autoMedia Auto News Blog : GMC

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

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

Man in the Rearview Mirror: Michael Jackson’s Cars

admin — Mon, 13 Jul 2009 02:24:00 GMT

The world lost a legendary entertainer with Michael Jackson’s passing. He leaves behind a music catalog that will be familiar for decades, a home that was more like a theme park, three sad children, a mountain of bills, and a fleet of cars. While his last ride was in a Ford E-Series ambulance, he rolled in style on his better days, with gilded limos and an opulent tour bus.

FoxNews.com discovered in papers from his 2000 divorce from Debbie Rowe that Jackson at the time owned 75 cars, including Roll Royces and a fire truck. Clearly, selling 61 million albums in the United States alone creates a deep car fund.

His eclectic car collection was to be auctioned off with the Neverland Ranch to help pay his massive debt, thought the sale never happened. AutoTrader UK has a slide show with several of his cars, including gold-trimmed limos, two-level tour bus, police motorcycle, conversion van, and primer-gray GMC SUV.

Perhaps the strangest thing with this collection is that it isn’t more exciting.

Collectors take note: It is safe to assume that Jackson’s vehicles will be offered for sale eventually.

If you had Jackson’s earnings, what would your car collection look like?

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

autoMedia CARnival July 10, 2009: What is happening this week in the auto blogs?

Brandy Schaffels — Fri, 10 Jul 2009 13:55:00 GMT

It's the week ending July 10, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. The biggest news of the week is that GM President and CEO Fritz Henderson led a "state of the company" address this morning, describing the three top priorities for the new General Motors as it emerges from bankruptcy....(read more)

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.

Pricing: 2010 GMC Terrain

admin — Fri, 26 Jun 2009 02:11:00 GMT

Introduced at the last New York Auto Show, the 2010 GMC Terrain crossover vehicle will join the redesigned Chevrolet Equinox this September, starting at of $24,995 – including destination charges. (The Equinox base price is $23,185. Learn more about the Equinox.) The all-wheel-drive Terrain begins at $26,745.

The base SLE1 model uses a new, direct-injection 2.4-liter four-cylinder engine that produced 182 horsepower. The DOHC engine is teamed with a six-speed automatic transmission, together eking out 22 mpg city, 32 mpg highway when using the “eco” mode. An active noise-cancellation system helps quiet the cabin from the underhood bustle.

Standard features include a number of high-tech notables, such as a six-speaker AM/FM/CD audio system with USB connectivity, XM satellite radio service, and an integrated rear-view camera system. Safety gear includes six airbags, StabiliTrak vehicle stability control, and OnStar.

For $29,995, the top-of-the-line SLT2 trim level outfits the Terrain with luxury amenities, such as leather seating, a premium sound system, a power liftgate, sunroof and a special chrome appearance package. Additional options are available, such as an integrated navigation system and a rear-seat DVD infotainment system

A 3.0-liter DOHC V-6 is available with 264 horsepower. However, fuel economy is a less appealing 17 mpg city, 25 mpg highway.

An interesting overall package, the Terrain will give the GMC line-up a competitive, lower-priced entry point.

GM to Halt Medium-Duty Truck Production

admin — Tue, 09 Jun 2009 01:00:00 GMT

In a Twitter-scale press release today, General Motors announced the next casualty in its ongoing right-sizing effort since selling Hummer and Saturn:

After four years of working with multiple potential buyers, General Motors has decided to wind-down its medium-duty truck operations. Production of the Chevy Kodiak and GMC Topkick medium duty trucks will cease by July 31, 2009.

The shame is, GM had a tentative deal with Navistar International Corp. in 2007 that wasn’t finalized. CEO Fritz Henderson told media today that the medium-duty truck business hadn’t been profitable for years, making it a straightforward decision for a cash-strapped GM to purge. The employees will reportedly be reassign to other facilities or offered an attrition program, according to Automotive News.

Last year, GM sold about 20,000 medium-duty trucks, down from 30,000 the year prior. Ultimately, the General may see many prospective customers turn to the heavy-duty pickup trucks, or even their full-sized hybrid trucks, as the commercial market looks to right-size its fleet, as well.

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

GM to Declare Bankruptcy, Make History

admin — Mon, 01 Jun 2009 02:01:00 GMT

Automotive history will be made Monday, June 1st. All signs point to General Motors announcing that they are filing Chapter 11 bankruptcy, with the first signal rumored to come at the morning bell on Wall St., followed by a speech by President Obama at about noon, trailed immediately by a GM press conference.

It has been a long, hard road for General Motors this past year, as the entire automotive industry has seen car sales rapidly drop from more than 16 million units a year to just 10 million, with buyers shifting from large, profitable models to small and midsized vehicles with slim profit margins. All automakers have struggled to keep pace with the myriad changes and challenges that have faced their businesses, and most have suffered significantly from the economic recession.

In its effort to avoid following Chrysler into Chapter 11, GM has made significant efforts to right-size its business. Notably, it has pursued reducing its division portfolio by selling or otherwise disposing of Hummer, Pontiac, Saab, and Saturn--leaving Buick, Cadillac, Chevrolet, and GMC for the U.S. market. (It has recently sold its Germany Opel division to supplier Magna.) It will reduce its dealer body by about 1,100 stores by choosing not to renew franchise agreements. Another 450 dealers are expected to be lost from the GM family when those aforementioned brands leave the fold. The United Autoworkers have made continued concessions to reduce labor costs, and bondholders have reluctantly agreed to a government-sweetened exchange deal.

So what’s next?
GM positioned itself to potentially linger on, struggling under the weight of its increased debt, restructuring itself continuously in a painful survival game. Or, to be positioned to (relatively) swiftly move through a government-aided Chapter 11 restructuring that can slough off mountains of debt and create a leaner, more self-sufficient company with a bright future.

Right now, it looks like the latter scenario is most likely. Follow along the AutoMedia blog for highlights of this unfolding drama and advice on how it impacts you, the car owner and buyer.

NY: 2010 GMC Terrain Breaks Ground

admin — Mon, 06 Apr 2009 01:17:00 GMT

At the 2009 New York International Auto Show this week, the all-new 2010 GMC Terrain makes its world debut. The five-passenger crossover vehicle is the butch sibling to the 2010 Chevrolet Equinox, combing refined road manners with a more rugged appearance.

The Terrain will give the GMC brand an affordable, suburban friendly vehicle—just what it needs right now. The base engine is a 2.4-liter four-cylinder with 182 horsepower and a promised 30 mpg highway rating. A 3.0-liter V-6 offers a significant step up with 264 horsepower. Both engines are teamed with a six-speed automatic transmission and can be had in front- or all-wheel drive configurations.

The Terrain marks GM’s first application of Active Noise Cancellation (ANC) technology is used on 2.4L-equipped models. ANC uses microphones to detect booming sounds inside the vehicle and sends counteracting sound waves through the audio system’s speakers—cool technology trickled down from premium luxury automobiles.

There are a few more high-tech features standard and available, including Bluetooth connectivity, power rear liftgate, remote start, navigation system, and two-screen entertainment system with a 40-gig hard drive.

Standard safety equipment includes six air bags, electronic stability control, a rear vision camera, and OnStar with a free one-year subscription.

The 2010 Terrain goes on sale in late summer. With the 2010 Equinox prices starting at $23,185 with destination charges, expect the GMC to base near $25,000.

See our complete 2009 New York auto show coverage.

GM’s Wagoner Out; Obama Readies Support

admin — Mon, 30 Mar 2009 00:38:00 GMT

America, and most especially Chrysler and General Motors, anxiously await an Obama Administration statement on the latest auto industry bailout on Monday. However, one early surprise has been released, as reported by the Detroit Free Press and Automotive News: GM Chairman and Chief Executive Officer Rick Wagoner has been asked to end his 31-year career with General Motors.

Reports suggest that his immediate resignation was a condition for continued federal assistance. In making this move, GM signals they are willing to do what is necessary to survive, and the White House shows the reluctant taxpaying populace that it will force dramatic changes to the industry.

As of this posting, neither GM nor the White House has issued a formal statement.

Clearly, this will be a pivotal week for the domestic auto industry. Beyond these developing stories, the March sales figures will be released. Some analysts have predicted that Chrysler and GM sales will be down more than 40 percent for the month. Fasten your seat belt, it is going to be a bumpy ride.

Read: “Fuel Economy Standards Increase for 2011” and “Auto Suppliers to Receive $5 Billion Aid Package.”

General Motors “Bankruptcy” Scenario on Table

admin — Fri, 06 Mar 2009 02:53:00 GMT

The dreaded “B word” has been uttered by General Motors in a routine annual report filed with the U.S. Securities and Exchange Commission (SEC). As further proof the challenged automotive giant hasn’t been crying wolf, it admits “There is substantial doubt about our ability to continue as a going concern.” Translation: GM auditor doubt the corporations ability to survive outside bankruptcy, without a dramatic change in market conditions or further aid.

GM released a statement:
"That opinion is dependent on a number of factors including our ability to execute our viability plan, compliance with our U.S. Treasury loans, volume recovery of the industry, and access to additional funding from the U.S. and certain other governments. Once global automotive sales recover and GM’s restructuring actions generate the anticipated savings and benefits, the company is expected to again be able to fund its own operating requirements."

The auditor’s opinion has no impact on the aggressive actions we are taking to restructure our business for long-term viability."

GM’s ability to continue depends on its ability to progress toward restructuring its business and convince the federal automotive task force of its long-term viability, in order to secure continued federal assistance. Failure to do so, may lead to some form of bankruptcy proceedings. While the “B word” sounds frightening – and to be certain, the results can be devastating to employees and related businesses – but a chapter filing could enable more dramatic restructuring than feasible under current operating restrictions.

Bankruptcy or not, GM has a rough road ahead. Though, President Barack Obama seems determined to find a way to save the automotive industry.

In a briefing Thursday, Press Secretary Robert Gibbs said, “The rate at which cars are being sold right now is -- it's hard to sustain… The best way to get people back to buying cars is to put them to work, see their wages go up, put some money back in their pockets.”

Members of the automotive task force are expected to meet with the domestic automakers next week, to hear the challenges in person and also learn about future technologies underdevelopment. As the February auto sales figures show, the depressed economy is causing problems for all automakers, though the drama in Detroit is certainly center stage.