposition to the situation playing out like this, not the least of which would come from the United Auto Workers union, which makes us wonder how likely such a “merger” could possibly be.

[Source: The Detroit News]

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Filed under: Car Buying, Marketing/Advertising, GM, GMC, Earnings/Financials

After announcing earlier this week that GMAC would only finance customers who hold credit scores higher than 700, General Motors has decided it would be prudent to reassure consumers that they are still in the business of securing loans and selling vehicles. Starting Friday, GM will launch a “Financing That Fits” campaign on a national level. Through advertising on television, newspaper, radio, and the Internet, GM will promote dealer financing with GMAC Financial Services and, for the first time, with other lenders. To further restore consumer confidence, the ads are also designed to promote the experience and expertise of the dealership professionals who work in finance and insurance. The economy has taken a serious toll on GM’s showroom traffic over the past few weeks, and the announcement Monday of stricter lending policies dried up business even further. The automaker is hopeful that its new ad campaign, and cash-back deals of up to $6,000 on every 2008 vehicle left in stock, will bring them back in.

[Source: Automotive News, subs. req’d]

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The GMC Sierra is differentiated from other trucks with the motto “Professional Grade.” “Professional Grade” in quality engineering, attention to detail, and going beyond “Good Enough,” to be the best!GMC Sierra has gone above and beyond in creating a …

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Filed under: Government/Legal, GM

You know what they say: “Buy low and sell high.” General Motors stock closed at $9.45 on September 30, which is 78% below its 52-week high of $43.20. That little piece of news, coupled with GM’s enormous financial losses and declining sales, makes stock in the 100-year-old company sound like a bad bet, but employees don’t agree. The low price of GM shares has lead workers to snatch up all available employee purchasable stock, which is capped by volume in the company’s two 401(k) programs. As a result, GM employees can no longer buy stock in the automaker through the company. Because of the share freeze, GM executives are also not allowed to buy, sell or trade any of the company’s stock during this time due to the Sarbanes Oxley act. To obtain more employee purchasable shares for its 401(k) program, GM has to register more shares with the SEC, which is expected to happen on November 9.

[Source: Detroit Free Press, Photo by jzakariya | CC2.0]

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Filed under: Car Buying, Coupes, Chevrolet, GM

The highly anticipated 2010 Chevy Camaro is now only a few months from hitting the showroom floor, and we’re just getting the final scoop on standard and optional content that will be available for all five Camaro variants. Customers wanting to order a Camaro can choose from LS, 1LT, 2LT, 1SS and 2SS models, and standard and optional equipment varies greatly between each package. The base model LS comes equipped with OnStar, 18-inch rims, and a 300-hp V6 engine, and the only optional item is floor mats. The 1LT package includes optional 19-inch rims, a Boston Acoustics sound system and a sunroof. The 2LT gets standard 19s, the sound system, leather seats, ambient lighting and Bluetooth and USB connections.

If you want your Camaro to include a 422-hp V8, you’ll need to step up to the SS. The 1SS package includes standard 20-inch rims, four-piston Brembo brakes, a limited-slip differential and engine and transmission cooler. Options include polished aluminum wheels, a sunroof, and the upgraded sound system. The 2SS model adds all the standard features of the 1SS package and the 2LT package plus options including dual rally strips, a sunroof, and the Inferno Orange Accent interior. All trims except for the LS model have the option of adding the RS package, which gets you 20-inch rims, HID lamps, a spoiler (for the LT model), a Midnight Silver paint finish, darkened tail lights, and body colored molding.

Camaro sales may still be a few months away, but you’ll be able to order yours at a local dealer beginning October 13. The complete list of standard and optional equipment is available for your perusal after the jump.

[Source: Camaro5]

Continue reading 2010 Chevy Camaro standard and optional equipment list revealed

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Filed under: Economy, Sedans/Saloons, Paris Motor Show, Chevrolet, GM

The Chevrolet Cruze is three kinds of car: small, American and important. And with the state of General Motors, it isn’t even the individual words that mean the most: it’s whether The General can combine them into a reliable, fuel efficient and cost effective package. True, we don’t get to drive these things while they’re parked under the lights, but to have a seat in the Cruze is to imagine a GM that begs the question, “Where was all this before the meltdown?” The studio imagery we’ve seen so far translates nicely into real life, and the center console looks and feels substantial - in fact, it looks like it could be foreign - even if the silver mesh treatment in the show car was a bit much. The car has a compact yet full-bodied stance, and will probably look even better on the road in a color other than scarlet, and not under klieg lights. Spring of ‘09 will welcome this first Cruze variant to Europe, after which other regions will get it, as well as a probable hatchback and wagon. It will be powered by a 1.4-liter turbo four-cylinder that charts up to 140 hp and is said to return 40 mpg. Have a look at the high-res gallery of live shots below to get a better idea of what to expect when the Cruze goes on sale here in a couple years.

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Filed under: Car Buying, Chevrolet

Bill Heard Enterprises sells more Chevy cars and trucks than any dealer in the world, but that distinction isn’t enough to keep the doors open at the dealer’s 13 stores. The soft economy, fuel prices and an over-reliance on the sales of trucks and SUVs were the reasons stated for the demise of these Chevy superstores. Another possible reason for the mass closure could have something to do with a pending suit against Bill Heard Enterprises involving signature forgery and deceptive marketing that could result in up to $50 million in fines.

2,700 people worked at the stores, and now all of those workers are out of a job. The dealer consortium didn’t give workers any notice, either. Managers were told yesterday at 2PM that the stores were closing, and the doors are locked today. Customers with vehicles in the service area were told to pick up their cars, fixed or not, and customers arriving to pick up their new cars were given back their trade-ins. What a mess. We know GM is looking to cut back on its overpopulated dealer-body, but we’re pretty sure the General would want the situation handled better than this.

[Source: Automotive News, sub. req’d]

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Filed under: Safety, GM

Needless to say, stealing cars is big business. If your vehicle becomes a target for thieves, there’s a good chance it will be stripped of its parts and scrapped within days or even hours of being stolen. There are plenty of security options to locate your vehicle, but OnStar takes it one stop further by powering down the vehicle in a safe fashion. A simple call between you, the police, and OnStar can activate the vehicle slowdown system, which lets the driver continue to steer and brake as needed, but the engine decelerates until the vehicle stops safely.

The bloggers over at Kicking Tires took a Chevy Impala equipped with Stolen Vehicle Slowdown for a spin to see exactly how it works. Hit the jump to view the video, and let us know if you think OnStar’s system will deter thieves from stealing GM products.

[Source: Kicking Tires]

Continue reading VIDEO: See how OnStar’s Stolen Vehicle Slowdown works on the road

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Filed under: Etc., Chevrolet, GM, Honda, Toyota

Bloggers love environmentally friendly cars. Or so it seems, according to research performed by J.D. Power and Associates. The most commonly referenced brands in blog posts over the last six months are Toyota, Honda and General Motors. This shouldn’t come as shocking news, considering that the Toyota Prius, Honda Insight and Chevy Volt are all hot topics right now and are all expected to be thoroughly redesigned or first introduced within the next few years. Naturally, then, these are the brands that are getting the most publicity and are likely the ones that you are most interested in hearing about.

Not all of the blog posts were positive, though, and JDP therefore kept separate numbers for each manufacturer counting how many good things were written about their sustainability and efforts to reduce global warming. The surprising winner of that group was Nissan, though that brand only got two percent of all mentions overall. We blog, they watch, we blog. Fun!

[Source: The Car Connection]

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Filed under: Hybrids/Alternative, Sedans/Saloons, Wagons/Estates, Green, Chevrolet, GM, Pontiac, Saturn

GM is not going to let the Volt or its E-Flex powertrain get lonely. The first Volt — the one due in late 2010 — hasn’t been finished yet, yet is so popular that GM is publicly theorizing about how far it can spread the technology through the empire. Ideas include a smaller car with a smaller battery pack that could go 20 miles on pure electric, and be much cheaper. A proper wagon, just “a little bit bigger,” could also make the cut.

And those variants don’t all need to be Chevrolets. Other GM brands will certainly be blessed with Volt technology, if not an outright case of brand engineering. Cadillac is one of the wolves thought to be circling the Volt’s henhouse, and using Volt systems in a Caddy might allow GM to make a profit on such a car without tax breaks. If there were a more economical Volt with a shorter electric range, Saturn would seem to be a prime candidate.

It looks like the sole E-Flex powertrain option not planned is an electric-only car, one without a range-extending gasoline engine. GM feels that people would find it too risky to have no backup. But back to that first car, the plain vanilla Chevy Volt that’s still two years away from showrooms - a Volt team member doesn’t appear to have forgotten the prime directive: “You always have to do the first car right and well.” Amen.

[Source: CNN Money]

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Filed under: LA Auto Show, Crossovers/CUVs, GM, Saab

The LA Auto Show is still a couple months away, but images of vehicles set to be unveiled in the land of fruits and nuts are already leaking onto the web. GM’s Chilean website had the above photo of the production Saab 9-4X available for all to see earlier today, so now we know the production model looks almost identical to the 9-4X Biopower concept from last year’s Detroit Auto Show. We’d be interested to see if the concept’s integrated tail pipes and large front/side air dams make it to production but, judging from spy photos we’ve seen, probably not. The 9-4X will be built on the same platform as the upcoming front- or all-wheel-drive Cadillac SRX, which will also be unveiled this auto show season.

We don’t have many details on the 9-4X just yet, but it will have a turbocharged 2.0L engine with 245 hp and 265 lb-ft mated to a six-speed automatic. The concept also ran on ethanol, which is also likely for the production vehicle considering that two thirds of all vehicles in Sweden are of the flex fuel variety. Other engine choices could include GM’s 3.6L V6, which is likely to be found under hood of the SRX at launch, and an upcoming 250-hp 2.9L diesel. Either way, European customers will likely have an engine lineup twice as large as what we’ll be offered in the U.S.

UPDATE: Saab has confirmed that the image above is not the production 9-4X, but rather a creative photoshop of the 9-4X Concept from last year’s Detroit Auto Show produced by third-party reps down in Chile.

[Source: Motor Authority]

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General Motors officially unveiled its much-anticipated production version of the Chevrolet Volt, its extended-range electric vehicle, just in time to kick off its next 100 years. The automaker is celebrating its one hundredth year this year. “Revealing the production version of the Chevy Volt is a great way to open our second century,” said Rick […]

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Filed under: Hybrids/Alternative, Government/Legal, Green, Chevrolet, GM, Toyota

Automotive News reports that Toyota is preparing a statement for a congressional hearing on the progress of EVs, the results of which could influence legislation that gives a big $7,500 tax credit to any hybrid with a battery pack rated at 6 kilowatt-hours of electricity or more. Toyota argues that the legislation is too restrictive and redefines what a hybrid is since the only vehicle eligible (that we know about) would be the 2011 Chevy Volt with its 16 killowatt-hour battery pack, though Toyota never calls out the series hybrid by name.

For reference, the current Toyota Prius uses a battery pack that generates 1.3 killowatt-hour, and judging by the Japanese automaker’s reaction to this legislation, we doubt that its plug-in hybrid electric Prius currently under development uses a battery pack powerful enough, either. Nevertheless, there could be other hybrids being developed besides the Volt that would be eligible, which would poke a big hole in Toyota’s argument. Also, as AutoblogGreen points out, this legislation will likely change many times before it becomes law.

The government is right, however, to put higher restrictions on what is eligible for a tax credit of this size. Current hybrid tax credits have topped out around $3,000, with the largest on record being for the Prius itself at $3,150. If the government is considering offering more than twice that amount for future hybrids, then we think it’s fair they raise the bar on what should be eligible.

[Source: Automotive News, sub. req’d]

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Filed under: Hybrids/Alternative, Sedans/Saloons, Green, Videos, Chevrolet, GM

General Motors’ goal for the exterior of the 2011 Chevy Volt is to create as much pizazz as possible with superior aerodynamics to ensure the least amount of parasitic loss for the electric drivetrain. The interior, however, is all about how the driver interacts with the vehicle. And with the Volt, GM designers attempted to pull off a Buck Rodgers meets Apple iPod theme.

A quick glance at the futuristic Volt interior shows a very unique approach to integrating design and technology. The first thing we noticed was that GM decided to use two seven-inch LCD screens, with one working as the main driver instrument panel (no gauge cluster here) and the other for everything from navigation to tracking battery charges. Both screens are user configurable, and two different configurations can be saved for two different drivers.

Follow the jump for more including a video demonstration of the Chevy Volt’s interior by one of its designers.

Continue reading VIDEO: Walkthrough of 2011 Chevy Volt interior

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Filed under: Hybrids/Alternative, Sedans/Saloons, Green, Hatchbacks, Chevrolet, GM

Everyone who has been waiting with bated breath for the past year and a half to see the production version of the Chevy Volt can now breathe a big sigh of relief. After some extremely unflattering press shots shots were accidentally released last week, people were extremely disappointed with what appeared to be little more than a Prius clone. Anyone who spends time photographing cars knows how hard it can be to make them look good and how easy it is to make them look really awful. Unfortunately, those shots that were unapproved and never supposed to be released anyway fell into the latter category.

The car that GM rolled out this morning as part of its centennial celebration in Detroit is a much more attractive machine that while different from the concept is still very attractive. Rather than the egg shape look we saw, it’s actually much more like the car we saw in the Transformers 2 spy pics a few weeks back. The greenhouse is longer and the raked back windshield gives a very slick look. Perhaps the most controversial aspect of the design is the black trim around the side windows. The thick black border along the lower edge is meant to recall the transparent beltline of the concept. It definitely works better in darker colors where there is less contrast. On the inside, a fully configurable LCD instrument cluster allows different drivers to select the gauges they want to see. Overall the design team appears to have created a car that while certainly more mainstream than the concept, is still recognizable as the Volt and something different from the Japanese brand hybrids.

UPDATE: More live shots are on their way. Wi-fi at the GM Renaissance Center is particularly bad this morning.

UPDATE 2: First gallery of live shots added below, and here are some live shots from autoblog china (Shanghai).

UPDATE 3: Video of the actual reveal added after the jump!

Continue reading Officially Official: GM reveals the 2011 Chevy Volt!

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By Bob Lutz
GM Vice Chairman
Here’s something that arrived in my e-mail inbox recently from an old friend. I thought I’d pass it along to the FastLane crowd, because I know you’ll find it as interesting as I did. The Big Three has taken a lot of heat in recent years over falling sales in the […]

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General Motors announced that it will invest half a billion dollars to build and develop a new compact sized car, the Chevrolet Cruze. The Cruze is set to be officially unveiled at the Paris Motor show this October. It will be built at GM’s Lordstown, Ohio plant which also assembles the Chevrolet Cobalt and Pontiac […]

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General Motors has announced Employee Pricing to the public. You pay what GM Employee’s Pay! This is a great time to buy a new car because not only do you get Employee Pricing, but you also receive the rebates or low interest rates that are available…

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