autoMedia Auto News Blog : Hummer

autoMedia CARnival 10-09-09: This week in auto blogs

Brandy Schaffels — Fri, 09 Oct 2009 20:15:00 GMT

It's the week ending October 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....(read more)

Official: GM Contracted to Sell Hummer to Tengzhong

Brandy Schaffels — Fri, 09 Oct 2009 17:39:00 GMT

This deal is looking like it will actually happen thanks to a definitive agreement signed today by General Motors and Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong), that will allow Tengzhong to acquire GM's Hummer brand....(read more)

autoMedia CARnival 10-2-09: This week in the auto blogs

Brandy Schaffels — Fri, 02 Oct 2009 16:38:00 GMT

It's the week ending October 2, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Toyota is recalling 3.8 million vehicles to check the floor mats and Cash for Clunkers makes it back into the headlines, but we've also got plenty of unusual news sure to entertain the automotive fan.

Cash for Clunkers might be over in the United States, but it lives on in France, Italy, and the United Kingdom. AutoBlogGreen says European buyers who trade in their cars to purchase something else offering reduced CO2 or powered by compressed natural gas or electricity receive rebates ranging from 1,500 to 3,500 Euros. That's about 2200 to 5000 US dollars!

The first complete month of sales after the Cash for Clunkers has been tallied up and the predicted result - that auto sales would drop once the government stopped giving free money in exchange for clunkers - didn't exactly happen. In fact, according to John Neff at AutoBlog, nine brands posted positive sales in September versus the same period in 2008 with another three posting only single-digit losses.

Penske backed out of its agreement to buy Saturn, and as a result General Motors has announced it will kill the brand. As GM struggles to sell off languishing vehicle divisions, the latest rumor from LeftLaneNews says Chinese automaker Beijing Automotive Industry Corporation is pursuing the tooling and design rights to produce the outgoing Saab 9-5 in one of its Chinese factories. Meanwhile, there's still no word on the status of the sale of Hummer to China's Tengzhong Heavy Industrial Machinery Company.

Auto show season is upon us! Last month was Frankfurt, later this month will be Tokyo, and in early December, Los Angeles will launch the domestic events. It seems clear that alternative fuel vehicles will be hot concepts this year, and HybridCars has a preview of two plug-in hybrids promised to be on display by Suzuki and Mitsubishi, though I can't wait to see all the far-out and freakish displays that make Tokyo so iconic.

Next week is the inaugural "Heads Up Driving Week," in which the AAA Foundation for Traffic Safety is urging us all to drive distraction-free for the week. What bad habits will you give up? Coincidentally, this week, According to The Detroit Bureau, President Obama signed an Executive Order directing federal employees not to engage in text messaging or using cell phones while driving government-owned vehicles or while driving privately owned vehicles when they are on official government business. Todd Lassa has more on the topic of distracted driving in his blog here at Motor Trend.

In a disappointing twist of fate, I couldn't find anything that made me ROFL at Jalopnik this week, so in order to present some silly entertainment, I'm giving you a link to a video of some "Candid Camera" style automotive pranks. Have a great weekend!

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 June 5, 2009: What's happening this week in the auto blogs? June 5, 2009

Brandy Schaffels — Fri, 05 Jun 2009 12:00:00 GMT

It's Friday, June 5, 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 auto news of the week is that GM officially declared bankruptcy on Monday, while Chrysler emerged from its own on Tuesday. Punctuating those announcements is an offer by a Chinese construction-equipment manufacturer to purchase Hummer. It just makes one's head spin! What have you got planned for this weekend? Keep an eye out for Brooklyn Hilary and her green Ford Fiesta as she road trips across the country. Details for all this can be found below!

First off, what are you driving today? Apparently, according to the folks over at Motor Trend, Mini has asked its owners to give their car the day off on Friday, June 5, to show support of World Environment Day. The website says "World Environment Day is an event organized by the United Nations that first began in 1972. It's always on June 5 and, like Earth Day, seeks to increase worldwide awareness of the environment." Mini suggests you "organize a walk pool," "take the pedal off the metal," and "burn calories, instead of fuel."

E3 is visiting the halls of the Los Angeles Convention Center, and the gamers at AutoBlog have shared a sneak peak at the upcoming version of Forza Motorsport 3. Gamers know that the physics engines, track reproductions, and the vehicle renderings have become so realistic that, between Forza and Gran Turismo, there is no longer a vehicle or road course that can't be experienced in full glory with a racecar driver's glee. Like this? We've got overviews of several other driving games, here at autoMedia.com.

"There are no second chances," stressed General Motors CEO Fritz Henderson, as he wrapped up a media briefing called to detail the bankruptcy of the 101-year-old automaker. Despite the announcemenet, Paul Eisenstein at The Detroit Bureau believes there are plenty of things right about General Motors that will support its eventual revival.

Chrysler might be emerging from its own bankruptcy, but dealership owners across the country are racing against the calendar to get their inventories sold before their contracts expire. In what has become the poster child for the dire situations faced by Chrysler dealerships nationwide, The Car Connection details the saga of this Pohanka showroom slashing prices to unload its last 40 cars. The dealership has until June 9 to dispense with all its cars; after that date, it can't legally sell them as its franchise agreement has been ended by the bankruptcy courts, and Chrysler won't be compelled to take the cars and trucks back.

LeftLaneNews reports the Hummer brand will find a new home with China's Tengzhong Heavy Industrial Machinery Company. While that change of ownership will no doubt alter several aspects of the off-road marque, Hummer head Jim Taylor says the brand will keep true to its original DNA. And, if you can somehow manage to roll it, look for the "made in China" sticker underneath!

Autobloggreen has an ongoing series of features called "Greenlings" meant to help educate the green motoring neophyte. This week's article details how gasoline turbocharged direct injected engines operate, and explains why they are expected to become one of the more popular choices coming over the next several years.

Jalopnik knows that if you drive anywhere, you must encounter traffic signals. However, while our boring red/yellow/green signals can be annoying, we apparently have nothing on these 15 crazy traffic signals. Click to view the detail shots in the gallery, and then you'll be thankful for our boring, annoying traditional red/yellow/green traffic lights.

Are you following the Fiesta Movement? AutomotiveTraveler.com is featuring Fiesta Agent #41 Brooklyn Hilary and her adventures in her Euro-spec Ford Fiesta. Can you believe she's put 10,000 miles on her car in just six weeks? Can't think of a better way to learn to drive than to take this fun little car on a cross-country tour. Or Two. Stay tuned, it appears Hilary has lots of driving fun in store for her Fiesta.

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

GM Expects to Sell Hummer to Chinese Company

admin — Wed, 03 Jun 2009 01:49:00 GMT

The day after General Motors filed for Chapter 11 bankruptcy protection, the company announced it is in advanced talks with Chinese construction-equipment manufacturer Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd for rights to the Hummer brand. The privately owned Tengzhong seeks to expand into off-road vehicles in the United States, China, and abroad, promising to expand the brand’s reach.

While talks continue, GM has said that H3 and H3T production in Shreveport, Louisiana, would continue through at least 2010. Going forward, it is expected that GM would play a pivotal role as a supplier and possibly producer for Tengzhong.

Tengzhong will face immediate challenges to preparing to face increasingly stringent fuel-economy standards in the United States. Alternative and advanced powertrains are expected, as well as focus on weight reduction and introducing a smaller model.

In previous talks with AutoMedia, Hummer insiders have confided that the next-generation H2 and the long-awaited, Jeep Wrangler-fighter, the H4 are well along in their development. Should Tengzhong continue with these projects, the Hummer line could be transformed in relatively short order.

Hummer launched based on a reputation as a military-tough brand, with the AM General H1/HMMV having long served the armed forces. With AM General losing the large-scale American military contract (they still build for other militaries) and Hummer being owned by a Chinese company, it remains to be seen if the brand will carry the same cachet it once did.

For enthusiasts who have held off on buying a Hummer, the certainty that the brand and dealer body will continue in the U.S. should bolster consumer confidence. Rest assured, there are amazing deals on Hummers now, especially used Hummers. (Search our used-car marketplace.)

Read our Hummer H2 and H3 reviews.

GM To Cut Off Over 1,100 Dealers

admin — Mon, 18 May 2009 02:52:00 GMT

Just days after Chrysler announced that it would trim its dealer body by 789 dealers by June, General Motors has notified 1,124 dealers that it would not extend their franchise agreements past October 2010. Chrysler was able to make swift cuts due to the flexibility afforded by the Chapter 11 bankruptcy. On the other hand, GM is proactively making business adjustments ahead of a potential bankruptcy filing later this month.

General Motors targeted the weakest dealers for these passive cuts, those that were underperforming from market share and profit standpoints, as well as customer satisfaction benchmarks. The advanced notice will enable those dealers to wind down the businesses and sell off their inventories, currently estimated to at 65,000 units. And notably, GM will not need to buy the vehicles back.

In addition to these dealers, GM’s reach is expected to diminish by 470 stores when the Hummer, Saab, and Saturn brands are sold or otherwise disposed of. Plus, 27 standalone dealerships will be abandoned when the Pontiac brand is phased out next year, leaving about 2,600 dealers intact that hand multi-brand stores.

In total, many of the dealerships losing their GM franchises sell products from other companies and may continue without interruption. GM has not released a list of affected dealers, as Chrysler did under its bankruptcy rules, so the details of who and where are not yet clear.

Mark LaNeve, GM Vice President of Sales Service and Marketing, said in a released statement, “… it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient.”

In a conference call with the media, conducted by LaNeve via OnStar from a Cadillac Escalade, he expressed compassion for the impacted dealerships, their staffs and communities, though remained committed to this move being in the long-term interest of General Motors.

“Long term, GM should have fewer, healthier dealers, maintaining GM’s current high customer satisfaction ratings, with more sales per outlet.”

Car buyers take note: Despite that GM is idling plants to reduce inventory this summer, the franchise reduction news may mean dealers will be hungry as ever to negotiate a great deal. Especially with Memorial Day sales just around the corner.

CEO Says GM Bankruptcy is Probable

admin — Tue, 12 May 2009 01:09:00 GMT

As the days count till the end of the month when General Motors must present its final viability plan to the Autos Task Force, GM CEO Fritz Henderson described bankruptcy as “probable” in a restructuring update today with reporters. Henderson said there is still a chance that GM can accomplish its mission outside of bankruptcy, but he seemed to be paving the way for what may be unavoidable. (Read: "Chrysler Files for Bankruptcy, Merges with Fiat.")

While the “B” word carries with it a rightful sense of dread, it brings with it protections and rights that could enable GM to more rapidly reinvent itself than would otherwise be possible. In interviewing a series of experts, the Detroit News declared that Chapter 11 filing seems all but inevitable. Still, the company is moving to swiftly reduce its costs.

Later this week, GM will announce details of its plan to cut 2,700 dealerships by 2010, according to Automotive News.

The National Automobile Dealers Association (NADA) released a related statement:

“By closing 2,641 dealerships in 18 months instead of five years, GM could lose an estimated $35 billion in sales revenue. Another 137,330 dealership employees will lose their jobs, and state and local governments will lose an estimated $1.7 billion in sales tax revenue that would have been used for economic development in communities around the country.”

Dealers were dealt a serious blow with the recent announcement that the Pontiac division would be retired, impacting 2,627 dealerships. Of those, just 27 are stand-alone stores.

Henderson also said that GM has received three offers to buy Hummer, and it is proceeding with two bidders.

Opel has several serious lookers, including Fiat, giving GM options with its German division.

On Saturn, GM is open to a variety of arrangements, including providing cars to a new owner and selling part of its manufacturing.

GM hopes to resolve Saab’s situation in the next couple of months.

Clearly, all these decisions have major, long-range repercussions. And we’ll continue to follow this serial drama to keep car shoppers and enthusiasts alike informed.

Carpocalypse Now: Cars Sales Plummet, Again

admin — Wed, 04 Mar 2009 03:16:00 GMT

The tragic trend continues, car sales continue to slide from bad to worse as the nation reels amidst the troubled economy. As automakers, suppliers, and dealers struggle to survive and restructure to face the changing challenges, the plummeting sales figures do mean that tremendous deals can be found for those in the market for a new or even a used car.

Few companies were spared deep double-digit declines in Februrary when comparing the month year to year. In the 40-50 percent range, Acura, Ford, Lincoln, Mercury, Pontiac, and even Toyota saw such steep declines. The 50-60 percent range includes Buick, Cadillac, Chevrolet, GMC, Mitsubishi, Saturn, and Volvo. The scariest thing, there are brands in the 60-70 percent range, such as Chrysler, Hummer, Saab, and Suzuki.

At the corporate level, the numbers still look dreadful. BMW is down 32.7 percent, proving that even the well-heeled are sheepish about new car buying. Chrysler is down 44 percent—notably less than Ford Motor Company at 48.4 percent and General Motors at 52.9 percent. Even Honda saw a 38 percent decrease, made higher by the 41.5 percent drop in Acura sales. Nissan is off by 37 percent, and Toyota Motor Company is down 39.8 percent.

The big winner? Subaru, with a 1.4 percent uptick, no doubt fueled by winter months adding appeal to its AWD line up. Victory can be also claimed for Kia with a humble, though celebration worthy, 0.4 percent increase.

As the automakers grapple with these latest figures, expect enticing deals to continue and more creative marketing to appear. Hyundai has done this with the expansion of its successful Assurance program. Chrysler has just announced a free Hemi V8 upgrade for Ram buyers. And the new Ford Fusion and Mercury Milan hybrids are eligible for a $3,400 tax credit till the end of March.

If you’re in the market, do your research and you’ll find great deals on just about every vehicle.

Research in the new car buyer’s guide. Or, scan our more than 3 million used car listings to find the best car for you.

Apocalypse Now: GM Shuts Down 20 Plants Q1

admin — Sat, 13 Dec 2008 02:33:00 GMT

As the Senate refuses to pass the emergency bailout aid for the Detroit 3, General Motors has announced it will cut production at 20 North American plant. The temporary closings will reduce output in Q1 2009 by an estimated 250,000 vehicles. In doing so, GM is idling staff, powertrain operations, and the extended supply chain, thereby causing further hardships as all look on in anticipation of federal assistance.

In a prepared statement, GM said:
“The speed and severity of the U.S. auto market's decline has been unprecedented in recent weeks as consumers reel from the collapse of the financial markets and the resulting lack of credit for vehicle financing.”

The following U.S., Canada, and Mexico operations impacted by today's announcement include:

United States

Ft. Wayne (Ind.) - Chevy Silverado, GMC Sierra Light Duty Regular and Extended Cab
Flint Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Regular and Crew Cab & Medium Duty
Wentzville (Mo.) - Chevy Express, GMC Savanna
Lansing Delta Township (Mich.) - Buick Enclave, GMC Acadia, Saturn Outlook
Pontiac Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Extended Cab
Spring Hill (Tenn.) - Chevy Traverse
Fairfax Assembly (Kan.) - Chevrolet Malibu/Hybrid, Saturn Aura/Hybrid
Arlington Assembly (Texas) - Full Size SUVs: Chevy Suburban, Tahoe & Tahoe Hybrid, GMC Yukon, Yukon XL & Yukon Hybrid, Cadillac Escalade/Escalade ESV & Escalade Hybrid
Lansing Grand River (Mich.) - Cadillac STS & CTS
Orion (Mich.) - Chevy Malibu, Pontiac G6
Detroit-Hamtramck (Mich.) - Buick Lucerne, Cadillac DTS
Shreveport (La.) - Chevy Colorado, GMC Canyon, Hummer H3 & H3T
Bowling Green (Ky.) - Chevy Corvette, Cadillac XLR
Wilmington (Del.) - Pontiac Solstice, Saturn Sky, Opel GT

Canada

Oshawa Consolidated - Chevy Impala
Oshawa Truck - Chevy Silverado, GMC Sierra Light Duty Extended and Crew Cab
CAMI - Chevy Equinox, Pontiac Torrent

Mexico

Silao - Chevy Silverado, GMC Sierra Light Duty Crew Cab, Chevy Avalanche, Cadillac Escalade EXT
Ramos 2 - Chevy HHR, Saturn VUE, Chevy Captiva
San Luis Potosi - Chevy Aveo, Pontiac G3

Read the bailout strategies from Chrysler, Ford, and General Motors.

Want to know just how serious things are for the auto industry? Read “U.S. Car Sales Tank in November.” Learn more about what you can do to show your support for the Big 3 at theengineofdemocracy.com, an independent site by an automotive industry coalition.

For further background:

Bailout Watch: Congress Shows Support, Iacocca Speaks Out

Big 3 Face Congress, Emerge with Hope

Congress Calls on U.S. Auto Executives to Deliver Restructuring Plan

Threat of Big 3 Bankruptcy Risks Sales

GM Issues Apologies and Promises, $15 Billion to Follow

admin — Tue, 09 Dec 2008 02:55:00 GMT

Monday, General Motors took its message direct the people by way of an industry weekly newspaper, Automotive News. In a text-dense one-page ad (pdf), GM fell on its sword delivering a message that was equal parts apology and promise. Curiously, this heart-felt letter was delivered without a signature.

GM apologized for numerous faults with frankness usually reserved for private water-cooler discussions, rather than corporate disclosure. Clearly, the struggling corporate giant is facing its greater public relations challenge to winning over the hearts, minds, and wallets of the American taxpayer, and thereby the Congressional staff holding the purse strings.

Even still, the words are a bit startling at times:
"While we’re still the U.S. sales leader, we acknowledge we have disappointed you. At times we violated your trust by letting our quality fall below industry standards and our designs become lackluster. We proliferated our brands and dealer network to the point where we lost adequate focus on our core U.S. market."

That said, GM also touted its recent accomplishments, many of which have been getting short shrift in the media as the country focuses on the blame game.
"Today, we have substantially overcome our quality gap; our newest designs are widely heralded for their appeal, such as the Chevrolet Malibu and Cadillac CTS; our new products are nearly all cars and crossovers rather than pickups and SUVs; our manufacturing operations have greatly improved productivity, and our labor agreements are much more competitive"

The ad wrapped up with these notable points:

Specifically, we are committed to:
Producing automobiles you want to buy and are excited to own
Leading the reinvention of the automobile based on promising new technology
Focusing on our core brands to consistently deliver on their promises
Streamlining our dealer network to ensure the best sales and service
Ensuring sacrifices are shared by all GM stakeholders
Meeting appropriate standards for executive pay and corporate governance
Working with our unions to quickly realize competitive wages and benefits
Reducing U.S. dependence on imported oil
Protecting our environment
Paying you back the entire loan with appropriate oversight and returns

It has been tough for this titan of industry to be literally begging for federal assistance, but the executives are displaying a clear willingness to do whatever it takes for the corporation to survive. And Congress it taking note.

Late Monday, Speaker Nancy Pelosi and Chairman Barney Frank of the House Financial Services Committee held a press conference announcing a dedication to assist the Detroit 3 automakers. This powerful duo announced they are working on legislation to provide a $15 billion loan, without using the Section 136 funds allocated for green car innovation, nor tapping the $700 billion TARP (aka Troubled Assets Relief Program) bailout funds.

The intent is that this loan would carry the industry until March 31, when under the new administration a more comprehensive plan could be forged and put into action.

“It is important to note that unless the restructuring that is called for in this legislation and the goal of viability is achieved by March 31, there is no justification for spending any more taxpayer dollars,” said Pelosi.

On this announcement, Ford and GM both issued statements thanking Congress for their actions and pledging to do their part. Ford re-iterated that they “do not face a near-term liquidity issue, and we will not be seeking a short term bridge loan.” However, they support the effort to assist Chrysler and General Motors.

General Motors stated, “The current set of extraordinary economic circumstances the industry faces requires equally extraordinary action now on the part of both the automakers and Congress. We have listened to Congress and have put together a restructuring plan that will deliver a stronger, sustainable GM in a quicker timeframe and without the negative market consequences that could result from bankruptcy.”

The absence of a statement from Chrysler is both odd, yet fits with their more subdued approach to the economic crisis facing the auto industry.

Read the bailout strategies from Chrysler, Ford, and General Motors.

For further background:

Big 3 Face Congress, Emerge with Hope

Congress Calls on U.S. Auto Executives to Deliver Restructuring Plan

Threat of Big 3 Bankruptcy Risks Sales

U.S. Car Sales Tank in November

admin — Wed, 03 Dec 2008 02:04:00 GMT

As the monthly sales figures have poured in for November, it is clear that the economic impact on the auto industry goes far beyond the Big 3 automakers. While Chrysler, Ford, and General Motors may be in the media spotlight for their hybrid drives to Washington, D.C., with proposals in hand, every brand except Mini has revealed major double-digit year-on-year sales drops.

Often cited as examples of how companies have been able to better predict today’s economic challenges and more quickly react to it, Honda and Toyota were both hard hit. Despite a product line known for its fuel economy and a redesign (and quite good) Fit hatchback, Honda has seen sales plummet 30.6%. Saddled with some larger vehicles, Toyota has shown a 33.8% drop.

Still, that is just a prelude to the Big 3. Chrysler Corp. is down 47%, Ford Motor Company 30.6%, and General Motors 41.3%. Even Nissan, who sounded relatively confident at the recent LA Auto Show, has seen a 42.2% drop.

The single brand hardest hit is the crisis poster child, Hummer, at 63.9%.

Should one of the major domestic companies fall under the weight of its credit crisis, suppliers will follow, and the domino effect will shatter the industry. Tough times, indeed.

What can you do?

Take advantage of the stellar deals available from hungry dealerships and buy a car. Short of that, visit theengineofdemocracy.com, an independent site by an automotive industry coalition. It includes the industry’s perspective and ways you can show your support.

Research a new car in our 2009 buyer's guide and give the industry some economic stimulus.

SEMA Preview: Hummer H3 Weekend Warrior

admin — Mon, 27 Oct 2008 00:18:00 GMT

Hummer will rock the desert at the Specialty Equipment Market Association (SEMA) show in November with two concept vehicle and a project SUV. At the Las Vegas industry event, Hummer will introduce a pre-runner-style H3T outfitted with a raft of performance and appearance accessories, and the H3 X Concept – a proposal for the ultimate H3. The third vehicle is a modified H3 Alpha built by Four Wheeler magazine.

Given the troubles the Hummer division has been having this past year, and the For Sale sign GM has hung on it, we can believe it when the dirt-loving division claims there is not production intent for these vehicles. Like most models on display at SEMA, consider them inspiration for owners.

The H3T Weekend Warrior concept (shown here) explore the potential for DIYers with a few spare weekends, credit card, and Internet access. Starting with a new H3T Alpha, engineers added nearly 70 horsepower to its 5.3L V-8 via components available through GM Performance Parts. They include LS2 cylinder heads (part number 12576063), a higher-lift camshaft (part number 12574519) and supporting components. Also enhancing performance is a custom, 3.5-inch exhaust system.

The H3T rides on 35-inch-tall BFGoodrich Baja T/A tires mounted on Hummer Accessories 20-inch wheels. The concept also uses racing-proven stock and aftermarket suspension components, including Light Racing JounceShocks and 2-inch-diameter Rod Hall Racing piggyback reservoir-type performance shocks. The modified suspension improves the H3T’s inherent off-road capability. There is also a set of high-performance disc brakes from DBA. The vehicle also wears other parts available from Hummer Accessories that enhance function, including a bed extender and carry-off cargo boxes. Seeing how Hummer itself modifies the H3T gives clear indication of the potential, and it serves as an endorsement for combining key elements.

Research Hummer trucks and SUVs in the 2009 buyer’s guide, complete with pricing, specifications, and photo galleries. Read our Hummer H3 review.

Brace for impact - Car sales plummet

admin — Thu, 02 Oct 2008 01:26:00 GMT

While the national attention has been focused on the roller coaster ride on Wall Street and bailout debates in Washington, the automotive industry has been reeling from the impact of the economy. The September sales figures are in, and the news is dire.

Number watchers, and general domestic pessimists, will not be surprised to hear that the Big 3 were hit hard. September 2008 versus September 2007 shows Chrysler down 32.8 percent, Ford 36.3 percent, and General Motors 15.6 percent.

The Big 3 weren't alone, even Honda was down 24 percent and Toyota 32.3 percent. In total, United States auto sales were under 1 million units for the month, compared to 1.3 million in September 2007.

The hardest hit brands, year on year, were Hummer (-54.8%), Porsche (-44.8%), Suzuki (-46.6%), and Volvo (-51.8%).

Root causes for the sales drop include consumers reluctance to make big ticket purchases and therefore holding on to their vehicles longer, the industry racing away from leasing, and the difficulty in securing loans. Dealers have been cited in the media as having ready buyers walk out because they couldn't qualify for a loan.

The only bright side is for consumers considering a new vehicle, dealers are quite willing to negotiate. Great deals can be found, so long as the money is truly in hand.

GM Shakes Things Up, Looking for $15 Billion

admin — Wed, 16 Jul 2008 02:19:00 GMT

General Motors announced bold moves to drastically cut costs as the beleaguered automaker struggles amid the rapidly changing marketplace and union strikes. Through restructuring, cost-cutting, head-count reductions, and product plan shifts, GM aims to bolster its liquidity by $15 billion through 2009. Based on the details spelled out by corporate executives, it won't be easy.

"We are responding aggressively to the challenges of today's U.S. auto market," said GM Chairman and CEO, Rick Wagoner. "We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix. We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient vehicles."

Changes revealed Tuesday include:

Salaried staff will be reduced through normal attrition, early retirements, mutual separation programs and other separation tools.
For those salaried employees in the U.S. and Canada that stay on, there will be no raises in 2008 or 2009.
Health care coverage for U.S. salaried retirees over 65 will be eliminated.
Engineering spending in 2008 and 2009 will be held at 2006-2007 levels, substantially lower than original plans.
Next-generation large pickup and SUV programs are delayed, as well as V-8 engine development and capacity.
Spending for non-product programs will also be significantly reduced, while powertrain spending will be increased to support the development of alternative propulsion and fuel economy technologies and small displacement engines.

In product news:

GM is actively pursuing options to sell the Hummer division, despite launching the new H3T pickup truck.
The Chevrolet Cruze expected to debut at the Paris Motor Show will not replace the Cobalt, which GM says has much life left in it.
The tiny, ultra-efficient Chevrolet Beat will not be coming to the United States despite its appearance at Stateside auto shows and campaign to have consumers vote on their favorite of a trio of subcompact concept cars.
The next-generation Chevy Equinox will begin production in May 2009 with a four-cylinder engine. Also, Saab will introduce the all-new 9-4x five-seat crossover segment in the fall of 2009.
A Cadillac CTS Sportwagon will come to market next spring
The Cadillac CTS Coupe Concept from the last Detroit Auto Show last January will go sale in summer 2009.
The next-generation Cadillac SRX crossover, previewed as the Provoq concept vehicle, arrives mid-2009.

With recent changes at GM, and these bold announcements, the General is reinventing itself at breakneck speed. We all hope it is enough.

Pricing: 2009 Hummer H3T

admin — Sat, 12 Jul 2008 01:21:00 GMT

Timing is everything, as the old adage goes. Shame the timing is wrong for the gas-swilling 2009 Hummer H3T, as this mighty, dirt-loving pickup truck sounds like an entertaining coach for hardcore off-roaders and recreation-crazed weekend warriors. The appeal is heightened by its $31,495 base price (including a $745 destination charge), a competitive figure that stacks up well against competing trucks with off-road packages, such as the Nissan Frontier CrewCab Nismo and Toyota Tacoma DoubleCab SR5.

The H3T is based on a stretched version of the H3 SUV platform, with a five-passenger crew cab and a separate five-foot-long bed. Standard equipment includes a full-time electronic four-wheel drive, 32-inch tires, functional skid shields, integrated bedliner with built-in storage, and a cargo management system. True off-roaders will be drawn to the available front and rear locking differentials, and optional 33-inch tires.

The base engine is a 242-horsepower I-5 engine and it has a 4,400-pound tow capacity. For serious fun, top version boasts a 300-horsepower V-8 and it can pull up to 5,900-pounds of toys.

In our Hummer H3 review, we wrote:
Between the standard features and the option sheet, you can pretty much take it all with you, even as you're getting away from it all. And that's the core of the H3's appeal: the ability to play in mud as deep as you dare and still clean up nicely when you've got to meet the in-laws for dinner.

And we expect this to remain true for the latest addition to the Hummer line.

The 2009 Hummer H3T is scheduled to arrive in dealerships in September.

Research the Hummer in the buyer’s guide, complete with pricing, specifications, and photo galleries. Read our Hummer H3 review.