Autoblog

REPORT: Fed predicts it will lose $30B on auto industry bailout

Chris Shunk — Thu, 10 Dec 2009 13:27:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back and estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers

Chris Shunk — Wed, 09 Dec 2009 10:29:00 EST

Filed under: Plants/Manufacturing, Chrysler, Ford, GM

The first quarter of 2009 could best be described as the worst of times in the auto industry. With the full weight of the global financial collapse weighing down on the industry, sales dropped like a stone and production screeched to a halt. General Motors and Ford produced only 371,000 and 349,000 vehicles respectively during Q1 2009, a mere fraction of the industry giants' overall capacity. One year later, the auto industry here in the U.S. is still far from healthy, but many industry experts feel the market has stabilized.

Evidence of that fact presents itself when looking at production data for the fourth quarter of 2009 versus the first quarter of 2010. Automotive News is reporting that Ford plans to build 550,000 cars and trucks in the first quarter while GM plans 650,000 units. While that's a bump of 58 percent and 75 percent versus Q1 2009, respectively, the numbers are within a few thousand units of Q4 production. But even compared to Q4, production is up around four percent for both Ford and GM - a hopeful sign for the industry.

But while GM and Ford appear to have good production news, AN is reporting that the forecast is a bit cloudier for Chrysler. The Pentastar's recent announcement that it would prolong shutdown over the holidays throws some doubt on the Auburn Hills, MI-based automaker's reported plan to increase Q1 2010 production by 56% versus Q1 2009. While Chrysler was supposed to up production to 376,000 units, the shutdown could drop production by up to 30,000 units.

[Source: Automotive News - subs req'd | Image: Scott Olson/Getty]

REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers originally appeared on Autoblog on Wed, 09 Dec 2009 10:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Spencer Stuart tasked with finding new GM CEO

Jonathon Ramsey — Tue, 08 Dec 2009 16:20:00 EST

Filed under: Hirings/Firings/Layoffs, GM

Headhunting firm Spencer Stuart is without doubt on the speed-dial lists of bailed-out firms, having placed chairmen, CEOs, Chrysler Group LLC, and board members for AIG, Citigroup Inc., Freddie Mac, Fannie Mae, and GMAC. Then they flew over General Motors so that Ed Whitacre, Jr. could heli-drop in. Now, The Wall Street Journal is reporting that GM has chosen Spencer Stuart to assist it in locating a permanent CEO to take up the position from Whitacre.

GM's list of requirements makes it clear they're looking for someone bionic, having "extensive global, manufacturing and turnaround experience." The new person should also have solid credentials working with Asia, since GM believes it will move more metal over there than in the U.S. next year, and the prospective bigwig doesn't need to come from within the auto industry'sranks.

No national preference has been put forth for the new CEO, only that he or she be "global minded." Perhaps the most important proven attribute they can bring: the ability to restore morale. It's an impressive list, but that's frankly the kind of CEO we would expect GM to require anyway, regardless of its economic and market position. And it does kind of make us wonder if Alan Mulally could simultaneously run two carmakers...

[Source: The Wall Street Journal]

REPORT: Spencer Stuart tasked with finding new GM CEO originally appeared on Autoblog on Tue, 08 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study

Chris Shunk — Tue, 08 Dec 2009 15:40:00 EST

Filed under: Audi, Chrysler, Ford, GM, Lexus, Toyota

J.D. Power has released its 2009 Sales Satisfaction Index, and 29 of 38 brands improved their standing versus last year's numbers. The industry watchdogs at Power say that sales people improved the most over 2008, which isn't surprising given the fact that fewer vehicles are flying off dealer lots and every customer is a precious commodity. Even with the improved standing versus 2008, J.D. Power says that brands still lost 12% of sales on average due to poor service at the dealer level, a statistic that could have automakers cringing.

Jaguar took top luxury honors for the second straight year with an 898 index score, beating second place Cadillac by a scant five points. J.D. Power says Jaguar excels in both salesperson interactions and the handling of the dreaded financing/paperwork. The top five rounds out with Lexus, Mercedes Benz and Land Rover. Audi performed most poorly of any brand studied, while Infiniti and Volvo also fared poorly.

Mercury was the top non-luxury make with a score of 867, followed by Smart, Buick, Pontiac and Chevrolet. Mercury reportedly scored well on all five categories tested, though we're a bit puzzled how Mercury could beat Lincoln by four points in spite of the fact that the two makes usually share a common dealership. Japanese and Korean brand-dealers scored poorly in the survey as Honda, Toyota, Nissan, Kia and Mazda all scored below the industry average of 832.

General Motors and Ford dealers fared very well in the survey, with all of their brands except Lincoln coming in over the industry average. Chrysler brands, however, did not do as well, with all three makes falling under the industry Mendoza line. Mitsubishi was by far the worst dealership to deal with, with an industry-low 778 index score. Hit the jump to read over the J.D. Power press release and click on the gallery below to view the survey scores for both luxury and mass market offerings.

Gallery: JD Power 2009 Sales Satisfaction Study

[Source: J.D. Power]

Continue reading Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study

Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study originally appeared on Autoblog on Tue, 08 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely

Dan Roth — Tue, 08 Dec 2009 11:01:00 EST

Filed under: China, Etc., Europe, Plants/Manufacturing, GM, Saab

It seemed pretty obvious when we first heard that China's BAIC wanted Saab's tooling that it didn't want anything to do with purchasing the Swedish automaker's full monty. If BAIC wanted to be in the Saab business, clearly, it would have made overtures for more than just the retired tooling from the older versions of the 9-5 and 9-3. BAIC wants the cars and all the stuff that Saab made to make them, so as to have something else to sell in its home market. The rest of Saab, such as its Trollhattan headquarters and workforce apparently aren't of interest to BAIC, which just secured a line of credit from the Bank of China, presumably to finance this purchase.

General Motors is said to still have some suitors interested in the whole shooting match, instead of BAIC's cherry picking. Since the deal with Koenigsegg fell apart, Spyker has indicated interest in Saab, as has a private concern called Renco Group. Any deal will be carefully vetted by General Motors, and will have a short time-table for completion. If BAIC's bid for the parts of Saab carries through, the rest of the company will almost certainly head for liquidation. It's looking increasingly likely that there will be no stay of execution for Saab, no white knight riding in to save this Swedish automaker in distress. Still, it ain't over until it's over...

[Source: Reuters | Image: AFP/Getty]

REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely originally appeared on Autoblog on Tue, 08 Dec 2009 11:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Dodge Challenger tops Consumer Reports owner satisfaction survey

Chris Shunk — Mon, 07 Dec 2009 18:59:00 EST

Filed under: Coupe, Hybrid, Chevrolet, Ford, GM, Toyota

2009 Dodge Challenger SRT8 6-Speed - Click above for high-res image gallery

Consumer Reports has surveyed 380,000 subscribers to rank the most satisfied new car owners and a newcomer came in and dethroned the Toyota Prius. An amazing 92 percent of V8-powered Dodge Challenger owners said that they would definitely buy another Mopar pony car if they had the chance to do it all over again. That's a big-time win for Chrysler, as the Pentastar has been getting dinged badly in recent CR studies. Hybrids have been very popular in the satisfaction survey over the past few years, but the perennial champ Prius wasn't even the number one battery-assisted model. That honor goes to the new Ford Fusion Hybrid, which came in second overall with a 91 percent rating. The Chevrolet Corvette, Porsche 911 and Prius round out the top five. To make the top of the satisfaction list at least 80 percent of customers need to say that they would definitely buy the same vehicle again.

Detroit automakers substantially improved their standing in the annual survey versus last year, as nine percent of overall Motown models were at the top of the list. That's still down substantially against the 12 percent Asian automakers and 23 percent of European automakers scored in the top tier. While GM, Ford and Chrysler each found success at the top, each scoring a hit in the top five, two of the three automakers also filled out the entire bottom ten. Owners of the four cylinder Chrysler Sebring were the least satisfied among all surveyed. In all, GM had seven of the bottom ten while Chrysler had three unlovable losers. Head over to the Consumer Reports site for more details.

Gallery: Review: 2009 Dodge Challenger SRT8 6-Speed

[Source: Consumer Reports]

Dodge Challenger tops Consumer Reports owner satisfaction survey originally appeared on Autoblog on Mon, 07 Dec 2009 18:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Minicar, EV on the way from Opel

Jonathon Ramsey — Mon, 07 Dec 2009 16:32:00 EST

Filed under: Budget, GM, Opel, Electric

General Motors has declared that Opel needs a minicar, a tiny little thing that can compete with runabouts like the Ford Ka and Peugeot 107. That's a fine sentiment here at the starting line, but to get to the finish GM will need to keep Opel running smoothly, get its Spark firing quickly (if indeed it aims to use that as an Opel), and lure some eyeballs away from the two dozen minicars currently in the segment and the ones on the way from the likes of Volkswagen and Toyota.

Opel showed off the Trixx Concept (pictured) five years ago, but it was left out back to die in favor of the Spark. Five years on, the Spark hasn't arrived, meanwhile the Ford Ka has solidified its position with 500,000 sales in the UK alone over the last 13 years, the equally cheap and cuter-than-kittens Fiat 500 is still winning awards and stealing hearts and the VW Up! is banging drums.

When Magna was going to purchase Opel it said it would have a minicar for the brand by 2012. GM gave no timeline for its arrival, but did say that it was also looking at battery-powered electric cars -- possibly an electric Spark with the help of Reva? Whatever it is -- as long as it's good -- it can't come too soon.

[Source: Automotive News - Sub. Req.]

REPORT: Minicar, EV on the way from Opel originally appeared on Autoblog on Mon, 07 Dec 2009 16:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

GM buys remaining stake in CAMI plant from Suzuki

Chris Shunk — Mon, 07 Dec 2009 11:29:00 EST

Filed under: Plants/Manufacturing, Crossover, Chevrolet, GM, GMC, Canada

2010 Chevrolet Equinox - Click above for high-res image gallery

It's safe to say that 2009 has been the most difficult year in the 101-year history of General Motors. But while most of the news coming out of GM has been tough to swallow, the Detroit, MI-based automaker has had one very good piece of news: its new products are faring well in the marketplace. And of all the new products GM brought to market this year, none has higher volume than its Theta-based crossovers built at the CAMI plant in Ingersoll, Ontario. The 2010 Chevrolet Equinox and the GMC Terrain have been successful enough that The General has added a third shift, scheduled regular overtime for the rank and file and even spent $93 million on a new body shop to increase production capacity by 40,000 units per year.

But GM was spending big bucks and building very important vehicles at a plant that it jointly owned with partner Suzuki. Well, GM changed that last week when it announced that it was buying Suzuki's stake in the Canadian facility. GM has not disclosed the amount of money it paid to take over full interest of the facility, but we're guessing the total wasn't nearly as much as the cost of a new plant, which can cost over $1 billion. But while the news was good for GM and the people of Ingersoll, we're guessing the folks who work at closing plant in the U.S. aren't all that happy about this development. Hit the jump to read over GM's brief press release.

Gallery: Review: 2010 Chevrolet Equinox

[Source: General Motors]

Continue reading GM buys remaining stake in CAMI plant from Suzuki

GM buys remaining stake in CAMI plant from Suzuki originally appeared on Autoblog on Mon, 07 Dec 2009 11:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

GM investing $336 million in Detroit plant to build Chevrolet Volt

Sam Abuelsamid — Mon, 07 Dec 2009 10:30:00 EST

Filed under: Plants/Manufacturing, Chevrolet, GM, Electric

2011 Chevrolet Volt - Click above for high-res image gallery

Production of the 2011 Chevrolet Volt marks an important transition for General Motors. It's the first plug-in electric drive vehicle that the automaker is building for sale to anyone that wants one. No more of the limited lease-only deals that were done with the EV1 a decade ago. To demonstrate its commitment to transforming transportation, GM decided to build the Volt on its home ground right in Detroit.

Today, GM is announcing it's spending $336 million to re-tool the Detroit-Hamtramck assembly plant to build the Volt. The factory, which had been building the Cadillac DTS and Buick Lucerne, is being refurbished for the Volt. GM will start building pre-pilot Volts on its assembly iine around March of 2010 to verify the production processes. The Hamtramck plant will also build the Opel/Vauxhall Ampera beginning later in 2011 for European consumption.

The Hamtramck investment is part of $700 million being invested in Michigan facilities to produce the Volt and its components. That includes a new engine line at the Flint South engine plant and the battery pack assembly plant in Brownstown Township south of Detroit.

Gallery: Quick Spin: 2011 Chevrolet Volt

Photos Copyright (C)2009 Sam Abuelsamid / Weblogs, Inc.

[Source: General Motors]

Continue reading GM investing $336 million in Detroit plant to build Chevrolet Volt

GM investing $336 million in Detroit plant to build Chevrolet Volt originally appeared on Autoblog on Mon, 07 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab?

Jonathon Ramsey — Sun, 06 Dec 2009 12:37:00 EST

Filed under: China, GM, Saab, Earnings/Financials, Koenigsegg

Beijing Automotive Industry Corporation (BAIC) could still be in the game for Saab, having secured a $2.93 billion line of credit from the Bank of China. On the other hand, BAIC could just be gearing up for its own home-grown expansion plans, with an eye on ramping up production and putting financial and technological legs underneath its partnerships with Mercedes and Hyundai.

Or... it could be doing both: trying to buy Saab and as well as remodel its business. The deal for Saab between GM and Koenigsegg was for about $1 billion: the European Investment Bank approved a loan for $615 million, and BAIC provided about $400 million by buying a minority stake in the Koenigsegg Group. If BAIC did its own deal with GM for that same amount -- although we have a feeling they could get a Christmas discount -- that would leave nearly $2 billion for BAIC to take care of Saab and invest in its own operations.

This is, of course, pure speculation -- BAIC could have something else in mind entirely. All we know right now is that they've got a lotta yuan just sitting around waiting to be spent, and aborted plans to build the new 9-5 in China. This Saab story isn't finished yet...

[Source: Reuters]

REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab? originally appeared on Autoblog on Sun, 06 Dec 2009 12:37:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

GM responds to more Camaro transmission failure talk on enthusiast forum

Chris Paukert — Fri, 04 Dec 2009 17:59:00 EST

Filed under: Coupe, Performance, Chevrolet, GM

2010 Chevrolet Camaro SS - Click above for a high-res image gallery

Back in July, we first told you about a serious driveline issue that was cropping up in Chevrolet's new-for-2010 Camaro. In specific, output shafts were failing on V8 manual transmission SS models, a malady that was generally tied to hard launches or use of the car's launch control system. The problem eventually resulted in General Motors conducting some warranty repairs and briefly issuing a factory hold of the SS while it fixed the problem, and as far as we knew, that was that.

That was the last we heard of the issue until AB reader Billie informed us that talks regarding output shaft failure were once again heating up over at the owner discussion forums of Camaro5.com - so much so that GM's own John Fitzpatrick, the marketing manager of Chevrolet's performance cars, chimed in with a statement on behalf of the automaker, the text of which you can read after the break.

Basically, Fitzpatrick says that after a review of the issue, GM is confident that failure rates "under normal driving conditions are very low... even in the most extreme driving condition, the probability of failure does not significantly change." In any case, Fitzpatrick assures that GM will continue to stand behind their five-year/100,000 mile warranty coverage.

For the most part, it seems like Fitzpatrick's comments have assuaged the concerned parties on Camaro5 (there are definitely still a few disgruntled folks), but if nothing else, it's nice to see another example of an automaker wading into the internet fray to directly address customer issues.

Gallery: One Night Stand: 2010 Chevrolet Camaro

Photos Copyright (C)2009 Alex Núñez / Weblogs, Inc.
[Source, Camaro5.com]

Continue reading GM responds to more Camaro transmission failure talk on enthusiast forum

GM responds to more Camaro transmission failure talk on enthusiast forum originally appeared on Autoblog on Fri, 04 Dec 2009 17:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints

Jeremy Korzeniewski — Fri, 04 Dec 2009 16:27:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, GM

Back in May, General Motors announced plans to close down a large portion of its dealership network. Since then, a number of those franchisees have lodged complaints to both the automaker itself and appropriate policymakers, leading to possible legislation on how GM is allowed to handle the closing of dealerships. This being the case, The General is proactively drafting a new set of rules as to how it will deal with these to-be-shuttered dealerships, and it promises that some are likely to be reinstated after the process.

Specific details can be seen in the press release pasted after the break, but it seems that the new plan basically will allow these affected dealerships to get some real-life face time with the automaker to hear exactly whey they were targeted for closure. If the dealer still isn't happy with the outcome, it can elect to enter binding arbitration. If that arbiter finds that GM chose to shutter the dealership for anything other than sound business reasons, the franchise stands to be reinstated.

There's plenty more detailed in the plan, including a provision for GM to help service technicians and dealership employees find new placement, after the break. This plan will go into effect by mid-January "provided that legislation related to GM's dealer restructuring does not move forward."

[Source: General Motors | Image: Justin Sullivan/Getty Images]

Continue reading Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints

Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints originally appeared on Autoblog on Fri, 04 Dec 2009 16:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed]

Chris Paukert — Fri, 04 Dec 2009 10:00:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Earnings/Financials

Having just been appointed interim CEO at General Motors earlier this week, ex-AT&T man Ed Whitacre isn't wasting any time in exercising his newfound authority. According to The Wall Street Journal, Whitacre is to announce a number of management changes this morning, including moving Vice Chairman Bob Lutz from his role in marketing to a more product planning-focused role. Whitacre is also expected to promote some of the company's younger managers to new positions, although it has not yet been revealed who is targeted.

According to the WSJ, Whitacre "drew up the new management blueprint in a matter of four hours," suggesting to us that he already had a number of changes in mind. Further, he is also expected to combine GM's sales and marketing divisions

While Whitacre has only been on the job since Tuesday and he is technically only considered an interim appointment at this time, the search for a new CEO is thought likely to take months, if not a year. From the looks of things, Whitacre isn't looking at himself as simply a placeholder, though, and we wouldn't be surprised to see more changes as the weeks and months roll by.

*UPDATE: Changes confirmed: GM has issued a press release (viewable after the jump). Among the moves, Bob Lutz will be an 'advisor' on design and global product - he will retain his title of vice chairman. Other changes include Mark Reuss named as president of GM North America, Susan Docherty appointed VP, vehicle sales, service, and marketing operations. For a full list of changes, click past the jump for the release.

[Source: The Wall Street Journal I Image: Bill Pugliano/Getty]

Continue reading BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed]

BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed] originally appeared on Autoblog on Fri, 04 Dec 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations

Chris Shunk — Fri, 04 Dec 2009 09:00:00 EST

Filed under: China, GM, Earnings/Financials

It has been a busy week at General Motors. The week started off with CEO Fritz Henderson's abrupt resignation, then executives converged on the LA Auto Show where Bob Lutz was the keynote speaker and then the U.S. market Chevy Cruze was revealed. Now, the General is reportedly deep in negotiations halfway around the world with its Chinese partner, SAIC, to sell its partnership stake in what is now the largest auto market in the world.

Here is how the deal will reportedly break down: According to Reuters, GM will give SAIC a scant one percent of its interest in the China venture and 50% of GM's India operations. In exchange, the General would receive what amounts to about 20% of the value of the China venture. Sounds like a pretty sweet deal considering the fact that GM isn't exactly a big player in the Indian market - but there is a very big downside. If GM cedes one percent of its joint venture with SAIC, then the Detroit, MI-based automaker would no longer control its China operations. The rumored deal will contain a proviso that the General can later buy back its lost percentage for a "premium price." That sounds a little like GM just got a loan from SAIC and put up one percent of its ownership as collateral.

While GM currently has over $40 billion in its cash coffers courtesy of its recent bailout and bankruptcy, The General is in a big hurry to pay back the money it owes the government. It also has to contend with what is still a very soft auto market - not to mention Opel restructuring costs that could tally $5 billion or more. But China is also a monster part of GM's business plan, so any money gained from this deal could come at an even greater cost. We have to wonder if this deal had anything to do with Mr. Henderson's abrupt exit stage left...

[Source: Reuters]

REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations originally appeared on Autoblog on Fri, 04 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

LA 2009: Maximum Bob, Maximum Live Blog

Jonny Lieberman — Wed, 02 Dec 2009 11:40:00 EST

Filed under: Etc., GM

Click above to view the live blog after the jump

We're here in the City of Angels to watch Fritz Henderson deliver GM's keynote address to the all us media types here at LA Auto Show. Only thing is, Fritz resigned yesterday, and for some reason interim CEO Ed Whitacre will not be delivering the keynote. Which can only mean one thing -- GM's Vice Chairman of Marketing and Communications Bob Lutz will be delivering the opening address. Are you as excited as we are? We kinda doubt it. Make the jump to read our live blog.

Continue reading LA 2009: Maximum Bob, Maximum Live Blog

LA 2009: Maximum Bob, Maximum Live Blog originally appeared on Autoblog on Wed, 02 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

LA 2009: 2011 Chevrolet Cruze, mass-market potential has four doors

Damon Lavrinc — Tue, 01 Dec 2009 20:00:00 EST

Filed under: LA Auto Show, Sedan, Chevrolet, GM

2011 Chevrolet Cruze - Click above for high-res image gallery

The 2011 Chevrolet Cruze is finally coming Stateside and during a private event held earlier this evening ahead of the LA Auto Show, General Motors - 20 minutes after announcing the departure of Fritz Henderson as CEO - unveiled the U.S.-spec version of its Cobalt replacement and Toyota Corolla competitor.

Sharing much of the 2011 Chevrolet Volt's architecture, the Cruze has the potential to be a massive leap forward for Chevy in the mid-size/compact segment. Larger than the Cobalt in almost every dimension and packing a choice of either a turbocharged 1.4-liter four-cylinder putting out 138 horsepower and 148 pound-feet of torque or a naturally aspirated 1.8-liter four-pot, fuel economy and efficiency take center stage. However, "driving enjoyment" was mentioned more than once during the presentation, so to aid both its fuel consumption (an estimated 40 mpg with the turbo'd four) and enhance the experience, buyers will be able to choose between a manual or automatic six-speed gearbox.

Although we've seen the Cruze in person before (it's been on sale in Europe and other markets for over six months), its sharp lines, taut headlamps and enlarged grille play Dr. Jekyll to it's rather staid, Mr. Hyde rump. Inside, the two-tone brown and black leather interior is a tremendous improvement over the model it replaces, with an artfully sculpted dash and center stack surrounded by soft touch materials, brushed fauxluminum and a smattering of chrome. Back seat passengers should be equally pleased with the appointments and a 60/40 split bench ups the ante for usability.

The Cruze's arrival late next year couldn't be better timed, as Ford is readying the next generation Focus and Honda is toiling away on a reworked Civic. We're expecting to get some seat time in the coming months, and for the first time in recent memory, we're looking forward to sampling a new mid-size product from the General. Full details in the press release below the fold and check out the gallery of live images below.

Gallery: LA 2009: 2011 Chevrolet Cruze

Gallery: 2011 Chevrolet Cruze

Continue reading LA 2009: 2011 Chevrolet Cruze, mass-market potential has four doors

LA 2009: 2011 Chevrolet Cruze, mass-market potential has four doors originally appeared on Autoblog on Tue, 01 Dec 2009 20:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

Chris Shunk — Tue, 01 Dec 2009 19:26:00 EST

Filed under: China, Plants/Manufacturing, GM, Saab, Earnings/Financials

General Motors' Saab brand has been given a one month stay of execution as the Detroit, MI-based automaker has announced that it will hold off on a decision regarding the brand's fate until the end of the year. GM's apparent non-decision comes just one week after it announced that Swedish specialty car maker Koenigsegg unexpectedly pulled out of the running for Saab.

While GM isn't commenting on any potential suitors at this time due to non-disclosure agreements with the parties involved, speculation is that Beijing Automotive Industry Holding Co. and Wyoming-based Merbanco Inc are in the running for the struggling Swedish automaker. BAIC appears to make some sense considering the Chinese automaker's desire to enter the U.S. market and the fact that it was also involved in a bid to purchase Opel from GM earlier in the fall.

Beijing Auto was also reportedly involved in the original Koenigsegg deal, which fell apart for reasons we may never know. GM said in a brief statement (available after the jump) that if no deals materialized by the end of the year, it expects to begin an orderly wind down of the global Saab business at that time."

[Sources: The Detroit News; General Motors | Image: Torsten Silz/AFP/Getty Images]

Continue reading REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer originally appeared on Autoblog on Tue, 01 Dec 2009 19:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Michael Richards named Buick GMC general manager

Chris Shunk — Tue, 01 Dec 2009 19:01:00 EST

Filed under: Hirings/Firings/Layoffs, Buick, GM, GMC

Fritz Henderson's unexpected resignation may have taken top billing today, but it wasn't the only move announced by General Motors today. Michael Richards has been named the new General Manager of Buick GMC effective immediately, with the automaker looking from outside the company to fill the roll. Richards replaces Susan Docherty, who was named Vice President of US Sales in October. Richards joins GM after a short stint at Trilogy Automotive in Austin, Texas, where he led the use of digital and Internet-based solutions. Richards also worked as a consultant for JD Power where he launched tools for improved vehicle launch profitability and customer satisfaction.

The bulk of Richards' experience comes from cross-town rival Ford where he worked from 1981-2008. Richards was most recently the marketing brand manager for Lincoln Mercury from 2006-2008. Prior to that he worked as the general sales manager for Ford Customer Service from 2002-2006.

Regardless of where Richards received his management chops, Vice Chairman and Marketing and Communications chief Bob Lutz likes what he has with the long-time Ford man. "We are pleased to have Mike as a member of the GM family. His vast sales and marketing experience will be invaluable in his new role, as he leads the team building the Buick and GMC brands."

[Source: GM]

Continue reading Michael Richards named Buick GMC general manager

Michael Richards named Buick GMC general manager originally appeared on Autoblog on Tue, 01 Dec 2009 19:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

BREAKING: GM CEO Fritz Henderson steps down

Jeremy Korzeniewski — Tue, 01 Dec 2009 16:45:00 EST

Filed under: Hirings/Firings/Layoffs, GM

Well, that was quick. Fritz Henderson, the recently appointed CEO of General Motors, is stepping down. Company chairman of the board Ed Whitacre (remember the "Satisfaction Guaranteed" commercials, that's the guy) is set to act as the interim CEO until a permanent replacement is found.

This marks the second CEO that beleaguered automaker General Motors has lost this year, the first being Rick Wagoner, who was asked to resign by the Obama Administration's Task Force for Autos. Over the last few months, deals that GM had made to offload Opel, Saturn and Saab have all fallen through, and some have reported on clashing styles between Whitacre and Henderson.

General Motors has just confirmed the news via a press conference being held as we speak. Stay tuned for more as we learn it.

UPDATE: Official Statement from Ed Whitacre, GM's new interim CEO, added after the jump.

[Source: Free Press, GM | Image: Philippe Lopez/Getty]

Continue reading BREAKING: GM CEO Fritz Henderson steps down

BREAKING: GM CEO Fritz Henderson steps down originally appeared on Autoblog on Tue, 01 Dec 2009 16:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

"Viridian Joule" picked as winner of Chevy Volt Paint Color Contest

Jeremy Korzeniewski — Tue, 01 Dec 2009 16:29:00 EST

Filed under: LA Auto Show, Hybrid, Marketing/Advertising, Hatchback, Chevrolet, GM, Electric

2011 Chevrolet Volt in Viridian Joule - Click above for high-res image gallery

The votes have been cast, the tallies tallied and the winner determined: Viridian Joule will be the official name of the silvery-green hue as seen on a slew of Chevrolet Volt marketing material for what seems like the last decade or so. So, um, what does Viridian Joule mean? We'll let the winner himself, 40-year-old David Thomas of Sanford, Florida, explain:

I looked at the photo of the Volt on the contest web site and thought it looked emerald in color, which led to jewel and then to an alternate yet appropriate play on that word - joule.

We needed a bit more help, so we looked up the word 'viridian'. So says Dictionary.com: a long-lasting, bluish-green pigment, consisting of a hydrated oxide of chromium. OK, fine. Joule wasn't so hard to figure out, but here's the definition anyway: a unit of electrical energy equal to the work done when a current of one ampere is passed through a resistance of one ohm for one second. So, there you have it.

Want to know more? Click past the break to read the official press release, and see the image gallery below for more views of a Viridian Joule Chevrolet Volt.

Gallery: 2011 Chevy Volt

[Source: Chevrolet]

Continue reading "Viridian Joule" picked as winner of Chevy Volt Paint Color Contest

"Viridian Joule" picked as winner of Chevy Volt Paint Color Contest originally appeared on Autoblog on Tue, 01 Dec 2009 16:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments