Autoblog

General Motors CEO, Rick Wagoner, mentioned in passing that several parties have expressed interest in purchasing HUMMER and that GM is moving as quickly as possible to seal the deal. "We have some interested buyers," Wagoner told reports while attending the opening of a new GM engineering and development center.

The sale of HUMMER would help fund GM's attempt to boost liquidity to the tune of $15 billion by the end of 2009. Other brands could be cut or paired down, but Wagoner insists that Saab will continue to soldier on. "Saab is a critical part of our European portfolio and has the potential to be quite a good moneymaker for us." He went on to say that the next Saab will be built in North America, although it wasn't divulged what model would be produced or where.

[Source: Reuters]

After being asked what the next President of the United States could do to help Detroit's automakers, Rick Wagoner, head honcho at General Motors, responded that his company could use an injection of cash for research and development into new, potentially green technology. Also mentioned were additional incentives for consumers to purchase those vehicles once the automakers actually produce them. Neither of these suggestions should be shocking to anybody paying attention to the Detroit 3's recent financial woes. Much of the admittedly meager R&D budget is already being spent on new technologies such as hydrogen fuel cells and electric drive systems, including the extremely important lithium ion battery.

Federal aid in the form consumer incentives would allow automakers to offer eco-friendly vehicles at potentially profitable prices while still being in the target range of many consumers. In the past, tax credits for hybrid vehicles have helped move that technology along when it was in its infancy. This latest meeting hosted by presidential hopeful Barrack Obama once again indicates how important the emerging green-auto sector and health of the Detroit auto industry in general will be in the coming election.

[Source: The Detroit News]

An article in the Atlantic Monthly examines the genesis and gestation of the Chevy Volt, and concludes with an intriguing mix of potential hits and misses. Calling the Volt "the Barack Obama of automobiles-everyone's hope for change," even the Atlantic Monthly knows that this car currently means more to GM and perhaps the U.S. car buying public than anything else. There is a huge amount of emotion behind the Volt, and not all of it is supportive.

The article is just as much about GM and how the company operates as it is about the car. The case is put forward that this is less about the viability of the Volt and more about whether GM can finally execute a proper long term follow through. GM has had brilliant ideas before, but its commitment and track record of seeing them through to successful ends isn't so great.

GM CEO Rick Wagoner said, "If I've learned anything over the past three or four years, it's that a lot of this business is sticking with it and persistence. In the coaching vernacular, we're going to leave it on the floor to make this happen." That's a telling quote from the captain of the ship. More heartening is the quote from another GM exec on what the Volt means to the company: "The empire strikes back." Atta boy. Thanks for the tip, quattrofan!

[Source: Atlantic Monthly]

Considering the sorry state of financial affairs that GM appears to be in, it seems extremely unsurprising that the board would like to see some big changes made at the very top of the company. What is a little shocking, though, is just how soundly the specific proposals were rejected. For instance, a proposal sponsored by John Chevedden of Redondo Beach, California, which would have given shareholders an annual advisory vote on executive compensation and pay, found less than 38-percent of voters in support. Another proposal which was soundly defeated would have tied executive stock options and awards with company performance.

Still, there were some vocal company detractors present at the annual shareholders meeting, such as Mary Ann Wiley from Seattle, Washington. She told GM CEO Rick Wagoner, "If the company does not do well, management should take an equal hit, and I don't think they've taken an equal hit." Wagoner's $15.7 million dollars worth of compensation for 2007 is as drop in the bucket compared to GM's reported loss for the same calendar year, so it seems obvious that there is a bit more to the problem than overpaid executives. Still, a little shake-up seems like a distinct possibility if things don't improve quickly.

[Source: Automotive News - sub. req'd]

At the General Motors annual meeting in Delaware today, CEO Rick Wagoner will be publicly announcing the latest restructuring round for the beleaguered automaker. In response to plummeting sales of large trucks, GM will close down four more North American Assembly plants by 2010. The plants in Janesville, Wisconsin, Oshawa Ontario, Moraine, Ohio, and Toluca, Mexico are already running reduced production schedules and will cease operations entirely as products are discontinued or shifted to other plants. The Janesville plant builds medium trucks and SUVs while Moraine builds the old body on frame Trailblazer, GMC Envoy and Saab 9-7x SUVs. The other plants build full-size pickup trucks. The closures affect 10,000 employees at those plants. Those that aren't among the 19,000 who are taking buyouts will be offered transfers to other locations to fill spaces vacated by the departing workers. The closures are expected to save GM about $1 billion a year.

Wagoner will also be announcing that GM has begun a strategic review of the HUMMER brand. We contacted GM spokesperson Joanne Krell this morning who told us that the review has just begun and there is no time frame for a decision. "The HUMMER brand is a great brand and we're probably not maximizing it to its fullest. Perhaps somebody else would have that opportunity." All options are being considered including "ramping up the portfolio," shutting the brand down or "selling it in whole or in part." At this point, GM has not had any discussions with other manufacturers about the possibility of a sale, which won't happen until the review is completed.

On the positive side of things, the board of directors has approved production of a new small Delta platform car (the eventual Cobalt replacement) at the Lordstown, OH assembly plant next year. The Chevrolet Volt has also been approved for production in 2010 at the Detroit-Hamtramck assembly plant. Thanks to Craig and Matthew for the tips!

[Sources: Chicago Tribune, General Motors]

GM has seen plenty of tough times over the past few years, and even the company's top executives have felt the pinch. Executive pay was among the items cut as the General waded through multi-billion-dollar losses and immense market pressure, but after two years of cuts, the members of GM's top brass are getting their old salaries back. Top boss Rick Wagoner's base pay went as "low" as $1.1M but is now back to its 2003 level of $2.2M. Product czar Bob Lutz and money man Fritz Henderson also had their pay restored, and Fritz even got a raise to reflect his promotion to COO. Many of the pay cuts were voluntary in recognition of GM's market struggles, but even with the cuts in base pay, overall executive pay packages are worth a lot more than just the salaries alone. Wagoner, for example, was paid $14.4M in 2007, while Maximum Bob came in at $6.9M.

[Source: Auto News (subs. req'd)]

Rick Wagoner, CEO of General Motors, is a player in the auto industry. So when he sits down to have breakfast with reporters, you can bet that some juicy quotes will be delivered. Speaking on a number of topics recently at a breakfast with journos, Wagoner set the record straight that he does not share the view expressed by Bob Lutz that global warming is a "crock of $#!t". Of Lutz's famously quoted remark, Wagoner said, "The comments weren't coming out of our company." No, just the mouth of your Vice Chairman.

Wagoner also took some time to address the issue of states' rights when it comes to setting national emissions standards. Despite Barack Obama, Hillary Clinton and John McCain all stating that they are for allowing individual states to set their own emissions standards, Wagoner thinks the lucky winner of the highest office in the land will change his or her mind after moving into the White House. He counts on our nation's economic growth being a bigger priority for the next president, something to which the auto industry can't contribute if it's forced to build different versions of its vehicles to satisfy multiple emissions standards.

Click either of the sources below to read a few more topics touched on by Wagoner over his green eggs and ham.

[Source: The Detroit News, Automotive News - sub. req'd, Photo by Ethan Miller/Getty]

After an abysmal 2005 where GM lost over $10 billion, CEO Rick Wagoner received a sizable pay cut from $2.2M to $1.28M. Yeah, we know, cry him freakin' river. The General's relative success of late, however, has convinced the board that Wagoner deserves to have his annual pay restored to the $2.2M he made from 2003-2005. While $2.2M is certainly a lot of coin, it's a drop in the bucket compared to what many CEOs are making these days.

GM is making up for Wagoner's meager pay by bolstering his portfolio with 165,000 shares, 500,000 stock options, and 75,000 restricted shares. If GM hits some pre-determined goals, the CEO will also receive up to $3.53 million in cash, and if GM shares hit $40 a share by 2012, the Duke grad will get an additional 500,000 stock options. With Wagoner's background in finance, we're sure he knows that all adds up to a nice chunk of change.

[Source: Automotive News, sub. req'd]

General Motors held a conference with analysts today in which it outlined the automaker's turnaround progress and plans for 2008, the result of which is a press release (after the jump) that is the most boring piece of literature ever to be read. We tried, and were comatose by the first set of bullet points. Those who soldiered on, however, discovered that GM's cost-cutting plans for 2008 include offering worker buyouts to 46,000 eligible employees and potentially closing more facilities.

Follow the jump for the skinny on the details, as well as the official snooze-inducing press release from GM.

[Source: GM, The Detroit News]

General Motors, which has been blasted for having too many fuel-thirsty trucks and SUVs in the past, has recognized that the Chevy Volt has some serious momentum, and the Detroit automaker is redoubling its efforts to make the series hybrid a reality on time. Bob Lutz told us that the Volt would begin production by the end of decade, and despite Rick Wagoner preparing us for a missed deadline, Maximum Bob is reiterating his original 2010 deadline. Lutz points out that 400 advanced fuel scientists, 200 dedicated engineers and 40 designers are pumping heart and soul into the project, and we get the feeling failure is not an option. With skyrocketing fuel prices continuing to gradually increase and real consumer demand for a high mileage production vehicle growing, we're looking forward to Bob being right.

[Source: GM Fast Lane Blog]