Autoblog

GM loses $1.2B last quarter, ready to start repaying loans

Jonny Lieberman — Mon, 16 Nov 2009 12:32:00 EST

Filed under: Government/Legal, Earnings/Financials

This is one of the trickier press releases we've ever had to parse, but here goes. Despite losing $1.15 billion in the third quarter of 2009, General Motors sees this as a "solid foundation." GM President and CEO Fritz Henderson continues, "With a healthier balance sheet and a competitive cost structure, our focus is on driving top line performance. We'll achieve that by winning customers over, one at a time, with vehicles that deliver performance and value."

How can he say any of that? Despite the loss, revenue for the entire quarter is up $4.9 billion from Q2. As are sales, up from 62.8 million global sales in Q2 to 67.7 million in Q3. Cash for Clunkers helped boost sales, resulting in such a healthy quarter. But despite a good three months, GM is still saddled with paying out $2.8 billion for Delphi's bankruptcy, $2 billion of "payment term adjustments," $2.5 billion owed to the US and Canadian Governments and another $1 billion in restructuring costs. Bottom line, says Henderson, is, "I've been asked 100 times, 'When are you going to start paying back the taxpayers?' The answer is now." All the sordid details are in the press release below the fold.

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

Continue reading GM loses $1.2B last quarter, ready to start repaying loans

GM loses $1.2B last quarter, ready to start repaying loans originally appeared on Autoblog on Mon, 16 Nov 2009 12:32:00 EST. Please see our terms for use of feeds.

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Analysts: Say hello to the new GM, same as the old GM [w/VIDEO]

Chris Tutor — Mon, 17 Aug 2009 11:30:00 EST

Filed under: Marketing/Advertising, Cadillac, Chevrolet, GM

GM explains "New GM" in new commercial - Click above to watch video after the jump

Remember the old General Motors? Too many brands, too many models, advertising campaigns that petered out too soon, and multiple products competing for the same buyers. That's changed, officials from the new GM say, promising a leaner lineup of four brands and just 25 models by 2011.

But automotive analysts quoted by Advertising Age say that's a good start, but critics say the automaker's weight loss plan needs more fiber and less frosting. First, the still-huge GM hasn't enough cash to properly market even four divisions, one expert says, citing Honda-Acura, Toyota-Lexus and Nissan-Infiniti as examples to follow. Three analysts recommend GM hold on to just Cadillac as the premium brand and Chevrolet as the mainline marque.

Then there's the company's marketing plan. Dump the GM name from ads, analysts told AdAge, and just sell the cars. "They shouldn't even identify themselves as GM. People don't buy GM cars; they buy Cadillacs and Chevys, and that's what they ought to be talking about," auto consultant Maryann Keller tells AdAge.

AutoPacific's president George Peterson has another issue with GM's marketing strategy. He points out that the company spent more than $100 million to launch the new Chevy Malibu in 2007, but it hasn't advertised the car in nearly a year. "It seems like they are going back to their old ways," Peterson said.

[Source: Advertising Age]

Continue reading Analysts: Say hello to the new GM, same as the old GM [w/VIDEO]

Analysts: Say hello to the new GM, same as the old GM [w/VIDEO] originally appeared on Autoblog on Mon, 17 Aug 2009 11:30:00 EST. Please see our terms for use of feeds.

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The Greenwash to End All Greenwashing? GM reportedly pondering changing logo color

Sebastian Blanco — Thu, 09 Jul 2009 10:27:00 EST

Filed under: Green, Marketing/Advertising, GM

2010 Chevy Spark - Click above for high-res image gallery

General Motors has certainly been pumping out a greener message for the last few years, but, on the eve of its likely emergence from bankruptcy, it looks like it might be ridiculously difficult to miss the company's shift to a new and very public eco-mindset: The General's traditional blue square logo could become green. No, really.

While no official decision has yet been made, insiders are saying that the background color change is being considered, "in an effort to show consumers that it is leaner and greener, more focused on fuel efficiency and better able to make quick decisions," says MSNBC.

The fuel efficiency meaning of a possible new green logo is easy to understand and the "quick decisions" part reflects a new GM that will likely have 35 percent fewer executives to go along with fewer employees overall. More announcements on these issues and the fate of the Spark minicar could come tomorrow, when GM is expected to emerge from bankruptcy.

The real color change that GM needs to make, of course, is a shift from red to black - but that's significantly harder than swapping pixels in a logo.

Gallery: Geneva 2009: Chevy Spark

[Source: MSNBC | Logo Image: Adam Morath/AOL]

The Greenwash to End All Greenwashing? GM reportedly pondering changing logo color originally appeared on Autoblog on Thu, 09 Jul 2009 10:27:00 EST. Please see our terms for use of feeds.

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REPORT: Federal bankruptcy court expected to rule on "New GM"

Chris Paukert — Tue, 30 Jun 2009 10:57:00 EST

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

According to Reuters, General Motors is on its way into bankruptcy court today in an effort to win approval and access to additional federal funding under its asset-split plan. The automaker filed for Chapter 11 protection just 30 days ago, but it will now go before Judge Robert Gerber to sell desirable assets (think: Chevrolet, Cadillac, GMC, Buick) to "New GM" and jettison various debts and negative assets by consigning them to "Old GM," which would be liquidated. If it succeeds in winning court approval, GM will receive billions in U.S. Treasury funding.

Before it can open the Fed's piggy bank, however, GM must weather challenges from bondholders and disgruntled consumers involved in certain types of product liability lawsuits. Industry watchdogs believe that both GM and the Obama administrations auto task force have learned from Chrysler's bankruptcy machinations, which could accelerate the process. For more details on today's proceedings, check out the link below. Thanks for the tip, Michael!

[Source: Reuters via Yahoo | Image: Michael Heiman/Getty]

REPORT: Federal bankruptcy court expected to rule on "New GM" originally appeared on Autoblog on Tue, 30 Jun 2009 10:57:00 EST. Please see our terms for use of feeds.

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New GM will take on future product liability claims, but not the current ones, against Old GM

Jonathon Ramsey — Sun, 28 Jun 2009 14:11:00 EST

Filed under: Government/Legal, GM

A consumer group representing people who currently have product liability claims against GM and Chrysler looks like it won't be getting much, if any, restitution. When GM went into bankruptcy, it still planned to deny any liability claims -- ones that came up today, for instance -- when the new GM was formed. In a reversal meant to quell resistance from that consumer groups and state officials, New GM has agreed to assume liability for future claims on products made by Old GM.

The consumer group said, "The fact that 'New GM' will protect consumers injured by defective 'Old GM' cars is a positive development for public safety." The key word in this is "future;" new GM won't be responsible for any of the currently pending claims -- those that the consumer group is really fighting over, and that will still be addressed by old GM. Also, no date was given for when the "future" begins, so there is still a fair bit of clarity left to get on this issue.

[Source: Yahoo!]

New GM will take on future product liability claims, but not the current ones, against Old GM originally appeared on Autoblog on Sun, 28 Jun 2009 14:11:00 EST. Please see our terms for use of feeds.

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Former AT&T chief Edward Whitacre, Jr. named chairman of New GM

Noah Joseph — Tue, 09 Jun 2009 13:00:00 EST

Filed under: Hirings/Firings/Layoffs, GM

A new General Motors needs new leadership. So following the replacement of former CEO Rick Wagoner with Fritz Henderson, the General has announced its new incoming chairman: Edward E. Whitacre, Jr.

Whitacre is perhaps best known for his seventeen-year tenure as chairman and chief executive of AT&T, overseeing mergers and expansions that made AT&T the largest telecom company in America. He holds a degree in industrial engineering from Texas Tech, and also serves on the boards of ExxonMobil and BNSF Railway.

Whitacre will take over from interim chairman Kent Kresa once the bankruptcy proceedings wrap up and New GM is launched, at which point several of the current board members will remain, six will depart and a new crop of directors will join the board over which Whitacre will preside. Details in the press release after the jump.

[Source: General Motors | Image: Mark Wilson/Getty]

Continue reading Former AT&T chief Edward Whitacre, Jr. named chairman of New GM

Former AT&T chief Edward Whitacre, Jr. named chairman of New GM originally appeared on Autoblog on Tue, 09 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

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