Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: Fed predicts it will lose $30B on auto industry bailout]]>http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/#commentsFiled under: , , ,



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]]>30 billion30Billionauto task forceAutoTaskForcebailoutbarackchryslerEd WhitacreEdWhitacregmgovernment bailoutgovernment task forceGovernmentBailoutGovernmentTaskForceobamaobama administrationObamaAdministrationPresident obamaPresidentObamaWhitacreThu, 10 Dec 2009 13:27:00 EST<![CDATA[REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers]]>http://www.autoblog.com/2009/12/09/report-gm-ford-to-dramatically-increase-q1-production-versus-y/http://www.autoblog.com/2009/12/09/report-gm-ford-to-dramatically-increase-q1-production-versus-y/http://www.autoblog.com/2009/12/09/report-gm-ford-to-dramatically-increase-q1-production-versus-y/#commentsFiled under: , , ,



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]]>2010 production2010Productionautomobile productionAutomobileProductioncar manufacturingcarbuildingCarManufacturingchryslerfordford productionFordProductiongeneral motorsGeneralMotorsgmgm assemblygm productionGmAssemblyGmProductionmanufacturingsales volumeSalesVolumeU.S. productionU.s.ProductionWed, 09 Dec 2009 10:29:00 EST<![CDATA[<i>Mad Money</i> host Jim Cramer calls Whitacre 'assassin of the bad']]>http://www.autoblog.com/2009/12/09/i-mad-money-i-host-jim-cramer-calls-whitacre-assassin-of-the/http://www.autoblog.com/2009/12/09/i-mad-money-i-host-jim-cramer-calls-whitacre-assassin-of-the/http://www.autoblog.com/2009/12/09/i-mad-money-i-host-jim-cramer-calls-whitacre-assassin-of-the/#commentsFiled under:



We've spilled some ink about CNBC Mad Money host Jim Cramer before, the financial expert who - as The Daily Show pointed out - missed the whole Great Depression 2.0 thing. Of course, it's not fair to single out Mr. Cramer, as 99 out of 100 economists thought credit default swaps based upon ill-conceived home loans to people with lousy credit was a sure-fired, long-term money-making bonanza.

Regardless, Jim Cramer is very bullish on General Motors' new interim CEO and former Southwestern Bell exec, Ed Whitacre. Says Cramer of Ed, "He was fierce and proud and was going to do whatever was necessary to rebuild the greatness of this once amazing company." Sounds good to us. Especially if Mr. Whitacre applies that devil-may-care acumen to doing-better-but-still-ailing General Motors. GM's problem is, for every Cadillac CTS-V, there's a Chevrolet Aveo.

Put another way, for every Ed Whitacre, there's a Fritz Henderson. Or ten. Still, if Jim Cramer is to be believed, Whitacre is an "assassin of the bad." Unions? Watch your butts, as "he's going to take it to them." Senior management might even be in worse trouble, as Cramer says, "He doesn't need you. He likes to run the place with a shoestring administration." Again, we hope Cramer's right. But we also know that those ten Fritz Hendersons are dug into GM's corporate structure like Alabama ticks.

[Source: Blogging Stocks | Image: Rusty Jarrett/Getty]

Mad Money host Jim Cramer calls Whitacre 'assassin of the bad' originally appeared on Autoblog on Wed, 09 Dec 2009 08:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CNBCEd WhitacreEdWhitacreFritz HendersonFritzHendersonGeneral MotorsGeneralMotorsGMJim CramerJimCramerMad moneyMadMoneyWed, 09 Dec 2009 08:01:00 EST<![CDATA[REPORT: Spencer Stuart tasked with finding new GM CEO]]>http://www.autoblog.com/2009/12/08/report-spencer-stuart-tasked-with-finding-new-gm-ceo/http://www.autoblog.com/2009/12/08/report-spencer-stuart-tasked-with-finding-new-gm-ceo/http://www.autoblog.com/2009/12/08/report-spencer-stuart-tasked-with-finding-new-gm-ceo/#commentsFiled under: ,

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]]>ceoexecutive headhuntingExecutiveHeadhuntingFritzFritz HendersonFritzHendersongeneral motorsGeneralMotorsgmGM CEOGmCeoheadhunterheadhuntersspencer stuartSpencerStuartTue, 08 Dec 2009 16:20:00 EST<![CDATA[Tiger Woods' Escalade owned by GM, will be fixed and eventually sold]]>http://www.autoblog.com/2009/12/08/tiger-woods-escalade-owned-by-gm-will-be-fixed-and-eventually/http://www.autoblog.com/2009/12/08/tiger-woods-escalade-owned-by-gm-will-be-fixed-and-eventually/http://www.autoblog.com/2009/12/08/tiger-woods-escalade-owned-by-gm-will-be-fixed-and-eventually/#commentsFiled under: , ,

Tiger Woods GM-owned Cadillac Escalade, post crash - Click above for high-res image gallery

The world's most infamous 2009 Cadillac Escalade, the one Tiger Woods drove into a hydrant and then a tree early in the morning of November 27, is heading to the body shop for repairs. Interestingly enough, the Escalade isn't owned by Tiger Woods - it's part of GM's promotional fleet. After the golfer's deal with Buick ended last year, Tiger made a deal with the automaker to keep a few cars for his personal use. His choices included a Buick Enclave and Cadillac Escalade... the black SUV that is now sporting a mangled front end and missing a couple rear windows.

As it's a promotional/marketing vehicle, the SUV goes back to GM for the automaker to decide its fate. Depending on the severity of the repairs, it may head back into the loaner fleet... or it may be replaced by a new vehicle. If it is replaced, the now-repaired Escalade will be pulled from rotation and sent to auction where it goes to the highest bidder. Of course, we can only imagine what the Cadillac would bring on eBay in its current shattered state.


Gallery: Tiger Woods GM-owned Cadillac Escalade


[Source: Drive On, Photos: Florida Highway Patrol]

Tiger Woods' Escalade owned by GM, will be fixed and eventually sold originally appeared on Autoblog on Tue, 08 Dec 2009 12:54:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Body ShopBodyShopcadillacCadillac Escaladecadillac escalade hybridCadillac Escalade Platinumcadillac escalade sportCadillacEscaladeCadillacEscaladeHybridCadillacEscaladePlatinumCadillacEscaladeSportCrashescaladeFloridaGeneral MotorsGeneralMotorsGMPress fleetPressFleetPromotionalRepairtigerTiger EscaladeTiger Woodstiger woods cadillactiger woods escaladeTigerEscaladeTigerWoodsTigerWoodsCadillacTigerWoodsEscaladewoodsTue, 08 Dec 2009 12:54:00 EST<![CDATA[REPORT: Minicar, EV on the way from Opel]]>http://www.autoblog.com/2009/12/07/report-minicar-ev-on-the-way-from-opel/http://www.autoblog.com/2009/12/07/report-minicar-ev-on-the-way-from-opel/http://www.autoblog.com/2009/12/07/report-minicar-ev-on-the-way-from-opel/#commentsFiled under: , , ,



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]]>chevroletChevrolet SparkChevroletSparkchevy sparkChevySparkgeneral motorsGeneralMotorsgmNick ReillyNickReillyopelMon, 07 Dec 2009 16:32:00 EST<![CDATA[REPORT: Even while pursuing Volvo, Geely again mulling bid for Saab?]]>http://www.autoblog.com/2009/12/07/report-even-while-pursuing-volvo-geely-again-mulling-bid-for-s/http://www.autoblog.com/2009/12/07/report-even-while-pursuing-volvo-geely-again-mulling-bid-for-s/http://www.autoblog.com/2009/12/07/report-even-while-pursuing-volvo-geely-again-mulling-bid-for-s/#commentsFiled under: , , ,



Just about every time an automaker decides to sell one of its brands, Chinese automaker Geely comes up as one of the potential suitors. Geely executive Lawrence Ang has reportedly told Automotive News that the reason Geely has been present at a lot of negotiating tables is because it wants to grow in part through acquisitions. And while the Chinese automaker has yet to finalize any big-ticket buys, it appears to be the front-runner for Ford's Volvo unit.

Earlier in the year, Geely looked into purchasing the Saab brand, but talks reportedly broke down after Koenigsegg presented what appeared to be the winning bid. But now that Koenigsegg has dropped out of the Saab sweepstakes, the door is open again for Geely. Is the Chinese automaker interested? Ang reportedly gave reporters at a shareholder event the ambiguous "who knows?" as an answer, but he also acknowledged that the company is investigating buying opportunities which have presented themselves during the automotive industry downturns in Europe and the States. Geely is also reportedly interested in purchasing parts and engines, which could be possible if General Motors decides to disband Saab if an adequate bid doesn't present itself by year-end.

While Geely appears to be close to purchasing Volvo and is perhaps in a good position to pick up Saab for a song, the automaker is also looking to increase its presence in its home market. Automotive News is reporting that Geely will increase spending by up to 43% in hopes of increasing sales from 300,000 in 2009 to over 400,000 next year.

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

REPORT: Even while pursuing Volvo, Geely again mulling bid for Saab? originally appeared on Autoblog on Mon, 07 Dec 2009 13:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chinachinese automakerChineseAutomakergeelygeneral motorsGeneralMotorsgmgm saab saleGmSaabSalesaabsaab saleSaabSalevolvovolvo saleVolvoSaleMon, 07 Dec 2009 13:58:00 EST<![CDATA[GM buys remaining stake in CAMI plant from Suzuki]]>http://www.autoblog.com/2009/12/07/needs-pic-gm-buys-remaining-stake-in-cami-plant-from-suzuki/http://www.autoblog.com/2009/12/07/needs-pic-gm-buys-remaining-stake-in-cami-plant-from-suzuki/http://www.autoblog.com/2009/12/07/needs-pic-gm-buys-remaining-stake-in-cami-plant-from-suzuki/#commentsFiled under: , , , , ,

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]]>2010 Chevrolet2010 Chevrolet Equinox2010 Equinox2010 GMC2010 GMC Terrain2010 Terrain2010Chevrolet2010ChevroletEquinox2010Equinox2010Gmc2010GmcTerrain2010TerrainCAMIcami plantCamiPlantchevy equinoxChevyEquinoxgeneral motorsGeneralMotorsGMgmc terrainGmcTerrainingersollontarioMon, 07 Dec 2009 11:29:00 EST<![CDATA[REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab?]]>http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/#commentsFiled under: , , , ,



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]]>baicBeijing Automotive Industry CorpBeijingAutomotiveIndustryCorpchinafinancialsgeneral motorsGeneralMotorsgmkoenigseggsaabSun, 06 Dec 2009 12:37:00 EST<![CDATA[Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints]]>http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/http://www.autoblog.com/2009/12/04/heres-the-plan-gm-reveals-how-it-will-deal-with-shuttered-deal/#commentsFiled under: , ,



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]]>dealer closingdealer closingsdealer franchisedealer relationsDealerClosingDealerClosingsDealerFranchiseDealerRelationsgeneral motorsGeneralMotorsgmGM dealergm dealersgm dealershipgm dealership closingsgm dealershipsGmDealerGmDealersGmDealershipGmDealershipClosingsGmDealershipsFri, 04 Dec 2009 16:27:00 EST<![CDATA[BREAKING: Whitacre to shakeup GM management, put Lutz in product planning <b>[UPDATE: Confirmed]</b>]]>http://www.autoblog.com/2009/12/04/breaking-whitacre-reportedly-to-announce-management-shakeups-at/http://www.autoblog.com/2009/12/04/breaking-whitacre-reportedly-to-announce-management-shakeups-at/http://www.autoblog.com/2009/12/04/breaking-whitacre-reportedly-to-announce-management-shakeups-at/#commentsFiled under: , ,

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]]>Bob LutzBobLutzbreakingbreakingnewsEd WhitacreEdWhitacreGeneral MotorsGeneralMotorsGMGM CEOGmCeomanagement changesmanagement shakeupManagementChangesManagementShakeupmark reussMarkReusssusan dochertySusanDochertyWhitacreFri, 04 Dec 2009 10:00:00 EST<![CDATA[REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations]]>http://www.autoblog.com/2009/12/04/report-gm-selling-control-of-chinese-joint-venture-to-saic-hal/http://www.autoblog.com/2009/12/04/report-gm-selling-control-of-chinese-joint-venture-to-saic-hal/http://www.autoblog.com/2009/12/04/report-gm-selling-control-of-chinese-joint-venture-to-saic-hal/#commentsFiled under: , ,

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]]>chinafritz hendersonFritzHendersongeneral motorsGeneralMotorsgmjoint ventureJointVenturesaicFri, 04 Dec 2009 09:00:00 EST<![CDATA[Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed?]]>http://www.autoblog.com/2009/12/02/merbanco-out-spyker-in-as-saab-bidding-heats-up-was-fritz-axed/http://www.autoblog.com/2009/12/02/merbanco-out-spyker-in-as-saab-bidding-heats-up-was-fritz-axed/http://www.autoblog.com/2009/12/02/merbanco-out-spyker-in-as-saab-bidding-heats-up-was-fritz-axed/#commentsFiled under: , , ,


2010 Saab 9-5 - Click above for high-res image gallery

As General Motors suddenly finds itself in search for a new CEO to replace Fritz Henderson, it is also looking to secure a buyer for perennially troubled Saab. GM originally thought it had a new parent for the brand in Koenigsegg, but after that deal went sour, Detroit officials confirmed that it they would give themselves up until the end of the year to find a new buyer instead of simply shutting Saab down.

A number of parties have expressed interest in purchasing the brand since that time, and it has now been confirmed that the Swedish marque has another supercar-building pursuer: Spyker. The Netherlands-based exotic manufacturer has just issued a brief statement confirming that it - along with its shareholders at the Convers Group - has indeed "expressed an interest in Saab Automobile AB" (text available after the jump). Spyker has never been a brand short of ambition (remember its ill-fated Formula One effort?), but taking on Saab would be its most ambitious undertaking yet.

In related news, marque website Saab History is reporting that the US-based Merbanco group has not been chosen by GM as a possible purchaser. According to the SH, Merbanco CEO Christopher Johnston released a statement to the enthusiast group that says:

"As most of you know, we ride with the brand, the fit was good, and were up to the challenges ahead. It is now time for us to depart the field and support the company and its outstanding people.

We are grateful to all of you, fellow Saab enthusiasts and the Saab team for the support you have us. It will never be forgotten. Heartfelt thanks, Ryan and friends for your support."

(Saab History had previously conducted an interview with Johnston, the contents of which you can find here.)

Interestingly, UK buff book Autocar is reporting that yesterday's ousting of Fritz Henderson could stem from the exec's apparent desire to close Saab, a viewpoint that was evidently not shared by the rest of GM's board. We suspect there were a whole host of issues that led to Henderson's resignation, but it's likely that GM's trustees would prefer to offload the brand rather than incur substantial shutdown costs. Call it a "potential contributing factor," if you will.

Either way, do you think Saab will survive this tumult? Drop us a line in 'Comments.'


Gallery: 2010 Saab 9-5


[Sources: Spyker; Saab History; Autocar; Automotive News]

Continue reading Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed?

Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed? originally appeared on Autoblog on Wed, 02 Dec 2009 12:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AutocarChristopher JohnstonChristopherJohnstonFritz HendersonFritzHendersonGeneral MotorsGeneralMotorsGMMerbancoSaabSaab historySaabHistorySpykerWed, 02 Dec 2009 12:01:00 EST<![CDATA[LA 2009: Maximum Bob, Maximum Live Blog]]>http://www.autoblog.com/2009/12/02/la-2009-maximum-bob-maximum-live-blog/http://www.autoblog.com/2009/12/02/la-2009-maximum-bob-maximum-live-blog/http://www.autoblog.com/2009/12/02/la-2009-maximum-bob-maximum-live-blog/#commentsFiled under: ,


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]]>bob lutzBobLutzgeneral motorsGeneralMotorsgmlala 2009la auto showLa2009LaAutoShowWed, 02 Dec 2009 11:40:00 EST<![CDATA[REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer]]>http://www.autoblog.com/2009/12/01/report-gm-could-sell-some-saab-assets-to-chinese-automaker/http://www.autoblog.com/2009/12/01/report-gm-could-sell-some-saab-assets-to-chinese-automaker/http://www.autoblog.com/2009/12/01/report-gm-could-sell-some-saab-assets-to-chinese-automaker/#commentsFiled under: , , , ,



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]]>beijing automotiveBeijingAutomotivegmkoenigseggsaabsaab saleSaabSaleTue, 01 Dec 2009 19:26:00 EST<![CDATA[Michael Richards named Buick GMC general manager]]>http://www.autoblog.com/2009/12/01/michael-richards-named-buick-gmc-general-manager/http://www.autoblog.com/2009/12/01/michael-richards-named-buick-gmc-general-manager/http://www.autoblog.com/2009/12/01/michael-richards-named-buick-gmc-general-manager/#commentsFiled under: , , ,



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]]>bob lutzBobLutzbuick gmc general managerBuickGmcGeneralManagergmmichael richardsMichaelRichardssusan dochertySusanDochertyTue, 01 Dec 2009 19:01:00 EST<![CDATA[BREAKING: GM CEO Fritz Henderson steps down]]>http://www.autoblog.com/2009/12/01/breaking-gm-ceo-fritz-henderson-steps-down/http://www.autoblog.com/2009/12/01/breaking-gm-ceo-fritz-henderson-steps-down/http://www.autoblog.com/2009/12/01/breaking-gm-ceo-fritz-henderson-steps-down/#commentsFiled under: ,



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]]>breakingbreaking newsBreakingNewsEd WhitacreEdWhitacrefritz hendersonFritzHendersongeneral motorsGeneralMotorsgmgm ceoGmCeoTue, 01 Dec 2009 16:45:00 EST<![CDATA[REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies]]>http://www.autoblog.com/2009/11/30/report-fitch-ratings-says-u-s-auto-industry-headed-for-airline/http://www.autoblog.com/2009/11/30/report-fitch-ratings-says-u-s-auto-industry-headed-for-airline/http://www.autoblog.com/2009/11/30/report-fitch-ratings-says-u-s-auto-industry-headed-for-airline/#commentsFiled under: , ,



Remember this past spring and summer's super speedy General Motors and Chrysler bankruptcies? If the billions in government loans and White House strong-arming is starting to slip into the recesses of your memory, your mind will likely be refreshed sometime in the future, at least according to Fitch Ratings. Fitch says that high fixed costs, perpetual over capacity and weak sales will lead to more bankruptcies that will mirror the misery of the airline industry.

Fitch gives plenty of reasons that the auto industry is far from out of the woods, chief among them is the continuation of weak sales. The ratings agency predicts 2010 car sales will rise by 7.8% to 11.1 million units, an improvement that is still far shy of the industry's peak sales of 17 million units. Another chief concern is GM and Chrysler's inability to access the credit markets for the foreseeable future. Credit markets are tight enough already, and Fitch doesn't see any bank lining up to loan money to any company fresh out of bankruptcy and still in restructuring mode. And if suppliers don't become more healthy or if gas prices spike again, Fitch sees the potential for more stress and ultimately more bankruptcies. And the Detroit 3 still have to contend with a high dollar union workforce and retiree obligations. Of the Detroit automakers, Fitch unsurprisingly sees the most stability at Ford. The Blue Oval still has access to bank loans and Fitch feels it has the strongest product lineup as well.

While we certainly agree that the auto industry is anything but out of the woods, we're also a bit skeptical of Fitch Ratings' foggy crystal ball. After all, Fitch didn't foresee much of the banking collapse that brought this country to its largest recession in decades until the collapse was painfully obvious, giving AA ratings to banks like Lehman Bros. only one year before that financial institution's dive into Chapter 11 protection.

[Source: Reuters | Photo by David Goldman/Getty]

REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies originally appeared on Autoblog on Mon, 30 Nov 2009 08:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcychryslerfitch ratingsFitchRatingsfordgmMon, 30 Nov 2009 08:29:00 EST<![CDATA[REPORT: GM offering special discounts to rejected franchise customers, move angers dealer group]]>http://www.autoblog.com/2009/11/24/report-gm-offering-special-discounts-to-rejected-franchise-cust/http://www.autoblog.com/2009/11/24/report-gm-offering-special-discounts-to-rejected-franchise-cust/http://www.autoblog.com/2009/11/24/report-gm-offering-special-discounts-to-rejected-franchise-cust/#commentsFiled under: , , , , ,



Realizing that one of its keys to survival is retaining existing owners, General Motors is proactively enticing nearly one million customers - those loyal to now-closed dealerships - with significant financial incentives. According to Automotive News, GM started sending 950,000 letters out last week to customers of stores which have shut down or lost a brand franchise. Included in the correspondence are $1,000 to $2,000 discounts towards purchasing vehicles from one of GM's four surviving U.S. brands (the incentive amount is based on the customer's "likelihood to purchase a GM vehicle and the relative distance to the next closest dealer," according to a letter GM sent to dealers outlining the program).

General Motors has about 5,860 dealerships right now. A total of 1,839 have agreed to shut down by October of 2010, helping the company downsize to between 3,600 and 4,000 retailers over the long term. While this incentive is scheduled to end January 4, a second wave of incentives (including one targeting Saturn customers) is expected to begin early next year. In addition, GM has also issued a service offer which runs through May that includes free vehicle inspections and tire rotations to displaced customers.

The retention programs - obviously meant to move customers between stores - have dealer advocate groups up in arms. Some dealers are still actively trying to get their franchises off the "kill list," and GM has said recently that some may in fact be welcomed back into the fold. As such, Automotive News quotes Tamara Darvish, a leader of the Committee to Restore Dealer Rights as saying "This is an inappropriate time to take such an aggressive measure... If in fact dealer rights are to be restored, why would GM go in and move all those customers?"

[Source: Automotive News, subs. req'd | Image: Mark Ralston/Getty]

REPORT: GM offering special discounts to rejected franchise customers, move angers dealer group originally appeared on Autoblog on Tue, 24 Nov 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CouponDiscountdiscount programDiscountProgramfinancialGenerall MotorsGenerallMotorsGMIncentiveservice programServiceProgramsusan dochertySusanDochertyTue, 24 Nov 2009 13:30:00 EST<![CDATA[First Drive: 2011 Buick Regal prototype looks to be a good sport]]>http://www.autoblog.com/2009/11/23/2011-buick-regal-first-drive/http://www.autoblog.com/2009/11/23/2011-buick-regal-first-drive/http://www.autoblog.com/2009/11/23/2011-buick-regal-first-drive/#commentsFiled under: , , , , ,

2011 Buick Regal - Click above for high-res image gallery

There's an odd bit of historical deja vu at work here. Back in the late '60s and early '70s, General Motors wanted to shift a few sporty-ish four-cylinder models from its Opel division into America, so they turned to their Buick dealers. This didn't work out exactly as planned - merchandising these odd European ducks in an outlet best known for sober doctor's cars meant that the GT, Manta and Kadett never managed to make much of a dent in North America's automotive landscape. This time out, with the Opel Insignia-derived 2011 Buick Regal, GM knows it needs massively better results.

This is a Buick the likes of which we have never seen before.
While attending an early drive event for the new Regal last week, we reminded vice-chairman Bob Lutz about the last time his company attempted to sell Opels in Buick showrooms. He laughed his trademark raspy laugh, and reminded us that Car and Driver so loathed the 1968 Kadett that their review featured it photographed in a junkyard. With characteristic candor, Lutz tells us, "It actually wasn't a very good car." Of course, Maximum Bob knows full well that GM can't afford another lost in space Kadett. Does the Regal have what it takes to mollify these "sins of the father" and put Buick on the right track? Click through to the jump to find out.


Gallery: First Drive: 2011 Buick Regal


Photos copyright (C)2009 Chris Paukert / Weblogs, Inc.

Continue reading First Drive: 2011 Buick Regal prototype looks to be a good sport

First Drive: 2011 Buick Regal prototype looks to be a good sport originally appeared on Autoblog on Mon, 23 Nov 2009 11:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2011 buick2011 Buick regal2011 regal2011Buick2011BuickRegal2011RegalBob LutzBobLutzbuickbuick regalBuickRegalFeaturedfirst driveFirstDriveGeneral MotorsGeneralMotorsGMopelOpel GTopel insigniaOpel KadettOpel MagnaOpelGtOpelInsigniaOpelKadettOpelMagnaregalMon, 23 Nov 2009 11:55:00 EST