autoMedia Auto News Blog : Carpocalypse

Koenigsegg Hits Brakes On Deal to Buy Saab

admin — Wed, 25 Nov 2009 02:55:00 GMT

Koenigsegg Group has walked away from a proposed purchase of Saab from General Motors. The conglomerate lead by supercar-maker Koenigsegg had previously reached an agreement to purchase the Swedish division from GM, aided by a $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government. GM was to support the new venture with continued assistance in developing and producing cars, including the next-generation Saab 9-5 . Without Koenigsegg, Saab risks being shuttered, as was the fate for Saturn when Penkse Automotive decided not to complete its purchase. "We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson. "Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week." In the post-bankruptcy, GM has struggled with its divested brands. Pontiac is closed. Saturn is done come January...(read more)

No Sale! GM To Keep Opel

admin — Wed, 04 Nov 2009 03:15:00 GMT

Ending months of negotiation and speculation, General Motors has halted the sale of its European Opel division. GM has cited improving business and the importance of Opel/Vauxhall to its global operations as the reasons for the reversal. GM today posted its October sales figures, showing the first gain in 21 months. The news came hard on Magna International, which had been working with the German government, GM, and partners on acquiring Opel. Known as a major parts supplier, Magna is a large, diverse company that has grown to become a manufacturer-for-hire for several automakers, and this purchase would have been a natural expansion for its business. “GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term...(read more)

Fisker Buys GM Factory to Build Plug-In Hybrids

admin — Wed, 28 Oct 2009 01:42:00 GMT

As the auto industry emerges from crisis , new hope is given to a General Motors factory town with today’s announcement that Fisker Automotive will purchase the Wilmington Assembly plant in Delaware. Vice President Joe Biden and Delaware Governor Jack Markell were on hand for the news that Fisker signed a letter of purchase intent for $18 million. An additional $175 million will be spent to refurbish and retool the factory over the next three years. The funds come from a conditional loan of $528.7 million the Department of Energy awarded the company in September. The facility that previously built the Pontiac Solstice and Saturn Sky will be overhauled to assemble an “affordable” plug-in hybrid sedan dubbed Project NINA. Production is expected to begin in late 2012, and Project NINA is optimistically forecast to support 2,000 factory jobs and more than 3,000 vendor and supplier jobs by 2014, as production ramps up to full capacity of 75,000-100,000 vehicles per year. More than half of the sedans are expected to be exported. The car itself is estimated to cost about $39,900 after federal tax credits. Learn about the Fisker Karma , a luxurious plug-in hybrid that delivers an estimated...(read more)

2011 Chevrolet Caprice - Pontiac G8 Lives On, Sorta

admin — Tue, 06 Oct 2009 03:06:00 GMT

Automotive enthusiasts openly wept when it became clear that the Holden-sourced G8 sedan would be a casualty in the shuttering of the Pontiac brand. General Motors had teased with world that it would live on as a Chevrolet, then it shattered dreams by declaring the G8 as gone for good. Well, true believers, the G8 will live on as the Chevrolet Caprice.

Technically, the Caprice is actually a long-wheelbase model based on the Holden Statesman, stretching 118.5 inches hub to hub. The larger car enables enough rear legroom to accommodate a divider—an essential to protect officers from fiesty suspects. To be sold strictly as a police-spec vehicle, this will be the coolest Caprice in that moniker’s history.

The initial powertrain will be a 6.0-liter, 355-horsepower V-8 with 384 lbs.-ft. of torque paired to a six-speed automatic transmission. Chevrolet boasts 0-60 mph times under six seconds, ensuring The Man can outgun most roadway hooligans. This potent engine will be joined by a more fuel-efficient V-6 the following year.

The Caprice is given the full cop treatment, bumper to bumper, with all the electrical hookups and convenience features needed by a modern police force.

Yes, enthusiasts have a new police interceptor to fear… and covet.

For old time's sake, read our Pontiac G8 review, and also check out our test of the platform-sharing Chevrolet Camaro.

GM To Close Saturn In Four Months

admin — Tue, 06 Oct 2009 03:01:00 GMT

General Motors declared that it would swiftly wind down the Saturn brand and dealer network by the end of January 2010, in reponse to Penske Automotive Group walking away from a purchase arrangement. (Read: “Penske Ends Bid to Buy Saturn, GM to Discontinue Brand.”) Without a buyer, GM felt is had no choice but to quickly dismantle the “Different Kind of Company,” swiftly rendering it another footnote in automotive history alongside Pontiac.

Saturn will build no more vehicles. It currently has a standing inventory of 12,000 units.

Other GM franchises are authorized to service Saturn vehicles and honor warranties.

It may be a great time to get a deal on a Saturn, though their value will be negatively impacted by the wind down and long-term parts availability may create risks, particularly for unique models like the Sky or Astra that are not shared with other GM brands. Some current Saturn dealers may continue to offer service, should they remain in business.

If you visit your local dealership, wish them well and buy a souvenir.

Read our Astra, Aura, Sky, and Vue reviews.

Penske Ends Bid to Buy Saturn, GM to Discontinue Brand

admin — Thu, 01 Oct 2009 01:48:00 GMT

General Motors broke the news today that Penske Automotive Group would not purchase Saturn. The large dealer organization announced a proposed deal this past June to purchase the “different kind of car company.” Due to the withdrawal, GM will wind down Saturn production and the dealer network. (For background, see "GM Enters Agreement to Sell Saturn.")

Penske cites an inability to secure vehicles as the reason for withdrawing from the deal. It had negotiated the terms and conditions of an agreement with a yet-unnamed automaker, however, that agreement was rejected by that company's board of directors. The Detroit Free Press has reported that Renault-Nissan was the potential partner.

The announcement is a painful blow to the industry. Penske the man and organization is held in high regard, and this deal was considered the best chance for the future of the brand. The plan had been for General Motors to continue to supply vehicles through 2011, after which time Penske would source products from another automaker. This arrangement promised to shake-up the century-old business model and provide unique opportunities. For instances, a Penske-run Saturn could have potentially drawn vehicles from multiple automakers, thereby giving Saturn great market flexibility, while limiting the potential liabilities associated with manufacturing that nearly toppled GM and Chrysler.

GM President and CEO Fritz Henderson said, “Today’s disappointing news comes at a time when we’d hoped for a successful launch of the Saturn brand into a new chapter. We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead. I’d also like to thank every GM employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn.”

Saturn joins Pontiac as a major brand with significant history and notable current products headed to join Oldsmobile in forced retirement. That leaves Hummer and Saab as remnants of the Old GM waiting to see if their sales will go through, or if they too will be consigned to the annals of history.

Also read:
GM Signs Stock Deal to Sell Saab to Koenigsegg
GM Expects to Sell Hummer to Chinese Company

Cash for Clunkers Ends - Top 10 Trade ins, Purchases

admin — Tue, 25 Aug 2009 02:27:00 GMT

As of 8 p.m, EST tonight, the Car Allowance Rebate System (CARS) program ended. Considered a success by the auto industry, politicians, and more than 600,000 car buyers, the so-called cash for clunkers program burned through $3 billion in federal funding quicker than anyone predicted. Remember when the original $1 billion had a rundown deadline of November 1st? Hard to believe.

The final figures may still be a days away, but the Department of Transportation has shared tabulations made as of this morning, showing 635,186 dealer transactions submitted for credit, worth $2.65 billion. Over half (54%) of the top 10 new vehicles purchased under the program were manufactured in the United States.

On average, the new vehicles showed a 9.2 mpg, or 58 percent, fuel economy improvement. Needless to say, the program worked far better than anyone anticipated at moving consumers out of old, “dirty” trucks and SUVs and into new more fuel-efficient cars. The massive mileage improvement makes more sense when looking at the three most popular purchases, all very miserly models.

Top 10 New Vehicles Purchased*

Toyota Corolla
Honda Civic
Ford Focus
Toyota Camry
Hyundai Elantra
Toyota Prius
Nissan Versa
Ford Escape FWD
Honda Fit
Honda CR-V 4WD

*as of last Friday

Notably, the Toyota Corolla, Honda Civic, Ford Focus, Toyota Camry, Ford Escape FWD, and the Honda CR-V 4WD are all manufactured in the U.S.

Top 10 Trade-in Vehicles

Ford Explorer 4WD
Ford F-150 Pickup 2WD
Jeep Grand Cherokee 4WD
Jeep Cherokee 4WD
Ford Explorer 2WD
Dodge Caravan/Grand Caravan
Chevrolet Blazer 4WD
Ford F150 Pickup 4WD
Chevrolet C1500 Pickup 2WD
Ford Windstar

See our previous report on the Top 10 Trade-Ins and Purchases from the initial $1 billion cash for clunkers phase.

Learn even more from “Cashing in on Clunkers.”

autoMedia CARnival 8/21/09: This week in the auto blogs

Brandy Schaffels — Fri, 21 Aug 2009 12:36:00 GMT

It's the week ending August 21, 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 involves the end of the CARS rebates on Monday, as once again the Feds predict the money will run out over the weekend. People: That's nearly $3 billion dollars in rebates and admin costs car shoppers have burned through in barely a month!

U.S. Transportation Secretary Ray LaHood has announced the cash for clunkers program will come to a close on Monday, August 24th at 8 p.m. EDT. According to The Detroit News, the latest round of Car Allowance Rebate System (CARS) rebates has inspired 457,476 sales worth $1.91 billion in rebates. Apparently, dealers have been submitting paperwork for 20,000 vehicles, or about $100 million, a day in recent days, since the program was renewed. And this time, lawmakers have no interest in extending the program. Unfortunately, while sales have been brisk, reimbursements have not, so Chrysler Group and General Motors have announced they will advance funds to dealers who are still awaiting payment from the government for clunkers deals. DetNews reports the administration has paid just $145 million of the $1.9 billion in vouchers submitted -- or less than 10 percent of the funds requested. YIKES!

For more than a year now, says The Detroit Bureau, automotive manufacturers have, done nothing but cut, cut, cut. Thanks to the cash for clunkers sales melee, and inventories so low that some popular models are literally being sold right off the car haulers, automakers are cautiously starting to ramp up production again. Hope they get to lots before the money runs out!

Dealership inventory is quickly thinning many towns, even as factories ramp up overtime to deliver small, fuel-efficient vehicles in before the funds run out. There is a definite race against the clock for all involved to take full advantage of this unique program, and car shoppers shouldn't delay. You can learn about the so-called "cash for clunkers" from our guide, and research year-end clearance models in our new car buyer's guide and reviews here at autoMedia.com

It might appear to be little more than a toyish looking box on wheels, but Trabant has released teaser images of its upcoming all-electric Trabant nT set to debut at the Frankfurt Motor Show. AutoBlog Green has a fun photo gallery of the new electric Trabant nT (new Trabi) which promises a range of about 156 miles from its lithium-ion battery.

With the oldest car yet, cross-dressing maids, and a crash-and-roll finale, people have been talking about this high-performance exhibition for weeks! At last Jalopnik has posted the results of all 95 entries into the Buttonwillow Histrionics 24 Hours Of LeMons. Be sure to check out the gallery of entries - it'll almost be like having attended the event! And to think: Some of these cars could have been worth $up to $4500 as Clunker trade-ins...

She's the modern-day version of a photographic Mata Hari, and LeftLaneNews reports that ABC News spent a day Automotive Spy Photographer Brenda Priddy as she followed various camouflaged vehicles the sun-soaked southwest desert. To read ABC News' report and to watch their video, click here.

Would you spend $129 for a video game if it promised to make you a better driver? AskPatty.com reports on DriveSharp -- computer-based exercises produced by a provider of brain fitness programs -- which has been shown in independent studies to improve reaction time, cut crash risk by up to 50 percent, and increase control in most driving conditions.

Last week, General Motors gave journalists and consumers a sneak peek at several models expected to debut over the next two years. This week, in response to its poor reception, All Cars All The Time reports that Buick has decided to cancel the Saturn-Vue-based electric crossover, but promises the important plug-in hybrid technology will quickly be applied to another vehicle.

So, do you enjoy the broad variety of headlines and automotive websites here in our weekly carnival? If this still doesn't provide a broad enough selection of car content, then you should check out autos.alltop.com: They've got links to more than a hundred automotive websites, and list the five most recent headlines at each. So whether you're looking for the most popular auto items at Digg.com, auto & transportation press releases from PR Newswire, and anything in between, autos.alltop.com is the place to go when you've got too much time on your hands, and an insatiable appetite for car news.

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

Attn Shoppers: Cash for Clunkers Ends Monday

admin — Fri, 21 Aug 2009 02:53:00 GMT

All good things must end. The first phase for Car Allowance Rebate System (CARS) saw $1 billion in federal car-sales stimulus drained in less than two weeks. Congress quickly approved $2 billion to keep the momentum going, with Obama signing into law on August 9th. Now, U.S. Transportation Secretary Ray LaHood has announced the cash for clunkers program will come to a close on Monday, August 24th at 8 p.m. EDT.

“This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,” Secretary LaHood said. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.”

As of today, the CARS program has recorded more than 457,000 dealer transactions worth $1.9 billion in rebates.

John McEleney, chairman of the National Automobile Dealers Association (NADA), issued the following statement:

“Today, the Administration announced the submission deadline for all ‘cash for clunkers’ applications. Regardless of when the transaction is consummated, the application must be submitted before the deadline to be considered for funding.

“However, the National Highway Traffic Safety Administration (NHTSA) has advised NADA that any applications submitted prior to the deadline and then rejected may still be funded if the applications are subsequently corrected (even if the corrections are submitted after the deadline). This opportunity to cure the application is an essential element of the wind-down of the program.”

Dealership inventory is quick thinning many towns, even as factories ramp up overtime to deliver small, fuel-efficient vehicles in before the funds run out. There is a definite race against the clock for all involved to take full advantage of this unique program, and car shoppers shouldn’t delay.

Learn about the so-called “cash for clunkers” program from our guide. And research year-end clearance models in our new car buyer’s guide and reviews.

Use the free autoMedia dealer quote tool to have dealers compete for your business.

GM Axes Buick Crossover Plug-In Hybrid

admin — Thu, 20 Aug 2009 03:10:00 GMT

No one likes to have their children criticized, but General Motors took to heart feedback it received at a recent future product showcase held for employees, potential customers, dealers, media, analysts, and others. (Read: “25 in 24: GM Reveals New Models for its Core Brands.”)

The diverse panel were very interested in the future Chevrolet Aveo, Spark, and Cruze, and it even lauded the upcoming Cadillac line. However, a Buick crossover expected to go into production in 2011 was not well received. The vehicle was a badge-engineered next-generation Saturn Vue, notable for offering a plug-in hybrid variation. While this sounds like a slam-dunk, those who have seen it feel otherwise. And GM is responding to the feedback. Word has it that the two-mode hybrid powertrain will live on in another vehicle.

GM Vice Chairman Tom Stephens said:

“The Buick crossover we showed received consistent feedback from large parts of all the audiences that it didn’t fit the premium characteristics that customers have come to expect from Buick.”

You may recall that this was the Buick compact crossover I announced in Traverse City a few weeks ago, with a plug-in hybrid version to accompany it — this is not the smaller Buick crossover we showed that was playfully referred to as ‘the baby Enclave.’ That vehicle did very well and remains in the lineup.”

We were all struck by the consistency of the criticism of the compact crossover. And what we decided to do in response is a good example of the essence of the new General Motors… acting quickly, and boldly, and listening to feedback from customers, employees, dealers, media and just about anyone else with an opinion.”

There it is, the New GM making bold moves and working to ensure fewer weak links in the product line. Sounds like the Pontiac Aztek may not happen again. Phew.

GM Signs Stock Deal to Sell Saab to Koenigsegg

admin — Thu, 20 Aug 2009 02:56:00 GMT

Almost there. General Motors continues its reinvention with a 100-percent stock purchase agreement for the sale of Saab to Koenigsegg Group, a Swedish conglomerate known for the affiliation with the famed Koenigsegg supercars. The deal is expected to conclude by the end of the year, and Saab Automobile plans to exit legal reorganization shortly. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. (Read: "GM to Sell Saab to Supercar-maker Koenigsegg.")

As part of the proposed transaction, GM and Saab will continue to share technology and services for a defined period.

"We have now concluded another important step in realizing the great potential of Saab,” said Christian von Koenigsegg, CEO of Koenigsegg Group. “Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable. We will revive Saab’s Swedish heritage of ecological sensitivity, safety, design innovation, and ‘fun to drive’ experience!"

Yeah, adding several hundred horsepower to the 9-3 would be a great start there… It will be fascinating to see what emerges from this new ownership.

Research current Saab models in the new car buyer’s guide.

Cash for Clunkers: Obama Formalizes $2 Billion Extension

admin — Mon, 10 Aug 2009 01:24:00 GMT

President Obama has signed into law H.R. 3435, a bill that extends the Car Allowance Rebate System (CARS) with $2 billion more in funding. This bill doubles the original $1 billion in funding that sparked a new car sales wave. Late Friday, the National Highway Traffic Safety Administration (NHTSA) announced that 245,384 CARS credits had been requested, totaling $1.03 billion. The extension came just in time to continue the offer through the weekend. (See: “Cash for Clunkers: Senate Approves $2 Billion Extension.”)

Obama said, “Now, more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost. ‘Cash for clunkers’ has been a proven success: the initial transactions are generating a more than 50 percent increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone; and they are getting the oldest, dirtiest and most air-polluting trucks and SUVs off the road for good. Businesses across the country – from small auto dealerships and suppliers to large auto manufacturers – are putting people back to work as a result of this program.”

From the initial sales rush, dealer lots have seen the inventory of their most fuel-efficent cars sold down. For those late-comers to the program, there will be fewer choices of year-end models. (Read: "Cash for Clunkers – Top 10 Trade Ins, Purchases.") It is important for shoppers to not only research their selections, but work to get their first-choice model, rather than compromise. After all, it somewhat defeats the purpose if you don’t buy the four-cylinder you wanted and go with the V-6, instead. Remember, dealers can search regional inventory and have a car transported to their shop. Consider using either a car-locator feature on the manufacturer site or cast a wide net in seeking dealer quotes online to ensure you find the car you want.

Still can’t find what you want? In some cases, the 2010 models are coming later this month, such as several Toyota models.

Research new vehicles in the 2009 new car buyer’s guide. Use the free autoMedia dealer quote tool to have dealers compete for your business.

Cash for Clunkers – Top 10 Trade Ins, Purchases

admin — Wed, 05 Aug 2009 22:14:00 GMT

The CAR Allowance Rebate System (CARS), popularly known as “cash for clunkers,” is widely regarded as a success, and now we have further proof. In “Cars for Clunkers Works, Time for a Sequel?” we chronicled the July sales that were buoyed from the program. We now have more detailed information on what vehicles were purchased, with refined figures by brand.

Thus far, 83% of trade-ins under the program are trucks, and 59% of new vehicle purchases are cars. Nearly half of new vehicles purchased under the program were from the Big 3. Detroit’s share in this program (45%) is equivalent to their overall share in the auto market (about 45%) – a couple points less than indicated in published reports yesterday.

Looking at the product mix, the trade ins are all traditional, high-volume models from domestic brands. The popular purchases are from several brands, skewing toward the imports. On average, the new models boast 63% better fuel economy than the models turned in.

A whopping 184,304 vehicles have been exchanged through this program, with car buyers benefiting from $775.2 million in credits. The program is still in effect, with some money remaining. The Senate is expected to pass a $2 billion extension to the program, and automakers and their suppliers are ramping up in anticipating.

So what are people buying? Below are the cash for clunker Top 10s.

Top 10 Trade-in Vehicles

Ford Explorer 4WD
Ford F150 Pickup 2WD
Jeep Grand Cherokee 4WD
Jeep Cherokee 4WD
Dodge Caravan/Grand Caravan
Ford Explorer 2WD
Chevrolet Blazer 4WD
Ford F150 Pickup 4WD
Chevrolet C1500 Pickup 2WD
Ford Windstar

Top 10 New Vehicles Purchased

Toyota Corolla
Ford Focus
Honda Civic
Toyota Prius
Toyota Camry
Hyundai Elantra
Ford Escape FWD
Dodge Caliber
Honda Fit
Chevrolet Cobalt

New Vehicles Manufacturers

18.7% - General Motors
17.9% - Toyota
16.0% - Ford
11.6% - Honda
10.6% - Chrysler
7.0% - Nissan
6.6% - Hyundai
3.8% - Kia
2.3% - Mazda
2.2% - Subaru
1.9% - Volkswagen
0.4% - Suzuki
0.3% - Mini
0.3% - Mitsubishi
0.2% - Smart
0.1% - Volvo
0.1% - All others

Research new vehicles in the 2009 new car buyer’s guide. Learn even more from “Cashing in on Clunkers.”

Chrysler Saves the Dodge Viper from Sale, Extinction

admin — Mon, 13 Jul 2009 01:29:00 GMT

As Chrysler was looking to divest itself of assets, the Dodge Viper was on the chopping block. It was shopped around, and reportedly there was interest from specialty car builders, though no can’t-refuse offer came. With a need to focus on fuel-efficient vehicles, it seemed the Viper chapter would be closed forever by December 2009.

However, Friday Chrysler announced the legendary sports car will live on, with production continuing at the Chrysler Group Conner Avenue Assembly Plant — the exclusive home of Dodge Viper production since 1995. To date, more than 25,000 Dodge Vipers have been built.

For 2009, the Dodge Viper SRT10 offers outrageous power, with an 8.4-liter, 600-horsepower V-10 engine contributing to blistering acceleration. Chrysler claims 0-60 mph in less than four seconds and 0-100-0 mph in the low 12-second range. It won’t be long before that powerplant and resulting performance seems truly exotic.

For those enthusiasts who have always considered the Dodge Viper to be out of reach, our used car marketplace shows more than 750 for sale right now, and many priced like a new Mustang. See Dodge Vipers for sale.

Read our 2003, 2004, 2006, and 2008 Dodge Viper reviews.

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