- Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials
Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed."
Romney is not rooting for the end of the biz, but he believes that bankruptcy is the only way to save it because it will force a reset, and that will be the only way for the Detroit 3 to rectify entrenched structural problems. These include UAW contracts -- "a new direction for the UAW," executive perks -- "sanity in salary and perks," getting rid of old blood -- "management as is must go," just for starters.
Romney believes that the auto industry is crucial to America's national interest in more ways than one. And he isn't against helping the U.S. automakers, but believes that a shock to the system is the only thing that can rescue it, long term. Have a look at the piece and let us know what you think -- but no need to make a decision yet; give it another few minutes, and we're sure someone else will have another prescription. Thanks for the tip, Mike!
[Source: New York Times, Photo by Mario Tama/Getty]Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt" originally appeared on Autoblog on Wed, 19 Nov 2008 19:21:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: GM, Opel
General Motors CEO Rick Wagoner has already stated that the only brand in his company's portfolio up for sale is HUMMER, but apparently this hasn't stopped interested parties from making their play for other marques under the General's umbrella. News broke today that German solar energy company SolarWorld has offered GM nearly $1.3 billion USD for the Opel brand that's sold exclusively in Europe. Broken down by Euros, SolarWorld is offering 250 million euros cash and another 750 million in bank credits. In return it wants Opel's four production plants and research center in Ruesselsheim, as well as rights to the Opel name and all that. A few other conditions that make the proposal extremely improbable are a complete break from GM and compensation payments of 40,000 euros per Opel worker for a total of 1 billion euros. So GM would basically get a billion euros for the sale of Opel and have to pay it all right back in compensation payments. Hmmm...
SolarWorld's angle here is to break off Opel from GM completely and attempt to create the world's first, true green car company. Without the economies of scale that come with being part of the GM fold, we suspect SolarWorld wouldn't get very far on its own. This deal is so far out of whack, one analyst remarked that he checked his calendar to see if it were April 1. While GM is certainly in dire straits, the world's largest automaker has already made it clear that Opel is not for sale, and if it were, we doubt this offer would even be considered. Thanks for the tip, everyone!
[Source: Yahoo! News]German solar energy company offers to buy Opel from GM originally appeared on Autoblog on Wed, 19 Nov 2008 14:50:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments - Filed under: Etc., Chrysler, LLC., Ford, GM
Earth to the not-exactly-Big 3 CEOs: When you fly to Washington to beg for an industry bailout, do yourselves a favor and leave the corporate jet at home. ABC News has thrown Rick Wagoner, Alan Mulally and Bob Nardelli directly under the bus, reporting that each exercised costly private jet perks for their joint appearance before Congress instead of setting an example by flying commercial.
In his taped report, ABC's Brian Ross points out that Wagoner's round-trip on the company G4 cost approximately $20,000. A first class, round-trip commercial ticket from Detroit would have instead cost around $900 (multiplied by however many people Rick had in his entourage). Ross questioned Wagoner about his using the jet as he was leaving the hearing. The GM CEO replied that it was used only for "urgent situations." Alan Mulally also flew private, presumably on the same Ford-owned jet that ferries him and his wife home to Seattle on the weekends. No details were given on Nardelli's travel specifics, other than that he too arrived on a private jet.
We understand that these are perks many CEOs enjoy, but when you're about to stick your hand out for billions of dollars, it might help to suck it up and slum it in First Class like the rest of us. Oh, wait. Of course, the first class cabin on a Northwest Airlines jet isn't as optimal for perfecting your presentation as a private, flying boardroom. On the other hand, a commercial flight would let the three CEOs all fly together so they can get their sob stories straight. Hang on to your wallets, everyone.
[Source: ABC News, Photo by Mark Wilson/Getty]Detroit CEOs fly private jets to Capitol Hill beg-fest originally appeared on Autoblog on Wed, 19 Nov 2008 11:30:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials
So here's a breakdown of what's going on in Congress concerning federal aid for U.S. automakers. A Senate bill expected to be voted on this Thursday would expedite funds for Ford, GM and Chrysler so that they could actually get the cash they need within 22 days after the bill becomes law -- should the bill become law. The $25 billion loan, paid back at an initial rate of 5-percent, would come out of the $700 billion bailout fund for financial institutions. The Senate's stipulations would be that the government receives "stock warrants or senior debt instruments to the government," similar to actions taken with banks that accessed the $700 billion. As well, top executives get no big payouts and stockholders get no dividends.
The rumblings on the track indicate that unless the folks in favor can change a lot of minds before Thursday, the Senate bill has little hope of passing. That makes it even more unlikely that a House version of the bill would pass, since it has even stricter requirements. The House bill would also get money for the automakers quickly, but would establish a Financial Stability Oversight Board that would have veto power over any auto company action that would cost more than $25 million. Who would be on that board and how would they be chosen? Who knows.
Latest word is also that the White House doesn't want to take money from the $700 billion bank bailout and use it for the auto industry. It would rather speed up disbursement of the $25 billion in low interest loans that was already approved for research into more fuel efficient vehicles and let the automakers use that for their current cash needs. The White House also wants, and the Senate bill requests, that Ford, GM and Chrysler give the Treasury "a detailed plan on how the government funds requested will be utilized to ensure the long-term financial posture of the company." Cue the dramatic music, some maniacal laughter and the late Vincent Price intoning: the plot thickens.
[Source: Automotive News - sub. req'd]The Skinny: Automaker aid from the Feds originally appeared on Autoblog on Tue, 18 Nov 2008 14:31:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: Sports/GTs, Supercars, Chevrolet, GM, Toyota, Rendered Speculation
It's usually fun to speculate on what the future might hold, but this is one case where we're not so enthused. First of all, nobody in their right mind really wants to see GM fold (at least they shouldn't), regardless of the fact that it has been mismanaged for a good portion of its 100-year run. There have been some seriously cool machines that have rolled out of GM's various divisions, not the least of which is the iconic American sportscar, the Corvette. The 'Vette has succeeded where others have failed in providing a relatively inexpensive way for Americans to enjoy world class performance, and things have recently taken a turn for the better with the Z06 and ZR1 models. But, what would happen to the American classic if the General were to go bankrupt and couldn't recover? Would the Corvette cease to exist?
This exact question is currently being contemplated by forum members at GM Inside News. One inexplicable suggestion is that Toyota would be the best automaker to take the reigns of the Corvette brand -- a theory that's been met with a fair amount of skepticism. After taking just one look at the latest 'Vette wearing a Toyota badge, we nearly shed a tear. The comments are open -- let the debate rage.
[Source GM Inside News]Heaven Forbid: A Corvette from Toyota? originally appeared on Autoblog on Mon, 17 Nov 2008 20:01:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials
"Thick and fast." That's the phrase that describes the opinions, pleas, advice, denunciations, and WTF? going on around the U.S. auto industry right now. Enter Congress, which is trying to figure out how to give Detroit automakers the $25 billion they were promised a few months ago. Congressmen are sounding off almost daily on what kinds of stipulations they want to attach to the loan/bailout/whatever you want to call it -- and that's just the ones who would vote for it at all.
Next up is Senator Bill Nelson, a Florida democrat, who wants U.S. automakers to achieve a fleet average of 50 mpg by 2020. Right now, the CAFE target is 35 mpg by 2020 -- a goal agreed upon only after a huge amount of jockeying in and out of Congress. Nelson asked, "Why should we be pouring taxpayer money into an automobile industry that has continued to resist higher miles per gallon, which has led us in part to the problems we're in?"
While that might sound like a great idea to some, it would cost a terrific sum of money to achieve. The Detroit Three need the money they're asking for just to get to Q2 of 2009, not to create a range of cars that would represent magnificent advances -- based on where we are right now -- in 11 years. There's a good chance nothing will be decided until the president-elect takes office, and by then, who knows what other requests Congress will have.
[Source: Automotive News - Sub. Req.]Senator calls for 50-mpg mandate for Detroit to receive aid originally appeared on Autoblog on Mon, 17 Nov 2008 19:29:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: GM, Earnings/Financials
From November 28 to December 11, GM is holding back incentive payments to dealers, including dealer cash and customer cash. Why? in the words of Mark LaNeve, GM's VP of North American sales, because "Anytime you can delay any kind of a payment, it helps cash flow" And cash is probably the most important four-letter word in any GM dictionary.
The withheld payments don't cover all the monies that GM sends to dealers, just various incentives. According to Automotive News' numbers, the two weeks of extra cash could let GM hold on to an extra $300 million. If GM needs $14 billion per month to operate, $300 million would extend the lifeline by... almost another day. Payments after December 11 would resume on a weekly basis, but with the new two-week delay, something like an employee paycheck. GM discussed the plan with the National Dealer Council beforehand and, unsurprisingly, the council understood. Follow the jump to read LaNeve's letter to dealers.
[Source: Automotive News - Sub. Req.]Continue reading GM to delay dealer incentive payments
GM to delay dealer incentive payments originally appeared on Autoblog on Mon, 17 Nov 2008 18:31:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: GM, Suzuki, Earnings/Financials
General Motors CEO Rick Wagoner mentioned last week that, in addition to selling the HUMMER brand, other assets were being evaluated for sale, as well. While no other brands are likely to be sold off besides HUMMER, GM did announce this morning that it's selling all of its remaining stock in Suzuki. GM owns 16,413,000 Suzuki shares, which is about 3% of the Japanese automaker's traded stock. The value of the sale is estimated at $230 million, all of which should help keep the lights on at GM for an extra day or two if some form of government aid isn't approved this week by Congress.
Despite selling off its remaining interest in Suzuki, GM is still very much interested in continuing the two automakers' working relationship and may end up repurchasing a stake in the future. The giant American carmaker's interest in its Japanese competitor has fluctuated over the years, peaking in 2001 when it held over 20% of Suzuki's outstanding shares. In 2006, however, it sold 17.4% before today's unloading of the remaining 3%.
[Source: General Motors]Continue reading GM selling remaining Suzuki stake for $230M
GM selling remaining Suzuki stake for $230M originally appeared on Autoblog on Mon, 17 Nov 2008 11:00:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments - Filed under: Government/Legal, Chrysler, LLC., Ford, GM
Today's lame-duck Congressional meeting is going to be an important one for Detroit automakers, with House Democrats working on a $25 billion bailout proposal. Passion is high on both sides of the bailout argument, and Democrats are looking to toughen up a bill to help gain crucial votes needed for passage. Among the items being discussed is a taxpayer stake in any assisted automaker, additional restructuring and stiff restrictions on executive pay.
House Republican Richard Shelby is one of many leaders likely to vote against the bill no matter what stipulations are added. The Alabama Republican called Detroit Automakers "dinosaurs" that need to start over. He also called for management to go, but he stated that he wouldn't support a bill even if they did. Michigan Democrat Senator Carl Levin suggested that if GM CEO Rick Wagoner had to step down to guarantee aid, he should consider it. GM is pleading for a bridge loan both in Washington and on YouTube, where the automaker released a four-minute video explaining the importance of its industry.
President-Elect Barak Obama also chimed in on the automaker bailout situation on 60 Minutes Sunday, stating that the loss of Detroit Automakers would be a disaster for the country. Obama also insisted that any loan can't be a "blank check," and that industry leaders, labor, suppliers, lenders, and stakeholders needed to agree on a long term solution that shows that loans aren't merely delaying the domestic industry's demise.
[Source: Automotive News - Sub. Req.]Continue reading Congressional Democrats looking to toughen up bailout proposal
Congressional Democrats looking to toughen up bailout proposal originally appeared on Autoblog on Mon, 17 Nov 2008 08:27:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: Government/Legal, Hirings/Firings/Layoffs, GM, Earnings/Financials
General Motors' CEO, Rick Wagoner, who's been manning the helm for the last eight years and a part of its staff since 1977, has taken some heat for asking the Feds for a bailout. A possible condition for those funds may be the symbolic sacrificial death of its current leader, according to a slew of analysts polled by Bloomberg. Whether true of false, there seems to be a sense that the CEOs of U.S. automakers are some of "the dumbest people in the world," according to ex-Chrysler prez. Thomas Stallkamp. Ouch. Ford has stated that it doesn't need a bailout and Chrysler is actively looking for partners to keep itself alive.
In the last few months, when the government has bailed out institutions such as AIG, Fannie Mae and Freddie Mac, one stipulation was that its top management be replaced, and that sentiment may stick around if the Detroit 3 receive packages of their own. Although Wagoner isn't likely to step down willingly, he may not be given the choice if some legislators get their way. Here's an unanswered question, though... who would be the best man to replace him?
[Source: Bloomberg]Calling for GM bailout may cost Wagoner his job originally appeared on Autoblog on Fri, 14 Nov 2008 16:42:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: GM, HUMMER, Saab
General Motors CEO Rick Wagoner has confirmed that HUMMER is the only brand in the automaker's portfolio that's up for sale. Many believed that Saab's days were also numbered and the Swedish brand would be getting out from under the corporate umbrella as soon as a buyer could be found. Not so says the Ricker. Other brands thought to have been out on the lawn behind a For Sale sign included Opel-Vauxhall, GM of China and Holden. While HUMMER may be the only GM brand for sale, the automaker is certainly keen to sell other assets weighing it down. Wagoner didn't elaborate on which assets those might be, but his company's remaining 49% stock in GMAC doesn't seem to be doing it any good.
[Source: Autocar, Photo by Bill Pugliano/Getty]Wagoner: HUMMER is the only brand for sale originally appeared on Autoblog on Fri, 14 Nov 2008 11:59:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments - Filed under: Convertibles, Chevrolet, GM
Click above for a high-res gallery of the Chevrolet Camaro convertible concept
We weren't surprised when Chrysler decided to nix plans for a Dodge Challenger convertible. The LX-based coupe wasn't developed with a drop-top variant in mind and it would've taken far too much cash to shore up the chassis with the roof removed. And if you hadn't heard, Chrysler isn't doing too well in the cash department.
Now, MotorTrend is reporting that General Motors is delaying the launch of the Chevrolet Camaro Convertible for the same reason, putting off the introduction for another year as the General attempts to keep its head above these financially troubled waters. Spending on such extravagances is hard to justify for both GM and consumers, and if the Federal bailout goes through, it's safe to assume that legislators and the public us would have hard time seeing our tax dollars being used to sell a niche vehicle.
[Source: MotorTrend]Chevrolet Camaro convertible on hold originally appeared on Autoblog on Thu, 13 Nov 2008 15:58:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: Etc., Government/Legal, Chrysler, LLC., Ford, GM, UAW/Unions
When Congress wants to hand out money, it apparently wants to include everybody. Barney Frank, Chairman of the House Financial Services Committee, is likely to propose a measure that lets automakers tap into the $700 billion vein of rescue dollars that's ostensibly intended for financial institutions, yet is being hungrily eyed by everyone.
CEOs from Ford, General Motors, and Chrysler will make the trek to Washington, DC, as will UAW chief Ron Gettelfinger. All will be pleading their collective case for an estimated $100 billion-plus vitamin pill. Many, not the least of whom is Treasury Secretary Henry Paulson, think that automakers should not be allowed to snag some of the cash that's intended for financial institutions. Things look bleak for all three of the brands, but can Congress be moved to offer up some money and prolong the jobs of so many Americans? Even if the automakers get the $100 billion they're seeking, when nobody's buying, it will merely turn into taxpayers funding an increasing glut of product nobody can afford to buy. Even those consumers with money and good credit are holding back as the economy delves into recession, emotional purchases are way down, and most vehicle purchases are driven by wants versus needs. Things will undoubtedly sort themselves out, but not before more pain for Detroit.
[Source: Automotive News - Sub. Req.]
Detroit CEOs and UAW chief summoned to Washington originally appeared on Autoblog on Thu, 13 Nov 2008 13:32:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | Comments - Filed under: In the Autoblog Garage, Crossovers/CUVs, Chevrolet, GM
Click above for high-res gallery of the 2009 Chevy Traverse LT
After months of reviewing only family-oriented transportation, this particular blogger began a streak of judging high-horsepower sports coupes. It's damn near impossible to complain about something with more power than anyone should ever need, but after a while my family got tired of trying to shoehorn five-year-old twins into the cramped back seat of a coupe. That's why we were most relieved to see that the 2009 Chevy Traverse was ready for a run in the Autoblog Garage.
The Traverse is the latest though maybe not last Lambda crossover, and since it dons General Motors' high volume Bow Tie badging, it's likely the most significant, as well. It is GM's least expensive eight-passenger crossover while also carrying the distinction of being the most efficient and most powerful Lambda. Does that make the Traverse the best of GM's Lambda litter? We took on the massive people hauler for a week to find out for ourselves.
Photos copyright (C)2008 Chris Shunk/Weblogs, Inc.Continue reading In the Autoblog Garage: 2009 Chevrolet Traverse LT
In the Autoblog Garage: 2009 Chevrolet Traverse LT originally appeared on Autoblog on Thu, 13 Nov 2008 12:00:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments - Filed under: Etc., Chrysler, LLC., Ford, GM, Volkswagen
In 2001, General Motors needed a revival and Bob Lutz was anointed The One. It was widely accepted that if anyone could breathe life into a struggling car company, it was him.
Fast-forward seven years, and GM is in the midst of a possible government bailout while its stock price sinks faster than a HUMMER's gas gauge on the freeway. It would seem that Maximum Bob's legendary straight-talking reputation for taking no prisoners and slicing through corporate red tape hasn't produced the results his supporters expected.
So if Bob Lutz can't save Detroit, who can? Steve Jobs, that's who. At least that's what Pulitzer Prize-winning Thomas Friedman says in his New York Times column. While some might be averse to the company, its products and/or its leader, Apple has made a ton of money while re-defining the computer, music and mobile phone industries. Isn't innovation what Detroit needs most?
What Friedman proposes is asking Steve Jobs to perform a "national service" for his country by taking reigns of one of Detroit's automakers for a year. The columnist has so much faith in the visionary talents of Jobs, he believes we'll all be lined up for a chance to buy a shiny new Chevrolet iCar. Or a JeepPro. Or a Mercury Lisa.
But we've heard in the past that Apple's CEO has been working for the other teams, so maybe Steve Wozniak could find some time in his schedule.
[Source: The New York Times via MacDailyNews]NYT columnist calls on Steve Jobs to fix Detroit originally appeared on Autoblog on Wed, 12 Nov 2008 17:01:00 EST. Please see our terms for use of feeds.
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Archive for the 'GMC' Category
Thursday, August 2nd, 2007
-Filed under: Trends, Crossovers/CUVs, Buick, Chevrolet, GM, GMC, Pontiac
Stricter mileage standards being voted on by the government is already taking its toll on automakers like GM, which now have to shift focus onto smaller and more fuel efficient vehicles. Traditional bread winners such as big heavy SUVs are being phased out by a new generation of smaller and more car-like crossover models.
To ensure that it can retain buyers downsizing from large SUVs to more fuel-efficient models, GM will be introducing a new compact crossover to essentially replace the Pontiac Torrent (pictured). However, under its new brand strategy, Pontiac will be strictly for cars while GMC will be responsible for truck sales, which means the new model will be branded as a Buick or Chevrolet.
It isn’t the end of the road yet for GM’s full-sized SUV models. Vehicles like the Chevrolet Tahoe and GMC Yukon SUV will be equipped with hybrid options to ensure they continue beyond the current generations. The Acadia large CUV is also planned to receive a V8 in a couple of years, while the Envoy SUV from GMC will likely suffer the same fate as the Trailblazer.
[Source: Automotive News - sub. req’d]
Posted in World Cars, Passenger Cars, Automotive News, BUICK, CHEVROLET, GMC, PONTIAC | No Comments »
Thursday, March 3rd, 2005
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Wednesday, March 2nd, 2005
Details info:
Type : пикап
Amount of the Doors :
The Place Seatings :
The Place Seatings макс. :
Sizes and mass : Length x width x height, mm : 5783 x 1994 x : Wheel base, mm : 3645
Type of the engine : gasoline
Preparation to air gas :
Design of the engine : V-figurative
Наддув :
Amount cylinder : 8
Amount valve on cylinder :
Volume of the engine, sm3 : 6000
Maximum engine size, sq / ls : / 325
Frequency of the rotation under maximum power about/mines :
Maximum turning moment, Nm :
Frequency of the rotation under maximum turning moment about/mines :
Class bad material :
Drive :
Gearbox : automatic
Amount of the issues : 4
Front springs :
Back springs :
Front brake : disc ABS
Back brake : disc ABS
Buses : P265/70R17
Buses back travell about : P265/70R17
Runaway before 100 km/ch, sec. :
Maximum velocity, km/ch :
Consuption fuel in town cycle, l/100 km :
Consuption fuel in country cycle, l/100 km :
Consuption fuel average, l/100 km :
Volume of the tank, l. :
Type fuel :
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Wednesday, March 2nd, 2005
Details info:
Type :
Amount of the Doors :
The Place Seatings :
The Place Seatings макс. :
Sizes and mass : Length x width x height, mm : 4366 x 1905 x 1618 : Wheel base, mm : 2868 : Full mass, kgs : 1589
Type of the engine : gasoline
Preparation to air gas :
Design of the engine : V-figurative
Наддув :
Amount cylinder : 6
Amount valve on cylinder :
Volume of the engine, sm3 : 3400
Maximum engine size, sq / ls : / 185
Frequency of the rotation under maximum power about/mines :
Maximum turning moment, Nm :
Frequency of the rotation under maximum turning moment about/mines :
Class bad material :
Drive :
Gearbox : automatic
Amount of the issues : 4
Front springs :
Back springs :
Front brake :
Back brake :
Buses : 265/55R19
Buses back travell about : 265/55R19
Runaway before 100 km/ch, sec. :
Maximum velocity, km/ch :
Consuption fuel in town cycle, l/100 km :
Consuption fuel in country cycle, l/100 km :
Consuption fuel average, l/100 km :
Volume of the tank, l. :
Type fuel :
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Wednesday, March 2nd, 2005
Posted in GMC | No Comments »
