Autoblog

Camaro exterior designer Sang Yup Lee moves to VW/Audi

Jonathon Ramsey — Fri, 25 Dec 2009 17:17:00 EST

Filed under: Audi, GM, Volkswagen, Design/Style

GM designer Sang Yup Lee has left for the enormous and vast wilds of the VW empire. Lee was the exterior designer of the 2010 Camaro, 50th Anniversary Stingray Concept, Buick Velite, and he worked on the C6 Corvette. Having spent time with him on a few occasions, we can also say he's an all-around great guy.

His new position, as chief exterior designer at the Volkswagen/Audi Advanced studio in California, will begin next month. Lee will report to Executive Design Director Jens Manske, and is apparently is charged with 'inspiring' the merged design divisions. We look forward to a future of brawny, haunchy, badass VWs, even if only in concept form.

[Source: Car Design News]

Camaro exterior designer Sang Yup Lee moves to VW/Audi originally appeared on Autoblog on Fri, 25 Dec 2009 17:17:00 EST. Please see our terms for use of feeds.

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REPORT: GM to depart with form and run certain plants around-the-clock

Michael Harley — Wed, 23 Dec 2009 10:59:00 EST

Filed under: Plants/Manufacturing, Buick, Chevrolet, GM, Earnings/Financials, UAW/Unions

Two weeks from now, General Motors will start running its Fairfax assembly plant continuously on a permanent basis. The unprecedented around-the-clock operation, following on the heels of the temporary third shifts a few months ago, is intended to boost the plant's production from its current 4,500 vehicles per week to 6,300 units over the same period.

Operating around-the-clock is no simple feat. Experts point out that automotive assembly lines require a lot of scheduled maintenance, cleaning, and restocking - tasks that are usually accomplished during the down periods between shifts. Typically, car makers add second shifts on a temporary basis when the market demands more vehicles. Third shifts are common for part suppliers, but not for automakers (even Toyota Motor Corp., often cited as a benchmark in efficiency, rarely operates more than two shifts). To allow time for maintenance, GM and union officials have figured out how to "overspeed" parts of the assembly line so they can be slowed temporarily later. The three-shift assembly line will run about 21.6 hours per day (up from 14.5 hours with two shifts).

GM is moving cautiously. The Fairfax assembly plant is the automaker's best candidate for a permanent third shift. Located in Kansas City, it consistently ranks among the most efficient automotive factories in America. In addition, the facility is tasked with manufacturing the Chevrolet Malibu and Buick Lacrosse - both vehicles are selling well, so a third shift will help satisfy demand rather than oversaturate the market. Hat tip to Sea Urchin for the tip!

[Source: Wall Street Journal - Subs. Req'd]

REPORT: GM to depart with form and run certain plants around-the-clock originally appeared on Autoblog on Wed, 23 Dec 2009 10:59:00 EST. Please see our terms for use of feeds.

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Mysterious Dutch billionaire behind Spyker's renewed Saab bid?

Jonny Lieberman — Tue, 22 Dec 2009 13:31:00 EST

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker

Saab: A history in pictures - click above for high-res gallery

Too bad Saab couldn't get this much ink while they were fully-alive. That's right folks, another day, another story about the undead Swedish brand. Just-Auto.com is reporting that a mystery Dutch investor is behind Spyker's 11th-hour bid for Saab. As we've learned, it's best not to do any Saab reporting of any kind without first checking in with the ~~crazy~~ kind folks over at Saabs United.

And guess what? They're pointing to an article in Holland's Telegraff that states the mystery billionaire is (maybe) none other than... Marcel Boekhoorn. We've never heard of him either, but apparently he's quite rich. Boekhoorn, for his part, denies any such deal, stating, "All not true. It is invented." However, Mr. Boekhoorn is a Spyker investor and reportedly acts as an adviser to Spyker owner Victor Muller. Let's not forget that Spyker's stock price swelled 23.5% after their renewed bid for Saab. Mr Boekhoorn's also an investor in Telegraaf...

Reportedly, one of the eleven qualms that General Motors had with selling Saab was over some of the Russian investors tied up with Spyker - fears of Saab's technology falling into Russian hands and all that. As it turns out, Spyker's main investors, Vladimir and Alexander Antonov who together own a 29.3 percent stake in the Dutch sports car maker, are not behind the renewed deal. Nor is the Abu Dhabi state investment fund Mubadala Development, which owns 22.7 percent.

Could it be that GM is only talking to Spyker and the Swedish government because of this maybe-mysterious Dutch billionaire investor? Short answer, yes. Besides, it's not December 31 yet, GM's original deadline for offloading Saab. We'll keep you posted.

Gallery: Saab- A History in Pictures

[Sources: Just-Auto; Saabs United; Telegraaf]

Mysterious Dutch billionaire behind Spyker's renewed Saab bid? originally appeared on Autoblog on Tue, 22 Dec 2009 13:31:00 EST. Please see our terms for use of feeds.

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UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice'

Jeremy Korzeniewski — Mon, 21 Dec 2009 17:17:00 EST

Filed under: GM, Saab, Earnings/Financials, Spyker

Saab loyalists can keep their candles burning a wee bit longer as supercar manufacturer Spyker has extended the deadline of its final-final offer for the Swedish brand "until further notice."

Spyker says in an all-too-brief statement (which you'll find after the jump) that it has been in contact with General Motors today following the Dutch automaker's announcement that it had that submitted a new offer that addressed 11 obstacles that had apparently previously stalled negotiations. The renewed offer was set to expire at 5pm Eastern today, but Spyker has seen fit to extend it.

Before backing out entirely and signaling its intent to wind down the struggling Saab brand, General Motors had set a deadline of December 31 to conclude its sale. No word on whether or not the Swedish government is involved in the talks, or if other parties (Mahindra?) may still be in the running. Stay tuned.

[Source: Spyker | Image: Torsten Silz/AFP/Getty Images]

Continue reading UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice'

UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice' originally appeared on Autoblog on Mon, 21 Dec 2009 17:17:00 EST. Please see our terms for use of feeds.

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REPORT: Spyker stock soars on word of Saab sale reconsideration

Jonny Lieberman — Mon, 21 Dec 2009 14:01:00 EST

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker

Here's the skinny: Saab isn't totally dead yet. As the weekend showed, there's (a little) hope for both Saab and its Dutch suitor, Spyker. As our man Ramsey laid out yesterday, Spyker submitted a renewed eleven-point plan to General Motors that they (Spyker) hopes will allow them to take ownership of the deeply troubled brand. And yes, being pronounced dead four days ago counts as "deeply troubled." As Swedish Prime Minister Fredrik Reinfeldt pointed out, all this dead/not dead uncertainty has been throwing Saab employees, "between hope and despair."

Meanwhile, a (perhaps) unintended consequence of Spyker's eleventh hour rebid is that their stock has soared up 23.5 percent. Now, as some of you well know, Spyker isn't very big. They sold just forty-three cars last year and their market cap was just 26.6 million euros before the stock shot up. Still, if Spyker plays their cards right, this spike in value could have long term benefits, but only if they secure a deal for Saab.

Says one anonymous analyst to Reuters, "The stock's value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable." Trouble is, GM only has until 5:00 pm EST today to sell Saab. For we're not sure why, but Spyker is making this a very limited time offer. If we had to guess, it's in order to force a deal. For its part, General Motors is "reviewing several new expressions of interest" for Saab, one of which according to Saabs United is Merbanco.

Should the Spyker deal (and all other deals) fall through, 3,400 Swedish workers will lose their jobs, and the 1,100 Saab dealerships worldwide will be forced to shutter. The Swedish government is in crisis talks with Saab officials right now should such a worst case scenario transpire. As for now, the Saab remains the same - i.e. mostly dead. One last thing, here's an interesting reflection on the demise of Saab by AB pal Jack Baruth.

[Sources: Reuters; Saabs United; Speed:Sport:Life | Image: Gabriel Bouys/AFP/Getty]

REPORT: Spyker stock soars on word of Saab sale reconsideration originally appeared on Autoblog on Mon, 21 Dec 2009 14:01:00 EST. Please see our terms for use of feeds.

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BREAKING: Ex-Microsoft CFO Chris Liddell named CFO of General Motors

Damon Lavrinc — Mon, 21 Dec 2009 11:23:00 EST

Filed under: Hirings/Firings/Layoffs, GM

In the search for an auto industry outside, General Motors has announced that Chris Liddell will become the automaker's vice chairman and CFO in 2010.

Set to replace Ray G. Young -- a 20-year veteran of GM -- Liddell, the former Chief Financial Officer for software giant Microsoft, will report to GM's chairman and acting CEO Ed Whitacre and use his financial expertise to right the General's ship after one of the worst years in the automaker's history.

Liddell, an engineering and philosophy major, oversaw Microsoft's global acquisitions, accounting and reporting while leading its financial team, and will depart from the software colossus on December 31. More details on this corporate breath of fresh air in the press release after the break.

[Source: General Motors]

Continue reading BREAKING: Ex-Microsoft CFO Chris Liddell named CFO of General Motors

BREAKING: Ex-Microsoft CFO Chris Liddell named CFO of General Motors originally appeared on Autoblog on Mon, 21 Dec 2009 11:23:00 EST. Please see our terms for use of feeds.

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Spyker Tries Again: Submits 11th-hour, 11-point bid for Saab

Jonathon Ramsey — Sun, 20 Dec 2009 09:10:00 EST

Filed under: GM, Saab, Spyker

Spyker's motto, written on all of its cars in Latin, is "Nulla tenaci invia est via." Translation: "For the tenacious, no road is impassable." And so here the Dutch company is, tenaciously chasing Saab, announcing in a press release that they have submitted a renewed offer to General Motors that addresses what are said to be eleven sticking points that scuttled an earlier agreement.

To be clear, we don't know what each of those eleven issues are. According to a report in a Swedish paper (translated), GM's man-in-Europe, Nick Reilly, called off the sale Friday morning, citing intellectual property fears regarding Spyker's Russian backer, and the desire for GM's board to be decisive on the matter of what would become of Saab. Spyker's statement mentions the need to receive approval for a European Investment Bank loan by the end of the year, but says it has found a solution to that need. One wonders how it could possibly address its Russian support, from Vladimir Antonov's Conven Group, in a way that might make GM happy. Either way, we should know soon whether the new proposal works, as Spyker has set a deadline of 5pm Eastern on Monday as its drop-dead date.

On a side note, Norway's Bard Eker has begun to share his take on what prevented Koenigsegg's attempt to purchase Saab (translated). Two of his points were that GM had made Saab too difficult to extract from the parent company and that Koenigsegg couldn't get GM to set prices for Saab parts. As the deal looked increasingly likely to go through, Eker says that GM wanted more money. This, however, happened before Whitacre, Jr. took the helm and apparently before indecisiveness became so frowned up by The General's leaders.

In the meantime, the Swedish government is reportedly conferring with GM reps to see what else might be done to prevent Saab from flat-lining for good. Is this an attempt by Spyker and/or the Swedish government to save face, or does this proposal truly eviscerate previous sticking points and clear the way for a reborn Saab? We're not sure, but while you (re)buckle your seatbelts, be sure to read Spyker's complete statement after the jump. Thanks to everyone for the tips!

Gallery: Saab- A History in Pictures

[Source: Spyker]

Continue reading Spyker Tries Again: Submits 11th-hour, 11-point bid for Saab

Spyker Tries Again: Submits 11th-hour, 11-point bid for Saab originally appeared on Autoblog on Sun, 20 Dec 2009 09:10:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

John McElroy — Fri, 18 Dec 2009 18:00:00 EST

Filed under: GM, Autoline on Autoblog

GM COULD REPAY EVERY SINGLE PENNY

Even though General Motors surprised everyone when it announced it will repay its government loans by next June, a lot of people are still unhappy. What about the other $50 billion we poured into the company, they demand to know?

A lot of politicians and not a few Wall Street analysts say we may as well kiss that money goodbye. We'll never see it again, they promise.

But it's entirely possible, and even likely, that they are very much mistaken. Taxpayers are likely to get a lot of that money back. Indeed, the federal government could come out looking pretty good in this deal, just like it did when it bailed out Chrysler in the early 80s.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 18 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

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GM begins repayment to U.S. and Canadian governments

Chris Shunk — Fri, 18 Dec 2009 17:30:00 EST

Filed under: Government/Legal, GM

Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]

Continue reading GM begins repayment to U.S. and Canadian governments

GM begins repayment to U.S. and Canadian governments originally appeared on Autoblog on Fri, 18 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

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BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

Chris Paukert — Fri, 18 Dec 2009 09:36:00 EST

Filed under: GM, Saab, Earnings/Financials

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

After a protracted saga that has seen bidders drop in-and-out and old model tooling and assets sold off to the Chinese, the enigmatic brand known as Saab is dead. In a press release issued this morning, General Motors announced that the "intended sale of Saab Automobile AB would not be concluded." GM had been in talks with Dutch exoticmakers Spyker Cars after pursuing a number of other buyer leads (including the aborted sale with Koenigsegg), but The General says that in the course of due diligence, the resolution of certain unspecified issues became impossible in the time frame that they had set for themselves.

As such, GM will immediately begin the "wind down" of the much-loved yet perpetually unprofitable cult brand, but says it will continue to honor warranties and provide spare parts and service - presumably through other GM brand dealers - as Saab dealers go offline. Officials note that this is not a bankruptcy or forced liquidation situation, so outstanding creditors should still expect to receive payment.

It is not clear what will happen to the production-ready 2010 9-5, nor the current 9-3/9-3X model and almost-ready 9-4X. Official death certificate available after the jump, historical slide show of the brand in photographs viewable below.

Gallery: Saab- A History in Pictures

Gallery: 2010 Saab 9-5

[Source: General Motors]

Continue reading BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand originally appeared on Autoblog on Fri, 18 Dec 2009 09:36:00 EST. Please see our terms for use of feeds.

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REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen

Jonathon Ramsey — Fri, 18 Dec 2009 08:30:00 EST

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

There are roughly 4,000 GM employees working at the company's Renaissance Center headquarters in Detroit. During the restructuring, GM has been working out how many employees to let go and where to put the remainder, and that, for the state of Michigan, meant another few thousand workers unemployed.

To lessen the damage, the Michigan Economic Growth Authority (MEGA) has been in talks with GM to limit the number of retrenched employees. The General had committed to maintaining a workforce of 2,500 at the RenCen in exchange for a $50 million tax break over twenty years, but the number was recently reduced to 2,000. GM simply needs to do all it can to get itself back in contention.

The company will still receive the tax break and talks are continuing, yet while there aren't many details it's an intriguing deal to strike. This could be cynical of us, but GM has white-collar workers in numerous locations in Michigan, and we wonder if the company wouldn't simply shuffle people around to keep the required number at the RenCen but get rid of all the employees it feels it needs to. And when the company gets its new CEO, well, as we've seen before, he or she might plot a very different course than the one being charted now.

[Source: Detroit News | Image: Bill Pugliano/Getty]

REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen originally appeared on Autoblog on Fri, 18 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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Sweeney takes over Buick/GMC general manager duties

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

Filed under: Marketing/Advertising, Buick, GM, GMC

For the third time in two months, General Motors has a new Buick/GMC general manager, this time hiring longtime employee Brian Sweeney to the high-profile post. Sweeney gets the job one week after Michael RIchards quit after just nine days on the job.

Sweeney gets the general manager post after spending a year and a half as general sales manager of Buick GMC. GM Sales Service and Marketing VP Susan Docherty said in a press release that Sweeney "consolidated 13 different agencies to one dedicated partner to drive a consistent brand message, led the dealer network through a difficult transition and has earned a reputation for tirelessly driving results that benefit consumers." That sounds like a lot of work to us. Here's to hoping this Sweeney guy lasts a lot longer than the last guy.

Sweeney's old job goes to 25 year GM vet Jennifer Costabile. The 25 year GM employee is coming off assignment as regional sales and marketing manager for Cadillac in GM's Southeast Region. Hit the jump to read the GM press release.

[Source: GM]

Continue reading Sweeney takes over Buick/GMC general manager duties

Sweeney takes over Buick/GMC general manager duties originally appeared on Autoblog on Fri, 18 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

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REPORT: Opel/Vauxhall CEO plans five-year product offensive

Jonathon Ramsey — Thu, 17 Dec 2009 17:29:00 EST

Filed under: Europe, Opel, Vauxhall, UK

Interim Opel CEO Nick Reilly has been overseeing the German firm for all of six weeks. And over that scant month and a half, he's conjured the way forward for Opel and Vauxhall and seems determined to leave nothing undone. Chatting with Auto Motor und Sport, Reilly intends to give Opel a little SUV on the Corsa platform, an Opel version of the Mini, a continuation of the Agila and an all-new electric car.

Opel would also be greater master of its own fate: Opel's tie with Suzuki will continue even with VW's recent move, but other Opels like the next Corsa would be developed in Germany. Such a vision, along with his already avowed hybrid push, would keep Opel exceedingly busy over the next five years. If his plans are achieved, it could put them in a very good spot come 2013. But there's a long way to go before all of that happens -- in the short-term GM first has to sort out the funds to keep the company running properly at all.

[Source: Autocar | Image: Thomas Lohnes/Getty]

REPORT: Opel/Vauxhall CEO plans five-year product offensive originally appeared on Autoblog on Thu, 17 Dec 2009 17:29:00 EST. Please see our terms for use of feeds.

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REPORT: No alternatives left - Whitacre says it's Spyker or the Grim Reaper for Saab

Chris Shunk — Tue, 15 Dec 2009 16:29:00 EST

Filed under: GM, Saab, Spyker

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

It's now or never. By the end of December General Motors will either divest itself of Saab by selling the Swedish automaker or by permanently closing its doors. And there is but one company bidding for the Swedish automaker -- Spyker -- which has yet to turn a profit. GM Chairman and interim CEO Ed Whitacre told a group of reporters at the company's Detroit headquarters that Spyker is the only automaker left bidding for the perennially struggling automaker. Whitacre reportedly told attendees that striking a deal was "possible," but he then reiterated that Saab would close if the deal isn't struck by the end of the year.

At the same time, the General is also reportedly selling off bits to the outgoing Saab 9-5 and the pre-2006 9-3 to Chinese automaker BAIC. Tooling for the vehicles is likely never to be used by GM or Spyker in the future so the move makes plenty of financial sense.

While the potential demise of Saab saddens us, especially when considering how close the Swedish automaker is to launching the new 9-5 and perhaps the 9-4, it's nice to see that the General is finally moving quickly and decisively to right its ship. Hat tip to MowtownMan!

Gallery: 2010 Saab 9-5

[Source: Reuters]

REPORT: No alternatives left - Whitacre says it's Spyker or the Grim Reaper for Saab originally appeared on Autoblog on Tue, 15 Dec 2009 16:29:00 EST. Please see our terms for use of feeds.

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REPORT: Despite selling off old bits to BAIC, Saab brand still in search of buyer

Jonny Lieberman — Mon, 14 Dec 2009 09:28:00 EST

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

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

Here's a little bit more on the salvation/debacle of Saab. First of all, it should be pointed out that after our last report about Holland's Spyker trying to buy Saab, the ~~freaks~~ lovely people over at Saabs United pointed out some ~~gaping holes in our reporting~~ an inconsistency or two with the Reuters/our version of the facts. As such, we've gone ahead and vetted the information we're using for this post with the brain trust over at Saabs United. Hey, they really like Saabs, what can we say? And now, on to the story.

Automotive News is reporting that China's Beijing Automotive Industry Holding Company (BAIC) has reached a deal with General Motors to acquire the tooling for both the Saab 9-3 and 9-5. Not so fast, says Saab's United! What they actually acquired is the tooling for the old 9-5, as well as the stuff for the pre-2006 9-3. Sort of a big difference, as obviously Saab's just getting geared up to roll out the all new 9-5 - and whomever winds up buying Saab will most likely want to offer both it and the existing 9-3 and its derivatives. Spyker's CEO Victor Muller confirms the BAIC deal is for "old equipment" and goes on to characterize the BAIC deal as, "Good news."

Then there's a bunch of no commenting. Obviously, General Motors has no comment on anything, though they do say that once a deal is reached they will say something. As far as we can tell, the pending Spyker deal is still a definite maybe. BAIC could not be reached to make a "no comment," and Saab's Eric Geer's stated, "We can't comment on anything about the sales process." Though our Saabs United source does provide us with a juicy tidbit, "[Geer's] wife is Saab's head legal counsel so he's like the canary in the coal mine. If he ever resigns suddenly..."

So there you have it - Saab's future is still totally up in the air. Though our source says that in addition to the 9-5 sedan, there's a 9-5 wagon (SportCombi) that's "pretty much ready to go" as well as the 9-4x which has, "been ready for about a year but Caddy had to get the SRX out first." Plus, a new 9-3 is being worked on. And one more thing - Saabs United is reporting that a Swedish group (not Renco) is also in talks with GM, in addition to the Spyker deal. We'll keep you posted.

Gallery: Frankfurt 2009: 2010 Saab 9-5

[Source: Automotive News - subs req. | Saabs United]

REPORT: Despite selling off old bits to BAIC, Saab brand still in search of buyer originally appeared on Autoblog on Mon, 14 Dec 2009 09:28:00 EST. Please see our terms for use of feeds.

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Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs

Jonathon Ramsey — Mon, 14 Dec 2009 08:27:00 EST

Filed under: GM, Earnings/Financials

It's official: pay czar Kenneth Feinberg's executive compensation rules for companies yet to return their bailout funds means a cap of $500K for second-tier executives. Importantly, that number represents the total compensation allowed, but only 45 percent of it -- $225,000, can be in cold, hard ducats. Stock remuneration must be held or paid out over at least two years, and extracurricular perks like country club memberships and private jet escapades can be valued at no more than $25,000.

Regarding General Motors, to lure the kind of executive the company seeks it will probably need a bit more flexibility with pay than the rules previously enforced on it by the pay committee. Feinberg said he will look at GM's compensation proposal when a suitor is located. It would be nigh on impossible to lure that candidate with the come-on, "Fix everything, here's a million bucks now, you'll get some Scooby Snacks in 2013, let us know when you're done, kthxbai."

Feinberg appeared to refine his pay re-examination statement, though, citing a case where GM brings someone in "laterally," not simply chooses from among the ranks. Like him, we all know that "It is vitally important that GM, under the law, be competitive and be able to compete in the automobile marketplace," especially if we want to get any more of that $30 billion back.

[Source: Automotive News - sub. req. | Image: Win McNamee/Getty]

Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs originally appeared on Autoblog on Mon, 14 Dec 2009 08:27:00 EST. Please see our terms for use of feeds.

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Mulally and Whitacre gab on phone, what was said?

John Neff — Fri, 11 Dec 2009 14:29:00 EST

Filed under: Ford, GM, Humor

Word has it that Ford CEO Alan Mulally and the new interim CEO of General Motors, Ed Whitacre, had a phone conversation this week. This type of across-the-aisle conversation is not unusual, as Mulally himself placed a call to each of his competitors when he arrived in D-town from Boeing three years ago.

We weren't on the call ourselves and neither CEO has divulged any details of their conversation, so we're left to just guess at what was said. Considering Mulally's success at Ford so far and the quagmire into which Whitacre is stepping at GM, we think it may have went something like this.

Whitacre: Hi Alan, nice to finally talk. I feel like you and I have something in common, being that we both come from companies outside the auto industry.

Mulally: I'm a busy guy, do we have to do this every time General Motors fires a CEO?

Whitacre: I'm very excited about taking GM forward into a bright future.

Mullally: The only thing bright around here is the glare off our Motor Trend Car of the Year award. You might want to draw a shade. Fusion FTW!

Whitacre: Congratulations on that. We're hoping to have a good showing for SUV of the Year.

Mulally: Good luck, I'm sure the Chevy Terrain SRX will do great. Lincoln MKT FTW!

Whitacre: Anyway, congrats on all your success at Ford and I look forward to working together on our shared interests.

Mulally: Just have the next CEO send me an email. The address is KingofKansaz321@ford.com.

[Source: Automotive News - Sub. Req. | Source Image: Bill Pugliano, Getty]

Mulally and Whitacre gab on phone, what was said? originally appeared on Autoblog on Fri, 11 Dec 2009 14:29:00 EST. Please see our terms for use of feeds.

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Buick-GMC general manager Michael Richards leaves after just nine days on the job

Jonny Lieberman — Thu, 10 Dec 2009 16:20:00 EST

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

Nine days ago, we posted about Michael Richards getting Susan Docherty's old post at General Motors, brand manager for Buick-GMC. Today, he walked away. According to The Detroit News, the official (yet still unofficial) reason is that Richards' previous employer - Trinity Automotive in Austin, TX - made him a very strong counter offer. Though it seems to us that Trinity would have made the counter offer before Richards packed up and moved north, and we've also heard rumblings from Detroit insiders that there's more to this story than meets the eye.

Whatever the actual reason for Richards' abrupt departure, Buick-GMC is currently without a leader. Chevrolet is in a bit of a better position, even though just yesterday its vice president and 31-year company vet Brent Dewar suddenly retired. Dewar was appointed to his position in July by ex-CEO Fritz Henderson, who just resigned/was outsted from GM... nine days ago. Dewar was immediately replaced by Jim Campbell, Chevy's Fleet and Commercial Operations manager.

It seems mostly obvious to us, that both Richards and Dewar's sudden departures have to do with Henderson leaving. Because honestly, it sure as hell ain't the weather outside the Renaissance Center. As for Richards specifically, it must have been odd and unsettling to start a new career on the very same day that the guy that hired you exits stage left.

[Source: The Detroit News]

Buick-GMC general manager Michael Richards leaves after just nine days on the job originally appeared on Autoblog on Thu, 10 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.

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REPORT: Spyker takes the lead in the Saab bidding sweepstakes

Jonny Lieberman — Thu, 10 Dec 2009 16:00:00 EST

Filed under: Europe, Plants/Manufacturing, Saab, Spyker

General Motors appears on track to either close or sell the ailing Saab brand by 2010. If they do, in fact, sell Saab, they are reportedly stipulating the following: the buyer must be well versed in small scale car production and they should be interested in keeping production in Saab's homeland, Sweden. If you don't know, Spyker fits that particular bill nicely.

Saab appears to be believing the deal will happen. "There are signals everywhere showing we are well on track," says Saab spokesman Eric Greers. We heard last week that Spyker was interested in purchasing Saab, and today's news only confirms it. Of course this wouldn't be a Saab story without the threat of imminent disaster looming in the shadows.

The catch is that if GM and the prospective buyer can't get the deal done by 2010, General Motors is just going to wash its hands of the perennial money loser and shut Saab down and sell off its assets. However, if the talks are going well but no deal has been reached by January, GM might consider funding Saab a little longer. Maybe. For their part, Spyker seems unaware of any looming deadline, though perhaps they should be.

[Sources: Reuters, Autocar | Image: Torsten Silz/Getty]

REPORT: Spyker takes the lead in the Saab bidding sweepstakes originally appeared on Autoblog on Thu, 10 Dec 2009 16:00:00 EST. Please see our terms for use of feeds.

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REPORT: Automotive advertising plummets 30.8%

Michael Harley — Thu, 10 Dec 2009 09:59:00 EST

Filed under: Marketing/Advertising, Earnings/Financials

Automobile manufacturers and dealers spent $7.5 billion on advertising during the first six months of 2009, says TNS Media Intelligence. The company that keeps track of nearly every form of advertising for all industries is reporting that the figure represents a 30.8% drop compared to the same period last year, when it was $10.8 billion in spending. Not surprisingly, the plummet nearly mirrors the decline in motor vehicle sales (which dropped 27.4% during the exact same period).

The decline in advertising expenditures isn't is exactly new news as automotive advertising has dropped for seventeen consecutive quarters, reports TNS. Among the nation's top ten advertisers for the same period, General Motors was the only automaker to make the cut in third place behind Proctor and Gamble Co. and Verizon Communications Inc. -although GM only spent $1.4 billion this year (a reduction of 15.5% from last year). Overall, across all industries, advertising is down nearly 15% from last year according to TNS Media.

[Source: Detroit Free Press, image: Productioncars.com]

REPORT: Automotive advertising plummets 30.8% originally appeared on Autoblog on Thu, 10 Dec 2009 09:59:00 EST. Please see our terms for use of feeds.

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