autoMedia Auto News Blog : Cadillac

Charge! Cadillac Converj Plug-In Racing to Production

admin — Tue, 10 Nov 2009 02:36:00 GMT

Word has spilled from the Motor City via The Detroit News that General Motors will produce the Cadillac Converj extended-range electric car. For industry pundits, it seemed predestined that GM would offer a luxury sibling to the much ballyhooed Chevrolet Volt. By packaging the innovative drivetrain in a Cadillac model, GM can amortize the investment across more sales volume. Just as significantly, a Cadillac sports car can absorb the cost for the expensive battery packs, and it will make the Volt seem like an affordable, practical alternative, rather than the most expensive Chevrolet in history. First shown at the 2009 North American International Auto Show in Detroit , the Cadillac Converj served as the automaker’s grand finale. Product czar Bob “Maximum” Lutz at the time said if greenlighted, the production Converj would closely resemble the show vehicle. As you can see here, the Converj bears more than a family resemblance to the CTS Coupe , and it puts a sharp edge on luxury sportsters in general. Going green is fast becoming cool. The Volt is expected to go on sale by late 2010, so don’t look for a Cadillac version till 2011 at the earliest. Also see: Driving a Chevy Volt Test...(read more)

autoMedia CARnival 10-30-09: This week in Auto Blogs

Brandy Schaffels — Fri, 30 Oct 2009 18:52:00 GMT

It's the week ending October 30, and we've browsed our favorite automotive blogs all week long to gather the highlights from each. First, it's too obvious to forget, but this weekend is Halloween, and there are sure to be lots of kidlets swarming the roads in costume on Saturday evening. AskPatty knows Halloween is the most dangerous day of the year for children to walk and offers up a selection of tips to help drivers do their part to keep trick-or-treaters safe from harm. Love this one: "Empire Strikes Back: White House calls out Edmunds on Clunkers story, Edmunds responds" The facts in the case of the White House versus Edmunds are essentially indisputable - but they are open for interpretation. Thanks to AutoBlog for summarizing this excellent -- and entertaining -- case of "He said, They said." Daylight savings time ends this weekend, be sure to take extra care when driving in residential neighborhoods and approaching intersections and stop signs as you adjust to the added darkness along your familiar roads. Automotive Traveler advises your children to be extra careful if they're walking in a parking lot or crossing the street as the sun sets...(read more)

700-hp Hennessey CTS-V So Quick, OnStar Notices

admin — Mon, 26 Oct 2009 01:43:00 GMT

The latest high-performance creation from Hennessey Peformance Engineering (HPE) is so quick that OnStar was alerted by a recent acceleration test. In a video , posted by AutoBlog , a Cadillac CTS-V700 billed as a “four-door ZR-1” ran the quarter-mile in 11.07 seconds at 128 mph. In doing so, the musclebound CTS-V pulled .99 g, enough to alert OnStar that something beyond the norm for a production car was going on. A great nod to the performance accomplishment, an OnStar operator calls the car after the run and the driver reports all is fine. (Learn how OnStar works .) The CTS-V700 with 20-inch drag radials claims a 10.9 second quarter-mile time at 129 mph. It blasts 0-60 mph in just 3.1 mph, reaching a 211 mph top speed. The V700 package includes: Four-inch cold-air induction system Supercharger pulley and snout upgrade Engine management software upgrade Long tube 1 7/8-inch stainless-steel headers Three-inch stainless mid pipes High-flow catalytic converters Intercooler heat exchanger system upgrade V700 camshaft upgrade V700 high-flow cylinder heads 160-degree thermostat Hennessey embroidered head rests Serial numbered dash and engine plaques Should that transformation sound too...(read more)

GM Reports Only One Return Against 60-Day Promise

Editor — Fri, 16 Oct 2009 05:48:00 GMT

General Motors happily reports that since launching their 60-day love-it-or-return-it guarantee, only one buyer from 150,000 new-vehicle purchases has returned their new GM car, and actually he exchanged it for the same car but with a different transmission. “Out of hundreds of thousands, the people who've selected the 60-day guarantee were in the hundreds,” GM's marketing chief Bob Lutz said during a press conference Wednesday. “We have had one substantiated return of a vehicle.” Actually, of the 150,000 vehicles sold since the sales campaign debuted, only 100 people have opted for the 60-day return offer. The rest of the buyers each chose to take $500 cash. That's $74,900 in sales incentive "costs" the the automaker ... about the value of one nice Vette or a CTS-V ... and an indicator that a lot of people love cash and/or have faith they'll be happy with their new GM purchase decision 60 days down the road. ~ Deborah Neal, Editorial Director, autoMedia.com...(read more)

autoMedia CARnival 9-11-09: This week in the auto blogs

Brandy Schaffels — Fri, 11 Sep 2009 13:29:00 GMT

It's the week ending September 11, 2009 and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Big news is General Motors' announcement of a 60-day money-back guarantee, that will allow eligible buyers of new Chevrolet, Buick, GMC and Cadillac vehicles that will allow customers to return their vehicle to their dealer between 31 and 60 days of purchase and receive a refund of the purchase price for the vehicle.

Sneak Peeks from the upcoming Frankfurt Auto show are everywhere to be found! AutoBlogGreen has news and photos of the Mercedes-Benz S 500 plug-in electric Hybrid set to Debut in Frankfurt next week. The luxury PHEV features a 3.5-liter V6 gasoline engine and a 44 kW/60 hp electric motor that promise the S 500 Hybrid races from 0 to 62 mph in 5.5 seconds, while also offering more than 70 miles per gallon. Race on, Treehuggers!

MotorTrend's Frankfurt preview is live now, with first looks at more than a dozen of the cars set to be revealed next week. They've got everything from the Audi R8 Spyder, Lamborghini Reventon Roadster, Lexus LF-Ch and BMW Vision EfficientDynamics concepts. The content here will just keep growing, so check back again next week to see what else has been added.

This announcement from Jalopnik is worth running just because the photo is so entertaining! During a marketing call to promote GM's GM's new marketing campaign: "May The Best Car Win," Bob "Maximum Marketing" Lutz challenged any comers in an unmodified production sedan to a duel against a Cadillac CTS-V. So, Jalopnik challenged Lutz to race against Wes Siler in a Mercedes-Benz AMG C63. Regardless, Lutz told the assembled reporters "You're running into a trap because if you beat me by a second on the lap time, we'll just advertise the price difference." Can't wait to see the outcome of this event!

Ahead of its official debut at the State Fair of Texas later this month, images of Toyota's next-generation 4Runner SUV have been leaked at LeftLaneNews. You'll have to wait until September 24 for more official news, until then, this is all you get.

Next week is National Child Passenger Safety Week, and to launch the event, Inspection stations across the United States are standing by on Saturday, September 12 so that car seat installations can be explained and demonstrated in person. AskPatty.com suggests that if you've got babies or young children, this would be a good reason to take the grandparents and caregivers for a refresher course on child seat safety

Moving up from child safety to Teen Driving Safety, Liberty Mutual Insurance has just released an analysis that claims to show that moms and dads are not exactly setting good examples as the drive. According to the article at TheDetroitBureau, 69% of parents of teen drivers report they practice at least two dangerous or distracting behaviors while driving, and nearly half do at least three. Blame the dads (not the moms) for these bad examples, as the survey finds dads are less likely than moms to encourage their teens to practice safe driving in general. While 85% of moms discuss safe driving often with their teen drivers, only 73% of dads have had the same conversation.

Before we end for the week, let's take a moment to enjoy a funny car commercial, brought to us by those wacky humorists at AutoBlog. Ever wonder what goes into the design of the cars we see on the road? Well, here's an inside look at what goes into styling a sexy German-designed automobile. It'll take your breath away...

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, autoMedia.com Contributing Editor

GM Bets on Consumer Confidence with Money-Back Guarantee

Brandy Schaffels — Thu, 10 Sep 2009 23:43:00 GMT

As another step towards boosting consumer confidence in the brands, General Motors will now offer a Satisfaction Guarantee to eligible buyers of new Chevrolet, Buick, GMC and Cadillac vehicles which allows customers to return their vehicle between 31 and 60 days of purchase and receive a refund of the purchase price for the vehicle.

The new Satisfaction Guarantee is in addition to GM's existing warranty coverage, which includes a transferable 100,000-mile/five-year (whichever comes first) limited powertrain warranty, roadside assistance, and courtesy transportation.

The warranty is part of GM's larger "May the Best Car Win" marketing campaign that demonstrates the manufacturer's confidence in its vehicles when compared head-to-head with the most competitive vehicles in each vehicle segment. The moneyback guarantee will be offered between September 14 and November 30, 2009.

"We're putting our money down that if people buy one of our vehicles and don't absolutely love it, we'll take it back. We will stand behind them both in the short-term and over the long haul," said Bob Lutz, GM vice chairman, Marketing and Communications.

It's clear here that the biggest goal is to get buyers into dealerships to take a look at the improved quality of the entire product lineup, instead of dismissing them in favor of import competitors, believing them to be better. "The Cadillac SRX and CTS Wagon, the Buick LaCrosse, the Chevrolet Equinox and GMC Terrain, for instance, are all outstanding new products," said Lutz. "We think if consumers give us a fair chance and look at the facts on the things that matter most to them, like design, fuel economy, warranty and safety, our vehicles are the best choices - that's what makes an offer like this possible," said Lutz.

The Satisfaction Guarantee covers the vehicle purchase price and sales tax on 2009 and 2010 Model Year Chevys, Buicks, GMCs and Cadillacs (except medium duty trucks). It excludes other add-ons like accessories, negative equity on a trade-in, or other fees; other restrictions apply, and leased vehicles are not included. If they're not happy with their purchase, customers (only one per household) can return their vehicle between 31 and 60 days as long as their payments are current and the vehicles have been driven less than 4000 miles.

"We know that we'll need to work very hard to get people's attention and encourage them to give Chevy, Buick, Cadillac and GMC a try," said Lutz. "We think the 'May the Best Car Win' campaign and the Satisfaction Guarantee offer should help re-instill confidence in the excellence of our products."

GM is betting big on that goal, but has taken out insurance against losses, which could equal thousands of dollars on each returned car. "I think we can now say our current lineup can bear comparison with any other volume automakers' products anywhere in the world," Lutz said, in an article at CNN Money.

Additional information will be available beginning Monday, September 14, when the following informative websites -- www.Chevy.com/guarantee, www.Buick.com/guarantee, www.Cadillac.com/guarantee, and GMC.com/guarantee -- come online.

Interested in finding out more about these brands before you go shopping? Then browse our Chevy, Buick, Cadillac, and GMC vehicle reviews here at the autoMedia.com Buyer's Guide.

By Brandy Schaffels, autoMedia.com contributing editor

25 in 24: GM Reveals New Models for its Core Brands

Brandy Schaffels — Wed, 12 Aug 2009 15:04:00 GMT

One month after it emerged from bankruptcy, General Motors reintroduced itself on Tuesday by revealing to journalists an array of all-new cars, crossovers, and trucks that will be debuting now through 2011. Watch a repeat of the webcast at this link.

Among the many offerings, GM President and CEO Fritz Henderson also confirmed that Cadillac is developing an entry premium sport coupe to capitalize on the growing market for smaller luxury vehicles in the U.S. and globally. The rear- and optional all-wheel drive ATS model will launch as a coupe to compete in the segment below the CTS, promising outstanding performance and driving dynamics. A sedan variant will arrive later.

At GM's Design Center and Milford Proving Ground, GM promised 25 new products in the next 24 months, and previewed six all-new 2010 vehicles as well as a glimpse of what will be introduced through the end of 2011:

Chevrolet alone will be releasing 10 new models, including the 2011 Volt (due Q4 2010), the miniscule Spark hatchback (debuted at the 2007 New York Auto Show and currently on sale in Asia, due Q1 2012), the next-gen Aveo, the compact Cruze sedan (due Q3 2010), the seven-seat Orlando crossover SUV, the Corvette Grandsport which outfits the current Corvette powertrain with the sporty appearance of the Z06, the completely redesigned next-gen Malibu, and a Camaro convertible (due Q2 2011).
Buick and GMC are adding 10 new entries. In addition to the lovely new 2010 LaCrosse sedan and library-quiet Enclave SUV on sale now, Buick will introduce a plug-in hybrid compact crossover in 2011 developed from the Saturn Vue, a brand-new small crossover "Baby Enclave" similar in size to the now-retired Pontiac Vibe, and a compact sedan promising premium content without a premium price. The Buick showcase was most intriguing, but because they sealed up the lenses of all our cameras with orange tape when we entered, I was unable to even sneak any blurry spy photos with my cell phone cam.
Cadillac is introducing five new models through 2011, and will be expanding its CTS lineup to include a sport wagon, the small ATS coupe and sedan, a gorgeous XTS full-size sedan that will replace the STS and DTS models, and the SRX crossover.

Repeating a familiar focus point of the new General Motors, Henderson emphasized the company's commitment to producing quality vehicles and an increased focus on customer satisfaction. "The key to restarting this company lies with GM's customers, cars and culture," Henderson said. "With four focused brands, we are committed to exceeding our current customers' expectations and giving consumers plenty of reasons to choose a Chevy, Buick, GMC or Cadillac car or truck."

Want to find out more about these vehicles? Check out more Buick, Cadillac, Chevrolet and GMC products in the autoMedia.com Buyer's Guide.

By Brandy Schaffels, autoMedia.com Contributing Editor

autoMedia CARnival 7-25-09: This week in the auto blogs.

Brandy Schaffels — Fri, 24 Jul 2009 13:44:00 GMT

It's the week ending July 25, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. News this week was slow (for a change), with no monumental announcements regarding the state of the automotive industry.

Probably the most popular news item of the week was the announcement by General Motors that they would be releasing a special Transformers edition of the Camaro. Yep. Available on Rally Yellow LT and SS models, the $995 Transformers package is intended to emulate the Bumblebee character from the Transformer movies and features special Autobot badging but no additional performance upgrades. This savory tidbit ran at Left Lane News, USNews, Jalopnik, Motor Trend, The Detroit Bureau, and even here at autoMedia.com.

Jim Cherry, the national classic car examiner knows that for some true car fans, life won't be complete without a vintage car key to the highway. His guide to novices buying a vintage car is founded on solid advice: Do your research! Knowledge is power. And that power will protect you from making expensive mistakes. But he admonishes one additional fact: it's nearly always cheaper to buy a car someone else has restored than restore it yourself.

General Motors made news last week by bringing Bob Lutz out of retirement to supervise all creative elements of products and customer relationships. Well, according to autoblog.com, his first act is to move current North American design head Brian Nesbitt into a new and very different role as the general manager of the Cadillac division. Among his responsibilities in his present design role at GM, Nesbitt oversaw the Cadillac CTS Coupe and SportWagon projects. He officially takes the reins at Caddy on August 1.

Jalopnik has moved from reporting on cars to fashion, with news about a new line of Cadillac-branded products for men. Apparently, as part of the brand's 100th anniversary in 2009, a Dubai-based cosmetic company will be producing a line of cosmetics for men that will include a cologne, aftershave, deodorant, and hair and body wash each scented with grapefruit, chamomile, geraniums, tarragon, cinnamon, sweet spice, and incense.

Generally well-received by the automotive press, Hyundai's new Genesis has recently garnered top marks from J.D. Power and Associates in its Vehicle Launch Index. According to The Car Connection, the Vehicle Launch Index offers a kind of holistic assessment of the vehicle, measuring how well it performs for the manufacturer, the dealer, and the customer. Joining the Genesis in the Index's top five are the 2009 Ford F150, the 2009 Volkswagen Tiguan, the 2009 Nissan Maxima, and the 2009 Subaru Forester. In all, twelve vehicles managed to beat the industry average, including seven other models from Ford, Dodge, Honda, Mazda, Nissan, and Volkswagen.

Not quite sure how they're getting away with it, but The Detroit Bureau reports that Chrysler Group will offer to double the government's new Cash-for-Clunkers subsidy, meaning incentives of up to $9,000 on "eligible" Chrysler, Dodge, and Jeep products.

Ford revealed plans this week for higher fuel efficiency across its 2010 lineup, promising its new vehicle lineup will improve fuel economy by about 20 percent compared to 2005 levels. The company is also committing to at least four new electrified vehicles on the road in the US by 2012, including a full battery electric vehicle, a plug-in hybrid, and new conventional hybrids, according to a report from hybridcars.com.

It's big news that the National Highway Traffic Safety Administration (NHTSA) withheld research revealing the risks of driving while operating a cell phone. Apparently, according to ConsumerReports.org, "The report details the need for more laws and restrictions on cell phone use by drivers. NHTSA specifically recommends that those behind the wheel not use any device, except in an emergency. They also note that laws that forbid the use of hand-held phones are not effective, don't address the problem, and that it may actually imply that hands-free phones are safe." Wowzer! Put your cell phone down and drive!

Motor Trend took a week-long roadtrip in a Euro-spec Ford Fiesta, covering 2550 miles and burning 80 gallons of gas - that's an average just shy of 32 miles per gallon! And, all while loaded down with two staff members, their personal effects, and a bunch of camera gear. Click this link to read about their road-trip adventures, or click this link to read about the month-long coast-to-coast adventures of Fiesta Agent Danny Grozdich, here at automedia.com

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

autoMedia CARnival July 17, 2009: What is happening this week in the auto blogs?

Brandy Schaffels — Fri, 17 Jul 2009 13:53:00 GMT

It's the week ending July 17, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Following on the heels of General Motors return from bankruptcy last week, the biggest news this week swirls around the return of beloved "Maximum Bob" Lutz from retirement to head General Motors as vice chairman responsible for all creative elements of products and customer relationships. And within days of his return he's already making headlines wherever we look, thanks to one particularly lofty statement made early in the week...

On Monday, MotorTrend.com reported some of Lutz' future product plans, including confirmation that the Cadillac CTS-V Coupe is still alive and that there's even a remote possibility of a CTS-V Wagon; hints that the nearly production-ready Camaro Z/28 supercharged Mustang GT500-fighter may never see the light of day; and a report that the fabulous Pontiac G8 will live on as the Chevy Caprice.

The possibility of a Pontiac G8 to Chevy Caprice rebadge was optimistically covered by a number of auto blogs, including Jalopnik, Consumer Reports, AutoBlog, USA Today, Automotive Traveler, and The Detroit News -- but by midweek, General Motors began backpedaling on his statement, and it wasn't long before Autosavant, Consumer Reports, Left Lane News, and others rescinded the report, either by publishing additional stories, or by adding commentary to the original verisons. Jalopnik explained it most bluntly with a quote from GM CEO Fritz Henderson saying "Bob Lutz says a lot of things, but he works for me."

You might not expect to hear bad news about hybrids from a site like AutoBlogGreen, which shares a new study by Quality Planning showing that hybrid cars are driven more (potentially negating the benefits of the added battery pack and electric motor), cost more to fix, and get more tickets.

Speaking of hybrids, The Detroit Bureau says Honda will soon be selling to more of them in a report indicating the company has confirmed plans to begin sales of a CR-Z hybrid model in February 2010, with a hybrid version of the Fit following before the end of the year. Apparently, Honda's latest production hybrid, the Insight, is now selling well enough that the company is changing the capacity at its Suzuka Japan, factory where it is made.

Some might call it art, others might not. Jalopnik has a photo gallery of a monstrous Volkswagen dubbed "The Goddess Of Maximalizm" which wears waaaaay more than the required number of driving lights and antenna, various guards and flaps, a wagon wheel, and even a ladder. Uhm. Yeah...

Mexico gets on the bandwagon with its own "Cash for Clunkers" program! A story over at AutoBlog -- which almost sounds like an April Fools prank-- reports that Mexican new car buyers will be given 15,000 pesos ($1,100 U.S.) for cars they turn over to recycling depots or junkyards, and they can apply that to cars worth up to 160,000 pesos ($11,760 U.S.). Eligible vehicles include those built in Mexico or imported by any of the seven companies that have assembly plants in the country.

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

J.D. Power Names Most Appealing New Cars

admin — Fri, 17 Jul 2009 01:46:00 GMT

J.D. Power and Associates released its annual Automotive Performance, Execution and Layout (APEAL) study revealing the owner satisfaction with 2009 cars, trucks, and SUVs. Seven all-new and redesigned models rank highest in their respective segments, including the Dodge Challenger, Ford F-150 (in a tie), Ford Flex, Hyundai Genesis, Nissan Maxima, Volkswagen CC, and Volkswagen Tiguan. (Click links for AutoMedia reviews.)

Based on the first 90 days of ownership, the APEAL study examines how gratifying a new vehicle is to own and drive, based on owner evaluations of more than 90 vehicle attributes. The comprehensive research is based on responses more than 80,900 purchasers and lessees of new 2009 model-year vehicles.

Luxury nameplates dominated the top brands: Porsche, Jaguar, Cadillac, Audi, BMW, Mercedes-Benz, Lexus, Infiniti, Land Rover, and Lincoln. The bottom brands were largely value-focused car lines, though Subaru and Toyota were in the lowest six. (Click links for the new car buyer's guide.)

The results can help shoppers gauge the satisfaction from other consumers, though ultimately the real use for the survey is to help manufacturers understand how their products measure up. Down the road, that should lead to cars continuing to improve, or at least be more appealing.

The top models by segment
Subcompact car
Smart ForTwo
Scion xD
Honda Fit

Compact car
Mini Cooper
Volkswagen Jetta
Mitsubishi Lancer

Compact sporty car
Volkswagen GTI

Compact premium sporty car
Mercedes-Benz SLK
Nissan 370Z

Entry-premium vehicle
Volkswagen CC
Cadillac CTS
Audi A4/A5

Midsize sporty car
Dodge Challenger

Midsize premium car
Hyundai Genesis
Jaguar XF
BMW 5 Series

Large premium car
Mercedes-Benz S-Class
Lexus LS

Midsize car
Volkswagen Passat
Mazda 6
Honda Accord

Large car
Nissan Maxima
Pontiac G8
Toyota Avalon

GM Ends Sponsorship Contracts to Cut Costs

admin — Tue, 14 Jul 2009 23:49:00 GMT

As part of the austerity program accompanying its emergence from bankruptcy, General Motors is ending long-standing sponsorship contracts to slash unnecessary costs. The move follows on the heels of the company’s announcement Friday that it will be cutting 25-35 percent of its workforce, and reducing nameplates from 48 to 34 within a year.

According to a report at The Detroit News: ”A federal judge Monday let General Motors Co. shed dozens of sponsorship deals and pricey perks that included VIP suites at international speedways, naming rights for a Lansing baseball stadium and Times Square billboards.”

The move frees General Motors from millions of dollars in marketing, sponsorship, and promotions-related expenses, most of which are deemed unrelated to core operations, especially now that the company has announced it will be focusing its efforts on Buick, Cadillac, Chevrolet, and GMC. Among the cuts are even seats at major motorsports venues, including Daytona, Dover, and Richmond NASCAR tracks. (Click here to download a complete list of affected sponsorships.)

Earlier this year, General Motors ended several sponsorships with such high-profile celebrities as PGA golfer Tiger Woods and filmmaker Ken Burns, and it pulled out of hosting such events as the Super Bowl and Academy Awards. According to the court filing, these sponsorships are not required for ongoing business and create unnecessary and burdensome expenses for company, which has reportedly lost as much as $82 billion in the last few years.

According to the report, GM ended more than 50 promotional agreements, though it was not reported how much money the automaker will save. Once the nation's largest advertiser, General Motors will be ending sponsorship deals with the Oakland Raiders, the University of Southern California, and the Arnold Palmer Invitational golf tournament, and it gives up naming rights of Oldsmobile Park, as well as the Chevrolet clock in Times Square -- where it has advertised since the 1930s.

"You'll see that many of those we 'rejected' or chose not to carry forward involve retired brands or soon-to-expire GM brands, or simply reflect the reality that the new, smaller, GM only has four brands to support," GM spokeswoman Kelly Cusinato told The Detroit News.

In a more positive news, GM has announced that Bob “Maximum” Lutz has changed his retirement plans to join the “new” GM as vice chairman responsible for all creative elements of products and customer relationships. Rest assured, there will be interesting marketing campaigns in the months ahead.

By Brandy Schaffels, autoMedia.com Contributing Editor

General Motors Emerges from Bankruptcy with New Plan

Brandy Schaffels — Fri, 10 Jul 2009 23:02:00 GMT

As General Motors emerges from its bankruptcy today, GM President and CEO Fritz Henderson led a "state of the company" address this morning, describing the immediate priorities for the new General Motors. It's been only 40 days since the company filed its bankruptcy plan on June 1, 2009.

At this morning's announcement, Henderson, said "One thing we have learned from the last 100 days is that GM can move quickly and decisively...Today, we take the intensity, decisiveness and speed of the past several months and transfer it from the triage of the bankruptcy process to the creation and operation of a new General Motors."

The new General Motors launches with a clear and simple vision - to design, build and sell the best vehicles in the world, focusing on General Motors' four core brands - Chevrolet, Cadillac, Buick and GMC - will have a total of just 34 U.S. nameplates by 2010 (a reduction from the previous 48). Henderson believes this emphasis on fewer, better entries will enable the new GM to put more resources into each nameplate, resulting in better products and stronger marketing

"Business as usual is over at GM," said Henderson. "Today starts a new era for General Motors and everyone associated with the company. Going forward, the new General Motors is fully committed to listening to customers, responding to consumer and market trends, and empowering the people closest to the customer to make the decisions. Our goal is to build more of the cars, trucks, and crossovers that customers want, and to get them to market faster than ever before."

"We're also working on new ways to make car buying more convenient for our customers, including an innovative new partnership with eBay in California to revolutionize how people buy vehicles online," Henderson said. "Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'buy it now' price. We'll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months. In all cases, our goal is to make the shopping and buying process as easy as possible for GM customers - on their time and their terms. Stay tuned."

In a report published at WSBT.com, GM spokesman John McDonald said that some GM dealers already independently list vehicles on eBay, but they expect this experiment could be a way to bring other GM dealers on board.

Fritz Henderson also confirmed in this morning's address that Bob Lutz will not be retiring as had been previously announced. Instead, he will be staying on at General Motors as vice chairman responsible for all creative elements of products and customer relationships. In his report, Henderson announced that Lutz and Tom Stephens (vice chairman, product development) will work together as a team, partnering with Ed Welburn (vice president of design) to guide all creative aspects of design. GM's brands, marketing, advertising, and communications will report to Lutz for consistent messaging and results. Lutz will report to Henderson, and be part of the newly formed executive committee. "I am pleased to announce that we are 'unretiring' Bob Lutz so he can fill this important position in the new GM," said Henderson. "He has a proven track record of unleashing creativity in the design and development of GM cars and trucks. This new role allows him to take that passion a step further, applying it to other parts of GM that connect directly with customers."

As part of its new plan, General Motors will end its regional operating structure, moving decisions closer to the customer. This eliminates the regional president positions and the regional strategy boards. Nick Reilly will be named executive vice president of GM International Operations (GMIO) which will be based in Shanghai. Along with this, GM will be removing layers of management - reducing the number of U.S. executives by 35 percent and overall U.S. salaried employment by 20 percent by the end of this year - a plan General Motors says will flatten the organization and speed decision making.

Much has been happening within General Motors in the last 40 days, and undoubtedly the company still has much to do. We'll keep watching the progress, as the New GM forges on as a lean, clean, carmaking machine!

By Brandy Schaffels, autoMedia.com Contributing Editor

Bankruptcy Court Approves Sale of GM Assets to New GM

admin — Tue, 07 Jul 2009 00:51:00 GMT

The General is racing through its bankruptcy proceedings, with victory lane in sight, where the troubled automaker will arrive leaner, meaner, and better positioned for long-term success. A key milestone was reached Sunday when Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved the sale of substantially all of General Motors Corporation's assets to the new GM.

Through the 363 asset sale, the new company will carry on with the “best” parts of the old corporation, officially known as Motors Liquidation Company. Among the key assets are just four brands: Buick, Cadillac, Chevrolet, and GMC. Separately, GM has said it will withdraw from the NUMMI cooperative factory venture with Toyota, where the Pontiac Vibe was built in California.

The new GM's common stock will be owned by:

U.S. Department of the Treasury: 60.8 percent
UAW Retiree Medical Benefits Trust: 17.5 percent
Canada and Ontario governments: 11.7 percent
The old GM: 10 percent

The judge's order included a four-day stay before closing of the sale can occur, allowing for appeals to be heard.

JD Power: 2009 Initial Quality Study – Detroit Rocks

admin — Wed, 24 Jun 2009 02:09:00 GMT

The Detroit 3 showed marked improvements in the J.D. Power and Associates 2009 Initial Quality Study released this week, with a 10-percent gain over 2008. This accomplishment for Chrysler, Ford, and General Motors is remarkable given the well-publicized challenges they have faced in the past year, and all the more impressive for being greater than the 8-percent rate of improvement by the industry overall.

Cadillac ranks in the top three, moving up from 10th last year, with Ford, Chevrolet, and Mercury all ranked above the industry average. However, Dodge, Chrysler, and Jeep remain well below the average.

The study finds that initial quality for newly launched and redesigned models in 2009 has improved compared with previous years. Historically, all-new models have typically launched with below-average levels of initial quality. However, several all-new models in 2009, including the Hyundai Genesis, Kia Borrego, Toyota Venza and Volkswagen CC, perform considerably better than their respective segment averages. Many redesigned models in 2009 also show notable improvement from the previous generation--particularly the Acura TL, Ford F-150, Honda Pilot, and Nissan Z.

The highest ranked for initial quality by car segment
Compact Car: Hyundai Elantra Sedan
Compact Sporty Car: Scion tC
Compact Premium Sporty Car: Nissan Z
Entry Premium Vehicle: Lexus IS
Midsize Premium Car: Lexus GS
Midsize Sporty Car: Ford Mustang
Large Premium Car: Lexus LS
Midsize Car: Nissan Altima
Large Car: Mercury Sable
Compact MAV: Chrysler PT Cruiser, Honda CR-V (tie)
Midsize MAV: Chevrolet TrailBlazer, Ford Edge, Toyota 4Runner (tie)
Large MAV: GMC Yukon
Midsize Premium: Lexus GX
Large Premium MAV: Lexus LX
Large Pickup: Ford F-150, Toyota Tundra (tie)
Midsize Pickup: Honda Ridgeline
Minivan: Toyota Sienna

2009 Nameplate IQS Ranking
Problems per 100 vehicles
84 Lexus
90 Porsche
91 Cadillac
95 Hyundai
99 Honda
101 Mercedes-Benz
101 Toyota
102 Ford
103 Chevrolet
103 Suzuki
106 Infiniti
106 Mercury
108 Industry Average
110 Nissan
111 Acura
112 BMW
112 Kia
112 Volkswagen
116 GMC
117 Buick
118 Audi
118 Pontiac
118 Scion
118 Volvo
120 Saturn
123 Mazda
129 Lincoln
130 Subaru
134 Dodge
134 Jaguar
135 Mitsubishi
136 Chrysler
136 Hummer
137 Jeep
138 Saab
138 Smart
150 Land Rover
165 Mini

The 2009 Initial Quality Study is based on responses from more than 80,900 purchasers and lessees of new 2009 model-year cars, trucks and multi-activity vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to facilitate identifying problems and drive product improvement. The study was fielded between February and May 2009.

GM Declares Bankruptcy, Promises A 'New GM'

Brandy Schaffels — Mon, 01 Jun 2009 20:52:00 GMT

So the wondering is over: General Motors has followed Chrysler into bankruptcy, and the automotive world continues to turn. After weeks of speculation, General Motors has outlined a plan for the company, promising to reinvent itself and "create a leaner, stronger "New GM" positioned for a profitable, self-sustaining and competitive future."

"Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom line results," said Fritz Henderson, GM president and CEO. "This new GM will be built from the strongest parts of our business, including our best brands and products."

This new future is made possible thanks to agreements made with the U.S. Treasury and the governments of Canada and Ontario, as well as additional partnerships made by GM Europe with the German government, as well.

According to Yahoo.com General Motors "will rely on $30 billion of additional financial assistance from the Treasury Department and $9.5 billion from Canada. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans."

While Wall Street Journal blogger P.J. O'Rourke describes the phrase "bankrupt General Motors," nearly as melodramatic as "Mom's nude photos," many others are able to look past the shock and towards a stronger future for the 'New GM.' In fact, trading was up on Wall Street today, with the Dow Jones industrial average rising by 2.4 percent (about 200 points) by midday, as Investors looked past GM's bankruptcy filing and focused on unexpectedly positive reports on the U.S. economy, including increased manufacturing, consumer spending and construction spending.

GM will use this opportunity to shed unprofitable divisions and focus instead on "four core brands in the U.S. -- Chevrolet, Cadillac, Buick and GMC -- with fewer nameplates and a more competitive level of marketing support per brand."

According to another article at the Wall Street Journal "the auto maker will split apart into two companies: a leaner 'New GM' and an 'Old GM,' which will include the pieces of the company that will be wound down. GM intends to accomplish the split through a Section 363 sale, which would transfer the "New GM" assets to an entity owned by the U.S. and Canadian governments, the United Auto Workers union, and the company's unsecured creditors."

The company will lower its costs significantly, in part by reducing salaried employment in North America to approximately 23,000 and hourly employment to about 40,000 by 2010. "More than 650,000 retirees and their family members who depend on the company for health insurance will experience cutbacks in their coverage, although their pension benefits are unaffected for now," says Money.CNN.com The site says, "Investors in $27 billion worth of GM bonds, including mutual funds and thousands of individual investors, will end up with new stock in a reorganized GM worth a fraction of their original investment."

With other cost-savings measures -- such as eliminating less-profitable brands and closing as many as 2000 of its domestic dealerships -- GM predicts its North American region should break even (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles (which is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007).

What does this mean for consumers? Henderson emphasized several times during his anouncement that, most importantly, the company remains open for business, right now. More significantly, the company promises "GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers' warranties are designed to reassure consumers." That is reassuring news if you already own a General Motors vehicle, though it means you might have travel farther to find a new dealership to service your car. On the other hand, if you're considering buying one, it means there will be many deals available as dealerships going out of business liquidate their inventory.

On the up side, GM also reaffirmed its commitment to improve the fuel efficiency of its vehicle fleet, promised to meet or exceed new federal fuel economy and emissions regulations, and assures consumers that it will push ahead with advanced propulsion technology. GM promises to launch the Chevrolet Volt extended range electric vehicle in 2010, and expects to have 14 hybrid models in production by 2012, and ensuring 65 percent of vehicles will be alternative-fuel capable by 2014.

In general, however, fickle public opinion and drastically fluctuating gas prices have made it difficult for any manufacturer to succeed in the current economic marketplace. It doesn't matter whether the company is Chrysler, Ford, General Motors, or any of the other import brands, knowing what vehicles the public is willing to buy, and being able to meet that need efficiently, almost requires a magic crystal ball.

"What we really need in this country is an energy policy tied to the price of a barrel of oil," says Doug Hamlin, autoMedia.com Founder and CEO. "Until we get our arms around the cost of fuel...consumers will not know what to buy...and automotive companies will not know what to build. In the last month alone the cost of fuel at the pump has shot up 30%."

Those fluctuations at the pump have caused mayhem for manufacturers who within the past year have struggled to quickly retool as the public's desire moved from larger cars and SUVs to smaller, more fuel-efficient vehicles, and then back again.

General Motors is set to emerge from its restructuring within 20 to 90 days. "The New GM will become a long-term global leader in the development of fuel-efficient and advanced-technology vehicles," said Henderson. "In doing so, the New GM will contribute to the development of advanced engineering and manufacturing capabilities in the United States, which are critical to the future of the U.S. economy."

More information about GM's chapter 11 filing is available at www.GM.com/restructuring. You can also watch a replay of this morning's conference in the GMTV feedroom. The same link will carry the on-demand replay of the press conference for the next 30 days.

Brandy Schaffels, Contributing Editor

creative commons Renaissance Center image by farlane at flickr